Document:

Exhibit 10.41

 

OFFICE LEASE AGREEMENT

 

between

 

COLLEGE PARK PLAZA, LLC

(Landlord)

 

and

 

REPUBLIC AIRWAYS HOLDINGS, INC.

(Tenant)

 

 

COLLEGE PARK PLAZA

8909 Purdue Road

Indianapolis, Indiana

 

i

 

INDEX

 

	
  ARTICLE I

  	
  TERM

  
	
   

  	
  §1.01

  	
  Length

  
	
   

  	
  §1.02

  	
  Confirmation

  
	
   

  	
  §1.03

  	
  Options
  to Renew

  
	
   

  	
  §1.04

  	
  Right of First Offer

  
	
   

  	
  §1.05

  	
  Limited Right of Termination

  
	
   

  	
  §1.06

  	
  Surrender

  
	
   

  	
  §1.07

  	
  Holding
  Over

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  RENT

  
	
   

  	
  §2.01

  	
  Base
  Rent

  
	
   

  	
  §2.02

  	
  Real
  Estate Taxes

  
	
   

  	
  §2.03

  	
  Operating Expenses

  
	
   

  	
  §2.04

  	
  When Due and Payable

  
	
   

  	
  §2.05

  	
  Proration

  
	
   

  	
  §2.06

  	
  Late
  Payment

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  USE OF PREMISES

  
	
   

  	
  §3.01

  	
  Use

  
	
   

  	
  §3.02

  	
  Laws

  
	
   

  	
  §3.03

  	
  Common
  Areas

  
	
   

  	
  §3.04

  	
  Signage

  
	
   

  	
  §3.05

  	
  Relocation

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  INSURANCE/INDEMNIFICATION

  
	
   

  	
  §4.01

  	
  Tenant’s
  Insurance

  
	
   

  	
  §4.02

  	
  Landlord’s Insurance

  
	
   

  	
  §4.03

  	
  Waiver of Subrogation

  
	
   

  	
  §4.04

  	
  Indemnification

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  IMPROVEMENTS TO PREMISES

  
	
   

  	
  §5.01

  	
  Initial Improvements

  
	
   

  	
  §5.02

  	
  Acceptance

  
	
   

  	
  §5.03

  	
  Tenant’s Alterations

  
	
   

  	
  §5.04

  	
  Mechanics’
  Liens

  
	
   

  	
  §5.05

  	
  Fixtures

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  MAINTENANCE AND SERVICES

  
	
   

  	
  §6.01

  	
  Ordinary
  Services

  
	
   

  	
  §6.02

  	
  Extraordinary Services

  
	
   

  	
  §6.03

  	
  Excessive
  Use

  
	
   

  	
  §6.04

  	
  Maintenance by Tenant

  
	
   

  	
  §6.05

  	
  Maintenance by Landlord

  

 

ii

 

	
   

  	
  §6.06

  	
  Interruption

  
	
   

  	
  §6.07

  	
  Right
  of Entry

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  FINANCIAL INFORMATION

  
	
   

  	
  §7.01

  	
  Financial
  Reports

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  CASUALTIES

  
	
   

  	
  §8.01

  	
  General

  
	
   

  	
  §8.02

  	
  Substantial Destruction

  
	
   

  	
  §8.03

  	
  Tenant’s Negligence

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  CONDEMNATION

  
	
   

  	
  §9.01

  	
  Right
  to Award

  
	
   

  	
  §9.02

  	
  Effect of Condemnation

  
	
   

  	
  §9.03

  	
  Interruption

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  ASSIGNMENT/SUBLETTING

  
	
   

  	
  §10.01

  	
  Actions
  Covered

  
	
   

  	
  §10.02

  	
  Restrictions

  
	
   

  	
  §10.03

  	
  Liability to Landlord

  
	
   

  	
  §10.04

  	
  Excess
  Rents

  
	
   

  	
  §10.05

  	
  Recapture

  
	
   

  	
  §10.06

  	
  Landlord’s Transfers

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  RULES & REGULATIONS

  
	
   

  	
  §11.01

  	
  Landlord’s
  Rules

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  MORTGAGE LENDERS

  
	
   

  	
  §12.01

  	
  Subordination

  
	
   

  	
  §12.02

  	
  Written
  Agreement

  
	
   

  	
  §12.03

  	
  Estoppel Certificate

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  ENVIRONMENTAL COVENANTS

  
	
   

  	
  §13.01

  	
  Prohibitions

  
	
   

  	
  §13.02

  	
  Inspection

  
	
   

  	
  §13.03

  	
  Indemnification

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  DEFAULT AND REMEDIES

  
	
   

  	
  §14.01

  	
  Defaults

  
	
   

  	
  §14.02

  	
  Grace
  Period

  
	
   

  	
  §14.03

  	
  Remedies

  
	
   

  	
  §14.04

  	
  Damages

  
	
   

  	
  §14.05

  	
  Waiver of Jury Trial

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
  QUIET ENJOYMENT

  

 

iii

 

	
   

  	
  §15.01

  	
  Covenant

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVI

  	
  NOTICES

  
	
   

  	
  §16.01

  	
  Notices

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVII

  	
  GENERAL

  
	
   

  	
  §17.01

  	
  Entire
  Agreement

  
	
   

  	
  §17.02

  	
  Amendment

  
	
   

  	
  §17.03

  	
  Applicable
  Law

  
	
   

  	
  §17.04

  	
  Waiver

  
	
   

  	
  §17.05

  	
  Time
  of Essence

  
	
   

  	
  §17.06

  	
  Headings

  
	
   

  	
  §17.07

  	
  Severability

  
	
   

  	
  §17.08

  	
  Successors and Assigns

  
	
   

  	
  §17.09

  	
  Commissions

  
	
   

  	
  §17.10

  	
  Recordation

  
	
   

  	
  §17.11

  	
  Perpetuities

  
	
   

  	
  §17.12

  	
  Liability Limitation

  
	
   

  	
  §17.13

  	
  Authority

  
	
   

  	
  §17.14

  	
  Exhibits

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Floor Plan of Premises

  
	
  Exhibit B

  	
  Location of Designated
  Parking Spaces

  
	
  Exhibit C

  	
  Space Plan of Premises

  
	
  Exhibit D

  	
  Rules and Regulations

  
	
  Exhibit E

  	
  Form of Satellite Dish License

  
	
  Exhibit F

  	
  Generator Specifications

  

 

iv

 

OFFICE LEASE AGREEMENT

 

THIS OFFICE LEASE AGREEMENT (“Lease”) is made
as of the 23rd day of April, 2004, by and between COLLEGE PARK
PLAZA, LLC (the “Landlord”) and REPUBLIC AIRWAYS HOLDINGS, INC., an Indiana
corporation (the “Tenant”).

 

WITNESSETH, that for good and valuable consideration, the Landlord
hereby leases to the Tenant, and the Tenant hereby leases from the Landlord,
certain space containing a conclusive
and agreed-upon 36,797 rentable square feet of floor area (the
“Premises”) on the 3rd floor of an office building (the “Building”), as more
particularly shown on the floor plan attached hereto as Exhibit A, which Building
together with other real property and improvements is located at 8909 Purdue
Road in Indianapolis, Indiana (collectively the “Property”), all upon the terms
and conditions set forth in this Lease.

 

ARTICLE I - TERM

 

§1.01                    Length.  This Lease shall be for a term of eleven (11) years (the “Term”) which
begins on the date Landlord substantially completes the initial improvements to
the Premises described in §5.01 below  as
certified by a registered architect (the “Commencement Date”).  The Term shall expire on the 11th
anniversary of the Commencement Date (the “Expiration Date”).  Provided Tenant does not interfere with
Landlord’s completion of the initial improvements, Tenant shall have the right
to enter into occupancy of the Premises for a reasonable period of time prior
to the Commencement Date (as reasonably determined by Landlord, but in any
event not earlier than 45 days prior to the Commencement Date) for the purpose
of constructing improvements or installing fixtures therein (and without
conducting business therein) (the “Pre-Commencement Period”).  During the Pre-Commencement Period, all
terms of this Lease except that regarding the payment of rent and other charges
shall apply to such occupancy.

 

§1.02                    Confirmation.  Landlord shall, within thirty (30) days after the
commencement of the Term, confirm to Tenant in writing the actual dates of the
Commencement Date and the Expiration Date.

 

§1.03                    Options to Renew.  Tenant shall have two (2) successive options to renew the Term of the Lease upon its
expiration for an additional period of five
(5) years each (each a “Renewal Term,” which shall be deemed part of the
Term), subject to the following provisions:

 

(A)                              In
order to exercise either option to renew the Lease, Tenant must give Landlord
written notice of its interest to renew not earlier than 365 days and not later
than 180 days before the expiration of the then-applicable Term.  Within ten (10) days of receipt of such
notice, Landlord shall provide to Tenant, in writing, the proposed Rent for
such Renewal Term.  All terms of the
Lease shall remain in full force and effect for each Renewal Term, except that
the Rent applicable during the period of renewal shall be at the
then-prevailing market rate of Rent and all other charges for first-class
space, with such market rate to reflect such factors as the Tenant’s use of the
premises, location of the Building, size of rental area, condition of the
Premises, and the time the particular rate under consideration becomes
effective.  However, in no event shall
the Rent for either Renewal Term be less than that in effect at the expiration
of the

 

1

 

immediately preceding Term of the Lease.  Tenant shall, within thirty (30) days of receipt from Landlord of
the proposed Rent for the Renewal Term, notify Landlord that it is exercising
its option to renew.  If Tenant fails to
so notify Landlord within such thirty (30) day period, Tenant shall be deemed
to have failed to exercise its right for a Renewal Term and all of Tenant’s
then-remaining rights and options to renew shall be automatically terminated
and of no further force or effect.

 

(B)                                If
Tenant does not accept Landlord’s determination of the market rate of Rent
contained in a notice to Tenant under subsection (A) above, then Tenant
shall within 10 days after receiving Landlord’s statement notify Landlord in
writing that it elects to have such value determined by a panel of 3 licensed
real estate brokers or appraisers, one of whom shall be selected by Landlord
within 3 days after the end of such 10 day period, one of whom shall be selected
by Tenant within 3 days after the end of such 10 day period, and the third of
whom shall be selected by the first two within 3 days after the first two are
selected.  Each broker or appraiser,
within 10 days after the third such party is so selected, shall submit a
determination of such market Rent, and the average of the two closest
determinations shall be binding on the parties for purposes of calculating rent
during the relevant Renewal Term. 
Landlord and Tenant shall each pay the fee of the broker or appraiser
selected by it and they shall share equally the payment of the fee of the third
such party.  If Tenant does not notify
Landlord within the 10 day period described above of its election to have the
market rate determined by the independent panel, the rate set forth in
Landlord’s notice given under subsection (A) above shall be binding on the
parties for the relevant Renewal Term.

 

(C)                                If
Tenant fails to give notice exercising either of the foregoing options by the
date required herein, or if at the time Tenant exercises either such option or
at commencement of the applicable Renewal Term the Tenant is in default of any
term of this Lease, or if this Lease is assigned by Tenant or the Premises
sublet in whole or in part, then all of Tenant’s then-remaining rights and
options to renew shall be automatically terminated and of no further force or
effect.

 

§1.04                    Right of First Offer.  Tenant shall have a right of first offer to
lease available space located in the Building, to the extent previously occupied
by another tenant but becoming available for lease after the date of this Lease
(the “Expansion Space”), subject to any similar rights or options of other
tenants under leases in existence prior to the date of this Lease (and to
Landlord’s right to renew or extend the existing leases of other tenants), and
subject to the following additional terms:

 

(A)                              After
the date on which the Expansion Space is to become vacant is known to Landlord
with reasonable certainty, Landlord shall deliver to Tenant a notice offering
such space to Tenant (the “Expansion Availability Notice”).  Such Expansion Availability Notice shall
include (1) the date on which the Tenant may occupy such Expansion Space, (2)
the Base Rent to apply to the Expansion Space, which Base Rent shall be at a
per square foot rate which is equal to the greater of (i) the market rate in
effect for comparable space in the area of the Premises at the time, or (ii)
the rate of Base Rent for the remainder of the Term under the Lease, and (3)
any other important terms upon which the Landlord is offering the Expansion
Space to the Tenant.

 

2

 

(B)                                In
order to exercise its rights under this section, Tenant must give Landlord
written notice of its election to accept the offer (the “Expansion Acceptance
Notice”) within ten (10) days after receiving the Expansion Availability
Notice.

 

(C)                                If
Tenant timely accepts the Landlord’s offer in accordance with
subsection (B) above, then Tenant’s leasing of the Expansion Space shall
be under all terms of this Lease for the remainder of the Term, except that (i)
the Base Rent shall be as determined in accordance with the provisions above,
and (ii) the fraction used for Tenant’s Proportionate Share of Real Estate
Taxes, and Operating Expenses shall be increased proportionately to reflect the
addition of the Expansion Space to the Premises.  Furthermore, within fifteen (15) days after the Expansion
Acceptance Notice, the parties shall execute a written amendment to this Lease
describing the addition of the Expansion Space to the Premises and setting
forth the foregoing changes to this Lease.

 

(D)                               Tenant
shall lease the Expansion Space for the period from the date the Tenant may
occupy the Expansion Space as set forth in the Expansion Availability Notice to
the expiration of the Term of this Lease.

 

(E)                                 If
Tenant fails to give notice accepting the Landlord’s offer by the time required
above, or if at the time Tenant accepts such offer or at the time Tenant’s
lease of the Expansion Space becomes effective the Tenant is in default of any
term of this Lease, or if this Lease is assigned by Tenant or the Premises
sublet in whole or in part, then Tenant’s right of first offer provided in this
section shall be automatically terminated and of no further force or
effect, and Landlord shall have the right to lease the Expansion Space to any
parties and upon any terms it sees fit.

 

§1.05                    Limited Right of Termination.  Tenant shall have a conditional right to
terminate this Lease by (a) giving Landlord written notice of its election to
terminate (the “Termination Notice”) not earlier than the 365th day prior to,
and not later than the 270th day prior to, the 6th anniversary of the
Commencement Date (the “Termination Period”), and (b) paying to Landlord, at
the time of the Termination Notice, a fee (the “Termination Fee”) equal to (i)
the then-unamortized value of all costs and expenses incurred by Landlord in
any connection with the Lease, including all costs of constructing improvements
(whether paid directly by Landlord or indirectly through allowances to Tenant),
all out-of-pocket costs of brokerage commissions, legal fees and other costs,
and all other rent concessions, moving allowances or credits, with such
amortization to be calculated with interest at the annual rate of 10% over the
Term and prorated to the date the termination is to become effective, and (ii)
a separate fee of 6 times the monthly installment of Rent (including all Base
Rent and Additional rent) which will be in effect at the time the termination
is to become effective.  Within ten (10)
days after request by Tenant, Landlord shall provide Tenant with a written
statement of its calculation of the Termination Fee.  If (and only if) Tenant both delivers the Termination Notice and
pays the Termination Fee within the Termination Period, and further provided
that Tenant is not in default (beyond any applicable notice and/or cure period)
of any term in this Lease either on the date of the Termination Notice or on
the date on which such termination is to become effective, then the Lease will
be terminated effective on the 6th anniversary of the Commencement Date.  Tenant

 

3

 

shall not have the right to terminate this Lease if it fails either to
deliver the Termination Notice or pay the Termination Fee within the
Termination Period.

 

§1.06                    Surrender.  The Tenant shall at the expiration of the
Term or any earlier termination of this Lease (a) promptly surrender to the
Landlord possession of the Premises, including any fixtures or other
improvements which under the provisions of this Lease are property of the
Landlord, all in good order and repair (ordinary wear and tear excepted) and
broom clean, (b) remove from the Premises the Tenant’s signs, goods and effects
and any machinery, trade fixtures and equipment used in conducting the Tenant’s
trade or business and not owned by the Landlord and (c) repair any damage to
the Premises or the Building caused by such removal.

 

§1.07                    Holding Over.  If the Tenant continues to occupy the
Premises beyond the Expiration Date or any earlier termination of this Lease,
such occupancy shall be subject to all of the same terms and conditions as are
contained in this Lease, except that the Base Rent payable during the period of
such occupancy shall be equal to 1.50 times the amount of all Base Rent which
was last in effect during the Term. 
Nothing in the foregoing shall be deemed in any way to limit or impair
the Landlord’s right to immediately evict the Tenant or exercise its other
rights and remedies under the provisions of this Lease or applicable law,
including the collection of consequential and other damages, on account of the
Tenant’s occupancy of the Premises without having obtained Landlord’s prior
consent.

 

ARTICLE II - RENT

 

§2.01                    Base Rent.  Tenant shall pay a minimum annual rental in
each one-year period during the Term hereof which shall be referred to
hereinafter as “Base Rent.”  Base Rent
shall be calculated and increased for each such year as follows:

 

(A)                              Base
Rent for lease years 1 through 6 of the Term shall be the sum of $607,150.50
(representing $16.50 per rentable square foot of the Premises), payable in
equal monthly installments of $50,595.88 each. 
Notwithstanding the foregoing or any other provisions of this Lease, the
monthly installments of Base Rent for the first 12 months of the Term shall be
abated.

 

(B)                                Base Rent for lease years 7 through 11 of the
Term shall be the sum of $643,947.50 (representing $17.50 per rentable square
foot of the Premises), payable in equal monthly installments of $53,662.29
each.

 

§2.02                    Real Estate Taxes.  Beginning on January 1, 2006, Tenant
shall pay to Landlord in each year of the Term a proportionate share (the
“Proportionate Share”) of the amount, if any, by which the Real Estate Taxes
(defined below) applicable to the Property in each such year exceeds the Base
Real Estate Taxes (defined below).  For
these purposes, the fraction used in determining the Tenant’s Proportionate
Share shall be the fraction reached by dividing the number of rentable square
feet of the Premises set forth on page 1 hereof by the total number of rentable
square feet in the Building.  The term
“Real Estate Taxes” shall be construed to mean

 

4

 

any and all real property taxes, assessments, sewer rates, ad valorem
charges, all other governmental impositions in the nature of any of the
foregoing, and all costs and expenses (including attorneys’ fees and costs of
court or other proceedings) incurred in contesting property tax assessments or
any other such governmental impositions. 
The “Base Real Estate Taxes” shall be the Real Estate Taxes imposed in
connection with the Building and the Property and allocable to the calendar
year 2005.  Tenant shall not be entitled
to any credit or rebate in the event Real Estate Taxes during any one year in
the Term are lower than the Base Real Estate Taxes.

 

§2.03                    Operating Expenses.  Tenant shall pay to Landlord in each year or
part year of the Term a Proportionate Share of the amount by which the
Operating Expenses (defined below) for each such year exceed the Base Operating
Expenses (defined below).  “Operating
Expenses” shall mean all expenses, costs and disbursements of every kind and
nature incurred in connection with the ownership, management, maintenance,
repair and operation of the Building and Property, including but not limited to
the following: (1) cost of wages and salaries of all employees engaged in the
operation and maintenance of the Building and surrounding grounds and common
areas, including but not limited to payroll taxes, insurance and benefits (all
adjusted and prorated equitably with respect to employees which also provide
services to other buildings); (2) cost of all supplies and materials used in
the operation, maintenance and repair of the Building and all other portions of
the Property; (3) cost of all utilities (including surcharges but excluding
late fees), including but not limited to water, sewer, electricity and gas for
both the rentable space and the common areas of the Building, and including all
costs of repairing, replacing, improving and altering utility systems, lines
and equipment at the Premises, Building and Property; (4) costs incurred under
all maintenance and service agreements for the Building, including but not
limited to access control, energy management services, window cleaning,
elevator maintenance, janitorial service and landscaping; (5) cost of insurance
relating to all of such property, including but not limited to the cost of
casualty and liability insurance; (6) cost of non-capital repairs and general
maintenance to the Building; (7) all property management fees and expenses or,
in lieu thereof (at the discretion of Landlord), an administrative charge of 10%
of all other Operating Expenses; (8) cost of audit and accounting services; (9)
the costs of any improvements required or made necessary by law or changes in
law; (10) cost of any capital improvements made to the Building that, in
Landlord’s reasonable judgment, will reduce other operating expenses or
increase energy efficiency, provided such costs are amortized in accordance
with generally accepted accounting principles (“GAAP”) at such rates as may
have been paid by Landlord on funds borrowed for the purpose of constructing
such capital improvements or, if no such funds were borrowed, at such
reasonable rates as are not in conflict with GAAP; and (11) cost of any
licenses or permits required by any public authority.  For purposes of this provision, Operating Expenses shall not
include (a) the cost of capital improvements (except as expressly provided
above), (b) the costs of tenant improvements within tenant spaces, (c) ground
rent or debt service, or (d) depreciation. 
The “Base Operating Expenses” shall be the Operating Expenses allocable
to the calendar year 2005.  Tenant shall
not be entitled to any credit or rebate in the event Operating Expenses in any
one year during the Term are lower than the Base Operating Expenses.

 

5

 

§2.04                    When Due and Payable.

 

(A)                              All
rental obligations set forth in the foregoing provisions and elsewhere in this
Lease, except for Base Rent, shall be referred to hereinafter as “Additional
Rent.”  All Base Rent and Additional Rent
are sometimes hereinafter together referred to as “Rent.”

 

(B)                                The
Base Rent for each year (or part thereof) during the Term shall be due and
payable in twelve (12) consecutive, equal monthly installments, in advance, on
the first day of each calendar month during the Term.

 

(C)                                Tenant
shall pay all Additional Rent within thirty (30) days after being billed
therefor by Landlord.  However, Landlord
may, at its discretion, (a) make from time to time during the Term a reasonable
estimate of the Additional Rent which may become due for any year, (b) require
the Tenant to pay to the Landlord such Additional Rent in equal installments at
the time and in the manner that the Tenant is required hereunder to pay monthly
installments of Base Rent, and (c) at the Landlord’s reasonable discretion,
increase or decrease from time to time during such year the amount initially
estimated for such year, all by giving the Tenant written notice thereof.  In such event, the Landlord shall cause the
actual amount of such Additional Rent to be calculated, and the Tenant or the
Landlord shall within thirty (30) days pay to the other the amount of any
deficiency or overpayment, whichever the case may be.

 

(D)                               Within
one hundred eighty (180) days after receipt of any year-end statement of
Operating Expenses, Tenant shall have the right, at its own expense and after
reasonable advance notice to the Landlord, to review the Landlord’s records
relating to the calculation of Operating Expenses for such year, at the offices
of the Landlord’s property manager.  In
the event that such review determines that Operating Expenses have been
miscalculated, the Landlord shall pay the Tenant (by crediting the next payment
of Rent due under the Lease) or the Tenant shall pay the Landlord (at the time
of the next installment of Rent), as the case may be, the amount of the
overpayment or underpayment by Tenant with respect to its share of such
expenses.  In addition, if any such
review discloses that Tenant has overpaid Tenant’s total proportionate share of
Operating Expense increases by more than five percent (5%) for any given
calendar year, Landlord shall reimburse Tenant for Tenant’s actual and
reasonable costs of such audit.  Tenant
agrees that any party performing such review shall be compensated on the basis
of hourly fees and not on a contingency or percentage basis.

 

(E)                                 Landlord
shall have the right to apply any payment of Rent by Tenant to any amounts
outstanding in any order in Landlord’s sole discretion.  Acceptance by Landlord of any partial payment
of Rent shall not be deemed a waiver or satisfaction of the Tenant’s obligation
to timely pay when due all remaining amounts of Rent hereunder, which shall
remain due in their entirety according to the terms of this Lease.

