Document:

exv10w8

 

Exhibit 10.8

SOURCEfire

9212 Berger Road, Suite 200

Columbia, Maryland 21046

February 20, 2004

Michele Perry

Dear Michele:

On behalf
of Sourcefire, Inc. (the “Company”), I am pleased to extend this offer of employment to
you for the position of Chief Marketing Officer. In this position you will initially report to the
Chief Operating Officer/President. This position is a full-time position and qualifies for “exempt”
status for purposes of the wage and hour laws. As such, you are exempt from the overtime pay
provisions of such laws and will not be entitled to overtime pay or compensatory time for hours
worked over forty (40) in a workweek.

This
letter summarizes some of the important aspects of your employment with the Company.

Starting
Date. You will commence your employment with the Company on or
before March 24, 2004. Your employment is of no set duration.

Base Salary. Your initial base monthly salary in this position will be $12,500 (annualized
to $150,000 per annum), payable in accordance with the Company’s then-current payroll policies and
subject to customary deductions and withholdings, as required by law. Your salary will be subject
to normal periodic review based on corporate policy, your performance, and other factors considered
by the Company in making salary determinations.

Incentive
Compensation. Your initial targeted, quarterly bonus compensation will be $12,500,
payable in accordance with achievement against a written plan that will be developed by you and
your supervisor within 30 days of your start date. Your first full quarterly bonus will be paid in
the form of a non-recoverable draw delivered during the regular payroll cycles between the dates of
April 1,2004 and June 30,2004, and will be in the amount of $2,083.33 per pay period.

Stock Options. You are eligible to participate in the Company’s stock option plan (the
“Plan”) in accordance with the terms and conditions of the Plan, as may be amended from time to
time. Subject to the approval by the Company’s Board of Directors, you will initially be granted an
option to purchase up to 200,000 shares of Common Stock of the Company. You will be required to
execute a stock grant agreement and stock restriction agreement as a prerequisite to participation
in the Plan. Your shares will vest quarterly over a 4 year period. Additionally, should
both (i) the Company have a change of control as defined in the Plan and (ii) you be
terminated subsequent to the change of control other than for cause or demonition of duties or
location change the lesser of 50% of this grant or the remaining unvested shares under this grant
will accelerate and become vested on your termination date.

Benefits. Beginning the first day of the month following your start date, you will be
eligible for the standard Company health, dental, vision and other benefit plans, as may be in
effect from

 

 

time to time. On an annualized basis, Company employees are eligible for 15 days of paid leave per
year. Leave is accrued ratably each pay period.

At -Will Employment. The Company is an “at will” employer. This means your employment is
not for any definite period of time, and either you or the Company may terminate such employment
for any reason, at any time, with or without cause and with or without notice. You will be subject
to such employment policies and terms and conditions as the Company may adopt or modify from time
to time, and nothing in this offer letter or told to you during your employment should be
interpreted as a guarantee of continued employment.

By
accepting the Company’s offer of employment, you agree to comply with and be bound by the
operating practices, procedures and policies that the Company may put
into effect from time to time
during your employment. You also represent and warrant that you are free to enter into and fully
perform under the agreements referred to herein without breaching any other agreement or contract
to which you are or may be bound, including, without limitation, any existing or previous
employment agreement, non-disclosure agreement, confidentiality
agreement or non-competition
agreement.

This offer is valid until withdrawn or for seven (7) days, whichever is shorter, and is contingent
upon your compliance with the 1986 Immigration Reform and Control Act. This offer is also
contingent upon your execution of the Company’s standard Employee Proprietary Information,
Inventions and Non-Competition Agreement (the “NDA”),
which is an integral part of your employment.

Please indicate your acceptance of this offer of employment by signing and dating below, and
returning to the Company this signed offer letter and the signed NDA.

This letter sets forth the entire understanding between you and the Company regarding the terms of
your employment, supersedes any prior verbal or written representations, and may only be modified
in a writing signed by an authorized officer of the Company.

We look forward to having you join the Sourcefire team and anticipate that this will be a mutually
beneficial relationship. If you have any questions, please feel free to give us a call.

	 	 	 
	Sincerely,
	 	 
	 
	 	 
	/s/ Thomas Mcdonough
 

Thomas McDonough

	 	 
	Chief Operating Officer
	 	 

	 	 	 	 	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/ Michele Perry	 	 
	 	 	 	 	 	 	 
	Date

	 	 	 	 	 	Michele Perry	 	 
	 

	 	 	 	 	 	 	 	 
	SS No.

	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

 

 

Nonstatutory Stock Option Grant Agreement

Under The 

Sourcefire, Inc. 2002 Stock Incentive Plan

This Nonstatutory Stock Option Grant Agreement (this “Agreement”) is made as of April 22, 2004 (the
“Grant Date”) by and between (i) Sourcefire, Inc., a Delaware corporation (the “Company”), and (ii)
Michele Perry (“Optionee”).

     1. Terminology. All capitalized words that are not defined in this Agreement or in the
attached Stock Option Certificate have the meanings ascribed to them in the Plan. For purposes of
this Agreement, the terms below have the following meanings:

          (a)
“Cause” has the meaning ascribed to
such term or words of similar import in the Optionee’s written employment or service contract with the Company and, in the absence of such
agreement or definition, means the Optionee’s (i) conviction of, or plea of nolo contendere to, a
felony or crime involving moral turpitude; (ii) fraud on or misappropriation of any funds or
property of the Company, any affiliate, customer or vendor; (iii) personal dishonesty,
incompetence, willful misconduct, willful violation of any law, rule or regulation (other than
minor traffic violations or similar offenses), or breach of fiduciary duty which involves personal
profit; (iv) willful misconduct in connection with the Optionee’s duties or willful failure to
perform the Optionee’s responsibilities in the best interests of the Company; (v) chronic use of
alcohol, drugs or other similar substances which affects the Optionee’s work performance; (vi)
violation of any Company rule, regulation, procedure or policy; or (vii) breach of any provision of
any employment, non-disclosure, non-competition, non-solicitation or other similar agreement
executed by the Optionee for the benefit of the Company, all as determined by the Administrator,
which determination will be conclusive.

          (b)
“Change in Control” means: (i) the acquisition (other than from the Company) in one or more
transactions by any Person, as defined in this Section 1(b), of the beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50%
or more of (A) the then outstanding shares of the securities of the Company, or (B) the combined
voting power of the then outstanding securities of the Company entitled to vote generally in the
election of directors (the “Company Voting Stock”); (ii) the closing of a sale or other conveyance
of all or substantially all of the assets of the Company; or (iii) the effective time of any
merger, share exchange, consolidation, or other business combination of the Company if immediately
after such transaction persons who hold a majority of the outstanding voting securities entitled to
vote generally in the election of directors of the surviving entity (or the entity owning 100% of
such surviving entity) are not persons who, immediately prior to such transaction, held the Company
Voting Stock; provided, however, that a Change in Control shall not include (Y) a public
offering of capital stock of the Company or (Z) any transaction pursuant to which shares of capital
stock of the Company are transferred or issued to any trust, charitable organization, foundation,
family partnership or other entity controlled directly or indirectly by, or established for the
benefit of, Martin Roesch or his immediate family members (including spouses, children,
grandchildren, parents, and siblings, in each case to include adoptive relations), or transferred
to any such immediate family members. For purposes of this
Section 1(b), a “Person”  means any
individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended, other than: employee benefit plans sponsored or maintained by the
Company and corporations controlled by the Company.

          (c)
“Company” includes Sourcefire, Inc. and its Affiliates, except where the context otherwise
requires.

          (d)
“Option Shares” mean the shares of Common Stock underlying the Options.

 

 

          (e)
“Total and Permanent Disability”  means the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve months. The Administrator may require such proof of Total and Permanent
Disability as the Administrator in its sole discretion deems appropriate and the Administrator’s
good faith determination as to whether the Optionee is totally and permanently disabled will be
final and binding on all parties concerned.

     2. Vesting.

          (a) The Options vest in accordance with the vesting schedule identified in the Stock Option
Certificate attached to this Agreement and constitutes a part of the Agreement (the “Vesting
Schedule”), so long as the Optionee is in the continuous employ of, or in a service relationship
with, the Company from the Grant Date through the applicable date upon which vesting is scheduled
to occur. No vesting will accrue to any Options after the Optionee ceases to be in either an
employment or other service relationship with the Company, except as provided otherwise in this
Agreement.

          (b) Unless the Options have earlier terminated, if before the Optionee has vested in any
Options, his or her employment or other service relationship with the Company terminates due to
death or Total and Permanent Disability, then as of such termination a number of Options will be
vested equal to (i) the total number of Options granted under this Agreement as specified on the
Stock Option Certificate, multiplied by (ii) 25%, multiplied by (iii) a fraction, the numerator of
which is the total number of days measured from the Optionee’s Vesting Start Date (as defined in
the Stock Option Certificate) to the date that the employment or other service relationship ceased
and the denominator of which is 365.

     3. Exercise of Options.

          (a) Right to Exercise. The Optionee may exercise the Options to the extent vested at
any time on or before the Expiration Date or the earlier termination of the Options, unless
otherwise provided in this Agreement. Section 4 below describes certain limitations on exercise of
the Options that apply in the event of the Optionee’s death, Total and Permanent Disability, or
termination of employment or other service relationship with the Company. The Options may be
exercised only in multiples of whole shares and may not be exercised at any one time as to fewer
than one hundred shares (or such lesser number of shares as to which the Options are then
exercisable). No fractional shares will be issued under the Options.

          (b)
Exercise Procedure. In order to exercise the Options, the following items must
be delivered to the Secretary of the Company before the expiration or termination of the Options:
(i) an exercise notice, in such form as the Administrator may require from time to time, specifying
the number of Option Shares to be purchased, (ii) full payment of the Exercise Price for such
Option Shares or properly executed, irrevocable instructions, in such form as the Administrator may
require from time to time, to effectuate a broker-assisted cashless exercise, each in accordance
with Section 3(c) of this Agreement, and (iii) an executed copy of any other agreements requested
by the Administrator pursuant to Section 3(d) of this Agreement. An exercise will not be
effective until all of the foregoing items are received by the Secretary of the Company.

          (c) Method of Payment. Payment of the Exercise Price may be made by delivery of cash,
certified or cashier’s check, money order or other cash equivalent acceptable to the Administrator
in its discretion, a broker-assisted
cashless exercise in accordance with Regulation T of the Board of Governors of the Federal
Reserve System through a brokerage firm approved by the Administrator, or a combination of the
foregoing. In addition, payment of the Exercise Price may be made by any other method approved by
the Administrator.

          (d) Agreement by Optionee to Execute Other Agreements. The Optionee hereby agrees to
execute, as a condition precedent to the exercise of the Options and at any time thereafter as

 

 

may reasonably be requested by the Administrator, a Stock Restriction Agreement, substantially in
the form, and containing the terms and provisions, of the Stock Restriction Agreement attached
hereto as Exhibit A, with respect to any Option Shares acquired by the Optionee pursuant to
this Agreement; provided, however, that execution of the Stock Restriction Agreement will
not be required upon any exercise of the Options that occurs after the closing of the first public
offering of capital stock of the Company that is effected pursuant to a registration statement
filed with, and declared effective by, the Securities and Exchange Commission under the Securities
Act of 1933 (the “Securities Act”) or, if later, the expiration of any market stand-off agreement
that applies to other shareholders of the Company respecting such public offering of capital stock.

          (e) Issuance of Shares upon Exercise. Upon exercise of the Options in accordance with
the terms of this Agreement, the Company will issue to the Optionee, the brokerage firm specified
in the Optionee’s delivery instructions pursuant to a broker-assisted cashless exercise, or such
other person exercising the Options, as the case may be, the number of shares of Common Stock so
paid for, in the form of fully paid and nonassessable stock. The Company will deliver stock
certificates for the Option Shares as soon as practicable after exercise, which certificates will,
unless such Option Shares are registered or an exemption from registration is available under
applicable federal and state law, bear a legend restricting transferability of such shares and
referencing any applicable Stock Restriction Agreement.

     4. Termination of Employment or Service.

          (a) Exercise Period Following Cessation of Employment or Other Service
Relationship, In General. If the Optionee ceases to be employed by, or in a service
relationship with, the Company for any reason other than death, Total and Permanent Disability,
voluntary resignation or discharge for Cause, (i) the unvested Options, after giving effect to the
provisions of Section 2 of this Agreement, terminate immediately upon such cessation, and (ii) the
vested Options remain exercisable during the 30-day period following such cessation, but in no
event after the Expiration Date. Unless sooner terminated, the vested Options automatically
terminate upon the expiration of such 30-day period.

          (b) Disability of Optionee. Notwithstanding the provisions of Section 4(a) above, if
the Optionee ceases to be employed by, or in a service relationship with, the Company as a result
of the Optionee’s Total and Permanent Disability, (i) the unvested Options, after giving effect to
the provisions of Section 2 of this Agreement, terminate immediately upon such cessation, and (ii)
the vested Options remain exercisable during the six-month period following such cessation, but in
no event after the Expiration Date. Unless sooner terminated, the vested Options automatically
terminate upon the expiration of such six-month period.

          (c) Death of Optionee. If the Optionee dies prior to the expiration or other
termination of the Options, (i) the unvested Options, after giving effect to the provisions of
Section 2 of this Agreement, terminate immediately upon the Optionee’s death, and (ii) the vested
Options remain exercisable during the six-month period following the Optionee’s death, but in no
event after the Expiration Date, by the Optionee’s executor, personal representative, or the
person(s) to whom the Options are transferred by will or the laws of descent and distribution.
Unless sooner terminated, the vested Options automatically terminate upon the expiration of such
six-month period.

          (d) Voluntary Resignation/Misconduct. Notwithstanding anything to the contrary in
this Agreement, the Options terminate in their entirety, regardless of whether the Options are
vested, immediately upon the Optionee’s voluntary resignation of employment or other service
relationship, upon the Optionee’s discharge of employment or other service relationship for Cause
or upon the Optionee’s commission of any of the following acts during any period following the
cessation of employment or other service relationship during which the Options otherwise would
be exercisable: (i) fraud on or misappropriation of any funds or
property of the Company, or (ii)
breach by the Optionee of any provision of any employment, non-disclosure, non-competition,
non-solicitation, assignment of inventions, or other similar agreement executed by the Optionee for
the benefit of the Company, as determined by the Administrator, which determination will be
conclusive.

 

 

     5. Market Stand-Off Agreement. The Optionee agrees that following the
effective date of a registration statement of the Company filed under the Securities Act, the
Optionee, for the duration specified by and to the extent requested by the Company and an
underwriter of Common Stock or other securities of the Company, shall not offer, sell, contract to
sell, pledge or otherwise dispose of, directly or indirectly, any equity securities of the Company,
or any securities convertible into or exchangeable or exercisable for such securities, enter into a
transaction which would have the same effect, or enter into any swap, hedge or other arrangement
that transfers, in whole or in part, any of the economic consequences of ownership of such
securities, whether any such aforementioned transaction is to be settled by delivery of such
securities or other securities, in cash or otherwise, or publicly disclose the intention to make
any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or
other arrangement, in each case during the seven days prior to and the 180 days after the
effectiveness of any underwritten offering of the Company’s equity securities (or such longer or
shorter period as may be requested in writing by the managing underwriter and agreed to in writing
by the Company) (the “Market Stand-Off Period”), except as part of such underwritten registration if
otherwise permitted. In addition, the Optionee agrees to execute any
further letters, agreements
and/or other documents requested by the Company or its underwriters which are consistent with the
terms of this Section 5. The Company may impose stop-transfer instructions with respect to
securities subject to the foregoing restrictions until the end of such Market Stand-Off Period.

     6. Nontransferability of Options. These Options are nontransferable otherwise than by
will or the laws of descent and distribution and during the lifetime of the Optionee, the Options
may be exercised only by the Optionee or, during the period the Optionee is under a legal
disability, by the Optionee’s guardian or legal representative. Except as provided above, the
Options may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether
by operation of law or otherwise) and shall not be subject to execution, attachment or similar
process.

     7. Termination of Options/Recapture Payment. The Options are granted as
consideration for, and contingent upon, the Optionee becoming a party to the Company’s Assignment
of Inventions, Non-Disclosure, Non-Solicitation and Non-Competition Agreement or any successor
agreement thereto (the “Assignment Agreement”). The Optionee further recognizes and acknowledges
that it would be difficult to ascertain the damages arising from a violation of the covenants set
forth in the Assignment Agreement. Accordingly, notwithstanding anything herein to the contrary, if
the Administrator or its delegate, in its sole discretion, determines that the Optionee has engaged
in any activity that contravenes the covenants set forth in the Assignment Agreement, the Optionee
agrees that the following shall occur:

	 	(i)	 	The Options will terminate effective on the date on which such determination is made,
regardless of whether the Options are vested in whole or in part, unless terminated sooner by
operation of another provision of this Agreement; and
	 
	 	(ii)	 	With respect to any Common Stock acquired by the Optionee
through the exercise of the Options within three months before the Optionee’s termination of employment or at any time
after the Optionee’s termination of employment (the “Recapture Shares”), the Optionee agrees
to pay to the Company, within 30 days of when the Company delivers written notice to the
Optionee, a “Recapture Payment.” The Recapture Payment may be paid in cash, Recapture Shares, or a combination of cash or
Recapture Shares. In the event that the Optionee holds Recapture Shares on the date that he or she
is determined to have violated the covenants in the Assignment Agreement, the Administrator may
demand that the Recapture Payment be made by tendering the Recapture Shares. If paid in cash, the
Recapture Payment shall be an amount equal to the excess of the aggregate Fair Market Value of the
shares on the exercise date over the Exercise Price paid by the Optionee to acquire the Recapture
Shares. If paid in Recapture Shares, the Recapture Payment shall be paid by the Optionee delivering
to the Company share certificates evidencing the Recapture Shares, together with a stock

 

 

	 	 	 	power, endorsed in blank. As soon as practicable after receipt of the stock certificates and stock
power properly endorsed, the Company will pay to the Optionee the lower of (A) the aggregate
Exercise Price paid by the Optionee to acquire the Recapture Shares for which the stock
certificates have been delivered to the Company or (B) the Fair Market Value of such Recapture
Shares at that time.

Nothing in this Section will be construed as prohibiting the Company from pursuing any other
remedies available to it for such breach or threatened breach, including the recovery of any
damages set forth in this Agreement and that it may additionally prove, and all remedies will be
cumulative and not affirmative.

     8. Coordination With Other Agreements. To the extent that the Optionee is a party to
any agreement with the Company that contains the same or similar covenants as those set forth in
the Assignment Agreement (hereinafter referred to as the “Other Agreement”), the Optionee and the
Company expressly agree that any remedy available to the Company under this Agreement or the
Assignment Agreement is in addition to, and does not limit the enforceability of, any remedy
available to the Company under such Other Agreement.

     9. Nonstatutory
Nature of the Options. The Options are not intended to qualify as
incentive stock options within the meaning of Code section 422, and this Agreement shall be so
construed. The Optionee acknowledges that, upon exercise of the Options, the Optionee will
recognize taxable income in an amount equal to the excess of the then Fair Market Value of the
Option Shares over the Exercise Price and must comply with the provisions of Section 10 of this
Agreement with respect to any tax withholding obligations that arise as a result of such exercise.

     10. Withholding of Taxes. At the time the Options are exercised, in whole or in part,
or at any time thereafter as requested by the Company, the Optionee hereby authorizes withholding
from payroll or any other payment of any kind due the Optionee and otherwise agrees to make
adequate provision for foreign, federal, state and local taxes required by law to be withheld, if
any, which arise in connection with the Options. The Company may require the Optionee to make a
cash payment to cover any withholding tax obligation as a condition of exercise of the Options or
issuance of share certificates representing Option Shares.

     The Administrator may, in its sole discretion, permit the Optionee to satisfy, in whole or in
part, any withholding tax obligation which may arise in connection with the Options either by
electing to have the Company withhold from the shares to be issued upon exercise that number of
shares, or by electing to deliver to the Company already-owned shares, in either case having a Fair
Market Value equal to the amount necessary to satisfy the statutory minimum withholding amount due.

11. Adjustments for Corporate Transactions and Other Events.

          (a)
Stock Dividend, Stock Split and Reverse Stock Split. Upon a stock dividend of, or
stock split or reverse stock split affecting, the Common Stock,
the number of shares covered by and the exercise price and other terms of the Options, shall,
without further action of the Board, be adjusted to reflect such event unless the Board determines,
at the time it approves such stock dividend, stock split or reverse stock split, that no such
adjustment shall be made. The Administrator may make adjustments, in its discretion, to address the
treatment of fractional shares and fractional cents that arise with respect to the Options as a
result of the stock dividend, stock split or reverse stock split.

          (b) Non-Change in Control Transactions. Except with respect to the transactions set
forth in Section 11 (a), in the event of any change affecting the Common Stock, the Company or its
capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger,
consolidation or share exchange, other than any such change that is part of a transaction resulting
in a Change in Control, the Administrator, in its discretion and without the consent of the
Optionee, shall make any adjustments in the Options, including but not limited to modifying the
number, kind and price of securities subject to the Options.

 

 

          (c) Change in Control Transactions. Unless otherwise set forth in the Stock
Option Certificate, in the event of any transaction resulting in a Change in Control, the Options
will terminate upon the effective time of any such Change in Control unless provision is made in
connection with the transaction in the sole discretion of the parties thereto for the continuation
or assumption of the Options, or the substitution of the Options with new options of the surviving
or successor entity or a parent thereof. In the event of such termination, the Optionee will be
permitted, for a period of at least twenty days prior to the effective time of the Change in
Control, to exercise all portions of such Options that are then exercisable or which become
exercisable upon or prior to the effective time of the Change in Control.

          (d) Adjustments for Unusual Events. The Administrator is authorized to make, in
its discretion and without the consent of the Optionee, adjustments in the terms and conditions of,
and the criteria included in, the Options in recognition of unusual or nonrecurring events affecting
the Company, or the financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Administrator determines that
such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Options or the Plan.

          (e)
Binding Nature of Adjustments. Adjustments under this Section 11 will be made by
the Administrator, whose determination as to what adjustments, if any, will be made and the
extent there of will be final, binding and conclusive. No fractional shares will be issued pursuant
to the Options on  account of any such adjustments. The terms and conditions of this Agreement shall
apply with equal force to any additional and/or substitute securities received by the Optionee
pursuant to this Section 11 in exchange for, or by virtue of the Optionee’s ownership of, the
Options or the Option Shares, except as otherwise determined by the Administrator.

     12. Confidential Information. In consideration of the Options granted to the
Optionee pursuant to this Agreement, the Optionee agrees and covenants that, except as specifically
authorized by the Company, the Optionee will keep confidential any trade secrets or confidential or
proprietary information of the Company which are now or which hereafter may become known to the
Optionee as a result of the Optionee’s employment by or other service relationship with the Company,
and shall not at any time, directly or indirectly, disclose any such information to any person,
firm, company or other entity, or use the same in any way other than in connection with the business
of the Company, at all times during and after the Optionee’s employment or other service
relationship. The provisions of this Section 12 shall not narrow or otherwise limit the
obligations and responsibilities of the Optionee set forth in any agreement of similar import
entered into between the Optionee and the Company.

     13. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or
this Agreement shall alter the at-will or other employment status or other service relationship of
the Optionee, nor be construed as a contract of employment or service relationship between the
Company and the Optionee, or as a contractual right of Optionee to continue in the employ of, or in
a service relationship with, the Company for any period of time, or as a limitation of the right of
the Company to discharge the Optionee at any time with or without cause or notice and whether or not
such discharge results in the failure of any Options to vest or any other adverse effect on the
Optionee’s interests under the Plan.

     14. No
Rights as a Stockholder. The Optionee shall not have any of the rights of
a stockholder with respect to the Option Shares until such shares have been issued to him or her
upon the due exercise of the Options. No adjustment shall be made for dividends or distributions or
other rights for which the record date is prior to the date such shares are issued.

     15. The Company’s Rights. The existence of the Options shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure
or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of the

 

 

Company’s assets or business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

     16. Optionee. Whenever the word “Optionee” is used in any provision of this
Agreement under circumstances where the provision should logically be construed, as determined by
the Administrator, to apply to the estate, personal representative, or beneficiary to whom the
Options may be transferred by will or by the laws of descent and distribution, or another permitted
transferee, the word “Optionee” shall be deemed to include such person.

     17. Notices. All notices and other communications made or given pursuant to
this Agreement shall be in writing and shall be sufficiently made or given if hand delivered or
mailed by certified mail, addressed to the Optionee at the address contained in the records of the
Company, or addressed to the Administrator, care of the Company for the attention of its Corporate
Secretary at its principal office or, if the receiving party consents in advance, transmitted and
received via telecopy or via such other electronic transmission mechanism as may be available to
the parties.

     18. Entire Agreement: Additional Grants. This Agreement contains the entire
agreement between the parties with respect to the Options granted hereunder. Any and all prior
agreements between the parties hereto with respect to the subject matter of this Agreement are
hereby revoked. This Agreement is, and is intended by the parties to be, an integration of any and
all prior agreements or understandings, oral or written, with respect to the Option and the Option
Shares. The terms and conditions of this Agreement shall apply to any and all future grants of
options to Optionee pursuant to the Plan and the term “Grant Date” shall refer to each such
subsequent grant date. Any such future grants and acceptance thereof shall be evidenced by the
completion, execution and attachment to this Agreement of an additional Stock Option Certificate,
in the form provided by the Company, which shall be incorporated herein by reference.

     19. Invalidity
or Unenforceability. It is the intention of the Company and the
Optionee that this Agreement shall be enforceable to the fullest extent allowed by law. In the
event that a court having jurisdiction holds any provision of this Agreement to be invalid or
unenforceable, in whole or in part, the Company and the Optionee agree that, if allowed by law, that provision shall be reduced to
the degree necessary to render it valid and enforceable without affecting the rest of this
Agreement.

