Document:

Exhibit 10.50

Compensation Arrangement with Named Executive
Officers

At its meeting
held on October 3, 2006, the Compensation Committee approved annual
compensation packages for the Company’s executive officers who are expected to
be included in the summary compensation table in the Company’s proxy statement
for the Annual Meeting, and for those officers who were named executive
officers as of the filing of the Company’s last proxy statement (the “named
executive officers”), as follows:

	
   

  	
   

  	
   

  	
   

  	
  Target Bonus 

  	
   

  	
   

  	
   

  	
  Target Performance Share Grants

  	
   

  
	
   

  	
   

  	
  Base Salary

  	
   

  	
  Percentage

  	
   

  	
  Stock Options

  	
   

  	
  1-year

  	
   

  	
  3-year

  	
   

  
	
  Howard R. Levine

  	
   

  	
  $

  	
  800,000

  	
   

  	
  100

  	
  %

  	
  150,000

  	
   

  	
  12,500

  	
   

  	
  37,500

  	
   

  
	
  R. James Kelly

  	
   

  	
  $

  	
  600,000

  	
   

  	
  75

  	
  %

  	
  110,000

  	
   

  	
  9,167

  	
   

  	
  27,500

  	
   

  
	
  Robert George

  	
   

  	
  $

  	
  375,000

  	
   

  	
  50

  	
  %

  	
  21,845

  	
   

  	
  2,229

  	
   

  	
  6,687

  	
   

  
	
  Charles S. Gibson, Jr.

  	
   

  	
  $

  	
  340,000

  	
   

  	
  50

  	
  %

  	
  21,340

  	
   

  	
  2,178

  	
   

  	
  6,532

  	
   

  
	
  Dorlisa K. Flur

  	
   

  	
  $

  	
  325,000

  	
   

  	
  40

  	
  %

  	
  14,528

  	
   

  	
  1,483

  	
   

  	
  4,447

  	
   

  
	
  Janet G. Kelley

  	
   

  	
  $

  	
  300,000

  	
   

  	
  40

  	
  %

  	
  11,746

  	
   

  	
  1,199

  	
   

  	
  3,595

  	
   

  

 

The foregoing does
not constitute a complete summary of the compensation terms of the above named
executive officers and reference is made to the following Company plans with
respect to various aspects of the compensation packages awarded to each named
executive officer:  (i) Family Dollar Stores, Inc. 2006 Incentive Plan, (ii)
Family Dollar Stores, Inc. 2006 Incentive Plan  Guidelines for Long-Term Incentive
Performance Share Rights Awards , (iii) Family Dollar Stores, Inc.
2006 Incentive Plan 2006 Non-Qualified Stock
Option Grant Program  (filed
as Exhibits 10.1, 10.2, and 10.3, respectively, to the Company’s Form 8-K filed
with the SEC on January 25, 2006) and (iv) the Cash Bonus Award Guidelines
attached hereto as Exhibit 10.

Reference is also
made to (i) the employment agreements between the Company and Messrs. Levine and
Kelly, which have been filed previously as Exhibits 10.2 and 10.3,
respectively, to the Company’s report on Form 8-K filed with the SEC on August
24, 2005 (along with amendments to such agreements, filed as Exhibits 10.2 and
10.3 to the Company’s report on Form 8-K filed with the SEC on August 21,
2006), (ii) the Employment Agreement between the Company and Mr. George, filed
as Exhibit 10 to the Company’s report on Form 8-K filed with the SEC on
November 25, 2005, and (iii) the Employment Agreement between the Company and
Mr. Gibson, filed as Exhibit 10.32 to the Company’s Form 10-K filed with the
SEC on November 7, 2005.

 

 1EXHIBIT
10.7

FORM OF AFFIRMATION AND UNDERTAKING AGREEMENT

IN
CONNECTION WITH ADVANCEMENT OF EXPENSES

The undersigned ___________
(“Undersigned”), an [Officer/Director or Previous Officer] of Family Dollar
Stores, Inc. (the “Company”), is a named party to an action captioned “Rebecca
Miller, Derivatively on Behalf of Nominal Defendant Family Dollar Stores, Inc.
v. Howard R. Levine, R. James Kelly, R. David Alexander, Jr., George R.
Mahoney, Jr., John D. Reier, Albert S. Rorie, Philip W. Thompson, Mark R.
Berstein, James G. Martin, and Sharon Allred Decker, Defendants, and Family
Dollar Stores, Inc., Nominal Defendant” filed in Mecklenburg County
Superior Court, notice of which was received by the Company on August 25, 2006
(the “Lawsuit”).  The Undersigned may
incur expenses in the defense of the Lawsuit and matters that may arise in
connection therewith.

The Undersigned has
requested that the Company pay for or reimburse the attorney’s fees,
disbursements, and other costs actually and reasonably incurred by the
Undersigned in connection with the Lawsuit and matters that may arise in
connection therewith.

Upon receipt of and
subject to the terms of this Affirmation and Undertaking, the Company will pay
expenses actually and reasonably incurred by the Undersigned in connection with
the Lawsuit and matters that may arise in connection therewith.

1.             The Undersigned hereby affirms [his] good faith belief
that during [his] service as an [Officer] of the Company, [he]: (A) conducted
[himself] in good faith; (B) has met the standard of conduct set forth in
Section 145 of the Delaware General Corporation Law; and (C) believes that [he]
(i) has not engaged in any conduct in [his] official capacity with the Company
that was not in the best interests of the Company; (ii) has not otherwise
engaged in any conduct that was opposed to the best interests of the Company;
and (iii) has no reasonable cause to believe that [his] current or past conduct
was unlawful.

2.             The Undersigned hereby agrees to repay to the Company
any funds (i) advanced to the Undersigned in connection with the Lawsuit and
matters that may arise in connection therewith or (ii) paid on behalf of the
Undersigned in advance of the final disposition of the Lawsuit and matters that
may arise in connection therewith in the event that it shall ultimately be
determined that [he] is not entitled to be indemnified.

Executed this the _______________
day of _______________, 2006.

	
  

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WitnessExhibit
4.1

EXTRA
SPACE STORAGE LP, as Issuer

EXTRA SPACE STORAGE INC., as Guarantor

WELLS FARGO BANK, N.A., as Trustee

INDENTURE

Dated as
of

March
27, 2007

3.625%
Exchangeable Senior Notes due 2027

 

Table of Contents

	
  

  	
   

  	
  Page

  
	
  ARTICLE 1

  	
   

  	
   

  
	
  DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01. Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
   

  
	
  ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01. Designation Amount and Issue of
  Notes

  	
   

  	
  10

  
	
  Section 2.02. Form of Notes

  	
   

  	
  11

  
	
  Section 2.03. Date and Denomination of Notes;
  Payments of Interest

  	
   

  	
  12

  
	
  Section 2.04. Execution of Notes

  	
   

  	
  13

  
	
  Section 2.05. Exchange and Registration of
  Transfer of Notes; Restrictions on Transfer

  	
   

  	
  14

  
	
  Section 2.06. Mutilated, Destroyed, Lost or
  Stolen Notes

  	
   

  	
  19

  
	
  Section 2.07. Temporary Notes

  	
   

  	
  20

  
	
  Section 2.08. Cancellation of Notes

  	
   

  	
  20

  
	
  Section 2.09. CUSIP Numbers

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
   

  
	
  REDEMPTION AND REPURCHASE OF NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01. Optional Redemption of Notes

  	
   

  	
  21

  
	
  Section 3.02. Notice of Optional Redemption;
  Selection of Notes

  	
   

  	
  21

  
	
  Section 3.03. Payment of Notes Called for
  Redemption by the Issuer

  	
   

  	
  23

  
	
  Section 3.04. Sinking Fund

  	
   

  	
  24

  
	
  Section 3.05. Repurchase at Option of Holders
  Upon a Designated Event

  	
   

  	
  24

  
	
  Section 3.06. Repurchase of Notes at the Option of
  Holders

  	
   

  	
  26

  
	
  Section 3.07. Issuer Repurchase Notice

  	
   

  	
  27

  
	
  Section 3.08. Effect of Repurchase Notice;
  Withdrawal

  	
   

  	
  29

  
	
  Section 3.09. Deposit of Repurchase Price

  	
   

  	
  30

  
	
  Section 3.10. Notes Repurchased in Part

  	
   

  	
  31

  
	
  Section 3.11. Repayment to the Issuer

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
   

  
	
  PARTICULAR COVENANTS OF THE ISSUER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01. Payment of Principal, Premium and
  Interest

  	
   

  	
  31

  
	
  Section 4.02. Maintenance of Office or Agency

  	
   

  	
  31

  
	
  Section 4.03. Appointments to Fill Vacancies in
  Trustee’s Office

  	
   

  	
  32

  

 i
 

 

	
  Section 4.04. Provisions as to Paying Agent

  	
   

  	
  32

  
	
  Section 4.05. Existence

  	
   

  	
  33

  
	
  Section 4.06. Rule 144A Information Requirement

  	
   

  	
  33

  
	
  Section 4.07. Stay, Extension and Usury Laws

  	
   

  	
  33

  
	
  Section 4.08. Compliance Certificate

  	
   

  	
  33

  
	
  Section 4.09. Additional Interest Notice

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
   

  
	
  NOTHOLDERS’ LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01. Noteholders’ Lists

  	
   

  	
  34

  
	
  Section 5.02. Preservation and Disclosure of
  Lists

  	
   

  	
  34

  
	
  Section 5.03. Reports by Trustee

  	
   

  	
  35

  
	
  Section 5.04. Reports by Issuer or Guarantor.

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
   

  
	
  REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01. Events of Default

  	
   

  	
  35

  
	
  Section 6.02. Payments of Notes on Default; Suit
  Therefor

  	
   

  	
  39

  
	
  Section 6.03. Application of Monies Collected by
  Trustee

  	
   

  	
  40

  
	
  Section 6.04. Proceedings by Noteholders

  	
   

  	
  41

  
	
  Section 6.05. Proceedings by Trustee

  	
   

  	
  42

  
	
  Section 6.06. Remedies Cumulative and Continuing

  	
   

  	
  42

  
	
  Section 6.07. Direction of Proceedings and Waiver
  of Defaults by Majority of Noteholders

  	
   

  	
  42

  
	
  Section 6.08. Notice of Defaults

  	
   

  	
  43

  
	
  Section 6.09. Undertaking to Pay Costs

  	
   

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
   

  
	
  THE TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01. Duties and Responsibilities of
  Trustee

  	
   

  	
  43

  
	
  Section 7.02. Reliance on Documents, Opinions, etc

  	
   

  	
  45

  
	
  Section 7.03. No Responsibility for Recitals, etc

  	
   

  	
  46

  
	
  Section 7.04. Trustee, Paying Agents, Exchange
  Agents or Registrar May Own Notes

  	
   

  	
  46

  
	
  Section 7.05. Monies to Be Held in Trust

  	
   

  	
  46

  
	
  Section 7.06. Compensation and Expenses of
  Trustee

  	
   

  	
  47

  
	
  Section 7.07. Officers’ Certificate as Evidence

  	
   

  	
  47

  
	
  Section 7.08. Conflicting Interests of Trustee

  	
   

  	
  47

  
	
  Section 7.09. Eligibility of Trustee

  	
   

  	
  48

  
	
  Section 7.10. Resignation or Removal of Trustee

  	
   

  	
  48

  
	
  Section 7.11. Acceptance by Successor Trustee

  	
   

  	
  49

  
	
  Section 7.12. Succession by Merger

  	
   

  	
  50

  

 ii
 

 

	
  Section 7.13. Preferential Collection of Claims

  	
   

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
   

  
	
  THE NOTEHOLDERS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01. Action by Noteholders

  	
   

  	
  50

  
	
  Section 8.02. Proof of Execution by Noteholders

  	
   

  	
  51

  
	
  Section 8.03. Absolute Owners

  	
   

  	
  51

  
	
  Section 8.04. Issuer-owned Notes Disregarded

  	
   

  	
  51

  
	
  Section 8.05. Revocation of Consents; Future
  Holders Bound

  	
   

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01. Supplemental Indentures Without
  Consent of Noteholders

  	
   

  	
  52

  
	
  Section 9.02. Supplemental Indenture With Consent
  of Noteholders

  	
   

  	
  53

  
	
  Section 9.03. Effect of Supplemental Indenture

  	
   

  	
  54

  
	
  Section 9.04. Notation on Notes

  	
   

  	
  55

  
	
  Section 9.05. Evidence of Compliance of
  Supplemental Indenture to Be Furnished to Trustee

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
   

  
	
  CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01. Issuer May Consolidate on Certain
  Terms

  	
   

  	
  55

  
	
  Section 10.02. Issuer Successor to Be Substituted

  	
   

  	
  56

  
	
  Section 10.03. Guarantor May Consolidate on
  Certain Terms

  	
   

  	
  56

  
	
  Section 10.04. Guarantor Successor to Be
  Substituted

  	
   

  	
  57

  
	
  Section 10.05. Assumption by Guarantor

  	
   

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE OF INDENTURE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.01. Discharge of Indenture

  	
   

  	
  58

  
	
  Section 11.02. Deposited Monies to Be Held in Trust
  by Trustee

  	
   

  	
  59

  
	
  Section 11.03. Paying Agent to Repay Monies Held

  	
   

  	
  59

  
	
  Section 11.04. Return of Unclaimed Monies

  	
   

  	
  59

  
	
  Section 11.05. Reinstatement

  	
   

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
   

  	
   

  
	
  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.01. Indenture and Notes Solely
  Corporate Obligations

  	
   

  	
  60

  

 iii
 

 

	
  ARTICLE 13

  	
   

  	
   

  
	
  EXCHANGE OF NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.01. Right to Exchange

  	
   

  	
  60

  
	
  Section 13.02. Exercise of Exchange Right; No
  Adjustment for Interest or Dividends

  	
   

  	
  64

  
	
  Section 13.03. Cash Payments in Lieu of
  Fractional Shares

  	
   

  	
  66

  
	
  Section 13.04. Exchange Rate

  	
   

  	
  67

  
	
  Section 13.05. Adjustment of Exchange Rate

  	
   

  	
  67

  
	
  Section 13.06. Taxes on Shares Issued

  	
   

  	
  75

  
	
  Section
  13.07. Reservation of Shares, Shares to Be Fully Paid; Compliance with
  Governmental Requirements; Listing of Common Stock

  	
   

  	
  75

  
	
  Section 13.08. Responsibility of Trustee

  	
   

  	
  75

  
	
  Section 13.09. Notice to Holders Prior to Certain
  Actions

  	
   

  	
  76

  
	
  Section 13.10. Settlement upon Exchange

  	
   

  	
  77

  
	
  Section 13.11. Exchange Rate Adjustment After
  Certain Designated Events

  	
   

  	
  78

  
	
  Section 13.12. Ownership Limit and Withholding

  	
   

  	
  80

  
	
  Section 13.13. Calculation in Respect of Notes

  	
   

  	
  80

  
	
  Section 13.14. Surrender to Financial Institution
  in Lieu of Exchange

  	
   

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
   

  	
   

  
	
  MEETING OF HOLDERS OF NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 14.01. Purposes for Which Meetings May Be
  Called

  	
   

  	
  81

  
	
  Section 14.02. Call, Notice and Place of Meetings

  	
   

  	
  81

  
	
  Section 14.03. Persons Entitled to Vote at
  Meetings

  	
   

  	
  81

  
	
  Section 14.04. Quorum; Action

  	
   

  	
  82

  
	
  Section 14.05. Determination of Voting Rights;
  Conduct and Adjournment of Meetings

  	
   

  	
  82

  
	
  Section 14.06. Counting Votes and Recording
  Action of Meetings

  	
   

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
   

  	
   

  
	
  GUARANTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 15.01. Guarantee

  	
   

  	
  83

  
	
  Section 15.02. Execution and Delivery of
  Guarantee

  	
   

  	
  85

  
	
  Section 15.03. Limitation of Guarantor’s
  Liability; Certain Bankruptcy Events

  	
   

  	
  85

  
	
  Section 15.04. Application of Certain Terms and
  Provisions to the Guarantor

  	
   

  	
  86

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
   

  	
   

  
	
  MISCELLANEOUS PROVISIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 16.01. Provisions Binding on Issuer’s and
  Guarantor’s Successors

  	
   

  	
  86

  

 iv
 

 

	
  Section 16.02. Official Acts by Successor Corporation

  	
   

  	
  86

  
	
  Section 16.03. Addresses for Notices, etc

  	
   

  	
  86

  
	
  Section 16.04. Governing Law

  	
   

  	
  88

  
	
  Section 16.05. Evidence of Compliance with
  Conditions Precedent, Certificates to Trustee

  	
   

  	
  88

  
	
  Section 16.06. Legal Holidays

  	
   

  	
  88

  
	
  Section 16.07. Trust Indenture Act

  	
   

  	
  88

  
	
  Section 16.08. No Security Interest Created

  	
   

  	
  88

  
	
  Section 16.09. Benefits of Indenture

  	
   

  	
  89

  
	
  Section 16.10. Table of Contents, Headings, etc

  	
   

  	
  89

  
	
  Section 16.11. Authenticating Agent

  	
   

  	
  89

  
	
  Section 16.12. Execution in Counterparts

  	
   

  	
  90

  
	
  Section 16.13. Severability

  	
   

  	
  90

  
	
   

  	
   

  	
   

  
	
  Exhibit A Form of Note

  	
   

  	
  A-1

  

 

 v
 

CROSS-REFERENCE
TABLE*

	
  Trust
  Indenture Act Section

  	
   

  	
  Indenture Section

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.09

  
	
   

  	
  (a)(2)

  	
   

  	
  7.09

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  7.08

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.13

  
	
   

  	
  (b)

  	
   

  	
  7.13

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  5.01

  
	
   

  	
  (b)

  	
   

  	
  5.02

  
	
   

  	
  (c)

  	
   

  	
  5.02

  
	
  313

  	
  (a)

  	
   

  	
  5.03

  
	
   

  	
  (b)

  	
   

  	
  5.03

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  5.03

  
	
  314

  	
  (a)

  	
   

  	
  4.08, 5.04

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  N.A.

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  7.01

  
	
   

  	
  (b)

  	
   

  	
  6.08

  
	
   

  	
  (c)

  	
   

  	
  6.05, 7.01

  
	
   

  	
  (d)

  	
   

  	
  7.01

  
	
   

  	
  (e)

  	
   

  	
  6.09

  
	
  316

  	
  (a)(1)(A)

  	
   

  	
  6.07

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.07

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  317

  	
  (a)(1)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
  318

  	
  (a)

  	
   

  	
  N.A.

  

N.A. means not
applicable.

*This Cross-Reference Table is not part of the
Indenture.

 vi

INDENTURE

INDENTURE dated as
of March 27, 2007 among Extra Space Storage LP, a Delaware limited partnership
(hereinafter called the “Issuer”), Extra Space Storage Inc., a Maryland corporation (hereinafter
called the “Guarantor”), each
having its principal office at 2795 East Cottonwood Parkway, Suite 400, Salt
Lake City, Utah 84121, and Wells Fargo Bank, N.A., as trustee hereunder
(hereinafter called the “Trustee”).

Each party agrees
as follows for the benefit of the other parties and for the equal and ratable
benefit of the holders of the Issuers 3.625% Exchangeable Senior Notes due 2027
(hereinafter called the Notes) guaranteed by the Guarantor.

ARTICLE 1

DEFINITIONS

Section
1.01. Definitions. The terms defined in
this Section 1.01 (except as herein otherwise expressly provided or unless the
context otherwise requires) for all purposes of this Indenture and of any
indenture supplemental hereto shall have the respective meanings specified in
this Section 1.01. All other terms used in this Indenture that are defined in
the Trust Indenture Act (as defined below) or which are by reference therein
defined in the Securities Act (as defined below) (except as herein otherwise
expressly provided or unless the context otherwise requires) shall have the
respective meanings assigned to such terms in the Trust Indenture Act and in
the Securities Act as in force at the date of the execution of this Indenture.
The words “herein,” “hereof,”  “hereunder” and words of similar
import refer to this Indenture as a whole and not to any particular Article,
Section or other Subdivision. The terms defined in this Article include the
plural as well as the singular.

“Additional
Designated Event Shares” has the meaning specified in Section
13.11(a).

“Additional
Interest” has, with respect to Registration Default Damages,
the meaning specified for such Registration Default Damages in Section 7 of the
Registration Rights Agreement, and with respect to a Reporting Event of
Default, the meaning specified in Section 6.01.

“Additional
Interest Notice” has the meaning specified in Section 4.09.

“Additional
Notes” has the meaning specified in Section 2.01.

“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 the purposes of this definition, “control,” when
used with respect to any specified Person means the power to direct or cause
the direction of 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” have
meanings correlative to the foregoing.

“Agent Members” has
the meaning specified in Section 2.05(b)(v).

The “Applicable Exchange Period”
means the 10 consecutive Trading Day period commencing on the third
Trading Day following the date the Notes are tendered for exchange.

The “Applicable Exchange
Rate” as of any Trading Day, means the Exchange Rate in effect on
such date, after giving effect to any adjustment provided for in Section 13.05
or Section 13.11.

The “Average Price” is
equal to the average of the Volume Weighted Average Prices per share of Common
Stock for each Trading Day in the Applicable Exchange Period.

“Bankruptcy
Law” means Title 11, U.S. Code or any similar federal, state,
or foreign law for the relief of debtors.

“Benefited Party” has
the meaning specified in Section 15.01.

“Board
of Directors” means the board of directors of the Guarantor
or a committee of such board duly authorized to act for it hereunder.

“Business
Day” means any day, other than a Saturday, Sunday or any
other day on which banking institutions in The City of New York, New York, or
other place of payment with respect to the Notes, are authorized or obligated
by law or executive order to close.

“Charter”
means the Articles of Amendment and Restatement of the
Guarantor dated as of August 16, 2004, filed with the State Department of
Assessments and Taxation of Maryland, as amended, supplemented or restated from
time to time.

“Closing
Sale Price” of the Common Stock or other capital stock or
similar equity interests or other publicly traded securities on any Trading Day
means the closing sale price per share (or, if no closing sale price is
reported, the average of the closing bid and ask prices or, if more than one in
either case, the average of the average closing bid and the average closing ask
prices) on such date as reported on the principal United States securities
exchange on which the Common Stock or such other capital stock or similar
equity interests or other securities are traded or, if the Common Stock or such
other capital stock or similar equity interests or other securities are not
listed on a United States national or regional securities exchange, any United
States system of automated dissemination of quotations of securities prices or
an established over-the-counter trading market in the United States. The
Closing Sale Price will be determined without regard to after-hours trading or
extended market making. In the absence of the foregoing, the Issuer will
determine the Closing Sale Price on such basis as the Issuer considers
appropriate.

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“Code” means the
Internal Revenue Code of 1986, as amended.

“Commission” means the Securities and
Exchange Commission, as from time to time constituted, created under the
Exchange Act, or, if at any time after the execution of this Indenture such
Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.

“Common
Stock” means any stock of any class of the Guarantor which
has no preference in respect of dividends or of amounts payable in the event of
any voluntary or involuntary liquidation, dissolution or winding up of the
Guarantor and which is not subject to redemption by the Guarantor. Shares of
Common Stock issuable on exchange of Notes shall include only shares of the
class designated as common stock of the Guarantor at the date of this Indenture
(namely, the common stock, par value $0.01) or shares of any class or classes
resulting from any reclassification or reclassifications thereof and which have
no preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the
Guarantor and which are not subject to redemption by the Guarantor; provided that if at any time there shall
be more than one such resulting class, the shares of each such class then so
issuable on exchange shall be substantially in the proportion which the total
number of shares of such class resulting from all such reclassifications bears
to the total number of shares of all such classes resulting from all such
reclassifications.

“Common
Stock Legend” has the meaning specified in Section 2.05(c).

“Corporate
Trust Office” or other similar term, means the designated
office of the Trustee at which, at any particular time, its corporate trust
business as it relates to this Indenture shall be administered, which office
is, at the date as of which this Indenture is dated, located at Wells Fargo
Bank, N.A., Corporate Trust Services, MAC N9303-120, 608-2nd Avenue South,
Minneapolis, MN 55479, or at any other time at such other address as the
Trustee may designate from time to time by notice to the Issuer.

“CUSIP” means the
Committee on Uniform Securities Identification Procedures.

“Custodian”
means Wells Fargo Bank, N.A., as custodian with respect to
the Notes in global form, or any successor entity thereto.

The “Daily Share Amount” for
each $1,000 principal amount of Notes and each Trading Day in the Applicable
Exchange Period shall be equal to the greater of:

(a)           zero;
and

(b)           a
number of shares of Common Stock determined by the following formula:

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(VWAP on such
Trading Day × ER) — ($1,000 + Net Cash Amount, if any)

10 × VWAP on such Trading
Day

where

“VWAP” on any
Trading Day means the volume weighted average price per share of Common Stock
on the New York Stock Exchange or, if the Common Stock is not listed on the New
York Stock Exchange, on the principal exchange or over-the-counter market on
which the Common Stock is then listed or traded, from 9:30 a.m. to 4:00 p.m.
(New York City time) on that Trading Day as displayed on Bloomberg Page EXR
<Equity> VAP (or any successor thereto), or if such volume weighted
average price is not available, then the “VWAP” will be the market value per
share of Common Stock on such Trading Day as determined by a nationally
recognized independent investment banking firm retained by the Issuer for this
purpose; and

“ER” means the
Applicable Exchange Rate.

“default” means any
event that is, or after notice or passage of time, or both, would be, an Event
of Default.

“Defaulted Interest” has
the meaning specified in Section 2.03.

“Depositary”
means the clearing agency registered under the Exchange Act
that is designated to act as the Depositary for the Global Notes. DTC shall be
the initial Depositary, until a successor shall have been appointed and become
such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall
mean or include such successor.

“Designated
Event” means the occurrence at any time of any of the
following events: (1) consummation of any transaction or event (whether by
means of a share exchange or tender offer applicable to the Common Stock, a
liquidation, consolidation, recapitalization, reclassification, combination or
merger of the Guarantor or a sale, lease or other transfer of all or
substantially all of the consolidated assets of the Guarantor) or a series of
related transactions or events pursuant to which all of the outstanding Common
Stock is exchanged for, converted into or constitutes solely of the right to
receive cash, securities or other property; (2) any person or group (as such
terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act,
whether or not applicable), other than the Guarantor, the Issuer, any
majority-owned Subsidiary of the Guarantor or the Issuer, or any employee
benefit plan of the Guarantor, the Issuer or any such Subsidiary, is or becomes
the beneficial owner, directly or indirectly, of more than fifty percent (5 0%)
of the total voting power in the aggregate of all classes of capital stock of
the Guarantor then outstanding and entitled to vote generally in elections of
directors (for the avoidance of doubt the ownership of Units will not be deemed
to constitute beneficial ownership of capital stock of the Guarantor); (3)
during any period of twelve (12) consecutive months after the date of original
issuance of the Notes (for so long as the Guarantor is the sole owner of the
general partner of the Issuer immediately prior to such 

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transaction or series of
related transactions), persons who at the beginning of such twelve (12)-month
period constituted the Board of Directors, together with any new persons whose
election was approved by a vote of a majority of the persons then still
comprising the Board of Directors who were either members of the Board of
Directors at the beginning of such period or whose election, designation or
nomination for election was previously so approved, cease for any reason to
constitute a majority of the Board of Directors; or (4) the Guarantor (or any
successor thereto permitted pursuant to the terms of this Indenture) ceases to
be the sole owner of the General Partner or ceases to control the Issuer; provided, however, that the pro rata
distribution by the Guarantor to its stockholders of shares of the Guarantors
capital stock or shares of any of the Guarantors other Subsidiaries will not,
in and of itself, constitute a Designated Event for purposes of this
definition.

Notwithstanding the foregoing, if any of the
transactions or events specified in (1) above shall have occurred, a Designated
Event shall not be deemed to have occurred if at least 90% of the consideration
(excluding cash payments for fractional shares and cash payments made pursuant
to dissenters appraisal rights) in such transaction or event consists of shares
of common stock (or depositary receipts or other certificates representing
common equity interests) traded on a national or regional securities exchange
or quoted on any established automated over-the-counter trading market in the
United States (or will be so traded or quoted immediately following such
transaction or event) and as a result of the transaction or event the Notes
become exchangeable for such shares of common stock (or depositary receipts or
other certificates representing common equity interests).

For the purposes of this definition, “person” includes
any syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of
the Exchange Act.

“Designated
Event Repurchase Date” has the meaning specified in Section
3.05(a).

“Determination
Date” has the meaning specified in Section 13.10(d). 

“DTC”
means The Depository Trust Company.

“Effective
Date” has the meaning specified in Section 13.11(b).

“Event
of Default” means any event specified in Section 6.01 as an
Event of Default.

“ex-dividend
date” has the meaning specified in Section 13.01(a)(iv).

“Exchange
Act” means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder, as in effect from time to
time.

“Exchange
Agent” means the exchange agent appointed by the Issuer to
act as set forth in Article 13, which, initially, shall be the Trustee.

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“Exchange
Date” has the meaning specified in Section 13.02. 

“Exchange Notice” has the
meaning specified in Section 13.02.

“Exchange
Price” means, on any date of determination, $1,000, divided by the Exchange Rate as of such
date.

“Exchange
Rate” has the meaning specified in Section 13.04.

The “Exchange Value” for
each $1,000 principal amount of Notes is equal to (a) the Applicable Exchange
Rate, multiplied by (b) the
Average Price.

“Expiration
Time” has the meaning specified in Section 13.05(e).

“Fair
Market Value” shall mean the amount which a willing buyer
would pay a willing seller in an arms-length transaction.

“General
Partner” means ESS Holdings Business Trust I, and, subject to
the provisions of Article 10, shall include its successors and assigns.

“Global
Note” has the meaning specified in Section 2.02.

“Guarantee”
means the full and unconditional guarantee provided by the
Guarantor in respect of the Notes as made applicable to the Notes in accordance
with the provisions of Section 15.01 hereof.

“Guarantee
Obligations” has the meaning specified in Section 15.01.

“Guarantor”
means the corporation named as the “Guarantor” in the first paragraph
of this Indenture, and, subject to the provisions of Article 10, shall include
its successors and assigns.

“Indenture”
means this instrument as originally executed or, if amended
or supplemented as herein provided, as so amended or supplemented.

“Initial
Notes” has the meaning specified in Section 2.01.

“Initial
Purchasers” means each of Citigroup Global Markets Inc. and
Merrill Lynch, Pierce, Fenner & Smith Incorporated (each, an “Initial Purchaser”).

“interest”
means, when used with reference to the Notes, any interest
payable under the terms of the Notes, including Additional Interest, if any.

“Issuer”
means the limited partnership named as the “Issuer” in
the first paragraph of this Indenture, and, subject to the provisions of
Article 10, shall include its successors and assigns.

“Issuer Repurchase Notice” has
the meaning specified in Section 3.07(b).

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“Issuer
Repurchase Notice Date” has the meaning specified in Section
3.07(a). 

“Make
Whole Cap” has the meaning specified in Section 13.1
1(f)(ii). 

“Make Whole Floor” has the
meaning specified in Section 13.11 (f)(iii).

“Market
Disruption Event” means the occurrence or existence for more
than one half-hour period in the aggregate on any scheduled Trading Day for the
Common Stock of any suspension or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by the New York Stock Exchange or
otherwise) in the Common Stock or in any options, contracts or future contracts
relating to the Common Stock, and such suspension or limitation occurs or
exists at any time before 1:00 p.m. (New York City time) on such day.

“Maturity
Date” means April 1, 2027.

“Maximum
Exchange Rate” has the meaning specified in Section 13.05(f).

“Net Amount” has the meaning specified in
Section 13.10(b)(ii). 

“Net Cash Amount” has the meaning specified
in Section 13.10(b)(ii). 

“Net Shares” has the meaning specified in
Section 13.1 0(b)(ii).

“Note”
or “Notes” means any Note or Notes, as
the case may be, authenticated and delivered under this Indenture, including
the Initial Notes, any Additional Notes and any Global Note.

“Note
Register” has the meaning specified in Section 2.05(a). 

“Note Registrar” has the
meaning specified in Section 2.05(a).

“Noteholder”
or “Holder” as applied to any Note, or
other similar terms (but excluding the term “beneficial holder”),  means
any Person in whose name at the time a particular Note is registered on the
Note Registrars books.