 

§2.05                    Proration.  All items of Rent shall be prorated for any
month during the Term which is not a full calendar month or in which two
different rental rates are applicable. 
Appropriate prorations shall also be made in determining the Tenant’s
proportionate share of increases in Real Estate Taxes to the extent the
tax/fiscal year is not a calendar year. 
In addition,

 

6

 

at Landlord’s election, the Tenant’s proportionate share of increases
in Real Estate Taxes and in Operating Expenses may be calculated on a per
square foot basis; in this case, the Tenant’s proportionate share shall be
equal to (a) the difference between (1) the total Real Estate Taxes or
Operating Expenses (as the case may be) for the year in question divided by the
square footage of the Building, and (2) the Base Real Estate Taxes or Base
Operating Expenses (as the case may be) divided by the square footage of the
Building, (b) multiplied by the number of rentable square feet in the Premises.  Moreover, at Landlord’s election, any item
of Operating Expense which varies depending on the level of occupancy in the
Building, and that portion of the Base Operating Expenses which is represented
by the same item of expense, may be adjusted so as to reflect the amount to be
charged if the Building were one hundred percent (100%) occupied.  If only part of any calendar year falls
within the Term, the amount computed as Additional Rent for such calendar year
under the foregoing provisions of this section shall be appropriately prorated,
but the expiration of the Term before the end of a calendar year shall not
limit the Tenant’s obligation hereunder to pay the prorated portion of
Additional Rent applicable to that portion of such calendar year falling within
the Term.

 

§2.06                    Late
Payment.  Each such payment of Rent
shall be made promptly when due, without any demand, deduction or setoff
whatsoever, at the place directed by Landlord. 
Any payment of Rent not made when due shall, at Landlord’s sole option,
bear interest at the rate of ten percent (10%) per annum from the due date
until paid.  Additionally, any payment
of Rent not paid within ten (10) days
of when due shall be considered delinquent and subject to a late payment
charge, for each occurrence of delinquency, of five percent (5%) of the amount
overdue and payable.  This late payment
charge shall be in addition to the interest provided for above and shall be due
and payable with the next succeeding Rent payment.  The obligation to pay Rent shall survive termination of this Lease.

 

ARTICLE III - USE OF PREMISES

 

§3.01                    Use.  The Tenant shall use the Premises as a
business office and for no other purposes.

 

§3.02                    Laws.  Tenant shall comply with any and all
federal, state and local laws, ordinances and regulations, including but not
limited to the Americans With Disabilities Act, applicable to the Premises and
to the Tenant’s use of the Premises, and Tenant shall make any changes or
improvements to the Premises required thereby, subject to §5.03 hereof.  Notwithstanding anything herein to the
contrary, Landlord shall be solely responsible for ensuring that all common
areas comply with the Americans with Disabilities Act.

 

§3.03                    Common Areas.  The Landlord hereby grants to the Tenant a
non-exclusive license to use (a) all elevators, stairways, lobbies, hallways
and other common areas of the Building, and (b) all portions of the grounds on
which the Building is located which are manifestly designed and intended for
common use by the occupants of the Building, all for pedestrian ingress and
egress to and from the Premises.  In
addition, Tenant shall have a non-exclusive license to use parking facilities
at the Property, up to (but not exceeding) a limit of one hundred forty-eight
(148) parking spaces, except that nine (9) of such one hundred and forty-

 

7

 

eight (148) spaces shall be in the location
as shown on Exhibit B and marked for exclusive use by Tenant. 
Such license rights shall be exercised in common with the Landlord and
other tenants and their respective employees and invitees and in accordance
with the Rules and Regulations promulgated from time to time pursuant to the
provisions of Article XI.  At all
times, except for the nine (9) spaces marked for the exclusive use of Tenant,
Landlord shall have the right to rearrange, improve, reduce, replace or
otherwise alter the parking areas and any other common areas at the Property,
as well as any utility or mechanical systems and equipment at the Premises,
Building or Property, provided that (i) Landlord shall not permanently obstruct
access to the Premises (beyond reasonable obstructions arising during the
construction process) in making any such changes to the common areas, systems
or equipment and (ii) the number of aggregate parking spaces allowable to
Tenant are not reduced.

 

§3.04                    Signage.  Landlord shall allocate to Tenant its
proportionate share of space on the Building directory and, on or before the
Commencement Date, shall insert Tenant’s name and location (and the names of its
employees to the extent space is available) therein, at no cost to Tenant.  Any changes or additions subsequent to the
Commencement Date shall be at Tenant’s sole expense.  Landlord shall install Building-standard identification signage
at one entrance to the Premises, at Tenant’s sole expense, which shall be paid
from the Allowance (as defined in Article V).  Landlord acknowledges that Tenant plans to request approval for
installation of a sign on the exterior of the Building (the “Exterior Sign”),
and Landlord agrees that it does not object to an Exterior Sign, per se, but installation of any such
Exterior Sign shall be subject to Landlord’s determination and approval (which
may be withheld by Landlord in its sole and absolute discretion) with regard to
location, size, design and lettering, materials, lighting and other aesthetic
factors.  Furthermore, any such Exterior
Sign shall be subject to strict compliance with all zoning and other applicable
laws and regulations and with all restrictions set forth in title covenants
affecting the Building.  Tenant shall
provide such drawings, plans and specifications as are requested by Landlord in
reviewing the Exterior Sign.  Likewise,
Landlord shall have the right to place conditions upon the granting of its approval
of the Exterior Sign, including but not limited to requirements that the work
be performed only by licensed contractors, that the work be supported by
payment and performance bonds, that the contractors be fully insured, and that
the work be performed only pursuant to valid permits.  If the Landlord consents to any such Exterior Sign, it shall be
made at the Tenant’s sole expense and paid from the Allowance, and at such time
and in such manner as to not unreasonably interfere with the use and enjoyment
of the remainder of the Property by any other tenant or other person.  Furthermore, Tenant shall indemnify Landlord
from all costs, expenses, damages, losses or liability arising from such
Exterior Sign or the construction or installation or removal thereof.  Any Exterior Sign shall at all times remain
Tenant’s property and shall be removed at Tenant’s sole cost and expense at the
termination or earlier expiration of the Term, with Tenant being obligated to
repair any damage to the Building resulting from such removal such that the
damaged portion of the Building is in equal or better condition than existed
prior to Tenant’s installation of the Exterior Sign.

 

8

 

ARTICLE IV - INSURANCE/INDEMNIFICATION

 

§4.01                    Tenant’s Insurance.  The Tenant shall procure and maintain, at
its expense and throughout the Term, the following insurance:

 

(A)                              Commercial
general liability insurance which (1) insures against claims for bodily injury,
personal injury, advertising injury and property damage arising from the use,
occupancy or maintenance of the Premises or any other portion of the Property
by Tenant or any of its agents, employees, contractors, invitees and licensees,
(2) insures without exclusion damage or injury arising from heat, smoke or
fumes from a hostile fire, (3) has limits of not less than (i) $1,000,000 per
occurrence, (ii) $2,000,000 general aggregate per location, (iii) $2,000,000
products and completed operations aggregate, (iv) $1,000,000 for personal and advertising
injury liability, (v) $50,000 for fire damage legal liability, and (vi) $5,000
for medical payments, which minimum limits may be increased if recommended by
Landlord’s consultants or other insurance professionals, (4) includes blanket
contractual liability and broad form property damage liability coverage, and
(5) contains a standard separation of insureds provision;

 

(B)                                Business
auto liability insurance which insures against bodily injury and property
damage claims arising out of ownership, use or maintenance of any auto with a
combined single limit per accident of not less than $1,000,000;

 

(C)                                Worker’s
compensation in statutory limits and employer’s liability insurance with limits
of not less than $500,000 for each accident, $500,000 for each employee for
bodily injury by disease, and $500,000 policy limit for bodily injury by
disease;

 

(D)                               Umbrella
excess liability insurance, in addition to and in excess of the commercial
general liability, business auto liability and employer’s liability insurance
described above, which insures against claims for bodily injury, personal
injury, advertising injury and property damage and having limits of not less
than (i) $5,000,000 per occurrence, and (ii) $5,000,000 for the annual
aggregate;

 

(E)                                 All-risk
property insurance covering all of Tenant’s personal property, inventory,
equipment, fixtures, alterations and improvements at the Premises up to the
replacement value of such property; and

 

Each liability insurance policy described above (except employer’s liability
policies) shall name Landlord, Landlord’s agent and advisor, Landlord’s
property manager, and any Mortgagees (defined in §12.01 below), and expressly
including any trustees, directors, officers, employees or agents of any such
entities, all as additional insureds. 
Each property insurance policy described above shall name Landlord as
loss payee with respect to any permanently affixed improvements and betterments
to the Premises.  All such policies
shall (i) be issued by insurers licensed to do business in the state in which
the Property is located, (ii) be issued by insurers with a current rating of
“A-” “VIII” or better in Best’s Insurance Reports, (iii) be primary without
right of contribution from any of Landlord’s insurance, (iv) be written on an occurrence
(and not claims-made) basis, and (v) be uncancellable without at least thirty
(30) days’

 

9

 

prior written notice to the Landlord and any Mortgagee.  At least fifteen (15) days before the
Commencement Date (or, if earlier, the date Tenant first enters into the
Premises for any reason), Tenant shall deliver to the Landlord certificates of
insurance satisfactory to Landlord for each such policy required above.  Within ten (10) days after any such policy
expires, Tenant shall deliver to the Landlord a certificate of renewal
evidencing replacement of the policy. 
The limits of insurance required by this Lease or as otherwise carried
by Tenant shall not limit the liability of Tenant or relieve Tenant of any
obligations under this Lease, except to the extent provided in any waiver of
subrogation contained in this Lease. 
Tenant shall have sole responsibility for payment of all deductibles.

 

§4.02                    Landlord’s Insurance.  The Landlord shall maintain throughout the
Term all-risk or fire and extended coverage insurance upon the Building in an
amount equal to one hundred percent (100%) of the replacement value thereof
(or, in lieu thereof, a specified plan of self-insurance).  The premiums for such insurance and of each
endorsement thereto shall be deemed to be part of the Operating Expenses a
share of which is to be paid by Tenant as Additional Rent hereunder.  Furthermore, Tenant shall pay, as Additional
Rent and as billed by Landlord, the entire amount of any increase in premiums
for any insurance obtained by Landlord which occurs solely due to the
particular use of the Premises by Tenant.

 

§4.03                    Waiver of Subrogation.  Notwithstanding anything to the contrary in
this Lease, Landlord and Tenant each waives all rights to recovery, claims or
causes of action against the other and the other’s agents, trustees, officers,
directors and employees on account of any loss or damage which may occur to the
Premises, the Property or any improvements thereto or to any personal property
of such party to the extent such loss or damage is caused by a peril which is
required to be insured against under this Lease, regardless of the cause or
origin (including negligence of the other party).  Landlord and Tenant each covenants to the other that, to the
fullest extent permitted by law, no insurer shall hold any right of subrogation
against the other party.  Tenant
covenants to Landlord that all policies of insurance maintained by Tenant
respecting property damage shall permit such waiver of subrogation, and Tenant
agrees to advise all of its insurers in writing of the waiver.

 

§4.04                    Indemnification.  Tenant hereby agrees to indemnify and hold
Landlord and Landlord’s agents and advisors harmless from and against any cost,
damage, claim, liability or expense (including attorney’s fees) incurred by or
claimed against Landlord, directly or indirectly, as a result of or in any way
arising from Tenant’s use and occupancy of the Premises or in any other manner
which relates to the business of Tenant (except to the extent caused by
Landlord’s negligence or willful misconduct). 
Furthermore, Tenant hereby releases and absolves Landlord from any
liability for theft, damage or other loss, regardless of the cause or reason,
in connection with any furniture, fixtures, machinery, equipment, inventory or
other personal property of any kind belonging to Tenant or to any of its
employees, agents, invitees or licensees. 
Landlord agrees to indemnify and hold harmless Tenant from liability
resulting from the gross negligence or willful misconduct of Landlord.

 

10

 

ARTICLE V - IMPROVEMENTS TO PREMISES

 

§5.01                    Initial Improvements.

 

(A)                              Certain
improvements shall be constructed in the Premises according to the space plan
attached hereto as Exhibit C (the
“Space Improvements”) for the purpose of initially preparing the Premises for
occupancy by Tenant, all to be paid for as provided in subsection (B) of
this section below.  Such Space
Improvements shall be constructed by Landlord and in accordance with the
following procedures:

 

(1)                                  Landlord
shall promptly after execution of this Lease engage an architect to prepare
plans and specifications of the Space Improvements for Tenant’s review and
approval.  Such architect shall be
selected with Tenant’s prior approval, which approval shall not be unreasonably
withheld.  Such plans and specifications
shall be submitted to Tenant within twenty-one (21) days after the date hereof,
and Tenant shall review and either approve or notify Landlord of proposed
changes thereto within fourteen (14) days after receiving same.  If no response is forthcoming from Tenant
within this fourteen (14) day period, such plans shall be deemed approved.  Landlord shall make any changes to such
plans reasonably (and timely) requested by Tenant and necessary to make the
plans and specifications conform to Exhibit C.

 

(2)                                  Promptly
after the plans and specifications have been finalized, Landlord shall deliver
a copy of such plans and specifications to Tenant, and Landlord shall obtain
bids for the construction of such improvements from at least two contractors
that are not affiliated with Landlord in any way nor owned in party by any
member, employee or family member of any member or employee of Landlord.  Tenant may, at its option, also obtain bids
for such work.  After receipt of all
bids, each party shall provide copies to the other, and Landlord and Tenant
shall promptly select the lowest responsible qualified bid (in Landlord’s
reasonable discretion).  Thereafter,
Landlord shall contract for the construction of such Space Improvements.  Landlord shall, in no event, be entitled to
a management fee for the Space Improvements.

 

(3)                                  Tenant
and its agents and contractors shall have the right to enter the Premises prior
to the Commencement Date for purposes of installing fixtures, provided that in
doing so such parties shall not interfere with Landlord or its contractors
constructing the Space Improvements, and further provided that prior to any
such entry Tenant shall have obtained the insurance required under
Article IV hereof, and its contractors shall have obtained such liability,
workmen’s compensation and other insurance as is reasonably acceptable to
Landlord.  The Commencement Date shall
not be deemed to occur upon such entry unless Tenant begins commencing its
normal business operations within the Premises.

 

(B)                                All
costs and expenses of designing and constructing the Space Improvements
described in subsection (A) above shall be paid as follows:

 

(1)                                  Landlord shall provide and pay to
Tenant an amount not to exceed $25.00 per rentable square foot of the Premises
(the “Allowance”) towards (i) the costs of designing the

 

11

 

space plan in Exhibit C and all of the plans and specifications for the
Space Improvements, and (ii) the costs of constructing the Space Improvements,
including but not limited to all fees, costs and expenses paid under
construction contracts and subcontracts, construction managers’ fees, costs and
expenses, the costs of materials, supplies, permits and other items, and any
other out-of-pocket expenditures incurred in any connection with such
construction (collectively, the “Space Improvement Costs”).  The Allowance shall not be paid for any
other costs or purposes, except that, to the extent the Space Improvement Costs
are less than $25 per rentable square foot, Tenant shall be permitted to apply
the portion of the Allowance in excess of the Space Improvement Costs, up to
(but not exceeding) an amount of $7.00 per rentable square foot of the
Premises, towards the costs of acquisition and installation of Tenant’s
furniture, fixtures and equipment (including any telecommunications equipment)
for the Premises.  Tenant shall pay all
of the Space Improvement Costs which are in excess of the Allowance.

 

(2)                                  Tenant
shall pay to Landlord the amount by which the total costs to Landlord of
designing and constructing the Space Improvements exceed the Allowance within
thirty (30) days after receiving Landlord’s written statement of such
costs.  Tenant shall, prior to
Landlord’s beginning construction of the improvements, provide a letter of
credit or other security satisfactory to Landlord for Tenant’s performance of
the foregoing obligation in the event the costs of the Space Improvements
(including any modifications requested by Tenant) are significant in the
estimation of Landlord.  Tenant shall
provide this required security within seven (7) days after request by Landlord.

 

(3)                                  Landlord
agrees to pay to Tenant a moving cost reimbursement up to (but not exceeding)
an amount of $2.00 per rentable square foot of the Premises.  Landlord shall pay such amount(s) to Tenant
within thirty (30) days after receiving copies of invoices and receipts for
such costs (or, if later, within five (5) days after Tenant moves to the
Premises and begins to conduct business therein).

 

(4)                                  Notwithstanding
anything to the contrary, Landlord shall be solely responsible for the cost and
expense associated with the following, which shall not be considered part of
the Space Improvements to be included in the Allowance:

 

(i)                                     Electrical
service shall be distributed to the Premises;

 

(ii)                                  Air
conditioning’s main duct into the Premises shall be distributed;

 

(iii)                               Fire
sprinkler system shall be distributed throughout the space and ready for
expansion and adjustment to drop heads when ceiling is installed;

 

(iv)                              All
columns, exterior walls, and window walls shall be drywalled and completed,
taped, painted, and ready for wallcovering by Tenant;

 

(v)                                 Building
standard ceiling grid and tiles shall be provided and installed by Landlord;
and

 

12

 

(vi)                              Any
necessary demolition of any portion of the Premises.

 

(C)                                Landlord
shall use commercially reasonable efforts to complete such improvements on or
before September 1, 2004 (the “Target Date”), but Landlord shall have no
liability to the Tenant hereunder if prevented from doing so due to strike or
other labor troubles, governmental restrictions, failure or shortage of utility
service, national or local emergency, accident, flood, fire or other casualty,
adverse weather condition, other act of God, inability to obtain a building
permit or a certificate of occupancy, or any other cause beyond the Landlord’s
reasonable control.  However, if any
delay in completion of the Space Improvements or in delivering possession of
the Premises to Tenant beyond the Target Date are caused by Tenant, including
but not limited to failure of Tenant to timely respond to submissions by
Landlord under subsection (A) of this section above or Tenant’s
requesting changes in the Space Improvements which delay completion thereof,
then Tenant shall commence all of its obligations hereunder (including the
payments of Rent), and all terms herein shall be effective and binding, on that
date reasonably calculated by Landlord or its contractor as the date on which
Landlord would have substantially completed the Space Improvements if not for
such delay.

 

§5.02                    Acceptance.  Except for latent defects or work described
in Exhibit C but remaining
incomplete, the Tenant shall for all purposes of this Lease be deemed to have
accepted the Premises upon assuming occupancy thereof and to have acknowledged
the Premises to be in the condition required hereunder.

 

§5.03                    Tenant’s Alterations.

 

(A)                              Except
as specifically provided in Sections 5.03(B) and 5.03(C) below, Tenant shall
not make any alteration, addition or improvement to the Premises, whether
structural or nonstructural and including any signs or other items which may be
visible from the exterior of the Premises, without the Landlord’s prior written
consent.  Notwithstanding the
immediately preceding sentence, Landlord shall not unreasonably withhold or
delay its consent to alterations which are not: (i) structural; (ii) Building
system-related; (iii) visible from the exterior of the Premises; or (iv) of a
nature which, in Landlord’s sole judgment, would adversely impact the value of
the Building.  Tenant shall provide such
drawings, plans and specifications as are requested by Landlord in reviewing
any such proposed improvements. 
Likewise, Landlord shall have the right to place conditions upon the
granting of its approval of any alteration or improvement, including but not
limited to requirements that the work be performed only by bonded contractors
or that Landlord itself perform the work at the Tenant’s expense.  If the Landlord consents to any such
proposed alteration, addition or improvement, it shall be made at the Tenant’s
sole expense (and the Tenant shall hold the Landlord harmless from any cost
incurred on account thereof), and at such time and in such manner as to not
unreasonably interfere with the use and enjoyment of the remainder of the
Property by any other tenant or other person. 
All such alterations and improvements shall comply in all respects with
any and all applicable federal, state and local laws, ordinances and
regulations, including but not limited to the Americans With Disabilities Act
and regulations promulgated thereunder. 
Furthermore, Tenant shall indemnify Landlord from all damages, losses or
liability arising from such alterations or improvements or the construction
thereof by Tenant or by any other party other

 

13

 

than Landlord.  Notwithstanding
the foregoing, Tenant shall be permitted in accordance with local signage codes
and ordinances, which shall be part of the Space Improvements, have the right
to install appropriate signage, including Tenant’s corporate logo and name on
the building directory and entry into the Premises.

 

(B)                                Upon
written request received by Landlord from Tenant, Landlord shall accommodate
Tenant’s request, at no further rental charge, for Tenant to place and operate
(all at Tenant’s sole cost, liability and expense) up to five satellite dishes
(which shall remain Tenant’s property and shall be removed at Tenant’s sole
cost and expense at the termination or earlier expiration of the Term) on an
area of the roof of the Building (the size of which shall not exceed [400?]
square feet and the location of which area shall be pre-approved by Landlord
prior to the parties’ execution of this Lease) during the Term of the Lease,
subject however to (i) Landlord’s approval as to location, equipment size and
specifications, aesthetics, the identity of Tenant’s installing contractor and
other similar factors, which approval shall not be unreasonably withheld or
delayed, (ii) the terms of Landlord’s form license agreement, a copy of which
is attached hereto as Exhibit E,
which shall be executed and delivered at the time of Tenant’s electing to
install any such dish(es), (iii) the rights of others owning and/or operating
dishes, antennae and/or other communications equipment on the Building or the
Property, (iv) all zoning, building code, communications, aviation and other
laws and regulations and all covenants and restrictions of public record.  Tenant shall indemnify, defend and hold
Landlord harmless from and against liability resulting from the existence and
operation of any such satellite dish.

 

(C)                                Upon
written request received by Landlord from Tenant, Landlord shall accommodate
Tenant’s request, at no further rental charge, for Tenant to install and
procure, at Tenant’s sole cost, liability and expense, a generator (which shall
remain Tenant’s property and shall be removed at Tenant’s sole cost and expense
at the termination or earlier expiration of the Term) on Landlord’s property
outside the Building.  The location,
installation, power source, fuel type, size and specifications of the generator
shall comply with those shown on Exhibit F
and attached hereto and the identity of Tenant’s installing contractor shall in
all respects be subject to Landlord’s prior written approval, which approval
shall not be unreasonably withheld. 
Tenant shall be solely responsible for full legal compliance of the
generator with all zoning, building code, communications, aviation and other
laws and regulations and all covenants and restrictions of public record, as
well as any permitting and licensing requirements.  Tenant shall indemnify, defend and hold Landlord harmless from
and against liability resulting from the existence and operation of any such
generator.

 

§5.04                    Mechanics’ Liens.  Tenant shall (a) immediately bond or have
released any mechanics’, materialman’s or other lien filed or claimed against
any or all of the Premises, the Building, or any other property owned or leased
by the Landlord by reason of labor or materials provided for the Tenant or any
of its contractors or subcontractors, or otherwise arising out of the Tenant’s
use or occupancy of the Premises, and (b) defend, indemnify and hold harmless
the Landlord against and from any and all liability or expense (including but
not limited to attorneys’ fees) incurred by the Landlord on account of any such
lien or claim.  Notwithstanding the
foregoing to the contrary, Tenant shall not be responsible for any mechanics’,
materialman’s or

 

14

 

other lien filed or claimed against the Premises as a result of
Landlord’s construction of the Space Improvements and other improvements under
Section 5.01.

 

§5.05                    Fixtures.  Any and all improvements, repairs,
alterations or other property attached to, used in connection with or otherwise
installed within the Premises by the Landlord or the Tenant shall, immediately
on the completion of their installation, become the Landlord’s property without
payment therefor by the Landlord, except that any furniture, appliances and
office equipment installed by the Tenant and used in the conduct of the
Tenant’s trade or business (rather than to service the Premises or any of the
remainder of the Building or the Property) shall remain the Tenant’s property.