     20. Waiver. No delay or omission by the Company in exercising any right under
this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by
the Company on any one occasion shall be effective only in that instance and shall not be construed
as a bar or waiver of any right on any other occasion.

     21. Amendment. This Agreement may be amended from time to time by the Administrator
in its discretion; provided, however, that this Agreement may not be modified in a manner
that would have a materially adverse effect on the Options or Option Shares as determined in the
discretion of the Administrator, except as provided in the Plan or in a written document signed by
each of the parties hereto.

     22. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Inconsistencies between this Agreement
and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any
ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is provided to you with this Agreement.

     23. Governing Law. The validity, construction and effect of this Agreement, and of
any determinations or decisions made by the Administrator relating to this Agreement, and the
rights of any and all persons having or claiming to have any interest under this Agreement, shall
be determined exclusively in accordance with the laws of the State of Maryland, without regard to
its provisions concerning the applicability of laws of other jurisdictions. Any suit with respect
hereto will be brought in

 

 

the federal or state courts in the districts which include the city and state in which the principal offices of the Company are
located, and the Optionee hereby agrees and submits to the personal
jurisdiction and venue thereof.

     24. Headings. The headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

     IN WITNESS WHEREOF, the Corporation and Optionee have executed this Agreement, as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	COMPANY;	 	 
	 
	 	 	 	 	 	 
	 	 	SOURCEFIRE, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Todd P. Headley 
 
	 	 
	 	 	Name: Todd P. Headley	 	 
	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	OPTIONEE:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Michele Perry	 	 
	 	 	 	 	 
	 	 	Signature
	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michele Perry 	 	 
	 

	 	Address:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Sourcefire, Inc.

Stock Option Certificate

THIS CERTIFIES THAT
Michele Perry (the “Optionee”) has been awarded under the Sourcefire, Inc. 2002 Stock Incentive Plan
(the “Plan”), nonstatutory stock options (each, an
“Option” or collectively, the
“Options”) to
purchase 200,000 shares of Common Stock, par value $0.001 per share
(“Common Stock”) of Sourcefire,
Inc., a Delaware corporation (the “Company”), at a price of $
0.70 per share (the “Exercise Price”).
This Stock Option Certificate constitutes part of and is subject to the terms and provisions of the
Nonstatutory Stock Option Grant Agreement (the
“Agreement”) by and between the Company
and Optionee dated April 22, 2004, which this Stock Option Certificate is attached to and made part
of. Capitalized terms not defined in this Certificate shall have the meanings ascribed to them in
the Agreement.

Vesting Start Date: March 24,2004

Grant Date: April 22,2004

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
coincident with or prior to the tenth anniversary of the Grant Date (the “Expiration Date”),
unless fully exercised or terminated earlier.

Vesting Schedule: The Options vest and become exercisable in accordance with the vesting
schedule below, subject to the terms and conditions described in the Agreement:

	 	(a)	 	6.25% of the Options vest and become exercisable on the three
month anniversary of the Optionee’s Vesting Start Date (the “Initial Vesting
Date”), and
	 
	 	(b)	 	6.25% of the Options vest and become exercisable on the date three
months after the Initial Vesting Date and on such date every three months
thereafter,through the fourth anniversary of the Vesting Start Date.
	 
	 	(c)	 	There is an acceleration of vesting in the Option in the event that both
(i) there is a Change in Control, and (ii) Ms. Perry’s employment is terminated
(actually or constructively) without Cause following such Change in
Control. The acceleration of vesting shall be in an amount which is the lesser
of 50% of the Option (100,000 shares) or vesting of the remaining unvested portion
of the Option.

IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on this 22nd day of April, 2004.

	 	 	 	 	 	 	 
	 

	 	 	 	SOURCEFIRE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Todd Headley
 

Todd Headley, CFO
	 	 

The undersigned hereby acknowledges that he/she has carefully read the Agreement and the Plan and
agrees that this Stock Option Certificate, together with the Agreement, shall govern the terms and
conditions of the Options, the Option Shares and the other subject matter of the Agreement,
subject to the provisions of the Plan. In the event of any conflict between the terms of this
Stock Option Certificate and the Agreement, the Agreement shall control.

	 	 	 	 	 
	 

	 	OPTIONEE	 	 
	 
	 	 	 	 
	 

	 	/s/ Michele Perry
 

Michele Perry
	 	 
	 
	 	 	 	 
	 

	 	Date:1/4/2005	 	 

 

 

EXHIBIT A-2

Sourcefire, Inc.

Stock Option Certificate

THIS CERTIFIES THAT Michele Perry (the “Optionee”) has been awarded under the Sourcefire, Inc. 2002
Stock Incentive Plan (the “Plan”), nonstatutory stock options (each, an “Option” or collectively,
the “Options”) to purchase 35,000 shares of Common Stock, par value $0.001 per share (“Common
Stock”) of Sourcefire, Inc., a Delaware corporation (the
“Company”), at a price of $1.25 per share
(the “Exercise Price”). This Stock Option Certificate constitutes part of and is subject to the
terms and provisions of the Nonstatutory Stock Option Grant Agreement (the “Agreement”) by and
between the Company and Optionee dated April 22, 2004, which this Stock Option Certificate is
attached to and made part of. Capitalized terms not defined in this Certificate shall have the
meanings ascribed to them in the Agreement.

Vesting Start Date: June 24, 2005

Grant Date: June 24,2005

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
coincident with or prior to the tenth anniversary of the Grant Date (the “Expiration Date”),
unless fully exercised or terminated earlier.

Vesting Schedule: The Options vest and become exercisable in accordance with the
vesting schedule below, subject to the terms and conditions described in the Agreement:

	 	(a)	 	25% of the Options vest and become exercisable on the first
anniversary of the Optionee’s Vesting Start Date (the “Initial Vesting Date”),
and
	 
	 	(b)	 	2.083% of the Options vest and become exercisable on the date one
month after the Initial Vesting Date and on such date every month
thereafter, through the fourth anniversary of the Vesting Start Date.
	 
	 	(c)	 	There is 100% acceleration of vesting of the Options in the event
both (i) a Change in Control (as defined in the Plan) and (ii) Optionee’s
employment is terminated without cause within one year of the Change of
Control.

The extent to which the Options are vested and exercisable as of a particular vesting date is
rounded down to the nearest whole share. However, vesting is rounded up to the nearest whole share
on the fourth anniversary of the Grant Date.

IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on June 24, 2005.

	 	 	 	 	 	 	 
	 

	 	 	 	SOURCEFIRE, INC.,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Todd P. Headley
 

Todd P. Headley, CFO	 	 

The undersigned hereby acknowledges that he/she has carefully read the Agreement and the Plan and
agrees that this Stock Option Certificate, together with the Agreement, shall govern the terms and
conditions of the Options, the Option Shares and the other subject matter of the Agreement,
subject to the provisions of the Plan. In the event of any conflict between the terms of this
Stock Option Certificate and the Agreement, the Agreement shall control.

	 	 	 	 	 
	 

	 	OPTIONEE	 	 
	 
	 	 	 	 
	 

	 	/s/ Michele Perry
 

Michele Perry
	 	 
	 
	 	 	 	 
	 

	 	Date: 6/24/05exv4w1

 

Exhibit 4.1

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP,

FIRST POTOMAC REALTY TRUST, as Guarantor

4.0% EXCHANGEABLE SENIOR NOTES DUE 2011

INDENTURE

DATED AS OF DECEMBER 11, 2006

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.02. Other Definitions
	 	 	9	 
	 
	 	 	 	 
	Section 1.03. Trust Indenture Act Provisions
	 	 	10	 
	 
	 	 	 	 
	Section 1.04. Rules of Construction
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 2 THE SECURITIES
	 	 	11	 
	 
	 	 	 	 
	Section 2.01. Form and Dating
	 	 	11	 
	 
	 	 	 	 
	Section 2.02. Execution and Authentication
	 	 	13	 
	 
	 	 	 	 
	Section 2.03. Registrar, Paying Agent and Exchange Agent
	 	 	14	 
	 
	 	 	 	 
	Section 2.04. Paying Agent to Hold Money in Trust
	 	 	14	 
	 
	 	 	 	 
	Section 2.05. Lists of Holders of Securities
	 	 	15	 
	 
	 	 	 	 
	Section 2.06. Transfer and Exchange
	 	 	15	 
	 
	 	 	 	 
	Section 2.07. Replacement Securities
	 	 	16	 
	 
	 	 	 	 
	Section 2.08. Outstanding Securities
	 	 	16	 
	 
	 	 	 	 
	Section 2.09. Treasury Securities
	 	 	17	 
	 
	 	 	 	 
	Section 2.10. Temporary Securities
	 	 	17	 
	 
	 	 	 	 
	Section 2.11. Cancellation
	 	 	17	 
	 
	 	 	 	 
	Section 2.12. Legend; Additional Transfer and Exchange Requirements
	 	 	18	 
	 
	 	 	 	 
	Section 2.13. CUSIP Numbers
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 3 REPURCHASE
	 	 	21	 
	 
	 	 	 	 
	Section 3.01. Repurchase at Option of Holders upon a Change in Control
	 	 	21	 
	 
	 	 	 	 
	Section 3.02. Repayment to the Company
	 	 	24	 
	 
	 	 	 	 
	Section 3.03. Securities Purchased in Part
	 	 	24	 
	 
	 	 	 	 
	Section 3.04. Compliance with Securities Laws upon Purchase of Securities
	 	 	24	 
	 
	 	 	 	 
	Section 3.05. Purchase of Securities in Open Market
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 4 EXCHANGE
	 	 	25	 
	 
	 	 	 	 
	Section 4.01. Exchange Privilege and Exchange Rate
	 	 	25	 
	 
	 	 	 	 
	Section 4.02. Exchange Procedure
	 	 	28	 
	 
	 	 	 	 
	Section 4.03. Fractional Shares
	 	 	30	 
	 
	 	 	 	 
	Section 4.04. Taxes on Exchange
	 	 	30	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 4.05. Guarantor to Provide Common Shares
	 	 	30	 
	 
	 	 	 	 
	Section 4.06. Adjustment of Exchange Rate
	 	 	30	 
	 
	 	 	 	 
	Section 4.07. No Adjustment
	 	 	36	 
	 
	 	 	 	 
	Section 4.08. Notice of Adjustment
	 	 	37	 
	 
	 	 	 	 
	Section 4.09. Notice of Certain Transactions
	 	 	37	 
	 
	 	 	 	 
	Section 4.10. Effect of Consolidation, Merger or Binding Share Exchange
	 	 	37	 
	 
	 	 	 	 
	Section 4.11. Withholding
	 	 	38	 
	 
	 	 	 	 
	Section 4.12. Trustee’s Disclaimer
	 	 	38	 
	 
	 	 	 	 
	Section 4.13. Exchange Settlement
	 	 	38	 
	 
	 	 	 	 
	Section 4.14. Reservation of Common Shares, Common Shares to Be Fully Paid; Compliance
with Governmental Requirements; Listing of Common Shares
	 	 	39	 
	 
	 	 	 	 
	Section 4.15. Calculation in Respect of Securities
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 5 COVENANTS
	 	 	40	 
	 
	 	 	 	 
	Section 5.01. Payment of Securities
	 	 	40	 
	 
	 	 	 	 
	Section 5.02. SEC and Other Reports
	 	 	41	 
	 
	 	 	 	 
	Section 5.03. Compliance Certificates
	 	 	41	 
	 
	 	 	 	 
	Section 5.04. Further Instruments and Acts
	 	 	41	 
	 
	 	 	 	 
	Section 5.05. Maintenance of Existence as a Limited Partnership
	 	 	42	 
	 
	 	 	 	 
	Section 5.06. Rule 144A Information Requirement
	 	 	42	 
	 
	 	 	 	 
	Section 5.07. Stay, Extension and Usury Laws
	 	 	42	 
	 
	 	 	 	 
	Section 5.08. Payment of Additional Interest
	 	 	42	 
	 
	 	 	 	 
	Section 5.09. Maintenance of Office or Agency
	 	 	42	 
	 
	 	 	 	 
	ARTICLE 6 CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE
	 	 	43	 
	 
	 	 	 	 
	Section 6.01. Company and Guarantor May Consolidate, Etc., Only on Certain Terms
	 	 	43	 
	 
	 	 	 	 
	Section 6.02. Successor Substituted
	 	 	44	 
	 
	 	 	 	 
	ARTICLE 7 DEFAULT AND REMEDIES
	 	 	44	 
	 
	 	 	 	 
	Section 7.01. Events of Default
	 	 	44	 
	 
	 	 	 	 
	Section 7.02. Acceleration
	 	 	46	 
	 
	 	 	 	 
	Section 7.03. Other Remedies
	 	 	47	 
	 
	 	 	 	 
	Section 7.04. Waiver of Defaults and Events of Default
	 	 	47	 
	 
	 	 	 	 
	Section 7.05. Control by Majority
	 	 	47	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 7.06. Limitations on Suits
	 	 	48	 
	 
	 	 	 	 
	Section 7.07. Rights of Holders to Receive Payment and to Exchange
	 	 	48	 
	 
	 	 	 	 
	Section 7.08. Collection Suit by Trustee
	 	 	48	 
	 
	 	 	 	 
	Section 7.09. Trustee May File Proofs of Claim
	 	 	48	 
	 
	 	 	 	 
	Section 7.10. Priorities
	 	 	49	 
	 
	 	 	 	 
	Section 7.11. Undertaking for Costs
	 	 	49	 
	 
	 	 	 	 
	ARTICLE 8 TRUSTEE
	 	 	50	 
	 
	 	 	 	 
	Section 8.01. Obligations of Trustee
	 	 	50	 
	 
	 	 	 	 
	Section 8.02. Rights of Trustee
	 	 	51	 
	 
	 	 	 	 
	Section 8.03. Individual Rights of Trustee
	 	 	52	 
	 
	 	 	 	 
	Section 8.04. Trustee’s Disclaimer
	 	 	52	 
	 
	 	 	 	 
	Section 8.05. Notice of Default or Events of Default
	 	 	52	 
	 
	 	 	 	 
	Section 8.06. Reports by Trustee to Holders
	 	 	53	 
	 
	 	 	 	 
	Section 8.07. Compensation and Indemnity
	 	 	53	 
	 
	 	 	 	 
	Section 8.08. Replacement of Trustee
	 	 	54	 
	 
	 	 	 	 
	Section 8.09. Successor Trustee by Merger, Etc.
	 	 	55	 
	 
	 	 	 	 
	Section 8.10. Eligibility; Disqualification
	 	 	55	 
	 
	 	 	 	 
	Section 8.11. Preferential Collection of Claims Against Company
	 	 	55	 
	 
	 	 	 	 
	ARTICLE 9 SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	55	 
	 
	 	 	 	 
	Section 9.01. Satisfaction and Discharge of Indenture
	 	 	55	 
	 
	 	 	 	 
	Section 9.02. Application of Trust Money
	 	 	56	 
	 
	 	 	 	 
	Section 9.03. Repayment to Company
	 	 	56	 
	 
	 	 	 	 
	Section 9.04. Reinstatement
	 	 	56	 
	 
	 	 	 	 
	ARTICLE 10 AMENDMENTS; SUPPLEMENTS AND WAIVERS
	 	 	57	 
	 
	 	 	 	 
	Section 10.01. Without Consent of Holders
	 	 	57	 
	 
	 	 	 	 
	Section 10.02. With Consent of Holders
	 	 	58	 
	 
	 	 	 	 
	Section 10.03. Compliance with Trust Indenture Act
	 	 	60	 
	 
	 	 	 	 
	Section 10.04. Revocation and Effect of Consents
	 	 	60	 
	 
	 	 	 	 
	Section 10.05. Notation on or Exchange of Securities
	 	 	60	 
	 
	 	 	 	 
	Section 10.06. Trustee to Sign Amendments, Etc.
	 	 	60	 
	 
	 	 	 	 
	Section 10.07. Effect of Supplemental Indentures
	 	 	60	 
	 
	 	 	 	 
	ARTICLE 11 REDEMPTION
	 	 	61	 
	 
	 	 	 	 
	Section 11.01. Redemption
	 	 	61	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 12 GUARANTEE
	 	 	62	 
	 
	 	 	 	 
	Section 12.01. Guarantee
	 	 	62	 
	 
	 	 	 	 
	Section 12.02. Execution and Delivery of Guarantee
	 	 	63	 
	 
	 	 	 	 
	Section 12.03. Limitation of Guarantor’s Liability; Certain Bankruptcy Events
	 	 	63	 
	 
	 	 	 	 
	Section 12.04. Successors and Assigns
	 	 	64	 
	 
	 	 	 	 
	Section 12.05. Application of Certain Terms and Provisions to the Guarantor
	 	 	64	 
	 
	 	 	 	 
	ARTICLE 13 MEETINGS OF HOLDERS OF NOTES
	 	 	65	 
	 
	 	 	 	 
	Section 13.01. Purposes for Which Meetings May Be Called
	 	 	65	 
	 
	 	 	 	 
	Section 13.02. Call, Notice and Place of Meetings
	 	 	65	 
	 
	 	 	 	 
	Section 13.03. Persons Entitled to Vote at Meetings
	 	 	65	 
	 
	 	 	 	 
	Section 13.04. Quorum; Action
	 	 	65	 
	 
	 	 	 	 
	Section 13.05. Determination of Voting Rights; Conduct and Adjournment of Meetings
	 	 	66	 
	 
	 	 	 	 
	Section 13.06. Counting Votes and Recording Action of Meetings
	 	 	67	 
	 
	 	 	 	 
	ARTICLE 14 MISCELLANEOUS
	 	 	67	 
	 
	 	 	 	 
	Section 14.01. Trust Indenture Act Controls
	 	 	67	 
	 
	 	 	 	 
	Section 14.02. Notices
	 	 	67	 
	 
	 	 	 	 
	Section 14.03. Communications by Holders with Other Holder
	 	 	68	 
	 
	 	 	 	 
	Section 14.04. Certificate and Opinion as to Conditions Precedent
	 	 	68	 
	 
	 	 	 	 
	Section 14.05. Record Date for Vote or Consent of Holders of Securities
	 	 	69	 
	 
	 	 	 	 
	Section 14.06. Rules by Trustee, Paying Agent, Registrar and Exchange Agent
	 	 	69	 
	 
	 	 	 	 
	Section 14.07. Legal Holidays
	 	 	70	 
	 
	 	 	 	 
	Section 14.08. Governing Law
	 	 	70	 
	 
	 	 	 	 
	Section 14.09. No Adverse Interpretation of Other Agreements
	 	 	70	 
	 
	 	 	 	 
	Section 14.10. No Recourse Against Others
	 	 	70	 
	 
	 	 	 	 
	Section 14.11. No Security Interest Created
	 	 	70	 
	 
	 	 	 	 
	Section 14.12. Successors
	 	 	70	 
	 
	 	 	 	 
	Section 14.13. Multiple Counterparts
	 	 	70	 
	 
	 	 	 	 
	Section 14.14. Separability
	 	 	70	 
	 
	 	 	 	 
	Section 14.15. Table of Contents, Headings, Etc.
	 	 	70	 
	 
	 	 	 	 
	Exhibit
	 	 	A-1	 

iv

 

CROSS REFERENCE TABLE*

	 	 	 	 	 
	TIA	 	 	 	INDENTURE
	SECTION	 	 	 	   SECTION
	Section
	 	310	 	14.01
	 
	 	310(a)(1)	 	8.10
	 
	 	(a)(2)	 	8.10
	 
	 	(a) (3)	 	N.A.**
	 
	 	(a) (4)	 	N.A.
	 
	 	(a) (5)	 	8.10
	 
	 	(b)	 	8.10
	 
	 	(c)	 	N.A.
	Section
	 	311	 	14.01
	 
	 	311 (a)	 	8.11
	 
	 	(b)	 	8.11
	 
	 	(c)	 	N.A.
	Section
	 	312	 	14.01
	 
	 	312(a)	 	2.05
	 
	 	(b)	 	14.03
	 
	 	(c)	 	14.03
	Section
	 	313	 	14.01
	 
	 	313(a)	 	8.06(a)
	 
	 	(b)(1)	 	N.A.
	 
	 	(b)(2)	 	8.06(a)
	 
	 	(c)	 	8.06(a)
	 
	 	(d)	 	8.06(b)
	Section
	 	314	 	14.01
	 
	 	314(a)	 	5.02(a); 5.03
	 
	 	(b)	 	N.A.
	 
	 	(c)(1)	 	2.02; 9.01; 14.04
	 
	 	(c)(2)	 	9.01; 14.04
	 
	 	(c)(3)	 	N.A.
	 
	 	(d)	 	N.A.
	 
	 	(e)	 	14.04
	 
	 	(f)	 	N.A.
	Section
	 	315	 	14.01
	 
	 	315(a)	 	8.01(b)
	 
	 	(b)	 	8.05
	 
	 	(d)	 	8.01(c)
	 
	 	(d)(2)	 	8.01(c)
	 
	 	(d)(3)	 	8.01(c)
	 
	 	(e)	 	7.11
	Section
	 	316	 	14.01
	 
	 	316 (a)	 	7.05; 10.02(b)
	 
	 	(b)	 	7.07
	 
	 	(c)	 	11.05
	Section
	 	317	 	7.08; 7.09; 14.01

 

 

	 	 	 	 	 
	TIA	 	 	 	INDENTURE
	SECTION	 	 	 	   SECTION
	Section
	 	318	 	14.01

 

			
	*	 	This Cross-Reference Table shall not, for any purpose, be deemed a part of this Indenture.
	 
	**	 	N.A. means Not Applicable.

 

 

     THIS INDENTURE dated as of December 11, 2006 is among First Potomac Realty Investment Limited
Partnership, a Delaware limited partnership (the “Company”), First Potomac Realty Trust, a Maryland
real estate investment trust (the “Guarantor” or, in its capacity as general partner of the
Company, the “General Partner”), and Wells Fargo Bank, National Association, a national banking
association, as Trustee (the “Trustee”).

     In consideration of the purchase of the Securities (as defined herein) by the Holders thereof,
both parties agree as follows for the benefit of the other and for the equal and ratable benefit of
the Holders of the Securities.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01. Definitions.

     “Acquired Debt” means Debt of a Person (i) existing at the time that Person is merged or
consolidated with or into, or becomes a Subsidiary of, the Company or the Guarantor (ii) assumed by
the Company, the Guarantor or any of its Subsidiaries in connection with the acquisition of assets
from that Person. Acquired Debt shall be deemed to be incurred on the date the acquired Person is
merged or consolidated with or into, or becomes a Subsidiary of, the Company or the Guarantor or
the date of the related acquisition, as the case may be.

     “Additional Interest” has the meaning specified in the Registration Rights Agreement. All
references herein to interest accrued or payable as of any date shall include any Additional
Interest accrued or payable as of such date as provided in the Registration Rights Agreement.

     “Affiliate” means, with respect to any specified person, 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
person means the power to direct the management and policies of such person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Agent” means any Registrar, Paying Agent or Exchange Agent.

     “Applicable Exchange Period” means, with respect to an exchange of Securities, the
three-Business Day period following the 20 consecutive Trading Day period following the date the
Securities are tendered for exchange.

     “Applicable Exchange Rate” means, as of any Trading Day, the Exchange Rate in effect on such
date, after giving effect to any adjustment provided under Section 4.01(g).

     “Applicable Procedures” means, with respect to any transfer or exchange of beneficial
ownership interests in a Global Security, the rules and procedures of the Depositary, to the extent
applicable to such transfer or exchange.

1

 

     “Average Price” means, with respect to an exchange of Securities, an amount equal to the
average of the Closing Sale Prices of Common Shares for each Trading Day in the Applicable Exchange
Period.

     “Beneficial Ownership” means the definition such term is given in accordance with Rule 13d-3
promulgated by the SEC under the Exchange Act.

     “Business Day” means any weekday that is not a day on which banking institutions in The City
of New York, New York or a place of payment are authorized or obligated to close.

     “Board of Trustees” means the board of trustees of the General Partner or a committee of such
board duly authorized to act on its behalf hereunder.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, but excluding any debt securities convertible into such equity.

     “Cash” or “cash” means such coin or currency of the United States as at any time of payment is
legal tender for the payment of public and private debts.

     “Certificated Security” means a Security that is in substantially the form attached as Exhibit
A but that does not include the information or the schedule called for by footnote 1 thereof.

     “Change in Control” means the occurrence at any time any 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 Shares, 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 Shares are exchanged for, converted into or constitute solely 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 or any
majority owned subsidiary of the Guarantor, or any employee benefit plan of such subsidiary,
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of more than 50% of the total voting power in the aggregate of all
classes of shares of the Capital Stock of the Guarantor then outstanding entitled to vote
generally in elections of trustees;

     (3) during any period of 12 consecutive months after the date of original issuance of
the Securities, persons who at the beginning of such 12-month period constituted the Board
of Trustees of the Guarantor, together with any new persons whose election was approved by a
vote of a majority of the persons then still comprising the Board of Trustees of the
Guarantor who were either members of the Board of Trustees of

2

 

the Guarantor 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 Trustees of the Guarantor;

     (4) the Common Shares (or other common shares or securities into which the Securities
are then exchangeable) cease to be listed on U.S. national or regional securities exchange;

     (5) the Guarantor (or any successor thereto permitted pursuant to the terms of this
Indenture) ceases to be the General Partner of or ceases to control the Company, or

     (6) the Guarantor’s shareholders approve any plan or proposal for the liquidation of
the Guarantor.

