Document:

License Agreement

 EXHIBIT 10.1 
  
 CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN FILED SEPARATELY WITH THE U.S.
SECURITIES AND EXCHANGE COMMISSION 
  
 Execution Copy

  
 License Agreement 
  

			
	between	  	Schering Aktiengesellschaft
	 	  	13342 Berlin, Germany
		
	 	  	(hereinafter referred to as “Schering”)
		
	and	  	Indevus Pharmaceuticals, Inc.
	 	  	33 Hayden Avenue, Lexington, MA 02421, USA
		
	 	  	(hereinafter referred to as “Licensee”)
		
	 	  	Schering and Licensee are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

  
 WHEREAS, Schering owns
and Controls the Schering Technology (hereinafter defined) and is engaged in the development and commercialization of Product (hereinafter defined) in the Field (hereinafter defined) in countries outside the Territory (hereinafter defined) and
already distributes Product in certain countries of the European Union; 
  
 WHEREAS, Schering has decided to refrain from developing and commercializing Product in the Field for the US, but has the right to grant rights and licenses concerning Product in the Field for the US; 
  
 WHEREAS, Licensee is interested in developing and commercializing Product in
the Field for the US and obtaining from Schering an exclusive license under the Schering Technology therefor, and Schering is willing to grant such rights and licenses to Licensee under the terms and conditions hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 

 Article 1 
 Definitions 
  
 The following terms, when
capitalized, shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined), when used in this Agreement: 
  
 1.1 “Act” shall mean the United States Food, Drug, and Cosmetic Act of 1938, as amended, and
the rules and regulations promulgated thereunder, or any successor act, as the same shall be in effect from time to time. 
  
 1.2 “Affiliate” shall mean, with respect to a Party, any person, corporation, firm, joint venture or other entity which,
directly or indirectly, through one or more intermediates, controls, is controlled by or is under common control with such Party. As used in this definition, “control” means possession of the power to direct or cause the direction of the
management and policies of an entity, whether through the ownership of the outstanding voting securities or by contract or otherwise. 
  
 1.3 “Agreement” shall mean this License Agreement. 
  
 1.4 “Audit Disagreement” shall have the meaning set forth in Section 8.3. 
  
 1.5 “Business Day” shall mean any day that is
not a Saturday, a Sunday, a day on which the New York Stock Exchange is closed, or other day on which banks are required or authorized by law to be closed in Berlin, Germany. 
  
 1.6 “CFR” shall mean the US Code of Federal Regulations. 
  
 1.7 “Change of Control” shall mean that (i) a
majority of the outstanding voting securities of a Party becomes owned by one or more individuals or entities that did not own a majority of the voting securities of such Party as of the Effective Date; or (ii) the possession of the power to direct
or cause the direction of the management and policies of a Party, whether through ownership of the outstanding voting securities or by contract or otherwise becomes vested in one or more individuals or entities that did not possess such power as of
the Effective Date. 
  
 1.8 “Clinical
Development” shall mean the conduct of studies of Product in humans to assess the dosing, safety and/or efficacy of Product. 
  
 1.9 “Clinical Supplies” shall mean supplies of Product and, if applicable, placebo, to be used for the conduct of
Development in the Territory. 
  
 1.10
“Commercialization” and “Commercialize” shall refer to all activities relating to the pre-marketing, marketing, distribution, import, sale and offer for sale of a Product, and the process of
Commercialization, respectively. 
  
 1.11
“Commercially Reasonable Efforts” shall mean the level of endeavor which a company in the prescription pharmaceutical industry comparable in size to Licensee or Schering, as applicable, and active in development and
commercialization of pharmaceutical compositions would ordinarily expend to accomplish an important objective. 
  

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 1.12 “Commercialization Plan” shall have the meaning set forth in Section
4.2. 
  
 1.13 “Confidential
Information” shall have the meaning set forth in Section 13.1. 
  
 1.14 “Control” or “Controlled” shall mean the ability to grant the rights and licenses as provided for herein without violating the terms of any agreement or other arrangement with any Third
Party. 
  
 1.15 “Development” or
“Develop” shall mean all activities, or the performance thereof, relating to Pre-clinical Development and Clinical Development as are customary for a company in the pharmaceutical industry as part of the process of obtaining
Regulatory Approval. 
  
 1.16 “Development
Plan” shall have the meaning set forth in Section 3.2. 
  