 

ARTICLE VI - MAINTENANCE AND SERVICES

 

§6.01                    Ordinary Services.  During the hours of 8:00 a.m. to 6:00 p.m.
Monday through Friday and 8:00 a.m. to 1:00 p.m. on Saturdays (except federal
holidays), Landlord shall provide heating and air-conditioning to the Premises,
in the appropriate seasons of the year, for the comfortable use and occupancy
of the Premises.  In addition, Landlord
shall provide (a) electricity and water suitable for the use of the Premises in
accordance with the provisions of §3.01, (b) automatic elevator service within
the Building, and (c) janitorial service and trash removal service.  All such services shall be an Operating
Expense of the Building for which Tenant pays a proportionate share as
described in §2.03 above. 
Notwithstanding anything to the contrary in this Lease, Landlord shall
at all times determine the actual supplier of all utilities, and the manner in
which such utilities are supplied, to the Building and Property.

 

§6.02                    Extraordinary Services.  The Landlord shall not be obligated to
provide to or for the benefit of the Premises any of the services referred to
in the provisions of §6.01 above other than during the hours referred to
therein, except as expressly specified in this §6.02 below.  If the Tenant requests such services to be
continued during extended hours, Tenant shall pay to the Landlord as Additional
Rent the amount from time to time charged by the Landlord for such extended
service, such amount to be calculated as a function of the costs to provide
such services during extended hours and the number of tenants sharing same at
the time requested.  Landlord’s current
charge for after-hours HVAC service is $55.00 per hour.

 

§6.03                    Excessive Use.  The Tenant shall not, without first
obtaining the Landlord’s written consent thereto, install within the Premises
any electrical machinery, appliances or equipment (including, by way of example
rather than of limitation, any electrical heating, cooking, water-heating or
refrigeration equipment, kitchen equipment, photocopying equipment, electronic
data processing machinery, reproduction equipment or punch-card machinery)
which uses electrical current in excess of that which is standard for the
Building, and Tenant shall pay as Additional Rent the additional expense
incurred by the Landlord as a result of any of the foregoing, including that
resulting from any installation of such equipment.  The Landlord shall have the right from time to time, using
sub-meters or other methods, to measure the consumption of electricity or other
utilities upon the Premises.  In the event
Landlord determines Tenant is consuming a disproportionate amount of
electricity or other utilities at the Premises in relation to other tenants,
and regardless of whether such determination is reached by submetering or other

 

15

 

methods, Tenant shall pay Landlord (a) within 30 days after billing,
the out-of-pocket costs of installing submeters, and (b) on a monthly basis, as
Additional Rent, the cost of all such electricity or other utilities consumed
at the Premises as indicated by the submeter(s).

 

§6.04                    Maintenance by Tenant.  The Tenant shall at all times maintain the
interior of the Premises in good, clean and safe repair and condition, ordinary
wear and tear excepted.

 

§6.05                    Maintenance by Landlord.  The Landlord shall furnish, supply and
maintain in good order and repair (a) the roof, foundation and all other
structural portions of the Building, (b) the hallways, stairways, lobbies,
elevators, restrooms, parking areas and other common areas of the Building, (c)
the base building, plumbing, utility, heating, ventilating and air-conditioning
facilities, (d) the interior and exterior structural walls, and (e) all
exterior paved surfaces.

 

§6.06                    Interruption.  The Landlord shall have no liability to the Tenant
on account of any failure, modification or interruption of electricity, water
or other utility or HVAC or other service or interruption in access to the
Premises, but in any such event Landlord shall take reasonable steps to provide
for the resumption of such service or access to the extent the same is within
Landlord’s control.  In addition,
Landlord shall not be liable to the Tenant for any disruption to Tenant’s
business which occurs as a result of any repairs, replacements, improvements or
alterations that take place within the Premises.  However, during any such repairs, replacements, improvements or
alterations, Landlord shall take reasonable steps to minimize the disruption.  In the event of a continuous utility
interruption which lasts for five (5) consecutive business days and which
renders the Premises untenantable during the entirety of such period, Tenant
shall be entitled to an abatement of Base Rent and Additional Rent for the
period of the utility interruption proportionate to that portion (if less than
all) of the Premises which is rendered untenantable by the relevant utility
interruption.

 

§6.07                    Right of Entry.  Landlord and its agents and contractors
shall be entitled to enter the Premises at any time (a) to inspect the
Premises, (b) to exhibit the Premises to any existing or prospective purchaser,
tenant or mortgagee thereof, (c) to make any alteration, improvement or repair
to the Building or the Premises, or (d) for any other purpose relating to the
operation or maintenance of the Property, all provided that the Landlord shall
(1) give the Tenant at least 24 hours’ prior notice of its intention to enter
the Premises (unless doing so is impractical or unreasonable because of
emergency), and (2) use reasonable efforts to avoid interfering with the
Tenant’s use and enjoyment thereof.

 

ARTICLE VII - FINANCIAL INFORMATION

 

§7.01                    Financial
Reports.  On or before the
expiration of one hundred twenty (120) days after the end of each calendar year
(or part year) during the Term, Tenant shall deliver to Landlord (a) an income
statement and statement of changes in financial position, both with respect to
such calendar year then ending, for the Tenant and each guarantor of this
Lease, and (b) a balance sheet as of December 31 of such calendar year for
the Tenant and each guarantor of this Lease. 
Such financial statements shall be prepared in accordance with generally
accepted accounting principles applied on a consistent basis.

 

16

 

ARTICLE VIII - CASUALTIES

 

§8.01                    General.  If the Premises are damaged by fire or other
casualty during the Term, then the following shall apply:

 

(A)                              The
Landlord shall restore the Premises with reasonable promptness, taking into
account the time required by the Landlord to effect a settlement with, and to
procure any insurance proceeds from, any insurer against such casualty, to
substantially the same condition as existed immediately before such
casualty.  Landlord may temporarily
enter and possess any or all of the Premises for such purpose.  The Landlord shall not be obligated to
repair, restore or replace any fixture, improvement, alteration, furniture or
other property owned or installed by the Tenant.

 

(B)                                The
times for commencement and completion of any such restoration shall be extended
for the period of any delay arising due to force majeure causes beyond the
Landlord’s control.  If the Landlord
undertakes to restore the Premises, but such restoration cannot be accomplished
within one hundred and eighty (180) days after the date of casualty, as
determined by estimate of Landlord upon such casualty, then Tenant may
terminate this lease by giving written notice thereof to the Landlord within
fifteen (15) days after receipt of such estimate from Landlord.

 

(C)                                From
the time of such casualty to the completion of restoration as described above,
Tenant’s rental obligations shall be abated proportionately from that portion
of the Premises which is rendered untenantable as a result of the casualty.

 

§8.02                    Substantial Destruction.  Anything contained in the foregoing
provisions of this section to the contrary notwithstanding:

 

(A)                              If
during the Term the Building is so damaged by fire or other casualty that (a)
either the Premises or the Building are rendered substantially unfit for
occupancy, as reasonably determined by the Landlord, or (b) the Building is
damaged to the extent that the Landlord elects to demolish the Building, or if
any mortgagee or lender requires that any or all of the insurance proceeds
issued on account thereof be used to retire any or all of the debt secured by
its mortgage, then in any such case the Landlord may elect to terminate this
Lease as of the date of such casualty by giving written notice thereof to the
Tenant within sixty (60) days after such date; and

 

(B)                                In
such event, (1) the Tenant shall pay to the Landlord the Base Rent and any
Additional Rent payable by the Tenant hereunder and accrued through the date of
such casualty, (2) the Landlord shall repay to the Tenant any and all prepaid
Rent for periods beyond such casualty, and (3) the Landlord may enter upon and
repossess the Premises without further notice.

 

17

 

§8.03                    Tenant’s Negligence.  Anything contained in any provision of this
Lease to the contrary notwithstanding, if any such damage to the Premises, the
Building or Property are caused by or result from the negligent or intentional
act or omission of the Tenant or any of its employees, contractors, agents,
invitees or licensees, then (a) the Rent shall not be abated or apportioned as
aforesaid, and (b) the Tenant shall pay to the Landlord upon demand, as
Additional Rent, the cost of (i) any repairs and restoration made or to be made
as a result of such damage, or (ii) (if the Landlord elects not to restore the
Building) any damage or loss which the Landlord incurs as a result of such
damage, except if and to the extent that the Tenant is released from liability
therefor pursuant to the provisions of §4.03 hereof.

 

ARTICLE IX - CONDEMNATION

 

§9.01                    Right to Award.  If any or all of the Premises are taken by
the exercise of any power of eminent domain or are conveyed to or at the
direction of any governmental entity under a threat of any such taking (each of
which a “Condemnation”), the Landlord shall be entitled to collect from the
condemning authority thereunder the entire amount of any award or consideration
for such conveyance, without deduction therefrom for any leasehold or other
estate held by the Tenant under this Lease. 
The Landlord shall be entitled to conduct any condemnation proceeding
and any settlement connected therewith free of interference from the Tenant,
and the Tenant hereby waives any right which it has to participate
therein.  However, the Tenant may seek,
in a separate proceeding, a separate award on account of any damages or costs
incurred by the Tenant as a result of any such Condemnation, so long as such
separate award in no way diminishes any award or payment which the Landlord
would otherwise receive as a result of such Condemnation.

 

§9.02                    Effect of Condemnation.  If (a) all of the Premises are covered by a
Condemnation, or (b) any part of the Premises is covered by a Condemnation and
the remainder is insufficient for the reasonable operation of the Tenant’s
business, or (c) any of the Building is covered by a Condemnation and, in the
Landlord’s reasonable opinion, it would be impractical to restore the remainder
thereof, or (d) any of the rest of the Property is covered by a Condemnation
and, in the Landlord’s reasonable opinion, it would be impractical to continue
to operate the remainder of the Property thereafter, then, in any such event,
the Term shall terminate on the date on which possession of the property
covered by such Condemnation is taken by the condemning authority thereunder,
and all Rent (including any Additional Rent and other charges payable
hereunder) shall be apportioned and paid to such date.  If there is a Condemnation and the Term does
not terminate pursuant to the foregoing provisions of this subsection, the
operation and effect of this Lease shall be unaffected by such Condemnation,
except that the Base Rent (and Tenant’s Proportionate Share for purposes of
calculation of Additional Rent) shall be reduced in proportion to the square
footage of floor area, if any, of the Premises covered by such Condemnation.

 

§9.03                    Interruption.  If there is a Condemnation, the Landlord
shall have no liability to the Tenant on account of any (a) interruption of the
Tenant’s business upon the Premises, (b) diminution in the Tenant’s ability to
use the Premises, or (c) other injury or damage sustained by the Tenant as a
result of such Condemnation.

 

18

 

ARTICLE X - ASSIGNMENT / SUBLETTING

 

§10.01              Actions
Covered.  Any assignment by Tenant
of this Lease or its rights hereunder, any subletting of the Premises and any
license, mortgage, pledge or other transfer of any part of the Premises or any
of Tenant’s interests therein or under this Lease shall all be referred to hereinafter
as a “Transfer.”  Furthermore, the sale,
assignment or other transfer of any direct or indirect controlling interest in
the Tenant (if a corporation), the sale, assignment or other transfer of any
general partnership interest in Tenant (if a partnership), the sale, assignment
or other transfer of any managing membership interest in Tenant (if a limited
liability company), the sale of substantially all of Tenant’s assets, and the
merger or consolidation of Tenant into another organization or the reorganization
or dissolution of Tenant, after which Tenant shall not be the surviving
corporation or partnership, shall each be considered a “Transfer” for the
purposes of this Lease.

 

§10.02              Restrictions.  Except as provided for otherwise herein,
Tenant shall not Transfer this Lease or the Premises without first obtaining
the Landlord’s prior written consent thereto. 
Landlord agrees to not unreasonably withhold its consent to a proposed
Transfer, but Landlord shall not be deemed acting unreasonably for withholding
its consent for reasons related to the financial status of the Transferee, the
credit history of the Transferee, the potential use or overuse of the
elevators, parking areas or other elements of the Building, the reputation or
credibility of the Transferee, or other bona-fide concerns of the
Landlord.  In the event that Tenant
proposes any Transfer, Tenant shall notify Landlord in writing, provided such
disclosure is not prohibited by applicable law, at least sixty (60) days before
the date on which the Transfer is to be effective and, as included with such
notice, furnish Landlord with (i) the name of the entity receiving such
Transfer (the “Transferee”), (ii) a detailed description of the business of the
Transferee, (iii) audited financial statements of the Transferee, (iii) any
other information reasonably requested by the Landlord with respect to the
Transfer or the Transferee, and (iv) a fee of $2,500 to compensate Landlord for
legal fees, costs of administration and other expenses to be incurred in
connection with the review and processing of such documentation.  To the extent approval is required
hereunder, Landlord shall respond to Tenant’s request for approval or
disapproval of the Transfer within twenty (20) days after Landlord receives the
request and all documents and information required above.  In no event shall Tenant be permitted to
Transfer the Lease or the Premises (or any portion thereof) to any other tenant
in the Building or, if the Building is part of a complex, any other tenant in
the complex.  Notwithstanding the
foregoing, Landlord’s consent shall not be required with respect to (1) any
Transfer to a parent, subsidiary or other affiliate of Tenant, provided that
(a) Tenant delivers to Landlord, at least 30 days prior to such Transfer, all
of the documents and information described in clauses (i) through (iii) above,
(b) the Tenant shall remain fully and primarily liable for all obligations
under the Lease, and the Transferee shall assume all such obligations, (c) the
gross assets and net worth of the Transferee immediately following the Transfer
are greater than or equal to the gross assets and net worth of the Tenant (as
determined in accordance with GAAP accounting), (d) such Transfer is not
undertaken for the purpose of avoiding liability or recourse for the
obligations of this Lease, (e) the subject Transfer will not result in a
material increase in the Operating Expenses incurred with respect to the
Building, and (f) the subject Transfer will not result in a material increase
in the burden on

 

19

 

elevators, HVAC systems or other common facilities at the Building, or
(2) any Transfer that involves the sale,
assignment or other transfer of any direct or indirect controlling interest in
the Tenant (if a corporation), the sale, assignment or other transfer of any
general partnership interest in Tenant (if a partnership), the sale, assignment
or other transfer of any managing membership interest in Tenant (if a limited
liability company), the sale of substantially all of Tenant’s assets, and the
merger or consolidation of Tenant into another organization, provided that,
(aa) Tenant delivers to Landlord, at least 30 days prior to such Transfer (if
permitted by applicable law), all of the documents and information described in
clauses (i) through (iii) above, (bb) the Tenant or the Transferee, as the case
may be, shall remain fully and primarily liable for all obligations under the
Lease, (cc) the gross assets and net worth of the Transferee immediately
following the Transfer are greater than or equal to the gross assets and net
worth of the Tenant (as determined in accordance with GAAP accounting), (dd)
such Transfer is not undertaken for the purpose of avoiding liability or
recourse for the obligations of this Lease, (ee) the subject Transfer will not
result in a material increase in the Operating Expenses incurred with respect
to the Building, and (ff) the subject Transfer will not result in a material
increase in the burden on elevators, HVAC systems or other common facilities at
the Building.

 

§10.03              Liability
to Landlord.  Tenant hereby agrees
that notwithstanding anything in this Lease to the contrary, and regardless of
whether or not Landlord’s consent is required hereunder, no Transfer shall be
valid or effective unless and until the Transferee agrees in a written
document, in form and substance satisfactory to Landlord, that the Transferee
shall (1) in the case of a subletting of any part of the Premises, observe and
perform all duties, obligations and liabilities of the Tenant under the terms
of this Lease as such terms relate to the space subleased, or (2) in the case
of all other Transfers, observe and perform all duties, obligations and
liabilities of the Tenant under the terms of this Lease.  In addition, no Transfer of any kind,
regardless of whether or not Landlord’s consent thereto is required hereunder,
shall serve to relieve or release the Tenant in any way from full and direct
liability for the timely performance of all of the Tenant’s duties and
obligations under this Lease.

 

§10.04              Excess Rents.  In the event that Tenant effects any
Transfer and at any time receives rent and/or other consideration on a periodic
basis which exceeds that which Tenant is obligated to pay to Landlord
hereunder, Tenant shall pay to Landlord all of such excess rent or other
consideration when and as received by Tenant.

 

§10.05              Recapture.  In the event that Tenant requests approval
of any Transfer of the Lease or Premises, Landlord shall have, in addition to
the other rights set forth in this section, the right to (a) terminate this
Lease, if the Transfer is in the nature of an assignment of the Lease, which
termination shall be effective at the time indicated by Landlord to Tenant in a
written notice of election to terminate, (b) terminate this Lease with respect
to the portion of the Premises proposed to be subleased, if the Transfer is in
the nature of a subletting, which termination shall be effective on the date
the proposed subletting is to become effective, and with the Rent provided
herein to be adjusted proportionately with respect to any portion of the
Premises not subject to such proposed subletting, or (c) sublet the Premises as
subtenant, if the Transfer is in the nature of a subletting, in accordance with
the terms of the proposed sublease.  If

 

20

 

requested by Tenant, Landlord shall either make its election or decline
to make any such election in writing to Tenant given within thirty (30) days
after the Tenant’s request.

 

§10.06              Landlord’s Transfers.  Landlord shall have the unrestricted right
to assign or transfer its interest in this Lease to purchasers of the Building,
to holders of mortgages or deeds of trust on the Building, or to any other
party, in which event Landlord shall be released from all duties, obligations
and liabilities arising hereunder after the assignment or transfer becomes
effective (provided that the transferee assumes the Landlord’s prospective
obligations under the Lease arising after the assignment or transfer becomes
effective).  Landlord shall not,
however, be released from any duties, obligations and liabilities properly
attributable to the period of the Term before the assignment or transfer
becomes effective.

 

ARTICLE XI - RULES & REGULATIONS

 

§11.01              Landlord’s Rules.  The Landlord shall have the right to impose
and subsequently modify, from time to time and at its sole discretion,
reasonable rules and regulations (hereinafter referred to as the “Rules and
Regulations”) having uniform applicability to all tenants of the Building
(subject to the provisions of their respective leases) and governing their use
and enjoyment of the Building and the remainder of the Property.  The Tenant and its agents, employees, invitees
and licensees shall comply with such Rules and Regulations.  A copy of the Rules and Regulations in
effect on the date hereof is attached hereto as Exhibit D.

 

ARTICLE XII - MORTGAGE LENDERS

 

§12.01              Subordination.  This Lease shall be subject and subordinate
to the lien, operation and effect of each mortgage, deed of trust, ground lease
and/or other similar instrument covering any or all of the Premises or the
Property, and each renewal, modification or extension thereof (each of which
referred to as a “Mortgage”), all automatically and without the necessity of
any further action by either party hereto, provided, however, that in the event
the beneficiary under any such Mortgage (referred to as a “Mortgagee”) succeeds
to the interest of Landlord hereunder through foreclosure or otherwise, such
Mortgagee shall honor this Lease and not disturb Tenant in its possession of
the Premises except upon an Event of Default (defined in §14.01 below).  In addition, Tenant shall attorn to any such
Mortgagee and agrees that such Mortgagee shall not be liable to Tenant for any
defaults by Landlord under this Lease or for any other event occurring prior to
such Mortgagee’s succeeding to the interest of Landlord hereunder.  Landlord represents and warrants that, as of
the date hereinabove first written, there is no Mortgage encumbering the
Property.  Landlord shall use reasonable
good faith efforts to obtain from any future Mortgagee of the Property, for the
benefit of Tenant, a subordination, non-disturbance and attornment agreement
(an “SNDA”) consistent with the foregoing provisions of this
Section 12.01; provided that, Landlord’s inability to obtain an SNDA from
any such future Mortgagee of the Property shall not impair the effectiveness or
enforceability of this Lease and shall not result in any liability to Landlord.

 

§12.02              Written Agreement.  The Tenant shall, within ten (10) days after
request by the Landlord or any Mortgagee, execute, acknowledge and deliver such
further instrument as is

 

21

 

requested by Landlord or any Mortgagee to acknowledge the rights of the
parties described in §12.01 above and providing such other information and
certifications as is reasonably requested. 
Any Mortgagee may at any time subordinate the lien of its Mortgage to
the operation and effect of this Lease without obtaining the Tenant’s consent
thereto, in which event this Lease shall be deemed to be senior to such
Mortgage without regard to their respective dates of execution, delivery and/or
recordation among the land records of the jurisdiction in which the Property is
located.

 

§12.03              Estoppel Certificate.  The Tenant shall, if the following is true
and accurate, from time to time, within ten (10) days after request by the
Landlord or any Mortgagee, execute, acknowledge and deliver to the Landlord
(or, at the Landlord’s request, to any existing or prospective purchaser,
assignee or Mortgagee) a written certification (a) that this Lease is
unmodified and in full force and effect (or, if there has been any
modification, stating the nature of such modification), (b) as to the dates to
which the Base Rent and any Additional Rent and other charges arising hereunder
have been paid, (c) as to the amount of any prepaid Rent or any credit due to the
Tenant hereunder, (d) that the Tenant has accepted possession of the Premises
and all improvements thereto are as required hereunder, and the date on which
the Term commenced, (e) as to whether, to the best knowledge, information and
belief of the Tenant, the Landlord or the Tenant is then in default in
performing any of its obligations hereunder (and, if so, specifying the nature
of each such default), and (f) as to any other fact or condition reasonably
requested by the Landlord or such other party. 
Any such certificate may be relied upon by the Landlord and any such
other party to whom the certificate is directed.

 

ARTICLE XIII - ENVIRONMENTAL COVENANTS

 

§13.01              Prohibitions.  Tenant agrees that Tenant, its employees,
licensees, invitees, agents and contractors shall not use, manufacture,
release, store or dispose of on, under or about the Premises any explosives,
flammable substances, radioactive materials, asbestos in any form, paint
containing lead, materials containing urea formaldehyde, polychlorinated
biphenyls, or any other hazardous, toxic or dangerous substances, wastes or
materials, whether having such characteristics in fact or defined as such under
federal, state or local laws or regulations and any amendments thereto (all
such materials and substances being hereinafter referred to as “Hazardous
Materials”) provided that Tenant may store products which are of a type
customarily found in offices (such as toner for copiers and the like) in a safe
and lawful manner and without contaminating the Premises or the environment.

 

§13.02              Inspection.  Landlord, in addition to its other rights
under this Lease, may enter upon the Premises at any time for the purposes of
inspecting to determine whether the Premises or the environment have become
contaminated with Hazardous Materials. 
In the event Landlord discovers the existence of any such Hazardous
Materials due to fault or other act of Tenant or its agents, employees,
invitees or licensees, Tenant shall reimburse Landlord upon demand for the
costs of such inspection, sampling and analysis.

 

§13.03              Indemnification.  Without limiting the above, Tenant shall
indemnify and hold harmless Landlord from and against any and all claims,
losses, liabilities, damages, costs and

 

22

 

expenses, including without limitation attorneys’ fees and the costs of
any required or necessary repair, cleanup or detoxification, arising out of or
in any way connected with the existence, use, manufacture, storage or disposal
of Hazardous Materials by Tenant or its employees, agents, invitees, licensees
or contractors on, under or about the Premises, the Building or the
Property.  The indemnity obligations of
Tenant under this clause shall survive any termination of this Lease.

 

ARTICLE XIV - DEFAULT AND REMEDIES

 

§14.01              Defaults.  As used in the provisions of this Lease,
each of the following events shall constitute, and is hereinafter referred to
as, an “Event of Default”:

 

(A)                              If
the Tenant fails to (1) pay any Rent or any other sum which it is obligated to
pay by any provision of this Lease, when and as due and payable hereunder, or
(2) perform any of its other obligations under the provisions of this Lease; or

 

(B)                                If
the Tenant or any guarantor of this Lease (1) applies for or consents to the
appointment of a receiver, trustee or liquidator of the Tenant or of all or a
substantial part of its assets, (2) is subject to a petition in bankruptcy or
admits in writing its inability to pay its debts as they come due, (3) makes an
assignment for the benefit of its creditors, (4) files a petition or an answer
seeking a reorganization or an arrangement with creditors, or seeks to take
advantage of any insolvency law, (5) performs any other act of bankruptcy, or
(6) files an answer admitting the material allegations of a petition filed
against the Tenant in any bankruptcy, reorganization or insolvency proceeding;
or

 

(C)                                If
the Tenant fails to assume possession of and occupy the Premises within
twenty-five (25) days after the Commencement Date.