“Offering
Memorandum” means the Issuers and the Guarantors offering
memorandum dated March 21, 2007 relating to the Notes unconditionally
guaranteed by the Guarantor.

“Officer”
means any person holding any of the following positions with
the Guarantor or the General Partner: the Chairman of the Board, the Chief
Executive Officer, the President, any Vice President (whether or not designated
by a number or numbers or word or words added before or after the title “Vice President”), the
Chief Financial Officer, the Treasurer and the Secretary.

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“Officers
Certificate,” when used with respect to the Issuer, means a
certificate signed by any two Officers or by one such Officer and any Assistant
Treasurer or Assistant Secretary of the Guarantor or the General Partner.

“Opinion
of Counsel” means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Trustee, the Guarantor or
the Is suer, or other counsel reasonably acceptable to the Trustee.

“outstanding,”
when used with reference to Notes and subject to the
provisions of Section 8.04, means, as of any particular time, all Notes
authenticated and delivered by the Trustee under this Indenture, except:

(a)   Notes theretofore canceled by the Trustee or
delivered to the Trustee for cancellation;

(b)   Notes, or portions thereof, (i) for the
redemption or repurchase of which monies in the necessary amount shall have
been deposited in trust with the Trustee or with any Paying Agent (other than
the Issuer or the Guarantor) or (ii) which shall have been otherwise discharged
in accordance with Article 11;

(c)   Notes in lieu of which, or in substitution
for which, other Notes shall have been authenticated and delivered pursuant to
the terms of Section 2.06; and

(d)   Notes exchanged pursuant to Article 13, and
Notes paid or redeemed or repurchased pursuant to Article 3.

“Paying
Agent” has the meaning specified in Section 2.08.

“Person”
means a corporation, an association, a partnership, a limited
liability company, an individual, a joint venture, a joint stock company, a
trust, an unincorporated organization or a government or an agency or a
political subdivision thereof.

“PORTAL
Market” means The PORTAL Market operated by the Nasdaq Stock
Market or any successor thereto.

“Predecessor
Note” of any particular Note means every previous Note
evidencing all or a portion of the same debt as that evidenced by such
particular Note, and, for the purposes of this definition, any Note
authenticated and delivered under Section 2.06 lieu of a lost, destroyed or
stolen Note shall be deemed to evidence the same debt as the lost, destroyed or
stolen Note that it replaces.

“premium”
means any premium payable under the terms of the Notes. 

“Principal Return” has the meaning specified
in Section 13. 10(b)(i).

“Purchase
Agreement” means the Purchase Agreement, dated as of March
21, 2007, among the Is suer, the Guarantor and the Initial Purchasers.

 

 8

“Record
Date” has the meaning specified in Section 2.03.

“Redemption
Date” means, with respect to any Note or portion thereof to
be redeemed in accordance with the provisions of Section 3.01 hereof, the date
fixed for such redemption in accordance with the provisions of Section 3.01
hereof.

“Redemption
Price” has the meaning provided in Section 3.01 hereof. 

“Reference Dividend” has the
meaning specified in Section 13.05(d). 

“Reference Property” has the
meaning specified in Section 13.01 (a)(iv).

“Registration
Rights Agreement” means the Registration Rights Agreement,
dated as of March 27, 2007, among the Issuer, the Guarantor and the Initial
Purchasers, as amended from time to time in accordance with its terms.

“Reporting
Event of Default” has the meaning specified in Section 6.01. 

“Repurchase Date” has the
meaning specified in Section 3.06(a). 

“Repurchase Notice” has the
meaning specified in Section 3.06(c).

“Responsible
Officer” shall mean, when used with respect to the Trustee,
any officer within the corporate trust department of the Trustee with direct
responsibility for the administration of this Indenture and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of such persons knowledge of or familiarity with the
particular subject.

“Restricted
Notes Legend” has the meaning specified in Section 2.05(c). 

“Restricted Securities” has
the meaning specified in Section 2.05(c).

“Rule
144A” means Rule 144A as promulgated under the Securities Act
as it may be amended from time to time hereafter.

“Securities
Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder, as in effect from time to time.

“Significant
Subsidiary” has the meaning specified in Section 6.01(e).

“Stated
Maturity,” with respect to any Note or any installment of
principal thereof or interest thereon, means the date established by or
pursuant to this Indenture or such Note as the fixed date on which the
principal of such Note or such installment of principal or interest is due and
payable.

“Stock
Price” has the meaning specified in Section 13.11(b).

“Subsidiary”
means, with respect to any Person, (i) any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of 

 9
 

capital stock or other
equity interest entitled (without regard to the occurrence of any contingency)
to vote in the election of directors, managers or trustees thereof is at the
time owned or controlled, directly or indirectly, by such Person or one or more
of the other subsidiaries of that Person (or a combination thereof) and (ii)
any partnership (a) the sole general partner or managing general partner of
which is such Person or a subsidiary of such Person or (b) the only general
partners of which are such Person or of one or more subsidiaries of such Person
(or any combination thereof).

“Trading
Day” means a day on which (i) there is no Market Disruption
Event and (ii) trading in securities generally occurs on the New York Stock
Exchange or, if the Common Stock is not then listed on the New York Stock
Exchange, on the principal other United States national or regional securities
exchange on which the Common Stock is then listed or, if the Common Stock is
not then listed on a United States national or regional securities exchange, on
the principal other market on which the Common Stock is then traded.

“Trading
Price” has the meaning specified in Section 13.01 (a)(ii). 

“transfer” has the meaning
specified in Section 2.05(c).

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as
amended, as it was in force at the date of this Indenture; provided that if the Trust Indenture Act
of 1939 is amended after the date hereof, the term “Trust Indenture Act” shall mean, to
the extent required by such amendment, the Trust Indenture Act of 1939 as so
amended.

“Trustee”
means Wells Fargo Bank, N.A., and its successors and any
corporation resulting from or surviving any consolidation or merger to which it
or its successors may be a party and any successor trustee at the time serving
as successor trustee hereunder.

“Units”
means the limited partnership units of the Is suer.

ARTICLE 2

ISSUE,
DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE
OF NOTES

Section
2.01. Designation Amount and Issue of Notes. The Notes
shall be designated as “3.625% Exchangeable Senior Notes due 2027.”  Upon the execution of this
Indenture, and from time to time thereafter, Notes may be executed by the
Issuer and delivered to the Trustee for authentication, and the Trustee shall
thereupon authenticate and deliver Notes upon a written order of the Issuer,
such order signed by two Officers or by an Officer and either an Assistant
Treasurer of the Guarantor or any Assistant Secretary of the Guarantor, without
any further action by the Issuer hereunder.

The aggregate
principal amount of Notes which may be authenticated and delivered under this
Indenture is unlimited; provided that upon
initial issuance (including any issuance upon exercise of the Initial Purchasers
option set forth in Section 1 of the Purchase Agreement), the aggregate
principal amount of Notes outstanding shall not

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exceed $287,500,000,
except as provided in Section 2.06. The Issuer may, without the consent of the
Holders of Notes, issue additional Notes (the “Additional Notes”)  from
time to time in the future with the same terms and the same CUSIP number as the
Notes originally issued under this Indenture (the “Initial Notes”) in an unlimited principal amount, provided that such Additional Notes must
be part of the same issue as and fungible with the Initial Notes for United
States federal income tax purposes. The Initial Notes and any such Additional
Notes will constitute a single series of debt securities, and in circumstances
in which this Indenture provides for the Holders of Notes to vote or take any
action, the Holders of Initial Notes and the Holders of any such Additional
Notes will vote or take that action as a single class.

Section
2.02. Form of Notes. The Notes, the Guarantee
and the Trustee’s certificate of authentication to be borne by such Notes shall
be substantially in the form set forth in Exhibit A hereto. The terms and
provisions contained in the form of Note attached as Exhibit A hereto shall
constitute, and are hereby expressly made, a part of this Indenture and, to the
extent applicable, the Issuer and the Trustee, by their execution and delivery
of this Indenture, expressly agree to such terms and provisions and to be bound
thereby.

Any of the Notes
may have such letters, numbers or other marks of identification and such
notations, legends, endorsements or changes as the officers executing the same
may approve (execution thereof to be conclusive evidence of such approval) and
as are not inconsistent with the provisions of this Indenture, or as may be
required by the Custodian, the Depositary or by the National Association of
Securities Dealers, Inc. in order for the Notes to be tradable on The PORTAL
Market or as may be required for the Notes to be tradable on any other market developed
for trading of securities pursuant to Rule 144A or as may be required to comply
with any applicable law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any securities exchange or automated quotation
system on which the Notes may be listed, or to conform to usage, or to indicate
any special limitations or restrictions to which any particular Notes are
subject.

So long as the
Notes are eligible for book-entry settlement with the Depositary, or unless
otherwise required by law, or otherwise contemplated by Section 2.05(b), all of
the Notes will be represented by one or more Notes in global form registered in
the name of the Depositary or the nominee of the Depositary (a “Global Note”). The transfer and exchange of
beneficial interests in any such Global Note shall be effected through the
Depositary in accordance with this Indenture and the applicable procedures of
the Depositary. Except as provided in Section 2.05(b), beneficial owners of a
Global Note shall not be entitled to have certificates registered in their
names, will not receive or be entitled to receive physical delivery of
certificates in definitive form and will not be considered Holders of such
Global Note.

Any Global Note
shall represent such of the outstanding Notes as shall be specified therein and
shall provide that it shall represent the aggregate amount of outstanding Notes
from time to time endorsed thereon and that the aggregate amount of outstanding
Notes represented thereby may from time to time be increased or reduced to 

 11
 

reflect redemptions,
repurchases, exchanges, or transfers permitted hereby. Any endorsement of a
Global Note to reflect the amount of any increase or decrease in the amount of
outstanding Notes represented thereby shall be made by the Trustee or the
Custodian, at the direction of the Trustee, in such manner and upon
instructions given by the Holder of such Notes in accordance with this
Indenture. Payment of principal of, interest on and premium, if any, on any
Global Note shall be made to the Holder of such Note.

Section
2.03. Date and Denomination of Notes;
Payments of Interest.  The
Notes shall be issuable in registered form without coupons in denominations of
$1,000 principal amount and integral multiples thereof. Each Note shall be
dated the date of its authentication and shall bear interest from the date
specified on the face of the form of Note attached as Exhibit A hereto.
Interest on the Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months.

The Person in
whose name any Note (or its Predecessor Note) is registered on the Note
Register at 5:00 p.m., New York City time, on any Record Date with respect to
any interest payment date shall be entitled to receive the interest payable on
such interest payment date. Notwithstanding the foregoing, any Note or portion
thereof surrendered for exchange during the period from 5:00 p.m., New York
City time, on the Record Date for any interest payment date to 5:00 p.m., New
York City time, on the applicable interest payment date must be accompanied by
payment, in immediately available funds or other funds acceptable to the
Issuer, of an amount equal to the interest otherwise payable on such interest
payment date on the principal amount being exchanged; provided, however, that no such payment
need be made (1) if a Holder exchanges its Notes in connection with a
redemption and the Issuer has specified a Redemption Date that is after a
Record Date and on or prior to the Business Day immediately succeeding such
interest payment date, (2) if a Holder exchanges its Notes in connection with a
Designated Event and the Issuer has specified a Designated Event Repurchase
Date that is after a Record Date and on or prior to such interest payment date
or (3) to the extent of any overdue interest, if any overdue interest exists at
the time of exchange with respect to such Note. Interest shall be payable at
the office of the Issuer maintained by the Issuer for such purposes, which
shall initially be an office or agency of the Trustee. The Issuer shall pay
interest (i) on any Notes in certificated form by check mailed to the address
of the Person entitled thereto as it appears in the Note Register; provided, however, that a Holder of any
Notes in certificated form in the aggregate principal amount of more than $2.0
million may specify by written notice to the Issuer that it pay interest by
wire transfer of immediately available funds to the account specified by the
Noteholder in such notice, or (ii) on any Global Note by wire transfer of
immediately available funds to the account of the Depositary or its nominee. If
a payment date is not a Business Day, payment shall be made on the next
succeeding Business Day, and no additional interest shall accrue thereon. The
term “Record
Date” with respect to
any interest payment date shall mean the March 15 or September 15 preceding the
applicable April 1 or October 1 interest payment date, respectively.

Any interest on
any Note which is payable, but is not punctually paid or duly provided for, on
any April 1 or October 1 (herein called “Defaulted Interest”) shall

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forthwith cease to be
payable to the Noteholder registered as such on the relevant Record Date, and
such Defaulted Interest shall be paid by the Issuer, at its election in each case,
as provided in clause (a) or (b) below:

(a)        The Issuer may elect to make payment of
any Defaulted Interest to the Persons in whose names the Notes (or their
respective Predecessor Notes) are registered at 5:00 p.m., New York City time,
on a special record date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Issuer shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date of the proposed payment (which shall be not less than twenty-five
(25) calendar days after the receipt by the Trustee of such notice, unless the
Trustee shall consent to an earlier date), and at the same time the Issuer
shall deposit with the Trustee an amount of money equal to the aggregate amount
to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit on or prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit
of the Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon, the Trustee shall fix a special record date for the payment of such
Defaulted Interest which shall be not more than fifteen (15) calendar days and
not less than ten (10) calendar days prior to the date of the proposed payment,
and not less than ten (10) calendar days after the receipt by the Trustee of
the notice of the proposed payment (unless, the Trustee shall consent to an
earlier date). The Trustee shall promptly notify the Is suer of such special
record date and, in the name and at the expense of the Issuer, shall cause
notice of the proposed payment of such Defaulted Interest and the special
record date therefor to be delivered to each Holder at its address as it appears
in the Note Register, not less than ten (10) calendar days prior to such
special record date (unless, the Trustee shall consent to an earlier date).
Notice of the proposed payment of such Defaulted Interest and the special
record date therefor having been so delivered, such Defaulted Interest shall be
paid to the Persons in whose names the Notes (or their respective Predecessor
Notes) are registered at 5:00 p.m., New York City time, on such special record
date and shall no longer be payable pursuant to the following clause (b) of
this Section 2.03.

(b)        The Issuer may make payment of any
Defaulted Interest in any other lawful manner not inconsistent with the
requirements of any securities exchange or automated quotation system on which
the Notes may be listed or designated for issuance, and upon such notice as may
be required by such exchange or automated quotation system, if, after notice
given by the Issuer to the Trustee of the proposed payment pursuant to this
clause, such manner of payment shall be deemed practicable by the Trustee.

Section
2.04. Execution of Notes. The Notes shall be
signed in the name and on behalf of the Issuer by the manual or facsimile
signature of an Officer. Only such Notes as shall bear thereon a certificate of
authentication substantially in the form set forth on the form of Note attached
as Exhibit A hereto, executed manually by the Trustee (or an authenticating
agent appointed by the Trustee as provided by Section 16.11), shall be entitled
to the benefits of this Indenture or be valid or obligatory for any purpose.
Such certificate by the Trustee (or such an authenticating agent) upon any Note
executed by the Issuer shall be conclusive evidence that the Note so
authenticated has been duly 

 13
 

authenticated and
delivered hereunder and that the Holder is entitled to the benefits of this
Indenture.

In case any
Officer who shall have signed any of the Notes shall cease to be such Officer
before the Notes so signed shall have been authenticated and delivered by the
Trustee, or disposed of by the Issuer, such Notes nevertheless may be
authenticated and delivered or disposed of as though the person who signed such
Notes had not ceased to be such Officer, and any Note may be signed on behalf
of the Issuer by such persons as, at the actual date of the execution of such
Note, shall be the proper Officers, although at the date of the execution of
this Indenture any such person was not such an Officer.

Section 2.05. Exchange and Registration of Transfer of Notes;
Restrictions on Transfer. (a) The Issuer shall cause to be kept at
the Corporate Trust Office a register (the register maintained in such office
and in any other office or agency of the Issuer designated pursuant to Section
4.02 being herein sometimes collectively referred to as the “Note Register”) in which, subject to such reasonable regulations as it may
prescribe, the Issuer shall provide for the registration of Notes and of
transfers of Notes. The Note Register shall be in written form or in any form
capable of being exchanged into written form within a reasonably prompt period
of time. The Trustee is hereby appointed “Note Registrar” for the purpose of
registering Notes and transfers of Notes as herein provided. The Issuer may
appoint one or more co-registrars in accordance with Section 4.02.

Upon surrender for
registration of transfer of any Note to the Note Registrar or any co-registrar,
and satisfaction of the requirements for such transfer set forth in this
Section 2.05, the Issuer shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Notes of any authorized denominations and of a like aggregate principal
amount and bearing such restrictive legends as may be required by this
Indenture.

Notes may be exchanged
for other Notes of any authorized denominations and of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at any such
office or agency maintained by the Issuer pursuant to Section 4.02. Whenever
any Notes are so surrendered for exchange, the Issuer shall execute, and the
Trustee shall authenticate and deliver, the Notes which the Noteholder making
the exchange is entitled to receive bearing registration numbers not
contemporaneously outstanding.

All Notes issued
upon any registration of transfer or exchange of Notes shall be the valid
obligations of the Issuer, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Notes surrendered upon such registration
of transfer or exchange.

All Notes
presented or surrendered for registration of transfer or for exchange,
redemption, or repurchase shall (if so required by the Issuer or the Note
Registrar) be duly endorsed, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the Issuer, and the Notes shall
be duly executed by the Noteholder thereof or its attorney duly authorized in
writing.

 14
 

No service charge
shall be made to any Holder for any registration of or transfer of Notes, or
exchange of Notes for other Notes, but the Issuer may require payment by the
Holder of a sum sufficient to cover any tax, assessment or other governmental
charge that may be imposed in connection with any registration of or transfer
of Notes, or exchange of Notes for other Notes.

In the event of
any redemption in part, the Issuer shall not be required to: (i) issue or
register the transfer or exchange of any Note during a period beginning at the
opening of business 15 days before any selection of Notes for redemption and
ending at the close of business on the earliest date on which the relevant
notice of redemption is deemed to have been given to all Holders of Notes to be
so redeemed, or (ii) register the transfer or exchange of any Note so selected
for redemption, in whole or in part, except the unredeemed portion of any Note
being redeemed in part.

(b)         The following provisions shall apply
only to Global Notes:

(i)            Each Global Note authenticated under
this Indenture shall be registered in the name of the Depositary or a nominee
thereof and delivered to such Depositary or a nominee thereof or Custodian
therefor, and each such Global Note shall constitute a single Note for all
purposes of this Indenture.

(ii)           Notwithstanding any other provision
in this Indenture, no Global Note may be exchanged in whole or in part for
Notes registered, and no transfer of a Global Note in whole or in part may be
registered, in the name of any Person other than the Depositary or a nominee
thereof unless (1) the Depositary (x) has notified the Issuer that it is
unwilling or unable to continue as Depositary for such Global Note or (y) has
ceased to be a clearing agency registered under the Exchange Act, and a
successor depositary has not been appointed by the Issuer within ninety (90)
calendar days, (2) an Event of Default has occurred and is continuing or (3)
the Issuer, in its sole discretion, notifies the Trustee in writing that it no
longer wishes to have all the Notes represented by Global Notes. Any Global
Note exchanged pursuant to clause (1) or (2) above shall be so exchanged in
whole and not in part and any Global Note exchanged pursuant to clause (3)
above may be exchanged in whole or from time to time in part as directed by the
Issuer. Any Note issued in exchange for a Global Note or any portion thereof
shall be a Global Note; provided that
any such Note so issued that is registered in the name of a Person other than
the Depositary or a nominee thereof shall not be a Global Note.

(iii)          Notes issued in exchange for a Global
Note or any portion thereof pursuant to clause (ii) above shall be issued in
definitive, fully registered form, without interest coupons, shall have an
aggregate principal amount equal to that of such Global Note or portion thereof
to be so exchanged, shall be registered in such names and be in such authorized
denominations as the Depositary shall designate and shall bear any legends
required hereunder. Any Global Note to be exchanged in whole shall be
surrendered by the Depositary to the Trustee, as Note Registrar. With regard to
any Global Note to be exchanged in part, either such

 15
 

Global Note shall be so surrendered for exchange or, if the Trustee is
acting as Custodian for the Depositary or its nominee with respect to such
Global Note, the principal amount thereof shall be reduced, by an amount equal
to the portion thereof to be so exchanged, by means of an appropriate
adjustment made on the records of the Trustee. Upon any such surrender or
adjustment, the Trustee shall authenticate and make available for delivery the
Note issuable on such exchange to or upon the written order of the Depositary
or an authorized representative thereof.

(iv)          In the event of the occurrence of any
of the events specified in clause (ii) above, the Issuer will promptly make
available to the Trustee a reasonable supply of certificated Notes in
definitive, fully registered form, without interest coupons.

(v)           Neither any members of, or
participants in, the Depositary (“Agent Members”) nor any other
Persons on whose behalf Agent Members may act shall have any rights under this
Indenture with respect to any Global Note registered in the name of the
Depositary or any nominee thereof, and the Depositary or such nominee, as the
case may be, may be treated by the Issuer, the Trustee and any agent of the Issuer
or the Trustee as the absolute owner and Holder of such Global Note for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee from
giving effect to any written certification, proxy or other authorization
furnished by the Depositary or such nominee, as the case may be, or impair, as
between the Depositary, its Agent Members and any other Person on whose behalf
an Agent Member may act, the operation of customary practices of such Persons
governing the exercise of the rights of a Holder of any Note.

(vi)          At such time as all interests in a
Global Note have been redeemed, repurchased, exchanged, or canceled for Notes
in certificated form, such Global Note shall, upon receipt thereof, be canceled
by the Trustee in accordance with standing procedures and instructions existing
between the Depositary and the Custodian. At any time prior to such
cancellation, if any interest in a Global Note is redeemed, repurchased,
exchanged, or canceled for Notes in certificated form, the principal amount of
such Global Note shall, in accordance with the standing procedures and
instructions existing between the Depositary and the Custodian, be
appropriately reduced, and an endorsement shall be made on such Global Note, by
the Trustee or the Custodian, at the direction of the Trustee, to reflect such
reduction.

(c)         Every Note (and all securities issued
in exchange therefor or in substitution thereof) that bears or is required
under this Section 2.05(c) to bear the legend set forth in this Section 2.05(c)
(the “Restricted
Notes Legend”),  and any Common Stock that bears or
is required under this Section 2.05(c) to bear the Common Stock legend set
forth in this Section 2.05(c) (the “Common Stock Legend”) (collectively, the “Restricted Securities”) shall be subject to the restrictions
on transfer set forth in this Section 2.05(c) (including those set forth in the
legends below) unless such restrictions on transfer shall

 16
 

be waived by written
consent of the Issuer, and the Holder of each such Restricted Security, by such
Note Holder’s acceptance thereof, agrees to be bound by all such restrictions
on transfer. As used in this Section 2.05(c), the term “transfer” means any sale, pledge,
loan, transfer or other disposition whatsoever of any Restricted Security or
any interest therein.

Until the Maturity
Date for the Notes any certificate evidencing a Restricted Security shall bear
a legend in substantially the following form, or unless otherwise agreed by the
Issuer in writing, with written notice thereof to the Trustee:

THIS SECURITY HAS NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF, THE HOLDER AGREES THAT IT WILL NOT RESELL OR OTHERWISE
TRANSFER THE SECURITY EVIDENCED HEREBY, EXCEPT (A) TO THE ISSUER, EXTRA SPACE
STORAGE INC. OR A SUBSIDIARY OF THE ISSUER; OR (B) TO A PERSON THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED
UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE
WITH RULE 144A (IF AVAILABLE).

Until the
expiration of the holding period applicable to sales thereof under Rule 144(k)
under the Securities Act (or any successor provision), any certificate evidencing
any stock certificate representing shares of Common Stock issued upon exchange
of any Note, shall bear a Common Stock Legend unless such Common Stock has been
sold pursuant to a registration statement that has been declared effective
under the Securities Act (and which continues to be effective at the time of
such transfer) or pursuant to Rule 144 under the Securities Act or any similar
provision then in force, or unless otherwise agreed by the Issuer in writing,
with written notice thereof to the Trustee:

THIS SECURITY HAS NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT IT WILL NOT
RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY, EXCEPT (A) TO THE
ISSUER, EXTRA SPACE STORAGE LP OR A SUBSIDIARY OF THE ISSUER; (B) UNDER A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT; (C) TO A PERSON THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED UNDER THE

 17
 

SECURITIES ACT) THAT IS PURCHASING
FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER
AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, ALL IN COMPLIANCE  WITH
RULE 144A (IF AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (2) THAT IT WILL, PRIOR TO
ANY TRANSFER OF THIS SECURITY, FURNISH TO THE TRANSFER AGENT AND THE ISSUER
SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED TO
CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.

Any such shares of
Common Stock as to which such restrictions on transfer shall have expired in
accordance with their terms or as to which the conditions for removal of the
Common Stock Legend set forth therein have been satisfied may, upon surrender
of the certificates representing such shares of Common Stock for exchange in
accordance with the procedures of the transfer agent for the Common Stock, be
exchanged for a new certificate or certificates for a like number of shares of
Common Stock, which shall not bear the Common Stock Legend required by this
Section 2.05(c).

(d)        By its acceptance of any Note bearing
the Restricted Notes Legend, each Holder of such Note acknowledges the
restrictions on transfer of such Note set forth in this Indenture and in the
Restricted Notes Legend and agrees that it will transfer such Note only as
provided in this Indenture and as permitted by applicable law.

(e)        Any Restricted Securities purchased or
owned by the Issuer or any Affiliate thereof may not be resold by the Issuer or
such Affiliate unless registered under the Securities Act or resold pursuant to
an exemption from the registration requirements of the Securities Act in a
transaction which results in such Notes or Common Stock, as the case may be, no
longer being “restricted securities” (as defined under Rule 144).

(f)         The Trustee shall have no
responsibility or obligation to any Agent Members or any other Person with
respect to the accuracy of the books or records, or the acts or omissions, of
the Depositary or its nominee or of any participant or member thereof, with
respect to any ownership interest in the Notes or with respect to the delivery
to any Agent Member or other Person (other than the Depositary) of any notice
(including any notice of redemption) or the payment of any amount, under or
with respect to such Notes. All notices and communications to be given to the
Noteholders and all payments to be made to Noteholders under the Notes shall be
given or made only to or upon the order of the registered Noteholders (which
shall be the Depositary or its nominee in the case of a Global Note). The
rights of beneficial owners in any Global Note shall be exercised only through
the Depositary subject to the customary procedures of the Depository. The
Trustee may rely and shall be fully protected in relying upon information
furnished by the Depositary with respect to its Agent Members.

 18

The Trustee shall
have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Note
(including any transfers between or among Agent Members in any Global
Indenture) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and
when expressly required by, the terms of this Indenture, and to examine the
same to determine substantial compliance as to form with the express
requirements hereof.

Section
2.06. Mutilated, Destroyed, Lost or Stolen
Notes. In
case any Note shall become mutilated or be destroyed, lost or stolen, the
Issuer in its discretion may execute, and upon its written request the Trustee
or an authenticating agent appointed by the Trustee shall authenticate and make
available for delivery, a new Note, bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Note, or in lieu of
and in substitution for the Note so destroyed, lost or stolen. In every case,
the applicant for a substituted Note shall furnish to the Issuer, to the
Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any
loss, liability, cost or expense caused by or connected with such substitution,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Issuer, to the Trustee and, if applicable, to such
authenticating agent evidence to their satisfaction of the destruction, loss or
theft of such Note and of the ownership thereof.

Following receipt
by the Trustee or such authenticating agent, as the case may be, of
satisfactory security or indemnity and evidence, as described in the preceding
paragraph, the Trustee or such authenticating agent may authenticate any such
substituted Note and make available for delivery such Note. Upon the issuance
of any substituted Note, the Issuer may require the payment by the Holder of a
sum sufficient to cover any tax, assessment or other governmental charge that
may be imposed in relation thereto and any other expenses connected therewith.
In case any Note which has matured or is about to mature or has been called for
redemption or has been properly tendered for repurchase on a Designated Event
Repurchase Date (and not withdrawn) or has been tendered for repurchase on a
Repurchase Date (and not withdrawn), as the case may be, or is to be exchanged
pursuant to this Indenture, shall become mutilated or be destroyed, lost or
stolen, the Issuer may, instead of issuing a substitute Note, pay or authorize
the payment of or exchange or authorize the exchange of the same (without
surrender thereof except in the case of a mutilated Note), as the case may be,
if the applicant for such payment or exchange shall furnish to the Issuer, to
the Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any
loss, liability, cost or expense caused by or in connection with such
substitution, and, in every case of destruction, loss or theft, the applicant
shall also furnish to the Issuer, the Trustee and, if applicable, any Paying
Agent or Exchange Agent evidence to their satisfaction of the destruction, loss
or theft of such Note and of the ownership thereof.

Every substitute
Note issued pursuant to the provisions of this Section 2.06 by virtue of the fact
that any Note is destroyed, lost or stolen shall constitute an additional

 19
 

contractual obligation of
the Issuer, whether or not the destroyed, lost or stolen Note shall be found at
any time, and shall be entitled to all the benefits of (but shall be subject to
all the limitations set forth in) this Indenture equally and proportionately
with any and all other Notes duly issued hereunder. To the extent permitted by
law, all Notes shall be held and owned upon the express condition that the
foregoing provisions are exclusive with respect to the replacement or payment
or exchange or redemption or repurchase of mutilated, destroyed, lost or stolen
Notes and shall preclude any and all other rights or remedies notwithstanding
any law or statute existing or hereafter enacted to the contrary with respect
to the replacement or payment or exchange or redemption or repurchase of
negotiable instruments or other securities without their surrender.

Section
2.07. Temporary Notes. Pending the
preparation of Notes in certificated form, the Issuer may execute and the
Trustee or an authenticating agent appointed by the Trustee shall, upon the
written request of the Issuer, authenticate and deliver temporary Notes
(printed or lithographed). Temporary Notes shall be issuable in any authorized
denomination, and substantially in the form of the Notes in certificated form,
but with such omissions, insertions and variations as may be appropriate for
temporary Notes, all as may be determined by the Issuer. Every such temporary
Note shall be executed by the Issuer and authenticated by the Trustee or such
authenticating agent upon the same conditions and in substantially the same
manner, and with the same effect, as the Notes in certificated form. Without
unreasonable delay, the Issuer will execute and deliver to the Trustee or such
authenticating agent Notes in certificated form and thereupon any or all
temporary Notes may be surrendered in exchange therefor, at each office or
agency maintained by the Issuer pursuant to Section 4.02 and the Trustee or
such authenticating agent shall authenticate and make available for delivery in
exchange for such temporary Notes an equal aggregate principal amount of Notes
in certificated form. Such exchange shall be made by the Issuer at its own expense
and without any charge therefor. Until so exchanged, the temporary Notes shall
in all respects be entitled to the same benefits and subject to the same
limitations under this Indenture as Notes in certificated form authenticated
and delivered hereunder.

Section
2.08. Cancellation of Notes. All Notes
surrendered for the purpose of payment, redemption, repurchase, exchange or
registration of transfer shall, if surrendered to the Issuer or any paying
agent to whom Notes may be presented for payment (the “Paying Agent,” which shall
initially be the Trustee) or the Exchange Agent, which shall initially be the
Trustee, or any Note Registrar, be surrendered to the Trustee and promptly
canceled by it or, if surrendered to the Trustee, shall be promptly canceled by
it and no Notes shall be issued in lieu thereof except as expressly permitted
by any of the provisions of this Indenture. The Trustee shall dispose of such
canceled Notes in accordance with its customary procedures, with a certificate
of such cancellation provided to the Issuer. If the Issuer shall acquire any of
the Notes, such acquisition shall not operate as a redemption, repurchase or
satisfaction of the indebtedness represented by such Notes unless and until the
same are delivered to the Trustee for cancellation.

Section
2.09. CUSIP Numbers. The Issuer in issuing
the Notes may use “CUSIP” numbers (if then generally
in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Noteholders; provided
that any

 20
 

such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Notes or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Issuer will promptly notify the Trustee of any
change in the “CUSIP” numbers.