     Notwithstanding the foregoing, even if any of the events specified in the preceding clauses
(1) through (5) have occurred, except as specified in clause (x), a Change in Control will not be
deemed to have occurred if either: (x) the Closing Sale Price per Common Share for any five
Trading Days within (i) the period of 10 consecutive Trading Days ending immediately after the
later of the Change in Control or the public announcement of the Change in Control, in the case of
a Change in Control relating to an acquisition of Capital Stock, or (ii) the period of 10
consecutive Trading Days ending immediately after the Change in Control, in the case of a Change in
Control relating to a merger, consolidation or asset sale, equals or exceeds 105% of the Exchange
Price in effect on each of those Trading Days; provided, however, that the exception to the
definition of “Change in Control” specified in this clause (x) shall not apply in the context of a
Change in Control for purposes of Section 4.01(g); or (y) at least 90% of the consideration
(excluding cash payments for fractional shares and cash payments made pursuant to dissenters’
appraisal rights) in a merger, consolidation or other transaction otherwise constituting a Change
in Control consists of shares of common stock (or depositary receipts or other certificates
representing common equity interests) traded on a U.S. national securities exchange or quoted on an
established automated over-the-counter trading market in the United States (or will be so traded or
quoted immediately following such merger, consolidation or other transaction) and as a result of
the merger, consolidation or other transaction the Securities 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.

     “Change in Control Effective Date” means the date on which any Change in Control becomes
effective.

     “Change in Control Purchase Date” has the meaning provided in Section 3.01(b) hereof.

     “Change in Control Purchase Notice” has the meaning provided in Section 3.01(c) hereof.

     “Change in Control Purchase Price” of any Security, means 100% of the principal amount of the
Security to be purchased plus accrued and unpaid interest, if any, and Additional Interest, if any,
to, but excluding, the Change in Control Purchase Date.

3

 

     “Closing Sale Price” of the Common Shares 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 U.S. national or regional securities exchange on which
the Common Shares or such other Capital Stock or similar equity interests or other publicly traded
securities are listed or, if the Common Shares or such other Capital Stock or similar equity
interests or other publicly traded securities are not listed on a U.S. national or regional
securities exchange, as reported on another established over-the-counter trading market in the
United States. The Closing Sale Price shall be determined without regard to after-hours trading or
extended market making. In the absence of the foregoing, the Company shall determine the Closing
Sale Price on such basis as it considers appropriate.

     “Common Shares” means, subject to Section 4.10, the common shares of beneficial interest of
the Guarantor, par value $0.001 per share, at the date of this Indenture and any shares of any
class or classes of Capital Stock of the Guarantor resulting from any reclassification or
reclassifications thereof, or, in the event of a merger, consolidation or other similar transaction
involving the Guarantor that is otherwise permitted hereunder in which the Guarantor is not the
surviving corporation, the common stock, common equity interests, ordinary shares or depositary
shares or other certificates representing common equity interests of such surviving corporation or
its direct or indirect parent corporation, 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,
however, 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 of the Securities 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.

     “Company” means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to the applicable provisions of this Indenture, and thereafter
“Company” shall mean such successor Company.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time the
trust created by this Indenture shall be administered, which initially will be the office of Wells
Fargo Bank, National Association located at 608 2nd Avenue South, MAC N9393-120,
Minneapolis, Minnesota 55497, attention: First Potomac Account Manager.

     “Daily Exchange Value” means, with respect to any Trading Day, the product of (1) the
Applicable Exchange Rate and (2) the Closing Sale Price of the Common Shares on such Trading Day.

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

     (a) zero; and

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

	 	 	 	 
	 

	 	(CSP x er)-($1,000 + the Net Cash Amount, if any)	 
	 

	 	20 x CSP	 

     where,

     CSP means the Closing Sale Price per Common Share on such Trading Day,

     ER means the Applicable Exchange Rate, and

     Net Cash Amount has the meaning set forth in this Section 1.01.

     “Debt” means, with respect to any Person, any: (i) indebtedness of that Person, whether or
not contingent, in respect of borrowed money or evidenced by bonds, notes, debentures or similar
instruments, (ii) indebtedness secured by any lien on any property or asset owned by the Person,
but only to the extent of the lesser of (A) the amount of indebtedness so secured and (B) the fair
market value, determined in good faith by the board of directors of the Person or in the case of
the Company or the Guarantor or any of its Subsidiaries, by the Board of Trustees of the property
subject to such lien, (iii) reimbursement obligations, contingent or otherwise, in connection with
any letters of credit actually issued or amounts representing the balance deferred and unpaid of
the purchase price of any property except any such balance that constitutes an accrued expense or
trade payable, (iv) lease of property by a Person as lessee which is required to be reflected on
that Person’s balance sheet as a capitalized lease in accordance with GAAP, and (v) obligation of
such Person to be liable for, or to pay, as obligor, guarantor or otherwise, other than for
purposes of collection in the ordinary course of business, “Debt” referred to in clauses (i)
through (iv) above or another Person. “Debt” shall be deemed to be incurred by a Person whenever
that Person shall create, assume, guarantee or otherwise become liable in respect thereof.

     “Default” means, when used with respect to the Securities, any event that is or, after notice
or passage of time, or both, would be, an Event of Default.

     “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 Date” means, with respect to a Security, the date on which the Holder of the
Security has complied with Section 4.02.

     “Exchange Price” per Common Share as of any day means the result obtained by dividing (i)
$1,000 by (ii) the then applicable Exchange Rate, rounded to the nearest cent.

     “Exchange Rate” means the rate at which Common Shares shall be delivered upon exchange, which
rate shall be initially 27.6855 Common Shares for each $1,000 principal amount of Securities, as
adjusted from time to time pursuant to the provisions of this Indenture.

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     “Ex-Dividend Date” means the first date upon which a sale of Common Shares does not
automatically transfer the right to receive the relevant distribution from the seller of Common
Shares to the buyer.

     “Exchange Value” means, for each $1,000 principal amount of Securities, the average of the
Daily Exchange Values for each of the twenty consecutive Trading Days of the Applicable Exchange
Period.

     “Final Maturity Date” means December 15, 2011.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time, including those set forth in (1) the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants, (2) the
statements and pronouncements of the Public Company Accounting Oversight Board and the Financial
Accounting Standards Board, (3) such other statements by such other entity as approved by a
significant segment of the accounting profession and (4) the rules and regulations of the SEC
governing the inclusion of financial statements (including pro forma financial statements) in
registration statements filed under the Securities Act and periodic reports required to be filed
pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in staff
accounting bulletins and similar written statements from the accounting staff of the SEC.

     “General Partner” means the party named as the “General Partner” in the first paragraph of
this Indenture and, subject to Article 6, shall include its successor and assigns.

     “Global Security” means a Security in global form that is in substantially the form attached
as Exhibit A and that includes the information and schedule called for in footnote 1 thereof and
which is deposited with the Depositary or its custodian and registered in the name of the
Depositary or its nominee.

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

     “Guarantor” means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to the applicable provisions of this Indenture, and thereafter
“Guarantor” shall mean such successor Guarantor.

     “Holder” or “Holder of a Security” means the person in whose name a Security is registered on
the Registrar’s (as such term is defined in Section 2.03) books.

     “Indenture” means this Indenture as amended or supplemented from time to time pursuant to the
terms of this Indenture, including the provisions of the TIA that are automatically deemed to be a
part of this Indenture by operation of the TIA.

     “Initial Purchasers” means Wachovia Capital Markets, LLC, KeyBank Capital Markets, a division
of McDonald Investments Inc. and BMO Capital Markets Corp.

6

 

     “Interest Payment Date” means June 15 and December 15 of each year, commencing June 15, 2007.

     “Issue Date” of any Security means the date on which the Security was originally issued or
deemed issued as set forth on the face of the Security.

     “Net Amount” has the meaning provided in Section 4.13(a) hereof.

     “Net Cash Amount” has the meaning provided in Section 4.13(b) hereof.

     “NYSE” means the New York Stock Exchange.

     “Officer” means any person holding any of the following positions with the General Partner:
the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the
Chief Financial Officer, the Controller, the Secretary, any Assistant Controller or any Assistant
Secretary of the Company.

     “Officers’ Certificate”, when used with respect to the Company, means a certificate signed by
the Chairman, any Vice Chairman, the President or a Vice President and by the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary of the General Partner, and delivered
to the Trustee.

     “Opinion of Counsel” means a written opinion from legal counsel reasonably acceptable to the
Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

     “Outstanding” has the meaning set forth in Section 2.08.

     “Person” or “person” means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any syndicate or group that would be
deemed to be a “person” under Section 13(d)(3) of the Exchange Act or any other entity.

     “Principal” or “principal” of a debt security, including the Securities, means the principal
of the debt security plus, when appropriate, the premium, if any, on the debt security.

     “Redemption Date” means, with respect to any Security or portion thereof to be redeemed in
accordance with the provisions of Section 11.01 hereof, the date fixed for such redemption in
accordance with the provisions of Section 11.01 hereof.

     “Reference Dividend” has the meaning specified in Section 4.06(a)(4).

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of December
11, 2006, among the Company, the Guarantor and the Representative, as amended from time to time in
accordance with its terms.

     “Regular Record Date” means, with respect to each Interest Payment Date, June 1 or December 1
as the case may be, next preceding such Interest Payment Date.

7

 

     “REIT” means a “real estate investment trust” under the Internal Revenue Code of 1986, as
amended.

     “Representative” means Wachovia Capital Markets, LLC, as representative of the Initial
Purchasers.

     “Responsible Officer” means, when used with respect to the Trustee, any officer within the
corporate trust services division 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 person’s knowledge of and familiarity with
the particular subject.

     “Restricted Global Security” means a Global Security that is a Restricted Security.

     “Restricted Security” means a Security required to bear the restrictive legend set forth in
the form of Security annexed as Exhibit A.

     “Rule 144” means Rule 144 under the Securities Act or any successor to such Rule.

     “Rule 144A” means Rule 144A under the Securities Act or any successor to such Rule.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the $125,000,000 aggregate principal amount of 4.0% Exchangeable Senior
Notes due 2011, or any of them (each a “Security”), as amended or supplemented from time to time,
that are issued under this Indenture.

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

     “Securities Custodian” means the Trustee, as custodian with respect to the Securities in
global form, or any successor thereto.

     “Significant Subsidiary” means, in respect of any Person, as of any date of determination, a
Subsidiary of such Person that would constitute a “significant subsidiary” as such term is defined
under Rule 1-02(w) of Regulation S-X under the Securities Act.

     “Subsidiary” means, in respect of any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency within the control of such Person to
satisfy) to vote in the election of directors, managers, general partners or trustees thereof is at
the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one
or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

     “TIA” means the Trust Indenture Act of 1939, as amended, and the rules and regulations
thereunder as in effect on the date of this Indenture, except to the extent that the Trust
Indenture

8

 

Act or any amendment thereto expressly provides for application of the Trust Indenture Act as
in effect on another date.

     “Trading Day” means a day during which trading in securities generally occurs on the NYSE or,
if the Common Shares are not then listed on the NYSE, on the principal other U.S. national or
regional securities exchange on which Common Shares are then listed or, if Common Shares are not
then listed on a U.S. national or regional securities exchange, on the principal other market on
which Common Shares are then traded. A “Trading Day” only includes those days that have a
scheduled closing time of 4:00 p.m. (New York City time) or the then standard closing time for
regular trading on the relevant exchange or trading system.

     “Trading Price” means, with respect to the Securities on any date of determination, the
average of the secondary market bid quotations per $1,000 principal amount of Securities obtained
by the Trustee for a $1,000,000 principal amount of Securities at approximately 3:30 p.m., New York
City time, on such determination date from two independent nationally recognized securities dealers
selected by the Company, which may include one or more of the Initial Purchasers. 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 $1,000,000 principal amount of Securities from a nationally recognized securities dealer
or, in the reasonable judgment of the Company, the bid quotations are not indicative of the
secondary market value of the Securities, then the Trading Price per $1,000 principal amount of
Securities shall be deemed to be less than 98% of the product of the Closing Sale Price of Common
Shares and the Applicable Exchange Rate on such determination date.

     “Trustee” means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of this Indenture, and thereafter means the
successor.

     “Trust Officer” means, with respect to the Trustee, any officer assigned to the Corporate
Trust Office, and also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer’s knowledge of and familiarity with the particular subject.

     “Vice President,” when used with respect to the General Partner or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president.”

     “Voting Stock” of a Person means all classes of Capital Stock or other interests (including
partnership interests) of such Person then outstanding and normally entitled (without regard to the
occurrence of any contingency within the control of such person to satisfy) to vote in the election
of directors, managers or trustees thereof.

     Section 1.02. Other Definitions.

	 	 	 
	Term	 	Defined in Section
	“Additional Change in Control Shares”
	 	4.01(i)
	“Agent Members”
	 	2.01
	“Bankruptcy Law”
	 	7.01
	“Benefited Party”
	 	12.01

9

 

	 	 	 
	Term	 	Defined in Section
	“Business Combination”
	 	4.10
	“Company Order”
	 	2.02
	“Company Notice”
	 	3.01
	“Exchange Agent”
	 	2.03
	“Exchange Date”
	 	4.02
	“Depositary”
	 	2.01
	“Determination Date”
	 	4.06
	“Distribution Notice”
	 	4.01(b)
	“DTC”
	 	2.01
	“Event of Default”
	 	7.01
	“Expiration Date”
	 	4.06
	“Expiration Time”
	 	4.06
	“Guarantee Obligations”
	 	12.01
	“Legal Holiday”
	 	14.07
	“Net Amount”
	 	4.13
	“Net Cash Amount”
	 	4.13
	“Net Shares”
	 	4.13
	“Notice of Default”
	 	7.01
	“Paying Agent”
	 	2.03
	“Primary Registrar”
	 	2.03
	“Principal Return”
	 	4.13
	“QIB”
	 	2.01
	“Receiver”
	 	7.01
	“Registrar”
	 	2.03
	“record date”
	 	4.06
	“Restrictive Legend”
	 	2.12
	“Rights”
	 	4.06
	“Rights Plan”
	 	4.06
	“Share Price”
	 	4.01(g)
	“tender offer”
	 	4.06

     Section 1.03. Trust Indenture Act Provisions. Whenever this Indenture refers to a provision of the TIA, that provision is incorporated by
reference in and made a part of this Indenture. This Indenture shall also include those provisions
of the TIA required to be included herein by the provisions of the Trust Indenture Reform Act of
1990.

     The following TIA terms used in this Indenture have the following meanings:

     “indenture securities” means the Securities;

     “indenture security holder” means a Holder of a Security;

     “indenture
to be qualified”means this Indeture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

10

 

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

     All other terms used in this Indenture that are defined in the TIA, defined by TIA reference
to another statute or defined by any SEC rule and not otherwise defined herein have the meanings
assigned to them therein.

     Section 1.04. Rules of Construction. Unless the context otherwise requires:

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

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

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

     (4) provisions apply to successive events and transactions;

     (5) the term “merger” includes a statutory share exchange and the term “merged” has a
correlative meaning;

     (6) the masculine gender includes the feminine and the neuter;

     (7) references to agreements and other instruments include subsequent amendments
thereto; and

     (8) all “Article”, “Exhibit” and “Section” references are to Articles, Exhibits and
Sections, respectively, of or to this Indenture unless otherwise specified herein, and the
terms “herein”, “hereof” and other words of similar import refer to this Indenture as a
whole and not to any particular Article, Section or other subdivision.

ARTICLE 2

THE SECURITIES

     Section 2.01. Form and Dating. The Securities and the Trustee’s certificate of authentication shall be substantially in
the respective forms set forth in Exhibit A, which Exhibit is incorporated in and made part of this
Indenture. The Securities may have notations, legends or endorsements required by law, stock
exchange or automated quotation system rule or regulation or usage. The Company shall
provide any such notations, legends or endorsements to the Trustee in writing. Each Security
shall be dated the date of its authentication.

     (a) Restricted Global Securities. All of the Securities are initially being offered
and sold through the Initial Purchasers to qualified institutional buyers as defined in Rule 144A
(collectively, “QIBs” or individually, each a “QIB”) in reliance on Rule 144A under the Securities
Act and shall be issued initially in the form of one or more Restricted Global Securities, which
shall be deposited on behalf of the purchasers of the securities represented

11

 

thereby with the
Securities Custodian, as custodian for the depositary, The Depository Trust Company (“DTC”, and
such depositary, or any successor thereto, being hereinafter referred to as the “Depositary”), and
registered in the name of its nominee, Cede & Co. (or any successor thereto), for the accounts of
participants in the Depositary, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The aggregate principal amount of the Restricted Global Securities may from
time to time be increased or decreased by adjustments made on the records of the Securities
Custodian as hereinafter provided, subject in each case to compliance with the Applicable
Procedures.

     (b) Global Securities In General. The Securities issued in global form shall be
substantially in the form of Exhibit A attached hereto (including the Global Security legend
thereon and the “Schedule of Exchanges of Securities” attached thereto). The Securities issued in
definitive form shall be substantially in the form of Exhibit A attached hereto (but without the
Global Security legend thereon and without the “Schedule of Exchanges of Securities” attached
thereto). Each Global Security shall represent such of the outstanding Securities as shall be
specified therein and each shall provide that it shall represent the aggregate amount of
outstanding Securities from time to time endorsed thereon and that the aggregate amount of
outstanding Securities represented thereby may from time to time be reduced or increased, as
appropriate, to reflect replacements, exchanges, purchases, redemptions, or conversions of such
Securities. Any adjustment of the aggregate principal amount of a Global Security to reflect the
amount of any increase or decrease in the amount of outstanding Securities represented thereby
shall be made by the Trustee in accordance with instructions given by the Holder thereof as
required by Section 2.12 and shall be made on the records of the Trustee and the Depositary.

     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary or under
the Global Security, and the Depositary (including, for this purpose, its nominee) may be treated
by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and
Holder of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall (1) prevent the Company, the Trustee or any agent of the Company or the Trustee from
giving effect to any written certification, proxy or other authorization furnished by the
Depositary or (2) impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any Security.

     (c) Book Entry Provisions. The Company shall execute and the Trustee shall, in
accordance with this Section 2.01(c), authenticate and deliver initially one or more Global
Securities that (1) shall be registered in the name of the Depositary or its nominee, (2) shall be
held by the Trustee, as Securities Custodian for the Depositary or pursuant to the
Depositary’s instructions and (3) shall bear legends substantially to the following effect:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE

12

 

DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE
NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY
A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY
OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITARY.”

     Section 2.02. Execution and Authentication.

     (a) The aggregate principal amount of Securities which may be authenticated and delivered
under this Indenture is limited to $125,000,000 aggregate principal amount.

     (b) An Officer shall sign the Securities for the Company by manual or facsimile signature.
Typographic and other minor errors or defects in any such facsimile signature shall not affect the
validity or enforceability of any Security that has been authenticated and delivered by the
Trustee.

     (c) If an officer whose signature is on a Security no longer holds that office at the time the
Trustee authenticates the Security, the Security shall be valid nevertheless.

     (d) A Security shall not be valid until an authorized signatory of the Trustee by manual
signature signs the certificate of authentication on the Security. The signature shall be
conclusive evidence that the Security has been authenticated under this Indenture.

     (e) The Trustee shall authenticate and make available for delivery Securities for original
issue in the aggregate principal amount of $125,000,000 upon receipt of a written order or orders
of the Company signed by an Officer of the Company (a “Company Order”). The Company order shall
specify the amount of Securities to be authenticated, shall provide that all such securities will
be represented by a Restricted Global Security and the date on which each original issue of
Securities is to be authenticated.

     (f) The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may
appoint an authenticating agent acceptable to the Company to authenticate Securities. An

13

 

authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in
this Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent shall have the same rights as an Agent to deal with the Company or an
Affiliate of the Company.

     Section 2.03. Registrar, Paying Agent and Exchange Agent.

     (a) The Company shall maintain one or more offices or agencies where Securities may be
presented for registration of transfer or for exchange (each, a “Registrar”), one or more offices
or agencies where Securities may be presented for payment (each, a “Paying Agent”), one or more
offices or agencies where Securities may be presented for exchange (each, an “Exchange Agent”) and
one or more offices or agencies where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. The Company will at all times maintain a Paying
Agent, Exchange Agent, Registrar and an office or agency where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served in the United States. One of
the Registrars (the “Primary Registrar”) shall keep a register of the Securities and of their
transfer and exchange.

     (b) The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, provided that the Agent may be an Affiliate of the Trustee. The agreement shall
implement the provisions of this Indenture that relate to such Agent. The Company shall notify the
Trustee of the name and address of any Agent not a party to this Indenture. If the Company fails
to maintain a Registrar, Paying Agent, Exchange Agent, or agent for service of notices and demands
in any place required by this Indenture, or fails to give the foregoing notice, the Trustee shall
act as such. The Company or any Affiliate of the Company may act as Paying Agent (except for the
purposes of Section 5.01 and Article 9).

     (c) The Company hereby initially designates the Trustee as Paying Agent, Registrar, Securities
Custodian and Exchange Agent, and initially designates the Corporate Trust Office of the Trustee as
an office or agency where notices and demands to or upon the Company in respect of the Securities
and this Indenture shall be served.

     Section 2.04. Paying Agent to Hold Money in Trust. Prior to 10:00 a.m., New York City time, on each due date of the payment of principal of,
or interest on, any Securities, the Company shall deposit with the Paying Agent a sum sufficient to
pay such principal or interest so becoming due. Subject to Section 9.02, a Paying Agent shall hold
in trust for the benefit of Holders of Securities or the Trustee all money held by the Paying Agent
for the payment of principal of, or interest on, the Securities, and shall notify the Trustee of
any failure by the Company (or any other obligor on the Securities) to make any such payment. If
the Company or an Affiliate of the Company acts as Paying Agent, it shall, before 10:00 a.m., New
York City time, on each due date of the principal of, or interest on, any Securities, segregate the
money and hold it as a separate trust fund. The Company at any time may require a Paying Agent to
pay all money held by it to the Trustee, and the Trustee may at any time during the continuance of
any Default, upon written request to a Paying Agent, require such Paying Agent to pay forthwith to
the Trustee all sums so held in trust by such Paying Agent. Upon doing so, the Paying Agent (other
than the Company) shall have no further liability for the money. The Company or an

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Affiliate of
the Company shall not act as Paying Agent in connection with a redemption pursuant to Article 11 or
pursuant to repurchase pursuant to Section 3.01.

     Section 2.05. Lists of Holders of Securities. The Trustee shall preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of Holders of Securities.

     Section 2.06. Transfer and Exchange.

     (a) Subject to compliance with any applicable additional requirements contained in Section
2.12, when a Security is presented to a Registrar with a request to register a transfer thereof or
to exchange such Security for an equal principal amount of Securities of other authorized
denominations, the Registrar shall register the transfer or make the exchange as requested;
provided, however, that every Security presented or surrendered for registration of transfer or
exchange shall be duly endorsed or accompanied by an assignment form and, if applicable, a transfer
certificate each in the form included in Exhibit A, and completed in a manner satisfactory to the
Registrar and duly executed by the Holder thereof or its attorney duly authorized in writing. To
permit registration of transfers and exchanges, upon surrender of any Security for registration of
transfer or exchange at an office or agency maintained pursuant to Section 2.03, the Company shall
execute and the Trustee shall authenticate Securities of a like aggregate principal amount at the
Registrar’s request. Any exchange or transfer shall be without charge, except that the Company or
the Registrar may require payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto; provided that this sentence shall not apply to any
exchange pursuant to Section 2.10, 2.12(a), 3.03, 4.02(e), or 4.04.

     (b) Neither the Company, any Registrar nor the Trustee shall be required to exchange or
register a transfer of (1) any Securities for a period of 15 days next preceding mailing of a
notice of Securities to be redeemed, or (2) any Securities or portions thereof in respect of which
a
Change in Control Purchase Notice has been delivered and not withdrawn by the Holder thereof
(except, in the case of the purchase of a Security in part, the portion thereof not to be
purchased).

     (c) All Securities issued upon any transfer or exchange of Securities shall be valid
obligations of the Company, evidencing the same debt and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such transfer or exchange.

     (d) Any Registrar appointed pursuant to Section 2.03 shall provide to the Trustee such
information as the Trustee may reasonably require in connection with the delivery by such Registrar
of Securities upon transfer or exchange of Securities.

     (e) Each Holder of a Security agrees to indemnify the Company and the Trustee against any
liability that may result from the transfer, exchange or assignment of such Holder’s Security in
violation of any provision of this Indenture and/or applicable United States federal or state
securities law.

     (f) 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 Security (including any transfers between

15

 

or
among Agent Members or other beneficial owners of interests in any Global Security) 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 2.07. Replacement Securities.

     (a) If any mutilated Security is surrendered to the Company, a Registrar or the Trustee, and
the Company, a Registrar and the Trustee receive evidence to their satisfaction of the destruction,
loss or theft of any Security, and there is delivered to the Company, the applicable Registrar and
the Trustee such security or indemnity as will be required by them to save each of them harmless,
then, in the absence of notice to the Company, such Registrar or the Trustee that such Security has
been acquired by a bona fide purchaser, the Company shall execute, and upon its written request the
Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of
any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount,
bearing a number not contemporaneously outstanding.

     (b) If any such mutilated, destroyed, lost or stolen Security has become or is about to become
due and payable, or is about to be purchased by the Company pursuant to Article 3, or exchanged
pursuant to Article 4, the Company in its discretion may, instead of issuing a new Security, pay,
purchase or exchange such Security, as the case may be.

     (c) Upon the issuance of any new Securities under this Section 2.07, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto as a result of any Securities, at the request of any Holder,
being issued to a Person other than such Holder and any other reasonable expenses (including
the reasonable fees and expenses of the Trustee or the Registrar) in connection therewith.

     (d) Every new Security issued pursuant to this Section 2.07 in lieu of any mutilated,
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

     (e) The provisions of this Section 2.07 are (to the extent lawful) exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

     Section 2.08. Outstanding Securities.

     (a) Securities outstanding at any time are all Securities authenticated by the Trustee, except
for those canceled by it, those purchased pursuant to Article 3, those exchanged pursuant to
Article 4, those redeemed by the Company pursuant to Article 11, those delivered to the Trustee for
cancellation or surrendered for transfer or exchange and those described in this Section 2.08 as
not outstanding.