 

§14.02              Grace Period.  Anything contained in the provisions of this
article to the contrary notwithstanding, on the occurrence of an Event of
Default, the Landlord shall not exercise any right or remedy which it holds
under any provision of this Lease or applicable law unless and until:

 

(A)                              The
Landlord has given written notice thereof to the Tenant, and

 

(B)                                The
Tenant has failed, (1) if such Event of Default consists of a failure to pay
money, to pay all of such money within seven (7) days after such notice, or (2)
if such Event of Default consists of something other than a failure to pay
money, to fully cure such Event of Default within fifteen (15) days after such
notice or, if such Event of Default cannot be cured within fifteen (15) days
and Tenant commences to cure same within fifteen (15) days, to proceed
diligently with efforts to cure such Event of Default and to fully cure same
within forty (40) days; all provided, that

 

(C)                                No
such notice shall be required, and the Tenant shall be entitled to no such
grace period, (1) in any emergency situation in which the Landlord acts to cure
such Event of

 

23

 

Default pursuant to the provisions of subsection (B) in §14.03
below, or (2) if an Event of Default occurs more than twice during any twelve
(12) month period, or (3) if the Tenant has substantially terminated or is in
the process of substantially terminating its continuous occupancy and use of
the Premises, or (4) in the case of any Event of Default enumerated in the
provisions of subsection (B) in §14.01 above.

 

§14.03              Remedies.  Upon the occurrence of any Event of Default,
the Landlord may (subject to §14.02 above) take any or all of the following
actions:

 

(A)                              Perform
on behalf of and at the expense of Tenant any obligation of Tenant under this
Lease which Tenant has failed to perform, without prior notice to Tenant, the
total cost of which by Landlord, together with interest thereon at the rate of
ten percent (10%) per annum from the date of such expenditure, shall be deemed
Additional Rent and shall be payable by Tenant to Landlord upon demand;

 

(B)                                With
or without terminating this Lease and the tenancy created hereby, re-enter the
Premises with or without court action or summary proceedings, remove Tenant,
secure the Premises against unauthorized entry, and allow Tenant supervised
access to the Premises to remove those items belonging to Tenant which are not
the subject of a security interest by Landlord, all without resort to legal
process and without Landlord being deemed guilty of trespass or becoming liable
for any loss or damage occasioned thereby;

 

(C)                                With
or without terminating this Lease, and from time to time, make such
improvements, alterations and repairs as may be necessary in order to relet the
Premises, and relet the Premises or any part thereof upon such term or terms
(which may be for a term extending beyond the term of this Lease) at such
rental or rentals and upon such other terms and conditions (which may include
concessions, free rent and/or improvements) as Landlord in its sole discretion
may deem advisable; and, upon each such reletting, all rentals received by
Landlord shall be applied, first, to the payment of any indebtedness other than
Rent due hereunder from Tenant to Landlord, second, to the payment of all costs
and expenses of such reletting (including but not limited to brokerage fees,
attorneys’ fees and costs of improvements, alterations and repairs), third, to
the payment of all Rent due and unpaid hereunder, and the balance, if any,
shall be held by Landlord and applied in payment of future rent as the same may
become due and payable hereunder;

 

(D)                               Sell
at public or private sale all or any part of the fixtures, equipment, inventory
and other property belonging to Tenant and in which the Landlord has a lien by
grant from Tenant, statute or otherwise, at which sale Landlord shall have the
right to become the purchaser upon being the highest bidder, and apply the
proceeds of such sale, first, to the payment of all costs and expenses of
seizing and storing such property and conducting the sale (including all
attorneys’ fees), second, toward the payment of any indebtedness, including
(without limitation) that for Rent, which may be or may become due from Tenant
to Landlord, and, third, to pay Tenant any surplus remaining after all
indebtedness of Tenant to Landlord including expenses has been fully paid;

 

24

 

(E)                                 Enforce
any provision of the Lease or any other agreement between the parties by
injunction, temporary restraining order or other similar equitable remedy, to
which the Tenant hereby expressly consents and agrees; and/or

 

(F)                                 Exercise
any other legal or equitable right or remedy which it may have by law or
otherwise.

 

No reentry or taking possession of the Premises by Landlord shall be
construed as an election on its part to terminate this Lease unless a written
notice of such intention be given to Tenant or unless the termination thereof
be decreed by a court of competent jurisdiction.  Notwithstanding that Landlord may have re-leased the Premises
without termination, Landlord may at anytime thereafter elect to terminate this
Lease for any previous default.  If the
Premises or any part thereof is re-leased, Landlord shall not be liable for,
nor shall Tenant’s obligations hereunder be diminished by reason of, any
failure by Landlord to relet the Premises or any failure by Landlord to collect
any rent due upon such reletting.  No
action taken by the Landlord under the provisions of this section shall
operate as a waiver of any right which the Landlord would otherwise have
against the Tenant for the Rent hereby reserved or otherwise, and the Tenant
shall at all times remain responsible to the Landlord for any loss and/or damage
suffered by the Landlord by reason of any Event of Default.

 

§14.04              Damages.  Upon any Event of Default, Tenant shall
remain liable to the Landlord for the following amounts: (a) any Rent of any
kind whatsoever which may have become due with respect to the period in the
Term which has already expired, (b) any rental abatements or other free-rent
concessions extended to Tenant under the Lease, (c) all Rent which becomes due
during the remainder of the Term, (d) all costs, fees and expenses incurred by
Landlord in leasing the Premises to others from time to time, including but not
limited to leasing commissions, construction and other build-out costs, design
and permitting costs and the like, and (e) all costs, fees and expenses
incurred by Landlord in pursuit of its remedies hereunder, including but not
limited to attorneys’ fees and court costs. 
All such amounts shall be due and payable immediately upon demand by
Landlord and shall bear interest at fifteen percent (15%) per annum until
paid.  Furthermore, at Landlord’s
option, Tenant shall be obligated to pay, in lieu of item (c) above in this
§14.04, an amount (the “Substitute Amount”) which is equal to the present value
of all Rent which would become due during the remainder of the Term, including
all Additional Rent which shall be deemed to continue and increase over such
remainder of the Term at the average rate of increase occurring over the
then-expired portion of the Term, with such present value to be determined by
discounting at an annual rate of interest which is equal to the bond-equivalent
yield for the most recent auction of U.S. Treasury Bills with a one (1)-year
maturity.  Provided that the Substitute
Amount is actually paid in full to Landlord and the Premises are surrendered by
Tenant, Landlord shall affirmatively list the Premises with its broker as
available for lease (to the extent Landlord’s contract with such broker does
not already apply to all vacant space at the Building), and Tenant shall
receive a reduction and reimbursement of all such amounts which is equal to the
amount of any rent actually received from others to whom the Premises may be
rented during the remainder of the original Term.  Tenant and Landlord acknowledge and agree that payment to Landlord
of the foregoing Substitute Amount, together with the corresponding reduction
by reimbursement to Tenant of any rent paid by substitute 

 

25

 

tenants, are a reasonable forecast of the actual damages which will be
suffered by Landlord in case of an Event of Default by Tenant, which actual
damages are otherwise difficult or impossible to ascertain, and therefore such
payment and reimbursement together constitute liquidated damages and not a
penalty.  Any suit or action brought by
Landlord to collect any such liquidated damages shall not in any manner
prejudice any other rights or remedies of Landlord hereunder.

 

§14.05              Waiver of Jury Trial.  All parties hereto, both the Landlord and
Tenant as principals and any guarantors, hereby release and waive any and all
rights provided by law to a trial by jury in any court or other legal
proceeding initiated to enforce the terms of this Lease, involving any such
parties, or connected in any other manner with this Lease.

 

ARTICLE XV - QUIET ENJOYMENT

 

§15.01              Covenant.  Landlord hereby covenants that the Tenant,
on paying the Rent and performing the covenants set forth herein, shall
peaceably and quietly hold and enjoy throughout the Term the Premises and such
rights as the Tenant may hold hereunder with respect to the remainder of the
Property.

 

ARTICLE XVI - NOTICES

 

§16.01              Notices.  Any notice, demand or other communication to
be provided hereunder to a party hereto shall be (a) in writing, (b) deemed to
have been given (i) three (3) days after being sent in the United States mails,
postage prepaid, (ii) one (1) day after being sent by overnight
courier, or (iii) immediately upon its actual delivery, and (c) addressed to
the Premises if directed to the Tenant, or addressed to c/o LaSalle Investment
Management, Inc., 100 E. Pratt Street, Suite 2030, Baltimore, Maryland 21202,
Attn: Asset Manager - College Park Plaza, if directed to the Landlord.

 

ARTICLE XVII - GENERAL

 

§17.01              Entire Agreement.  This Lease represents the entire agreement
between the parties hereto as to the subject matter hereof and supersedes all
prior written or oral negotiations, representations, warranties, statements or
agreements between the parties hereto as to the same.

 

§17.02              Amendment.  This Lease may be amended by and only by a
written instrument executed and delivered by each party hereto.

 

§17.03              Applicable Law;
Attorney Fees.  This Lease shall be
given effect and construed by application of the law of the state in which the
Property is located.  The prevailing
party in any lawsuit brought with respect to this Lease shall be entitled to
its reasonable attorney fees

 

§17.04              Waiver.  The Landlord shall not be deemed to have
waived the exercise of any right which it holds hereunder unless such waiver is
made expressly and in writing, and no delay

 

26

 

or omission by the Landlord in exercising any such right shall be
deemed to be a waiver of its future exercise. 
No such waiver as to any instance involving the exercise of any such
right shall be deemed a waiver as to any other such instance or any other such
right.

 

§17.05              Time of Essence.  Time shall be of the essence of this Lease.

 

§17.06              Headings.  The headings of the articles, subsections,
paragraphs and subparagraphs hereof are provided herein only for convenience of
reference and shall not be considered in construing their contents.

 

§17.07              Severability.  No determination by any court, governmental
body or otherwise that any provision of this lease or any amendment hereof is
invalid or unenforceable in any instance shall affect the validity or
enforceability of any other such provision or such provision in any
circumstance not controlled by such determination.  Each such provision shall be valid and enforceable to the fullest
extent allowed by, and shall be construed wherever possible as being consistent
with, applicable law.

 

§17.08              Successors and Assigns.  This Lease shall be fully binding upon the
parties hereto and each of their respective successors and assigns.  Whenever two or more parties constitute the
Tenant, all such parties shall be jointly and severally liable for performing
the Tenant’s obligations hereunder.

 

§17.09              Commissions.  Each party hereto hereby represents and
warrants to the other that in connection with the leasing of the Premises
hereunder, the party so representing and warranting has not dealt with any real
estate broker, agent or finder, except for Colliers Turley Martin Tucker (the
“Broker”).  Each party hereto shall indemnify
the other against any inaccuracy in such party’s representation.  Landlord hereby agrees that it shall pay a
commission to the Broker according to a separate agreement.

 

§17.10              Recordation.  This Lease may not be recorded among the
land records or among any other public records, without the Landlord’s prior
written consent.

 

§17.11              Perpetuities.  If the rule against perpetuities would
invalidate this Lease or any portion hereof, or would limit the time during
which this Lease shall be effective, due to the potential failure of an
interest in property created herein to vest within a particular time, then
notwithstanding anything to the contrary herein, each such interest in property
must vest, if at all, before the passing of twenty-one (21) years from the date
of this Lease, or this Lease shall become null and void upon the expiration of
such twenty-one (21) year period and the parties shall have no further
liability hereunder.

 

§17.12              Liability Limitation.  Neither Landlord nor any trustee, director,
officer, employee, representative, asset manager, investment advisor or agent
of Landlord, nor any of their respective successors and assigns, shall be
personally liable in any connection with this Lease, and Tenant shall resort
solely to the Building for the payment to Tenant of any claim or for any
performance by Landlord hereunder.

 

27

 

§17.13              Authority.  Tenant, as well as any entities and/or
individuals executing this Lease on behalf of Tenant, represent and warrant to
Landlord that the execution, delivery and performance of this Lease have been
duly authorized by all required corporate, partnership or other action on the
part of Tenant, and this Lease constitutes the valid and binding obligation of
Tenant enforceable against Tenant in accordance with its terms.

 

§17.14              Exhibits.  Each exhibit, addendum or other attachment
hereto is hereby made a part of this Lease having the full force of all other
provisions herein.

 

[SIGNATURES BEGIN ON FOLLOWING
PAGE]

 

IN WITNESS WHEREOF, each party hereto has executed this Lease under
seal as of the day and year written first above.

 

	
  LANDLORD:

  	
  COLLEGE PARK PLAZA, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  LaSalle Investment Management, Inc.

  
	
   

  	
   

  	
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ [Illegible]

  	
   

  	
  By:

  	
  /s/ Rinse A. Brink

  	
   

  
	
  Witness

  	
   

  	
  Name: Rinse A. Brink

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
  TENANT:

  	
  REPUBLIC AIRWAYS HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Jean Gibbons

  	
   

  	
  By:

  	
  /s/ Robert H. Cooper

  	
   

  
	
  Witness

  	
   

  	
  Name: Robert H. Cooper

  
	
   

  	
   

  	
  Title: EVP & CFO

  

 

28

 

EXHIBIT A

 

FLOOR PLAN OF
PREMISES

 

 

29

 

EXHIBIT B

 

LOCATION OF DESIGNATED PARKING SPACES

 

 

1

 

EXHIBIT C

 

SPACE PLAN OF THE PREMISES

 

 

1

 

EXHIBIT D

 

RULES AND
REGULATIONS

 

1.                                       Neither
the whole nor any part of the sidewalks, plaza areas, entrances, passages,
courts, elevators, vestibules, stairways, corridors or halls of the Building
shall be obstructed or encumbered by any tenant or used for any purpose other
than ingress and egress to and from the premises of such tenant.

 

2.                                       No
awning, canopy, sign or other projection shall be attached to the outside walls
or windows of the Building without Landlord’s prior written consent.  No curtain, blind, shade, or screen (other
than those furnished by Landlord as building standard) shall be attached to,
hung in or used in connection with any window or door of the premises of any
tenant.

 

3.                                       No
tenant shall mark, paint, drill into, or in any way deface any part of the
Building or its premises.  No boring,
cutting, or stringing of wires shall be permitted.

 

4.                                       No
tenant shall make, or permit to be made, any unseemly or disturbing noises
(whether by the use of any musical instrument, radio, television or other audio
device) or allow any unsavory odors to emanate from its space, nor shall any
tenant annoy, disturb or interfere with other tenants or occupants of the
Building or neighboring buildings.

 

5.                                       No
change shall be made in door locks without Landlord’s prior written
consent.  Each tenant must upon the
termination of its tenancy restore to Landlord all keys to offices and toilet
rooms either furnished to, or otherwise procured by, such tenant.  In the event of the loss of any keys during
the Term, Tenant shall pay Landlord the reasonable cost of replacement keys.

 

6.                                       Landlord
reserves the right to control and operate the public portions of the Building
and the public facilities, as well as facilities furnished for the common use
of the tenants, in such manner as it deems best for the benefit of the tenants
generally, including, without limitation, the right to exclude from the
Building, except during the hours the Building is open to the public, all
persons who do not present suitable identification satisfactory to Landlord.

 

7.                                       Each
tenant, before closing and leaving its premises at any time, shall see that all
entrance doors are locked and that all electrical appliances are turned
off.  Suite and entrance doors shall
remain closed at all times.

 

8.                                       No
premises shall be used, or permitted to be used, for lodging or sleeping or for
any immoral or illegal purpose.

 

9.                                       Canvassing,
soliciting and peddling in the Building are prohibited.

 

10.                                 There
shall not be used in the Building by any tenant or their agents or contractors,
in the delivery or receipt of merchandise, freight or other matter, any hand
trucks or other means

 

1

 

of conveyance, except those equipped with rubber tires, rubber side
guards, and such other safeguards as Landlord may require.

 

11.                                 No
animals of any kind shall be brought into or kept about the Building by any
tenant.

 

12.                                 No
tenant shall place, or permit to be placed, on any part of the floor or floors
of its premises a load exceeding the floor load per square foot which such
floor was designed to carry and which is allowed by law.

 

13.                                 No
plumbing or electrical fixtures shall be installed by any tenant without the
prior written consent of Landlord.

 

14.                                 Bicycles, motorcycles
or any other type of vehicle shall not be brought into the lobby or elevators
of the Building or into the premises of any tenant.

 

15.                                 Tenant will refer all
contractors, contractor’s representatives and installation technicians,
rendering any services on or to the premises for tenant, to Landlord for
Landlord’s approval and supervision before performance of any service.  This provision shall apply to all work
performed in the Building, including installation of telephones, telegraph
equipment, electrical devices and attachments and any installation of any
nature affecting floors, walls, woodwork, trim, windows, ceilings, equipment or
any other physical portion of the Building. 
Such approval, if given, shall in no way make Landlord a party to any
contract between tenant and any such contractor, and Landlord shall have no
liability therefor.

 

16.                                 No trash or other
objects shall be placed in the public corridors or sidewalks of the Building.

 

17.                                 Landlord does not
clean or maintain suite finishes which are non-standard, such as kitchens,
bathrooms, wallpaper, special lights, etc.

 

18.                                 Landlord reserves the
right, at any time and from time to time, to rescind, alter, or waive, in whole
or in part, or to add to any of these Rules and Regulations when it is deemed
necessary, desirable or proper, in Landlord’s judgment, for its best interest
or for the best interests of all tenants.

 

19.                                 Violations of these
Rules and Regulations, or any amendments thereof or additions thereto,
constitute a default of this Lease.

 

2

 

EXHIBIT E

 

FORM OF
SATELLITE DISH LICENSE

 

THIS LICENSE AGREEMENT (“License”) is made as of the
        day of
            ,
200  by and between COLLEGE PARK PLAZA,
LLC (“Owner”) and REPUBLIC AIRWAYS
HOLDINGS, INC. (“Licensee”).

 

WHEREAS, Licensee currently leases from the Owner 36,797 rentable
square feet of space (the “Premises”) at the building known as 8909 Purdue Road
in Indianapolis, Indiana (the “Building”), pursuant to that certain Office
Lease Agreement dated as of April     , 2004 (the
“Lease”).

 

AND WHEREAS, Licensee has requested permission to install on the
rooftop of the Building an approximately [describe approved antenna] (the
“Approved Antenna”), and to connect by coaxial cable such Approved Antenna to
the Premises.

 

NOW, THEREFORE, for good and valuable consideration, the Owner hereby
grants to the Licensee a license subject to, and Licensee accepts and agrees to
perform, the terms and conditions set forth below:

 

1.                                       Licensee
shall have a non-exclusive license to install, maintain and operate the
Approved Antenna on the roof of the Building with related conduit and cables to
the Premises, all at Licensee’s sole cost and expense.  The exact size, height and location of the
antenna shall be subject to the Owner’s prior approval (which shall not be
unreasonably withheld or delayed) and, in addition, the Owner may require
screening or other improvements for aesthetic purposes.  In addition, Licensee shall notify Owner
reasonably in advance of the installation of the Approved Antenna and permit
Owner or its agent or representative to supervise such installation.

 

2.                                       This
License shall extend for the duration of the term of the Lease (as the same may
be extended from time to time). In all events, this License shall automatically
terminate upon expiration or earlier termination of the Lease.  Upon expiration or termination of the Lease,
the Licensee shall remove the Approved Antenna, cables and any other facilities
installed pursuant to this License and repair any damage to the Building caused
by such removal, all in accordance with the provisions of the Lease regarding
surrender of the Premises and removal of fixtures and equipment from the
Building.

 

3.                                       Licensee
shall comply with all federal, state and local zoning, building code and other
laws and regulations, as well as all requirements of any declarations,
covenants and restrictions affecting title to the Building and surrounding real
property, in installation of and in operation of the Approved Antenna
facilities.  In addition, prior to such
installation, Licensee shall obtain any permits, licenses and approvals which
may be required by any such laws and/or covenants for such installation of the
Approved Antenna, and upon request Licensee shall deliver to Owner certificates
of insurance or other evidence of Licensee’s endorsement of all liability
insurance obtained pursuant to the Lease to cover the activities contemplated
by this License.

 

1

 

4.                                       Licensee shall
be fully responsible for providing all structural and/or other supports which
are necessary to prevent roof collapse or other mishap due to the installation,
maintenance and operation of the Approved Antenna.  All roof penetrations shall be performed in such a manner as to
not void any warranty benefiting Owner. 
The installation of the Approved Antenna shall be performed by
contractors approved in advance by Owner and pursuant to written contracts
which shall include insurance requirements of the Owner.

 

5.                                       At
all times, Licensee shall maintain the Approved Antenna in good, sound and safe
condition and repair.  Such obligation
shall include periodic inspections of the Approved Antenna and all connected
cables and equipment.  In addition,
Licensee shall immediately remedy any unreasonable radio interference with
other communication systems of the Owner or other tenants of the Building (or
of the office park within which the Building is located) which are caused by
the operation of the Approved Antenna.

 

6.                                       Licensee
shall arrange for electrical service and any other utilities which are required
for operation of the Approved Antenna to be supplied directly from the utility
provider to the Approved Antenna. 
Licensee shall pay, when and as due, any and all charges for initial
installation and ongoing service in connection with such utilities.

 

7.                                       Licensee
shall indemnify, defend and hold harmless the Owner and its agents, employees,
advisors and representatives from and against any and all claims, suits and/or
other proceedings, all damages, losses and/or liability, and all costs and
expenses (including but not limited to attorneys’ fees and court costs) arising
in any connection with the installation, use, operation, maintenance, repair
and/or removal of the Approved Antenna, cables, conduit and any other equipment
and facilities erected pursuant to this License.

 

8.                                       Any
material breach or default by Licensee hereunder shall constitute a breach and
default under the Lease entitling the Owner to all remedies on account of
breach or default thereunder, subject to the notice and grace periods set forth
therein.

 

IN WITNESS WHEREOF, each of Owner and Licensee has executed this
License under seal, with the intention that it be a sealed instrument, as of
the date first set forth above.

 

	
   

  	
  OWNER:

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Witness

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LICENSEE:

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Witness

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

EXHIBIT F

 

GENERATOR
SPECIFICATIONSUse these links to rapidly review the document

  TABLE OF CONTENTS

 
 

EXHIBIT 4.7    
    

FORM OF SENIOR INDENTURE  

 EDGE PETROLEUM CORPORATION  

as Issuer  

and 

as Trustee  

Indenture

Dated as of                 ,          

Debt
Securities 

 
 

EDGE PETROLEUM CORPORATION    
    

Reconciliation and tie between Trust Indenture Act of 1939 and Indenture, dated as of                 ,
          

	Section of

Trust Indenture

Act of 1939
	 	 
	 	Section(s) of

Indenture

	§ 310	 	(a)(1)	 	7.10
	 	 	(a)(2)	 	7.10
	 	 	(a)(3)	 	Not Applicable
	 	 	(a)(4)	 	Not Applicable
	 	 	(a)(5)	 	7.10
	 	 	(b)	 	7.08, 7.10
	§ 311	 	(a)	 	7.11
	 	 	(b)	 	7.11
	 	 	(c)	 	Not Applicable
	§ 312	 	(a)	 	2.07
	 	 	(b)	 	10.03
	 	 	(c)	 	10.03
	§ 313	 	(a)	 	7.06
	 	 	(b)	 	7.06
	 	 	(c)	 	7.06
	 	 	(d)	 	7.06
	§ 314	 	(a)	 	4.03, 4.04
	 	 	(b)	 	Not Applicable
	 	 	(c)(1)	 	10.04
	 	 	(c)(2)	 	10.04
	 	 	(c)(3)	 	Not Applicable
	 	 	(d)	 	Not Applicable
	 	 	(e)	 	10.05
	§ 315	 	(a)	 	7.01(b)
	 	 	(b)	 	7.05
	 	 	(c)	 	7.01(a)
	 	 	(d)	 	7.01(c)
	 	 	(d)(1)	 	7.01(c)(1)
	 	 	(d)(2)	 	7.01(c)(2)
	 	 	(d)(3)	 	7.01(c)(3)
	 	 	(e)	 	6.11
	§ 316	 	(a)(1)(A)	 	6.05
	 	 	(a)(1)(B)	 	6.04
	 	 	(a)(2)	 	Not Applicable
	 	 	(a)(last sentence)	 	2.11
	 	 	(b)	 	6.07
	§ 317	 	(a)(1)	 	6.08
	 	 	(a)(2)	 	6.09
	 	 	(b)	 	2.06
	§ 318	 	(a)	 	10.01

Note: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture. 

