Document:

Exhibit
10.1

 

Texas
Equipment Lease

 

This form is subject to
Federal and State legal requirements.

 

1.             Equipment Leased.

 

Lessor hereby leases to
Lessee, and Lessee hereby hires and takes from Lessor the following-described
personal property (hereinafter, with all attachments, replacement parts,
substitutions, additions, repairs and accessories  incorporated therein and/or affixed thereto,
and proceeds referred to as “Equipment”): (Describe Equipment fully, including
make, kind of unit, model and serial numbers, and any other pertinent
information.)

 

See Schedule “A” consisting
of four (4) pages attached hereto and made a part hereof.and Lessor agrees
within               days
from the date hereof to cause said Equipment to be delivered to Lessee, f.o.b. 

 

2.             Term.

 

This lease is for a term of
36 months, beginning on 7-28-2006 and ending on 7-28-2009.

 

3.             Rentals.

 

Lessee, having been quoted a
cash price of $6,000,000.00 and a time price of $6,840,728.56 hereby elects to
lease the Equipment on a time price basis and agrees to pay the Lessor that
portion of said time price which represents the aggregate rentals of $
6,840,628.56 as follows:

 

$
0.00 is herewith paid in advance and the balance of the rentals, $6,840,628.56 is
payable in 36  equal, successive, monthly
rental payments of $ 190,017.46, of which the first is due 8-28-06, and the
others on a like date of each month thereafter until fully paid.

 

4.             Purchase Option.

 

See Rider D consisting of
one (1) page attached hereto and made a part hereof.

 

5.             Late Charges.

 

Any payment not made when
due shall, at the option of Lessor, bear late charges thereon calculated at the
rate of 1 1/2% per month, but in no event greater than the highest rate
permitted by relevant law. Lessee shall be responsible for and pay to Lessor a
returned check fee, not to exceed the maximum permitted by law, which fee will
be equal to the sum of (i) the actual bank charges incurred by Lessor plus (ii)
all other actual costs and expenses incurred by Lessor. The returned check fee
is payable upon demand as additional rent under this Equipment Lease.

 

6.             Use, Nature and Location of Equipment.

 

 Lessee warrants and agrees that the Equipment
is to be used primarily for:

 

x business
or commercial purposes (other than agricultural),

o  agricultural purposes
(see definition on the final page), or

o  both agricultural and business or commercial
purposes.

 

Lessee and Lessor agree that
regardless of the manner of affixation, the Equipment shall remain personal
property and not become part of the real estate. Lessee agrees to keep the
Equipment, when not in service, at

 

	
  903 Franklin

  	
   

  	
  Brookshire

  	
   

  	
  Harris

  	
   

  	
  TX

  	
   

  	
  77423

  
	
  Address

  	
   

  	
  City

  	
   

  	
  County

  	
   

  	
  State

  	
   

  	
  Zip Code

  

 

 

and will at all other times
keep the Equipment within the lower 48 continental United States. Lessee will
notify Lessor promptly in writing of its intention to change the location of
the collateral to a location other than what is provided for herein and will
only do so with the prior written consent of Lessor.

 

7.             Repairs.

 

Lessor shall not be obligated
to install, erect, test, adjust, service or make any repairs or replacements;
Lessee shall not  incur for Lessor’s
account or liability any expense therefor without Lessor’s prior written
consent. Lessee shall inspect the Equipment within 48 hours after its receipt;
unless within said time Lessee notifies Lessor, stating the details of any
defects, Lessee shall be conclusively presumed to have accepted the Equipment
in its then condition. Thereafter, Lessee shall effect and bear the expense of
all necessary repairs, maintenance, operation and replacements required to be
made to maintain the Equipment in good condition, normal wear and tear
excepted.

 

8.             Operators.

 

Lessee shall cause the
Equipment to be operated by competent employees only, and shall pay all
expenses of operation.

 

9.             Liability.

 

Lessee shall indemnify and
save Lessor harmless from any and all injury to or loss of the Equipment from
whatever cause, and from liability arising out of the use, maintenance and/or
delivery thereof, but shall be credited with any amounts received by Lessor
from insurance procured by Lessee. Damage for any loss or injury shall be based
on the then true and reasonable market value of the Equipment irrespective of
rentals theretofore paid or accrued.

 

10.          Insurance.

 

All risk of loss, damage to
or destruction of the Equipment shall at all times be on Lessee. Lessee will
procure forthwith and maintain at Lessee’s expense insurance against all risks
of loss or physical damage to the Equipment for the full insurable value
thereof for the life of this lease plus breach of warranty insurance and such
other insurance thereon in amounts and against such risks as Lessor may
specify, and shall promptly deliver each policy to Lessor with a standard long-form
mortgagee endorsement attached thereto showing loss payable to Lessor; and
providing Secured Party with not less than 30 days written notice of
cancellation; each such policy shall be in form, terms and amount and with
insurance carriers satisfactory to Lessor; Lessor’s acceptance of policies in
lesser amounts or risks shall not be a waiver of Lessee’s foregoing obligations.
As to Lessor’s interest in such policy, no act or omission of Lessee or any of
its officers, agents, employees or representatives shall affect the obligations
of the insurer to pay the full amount of any loss.

 

Lessee hereby assigns to
Lessor any monies which may become payable under any such policy of insurance
and irrevocably constitutes and appoints Lessor as Lessee’s attorney in fact
(a) to hold each original insurance policy, (b) to make, settle and adjust
claims under each policy of insurance, (c) to make claims for any monies which
may become payable under such and other insurance on the Equipment including
returned or unearned premiums, and (d) to endorse Lessee’s name on any check,
draft or other instrument received in payment of claims or returned or unearned
premiums under each policy and to apply the funds to the payment of the
indebtedness owing to Lessor; provided, however, Lessor is under no obligation
to do any of the foregoing.

 

Should Lessee fail to
furnish such insurance policy to Lessor, or to maintain such policy in full
force, or to pay any premium in whole or in part relating thereto, then Lessor,
without waiving or releasing any default or obligation by Lessee, may (but
shall be under no obligation to) obtain and maintain insurance and pay the
premium and any administrative costs therefor on behalf of Debtor and charge
the premium and any administrative costs to Lessee’s indebtedness under this
lease. The full amount of any such premium and any administrative costs paid by
Lessor shall be payable by Lessee upon demand, and failure to pay same shall
constitute an event of default under this lease.

 

2

 

11.          Taxes.

 

Lessee shall comply with and
conform to all laws, ordinances and regulations relating to the ownership,
possession, use or maintenance of the Equipment, and save Lessor harmless
against actual or asserted violations, and pay all costs and expenses of every
character occasioned by or arising out of such use. Lessee agrees that, during
the term of this lease, in addition to the rent and all other amounts provided
herein to be paid, it will promptly pay all taxes, assessments and other
governmental charges (including penalties and interest, if any, and fees for
titling or registration, if required) levied or assessed:

 

(a)           upon the interest of the Lessee in the
Equipment or upon the use or operation thereof or on the earnings arising therefrom;
and

 

(b)           against Lessor on account of its acquisition
or ownership of the Equipment or any part thereof; or the use or operation
thereof or the leasing thereof to the Lessee, or the rent herein provided for,
or the earnings arising     therefrom,  exclusive, however,
of any taxes based on net income of Lessor.

 

Lessor will file tax returns
and reports concerning the Equipment with all appropriate governmental
agencies, (unless Lessor notifies Lessee writing) and Lessee agrees to
reimburse Lessor for any taxes as it relates to this Master Lease or the
Equipment. Applicable laws may also require Lessee to report the Equipment
covered by this Master Lease. Lessor does not have to contest any taxes, fines
or penalties, however Lessee may do so provided that: (a) Lessee does so in its
own name and at its own expense; (b) the contest does not and will not result
in any lien attaching to any Equipment or otherwise jeopardize Lessor’s right
to any Equipment; and (c) Lessee indemnifies Lessor for all expenses (including
legal fees and costs), liabilities and losses that Lessor incurs as a result of
any such contest. Lessee will pay estimated property taxes with each lease
payment or as invoiced.

 

12.          Title.

 

All said Equipment shall
remain personal property, and except as provided in the next sentence, title
thereto shall remain in Lessor exclusively. With respect to any software
financed hereunder as to which Lessor is not the licensee or licensor, Lessee
hereby grants Lessor a security interest in such software to secure the payment
and performance of Lessee’s obligations under this Lease. Lessee shall keep the
Equipment free from any and all liens and claims, and shall do or permit no act
or thing whereby Lessor’s title or rights may be encumbered or impaired. Upon
expiration or termination hereof by other than default, the Equipment shall be
returned unencumbered to Lessor by Lessee at the place where the rent is
payable or to such other place as Lessor and Lessee agree upon, at Lessee’s
sole expense and in the same condition as when received by Lessee, reasonable
wear and tear resulting from proper use thereof alone excepted. Lessee shall
pay rent at the said rate until all said Equipment arrives at Lessor’s
premises, or other place designated by Lessor.

 

13.          Inspection.

 

Lessee shall, whenever
requested, advise Lessor of the exact location and condition of the Equipment
and shall give Lessor immediate notice of any attachment or other judicial
process affecting the Equipment, and indemnify and save Lessor harmless from
any loss or damage caused thereby. Lessor may, for the purpose of inspection,
at all reasonable times enter upon any job, building or place where the
Equipment is located; and may remove the Equipment forthwith, without notice to
Lessee, if the Equipment is, in the opinion or Lessor, being used beyond its
capacity or in any manner improperly cared for or abused.