 1.17 “Domain Names” shall mean any internet domain name identical or similar with the Trademarks owned or controlled by Schering, subject to the provisions of Section 10.10 and used by Licensee in connection
with the marketing, sale, advertising and/or promotion of Product in the Field in the Territory. 
  
 1.18 “DMF” shall mean a Drug Master File as defined in 21 CFR §314.420, including all supplements and amendments
thereto. 
  
 1.19 “Drug Approval
Application” shall mean an application for Regulatory Approval required to be approved before marketing Product as a drug, including in the US an NDA and all supplements filed pursuant to the requirements of the Act (including all
documents, data and other information concerning a Product that are necessary for, or included in, FDA approval to market a Product). 
  
 1.20 “Effective Date” shall mean the date when this Agreement has been executed by authorized representatives of both
Parties. 
  
 1.21 “FDA” shall mean
the US Food and Drug Administration of the Department of Health and Human Services, or any successor agency with responsibility for regulating the development, manufacture and sale of human pharmaceutical products in the US. 
  
 1.22 “Field” shall mean any use of a
pharmaceutical composition to restore testosterone concentrations to physiological levels (i) to treat hypogonadism in men or (ii) to treat any other urological or endocrinological indication in men; for the avoidance of doubt, [*] shall not
be considered an “indication” within the meaning of this definition.  
  
 1.23 “Finished Product” shall mean a Product as specified in Schedule 1.23 or a Product developed under Section 6.8.1 packaged and labeled in a final form ready for commercial
sale and distribution in the Territory. 

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 1.24 “First Commercial Sale” shall mean the date Licensee or an Affiliate
or Sublicensee of Licensee first sells, or otherwise disposes of, commercially, a Product pursuant to a Regulatory Approval. 
  
 1.25 “GAAP” shall mean US generally accepted accounting principles. 
  
 1.26 “GCP” shall mean the Good Clinical
Practices guidelines published by the International Conference of Harmonization (ICH) and adopted by the FDA, and published standards of FDA (or other standards of FDA that are generally recognized within the US pharmaceutical industry) that relate
to the conduct of clinical studies in humans. 
  
 1.27
“GLP” shall mean the Good Laboratory Practices Regulations promulgated by FDA, as they may be amended from time to time. GLP also includes published standards of FDA (or other standards of FDA that are generally recognized
within the US pharmaceutical industry) that relate to the conduct of preclinical studies in animals. 
  
 1.28 “Improvements” shall mean any and all developments, improvements or enhancements relating to Product including,
without limitation, in the manufacture, formulation, preparation, presentation, means of delivery or administration, dosage, indication, use or methods of use or packaging. 
  
 1.29 “IND” shall mean an Investigational New Drug application filed with FDA pursuant to 21
CFR 312.1 et seq., as such regulations may be amended from time to time or an equivalent application filed with an equivalent Regulatory Authority outside the US, the filing of which was or is necessary to commence clinical testing of Product
in such regulatory jurisdiction. 
  
 1.30
“Joint Inventions” shall have the meaning set forth in Section 10.3. 
  
 1.31 “Joint Patents” shall mean a Patent claiming a Joint Invention, provided that one Party has not assigned its interest in the Patent to the other Party. 
  
 1.32 “Know-how” shall mean: any and all
techniques, data and information that are necessary or useful for the Development, Commercialization or use of the Substance, Product or any Improvements, including, but not limited to, inventions, discoveries, practices, methods, knowledge, skill,
trade secrets, experience, test data (including pharmacological, toxicological, biological, technical and non-technical preclinical and clinical test data); data, records and information derived from Development; regulatory submissions, adverse
reactions, analytical and quality control data, including data included in or necessary or useful for obtaining Regulatory Approval (other than contained in a DMF). Notwithstanding anything herein to the contrary, Know-how shall exclude Patents.

  
 1.33 “Licensee Know-how” shall
mean Know-how that becomes owned or Controlled by Licensee or its Affiliates during the term of this Agreement. 
  
 1.34 “Licensee Patents” shall mean Patents that become owned or Controlled by Licensee or its Affiliates during the term of
this Agreement. 
  

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 1.35 “Long-acting Testosterone Product” shall mean any pharmaceutical
composition formulated in [*], in each case other than Product introduced in the Territory by Licensee or any Affiliate or Sublicensee of Licensee. 
  
 1.36 “NDA” shall mean a New Drug Application as defined in the Act filed with the FDA, for marketing authorization of
Products in the US. 
  