  

 

TABLE OF CONTENTS    
    

 

	 
	 	 

	ARTICLE I	 	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	
 SECTION 1.01	
 	

Definitions.
	 	SECTION 1.02	 	Other Definitions.
	 	SECTION 1.03	 	Incorporation by Reference of Trust Indenture Act.
	 	SECTION 1.04	 	Rules of Construction.
	

ARTICLE II	
 	

THE SECURITIES
	 	
 SECTION 2.01	
 	

Amount Unlimited; Issuable in Series.
	 	SECTION 2.02	 	Denominations.
	 	SECTION 2.03	 	Forms Generally.
	 	SECTION 2.04	 	Execution, Authentication, Delivery and Dating.
	 	SECTION 2.05	 	Registrar and Paying Agent.
	 	SECTION 2.06	 	Paying Agent to Hold Money in Trust.
	 	SECTION 2.07	 	Holder Lists.
	 	SECTION 2.08	 	Transfer and Exchange.
	 	SECTION 2.09	 	Replacement Securities.
	 	SECTION 2.10	 	Outstanding Securities.
	 	SECTION 2.11	 	Original Issue Discount, Foreign-Currency Denominated and Treasury Securities.
	 	SECTION 2.12	 	Temporary Securities.
	 	SECTION 2.13	 	Cancellation.
	 	SECTION 2.14	 	Payments; Defaulted Interest.
	 	SECTION 2.15	 	Persons Deemed Owners.
	 	SECTION 2.16	 	Computation of Interest.
	 	SECTION 2.17	 	Global Securities; Book-Entry Provisions.
	

ARTICLE III	
 	

REDEMPTION
	 	
 SECTION 3.01	
 	

Applicability of Article.
	 	SECTION 3.02	 	Notice to the Trustee.
	 	SECTION 3.03	 	Selection of Securities To Be Redeemed.
	 	SECTION 3.04	 	Notice of Redemption.
	 	SECTION 3.05	 	Effect of Notice of Redemption.
	 	SECTION 3.06	 	Deposit of Redemption Price.
	 	SECTION 3.07	 	Securities Redeemed or Purchased in Part.
	 	SECTION 3.08	 	Purchase of Securities.
	 	SECTION 3.09	 	Mandatory and Optional Sinking Funds.
	 	SECTION 3.10	 	Satisfaction of Sinking Fund Payments with Securities.
	 	SECTION 3.11	 	Redemption of Securities for Sinking Fund.
	

ARTICLE IV	
 	

COVENANTS
	 	
 SECTION 4.01	
 	

Payment of Securities.
	 	SECTION 4.02	 	Maintenance of Office or Agency.
	 	SECTION 4.03	 	SEC Reports; Financial Statements.
	 	SECTION 4.04	 	Compliance Certificate.
	 	SECTION 4.05	 	Corporate Existence.
	 	SECTION 4.06	 	Waiver of Stay, Extension or Usury Laws.
	 	SECTION 4.07	 	Additional Amounts.
	 	 	 

i

 

	

ARTICLE V	
 	

SUCCESSORS
	 	
 SECTION 5.01	
 	

Limitations on Mergers and Consolidations.
	 	SECTION 5.02	 	Successor Person Substituted.
	

ARTICLE VI	
 	

DEFAULTS AND REMEDIES
	 	
 SECTION 6.01	
 	

Events of Default.
	 	SECTION 6.02	 	Acceleration.
	 	SECTION 6.03	 	Other Remedies.
	 	SECTION 6.04	 	Waiver of Defaults.
	 	SECTION 6.05	 	Control by Majority.
	 	SECTION 6.06	 	Limitations on Suits.
	 	SECTION 6.07	 	Rights of Holders to Receive Payment.
	 	SECTION 6.08	 	Collection Suit by Trustee.
	 	SECTION 6.09	 	Trustee May File Proofs of Claim.
	 	SECTION 6.10	 	Priorities.
	 	SECTION 6.11	 	Undertaking for Costs.
	

ARTICLE VII	
 	

TRUSTEE
	 	
 SECTION 7.01	
 	

Duties of Trustee.
	 	SECTION 7.02	 	Rights of Trustee.
	 	SECTION 7.03	 	May Hold Securities.
	 	SECTION 7.04	 	Trustee's Disclaimer.
	 	SECTION 7.05	 	Notice of Defaults.
	 	SECTION 7.06	 	Reports by Trustee to Holders.
	 	SECTION 7.07	 	Compensation and Indemnity.
	 	SECTION 7.08	 	Replacement of Trustee.
	 	SECTION 7.09	 	Successor Trustee by Merger, etc.
	 	SECTION 7.10	 	Eligibility; Disqualification.
	 	SECTION 7.11	 	Preferential Collection of Claims Against the Company.
	

ARTICLE VIII	
 	

DISCHARGE OF INDENTURE
	 	
 SECTION 8.01	
 	

Termination of the Company's Obligations.
	 	SECTION 8.02	 	Application of Trust Money.
	 	SECTION 8.03	 	Repayment to Company.
	 	SECTION 8.04	 	Reinstatement.
	

ARTICLE IX	
 	

SUPPLEMENTAL INDENTURES AND AMENDMENTS
	 	
 SECTION 9.01	
 	

Without Consent of Holders.
	 	SECTION 9.02	 	With Consent of Holders.
	 	SECTION 9.03	 	Compliance with Trust Indenture Act.
	 	SECTION 9.04	 	Revocation and Effect of Consents.
	 	SECTION 9.05	 	Notation on or Exchange of Securities.
	 	SECTION 9.06	 	Trustee to Sign Amendments, etc.
	

ARTICLE X	
 	

MISCELLANEOUS
	 	
 SECTION 10.01	
 	

Trust Indenture Act Controls.
	 	SECTION 10.02	 	Notices.
	 	SECTION 10.03	 	Communication by Holders with Other Holders.
	 	SECTION 10.04	 	Certificate and Opinion as to Conditions Precedent.
	 	 	 

ii

 

	 	SECTION 10.05	 	Statements Required in Certificate or Opinion.
	 	SECTION 10.06	 	Rules by Trustee and Agents.
	 	SECTION 10.07	 	Legal Holidays.
	 	SECTION 10.08	 	No Recourse Against Others.
	 	SECTION 10.09	 	Governing Law.
	 	SECTION 10.10	 	No Adverse Interpretation of Other Agreements.
	 	SECTION 10.11	 	Successors.
	 	SECTION 10.12	 	Severability.
	 	SECTION 10.13	 	Counterpart Originals.
	 	SECTION 10.14	 	Table of Contents, Headings, etc.

iii

  

        INDENTURE dated as of                        ,
            between Edge Petroleum Corporation, a Delaware corporation (the "Company"), and            , as trustee (the
"Trustee"). 

        Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company's unsecured debentures, notes or other evidences of
indebtedness (the "Securities") to be issued from time to time in one or more series as provided in this Indenture: 

 
 

ARTICLE I
  DEFINITIONS AND INCORPORATION BY REFERENCE    
    

 
 
        SECTION 1.01    Definitions.    

        "Additional
Amounts" means any additional amounts required by the express terms of a Security or by or pursuant to a Board Resolution, under circumstances specified therein or pursuant
thereto, to be paid by the Company with respect to certain taxes, assessments or other governmental charges imposed on certain Holders and that are owing to such Holders. 

        "Affiliate"
of any specified Person means any other Person directly or indirectly controlling or controlled by, or under direct or indirect common control with, such specified Person.
For purposes of this definition, "control" of a Person shall mean the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and "controlled" shall have meanings correlative to the foregoing. 

        "Agent"
means any Registrar or Paying Agent. 

        "Bankruptcy
Law" means Title 11 of the United States Code or any similar federal, state or foreign law for the relief of debtors. 

        "Board
of Directors" means the Board of Directors of the Company or any committee thereof duly authorized, with respect to any particular matter, to act by or on behalf of the Board of
Directors of the Company. 

        "Board
Resolution" means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, and delivered to the Trustee. 

        "Business
Day" means any day that is not a Legal Holiday. 

        "Company"
means the Person named as the "Company" in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter "Company" shall mean such successor Person; provided, however, that for purposes of any provision contained herein which is
required by the TIA, "Company" shall also mean each other obligor (if any) on the Securities of a series. 

        "Company
Order" and "Company Request" mean, respectively, a written order or request signed in the name of the Company by two Officers of the Company, and delivered to the Trustee. 

        "Corporate
Trust Office of the Trustee" means the office of the Trustee located at                             ,
Attention:             ,
and as may be located at such other address as the Trustee may give notice to the Company. 

        "Default"
means any event, act or condition that is, or after notice or the passage of time or both would be, an Event of Default. 

        "Depositary"
means, with respect to the Securities of any series issuable or issued in whole or in part in global form, the Person specified pursuant to Section 2.01 hereof as the
initial Depositary with 

1

 

respect
to the Securities of such series, until a successor shall have been appointed and become such pursuant to the applicable provision of this Indenture, and thereafter "Depositary" shall mean or
include such successor. 

        "Dollar"
or "$" means a dollar or other equivalent unit in such coin or currency of the United States as at the time shall be legal tender for the payment of public and private debt. 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended, and any successor statute. 

        "GAAP"
means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment
of the accounting profession of the United States, as in effect from time to time. 

        "Global
Security" means a Security that is issued in global form in the name of the Depositary with respect thereto or its nominee. 

        "Government
Obligations" means, with respect to a series of Securities, direct obligations of the government that issues the currency in which the Securities of the series are payable
for the payment of which the full faith and credit of such government is pledged, or obligations of a Person controlled or supervised by and acting as an agency or instrumentality of such government,
the payment of which is unconditionally guaranteed as a full faith and credit obligation by such government. 

        "Holder"
means a Person in whose name a Security is registered. 

        "Indenture"
means this Indenture as amended or supplemented from time to time pursuant to the provisions hereof, and includes the terms of a particular series of Securities established
as contemplated by Section 2.01. 

        "interest"
means, with respect to an Original Issue Discount Security that by its terms bears interest only after Maturity, interest payable after Maturity. 

        "Interest
Payment Date," when used with respect to any Security, shall have the meaning assigned to such term in the Security as contemplated by Section 2.01. 

        "Issue
Date" means, with respect to Securities of a series, the date on which the Securities of such series are originally issued under this Indenture. 

        "Legal
Holiday" means a Saturday, a Sunday or a day on which banking institutions in any of The City of New York, New York; Houston, Texas or a Place of Payment are authorized or
obligated by law, regulation or executive order to remain closed. 

        "Maturity"
means, with respect to any Security, the date on which the principal of such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity thereof, or by declaration of acceleration, call for redemption or otherwise. 

        "Officer"
means the Chairman of the Board, the President, any Vice Chairman of the Board, any Vice President, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the
Controller, the Secretary or any Assistant Secretary of a Person. 

        "Officers'
Certificate" means a certificate signed by two Officers of a Person. 

        "Opinion
of Counsel" means a written opinion from legal counsel who is acceptable to the Trustee. Such counsel may be an employee of or counsel to the Company or the Trustee. 

2

 

        "Original
Issue Discount Security" means any Security that provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.02. 

        "Person"
means any individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association, joint stock company, trust, unincorporated
organization or government or other agency, instrumentality or political subdivision thereof or other entity of any kind. 

        "Place
of Payment" means, with respect to the Securities of any series, the place or places where the principal of, premium (if any) and interest on and any Additional Amounts with
respect to the Securities of that series are payable as specified in accordance with Section 2.01 subject to the provisions of Section 4.02. 

        "principal"
of a Security means the principal of the Security plus, when appropriate, the premium, if any, on the Security. 

        "Redemption
Date" means, with respect to any Security to be redeemed, the date fixed for such redemption by or pursuant to this Indenture. 

        "Redemption
Price" means, with respect to any Security to be redeemed, the price at which it is to be redeemed pursuant to this Indenture. 

        "Responsible
Officer" means any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant
treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to
whom any corporate trust matter is referred because of such person's knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this
Indenture. 

        "Rule
144A Securities" means Securities of a series designated pursuant to Section 2.01 as entitled to the benefits of Section 4.03(b). 

        "SEC"
means the Securities and Exchange Commission. 

        "Securities"
has the meaning stated in the preamble of this Indenture and more particularly means any Securities authenticated and delivered under this Indenture. 

        "Security
Custodian" means, with respect to Securities of a series issued in global form, the Trustee for Securities of such series, as custodian with respect to the Securities of such
series, or any successor entity thereto. 

        "Stated
Maturity" means, when used with respect to any Security or any installment of principal thereof or interest thereon, the date specified in such Security as the fixed date on
which the principal of such Security or such installment of principal or interest is due and payable. 

        "Subsidiary"
means a Person at least a majority of the outstanding voting stock of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, "voting stock" means stock having
voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 

        "TIA"
means the Trust Indenture Act of 1939, as amended, as in effect on the date hereof. 

        "Trustee"
means the Person named as such above until a successor replaces it in accordance with the applicable provisions of this Indenture, and thereafter "Trustee" means each Person
who is then a Trustee hereunder, and if at any time there is more than one such Person, "Trustee" as used with respect to the Securities of any series means the Trustee with respect to Securities of
that series. 

3

 

        "United
States" means the United States of America (including the States and the District of Columbia) and its territories and possessions, which include Puerto Rico, the U.S. Virgin
Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands. 

        "U.S.
Government Obligations" means Government Obligations with respect to Securities payable in Dollars. 

 
 

          SECTION 1.02    Other Definitions.    

	Term
 
	 	Defined in Section

	"Agent Members"	 	2.17
	"Bankruptcy Custodian"	 	6.01
	"Conversion Event"	 	6.01
	"covenant defeasance"	 	8.01
	"Event of Default"	 	6.01
	"Exchange Rate"	 	2.11
	"Judgment Currency"	 	6.10
	"legal defeasance"	 	8.01
	"mandatory sinking fund payment"	 	3.09
	"optional sinking fund payment"	 	3.09
	"Paying Agent"	 	2.05
	"Registrar"	 	2.05
	"Required Currency"	 	6.10
	"Successor"	 	5.01

 
 

           SECTION 1.03    Incorporation by Reference of Trust Indenture Act.     

        Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture (and if the Indenture is not qualified under the
TIA at that time, as if it were so qualified unless otherwise provided). The following TIA terms used in this Indenture have the following meanings: 

        "Commission"
means the SEC. 

        "indenture
securities" means the Securities. 

        "indenture
security holder" means a Holder. 

        "indenture
to be qualified" means this Indenture. 

        "indenture
trustee" or "institutional trustee" means the Trustee. 

        "obligor"
on the indenture securities means the Company or any other obligor on the Securities. 

        All
terms used in this Indenture that are defined by the TIA, defined by a TIA reference to another statute or defined by an SEC rule under the TIA have the meanings so assigned to them. 

 
 

           SECTION 1.04    Rules of Construction.    

        Unless
the context otherwise requires: 

	(1)
	a
term has the meaning assigned to it;

	(2)
	an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

	(3)
	"or"
is not exclusive;

	(4)
	words
in the singular include the plural, and in the plural include the singular; 

4

 

	(5)
	provisions
apply to successive events and transactions; and

	(6)
	all
references in this instrument to Articles and Sections are references to the corresponding Articles and Sections in and of this instrument. 

 
 

ARTICLE II
  THE SECURITIES    
    

 
 
        SECTION 2.01    Amount Unlimited; Issuable in Series.    

        The
aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. 

        The
Securities may be issued in one or more series. There shall be established in or pursuant to a Board Resolution, and set forth, or determined in the manner provided, in an Officers'
Certificate of the Company or in a Company Order, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series: 

         (1)  the
title of the Securities of the series (which shall distinguish the Securities of the series from the Securities of all other series); 

         (2)  if
there is to be a limit, the limit upon the aggregate principal amount of the Securities of the series that may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 2.08, 2.09, 2.12, 2.17, 3.07
or 9.05 and except for any Securities which, pursuant to Section 2.04 or 2.17, are deemed never to have been authenticated and delivered hereunder); provided,
however, that unless otherwise provided in the terms of the series, the authorized aggregate principal amount of such series may be increased before or after the issuance of
any Securities of the series by a Board Resolution (or action pursuant to a Board Resolution) to such effect; 

         (3)  whether
any Securities of the series are to be issuable initially in temporary global form and whether any Securities of the series are to be issuable in permanent
global form, as Global Securities or otherwise, and, if so, whether beneficial owners of interests in any such Global Security may exchange such interests for Securities of such series and of like
tenor of any authorized form and denomination
and the circumstances under which any such exchanges may occur, if other than in the manner provided in Section 2.17, and the initial Depositary and Security Custodian, if any, for any Global Security
or Securities of such series; 

         (4)  the
manner in which any interest payable on a temporary Global Security on any Interest Payment Date will be paid if other than in the manner provided in Section 2.14; 

         (5)  the
date or dates on which the principal of and premium (if any) on the Securities of the series is payable or the method of determination thereof; 

         (6)  the
rate or rates, or the method of determination thereof, at which the Securities of the series shall bear interest, if any, whether and under what circumstances
Additional Amounts with respect to such Securities shall be payable, the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest shall be payable and the
record date for the interest payable on any Securities on any Interest Payment Date, or if other than provided herein, the Person to whom any interest on Securities of the series shall be payable; 

         (7)  the
place or places where, subject to the provisions of Section 4.02, the principal of, premium (if any) and interest on and any Additional Amounts with respect to the
Securities of the series shall be payable; 

5

 

         (8)  the
period or periods within which, the price or prices (whether denominated in cash, securities or otherwise) at which and the terms and conditions upon which
Securities of the series may be redeemed, in whole or in part, at the option of the Company, if the Company is to have that option, and the manner in which the Company must exercise any such option,
if different from those set forth herein; 

         (9)  the
obligation, if any, of the Company to redeem, purchase or repay Securities of the series pursuant to any sinking fund or analogous provisions or at the option of a
Holder thereof and the period or periods within which, the price or prices (whether denominated in cash, securities or otherwise) at which and the terms and conditions upon which Securities of the
series shall be redeemed, purchased or repaid in whole or in part pursuant to such obligation; 

       (10)  if
other than denominations of $1,000 and any integral multiple thereof, the denomination in which any Securities of that series shall be issuable; 

       (11)  if
other than Dollars, the currency or currencies (including composite currencies) or the form, including equity securities, other debt securities (including
Securities), warrants or any other securities or property of the Company or any other Person, in which payment of the principal of, premium (if any) and interest on and any Additional Amounts with
respect to the Securities of the series shall be payable; 

       (12)  if
the principal of, premium (if any) or interest on or any Additional Amounts with respect to the Securities of the series are to be payable, at the election of the
Company or a Holder thereof, in a currency or currencies (including composite currencies) other than that in which the Securities are stated to be payable, the currency or currencies (including
composite currencies) in which payment of the principal of, premium (if any) and interest on and any Additional Amounts with respect to Securities of such series as to which such election is made
shall be payable, and the periods within which and the terms and conditions upon which such election is to be made; 

       (13)  if
the amount of payments of principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of the series may be determined
with reference to any commodities, currencies or indices, values, rates or prices or any other index or formula, the manner in which such amounts shall be determined; 

       (14)  if
other than the entire principal amount thereof, the portion of the principal amount of Securities of the series that shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 6.02; 

       (15)  any
additional means of satisfaction and discharge of this Indenture and any additional conditions or limitations to discharge with respect to Securities of the series
pursuant to Article VIII or any modifications of or deletions from such conditions or limitations; 

       (16)  any
deletions or modifications of or additions to the Events of Default set forth in Section 6.01 or covenants of the Company set forth in Article IV pertaining to the
Securities of the series; 

       (17)  any
restrictions or other provisions with respect to the transfer or exchange of Securities of the series, which may amend, supplement, modify or supersede those
contained in this Article II; 

       (18)  if
the Securities of the series are to be convertible into or exchangeable for capital stock, other debt securities (including Securities), warrants, other equity
securities or any other securities or property of the Company or any other Person, at the option of the Company or the Holder or upon the occurrence of any condition or event, the terms and conditions
for such conversion or exchange; 

6

 

       (19)  if
the Securities of the series are to be entitled to the benefit of Section 4.03(b) (and accordingly constitute Rule 144A Securities), that fact; and 

       (20)  any
other terms of the series (which terms shall not be prohibited by the provisions of this Indenture). 

        All
Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to the Board Resolution referred to
above and (subject to Section 2.03) set forth, or determined in the manner provided, in the Officers' Certificate or Company Order referred to above or in any such indenture supplemental hereto. 

        If
any of the terms of the series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action, together with such Board Resolution,
shall be set forth in an Officers' Certificate or certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers'
Certificate or Company Order setting forth the terms of the series. 

 
 

           SECTION 2.02    Denominations.    

        The
Securities of each series shall be issuable in such denominations as shall be specified as contemplated by Section 2.01. In the absence of any such provisions with respect to the
Securities of any series, the Securities of such series denominated in Dollars shall be issuable in denominations of $1,000 and any integral multiples thereof. 

 
 

           SECTION 2.03    Forms Generally.    

        The
Securities of each series shall be in fully registered form and in substantially such form or forms (including temporary or permanent global form) established by or pursuant to a
Board Resolution or in one or more indentures supplemental hereto. The Securities may have notations, legends or endorsements required by law, securities exchange rule, the Company's certificate of
incorporation, bylaws or other similar governing documents, agreements to which the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable
to the Company). A copy of the Board Resolution establishing the form or forms of Securities of any series shall be delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 2.04 for the authentication and delivery of such Securities. 

        The
definitive Securities of each series shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined by the Officers
executing such Securities, as evidenced by their execution thereof. 

        The
Trustee's certificate of authentication shall be in substantially the following form: 

        "This
is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

	 	 	 
	, as Trustee
	 	 	By:	 	 	 
	 	 	 	 	
Authorized Signatory".

 
 

        SECTION 2.04    Execution, Authentication, Delivery and Dating.    

        Two
Officers of the Company shall sign the Securities on behalf of the Company by manual or facsimile signature. If an Officer of the Company whose signature is on a Security no longer
holds that office at the time the Security is authenticated, the Security shall be valid nevertheless. 

        A
Security shall not be entitled to any benefit under this Indenture or be valid or obligatory for any purpose until authenticated by the manual signature of an authorized signatory of
the Trustee, 

7

 

which
signature shall be conclusive evidence that the Security has been authenticated under this Indenture. Notwithstanding the foregoing, if any Security has been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company delivers such Security to the Trustee for cancellation as provided in Section 2.13, together with a written statement (which need
not comply with Section 10.05 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of this Indenture such
Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture. 

        At
any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, and the Trustee shall authenticate and deliver such Securities for original issue upon a Company Order for the authentication and delivery of such Securities or pursuant to such
procedures acceptable to the Trustee as may be specified from time to time by Company Order. Such order shall specify the amount of the Securities to be authenticated, the date on which the original
issue of Securities is to be authenticated, the name or names of the initial Holder or Holders and any other terms of the Securities of such series not otherwise determined. If provided for in such
procedures, such Company Order may authorize (1) authentication and delivery of Securities of such series for original issue from time to time, with certain terms (including, without limitation, the
Maturity dates or dates, original issue date or dates and interest rate or rates) that differ from Security to Security and (2) may authorize authentication and delivery pursuant to oral or electronic
instructions from the Company or its duly authorized agent, which instructions shall be promptly confirmed in writing. 