 

14.          Non-Waiver.

 

Time is of the essence. Lessor’s
failure at any time to require strict performance by Lessee of any of the
provisions hereof shall not waive or diminish Lessor’s right thereafter to
demand strict compliance therewith or with any other provision. Waiver of any
default shall not waive any other default. No remedy of Lessor hereunder shall
be exclusive of any other remedy herein or by law provided, but each shall be
cumulative and in addition to every other remedy.

 

3

 

15.          No Warranty.

 

Lessor, not being the
manufacturer of the Equipment, nor manufacturer’s agent, makes no warranty or representation,  either expressed 
or implied, as to  the fitness,
quality, design, condition, capacity, suitability, merchantability or performance
of the Equipment or of the material or workmanship thereof, it being agreed
that the Equipment is leased “as is”

 

and that all such risks, as
between the Lessor and the Lessee, are to be borne by the Lessee at its sole
risk and expense. Lessee accordingly agrees not to assert any claim whatsoever
against the Lessor based thereon. Lessee further agrees, regardless of cause,
not to assert any claim whatsoever against the Lessor for loss of anticipatory
profits or consequential damages. No oral agreement, guaranty, promise,
condition, representation or warranty shall be binding; all prior
conversations, agreements or representations related hereto and/or to said
Equipment are integrated herein.

 

16.          Possession.

 

Lessor covenants to and with
Lessee that Lessor is the lawful owner of said Equipment free from all
encumbrances and that, conditioned upon Lessee’s performing the conditions
hereof, Lessee shall peaceably and quietly hold, possess and use the Equipment
during said term without let or hindrance.

 

17.          Performance of Obligations of Lessee by Lessor.

 

In the event that the Lessee
shall fail duly and promptly to perform any of its obligations under the
provisions of this lease, the Lessor may, at its option, perform the same for
the account of Lessee without thereby waiving such default, and any amount paid
or expenses (including reasonable attorneys’ fees), penalty and other liability
incurred by the Lessor in such performance, together with interest at the
applicable rate stated in Paragraph 5 until paid by the Lessee to the Lessor,
shall be payable by the Lessee upon demand as additional rent for the Equipment.

 

18.          Further Assurances.

 

Lessee shall execute and
deliver to Lessor, upon Lessor’s request such instruments and assurances as
Lessor deems necessary or advisable for the confirmation or perfection of this
lease and Lessor’s right hereunder. If any of the Equipment consists of
software, Lessee agrees, at Lessor’s request, to inform Lessor of the name of
the licensor of such software and to provide Lessor with a copy of the license
agreement.

 

19.          Default.

 

An event of default shall
occur if:

 

(a)           Lessee fails to pay when due any installment
of rent and such failure continues for a period of 10 days;

 

(b)           Lessee fails to perform or observe any
covenant, condition or agreement to be performed or observed by it hereunder
and such failure continues uncured for 15 days after written notice thereof to
Lessee by Lessor;

 

(c)           Lessee dies, ceases doing business as a going
concern, makes an assignment for the benefit of creditors, admits in writing
its inability to pay its debts as they become due, files a voluntary petition
in bankruptcy, is adjudicated a bankrupt or an insolvent, files a petition
seeking for itself any reorganization, arrangement, composition, readjustment,
liquidation, dissolution  or similar
arrangement under any present or future statute, law or regulation or files an
answer admitting the material allegations of a petition filed against it in any
such proceeding, consents to or acquiesces in the appointment of a trustee,
receiver, or liquidator of it or of all or any substantial part of its assets
or properties, or if it or its shareholders shall take any action looking to
its dissolution or liquidation;

 

(d)           within 60 days after the commencement of any
proceedings against Lessee seeking reorganization, arrangement, readjustment,
liquidation, dissolution or similar relief under any present or future statute,
law or regulation, such proceedings shall not have been dismissed, or if within
60 days after the appointment without Lessee’s consent or 

 

4

 

acquiescence of any trustee,
receiver or liquidator of it or of all or any substantial part of its assets
and properties, such appointment shall not be vacated;

 

(e)           Lessee attempts to remove, sell, transfer,
encumber, part with possession or sublet the Equipment or any item thereof,
except as provided for herein; or

 

(f)            a third party takes any action to foreclose
on, obtain possession or control of, collect, sell or otherwise dispose of or
exercise any rights with respect to any of the Equipment without the express
written consent of Lessor.

 

Upon the occurrence of an
event of default, Lessor, at its option, may:

 

(a)  declare all sums due and to become due
hereunder immediately due and payable, but in no event shall the Lessee,  upon demand by Lessor for payment of the
unpaid time price balance, upon acceleration of the maturity thereof or  otherwise, be obligated to pay any time price
differential in excess of that permitted by law;

 

(b)           proceed by appropriate court action or
actions or other proceedings either at law or equity to enforce performance by
the Lessee of any and all covenants of this lease and to recover damages for
the breach thereof;

 

(c)           demand that Lessee deliver the Equipment
forthwith to Lessor at Lessee’s expense at such place as Lessor may designate;
and

 

(d)           Lessor and/or its agents may without notice
or liability or legal process, enter into any premises of or under control or
jurisdiction of Lessee or any agent of Lessee where the Equipment may be or by
Lessor is believed to be, and repossess all or any item thereof, disconnecting
and separating all thereof from any other property and using all  force necessary or permitted by applicable
law so to do, Lessee hereby expressly waiving all further rights to possession
of the Equipment and all claims for injuries suffered through or loss caused by
such repossession; Lessor may sell or lease the Equipment at a time and
location of its choosing provided that the Lessor acts in good faith and in a
commercially reasonable manner, but the Lessor shall, nevertheless, be entitled
to recover immediately as liquidated damages for loss of the bargain and not as
a penalty any unpaid rent that accrued on or before the occurrence of the event
of default plus an amount equal to the difference between the aggregate rent
reserved hereunder for the unexpired term of this lease and the then aggregate
rental value of all Equipment for such unexpired term, provided, however, that
if any statute governing the proceeding in which such damages are to be proved specifies
the amount of such claim, Lessor shall be entitled to prove as and for damages
for the breach an amount equal to that allowed under such statute.

 

The provisions of this
Paragraph shall be without prejudice to any rights given to the Lessor by such
statute to prove for any amounts allowed thereby. Should any proceedings be
instituted by or against Lessor for monies due to Lessor hereunder and/or for
possession of any or all of the Equipment or for any other relief, Lessee shall
pay a reasonable sum as attorneys’ fees.

 

20.          Assignments.

 

Neither this lease nor
Lessee’s rights hereunder shall be assignable except with Lessor’s written
consent; the conditions  hereof shall
bind any permitted successors and assigns of Lessee. Lessor may assign the
rents reserved herein or all or any of Lessor’s other rights hereunder. After
such assignment, Lessor shall not be assignee’s agent for any purpose; Lessee
will settle all claims arising out of alleged breach of warranties or
otherwise, defenses, setoffs and counterclaims it may have against Lessor
directly with Lessor, and not set up any such against Lessor’s assignee, Lessor
hereby agreeing to remain responsible therefor. Lessee, on receiving notice of
any such assignment, shall abide thereby and make payment as may therein be
directed. Following such assignment, solely for the purpose of determining
assignee’s rights hereunder, the term “Lessor” shall be deemed to include or
refer to Lessor’s assignee.

 

21.          Miscellaneous.

 

Lessee will not change or
remove any insignia or lettering on the Equipment and shall conspicuously
identify each item of the Equipment by suitable lettering thereon to indicate
Lessor’s ownership. All transportation charges shall be borne by Lessee. All
notices relating hereto shall be sent certified mail return receipt requested
to Lessor or Lessee at its respective address shown herein or at any later
address last known to the sender. If any part hereof is contrary to, prohibited
by or 

 

5

 

deemed invalid under
applicable laws or regulations of any jurisdiction, such provision shall be
inapplicable and deemed omitted but shall not invalidate the remaining
provisions hereof. Lessee waives all rights under all exemption laws. Lessee acknowledges the receipt of a true copy of this
lease. This lease is irrevocable for the full term hereof and for
the aggregate rental herein reserved, and the rent shall not abate by reason of
termination of Lessee’s right of possession and/or the taking of possession by
Lessor or for any other reason.

 

In no event shall the
Lessee, by acceleration or prepayment of the unpaid time price balance
hereunder or otherwise, be obligated to pay any time price balance differential
in excess of the amount permitted by law. Any acceleration or prepayment of the
unpaid time price balance shall be subject to all applicable laws, including
rebates of unearned charges. If in any event whatsoever, Lessor shall receive
anything of value deemed interest under applicable law which would exceed the
maximum amount of interest under applicable law, the excess amount shall be
applied to the reduction of the unpaid time price balance or shall be refunded
to the Lessee. All sums paid or agreed to be paid by Lessee to Lessor for the
use, forbearance or detention of money shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the
full term of this transaction so that the amount of consideration constituting
interest is uniform throughout the term hereof and does not exceed the maximum
permitted by applicable law.

 

In the event this Lease is
deemed to create a security interest, Lessee grants Lessor a security interest
in the Equipment as security for all of Lessee’s indebtedness and obligations
owing under this Lease as well as all other present and future indebtedness and
obligations of Lessee to Lessor of every kind and nature whatsoever. Lessee
authorizes Lessor to file a financing statement with respect to the Equipment
and ratifies the filing by Lessor of any such financing statement previously
filed.