ARTICLE 3

REDEMPTION
AND REPURCHASE OF NOTES

Section
3.01. Optional Redemption of Notes. (a) The Issuer
shall have the right to redeem the Notes for cash, in whole or in part, (i)
prior to April 5, 2012, if the Issuer determines it is necessary to redeem the
Notes in order to preserve the Guarantor’s status as a real estate investment
trust and (ii) at any time or from time to time, on or after April 5, 2012, in
each case upon the notice set forth in Section 3.02 at a redemption price (“Redemption
Price”) equal to 100% of the principal amount of the Notes to
be redeemed plus unpaid interest, if any, accrued thereon to, but excluding,
the Redemption Date; provided, however that
if the Redemption Date falls after a Record Date and on or prior to the
corresponding interest payment date, the Issuer will pay the full amount of
accrued and unpaid interest, if any, on such interest payment date to the
Holder of record at the close of business on the corresponding Record Date
(instead of the Holder surrendering its Notes for redemption) and the
Redemption Price shall be equal to 100% of the principal amount of the Notes to
be redeemed. In connection with any redemption by the Issuer pursuant to clause
(i) in this Section 3.01(a), the Issuer shall provide the Trustee with an
Officers’ Certificate evidencing that the Board of Directors has, in good
faith, made the determination that it is necessary to redeem the Notes in order
to preserve the Guarantor’s status as a real estate investment trust.

(b)        The Issuer shall not redeem the Notes
pursuant to Section 3.01(a) on any date if the principal amount of the Notes
has been accelerated, and such an acceleration has not been rescinded or cured
on or prior to such date (except in the case of an acceleration resulting from
a default by the Issuer in the payment of the Redemption Price with respect to
the Notes to be redeemed).

Section
3.02. Notice of Optional Redemption;
Selection of Notes. In
case the Issuer shall desire to exercise the right to redeem all or, as the
case may be, any part of the Notes pursuant to Section 3.01, it shall fix a
date for redemption and it or, at its written request received by the Trustee
not fewer than five (5) Business Days prior (or such shorter period of time as
may be acceptable to the Trustee) to the date the notice of redemption is to be
delivered, the Trustee in the name of and at the expense of the Issuer, shall
deliver or cause to be delivered a notice of such redemption not fewer than
thirty (30) calendar days nor more than sixty (60) calendar days prior to the
Redemption Date to each Holder of Notes so to be redeemed in whole or in part
at its last address as the same appears on the Note Register; provided that if the Issuer makes such
request of the Trustee, it shall, together with such request, also give written
notice of the Redemption Date to the Trustee, provided
further that the text of the notice shall be prepared by the

 21
 

Issuer. The notice, if
delivered in the manner herein provided, shall be conclusively presumed to have
been duly delivered, whether or not the Holder receives such notice. In any
case, failure to deliver such notice or any defect in the notice to the Holder
of any Note designated for redemption as a whole or in part shall not affect
the validity of the proceedings for the redemption of any other Note.
Concurrently with the delivery of any such notice of redemption, the Issuer
shall issue a press release announcing such redemption or post notice of such
redemption on its website or otherwise distribute a notice through such public
medium as the Issuer deems appropriate, the form and content of which press
release or notice shall be determined by the Issuer in its sole discretion. The
failure to issue any such press release or notice or any defect therein shall
not affect the validity of the redemption notice or any of the proceedings for
the redemption of any Note called for redemption.

Each such notice
of redemption shall specify: (i) the aggregate principal amount of Notes to be
redeemed, (ii) the CUSIP number or numbers of the Notes being redeemed, (iii)
the Redemption Date (which shall be a Business Day), (iv) the Redemption Price
at which Notes are to be redeemed, (v) the place or places of payment and that
payment will be made upon presentation and surrender of such Notes, (vi) that
interest accrued and unpaid to, but excluding, the Redemption Date will be paid
as specified in said notice, and that on and after said date interest thereon
or on the portion thereof to be redeemed will cease to accrue, (vii) that the
Holder has a right to exchange the Notes called for redemption, (viii) the Exchange
Rate on the date of such notice, (ix) the time and date on which the right to
exchange such Notes or portions thereof pursuant to this Indenture will expire,
and (x) either (aa) the Issuer will not withhold under Section 1445 of the Code
in connection with such exchange, or (bb) the Issuer, after reasonable efforts,
believes that the Guarantor is not, or has not been able to determine whether
it is, “a domestically controlled qualified investment entity” as defined in
Section 897(h) of the Code and, therefore, will withhold under Section 1445 of
the Code in connection with such exchange unless another exception to
withholding is available at such time. If fewer than all the Notes are to be
redeemed, the notice of redemption shall identify the Notes to be redeemed
(including CUSIP numbers, if any). In case any Note is to be redeemed in part
only, the notice of redemption shall state the portion of the principal amount
thereof to be redeemed and shall state that, on and after the Redemption Date,
upon surrender of such Note, a new Note or Notes in principal amount equal to
the unredeemed portion thereof will be issued.

Whenever any Notes
are to be redeemed, the Issuer will give the Trustee written notice of the
Redemption Date, together with an Officers’ Certificate as to the aggregate
principal amount of Notes to be redeemed not fewer than thirty (30) calendar
days (or such shorter period of time as may be acceptable to the Trustee) prior
to the Redemption Date.

On or prior to the
Redemption Date specified in the notice of redemption given as provided in this
Section 3.02, the Issuer will deposit with the Paying Agent (or, if the Issuer
is acting as its own Paying Agent, set aside, segregate and hold in trust as
provided in Section 4.04) an amount of money in immediately available funds
sufficient to redeem on the Redemption Date all the Notes (or portions thereof)
so called for redemption

 22
 

(other than those
theretofore surrendered for exchange) at the appropriate Redemption Price; provided that if such payment is made on
the Redemption Date, it must be received by the Paying Agent, by 11:00 a.m.,
New York City time, on such date. If any Note called for redemption is
exchanged pursuant hereto prior to such Redemption Date, any money deposited
with the Paying Agent or so segregated and held in trust for the redemption of
such Note shall be paid to the Issuer or, if then held by the Issuer, shall be
discharged from such trust.

If less than all
of the outstanding Notes are to be redeemed, the Trustee shall select the Notes
or portions thereof of the Global Note or the Notes in certificated form to be
redeemed (in principal amounts of $1,000 or integral multiples thereof) by lot,
on a pro rata basis or by another method the Trustee deems fair and appropriate
or is required by the Depositary. If any Note selected for redemption is
submitted for exchange in part after such selection, the portion of such Note
submitted for exchange shall be deemed (so far as may be possible) to be the
portion to be selected for redemption. The Notes (or portions thereof) so
selected for redemption shall be deemed duly selected for redemption for all
purposes hereof, notwithstanding that any such Note is submitted for exchange
in part before the delivery of the notice of redemption.

Upon any
redemption of less than all of the outstanding Notes, the Issuer and the
Trustee may (but need not), solely for purposes of determining the allocation
among such Notes that are unexchanged and outstanding at the time of
redemption, treat as outstanding any Notes surrendered for exchange during the
period of fifteen (15) calendar days preceding the delivery of a notice of
redemption and may (but need not) treat as outstanding any Note authenticated
and delivered during such period in exchange for the unexchanged portion of any
Note exchanged in part during such period.

Section
3.03. Payment of Notes Called for Redemption
by the Issuer. If
notice of redemption has been given as provided in Section 3.02, the Notes or
portion of Notes with respect to which such notice has been given shall, unless
exchanged pursuant to the terms hereof, become due and payable on the
Redemption Date and at the place or places stated in such notice at the
Redemption Price, and unless the Issuer shall default in the payment of such
Notes at the Redemption Price, interest on the Notes or portion of Notes so
called for redemption shall cease to accrue on and after the Redemption Date
and, after 5:00 p.m., New York City time, on the second Business Day
immediately preceding the Redemption Date (unless the Issuer shall default in
the payment of the Redemption Price) such Notes shall cease to be exchangeable
pursuant to this Indenture and, except as provided in Section 7.05 and Section
11.02, to be entitled to any benefit or security under this Indenture, and the
Holders thereof shall have no right in respect of such Notes except the right
to receive the Redemption Price thereof. On presentation and surrender of such
Notes at a place of payment in said notice specified, the said Notes or the
specified portions thereof shall be paid and redeemed by the Issuer at the
Redemption Price, together with interest accrued thereon to, but excluding, the
Redemption Date.

Upon presentation
of any Note redeemed in part only, the Issuer shall execute and the Trustee
shall authenticate and make available for delivery to the Holder thereof, at
the

 23
 

expense of the Issuer, a
new Note or Notes, of authorized denominations, in principal amount equal to
the unredeemed portion of the Notes so presented.

Section 3.04.
Sinking Fund. There shall be no
sinking fund provided for the Notes.

Section
3.05. Repurchase at Option of Holders Upon a
Designated Event. (a)
If there shall occur a Designated Event at any time prior to maturity of the
Notes, then each Noteholder shall have the right, at such Holder’s option, to
require the Issuer to repurchase all of such Holder’s Notes, or any portion
thereof that is an integral multiple of $1,000 principal amount, in cash, on a
date (the “Designated
Event Repurchase Date”) specified
by the Issuer, which may be no earlier than fifteen (15) days and no later than
thirty (30) days after the date of the Issuer Repurchase Notice related to such
Designated Event, at a repurchase price equal to 100% of the principal amount
of the Notes being repurchased, plus accrued and unpaid interest to, but
excluding, the Designated Event Repurchase Date; provided, however, that if the Designated Event Repurchase
Date falls after a Record Date and on or prior to the corresponding interest
payment date, the Issuer will pay the full amount of accrued and unpaid
interest, if any, on such interest payment date to the Holder of record at the
close of business on the corresponding Record Date, and the repurchase price
will be 100% of the principal amount of the Notes to be repurchased.

(b)        On or before the tenth calendar day
after the occurrence of a Designated Event, the Issuer shall deliver or cause
to be delivered to all Holders of record on the date of the Designated Event
(and to beneficial owners as required by applicable law) an Issuer Repurchase
Notice as set forth in Section 3.07 with respect to such Designated Event. The
Issuer shall also deliver a copy of the Issuer Repurchase Notice to the Trustee
and the Paying Agent at such time as it is delivered to Noteholders. In
addition to the delivery of such Issuer Repurchase Notice, the Issuer shall
disseminate a press release through Dow Jones & Company, Inc. or Bloomberg
Business News announcing the occurrence of such Designated Event or publish such
information in The Wall Street Journal or another newspaper of general
circulation in The City of New York or on the Guarantor’s web site, or through
such other public medium as the Issuer shall deem appropriate at such time.

No failure of the
Issuer to give the foregoing notices and no defect therein shall limit the
Noteholder’s repurchase rights or affect the validity of the proceedings for
the repurchase of the Notes pursuant to this Section 3.05.

(c)        For a Note to be repurchased at the
option of the Holder pursuant to this Section 3.05(c), the Holder must deliver
to the Paying Agent, prior to 5:00 p.m., New York City time, on the second
Business Day immediately prior to the Designated Event Repurchase Date, (i) a
written notice of repurchase (the “Designated Event Repurchase Notice”) in the form set forth on the reverse
of the Note duly completed (if the Note is certificated) or stating the
following (if the Note is represented by a Global Note): (A) the certificate
number of the Note that the Holder will deliver to be repurchased (if the Note
is certificated) or that the relevant Designated Event Repurchase Notice
complies with

 24
 

the appropriate
Depositary procedures (if the Note is represented by a Global Note), (B) the
portion of the principal amount of the Note which the Holder will deliver to be
repurchased, which portion must be in principal amounts of $1,000 or an
integral multiple of $1,000 (provided that
the remaining principal amount of Notes not subject to repurchase must be in an
integral multiple of $1,000) and (C) that such Note shall be repurchased as of
the Designated Event Repurchase Date pursuant to the terms and conditions
specified in the Note and in this Indenture; together with (ii) such Notes duly
endorsed for transfer (if the Note if certificated) or book-entry transfer of
such Note (if such Note is represented by a Global Note). The delivery of such
Note to the Paying Agent with, or at any time after delivery of, the Designated
Event Repurchase Notice (together with all necessary endorsements) at the
office of the Paying Agent shall be a condition to the receipt by the Holder of
the repurchase price therefore; provided,
however, that such repurchase price shall be so paid pursuant to
this Section 3.05 only if the Notes so delivered to the Paying Agent shall
conform in all respects to the description thereof in the Designated Event
Repurchase Notice. All questions as to the validity, eligibility (including
time of receipt) and acceptance of any Note for repurchase shall be determined
by the Issuer, whose determination shall be final and binding absent manifest
error.

(d)        The Issuer, if so requested, shall
repurchase from the Holder thereof, pursuant to this Section 3.05, a portion of
a Note, if the principal amount of such portion is $1,000 or an integral
multiple of $1,000. Provisions of this Indenture that apply to the repurchase
of all of a Note also apply to the repurchase of such portion of such Note.

(e)        Notwithstanding the foregoing, no Notes
may be repurchased by the Issuer pursuant to this Section 3.05 if the principal
amount of the Notes has been accelerated, and such acceleration has not been
rescinded or cured, on or prior to the relevant Designated Event Repurchase
Date (except in the case of an acceleration resulting from a default by the
Issuer in the payment of the repurchase price pursuant to this Section 3.05
with respect to the Notes to be repurchased).

(f)         The Paying Agent shall promptly notify
the Issuer of the receipt by it of any Designated Event Repurchase Notice or
written notice of withdrawal thereof.

(g)        The Issuer may arrange for a third party
to purchase any Notes (provided that the Trustee is so notified by Issuer
promptly) for which the Issuer receives a valid Designated Event Repurchase
Notice that is not withdrawn, in the manner and otherwise in compliance with
the requirements set forth herein. If a third party purchases any Notes under
these circumstances, interest will continue to accrue on those Notes and such
Notes will continue to be outstanding after the Designated Event Repurchase
Date. The third party subsequently may resell such purchased Notes to other
investors.

Any repurchase by
the Issuer contemplated pursuant to the provisions of this Section 3.05 shall
be consummated by the delivery of the consideration to be received by the
Holder (i) on the Designated Event Repurchase Date if the book-entry transfer
or delivery of the Notes to the Paying Agent is effected prior to the close of
business on the second Business Day prior to the Designated Event Repurchase
Date, and (ii) if delivered

 25
 

later, within two (2)
Business Days following the time of the book-entry transfer or delivery of the
Note. Payment of the repurchase price for a Note for which a Designated Event
Repurchase Notice has been delivered and not withdrawn is conditioned upon
book-entry transfer or delivery of the Notes, together with necessary
endorsements, to the Paying Agent.

Section
3.06. Repurchase of Notes at the Option of
Holders. (a)
Each Noteholder shall have the right, at such Holder’s option, to require the
Issuer to repurchase all of such Holder’s Notes, or any portion thereof that is
an integral multiple of $1,000 principal amount, in cash, on April 1, 2012,
April 1, 2017, and April 1, 2022 (each, a “Repurchase Date”), at a repurchase price of 100% of
the principal amount of the Notes being repurchased, plus accrued and unpaid
interest to, but excluding, the Repurchase Date; provided, however, that if the Repurchase Date falls after a
Record Date and on or prior to the corresponding interest payment date, the
Issuer will pay the full amount of accrued and unpaid interest, if any, on such
interest payment date to the Holder of record at the close of business on the
corresponding Record Date and the repurchase price will be 100% of the principal
amount of the Notes to be repurchased.

(b)         On or before the twentieth (20th)
Business Day immediately preceding each Repurchase Date, the Issuer shall
deliver or cause to be delivered to all Holders of record on such date an
Issuer Repurchase Notice as set forth in Section 3.07. The Issuer shall also
deliver a copy of the Issuer Repurchase Notice to the Trustee and the Paying
Agent at such time as it is delivered to Noteholders. In addition to the
delivery of such Issuer Repurchase Notice, the Issuer shall disseminate a press
release through Dow Jones & Company, Inc. or Bloomberg Business News
containing the information specified in such notice or publish such information
in The Wall Street Journal or another newspaper of general circulation in The
City of New York or on the Guarantor’s web site, or through such other public
medium as the Issuer shall deem appropriate at such time. No failure of the
Issuer to give the foregoing notices and no defect therein shall limit the
Noteholders’ repurchase rights or affect the validity of the proceedings for
the repurchase of the Notes pursuant to this Section 3.06.

(c)          For a Note to be so repurchased at the
option of the Holder pursuant to this Section 3.06, the Holder must deliver to
the Paying Agent, during the period beginning at 9:00 a.m., New York City time,
on the date that is twenty (20) Business Days prior to the applicable
Repurchase Date and ending at 5:00 p.m., New York City time, on the second
Business Day immediately prior to the applicable Repurchase Date, (i) a written
notice of repurchase (the “Repurchase Notice”) in the form set forth on the reverse
of the Note duly completed (if the Note is certificated) or stating the
following (if the Note is represented by a Global Note): (A) the certificate number
of the Note which the Holder will deliver to be repurchased (if the Note is
certificated) or that the relevant Repurchase Notice complies with the
appropriate Depositary procedures (if the Note is represented by Global Note),
(B) the portion of the principal amount of the Note which the Holder will
deliver to be repurchased, which portion must be in principal amounts of $1,000
or an integral multiple of $1,000 (provided that the remaining
principal amount of Notes not subject to repurchase must be in an integral
multiple of $1,000) and (C) that such Note shall be repurchased as of the
Repurchase Date pursuant to the terms and conditions

 26
 

specified in the Note and
in this Indenture; together with (ii) such Notes duly endorsed for transfer (if
the Note if certificated) or book entry transfer of such Note (if such Note is
represented by a Global Note). The delivery of such Note to the Paying Agent
with, or at any time after delivery of, the Repurchase Notice (together with
all necessary endorsements) at the office of the Paying Agent shall be a
condition to the receipt by the Holder of the repurchase price therefore; provided, however, that such repurchase
price shall be so paid pursuant to this Section 3.06 only if the Notes so
delivered to the Paying Agent shall conform in all respects to the description
thereof in the Repurchase Notice. All questions as to the validity, eligibility
(including time of receipt) and acceptance of any Note for repurchase shall be
determined by the Issuer, whose determination shall be final and binding absent
manifest error.

(d)        The Issuer, if so requested, shall
repurchase from the Holder thereof, pursuant to this Section 3.06, a portion of
a Note, if the principal amount of such portion is $1,000 or an integral
multiple of $1,000. Provisions of this Indenture that apply to the repurchase
of all of a Note also apply to the repurchase of such portion of such Note.

(e)        Notwithstanding the foregoing, no Notes
may be repurchased by the Issuer pursuant to this Section 3.06 if the principal
amount of the Notes has been accelerated, and such acceleration has not been
rescinded or cured, on or prior to the relevant Repurchase Date (except in the
case of an acceleration resulting from a default by the Issuer in the payment
of the repurchase price pursuant to this Section 3.06 with respect to the Notes
to be repurchased).

(f)         The Paying Agent shall promptly notify
the Issuer of the receipt by it of any Repurchase Notice or written notice of
withdrawal thereof.

(g)        The Issuer may arrange for a third party
to purchase any Notes (provided that the Trustee is so notified by Issuer
promptly) for which the Issuer receives a valid Repurchase Notice that is not
withdrawn, in the manner and otherwise in compliance with the requirements set
forth herein. If a third party purchases any Notes under these circumstances,
interest will continue to accrue on those Notes and such Notes will continue to
be outstanding after the Repurchase Date. The third party subsequently may
resell such purchased Notes to other investors.

Any repurchase by
the Issuer contemplated pursuant to the provisions of this Section 3.06 shall
be consummated by the delivery of the consideration to be received by the
Holder (i) on the Repurchase Date if the book-entry transfer or delivery of the
Notes to the Paying Agent is effected prior to the close of business on the
Business Day prior to the Repurchase Date, and (ii) if delivered later, within
two (2) Business Days following the time of the book-entry transfer or delivery
of the Note. Payment of the repurchase price for a Note for which a Repurchase
Notice has been delivered and not withdrawn is conditioned upon book-entry
transfer or delivery of the Notes, together with necessary endorsements, to the
Paying Agent.

Section 3.07. Issuer Repurchase Notice. (a) The Issuer
Repurchase Notice, as provided in Section 3.07(b), shall be given to Holders in
the event of a Designated Event,

 27
 

on or before the tenth
calendar day after the occurrence of such a Designated Event as provided in
Section 3.05(b) or on or before the twentieth (20th) Business Day prior to each Repurchase
Date as provided in Section 3.06(b) (in either case, the “Issuer Repurchase Notice Date”).

(b)         In connection with any repurchase of
Notes, the Issuer shall, on the applicable Issuer Repurchase Notice Date, give
written notice to Holders (with a copy to the Trustee and the Paying Agent)
setting forth information specified in this Section (in either case, the “Issuer Repurchase
Notice”).

Each Issuer
Repurchase Notice shall:

(i)            state the repurchase price, and the
Designated Event Repurchase Date or the Repurchase Date to which the relevant
Issuer Repurchase Notice relates;

(ii)           state, if applicable, the
circumstances constituting the Designated Event;

(iii)          state that Holders must exercise their
right to elect to repurchase prior to 5:00 p.m., New York City time, on the
second Business Day immediately prior to the Repurchase Date or the second
Business Day immediately prior to the Designated Event Repurchase Date, as the
case may be;

(iv)          include a form of Repurchase Notice or
Designated Event Repurchase Notice, if applicable;

(v)           state the name and address of the
Trustee, any Paying Agent and, if applicable, the Exchange Agent;

(vi)          state that Notes must be surrendered
to the Paying Agent to collect the repurchase price;

(vii)         state that a Holder may withdraw its
Repurchase Notice or the Designated Event Repurchase Notice, as the case may
be, at any time prior to 5:00 p.m., New York City time, on the Business Day
immediately prior to the Repurchase Date, or on the Business Day immediately
prior to the Designated Event Repurchase Date, as the case may be, by
delivering a valid written notice of withdrawal in accordance with Section
3.08;

(viii)        if the Notes are then exchangeable pursuant
to Article 13, state that Notes as to which a Repurchase Notice or the
Designated Event Repurchase Notice, as the case may be, has been given may be
exchanged only if the Repurchase Notice or Designated Event Repurchase Notice,
as the case may be, is withdrawn in accordance with the terms of this
Indenture;

 28

(ix)           state the amount of interest accrued
and unpaid per $1,000 principal amount of
Notes to, but excluding, the Designated Event Repurchase Date or
Repurchase Date, as the case may be;

(x)            state that, unless the Issuer
defaults in making payment of the repurchase price, interest on Notes covered
by any Repurchase Notice or Designated Event
Repurchase Notice, as the case may be, shall cease to accrue on and
after the Repurchase Date or the Designated Event Repurchase Date, as the case
may be;

(xi)           state the CUSIP number of the Notes,
if CUSIP numbers are then in use; and

(xii)          state the procedures for withdrawing a
Repurchase Notice or Designated Event
Repurchase Notice, as the case may be, including a form of notice of
withdrawal (as specified in Section 3.08).

An Issuer Repurchase Notice may be given by the Issuer
or, at the Issuer’s request, the Trustee shall give such Issuer Repurchase
Notice in the Issuer’s name and at the Issuer’s expense; provided that the text of the Issuer
Repurchase Notice shall be prepared by the Issuer.

If any of the Notes is
represented by a Global Note, then the Issuer will modify such Issuer
Repurchase Notice to the extent necessary to accord with the applicable
procedures of the Depositary that apply to the repurchase of Global Notes.

(c)         The
Issuer will, to the extent applicable, comply with the provisions of Rule
13e-4 and Rule 14e-1 (or any successor provision) under the Exchange Act that
may be applicable at the time of the repurchase of the Notes, file the related
Schedule TO (or any successor schedule, form or report) or any other schedule
required under the Exchange Act and comply with all other applicable federal
and state securities laws in connection with the repurchase of the Notes.

Section 3.08. Efect
of Repurchase Notice; Withdrawal. Upon receipt by the Paying Agent
of the Repurchase Notice or Designated Event Repurchase Notice, as the case may
be, the Holder of the Note in respect of which such Repurchase Notice or
Designated Event Repurchase Notice, as the case may be, was given shall (unless
such Repurchase Notice or Designated Event
Repurchase Notice, as the case may be, is validly withdrawn in
accordance with this Section 3.08) thereafter be entitled to receive solely the
repurchase price with respect to such Note. Such repurchase price shall be paid
to such Holder, within two (2) Business Days
following the later of (x) the Repurchase Date or the Designated Event
Repurchase Date, as the case may be, with respect to such Note (provided the
Holder has satisfied the conditions in Section 3.05 or Section 3.06, as
applicable) and (y) the time of book-entry transfer or delivery of such Note to
the Paying Agent by the Holder thereof in the manner required by Section 3.05
or Section 3.06.

Notes in respect of which a Repurchase Notice or
Designated Event Repurchase Notice, as the case may be, has been given by the
Holder thereof may not be exchanged

 29
 

pursuant to Article 13 hereof on or after the date of
the delivery of such Repurchase Notice or Designated Event Repurchase Notice,
as the case may be, unless such Repurchase
Notice or Designated Event Repurchase Notice, as the case may be, has first
been validly withdrawn.

A Repurchase Notice or Designated
Event Repurchase Notice, as the case may be, may be withdrawn by means
of a written notice of withdrawal delivered to the office of the Paying Agent
at any time prior to 5:00 p.m., New York City time, on the Business Day
immediately prior to the Designated Event Repurchase Date, or on the Business
Day immediately prior to the Repurchase Date, as the case may be, specifying:

(a)          the
name of the Holder;

(b)         the certificate number(s) of all
withdrawn Notes in certificated form or that the notice of withdrawal complies
with appropriate Depositary procedures with respect to all withdrawn Notes
represented by a Global Note;

(c)          the principal amount of Notes with
respect to which such notice of withdrawal
is being submitted, which must be an integral multiple of $1,000; and

(d)         the principal amount of Notes, if any,
that remains subject to the original Repurchase
Notice or Designated Event Repurchase Notice, as the case may be, and that
has been or will be delivered for repurchase by the Issuer, which must be an
integral multiple of $1,000.

If a Repurchase Notice or Designated Event Repurchase
Notice, as the case may be, is properly
withdrawn, the Issuer shall not be obligated to repurchase the Notes listed
in such Repurchase Notice or Designated Event Repurchase Notice, as the case
may be.

Section 3.09. Deposit of Repurchase Price. (a) Prior to 11:00
a.m., New York City time, on the Designated Event Repurchase Date or the
Repurchase Date, the Issuer shall deposit with the Paying Agent or, if the
Issuer is acting as the Paying Agent, shall segregate and hold in trust as
provided in Section 4.04 an amount of cash (in immediately available funds if
deposited on the Designated Event Repurchase Date or the Repurchase Date, as the case may be), sufficient to pay the
aggregate repurchase price of all the Notes  or portions thereof that are to be repurchased as of the Designated
Event Repurchase Date or the Repurchase Date, as the case may be.

(b)         If on the Designated Event Repurchase
Date or the Repurchase Date the Paying Agent holds money sufficient to pay the
repurchase price of the Notes that Holders have elected to require the Is suer
to repurchase in accordance with Section 3.05 or Section 3.06, as the case may
be, then, on the Designated Event Repurchase Date or the Repurchase Date, as the case may be, such Notes will cease to be
outstanding, interest on such Notes will cease to accrue and all other
rights of the Holders of such Notes will terminate, other than the right to
receive the repurchase price upon delivery or book-entry transfer of the Note.
This will be the case whether or not book-entry transfer of the Note has been
made or the Note has been delivered to the Paying Agent.

 30
 

Section 3.10. Notes
Repurchased in Part. Upon presentation of any Note repurchased only
in part, the Is suer shall execute and the Trustee shall authenticate and make available for delivery to the Holder thereof,
at the expense of the Issuer, a new Note or Notes in aggregate principal
amount equal to the unrepurchased portion of the Notes presented (provided that
the unrepurchased portion of the Notes must be in an integral multiple of
$1,000).

Section 3.11. Repayment
to the Issuer. Subject to Section 11.04, the Paying Agent shall return to the Is suer any cash that
remains unclaimed, together with interest, if any, thereon, held by them
for the payment of the repurchase price; provided
that to the extent that the aggregate amount of cash deposited by
the Issuer pursuant to Section 3.09 exceeds the aggregate repurchase price of
the Notes or portions thereof which the Is suer is obligated to repurchase as
of the Designated Event Repurchase Date or the Repurchase Date, as the case may
be, then, unless otherwise agreed in writing with the Issuer, promptly after the second Business Day following
the Designated Event Repurchase Date or the Repurchase Date, as the case
may be, the Paying Agent shall return any such excess to the Issuer, together
with interest, if any, thereon.

ARTICLE 4

PARTICULAR COVENANTS OF THE ISSUER

Section 4.01. Payment
of Principal, Premium and Interest. The Issuer covenants and agrees that it will duly and punctually pay or
cause to be paid when due the principal of (including the Redemption
Price upon redemption or the repurchase price upon repurchase, in each case
pursuant to Article 3), and premium, if any, and interest on each of the Notes
at the places, at the respective times and in the manner provided herein and in
the Notes.

Section 4.02. Maintenance
of Office or Agency. The Issuer will maintain an office or agency
where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or for
exchange, redemption or repurchase and where notices and demands to or
upon the Issuer in respect of the Notes and this Indenture may be served. As of
the date of this Indenture, such office shall be the Corporate Trust Office
and, at any other time, at such other address as the Trustee may designate from
time to time by notice to the Issuer. The Issuer will give prompt written
notice to the Trustee of the location, and any change in the location, of such
office or agency not designated or appointed by the Trustee. If at any time the
Issuer 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.

The Issuer may also from time to time designate
co-registrars and one or more offices or
agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations. The Issuer will
give prompt 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.

 31
 

The
Issuer hereby initially designates the Trustee as Paying Agent, Note Registrar,
Custodian and Exchange Agent and the Corporate Trust Office shall be considered
as one such office or agency of the Issuer for each of the aforesaid purposes.

Section 4.03. Appointments
to Fill Vacancies in Trustee’s Ofice. The Issuer, whenever necessary to avoid or fill a vacancy in
the office of Trustee, will appoint, upon the terms and conditions and
otherwise as provided in Section 7.10, a Trustee, so that there shall at all
times be a Trustee hereunder.

Section 4.04. Provisions
as to Paying Agent. (a) If the Issuer shall appoint a Paying Agent other than the Trustee, or if the
Trustee shall appoint such a Paying Agent, the Issuer will cause such
Paying Agent to execute and deliver to the Trustee an instrument in which such
agent shall agree with the Trustee, subject to the provisions of this Section
4.04:

(i)             that it will hold all sums held by
it as such agent for the payment of the principal of and premium, if any, or
interest on the Notes (whether such sums have been paid to it by the Issuer or by
any other obligor on the Notes) in trust for the benefit of the Holders of the
Notes;

(ii)            that it will give the Trustee notice
of any failure by the Issuer (or by any other obligor on the Notes) to make any
payment of the principal of and premium, if any,
or interest on the Notes when the same shall be due and payable; and

(iii)           that at any time during the
continuance of an Event of Default, upon
request of the Trustee, it will forthwith pay to the Trustee all sums so held
in trust.

The Issuer shall, on or before each due date of the
principal of, premium, if any, or interest on the Notes, deposit with the
Paying Agent a sum (in funds which are immediately
available on the due date for such payment) sufficient to pay such principal,
premium, if any, or interest, and (unless
such Paying Agent is the Trustee) the Issuer will promptly notify the
Trustee of any failure to take such action; provided
that if such deposit is made on the due date, such deposit shall be
received by the Paying Agent by 11:00 a.m. New York City time, on such date.

(b)         If the Issuer shall act as its own
Paying Agent, it will, on or before each due date of the principal of, premium,
if any, or interest on the Notes, set aside, segregate and hold in trust for
the benefit of the Holders of the Notes a sum sufficient to pay such principal,
premium, if any, and interest so becoming due and will promptly notify the
Trustee of any failure to take such action and of any failure by the Is suer
(or any other obligor under the Notes) to make any payment of the principal of,
premium, if any, or interest on the Notes when the same shall become due and
payable.

(c)          Anything in this Section 4.04 to the
contrary notwithstanding, the Issuer may, at any time, for the purpose of
obtaining a satisfaction and discharge of this Indenture, or for any other
reason, pay or cause to be paid to the Trustee all sums held in

 32
 

trust by the Issuer or any Paying Agent hereunder as required by this
Section 4.04, such sums to be held by the Trustee upon the trusts herein
contained and upon such payment by the
Issuer or any Paying Agent to the Trustee, the Issuer or such Paying Agent
shall be released from all further liability with respect to such sums.