        If
the form or terms of the Securities of the series have been established in or pursuant to one or more Board Resolutions as permitted by Section 2.01, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive (in addition to the Company Order referred to
above and the other documents required by Section 10.04), and (subject to Section 7.01) shall be fully protected in relying upon: 

        (a)   an
Officers' Certificate setting forth the Board Resolution and, if applicable, an appropriate record of any action taken pursuant thereto, as contemplated by the last
paragraph of Section 2.01; and 

        (b)   an
Opinion of Counsel to the effect that: 

          (i)  the
form of such Securities has been established in conformity with the provisions of this Indenture; 

         (ii)  the
terms of such Securities have been established in conformity with the provisions of this Indenture; and 

        (iii)  that
such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion
of Counsel, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except as the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws in effect from time to time affecting the rights of creditors generally, and the application
of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

        If
all the Securities of any series are not to be issued at one time, it shall not be necessary to deliver an Officers' Certificate and Opinion of Counsel at the time of issuance of each
such Security, but such Officers' Certificate and Opinion of Counsel shall be delivered at or before the time of issuance of the first Security of the series to be issued. 

8

 

        The
Trustee shall not be required to authenticate such Securities if the issuance of such Securities pursuant to this Indenture would affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner not reasonably acceptable to the Trustee. 

        The
Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. Unless limited by the terms of such appointment, an authenticating agent may
authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same
rights as an Agent to deal with the Company or an Affiliate of the Company. 

        Each
Security shall be dated the date of its authentication. 

 
 

           SECTION 2.05    Registrar and Paying Agent.    

        The
Company shall maintain an office or agency for each series of Securities where Securities of such series may be presented for registration of transfer or exchange ("Registrar") and
an office or agency where Securities of such series may be presented for payment ("Paying Agent"). The Registrar shall keep a register of the Securities of such series and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or more additional paying agents. The term "Registrar" includes any co-registrar and the term "Paying Agent" includes any additional
paying agent. 

        The
Company shall enter into an appropriate agency agreement with any Registrar or Paying Agent not a party to this Indenture. The agreement shall implement the provisions of this
Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address of any Agent not a party to this Indenture. The Company may change any Paying Agent or Registrar
without notice to any Holder. If the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any Subsidiary may act as Paying
Agent or Registrar. 

        The
Company initially appoints the Trustee as Registrar and Paying Agent. 

 
 

           SECTION 2.06    Paying Agent to Hold Money in Trust.    

        The
Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held
by the Paying Agent for the payment of principal of, premium, if any, or interest on or any Additional Amounts with respect to Securities and will notify the Trustee of any default by the Company in
making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed. The Company at any
time may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed. Upon payment over to the Trustee and upon accounting for any funds disbursed, the
Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate
trust fund for the benefit of the Holders all money held by it as Paying Agent. Each Paying Agent shall otherwise comply with TIA ! 317(b). 

 
 

           SECTION 2.07    Holder Lists.    

        The
Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders and shall otherwise comply with
TIA ! 312(a). If the Trustee is not the Registrar with respect to a series of Securities, the Company shall furnish to the Trustee at least five Business Days before each Interest Payment Date with
respect to such series of Securities, and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and
addresses of Holders of such series, and the Company shall otherwise comply with TIA § 312(a). 

9

 

 
 

          SECTION 2.08    Transfer and Exchange.    

        Except
as set forth in Section 2.17 or as may be provided pursuant to Section 2.01: 

        When
Securities of any series are presented to the Registrar with the request to register the transfer of such Securities or to exchange such Securities for an equal principal amount of
Securities of the same series of like tenor and of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its requirements and the requirements
of this Indenture for such transactions are met; provided, however, that the Securities presented or surrendered for registration of transfer or
exchange shall be duly endorsed or accompanied by a written instruction of transfer in form reasonably satisfactory to the Registrar duly executed by the Holder thereof or by his attorney, duly
authorized in writing, on which instruction the Registrar can rely. 

        To
permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Securities at the Registrar's written request and submission of the
Securities or Global Securities. No service charge shall be made to a Holder for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require
payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than such transfer tax or similar governmental charge payable upon exchanges
pursuant to Section 2.12, 3.07 or 9.05). The Trustee shall authenticate Securities in accordance with the provisions of Section 2.04. Notwithstanding any other provisions of this Indenture to the
contrary, the Company shall not be required to register the transfer or exchange of (a) any Security selected for redemption in whole or in part pursuant to Article III, except the unredeemed portion
of any Security being redeemed in part, or (b) any Security during the period beginning 15 Business Days prior to the mailing of notice of any offer to repurchase Securities of the series required
pursuant to the terms thereof or of redemption of Securities of a series to be redeemed and ending at the close of business on the day of mailing. 

 
 

           SECTION 2.09    Replacement Securities.    

        If
any mutilated Security is surrendered to the Trustee, or if the Holder of a Security claims that the Security has been destroyed, lost or stolen and the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of such Security, the Company shall issue and the Trustee shall authenticate a replacement Security of the same series if the
Trustee's requirements are met. If any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new
Security, pay such Security. If required by the Trustee or the Company, such Holder must furnish an indemnity bond that is sufficient in the judgment of the Trustee and the Company to protect the
Company, the Trustee, any Agent or any authenticating agent from any loss that any of them may suffer if a Security is replaced. The Company and the Trustee may charge a Holder for their expenses in
replacing a Security. 

        Every
replacement Security is an additional obligation of the Company. 

 
 

          SECTION 2.10    Outstanding Securities.    

        The
Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in
the interest in a Global Security effected by the Trustee hereunder and those described in this Section 2.10 as not outstanding. 

        If
a Security is replaced pursuant to Section 2.09, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser. 

        If
the principal amount of any Security is considered paid under Section 4.01, it ceases to be outstanding and interest on it ceases to accrue. 

10

 

        A
Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security. 

 
 

           SECTION 2.11    Original Issue Discount, Foreign-Currency Denominated and Treasury Securities.    

        In
determining whether the Holders of the required principal amount of Securities have concurred in any direction, amendment, supplement, waiver or consent, (a) the principal amount of
an Original Issue Discount Security shall be the principal amount thereof that would be due and payable as of the date of such determination upon acceleration of the Maturity thereof pursuant to
Section 6.02, (b) the principal amount of a Security denominated in a foreign currency shall be the Dollar equivalent, as determined by the Company by reference to the noon buying rate in The City of
New York for cable transfers for such currency, as such rate is certified for customs purposes by the Federal Reserve Bank of New York (the "Exchange Rate") on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue Discount Security, the Dollar equivalent, as determined by the Company by reference to the Exchange Rate on the date of original
issuance of such Security, of the amount determined as provided in (a) above), of such Security and (c) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the
Company or of such other obligor shall be disregarded, except that, for the purpose of determining whether the Trustee shall be protected in relying upon any such direction, amendment, supplement,
waiver or consent, only Securities that a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded. 

 
 

           SECTION 2.12    Temporary Securities.    

        Until
definitive Securities of any series are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities. Temporary Securities shall be
substantially in the form of definitive Securities, but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and
the Trustee shall authenticate definitive Securities in exchange for temporary Securities. Until so exchanged, the temporary Securities shall in all respects be entitled to the same benefits under
this Indenture as definitive Securities. 

 
 

           SECTION 2.13    Cancellation.    

        The
Company at any time may deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange, payment or redemption or for credit against any sinking fund payment. The Trustee shall cancel all Securities surrendered for registration of transfer, exchange,
payment, redemption, replacement or cancellation or for credit against any sinking fund. Unless the Company shall direct in writing that canceled Securities be returned to it, after written notice to
the Company all canceled Securities held by the Trustee shall be disposed of in accordance with the usual disposal procedures of the Trustee, and the Trustee shall maintain a record of their disposal.
The Company may not issue new Securities to replace Securities that have been paid or that have been delivered to the Trustee for cancellation. 

 
 

          SECTION 2.14    Payments; Defaulted Interest.    

        Unless
otherwise provided as contemplated by Section 2.01, interest (except defaulted interest) on any Security that is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Persons who are registered Holders of that Security at the close of business on the record date next preceding such Interest Payment Date, even if such
Securities are canceled after such record date and on or before such Interest Payment Date. The Holder must surrender a Security to a Paying Agent to collect principal payments. Unless otherwise
provided with respect to the Securities of any series, the Company will pay the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities in Dollars.
Such amounts shall be payable at the offices of the Trustee or any Paying Agent, provided that at the option of the Company, the Company may pay such 

11

 

amounts
(1) by wire transfer with respect to Global Securities or (2) by check payable in such money mailed to a Holder's registered address with respect to any Securities. 

        If
the Company defaults in a payment of interest on the Securities of any series, the Company shall pay the defaulted interest in any lawful manner plus, to the extent lawful, interest
on the defaulted interest, in each case at the rate provided in the Securities of such series and in Section 4.01. The Company may pay the defaulted interest to the Persons who are Holders on a
subsequent special record date. At least 15 days before any special record date selected by the Company, the Company (or the Trustee, in the name of and at the expense of the Company upon 20 days'
prior written notice from the Company setting forth such special record date and the interest amount to be paid) shall mail to Holders a notice that states the special record date, the related payment
date and the amount of such interest to be paid. 

 
 

          SECTION 2.15    Persons Deemed Owners.    

        The
Company, the Trustee, any Agent and any authenticating agent may treat the Person in whose name any Security is registered as the owner of such Security for the purpose of receiving
payments of principal of, premium (if any) or interest on or any Additional Amounts with respect to such Security and for all other purposes. None of the Company, the Trustee, any Agent or any
authenticating agent shall be affected by any notice to the contrary. 

 
 

           SECTION 2.16    Computation of Interest.    

        Except
as otherwise specified as contemplated by Section 2.01 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a year comprising
twelve 30-day months. 

 
 

          SECTION 2.17    Global Securities; Book-Entry Provisions.    

        If
Securities of a series are issuable in global form as a Global Security, as contemplated by Section 2.01, then, notwithstanding clause (10) of Section 2.01 and the provisions of
Section 2.02, any such Global Security shall represent such of the outstanding Securities of such series as shall be specified therein and may provide that it shall represent the aggregate amount of
outstanding Securities from time to time endorsed thereon and that the aggregate amount of outstanding Securities represented thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges, transfers or redemptions. Any endorsement of a Global Security to reflect the amount, or any increase or decrease in the amount, of outstanding Securities represented thereby shall
be made by the Trustee (i) in such manner and upon instructions given by such Person or Persons as shall be specified in such Security or in a Company Order to be delivered to the Trustee pursuant to
Section 2.04 or (ii) otherwise in accordance with written instructions or such other written form of instructions as is customary for the Depositary for such Security, from such Depositary or its
nominee on behalf of any Person having a beneficial interest in such Global Security. Subject to the provisions of Section 2.04 and, if applicable, Section 2.12, the Trustee shall deliver and
redeliver any Security in permanent global form in the manner and upon instructions given by the Person or Persons specified in such Security or in the applicable Company Order. With respect to the
Securities of any series that are represented by a Global Security, the Company authorizes the execution and delivery by the Trustee of a letter of representations or other similar agreement or
instrument in the form customarily provided for by the Depositary appointed with respect to such Global Security. Any Global Security may be deposited with the Depositary or its nominee, or may remain
in the custody of the Trustee or the Security Custodian therefor pursuant to a FAST Balance Certificate Agreement or similar agreement between the Trustee and the Depositary. If a Company Order has
been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement or delivery or redelivery of a Security in global form shall be in writing but need not comply with
Section 10.05 and need not be accompanied by an Opinion of Counsel. 

12

 

        Members
of, or participants in, the Depositary ("Agent Members") shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depositary, or
the Trustee or the Security Custodian as its custodian, or under such Global Security, and the Depositary may be treated by the Company, the Trustee or the Security Custodian and any agent of the
Company, the Trustee or the Security Custodian as the absolute owner of such Global Security for all purposes
whatsoever. Notwithstanding the foregoing, (i) the registered holder of a Global Security of a series may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action that a Holder of Securities of such series is entitled to take under this Indenture or the Securities of such series and (ii) nothing herein
shall prevent the Company, the Trustee or the Security Custodian, or any agent of the Company, the Trustee or the Security Custodian, from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or shall impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a beneficial
owner of any Security. 

        Notwithstanding
Section 2.08, and except as otherwise provided pursuant to Section 2.01: Transfers of a Global Security shall be limited to transfers of such Global Security in whole,
but not in part, to the Depositary, its successors or their respective nominees. Interests of beneficial owners in a Global Security may be transferred in accordance with the rules and procedures of
the Depositary. Securities shall be transferred to all beneficial owners in exchange for their beneficial interests in a Global Security if, and only if, either (1) the Depositary notifies the Company
that it is unwilling or unable to continue as Depositary for the Global Security and a successor Depositary is not appointed by the Company within 90 days of such notice, (2) an Event of Default has
occurred with respect to such series and is continuing and the Registrar has received a request from the Depositary to issue Securities in lieu of all or a portion of the Global Security (in which
case the Company shall deliver Securities within 30 days of such request) or (3) the Company determines not to have the Securities represented by a Global Security. 

        In
connection with any transfer of a portion of the beneficial interests in a Global Security to beneficial owners pursuant to this Section 2.17, the Registrar shall reflect on its books
and records the date and a decrease in the principal amount of the Global Security in an amount equal to the principal amount of the beneficial interests in the Global Security to be transferred, and
the Company shall execute, and the Trustee upon receipt of a Company Order for the authentication and delivery of Securities shall authenticate and deliver, one or more Securities of the same series
of like tenor and amount. 

        In
connection with the transfer of all the beneficial interests in a Global Security to beneficial owners pursuant to this Section 2.17, the Global Security shall be deemed to be
surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by the Depositary in exchange for its
beneficial interests in the Global Security, an equal aggregate principal amount of Securities of authorized denominations. 

        Neither
the Company nor the Trustee will have any responsibility or liability for any aspect of the records relating to, or payments made on account of, Securities by the Depositary, or
for maintaining, supervising or reviewing any records of the Depositary relating to such Securities. Neither the Company nor the Trustee shall be liable for any delay by the related Global Security
Holder or the Depositary in identifying the beneficial owners, and each such Person may conclusively rely on, and shall be protected in relying on, instructions from such Global Security Holder or the
Depositary for all purposes (including with respect to the registration and delivery, and the respective principal amounts, of the Securities to be issued). 

13

  

        The provisions of the last sentence of the third paragraph of Section 2.04 shall apply to any Global Security if such Global Security was never issued and sold by the Company and the
Company delivers to the Trustee the Global Security together with written instructions (which need not comply with Section 10.05 and need not be accompanied by an Opinion of Counsel) with regard to
the cancellation or reduction in the principal amount of Securities represented thereby, together with the written statement contemplated by the last sentence of the third paragraph of Section 2.04. 

        Notwithstanding
the provisions of Sections 2.03 and 2.14, unless otherwise specified as contemplated by Section 2.01, payment of principal of, premium (if any) and interest on and any
Additional Amounts with respect to any Global Security shall be made to the Person or Persons specified therein. 

 
 

ARTICLE III
  REDEMPTION    
    

 
 
        SECTION 3.01    Applicability of Article.    

        Securities
of any series that are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section
2.01 for Securities of any series) in accordance with this Article III. 

 
 

          SECTION 3.02    Notice to the Trustee.    

        If
the Company elects to redeem Securities of any series pursuant to this Indenture, it shall notify the Trustee of the Redemption Date and the principal amount of Securities of such
series to be redeemed. The Company shall so notify the Trustee at least 45 days before the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee) by delivering to the Trustee
an Officers' Certificate stating that such redemption will comply with the provisions of this Indenture and of the Securities of such
series. Any such notice may be canceled at any time prior to the mailing of such notice of such redemption to any Holder and shall thereupon be void and of no effect. 

 
 

           SECTION 3.03    Selection of Securities To Be Redeemed.    

        If
less than all the Securities of any series are to be redeemed (unless all of the Securities of such series of a specified tenor are to be redeemed), the particular Securities to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee from the outstanding Securities of such series (and tenor) not previously called for redemption, either pro
rata, by lot or by such other method as the Trustee shall deem fair and appropriate and that may provide for the selection for redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of
that series or of the principal amount of Global Securities of such series. 

        The
Trustee shall promptly notify the Company and the Registrar in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption,
the principal amount thereof to be redeemed. 

        For
purposes of this Indenture, unless the context otherwise requires, all provisions relating to redemption of Securities shall relate, in the case of any of the Securities redeemed or
to be redeemed only in part, to the portion of the principal amount thereof which has been or is to be redeemed. 

 
 

          SECTION 3.04    Notice of Redemption.    

        Notice
of redemption shall be given by first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed, at the address of such Holder appearing in the register of Securities maintained by the Registrar. 

14

 

        All
notices of redemption shall identify the Securities to be redeemed and shall state: 

        (1)   the
Redemption Date; 

        (2)   the
Redemption Price; 

        (3)   that,
unless the Company defaults in making the redemption payment, interest on Securities called for redemption ceases to accrue on and after the Redemption Date, and
the only remaining right of the Holders of such Securities is to receive payment of the Redemption Price upon surrender to the Paying Agent of the Securities redeemed; 

        (4)   if
any Security is to be redeemed in part, the portion of the principal amount thereof to be redeemed and that on and after the Redemption Date, upon surrender for
cancellation of such Security to the Paying Agent, a new Security or Securities in the aggregate principal amount equal to the unredeemed portion thereof will be issued without charge to the Holder; 

        (5)   that
Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price and the name and address of the Paying Agent; 

        (6)   that
the redemption is for a sinking or analogous fund, if such is the case; and 

        (7)   the
CUSIP number, if any, relating to such Securities. 

        Notice
of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company's written request, by the Trustee in the name and at the
expense of the Company. 

 
 

          SECTION 3.05    Effect of Notice of Redemption.    

        Once
notice of redemption is mailed, Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price. Upon surrender to the Paying Agent, such
Securities called for redemption shall be paid at the Redemption Price, but interest installments whose maturity is on or prior to such Redemption Date will be payable on the relevant Interest Payment
Dates to the Holders of record at the close of business on the relevant record dates specified pursuant to Section 2.01. 

 
 

           SECTION 3.06    Deposit of Redemption Price.    

        On
or prior to 11:00 a.m., New York City time, on any Redemption Date, the Company shall deposit with the Trustee or the Paying Agent (or, if the Company is acting as the Paying Agent,
segregate and hold in trust as provided in Section 2.06) an amount of money in same day funds sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment
Date) accrued interest on and any Additional Amounts with respect to, the Securities or portions thereof which are to be redeemed on that date, other than Securities or portions thereof called for
redemption on that date which have been delivered by the Company to the Trustee for cancellation. 

        If
the Company complies with the preceding paragraph, then, unless the Company defaults in the payment of such Redemption Price, interest on the Securities to be redeemed will cease to
accrue on and after the applicable Redemption Date, whether or not such Securities are presented for payment, and the Holders of such Securities shall have no further rights with respect to such
Securities except for the right to receive the Redemption Price upon surrender of such Securities. If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the
principal, premium, if any, any Additional Amounts, and, to the extent lawful, accrued interest thereon shall, until paid, bear interest from the Redemption Date at the rate specified pursuant to
Section 2.01 or provided in the Securities or, in the case of Original Issue Discount Securities, such Securities' yield to maturity. 

15

 

 
 

           SECTION 3.07    Securities Redeemed or Purchased in Part.    

        Upon
surrender to the Paying Agent of a Security to be redeemed in part, the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security without
service charge a new Security or Securities, of the same series and of any authorized denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the
unredeemed portion of the principal of the Security so surrendered that is not redeemed. 

 
 

           SECTION 3.08    Purchase of Securities.    

        Unless
otherwise specified as contemplated by Section 2.01, the Company and any Affiliate of the Company may, subject to applicable law, at any time purchase or otherwise acquire
Securities in the open market or by private agreement. Any such acquisition shall not operate as or be deemed for any
purpose to be a redemption of the indebtedness represented by such Securities. Any Securities purchased or acquired by the Company may be delivered to the Trustee and, upon such delivery, the
indebtedness represented thereby shall be deemed to be satisfied. Section 2.13 shall apply to all Securities so delivered. 

 
 

          SECTION 3.09    Mandatory and Optional Sinking Funds.    

        The
minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a "mandatory sinking fund payment," and any payment in
excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an "optional sinking fund payment." Unless otherwise provided by the terms of Securities of
any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 3.10. Each sinking fund payment shall be applied to the redemption of Securities of any
series as provided for by the terms of Securities of such series and by this Article III. 

 
 

           SECTION 3.10    Satisfaction of Sinking Fund Payments with Securities.    

        The
Company may deliver outstanding Securities of a series (other than any previously called for redemption) and may apply as a credit Securities of a series that have been redeemed
either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each
case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant to the terms of such series of Securities;  provided that
such Securities have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at
the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. 

 
 

          SECTION 3.11    Redemption of Securities for Sinking Fund.    

        Not
less than 45 days prior (unless a shorter period shall be satisfactory to the Trustee) to each sinking fund payment date for any series of Securities, the Company will deliver to the
Trustee an Officers' Certificate of the Company specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the portion thereof, if any, which
is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivery of or by crediting Securities of that series pursuant to Section 3.10 and will also deliver
or cause to be delivered to the Trustee any Securities to be so delivered. Failure of the Company to timely deliver or cause to be delivered such Officers' Certificate and Securities specified in this
paragraph, if any, shall not constitute a default but shall constitute the election of the Company (i) that the mandatory sinking fund payment for such series due on the next succeeding sinking fund
payment date shall be paid entirely in cash without the option to deliver or credit Securities of such series in respect thereof and (ii) that the Company will make no optional sinking fund payment
with respect to such series as provided in this Section. 

16

 

        If
the sinking fund payment or payments (mandatory or optional or both) to be made in cash on the next succeeding sinking fund payment date plus any unused balance of any preceding
sinking fund payments made in cash shall exceed $100,000 (or the Dollar equivalent thereof based on the applicable Exchange Rate on the date of original issue of the applicable Securities) or a lesser
sum if the Company shall so request with respect to the Securities of any particular series, such cash shall be applied on the next succeeding sinking fund payment date to the redemption of Securities
of such series at the sinking fund redemption price together with accrued interest to the date fixed for redemption. If such amount shall be $100,000 (or the Dollar equivalent thereof as aforesaid) or
less and the Company makes no such request then it shall be carried over until a sum in excess of $100,000 (or the Dollar equivalent thereof as aforesaid) is available. Not less than 30 days before
each such sinking fund payment date, the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.03 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.04. Such notice having been duly given, the redemption of such Securities shall be
made upon the terms and in the manner stated in Sections 3.05, 3.06 and 3.07. 

 
 

ARTICLE IV
  COVENANTS    
    

 
 
        SECTION 4.01    Payment of Securities.    

        The
Company shall pay the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of each series on the dates and in the manner provided
in the Securities of such series and in this Indenture. Principal, premium, interest and any Additional Amounts shall be considered paid on the date due if the Paying Agent (other than the Company or
a Subsidiary) holds on that date money deposited by the Company designated for and sufficient to pay all principal, premium, interest and any Additional Amounts then due. 

        The
Company shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium (if any), at a rate equal to the then
applicable interest rate on the Securities to the extent lawful; and it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and any Additional Amount (without regard to any applicable grace period) at the same rate to the extent lawful. 

 
 

          SECTION 4.02    Maintenance of Office or Agency.    