 

If Lessee is an
organization, Lessee (a) is the type of organization, (b) is organized under
the laws of the jurisdiction, (c) has its chief executive office, and (d) if it
is a “registered organization” as defined in Article 9 of the Uniform
Commercial Code (i.e., organized solely under the laws of a single State and as
to which the State must maintain a public record showing the organization to
have been organized), has the organizational identification number (or, if
none, has been assigned no such number by the State of organization), all as
set forth under Lessee’s name (which is its exact and complete legal name) at
the signature line of this Lease. If Lessee is an individual, Lessee’s exact and
complete legal name and principal residence are as set forth at and under
Lessee’s name at the signature line of this Lease. Lessee agrees to notify
Lessor immediately in the event of a change in any of the foregoing facts and
information.

 

If Lessee is a corporation,
this Lease is executed by authority of its Board of Directors.

 

22.          Entire Agreement.

 

This
written agreement and the other documents described or contemplated herein
represent the final agreement between the parties, embody the entire agreement
and understanding between the parties hereto and thereto, supersede all prior
agreements and understandings relating to the subject matter hereof and
thereof, and may not be contradicted by evidence of prior, contemporaneous, or
subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties. Lessee’s initials      

 

6

 

23.          Special Provisions.

 

See Rider “B” consisting of
one (1) page attached hereto and made a part hereof.

See Rider “C” consisting of
one (1) page attached hereto and made a part hereof.

See Rider “D” consisting of
one (1) page attached hereto and made a part hereof.

See Rider “T” consisting of
one (1) page attached hereto and made a part hereof.

 

THIS TEXAS EQUIPMENT LEASE
IS MADE AND SHALL BE CONSTRUED UNDER THE LAWS OF THE STATE OF ARIZONA.

 

The
undersigned agree to all the terms and conditions set forth herein, and in
witness whereof, they hereby execute this lease.

 

 Dated: July 25, 2006

 

Lessee:

 

	
  Quantum Geophysical, Inc.

  	
   

  
	
   

  
	
  By

  	
  /s/ Thomas J. Concannon

  	
   

  	
  Title

  	
   Treasurer

  	
   

  
							

 

	
  One Riverway, Suite 2100

  
	
  Address

  
	
   

  
	
  Houston

  	
  TX

  	
  77056

  
	
  City

  	
  State

  	
  Zip Code

  

 

If an organization, Type of
organization:  Corporation

 

If an individual, Principal
residence:

 

Jurisdiction of
organization: Texas

 

Organizational identification
Number (or “None”): 76-0547282

 

Location of chief executive
office: Houston, TX

 

Lessor:

 

	
   The CIT Group/Equipment Financing, Inc.

  	
   

  
	
   

  
	
  By

  	
   

  	
  /s/ Don A. Luttenegger

  	
   

  	
  Title

  	
  V.P. Specialty Funding

  	
   

  
	
   If corporation, give official title . If
  owner or partner, state which.

  
								

 

	
   1540 W Fountainhead Pkwy

  
	
  Address

  
	
   

  
	
   Tempe

  	
  AZ

  	
   

  	
   85282

  	
   

  
	
  City

  	
  State

  	
   

  	
  Zip
  Code

  	
   

  

 

7

 

If Lessee is a partnership,
enter:

 

	
  Partners’ names

  	
  Home addresses

  

 

8

 

Schedule A

to Texas Equipment Lease

 

Seismic Survey Equipment
consisting of:

•      Three Thousand (3000) Geophone Strings

•      Land String 6 per

•      SCI-Element 10hx 375 Ohm 2.5% tolerance

•      HP-1 Land Case w/3” steel spike

•      HCL-2P 15FT connectors each end

•      25FT Interval 3-70-210/F d-loop

•      Hasp

•      Cases & hasp marked

 

•      Vibrators AHVIV-362, GVW 58K with Options

•      Vibrator Specifications:

•      Mass
Model: PLS 362-A P-WAVE TYPE

•      Mass
Weight: 8,120 LB

•      Peak Force: 61,800 LBF

•      Piston Area: 20.6 SQ. IN

•      Usable Stroke: 3.87 IN

•      Displacement Limit: 6.3 HZ

•      Frequency Range: 5 – 250 HZ

•      Mass Balancing: AIR BAG

•      Mass Accumulators: FLOW-THRU TYPE. ONE (1) LITER EACH IN SERVO VALVE
SUPPLY & RETURN

PORTS

•      Mass Rebound: POLYURETHANE

•      Stilt Structure Type: I/O PATENTED TIE ROD TYPE CONSTRUCTION WITH
HYDRAULIC MEANS TO

ADJUST ACTUATOR PRELOAN. ALLOY STEEL AND STAINLESS STEEL

•      Baseline Dimensions: 7.2 x 42 x 92 IN

•      Baseplate Area: 3,864 SQ. IN.

•      Driven Structure Weight: 4,020 LB

•      Lift Cylinder: 4” BORE X 38” STROKE, CAST IRON RINGS, NFPA. TIE-ROD
DESIGN, BLIND END CUSHION.

DOWN PRESSURE GAGE

•      Lift Valve: INTEGRATED CIRCUIT CARTRIDGE VALVE DESIGN FOR 4-WAY AND
REDUCING FUNCTIONS.

•      Servo Valve: ATLAS 240 HD DRILLED AND PLUGGED TO ACCEPT DR MODIFICATION,
MOOG 760C928A

PILOT VALVE, PELTON DR MODIFICATION FOR SERVO VALVE

•      Servo Filter: PARKER 3 MICRON ABSOLUTE

•      Vibrator Pump: DUAL DENNISION P7 SERIES, 7.25 CU. IN. 160 GPM AVAILABLE
TO VIBRATOR @ 3000

PSID, ELECTRONIC DISPLACEMENT CONTROL

•      System Accumulators: 2.5 GAL BLADDER TYPE, TOP REPAIRABLE

•      Hydraulic Reservoir: 55 GALLON, SCHROEDER 3.5 MICRON ABSOLUTE DUAL
ELEMENT RETURN FILTER

•      Hydraulic Oil Filtration: HIGH PRESSURE SCHROEDER TRIPLE ELEMENT FILTER
ON BOTH HIGH AND

LOW PRESSURE, 3.5 MICRON ABSOLUTE

•      Hydraulic System Pressure: 3,200 PSI HIGH PRESSURE, 200 PSI LOW PRESSURE

•      Heat Exchanger: STEEL CORE, FOR VIBRATOR TESTED TO 500 PSI, HYDRAULIC
FAN DRIVE WITH

CROWLEY MULTI-WING FAN, HINGED GUARD FOR CLEANING

•      Engine Specifications:

•      Model: DETROIT DIESEL SERIES 60

•      Type: WATER COOLED 4-CYCLE

•      Cylinders: IN-LINE SIX, OVERHEAD CAM

•      Displacement: 854 CU. IN.

•      Horsepower: 425 BHP @ 1950 RPM

•      Torque: 1,244 LB-FT @ 1900 RPM

•      Weight: 2,670 LB

•      RPM (setup): 1950 RPM

•      Fuel Consumption: 6 TO 9 GAL/HR DEPENDING ON CONDITIONS

 

1

 

•      Air Cleaner: DONALDSON 3-STAGE STG16, PRIMARY AND SECONDARY ELEMENTS
WITH EXHAUST ASPIRATOR

•      Engine Shutdown System:   USER
SELECTABLE—AUDIO/VISUAL WARNING ONELY OR FULL SHUTDOWN: HIGH TEMPERATURE, LOW
COLLANT, LOW OIL PRESSURE, LOW HYDRAULIC FLUID, LAMP CHECK ON START UP

•      Fuel Filters: DAVCO PRIMARY W/ WATER SEPERATOR AND SPIN-ON SECONDARY

•      Antifreeze & Coolant Inhibitor

•      Carrier Specifications:

•      Buggy Dimensions (w/66 x 43 Tires)

•      Length: 394 IN.

•      Width: 134 IN.

•      Height A: 118 IN.

•      AT CR: 123 IN.

•      AT EXHAUST: 136 IN.

•      Wheelbase: 188 IN.

•      Turning Radius: 273 IN (Inside)

:
428 IN (Outside)

(using
66 x 43 tires)

•      Ground Clearance: 18 IN

	
  •

  	
  Buggy Weights:

  	
  MINIMUM

  	
  MAXIMUM*

  
	
  •

  	
  Gross Vehicle:

  	
  57,250 LB

  	
  66,000 LB

  
	
  •

  	
  Hold Down:

  	
  50,350 LB

  	
  64,000 LB

  
	
  •

  	
  Front Axle:

  	
  30,400 LB

  	
  34,950 LB

  
	
  •

  	
  Rear Axle:

  	
  26,850 LB

  	
  31,050 LB

  

 

* (Desired weight to be achieved with removable
slide-on frame weights)

 

•      Buggy Model: AHV4 ARTICULATED HYDROSTATICALLY DRIVEN VIBRATOR BUGGY

•      Axle: JOHN DEERE 1400 SERIES INBOARD, 
PLANATARY AXLE WITH ENCLOSED WET DISC BRAKES AND DIFFERENTIAL LOCK GEAR
RATIO 26.18:1

•      Air Compressor: 12 CFM WATER COOLED

•      Air Conditioner 20,000 BTU, HFC 134A REFRIGERANT

•      Brakes, Service: HDRAULIC WET DISC BRAKES W/ACCUMULATOR STORAGE FOR (20)
STOPS MINIMUM AFTER SHUTDOWN

•      CAB: FABRICATED STEEL, HIGH VISIBILITY CONSTRUCTION, INSULATED
W/ADJUSTABLE DRIVER AND PASSENGER SEAT. (2) 3-POINT SHOULDER BELTS, AIR
CONDITIONING, HEATER, DEFROSTER, WIPER AND DOME LIGHT 12V OUTLET, SIDE MOUNTED
MIRRORS