(d)        Anything in this Section 4.04 to the
contrary notwithstanding, the agreement to
hold sums in trust as provided in this Section 4.04 is subject to Section
11.02 and Section 11.03.

The Trustee shall not be responsible for the actions
of any other Paying Agents (including the Issuer if acting as its own Paying
Agent) and shall have no control of any funds held by such other Paying Agents.

Section 4.05. Existence.
Subject to Article 10, each of the Issuer and the Guarantor will do
or cause to be done all things necessary to preserve and keep in full force and
effect its existence and rights (charter and statutory); provided that neither the Issuer nor the
Guarantor shall be required to preserve any such right if the Issuer or the
Guarantor, as applicable, shall determine that the preservation thereof is no
longer desirable in the conduct of the
business of the Issuer or the Guarantor, as applicable, and that the
loss thereof is not disadvantageous in any material respect to the Noteholders.

Section 4.06. Rule
144A Information Requirement. If so required by Rule 144A the Guarantor
and the Issuer will promptly furnish to the Holders, beneficial owners and
prospective purchasers of the Notes and of any Common Stock delivered upon
exchange of the Notes, upon their request,
the information required to be delivered pursuant to Rule 144A(d)(4) to
facilitate the resale of the Notes and the Common Stock pursuant to Rule 144A.

Section 4.07. Stay,
Extension and Usury Laws. The Issuer covenants (to the extent that
it may lawfully do so) that it shall not at any time insist upon, plead, or in
any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law or other law
which would prohibit or forgive the Issuer from paying all or any portion of
the principal, premium, if any, or interest on the Notes 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 the Issuer (to
the extent it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not, by resort to any
such law, hinder, delay or impede the 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 4.08. Compliance
Certificate. Within one hundred twenty (120) calendar days after the
end of each fiscal year of the Is suer, the Is suer and the Guarantor shall
deliver to the Trustee a certificate signed by any of the principal executive
officer, principal financial officer or principal accounting officer of the
Issuer and the Guarantor, as the case may be, stating whether or not the signer
has knowledge of any default under this Indenture, and, if so, specifying each
default and the nature and the status thereof.

 33
 

The Issuer will deliver to the Trustee, promptly
within five business days upon becoming aware of (i) any default in the
performance or observance of any covenant, agreement or condition contained in
this Indenture, including a default related to Section 6.01(e), or (ii) any
Event of Default, an Officers’ Certificate specifying with particularity such
default or Event of Default and further stating what action the Issuer has
taken, is taking or proposes to take with respect thereto.

Any notice required to be given
under this Section 4.08 shall be delivered to a Responsible Officer of
the Trustee at its Corporate Trust Office.

Section 4.09. Additional
Interest Notice. In the event that the Issuer is required to pay
Additional Interest to Holders of Notes pursuant to Section 6.01 in the event
of a Reporting Event of Default or the
Registration Rights Agreement, the Issuer will provide written notice (“Additional
Interest Notice”) to the Trustee of its obligation to pay
Additional Interest no later than fifteen (15) calendar days prior to the
proposed interest payment date for
Additional Interest, and the Additional Interest Notice shall set forth the
amount of Additional Interest to be paid by
the Issuer on such interest payment date. The Trustee shall not at any
time be under any duty or responsibility to any Holder of Notes to determine the Additional Interest, or with
respect to the nature, extent or calculation of the amount of Additional
Interest when made, or with respect to the method employed in such calculation
of the Additional Interest.

ARTICLE 5

NOTEHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

Section 5.01. Noteholders’
Lists. The Issuer covenants and agrees that it will furnish or cause
to be furnished to the Trustee, semiannually, not more than fifteen (15)
calendar days after each March 30 and September 30 of each year beginning with
September 30, 2007, and at such other times as the Trustee may reasonably
request in writing, within thirty (30)
calendar days after receipt by the Issuer of any such request (or such
lesser time as the Trustee may reasonably request in order to enable it to
timely provide any notice to be provided by
it hereunder), a list in such form as the Trustee may reasonably require
of the names and addresses of the Holders of Notes as of a date not more than
fifteen (15) calendar days (or such other date as the Trustee may reasonably
request in order to so provide any such notices) prior to the time such
information is furnished, except that no such list need be furnished by the
Issuer to the Trustee so long as the Trustee is acting as the sole Note
Registrar.

Section 5.02. Preservation
and Disclosure of Lists. (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the
Holders of Notes contained in the most recent list furnished to it as provided in Section 5.01 or maintained by the
Trustee in its capacity as Note Registrar or co-registrar in respect of
the Notes, if so acting. The Trustee may destroy any list furnished to it as
provided in Section 5.01 upon receipt of a new list so furnished.

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(b)         The rights of Noteholders to
communicate with other Holders of Notes with respect to their rights under this
Indenture or under the Notes, and the corresponding rights and duties of the
Trustee, shall be as provided by the Trust Indenture Act.

(c)          Every Noteholder agrees with the
Issuer and the Trustee that neither the Issuer
nor the Trustee nor any agent of either of them shall be held accountable by
reason of any disclosure of information as to names and addresses of
Holders of Notes made pursuant to the Trust Indenture Act.

Section 5.03. Reports
by Trustee. (a) Within sixty (60) calendar days after March 30 of
each year beginning with March 30, 2008, the Trustee shall transmit to Holders of Notes such reports dated as of March 30
of the year in which such reports are made concerning the Trustee and
its actions under this Indenture as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant thereto. In the
event that no events have occurred under the applicable sections of the Trust
Indenture Act the Trustee shall be under no duty or obligation to provide such
reports.

(b)         A copy of such report shall, at the
time of such transmission to Holders of Notes,
be filed by the Trustee with each stock exchange and automated quotation
system, if any, upon which the Notes are listed and with the Commission.
The Issuer will promptly notify the Trustee in writing if the Notes are listed
on any stock exchange or automated quotation system or delisted therefrom.

Section 5.04. Reports
by Issuer or Guarantor. Any document or report that the Guarantor is
required to file with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act shall be filed by the Issuer or the Guarantor with the Trustee
within thirty (30) days after the same is required to be filed with the
Commission. Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Issuers’ compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officers’
Certificate). The Guarantor and Issuer shall be
deemed to have complied with their obligations under this Section 5.04 if they
deliver such document or report by email at the email address designated
by the Trustee.

ARTICLE 6

REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

Section 6.01. Events
of Default. In case one or more of the following (“Events of
Default”) (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary
or be effected by operation of law or pursuant to any judgment, decree
or order of any court or any order, rule or regulation of any administrative or
governmental body) shall have occurred and be continuing:

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(a)          default for thirty (30) days in the
payment of any installment of interest under the Notes; or

(b)         default in the payment of the principal
amount or any repurchase price or Redemption Price due with respect to the
Notes, when the same becomes due and payable; or

(c)          the Issuer fails to deliver cash,
Common Stock or a combination of cash and Common Stock within fifteen (15) days
after the due date upon an exchange of Notes pursuant to Article 13, together
with any cash due in lieu of fractional shares; or

(d)         the Issuer fails to comply with any of
the Issuers other agreements contained in the Notes or this Indenture, other
than an agreement solely for the benefit of a series of debt securities other
than the Notes, upon receipt by the Issuer of notice of such default by the
Trustee or by Holders of not less than 25% in aggregate principal amount of the
Notes then outstanding and the Issuer fails to cure (or obtain a waiver of)
such default within sixty (60) days after the Issuer receives such notice; or

(e)          failure to pay any indebtedness for
money borrowed by the Issuer, the Guarantor, any Subsidiary in which the Issuer
has invested at least $30,000,000 in capital (a “Significant Subsidiary”)
or any entity in which the Issuer is the general partner in an
outstanding principal amount in excess of $30,000,000 at final maturity or upon
acceleration after the expiration of any
applicable grace period, which indebtedness is not discharged, or such
default in payment or acceleration is not cured or rescinded, within thirty (30)
days after written notice to the Issuer from the Trustee (or to the Issuer and
the Trustee from Holders of at least 25% in principal amount of the outstanding
Notes); or

(f)          the Issuer fails to provide on a
timely basis an Issuer Repurchase Notice after
the occurrence of a Designated Event as provided in Section 3.05(b) and Section
3.07(b); or

(g)         the Issuer, the Guarantor or any of its
Significant Subsidiaries pursuant to or under or within meaning of any
Bankruptcy Law:

(i)            commences a voluntary case or
proceeding seeking liquidation, reorganization or other relief with respect to
the Issuer, the Guarantor or a Significant Subsidiary or its debts or seeking
the appointment of a trustee, receiver,
liquidator, custodian or other similar official of the Is suer, the Guarantor
or a Significant Subsidiary or any
substantial part of the property of the Issuer, the Guarantor or a
Significant Subsidiary; or

(ii)           consents
to any such relief or to the appointment of or taking possession by any
such official in an involuntary case or other proceeding commenced against the
Issuer, the Guarantor or a Significant Subsidiary; or

(iii)          consents
to the appointment of a custodian of it or for all or substantially of
its property; or

 36
 

(iv)          makes a general assignment for the benefit of creditors; or

(h)         an involuntary case or other proceeding
shall be commenced against the Issuer, the Guarantor or any of its Significant
Subsidiaries seeking liquidation, reorganization or other relief with respect
to the Issuer, the Guarantor or a Significant Subsidiary or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of the Issuer, the Guarantor or a Significant Subsidiary or
any substantial part of the property of the Issuer, the Guarantor or a
Significant Subsidiary, and such involuntary case or other proceeding shall
remain undismissed and unstayed for a period of thirty (30) calendar days; or

(i)           a court of competent jurisdiction
enters an order or decree under any Bankruptcy Law that:

(i)             is for relief against the Issuer, the Guarantor
or any of its Significant Subsidiaries in an involuntary case or
proceeding; or

(ii)            appoints a trustee, receiver,
liquidator, custodian or other similar official
of the Issuer, the Guarantor or a Significant Subsidiary or any substantial
part of the property of the Issuer, the Guarantor or a Significant Subsidiary;
or

(iii)           orders the liquidation of the Issuer, the
Guarantor or a Significant Subsidiary; and, in each case in this clause
(i), the order or decree remains unstayed and in effect for thirty (30)
calendar days;

then, and in each and every such case (other than an
Event of Default specified in Section 6.01(g), 6.01(h) and 6.01(i) with respect
to the Issuer), unless the principal of all of the Notes shall have already
become due and payable, either the Trustee or the Holders of at least
twenty-five percent (25%) in aggregate principal amount of the Notes then outstanding, by notice in writing to the Issuer
(and to the Trustee if given by Noteholders), may declare the principal
amount of and premium, if any, and interest accrued and unpaid on all the Notes
to be immediately due and payable, and upon any such declaration the same shall
be immediately due and payable.

If an Event of Default specified
in Section 6.01(g), 6.01(h) or 6.01(i) occurs with respect to the
Issuer, the principal amount of and premium, if any, and interest accrued and
unpaid on all the Notes shall be immediately and automatically due and payable
without necessity of further action.

If, at any time after the principal amount of and
premium, if any, and interest on the Notes shall have been so declared due and
payable, and before any judgment or decree for the payment of the monies due
shall have been obtained or entered as hereinafter provided, Holders of a
majority in aggregate principal amount of the Notes then outstanding on behalf
of the Holders of all of the Notes then outstanding, by written notice to the
Issuer and to the Trustee, may waive all defaults or Events of Default and rescind and annul such declaration and its
consequences, subject in all respects to Section 6.07, if: (a) the
rescission would not conflict with any judgment or decree of a court of

 37
 

competent jurisdiction; (b) all Events of Default, other than the
nonpayment of the principal amount and any accrued and unpaid interest that
have become due solely because of such acceleration, have been cured or waived;
(c) interest on overdue installments of interest (to the extent that payment of
such interest is lawful) and on overdue principal, which has become due
otherwise than by such declaration of acceleration, has been paid; and (d) the
Issuer has paid the Trustee its reasonable compensation and reimbursed the
Trustee for its expenses, disbursements and advances pursuant to Section 7.06.
No such rescission and annulment shall extend to or shall affect any subsequent
default or Event of Default, or shall impair any right consequent thereon. The
Issuer shall notify in writing a Responsible Officer of the Trustee, promptly
upon becoming aware thereof, of any Event of Default, as provided in Section
4.08.

In case the Trustee shall have proceeded to enforce
any right under this Indenture and such proceedings shall have been
discontinued or abandoned because of such waiver or rescission and annulment or
for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Issuer, the
Holders of Notes, and the Trustee shall be restored respectively to
their several positions and rights hereunder, and all rights, remedies and
powers of the Issuer, the Holders of Notes, and the Trustee shall continue as
though no such proceeding had been taken.

Notwithstanding the foregoing, to
the extent the Issuer so elects by written notice to the Trustee and the
Noteholders not later than the last day of the applicable 60-day period
referred to in Section 6.01(d), the sole remedy for an Event of Default (each a
“Reporting Event of Default”) relating to the failure to file any
documents or reports that the Guarantor is
required to file with the Commission pursuant to Section 13 or 15(d) of
the Exchange Act, the Issuers failure to comply with Section 5.04, or any failure
to comply with any requirements the Issuer may be deemed to have pursuant to
Section 31 4(a)( 1) of the Trust Indenture Act, shall for the first 180 days
after the occurrence of such a Reporting Event of Default consist exclusively
of the right to receive, for so long as such Reporting Event of Default exists,
additional interest (“Additional Interest”) on the Notes
equal to 0.25% per annum of the principal amount of the Notes outstanding. Any Additional Interest due pursuant to this
Section 6.01 shall be payable in cash on each interest payment date
during or, if such 180-day period ends or such Reporting Event of Default is
waived or cured on a date that is not an interest payment date, on the interest
payment date next succeeding such 180-day period to Holders entitled to receive
interest on the relevant record date for such interest payment date. If any
Notes cease to be outstanding during any period for which such Additional
Interest is accruing, the Issuer shall prorate the Additional Interest payable
with respect to such Notes. The Additional Interest will be in addition to any
Additional Interest that may accrue as Registration Default Damages pursuant to
the Registration Rights Agreement; provided  that in no event shall Additional Interest hereunder and
thereunder accrue at a rate, in the aggregate,  in excess of 0.50% per annum regardless of the number of events or
circumstances giving rise to the requirement to pay such Additional
Interest in connection with Reporting Events of Default or as Registration
Default Damages. On the 180th day after such Reporting Event of Default (if
such Reporting Event of Default is not cured or waived prior to such 180th
day), the Notes shall be subject to acceleration as provided in this Section
6.01.

 

 38

The preceding
paragraph shall not affect the rights of Holders of the Notes in the event of
the occurrence of any other Event of Default. In the event the Issuer does not
elect to pay the Additional Interest upon a Reporting Event of Default in
accordance with the preceding paragraph, the Notes will be subject to
acceleration as provided in this Section 6.01.

Section 6.02. Payments of Notes on Default; Suit Therefor. The Issuer
covenants that in the case of an Event of Default pursuant to Section 6.01(a)
or 6.01(b), upon demand of the Trustee, the Issuer will pay to the Trustee, for
the benefit of the Holders of the Notes, (i) the whole amount that then shall
be due and payable on all such Notes for principal and premium, if any, or
interest, as the case may be, with interest upon the overdue principal and
premium, if any, and (to the extent that payment of such interest is
enforceable under applicable law) upon the overdue installments of accrued and
unpaid interest at the rate borne by the Notes, plus 1%, from the required
payment date and, (ii) in addition thereto, any amounts due the Trustee under
Section 7.06. Until such demand by the Trustee, the Issuer may pay the
principal of and premium, if any, and interest on the Notes to the registered
Holders, whether or not the Notes are overdue.

In case the Issuer
shall fail forthwith to pay such amounts upon such demand, the Trustee, in its
own name and as trustee of an express trust, shall be entitled and empowered to
institute any actions or proceedings at law or in equity for the collection of
the sums so due and unpaid, and may prosecute any such action or proceeding to
judgment or final decree, and may enforce any such judgment or final decree
against the Issuer or any other obligor on the Notes and collect in the manner
provided by law out of the property of the Issuer or any other obligor on the
Notes wherever situated the monies adjudged or decreed to be payable.

In case there
shall be pending proceedings for the bankruptcy or for the reorganization of the
Issuer or any other obligor on the Notes under any Bankruptcy Law, or any other
applicable law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Issuer or such other obligor, the
property of the Issuer or such other obligor, or in the case of any other
judicial proceedings relative to the Issuer or such other obligor upon the
Notes, or to the creditors or property of the Issuer or such other obligor, the
Trustee, irrespective of whether the principal of the Notes shall then be due
and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand pursuant to the
provisions of this Section 6.02, shall be entitled and empowered, by
intervention in such proceedings or otherwise,
to file and prove a claim or claims for the whole amount of principal, premium,
if any, accrued and unpaid interest in respect of the Notes, and, in case of
any judicial proceedings, to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee and of the Noteholders allowed in such judicial proceedings relative to
the Issuer or any other obligor on the Notes, its or their creditors, or its or
their property, and to collect and receive any monies or other property payable
or deliverable on any such claims, and to distribute the same after the
deduction of any amounts due the Trustee under Section 7.06, and to take any
other action with respect to such claims, including participating as a member
of any

 39
 

official committee of
creditors, as it reasonably deems necessary or advisable, unless prohibited by
law or applicable regulations, and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
custodian or similar official is hereby authorized by each of the
Noteholders 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
Noteholders, to pay to the Trustee any amount due it for reasonable
compensation, expenses, advances and disbursements, including counsel fees and
expenses incurred by it up to the date of such distribution. To the extent that
such payment of reasonable compensation, expenses, advances and disbursements
out of the estate in any such proceedings 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, monies, securities and other property
which the Holders of the Notes may be entitled to receive in such proceedings,
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.

All rights of
action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Trustee without
the possession of any of the Notes, or the production thereof at any
trial or other proceeding relative thereto, and any such suit or proceeding instituted
by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders of the Notes.

In any proceedings brought by the Trustee (and in any proceedings
involving the  interpretation of any
provision of this Indenture to which the Trustee shall be a party) the
Trustee shall be held to represent all the Holders of the Notes, and it shall
not be necessary to make any Holders of the Notes parties to any such
proceedings.

Section 6.03. Application of Monies Collected by Trustee. Any monies
collected by the Trustee pursuant to this Article 6, shall be applied, in the
following order, at the date or dates fixed
by the Trustee for the distribution of such monies, upon presentation  of the several Notes, and stamping thereon the
payment, if only partially paid, and upon surrender thereof, if fully
paid:

FIRST: To the
payment of all amounts due the Trustee under Section 7.06;

SECOND: In case
the principal of the outstanding Notes shall not have become due and be unpaid,
to the payment of accrued and unpaid interest, if any, on the Notes in default
in the order of the maturity of the installments of such interest, with
interest (to the extent that such interest
has been collected by the Trustee) as provided in Section 6.02 upon the
overdue installments of interest at the annual rate of 1% above the then
applicable interest rate, such payments to be made ratably to the Persons
entitled thereto;

THIRD: In case the principal of the outstanding Notes shall have become
due, by declaration or otherwise, and be unpaid to the payment of the
whole amount then owing and unpaid upon the Notes for principal and premium, if
any, and interest, with interest on the overdue principal and premium, if any,
and (to the extent that such interest has been collected by the Trustee) upon
overdue installments of accrued and unpaid interest,

 40
 

as provided in Section
6.02, and in case such monies shall be insufficient to pay in full the whole
amounts so due and unpaid upon the Notes, then to the payment of such principal
and premium, if any, and interest without preference or priority of principal
and premium, if any, over interest, or of
interest over principal and premium, if any, or of any installment of
interest over any other installment of interest, or of any Note over any other
Note, ratably to the aggregate of such principal and premium, if any, and
accrued and unpaid interest; and

FOURTH: To the payment of the remainder, if any, to the Issuer or any
other Person lawfully entitled thereto.

Section 6.04. Proceedings by Noteholders.  No Holder of any Note shall have any
right by virtue of or by reference to any provision of this Indenture to
institute any suit, action or proceeding in equity or at law upon or under or
with respect to this Indenture, or for the appointment of a receiver, trustee,
liquidator, custodian or other similar official, or for any other remedy
hereunder, except in the case of a default in the payment of principal,
premium, if any, or interest on the Notes, unless (a) such Holder previously
shall have given to the Trustee written notice of an Event of Default and of
the continuance thereof, as hereinbefore provided, (b) the Holders of at least
twenty-five percent (25%) in aggregate principal amount of the Notes then
outstanding shall have made written request upon the Trustee to institute such
action, suit or proceeding in its own name as Trustee hereunder and shall have
offered to the Trustee such reasonable security or indemnity as it may require
against the costs, liabilities or expenses to be incurred therein or thereby,
(c) the Trustee for sixty (60) calendar days after its receipt of such notice,
request and offer of indemnity, shall have neglected or refused to institute
any such action, suit or proceeding and (d) no direction inconsistent with such
written request shall have been given to the Trustee pursuant to Section 6.07;
it being understood and intended, and being expressly covenanted by the taker
and Holder of every Note with every other taker and Holder and the Trustee,
that no one or more Holders of Notes shall have any right in any manner
whatever by virtue of or by reference to any provision of this Indenture to
affect, disturb or prejudice the rights of any other Holder of Notes, or to
obtain or seek to obtain priority over or preference to any other such Holder,
or to enforce any right under this Indenture, except in the manner herein
provided and for the equal, ratable and
common benefit of all Holders of Notes (except as otherwise provided herein).
For the protection and enforcement of this Section 6.04, each and every Noteholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

Notwithstanding
any other provision of this Indenture and any provision of any Note, the right
of any Holder of any Note to receive payment of the principal of (including the
Redemption Price or repurchase price upon redemption or repurchase pursuant to
Article 3) and premium, if any, and accrued interest on such Note, on or after
the respective due dates expressed in such Note or in the event of redemption or
repurchase, or to institute suit for the enforcement of any such payment on or
after such respective dates against the Issuer
shall not be impaired or affected without the consent of such Holder.

 41
 

Anything contained
in this Indenture or the Notes to the contrary notwithstanding, the Holder of
any Note, without the consent of either the Trustee or the Holder of any other
Note, in its own behalf and for its own benefit, may enforce, and may institute
and maintain any proceeding suitable to enforce, its rights of exchange as
provided herein.

Section 6.05. Proceedings by Trustee. In case of an
Event of Default, the Trustee may, in its discretion, proceed to protect and
enforce the rights vested in it by this Indenture
by such appropriate judicial proceedings as are necessary to protect and
enforce any of such rights, either by suit in equity or by action at law
or by proceeding in bankruptcy or otherwise, whether for the specific
enforcement of any covenant or agreement contained in this Indenture or in aid
of the exercise of any power granted in this
Indenture, or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.

Section 6.06. Remedies Cumulative and Continuing. All
powers and remedies given by this Article 6 to the Trustee or to the
Noteholders shall, to the extent permitted by law, be deemed cumulative and not
exclusive of any thereof or of any other powers and remedies available to the
Trustee or the Holders of the Notes, by judicial proceedings or otherwise, to
enforce the performance or observance of the covenants and agreements contained
in this Indenture, and no delay or omission of the Trustee or of any Holder of
any of the Notes to exercise any right or power accruing upon any default or
Event of Default occurring and continuing as aforesaid shall impair any such
right or power, or shall be construed to be a waiver of any such default or any
acquiescence therein, and, subject to the provisions of Section 6.04, every
power and remedy given by this Article 6 or by law to the Trustee or to the
Noteholders may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by the Noteholders.

Section 6.07. Direction of Proceedings and Waiver of Defaults by
Majority of Noteholders. The Holders of not less than a majority in
aggregate principal amount of the Notes at the time outstanding shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
the Trustee; provided that (a)
such direction shall not be in conflict with any rule of law or with this
Indenture, (b) the Trustee may take any other action which is not inconsistent
with such direction, (c) the Trustee may decline to take any action that would benefit some Noteholders to
the detriment of other Noteholders and (d) the Trustee may decline to
take any action that would involve the Trustee in personal liability.

The Holders of a
majority in aggregate principal amount of the Notes at the time outstanding
may, on behalf of the Holders of all of the Notes, waive any past default or
Event of Default hereunder and its consequences except (i) a default in the payment of the principal of
(including the Redemption Price or repurchase price upon redemption or
repurchase pursuant to Article 3), premium, if any, or interest on the Notes,
(ii) a failure by the Issuer to exchange any Notes as required by this
Indenture, (iii) a default in the payment of the Redemption Price on the
Redemption Date pursuant to Article 3, (iv) a default in the payment of the
repurchase price on the Designated Event Repurchase Date or the Repurchase Date
pursuant to Article 3 or (v) a default in respect of a covenant or

 42
 

provisions
hereof which under Article 9 cannot be modified or amended without the
consent of the Holders of all Notes then outstanding.

Upon any such
waiver, the Issuer, the Trustee and the Holders of the Notes shall be restored to their former positions and rights
hereunder; but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon. Whenever
any default or Event of Default hereunder shall have been waived as permitted
by this Section 6.07, said default or Event of Default shall for all purposes
of the Notes and this Indenture be deemed to have been cured and to be not
continuing; but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon.

Section 6.08. Notice of Defaults. The Trustee shall,
within ninety (90) calendar days after a Responsible Officer of the Trustee has
knowledge of the occurrence of a default, deliver to all Noteholders, as the
names and addresses of such Holders appear upon
the Note Register, notice of all defaults known to a Responsible Officer,
unless such defaults shall have been cured or waived before the giving
of such notice; provided that
except in the case of default in the payment of the principal of (including the
Redemption Price or repurchase price upon redemption or repurchase pursuant to
Article 3), or interest on any of the Notes, the Trustee shall be protected in
withholding such notice if and so long as a trust committee and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interest of the Noteholders.

Section 6.09. Undertaking to Pay Costs. All parties to
this Indenture agree, and each Holder of any Note by its acceptance thereof
shall be deemed to have agreed, that any court may, in its discretion, require,
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
Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit and that such court may
in its discretion assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such
party litigant; provided that the
provisions of this Section 6.09 (to the extent permitted by law) shall not
apply to any suit instituted by the Trustee, to any suit instituted by any
Noteholder, or group of Noteholders, holding in the aggregate more than ten
percent in principal amount of the Notes at the time outstanding determined in
accordance with Section 8.04, or to any suit instituted by any Noteholder for
the enforcement of the payment of the principal of (including the Redemption
Price or repurchase price upon redemption or repurchase pursuant to Article 3),
or interest on any Note on or after the due date expressed in such Note or to
any suit for the enforcement of the right to exchange any Note in accordance
with the provisions of Article 13.

ARTICLE 7

THE TRUSTEE

Section 7.01. Duties and Responsibilities of Trustee. The
Trustee, prior to the occurrence of an Event
of Default and after the curing or waiver of all Events of Default

 43
 

which
may have occurred, undertakes to perform such duties and only such duties as
are specifically set forth in this Indenture. In case an Event of
Default has occurred (which has not been cured or waived), 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 their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of its own affairs.

No provision of
this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

(a)           prior to the occurrence of an Event
of Default and after the curing or waiving of all Events of Default which may
have occurred:

(i)            the
duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture and the Trust Indenture Act, and the Trustee shall
not be liable except for the performance of such duties and obligations as are specifically set forth in this
Indenture and no implied covenants  or
obligations shall be read into this Indenture and the Trust Indenture Act
against the Trustee; and

(ii)           in
the absence of bad faith and willful misconduct on the part of the Trustee, the Trustee may conclusively rely as
to the truth of the statements and the correctness of the opinions
expressed therein, upon any certificates or opinions furnished to the Trustee
and conforming to the requirements of this Indenture; but, in the case of any
such certificates or opinions which by any provisions hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to
examine the same to determine whether or not they conform to the requirements
of this Indenture;

(b)           the Trustee shall not be liable for
any error of judgment made in good faith by a Responsible Officer or Officers
of the Trustee, unless the Trustee was negligent in ascertaining the pertinent
facts;

(c)           the Trustee shall not be liable with
respect to any action taken or omitted to be
taken by it in good faith in accordance with the written direction of the
Holders of not less than a majority in principal amount of the Notes at
the time outstanding determined as provided in Section 8.04 relating to the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture;

(d)           whether or not therein provided,
every provision of this Indenture relating to
the conduct or affecting the liability of, or affording protection to, the
Trustee shall be subject to the provisions of this Section;

(e)           the Trustee shall not be liable in
respect of any payment (as to the correctness of amount, entitlement to receive
or any other matters relating to payment) or

 44
 

notice effected by the Issuer or
any Paying Agent (other than the Trustee) or any records maintained by
any co-registrar (other than the Trustee) with respect to the Notes;

(f)            if any party fails to deliver a
notice relating to an event the fact of which, pursuant to this Indenture,
requires notice to be sent to the Trustee, the Trustee may conclusively rely on
its failure to receive such notice as reason to act as if no such event
occurred unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless the Trustee has otherwise received written notice thereof;
and

(g)           the Trustee shall not be deemed to
have knowledge of any Event of Default hereunder unless a Responsible Officer
of the Trustee has actual knowledge thereof or unless the Trustee shall have
been notified in writing of such Event of Default by the Issuer or a Holder of
Notes.

None of the
provisions contained in this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers, if there is reasonable ground
for believing that the repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it.

Section 7.02. Reliance on Documents, Opinions, etc. Except as otherwise
provided in Section 7.01:

(a)           the Trustee may conclusively rely and
shall be protected in acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, bond, debenture,
Note, coupon or other paper or document (whether in its original or facsimile
form) believed by it in good faith to be genuine and to have been signed or
presented by the proper party or parties;

(b)           any request, direction, order or
demand of the Issuer mentioned herein shall be sufficiently evidenced by an
Officers’ Certificate (unless other evidence in respect thereof be herein
specifically prescribed); and any resolution of the Board of Directors may be
evidenced to the Trustee by a copy thereof certified by the Secretary or an
Assistant Secretary of the Guarantor or the General Partner;

(c)           the Trustee may consult with counsel
of its own selection and any advice or Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken or omitted
by it hereunder in good faith and in reliance on and in accordance with such
advice or Opinion of Counsel;

(d)           the Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request, order or direction of any of the Noteholders pursuant
to the provisions of this Indenture, unless such Noteholders shall have offered to the Trustee reasonable security or
indemnity reasonably satisfactory to it against the costs, expenses and
liabilities which may be incurred therein or thereby;

(e)           the Trustee shall not be bound to
make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice,

 45
 

request, direction, consent, order, bond, Note or other paper or
document, but the Trustee may make such
further inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Issuer, personally or by agent or attorney;

(f)            the Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or
by or through agents or attorneys and the Trustee shall not be responsible for
any misconduct or negligence on the part of any agent or attorney appointed by
it with due care hereunder;

(g)           the Trustee shall not be liable for
any action taken, suffered or omitted to be taken by it in good faith and
reasonably believed by it to be authorized or within the discretion or rights
or powers conferred upon it by this Indenture;

(h)           the rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation,
its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other Person employed to act
hereunder;

(i)            the Trustee may request that the
Issuer deliver an Officers’ Certificate setting forth the names of individuals
and/or titles of officers authorized at such time to take specified actions
pursuant to this Indenture, which Officers’ Certificate may be signed by any
person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate
previously delivered and not superseded; and

(j)            any permissive right or authority
granted to the Trustee shall not be construed as a mandatory duty.

Section 7.03. No Responsibility for Recitals, etc. The
recitals contained herein and in the Notes (except in the Trustees certificate
of authentication) shall be taken as the
statements of the Issuer, and the Trustee assumes no responsibility for the
correctness  of the same. The Trustee
makes no representations as to the validity or sufficiency of this
Indenture or of the Notes. The Trustee shall not be accountable for the use or
application by the Issuer of any Notes or the proceeds of any Notes
authenticated and delivered by the Trustee in conformity with the provisions of
this Indenture.

Section 7.04. Trustee, Paying Agents, Exchange Agents or Registrar
May Own Notes. The Trustee, any Paying Agent, the Exchange Agent or
Note Registrar, in its individual or any other capacity, may become the owner
or pledgee of Notes with the same rights it
would have if it were not Trustee, Paying Agent, Exchange Agent or Note
Registrar.