        The
Company will maintain in each Place of Payment for any series of Securities an office or agency (which may be an office of the Trustee, the Registrar or the Paying Agent) where
Securities of that series may be presented for registration of transfer or exchange, where Securities of that series may be presented for payment and where notices and demands to or upon the Company
in respect of the Securities of that series and this Indenture may be served. Unless otherwise designated by the Company by written notice to the Trustee, such office or agency shall be the office of
the Trustee in The City of New York, which on the date hereof is located at                         . The Company will give
prompt written notice to the Trustee of the location,
and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. 

        The
Company may also from time to time designate one or more other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in each Place of Payment for Securities of any series for such purposes. The Company will give prompt 

17

 

written
notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. 

 
 

          SECTION 4.03    SEC Reports; Financial Statements.    

        (a)   If
the Company is subject to the requirements of Section 13 or 15(d) of the Exchange Act, the Company shall file with the Trustee, within 15 days after it files the same
with the SEC, copies of the annual reports and the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) that
the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. If this Indenture is qualified under the TIA, but not otherwise, the Company shall also comply with
the provisions of TIA § 314(a). Delivery of such reports, information and documents to the Trustee shall be for informational purposes only, and the Trustee's receipt thereof shall not
constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company's compliance with any of its covenants hereunder (as to
which the Trustee is entitled to rely exclusively on Officers' Certificates or certificates delivered pursuant to Section 4.04). 

        (b)   If
the Company is not subject to the requirements of Section 13 or 15(d) of the Exchange Act, the Company shall furnish to all Holders of Rule 144A Securities and
prospective purchasers of Rule 144A Securities designated by the Holders of Rule 144A Securities, promptly upon their request, the information required to be delivered pursuant to Rule 144A(d)(4)
promulgated under the Securities Act of 1933, as amended. 

 
 

           SECTION 4.04    Compliance Certificate.    

        (a)   The
Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, a statement signed by an Officer of the Company, which need
not constitute an Officers' Certificate, complying with TIA § 314(a)(4) and stating that in the course of performance by the signing Officer of his duties as such Officer of the Company he
would normally obtain knowledge of the keeping, observing, performing and fulfilling by the Company of its obligations under this Indenture, and further stating that to the best of his knowledge the
Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and
conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which such Officer may have knowledge and what action the Company is
taking or proposes to take with respect thereto). 

        (b)   The
Company shall, so long as Securities of any series are outstanding, deliver to the Trustee, forthwith upon any Officer of the Company becoming aware of any Default
or Event of Default under this Indenture, an Officers' Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto. 

 
 

           SECTION 4.05    Corporate Existence.    

        Subject
to Article V, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect its existence. 

 
 

           SECTION 4.06    Waiver of Stay, Extension or Usury Laws.    

        The
Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law or any usury law or other law that would prohibit or forgive it from paying all or any portion of the principal of or interest on the Securities as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture; and (to the extent that it may lawfully do so) the Company hereby
expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the 

18

 

execution
of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 

 
 

           SECTION 4.07    Additional Amounts.    

        If
the Securities of a series expressly provide for the payment of Additional Amounts, the Company will pay to the Holder of any Security of such series Additional Amounts as expressly
provided therein. Whenever in this Indenture there is mentioned, in any context, the payment of the principal of or any premium or interest on, or in respect of, any Security of any series or the net
proceeds received from the sale or exchange of any Security of any series, such mention shall be deemed to include mention of the payment of Additional Amounts provided for in this Section 4.07 to the
extent that, in such context, Additional Amounts are, were or would be payable in respect thereof pursuant to the provisions of this Section 4.07 and express mention of the payment of Additional
Amounts (if applicable) in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where such express mention is not made. 

 
 

ARTICLE V
  SUCCESSORS    
    

 
 
        SECTION 5.01    Limitations on Mergers and Consolidations.    

        The
Company shall not, in any transaction or series of transactions, consolidate with or merge into any Person, or sell, lease, convey, transfer or otherwise dispose of all or
substantially all of its assets to any Person, unless: 

        (1)   either
(a) the Company shall be the continuing Person or (b) the Person (if other than the Company) formed by such consolidation or into which the Company is merged, or
to which such sale, lease, conveyance, transfer or other disposition shall be made (collectively, the "Successor"), is organized and validly existing under the laws of the United States, any political
subdivision thereof or any State thereof or the District of Columbia, and expressly assumes by supplemental indenture the due and punctual payment of the principal of, premium (if any) and interest on
and any Additional Amounts with respect to all the Securities and the performance of the Company's covenants and obligations under this Indenture and the Securities; 

        (2)   immediately
after giving effect to such transaction or series of transactions, no Default or Event of Default shall have occurred and be continuing or would result
therefrom; and 

        (3)   the
Company delivers to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that the transaction and such supplemental indenture comply with
this Indenture. 

 
 

           SECTION 5.02    Successor Person Substituted.    

        Upon
any consolidation or merger of the Company or any sale, lease, conveyance, transfer or other disposition of all or substantially all of the assets of the Company in accordance with
Section 5.01, the Successor formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance, transfer or other disposition is made shall succeed to,
and be substituted for, and may exercise every right and power of the Company under this Indenture and the Securities with the same effect as if such Successor had been named as the Company herein and
the predecessor Company, in the case of a sale, conveyance, transfer or other disposition, shall be released from all obligations under this Indenture and the Securities. 

19

 

 
 

ARTICLE VI
  DEFAULTS AND REMEDIES    
    

 
 
        SECTION 6.01    Events of Default.    

        Unless
either inapplicable to a particular series or specifically deleted or modified in or pursuant to the supplemental indenture or Board Resolution establishing such series of
Securities or in the form of Security for such series, an "Event of Default," wherever used herein with respect to Securities of any series, occurs if: 

        (1)   the
Company defaults in the payment of interest on or any Additional Amounts with respect to any Security of that series when the same becomes due and payable and such
default continues for a period of 30 days; 

        (2)   the
Company defaults in the payment of (A) the principal of any Security of that series at its Maturity or (B) premium (if any) on any Security of that series when the
same becomes due and payable; 

        (3)   the
Company defaults in the deposit of any sinking fund payment, when and as due by the terms of a Security of that series, and such default continues for a period of 30
days; 

        (4)   the
Company fails to comply with any of its other covenants or agreements in, or provisions of, the Securities of such series or this Indenture (other than an agreement,
covenant or provision that has expressly been included in this Indenture solely for the benefit of one or more series of Securities other than that series) which shall not have been remedied within
the specified period after written notice, as specified in the last paragraph of this Section 6.01; 

        (5)   the
Company pursuant to or within the meaning of any Bankruptcy Law: 

        (A)  commences
a voluntary case, 

        (B)  consents
to the entry of an order for relief against it in an involuntary case, 

        (C)  consents
to the appointment of a Bankruptcy Custodian of it or for all or substantially all of its property, or 

        (D)  makes
a general assignment for the benefit of its creditors; 

        (6)   a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that remains unstayed and in effect for 90 days and that: 

        (A)  is
for relief against the Company as debtor in an involuntary case, 

        (B)  appoints
a Bankruptcy Custodian of the Company or a Bankruptcy Custodian for all or substantially all of the property of the Company, or 

        (C)  orders
the liquidation of the Company; or 

        (7)   any
other Event of Default provided with respect to Securities of that series occurs. 

        The
term "Bankruptcy Custodian" means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 

        The
Trustee shall not be deemed to know or have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a Default or Event of Default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this
Indenture. 

        When
a Default is cured, it ceases. 

20

 

        Notwithstanding
the foregoing provisions of this Section 6.01, if the principal of, premium (if any) or interest on or Additional Amounts with respect to any Security is payable in a
currency or currencies (including a composite currency) other than Dollars and such currency or currencies are not available to the Company for making payment thereof due to the imposition of exchange
controls or other circumstances beyond the control of the Company (a "Conversion Event"), the Company will be entitled to satisfy its obligations to Holders of the Securities by making such payment in
Dollars in an amount equal to the Dollar equivalent of the amount payable in such other currency, as determined by the Company by reference to the Exchange Rate on the date of such payment, or, if
such rate is not then available, on the basis of the most recently available Exchange Rate. Notwithstanding the foregoing provisions of this Section 6.01, any payment made under such circumstances in
Dollars where the required payment is in a currency other than Dollars will not constitute an Event of Default under this Indenture. 

        Promptly
after the occurrence of a Conversion Event, the Company shall give written notice thereof to the Trustee; and the Trustee, promptly after receipt of such notice, shall give
notice thereof in the manner provided in Section 10.02 to the Holders. Promptly after the making of any payment in Dollars as a result of a Conversion Event, the Company shall give notice in the
manner provided in Section 10.02 to the Holders, setting forth the applicable Exchange Rate and describing the calculation of such payments. 

        A
Default under clause (4) or (7) of this Section 6.01 is not an Event of Default until the Trustee notifies the Company, or the Holders of at least 25% in principal amount of the then
outstanding Securities of the series affected by such Default (or, in the case of a Default under clause (4) of this Section 6.01, if outstanding Securities of other series are affected by such
Default, then at least 25% in principal amount of the then outstanding Securities so affected) notify the Company and the Trustee, of the Default, and the Company fails to cure the Default within 90
days after receipt of the notice. The notice must specify the Default, demand that it be remedied and state that the notice is a "Notice of Default." 

 
 

          SECTION 6.02    Acceleration.    

        If
an Event of Default with respect to any Securities of any series at the time outstanding (other than an Event of Default specified in clause (5) or (6) of Section 6.01) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal amount of the then outstanding Securities of the series affected by such Event of Default (or, in the case
of an Event of Default described in clause (4) of Section 6.01, if outstanding Securities of other series are affected by such Event of Default, then at least 25% in principal amount of the then
outstanding Securities so affected) by notice to the Company and the Trustee, may declare the principal of (or, if any such Securities are Original Issue Discount Securities, such portion of the
principal amount as may be specified in the terms of that series) and all accrued and unpaid interest on all then outstanding Securities of such series or of all series, as the case may be, to be due
and payable. Upon any such declaration, the amounts due and payable on the Securities shall be due and payable immediately. If an Event of Default specified in clause (5) or (6) of Section 6.01 hereof
occurs, such amounts shall ipso facto become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee
or any Holder. The Holders of a majority in principal amount of the then outstanding Securities of the series affected by such Event of Default or all series, as the case may be, by written notice to
the Trustee may rescind an acceleration and its consequences (other than nonpayment of principal of or premium or interest on or any Additional Amounts with respect to the Securities) if the
rescission would not conflict with any judgment or decree and if all existing Events of Default with respect to Securities of that series (or of all series, as the case may be) have been cured or
waived, except nonpayment of principal, premium, interest or any Additional Amounts that has become due solely because of the acceleration. 

21

 

 
 

          SECTION 6.03    Other Remedies.    

        If
an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of, or premium, if any, or interest on the Securities or
to enforce the performance of any provision of the Securities or this Indenture. 

        The
Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law. 

 
 

           SECTION 6.04    Waiver of Defaults.    

        Subject
to Sections 6.07 and 9.02, the Holders of a majority in principal amount of the then outstanding Securities of any series or of all series (acting as one class) by notice to the
Trustee may waive an existing or past Default or Event of Default with respect to such series or all series, as the case may be, and its consequences (including waivers obtained in connection with a
tender offer or exchange offer for Securities of such series or all series or a solicitation of consents in respect of Securities of such series or all series,  provided that in each case such offer or
solicitation is made to all Holders of then outstanding Securities of such series or all series (but the terms
of such offer or solicitation may vary from series to series)), except (1) a continuing Default or Event of Default in the payment of the principal of, or premium, if any, or interest on or any
Additional Amounts with respect to any Security or (2) a continued Default in respect of a provision that under Section 9.02 cannot be amended or supplemented without the consent of each Holder
affected. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver
shall extend to any subsequent or other Default or impair any right consequent thereon. 

 
 

           SECTION 6.05    Control by Majority.    

        With
respect to Securities of any series, the Holders of a majority in principal amount of the then outstanding Securities of such series may direct in writing the time, method and place
of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it relating to or arising under an Event of Default described in clause (1), (2), (3)
or (7) of Section 6.01, and with respect to all Securities, the Holders of a majority in principal amount of all the then outstanding Securities affected may direct in writing the time, method and
place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it not relating to or arising under such an Event of Default. However, the
Trustee may refuse to follow any direction that conflicts with applicable law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of other Holders, or that may
involve the Trustee in personal liability; provided, however, that the Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction. Prior to taking any action hereunder, the Trustee shall be entitled to indemnification satisfactory to it in its sole discretion from Holders directing the Trustee
against all losses and expenses caused by taking or not taking such action. 

 
 

           SECTION 6.06    Limitations on Suits.    

        Subject
to Section 6.07 hereof, a Holder of a Security of any series may pursue a remedy with respect to this Indenture or the Securities of such series only if: 

        (1)   the
Holder gives to the Trustee written notice of a continuing Event of Default with respect to such series; 

        (2)   the
Holders of at least 25% in principal amount of the then outstanding Securities of such series make a written request to the Trustee to pursue the remedy; 

22

 

        (3)   such
Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense; 

        (4)   the
Trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity; and 

        (5)   during
such 60-day period the Holders of a majority in principal amount of the Securities of that series do not give the Trustee a direction inconsistent with the
request. 

        A
Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another Holder. 

 
 

           SECTION 6.07    Rights of Holders to Receive Payment.    

        Notwithstanding
any other provision of this Indenture, the right of any Holder of a Security to receive payment of principal of and premium, if any, and interest on and any Additional
Amounts with respect to the Security, on or after the respective due dates expressed in the Security, or to bring suit for the enforcement of any such payment on or after such respective dates, is
absolute and unconditional and shall not be impaired or affected without the consent of the Holder. 

 
 

           SECTION 6.08    Collection Suit by Trustee.    

        If
an Event of Default specified in clause (1) or (2) of Section 6.01 hereof occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Company for the amount of principal, premium (if any), interest and any Additional Amounts remaining unpaid on the Securities of the series affected by the Event of Default,
and interest on overdue principal and premium, if any, and, to the extent lawful, interest on overdue interest, and such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

 
 

           SECTION 6.09    Trustee May File Proofs of Claim.    

        The
Trustee is authorized to file such proofs of claim and other papers or documents and to take such actions, including participating as a member, voting or otherwise, of any committee
of creditors, as may be necessary or advisable to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Holders allowed in any judicial proceedings relative to the Company or its creditors or properties and shall be entitled and empowered to collect, receive and distribute any money
or other property payable or deliverable on any such claims and any Bankruptcy Custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and
in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07. To the extent that the payment of any such compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 out of the estate in any such proceeding, shall be denied for any reason, payment of the same
shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties which the Holders of the Securities may be entitled to receive in
such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding. 

23

 

 
 

           SECTION 6.10    Priorities.    

        If
the Trustee collects any money pursuant to this Article VI, it shall pay out the money in the following order: 

        First:
to the Trustee for amounts due under Section 7.07; 

        Second:
to Holders for amounts due and unpaid on the Securities in respect of which or for the benefit of which such money has been collected, for principal, premium (if any), interest
and any Additional Amounts ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal, premium (if any), interest and any Additional
Amounts, respectively; and 

        Third:
to the Company. 

        The
Trustee, upon prior written notice to the Company, may fix record dates and payment dates for any payment to Holders pursuant to this Article VI. 

        To
the fullest extent allowed under applicable law, if for the purpose of obtaining a judgment against the Company in any court it is necessary to convert the sum due in respect of the
principal of, premium (if any) or interest on or Additional Amounts with respect to the Securities of any series (the "Required Currency") into a currency in which a judgment will be rendered (the
"Judgment Currency"), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with
the Judgment Currency on the Business Day in The City of New York next preceding that on which final judgment is given. Neither the Company nor the Trustee shall be liable for any shortfall nor shall
it benefit from any windfall in payments to Holders of Securities under this Section 6.10 caused by a change in exchange rates between the time the amount of a judgment against it is calculated as
above and the time the Trustee converts the Judgment Currency into the Required Currency to make payments under this Section 6.10 to Holders of Securities, but payment of such judgment shall discharge
all amounts owed by the Company on the claim or claims underlying such judgment. 

 
 

          SECTION 6.11    Undertaking for Costs.    

        In
any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as a trustee, a court in its
discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit
by the Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by a Holder or Holders of more than 10% in principal amount of the then outstanding Securities of any series. 

 
 

ARTICLE VII
  TRUSTEE    
    

 
 
        SECTION 7.01    Duties of Trustee.    

        (a)   If
an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree
of care and skill in such exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs. 

24

 

        (b)   Except
during the continuance of an Event of Default with respect to the Securities of any series: 

        (1)   the
Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into
this Indenture against the Trustee; and 

        (2)   in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee shall examine such certificates and opinions to determine whether, on their
face, they appear to conform to the requirements of this Indenture. 

        (c)   The
Trustee may not be relieved from liabilities for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 

        (1)   this
paragraph does not limit the effect of Section 7.01(b); 

        (2)   the
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining
the pertinent facts; and 

        (3)   the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section
6.05. 

        (d)   Whether
or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to the provisions of this Section 7.01. 

        (e)   No
provision of this Indenture shall require the Trustee to expend or risk its own funds or incur any liability. The Trustee may refuse to perform any duty or exercise
any right or power unless it receives indemnity satisfactory to it against any loss, liability or expense. 

        (f)    The
Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee
need not be segregated from other funds except to the extent required by law. All money received by the Trustee shall, until applied as herein provided, be held in trust for the payment of the
principal of, premium (if any) and interest on and Additional Amounts with respect to the Securities. 

 
 

          SECTION 7.02    Rights of Trustee.    

        (a)   The
Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by the proper Person. The Trustee need not
investigate any fact or matter stated in the document. 

        (b)   Before
the Trustee acts or refrains from acting, it may require instruction, an Officers' Certificate or an Opinion of Counsel or both to be provided. The Trustee shall
not be liable for any action it takes or omits to take in good faith in reliance on such instruction, Officers' Certificate or Opinion of Counsel. The Trustee may consult at the Company's expense with
counsel of its selection and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by
it hereunder in good faith and in reliance thereon. 

        (c)   The
Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 

        (d)   The
Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers conferred upon
it by this Indenture. 

25

 

        (e)   Unless
otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of the
Company. 

 
 

          SECTION 7.03    May Hold Securities.    

        The
Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or any of its Affiliates with the same rights it
would have if it were not Trustee. Any Agent may do the same with like rights and duties. However, the Trustee is subject to Sections 7.10 and 7.11. 

 
 

          SECTION 7.04    Trustee's Disclaimer.    

        The
Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company's use of the proceeds from the
Securities or any money paid to the Company or upon the Company's direction under any provision hereof, it shall not be responsible for the use or application of any money received by any Paying Agent
other than the Trustee and it shall not be responsible for any statement or recital herein or any statement in the Securities other than its certificate of authentication. 

 
 

           SECTION 7.05    Notice of Defaults.    

        If
a Default or Event of Default with respect to the Securities of any series occurs and is continuing and it is known to the Trustee, the Trustee shall mail to Holders of Securities of
such series a notice of the Default or Event of Default within 90 days after it occurs. Except in the case of a Default or Event of Default in payment of principal of, premium (if any) and interest on
and Additional Amounts or any sinking fund installment with respect to the Securities of such series, the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in
good faith determines that withholding the notice is in the interests of Holders of Securities of such series. 

 
 

           SECTION 7.06    Reports by Trustee to Holders.    

        Within
60 days after each            of each year after the execution of this Indenture, the Trustee shall mail to Holders of a series and the Company a brief report dated as of
such reporting date that complies with TIA § 313(a); provided, however, that if no event described in TIA § 313(a) has occurred
within the twelve months preceding the reporting date with respect to a series, no report need be transmitted to Holders of such series. The Trustee also shall comply with TIA § 313(b).
The Trustee shall also transmit by mail all reports if and as required by TIA §§ 313(c) and 313(d). 

        A
copy of each report at the time of its mailing to Holders of a series of Securities shall be filed by the Company with the SEC and each securities exchange, if any, on which the
Securities of such series are listed. The Company shall notify the Trustee if and when any series of Securities is listed on any securities exchange. 

 
 

           SECTION 7.07    Compensation and Indemnity.    

        The
Company agrees to pay to the Trustee for its acceptance of this Indenture and services hereunder such compensation as the Company and the Trustee shall from time to time agree in
writing. The Trustee's compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company agrees to reimburse the Trustee upon request for all reasonable
disbursements, advances and expenses incurred by it. Such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee's agents and counsel. 

        The
Company hereby indemnifies the Trustee and any predecessor Trustee against any and all loss, liability, damage, claim or expense, including taxes (other than taxes based upon,
measured by or determined by the income of the Trustee), incurred by it arising out of or in connection with the acceptance or administration of its duties under this Indenture, except as set forth in
the next following paragraph. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. The Company shall defend the claim and the Trustee shall cooperate in the
defense. The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent. 

26

  

        The Company shall not be obligated to reimburse any expense or indemnify against any loss or liability incurred by the Trustee through the Trustee's negligence or bad faith. 

        To
secure the payment obligations of the Company in this Section 7.07, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee,
except that held in trust to pay principal of, premium (if any) and interest on and any Additional Amounts with respect to Securities of any series. Such lien and the Company's obligations under this
Section 7.07 shall survive the satisfaction and discharge of this Indenture. 

        When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(5) or (6) occurs, the expenses and the compensation for the services are intended
to constitute expenses of administration under any Bankruptcy Law. 

 
 

           SECTION 7.08    Replacement of Trustee.    

        A
resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee's acceptance of appointment as provided in this
Section 7.08. 

        The
Trustee may resign and be discharged at any time with respect to the Securities of one or more series by so notifying the Company. The Holders of a majority in principal amount of
the then outstanding Securities of any series may remove the Trustee with respect to the Securities of such series by so notifying the Trustee and the Company. The Company may remove the Trustee if: 

         (1)  the
Trustee fails to comply with Section 7.10; 

         (2)  the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law; 

         (3)  a
Bankruptcy Custodian or public officer takes charge of the Trustee or its property; or 

         (4)  the
Trustee otherwise becomes incapable of acting. 

        If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, with respect to the Securities of one or more series, the Company shall promptly
appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of
one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series). Within one year after the successor Trustee with
respect to the Securities of any series takes office, the Holders of a majority in principal amount of the Securities of such series then outstanding may appoint a successor Trustee to replace the
successor Trustee appointed by the Company. 

        If
a successor Trustee with respect to the Securities of any series does not take office within 30 days after the retiring or removed Trustee resigns or is removed, the retiring or
removed Trustee, the Company or the Holders of at least 10% in principal amount of the then outstanding Securities of such series may petition any court of competent jurisdiction for the appointment
of a successor Trustee with respect to the Securities of such series. 

        If
the Trustee with respect to the Securities of a series fails to comply with Section 7.10, any Holder of Securities of such series may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee with respect to the Securities of such series. 

        In
case of the appointment of a successor Trustee with respect to all Securities, each such successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the retiring
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders. The retiring Trustee 

27

 

shall
promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07. 

        In
case of the appointment of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more (but not all) series shall execute and deliver an indenture supplemental hereto in which each successor Trustee shall accept such appointment and that (1)
shall confer to each successor Trustee all the rights, powers and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring
Trustee is not retiring with respect to all Securities, shall confirm that all the rights, powers and duties of the retiring Trustee with respect to the Securities of that or those series as to which
the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee. Nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust, and each
such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee. Upon the execution and delivery of such
supplemental indenture, the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee shall have all the rights, powers and
duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates. On request of the Company or any successor Trustee,
such retiring Trustee shall transfer to such successor Trustee all property held by such retiring Trustee as Trustee with respect to the Securities of that or those series to which the appointment of
such successor Trustee relates. 

        Notwithstanding
replacement of the Trustee or Trustees pursuant to this Section 7.08, the obligations of the Company under Section 7.07 shall continue for the benefit of the retiring
Trustee or Trustees. 