•      Transmission: FUNK POWERSHIFT 6-SPED W/GATE HFE SUNDSTRAND 90 SERIES 100
CC WITH ELECTRIC DISPLACEMENT CONTROL

•      Drive Motors: SUNSTRAND 90 SERIES 100 CC

•      Driveshaft: MECHANICS 7C

•      Electrical: 24 VOLT START, 12 VOLT RUN WITH 105 AMP ALTERNATOR AND TWO
HEAVY DUTY 12 VOLT 8D BATTERIES. BATTERY DISCONNECT SWITCH. BACKUP ALARM

•      Engine Cooling Frame: HEAVY DUTY RADIATOR & CHARGE AIR COOLER SOLID
STEEL 3” FRAME RAILS, 30 DEGREE ARTICULATING STEERING AND 16.5 DEGREE
OSCILLATING CENTER JOINT, FRONT AND REAR STEEL BUMPERS, REAR RUBBER BUMPER
COLLISION BUMPERS, TOW HOOKS, LIFTING EYES. ROPS CERTIFICATION

•      Steering: ARTICULATED, HYDRAULIC POWER STEERING, 4” BORE X 12” STROKE
CYLINDERS, EATON STEERING CONTROL VALVE

•      Fuel Tank: FABRICATED, 220 GAL CAPACITY

•      Heat Exchanger: STEEL CORE, FOR DRIVE, TESTED TO 500 PSI. HYDRAULIC FAN
DRIVE FOR CROWLEY MULTI-WING FAN, HINGED GUARD FOR CLEANING

•      Lighting: HEAD LIGHTS, TAIL LIGHTS, TURN SIGNALS, STOP LIGHTS, EMERGENCY
FLASHERS, BACK-UP LIGHTS, FOG LIGHT TWO (2) WORKLIGHTS ON REAR OF CAB

•      Pump Drive: TERRELL DOUBLE PUMP DRIVE, 1.41:1 SPEEDUP RATION, W/COOLING
CIRCUIT & FILTER

•      Roadspeed (maximum): 16 MPH

•      Tractive Effort: 1ST GEAR: 1.51 MPH 98.5%    GRADABILITY

2ND GEAR: 2.68 MPH 55.74% GRADABILITY

3RD GEAR: 3.51 MPH 42.48% GRADABILITY

 

2

 

4TH GEAR: 6.21 MPH 24.03% GRADABILITY

5TH GEAR: 8.77 MPH 17.07% GRADABILITY

6TH GEAR: 16.0 MPH 9.23%   GRADABILITY

(Theoretical
w/no loss of traction)

•      Hydraulic Hoses: AEROQUIP, JIC AND FLANGE FITTINGS

•      Hydraulic Fluid: CONFORMS TO ISO 6074 TYPE HLP:

VG
32: 0 DEG F MIN. STARTUP

150
DEG F MAX. CONTINUOUS

176
DEG F MAX INTERMITTENT

VG
68: 32 DEG F MIN. STARTUP

183
DEG F MAX. CONTINUOUS

210
DEG F MAX. INTERMITTENT

OTHER
GRADES AVAILABLE FOR OTHER EXTREMES

 

•      Engine Oil: API CF-2, SAE 40 (SAE 50 OVER 200 DEG F COOLANT OUT)

•      Tires & Wheels: NOT INCLUDED

•      I/O System Two – RSR-3

•      Central Transceiver Controller, CTC, C2/

•      Module, Electronics, CITC C2/V2

•      Module, Power, CTC

•      Cable Assy, Power, I2V Central Electronics

•      Cable Assy, DB9 to D89 F-F10’

•      Cable Assy, CTC to VR PC

•      Cable Assy, CTC SSI to Power Module

•      Cable Assy, CTC Elec Module Power

•      Cable Assy, CTC CTR Power

•      Cable Assy, CTC to CTR

•      Kit, Software, V2 System

•      Transcriber Two (T2), software T2, ver 1.6.4

•      RSR-3, 1 GBYTE Flash

•      Dynacon Lids

•      1 Gbyte Flash Memory

•      8 Mbyte RAM

•      Analog Board is PAAD

•      RSR-3, 1 Gbyte Flash

•      Dynacon Lids

•      1 Gbyte Flash Memory

•      8 Mbyte RAM

•      Analog Board Set is PA-5 with AD

•      Includes refurnished analog boards and other mechanical parts from MRX
boxes

•      Antenna ASSY, VRSR, Radome, 3FT

 

All of the above to include
attachments, replacements, substitutions, additions and accessions thereof,
plus the proceeds of all the foregoing.

 

3

 

Collateral
shall mean all of the following property of Lessee:

 

(a)           All
of the Lessee’s now existing and future: (i) accounts, as defined in the
Uniform Commercial Code (“UCC”), and any and all other receivables, including,
without limitation, all accounts created by, or arising from, all of the
Lessee’s sales, leases, rentals of goods or renditions of services to its
customers, including but not limited to, those accounts arising under any of,
the Lessee’s trade names or styles, or through any of the Lessee’s divisions;
(ii) any and all instruments, documents, chattel paper (including electronic
chattel paper); (iii) unpaid seller’s or lessor’s rights (including rescission,
replevin, reclamation, repossession and stoppage in transit) relating to the
foregoing or arising therefrom; (iv) rights to any goods represented by any of
the foregoing, including rights to returned, reclaimed or repossessed goods;
(v) reserves and credit balances arising in connection with or pursuant hereto;
(vi) guarantees, supporting obligations, payment intangibles and letter of
credit rights; (vii) insurance policies or rights relating to any of the
foregoing; (viii) all rights to payment, including those arising in connection
with bank and non-bank credit cards and including any electronic media and
software, pertaining to any and all of the foregoing; and (ix) notes, deposits
or property of account debtors securing the obligations of any such account
debtors to the Lessee;

 

(b)           All
of the Lessee’s present and hereafter acquired inventory (as defined in the
UCC) and including, without limitation, all additions, substitutions and replacements
thereof, wherever located, together with all goods and materials used or usable
in manufacturing, processing, packaging or shipping same in all stages of
production - from raw materials through work-in-process to finished goods;

 

(c)           All
present and hereafter acquired general intangibles (as defined in the UCC), and
shall include, without limitation, all present and future right, title and
interest in and to: (i) all trademarks, tradenames, corporate names, logos and
designs, (ii) patents, together with any improvements on said patents, utility
models, industrial models and designs, (iii) copyrights, (iv) trade secrets, (iv)
licenses, (v) all applications with respect to the foregoing, (vi) all right,
title and interest in and to any and all extensions and renewals,

(vii) goodwill with respect to any of the foregoing, and (viii) customer lists,
distribution agreements, licensing agreements, supply agreements, indemnification
rights and tax refunds, together with all monies and claims for monies now or hereafter
due and payable in connection with any of the foregoing or otherwise;

 

(d)           All
present and hereafter acquired equipment (as defined in the UCC) including,
without limitation, all machinery, equipment, furnishings and fixtures, and all
additions, substitutions and replacements thereof, wherever located, together
with all attachments, components, parts, and accessories installed thereon or
affixed thereto;

 

(e)           All
present and future documents (as defined in the UCC) and any and all warehouse
receipts, bills of lading, shipping documents, chattel paper, instruments and
similar documents, all whether negotiable or not and all goods and Inventory
relating thereto; and

 

(f)            All present and future cash and non-cash
proceeds of all of the foregoing.

 

4

 

Rider “B”- PREPAYMENT RIDER

 

Attached to and made part of the Texas Equipment Lease
(“Lease”) dated 07/25/06 between Quantum Geophysical, Inc., as Lessee
and The CIT Group/Equipment Financing, Inc., as Lessor.

 

If
this Lease is prepaid prior to the date provided for repayment in the Lease,
the Lessee agrees to pay the following fees:

 

four
percent (4%) of the unpaid balance if such prepayment occurs during the first
year 

two percent (2%) of the unpaid balance if such prepayment occurs during the
second year 

one percent (1%) of the unpaid balance if such prepayment occurs during the
third year

 

 

	
  Lessee:

  
	
   

  
	
  Quantum Geophysical Inc.

  	
   

  
	
   

  
	
  By

  	
  /s/ Thomas J. Concannon

  	
   

  	
  Title

  	
  Treasurer

  	
   

  
	
   

  
	
   

  
	
  Lessor:

  	
   

  
	
   

  	
   

  
	
  The CIT Group/Equipment
  Financing, Inc.

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Don A. Luttenegger

  	
   

  
	
  By

  	
  /s/ Don A. Luttenegger

  	
   

  	
  Title

  	
  V.P. Specialty Funding

  	
   

  
									

 

1

 

Rider “C”- COVENANT RIDER

 

ATTACHED TO AND BY THIS REFERENCE MADE A PART OF THE TEXAS EQUIPMENT
LEASE (“LEASE”)

WHEREIN QUANTUM GEOPHYSICAL, INC. IS LESSEE AND THE CIT GROUP/EQUIPMENT
FINANCING, INC. IS

LESSOR DATED 7/25/06.

 

LESSEE COVENANTS AND AGREES
THAT DURING THE TERM OF THIS LEASE, IT WILL BE AN EVENT OF DEFAULT IF IT SHALL
BREACH OR FAIL TO COMPLY WITH ANY OF THE FOLLOWING COVENANTS:

 

1.     ON A QUARTERLY BASIS, NO LATER THAN 45 DAYS AFTER THE END OF EACH FISCAL
QUARTER, LESSEE SHALL PROVIDE DIRECTLY TO The CIT Group/Equipment Financing,
Inc. (CIT) COMPLETE FINANCIAL STATEMENTS (BALANCE SHEET, INCOME STATEMENT AND
STATEMENT OF CASH FLOWS) CERTIFIED BY THE CHIEF FINANCIAL OFFICER.