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     (b) If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Company receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.

     (c) If a Paying Agent (other than the Company or an Affiliate of the Company) holds in respect
of the outstanding Securities on a Change in Control Purchase Date, Redemption Date or the Final
Maturity Date money sufficient to pay the principal of (including premium, if any), accrued
interest and Additional Interest, if any, on Securities (or portions thereof) payable on that date,
then on and after such Change in Control Purchase Date, Redemption Date or Final Maturity Date, as
the case may be, such Securities (or portions thereof, as the case may be) shall cease to be
outstanding and cash interest and Additional Interest, if any, on them shall cease to accrue.

     (d) Subject to the restrictions contained in Section 2.09, a Security does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Security.

     Section 2.09. Treasury Securities. In determining whether the Holders of the required principal amount of Securities have
concurred in any notice, direction, waiver or consent, securities owned by the Company or any other
obligor on the Securities or by any Affiliate of the Company or of such other obligor shall be
disregarded, except that, for purposes of determining whether the Trustee shall be protected in
relying on any such notice, direction, waiver or consent, only Securities which a Trust Officer of
the Trustee with responsibility for this Indenture actually knows are so owned shall be so
disregarded. Securities so owned which have been pledged in good faith shall not be disregarded
if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act
with respect to the Securities and that the pledgee is not the Company or any other obligor on the
Securities or any Affiliate of the Company or of such other obligor.

     Section 2.10. Temporary Securities. Until definitive Securities are ready for delivery, the Company may prepare and execute,
and, upon receipt of a Company Order, the Trustee shall authenticate and deliver, temporary
Securities. Temporary Securities shall be substantially in the form of definitive securities but
may have variations that the Company with the consent of the Trustee considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate and deliver definitive Securities in exchange for temporary Securities.

     Holders of temporary Securities shall be entitled to all of the benefits of this indenture.

     Section 2.11. Cancellation. The Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar, the Paying Agent and the Exchange Agent shall forward to the Trustee or its agent any
Securities surrendered to them for transfer, exchange, purchase, payment or conversion. The
Trustee and no one else shall cancel, in accordance with its standard procedures, all Securities
surrendered for transfer, exchange, purchase, payment, conversion or cancellation and shall dispose
of the canceled Securities in accordance with its customary procedures or deliver the canceled
Securities to the Company. All Securities which are purchased, redeemed or otherwise acquired by
the Company or any of its Subsidiaries prior to the Final Maturity Date pursuant to Article 3 shall
be delivered to the Trustee for cancellation,

17

 

and the Company may not hold or resell such
Securities or issue any new Securities to replace any such Securities or any Securities that any
Holder has exchanged pursuant to Article 4.

     Section 2.12. Legend; Additional Transfer and Exchange Requirements.

     (a) If Securities are issued upon the transfer, exchange or replacement of Securities subject
to restrictions on transfer and bearing the legends set forth on the forms of Securities attached
as Exhibit A relating to restrictions on transfer of the Securities (collectively, the “Restrictive
Legend”), or if a request is made to remove the Restrictive Legend on a Security, the Securities so
issued shall bear the Restrictive Legend, or the Restrictive Legend shall not be removed, as the
case may be, unless there is delivered to the Company and the Registrar such satisfactory evidence,
which shall include an Opinion of Counsel if requested by the Company or such Registrar, as may be
reasonably required by the Company and the Registrar, that neither the Restrictive Legend nor the
restrictions on transfer set forth therein are required to ensure that transfers thereof comply
with the provisions of Rule 144A or Rule 144 or that such Securities are not “restricted” within
the meaning of Rule 144; provided that no such evidence need be supplied in connection with the
sale of such Security pursuant to a registration statement that is effective at the time of such
sale. Upon (1) provision of such satisfactory evidence if requested or (2) notification by the
Company to the Trustee and Registrar of the sale of such Security
pursuant to a registration statement that is effective at the time of such sale, the Trustee,
at the written direction of the Company, shall authenticate and deliver a Security that does not
bear the Legend. If the Legend is removed from the face of a Security and the Security is
subsequently held by an Affiliate of the Company, the Legend shall be reinstated.

     (b) A Global Security may not be transferred, in whole or in part, to any Person other than
the Depositary or a nominee or any successor thereof, and no such transfer to any such other Person
may be registered; provided that the foregoing shall not prohibit any transfer of a Security that
is issued in exchange for a Global Security but is not itself a Global Security. No transfer of a
Security to any Person shall be effective under this Indenture or the Securities unless and until
such Security has been registered in the name of such Person. Notwithstanding any other provisions
of this Indenture or the Securities, transfers of a Global Security, in whole or in part, shall be
made only in accordance with this Section 2.12.

     (c) Subject to Section 2.12(b) and in compliance with Section 2.12(d), every Security shall be
subject to the restrictions on transfer provided in the Restrictive Legend. Whenever any
Restricted Security other than a Restricted Global Security is presented or surrendered for
registration of transfer or in exchange for a Security registered in a name other than that of the
Holder, such Security must be accompanied by a certificate in substantially the form set forth in
Exhibit A, dated the date of such surrender and signed by the Holder of such Security, as to
compliance with such restrictions on transfer. The Registrar shall not be required to accept for
such registration of transfer or exchange any Security not so accompanied by a properly completed
certificate.

     (d) The restrictions imposed by the Restrictive Legend upon the transferability of any
Security shall cease and terminate when such Security has been sold pursuant to an effective
registration statement under the Securities Act or transferred in compliance with Rule 144 (or any
successor provision thereto) or, if earlier, upon the expiration of the holding period

18

 

applicable
to sales thereof under Rule 144(k) under the Securities Act (or any successor provision). Any
Security as to which such restrictions on transfer shall have expired in accordance with their
terms or shall have terminated may, upon a surrender of such Security for exchange to the Registrar
in accordance with the provisions of this Section 2.12 (accompanied, in the event that such
restrictions on transfer have terminated by reason of a transfer in compliance with Rule 144 or any
successor provision, by, if requested by the Company or the Registrar, an Opinion of Counsel
reasonably acceptable to the Company and the Registrar and addressed to the Company and the
Registrar, to the effect that the transfer of such Security has been made in compliance with Rule
144 or such successor provision), be exchanged for a new Security, of like tenor and aggregate
principal amount, which shall not bear the Restrictive Legend. The Company shall inform the
Trustee of the effective date of any registration statement registering the offer and sale of the
Securities under the Securities Act. The Trustee shall not be liable for any action taken or
omitted to be taken by it in good faith in accordance with the aforementioned Opinion of Counsel or
registration statement.

     As used in Sections 2.12(c) and (d), the term “transfer” encompasses any sale, pledge,
transfer, hypothecation or other disposition of any Security.

     (e) The provisions below shall apply only to Global Securities:

     (1) Each Global Security 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 Security shall constitute a single
Security for purposes of this Indenture.

     (2) Notwithstanding any other provisions of this Indenture or the Securities, a Global
Security shall not be exchanged in whole or in part for a Security registered, and no
transfer of a Global Security in whole or in part shall be registered in the name of any
Person other than the Depositary or one or more nominees thereof; provided that a Global
Security may be exchanged for securities registered in the names of any person designated by
the Depositary in the event that (A) the Depositary has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or such Depositary
has ceased to be a “clearing agency” registered under the Exchange Act, and a successor
Depositary is not appointed by the Company within 90 days after receiving such notice or
becoming aware that the Depositary has ceased to be a “clearing agency,” or (B) an Event of
Default has occurred and is continuing with respect to the Securities. Any Global Security
exchanged pursuant to subclause (A) above shall be so exchanged in whole and not in part,
and any Global Security exchanged pursuant to subclause (B) above may be exchanged in whole
or from time to time in part as directed by the Depositary. Any Security issued in exchange
for a Global Security or any portion thereof shall be a Global Security; provided further
that any such Security so issued that is registered in the name of a Person other than the
Depositary or a nominee thereof shall not be a Global Security.

     (3) Securities issued in exchange for a Global Security or any portion thereof shall be
issued in definitive, fully registered form, shall have an aggregate principal amount equal
to that of such Global Security or portion thereof to be so exchanged, shall

19

 

be registered
in such names and be in such authorized denominations as the Depositary shall designate and
shall bear the applicable legends provided for herein. Any Global Security to be exchanged
in whole shall be surrendered by the Depositary to the Trustee, as Registrar. With regard
to any Global Security to be exchanged in part, either such Global Security 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 Security, 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 deliver the Security issuable on such exchange to or upon the
order of the Depositary or an authorized representative thereof.

     (4) Subject to clause (6) of this Section 2.12(e), the registered Holder may grant
proxies and otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action which a Holder is entitled to take
under this Indenture or the Securities.

     (5) In the event of the occurrence of any of the events specified in clause (2) of this
Section 2.12(e), the Company will promptly make available to the Trustee a reasonable supply
of Certificated Securities in definitive, fully registered form, in the event that any such
Security so issued is registered in the name of a Person other than the Depositary.

     (6) Neither 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 Security registered in
the name of the Depositary or any nominee thereof, or under any such Global Security, and
the Depositary or such nominee, as the case may be, may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner and Holder of such
Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Trustee or any agent of the Company 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
Security.

     (7) At such time as all interests in a Global Security have been converted, canceled or
exchanged for Securities in certificated form, such Global Security shall, upon receipt
thereof, be canceled by the Trustee in accordance with standing procedures and instructions
existing between the Depositary and the Securities Custodian, subject to Section 2.11 of
this Indenture. At any time prior to such cancellation, if any interest in a Global
Security is converted, canceled or exchanged for Securities in certificated form, the
principal amount of such Global Security shall, in accordance with the standing procedures
and instructions existing between the Depositary and the Securities Custodian, be
appropriately reduced, and an endorsement shall be made on such Global Security, by the
Trustee or the Securities Custodian, at the direction of the Trustee, to reflect such
reduction.

20

 

     (f) Until the expiration of the holding period applicable to sales thereof under Rule 144(k)
under the Securities Act (or any successor provision thereto), any stock certificate representing
Common Shares issued upon exchange of any Security shall bear the restrictive legend required to be
included with a Restricted Security, unless such Common Shares have 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 transferred in compliance with Rule 144
(or any successor provision thereto), or unless otherwise agreed by the Company in writing with
written notice thereof to the transfer agent.

     Any such Common Shares 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 restrictive legend set
forth therein have been satisfied may, upon surrender of the certificates representing such Common
Shares for exchange in accordance with the procedures of the transfer agent for the Common Shares,
be exchanged for a new certificate or certificates for a like number of Common Shares, which shall
not bear the restrictive legend required by this section.

     Section 2.13. CUSIP Numbers. The Company in issuing the Securities may
use one or more “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use
“CUSIP” numbers in notices of purchase as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers either as printed on
the Securities or as contained in any notice of a purchase and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such purchase shall not be
affected by any defect in or omission of such numbers. The Company will promptly notify the
Trustee of any change in the “CUSIP” numbers.

ARTICLE 3

REPURCHASE

     Section 3.01. Repurchase at Option of Holders upon a Change in Control.

     (a) If a Change in Control occurs at any time, a Holder of Securities shall have the right to
require the Company to repurchase such Holder’s Securities, in whole or in part (in principal
amounts of $1,000 or an integral multiple thereof) for cash equal to the Change in Control Purchase
Price, subject to satisfaction by or on behalf of the Holder of the requirements set forth below.

     (b) Within 20 days after the occurrence of a Change in Control, the Company shall provide
written notification to the Holders of the Change in Control and of the repurchase right arising as
a result of the Change in Control (the “Company Notice”). The notice shall include a form of
Change in Control Purchase Notice to be completed by the Holder and shall state:

     (1) briefly, the events causing a Change in Control and the date of such Change in
Control;

     (2) the date by which the Change in Control Purchase Notice must be delivered to the
Paying Agent;

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     (3) the date on which the Company will repurchase Securities in connection with a
Change in Control, which must be not less than 15 days nor more than 45 days after the
date of the Company Notice (such date, the “Change in Control Purchase Date”);

     (4) the Change in Control Purchase Price;

     (5) the name and address of the Trustee, the Paying Agent and the Exchange Agent;

     (6) that Securities in respect of which a Change in Control Purchase Notice is
provided by a Holder shall not be exchangeable unless such Holder validly
withdraws such Change in Control Purchase Notice in accordance with the provisions of
this Section 3.01;

     (7) that Securities must be surrendered to the Paying Agent to collect payment of the
Change in Control Purchase Price;

     (8) that the Change in Control Purchase Price for any Security as to which a Change
in Control Purchase Notice has been duly given will be paid within two Business Days after
the later of the Change in Control Purchase Date or the time at which such Securities are
surrendered for repurchase;

     (9) that, unless the Company defaults in making payment of the Change in Control
Purchase Price, interest on Securities surrendered for repurchase will cease to accrue on
and after the Change in Control Purchase Date; and

     (10) the CUSIP number of the Securities.

     The Company shall also disseminate a press release through Dow Jones & Company, Inc. or
Bloomberg Business News announcing the occurrence of such Change in Control or publish such
information in the Wall Street Journal or another newspaper of general circulation in The City of
New York or on the Company’s website, or through such other public medium as the Company shall deem
appropriate at such time.

     (c) A Holder may exercise its rights specified in this Section 3.01 upon delivery of a written
notice of such Holder’s exercise of its repurchase right (a “Change in Control Purchase Notice”) to
the Trustee (or any Paying Agent) at any time prior to the close of business on the third Business
Day prior to the Change in Control Purchase Date, stating:

     (1) if such Securities are in certificated form, the certificate number(s) of the
Securities which the Holder will deliver to be repurchased;

     (2) the portion of the principal amount of the Securities to be repurchased, in
multiples of $1,000, provided that the remaining principal amount of Securities is in an
authorized denomination; and

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     (3) that such Security shall be repurchased pursuant to the applicable provisions
hereof and of the Securities.

     The Trustee (or any Paying Agent) shall promptly notify the Company in writing of the receipt
by it of any Change in Control Purchase Notice.

     Book-entry transfer of Securities in book-entry form in compliance with the Applicable
Procedures or delivery of Securities in certificated form (together with all necessary
endorsements) to the Paying Agent on or after the Change in Control Purchase Date at the offices of
the Paying Agent shall be a condition to the receipt by the Holder of the Change in Control
Purchase Price therefor. Holders electing to require the Company to repurchase Securities must
effect such transfer or delivery to the Paying Agent prior to the Change in Control Purchase Date
to receive payment of the Change in Control Purchase Price on or within two Business Days
after the Change in Control Purchase Date. The Company shall pay the Change in Control
Purchase Price within two Business Days after the later of the Change in Control Purchase Date or
the time of such transfer or delivery of the Securities.

     (d) A Change in Control Purchase Notice may be withdrawn in whole or in part by a Holder by
means of a written notice of withdrawal delivered to the office of the Paying Agent prior to the
close of business on the third Business Day prior to the Change in Control Purchase Date
specifying:

     (1) the Holder’s name;

     (2) the principal amount of Securities in respect of which the Change in Control
Purchase Notice is being withdrawn, which must be an integral multiple of $1,000;

     (3) if the Securities subject to the notice of withdrawal are in certificated form,
the certificate number(s) of all Securities subject to the notice of withdrawal; and

     (4) the principal amount of Securities, if any, that remains subject to the Change in
Control Purchase Notice, which must be an integral multiple of $1,000.

     If Securities subject to the notice of withdrawal are in book-entry form, the above notices
must also comply with the Applicable Procedures.

     (e) On or before 10:00 a.m. (New York City time) on the Change in Control Purchase Date, the
Company shall deposit with the Paying Agent money sufficient to pay the aggregate Change in Control
Purchase Price of the Securities to be purchased pursuant to this Section 3.01. If the Paying
Agent holds, in accordance with the terms of the Indenture, money sufficient to pay the Change in
Control Purchase Price of such Securities on the Change in Control Purchase Date, then, on and
after such date, such Securities shall cease to be Outstanding and interest on such Securities
shall cease to accrue and all rights of the Holders of such Securities shall terminate (other than
the right to receive the Change in Control Purchase Price after delivery or transfer of the
Securities). Such will be the case whether or not book entry transfer of the Securities in book
entry form is made and whether or not Securities in certificated form, together with the necessary
endorsements, are delivered to the Paying Agent.

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     (f) Notwithstanding the foregoing, no Securities may be repurchased by the Company in
accordance with the provisions of this Section 3.01 if there has occurred and is continuing an
Event of Default with respect to the Securities (other than a default in the payment of the Change
in Control Purchase Price).

     (g) The Paying Agent will promptly return to the respective Holders thereof any Securities
with respect to which a Change in Control Purchase Notice has been withdrawn in compliance with
this Indenture.

     (h) If a Change in Control Purchase Date falls after a Regular Record Date and on or before
the related Interest Payment Date, then interest on the Securities payable on such Interest
Payment Date will be payable to the Holders in whose names the Securities are registered at
the close of business on such Regular Record Date.

     Section 3.02. Repayment to the Company. To the extent that the aggregate
amount of cash deposited by the Company pursuant to Section 3.01 exceeds the aggregate Change in
Control Purchase Price of the Securities or portions thereof that the Company is obligated to
purchase, then promptly after the Change in Control Purchase Date, the Trustee or a Paying Agent,
as the case may be, shall return any such excess cash to the Company.

     Section 3.03. Securities Purchased in Part. Any Security that is to be
purchased only in part shall be surrendered at the office of a Paying Agent, and promptly after the
Change in Control Purchase Date, the Company shall execute and the Trustee shall authenticate and
deliver to the Holder of such Security, without service charge, a new Security or Securities, of
such authorized denomination or denominations as may be requested by such Holder (which must be
equal to $1,000 principal amount or any integral thereof), in aggregate principal amount equal to,
and in exchange for, the portion of the principal amount of the Security so surrendered that is not
purchased.

     Section 3.04. Compliance with Securities Laws upon Purchase of Securities.
In connection with any offer to purchase Securities under Section 3.01, the Company shall (a)
comply with Rule 13e-4 and Rule 14e-1 (or any successor to either such Rule), and any other tender
offer rules, if applicable, under the Exchange Act, (b) file the related Schedule TO (or any
successor or similar schedule, form or report) if required under the Exchange Act, and (c)
otherwise comply with all federal and state securities laws in connection with such offer to
purchase or purchase of Securities, all so as to permit the rights of the Holders and obligations
of the Company under Section 3.01 to be exercised in the time and in the manner specified therein.
To the extent that compliance with any such laws, rules and regulations would result in a conflict
with any of the terms hereof, this Indenture is hereby modified to the extent required for the
Company to comply with such laws, rules and regulations.

     Section 3.05. Purchase of Securities in Open Market. The Company may
repurchase Securities in the open market, by tender at any price or by negotiated transactions.
The Company shall surrender any Security purchased by the Company to the Trustee for cancellation.
Any securities surrendered to the Trustee for cancellation may not be reissued or resold by the
Company and will be canceled promptly in accordance with Section 2.11.

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ARTICLE 4

EXCHANGE

     Section 4.01. Exchange Privilege and Exchange Rate.

     (a) Upon compliance with the provisions of this Article 4, at the option of the Holder
thereof, any Security or portion thereof that is an integral multiple of $1,000 principal amount
may be exchanged for the consideration provided for in Section 4.13 in the following circumstances:

     (1) during any calendar quarter beginning after December 31, 2006, and only during such
calendar quarter, if, as of the last day of the immediately preceding calendar quarter, the
Closing Sale Price per Common Share for at least 20 Trading Days (whether or not
consecutive) in the period of the 30 consecutive Trading Days ending on the last Trading Day
of such preceding calendar quarter was more than 130% of the Exchange Price per Common Share
in effect on the applicable Trading Day;

     (2) if the Guarantor distributes to all holders of Common Shares rights entitling them
to purchase, for a period expiring within 60 days of the date of issuance, Common Shares at
less than the Closing Sale Price of the Common Shares on the Trading Day ending on the date
immediately preceding the first public announcement of the distribution;

     (3) if the Guarantor distributes to all holders of Common Shares, assets, debt
securities (or other evidences of Indebtedness) or rights to purchase the Guarantor’s
securities, which distribution, together with all other distributions within the preceding
twelve months, has a per share value, as determined by the Guarantor’s Board of Trustees,
exceeding 10% of the average of the Closing Sale Prices of the Common Shares for the five
consecutive Trading Days ending on the date immediately preceding the first public
announcement of such distribution;

     (4) if a Change in Control occurs;

     (5) at any time during the period beginning on October 15, 2011 and ending at the close
of business on the second Business Day prior to the Final Maturity Date;

     (6) during any five consecutive Trading Days after any five consecutive Trading Day
period in which the Trading Price per $1,000 principal amount of Securities, as determined
following a request by a Holder in accordance with the procedures described below in Section
4.01(d)(ii), for each day of that period was less than 98% of the product of (i) the Closing
Sale Price of the Common Shares for each day in that period and (ii) the Applicable Exchange
Rate;

     (7) a Holder may surrender for exchange any of the Securities called for redemption at
any time prior to the close of business on the third Business Day prior to the Redemption
Date. The right to exchange Securities pursuant to this clause (7) will
expire after the close of business on the third Business Day prior to the Redemption
Date unless the Company defaults in making the payment due upon redemption. A Holder

25

 

may exchange fewer than all of its Securities so long as the Securities exchanged are an
integral multiple of $1,000 principal amount and the remaining principal amount of
Securities is in an authorized denomination; or

     (8) if the Common Shares ceases to be listed on a U.S. national or regional securities
exchange, during the period beginning on the date the Common Shares was delisted and ending
on the close of business on the 30th Business Day after such date. The Company
shall notify Holders and the Trustee of the delisting of the Common Shares within five days
following the delisting.

     (b) In the case of a distribution contemplated by clauses (2) and (3) of Section 4.01(a), the
Company shall notify Holders and the Trustee at least 20 days prior to the
Ex-Dividend Date for such distribution (the “Distribution Notice”). Once the Company has
given the Distribution Notice, Holders may surrender their Securities for exchange at any time
until the earlier of the close of business on the last Business Day preceding the Ex-Dividend Date
or the Company’s announcement that such distribution will not take place. In the event of a
distribution contemplated by clauses (2) and (3) of Section 4.01(a), Holders may not exchange the
Securities if the Holders may otherwise participate in such distribution to the same extent as if
the Securities had been exchanged into Common Shares immediately prior to the time at which
eligibility is determined for such transaction without exchanging their Securities, other than
through adjustments contemplated by Section 4.06. The Company will provide written notice to the
Exchange Agent as soon as reasonably practicable of any anticipated or actual event or transaction
that will cause or causes the Securities to become exchangeable pursuant to clause (2) or (3) of
Section 4.01(a).

     (c) In the case of a transaction contemplated by clause (4) of Section 4.01(a), the Company
will notify the Holders and Trustee as promptly as practicable following the date the Company
publicly announces the Change in Control, but in no event will such public announcement be less
than five Business Days prior to the Change in Control Effective Date. Holders may surrender
Securities for exchange at any time from and after the Change in Control Effective Date until the
close of business on the 30th Business Day following the Change in Control Effective
Date.

     (d) (i) For each calendar quarter of the Company, beginning with the calendar quarter ending
December 31, 2006, the Company will determine, on the first Business Day following the last Trading
Day of such calendar quarter, whether the Securities are exchangeable pursuant to clause (1) of
Section 4.01(a), and, if so, will notify the Trustee and the Exchange Agent in writing. Upon
request of the Exchange Agent, the Company shall provide, or cause to be provided to, the Exchange
Agent the Closing Sale Price of the Common Shares for the 30 consecutive Trading Days ending on the
last Trading Day of the preceding calendar quarter.

     (ii) The Trustee shall have no obligation to determine the Trading Price of the Securities and
whether the Securities are exchangeable pursuant to clause (6) of Section 4.01(a) unless a Holder
of Securities provides the Company with reasonable evidence that the Trading Price per $1,000
principal amount of Securities would be less than 98% of the product of the
Closing Sale Price of the Common Shares and the Applicable Exchange Rate over the relevant
period. At such time, the Company shall instruct the Trustee to determine the Trading Price of

26

 

the
Securities beginning on the next Trading Day and on each successive Trading Day until the Trading
Price per $1,000 principal amount of the Securities is greater than 98% of the product of the
Closing Sale Price of the Common Shares and the Applicable Exchange Rate.

     (e) If a Security is submitted or presented for purchase upon a Change in Control pursuant to
Article 3, such exchange right shall terminate at the close of business on the Business Day
immediately preceding the Change in Control Purchase Date for such Security (unless the Company
shall fail to make the Change in Control Purchase Price payment when due in accordance with Article
3, in which case the exchange right shall terminate at the close of business on the date such
failure is cured and such Security is redeemed or purchased, as the case may be). Securities in
respect of which a Change in Control Purchase Notice has been delivered may not be surrendered for
exchange pursuant to this Article 4 prior to a valid withdrawal of such Change in Control Purchase
Notice in accordance with the provisions of Article 3.

     (f) Provisions of this Indenture that apply to the exchange of all of a Security also apply to
the exchange of a portion of a Security.