Section 7.05. Monies to Be Held in Trust. Subject to the
provisions of Section 11.02, all monies received by the Trustee shall, until
used or applied as herein provided, be held in trust for the purposes for which
they were received. Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required

 46
 

by law. Except as
otherwise provided herein, the Trustee shall be under no liability for interest on any money received by it hereunder
except as may be agreed in writing from time to time by the Issuer and
the Trustee.

Section 7.06. Compensation and Expenses of Trustee. The
Issuer covenants and agrees to pay to the Trustee from time to time, and the
Trustee shall be entitled to, such compensation
for all services rendered by it hereunder in any capacity (which shall not be
limited by any provision of law in regard to the compensation of a trustee of
an express trust) as mutually agreed to from time to time in writing between
the Issuer and the Trustee, and the Issuer will pay or reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances
reasonably incurred or made by the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the
reasonable expenses and disbursements of its counsel and of all Persons not
regularly in its employ) except any such expense, disbursement or advance as
may arise from its negligence, willful misconduct, recklessness or bad faith.
The Issuer also covenants to indemnify the Trustee and any predecessor Trustee
(or any officer, director or employee of the Trustee), in any capacity under
this Indenture and any authenticating agent for, and to hold them harmless
against, any and all loss, liability, damage, claim or reasonable expense
including taxes (other than taxes based on the income of the Trustee) incurred
without negligence, willful misconduct, recklessness or bad faith on the part
of the Trustee or such officers, directors, employees or authenticating agent,
as the case may be, and arising out of or in connection with the acceptance or administration of this trust or in
any other capacity hereunder, including the reasonable costs and
expenses of defending themselves against any claim (whether asserted by the
Issuer, any Holder or any other Person) of liability in the premises. The
obligations of the Issuer under this Section 7.06 to compensate or indemnify
the Trustee and to pay or reimburse the Trustee for reasonable expenses,
disbursements and advances shall be secured by a lien prior to that of the
Notes upon all property and funds held or collected by the Trustee as such. The
obligation of the Issuer under this Section shall survive the satisfaction and
discharge of this Indenture.

When the Trustee
and its agents and any authenticating agent incur expenses or render services
after an Event of Default specified in Section 6.01(g), 6.01(h) or 6.01(i) with respect to the Issuer occurs, the expenses
and the compensation for the services are intended to constitute
reasonable expenses of administration under any bankruptcy, insolvency or
similar laws.

Section 7.07. Officers’ Certificate as Evidence. Except
as otherwise provided in Section 7.01, whenever in the administration of the
provisions of this Indenture the Trustee
shall deem it necessary or desirable that a matter be proved or established
prior to taking or omitting any action hereunder, such matter (unless
other evidence in respect thereof be herein specifically prescribed) may, in
the absence of gross negligence, bad faith, recklessness or willful misconduct
on the part of the Trustee, be deemed to be conclusively proved and established
by an Officers’ Certificate delivered to the Trustee.

Section 7.08. Conflicting Interests of Trustee. If the
Trustee has or shall acquire a conflicting interest within the meaning of the
Trust Indenture Act, the Trustee shall

 47
 

either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.

Section 7.09. Eligibility of Trustee. There shall at all
times be a Trustee hereunder which shall be a Person that is eligible pursuant
to the Trust Indenture Act to act as such and has a combined capital and
surplus of at least $50,000,000 (or if such Person is a member of a bank
holding company system, its bank holding company shall have a combined capital
and surplus of at least $50,000,000). If such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of any
supervising or examining authority, then for the purposes of this Section the
combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section
7.09, it shall resign immediately in the manner and with the effect hereinafter
specified in this Article.

Section 7.10. Resignation or Removal of Trustee. (a) The
Trustee may at any time resign by giving
written notice of such resignation to the Issuer and to the Holders of
Notes. Upon receiving such notice of resignation, the Issuer shall promptly
appoint a successor trustee by written instrument, in duplicate, executed by
order of the Board of Directors, one copy of which instrument shall be
delivered to the resigning Trustee and one
copy to the successor trustee. If no successor trustee shall have been so
appointed and have accepted appointment sixty (60) calendar days after
the delivery of such notice of resignation to the Noteholders, the resigning
Trustee may, upon ten Business Days’ notice to the Issuer and the Noteholders,
appoint a successor identified in such notice or may petition, at the expense
of the Issuer, any court of competent jurisdiction for the appointment of a
successor trustee. A majority of Noteholders who have been bona fide holders of
Notes for at least six months may also petition any such court for the
appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

(b)           In case at any time any of the
following shall occur:

(i)            the
Trustee shall fail to comply with Section 7.08 after written request therefor by the Issuer or by any majority
of Noteholders who has have been a bona fide holders of a Note or Notes
for at least six months; or

(ii)           the
Trustee shall cease to be eligible in accordance with the provisions of Section
7.09 and shall fail to resign after written request therefor by the Issuer or
by any such majority of Noteholders; or

(iii)          the
Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation;

then, in any such case,
the Issuer may remove the Trustee and appoint a successor trustee by written
instrument, in duplicate, executed by order of the Board of Directors, one copy

 48
 

of which instrument shall be delivered to the Trustee
so removed and one copy to the successor trustee, or, subject to the provisions
of Section 6.09, any Noteholder who has been
a bona fide holder of a Note or Notes for at least six months may, on behalf of
itself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor trustee; provided  that if no
successor Trustee shall have been appointed and have accepted appointment sixty
(60) calendar days after either the Issuer or the Noteholders has removed the
Trustee, or the Trustee resigns, the Trustee so removed may petition, at the
expense of the Issuer, any court of
competent jurisdiction for an appointment of a successor trustee. Such court
may thereupon, after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee.

(c)           Any resignation or removal of the Trustee
and appointment of a successor trustee pursuant to any of the provisions of
this Section 7.10 shall become effective upon acceptance of appointment by the
successor trustee as provided in Section 7.11.

(d)           Notwithstanding the replacement of
the Trustee pursuant to this Section, the Issuer’s obligations under Section
7.06 shall continue for the benefit of the retiring Trustee.

Section 7.11. Acceptance by Successor
Trustee. Any successor trustee appointed as provided in Section 7.10
shall execute, acknowledge and deliver to
the Issuer and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of
its predecessor hereunder, with like effect as if originally named as
trustee herein; but, nevertheless, on the written request of the Issuer or of
the successor trustee, the trustee ceasing to act shall, upon payment of any
amount then due it pursuant to the provisions of Section 7.06, execute and
deliver an instrument transferring to such
successor trustee all the rights and powers of the trustee so ceasing to
act. Upon request of any such successor trustee, the Issuer shall execute any
and all instruments in writing for more fully and certainly vesting in and
confirming to such successor trustee all such rights and powers. Any trustee
ceasing to act shall, nevertheless, retain a
lien upon all property and funds held or collected by such trustee as
such, except for funds held in trust for the benefit of Holders of particular
Notes, to secure any amounts then due it pursuant to the provisions of Section
7.06.

No successor
trustee shall accept appointment as provided in this Section 7.11 unless, at the time of such acceptance, such
successor trustee shall be qualified under the provisions of Section
7.08 and be eligible under the provisions of Section 7.09.

Upon acceptance of appointment by a successor trustee as provided in
this Section 7.11, the Issuer (or the successor trustee, at the written
direction of the Issuer) shall deliver or cause to be delivered notice of the
succession of such trustee hereunder to the Holders
of Notes at their addresses as they shall appear on the Note Register. If the
Issuer fails to deliver such notice (or cause such notice to be
delivered) within ten (10) calendar

 49
 

days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be delivered at the expense of the Issuer.

Section 7.12. Succession by Merger. Any corporation into
which the Trustee may be merged or exchanged
or with which it may be consolidated, or any corporation resulting from
any merger, exchange or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee (including any trust created by this Indenture), shall
be the successor to the Trustee hereunder without the execution or filing of
any paper or any further act on the part of any of the parties hereto, provided that in the case of any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, such corporation shall be qualified under the
provisions of Section 7.08 and eligible under the provisions of Section 7.09.

In case at the
time such successor to the Trustee shall succeed to the trusts created by this
Indenture, any of the Notes shall have been authenticated but not delivered,
any such successor to the Trustee may adopt the certificate of authentication
of any predecessor trustee or authenticating agent appointed by such
predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to
the Trustee or any authenticating agent appointed by such successor trustee may
authenticate such Notes in the name of the successor trustee; and in all such
cases such certificates shall have the full force that is provided in the Notes
or in this Indenture; provided that
the right to adopt the certificate of authentication of any predecessor Trustee
or authenticate Notes in the name of any predecessor Trustee shall apply only
to its successor or successors by merger, exchange or consolidation.

Section 7.13. Preferential Collection of Claims. If and
when the Trustee shall be or become a creditor of the Issuer (or any other
obligor upon the Notes), the Trustee shall be subject to the provisions of the
Trust Indenture Act regarding the collection of the claims against the Issuer
(or any such other obligor).

ARTICLE 8

THE NOTEHOLDERS

Section 8.01. Action by Noteholders. Whenever in this
Indenture it is provided that the Holders of
a specified percentage in aggregate principal amount of the Notes may
take any action (including the making of any demand or request, the giving of
any notice, consent or waiver or the taking of any other action), the fact that
at the time of taking any such action, the Holders of such specified percentage
have joined therein may be evidenced (a) by any instrument or any number of
instruments of similar tenor executed by Noteholders in person or by agent or
proxy appointed in writing, or (b) by the record of the Holders of Notes voting
in favor thereof at any meeting of Noteholders, or (c) by a combination of such
instrument or instruments and any such record of such a meeting of Noteholders.
Whenever the Issuer or the Trustee solicits the taking of any action by the
Holders of the Notes, the Issuer or the Trustee may fix in advance of such
solicitation a

 50
 

date as the Record Date
for determining Holders entitled to take such action. The Record Date, if any,
shall be not more than fifteen (15) calendar days prior to the date of
commencement of solicitation of such action.

Section 8.02. Proof of Execution by Noteholders. Subject
to the provisions of Sections 7.01 and 7.02,
proof of the execution of any instrument by a Noteholder or its  agent or proxy shall be sufficient if made in such
manner as shall be satisfactory to the Trustee. The holding of Notes
shall be proved by the registry of such Notes or by a certificate of the Note
Registrar.

Section 8.03. Absolute Owners. The Issuer, the Trustee,
any Paying Agent, any Exchange Agent and any Note Registrar may deem the Person
in whose name such Note shall be registered upon the Note Register to be, and
may treat it as, the absolute owner of such Note (whether or not such Note shall
be overdue and notwithstanding any notation of ownership or other writing
thereon made by any Person other than the Issuer or any Note Registrar) for the
purpose of receiving payment of or on account of the principal of (including
the Redemption Price or repurchase price upon redemption or repurchase pursuant
to Article 3), premium, if any, and interest on such Note, for exchange of such
Note and for all other purposes; and neither the Issuer nor the Trustee nor any
Paying Agent nor any Exchange Agent nor any Note Registrar shall be affected by
any notice to the contrary. All such payments so made to any Holder in whose
name any Note is registered on the Note Register on any record date or special
record date, shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for monies payable upon any
such Note.

Section 8.04. Issuer-owned Notes Disregarded. In
determining whether the Holders of the requisite aggregate principal amount of
Notes have concurred in any direction, consent, waiver or other action under
this Indenture, Notes which are owned by the Issuer or any other obligor on the
Notes or any Affiliate of the Issuer or any other obligor on the Notes shall be
disregarded and deemed not to be outstanding for the purpose of any such determination;  provided that
for the purposes of determining whether the Trustee shall be protected
in relying on any such direction, consent, waiver or other action, only Notes
which a Responsible Officer knows are so owned shall be so disregarded. Notes
so owned which have been pledged in good faith may be regarded as outstanding
for the purposes of this Section 8.04 if the pledgee shall establish to the
satisfaction of the Trustee the pledgee s right to vote such Notes and that the
pledgee is not the Issuer, any other obligor on the Notes or any Affiliate of
the Issuer or any such other obligor. In the case of a dispute as to such
right, any decision by the Trustee taken upon the advice of counsel shall be full
protection to the Trustee. Upon request of the Trustee, the Issuer shall
furnish to the Trustee promptly an Officers’ Certificate listing and
identifying all Notes, if any, known by the Issuer to be owned or held by or
for the account of any of the above described Persons, and, subject to Section
7.01, the Trustee shall be entitled to accept such Officers’ Certificate as
conclusive evidence of the facts therein set forth and of the fact that all
Notes not listed therein are outstanding for the purpose of any such
determination.

 

 51

Section 8.05. Revocation
of Consents; Future Holders Bound. A consent to an amendment or a
waiver by a Noteholder of a Note shall bind the Noteholder and every subsequent Noteholder of that Note or portion of
the Note that evidences the same debt as the consenting Noteholder’s
Note, even if notation of the consent or waiver is not made on the Note.
However, any such Noteholder or subsequent Noteholder may revoke the consent or
waiver as to such Noteholder’s Note or portion of the Note if the Trustee
receives the notice of revocation before the date the amendment or waiver
becomes effective. After an amendment or waiver becomes effective in accordance
with the terms of this Indenture, it shall bind every Noteholder. An amendment
or waiver becomes effective once both (i) the requisite number of consents have
been received by the Issuer or the Trustee
and (ii) such amendment or waiver has been executed by the Issuer and the
Trustee.

ARTICLE 9

SUPPLEMENTAL INDENTURES

Section 9.01. Supplemental
Indentures Without Consent of Noteholders. The Issuer, when
authorized by the resolutions of the Board of Directors, the Guarantor and the Trustee may, from time to time, and at any
time enter into an indenture or indentures supplemental without the
consent of the Holders of the Notes hereto for one or more of the following
purposes:

(a)          to evidence a successor to the Issuer
as obligor or to the Guarantor as guarantor under this Indenture;

(b)         to add to the covenants of the Issuer
or the Guarantor for the benefit of the Holders
of the Notes or to surrender any right or power conferred upon the Issuer or
the Guarantor in this Indenture or in the Notes;

(c)          to
add Events of Default for the benefit of the Holders of the Notes;

(d)         to amend or supplement any provisions
of this Indenture; provided that
no amendment or supplement shall materially adversely affect the interests of
the Holders of any Notes then outstanding;

(e)          to
secure the Notes;

(f)          to provide for the acceptance of
appointment of a successor Trustee or facilitate the administration of the
trusts under this Indenture by more than one Trustee;

(g)         to provide for rights of Noteholders if
any reclassification or change of shares of Common Stock or any consolidation,
merger or sale of all or substantially all of the Issuer’s or the Guarantor’s
property or assets occurs;

 52
 

(h)         to cure any ambiguity, defect or
inconsistency in this Indenture; provided that this action shall not adversely affect the
interests of the Holders of the Notes in any material respect;

(i)           to supplement any of the provisions
of this Indenture to the extent necessary to permit or facilitate defeasance
and discharge of any of the Notes; provided that
the action shall not adversely affect the interests of the Holders of the Notes
in any material respect;

(j)           to modify this Indenture and the
Notes to increase the Exchange Rate or reduce
the Exchange Price;  provided that the
increase or reduction, as the case may be, is in accordance with the
terms of the Notes or will not adversely affect the interests of the Holders of
the Notes; or

(k)          to conform any non-conforming language
or defined terms in the text of this Indenture, any Guarantee or the Notes to
any provision of the “Description of Notes” section of the Offering Memorandum,
so that such a provision in the “Description of Notes” section reflects a
verbatim recitation of a provision in this Indenture, such Guarantee or the
Notes.

Upon the written request of the Issuer, accompanied by
a copy of the resolutions of the Board of Directors certified by the Guarantor’s
or the General Partner’s Secretary or Assistant Secretary authorizing the
execution of any supplemental indenture, the Trustee
is hereby authorized to join with the Issuer and the Guarantor in the execution
of any such supplemental indenture, to make any further appropriate
agreements and stipulations that may be therein contained and to accept the
conveyance, transfer and assignment of any
property thereunder, but the Trustee shall not be obligated to, but may
in its discretion, enter into any supplemental indenture that affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

Any supplemental indenture
authorized by the provisions of this Section 9.01 may be executed by the
Issuer, the Guarantor and the Trustee without the consent of the Holders of any
of the Notes at the time outstanding, notwithstanding any of the provisions of
Section 9.02.

Section 9.02. Supplemental
Indenture With Consent of Noteholders. With the consent (evidenced as provided in Article 8) of the
Holders of not less than a majority in aggregate principal amount of the
Notes at the time outstanding, the Issuer, when authorized by the resolutions
of the Board of Directors, the Guarantor and the Trustee may, from time to time
and at any time, enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or any supplemental
indenture or modifying in any manner the rights of the Holders of the Notes; provided that no such supplemental
indenture shall, without the consent of the Holder of each Note:

(a)          change the Stated Maturity of the
principal of or any installment of interest on the Notes, reduce the principal
amount of, or the rate or amount of interest on, or any

 53
 

premium payable on redemption of, the Notes, or
adversely affect any right of repayment of the Holder of the Notes, change the
place of payment, or the coin or currency, for payment of principal of or
interest on any Note or impair the right to institute suit for the enforcement
of any payment on or with respect to the Notes;

(b)         reduce the percentage in principal
amount of the outstanding Notes necessary to modify or amend this Indenture, to
waive compliance with certain provisions of this Indenture or certain defaults
and their consequences provided in this Indenture, or to reduce the
requirements of quorum or change voting requirements set forth in this
Indenture;

(c)          modify or affect in any manner adverse
to the Holders the terms and conditions of
the obligations of the Issuer in respect of the due and punctual payments of
principal and interest;

(d)         modify any of this Section 9.02 or
Section 6.07 or any of the provisions relating to the waiver of certain past
defaults or certain covenants, except to increase the required percentage to effect the action or to provide that certain
other provisions may not be modified or waived without the consent of
the Holders of the Notes;

(e)          modify the provisions of Section 3.05
in a manner adverse to the Holders of the Notes, including the Issuer’s
obligation to repurchase the Notes following a Designated Event; or

(f)          adversely affect the Holders’ rights
contained in Section 3.06 and Section 13.01 of this Indenture.

Upon the written request of the Issuer, accompanied by
a copy of the resolutions of the Board of Directors certified by the Guarantor’s
or the General Partner’s Secretary or Assistant Secretary authorizing the
execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of Noteholders as aforesaid, the Trustee
shall join with the Issuer and the Guarantor in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

It shall not be necessary for the
consent of the Noteholders under this Section 9.02 to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent shall approve the substance thereof.

Section 9.03. Efect
of Supplemental Indenture. Any
supplemental indenture executed pursuant to the provisions of this Article 9
shall comply with the Trust Indenture Act, as then in effect, provided  that
this Section 9.03 shall not require such supplemental indenture or the Trustee
to be qualified under the Trust Indenture Act prior to the time, if ever, such
qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has been qualified
under the Trust Indenture Act, nor shall it constitute any admission or
acknowledgment by any party to such supplemental indenture that any such
qualification is required prior to the time, if ever, such

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qualification is in fact required under the terms of the Trust
Indenture Act or the Indenture has been qualified under the Trust Indenture
Act. Upon the execution of any supplemental indenture pursuant to the
provisions of this Article 9, this Indenture shall be and be deemed to be
modified and amended in accordance therewith and the respective rights,
limitation of rights, obligations, duties and immunities under this Indenture
of the Trustee, the Issuer and the Holders of Notes shall thereafter be
determined, exercised and enforced hereunder, subject in all respects to such
modifications and amendments and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

Section 9.04. Notation
on Notes. Notes authenticated and delivered after the execution of
any supplemental indenture pursuant to the provisions of this Article 9 may
bear a notation in form approved by the Trustee as to any matter provided for
in such supplemental indenture. If the Issuer or the Trustee shall so
determine, new Notes so modified as to conform, in the opinion of the Trustee
and the Board of Directors, to any modification of this Indenture contained in
any such supplemental indenture may, at the Issuer’s expense, be prepared and
executed by the Issuer, authenticated by the Trustee (or an authenticating
agent duly appointed by the Trustee pursuant to Section 16.11) and delivered in
exchange for the Notes then outstanding, upon surrender of such Notes then
outstanding.

Section 9.05. Evidence
of Compliance of Supplemental Indenture to Be Furnished to Trustee. Prior
to entering into any supplemental indenture pursuant to this Article 9, the
Trustee shall be provided with an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant hereto complies with the
requirements of this Article 9 and is otherwise authorized or permitted by this
Indenture.

ARTICLE 10

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

Section 10.01. Issuer
May Consolidate on Certain Terms. Nothing contained in this
Indenture or in the Notes shall prevent any consolidation or merger of the Issuer
with or into any other Person or Persons (whether or not affiliated with the
Issuer), or successive consolidations or mergers in which either the Issuer
will be the continuing entity or the Issuer or its successor or successors
shall be a party or parties, or shall prevent any sale, conveyance, transfer or
lease of all or substantially all of the property of the Issuer, to any other
Person (whether or not affiliated with the Issuer); provided, however, that the following conditions are met:

(a)         the Issuer shall be the continuing
entity, or the successor entity (if other than the Issuer) formed by or
resulting from any consolidation or merger or which shall have received the
transfer of assets shall be an entity organized under the laws of the United States,
any state thereof, or the District of Columbia and shall expressly assume
payment of the principal of and interest on all of the Notes and the due and
punctual performance and observance of all of the covenants and conditions in
this Indenture;

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(b)         if as a result of such transaction the
Notes become exchangeable for common stock
or other securities issued by a third party, such third party fully and
unconditionally guarantees all obligations under the Notes and this Indenture;

(c)          immediately after giving effect to
such transaction, no Event of Default and no
event which, after notice or lapse of time, or both, would become an Event of
Default, shall have occurred and be continuing; and

(d)         the Issuer shall, at or prior to the
effective date of such consolidation, merger or transfer, have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent to such consolidation, merger or transfer have been
complied with (including, if a supplemental indenture is required in connection
with such transaction, that such supplemental indenture complies with this
Article 10).

No such consolidation, merger, sale, conveyance,
transfer or lease shall be permitted by this Section 10.01 unless prior thereto
the Guarantor shall have delivered to the Trustee a Guarantor’s Officers’
Certificate and an Opinion of Counsel, each stating that the Guarantor’s
obligations hereunder shall remain in full force and effect thereafter.

Section 10.02. Issuer
Successor to Be Substituted. Upon any consolidation by the Issuer with or merger of the Issuer into any other
Person or any sale, conveyance, transfer or lease of all or
substantially all of the properties and assets of the Issuer to any Person in
accordance with Section 10.01, the successor Person formed by such
consolidation or into which the Issuer is merged or to which such sale,
conveyance, transfer or lease is made shall succeed to, and be substituted for,
and, except in the case of a sale of assets or a lease, may exercise every
right and power of, the Issuer under this Indenture with the same effect as if
such successor Person had been named as the Issuer herein, and thereafter,
except in the case of a sale of assets or a lease, the predecessor Person shall
be released and discharged from all obligations and covenants under this
Indenture and the Notes.

In case of any such consolidation, merger, sale,
conveyance, transfer or lease, such changes
in phraseology and form (but not in substance) may be made in the Notes
thereafter to be issued as may be appropriate.

Section 10.03. Guarantor
May Consolidate on Certain Terms. Nothing contained in this
Indenture or in the Notes shall prevent any consolidation or merger of the Guarantor with or into any other Person or
Persons (whether or not affiliated with the  Guarantor), or successive consolidations or mergers in which either the
Guarantor will be the continuing entity or the Guarantor or its
successor or successors shall be a party or parties, or shall prevent any sale,
conveyance, transfer or lease of all or substantially all of the property of
the Guarantor, to any other Person (whether or not affiliated with the
Guarantor); provided, however, that:

(a)         the
Guarantor shall be the continuing entity, or the successor entity (if other
than the Guarantor) formed by or resulting from any consolidation or merger or
which

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shall have received the transfer of assets shall
expressly assume the obligations of the Guarantor
under the Guarantee and the due and punctual performance and observance of
all of the covenants and conditions in this Indenture;

(b)         if as a result of such transaction the
Notes become exchangeable for common stock or other securities issued by a
third party, such third party fully and unconditionally guarantees all obligations
under the Notes and this Indenture;

(c)          immediately after giving effect to
such transaction, no Event of Default and no
event which, after notice or lapse of time or both, would become an Event of
Default, shall have happened and be continuing; and

(d)         the Guarantor has, at or prior to the
effective date of such consolidation, merger or transfer, delivered to the
Trustee an Officers’ Certificate of the Guarantor and an Opinion of Counsel,
each stating that all conditions precedent to such consolidation, merger or
transfer have been complied with (including, if a supplemental indenture is required in connection with such transaction, that
such supplemental indenture complies with this Article 10).

Section 10.04. Guarantor
Successor to Be Substituted. Upon any consolidation or merger or any
sale, conveyance, transfer or lease of all or substantially all of the
properties and assets of the Guarantor to any Person in accordance with Section
10.04, the successor Person formed by such
consolidation or into which the Guarantor is merged or to which such
sale, conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Guarantor under
this Indenture with the same effect as if such successor Person had been named
as the Guarantor herein, and thereafter, except in the case of a lease, the
predecessor Person shall be released and discharged from all obligations and
covenants under this Indenture.

In case of any such consolidation, merger, sale,
conveyance, transfer or lease, such changes
in phraseology and form (but not in substance) may be made in the Notes
thereafter to be issued as may be appropriate.

Section 10.05. Assumption
by Guarantor. The Guarantor, or a Subsidiary thereof, may directly
assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form satisfactory to the Trustee, the due and punctual payment of
the principal of, any premium and interest on all the Notes and the performance
of every covenant of this Indenture on the part of the Issuer to be performed
or observed. Upon any such assumption, the Guarantor or such Subsidiary shall
succeed to, and be substituted for and may exercise every right and power of,
the Issuer under this Indenture with the same effect as if the Guarantor or
such Subsidiary had been named as the Issuer herein, and the Issuer shall be
released from all obligations and covenants with respect to the Notes. No such
assumption shall be permitted unless the Guarantor has delivered to the Trustee
(i) an Officers’ Certificate of the Guarantor and an Opinion of Counsel, each
stating that such assumption and supplemental indenture comply with this
Article 10, and that all conditions precedent herein provided for relating to
such transaction have been complied with and that, in the event of assumption
by a Subsidiary, the Guarantee and all other

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covenants of the Guarantor herein
remain in full force and effect and (ii) an opinion of  independent counsel that the Holders of Notes
shall have no materially adverse United States federal income tax
consequences as a result of such assumption, and that, if any Notes are then
listed on the New York Stock Exchange, that such Notes shall not be delisted as
a result of such assumption.

ARTICLE 11

SATISFACTION AND DISCHARGE OF INDENTURE

Section 11.01. Discharge
of Indenture. This Indenture shall cease to be of further effect
(except as to any surviving rights of exchange, registration of transfer or
exchange of Notes herein expressly provided for and except as further provided
below), and the Trustee, on demand of and at the expense of the Issuer, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when (a) either: (1) all Notes theretofore authenticated and delivered
(other than (i) Notes which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 11.04 and (ii) Notes for whose
payment money has theretofore been deposited in trust and thereafter repaid to
the Issuer as provided in Section 11.04) have been delivered to the Trustee for
cancellation; or (2) all such Notes not theretofore delivered to the Trustee
for cancellation (i) have become due and payable, whether at the Maturity Date,
Repurchase Date or Designated Event Repurchase Date or upon exchange or
otherwise, or (ii) are to be called for redemption 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 Issuer, and the Issuer, in the
case of clause (1) or (2) above, has irrevocably deposited or caused to be
irrevocably deposited with the Trustee, a Paying Agent or the Exchange Agent
(other than the Issuer or any of its Affiliates), as applicable, as trust funds
in trust cash and/or shares of Common Stock (as applicable under the terms of
the Indenture) in an amount sufficient to pay and discharge the entire
indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation, for principal and interest to the date of such deposit (in the
case of Notes which have become due and payable) or to the Maturity Date, Redemption Date, Repurchase Date or
Designated Event Repurchase Date, as the case may be; provided, however, that there shall not
exist, on the date of such deposit, a default or Event of Default; provided, further, that such deposit shall
not result in a breach or violation of, or constitute a default under, this
Indenture or any other agreement or instrument to which the Issuer is a party
or to which the Issuer is bound; (b) the Issuer has paid or caused to be paid
all other sums payable hereunder by the Issuer; and (c) the Issuer has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Issuer to
the Trustee under Section 7.06 shall survive and, if money shall have been
deposited with the Trustee pursuant to subclause (2) of clause (a) of this
Section, the provisions of Sections 2.05, 2.06, 2.07, 3.05, 3.06, 5.01, Article
13 and this Article 11, shall survive until the Notes have been paid in full.

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Section 11.02. Deposited
Monies to Be Held in Trust by Trustee. Subject to Section 11.04, all
monies deposited with the Trustee pursuant to Section 7.05 shall be held in
trust for the sole benefit of the Noteholders, and such monies shall be applied
by the Trustee to the payment, either directly or through any Paying Agent
(including the Issuer if acting as its own Paying Agent), to the Holders of the
particular Notes for the payment or redemption of which such monies have been
deposited with the Trustee, of all sums due and to become due thereon for
principal, premium, if any, and interest. All moneys deposited with the Trustee
pursuant to Section 7.05 (and held by it or any Paying Agent) for the payment
of Notes subsequently exchanged shall be returned to the Issuer upon request.
The Trustee is not responsible to anyone for interest on any deposited funds
except as agreed in writing.

Section 11.03. Paying
Agent to Repay Monies Held. Subject to the provisions of Section
11.04, the Trustee or a Paying Agent shall hold in trust, for the benefit of
the Noteholders, all money deposited with it pursuant to Section 11.01 and
shall apply the deposited money in accordance with this Indenture and the Notes
to the payment of the principal of (including the Redemption Price or repurchase
price upon redemption or repurchase pursuant to Article 3) and interest on the
Notes.

Section 11.04. Return
of Unclaimed Monies. The Trustee and each Paying Agent shall pay to
the Issuer upon request any money held by them for the payment of principal or
interest that remains unclaimed for two years after a right to such money has
matured; provided, however, that
the Trustee or such Paying Agent, before being required to make any such
payment, may, at the expense of the Issuer, either publish in a newspaper of
general circulation in The City of New York, or cause to be delivered to each
Holder entitled to such money, notice that such money remains unclaimed and
that after a date specified therein, which shall be at least thirty (30)
calendar days from the date of such delivery or publication, any unclaimed
balance of such money then remaining will be repaid to the Issuer. After
payment to the Issuer, Holders entitled to money must look to the Issuer for
payment as general creditors unless an applicable abandoned property law
designates another person, and the Trustee and each Paying Agent shall be
relieved of all liability with respect to such money.

Section 11.05. Reinstatement.
If the Trustee or the Paying Agent is unable to apply any money in
accordance with Section 11.02 by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, the Issuers obligations under this Indenture and the Notes shall
be revived and reinstated as though no deposit had occurred pursuant to Section
11.01 until such time as the Trustee or the Paying Agent is permitted to apply
all such money in accordance with Section 11.02; provided that if the Issuer makes any payment of principal
of or interest on any Note following the reinstatement of its obligations, the
Issuer shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

 

 59

ARTICLE 12

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

Section 12.01. Indenture
and Notes Solely Corporate Obligations. Except as otherwise
expressly provided in Article 15, no recourse for the payment of the principal
of (including the Redemption Price or repurchase price upon redemption or
repurchase pursuant to Article 3) or,
premium, if any, or interest on any Note, or for any claim based thereon
or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Issuer in this
Indenture or in any supplemental indenture or in any Note, or because of
the creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, partner, member, manager, employee, agent, officer,
director or subsidiary, as such, past, present or future, of the Guarantor, the
General Partner, the Issuer or any of the Issuers subsidiaries or of any
successor thereto, either directly or through the Guarantor, the General
Partner, the Issuer or any of the Issuers subsidiaries or any successor
thereto, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it  being
expressly understood that all such liability is hereby expressly waived and
released  as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the
Notes.