 

2.     ON AN ANNUAL BASIS, NO LATER THAN 90 DAYS AFTER THE END OF ITS FISCAL
YEAR, LESSEE SHALL PROVIDE DIRECTLY TO The CIT Group/Equipment Financing, Inc.
(CIT) COMPLETE FINANCIAL STATEMENTS (BALANCE SHEET, INCOME STATEMENT AND
STATEMENT OF CASH FLOWS) CERTIFIED BY THE CHIEF FINANCIAL OFFICER.

 

3.     AT ANY TIME DURING THE TERM OF THIS LEASE, THE OWNERSHIP OF LESSEE
CHANGES SUCH THAT GEOKINETICS INC. FAILS TO OWN AT LEAST 80% OF THE OUTSTANDING
VOTING CAPITAL STOCK OF LESSEE WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR.

 

4.     LESSEE IS IN DEFAULT OF ANY OBLIGATION TO PNC BANK.

 

5.     FROM TIME TO TIME, LESSEE SHALL FURNISH TO LESSOR SUCH FURTHER
INFORMATION REGARDING THE BUSINESS AFFAIRS AND FINANCIAL CONDITION OF LESSEE AS
LESSOR MAY REASONABLY REQUIRE.

 

LESSEE:

 

	
  QUANTUM
  GEOPHYSICAL, INC.

  	
   

  
	
   

  
	
  By

  	
  /s/ Thomas J. Concannon

  	
   

  	
  Title

  	
  Treasurer

  	
   

  
						

 

 

	
  Send to
  the attention of:

  	
  Credit
  Compliance Department

  
	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  
	
   

  	
  1540 W.
  Fountainhead Pkwy. 

  
	
   

  	
  Tempe, AZ
  85282

  

 

1

 

Rider “D” - PUT RIDER

 

Attached to and made a part
of the Texas Equipment Lease (“Lease”) dated 7/25/2006 between, Quantum Geophysical, Inc. as Lessee
and The CIT Group/Equipment Financing, Inc. as Lessor.

 

Notwithstanding anything to
the contrary stated in Section A of
the Lease at the expiration of the original term of the Lease, Lessee shall
exercise its purchase option set forth in the Lease and agrees that, in
addition to other amounts due and to become due under the Lease, to pay Lessor
the purchase price of $100.00 provided, however, Lessee shall not be entitled
to receive title to the leased equipment until Lessee has paid in full all rentals
owing under the Lease and has fulfilled all of its other obligations
thereunder.

 

Upon completion of the
foregoing, Lessor shall transfer title to Lessee AS-IS, WHERE-IS, without
recourse, representation or warranty of any kind except that Lessor will warrant
that the Equipment is free and clear of any liens created by Lessor.

 

Lessee:

 

	
  Quantum Geophysical, Inc.

  	
   

  
	
   

  
	
  By

  	
  /s/ Thomas J. Concannon

  	
   

  	
  Title

  	
  Treasurer

  	
   

  
	
   

  
	
   

  
	
  Lessor:

  
	
   

  
	
  The CIT Group/Equipment
  Financing, Inc.

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Don A. Luttenegger

  	
   

  
	
  By

  	
  /s/ Don A. Luttenegger

  	
   

  	
  Title

  	
  V.P. Specialty Funding

  	
   

  

 

 

RIDER “T”

 

Texas Usury Savings Language

 

Attached to
and made a part of the Texas Equipment Lease dated 7/25/2006 between The CIT
Group/Equipment Financing, Inc. as Lessor and Quantum Geophysical, Inc. as
Lessee (“Lease”).

 

RATE PROVISION: In
no event shall Lessee, by acceleration or prepayment of unpaid amounts
hereunder or otherwise, be obligated to pay any interest in excess of the
amount permitted by applicable law. Any acceleration or prepayment of unpaid
amounts hereunder shall be subject to all applicable laws, including rebated of
unearned charges. If in any event whatsoever, Lessor shall receive anything or
value deemed interest under applicable law which would exceed the maximum
amount of interest under applicable law, the excess amount shall be applied to
the reduction of the unpaid payments or shall be refunded to Lessee. All sums
paid or agreed to be paid by Lessee to Lessor for the use, forbearance or
detention of money shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of this
transaction so that the amount of consideration constituting interest is
uniform throughout the term of the Lease and does not exceed the maximum permitted
by applicable law.

 

FINANCE CHARGES: In
the event that the Lease is deemed to be a financing lease or loan agreement,
Lessor and Lessee hereby acknowledge and agree that the difference between (i)
the cost of the Equipment, which is $6,000,000,00, and (ii) the total sum of
the payments $6,840,628.56 shall be interest on the Equipment cost, which is
equal to the rate of 8.72% per annum, and which Lessee hereby agrees to pay.

 

 

	
  Lessee:

  
	
   

  
	
  Quantum
  Geophysical, Inc.

  	
   

  
	
   

  
	
  By

  	
  /s/ Thomas J. Concannon

  	
   

  	
  Title

  	
  Treasurer

  	
   

  
	
   

  
	
   

  
	
  Lessor:

  
	
   

  
	
  The CIT
  Group/Equipment Financing. Inc.

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Don A. Luttenegger

  	
   

  
	
  By

  	
  /s/ Don A. Luttenegger

  	
   

  	
  Title

  	
  V.P. Specialty FundingExhibit 4.1

SUPPLEMENTAL INDENTURE NO. 9

by and between

HOSPITALITY PROPERTIES TRUST

and

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

as of June 15, 2006

SUPPLEMENTAL TO THE INDENTURE DATED AS OF FEBRUARY 25, 1998

________________________

HOSPITALITY PROPERTIES TRUST

6.30% Senior Notes due 2016

________________________

 

  
  

 

This SUPPLEMENTAL INDENTURE NO.
9 (this “Supplemental Indenture”)
made and entered into as of June 15, 2006 between HOSPITALITY PROPERTIES TRUST,
a Maryland real estate investment trust (the “Company”),
and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as Trustee
(the “Trustee”).

WITNESSETH THAT:

WHEREAS, the Company and the
Trustee are parties to an Indenture, dated as of February 25, 1998 (the “Indenture”), relating to the Company’s
issuance, from time to time, of various series of debt securities;

WHEREAS, the Company has
determined to issue debt securities known as its 6.30% Senior Notes due 2016;
and

WHEREAS, the Indenture provides
that certain terms and conditions for each series of debt securities issued by
the Company thereunder may be set forth in an indenture supplemental to the
Indenture;

NOW, THEREFORE, THIS
SUPPLEMENTAL INDENTURE WITNESSETH:

ARTICLE 1

DEFINED TERMS

Section 1.1             The following definitions
supplement, and, to the extent inconsistent with, replace the definitions in
Section 101 of the Indenture:

“Acquired Debt” means Debt of a Person (i) existing at the
time such Person becomes a Subsidiary or (ii) assumed in connection with the
acquisition of assets from such Person, in each case, other than Debt incurred
in connection with, or in contemplation of, such Person becoming a Subsidiary
or such acquisition. Acquired Debt shall be deemed to be incurred on the date
of the related acquisition of assets from any Person or the date the acquired
Person becomes a Subsidiary.

“Annual Debt Service” as of any date means the maximum amount
which is expensed in any 12-month period for interest on Debt of the Company
and its Subsidiaries.

“Business Day” means any day other than a Saturday or Sunday
or a day on which banking institutions in The City of New York or in the city
in which the Corporate Trust Office of the Trustee is located are required or
authorized to close.

“Capital Stock” means, with respect to any Person, any
capital stock (including preferred stock), shares, interests, participation or
other ownership interests (however designated) of such Person and any rights
(other than debt securities convertible into or exchangeable for capital
stock), warrants or options to purchase any thereof.

“Consolidated Income Available for Debt Service” for any
period means Earnings from Operations of the Company and its Subsidiaries plus
amounts which have been deducted, and 

 

 

minus amounts which have been
added, for the following (without duplication): (i) interest on Debt of the
Company and its Subsidiaries, (ii) cash reserves made by lessees as required by
the Company’s leases for periodic replacement and refurbishment of the Company’s
assets, (iii) provision for taxes of the Company and its Subsidiaries based on
income, (iv) amortization of debt discount and deferred financing costs, (v)
provisions for gains and losses on properties and property depreciation and
amortization, (vi) the effect of any noncash charge resulting from a change in
accounting principles in determining Earnings from Operations for such period
and (vii) amortization of deferred charges.

“Corporate Trust Office” means One Federal Street, 3rd Floor, Boston, Massachusetts 02110, or such other
address as may be designated from time to time by the Trustee by providing written
notice to the Company.