     (g) If a Change in Control occurs with respect to an event specified in any of clauses (1)
through (5) of the definition of a Change in Control and a Holder elects to exchange its Securities
in connection with such Change in Control as described in Section 4.01(a), then the Exchange Rate
per $1,000 principal amount of Securities otherwise in effect in respect of Securities that are
exchanged during the period beginning on the Change in Control Effective Date and ending at the
close of business on the 30th Business Day following such date shall be increased by a number of
additional Common Shares (the “Additional Change in Control Shares”), if any, determined by
reference to the table below, based on the Change in Control Effective Date and the price paid per
Common Share pursuant to such Change in Control (the “Share Price”); provided that if the Share
Price or the Change in Control Effective Date is not set forth on the table: (i) if the actual
Share Price on the Change in Control Effective Date is between two Share Prices on the table or the
actual Change in Control Effective Date is between two dates on the table, the amount of the
Exchange Rate adjustment will be determined by a straight-line interpolation between the adjustment
amounts set forth for the two Share Prices and the two dates on the table based on a 365-day year,
as applicable, (ii) if the Share Price on the Change in Control Effective Date exceeds $50.00 per
share, subject to adjustment as set forth herein, no adjustment to the applicable Exchange Rate
will be made, and (iii) if the Share Price on the Change in Control Effective Date is less than
$30.10 per share, subject to adjustment as set forth herein, no adjustment to the applicable
Exchange Rate will be made. If holders of the Common Shares receive only cash in the Change in
Control, the Share Price shall be the cash amount paid per share of the Common Shares in connection
with the Change in Control. Otherwise, the Share Price shall be equal to the average Closing Sale
Prices of the Common Shares for each of the 10 Trading Days immediately preceding, but not
including, the applicable Change in Control Effective Date.

     The following table shows the Share Price and number of Additional Change in Control Shares to
be received per $1,000 principal amount of Securities:

27

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Share Price
	Effective Date	 	 	$30.10	 	 	 	$32.50	 	 	 	$35.00	 	 	 	$37.50	 	 	 	$40.00	 	 	 	$42.50	 	 	 	$45.00	 	 	 	$47.50	 	 	 	$50.00	 
	December 5, 2006
	 	 	5.54	 	 	 	3.81	 	 	 	2.58	 	 	 	1.66	 	 	 	0.99	 	 	 	0.52	 	 	 	0.20	 	 	 	0.02	 	 	 	0.00	 
	December 15, 2007
	 	 	5.54	 	 	 	3.79	 	 	 	2.53	 	 	 	1.60	 	 	 	0.93	 	 	 	0.47	 	 	 	0.17	 	 	 	0.01	 	 	 	0.00	 
	December 15, 2008
	 	 	5.54	 	 	 	3.71	 	 	 	2.41	 	 	 	1.48	 	 	 	0.83	 	 	 	0.39	 	 	 	0.12	 	 	 	0.00	 	 	 	0.00	 
	December 15, 2009
	 	 	5.54	 	 	 	3.54	 	 	 	2.19	 	 	 	1.26	 	 	 	0.64	 	 	 	0.25	 	 	 	0.04	 	 	 	0.00	 	 	 	0.00	 
	December 15, 2010
	 	 	5.54	 	 	 	3.21	 	 	 	1.76	 	 	 	0.83	 	 	 	0.30	 	 	 	0.04	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	December 15, 2011
	 	 	5.54	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

     The Share Prices set forth in the first row of the table above (i.e., the column headers)
will be adjusted as of any date on which the Exchange Rate of the Securities is adjusted. The
adjusted Share Prices will equal the Share Prices applicable immediately prior to such adjustment
multiplied by a fraction, the numerator of which is the Exchange Rate immediately prior to the
adjustment and the denominator of which is the Exchange Rate as so adjusted. The number of
Additional Change in Control Shares will be adjusted in the same manner as the Exchange Rate as set
forth in Section 4.06 hereof.

     Notwithstanding the foregoing, in no event will the Exchange Rate exceed 33.2226 per $1,000
principal amount of Securities, subject to adjustment in the manner set forth in Section 4.06(a)
hereof.

     (h) Except as set forth in Section 4.02(c), by delivering the amount of cash and/or the number
of Common Shares issuable upon exchange to the Trustee, the Company will be deemed to have
satisfied its obligation to pay the principal amount of the Securities so exchanged and its
obligation to pay accrued and unpaid interest, and Additional Interest, if any, attributable to the
period from the most recent Interest Payment Date through the Exchange Date (which amount will be
deemed paid in full rather than cancelled, extinguished or forfeited).

     Section 4.02. Exchange Procedure.

     (a) To exchange a Security, a Holder must (1) complete and manually sign the exchange notice
on the back of the Security and deliver such notice to an Exchange Agent, (2) surrender the
Security to an Exchange Agent, (3) furnish appropriate endorsements and transfer documents if
required by an Exchange Agent and (4) pay all transfer or similar taxes, if required pursuant to
Section 4.04. The date on which the Holder satisfies all of those requirements is the “Exchange
Date”. Upon the exchange of a Security, the Company will pay the cash and deliver the Common
Shares, as applicable, as promptly as practicable after the later of the Exchange Date and the date
that all calculations necessary to make such payment and delivery have been made (such calculations
shall be made in accordance with Section 4.13(c) hereof), but in no event later than five Business
Days after the later of those dates. Anything herein to the contrary notwithstanding, in the case
of Global Securities, exchange notices may be delivered and such Securities may be surrendered for
exchange in accordance with the Applicable Procedures as in effect from time to time.

     (b) The person in whose name the Common Shares are issuable upon exchange shall be deemed to
be a Holder of record of such Common Shares on the later of (i) the Exchange

28

 

Date, (ii) the
expiration of the period in which the Company may elect to deliver cash in lieu of Common Shares or
(iii) if the Company elects to deliver cash in lieu of some, but not all, of such Common Shares,
the date on which the amount of cash issuable per Security has been determined; provided, however,
that no surrender of a Security on any Exchange Date when the stock transfer books of the Company
shall be closed shall be effective to constitute the person or persons entitled to receive the
Common Shares upon exchange as the record Holder or Holders of such Common Shares on such date, but
such surrender shall be effective to constitute the person or persons entitled to receive such
Common Shares as the record Holder or Holders thereof for all purposes at the close of business on
the next succeeding day on which such stock transfer books are open; provided further that such
exchange shall be at the Exchange Rate in effect on the Exchange Date as if the stock transfer
books of the Company had not been closed. Upon exchange of a Security, such person shall no longer
be a Holder of such Security. Except as set forth in this Indenture, no payment or adjustment will
be made for dividends or distributions declared or made on Common Shares issued upon exchange of a
Security prior to the issuance of such shares.

     (c) Holders of Securities surrendered for exchange (in whole or in part) during the period
from the close of business on any Regular Record Date to the opening of business on the next
succeeding Interest Payment Date will receive the semi-annual interest payable on such Securities
on the corresponding Interest Payment Date notwithstanding the exchange. However, such Holders
must deliver to the Exchange Agent an amount in cash equivalent to such interest payable in order
to exchange their Securities; provided, however, that no delivery of such amount in cash shall be
required to be made (1) if such Securities have been called for redemption on a Redemption Date
that is after such Regular Record Date and on or prior to such Interest Payment Date, (2) if a
Change in Control Redemption Date has been scheduled that is after such Regular Record Date and on
or prior to such Interest Payment Date, or (3) with respect to overdue interest (including
Additional Interest), if any overdue interest exists at the time of exchange with respect to such
Securities. Except as otherwise provided in this Section 4.02(c), no payment or adjustment will be
made for accrued interest on an exchanged Security.

     (d) Subject to Section 4.02(c), nothing in this Section shall affect the right of a Holder in
whose name any Security is registered at the close of business on a Regular Record Date to receive
the interest payable on such Security on the related Interest Payment Date in accordance with the
terms of this Indenture, the Securities and the Registration Rights Agreement. If a Holder
exchanges more than one Security at the same time, the amount of cash to be paid and the number of
Common Shares issuable upon the exchange, if any (and the amount of any cash in lieu of fractional
shares pursuant to Section 4.03), shall be based on the aggregate principal amount of all
Securities so exchanged.

     (e) In the case of any Security which is exchanged in part only, upon such exchange the
Company shall execute and the Trustee shall authenticate and deliver to the Holder thereof, without
service charge, a new Security or Securities of authorized denominations in an aggregate principal
amount equal to, and in exchange for, the unexchanged portion of the principal amount of such
Security. A Security may be exchanged in part, but only if the principal amount of such part is an
integral multiple of $1,000 and the principal amount of such Security to remain
outstanding after such exchange is equal to $1,000 or any integral multiple of $1,000 in
excess thereof.

29

 

     Section 4.03. Fractional Shares. The Company will not issue fractional
Common Shares upon exchange of Securities. If more than one Security shall be surrendered for
exchange at one time by the same Holder, the number of full Common Shares that shall be issuable
upon exchange shall be computed on the basis of the aggregate principal amount of the Securities
(or specified portions thereof to the extent permitted hereby) so surrendered. In lieu of any
fractional shares, the Company will pay an amount in cash based upon the Average Price.

     Section 4.04. Taxes on Exchange. If a Holder exchanges a Security, and if
the Company elects to deliver a combination of cash and Common Shares, the Company shall pay any
transfer, stamp or similar taxes or duties related to the issue or delivery of Common Shares upon
such exchange. The Company shall also pay any such tax with respect to cash received in lieu of
fractional shares. The Holder shall pay any such tax which is due because the Holder requests the
shares to be issued in a name other than the Holder’s name. The Exchange Agent may refuse to
deliver the certificate representing the Common Shares being issued in a name other than the
Holder’s name until the Exchange Agent receives a sum sufficient to pay any tax which will be due
because the shares are to be issued in a name other than the Holder’s name. Nothing herein shall
preclude any tax withholding required by law or regulation.

     Section 4.05. Guarantor to Provide Common Shares.

     (a) The Guarantor shall, prior to issuance of any Securities hereunder, and from time to time
as may be necessary, reserve, out of its authorized but unissued Common Shares, a sufficient number
of Common Shares to permit the exchange of all Outstanding Securities into Common Shares.

     (b) All Common Shares delivered upon exchange of the Securities shall be newly issued shares,
shall be duly authorized, validly issued, fully paid and nonassessable and shall be free from
preemptive or similar rights of any securityholder of the Guarantor and free of any lien or adverse
claim as the result of any action by the Guarantor.

     (c) The Company and the Guarantor will endeavor promptly to comply with all federal and state
securities laws regulating the offer and delivery of Common Shares upon exchange of Securities.

     Section 4.06. Adjustment of Exchange Rate.

     (a) The Company will adjust the Exchange Rate if the following events occur:

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

	 	 	 	 	 	 	 
	 

	 	ER1 = ER0 x
	 	OS1
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	OS0	 	 

     where,

30

 

	 	 	 	 	 	 	 
	 	 	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, as applicable;
	 	 	 	 	 	 	 
	 	 	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, as applicable;
	 	 	 	 	 	 	 
	 	 	OS0
	 	=
	 	the number of Common Shares outstanding immediately prior to the
Ex-Dividend Date for such dividend or distribution, or the effective date of such share
split or share combination, as applicable; and
	 	 	 	 	 	 	 
	 	 	OS1
	 	=
	 	the number of Common Shares outstanding immediately after the Ex-Dividend
Date for such dividend or distribution, as if such dividend or distribution occurred at
that time, or the effective date of such share split or share combination, as
applicable.

If any dividend or distribution described in this clause (1) 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 the dividend or distribution had not been declared.

     (2) If the Guarantor issues to all holders of Common Shares any rights, warrants,
options or other securities entitling them for a period of not more than 60 days after the
date of issuance thereof to subscribe for or purchase Common Shares, or issues to all
holders of Common Shares securities convertible into Common Shares for a period of not more
than 60 days after the date of issuance thereof, in either case at an exercise price per
share of Common Shares or an exchange price per Common Share less than the Closing Sale
Price of the Common Shares on the Business Day immediately preceding the time of
announcement of such issuance, the Exchange Rate will be adjusted based on the following
formula:

	 	 	 	 	 	 	 
	 	 	ER1 = ER0 x
	 	OS0 + X
	 	 
	 	 	 	 	 	 	 
	 	 	 	 	OS0 + Y	 	 

     where,

	 	 	 	 	 	 	 
	 	 	ER0
	 	=
	 	the Exchange Rate in effect immediately prior to the Ex-Dividend Date for
the distribution;
	 	 	 	 	 	 	 
	 	 	ER1
	 	=
	 	the Exchange Rate in effect immediately after the Ex-Dividend Date for the
distribution;
	 	 	 	 	 	 	 
	 	 	OS0
	 	=
	 	the number of Common Shares outstanding immediately prior to the
Ex-Dividend Date for the distribution;
	 	 	 	 	 	 	 
	 	 	X
	 	=
	 	the total number of Common Shares issuable pursuant to such rights, warrants,
options, other securities or convertible securities; and

31

 

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

For purposes of this paragraph (2), in determining whether any rights, warrants, options,
other securities or convertible securities entitle the holders to subscribe for or purchase,
or exercise a conversion right for, Common Shares at less than the applicable Closing Sale
Price of the Common Shares, and in determining the aggregate exercise or conversion price
payable for such Common Shares, there shall be taken into account any consideration received
by the Guarantor for such rights, warrants, options, other securities or convertible
securities 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 Trustees of the
Guarantor. If any right, warrant, option, other security or convertible security described
in this clause (2) 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, option, other security or
convertible security had not been so issued.

     (3) If the Guarantor distributes Common Shares, evidences of indebtedness or other
assets or property to all holders of Common Shares, excluding:

	 	•	 	dividends, distributions, rights, warrants, options, other securities or
convertible securities referred to in clause (1) or (2) above;
	 
	 	•	 	dividends or distributions paid exclusively in cash; and
	 
	 	•	 	spin-offs described below in this clause (3),

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

	 	 	 	 	 	 	 
	 

	 	 ER1 = ER0 x
	 	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 Shares 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

32

 

	 	 	 	 	 
	 

	 	 	 	the record date or the Ex-Dividend Date for such distribution; and
	 
	 	 	 	 
	FMV

	 	=
	 	the fair market value (as determined in good faith by the Guarantor’s Board
of Trustees) of the Common Shares, evidences of indebtedness, assets or property
distributed with respect to each outstanding Common Share on the earlier of the record
date or the Ex-Dividend Date for such distribution.

An adjustment to the Exchange Rate made pursuant to the immediately preceding paragraph
shall become effective on the day immediately after the date fixed for the determination of
holders of our Common Shares entitled to receive such distribution.

     If the Guarantor distributes to all holders of the Common Shares, capital stock of any
class or series, or similar equity interest, of or relating to a Subsidiary or any other of
the Guarantor’s business units (a “Spin-Off”), the Exchange Rate in effect immediately
before the close of business on the date fixed for determination of holders of the Common
Shares entitled to receive such distribution will be adjusted based on the following
formula:

	 	 	 	 	 
	ER1 = ER0 x

	 	FMV0 + MP0
	 	 
	 

	 	 	 	 
	 

	 	MP0	 	 

where,

	 	 	 	 	 
	ER0

	 	=
	 	the Exchange Rate in effect immediately prior to the 10th Trading Day
immediately following and including the effective date of the Spin-Off;
	 
	 	 	 	 
	ER1

	 	=
	 	the new Exchange Rate immediately after the 10th 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 the Common Shares applicable to one Common
Share over the first 10 consecutive Trading Days after the effective date of the
Spin-Off; and
	 
	 	 	 	 
	MP0

	 	=
	 	the average of the Closing Sale Price of the Common Shares over the first
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 11th Trading Day from and including the effective date of the
Spin-Off. If any dividend or distribution described in this paragraph (3) 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 the dividend or distribution had not been declared.

     (4) If the Guarantor makes any cash dividend or distribution in respect of any quarter
(without regard to when paid) to all holders of the Common Shares in an aggregate amount
that, together with other cash dividends or distributions made in

33

 

respect of such quarter,
exceeds $0.31 (the “Reference Dividend”) per Common Share, the Exchange Rate will be
adjusted based on the following formula:

	 	 	 	 	 
	ER1 = ER0 x

	 	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 Common Shares for the 10
consecutive Trading Days ending on the Trading Day 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 the
Common Shares in respect of such quarter that exceeds the Reference Dividend.

If any dividend or distribution described in this paragraph (4) is declared but no so paid
or made, the new Exchange Rate shall be readjusted to the Exchange Rate that would then be
in effect if the dividend or distribution had not been declared.

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

	 	 	 	 	 
	ER1 = ER0 x

	 	(AC + (SP1 x OS1))
	 	 
	 

	 	 	 	 
	 

	 	SP1 x OS0	 	 

where,

	 	 	 	 	 
	ER0

	 	=
	 	the Exchange Rate in effect immediately prior to the date the tender or
exchange offer expires;
	 
	 	 	 	 
	ER1

	 	=
	 	the new Exchange Rate immediately following the date the tender or exchange
offer expires;

34

 

	 	 	 	 	 
	AC

	 	=
	 	the aggregate value of all cash and any other consideration (as determined by
the Guarantor’s Board of Trustees) paid or payable for Common Shares purchased in the
tender or exchange offer;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of Common Shares outstanding immediately prior to the date the
tender or exchange offer expires;
	 
	 	 	 	 
	OS1

	 	=
	 	the number of Common Shares outstanding immediately after the tender or
exchange offer expires (after giving effect to the purchase or exchange of shares
pursuant to the tender or exchange offer); and
	 
	 	 	 	 
	SP1

	 	=
	 	the average of the Closing Sale Prices of the Common Shares for the 10
consecutive Trading Days commencing on the Trading Day next succeeding the date the
tender 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 (5) shall become
effective on the date immediately following the date the tender or exchange offer expires.
If the Guarantor or one of its Subsidiaries is obligated to purchase Common Shares pursuant
to any such tender 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 or exchange
offer had not been made.

     (b) The Reference Dividend shall be adjusted (i) whenever the Exchange Rate is adjusted
pursuant to clauses (1) through (3) and (5) of Section 4.06(a), by multiplying the dividend
threshold amount at the time of calculation by a fraction, the numerator of which is the Exchange
Rate immediately prior to adjustment and the denominator of which is the Exchange Rate following
such adjustment and (ii) as appropriate to take into account any change in the frequency of payment
of the Company’s dividend to holders of its Common Shares.

     (c) If the Guarantor has in effect a rights plan while any Securities remain Outstanding,
Holders of Securities will receive, upon the exchange of Securities in respect of which the Company
has elected to deliver Net Shares, in addition to such Net Shares, rights under the Guarantor’s
shareholder rights agreement unless, prior to the exchange, the rights have expired, terminated or
been redeemed or unless the rights have separated from the Common Shares. If the rights provided
for in the rights plan adopted by the Guarantor have separated from the Common Shares in accordance
with the provisions of the applicable shareholder rights agreement so that Holders of Securities
would not be entitled to receive any rights in respect of Common Shares that the Company elects to
deliver as Net Shares upon exchange of Securities,
the Exchange Rate will be adjusted at the time of separation as if the Guarantor had
distributed to all holders of Common Shares capital stock, evidences of indebtedness or other
assets or property pursuant to paragraph (a)(3) above, subject to readjustment upon the subsequent
expiration, termination or redemption of the rights. In lieu of any such adjustment, the Guarantor
may amend such applicable shareholder rights agreement to provide that upon an exchange of

35

 

Securities the Holders will receive, in addition to Common Shares that the Company elects to
deliver as Net Shares upon such exchange, the rights which would have attached to such Common
Shares if the rights had not become separated from the Common Shares under such applicable
shareholder rights agreement. To the extent that the Guarantor adopts any future shareholder
rights agreement, upon an exchange of Securities in respect of which the Company elects to deliver
Common Shares as Net Shares, a Holder of Securities shall receive, in addition to such Common
Shares, the rights under the future shareholder rights agreement whether or not the rights have
separated from Common Shares at the time of exchange and no adjustment will be made in accordance
with paragraph (a)(3) or otherwise.

     (d) In addition to the adjustments in clauses (a) through (c) of this Section 4.06, the
Company may in its sole discretion increase the Exchange Rate as the Board of Trustees deems
advisable to avoid or diminish any income tax to Holders of the Common Shares resulting from any
dividend or distribution of capital stock (or rights to acquire capital stock) or from any event
treated as such for income tax purposes. The Company may also, from time to time, to the extent
permitted by applicable law, increase the Exchange Rate by any amount for any period if the Board
of Trustees has determined that such increase would be in the Company’s best interests. If the
Board of Trustees makes that determination, it will be conclusive. The Company will give Holders
of Securities at least 15 days’ prior notice of such an increase in the Exchange Rate.

     (e) For purposes of this Section 4.06, “record date” shall mean, with respect to any dividend,
distribution or other transaction or event in which the Holders of Common Shares have the right to
receive any cash, securities or other property or into which the Common Shares (or other applicable
security) is exchanged or converted into any combination of cash, securities or other property, the
date fixed for determination of shareholders entitled to receive such cash, security or other
property (whether or not such date is fixed by the Board of Trustees or by statute, contract or
otherwise).

     (f) Notwithstanding the provisions set forth in Section 4.06(a), in no event shall the
Exchange Rate exceed 33.2226 per $1,000 principal amount of Securities as a result of an adjustment
pursuant to clause (4) or (5) of Section 4.06(a), subject to adjustment in the manner set forth in
clauses (1) through (3) of Section 4.06(a).

     Section 4.07. No Adjustment.

     (a) No adjustment in the Exchange Rate shall be required if Holders may participate in the
transactions set forth in Section 4.06 above (to the same extent as if the Securities had been
exchanged into Common Shares immediately prior to the time at which eligibility is determined for
such transactions) without exchanging the Securities held by such Holders.

     (b) No adjustment in the Exchange Rate shall be required unless such adjustment would require
an increase or decrease of at least 1% in the Exchange Rate as last adjusted; provided, however,
that any adjustments which would be required to be made but for this Section 4.07(b) shall be
carried forward and taken into account in any subsequent adjustment. All calculations under this
Article 4 shall be made to the nearest cent or to the nearest one-one

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thousandth of a share, as the
case may be, with one half cent and 0.001 of a share, respectively, being rounded upward.

     (c) The Exchange Rate will not be adjusted except as specifically set forth in this Article 4.
Without limiting the foregoing, the Exchange Rate will not be adjusted for:

	 	•	 	the issuance of any Common Shares pursuant to any present or future plan providing
for the reinvestment of dividends or interest payable on securities of the Guarantor
and the investment of additional optional amounts in Common Shares under any plan;
	 
	 	•	 	the issuance of Common Shares or options or rights to purchase those shares pursuant
to any present or future employee, trustee or consultant benefit plan, employee
agreement or arrangement or program of the Guarantor;
	 
	 	•	 	the issuance of any Common Shares pursuant to any option, warrant, right, or
exercisable, exchangeable or convertible security outstanding as of the date the
Securities were first issued;
	 
	 	•	 	a change in the par value of Common Shares;
	 
	 	•	 	accumulated and unpaid dividends or distributions;
	 
	 	•	 	the issuance of limited partnership units by the Company and the issuance of Common
Shares or the payment of cash upon the redemption thereof; and
	 
	 	•	 	as a result of a tender offer solely to holders of less than 100 Common Shares.

     Section 4.08. Notice of Adjustment. Whenever the Exchange Rate is required to be
adjusted pursuant to this Indenture, the Company shall promptly send to Holders a notice of the
adjustment and file with the Trustee an Officers’ Certificate briefly stating the facts requiring
the adjustment and the manner of computing it. Failure to mail such notice or any defect therein
shall not affect the validity of any such adjustment. Unless and until the Trustee shall receive
an Officers’ Certificate setting forth an adjustment of the Exchange Rate, the Trustee may assume
without inquiry that the Exchange Rate has not been adjusted and that the last Exchange Rate of
which it has knowledge remains in effect.

     Section 4.09. Notice of Certain Transactions. In the event that there is a
dissolution or liquidation of the Company, the Company shall send to Holders and file with the
Trustee a notice stating the proposed effective date. The
Company shall send such notice at least 10 days before such proposed effective date. Failure
to send such notice or any defect therein shall not affect the validity of any transaction referred
to in this Section 4.09.

     Section 4.10. Effect of Consolidation, Merger or Binding Share Exchange. If the Guarantor
is a party to a consolidation, merger or binding share exchange pursuant to which all Common Shares
are exchanged for cash, securities or other property, then at the effective time of the transaction
any exchange of Securities and the Exchange Value will be based on the kind and

37

 

amount of cash,
securities or other property that the Holder would have received if such Holder had exchanged its
Securities for Common Shares immediately prior to the effective time of the transaction. For
purposes of the foregoing, where a consolidation, merger or binding share conversion involves a
transaction that causes Common Shares to be converted into the right to receive more than a single
type of consideration based upon any form of shareholder election, such consideration will be
deemed to be the weighted average of the types and amounts of consideration received by the holders
of Common Shares who affirmatively made such an election. If the Guarantor is a party to a
consolidation, merger or binding share exchange pursuant to which shares all Common Shares would be
exchanged for cash, securities or other property that is not otherwise a Change in Control, a
Holder may surrender its Securities for exchange at any time from and including the date that is 15
Business Days prior to the anticipated effective time of the transaction up to and including five
Business Days after the actual date of such transaction. The Company will notify Holders as
promptly as practicable following the date it publicly announces such transaction (but in no event
less than 15 Business Days prior to the anticipated effective time of such transaction). If the
Guarantor is a party to a consolidation, merger or binding share exchange pursuant to which all the
Common Shares are exchanged for cash, securities or other property, then at the effective time of
the transaction any exchange of Securities and the Exchange Value will be based on the kind and
amount of cash, securities or other property that a Holder of Securities would have received if
such Holder had exchanged its Securities into Common Shares immediately prior to the effective time
of the transaction. For purposes of the foregoing, where a consolidation, merger or binding share
exchange involves a transaction that causes Common Shares to be converted into the right to receive
more than a single type of consideration based upon any form of shareholder election, such
consideration will be deemed to be the weighted average of the types and amounts of consideration
received by shareholders that affirmatively make such an election in such transaction. If a Change
in Control occurs as a result of a transaction described in clauses (1) through (4) of the
definition thereof, the Company will adjust the Exchange Rate for Securities tendered for exchange
in connection with the transaction, as described under Section 4.01(g).

     Section 4.11. Withholding. At the Maturity of the principal of the Securities, whether
at Stated Maturity or upon earlier redemption or repurchase of Securities or otherwise, and as
otherwise required by law, the Company 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.