 1.37 “Net
Sales” shall mean with respect to any Product, the gross amount invoiced by Licensee or its Affiliates or Sublicensees from sales of Product in the Territory, commencing upon the date of First Commercial Sale, less deductions for: (a)
transportation charges (freight, shipping and distribution), including insurance actually paid for distribution of Product; (b) sales, value-added and excise taxes, and other taxes, duties or surcharges paid or allowed by a selling party and any
other governmental charges imposed upon the sale or use of Product; (c) any other fees paid to distributors, consignees or agents in connection with the sale of Product; (d) allowances or credits to customers, not in excess of the selling price of
Product, on account of governmental requirements, rejection, outdating or return of Product; (e) rebates or premiums granted or allowed to customers in connection with the sale of Product; (f) trade, quantity, or cash discounts, chargebacks or
retroactive price reductions granted in connection with the sale of Product; and (g) write offs for bad debts. Net Sales shall be determined at the time such Net Sales are recognized as revenue in accordance with GAAP by Licensee and all accounting
terms used shall be interpreted in accordance with GAAP. 
  
 For the purpose of calculating Licensee’s Net Sales, the Parties recognize that (i) Licensee’s customers may include parties in the chain of commerce who enter into agreements with Licensee as to price even though legal title to
Product does not pass directly from Licensee to such customers, and even though payment for such Product is not made by such customers to Licensee, and (ii) in such cases, chargebacks paid by Licensee to or through a Third Party (such as a
wholesaler) can be deducted by Licensee from gross revenues in order to calculate Licensee’s Net Sales. Sales between Licensee and Affiliates or Sublicensees shall be excluded from the computation of Net Sales, except where such entities are
end users in which case Net Sales shall include Net Sales to such entities; provided however, if such entities are using such Products solely for research or clinical testing purposes, indigent or other public support programs, then such sales
between Licensee and Affiliates shall be excluded from the computation of Net Sales. 
  
 1.38 “New Product” shall have the meaning set forth in Section 2.7. 
  
 1.39 “New Product License” shall have the meaning set forth in Section 2.7. 
  
 1.40 “Patents” shall mean: (i) any US and
foreign patent applications and patents, including all certificates of invention and applications of certificates of invention; (ii) any national, regional and international patent applications filed from patent applications and patents included in
(i), including any divisional and continuation applications or supplementary protection certificates of the patent applications and patents included in (i) and any continuation-in-part applications to the extent dominated by patent applications and
patents included in (i); (iii) any and all patents that have 

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issued or in the future issue from patent applications included in (i) and (ii); and (iv) any and all extensions or restorations by existing or future
extension or restoration mechanisms, including substitutions, reexaminations, revalidations, reissues, renewals, and extensions thereof, in each case that are necessary or useful for the Development, manufacturing, Commercialization or use of
Substance, Product or any Improvement including but not limited to methods of their Development, manufacture, or use. 
  
 1.41 “Pre-clinical Development” shall mean all activities relating to the planning and execution of non-human studies
conducted in in vitro or in relevant in vivo animal models directed towards obtaining Regulatory Approval of Product in the Territory. This includes pre-clinical testing, pharmacokinetics, toxicology, documentary and medical writing
directly related to Pre-clinical Development activities, and related regulatory affairs. 
  
 1.42 “Product” shall mean the pharmaceutical composition containing the Substance in a long-acting depot injectable dosage form. 
  
 1.43 “Product Competition” shall be present
commencing as of the first calendar quarter (the “Triggering Quarter”) in which (a) [*] have a market share in the Territory of [*] percent ([*]%) or greater of [*] in such calendar quarter of (i) [*];
and (ii) such [*], and (b) the [*] in the Territory [*] percent ([*]%) or greater [*]; provided, however, that Product Competition shall not be deemed to be present for any calendar quarter after the Triggering
Quarter if in such calendar quarter [*] do not have a market share in the Territory of [*] percent ([*]%) or greater of the [*] of (i) [*] and (ii) [*].  
  
 1.44 “Purchase Price” shall mean (i) if
[*], twenty five percent (25%) of Net Sales; and (ii) as long as [*] percent ([*]%) of Net Sales. 
  