“Debt” of the Company or any Subsidiary means, without
duplication, any indebtedness of the Company or any Subsidiary, whether or not
contingent, in respect of (i) borrowed money or evidenced by bonds, notes,
debentures or similar instruments, (ii) indebtedness for borrowed money secured
by any Encumbrance existing on property owned by the Company or any Subsidiary,
to the extent of the lesser of (x) the amount of indebtedness so secured and
(y) the fair market value of the property subject to such Encumbrance, (iii)
the reimbursement obligations, contingent or otherwise, in connection with any
letters of credit actually issued (other than letters of credit issued to
provide credit enhancement or support with respect to other indebtedness of the
Company or any Subsidiary otherwise reflected as Debt hereunder) or amounts
representing the balance deferred and unpaid of the purchase price of any
property or services, except any such balance that constitutes an accrued
expense or trade payable, or all conditional sale obligations or obligations
under any title retention agreement, (iv) the principal amount of all
obligations of the Company or any Subsidiary with respect to redemption,
repayment or other repurchase of any Disqualified Stock, or (v) any lease of
property by the Company or any Subsidiary as lessee which is reflected on the
Company’s consolidated balance sheet as a capitalized lease in accordance with
GAAP, to the extent, in the case of items of indebtedness under (i) through
(iii) above, that any such items (other than letters of credit) would appear as
a liability on the Company’s consolidated balance sheet in accordance with
GAAP, and also includes, to the extent not otherwise included, any obligation
by the Company or any Subsidiary to be liable for, or to pay, as obligor,
guarantor or otherwise (other than for purposes of collection in the ordinary
course of business), Debt of another Person (other than the Company or any
Subsidiary) (it being understood that Debt shall be deemed to be incurred by
the Company or any Subsidiary whenever the Company or such Subsidiary shall
create, assume, guarantee or otherwise become liable in respect thereof).

“Disqualified Stock” means, with respect to any Person, any
Capital Stock of such Person which by the terms of such Capital Stock (or by
the terms of any security into which it is convertible or for which it is
exchangeable or exercisable), upon the happening of any event or otherwise (i)
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise (other than Capital Stock which is redeemable solely in exchange for
common stock or shares), (ii) is convertible into or exchangeable or
exercisable for Debt or Disqualified Stock, or (iii) is redeemable at the
option of the Holder thereof, in whole or in part (other than Capital Stock
which is redeemable solely in exchange for common stock or shares), in each
case on or prior to the stated maturity of the Notes.

 2
 

 

 

“Earnings from Operations” for any period means net earnings
excluding gains and losses on sales of investments, extraordinary items, gains
and losses from early extinguishment of debt and property valuation losses, as
reflected in the financial statements of the Company and its Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP.

“Encumbrance” means any mortgage, lien, charge, pledge or
security interest of any kind.

“Make-Whole Amount”
means, in connection with any optional
redemption or accelerated payment of any Notes prior to December 15, 2015,
the excess, if any, of (i) the aggregate present value as of the date of such
redemption or accelerated payment of each dollar of principal being redeemed or
paid and the amount of interest (exclusive of interest accrued to the date of
redemption or accelerated payment) that would have been payable in respect of
such dollar if such redemption or accelerated payment had been made on
December 15, 2015, determined by discounting, on a semiannual basis, such
principal and interest at the Reinvestment Rate (determined on the third
Business Day preceding the date such notice of redemption is given or
declaration of acceleration is made) from the respective dates on which such
principal and interest would have been payable if such redemption or
accelerated payment had been made on December 15, 2015, over (ii) the
aggregate principal amount of the Notes being redeemed or paid. In the case of
any redemption or accelerated payment of notes on or after December 15,
2015, the Make-Whole Amount means zero. For purposes of this
Supplemental Indenture and the Notes, references in the Indenture to the
payment of the principal (and premium, if any) and interest on the Notes shall
be deemed to include the payment of the Make-Whole Amount, if any, due upon
redemption with respect to the Notes. The Make-Whole Amount shall be calculated
by the Company and set forth in an Officer’s Certificate delivered to the
Trustee, and the Trustee shall be entitled to rely on said Officer’s
Certificate.

“Notes” means the Company’s 6.30% Senior Notes due 2016,
issued under this Supplemental Indenture and the Indenture, as amended or
supplemented from time to time.

“Reinvestment Rate” means a rate per annum equal to the sum
of 0.20% (twenty one hundredths of a percent) plus the yield on treasury
securities at constant maturity under the heading “Week Ending” published in
the Statistical Release under the caption “Treasury Constant Maturities” for
the maturity (rounded to the nearest month) corresponding to the remaining life
to maturity (which, the case of maturities corresponding to the principal and
interest due on the notes at their maturity, shall be deemed to be
December 15, 2015), as of the payment date of the principal being redeemed
or paid. If no maturity exactly corresponds to such maturity, yields for the
two published maturities most closely corresponding to such maturity shall be
calculated pursuant to the immediately preceding sentence and the Reinvestment
Rate shall be interpolated or extrapolated from such yields on a straight-line
basis, rounding in each of such relevant periods to the nearest month. For
purposes of calculating the Reinvestment Rate, the most recent Statistical
Release published prior to the date of determination of the Make-Whole Amount
shall be used.

“Secured Debt” means Debt secured by any mortgage, lien,
charge, pledge or security interest of any kind.

 3
 

 

 

“Statistical Release” means the statistical release
designated “H.15(519)” or any successor publication which is published weekly by
the Federal Reserve System and which establishes yields on actively traded
United States government securities adjusted to constant maturities or, if such
statistical release is not published at the time of any determination under
this Supplemental Indenture, then any publicly available source of similar
market data which shall be designated by the Company.

“Subsidiary” means any corporation or other entity of which a
majority of (i) the voting power of the voting equity securities or (ii) the
outstanding equity interests of which are owned, directly or indirectly, by the
Company or one or more other Subsidiaries of the Company. For the purposes of
this definition, “voting equity securities” means equity securities having
voting power for the election of directors, whether at all times or only so
long as no senior class of security has such voting power by reason of any
contingency.

“Total Assets” as of any date means the sum of (i) the
Undepreciated Real Estate Assets and (ii) all other assets of the Company and
its Subsidiaries determined in accordance with GAAP (but excluding accounts
receivable and intangibles).

“Total Unencumbered Assets” means the sum of (i) those
Undepreciated Real Estate Assets not subject to an Encumbrance for borrowed
money and (ii) all other assets of the Company and its Subsidiaries not subject
to an Encumbrance for borrowed money determined in accordance with GAAP (but
excluding accounts receivable and intangibles).

“Undepreciated Real Estate Assets” as of any date means the
cost (original cost plus capital improvements) of, real estate assets of the
Company and its Subsidiaries on such date, before depreciation and amortization
determined on a consolidated basis in accordance with GAAP.

“Unsecured Debt” means Debt which is not secured by any of
the properties of the Company or any Subsidiary.

ARTICLE 2

TERMS OF THE NOTES

Section 2.1             Pursuant to Section 301 of the
Indenture, the Notes shall have the following terms and conditions:

(a)           Title; Aggregate Principal Amount; Form of Notes.  The Notes shall be Registered Securities
under the Indenture and shall be known as the Company’s “6.30% Senior Notes due
2016.” The aggregate principal amount of Notes to be authenticated and
delivered under this Supplemental Indenture shall initially be limited to
$275,000,000, except as otherwise permitted by the provisions of the Indenture;
provided that the Company may, without the consent of the Holders of the Notes,
reopen this series and issue additional Notes under the Indenture and this Supplemental
Indenture in addition to the $275,000,000 of Notes authorized as of the date
hereof. The Notes (together with the Trustee’s certificate of authentication)
shall be substantially in the form of Exhibit A hereto, which is hereby
incorporated in and made a part of this Supplemental Indenture.

 4
 

 

 

The Notes will be issued in the
form of one or more registered global securities without coupons (“Global Notes”) which will be deposited
with, or on behalf of, The Depository Trust Company (“DTC”), and registered in the name of DTC’s
nominee, Cede & Co. Except under the circumstance described below, the
Notes will not be issuable in definitive form. Unless and until it is exchanged
in whole or in part for the individual Notes represented thereby, a Global Note
may not be transferred except as a whole by DTC to a nominee of DTC or by a
nominee of DTC to DTC or another nominee of DTC or by DTC or any nominee of DTC
to a successor depositary or any nominee of such successor.

So long as DTC or its nominee is
the registered owner of a Global Note, DTC or such nominee, as the case may be,
will be considered the sole owner or holder of the Notes represented by such
Global Note for all purposes under this Supplemental Indenture. Except as
described below, owners of beneficial interest in Notes evidenced by a Global
Note will not be entitled to have any of the individual Notes represented by
such Global Note registered in their names, will not receive or be entitled to
receive physical delivery of any such Notes in definitive form and will not be
considered the owners or holders thereof under the Indenture or this
Supplemental Indenture.

If DTC is at any time unwilling,
unable or ineligible to continue as depositary and a successor depositary is
not appointed by the Company within 90 days, the Company will issue individual
Notes in exchange for the Global Note or Global Notes representing such Notes. In
addition, the Company may at any time and in its sole discretion, subject to
certain limitations set forth in the Indenture, determine not to have any of
such Notes represented by one or more Global Notes and, in such event, will
issue individual Notes in exchange for the Global Note or Global Notes
representing the Notes. Individual Notes so issued will be issued in
denominations of $1,000 and integral multiples thereof.

(b)           Interest and Interest Rate.  The Notes will bear interest at a rate of
6.30% per annum, from June 15, 2006 (or, in the case of Notes issued upon the
reopening of this series of Notes, from the date designated by the Company in
connection with such reopening) or from the immediately preceding Interest
Payment Date to which interest has been paid or duly provided for, payable
semi-annually in arrears on June 15 and December 15 of each year,
commencing December 15, 2006, or if such day is not a Business Day, on the
next succeeding Business Day (each of which shall be an “Interest Payment Date”), to the Persons in
whose names the Notes are registered in the Security Register at the close of
business on the day falling 14 calendar days immediately preceding the
applicable Interest Payment Date (whether or not a Business Day), as the case
may be (each, a “Regular Record Date”).