     Section 4.12. Trustee’s Disclaimer. The Trustee shall have no duty to determine when an adjustment under this Article 4 should
be made, how it should be made or what such adjustment should be, but may accept as conclusive
evidence of that fact or the correctness of any such adjustment, and shall be protected in relying
upon, an Officers’ Certificate, including the Officers’ Certificate with respect thereto which the
Company is obligated to file with the Trustee pursuant to Section 4.08. The Trustee makes no
representation as to the validity or value of any securities or assets issued upon exchange of the
Securities.

     Section 4.13. Exchange Settlement.

     (a) Upon an exchange of Securities, the Company shall deliver, in respect of each $1,000
principal amount of Securities tendered for exchange:

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     (1) cash in an amount (the “Principal Return”) equal to the lesser of (1) the principal
amount of the Securities surrendered for exchange and (2) the Exchange Value; and

     (2) if the Exchange Value is greater than the Principal Return, an amount (the “Net
Amount”) in cash or Common Shares with an aggregate value equal to the difference between
the Exchange Value and the Principal Return.

     (b) The Company may elect to deliver any portion of the Net Amount in cash (the “Net Cash
Amount”) or in Common Shares, and any portion of the Net Amount the Company elects to deliver in
Common Shares (the “Net Shares”) will be the sum of the Daily Share Amounts for each Trading Day
during the Applicable Exchange Period. Prior to the close of business on the second Trading Day
following the date on which Securities are tendered for exchange, the Company shall inform Holders
of such Securities 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.

     (c) Notwithstanding any other provision of this Indenture, if the Guarantor’s Board of
Trustees determines in good faith that the conversion by a Holder of its Securities into Common
Shares would prevent the Guarantor from qualifying as a REIT, the Company shall elect not to
satisfy the Net Amount in whole or in part with Common Shares, but shall satisfy the Net Amount in
Cash.

     (d) The Company shall determine the Exchange Value, Principal Return, Net Amount, Net Cash
Amount, number of Net Shares, Daily Share Amount and Average Price promptly at the end of the
Applicable Exchange Period. For the purposes of Sections 4.13(a) and (b), in the event that any of
the Exchange Value, Principal Return, Net Amount, Net Cash Amount, number of Net Shares, Daily
Share Amounts or Average Price cannot be determined for all portions of the Applicable Exchange
Period, the Guarantor’s Board of Trustees shall in good faith determine the values necessary to
calculate the Exchange Value, Principal Return, Net Amount, Net Cash Amount, number of Net Shares,
Daily Share Amounts and Average Price, as applicable.

     (e) The Company will pay the Principal Return and cash in lieu of fractional shares, and
deliver Net Shares or pay the Net Cash Amount, as applicable, no later than the third Business Day
following the last Trading Day of the Applicable Exchange Period.

     Section 4.14. Reservation of Common Shares, Common Shares to Be Fully Paid; Compliance
with Governmental Requirements; Listing of Common Shares. The Guarantor shall provide, free
from preemptive rights, out of its authorized but unissued shares or shares held in treasury,
sufficient Common Shares to provide for the exchange of the Securities as required by this
Indenture from time to time as such Securities are presented for exchange.

     The Guarantor covenants that all Common Shares which may be issued upon exchange of Securities
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.

39

 

     The Guarantor covenants that, if any Common Shares to be provided for the purpose of exchange
of Securities 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 Shares 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 Shares shall be so listed on such
exchange or automated quotation system, all the Common Shares issuable upon exchange of the
Securities; provided that if the rules of such exchange or automated quotation system permit the
Guarantor to defer the listing of such Common Shares until the first exchange of the Securities in
accordance with the provisions of this Indenture, the Guarantor covenants to list such Common
Shares issuable upon exchange of the Securities in accordance with the requirements of such
exchange or automated quotation system at such time.

     Section 4.15. Calculation in Respect of Securities. Except as otherwise specifically
stated herein or in the Securities, all calculations to be made in respect of the Securities shall
be the obligation of the Company. All calculations made by the Company or its agent as
contemplated pursuant to the terms hereof and of the Securities shall be made in good faith and be
final and binding on the Securities and the Holders of the Securities absent manifest error. The
Company 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 Company without independent verification. The
Trustee shall forward calculations made by the Company to any Holder of Securities upon request
within 20 Business Days of the Effective Date of any adjustment.

ARTICLE 5

COVENANTS

     Section 5.01. Payment of Securities.

     (a) The Company shall promptly make all payments in respect of the Securities on the dates and
in the manner provided in the Securities and this Indenture. A payment of principal or interest or
Additional Interest, if any, shall be considered paid on the date it is due if the Paying Agent
(other than the Company) holds by 10:00 a.m., New York City time, on that date money, deposited by
or on behalf of the Company sufficient to make the payment. Subject to Section 4.02, accrued and
unpaid interest on any Security that is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name that Security is registered at
the close of business on the Regular Record Date for such interest at the office or agency of the
Company maintained for such purpose. Principal, interest, Change in Control Purchase Price and
Additional Interest, if any, in each case if payable, shall be considered paid on the applicable
date due if on such date the Trustee or the Paying Agent holds, in accordance with this Indenture,
money sufficient to pay all such amounts then due. The Company shall, to the fullest extent
permitted by law, pay interest in immediately available funds on overdue principal amount and
interest at the annual rate borne by the Securities compounded

40

 

semiannually, which interest shall
accrue from the date such overdue amount was originally due to the date payment of such amount,
including interest thereon, has been made or duly provided for. All such interest shall be payable
on demand.

     (b) Payment of the principal of and interest, if any, on the Securities shall be made at the
office or agency of the Company maintained for that purpose or at the Corporate Trust Office of the
Trustee in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the option of the
Company payment of interest may be made by check mailed to the address of the Person entitled
thereto as such address appears in the Register; provided further that a Holder with an aggregate
principal amount in excess of $2,000,000 will be paid by wire transfer in immediately available
funds at the election of such Holder if such Holder has provided wire transfer instructions to the
Trustee at least 10 Business Days prior to the payment date. Any wire transfer instructions
received by the Trustee will remain in effect until revoked by the Holder.

     Section 5.02. SEC and Other Reports.

     (a) Within 15 days of the required SEC filing date aplicable to the General Partner (including
all applicable extension periods), the General Partner shall provide the Trustees with copies of
all reports and other information and documents which the General Partner is required to file with
the SEC pursuant to Section 13 or 15(d) of the Exchange Act (or such sections of thet Exchange Act
or rules thereunder then applicable to the General Partner) that have not been filed with the SEC
pursuant to its Electronic Data Gathering, Analysis and Retrieval (EDGAR) system
within 15 days of the required SEC filing date applicable to the General Partner (including
all applicable extension periods).

     (b) 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
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

     Section 5.03. Compliance Certificates. The Company shall deliver to the Trustee,
within 120 days after the end of each fiscal year of the Company (beginning with the fiscal year
ending on December 31, 2006), an Officers’ Certificate as to the signer’s knowledge of the
Company’s compliance with all terms, conditions and covenants on its part contained in this
Indenture and stating whether or not the signer knows of any Default or Event of Default. If such
signer knows of such a Default or Event of Default, the Officers’ Certificate shall describe the
Default or Event of Default and the efforts to remedy the same. For the purposes of this Section
5.03, compliance shall be determined without regard to any grace period or requirement of notice
provided pursuant to the terms of this Indenture.

     Section 5.04. Further Instruments and Acts. Upon request of the Trustee, the Company
will execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purposes of this Indenture.

41

 

     Section 5.05. Maintenance of Existence as a Limited Partnership. Subject to Article
6, the Company will do or cause to be done all things necessary to preserve and keep in full force
and effect its existence as a limited partnership.

     Section 5.06. Rule 144A Information Requirement. If so required by Rule 144A, the
Company covenants and agrees that it shall, upon the request of any Holder or beneficial holder of
the Securities, make available to such Holder or beneficial holder of Securities or any Common
Shares issued upon exchange thereof and any prospective purchaser of Securities or such Common
Shares designated by such Holder or beneficial holder, the information required pursuant to Rule
144A(d)(4) under the Securities Act and it will take such further action as any Holder or
beneficial holder of such Securities or such Common Shares may reasonably request, all to the
extent required from time to time to enable such Holder or beneficial holder to sell its Securities
or Common Shares without registration under the Securities Act within the limitation of the
exemption provided by Rule 144A, as such Rule may be amended from time to time. Whether a person is
a beneficial holder shall be determined by the Company.

     Section 5.07. Stay, Extension and Usury Laws. The Company 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 Company from paying
all or any portion of the principal of or accrued but unpaid interest or Additional Interest, if
any, on the Securities as contemplated herein, wherever enacted, now or at any time hereafter in
force, or which may affect the covenants or the performance of this Indenture, and the Company (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 5.08. Payment of Additional Interest. If Additional Interest is payable by
the Company pursuant to the Registration Rights Agreement, the Company shall deliver to the Trustee
an Officers’ Certificate to that effect stating (i) the amount of such Additional Interest that is
payable, (ii) the reason why such Additional Interest is payable and (iii) the date on which such
Additional Interest is payable. Unless and until a Trust Officer of the Trustee receives such a
certificate, the Trustee may assume without inquiry that no such Additional Interest is payable.
If the Company has paid Additional Interest directly to the Persons entitled to such Additional
Interest, the Company shall deliver to the Trustee a certificate setting forth the particulars of
such payment.

     Section 5.09. Maintenance of Office or Agency. The Company will maintain an office or
agency of the Trustee, Registrar and Paying Agent where securities may be presented or surrendered
for payment, where Securities may be surrendered for registration of transfer, purchase or
redemption and where notices and demands to or upon the Company in respect of the Securities and
this Indenture may be served. The Corporate Trust Office shall initially be one such office or
agency for all of the aforesaid purposes. The Company shall give prompt written notice to the
Trustee of the location, and of any change in the location, of any such office or agency (other
than a change in the location of the office of the Trustee). If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the

42

 

Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made or served at the
address of the Trustee set forth in Section 12.02.

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

ARTICLE 6

CONSOLIDATION; MERGER; CONVEYANCE; TRANSFER OR LEASE

     Section 6.01. Company and Guarantor May Consolidate, Etc., Only on Certain Terms. The Company and the Guarantor shall not, in any transaction or series of related
transactions, consolidate with, or sell, lease, assign, transfer or otherwise convey all or
substantially all of its assets to, or merge with or into, any other Person, unless:

     (1) either the Company or the Guarantor, as the case may be, shall be the continuing
corporation, or the successor person, if other than the Company or the Guarantor, as the
case may be, formed by or resulting from any consolidation or merger or which shall have
received the transfer of all or substantially all of the assets of the Company or the
Guarantor, as the case may be, is an entity organized and existing under the laws of the
United States of America, any state thereof or the District of Columbia and, if the
successor person is the successor entity to the Company, the successor person shall
expressly assume, by supplemental indenture executed by the successor person and delivered
to the Trustee, the due and punctual payment of the principal of, and premium, if any, and
interest, if any, on and all Additional Interest, if any, payable in respect of the
Securities and the due and punctual performance and observance of all of the other covenants
and conditions contained in the Securities and this Indenture to be performed or observed by
the Company, or if the successor person is the successor entity to the Guarantor, the
successor person shall expressly assume, by supplemental indenture executed by the successor
corporation and delivered to the Trustee, the due and punctual performance and observance of
all of the covenants and conditions contained in the Securities and this Indenture to be
performed or observed by the Guarantor and assume the Guarantor’s obligations under the
Registration Rights Agreement;

     (2) immediately after giving effect to the transaction, and treating any Debt,
including Acquired Debt, which becomes the Company’s or the Guarantor’s obligation or an
obligation of any of the Guarantor’s Subsidiaries as a result thereof as having been
incurred by the Company, the Guarantor or the Subsidiary at the time of the transaction, no
Event of Default under this Indenture, and no event which, after notice or the lapse of time
or both, would become an Event of Default, shall have occurred and be continuing; and

     (3) the Company shall have, at or prior to the effective date of such consolidation,
merger or transfer, delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer complies

43

 

with this Article
6.01 and, if a supplemental indenture is required in connection with such transaction, such
supplemental indenture complies with this Article, and that all conditions precedent herein
provided for relating to such transaction have been complied with.

     In the event that the Company or the Guarantor, as the case may be, is not the continuing
entity, then, for purposes of above, the references to the Company, the Guarantor and its
subsidiaries shall be deemed to refer to the successor entity.

     Section 6.02. Successor Substituted. Upon any consolidation of the Company with, or
merger of the Company into, any other Person or any conveyance, transfer or lease substantially as
an entity, of the properties and
assets of the Company and its Subsidiaries, taken as a whole, in accordance with Section 6.01,
the successor Person formed by such consolidation or into which the Company is merged or to which
such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, except in the case of a
lease, and except for obligations the predecessor Person may have under a supplemental indenture,
the predecessor Person shall be relieved of all obligations and covenants under this Indenture and
the Securities.

ARTICLE 7

DEFAULT AND REMEDIES

     Section 7.01. Events of Default.

     (a) An “Event of Default” shall occur if:

     (1) the Company shall fail to pay when due the Principal or Change in Control Purchase
Price of any Security, when the same becomes due and payable whether at the Final Maturity
Date or, upon any earlier Redemption Date, Change in Control Purchase Date, acceleration or
otherwise; or

     (2) the Company shall fail to pay an installment of interest or Additional Interest, if
any, on any of the Securities, which failure continues for 30 days after the date when due;
or

     (3) the Company shall fail to deliver when due the Exchange Value upon the exercise of
a Holder’s exchange right in accordance with the terms of this Indenture, which failure
continues for 10 days; or

     (4) the Company shall fail to perform or observe (or obtain a waiver with respect to)
any other term, covenant or agreement contained in the Securities or this Indenture for a
period of 30 days after receipt by the Company of a Notice of Default specifying such
failure from the Trustee or from Holders of not less than 25% in aggregate principal amount
of the Securities; or

44

 

     (5) the Company and the Guarantor, or any of its subsidiaries shall fail to pay final
judgment entered by a court or courts of competent jurisdiction in an aggregate amount
exceeding $20,000,000, which judgments are not paid, discharged or stayed for a period of 30
days; or

     (6) there shall have occurred a default under any bond, note, debenture or other
evidence of indebtedness of the Company, the Guarantor or any of its Subsidiaries, including
an event of default with respect to any other series of debt securities, or under any
mortgage, indenture or other instrument under which there may be issued or by which there
may be secured or evidenced any indebtedness of the Company, the
Guarantor or any of its Subsidiaries which results in the acceleration of such
indebtedness in an aggregate principal amount exceeding $20,000,000 or which constitutes a
failure to pay at maturity or other scheduled payment date (after expiration of any
applicable grace period) such indebtedness in an aggregate principal amount exceeding
$20,000,000, but only if such indebtedness is not discharged or such acceleration is not
rescinded or annulled within 60 days after notice to the Company by the Trustee or to the
Company and the Trustee by the holders of at least 25% in aggregate principal amount of the
Securities; or

     (7) the Company, the Guarantor or any Significant Subsidiary of the Guarantor, pursuant
to or within the meaning of any Bankruptcy Law:

     (A) commences as a debtor a voluntary case or proceeding;

     (B) consents to the entry of an order for relief against it in an involuntary
case or proceeding or the commencement of any case against it;

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

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

     (E) files a petition in bankruptcy or answer or consent seeking reorganization
or relief; or

     (F) consents to the filing of such a petition or the appointment of or taking
possession by a Receiver; or

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

     (A) grants relief against the Company, the Guarantor or any Significant
Subsidiary of the Guarantor in an involuntary case or proceeding or adjudicates the
Company, the Guarantor or any Significant Subsidiary of the Guarantor insolvent or
bankrupt;

     (B) appoints a Receiver of the Company, the Guarantor or any Significant
Subsidiary of the Guarantor or for all or substantially all of the

45

 

property of the
Company, the Guarantor or any Significant Subsidiary of the Guarantor; or

     (C) orders the winding up or liquidation of the Company, the Guarantor or any
Significant Subsidiary of the Guarantor;

and in each case the order or decree remains unstayed and in effect for 60 consecutive days;
or

     (9) the Company shall fail to provide notice of the occurrence of a Change in Control
when required under Section 3.01(b) of this Indenture.

     The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto)
or any similar federal or state law for the relief of debtors. The term “Receiver” means any
receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.

     (b) The Company will deliver to the Trustee, within five Business Days after becoming aware of
the occurrence of a Default or Event of Default, written notice thereof.

     Section 7.02. Acceleration. If an Event of Default (other than an Event of Default
specified in clause (6) or (7) of Section 7.01(a)) occurs and is continuing, the Trustee may, by
notice to the Company, or the Holders of at least 25% in aggregate principal amount of the
Securities then outstanding may, by notice to the Company and the Trustee, declare the principal
amount and accrued and unpaid interest, if any, and accrued and unpaid Additional Interest, if any,
through the date of declaration on all the Securities to be immediately due and payable. Upon such
a declaration, such principal amount and such accrued and unpaid interest, if any, and such accrued
and unpaid Additional Interest, if any, shall be due and payable immediately. If an Event of
Default specified in Section 7.01(a)(7) or (8) occurs and is continuing, the principal amount and
accrued but unpaid interest, if any, and accrued and unpaid Additional Interest, if any, on all the
Securities shall become and be immediately due and payable without any declaration or other act on
the part of the Trustee or any Holders of Securities. At any time after such a declaration of
acceleration with respect to the Securities has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this Article provided,
the Holders of not less than a majority in principal amount of the Securities, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its consequences if:

     (1) the Company or the Guarantor has paid or deposited with the Trustee a sum
sufficient to pay in the currency in which the Securities are payable:

     (A) all overdue installments of interest on and any Additional Interest payable
in respect of all outstanding Securities,

     (B) the principal of (and premium, if any, on) any outstanding Securities which
have become due otherwise than by such declaration of acceleration and interest
thereon at the rate or rates borne by or provided for in the Securities,

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     (C) to the extent that payment of such interest is lawful, interest upon
overdue installments of interest and any Additional Interest at the rate or rates
borne by or provided for in the Securities, and

     (D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and

     (2) all Events of Default with respect to the Securities, other than the nonpayment of
the principal of (or premium, if any) or interest on the Securities which have become due
solely by such declaration of acceleration, have been cured or waived as provided in Section
7.04.

     Section 7.03. Other Remedies.

     (a) If an Event of Default occurs and is continuing, the Trustee may, but shall not be
obligated to, pursue any available remedy by proceeding at law or in equity to collect payment of
the principal amount and accrued and unpaid interest, if any, and accrued and unpaid Additional
Interest, if any, on the Securities or to enforce the performance of any provision of the
Securities or this Indenture.

     (b) The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative to the extent permitted by applicable
law.

     Section 7.04. Waiver of Defaults and Events of Default. Subject to Sections 7.07 and
10.02, the Holders of a majority in aggregate principal amount of the Securities then outstanding
by written notice to the Trustee may waive an existing Default or Event of Default and its
consequences, except an uncured Default or Event of Default in the payment of the principal of,
premium, if any, or any accrued but unpaid interest or Additional Interest, if any, on any
Security, an uncured failure by the Company to exchange any Securities into Common Shares and cash,
as applicable, or any Default or Event of Default in respect of any provision of this Indenture or
the Securities which, under Section 10.02, cannot be modified or amended without the consent of the
Holder of each Security affected. When a Default or Event of Default is waived, it is cured and
ceases to exist.

     Section 7.05. Control by Majority. The Holders of a majority in aggregate principal
amount of the Securities then outstanding may 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
it. However, the Trustee may refuse to follow any direction that conflicts with law or this
Indenture, that the Trustee determines may be unduly prejudicial to the rights of another Holder or
the Trustee, or that may involve the Trustee in personal liability unless the Trustee is offered
security or indemnity satisfactory to it; provided, however, that the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such direction.

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     Section 7.06. Limitations on Suits.

     (a) A Holder may not pursue any remedy with respect to this Indenture or the Securities
(except actions for payment of overdue principal, premium, if any, or interest or for the exchange
of the Securities pursuant to Article 4) unless:

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

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

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

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

     (5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in aggregate principal amount of the
Securities then outstanding.

     (b) No Holder of a Security shall have any right under any provision of this Indenture or the
Securities to affect, disturb, or prejudice the rights of another Holder of a Security or to obtain
a preference or priority over another Holder of a Security.

     Section 7.07. Rights of Holders to Receive Payment and to Exchange. Notwithstanding
any other provision of this Indenture, the right of any Holder of a Security to receive payment of
the Principal, interest, Change in Control Purchase Price, if any, or Additional Interest, if any,
in respect of the Securities held by such Holder, on or after the respective due dates expressed in
the Securities and this Indenture (whether upon repurchase or otherwise), and to exchange such
Security in accordance with Article 4, and to bring suit for the enforcement of any such payment on
or after such respective due dates or for the right to exchange in accordance with Article 4, is
absolute and unconditional and shall not be impaired or affected without the consent of the Holder.

     Section 7.08. Collection Suit by Trustee. If an Event of Default described in clause
(1) or (2) of Section 7.01(a) occurs and is continuing, the Trustee may recover judgment in its own
name and as trustee of an express trust against the Company or another obligor on the Securities
for the whole amount owing with respect to the Securities and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     Section 7.09. Trustee May File Proofs of Claim. The Trustee may 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 (including any claim for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company (or any other obligor on the Securities), its

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creditors or its
property and shall be entitled and empowered to collect and receive any money or other property
payable or deliverable on any such claims and to distribute the same, and any Receiver in any such
judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and,
in the event that the Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 8.07, and to the extent that such payment of the reasonable compensation, expenses,
disbursements and advances 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,
money, securities and other property which the Holders may be entitled to receive in such
proceedings, whether in liquidation or under any plan of reorganization or arrangement or
otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or
consent to, or, on behalf of any Holder, to authorize, accept or adopt any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

     Section 7.10. Priorities.

     (a) If the Trustee collects any money pursuant to this Article 7, it shall pay out the money
in the following order:

     (1) First, to the Trustee for amounts due under Section 8.07;

     (2) Second, to Holders for amounts due and unpaid on the Securities for the Principal,
interest, and Additional Interest, as applicable, ratably, without preference or priority of
any kind, according to such respective amounts due and payable on the Holders’ Securities;

     (3) Third, to such other Person or Persons, if any, to the extent entitled thereto; and

     (4) Fourth, the balance, if any, to the Company.

     (b) The Trustee may fix a record date and payment date for any payment to Holders pursuant to
this Section 7.10.

     Section 7.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 7.11 does not apply to a
suit made by the Trustee, a suit by a Holder pursuant to Section 7.07, or a suit by Holders of more
than 25% in aggregate principal amount of the Securities then outstanding. This Section 7.11 shall
be in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded from
this Indenture, as permitted by the TIA.

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ARTICLE 8

TRUSTEE

     Section 8.01. Obligations of Trustee.

     (a) If an Event of Default of which a Responsible Officer of the Trustee shall have actual
knowledge has occurred and is continuing, the Trustee shall exercise such of the rights and powers
vested in it by this Indenture and use the same degree of care and skill in its exercise as a
prudent person would exercise or use under the circumstances in the conduct of his or her own
affairs.

     (b) Except during the continuance of an Event of Default of which a Responsible Officer of the
Trustee shall have actual knowledge:

     (1) the Trustee need perform only those duties as are specifically set forth in this
Indenture and no others; and

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. The Trustee, however, shall examine any certificates and opinions which by any
provision hereof are specifically required to be delivered to the Trustee to determine
whether or not they conform to the requirements of this Indenture, but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated therein.

     This Section 8.01(b) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is
hereby expressly excluded from this Indenture, as permitted by the TIA.

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

     (1) this paragraph does not limit the effect of Section 8.01(b);

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

     (3) the Trustee shall not be liable in its individual capacity with respect to any
action it takes or omits to take in good faith in accordance with a direction received by it
pursuant to Section 7.05.

     This Section 8.01(c) shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the
TIA and such Sections are hereby expressly excluded from this Indenture as permitted by the TIA.

     (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder

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or in the exercise of any of its rights or powers unless the Trustee shall have received
adequate security or indemnity in its opinion against potential costs and liabilities incurred by
it relating thereto.

     (e) Every provision of this Indenture that in any way relates to the Trustee is subject to
subsections (a), (b), (c) and (d) of this Section 8.01.

     (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

     Section 8.02. Rights of Trustee.

     (a) Subject to Section 8.01:

     (1) The Trustee may rely conclusively and shall be protected in acting or refraining
from acting upon on any document believed by it to be genuine and to have been signed or
presented by the proper person. The Trustee need not investigate any fact or matter stated
in the document.

     (2) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, or both, which shall conform to Section 14.04(b). The
Trustee shall not be liable for any action it takes or omits to take in good faith in
reliance on such Officers’ Certificate or Opinion of Counsel.

     (3) The Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, attorneys or custodians, and the Trustee
shall not be responsible for any misconduct or negligence on the part of any such agent,
attorney or custodian appointed by the Trustee with due care.

     (4) The Trustee shall not be personally liable for any action it takes or omits to take
in good faith which it believes to be authorized or within its rights or powers.

     (5) The Trustee may consult with counsel of its selection, and the advice or opinion of
such counsel as to matters of law shall be full and complete authorization and protection in
respect of any such action taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel.

     (6) The Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture or to institute, conduct or defend any litigation hereunder
or in relation hereto at the request or direction of any of the Holders pursuant to this
Indenture, unless such Holders shall have offered to the Trustee security or indemnity
satisfactory to the Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction.

     (7) 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,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness

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or other paper or document, but the Trustee, in its discretion, 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 Company, personally or by agent or attorney
at the sole cost of the Company, and shall incur no liability or additional liability of any
kind by reason of such inquiry or investigation. The reasonable expense of every such
examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the
Company upon demand from the Company’s own funds.

     (8) The Trustee shall not be deemed to have notice or knowledge of any Default, Event
of Default, or Change in Control unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a Default is
received by the Trustee at the Corporate Trust Office, and such notice references the
Securities and this Indenture. In the absence of receipt of such notice or actual
knowledge, the Trustee may conclusively assume that there is no Default, Event of Default,
or Change in Control.