ARTICLE 13

EXCHANGE OF NOTES

Section 13.01. Right
to Exchange. (a) Subject to the restrictions on ownership of shares
of Common Stock as set forth in Section 13.12 and upon compliance with the
provisions of this Indenture, on or prior to the close of business on the
Business Day immediately preceding the Maturity Date, the Holder of any Notes
not previously redeemed or repurchased shall have the right, at such Holders
option, to exchange its Notes, or any portion thereof which is an integral
multiple of $1,000, into cash, or a combination of cash and Common Stock, as
the case may be, with an aggregate value equal
to the Exchange Value, by surrender of such Notes so to be exchanged in whole
or in part, together with any required funds, under the circumstances
and in the manner described in this Article 13. Holders may exchange their
Notes at any time on or after March 1, 2027. In addition, Holders may exchange
their Notes at any time prior to the close of business on the Business Day
immediately preceding the Maturity Date only under the following circumstances:

(i)         Exchange
Upon Satisfaction of Market Price Condition. A Holder may surrender
any of its Notes for exchange during any calendar quarter beginning after June 30, 2007 (and only during
such calendar quarter) if, and only if, the Closing Sale Price of the
Common Stock for at least twenty (20) Trading Days in the period of thirty (30)
consecutive Trading Days ending on the last Trading Day of the preceding
calendar quarter is more than 130% of the Exchange Price per share of Common
Stock in effect on the applicable Trading Day. The Board of Directors will make
appropriate adjustments, in its good faith determination, to account for any
adjustment to the Exchange Rate that becomes

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effective, or any event requiring an adjustment to the
Exchange Rate where the ex-dividend date of
the event occurs, during that thirty (30) consecutive Trading Day
period.

The Trustee (or other
Exchange Agent appointed by the Issuer) shall, on behalf of the Issuer, determine on a daily basis during the time period
specified in  this Section 13.01
(a)(i) whether the Notes shall be exchangeable as a result of the
occurrence of an event specified in this clause (i) and, if the Notes shall be
so exchangeable, the Trustee (or other Exchange Agent appointed by the Issuer)
shall promptly deliver to the Issuer and the Trustee (if the Trustee is not the
Exchange Agent) written notice thereof.

(ii)             Exchange
Upon Satisfaction of Trading Price Condition. A Holder may surrender
any of its Notes for exchange during the five (5) consecutive Trading Day
period following any five (5) consecutive Trading Days in which the Trading
Price per $1,000 principal amount of Notes (as determined following a
reasonable request by a Holder of the Notes) was less than 98% of the product
of the Closing Sale Price of the Common Stock during such period, multiplied by the Applicable Exchange
Rate.

“Trading
Price” per $1,000 principal amount of Notes on any date of
determination means the average of the secondary market bid quotations per
$1,000 principal amount of Notes obtained by the Trustee for a $2,000,000
principal amount of Notes at approximately 3:30 p.m., New York City time, on
such determination date from two independent nationally recognized securities dealers the Is suer selects, which may include the
Initial Purchasers;  provided that if
at least two such bids cannot reasonably be obtained by the Trustee, but one
such bid can reasonably be obtained by the Trustee, then one bid shall be used.
If the Trustee cannot reasonably obtain at least one bid for a $2,000,000
principal amount of Notes from a nationally recognized securities dealer or, in
the Issuers reasonable judgment, the bid quotations are not indicative of the
secondary market value of the Notes, then the Trading Price per $1,000
principal amount of Notes will be deemed to
be less than 98% of the product of the Closing Sale Price of Common
Stock and the Exchange Rate on such determination date.

The Trustee shall have no
obligation to determine the Trading Price of the Notes unless the Issuer shall
have requested such determination, and the Issuer shall have no obligation to
make such request unless a Holder provides the Issuer with reasonable evidence
that the Trading Price per $1,000 principal amount of Notes would be less than
98% of the product of the Closing Sale Price per share of Common Stock and the
Exchange Rate, whereupon the Issuer shall instruct the Trustee to determine the
Trading Price of the Notes beginning on the next Trading Day and on each
successive Trading Day until the Trading Price per $1,000 principal amount of
Notes is greater than or equal to 98% of the product of the Closing Sale Price
per share of Common Stock and the Applicable Exchange Rate. The Issuer or, at
the Issuers request, the Trustee in the name and at the expense of the Issuer,
shall notify the Exchange Agent and the Holders of (i) the Trustee’s

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determination that the Trading Price per $1,000
principal amount of Notes was less than 98% of the product of the Closing Sale
Price per share of Common Stock and the Exchange Rate, and (ii) the Trustees
determination that such Trading Price condition described in clause (i) is no
longer met. In addition to the delivery of each such notice, the Issuer shall
disseminate a press release through Dow Jones & Company, Inc. or Bloomberg
Business News with the content of such notice or publish such information in
The Wall Street Journal or another newspaper of general circulation in The City
of New York or on the Guarantors web site, or through such other public medium
as the Is suer shall deem appropriate at such time. Any notice so given shall
be conclusively presumed to have been duly given, whether or not the Holder
receives such notice.

(iii)            Exchange
Upon Notice of Redemption. A Holder may surrender for exchange any
of the Notes called for redemption at any time prior to the close of business
on the second Business Day immediately prior to a Redemption Date even if the
Notes are not otherwise exchangeable at such time. The right to exchange Notes
pursuant to this clause (iii) shall expire after 5:00 p.m., New York City time,
on the second Business Day immediately preceding the Redemption Date unless the
Is suer defaults in payment of the Redemption Price. If a Holder has delivered
a Repurchase Notice or Designated Event Repurchase Notice with respect to a
Note, such Holder shall not surrender such Note for exchange until such Holder
has withdrawn such Repurchase Notice or Designated Event Repurchase Notice in
accordance with Section 3.08.

(iv)            Exchange Upon Specified Transactions. If
the Guarantor elects to:

(1)     distribute
to all holders of the Common Stock rights, warrants or options entitling them
for a period of up to forty five (45) days after the issuance thereof to
subscribe for or purchase Common Stock at an exercise price per share of Common
Stock less than the Closing Sale Price of Common Stock on the Business Day
immediately preceding the declaration date of such distribution; or

(2)     distribute
to all holders of Common Stock assets, debt securities or certain rights to
purchase securities of the Issuer or the Guarantor, which distribution (excluding
for this purpose a distribution solely in the form of cash required to preserve
the status of the Guarantor as a real estate investment trust) has a per share
value exceeding 15% of the average of the Closing Sale Prices of the Common
Stock for the five (5) consecutive Trading Days ending on the date immediately
preceding the declaration date of such distribution, then:

(A)          The Issuer must notify the Exchange
Agent and the Holders of Notes at least twenty (20) calendar days prior to the
ex-dividend date for such distribution.

(B)           Following the issuance of such
notice, Holders may surrender their Notes for exchange at any time until the
earlier of the close of business on the Business Day immediately preceding the
ex-dividend date or an announcement that
such distribution will not take place; provided,
however, that a Holder may not exchange its Notes

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pursuant to this Section 13.01(a)(iv) if such Holder participates in
the distribution, without exchange of its Notes, as if such Holder held on the
date such distribution is made a number of shares of Common Stock equal to a
fraction the numerator of which is the product of the Exchange Rate in effect
on the ex-dividend date for such distribution, and the aggregate principal amount of Notes
held by such Holder and the denominator of which is one thousand dollars
($1,000). The “ex-dividend date” means,
with respect to any distribution on shares of Common Stock, the first date upon
which a sale of the Common Stock does not automatically transfer the right to
receive the relevant distribution from the seller of the Common Stock to its
buyer.

In addition, if the
Guarantor is a party to (1) a share exchange or tender offer, liquidation,
consolidation, recapitalization, reclassification, combination or merger, or a sale
or lease or other transfer of all or substantially all of its respective
properties and assets, or a series of related transactions or events, in each
case pursuant to which all of the outstanding Common Stock would be exchanged
for, be converted into or constitute solely the right to receive cash,
securities or other property, or (2) a Designated Event, a Holder may surrender
its Notes for exchange at any time from and including the date that is fifteen
(15) Business Days prior to the anticipated effective time of the transaction
or event up to and including five (5) Business Days after the actual date of
such transaction or event, unless such transaction also constitutes a
Designated Event, in which case the Notes may be surrendered for exchange until
the related Designated Event Repurchase Date. The Issuer shall notify the
Exchange Agent and the Holders of Notes as promptly as practicable following
the date such transaction or event is publicly announced (but in no event less
than fifteen (15) Business Days prior to the effective time of such transaction
or event).

If the Guarantor is a
party to a consolidation, merger, binding share exchange, reclassification or
sale or conveyance of all or substantially all of its properties and assets, in
each case pursuant to which all of the Common Stock is exchanged for cash,
securities or other property (the “Reference Property”), then at the
effective time of the transaction any exchange of Notes and the Exchange Value
will be based on the kind and amount of Reference Property that a Holder of
Notes would have received if such Holder had, immediately prior to the
effective time of such transaction, exchanged its Notes for a number of shares
of Common Stock equal to a fraction the numerator of which is the product of
the Exchange Rate in effect immediately prior to the effective time of such
transaction, and  the aggregate principal amount of Notes
held by such Holder and the denominator of which is one thousand dollars
($1,000). In the event holders of Common Stock have the opportunity to elect
the form of consideration to be received in any such transaction or event, then
from and after the effective date of such transaction or event, the Notes shall
be exchangeable for cash with respect to the Principal Return and, if the
Issuer elects to deliver property other than cash in satisfaction of the Net
Amount, if any, into the consideration that a majority of the

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holders of Common Stock who made such an election
received in such transaction or as a result of such event with respect
to the Daily Share Amounts.

(v)           Exchange
during Specified Periods. The Notes may be surrendered for exchange at any time from, and including, March 1, 2012
to, and including, April 1, 2012.

(vi)          Exchange
Upon Delisting of the Common Stock. A Holder may surrender for
exchange any of its Notes at any time beginning on the first Business Day after the Common Stock has ceased to
be listed on a U.S. national  or
regional securities exchange and is not quoted on the over-the-counter market
as reported by Pink Sheets LLC or any similar organization, and in each case
continuing for a period of thirty (30) consecutive Trading Days.

(b)         A Note in respect of which a Holder has
delivered a Designated Event Repurchase Notice or Repurchase Notice, as the
case may be, exercising such Holders right
to require the Issuer to repurchase such Note pursuant to Section 3.05 or 3.06
may be exchanged only if such Repurchase Notice is withdrawn in
accordance with Section 3.07 prior to 5:00 p.m., New York City time, on the
Business Day immediately prior to the
Repurchase Date or on the Business Day immediately prior to the Designated
Event Repurchase Date, as applicable.

(c)          A Holder of Notes is not entitled to
any rights of a Holder of Common Stock until such Holder has exchanged its
Notes and received upon exchange thereof shares of Common Stock.

Section 13.02. Exercise
of Exchange Right; No Adjustment for Interest or Dividends. In order
to exercise the exchange right with respect to any Note in certificated form,
the Issuer must receive at the office or agency of the Issuer maintained for
that purpose in the City of Minneapolis or, at the option of such Holder, the
Corporate Trust Office, such Note with the original or facsimile of the form
entitled “Exchange Notice” on the reverse thereof, duly completed and signed
manually or by facsimile, together with such Notes duly endorsed for
transfer, accompanied by the funds, if any, required by this Section 13.02.
Such notice shall also state the name or names (with address or addresses) in
which the certificate or certificates for shares of Common Stock that shall be
issuable on such exchange shall be issued, and shall be accompanied by transfer
or similar taxes, if required pursuant to Section 13.06.

To exchange the Notes, a Holder must (a) complete and
manually sign the Exchange Notice on the reverse of the Note (or complete and
manually sign a facsimile of such notice) and deliver such notice to the
Exchange Agent at the office maintained by the Exchange Agent for such purpose,
(b) with respect to Notes that are in certificated form, surrender the Notes to
the Exchange Agent, (c) furnish appropriate endorsements and transfer documents
if required by the Exchange Agent and (d) pay any transfer or similar tax, if
required. The date on which the Holder satisfies all such requirements shall be
deemed to be the date on which the applicable Notes shall have been tendered
for exchange.

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Whether the Notes to be exchanged are held in
book-entry or certificated form, the Exchange Notice will require the Holder to
certify that it or the Person on whose behalf
the Notes are being exchanged is a qualified institutional buyer within the
meaning of Rule 144A under the Securities Act.

Notes in respect of which a Holder has delivered a
Repurchase Notice or a Designated Event
Repurchase Notice may be exchanged only if such notice is withdrawn in
accordance with the terms of Section 3.05 or Section 3.06, as the case may be.

Upon surrender of a Note for
exchange by a Holder, such Holder shall deliver to the Issuer cash equal
to the amount that the Issuer is required to deduct and withhold under applicable law in connection with the
exchange;  provided,
however, if the Holder
does not deliver such cash, the Issuer may deduct and withhold from the amount
of consideration otherwise deliverable to such Holder the amount required to be
deducted and withheld under applicable law.

If the Issuer is required to deliver shares of Common
Stock upon settlement in accordance with Sections 13.10 and 13.11, if applicable,
as promptly as practicable (but no later than the fifth Business Day following
the last day of the Applicable Exchange Period), after satisfaction of the
requirements for exchange set forth above, subject to compliance with any
restrictions on transfer if shares issuable on exchange are to be issued in a
name other than that of the Noteholder (as if such transfer were a transfer of
the Note or Notes (or portion thereof) so exchanged), and in accordance with
the time periods set forth in this Article 13, the Issuer shall issue and shall
deliver to such Noteholder at the office or agency maintained by the Issuer for
such purpose pursuant to Section 4.02, (i) a certificate or certificates for
the number of full shares of Common Stock (if any) issuable upon the exchange
of such Note or portion thereof as determined by the Is suer in accordance with
the provisions of Sections 13.10 and 13.11 and (ii) a check or cash in respect
of any fractional interest in respect of a share of Common Stock arising upon
such exchange, calculated by the Issuer as provided in Section 13.03. The cash,
and, if applicable, a certificate or certificates for the number of full shares
of Common Stock into which the Notes are
exchanged (and cash in lieu of fractional shares) will be delivered to
an exchanging holder after satisfaction of the requirements for exchange set
forth above, in accordance with this Section 13.02 and Sections 13.10 and, if
applicable, 13.11.

Each exchange shall be deemed to have been effected as
to any such Note (or portion thereof) on the date on which the requirements set
forth above in this Section 13.02 have been satisfied as to such Note (or
portion thereof) or, if later, the Determination Date (the “Exchange Date”), and the Person in
whose name any certificate or certificates for shares of Common Stock shall be
issuable upon such exchange shall be deemed to have become on said date the
holder of record of the shares represented
thereby;  provided that any such surrender on any date when the stock transfer books
of the Guarantor shall be closed shall be deemed to be by the Person in whose
name the certificates are to be issued as the record holder thereof for all
purposes on the next succeeding day on which such stock transfer books are
open, but such exchange shall be at the Exchange Rate in effect on the Exchange
Date.

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Any Note or portion thereof
surrendered for exchange during the period from 5:00  p.m., New York City time, on the Record Date for
any interest payment date to 5:00 p.m., New York City time, on the
applicable interest payment date shall be accompanied by payment, in
immediately available funds or other funds acceptable to the Is suer, of an
amount equal to the interest otherwise payable on such interest payment date on
the principal amount being exchanged; provided
that no such payment need be made (1) if a Holder exchanges its
Notes in connection with a redemption and the Issuer has specified a Redemption
Date that is after a Record Date and on or prior to the Business Day
immediately succeeding the next interest payment date, (2) if a Holder
exchanges its Notes in connection with a Designated Event and the Issuer has
specified a Designated Event Repurchase Date that is after a Record Date and on
or prior to the corresponding interest payment date or (3) to the extent of any
overdue interest, if any overdue interest exists at the time of exchange with
respect to such Note. Except as otherwise provided above in this Article 13, no
payment or other adjustment shall be made for interest accrued on any Note
exchanged or for dividends on any shares issued upon the exchange of such Note
as provided in this Article 13. Notwithstanding the foregoing, in the case of
Notes submitted for exchange in connection with a Designated Event, such Notes
shall continue to represent the right to receive the Additional Designated
Event Shares, if any, payable pursuant to Section 13.11, until such Additional
Designated Event Shares are so paid.

Upon the exchange of an interest
in a Global Note, the Trustee (or other Exchange Agent appointed by the
Issuer), or the Custodian at the direction of the Trustee (or other Exchange
Agent appointed by the Issuer), shall make a notation on such Global Note as to
the reduction in the principal amount represented thereby. The Issuer shall
notify the Trustee in writing of any exchanges of Notes effected through any
Exchange Agent other than the Trustee.

Upon the exchange of a Note, the accrued but unpaid
interest attributable to the period from the issue date of the Note to the
Exchange Date, with respect to the exchanged
Note, shall not be deemed canceled, extinguished or forfeited, but rather shall
be deemed to be paid in full to the Holder thereof through delivery of cash
and, if applicable, shares of Common Stock (together with the cash payment, if
any in lieu of fractional shares) in exchange for the Note being exchanged
pursuant to the provisions hereof.

In case any Note of a denomination greater than $1,000
shall be surrendered for partial exchange, and subject to Section 2.04, the Issuer
shall execute and the Trustee shall
authenticate and deliver to the Holder of the Note so surrendered, without
charge to the Holder, a new Note or Notes in authorized denominations in
an aggregate principal amount equal to the unexchanged portion of the
surrendered Note.

Section 13.03. Cash Payments in Lieu of Fractional Shares. No
fractional shares of Common Stock or scrip
certificates representing fractional shares shall be issued upon
exchange of Notes. If more than one Note shall be surrendered for exchange at
one time by the same Holder, the number of full shares that shall be issuable
upon exchange shall be computed on the basis of the aggregate principal amount
of the Notes (or specified

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portions thereof to the extent permitted hereby) so
surrendered. If any fractional share of Common Stock would be issuable upon the
exchange of any Note or Notes, the Issuer shall make an adjustment and payment
therefor in cash to the Holder of Notes at a price equal to the Average Price.

Section 13.04. Exchange
Rate. The initial Exchange
Rate for the Notes is 42.5822 shares of Common Stock per each $1,000 principal
amount of the Notes, subject to adjustment as provided in Sections 13.05 and
13.11 (herein called the “Exchange Rate”).

Section 13.05.  Adjustment of Exchange Rate. The Exchange Rate
shall be adjusted from time to time by the Issuer as follows:

(a)          If the Guarantor issues Common Stock
as a dividend or distribution on the Common Stock to all holders of Common
Stock, or if the Guarantor effects a share split or share combination, the
Exchange Rate will be adjusted based on the following formula:

ER1 = ER0 ×
OS1/OS0

where

ER0 = the
Exchange Rate in effect immediately prior to the ex-dividend date for
such dividend or distribution, or the effective date of such share split or
share combination;

ER1 = the new
Exchange Rate in effect immediately after the ex-dividend date for such
dividend or distribution, or the effective date of such share split or share
combination;

OS0 = the
number of shares of Common Stock outstanding immediately prior to such
dividend or distribution, or the effective date of such share split or share
combination; and

OS1 = the
number of shares of Common Stock outstanding immediately after such
dividend or distribution, or the effective date of such share split or share
combination.

Any adjustment made pursuant to
this paragraph (a) shall become effective on the date that is
immediately after (x) the ex-dividend date for such dividend or other
distribution or (y) the date on which such split or combination becomes
effective, as applicable. If any dividend or distribution described in this
paragraph (a) is declared but not so paid or made, the new Exchange Rate shall
be readjusted to the Exchange Rate that would then be in effect if such dividend
or distribution had not been declared.

(b)         If the Guarantor distributes to all
holders of Common Stock any rights, warrants or options entitling them for a
period of not more than 45 days after the date of issuance thereof to subscribe
for or purchase Common Stock for a period of not more than 45 days after the date of issuance thereof, in either case at an
exercise price per share of Common Stock less than the Closing Sale
Price of the Common Stock on the Business

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Day immediately preceding the
time of announcement of such issuance, the Exchange Rate will be
adjusted based on the following formula:

ER1 = ER0 × (OS0 + X)/(OS0 + Y)

where

ER0 = the
Exchange Rate in effect immediately prior to the ex-dividend date for
such distribution;

ER1 = the new
Exchange Rate in effect immediately after the ex-dividend date for such
distribution;

OS0 = the
number of shares of Common Stock outstanding immediately prior to the
ex-dividend date for such distribution;

X = the number of shares of
Common Stock issuable pursuant to such rights, warrants or options; and

Y = the number of shares of Common Stock equal to the
quotient of (A) the aggregate price payable to exercise such rights, warrants
or options and (B) the average of the Closing Sale Prices of the Common Stock for
the 10 consecutive Trading Days ending on the Business Day immediately
preceding the date of announcement for the issuance of such rights, warrants or
options.

For purposes of this paragraph (b), in determining
whether any rights, warrants or options entitle the holders to subscribe for or
purchase Common Stock at less than the applicable Closing Sale Price of the
Common Stock, and in determining the aggregate exercise or conversion price
payable for such Common Stock, there shall be taken into account any
consideration received by the Guarantor for such rights, warrants or options
and any amount payable on exercise or conversion thereof, with the value of
such consideration, if other than cash, to be determined by the Board of
Directors. If any right, warrant or option
described in this paragraph (b) is not exercised or converted prior to the
expiration of the exercisability or convertibility thereof, the new Exchange
Rate shall be readjusted to the Exchange Rate that would then be in effect if
such right, warrant or option had not been so issued.

(c)         If the Guarantor distributes shares of
capital stock, evidences of indebtedness or other assets or property of the
Guarantor to all holders of Common Stock, excluding:

(A)      dividends, distributions,
rights, warrants or options referred to in paragraph (a) or (b) above;

(B)   dividends
or distributions paid exclusively in cash; and

(C)   Spin-Offs
described below in this paragraph (c),

then the Exchange Rate will be adjusted based on the following formula:

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ER1 = ER0 × SP0/(SP0 FMV) 

where

ER0 = the
Exchange Rate in effect immediately prior to the ex-dividend date for
such distribution;

ER1 = the new
Exchange Rate in effect immediately after the ex-dividend date for such
distribution;

SP0 = the average of the Closing Sale Prices of
the Common Stock for the 10 consecutive Trading Days prior to the Business Day
immediately preceding the earlier of the record date or the ex-dividend date
for such distribution; and

FMV = the fair market value (as determined in good
faith by the Board of Directors) of the shares of capital stock, evidences of
indebtedness, assets or property distributed with respect to each outstanding
share of Common Stock on the earlier of the record date or the ex-dividend date
for such distribution;

provided  that if “FMV” with respect to
any distribution of shares of capital stock, evidences of indebtedness or other
assets or property of the Guarantor is equal to or greater than “SP0” with respect to such distribution, then in lieu of the
foregoing adjustment, adequate provision shall be made so that each holder of
Notes shall have the right to receive on the date such shares of capital stock,
evidences of indebtedness or other assets or
property of the Guarantor are distributed to holders of Common Stock, for
each Note, the amount of shares of capital stock, evidences of indebtedness or
other assets or property of the Guarantor such holder of Notes would have
received had such holder of Notes owned a number of shares of Common Stock
equal to a fraction the numerator of which
is the product of the Exchange Rate in effect on the ex-dividend date
for such distribution, and
the aggregate principal amount of Notes held by such Holder and the
denominator of which is one thousand dollars ($1,000).

An adjustment to the Exchange
Rate made pursuant to the immediately preceding paragraph shall become
effective on the ex-dividend date for such distribution.

If the Guarantor distributes to all holders of Common
Stock, capital stock of any class or series, or similar equity interest, of or
relating to a subsidiary or other business unit of the Guarantor (a “Spin-Off”), the Exchange Rate in effect
immediately before the tenth Trading Day from and including the effective date
of the Spin-Off will be adjusted based on the following formula:

ER1 = ER0 ×
(FMV0 + MP0)/MP0 

where

ER0 = the
Exchange Rate in effect immediately prior to the tenth Trading Day
immediately following, and including, the effective date of the Spin-Off;

 

 69

ER1 = the new Exchange Rate immediately after the
tenth Trading Day immediately following, and
including, the effective date of the Spin-Off;

FMV0 = the average of the Closing Sale Prices of
the capital stock or similar equity interest
distributed to holders of Common Stock applicable to one share of Common
Stock over the first ten (10) consecutive Trading Days after the effective date
of the Spin-Off; and

MP0 = the average of the Closing Sale Prices of
the Common Stock over the first ten (10) consecutive Trading Days after the
effective date of the Spin-Off.

An adjustment to the Exchange
Rate made pursuant to the immediately preceding paragraph will occur on
the tenth Trading Day from and including the effective date of the Spin-Off; provided  that in respect of any exchange within the ten (10) Trading
Days following the effective date of any Spin-Off, references within this
paragraph (c) to ten (10) Trading Days shall
be deemed replaced with such lesser number of Trading Days as have
elapsed between the effective date of such Spin-Off and the Exchange Date in
determining the Applicable Exchange Rate.

If any such dividend or
distribution described in this paragraph (c) is declared but not paid or
made, the new Exchange Rate shall be readjusted to be the Exchange Rate that
would then be in effect if such dividend or distribution had not been declared.

(d)        If the Guarantor makes any cash dividend
or distribution to all holders of outstanding Common Stock (excluding any
dividend or distribution in connection with the liquidation, dissolution or
winding up of the Issuer) during any of its quarterly fiscal periods in an
aggregate amount that, together with other cash dividends or distributions made
during such quarterly fiscal period, exceeds the product of $0.2275 per share
of Common Stock (the “Reference Dividend”) and the number of shares of Common
Stock outstanding on the Record Date for
such distribution, the Exchange Rate will be adjusted based on the
following formula:

ER1 = ER0 × SP0 /(SP0 – C) 

where

ER0 = the
Exchange Rate in effect immediately prior to the ex-dividend date for
such distribution;

ER1 = the new
Exchange Rate immediately after the ex-dividend date for such
distribution;

SP0 = the average of the Closing Sale Prices of
the Common Stock for the ten (10) consecutive Trading Days prior to the
Business Day immediately preceding the
earlier of the record date or the day prior to the ex-dividend date for
such distribution; and

C = the amount in cash per share
that the Guarantor distributes to holders of Common Stock that exceeds
the Reference Dividend;

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provided  that if “C” with respect to any
such cash dividend or distribution is equal to or greater than “SP0”
with respect to any such cash dividend or distribution, then in lieu of the
foregoing adjustment, adequate provision shall be made so that each holder of
Notes shall have the right to receive on the date such cash is distributed to
holders of Common Stock, for each Note, the amount of cash such holder of Notes
would have received had such holder of Notes
owned a number of shares of Common Stock equal to a fraction the  numerator of which is the product of the Exchange
Rate in effect on the ex-dividend date for such dividend or
distribution, and  the aggregate principal amount of Notes
held by such Holder and the denominator of which is one thousand dollars
($1,000).

An adjustment to the Exchange Rate made pursuant to
this paragraph (d) shall become effective on the ex-dividend date for such
dividend or distribution. If any dividend or distribution described in this
paragraph (d) is declared but not so paid or made,
the new Exchange Rate shall be readjusted to the Exchange Rate that would then
be in effect if such dividend or distribution had not been declared.

The Reference Dividend amount is subject to adjustment
on account of any of the events set forth in paragraphs (a), (b) and (c) above
and paragraph (e) below. Any such adjustment will be effected by multiplying
the Reference Dividend by a fraction, the numerator of which will equal the
Exchange Rate in effect immediately prior to the adjustment on account of such
event and the denominator of which will equal the Exchange Rate as adjusted; provided  that no adjustment will be made to the Reference Dividend
amount for any adjustment made to the Exchange Rate under this paragraph (d).

Notwithstanding the foregoing, if
an adjustment is required to be made under this paragraph as a result of
a distribution that is not a quarterly dividend, the Reference Dividend will be
deemed to be zero.

(e)         If the Guarantor or any of its
Subsidiaries makes a payment in respect of a tender
offer or exchange offer for Common Stock to the extent that the cash and value
of  any other consideration included
in the payment per share of Common Stock exceeds the Closing Sale Price
of a share of Common Stock on the Trading Day next succeeding the last date on
which tenders or exchanges may be made pursuant to such tender offer or
exchange offer (the “Expiration Time”), the Exchange Rate will be adjusted
based on the following formula:

ER1 = ER0 × (AC + (SPI ×
OS1))/(SP1 × OS0)

where

ER0 = the
Exchange Rate in effect on the day immediately following the date such
tender offer or exchange offer expires;

ER1 = the
Exchange Rate in effect on the second day immediately following the date
such tender offer or exchange offer expires;

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AC = the aggregate value of all cash and any other
consideration (as determined by the Board of
Directors) paid or payable for the Common Stock purchased in such tender
or exchange offer;

OS0 = the
number of shares of Common Stock outstanding immediately prior to the
date such tender offer or exchange offer expires;

OS1 = the
number of shares of Common Stock outstanding immediately after the date
such tender or exchange offer expires (after giving effect to the purchase or
exchange of shares of Common Stock pursuant to such tender offer or exchange
offer); and

SP1 = the Closing Sale Price of the Common Stock
for the Trading Day next succeeding the date such tender offer or exchange
offer expires.

If the application of the
foregoing formula would result in a decrease in the Exchange Rate, no
adjustment to the Exchange Rate will be made.

Any adjustment to the Exchange Rate made pursuant to
this paragraph (e) shall become effective on the second day immediately following
the Expiration Time. If the Guarantor or one
of its Subsidiaries is obligated to purchase Common Stock pursuant to
any such tender offer or exchange offer but is permanently prevented by
applicable law from effecting any such
purchase or all such purchases are rescinded, the new Exchange Rate
shall be readjusted to be the Exchange Rate that would be in effect if such
tender offer or exchange offer had not been made.

(f)          Notwithstanding the foregoing, in the
event of an adjustment to the exchange rate pursuant to paragraphs (d) and (e)
above, in no event will the Exchange Rate
exceed 51.0986 shares of Common Stock per each $1,000 principal amount of the
Notes (the “Maximum Exchange Rate”).
The Maximum Exchange Rate shall be adjusted in the same manner and for
the same events as the Exchange Rate is adjusted pursuant to clauses (a), (b)
and (c) above.

(g)         If the Guarantor has in effect a
stockholder’s rights plan while any Notes remain outstanding, Holders of Notes
will receive, upon an exchange of Notes in respect of which the Issuer elects to deliver any Net Shares, in addition to
such Net Shares, rights under the Guarantor’s stockholder rights plan
unless, prior to exchange, the rights have expired, terminated or been redeemed
or unless the rights have separated from the Common Stock. If the rights
provided for in the stockholder’s rights plan adopted by the Guarantor have
separated from the Common Stock in accordance with the provisions of the
applicable stockholder rights agreement so that Holders of Notes would not be
entitled to receive any rights in respect of any Net Shares that the Issuer
elects to deliver upon an exchange of Notes, the Exchange Rate will be adjusted
at the time of separation as if the Guarantor had distributed, to all holders
of Common Stock, capital stock, evidences of indebtedness or other assets or
property pursuant to paragraph (c) above, subject to readjustment upon the
subsequent expiration, termination or redemption of the rights.

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In addition to the adjustments pursuant to paragraphs
(a) through (e) above, the Issuer may increase the Exchange Rate in order to
avoid or diminish any income tax to holders
of Common Stock resulting from any dividend or distribution of capital stock
(or rights to acquire Common Stock) or from any event treated as such
for income tax purposes. The Issuer may also, from time to time, to the extent
permitted by applicable law and the applicable rules of the New York Stock
Exchange, increase the Exchange Rate by any amount for any period if the Issuer
has determined that such increase would be in the best interests of the Issuer
or the Guarantor. If the Issuer makes such determination,
it will be conclusive and the Issuer will deliver to the Exchange Agent and
Holders of the Notes a notice of the increased Exchange Rate and the period
during which it will be in effect at least fifteen (15) days prior to the date
the increased Exchange Rate takes effect in accordance with applicable law.

The Issuer shall not make any adjustment to the
Exchange Rate if Holders of the Notes participate in the dividend, distribution
or transaction that would otherwise result in
an adjustment to the Exchange Rate at the same time as holders of the Common
Stock and as if such Holders of Notes owned a number of shares of Common
Stock equal to a fraction the numerator of which is the product of the Exchange
Rate in effect on the ex-dividend date or effective date for the relevant
dividend, distribution or transaction, and  the
aggregate principal amount of Notes held by such Holder and the denominator of
which is one thousand dollars ($1,000).