(c)           Principal Repayment; Currency.  The stated maturity of the Notes is
June 15, 2016; provided, however, the Notes may be earlier redeemed at the
option of the Company as provided in paragraph (d) below. The principal of each
Note payable on its maturity date shall be paid against presentation and
surrender thereof at the Corporate Trust Office of the Trustee, in such coin or
currency of the United States of America as at the time of payment is legal
tender for the payment of public or private debts. The Company will not pay
Additional Amounts (as defined in the Indenture) on the Notes.

 5
 

 

 

(d)           Redemption at the Option of the Company. The Notes will be subject to redemption
at any time at the option of the Company, in whole or in part, upon not less
than 30 nor more than 60 days’ notice to each Holder of Notes to be redeemed at
its address appearing in the Security Register, at a price equal to the sum of
(i) the principal amount of the Notes being redeemed, plus accrued and unpaid
interest to but excluding the applicable Redemption Date, plus (ii) the
Make-Whole Amount, if any. If the notes are redeemed on or after
December 15, 2015, the redemption price will not include the Make-Whole
Amount.

(e)           Notices.  All
notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted by any standard form of
telecommunication. Notices to the Company shall be directed to it at 400 Centre
Street, Newton, Massachusetts 02458, Attention: President; notices to the
Trustee shall be directed to it at One Federal Street, 3rd Floor, Boston,
Massachusetts 02110, Attention: Corporate Trust Department, Re: Hospitality
Properties Trust 6.30% Senior Notes due 2016, or as to either party, at such
other address as shall be designated by such party in a written notice to the
other party.

(f)            Global Note Legend.  Each Global Note shall bear the following
legend on the face thereof:

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

(g)           Applicability of Discharge, Defeasance and Covenant
Defeasance Provisions.  The
Discharge, Defeasance and Covenant Defeasance provisions in Article Fourteen of
the Indenture will apply to the Notes.

ARTICLE 3

ADDITIONAL COVENANTS

Section 3.1             In addition to the covenants of the
Company set forth in Article Ten of the Indenture, for the benefit of the
Holders of the Notes:

(a)           Limitations on Incurrence of Debt.

(i)            The
Company will not, and will not permit any Subsidiary to, incur any Debt if,
immediately after giving effect to the incurrence of such additional Debt and 

 6
 

 

 

the application of the proceeds thereof, the aggregate principal amount
of all outstanding Debt of the Company and its Subsidiaries on a consolidated
basis determined in accordance with GAAP is greater than 60% of the sum (“Adjusted Total Assets”) of (without
duplication) (i) the Total Assets of the Company and its Subsidiaries as of the
end of the calendar quarter covered in the Company’s Annual Report on Form
10-K, or the Quarterly Report on Form 10-Q, as the case may be, most recently
filed with the Securities and Exchange Commission (or, if such filing is not
permitted under the Securities Exchange Act of 1934, as amended, with the
Trustee) prior to the incurrence of such additional Debt and (ii) the purchase
price of any real estate assets or mortgages receivable acquired, and the
amount of any securities offering proceeds received (to the extent that such
proceeds were not used to acquire real estate assets or mortgages receivable or
used to reduce Debt), by the Company or any Subsidiary since the end of such
calendar quarter, including those proceeds obtained in connection with the
incurrence of such additional Debt.

(ii)           In
addition to the foregoing limitations on the incurrence of Debt, the Company
will not, and will not permit any Subsidiary to, incur any Secured Debt if,
immediately after giving effect to the incurrence of such additional Secured
Debt and the application of the proceeds thereof, the aggregate principal
amount of all outstanding Secured Debt of the Company and its Subsidiaries on a
consolidated basis is greater than 40% of Adjusted Total Assets.

(iii)          In
addition to the foregoing limitations on the incurrence of Debt, the Company
will not, and will not permit any Subsidiary to, incur any Debt if the ratio of
Consolidated Income Available for Debt Service to the Annual Debt Service for
the four consecutive fiscal quarters most recently ended prior to the date on
which such additional Debt is to be incurred shall have been less than 1.5 to
1.0, on a pro forma basis after giving effect thereto and to the application of
the proceeds therefrom, and calculated on the assumption that (A) such Debt and
any other Debt incurred by the Company and its Subsidiaries since the first day
of such four-quarter period and the application of the proceeds therefrom,
including to refinance other Debt, had occurred at the beginning of such
period; (B) the repayment or retirement of any other Debt by the Company and
its Subsidiaries since the first date of such four-quarter period had been
repaid or retired at the beginning of such period (except that, in making such
computation, the amount of Debt under any revolving credit facility shall be
computed based upon the average daily balance of such Debt during such period);
(C) in the case of Acquired Debt or Debt incurred in connection with any
acquisition since the first day of such four-quarter period, the related
acquisition had occurred as of the first day of such period with appropriate
adjustments with respect to such acquisition being included in such pro forma
calculation; and (D) in the case of any acquisition or disposition by the
Company or its Subsidiaries of any asset or group of assets since the first day
of such four-quarter period, whether by merger, stock purchase or sale, or asset
purchase or sale, such acquisition or disposition or any related repayment of
Debt had occurred as of the first day of such period with the appropriate
adjustments with respect to such acquisition or disposition being included in
such pro forma calculation. If the Debt giving rise to the need to make the
foregoing calculation or any other Debt incurred after the first day of the
relevant four-quarter period bears interest at a floating rate then, for
purposes of calculating the 

 7
 

 

 

Annual Debt Service, the interest rate on such Debt shall be computed
on a pro forma basis as if the average interest rate which would have been in
effect during the entire such four-quarter period had been the applicable rate
for the entire such period.

(b)           Maintenance of Total Unencumbered Assets.  The Company and its Subsidiaries will
maintain at all times Total Unencumbered Assets of not less than 150% of the
aggregate outstanding principal amount of the Unsecured Debt of the Company and
its Subsidiaries on a consolidated basis.

ARTICLE 4

ADDITIONAL EVENTS OF DEFAULT

Section 4.1             For purposes of this Supplemental
Indenture and the Notes, in addition to the Events of Default set forth in
Section 501 of the Indenture, it shall also constitute an “Event of Default” if
a default under any bond, debenture, note or other evidence of indebtedness of
the Company (including a default with respect to any other series of
securities), or under any mortgage, indenture or other instrument of the
Company under which there may be issued or by which there may be secured or
evidenced any indebtedness for money borrowed by the Company (or by any
Subsidiary, the repayment of which the Company has guaranteed or for which the
Company is directly responsible or liable as obligor or guarantor) having an
aggregate principal amount outstanding of at least $20,000,000, whether such
indebtedness now exists or shall hereafter be incurred or created, which
default shall have resulted in such indebtedness becoming or being declared due
and payable prior to the date on which it would otherwise have become due and
payable, without such indebtedness having been discharged or such acceleration
having been rescinded or annulled within a period of ten days after there shall
have been given, by registered or certified mail, to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least 25% in principal
amount of the outstanding Notes, a written notice specifying such default and
requiring the Company to cause such indebtedness to be discharged or cause such
acceleration to be rescinded or annulled and stating that such notice is a “Notice
of Default” hereunder.

Section 4.2             Notwithstanding any provisions to
the contrary in the Indenture, upon any acceleration of the Notes under Section
502 of the Indenture, the amount immediately due and payable in respect of the
Notes shall equal the Outstanding principal amount thereof, plus accrued and
unpaid interest thereon, plus, if such acceleration occurs prior to
December 15, 2015, the Make-Whole Amount.

ARTICLE 5

EFFECTIVENESS

This Supplemental Indenture
shall be effective for all purposes as of the date and time this Supplemental
Indenture has been executed and delivered by the Company and the Trustee in
accordance with Article Nine of the Indenture. As supplemented hereby, the
Indenture is hereby confirmed as being in full force and effect.

 8
 

 

 

ARTICLE 6

MISCELLANEOUS

Section 6.1             In the event any provision of this
Supplemental Indenture shall be held invalid or unenforceable by any court of
competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof or any provision of the Indenture.

Section 6.2             To the extent that any terms of
this Supplemental Indenture or the Notes are inconsistent with the terms of the
Indenture, the terms of this Supplemental Indenture or the Notes shall govern
and supersede such inconsistent terms.

Section 6.3             This Supplemental Indenture shall
be governed by and construed in accordance with the laws of The Commonwealth of
Massachusetts.

Section 6.4             This Supplemental Indenture may be
executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.

[Signature Page Follows]

 9
 

 

 

IN WITNESS WHEREOF, the Company
and the Trustee have caused this Supplemental Indenture to be executed as an
instrument under seal in their respective corporate names as of the date first
above written.

	
  

  	
  HOSPITALITY PROPERTIES TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John G. Murray

  
	
   

  	
   

  	
  Name: John G. Murray

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION, as

  
	
   

  	
        Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan Freedman

  
	
   

  	
   

  	
  Name: Susan Freedman

  
	
   

  	
   

  	
  Title: Vice President

  

 

[Signature
Page to Supplemental Indenture No. 9]

 10

 

 

EXHIBIT A

(Face of Note)

6.30% Senior Note due 2016

No.                                                                                                                                                                     $_______________

HOSPITALITY PROPERTIES TRUST

promises to pay to
_______________________________________ or registered assigns, the principal
sum of ______________________ ($_______) on June 15, 2016, subject to the terms
set forth on the reverse of this Note and the terms of the Indenture referred
to therein.

Interest Payment Dates:  Each June 15 and December 15 (or if
such day is not a Business Day, the next succeeding Business Day), commencing
December 15, 2006.

Record Dates: 
The day falling 14 calendar days prior to any Interest Payment Date.