     (9) 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, including, without
limitation as Paying Agent, Registrar and Exchange Agent, and to each agent, custodian and
other Person employed to act hereunder.

     (10) The right of the Trustee to perform any discretionary act enumerated in this
Indenture shall not be construed as a duty, and the Trustee shall not be answerable for
other than its own gross negligence or willful misconduct in the performance of such act.

     Section 8.03. Individual Rights of Trustee. The Trustee in its individual or any
other capacity may become the owner or pledgee of Securities and may otherwise deal with the
Company or an Affiliate of the Company with the same rights it would have if it were not Trustee.
Any Agent may do the same with like rights. However, the Trustee is subject to Sections 8.10 and
8.11.

     Section 8.04. Trustee’s Disclaimer. The Trustee makes no representation as to the
validity or adequacy of this Indenture or the Securities and the Trustee assumes no responsibility
for their correctness. It shall not be accountable for the Company’s use of the proceeds from the
Securities and it shall not be responsible for any statement in the Securities other than its
certificate of authentication.

     Section 8.05. Notice of Default or Events of Default. If a Default or an Event of
Default occurs and is continuing and if it is known to the Trustee, the Trustee shall send to each
Holder of a Security notice of all uncured Defaults or Events of Default known to it within 90 days
after it occurs or, if later, within 15 days after it becomes known to the Trustee. However, the
Trustee may withhold the notice if and for so long as a committee of its Trust Officers in good
faith determines that withholding notice is in the interests of Holders of Securities, except in
the case of a Default or an Event of Default in payment of the principal of, or premium, if any, or
interest

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on any Security when due or in the payment of any redemption or purchase obligation, or the
Company’s failure to exchange Securities when obligated to exchange them. This Section 8.05 is in
lieu of section 315(b) of the TIA and such provision is expressly excluded from this Indenture as
permitted by the TIA.

     Section 8.06. Reports by Trustee to Holders.

     (a) If a report is required by TIA Section 313, within 60 days after each May 15, beginning
with the May 15 following the date of this Indenture, the Trustee shall mail to each Holder of
Securities a brief report dated as of such May 15 that complies with TIA Section 313(a). If
required by TIA Section 313, the Trustee also shall comply with TIA Sections 313(b)(2) and (c).

     (b) A copy of each report at the time of its mailing to Holders of Securities shall be mailed
to the Company and, to the extent required by the TIA, filed with the SEC, and each stock exchange,
if any, on which the Securities are listed. The Company shall notify the Trustee whenever the
Securities become listed on any stock exchange or listed or admitted to trading on any quotation
system and any changes in the stock exchanges or quotation systems on which the Securities are
listed or admitted to trading and of any delisting thereof.

     Section 8.07. Compensation and Indemnity.

     (a) The Company shall pay to the Trustee from time to time such compensation (as agreed to
from time to time by the Company and the Trustee in writing) for its services (which compensation
shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust). The Company shall reimburse the Trustee upon request for all reasonable
disbursements, expenses and advances incurred or made by it. Such expenses may include the
reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

     (b) The Company shall indemnify the Trustee or any predecessor Trustee (which for purposes of
this Section 8.07 shall include its officers, directors, employees and agents) for, and hold it
harmless against, any and all loss, liability or expense including taxes (other than franchise
taxes and taxes based upon, measured by or determined by the income of the Trustee), incurred by it
arising out of or in connection with the acceptance or administration of its duties under this
Indenture or any action or failure to act as authorized or within the discretion or rights or
powers conferred upon the Trustee hereunder including the reasonable costs and expenses of the
Trustee and its counsel in defending (including reasonable legal fees and expenses) itself against
any claim or liability in connection with the exercise or performance of any of its powers or
duties hereunder. The Trustee shall notify the Company promptly of any claim asserted against the
Trustee for which it may seek indemnity. The Company need not pay for any settlement effected
without its prior written consent. Anything in this Indenture to the contrary notwithstanding, in
no event shall the Trustee be liable for special, indirect or consequential loss or damage of any
kind whatsoever (including but not limited to lost profits), even if the Trustee has been advised
of the likelihood of such loss or damage and regardless of the form of action.

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     (c) The Company need not reimburse the Trustee for any expense or indemnify it against any
loss or liability incurred by it resulting from its gross negligence, willful misconduct or bad
faith.

     (d) The Trustee shall have a senior claim to which the Securities are hereby made subordinate
on all money or property held or collected by the Trustee. The obligations of the Company under
this Section 8.07 shall survive the satisfaction and discharge of this Indenture or the resignation
or removal of the Trustee.

     (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in clause (6) or (7) of Section 7.01(a) occurs, the expenses and the compensation for the services
are intended to constitute expenses of administration under any Bankruptcy Law. The provisions of
this Section shall survive the termination of this Indenture.

     Section 8.08. Replacement of Trustee.

     (a) The Trustee may resign by so notifying the Company. The Holders of a majority in
aggregate principal amount of the Securities then outstanding may remove the Trustee by so
notifying the Trustee and the Company and may, with the Company’s written consent, appoint a
successor Trustee. The Company may remove the Trustee at any time, so long as no Default or Event
of Default has occurred and is continuing, and appoint a Successor Trustee in accordance with this
Section 8.08.

     (b) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Company shall promptly appoint a successor Trustee. If the Company fails to
promptly appoint a successor Trustee, the Trustee shall have the right to choose a qualified
Trustee as successor, and the Company shall appoint such successor as Trustee. The resignation or
removal of a Trustee shall not be effective until a successor Trustee shall have delivered the
written acceptance of its appointment as described below.

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

     (d) If the Trustee fails to comply with Section 8.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (e) A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee and be released from its obligations
(exclusive of any liabilities that the retiring Trustee may have incurred while acting as Trustee)
hereunder, the resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.
A successor Trustee shall mail notice of its succession to each Holder.

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     (f) A retiring Trustee shall not be liable for the acts or omissions of any successor Trustee
after its succession.

     (g) Notwithstanding replacement of the Trustee pursuant to this Section 8.08, the Company’s
obligations under Section 8.07 shall continue for the benefit of the retiring Trustee.

     Section 8.09. Successor Trustee by Merger, Etc. If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all of its corporate trust business
(including the administration of this Indenture) to, another corporation, the resulting, surviving
or transferee corporation, without any further act, shall be the successor Trustee; provided such
transferee corporation shall qualify and be eligible under Section 8.10. Such successor Trustee
shall promptly mail notice of its succession to the Company and each Holder.

     Section 8.10. Eligibility; Disqualification. The Trustee shall always satisfy the
requirements of paragraphs (1), (2) and (5) of TIA Section 310(a). The Trustee (or its parent
holding company) shall have a combined capital and surplus of at least $50,000,000 as set forth in
its most recent published annual report of condition. If at any time the Trustee shall cease to
satisfy any such requirements, it shall resign immediately in the manner and with the effect
specified in this Article 8. The Trustee shall be subject to the provisions of TIA Section 310(b).
Nothing herein shall prevent the Trustee from filing with the SEC the application referred to in
the penultimate paragraph of TIA Section 310(b).

     Section 8.11. Preferential Collection of Claims Against Company. The Trustee shall
comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b).
A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated therein.

ARTICLE 9

SATISFACTION AND DISCHARGE OF INDENTURE

     Section 9.01. Satisfaction and Discharge of Indenture.

     (a) This Indenture shall cease to be of further force and effect (except as to any surviving
rights of conversion, registration of transfer or exchange of Securities herein expressly provided
for and except as further provided below), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when either:

     (A) all Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 2.07 and (ii) Securities for whose payment money has theretofore been deposited
in trust and thereafter repaid to the Company as provided in Section 9.03) have been
delivered to the Trustee for cancellation; or

     (B) all such Securities not theretofore delivered to the Trustee for cancellation have
become due and payable,

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provided that

     (1) the Company has deposited with the Trustee, a Paying Agent (other than the Company
or any of its Affiliates) or an Exchange Agent, if applicable, immediately available funds
in trust for the purpose of and in an amount sufficient to pay and discharge all
indebtedness and obligations related to such Securities not theretofore delivered to the
Trustee for cancellation, for principal and interest (including Additional Interest, if any)
to the date of such deposit;

     (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein relating to the satisfaction and
discharge of this Indenture have been complied with.

     (b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company with respect to the exchange privilege and the Exchange Rate of the Securities pursuant to
Article 4, the obligations of the Company to the Trustee under Section 8.07 and, if money shall
have been deposited with the Trustee pursuant to clause (2) of Section 9.01(a), the provisions of
Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.12, 5.01 and 12.05, Article 4, and this Article 9, shall
survive until the Securities have been paid in full.

     Section 9.02. Application of Trust Money. Subject to the provisions of Section 9.03,
the Trustee or a Paying Agent shall hold in trust, for the benefit of the Holders, all money
deposited with it pursuant to Section 9.01 and shall apply the deposited money in accordance with
this Indenture and the Securities to the payment of the principal of and interest on the
Securities.

     Section 9.03. Repayment to Company.

     (a) The Trustee and each Paying Agent shall promptly pay to the Company upon request any
excess money (1) deposited with them pursuant to Section 9.01 and (2) held by them at any time.

     (b) The Trustee and each Paying Agent shall, subject to applicable abandonment property laws,
pay to the Company 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 Company cause to be mailed 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 30 days
from the date of such mailing, any unclaimed balance of such money then remaining will be repaid to
the Company. After payment to the Company, Holders entitled to money must look to the Company for
payment as general creditors unless an applicable abandoned property law designates another person.

     Section 9.04. Reinstatement. If the Trustee or any Paying Agent is unable to apply
any money in accordance with Section 9.02 by reason of any legal proceeding or by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise

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prohibiting such application, then the Company’s obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section
9.01 until such time as the Trustee or such Paying Agent is permitted to apply all such money in
accordance with Section 9.02; provided, however, that if the Company has made any payment of the
principal of or interest on any Securities because of the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Securities to receive any such
payment from the money held by the Trustee or such Paying Agent.

ARTICLE 10

AMENDMENTS; SUPPLEMENTS AND WAIVERS

     Section 10.01. Without Consent of Holders. Without the consent of any Holders of the
Securities, the Company, the Guarantor and the Trustee may enter into an indenture to indentures
supplemental hereto for any of the following purposes:

     (a) to evidence the succession to the Company as obligor, or to the Guarantor as
guarantor, under this Indenture;

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

     (c) to add any additional Events of Default for the benefit of the Holders of all the
Securities;

     (d) to permit or facilitate the issuance of the Securities in uncertificated form,
provided that such action shall not adversely affect the interests of the Holders in any
material respect.

     (e) to secure the Securities;

     (f) to evidence and provide for the acceptance of appointment by a successor Trustee
and to add to or change any of the provisions of this Indenture as is necessary to provide
for or facilitate the administration of the trusts under this Indenture by more than one
Trustee;

     (g) to provide for rights of Holders of the Securities if any reclassification or
change of Common Shares or any consolidation, merger or sale of all or substantially all of
the property or assets of the Company or the Guarantor occurs;

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

     (i) to conform any non-conforming non-material language or defined terms, to the extent
necessary, to the text of this Indenture or the Securities to any provision of the
“Description of Notes” section of the Offering Memorandum dated December 5, 2006

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pursuant to which the Securities were offered and sold, to the extent that such
provision in the “Description of Notes” section reflects a verbatim recitation of a
provision of this Indenture or the Securities; or

     (j) to supplement any of the provisions of this Indenture to the extent necessary to
permit or facilitate defeasance and discharge of the Securities under this Indenture,
provided that such action shall not adversely affect the interests of the Holders in any
material respect.

     In addition, without the consent of any Holder of the Securities, the Guarantor may directly
assume the due and punctual payment of the Principal of, any premium and Interest on all the
Securities and the performance of every covenant of this Indenture on the part of the Company to be
performed or observed. Upon any assumption, the Guarantor shall succeed to, and be substituted
for and may exercise every right and power of, the Company under this Indenture with the same
effect as if the Guarantor had been the Company of the Securities and the Company shall be released
from all obligations and covenants with respect to the Securities. No assumption shall be
permitted unless the Guarantor has delivered to the Trustee (1) an Officers’ Certificate and an
Opinion of Counsel, stating, among other things, that the Guarantee and all other covenants of the
Guarantor in this Indenture remain in full force and effect and (2) an opinion of independent
counsel that the Holders of the Securities shall have no materially adverse U.S. federal tax
consequences as a result of the assumption, and that, if any Securities are then listed on the New
York Stock Exchange, that the Securities shall not be delisted as a result of such assumption.

     Section 10.02. With Consent of Holders.

     (a) The Company and the Trustee may amend or supplement this Indenture or the Securities with
the written consent of the Holders of at least a majority in aggregate principal amount of the
Securities then outstanding and affected by such amendment or supplement (voting together as a
single class). However, subject to Section 10.04, without the written consent of each Holder
affected, an amendment, supplement or waiver may not:

     (i) change the stated maturity of the principal of, or any installment of principal of,
or interest (including Additional Interest, if any) on, the Securities;

     (ii) reduce the principal amount of, the rate of interest (including Additional
Interest, if any) on, or change any of the Company’s obligations to pay Additional Interest
or change the timing or reduce the amount payable on the redemption of, the Securities;

     (iii) make any change that impairs or adversely affects the rights of a Holder to
exchange Securities in accordance herewith;

     (iv) change the place of payment, or the coin or currency, for payment of principal of,
or interest (including Additional Interest, if any) on, the Securities;

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     (v) impair the right to institute suit for the enforcement of any payment on or with
respect to Securities or the delivery of the Exchange Value as required by this Indenture
upon an exchange of Securities;

     (vi) reduce the percentage in principal amount of the outstanding Securities, the
consent of whose Holders is required for any such supplemental indenture, or the consent of
whose Holders is required for any waiver with respect to the outstanding Securities;

     (vii) modify any of the provisions of this Section 10.02 or Section 7.02, 7.05, 7.06(d)
or 8.08(a) of this Indenture, except to increase the required percentage to effect such
action or to provide that specified other provisions of this Indenture may not be modified
or waived without the consent of the Holders of each outstanding Security affected thereby;

     (viii) modify or affect the terms and conditions of the obligations of the Company or
any successor entity;

     (ix) change the provisions of Section 3.01 in a manner that adversely affects the
holders of Securities; or

     (x) change the dates and prices at which the Securities may be redeemed, or at which
the Holders may require the Securities to be repurchased, in a manner that adversely affects
the Holders of Securities.

     (b) Without limiting the provisions of Section 10.02(a) hereof, the Holders of a majority in
principal amount of the Securities then outstanding may, on behalf of all the Holders of all
Securities, (i) waive compliance by the Company with the restrictive provisions of this Indenture,
and (ii) waive any past Default or Event of Default under this Indenture and its consequences,
except an uncured failure to pay when due the principal amount, accrued and unpaid interest,
accrued and unpaid Additional Interest or Change in Control Purchase Price, or in the obligation to
deliver Common Shares or cash, if any and as applicable, or in respect of any provision which under
this Indenture cannot be modified or amended without the consent of the Holder of each outstanding
Security affected.

     (c) Notwithstanding the foregoing, the consent of the Holders of a majority of the principal
amount of the outstanding Securities is required to modify or amend this Indenture to change the
provisions set forth above Section 4.13 such that, from and after the date of such modification or
amendment, the Company shall have the ability to satisfy the Principal Return upon exchange of a
Securities in cash, Common Shares or any combination thereof; provided, however, that the Company
may, without seeking the consent of any Holders of Securities, (1) increase the voting requirement
set forth in this paragraph (c) or (2) eliminate the Company’s right to implement the modification
or amendment to this Indenture set forth in this paragraph (c).

     (d) After an amendment, supplement or waiver under this Section 10.02 becomes effective, the
Company shall promptly send to the Holders affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to send such

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notice, or any defect therein, shall not, however, in any way impair or affect the validity of
any such amendment, supplement or waiver.

     (e) For purposes of this Indenture, Securities will be deemed outstanding if they have been
authenticated and delivered under this Indenture unless, among other things, the Securities have
matured or been cancelled, exchanged, redeemed or repurchased.

     Section 10.03. Compliance with Trust Indenture Act. Every amendment to or supplement
of this Indenture or the Securities shall comply with the TIA as in effect at the date of such
amendment or supplement.

     Section 10.04. Revocation and Effect of Consents.

     (a) Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is
a continuing consent by the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder’s Security, even if notation of the
consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the
consent as to its Security or portion of a Security if the Trustee receives the notice of
revocation before the date the amendment, supplement or waiver becomes effective.

     (b) After an amendment, supplement or waiver becomes effective, it shall bind every Holder of
a Security.

     Section 10.05. Notation on or Exchange of Securities. If an amendment, supplement or
waiver changes the terms of a Security, the Trustee may require the Holder of the Security to
deliver it to the Trustee. The Trustee may place an appropriate notation on the Security about the
changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so
determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate
a new Security that reflects the changed terms.

     Section 10.06. Trustee to Sign Amendments, Etc. The Trustee shall sign any amendment
or supplemental indenture authorized pursuant to this Article 10 if the amendment or supplemental
indenture does not adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may, in its sole discretion, but need not sign it. In signing or refusing
to sign such amendment or supplemental indenture, the Trustee shall be entitled to receive and,
subject to Section 8.01, shall be fully protected in relying upon, an Opinion of Counsel stating
that such amendment or supplemental indenture is authorized or permitted by this Indenture. The
Company may not sign an amendment or supplement indenture until the Board of Trustees approves it.

     Section 10.07. Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture under this Article 10, this Indenture shall be modified in accordance
therewith, and such supplemental indenture shall form a part of this Indenture for all purposes;
and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

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ARTICLE 11

REDEMPTION

     Section 11.01. Redemption.

     (a) The Company shall not have the right to redeem any Securities, except to preserve the
Guarantor’s status as a REIT. If, at any time, the Company determines it is necessary to redeem
the Securities in order to preserve the Guarantor’s status as a REIT, the Company may, upon not
less than 30 nor more than 60 days’ prior written notice delivered to the Holders of the
Securities, redeem the Securities in whole or in part, for cash equal to 100% of the principal
amount of the Securities to be redeemed plus any accrued but unpaid interest (including Additional
Interest, if any) to but excluding the date of redemption set forth by the Company in such notice
(the “Redemption Note”). In such case, the Company shall provide the Trustee with an
Officers’ Certificate evidencing that the Board of Trustees has, in good faith, made the
determination that it is necessary to redeem the Securities in order to preserve the Guarantor’s
status as a REIT.

     (b) If less than all the Securities are to be redeemed, the Trustee shall select the
Securities to be redeemed (in principal amounts of $1,000 and integral multiples thereof) on a pro
rata basis or by such other method the Trustee considers fair and appropriate or is required by the
Depositary for the Securities. The Trustee shall make the selection at least 30 days but not more
than 60 days before the Redemption Date from Outstanding Securities not previously called for
redemption. Securities and portions of the principal amount thereof selected for redemption shall
be in integral multiples of $1,000. The Trustee shall notify the Company promptly of the
Securities or portions of the principal amount thereof to be redeemed. If the Trustee selects a
portion of a Security for partial redemption and a Holder exchanges a portion of the same Security
in accordance with the provisions of Article 4 hereof before termination of the exchange right with
respect to the portion of the Security so selected, the exchanged portion of such Security shall be
deemed to be from the portion selected for redemption. Securities that have been exchanged during
a selection of Securities to be redeemed shall be treated by the Trustee as Outstanding for the
purpose of such selection.

     (c) In the event of any redemption in part, the Company shall not be required to: (i) issue
or register the transfer or exchange of any Security during a period beginning at the opening of
business 15 days before any selection of Securities 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 Securities to be so redeemed, or (ii) register the transfer or exchange of
any Security so selected for redemption, in whole or in part, except the unredeemed portion of any
Security being redeemed in part.

     (d) A notice of redemption sent to the Holders of Securities to be redeemed in accordance with
the provisions of the two preceding paragraphs shall state:

     (1) the name and address of the Paying Agent and Exchange Agent;

     (2) the then current Exchange Rate;

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     (3) that Securities called for redemption may be exchanged at any time prior to the
close of business on the third Business Day immediately preceding the Redemption Date; and

     (4) that Holders who wish to exchange Securities must comply with the procedures
relating thereto specified in Section 4.02 hereof.

ARTICLE 12

GUARANTEE

     Section 12.01. Guarantee. (a) By its execution of this Indenture, the Guarantor
acknowledges and agrees that it receives substantial benefits from the Company 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 12,
the Guarantor hereby irrevocably and unconditionally guarantees on a senior basis to each Holder of
a Security authenticated and delivered by the Trustee and its successors and assigns that: (i) the
principal of (including the repurchase price upon repurchase pursuant to Article 3), premium, if
any, and interest and Additional Interest, if any, on the Securities 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 Change in Control 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 Securities and all other obligations of the Company to the
Holders or the Trustee hereunder or under the Securities (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 Securities 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 Change in Control or otherwise, subject, however, in the case
of clauses (i) and (ii) above, to the limitations set forth in Section 12.03 hereof (collectively,
the “Guarantee Obligations”).

     (b) Subject to the provisions of this Article 12, the Guarantor hereby agrees that its
Guarantee hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Securities or this Indenture, the absence of any action to enforce the same,
any waiver or consent by any Holder of the Securities with respect to any thereof, the entry of any
judgment against the Company, 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: (i) any right to require the Trustee, the Holders or the Company
(each, a “Benefited Party”) to proceed against the Company 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 party’s power before proceeding against the Guarantor; (ii) 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; (iii)
diligence, presentment, demand of payment, filing of claims with a court in the event of merger or
bankruptcy of the Company, the benefit of discussion, demand, protest and notice of

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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 Company, any Benefited Party, any
creditor of the Guarantor or the Company or on the part of any other Person whomsoever in
connection with any obligations the performance of which are hereby guaranteed; (iv) 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; (v) 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; (vi) 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 (vii) 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, including the principal, premium, if any,
and interest on the Securities and all other costs provided for under this Indenture or as provided
in Article 8.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to either the
Company or the Guarantor, or any trustee or similar official acting in relation to either the
Company or the Guarantor, any amount paid by the Company 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 Securities and the Trustee, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article 7 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 7 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 12.02. Execution and Delivery of Guarantee. (a) To evidence the
Guarantee set forth in Section 12.01 hereof, the Guarantor agrees that this Indenture shall be
executed on behalf of the Guarantor by an officer of the Guarantor.

     (b) The delivery of any Security 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 12.03. Limitation of Guarantor’s 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

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hereby irrevocably agree that the Guarantee Obligations of the Guarantor under this Article 12
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.

     (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 Company, 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 12.04. Successors and Assigns. The Guarantee is continuing 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 Company’s obligations under the Securities 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 Securities, and, in the
event of any transfer or assignment of rights by any Holder of the Securities 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. The Guarantee is of
payment and performance and not of collectibility.

     Section 12.05. 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 Company 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 14.02 hereof as if
references therein to the Company 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 Securities to or on the Guarantor may be
given or served as described in Section 14.02 hereof as if references therein to the Company 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 14.04 hereof as if all references therein to the Company were references to
the Guarantor.

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ARTICLE 13

MEETINGS OF HOLDERS OF NOTES

     Section 13.01. Purposes for Which Meetings May Be Called. A meeting of Holders of
Securities may be called at any time and from time to time pursuant to this Article 13 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 Securities.

     Section 13.02. Call, Notice and Place of Meetings.

     (a) The Trustee may at any time call a meeting of Holders of Securities for any purpose
specified in Section 13.01, 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 Securities, 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 16.02, not less than 21 nor more
than 180 days prior to the date fixed for the meeting.

     (b) In case at any time the Company, the Guarantor or the Holders of at least 10% in principal
amount of the Outstanding Securities shall have requested the Trustee to call a meeting of the
Holders of Securities for any purpose specified in Section 13.01, by written request setting forth
in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have
mailed 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 Company, the Guarantor, if applicable, or the Holders of Securities 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 13.03. Persons Entitled to Vote at Meetings. To be entitled to vote at any
meeting of Holders of Securities, a Person shall be (a) a Holder of one or more Outstanding
Securities, or (b) a Person appointed by an instrument in writing as proxy for a Holder or Holders
of one or more Outstanding Securities by such Holder or Holders. The only Persons who shall be
entitled to be present or to speak at any meeting of Holders of Securities 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
Company and its counsel.

     Section 13.04. Quorum; Action. (a) The Persons entitled to vote a majority in
principal amount of the Outstanding Securities shall constitute a quorum for a meeting of Holders
of Securities; provided, however, that if any action is to be taken at the meeting with respect to
a consent or waiver which may be given by the Holders of not less than a specified percentage in
principal amount of the Outstanding Securities, the Persons holding or representing the specified
percentage in principal amount of the Outstanding Securities will constitute a quorum. In the
absence of a quorum within 30 minutes after the time appointed for any such meeting, the meeting
shall, if convened at the request of Holders of Securities, be dissolved. In any other case the
meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the
meeting prior to the adjournment of such meeting. In the absence of a quorum at

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any such adjourned meeting, such adjourned meeting may be further adjourned for a period of
not less than 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 13.02, 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 Securities which shall constitute a quorum.

     (b) Except as limited by the proviso to Section 10.02, 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
Securities; provided, however, that, except as limited by the proviso to Section 10.02, 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
Securities 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 Securities.

     (c) Any resolution passed or decision taken at any meeting of Holders of Securities duly held
in accordance with this Section 13.04 shall be binding on all the Holders of Securities, whether or
not such Holders were present or represented at the meeting.

     Section 13.05. 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 Securities in regard
to proof of the holding of Securities 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.

     (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 Company or by Holders of Securities as
provided in Section 13.02(b), in which case the Company, the Guarantor or the Holders of Securities
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 Securities 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 Securities 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.