Notwithstanding anything to the
contrary contained herein, in addition to the other events set forth
herein on account of which no adjustment to the Exchange Rate shall be made,
the Applicable Exchange Rate shall not be adjusted for:

(i)            the issuance of any Common Stock
pursuant to any present or future plan providing for the reinvestment of
dividends or interest payable on securities
of the Issuer or those of the Guarantor and the investment of additional
optional amounts in the Common Stock under any plan;

(ii)           the issuance of any the Common Stock
or options or rights to purchase those
shares pursuant to any present or future employee, director, trustee  or consultant benefit plan, employee agreement or
arrangement or program of the Issuer or the Guarantor;

(iii)          the issuance of any the Common Stock
pursuant to any option, warrant, right, or
exercisable, exchangeable or convertible security outstanding as of the
date the Notes were first issued;

(iv)          a
change in the par value of the Common Stock;

(v)           accrued and unpaid interest;

(vi)          accumulated and unpaid dividends or
distributions; and

(vii)         the
issuance of Units by the Issuer and the issuance of the Common Stock or
the payment of cash upon redemption thereof.

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No adjustment in the Exchange Rate will be required
unless the adjustment would require an increase or decrease of at least 1% of
the Exchange Rate. If the adjustment is not made because the adjustment does
not change the Exchange Rate by at least 1%, then the adjustment that is not
made will be carried forward and taken into account in any future adjustment.
All required calculations will be made to the nearest cent or 1/1000th of a
share, as the case may be. Notwithstanding the foregoing, if the Notes are
called for redemption, all adjustments not previously made will be made on the
applicable Redemption Date.

Whenever the Exchange Rate is adjusted as herein
provided, the Guarantor or the Issuer shall as promptly as reasonably
practicable file with the Trustee and any Exchange Agent other than the Trustee
an Officers’ Certificate setting forth the Exchange Rate after such adjustment
and setting forth a brief statement of the facts requiring such adjustment.
Promptly after delivery of such certificate, the Guarantor or the Issuer shall
prepare a notice of such adjustment of the Exchange Rate setting forth the
adjusted Exchange Rate and the date on which each adjustment becomes effective
and shall deliver such notice of such adjustment of the Exchange Rate to the
Holders of the Notes within twenty (20) Business Days of the Effective Date of
such adjustment. Failure to deliver such notice shall not affect the legality
or validity of any such adjustment.

Unless and until the Exchange Agent receives written
notice setting forth an adjustment to the Exchange Rate, the Exchange Agent may
assume without inquiry that the Exchange Rate has not been adjusted and that
the current Exchange Rate of which it has knowledge remains in effect.

For purposes of this Section
13.05, the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Guarantor but shall
include shares issuable in respect of scrip certificates issued in lieu of
fractions of shares of Common Stock.

If any of the following events occur, namely (i) any
reclassification or change of the outstanding Common Stock (other than a
subdivision or combination to which Section 13.05(a) applies), (ii) any
consolidation, merger or combination of the Guarantor with another Person, or a
binding share exchange in respect of all of the outstanding Common Stock as a
result of which holders of Common Stock shall be entitled to receive stock,
other securities or other property or assets (including cash) with respect to
or in exchange for such the Common Stock or (iii) any sale or conveyance of all
or substantially all of the properties and assets of the Guarantor to any other
Person as a result of which holders of Common Stock shall be entitled to
receive stock, other securities or other property or assets (including cash)
with respect to or in exchange for such the
Common Stock, then the Guarantor or the successor or purchasing Person, as the
case may be, shall execute with the Trustee a supplemental indenture (which
shall comply with the Trust Indenture Act as in force at the date of execution
of such supplemental indenture). Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 13.05. The Guarantor shall cause
notice of the execution of such supplemental indenture to be delivered to each
Holder of Notes within twenty (20)

 74
 

Business Days after execution thereof. Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture. The
provisions of this paragraph shall similarly apply to successive
reclassifications, changes, consolidations, mergers, combinations, sales and
conveyances. If the provisions of this paragraph applies to any event or
occurrence, then the provisions of Sections Section 13.05(a) through (g) shall
not apply.

Section 13.06. Taxes
on Shares Issued. The issue of stock certificates, if any, on
exchange of Notes shall be made without charge to the exchanging Noteholder for
any documentary, stamp or similar issue or transfer tax in respect of the issue
thereof. The Issuer shall not, however, be required to pay any such tax which
may be payable in respect of any transfer involved in the issue and delivery of
stock in any name other than that of the holder of any Note exchanged, and the
Issuer shall not be required to issue or deliver any such stock certificate
unless and until the Person or Persons requesting the issue thereof shall have paid to the Issuer the amount of such tax or
shall have established to the satisfaction of the Issuer that such tax
has been paid.

Section 13.07.  Reservation of Shares, Shares to
Be Fully Paid; Compliance with Governmental Requirements; Listing of
Common Stock. The Guarantor shall provide, free from preemptive rights, out
of its authorized but unissued shares or shares held in treasury, sufficient shares of Common Stock to provide for the exchange
of the Notes as required by this Indenture from time to time as such
Notes are presented for exchange.

The Guarantor covenants that all
shares of Common Stock which may be issued upon exchange of Notes will
upon issue be fully paid and non-assessable by the Guarantor and free from all
taxes, liens and charges with respect to the issue thereof.

The Guarantor covenants that, if any shares of Common
Stock to be provided for the purpose of exchange of Notes hereunder require
registration with or approval of any governmental authority under any federal
or state law before such shares may be validly issued upon exchange, the
Guarantor shall, as expeditiously as possible secure such registration or
approval, as the case may be.

The Guarantor further covenants that, if at any time
the Common Stock shall be listed on the New York Stock Exchange or any other
national or regional securities exchange or automated quotation system, the
Guarantor will, if permitted by the rules of such exchange or automated
quotation system, list and keep listed, so long as the Common Stock shall be so
listed on such exchange or automated quotation system, all the Common Stock
issuable upon exchange of the Notes; provided
that if the rules of such exchange or automated quotation system
permit the Guarantor to defer the listing of such the Common Stock until the
first exchange of the Notes in accordance with the provisions of this
Indenture, the Guarantor covenants to list such the Common Stock issuable upon
exchange of the Notes in accordance with the requirements of such exchange or
automated quotation system at such time.

Section 13.08. Responsibility
of Trustee. The Trustee and any other Exchange Agent shall not at
any time be under any duty or responsibility to any holder of Notes to

 75
 

determine the Exchange Rate or whether any facts exist which may
require any adjustment of the Exchange Rate, or with respect to the nature or
extent or calculation of any such adjustment when made, or with respect to the
method employed, or herein or in any supplemental indenture provided to be
employed, in making the same. The Trustee and any other Exchange Agent shall
not be accountable with respect to the validity or value (or the kind or
amount) of any shares of Common Stock, or of any capital stock, other
securities or other assets or property, which may at any time be issued or delivered
upon the exchange of any Note; and the Trustee and any other Exchange Agent
make no representations with respect
thereto. Neither the Trustee nor any Exchange Agent shall be responsible
for any failure of the Issuer to issue, transfer or deliver any shares of
Common Stock or stock certificates or other securities or property or cash upon
the surrender of any Note for the purpose of exchange or to comply with any of
the duties, responsibilities or covenants of the Issuer contained in this
Article 13. Without limiting the generality of the foregoing, neither the
Trustee nor any Exchange Agent shall be under any responsibility to determine
the correctness of any provisions contained in any supplemental indenture
entered into pursuant to Section 13.05 relating either to the kind or amount of
shares of capital stock or other securities or other assets or property
(including cash) receivable by Noteholders upon the exchange of their Notes
after any event referred to in such Section 13.05 or to any adjustment to be
made with respect thereto, but, subject to the provisions of Section 7.01, may
accept as conclusive evidence of the correctness of any such provisions, and
shall be protected in relying upon, the Officers’ Certificate (which the Issuer
shall be obligated to file with the Trustee prior to the execution of any such supplemental indenture) with respect thereto.
The Trustee shall not at any time be under any duty or responsibility to
any holder of Notes to determine the accuracy of the method employed in
calculating the Trading Price or whether any facts exist which may require any
adjustment of the Trading Price.

Section 13.09. Notice to Holders Prior to
Certain Actions. In case:

(a)          the Guarantor shall declare a dividend
(or any other distribution) on the Common Stock that would require an
adjustment in the Exchange Rate pursuant to Section 13.05; or

(b)         the Guarantor shall authorize the
granting to the holders of all or substantially
all of the Common Stock of rights or warrants to subscribe for or purchase
any share of any class or any other rights or warrants; or

(c)          of any reclassification or
reorganization of the Common Stock (other than a subdivision or combination of
its outstanding Common Stock, or a change in par value, or from par value to no
par value, or from no par value to par value), or of any consolidation,
combination, merger or share exchange to which the Issuer or the Guarantor is a
party and for which approval of any stockholders of the Guarantor is required, or of the sale or transfer of all or
substantially all of the assets of the Guarantor; or

(d)         of the voluntary or involuntary
dissolution, liquidation or winding up of the Guarantor;

 76
 

the Issuer shall cause to be filed with the Trustee and to be delivered
to each holder of Notes at its address appearing on the Note Register provided
for in Section 2.05 of this Indenture, as
promptly as possible but in any event at least ten (10) calendar days prior to
the applicable date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the purpose of such dividend, distribution or
rights or warrants, or, if a record is not to be taken, the date as of which
the holders of Common Stock of record to be entitled to such dividend,
distribution or rights are to be determined, or (y) (i) the date on which such
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up is expected to become effective or occur, and the
date as of which it is expected that holders of Common Stock of record shall be
entitled to exchange their Common Stock for securities or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up and (ii) either (aa) the Issuer will not
withhold under Section 1445 of the Code in connection with such exchange, or
(bb) the Issuer, after reasonable efforts, believes that the Guarantor is not,
or has not been able to determine whether it is, a domestically controlled
qualified investment entity as defined in Section 897(h) of the Code and,
therefore, will withhold under Section 1445 of the Code in connection with such
exchange unless another exception to withholding is available at such time.
Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such dividend, distribution, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up.

Section 13.10. Settlement upon Exchange. (a) Upon
exchange of any Notes, subject to Sections 13.01, 13.02 and this Section 13.10,
the Issuer shall satisfy its obligation upon exchange (the “Exchange Obligation”)  by
payment and delivery of cash and, if
applicable as provided herein, shares of Common Stock for each $1,000 aggregate
principal amount of Notes tendered for exchange in accordance with their terms.

(b)          Upon exchange of Notes, the Issuer
will deliver, in respect of each $1,000 principal amount of Notes tendered for
exchange in accordance with their terms:

(i)            cash in an amount (the “Principal Return”)  equal
to the lesser of (A) the aggregate principal amount of the Notes to be
exchanged and (B) the aggregate Exchange Value of the Notes to be exchanged;

(ii)           if the Exchange Value is greater than
the Principal Return, an amount (the “Net Amount”),  at the election of
the Issuer, in cash (the “Net Cash Amount”), shares of Common Stock (the “Net Shares”) determined pursuant to Section
13.10(c), or a combination of cash and shares of Common Stock with an aggregate
value equal to the difference between the Exchange Value and the Principal
Return; and

(iii)          an amount in cash in lieu of any
fractional shares of Common Stock
deliverable in connection with payment of the Net Shares based upon the
Average Price.

 77
 

(c)          The Net Shares to be delivered pursuant
to Section 13.10(b) will be equal to the sum of the Daily Share Amounts for
each Trading Day during the Applicable Exchange Period as to which the Issuer
has elected to deliver shares.

(d)         The Exchange Value, Principal Return,
Net Amount, Net Cash Amount and the number of Net Shares, as applicable, will
be determined by the Issuer promptly after the end of the Applicable Exchange
Period (the “Determination Date”). Prior
to the close of business on the second Trading Day following the date on which
Notes are tendered for exchange, the Issuer shall inform the Exchange Agent and
the Holders of such Notes of its election to pay cash for all or a portion of
the Net Amount and, if applicable, the portion of the Net Amount that will be
paid in cash and the portion that will be delivered in the form of Net Shares.

(e)          Payment of the Principal Return and
cash in lieu of fractional shares, and delivery of the Net Shares or payment of
the Net Cash Amount as applicable, shall be made by the Issuer as promptly as
practicable following the Determination Date, but in no event later than five
Business Days thereafter (the “Exchange Settlement Date”)  to
the holder of a Note surrendered for exchange, or such holders nominee or
nominees, and issue, or cause to be issued, and deliver to the Exchange Agent
or to such holder, or such holders nominee or nominees, certificates or a
book-entry transfer through the Depositary
for the number of full shares of Common Stock equal to the Net Shares, if any,
to which such holder shall be entitled as part of such Exchange Obligation.

Section 13.11. Exchange
Rate Adjustment After Certain Designated Events. (a) Subject to the
provisions hereof, if a Noteholder elects to exchange its Notes following the
occurrence of a transaction described in clause (1) of the definition of
Designated Event that occurs prior to April
5, 2012, the Issuer will increase the Applicable Exchange Rate for the
Notes so surrendered for exchange by a number of shares of Common Stock (the “Additional Designated
Event Shares”) as
specified below; provided that the
Additional Designated Event Shares will only
be payable as set forth below. An exchange of Notes will be deemed for
these purposes to be in connection with such a Designated Event if the Exchange
Notice is received by the Exchange Agent from and after the Effective Date of
the Designated Event until the corresponding Designated Event Repurchase Date.

(b)         The number of Additional Designated
Event Shares will be determined by reference to the table in paragraph (e)
below and is based on the date on which the relevant Designated Event
transaction becomes effective (the “Effective Date”) and the price (the “Stock Price”) paid per share of Common Stock in
such transaction. If the holders of Common
Stock receive only cash in the relevant Designated Event transaction,
the Stock Price will equal the cash amount paid per share of Common Stock. In
all other cases, the Stock Price will equal the average of the Closing Sale
Prices of the Common Stock on the ten (10) consecutive Trading Days up to but
excluding the Effective Date.

(c)          The Stock Prices set forth in the
first row of the table below shall be adjusted
as of any date on which the Exchange Rate of the Notes is adjusted pursuant to
Section 13.05. The adjusted Stock Prices will equal the Stock Prices applicable

 78
 

immediately prior to such adjustment, multiplied
by a fraction, (i) the numerator of which is the Exchange Rate
immediately prior to the adjustment giving rise to the Stock Price adjustment
and (ii) the denominator of which is the Exchange Rate as so adjusted.

(d)         The number of Additional Designated
Event Shares set forth in the table below
will be adjusted in the same manner and for the same events as the Exchange
Rate is adjusted pursuant to Section 13.05.

(e)          The following table sets forth the
Stock Price and number of Additional Designated Event Shares issuable per
$1,000 principal amount of Notes:

 

	
  

  	
   

  	
  Stock Price

  	
   

  
	
  Effective Date

  	
   

  	
  $

  	
  19.57

  	
   

  	
  $

  	
  22.00

  	
   

  	
  $

  	
  24.00

  	
   

  	
  $

  	
  26.00

  	
   

  	
  $

  	
  28.00

  	
   

  	
  $

  	
  30.00

  	
   

  	
  $

  	
  32.00

  	
   

  	
  $

  	
  34.00

  	
   

  	
  $

  	
  36.00

  	
   

  	
  $

  	
  38.00

  	
   

  	
  $

  	
  40.00

  	
   

  
	
  March 27, 2007

  	
   

  	
  8.5164

  	
   

  	
  5.6398

  	
   

  	
  4.0448

  	
   

  	
  2.9198

  	
   

  	
  2.1218

  	
   

  	
  1.5528

  	
   

  	
  1.1440

  	
   

  	
  0.8481

  	
   

  	
  0.6332

  	
   

  	
  0.4754

  	
   

  	
  0.3578

  	
   

  
	
  April 1, 2008

  	
   

  	
  8.5164

  	
   

  	
  5.6060

  	
   

  	
  3.9226

  	
   

  	
  2.7514

  	
   

  	
  1.9362

  	
   

  	
  1.3669

  	
   

  	
  0.9685

  	
   

  	
  0.6891

  	
   

  	
  0.4920

  	
   

  	
  0.3525

  	
   

  	
  0.2518

  	
   

  
	
  April 1, 2009

  	
   

  	
  8.5164

  	
   

  	
  5.4575

  	
   

  	
  3.6849

  	
   

  	
  2.4781

  	
   

  	
  1.6615

  	
   

  	
  1.1113

  	
   

  	
  0.7413

  	
   

  	
  0.4942

  	
   

  	
  0.3285

  	
   

  	
  0.2176

  	
   

  	
  0.1411

  	
   

  
	
  April 1, 2010

  	
   

  	
  8.5164

  	
   

  	
  5.1130

  	
   

  	
  3.2495

  	
   

  	
  2.0307

  	
   

  	
  1.2494

  	
   

  	
  0.7570

  	
   

  	
  0.4515

  	
   

  	
  0.2650

  	
   

  	
  0.1519

  	
   

  	
  0.0834

  	
   

  	
  0.0435

  	
   

  
	
  April 1, 2011

  	
   

  	
  8.5164

  	
   

  	
  4.4077

  	
   

  	
  2.4489

  	
   

  	
  1.2850

  	
   

  	
  0.6375

  	
   

  	
  0.2981

  	
   

  	
  0.1290

  	
   

  	
  0.0476

  	
   

  	
  0.0164

  	
   

  	
  0.0037

  	
   

  	
  0.0000

  	
   

  
	
  April 5, 2012

  	
   

  	
  8.5164

  	
   

  	
  2.8724

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
																																			

 

(f)          If the exact Stock Price and Effective
Date are not set forth on the table above, then:

(i)            if the Stock Price is between two
Stock Prices in the table or the Effective Date is between two Effective Dates
in the table, the number of Additional Designated Event Shares will be
determined by a straight-line interpolation
between the number of Additional Designated Event Shares set forth for
the higher and lower Stock Prices and the earlier and later Effective Dates, as
applicable, based on a 365-day year;

(ii)           if
the Stock Price is equal to or in excess of $40.00 per share of Common
Stock (the “Make Whole Cap”), no Additional Designated Event
Shares will be issued upon exchange; and

(iii)          if
the Stock Price is less than $19.57 per share of Common Stock (the “Make Whole Floor”), no Additional Designated Event Shares will be issued upon
exchange.

(g)         The Make Whole Cap and Make Whole Floor
shall be adjusted as of any date the Exchange Rate of the Notes is adjusted
pursuant to Section 13.05. The adjusted Make Whole Cap or Make Whole Floor, as
the case may be, shall equal the Make Whole Cap or Make Whole Floor, as the
case may be, applicable immediately prior to such adjustment, multiplied by a
fraction, (i) the numerator of which is the Exchange Rate immediately prior to the adjustment giving rise to
the adjustment and (ii) the denominator of which is the Exchange Rate as
so adjusted.

(h)         Notwithstanding the foregoing, in no
event shall the total number of shares of Common Stock issuable upon exchange
exceed 51.0986 shares per $1,000 principal amount, subject to adjustment as
provided for in Section 13.05.

 

 79

Section 13.12. Ownership
Limit and Withholding. (a) Notwithstanding any other provision of
the Notes, no Holders of Notes shall be entitled to receive shares of Common Stock upon an exchange of Notes to the
extent that receipt of such shares would cause such Holder (together
with such Holder’s Affiliates) to exceed the ownership limit contained in
Article VI of the Charter. The Trustee shall have no obligation for monitoring
ownership limits upon the transfer or exchange of Notes.

(b)           At
the Maturity Date, upon earlier redemption or repurchase of the Notes or at any
time a payment is made with respect to the Notes, and as otherwise required by
law, the Issuer may deduct and withhold from such amount otherwise deliverable
to the Holder the amount required to be deducted and withheld under applicable
law, and such amount shall be deemed paid to such Holder for all purposes of
this Indenture.

Section 13.13. Calculation
in Respect of Notes. Except as otherwise specifically stated herein
or in the Notes, all calculations to be made in respect of the Notes shall be
the obligation of the Issuer. All calculations made by the Issuer or its agent
as contemplated pursuant to the terms hereof and of the Notes shall be made in
good faith and be final and binding on the Notes and the Holders of the Notes
absent manifest error. The Issuer shall
provide a schedule of calculations to the Trustee, and the Trustee shall be
entitled to rely upon the accuracy of the calculations by the Issuer without
independent verification. The Trustee shall forward calculations made by the
Issuer to any Holder of Notes upon written request.

Section 13.14. Surrender
to Financial Institution in Lieu of Exchange. When a Holder
surrenders Notes for exchange, the Issuer may direct the Exchange Agent to
surrender, on or prior to the commencement of the Applicable Exchange Period,
such Notes to a financial institution
designated by the Issuer for transfer in lieu of exchange. In order to
accept any Notes surrendered for exchange, the designated institution must
agree to deliver, in exchange for such Notes, either (i) all cash or a
combination of cash and shares of Common Stock equal to the consideration due
upon exchange, as determined under Section 13.10(b) or (ii) a number of shares
of Common Stock per $1,000 of Notes equal to the Exchange Rate, at the option
of the designated financial institution. By the close of business on the
Trading Day immediately preceding the start of the Applicable Exchange Period,
the Issuer shall notify the Exchange Agent and the Holder surrendering Notes
for exchange that the Issuer has directed the designated financial institution
to accept the Notes in lieu of exchange and such financial institution will be
required to notify the Exchange Agent whether it will deliver, upon exchange,
shares of Common Stock, cash or a specified combination thereof.

If the designated financial institution accepts any
such Notes, it will deliver the appropriate number of shares of Common Stock or
cash, or any combination thereof, to the
Exchange Agent, and the Exchange Agent will deliver those shares of Common
Stock or cash, or combination thereof, as the case may be, to the
Holder. Any Notes accepted by the designated financial institution will remain
outstanding. If the designated financial institution agrees to accept any Notes
but does not timely deliver the related consideration, or if such designated
financial institution does not accept the Notes, the Issuer will, as promptly
as practical thereafter, but not later than the third Business Day

 80
 

following determination of the
Exchange Value, exchange the Notes for cash and shares, if any, of
Common Stock, as described in Section 13.02.

The Issuer’s designation of a financial institution to
which the Notes may be surrendered in lieu
of exchange does not require the financial institution to accept any
Notes. The Issuer will not pay any consideration to, or otherwise enter into
any agreement with, the designated financial institution for or with respect to
such designation.

ARTICLE 14

MEETINGS OF HOLDERS OF NOTES

Section 14.01. Purposes
for Which Meetings May Be Called. A meeting of Holders of Notes may
be called at any time and from time to time pursuant to this Article 14 to
make, give or take any request, demand, authorization, direction, notice,
consent, waiver or other act provided by this Indenture to be made, given or
taken by Holders of Notes.

Section 14.02. Call,
Notice and Place of Meetings. (a) The Trustee may at any time call a
meeting of Holders of Notes for any purpose specified in Section 14.01, to be
held at such time and at such place in The City of New York, New York as the
Trustee shall determine. Notice of every meeting of Holders of Notes, setting
forth the time and the place of such meeting and in general terms the action
proposed to be taken at such meeting, shall be given, in the manner provided in
Section 16.03, not less than 21 nor more than 180 days prior to the date fixed
for the meeting.

(b)        In case at any time the Issuer, the
Guarantor or the Holders of at least 10% in principal amount of the outstanding
Notes shall have requested the Trustee to call a meeting of the Holders of
Notes for any purpose specified in Section 14.01, by written request setting
forth in reasonable detail the action proposed to be taken at the meeting, and
the Trustee shall not have delivered notice of or made the first publication of
the notice of such meeting within 21 days after receipt of such request or
shall not thereafter proceed to cause the meeting to be held as provided
herein, then the Issuer, the Guarantor, if applicable, or the Holders of Notes
in the amount above specified, as the case may be, may determine the time and
the place in the City of New York, New York, for such meeting and may call such
meeting for such purposes by giving notice thereof as provided in clause (a) of
this Section.

Section 14.03. Persons
Entitled to Vote at Meetings. To be entitled to vote at any meeting
of Holders of Notes, a Person shall be (a) a Holder of one or more outstanding
Notes, or (b) a Person appointed by an instrument in writing as proxy for a
Holder or Holders of one or more outstanding Notes by such Holder or Holders.
The only Persons who shall be entitled to be
present or to speak at any meeting of Holders of Notes shall be the
Persons entitled to vote at such meeting and their counsel, any representatives
of the Trustee and its counsel, any representatives of the Guarantor and its
counsel and any representatives of the Issuer and its counsel.

 81
 

Section 14.04. Quorum;
Action. The Persons entitled to vote a majority in principal amount
of the outstanding Notes shall constitute a quorum for a meeting of Holders of
Notes; provided, however, that if
any action is to be taken at the meeting with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action which may be
made, given or taken by the Holders of not less than a specified percentage in
principal amount of the outstanding Notes, the Persons holding or representing
the specified percentage in principal amount of the outstanding Notes will
constitute a quorum. In the absence of a quorum within sixty (60) minutes after
the time appointed for any such meeting, the meeting shall, if convened at the
request of Holders of Notes, be dissolved. In any other case, the meeting may
be adjourned for a period of not less than ten (10) days as determined by the
chairman of the meeting prior to the adjournment of such meeting. In the
absence of a quorum at any such adjourned meeting, such adjourned meeting may
be further adjourned for a period of not less than ten (10) days as determined
by the chairman of the meeting prior to the adjournment of such adjourned
meeting. Notice of the reconvening of any adjourned meeting shall be given as
provided in Section 14.02, except that such notice need be given only once not
less than five days prior to the date on which the meeting is scheduled to be
reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly the percentage, as provided
above, of the principal amount of the outstanding Notes which shall constitute
a quorum.

Except as limited by the proviso to Section 9.02, any
resolution presented to a meeting or adjourned meeting duly reconvened at which
a quorum is present as aforesaid may be adopted only by the affirmative vote of
the Holders of a majority in principal amount of the outstanding Notes; provided, however, that, except as limited
by the proviso to Section 9.02, any resolution with respect to any request,
demand, authorization, direction, notice, consent, waiver or other action which
this Indenture expressly provides may be made, given or taken by the Holders of
a specified percentage, which is less than a majority, in principal amount of
the outstanding Notes may be adopted at a meeting or an adjourned meeting duly
reconvened and at which a quorum is present as aforesaid by the affirmative
vote of the Holders of such specified percentage in principal amount of the
outstanding Notes.

Any resolution passed or decision
taken at any meeting of Holders of Notes duly held in accordance with
this Section 14.04 shall be binding on all the Holders of Notes, whether or not
such Holders were present or represented at the meeting.

Section 14.05. Determination
of Voting Rights; Conduct and Adjournment of Meetings. (a)
Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Holders
of Notes in regard to proof of the holding of Notes and of the appointment of
proxies and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall deem appropriate. Except as otherwise permitted or required by any
such regulations, the holding of Notes shall be proved in the manner specified
in Section 8.03 and the appointment of any proxy shall be proved in the manner
specified in Section 8.01.

 82
 

(b)         The Trustee shall, by an instrument in
writing, appoint a temporary chairman of the meeting, unless the meeting shall
have been called by the Issuer or by Holders of Notes as provided in Section
14.02(b), in which case the Issuer, the Guarantor or the Holders of Notes
calling the meeting, as the case may be, shall in like manner appoint a
temporary chairman. A permanent chairman and a permanent secretary of the
meeting shall be elected by vote of the Persons entitled to vote a majority in
principal amount of the outstanding Notes of such series represented at the
meeting.

(c)          At any meeting, each Holder of a Note
or proxy shall be entitled to one vote for
each $1,000 principal amount of Notes held or represented by him;  provided, however, that
no vote shall be cast or counted at any meeting in respect of any Note
challenged as not outstanding and ruled by the chairman of the meeting to be
not outstanding. The chairman of the meeting
shall have no right to vote, except as a Holder of a Note or proxy.

(d)         Any meeting of Holders of Notes duly
called pursuant to Section 14.02 at which a quorum is present may be adjourned
from time to time by Persons entitled to vote
a majority in principal amount of the outstanding Notes represented at the
meeting; and the meeting may be held as so adjourned without further
notice.

Section 14.06. Counting
Votes and Recording Action of Meetings. The vote upon any resolution
submitted to any meeting of Holders of Notes shall be by written ballots on
which shall be subscribed the signatures of the Holders of Notes or of their
representatives by proxy and the principal amounts and serial numbers of the
outstanding Notes held or represented by them. The permanent chairman of the
meeting shall appoint two inspectors of votes who shall count all votes cast at
the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in triplicate of all
votes cast at the meeting. A record, at least in triplicate, of the proceedings of each meeting of Holders of
Notes shall be prepared by the secretary of the meeting and there shall
be attached to said record the original reports of the inspectors of votes on
any vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 14.02 and, if
applicable, Section 14.04. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Issuer and the Guarantor, and another to the
Trustee to be preserved by the Trustee, the latter to have attached thereto the
ballots voted at the meeting. Any record so signed and verified shall be conclusive
evidence of the matters therein stated.

ARTICLE 15

GUARANTEE

Section 15.01. Guarantee.
By its execution hereof, the Guarantor acknowledges and agrees that
it receives substantial benefits from the Issuer and that the Guarantor is
providing its Guarantee for good and valuable consideration, including, without
limitation, such substantial benefits. Accordingly, subject to the provisions
of this Article 15, the Guarantor hereby unconditionally guarantees to each
Holder of a Note

 83
 

authenticated and delivered by the Trustee and its
successors and assigns that: (i) the principal of (including the Redemption
Price or repurchase price upon redemption or repurchase, as the case may be,
pursuant to Article 3), premium, if any, and interest and Additional Interest, if
any, on the Notes shall be duly and punctually paid in full when due, whether
at the Maturity Date, upon acceleration, upon redemption, upon a repurchase,
upon repurchase due to a Designated Event or otherwise, and interest on overdue
principal, premium, if any, Additional Interest, if any, and (to the extent
permitted by law) interest on any interest, if any, on the Notes and all other
obligations of the Issuer to the Holders or the Trustee hereunder or under the
Notes (including fees, expenses or other) shall be promptly paid in full or
performed, all in accordance with the terms hereof; and (ii) in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, the same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at the Maturity
Date, by acceleration, call for redemption, upon repurchase, upon repurchase due to a Designated Event or otherwise, subject,
however, in the case of clauses (i) and (ii) above, to the limitations
set forth in Section 15.03 hereof (collectively, the “Guarantee Obligations”).

Subject to the provisions of this Article 15, the
Guarantor hereby agrees that its Guarantee hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any thereof, the entry of any
judgment against the Issuer, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of the Guarantor. The Guarantor hereby waives and relinquishes: (a) any
right to require the Trustee, the Holders or the Issuer (each, a “Benefited Party”)  to proceed against
the Issuer or any other Person or to proceed against or exhaust any security
held by a Benefited Party at any time or to pursue any other remedy in any
secured partys power before proceeding against the Guarantor; (b) any defense
that may arise by reason of the incapacity, lack of authority, death or
disability of any other Person or Persons or the failure of a Benefited Party
to file or enforce a claim against the estate (in administration, bankruptcy or
any other proceeding) of any other Person or Persons; (c) demand, protest and
notice of any kind (except as expressly required by this Indenture), including
but not limited to notice of the existence, creation or incurring of any new or
additional indebtedness or obligation or of any action or non-action on the
part of the Guarantor, the Issuer, any Benefited Party, any creditor of the
Guarantor or the Issuer or on the part of any other Person whomsoever in
connection with any obligations the performance of which are hereby guaranteed;
(d) any defense based upon an election of remedies by a Benefited Party,
including but not limited to an election to proceed against the Guarantor for
reimbursement; (e) any defense based upon any statute or rule of law which
provides that the obligation of a surety must be neither larger in amount nor
in other respects more burdensome than that of the principal; (f) any defense
arising because of a Benefited Party’s election, in any proceeding instituted
under the Bankruptcy Law, of the application of Section 1111 (b)(2) of the
Bankruptcy Code; and (g) any defense based on any borrowing or grant of a
security interest under Section 364 of the Bankruptcy Code. The Guarantor
hereby covenants that, except as otherwise provided therein, the Guarantee
shall not be discharged except by payment in full of all Guarantee Obligations,

 84
 

including the principal, premium,
if any, and interest on the Notes and all other costs provided for under
this Indenture or as provided in Article 7.