CUSIP No:  _____________

ISIN No: _______________

HOSPITALITY
PROPERTIES TRUST

By:______________________________

Name:  

Title:

CERTIFICATE
OF AUTHENTICATION

Dated:

This is one of the Notes referred to in the within-mentioned Indenture:

U.S. BANK NATIONAL ASSOCIATION, as Trustee

By:______________________________

Authorized Officer

 A-1
 

 

 

[THE
FOLLOWING CONSTITUTES THE REVERSE OF THE SECURITY]

HOSPITALITY PROPERTIES TRUST

6.30% Senior Note due 2016

Capitalized terms used herein
have the meanings assigned to them in the Indenture (as defined below) unless
otherwise indicated.

1.             Interest.  Hospitality Properties Trust, a Maryland real
estate investment trust (the “Company”), promises to pay interest on the
principal amount of this Note at the rate and in the manner specified below.

The Company shall pay in cash
interest on the principal amount of this Note at the rate per annum of
6.30%.  The Company will pay interest semi-annually
in arrears on June 15 and December 15 of each year, beginning on
December 15, 2006, or if any such day is not a Business Day (as defined in
the Indenture), on the next succeeding Business Day (each an “Interest Payment
Date”), to Holders of record on the day falling 14 calendar days immediately
preceding such Interest Payment Date (whether or not a Business Day).

Interest will be computed on the
basis of a 360-day year consisting of twelve 30-day months.  Interest shall accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from
June 15, 2006.

2.             Method
of Payment.  The Company will pay
interest on the Notes (except defaulted interest) to the Persons who are
registered Holders of Notes at the close of business on the record date next
preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date.  The Company will pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts.  The
Company, however, may pay principal, premium, if any, and interest by check
payable in such money.  It may mail an
interest check to a Holder’s registered address.

3.             Indenture.  The Company issued the Notes under an
Indenture dated as of February 25, 1998 and Supplemental Indenture
No. 9 dated as of June 15, 2006 (collectively, the “Indenture”) between
the Company and the Trustee.  The terms
of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as in effect on the
date of the Indenture and Holders of the Notes are referred to the Indenture
and such Act for a statement of such terms. 
The terms of the Indenture shall govern any inconsistencies between the
Indenture and the Notes.  The Notes are
senior unsecured general obligations of the Company initially issued in an
aggregate principal amount of $275,000,000.

4.             Optional
Redemption.  The Notes will be
subject to redemption at any time at the option of the Company, in whole or in
part, upon not less than 30 nor more than 60 days’ notice, at a redemption
price equal to the sum of (i) the principal amount of the Notes being redeemed,
plus accrued and unpaid interest to but excluding the applicable Redemption
Date and (ii) the Make-Whole Amount.

 A-2
 

 

 

As used herein the term “Make-Whole Amount” means, in
connection with any optional redemption or accelerated payment of any Notes
prior to December 15, 2015, the excess, if any, of (i) the aggregate present value as of the date of such redemption or
accelerated payment of each dollar of principal being redeemed or paid and the
amount of interest (exclusive of interest accrued to the date of redemption or
accelerated payment) that would have been payable in respect of such dollar if
such redemption or accelerated payment had been made on December 15,
2015, determined by discounting, on a
semiannual basis, such principal and interest at the Reinvestment Rate (determined
on the third Business Day preceding the date such notice of redemption is given
or declaration of acceleration is made) from the respective dates on which such
principal and interest would have been payable if such redemption or
accelerated payment had been made on December 15, 2015, over (ii) the aggregate principal amount of the
Notes being redeemed or paid.  In the
case of any redemption or accelerated payment of notes on or after
December 15, 2015, the Make-Whole Amount means zero. For purposes of
the Indenture and the Notes, references in the Indenture to the payment of the
principal (and premium, if any) and interest on the Notes shall be deemed to
include the payment of the Make-Whole Amount, if any, due upon redemption with
respect to the Notes.  The Make-Whole
Amount shall be calculated by the Company and set forth in an Officer’s
Certificate delivered to the Trustee, and the Trustee shall be entitled to rely
on said Officer’s Certificate.

As used herein the term “Reinvestment
Rate” means a rate per annum equal to the sum of 0.20% (twenty one hundredths
of a percent) plus the yield on treasury securities at constant maturity under
the heading “Week Ending” published in the Statistical Release (as defined
herein) under the caption “Treasury Constant Maturities” for the maturity
(rounded to the nearest month) corresponding to the remaining life to maturity
(which, in the case of maturities corresponding to the principal and interest
due on the Notes at their maturity, shall be deemed to be December 15,
2015), as of the payment date of the principal being redeemed or paid.  If no maturity exactly corresponds to such
maturity, yields for the two published maturities most closely corresponding to
such maturity shall be calculated pursuant to the immediately preceding
sentence and the Reinvestment Rate shall be interpolated or extrapolated from
such yields on a straight-line basis, rounding in each of such relevant periods
to the nearest month.  For purposes of calculating
the Reinvestment Rate, the most recent Statistical Release published prior to
the date of determination of the Make-Whole Amount shall be used.

As used herein the term “Statistical
Release” means the statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Federal Reserve System and which
establishes yields on actively traded United States government securities
adjusted to constant maturities or, if such statistical release is not
published at the time of any determination under the Indenture, then any
publicly available source of similar market data which shall be designated by
the Company.

5.             Mandatory
Redemption.  The Company shall not be
required to make sinking fund or redemption payments with respect to the Notes.

6.             Notice
of Redemption.  Notice of redemption
shall be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder of Notes to be redeemed at its registered
address.  Notes may be redeemed in part
but only in whole multiples of $1,000, unless 

 A-3
 

 

 

all of the Notes held by a Holder are to be redeemed.  On and after the Redemption Date, interest
ceases to accrue on Notes or portions of them called for redemption.

7.             Denominations,
Transfer, Exchange.  The Notes are in
registered form without coupons in denominations of $1,000 and integral
multiples of $1,000 in excess thereof. 
The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture.  The Security
Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay any taxes and fees
required by law or permitted by the Indenture. 
The Security Registrar need not exchange or register the transfer of any
Note or portion of a Note selected for redemption.  Also, it need not exchange or register the
transfer of any Notes for a period of 15 days before the mailing of a notice of
redemption of Notes, or during the period between a record date and the
corresponding Interest Payment Date.

8.             Defaults
and Remedies.  In case an Event of
Default (as defined in the Indenture) with respect to the Notes shall have
occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and
subject to the provisions provided in the Indenture.

9.             Actions
of Holders.  The Indenture contains
provisions permitting the Holders of not less than a majority of the aggregate
principal amount of the outstanding Notes, subject to certain exceptions as
provided in the Indenture, on behalf of the Holders of all such Notes at a
meeting duly called and held as provided in the Indenture, to make, give or
take any request, demand, authorization, direction, notice, consent, waiver or
other action provided in the Indenture to be made, given or taken by the
Holders of the Notes, including without limitation, waiving (a) compliance by
the Company with certain provisions of the Indenture, and (b) certain past
defaults under the Indenture and their consequences.  Any resolution passed or decision taken at
any meeting of the Holders of the Notes in accordance with the provisions of
the Indenture shall be conclusive and binding upon such Holders and upon all
future Holders of this Note and other Notes issued upon the registration of
transfer hereof or in exchange heretofore or in lieu hereof.

10.           Persons
Deemed Owners.  The Company, the
Trustee, and any agent of the Company or the Trustee may deem and treat the
Person in whose name this Note is registered on the Security Register as its
absolute owner for all purposes.

11.           Authentication.  This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

12.           Governing
Law.  THE INTERNAL LAW OF THE
COMMONWEALTH OF MASSACHUSETTS SHALL GOVERN AND BE USED TO CONSTRUE THE
INDENTURE AND THE NOTES.

13.           No
Personal Liability.  THE DECLARATION
OF TRUST OF THE COMPANY, AMENDED AND RESTATED ON AUGUST 21, 1995, A COPY OF
WHICH, TOGETHER WITH ALL AMENDMENTS AND SUPPLEMENTS THERETO (THE “DECLARATION”),
IS DULY FILED IN THE OFFICE OF THE STATE DEPARTMENT OF ASSESSMENTS AND TAXATION
OF MARYLAND, PROVIDES THAT THE NAME “HOSPITALITY 

 A-4
 

 

 

PROPERTIES TRUST” REFERS TO THE TRUSTEES UNDER THE DECLARATION
COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO
TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF THE COMPANY SHALL BE HELD
TO ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF, OR
CLAIM AGAINST, THE COMPANY.  ALL PERSONS
DEALING WITH THE COMPANY, IN ANY WAY, SHALL LOOK ONLY TO THE ASSETS OF THE
COMPANY FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY OBLIGATION.

The Company will furnish to any
Holder upon written request and without charge a copy of the Indenture.  Request may be made to:

Hospitality
Properties Trust

400 Centre Street

Newton, MA 02458

Telecopier No.:  (617) 964-8389

Attention: President

or such other
address as the Company may specify pursuant to the Indenture.

 A-5
 

 

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

[I] [We] assign and transfer this Note to ______________________________________________________

__________________________________ [Print or type assignee’s
name, address and zip code] 

__________________________________ [Insert assignee’s soc.
sec. or tax I.D. no.] and irrevocably 

appoint_________________________________________________________ to
transfer this Note on the books of the 

Company.  The agent may
substitute another to act for him.

Date:  _______________

Your Signature:

______________________________

[Sign exactly as your name
appears on

the face of this Note]

Signature
Guarantee:

______________________________

[The
signature must be guaranteed by

an officer of a participant in a
recognized

signature guarantee program.  Notarized

or
witnessed signatures are not acceptable.]

 A-6

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