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     (d) Any meeting of Holders of Securities duly called pursuant to Section 13.02 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 Securities represented at the meeting; and the meeting may be
held as so adjourned without further notice.

     Section 13.06. Counting Votes and Recording Action of Meetings. The vote upon any
resolution submitted to any meeting of Holders of Securities shall be by written ballots on which
shall be subscribed the signatures of the Holders of Securities or of their representatives by
proxy and the principal amounts and serial numbers of the Outstanding Securities 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 Securities 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 13.02 and, if
applicable, Section 13.04. 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 Company
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 14

MISCELLANEOUS

     Section 14.01. Trust Indenture Act Controls. If any provision of this Indenture
limits, qualifies or conflicts with the duties imposed by any of Sections 310 to 317, inclusive, of
the TIA through operation of Section 318(c) thereof, such imposed duties shall control.

     Section 14.02. Notices. (a) Any demand, authorization notice, request, consent or
communication shall be given in writing and delivered in person or mailed by first-class mail,
postage prepaid, addressed as follows (confirmed by delivery in person or mail by first-class mail,
postage prepaid, or by guaranteed overnight courier) or by electronic transmission to the following
facsimile numbers:

if to the Company, to:

First Potomac Realty Investment Limited Partnership

7600 Wisconsin Avenue, Floor 11

Bethesda, MD 20814

Attention: Joel F. Bonder

Fax: (301) 986-5554

if to the Guarantor, to:

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First Potomac Realty Trust

7600 Wisconsin Avenue, Floor 11

Bethesda, MD 20814

Attention: Joel F. Bonder

Fax: (301) 986-5554

in each case, with a copy to:

Hunton & Williams LLP

Attention: Edward W. Elmore, Jr.

Riverfront Plaza, East Tower

951 East Byrd Street

Richmond, VA 23219

Fax: (804) 788-8218

if to the Trustee, to:

Wells Fargo Bank, National Association

Corporate Trust Services

MAC N9303-120

608 2nd Avenue South

Minneapolis, Minnesota 55479

Attention: First Potomac Account Manager

Fax: (612) 667-9825

     Such notices or communications shall be effective when received.

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

     (c) Any notice or communication sent to a Holder of a Security shall be sent by electronic
transmission or by first-class mail or delivered by an overnight delivery service to it at its
address shown on the register kept by the Primary Registrar.

     (d) Failure to send a notice or communication to a Holder of a Security or any defect in it
shall not affect its sufficiency with respect to other Holders of Securities. If a notice or
communication to a Holder of a Security is sent in the manner provided above, it is duly given,
whether or not the addressee receives it.

     (e) If the Company sends any notice to a Holder of a Security, it shall send a copy to the
Trustee and each Registrar, Paying Agent and Exchange Agent.

     Section 14.03. Communications by Holders with Other Holder. Holders of Securities may
communicate pursuant to TIA Section 312(b) with other Holders of Securities with respect to their
rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and any
other person shall have the protection of TIA Section 312(c).

     Section 14.04.
Certificate and Opinion as to Conditions Precedent.

68

 

     (a) Upon any request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee at the request of the Trustee:

     (1) an Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent (including any covenants, compliance with which constitutes a condition
precedent), if any, provided for in this Indenture relating to the proposed action have been
complied with; and

     (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent (including any covenants, compliance with which constitutes a condition
precedent) have been complied with.

     (b) Each Officers’ Certificate and Opinion of Counsel 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 statements or opinions contained in such certificate or opinion are based;

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

     (4) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with; 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 14.05. Record Date for Vote or Consent of Holders of Securities. The Company
(or, in the event deposits have been made pursuant to Section 9.01, the Trustee) may set a record
date for purposes of determining the identity of Holders entitled to vote or consent to any action
by vote or consent authorized or permitted under this Indenture, which record date shall not be
more than 30 days prior to the date of the commencement of solicitation of such action.
Notwithstanding the provisions of Section 10.04, if a record date is fixed, those persons who were
Holders of Securities at the close of business on such record date (or their duly designated
proxies), and only those persons, shall be entitled to take such action by vote or consent or to
revoke any vote or consent previously given, whether or not such persons continue to be Holders
after such record date.

     Section 14.06. Rules by Trustee, Paying Agent, Registrar and Exchange Agent. The
Trustee may make reasonable rules (not inconsistent with the terms of this Indenture) for action by
or at a meeting of Holders. Any Registrar, Paying Agent or Exchange Agent may make reasonable
rules for its functions.

69

 

     Section 14.07. Legal Holidays. A “Legal Holiday” is a Saturday, Sunday or a day on
which state or federally chartered banking institutions in The City of New York, New York or a
place of payment are authorized or obligated to close. If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period. If a Regular Record Date is a Legal Holiday, the record date
shall not be affected.

     Section 14.08. Governing Law. This Indenture and the Securities shall be governed by,
and construed in accordance with, the internal laws of the State of New York.

     Section 14.09. No Adverse Interpretation of Other Agreements. This Indenture may not
be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of
the Company. Any such indenture, loan or debt agreement may not be used to interpret this
Indenture.

     Section 14.10. No Recourse Against Others. All liability described in paragraph 15 of
the Securities of any director, officer, employee or shareholder, as such, of the Company hereby is
waived and released by each of the Holders.

     Section 14.11. No Security Interest Created. Nothing in this Indenture or in the
Securities, express or implied, shall be construed to constitute a security interest under the
Uniform Commercial Code or similar legislation, now in effect or hereafter enacted and made
effective, in any jurisdiction.

     Section 14.12. Successors. All agreements of the Company in this Indenture and the
Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind
its successor.

     Section 14.13. Multiple Counterparts. The parties may sign multiple counterparts of
this Indenture. Each signed counterpart shall be deemed an original, but all of them together
represent the same agreement.

     Section 14.14. Separability. If any provisions in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

     Section 14.15. Table of Contents, Headings, Etc. The table of contents,
cross-reference sheet 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.

[SIGNATURE PAGE FOLLOWS]

70

 

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year
first above written.

	 	 	 	 	 
	 	FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

 	 
	 	By:  	First Potomac Realty Trust,
 	 
	 	 	its General Partner 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	 /s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and CFO	 
	 

	 	 	 	 	 
	 	FIRST POTOMAC REALTY TRUST

 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and CFO	 
	 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/
Lynn M. Steiner	 
	 	 	Name:  	Lynn M. Steiner	 
	 	 	Title:  	Vice President	 
	 

Signature Page To Indenture

 

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.1

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND 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 THIS SECURITY OR ANY COMMON SHARES
ISSUABLE UPON CONVERSION OF THE SECURITY EXCEPT (A) TO FIRST POTOMAC REALTY INVESTMENT
LIMITED PARTNERSHIP (THE “COMPANY”) OR ANY OF ITS SUBSIDIARIES, (B) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO
THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), OR (D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF RESALE OR
TRANSFER; AND

 

			
	1	 	This paragraph should be included only if the Security is a Global Security.

A-1

 

     AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED
PURSUANT TO CLAUSE 1(B) ABOVE A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN
CONNECTION WITH ANY TRANSFER OF THIS SECURITY, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET
FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF THE TRANSFER AND SUBMIT THIS SECURITY
TO THE TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS APPLICABLE). IF THE PROPOSED TRANSFER IS
PURSUANT TO CLAUSE 1(C) ABOVE, THE HOLDER MUST, PRIOR TO THE TRANSFER, FURNISH TO THE
TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS APPLICABLE), ANY CERTIFICATIONS, LEGAL OPINIONS OR
OTHER INFORMATION AS THE COMPANY OR THE TRUSTEE MAY REASONABLY REQUIRE TO CONFIRM THAT THE
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

     NO PROSPECTUS PURSUANT TO ARTICLE 3 OF THE DIRECTIVE 2003/71/EC (THE “PROSPECTUS DIRECTIVE”)
HAS BEEN PUBLISHED IN RELATION TO THE SECURITIES EVIDENCED HEREBY. ACCORDINGLY, THE SECURITIES
EVIDENCED HEREBY MAY NOT BE OFFERED TO THE PUBLIC (WITHIN THE MEANING OF THE PROSPECTUS DIRECTIVE)
IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA, EXCEPT THAT AN OFFER OF SECURITIES MAY BE MADE
TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INVESTOR (WITHIN THE MEANING OF THE
PROSPECTUS DIRECTIVE).

     THIS SECURITY AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS. NEITHER THIS SECURITY, THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION UNDER THE SECURITIES
ACT.2

 

			
	2	 	This paragraph should be included only if the Security is a Restricted Security.

A-2

 

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

4.0% Exchangeable Senior Notes due 2011

			
	 	 	 
	No. 1
	 	CUSIP: 33612B AA 4

     FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP, a Delaware limited partnership (the
“Company”), promises to pay to Cede & Co. or registered assigns the principal amount of one hundred
and twenty-five million dollars ($125,000,000) on or before December 15, 2011 unless and to the
extent there has been a redemption, repurchase or exchange pursuant to the provisions of this
Security prior to such date.

     This Security shall bear interest as specified on the other side of this Security. This
Security is exchangeable as specified on the other side of this Security.

     Additional provisions of this Security are set forth on the other side of this Security.

Dated: December 11, 2006

SIGNATURE PAGE FOLLOWS

A-3

 

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

	 	 	 	 	 
	 	 	FIRST POTOMAC REALTY
	 	 	INVESTMENT LIMITED PARTNERSHIP
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	Dated: December 11, 2006
	 	 	 	 

Trustee’s Certificate of Authentication: This is one of the Securities referred to in the
within-mentioned Indenture.

Wells Fargo Bank, National Association

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

A-4

 

[FORM OF REVERSE SIDE OF SECURITY)

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

4.0% EXCHANGEABLE SENIOR NOTES DUE 2011

     This Security is one of a duly authorized issue of notes, debentures, bonds, or other
evidences of indebtedness of the Company (hereinafter called the “Securities”) of the series
hereinafter specified, all issued or to be issued under and pursuant to an Indenture, dated as of
December 11, 2006 between the Company and Wells Fargo Bank, National Association, as trustee, and
reference is hereby made to the Indenture, and all modifications and amendments and indentures
supplemental thereto relating to the Securities, for a description of the rights, limitations of
rights, obligations, duties, and immunities thereunder of the Trustee, the Company and the Holders
of the Securities and the terms upon which the Securities are authenticated and delivered. Terms
used herein without definition and which are defined in the Indenture have the meanings assigned to
them in the Indenture.

	1.	 	INTEREST

     The Securities shall bear interest at the rate of 4.0% per annum from December 11, 2006 or
from the most recent Interest Payment Date (as defined below) to which interest has been paid or
duly provided for, as the case may be, payable semi-annually in arrears on June 15 and December 15
of each year (each, an “Interest Payment Date”), commencing on June 15, 2007, until the principal
hereof is paid or duly made available for payment. Interest payable on each Interest Payment Date
shall equal the amount of interest accrued for the period commencing on and including the
immediately preceding Interest Payment Date in respect of which interest has been paid or duly
provided for (or commencing on and including December 11, 2006, if no interest has been paid or
duly provided for) and ending on and including the day preceding such Interest Payment Date.
Interest on the Securities will be computed on the basis of a 360-day year consisting of twelve
30-day months.

	2.	 	METHOD OF PAYMENT

     Except as provided in the Indenture, the Company shall pay interest on the Securities to the
Persons who are Holders of record of Securities at the close of business (whether or not a Business
Day) on the June 1 and December 1 immediately preceding the applicable Interest Payment Date (each,
a “Regular Record Date”). Holders must surrender Securities to a Paying Agent and comply with the
other terms of the Indenture to collect the Principal, Change in Control Purchase Price of the
Securities, plus, if applicable, accrued and unpaid interest (including Additional Interest, if
any) payable as herein provided at maturity, upon redemption at the Company’s option or repurchase
by the Company by the Company at the Holder’s option. The Company shall pay, in currency of the
United States that at the time of payment is legal tender for payment of public and private debts,
all amounts due in cash with respect to the Securities on the dates and in the manner provided in
this Security and the Indenture.

	3.	 	PAYING AGENT, EXCHANGE AGENT AND REGISTRAR

     Initially, the Trustee shall act as Paying Agent, Exchange Agent and Registrar of the
Securities. The Company hereby initially designates the Corporate Trust Office of the Trustee in

A-5

 

Minneapolis, Minnesota as the office to be maintained by it where this Security may be
presented for payment, registration of transfer or exchange, where notices or demands to or upon
the Company in respect of this Security or the Indenture may be served and where the Securities may
be surrendered for exchange in accordance with the provisions of paragraph 6 hereof and the
Indenture. The Company may appoint and change any Paying Agent, Exchange Agent, Security Registrar
or co-registrar or approve a change in the office through which any Paying Agent acts without
notice, other than notice to the Trustee.

	4.	 	REDEMPTION BY THE COMPANY

     The Company shall not have the right to redeem any Securities, except to preserve the status
of the Guarantor as a real estate investment trust. If the Company determines it is necessary to
redeem the Securities in order to preserve the status of the Guarantor as a real estate investment
trust, the Company may redeem the Securities then Outstanding, in whole or in part, at 100% of the
principal amount of the Securities to be redeemed plus unpaid interest (including Additional
Interest, if any) to but excluding the Redemption Date.

     Notice of redemption at the option of the Company shall be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Securities to be redeemed at the
Holder’s registered address. Securities in denominations larger than $1,000 principal amount may
be redeemed in part but only in integral multiples of $1,000 principal amount.

	5.	 	REPURCHASE AT OPTION OF HOLDER UPON A CHANGE IN CONTROL

     (a) If a Change in Control occurs at any time, a Holder shall have the right, at such Holder’s
option and subject to the terms and conditions of the Indenture, to require the Company to
repurchase all or any of such Holder’s Securities having a principal amount equal to $1,000 or an
integral multiple thereof on the date (the “Change in Control Purchase Date”) specified by the
Company in the Company Notice (which date shall be no earlier than 15 days and no later than 45
days after the date of such Company Notice) for cash equal to the 100% of the principal amount of
the Securities to be repurchased plus unpaid interest (including Additional Interest, if any)
accrued thereon to but excluding the Change in Control Purchase Date (the “Change in Control
Purchase Price”).

     (b) Holders have the right to withdraw any Change in Control Purchase Notice by delivery to
the Paying Agent of a written notice of withdrawal in accordance with the provisions of the
Indenture.

     (c) If the Paying Agent holds, in accordance with the terms of the Indenture, money sufficient
to pay the Change in Control Purchase Price of such Securities on the Change in Control Purchase
Date, then, on and after such date and set forth in the Indenture, such Securities shall cease to
be Outstanding and interest on such Securities shall cease to accrue, and all other rights of the
Holder shall terminate (other than the right to receive the Change in Control Purchase Price upon
delivery or transfer of the Securities).

A-6

 

	6.	 	EXCHANGE

     The Securities shall be exchangeable into the consideration specified in the Indenture at such
times, upon compliance with such conditions and upon the terms set forth in the Indenture.

     The initial Exchange Rate shall be 27.6855 Common Shares per $1,000 principal amount of
Securities, subject to adjustment in certain circumstances as specified in the Indenture.
Securities tendered for exchange by a Holder after the close of business on any Regular Record Date
for an interest payment and on or prior to the corresponding Interest Payment Date must be
accompanied by payment of an amount equal to the interest that such Holder is to receive on such
Securities on such Interest Payment Date; provided, however, that no such payment of interest shall
be required (1) if such Securities have been called for redemption on a Redemption Date that is
after such Regular Record Date and on or prior to such Interest Payment Date, (2) if a Change in
Control Redemption Date has been scheduled that is after such Regular Record Date and on or prior
to such Interest Payment Date, or (3) with respect to overdue interest, if any overdue interest
exists at the time of exchange with respect to such Securities.

     The Exchange Rate applicable to each Security in respect of which a notice of exchange is
received by the Exchange Agent from and including the Effective Date of a Change in Control
resulting from a transaction described in clause (1) or (2) of the definition of Change in Control
up to and including the 30th Business Day following the Effective Date of such Change in Control
shall be increased as specified in the Indenture.

     To exchange this Security if this Security is in book-entry form, the Holder must exchange by
book-entry transfer to the Exchange Agent through the facilities of DTC and the exchange notice
must comply with all applicable DTC procedures. To exchange this Security if this Security is held
in certificated form, the Holder must (a) complete and manually sign the irrevocable exchange
notice set forth below (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)
surrender such Security 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 this Security shall have been tendered for exchange.

     If the Holder has delivered a Change in Control Purchase Notice requiring the Company to
repurchase all or a portion of this Security pursuant to paragraph 5 hereof, then this Security (or
portion hereof subject to such Change in Control Purchase Notice) may be exchanged only if the
Change in Control Purchase Notice is withdrawn in accordance with the terms of the Indenture.

	7.	 	RANKING

     The Securities are senior unsecured obligations of the Company and shall rank pari passu in
right of payment with all other senior unsecured indebtedness of the Company from time to time
outstanding.

A-7

 

	8.	 	DEFAULTED INTEREST

     Except as otherwise specified herein or in the Indenture, any defaulted Interest on this
Security shall forthwith cease to be payable to the Holder hereof on the relevant Interest Payment
Date by virtue of having been paid to such Holder, and such defaulted Interest may be paid by the
Company as provided for in Section 5.01 of the Indenture.

	9.	 	DENOMINATIONS; TRANSFER; EXCHANGE

     This Security is issuable only in fully registered, book-entry form, in denominations of
$1,000 and integral multiples thereof. This Security may be exchanged for a like aggregate
principal amount of Securities of other authorized denominations at the office or agency of the
Company in [          ], [          ] or, if applicable, The City of New York or in the manner and
subject to the limitations provided herein and in the Indenture, but without the payment of any
charge except for any tax or other governmental charge imposed in connection therewith. Upon due
presentment for registration of transfer of this Security at the office or agency of the Company in
[          ], [          ] or, if applicable, The City of New York, one or more new Securities of
authorized denominations in an equal aggregate principal amount will be issued to the transferee in
exchange therefor, and bearing such restrictive legends as may be required by the Indenture, but
without payment of any charge except for any tax or other governmental charge imposed in connection
therewith. In the event of any redemption in part, the Company shall not be required to: (i)
issue or register the transfer or exchange of any Security during a period beginning at the opening
of business 15 days before any selection of Securities 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 Securities to be so redeemed, or (ii) register the transfer or exchange of
any Security so selected for redemption, in whole or in part, except the unredeemed portion of any
Security being redeemed in part.

	10.	 	PERSONS DEEMED OWNERS

     The Holder of this Security may be treated as the owner of this Security for all purposes, and
none of the Company or the Trustee nor any authorized agent of the Company or the Trustee shall be
affected by any notice to the contrary, except as required by law.

	11.	 	ADDITIONAL RIGHTS OF HOLDERS

     In addition to the rights provided to Holders of Securities under the Indenture, Holders shall
have all the rights set forth in the Registration Rights Agreement, dated as of December 11, 2006,
among the Company, the Guarantor and the Initial Purchasers named therein.

	12.	 	MODIFICATION AND AMENDMENT; WAIVER

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in the aggregate principal amount of all Outstanding Securities affected
thereby (voting together as a single class). The Indenture also provides that certain amendments
or modifications may not be made without the consent of each Holder to be

A-8

 

affected thereby. Furthermore, provisions in the Indenture permit the Holders of a majority
in the aggregate principal amount of the Outstanding Securities of any series, in certain
instances, to waive, on behalf of all of the Holders of Securities of such series, certain past
defaults under the Indenture and their consequences. Any such waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and other Securities issued upon the registration of transfer hereof or in exchange
hereof, or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

	13.	 	DEFAULTS AND REMEDIES

     The Indenture sets forth events that constitute an Event of Default under the Indenture. If
an Event of Default shall occur and be continuing, there may be declared due and payable the
principal amount (together with accrued and unpaid interest) on the Securities in the manner and
with the effect provided in the Indenture. If certain bankruptcy or insolvency events occur and
continue with respect to the Company or a Significant Subsidiary, the Securities shall
automatically become due and payable in accordance with the terms of the Indenture.

	14.	 	CONSOLIDATION, MERGER, AND SALE OF ASSETS

     In the event of a consolidation or merger of the Company or a sale, lease or conveyance of all
or substantially all of the assets of the Company as described in Article 6 of the Indenture the
successor entity to the Company shall succeed to and be substituted for the Company and may
exercise the rights and powers of the Company under the Indenture, and thereafter, except in the
case of a lease, the Company shall be relieved of all obligations and covenants under the Indenture
and the Securities.

	15.	 	TRUSTEE AND AGENT DEALINGS WITH THE COMPANY

     The Trustee, Paying Agent, Exchange Agent and Registrar under the Indenture, each in its
individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if it were not Trustee,
Paying Agent, Exchange Agent or Registrar.

	16.	 	CALCULATIONS IN RESPECT OF THE SECURITIES

     Except as otherwise specifically stated herein or in the Indenture, all calculations to be
made in respect of the Securities shall be the obligation of the Company. All calculations made by
the Company or its agent as contemplated pursuant to the terms hereof and of the Indenture shall be
final and binding on the Company and the Holders absent manifest error. The Company 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 Company without independent verification. The Trustee shall
forward calculations made by the Company to any Holder of Securities upon request within 20
Business Days of the effective date of any adjustment.

A-9

 

	17.	 	GOVERNING LAW

     The Indenture and this Security shall be governed by and construed in accordance with the
internal laws of the State of New York.

A-10

 

ASSIGNMENT FORM

     To assign this Security, fill in the form below:

     I or we assign and transfer this Security to

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint

 

agent to transfer this Security on the books of the Company. The agent may substitute another to
act for him or her.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Your Signature
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Sign exactly as your name appears on the
other side of this Security)
	 
	 	 	 	 	 	 
	* Signature guaranteed by:	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

 

			
	*	 	The signature must be guaranteed by an institution which is a member of one of the following
recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange
Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee.

A-11

 

EXCHANGE NOTICE

     To exchange this Security into Common Shares of the Company, check the box:

     To exchange only part of this Security, state the principal amount to be exchanged (must be
$1,000 or a integral multiple of $1,000): $ .

     If you want the stock certificate made out in another person’s name, fill in the form below:

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

(Print or type assignee’s name, address and zip code)

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Your Signature
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Sign exactly as your name appears on the
other side of this Security)
	 
	 	 	 	 	 	 
	* Signature guaranteed by:	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

 

			
	*	 	The signature must be guaranteed by an institution which is a member of one of the following
recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange
Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee.

A-12

 

SCHEDULE OF EXCHANGES OF SECURITIES(1)

     The following exchanges, purchase, redemptions, purchases or conversions of a part of this
Global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal Amount of this	 	 	 	 	 	 	 	 	 	 
	Global Security	 	 	 	 	 	 	 	 	 	 
	Following Such Decrease	 	 	 	 	 	Amount of Decrease in	 	 	Amount of Increase in	 
	Date of Exchange (or	 	Authorized Signatory of	 	 	Principal Amount of this	 	 	Principal Amount of this	 
	Increase)	 	Securities Custodian	 	 	Global Security	 	 	Global Security	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	1.	 	This schedule should be included only if the Security is a Global Security.

A-13

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF RESTRICTED SECURITIES

Re: 4.00% Exchangeable Senior Notes due 2011 (the “Securities”) of First Potomac Realty Investment
Limited Partnership.

This certificate relates to $          principal amount of Securities owned in (check applicable box)

o book-entry or o definitive form by                     (the “Transferor”).

     The Transferor has requested a Registrar or the Trustee to exchange or register the transfer
of such Securities.

     In connection with such request and in respect of each such Security, the Transferor does
hereby certify that the Transferor is familiar with transfer restrictions relating to the
Securities as provided in Section 2.12 of the Indenture dated as of December 11, 2006 between First
Potomac Realty Investment Limited Partnership, as Company, First Potomac Realty Trust, as guarantor
and Wells Fargo Bank, National Association, as trustee (the “Indenture”), and the transfer of such
Security is being made pursuant to an effective registration statement under the Securities Act of
1933, as amended (the “Securities Act”) (check applicable box), or the transfer or exchange, as the
case may be, of such Security does not require registration under the Securities Act because (check
applicable box):

	 	 	 
	          

	 	Such Security is being transferred pursuant to an effective registration statement
under the Securities Act.
	 
	 	 
	          

	 	Such Security is being acquired for the Transferor’s own account, without transfer.
	 
	 	 
	          

	 	Such Security is being transferred to the Company or a Subsidiary (as defined in the
Indenture) of the Company.
	 
	 	 
	          

	 	Such Security is being transferred to a person the Transferor reasonably believes is
a “qualified institutional buyer” (as defined in Rule 144A or any successor
provision thereto (“Rule 144A”) under the Securities Act) that is purchasing for its
own account or for the account of a “qualified institutional buyer”, in each case to
whom notice has been given that the transfer is being made in reliance on such Rule
144A, and in each case in reliance on Rule 144A.
	 
	 	 
	          

	 	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements under the Securities Act in accordance with Rule
144 (or any successor thereto) (“Rule 144”) under the Securities Act.
	 
	 	 
	          

	 	Such Security is being transferred to a non-U.S. Person in an offshore transaction
in compliance with Rule 904 of Regulation S under the Securities Act (or any
successor thereto).

A-14

 

	 	 	 
	          

	 	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements of the Securities Act (other than an exemption
referred to above) and as a result of which such Security will, upon such transfer,
cease to be a “restricted security” within the meaning of Rule 144 under the
Securities Act.

A-15

 

     The Transferor acknowledges and agrees that, if the transferee will hold any such Securities
in the form of beneficial interests in a Global Security which is a “restricted security” within
the meaning of Rule 144 under the Securities Act, then such transfer can only be made pursuant to
(i) Rule 144A under the Securities Act and such transferee must be a “qualified institutional
buyer” (as defined in Rule 144A) or (ii) Regulation S under the Securities Act.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Insert Name of Transferor)

A-16

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