If any Holder or the Trustee is required by any court
or otherwise to return to either the Issuer or the Guarantor, or any trustee or
similar official acting in relation to either the Issuer or the Guarantor, any
amount paid by the Issuer or the Guarantor to the Trustee or such Holder, the
Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. The Guarantor
agrees that it shall not be entitled to any right of subrogation in
relation to the Holders in respect of any Guarantee Obligations hereby until
payment in full of all such obligations guaranteed hereby. The Guarantor agrees
that, as between it, on the one hand, and the Holders of Notes and the Trustee,
on the other hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article 6 hereof for the purposes hereof,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Guarantee Obligations, and (y) in the event of
any acceleration of such obligations as provided in Article 6 hereof, such
Guarantee Obligations (whether or not due and payable) shall forthwith become
due and payable by the Guarantor for the purpose of the Guarantee.

Section 15.02. Execution
and Delivery of Guarantee. To evidence the Guarantee set forth in
Section 15.01 hereof, the Guarantor agrees that a notation of the Guarantee
substantially in the form included in Exhibit A hereto shall be endorsed
on each Note authenticated and delivered by the Trustee and that this Indenture
shall be executed on behalf of the Guarantor by an officer of the Guarantor.

The Guarantor agrees that the
Guarantee set forth in this Article 15 shall remain in full force and
effect and apply to all the Notes notwithstanding any failure to endorse on
each Note a notation of the Guarantee.

If an Officer whose facsimile
signature is on a Note or a notation of Guarantee no longer holds that
office at the time the Trustee authenticates the Note on which the Guarantee is
endorsed, the Guarantee shall be valid nevertheless.

The delivery of any Note by the Trustee, after the
authentication thereof hereunder, shall
constitute due delivery of the Guarantee set forth in this Indenture on
behalf of the Guarantor.

Section 15.03. Limitation
of Guarantors Liability; Certain Bankruptcy Events. (a) The
Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is
the intention of all such parties that the Guarantee Obligations of the
Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or
conveyance for purposes of any Bankruptcy Law, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer
Act or any similar federal or state law. To effectuate the foregoing intention,
the  Holders and the Guarantor hereby
irrevocably agree that the Guarantee Obligations of the Guarantor under
this Article 15 shall be limited to the maximum amount as shall, after giving
effect to all other contingent and fixed liabilities of the Guarantor, result
in the Guarantee Obligations of the
Guarantor under the Guarantee not constituting a fraudulent transfer or
conveyance.

 85
 

(b)        The
Guarantor hereby covenants and agrees, to the fullest extent that it may
do so under applicable law, that in the event of the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Issuer, the Guarantor shall
not file (or join in any filing of), or otherwise seek to participate in the
filing of, any motion or request seeking to stay or to prohibit (even
temporarily) execution on the Guarantee and hereby waives and agrees not to
take the benefit of any such stay of execution, whether under Section 362 or
105 of the Bankruptcy Law or otherwise.

Section 15.04. Application
of Certain Terms and Provisions to the Guarantor. (a) For purposes of any provision of this Indenture
which provides for the delivery by the Guarantor of an Officers’
Certificate and/or an Opinion of Counsel, the definitions of such terms in
Section 1.01 hereof shall apply to the Guarantor as if references therein to
the Issuer or the General Partner, as applicable, were references to the
Guarantor.

(b)         Any request, direction, order or demand
which by any provision of this Indenture is
to be made by the Guarantor shall be sufficient if evidenced as described in
Section 16.03 hereof as if references therein to the Issuer were references to
the Guarantor.

(c)          Any notice or demand which by any
provision of this Indenture is required or
permitted to be given or served by the Trustee or by the Holders of Notes to or
on the Guarantor may be given or served as described in Section 16.03
hereof as if references therein to the Issuer were references to the Guarantor.

(d)         Upon any demand, request or application
by the Guarantor to the Trustee to take any action under this Indenture, the
Guarantor shall furnish to the Trustee such certificates and opinions as are
required in Section 16.05 hereof as if all references therein to the Issuer
were references to the Guarantor.

ARTICLE 16

MISCELLANEOUS PROVISIONS

Section 16.01. Provisions
Binding on Issuer’s and Guarantor’s Successors. All the covenants,
stipulations, promises and agreements by the Issuer or Guarantor contained in this Indenture shall bind their
respective successors and assigns whether so expressed or not.

Section 16.02. Official
Acts by Successor Corporation. Any act or proceeding by any
provision of this Indenture authorized or required to be done or performed by
any board, committee or officer of the Issuer shall and may be done and
performed with like force and effect by the like board, committee or officer of
any Person that shall at the time be the lawful sole successor of the Issuer or
Guarantor.

Section 16.03. Addresses
for Notices, etc. Any notice or demand which by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the Holders of
Notes on the Issuer or Guarantor shall be in writing and shall be

 86
 

deemed to have been sufficiently given or made, for
all purposes, if given or served by being
deposited postage prepaid by registered or certified mail in a post office
letter box, or sent by overnight courier, or sent by telecopier
transmission addressed as follows:

To Issuer:

Extra Space Storage LP

2795 East Cottonwood
Parkway

Suite 400

Salt Lake City, Utah 84121 

Telecopier No.: (801) 365-4947 

Attention: Corporate Legal Counsel

To Guarantor:

Extra Space Storage Inc.

2795 East Cottonwood
Parkway 

Suite 400

Salt Lake City, Utah 84121 

Telecopier No.: (801) 365-4947 

Attention: Corporate Legal Counsel

Any notice, direction, request or demand hereunder to
or upon the Trustee shall be deemed to have been sufficiently given or made,
for all purposes, if given or served by being deposited, postage prepaid, by
registered or certified mail in a post office letter box, or sent by overnight
courier, or sent by telecopier transmission addressed as follows:

Wells Fargo Bank, N.A. 

Corporate Trust Services  

MAC N-9303-120

608 2nd Avenue South 

Minneapolis, MN 55479 

Telecopier No.: (612) 667-9825

Attention: Extra Space Storage Account Manager

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

Any
notice or communication delivered to a Noteholder shall be delivered at such
Noteholder’s address as it appears on the Note Register and shall be
sufficiently given to such Noteholder if so delivered within the time
prescribed.

Failure to deliver a notice or
communication to a Noteholder or any defect in it shall not affect its
sufficiency with respect to other Noteholders. If a notice or communication is delivered in the manner provided
above, it is duly given, whether or not the addressee receives it.

 87
 

Section 16.04. Governing
Law. This Indenture shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to conflict of law principles that would result in
the application of any laws other than the laws of the State of New
York.

Section 16.05. Evidence
of Compliance with Conditions Precedent, Certificates to Trustee. Upon
any application or demand by the Issuer to the Trustee to take any action under any of the provisions of this
Indenture, the Issuer shall furnish to the Trustee an Officers’
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with, and, if
requested by the Trustee, an Opinion of Counsel stating that, in the opinion of
such counsel, all such conditions precedent have been complied with.

Each certificate or opinion provided for in this
Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant provided for in this Indenture
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
statement or opinion contained in such certificate or opinion is based; (3) a
statement that, in the opinion of such person, such person has made such
examination or investigation as is necessary to enable such person 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;  provided,
however, that with respect
to matters of fact an Opinion of Counsel may rely on an Officers’ Certificate
or certificates of public officials.

Section 16.06. Legal
Holidays. In any case in which the Maturity Date of interest on or principal of the Notes or the Redemption
Date or Repurchase Date of any Note will not be a Business Day, then
payment of such interest on or principal of the Notes need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on the Maturity Date or the Redemption Date or Repurchase
Date, and no interest shall accrue for the period from and after such date.

Section 16.07. Trust
Indenture Act. This Indenture is hereby made subject to, and shall be governed by, the provisions of the
Trust Indenture Act required to be part of, and to govern indentures
qualified under, the Trust Indenture Act, but this incorporation by reference
shall not, for the avoidance of doubt and to the extent permitted by law, be
construed as subjecting this Indenture or the Trustee to the qualification
requirements under the Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof which is required to be
included in an indenture qualified under the Trust Indenture Act, such required
provision shall control.

Section 16.08. No
Security Interest Created. Nothing in this Indenture or in the Notes, expressed or implied, shall be construed to
constitute a security interest under the Uniform Commercial Code or
similar legislation, as now or hereafter enacted and in effect, in any
jurisdiction in which property of the Issuer or its subsidiaries is located.

 88
 

Section 16.09. Benefits
of Indenture. Nothing in this Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties hereto, any Paying
Agent, any authenticating agent, any Note Registrar and their successors
hereunder and the Holders of Notes any benefit or any legal or equitable right,
remedy or claim under this Indenture.

Section 16.10. Table
of Contents, Headings, etc. The table of contents and the titles 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.

Section 16.11. Authenticating
Agent. The Trustee may appoint an authenticating agent that shall be
authorized to act on its behalf, and subject to its direction, in the
authentication and delivery of Notes in connection with the original issuance
thereof and transfers and exchanges of Notes hereunder, including under
Sections 2.04, 2.05, 2.06, 2.07, 3.03, 3.05
and 3.06, as fully to all intents and purposes as though the authenticating
agent had been expressly authorized by this Indenture and those Sections to
authenticate and deliver Notes. For all purposes of this Indenture, the
authentication and delivery of Notes by the authenticating agent shall be
deemed to be authentication and delivery of such Notes “by the Trustee” and a
certificate of authentication executed on behalf of the Trustee by an
authenticating agent shall be deemed to satisfy any requirement hereunder or in
the Notes for the Trustee’s certificate of authentication. Such authenticating
agent shall at all times be a Person eligible to serve as trustee hereunder
pursuant to Section 7.09.

Any corporation into which any authenticating agent
may be merged or exchanged or with which it may be consolidated, or any
corporation resulting from any merger, consolidation or exchange to which any
authenticating agent shall be a party, or any corporation succeeding to the
corporate trust business of any authenticating agent, shall be the successor of the authenticating agent hereunder, if such
successor corporation  is otherwise
eligible under this Section 16.11, without the execution or filing of any paper
or any further act on the part of the parties hereto or the authenticating
agent or such successor corporation.

Any authenticating agent may at any time resign by
giving written notice of resignation to the Trustee and to the Issuer. The
Trustee may at any time terminate the agency of any authenticating agent by
giving written notice of termination to such authenticating agent and to the
Issuer. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time any authenticating agent shall cease to be eligible
under this Section, the Trustee shall either promptly appoint a successor
authenticating agent or itself assume the duties and obligations of the former
authenticating agent under this Indenture and, upon such appointment of a
successor authenticating agent, if made, shall give written notice of such
appointment of a successor authenticating agent to the Issuer and shall deliver
notice of such appointment of a successor authenticating agent to all Holders
of Notes as the names and addresses of such Holders appear on the Note
Register.

 89
 

The Issuer agrees to pay to the authenticating agent
from time to time such reasonable
compensation for its services as shall be agreed upon in writing between the
Issuer and the authenticating agent.

The provisions of Sections 7.02,
7.03, 7.04 and 8.03 and this Section 16.11 shall be applicable to any
authenticating agent.

Section 16.12. Execution in Counterparts. This
Indenture may be executed in any number of counterparts, each of which shall be
an original, but such counterparts shall together constitute but one and the
same instrument.

Section 16.13. Severability. In case any
provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, then (to the extent permitted by
law) the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

Wells Fargo Bank, N.A., hereby
accepts the trusts in this Indenture declared and provided, upon the
terms and conditions herein above set forth.

 90
 

IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed.

	
  

  	
  EXTRA SPACE
  STORAGE LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  ESS Holdings
  Business Trust I, its

  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth M.
  Woolley

  
	
   

  	
   

  	
  Name: Kenneth M. Woolley

  
	
   

  	
   

  	
  Title: Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXTRA SPACE STORAGE INC.,

  as Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kent W. Christensen

  
	
   

  	
   

  	
  Name: Kent W. Christensen

  
	
   

  	
   

  	
  Title: Executive Vice President and Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A.,

  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Lynn M. Steiner

  
	
   

  	
   

  	
  Name: Lynn M. Steiner

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

 

 91

EXHIBIT
A

[Include only for Global
Notes]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE
DEPOSITARY, WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES)
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREIN IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

[Include only for Notes that are Restricted Securities]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS
SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
HOLDER AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY, EXCEPT (A) TO THE
ISSUER, EXTRA SPACE  STORAGE INC. OR A
SUBSIDIARY OF THE ISSUER; OR (B) TO A PERSON THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A ADOPTED
UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE
WITH RULE 144A (IF AVAILABLE).

[Include only for shares of Common Stock that are
Restricted Securities]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS
SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
HOLDER AGREES (1) THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY, EXCEPT (A) TO THE
ISSUER, EXTRA SPACE STORAGE LP OR A SUBSIDIARY OF THE ISSUER; (B) UNDER
A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECT IVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR

 A-1
 

ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL
BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE
ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF AVAILABLE); OR (D) UNDER ANY
OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY, FURNISH TO
THE TRANSFER AGENT AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS MAY BE REQUIRED TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 A-2
 

EXTRA
SPACE STORAGE LP

3.625% EXCHANGEABLE SENIOR NOTES DUE 2027

CUSIP No.:

ISIN:

No.:

$[          ]

Extra Space
Storage LP, a Delaware limited partnership (herein called the “Issuer”,  which
term includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received hereby promises to pay to Cede & Co.,
or its registered assigns, the principal sum of [          ]
Million DOLLARS ($[          ]),
or such lesser amount as is set forth in the Schedule of Increases or Decreases
in Note on the other side of this Note, on April 1, 2027 at the office or
agency of the Issuer maintained for that
purpose in accordance with the terms of the Indenture, in such coin or
currency of the United States of America as at the time of payment shall be
legal tender for the payment of public and private debts, and to pay interest,
semi-annually on April 1 and October 1 of each year, commencing October 1,
2007, on said principal sum at said office
or agency, in like coin or currency, at the rate per annum of 3.625%, from the
April 1 or October 1, as the case may be, next preceding the date of
this Note to which interest has been paid or duly provided for, unless no
interest has been paid or duly provided for on
the Notes, in which case from March 27, 2007 until payment of said principal
sum has been made or duly provided for. The Issuer shall pay interest on
any Notes in certificated form by check mailed to the address of the Person
entitled thereto as it appears in the Note Register; provided,
however,  that
a Holder of any Notes in certificated form in the aggregate principal amount of
more than $2.0 million may specify by written notice to the Issuer that it pay
interest by wire transfer of immediately available funds to the account
specified by the Noteholder in such notice, or on any Global Note by wire
transfer of immediately available funds to the account of the Depositary or its
nominee.

The Issuer promises to pay
interest on overdue principal, premium, if any, and (to the extent that
payment of such interest is enforceable under applicable law) interest at the
rate of 1% per annum above the rate borne by the Notes.

Reference is made to the further provisions of this
Note set forth on the reverse hereof,
including, without limitation, provisions giving the Holder of this Note the
right to exchange this Note into cash and, if applicable, shares of
Common Stock, cash or a combination thereof, as the case may be, at the
election of the Issuer, on the terms and subject
to the limitations referred to on the reverse hereof and as more fully
specified in the Indenture. Such further provisions shall for all
purposes have the same effect as though fully set forth at this place.

This Note shall not be valid or become obligatory for
any purpose until the certificate of
authentication hereon shall have been signed manually by the Trustee or a
duly authorized authenticating agent under the Indenture.

 A-3
 

IN WITNESS WHEREOF, the Issuer has caused this
Note to be duly executed.  

Dated:

	
  

  	
  EXTRA SPACE STORAGE LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  ESS Holdings Business Trust I, its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 A-4
 

TRUSTEES
CERTIFICATE OF AUTHENTICATION 

This is one of the
Notes described in the within-named Indenture. 

Dated:

	
  

  	
  WELLS FARGO BANK, N.A., 

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 A-5
 

[FORM OF
REVERSE SIDE OF NOTE]

EXTRA
SPACE STORAGE LP

3.625% EXCHANGEABLE SENIOR NOTES DUE 2027

This Note is one of a duly
authorized issue of Notes of the Issuer, designated as its 3.625%
Exchangeable Senior Notes due 2027 (herein called the “Notes”),  issued under and
pursuant to an Indenture dated as of March 27, 2007 (herein called the “Indenture”),  among
the Issuer, the Guarantor and Wells Fargo Bank, N.A., as trustee (herein called
the “Trustee”),  to
which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of
rights, obligations,  duties and
immunities thereunder of the Trustee, the Issuer and the Holders of the Notes.
Defined terms used but not otherwise defined in this Note shall have the
respective meanings ascribed thereto in the Indenture.

If an Event of Default (other than an Event of Default
specified in Section 6.01(g), 6.01(h) and 6.01(i)) with respect to the Issuer)
occurs and is continuing, the principal of , premium, if any, and accrued and
unpaid interest (including Additional Interest, if any) on all Notes may be
declared to be due and payable by either the Trustee or the Holders of at least
25% in aggregate principal amount of the Notes then outstanding, and, upon said
declaration the same shall be immediately due and payable, subject only, in the
event of a Reporting Event of Default, to the Issuer’s right to pay Additional
Interest for the first 180 days of such Reporting Event of Default, as
described in Section 6.01. If an Event of Default specified in Section 6.01(g),
6.01(h) or 6.01(i) of the Indenture occurs with respect to the Issuer, the
principal of and premium, if any, and accrued and unpaid interest (including
Additional Interest, if any) on all the Notes, shall be immediately and
automatically due and payable without necessity of further action.

The Indenture contains provisions permitting the
Issuer and the Trustee, with the consent of the Holders of not less than a
majority in aggregate principal amount of the Notes at the time outstanding, to
execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the Holders of
the Notes, subject to exceptions set forth in Section 9.02 of the Indenture.
Subject to the provisions of the Indenture,
the Holders of not less than a majority in aggregate principal amount of
the Notes at the time outstanding may, on behalf of the Holders of all of the
Notes, waive any past default or Event of Default, subject to exceptions set
forth in the Indenture.

No reference herein to the Indenture and no provision
of this Note or of the Indenture shall impair, as among the Issuer and the
Holder of the Notes, the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of, premium, if any, and interest
(including Additional Interest, if any) on this Note at the place, at the
respective times, at the rate and in the coin or currency herein and in the
Indenture prescribed.

 A-6
 

Interest on the Notes shall be
computed on the basis of a 360-day year of twelve 30-day months.

The Notes are issuable in fully registered form,
without coupons, in denominations of $1,000
principal amount and any integral multiple of $1,000. At the office or
agency of the Issuer referred to on the face hereof, and in the manner and
subject to the limitations provided in the Indenture, without payment of any
service charge but with payment of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in connection with
any registration or exchange of Notes, Notes may be exchanged for a like
aggregate principal amount of Notes of any other authorized denominations.

The Issuer shall have the right
to redeem the Notes under certain circumstances as set forth in Section
3.01, Section 3.02 and Section 3.03 of the Indenture.

The Notes are not subject to
redemption through the operation of any sinking fund.

Upon
the occurrence of a Designated Event, Holders of Notes shall have the right
to require the Issuer to repurchase all or a
portion of their Notes pursuant to Section 3.05 of the Indenture.

On each of April 1, 2012, April 1, 2017, and April 1,
2022, Holders of shall have the right to require the Issuer to repurchase all
or a portion of their Notes pursuant to Section 3.06 of the Indenture.

Subject to and in compliance with the provisions of the
Indenture, the Holder hereof shall have the right to exchange each $1,000
principal amount of this Note into cash and, if applicable, shares of Common
Stock, cash or a combination thereof, as the case
may be, at the election of the Issuer, with an aggregate value equal to the
Exchange Value.

In the event the Holder surrenders this Note for
exchange in connection with certain
Designated Events occurring prior to April 5, 2012, the Issuer will increase
the Applicable Exchange Rate by the Additional Designated Event Shares
as and when provided in the Indenture.

Except as expressly provided in Article 15 of the
Indenture, no recourse for the payment of the principal of or any premium or
interest on this Note, or for any claim based hereon or otherwise in respect
hereof, and no recourse under or upon any obligation, covenant or agreement of
the Issuer in the Indenture or any supplemental indenture or in any Note, or
because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, partner, member, manager, employee,
agent, officer, director or subsidiary, as such, past, present or future, of
the Guarantor, the General Partner, the Issuer or any of the Issuer’s
Subsidiaries or of any successor thereto,
either directly or through the Guarantor, the General Partner, the Issuer
or any of the Issuer’s subsidiaries or of any successor thereto, whether by
virtue of any constitution, statute or rule
of law, or by the enforcement of any assessment or penalty or  otherwise; it being expressly understood that all
such liability is hereby expressly waived

 A-7
 

and released as a condition of, and as consideration
for, the execution of the Indenture and the issue of this Note.

In addition to the rights provided to Holders of Notes
under the Indenture, Holders shall have all
the rights set forth in the Registration Rights Agreement dated as of
March 27, 2007, among the Issuer, the Guarantor and the Initial Purchasers
named therein (the “Registration Rights Agreement”).

 A-8
 

ABBREVIATIONS

The
following abbreviations, when used in the inscription of the face of this Note,
shall be construed as though they were written out in full according to
applicable laws or regulations.

	
  TEN—COM

  	
   

  	
  as tenants in common

  	
   

  	
  UNIF GIFT MIN ACT—

  
	
   

  	
   

  	
   

  	
   

  	
  Custodian 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TEN—ENT

  	
   

  	
  as tenant by the entireties

  	
   

  	
  (Cust) (Minor)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JT  TEN

  	
   

  	
  as joint tenants with right of survivorship and not
  under Uniform Gifts to Minors Act

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as tenants in common

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (State)

  

Additional abbreviations may
also be used though not in the above list.

 

 A-9

 

GUARANTEE

The Guarantor listed below (hereinafter referred to as
the Guarantor, which term includes any successors or assigns under the
Indenture, dated the date hereof, among the Guarantor, the Issuer
(defined below) and Wells Fargo Bank, N.A., as trustee (the Indenture), has irrevocably and
unconditionally guaranteed on a senior basis the Guarantee Obligations (as defined in Section 15.01 of the Indenture),
which include (i) the due and punctual payment of the principal of,
premium, if any, and interest and Additional Interest, if any, on the 3.625%
Exchangeable Senior Notes due 2027 (the Notes)
of Extra Space Storage LP, a Delaware limited partnership (the Is suer), whether at maturity, by
acceleration, call for redemption, upon a repurchase or otherwise, the due and
punctual payment of interest on the overdue principal and premium, if any, and
(to the extent permitted by law) interest on any interest on the Notes, and the
due and punctual performance of all other obligations of the Issuer, to the
Holders of the Notes or the Trustee all in accordance with the terms set forth
in Article 15 of the Indenture, and (ii) in
case of any extension of time of payment or renewal of any Notes or any such
other obligations, that the same shall be promptly paid in full when due
or performed in accordance with the terms of the extension or renewal, whether
at maturity, by acceleration, call for redemption, upon a repurchase or
otherwise.

The obligations of the Guarantor
to the Holders of the Notes and to the Trustee pursuant to this
Guarantee and the Indenture are expressly set forth in Article 15 of the
Indenture and reference is hereby made to such Indenture for the precise terms
of this Guarantee.

No past, present or future director, officer,
employee, incorporator, stockholder, partner, member, manager or agent (direct
or indirect) of the Guarantor (or any such successor entity), as such, shall
have any liability for any obligations of the Guarantor under this Guarantee or
the Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation.

The Guarantor hereby waives diligence, presentment,
demand of payment, filing of claims with a
court in the event of merger or bankruptcy of the Issuer, any right to require
a proceeding first against the Issuer, the benefit of discussion, protest or
notice with respect to the Notes and all demands whatsoever.

This is a continuing Guarantee and shall remain in
full force and effect and shall be binding upon the Guarantor and its
successors and assigns until full and final payment of all of the Issuers
obligations under the Notes and Indenture or until legally discharged in accordance with the Indenture and shall inure to
the benefit of the successors and assigns of the Trustee and the Holders
of the Notes, and, in the event of any transfer or assignment of rights by any
Holder of the Notes or the Trustee, the rights and privileges herein conferred
upon that party shall automatically extend to and be vested in such transferee
or assignee, all subject to the terms and conditions hereof. This is a
Guarantee of payment and performance and not of collectibility.

This Guarantee shall not be valid or obligatory for
any purpose until the certificate of authentication
on the Note upon which this Guarantee is noted shall have been executed

 A-10
 

by the Trustee under the
Indenture by the manual signature of one of its authorized officers.

The obligations of the Guarantor under this Guarantee
shall be limited to the extent necessary to
insure that it does not constitute a fraudulent conveyance under applicable
law.

THE TERMS OF ARTICLE 15 OF THE
INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

Capitalized terms used herein have the same meanings
given in the Indenture unless otherwise indicated.

 A-11
 

IN WITNESS WHEREOF, the Guarantor has caused this
instrument to be duly executed.

Dated:

	
  

  	
  EXTRA SPACE STORAGE INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 A-12
 

EXCHANGE NOTICE

TO:         EXTRA
SPACE STORAGE LP
                 WELLS FARGO BANK, N.A., as
Trustee

The undersigned registered owner of this Note hereby
irrevocably exercises the option to exchange this Note, or the portion thereof
(which is $1,000 or an integral multiple thereof) below designated, into cash
and, if applicable, shares of Common Stock, cash, or a combination thereof, as
the case may be, at the election of the Is suer, in accordance with the terms
of the Indenture referred to in this Note, and directs that the shares of
Common Stock, if any, issuable and deliverable upon such exchange, together
with any check in payment for cash, if any, payable upon exchange or for
fractional shares and any Notes representing any unexchanged principal amount
hereof, be issued and delivered to the registered holder hereof unless a
different name has been indicated below. Capitalized terms used herein but not
defined shall have the meanings ascribed to such terms in the Indenture. If
shares or any portion of this Note not exchanged are to be issued in the name
of a person other than the undersigned, the undersigned will provide the
appropriate information below and pay all transfer taxes payable with respect
thereto. Any amount required to be paid by the undersigned on account of
interest accompanies this Note.

The undersigned registered owner of this Note hereby
certifies that it or the Person on whose
behalf the Notes are being exchanged is a qualified institutional buyer
within the meaning of Rule 144A under the Securities Act of 1933, as amended.

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
  Signature(s)
  must be guaranteed by an “eligible
  guarantor institution” meeting
  the requirements of the Note Registrar, which requirements include membership
  or participation in the Security Transfer Agent Medallion Program (“STAMP”)
  or such other “signature guarantee
  program” as may be
  determined by the Note Registrar in addition to, or in substitution for,
  STAMP, all in accordance with the Securities Exchange Act of 1934, as
  amended.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guarantee

  
				

 A-13
 

 

Fill in the registration of shares of Common Stock, if
any, if to be issued, and Notes if to be
delivered, and the person to whom cash and payment for fractional shares
is to be made, if to be made, other than to and in the name of the registered
holder:

	
  Please print name and
  address

  
	
   

  
	
   

  	
   

  
	
  (Name)

  
	
   

  
	
   

  	
   

  
	
  (Street Address)

  
	
   

  
	
   

  	
   

  
	
  (City, State and
  Zip Code)

  
	
   

  	
   

  
	
  Principal amount
  to be exchanged 

  (if less than all):

  
	
   

  
	
  $

  	
   

  
	
   

  
	
  Social Security
  or Other Taxpayer 

  Identification Number:

  
	
   

  
	
   

  	
   

  

NOTICE: The signature on this Exchange Notice must
correspond with the name as written upon the
face of the Note in every particular without alteration or enlargement or
any change whatever.

 

 A-14
 

REPURCHASE NOTICE

TO:         EXTRA
SPACE STORAGE LP
                 WELLS FARGO BANK, N.A., as
Trustee

The undersigned registered owner of this Note hereby
irrevocably acknowledges receipt of a notice from Extra Space Storage LP (the “Issuer”)  regarding the right
of Holders to elect to require the Issuer to repurchase the Notes and requests
and instructs the Issuer to repay the entire principal amount of this Note, or
the portion thereof (which is $1,000 or an integral multiple thereof) below
designated, in cash, in accordance with the
terms of the Indenture at the price of 100% of such entire principal amount or
portion  thereof, together with
accrued and unpaid interest to, but excluding, the Repurchase Date or
the Designated Event Repurchase Date, as the case may be, to the registered
holder hereof. Capitalized terms used herein
but not defined shall have the meanings ascribed to such terms in the
Indenture. The Notes shall be repurchased by the Issuer as of the Repurchase Date or the Designated Event Repurchase
Date, as the case may be, pursuant to the terms and conditions specified
in the Indenture.

NOTICE: The above
signatures of the holder(s) hereof must correspond with the name as written
upon the face of the Note in every particular without alteration or enlargement
or any change whatever. Note Certificate Number (if applicable):

Principal amount to be
repurchased (if less than all, must be $1,000 or integral multiples thereof):

 

	
  Social Security or Other
  Taxpayer Identification Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
  Signature(s)
  must be guaranteed by an “eligible
  guarantor institution” meeting
  the requirements of the Note Registrar, which requirements include membership
  or participation in the Security Transfer Agent Medallion Program (“STAMP”)
  or such other “signature guarantee
  program” as may be
  determined by the Note Registrar in addition to, or in substitution for,
  STAMP, all in accordance with the Securities Exchange Act of 1934, as
  amended. 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guarantee

  
				

 

 A-15
 

ASSIGNMENT

For value received                                              hereby sell(s) assign(s) and transfer(s)
unto                                              (Please
insert social security or other Taxpayer Identification Number of assignee) the
within Note, and hereby irrevocably constitutes and appoints                                              attorney to transfer said Note on the books of the
Issuer, with full power of substitution in the premises.

In
connection with any transfer of the Note, the undersigned confirms that such
Note is being transferred:

                                    o          To Extra Space Storage LP, Extra Space
Storage Inc. or a subsidiary of Extra Space Storage LP; or

                                    o          To a qualified
institutional buyer in compliance with Rule 144A under the
Securities Act of 1933, as amended.

Unless one of the boxes is checked,
the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the
registered holder thereof.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
  Signature(s)
  must be guaranteed by an eligible guarantor
  institution meeting the requirements of the Note Registrar, which
  requirements include membership or participation in the Security Transfer
  Agent Medallion Program (STAMP) or
  such other signature guarantee program as
  may be determined by the Note Registrar in addition to, or in substitution
  for, STAMP, all in accordance with the Securities Exchange Act of 1934, as
  amended.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guarantee

  
				

NOTICE: The signature on this
Assignment must correspond with the name as written upon the face of the
Note in every particular without alteration or enlargement or any change
whatever.

 

 A-16
 

ASSIGNMENT

For value
received                                        
hereby sell(s) assign(s) and transfer(s) unto                           (Please insert
social security or other Taxpayer Identification Number of assignee)                                      shares of Common Stock, and hereby irrevocably
constitutes and appoints                                           attorney
to transfer said shares of Common Stock on the books of the Issuer, with full
power of substitution in the premises.

In connection with any
transfer of the shares of Common Stock prior to the expiration of the holding period applicable to sales thereof under Rule
144(k) under the Securities Act (or any successor provision) (other than
any transfer pursuant to a registration statement that has been declared
effective under the Securities Act), the undersigned confirms that such shares
of Common Stock are being transferred:

                           o     To Extra Space Storage LP, Extra Space
Storage Inc. or a subsidiary of Extra Space Storage LP; or

                           o     Pursuant to and in compliance with Rule 144
under the Securities Act of 1933, as amended; or

                           o     To a person the undersigned
reasonably believes is a qualified institutional buyer that is
purchasing for its own account or for the account of another qualified
institutional buyer and to whom notice is given that the transfer is being made in reliance on Rule 144A, all in
compliance with Rule 144A (if available); or

                           o     Pursuant to a Registration Statement which
has been declared effective under the Securities Act of 1933, as amended, and
which continues to be effective at the time of transfer.

Unless one of
the boxes is checked, the Transfer Agent will refuse to register any of the shares
of Common Stock evidenced by this certificate in the name of any person other
than the registered holder thereof.

 A-17
 

[Include Schedule
I only for a Global Note]

SCHEDULE OF INCREASES OR DECREASES IN NOTE

The initial principal amount of this Global Note is [                       ] Million DOLLARS ($[                      ]). The following
increases or decreases in part of this Note have been made:

	
  Date

  	
  Amount of 

  Increase in 

  Principal 

  Amount of 

  this Note

  	
  Amount of 

  Decrease in  

  Principal 

  Amount of 

  this Note

  	
  Principal

  Amount of this

  Note following

  such Increase or

  Decrease

  	
  Signature of Authorized

  Officer or Trustee

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  

 

 

 A-18

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