 
 

           SECTION 7.09    Successor Trustee by Merger, etc.    

        Subject
to Section 7.10, if the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee; provided, however, that in the case of a transfer of all or substantially
all of its corporate trust business to another corporation, the transferee corporation expressly assumes all of the Trustee's liabilities hereunder. 

        In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating
Trustee may adopt such authentication and deliver the Securities so authenticated; and in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it
is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall have. 

 
 

           SECTION 7.10    Eligibility; Disqualification.    

        There
shall at all times be a Trustee hereunder which shall be a corporation or banking or trust company or association organized and doing business under the laws of the United States,
any State thereof or the District of Columbia and authorized under such laws to exercise corporate trust power, shall be subject to supervision or examination by Federal or State (or the District of
Columbia) authority and shall have, or be a subsidiary of a bank or bank holding company having, a combined capital and surplus of at least $50 million as set forth in its most recent published annual
report of condition. 

28

 

        The
Indenture shall always have a Trustee who satisfies the requirements of TIA §§ 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee is subject to and shall comply
with the provisions of TIA ! 310(b) during the period of time required by this Indenture. Nothing in this Indenture shall prevent the Trustee from filing with the SEC the application referred to in
the penultimate paragraph of TIA § 310(b). 

 
 

           SECTION 7.11    Preferential Collection of Claims Against the Company.    

        The
Trustee is subject to and shall comply with the provisions of TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has
resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein. 

 
 

ARTICLE VIII
  DISCHARGE OF INDENTURE    
    

 
 
        SECTION 8.01    Termination of the Company's Obligations.    

        (a)   This
Indenture shall cease to be of further effect with respect to the Securities of a series (except that the Company's obligations under Section 7.07, the Trustee's
and Paying Agent's obligations under Section 8.03 and the rights, powers, protections and privileges accorded the Trustee under Article VII shall survive), and the Trustee, on demand of the Company,
shall execute proper instruments acknowledging the satisfaction and discharge of this Indenture with respect to the Securities of such series, when: 

         (1)  either: 

        (A)  all
outstanding Securities of such series theretofore authenticated and issued (other than destroyed, lost or stolen Securities that have been replaced or paid) have
been delivered to the Trustee for cancellation; or 

        (B)  all
outstanding Securities of such series not theretofore delivered to the Trustee for cancellation: 

          (i)  have
become due and payable, or 

         (ii)  will
become due and payable at their Stated Maturity within one year, or 

        (iii)  are
to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and
at the expense, of the Company, 

and,
in the case of clause (i), (ii) or (iii) above, the Company has irrevocably deposited or caused to be deposited with the Trustee as funds (immediately available to the Holders in the case of
clause (i)) in trust for such purpose (x) cash in an amount, or (y) Government Obligations, maturing as to principal and interest at such times and in such amounts as will ensure the availability of
cash in an amount or (z) a combination thereof, which will be sufficient, in the opinion (in the case of clauses (y) and (z)) of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay and discharge the entire indebtedness on the Securities of such series for principal and interest to the date of such
deposit (in the case of Securities which have become due and payable) or for principal, premium, if any, and interest to the Stated Maturity or Redemption Date, as the case may be; or 

        (C)  the
Company has properly fulfilled such other means of satisfaction and discharge as is specified, as contemplated by Section 2.01, to be applicable to the Securities of
such series; 

29

 

         (2)  the
Company has paid or caused to be paid all other sums payable by it hereunder with respect to the Securities of such series; and 

         (3)  the
Company has delivered to the Trustee an Officers' Certificate stating that all conditions precedent to satisfaction and discharge of this Indenture with respect to
the Securities of such series have been complied with, together with an Opinion of Counsel to the same effect. 

        (b)   Unless
this Section 8.01(b) is specified as not being applicable to Securities of a series as contemplated by Section 2.01, the Company may, at its option, terminate
certain of its obligations under this Indenture ("covenant defeasance") with respect to the Securities of a series if: 

         (1)  the
Company has irrevocably deposited or caused to be irrevocably deposited with the Trustee as trust funds in trust for the purpose of making the following payments,
specifically pledged as security for and dedicated solely to the benefit of the Holders of Securities of such series, (i) money in the currency in which payment of the Securities of such series is to
be made in an amount, or (ii) Government Obligations with respect to such series, maturing as to principal and interest at such times and in such amounts as will ensure the availability of money in
the currency in which payment of the Securities of such series is to be made in an amount or (iii) a combination thereof, that is sufficient, in the opinion (in the case of clauses (ii) and (iii)) of
a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay the principal of and premium (if any) and interest on all
Securities of such series on each date that such principal, premium (if any) or interest is due and payable and (at the Stated Maturity thereof or upon redemption as provided in Section 8.01(e)) to
pay all other sums payable by it hereunder; provided that the Trustee shall have been irrevocably instructed to apply such money and/or the proceeds of
such Government Obligations to the payment of said principal, premium (if any) and interest with respect to the Securities of such series as the same shall become due; 

         (2)  the
Company has delivered to the Trustee an Officers' Certificate stating that all conditions precedent to satisfaction and discharge of this Indenture with respect to
the Securities of such series have been complied with, and an Opinion of Counsel to the same effect; 

         (3)  no
Default or Event of Default with respect to the Securities of such series shall have occurred and be continuing on the date of such deposit; 

         (4)  the
Company shall have delivered to the Trustee an Opinion of Counsel from a nationally recognized counsel acceptable to the Trustee or a tax ruling to the effect that
the Holders will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of the Company's exercise of its option under this Section 8.01(b) and will be subject to U.S.
Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such option had not been exercised; 

         (5)  the
Company has complied with any additional conditions specified pursuant to Section 2.01 to be applicable to the discharge of Securities of such series pursuant to
this Section 8.01; and 

         (6)  such
deposit and discharge shall not cause the Trustee to have a conflicting interest as defined in TIA § 310(b). 

        In
such event, this Indenture shall cease to be of further effect (except as set forth in this paragraph), and the Trustee, on demand of the Company, shall execute proper instruments
acknowledging satisfaction and discharge under this Indenture. However, the Company's obligations in Sections 2.05, 2.06, 2.07, 2.08, 2.09, 4.01, 4.02, 7.07, 7.08 and 8.04, the Trustee's and Paying
Agent's obligations in Section 8.03 and the rights, powers, protections and privileges accorded the Trustee under Article VII shall survive until all Securities of such series are no longer
outstanding. Thereafter, only 

30

 

the
Company's obligations in Section 7.07 and the Trustee's and Paying Agent's obligations in Section 8.03 shall survive with respect to Securities of such series. 

        After
such irrevocable deposit made pursuant to this Section 8.01(b) and satisfaction of the other conditions set forth herein, the Trustee upon request shall acknowledge in writing the
discharge of the Company's obligations under this Indenture with respect to the Securities of such series except for those surviving obligations specified above. 

        In
order to have money available on a payment date to pay principal of or premium (if any) or interest on the Securities, the Government Obligations shall be payable as to principal or
interest on or before such payment date in such amounts as will provide the necessary money. Government Obligations shall not be callable at the issuer's option. 

        (c)   If
the Company has previously complied or is concurrently complying with Section 8.01(b) (other than any additional conditions specified pursuant to Section 2.01 that
are expressly applicable only to covenant defeasance) with respect to Securities of a series, then, unless this Section 8.01(c) is specified as not being applicable to Securities of such series as
contemplated by Section 2.01, the Company may elect that its obligations to make payments with respect to Securities of such series be discharged ("legal defeasance"), if: 

         (1)  no
Default or Event of Default under clauses (5) and (6) of Section 6.01 hereof shall have occurred at any time during the period ending on the 91st day after the date
of deposit contemplated by Section 8.01(b) (it being understood that this condition shall not be deemed satisfied until the expiration of such period); 

         (2)  unless
otherwise specified with respect to Securities of such series as contemplated by Section 2.01, the Company has delivered to the Trustee an Opinion of Counsel from
a nationally recognized counsel acceptable to the Trustee to the effect referred to in Section 8.01(b)(4) with respect to such legal defeasance, which opinion is based on (i) a private ruling of the
Internal Revenue Service addressed to the Company, (ii) a published ruling of the Internal Revenue Service pertaining to a comparable form of transaction or (iii) a change in the applicable federal
income tax law (including regulations) after the date of this Indenture; 

         (3)  the
Company has complied with any other conditions specified pursuant to Section 2.01 to be applicable to the legal defeasance of Securities of such series pursuant to
this Section 8.01(c); and 

         (4)  the
Company has delivered to the Trustee a Company Request requesting such legal defeasance of the Securities of such series and an Officers' Certificate stating that
all conditions precedent with respect to such legal defeasance of the Securities of such series have been complied with, together with an Opinion of Counsel to the same effect. 

        In
such event, the Company will be discharged from its obligations under this Indenture and the Securities of such series to pay principal of, premium (if any) and interest on and any
Additional Amounts with respect to Securities of such series, the Company's obligations under Sections 4.01 and 4.02 shall terminate with respect to such Securities, and the entire indebtedness of the
Company evidenced by such Securities shall be deemed paid and discharged. 

        (d)   If
and to the extent additional or alternative means of satisfaction, discharge or defeasance of Securities of a series are specified to be applicable to such series as
contemplated by Section 2.01, the Company may terminate any or all of its obligations under this Indenture with respect to Securities of a series and any or all of its obligations under the Securities
of such series if it fulfills such other means of satisfaction and discharge as may be so specified, as contemplated by Section 2.01, to be applicable to the Securities of such series. 

31

 

        (e)   If
Securities of any series subject to subsections (a), (b), (c) or (d) of this Section 8.01 are to be redeemed prior to their Stated Maturity, whether pursuant to any
optional redemption provisions or in accordance with any mandatory or optional sinking fund provisions, the terms of the applicable trust arrangement shall provide for such redemption, and the Company
shall make such arrangements as are reasonably satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company. 

 
 

           SECTION 8.02    Application of Trust Money.    

        The
Trustee or a trustee satisfactory to the Trustee and the Company shall hold in trust money or Government Obligations deposited with it pursuant to Section 8.01 hereof. It shall apply
the deposited money and the money from Government Obligations through the Paying Agent and in accordance with this Indenture to the payment of principal of, premium (if any) and interest on and any
Additional Amounts with respect to the Securities of the series with respect to which the deposit was made. 

 
 

           SECTION 8.03    Repayment to Company.    

        The
Trustee and the Paying Agent shall promptly pay to the Company any excess money or Government Obligations (or proceeds therefrom) held by them at any time upon the written request of
the Company. 

        Subject
to the requirements of any applicable abandoned property laws, the Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the
payment of principal, premium (if any), interest or any Additional Amounts that remain unclaimed for two years after the date upon which such payment shall have become due. After payment to the
Company, Holders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another Person, and all liability of the Trustee
and the Paying Agent with respect to such money shall cease. 

 
 

          SECTION 8.04    Reinstatement.    

        If
the Trustee or the Paying Agent is unable to apply any money or Government Obligations deposited with respect to Securities of any series in accordance with Section 8.01 by reason of
any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the obligations of the Company under
this Indenture with respect to the Securities of such series and under the Securities of such series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 until
such time as the Trustee or the Paying Agent is permitted to apply all such money or Government Obligations in accordance with Section 8.01; provided,
however, that if the Company has made any payment of principal of, premium (if any) or interest on or any Additional Amounts with respect to any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or Government Obligations held by the Trustee
or the Paying Agent. 

 
 

ARTICLE IX
  SUPPLEMENTAL INDENTURES AND AMENDMENTS    
    

 
 
        SECTION 9.01    Without Consent of Holders.    

        The
Company and the Trustee may amend or supplement this Indenture or the Securities or waive any provision hereof or thereof without the consent of any Holder: 

         (1)  to
cure any ambiguity, omission, defect or inconsistency; 

         (2)  to
comply with Section 5.01; 

32

 

         (3)  to
provide for uncertificated Securities in addition to or in place of certificated Securities, or to provide for the issuance of bearer Securities (with or without
coupons); 

         (4)  to
provide any security for, or to add any guarantees of or additional obligors on, any series of Securities; 

         (5)  to
comply with any requirement in order to effect or maintain the qualification of this Indenture under the TIA; 

         (6)  to
add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit of less than
all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series), or to surrender any right or power herein conferred upon the Company; 

         (7)  to
add any additional Events of Default with respect to all or any series of the Securities (and, if any Event of Default is applicable to less than all series of
Securities, specifying the series to which such Event of Default is applicable); 

         (8)  to
change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become
effective only when there is no outstanding Security of any series created prior to the execution of such amendment or supplemental indenture that is adversely affected in any material respect by such
change in or elimination of such provision; 

         (9)  to
establish the form or terms of Securities of any series as permitted by Section 2.01; 

       (10)  to
supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of
Securities pursuant to Section 8.01; provided, however, that any such action shall not adversely affect the interest of the Holders of Securities of
such series or any other series of Securities in any material respect; or 

       (11)  to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change
any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section
7.08. 

        Upon
the request of the Company, accompanied by a Board Resolution, and upon receipt by the Trustee of the documents described in Section 9.06, the Trustee shall, subject to Section
9.06, join with the Company in the execution of any supplemental indenture authorized or permitted by the terms of this Indenture and make any further appropriate agreements and stipulations that may
be therein contained. 

 
 

           SECTION 9.02    With Consent of Holders.    

        Except
as provided below in this Section 9.02, the Company and the Trustee may amend or supplement this Indenture with the written consent (including consents obtained in connection with
a tender offer or exchange offer for Securities of any one or more series or all series or a solicitation of consents in respect of Securities of any one or more series or all series,  provided that in
each case such offer or solicitation is made to all Holders of then outstanding Securities of each such series (but the terms of such
offer or solicitation may vary from series to series)) of the Holders of at least a majority in principal amount of the then outstanding Securities of all series affected by such amendment or
supplement (acting as one class). 

        Upon
the request of the Company, accompanied by a Board Resolution, and upon the filing with the Trustee of evidence of the consent of the Holders as aforesaid, and upon receipt by the
Trustee of the documents described in Section 9.06, the Trustee shall, subject to Section 9.06, join with the Company in the execution of such amendment or supplemental indenture. 

33

 

        It
shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be
sufficient if such consent approves the substance thereof. 

        The
Holders of a majority in principal amount of the then outstanding Securities of one or more series or of all series may waive compliance in a particular instance by the Company with
any provision of this Indenture with respect to Securities of such series (including waivers obtained in connection with a tender offer or exchange offer for Securities of such series or a
solicitation of consents in respect of Securities of such series, provided that in each case such offer or solicitation is made to all Holders of then
outstanding Securities of such series (but the terms of such offer or solicitation may vary from series to series)). 

        However,
without the consent of each Holder affected, an amendment, supplement or waiver under this Section 9.02 may not: 

         (1)  reduce
the amount of Securities whose Holders must consent to an amendment, supplement or waiver; 

         (2)  reduce
the rate of or change the time for payment of interest, including default interest, on any Security; 

         (3)  reduce
the principal of, any premium on or any mandatory sinking fund payment with respect to, or change the Stated Maturity of, any Security or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.02; 

         (4)  reduce
the premium, if any, payable upon the redemption of any Security or change the time at which any Security may or shall be redeemed; 

         (5)  change
any obligation of the Company to pay Additional Amounts with respect to any Security; 

         (6)  change
the coin or currency or currencies (including composite currencies) in which any Security or any premium, interest or Additional Amounts with respect thereto are
payable; 

         (7)  impair
the right to institute suit for the enforcement of any payment of principal of, premium (if any) or interest on or any Additional Amounts with respect to any
Security pursuant to Sections 6.07 and 6.08, except as limited by Section 6.06; 

         (8)  make
any change in the percentage of principal amount of Securities necessary to waive compliance with certain provisions of this Indenture pursuant to Section 6.04 or
6.07 or make any change in this sentence of Section 9.02; or 

         (9)  waive
a continuing Default or Event of Default in the payment of principal of, premium (if any) or interest on or Additional Amounts with respect to the Securities. 

        A
supplemental indenture that changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular
series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series. 

        The
right of any Holder to participate in any consent required or sought pursuant to any provision of this Indenture (and the obligation of the Company to obtain any such consent
otherwise required from such Holder) may be subject to the requirement that such Holder shall have been the Holder of record of any Securities with respect to which such consent is required or sought
as of a date identified by the Company in a notice furnished to Holders in accordance with the terms of this Indenture. 

34

 

        After
an amendment, supplement or waiver under this Section 9.02 becomes effective, the Company shall mail to the Holders of each Security affected thereby a notice briefly describing
the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment,
supplement or waiver. 

 
 

           SECTION 9.03    Compliance with Trust Indenture Act.    

        Every
amendment or supplement to this Indenture or the Securities shall comply in form and substance with the TIA as then in effect. 

 
 

          SECTION 9.04    Revocation and Effect of Consents.    

        Until
an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder's Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the
consent as to his or her Security or portion of a Security if the Trustee receives written notice of revocation before a date and time therefor identified by the Company in a notice furnished to such
Holder in accordance with the terms of this Indenture or, if no such date and time shall be identified, the date the amendment, supplement or waiver becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder. 

        The
Company may, but shall not be obligated to, fix a record date (which need not comply with TIA § 316(c)) for the purpose of determining the Holders entitled to consent to
any amendment, supplement or waiver or to take any other action under this Indenture. If a record date is fixed, then notwithstanding the provisions of the immediately preceding paragraph, those
Persons who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to consent to such amendment, supplement or waiver or to revoke any consent
previously given, whether or not such Persons continue to be Holders after such record date. No consent shall be valid or effective for more than 90 days after such record date unless consents from
Holders of the principal amount of Securities required hereunder for such amendment or waiver to be effective shall have also been given and not revoked within such 90-day period. 

        After
an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless it is of the type described in any of clauses (1) through (9) of Section 9.02 hereof. In
such case, the amendment, supplement or waiver shall bind each Holder who has consented to it and every subsequent Holder that evidences the same debt as the consenting Holder's Security. 

 
 

          SECTION 9.05    Notation on or Exchange of Securities.    

        If
an amendment or supplement changes the terms of an outstanding Security, the Company may require the Holder of the Security to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Security at the request of the Company regarding the changed terms and return it to the Holder. Alternatively, if the Company so determines, the Company in exchange for the
Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms. Failure to make the appropriate notation or to issue a new Security shall not affect the
validity of such amendment or supplement. 

        Securities
of any series authenticated and delivered after the execution of any amendment or supplement may, and shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such amendment or supplement. 

35

 

 
 

          SECTION 9.06    Trustee to Sign Amendments, etc.    

        The
Trustee shall sign any amendment or supplement authorized pursuant to this Article if the amendment or supplement does not adversely affect the rights, duties, liabilities or
immunities of the
Trustee. If it does, the Trustee may, but need not, sign it. In signing or refusing to sign such amendment or supplement, the Trustee shall be entitled to receive, and, subject to Section 7.01 hereof,
shall be fully protected in relying upon, an Officers' Certificate and an Opinion of Counsel provided at the expense of the Company as conclusive evidence that such amendment or supplement is
authorized or permitted by this Indenture, that it is not inconsistent herewith, and that it will be valid and binding upon the Company in accordance with its terms. 

 
 

ARTICLE X
  MISCELLANEOUS    
    

 
 
        SECTION 10.01    Trust Indenture Act Controls.    

        If
any provision of this Indenture limits, qualifies or conflicts with the duties imposed by operation of TIA § 318(c), the imposed duties shall control. 

 
 

           SECTION 10.02    Notices.    

        Any
notice or communication by the Company or the Trustee to the other is duly given if in writing and delivered in person or mailed by first-class mail (registered or certified, return
receipt requested), telex, facsimile or overnight air courier guaranteeing next day delivery, to the other's address: 

	 	 	If to the Company:	 	 
	

 	
 	

Edge Petroleum Corporation

1301 Travis, Suite 2000

Houston, Texas 77002

Attn: General Counsel

Telephone: (713) 654-8960

Facsimile: (713) 654-8910	
 	

 
	

 	
 	

If to the Trustee:	
 	

 
	

 	

 	

	

 	

 
	

 	
 	

	
 	

 
	

 	
 	

	
 	

 
	

 	
 	

Attn:	
 	

	
 	

 

	

 	
 	

Telephone:	
 	

	
 	

 
	

 	
 	

Facsimile:	
 	

	
 	

 

        The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 

        All
notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if by facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery. 

36

 

        Any
notice or communication to a Holder shall be mailed by first-class mail, postage prepaid, to the Holder's address shown on the register kept by the Registrar. Failure to mail a
notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. 

        If
a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it, except in the case of notice
to the Trustee, it is duly given only when received. 

        If
the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee and each Agent at the same time. 

        All
notices or communications, including without limitation notices to the Trustee or the Company by Holders, shall be in writing, except as otherwise set forth herein. 

        In
case by reason of the suspension of regular mail service, or by reason of any other cause, it shall be impossible to mail any notice required by this Indenture, then such method of
notification as shall be made with the approval of the Trustee shall constitute a sufficient mailing of such notice. 

 
 

           SECTION 10.03    Communication by Holders with Other Holders.    

        Holders
may communicate pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c). 

 
 

           SECTION 10.04    Certificate and Opinion as to Conditions Precedent.    

        Upon
any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall, if requested by the Trustee, furnish to the Trustee at the
expense of the Company: 

         (1)  an
Officers' Certificate (which shall include the statements set forth in Section 10.05) stating that, in the opinion of the signers, all conditions precedent and
covenants, if any, provided for in this Indenture relating to the proposed action have been complied with; and 

         (2)  an
Opinion of Counsel (which shall include the statements set forth in Section 10.05 hereof) stating that, in the opinion of such counsel, all such conditions precedent
and covenants have been complied with. 

 
 

          SECTION 10.05    Statements Required in Certificate or Opinion.    

        Each
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA §
314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include: 

         (1)  a
statement that the Person making such certificate or opinion has read such covenant or condition; 

         (2)  a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are
based; 

         (3)  a
statement that, in the opinion of such Person, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion
as to whether or not such covenant or condition has been complied with; and 

         (4)  a
statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with. 

37

 

 
 

           SECTION 10.06    Rules by Trustee and Agents.    

        The
Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar or the Paying Agent may make reasonable rules and set reasonable requirements for its
functions. 

 
 

           SECTION 10.07    Legal Holidays.    

        If
a payment date is a Legal Holiday at a Place of Payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the
intervening period. 

 
 

          SECTION 10.08    No Recourse Against Others.    

        A
director, officer, employee, stockholder, partner or other owner of the Company or the Trustee, as such, shall not have any liability for any obligations of the Company under the
Securities or for any obligations of the Company or the Trustee under this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Holder by
accepting a Security waives and releases all such liability. The waiver and release shall be part of the consideration for the issue of Securities. 

 
 

           SECTION 10.09    Governing Law.    

        THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 
 

          SECTION 10.10    No Adverse Interpretation of Other Agreements.    

        This
Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or any Subsidiary. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture. 

 
 

           SECTION 10.11    Successors.    

        All
agreements of the Company in this Indenture and the Securities shall bind its successors. All agreements of the Trustee in this Indenture shall bind its successors. 

 
 

           SECTION 10.12    Severability.    

        In
case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall, to
the fullest extent permitted by applicable law, not in any way be affected or impaired thereby. 

 
 

           SECTION 10.13    Counterpart Originals.    

        The
parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 

 
 

          SECTION 10.14    Table of Contents, Headings, etc.    

        The
table of contents, cross-reference table and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a
part hereof and shall in no way modify or restrict any of the terms or provisions hereof. 

38

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written. 

	 	 	EDGE PETROLEUM CORPORATION
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 	 
	 	 	 	 	Title:	 	 	 
	

 	
 	

 
	

,
	 	 	 	 	as Trustee
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 	 
	 	 	 	 	Title:	 	 	 

39

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