 1.45 “Regulatory Authority” shall mean any court, tribunal, arbitrator, agency, commission, official or other
instrumentality of any national, state, county, city or other political subdivision, that performs a function for such political subdivision similar to the function performed by the FDA for the US with regard to the approval, licensing, registration
or authorization to test, manufacture, promote, market, distribute, use, store, import, transport or sell a product in the defined territory or political subdivisions, or with respect to the approval of pricing or reimbursement for such product.

  
 1.46 “Regulatory Approval”
shall mean any approvals, product and/or establishment licenses, registrations or authorizations of any Regulatory Authority necessary for marketing Product in the Field in the Territory. 
  
 1.47 “Right of First Negotiation” shall have the meaning set forth in Section 2.7 of this
Agreement. 
  
 1.48 “Royalty Year”
shall mean a Year, provided that the first Royalty Year shall mean the period commencing with the date of First Commercial Sale in the Territory and extending to either (i) December 31 of the Year in which First Commercial Sale occurs, if December
31 of such Year is at least six months after First Commercial Sale; or (ii) December 31 of the Year immediately following the Year in which First Commercial Sale occurs, if December 31 of the year in which First Commercial Sale occurs is less than
six months after First Commercial Sale. 

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 1.49 “Schering Facilities” shall mean Schering’s facilities in
Berlin, Germany (Product manufacture), and in Orizaba, Mexico (Substance manufacture by Productos Químícos Naturales, S.A. de CV), and/or such other facility as Schering may use to perform its manufacturing and supply obligations of
Product hereunder and under the Supply Agreement. 
  
 1.50
“Schering Know-how” shall mean Know-how owned or Controlled by Schering or its Affiliates as of the Effective Date or which becomes owned or Controlled by Schering or its Affiliates during the term of this Agreement.

  
 1.51 “Schering Patents” shall
mean the Patents listed in Schedule 1.51 or any other Patents that are as of the Effective Date or become during the term of this Agreement owned or Controlled by Schering or any of its Affiliates. 
  
 1.52 “Schering Technology” shall mean Schering
Know-how and Schering Patents. 
  
 1.53
“SEC” shall mean the US Securities and Exchange Commission or any successor agency. 
  
 1.54 “Specifications” shall mean those specifications that are as of the Effective Date set forth in the approved European
Marketing Authorisation Application for the product marketed under the trademark “Nebido”, as such may be modified and included in the NDA. 
  
 1.55 “Steering Committee” shall have the meaning set forth in Section 5.1. 
  
 1.56 “Sublicensee” shall mean a Third Party to
whom Licensee has granted a license or sublicense to develop, import, use, sell, offer for sale or otherwise exploit Product in the Territory. 
  
 1.57 “Substance” shall mean testosterone undecanoate (TU). 
  
 1.58 “Summary CMC Section” shall mean the introductory portion of the chemistry,
manufacturing, and controls section of an NDA, as defined in 21 CFR Section 314.50 (1), relating to the Substance and the Finished Product. 
  
 1.59 “Supply Agreement” shall have the meaning as set forth in Section 6.6. 
  
 1.60 “Supply Price” shall have the meaning as
set forth in Section 6.3. 
  
 1.61
“Territory” shall mean the US. 
  
 1.62 “Third Party” shall mean any entity other than Schering or Licensee and their respective Affiliates. 
  
 1.63 “Trademark” shall mean the trademark “Nebido” in the layout as described in Schedule 1.63 and/or any
other trademark that is selected pursuant to Section 10.9.1. 
  

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 1.64 “US” shall mean the United States of America, including the District
of Columbia, and its territories, possessions, and commonwealths, including, without limitation, the Commonwealth of Puerto Rico. 
  
 1.65 “Valid Claim” shall mean a claim of any issued and unexpired Patent included within the Schering Patents that has not
been revoked, withdrawn or canceled nor held to be invalid or unenforceable by a court or tribunal of competent jurisdiction in an unappealed or unappealable decision and which has not been disclaimed, denied or admitted to be invalid or
unenforceable through reissue or disclaimer or otherwise. 
  
 1.66 “Year” shall mean a calendar year. 
  
 Article 2 
 Licenses 
  
 2.1 License to Licensee. Subject to the terms and conditions of this Agreement, Schering agrees to grant and hereby
grants to Licensee an exclusive (even as to Schering) license under the Schering Technology to Develop, use, sell, offer to sell and import Products in the Field into and throughout the Territory, either by itself or through its Affiliates.

  
 2.2 Sublicenses. Subject to the terms and conditions of
this Agreement, Licensee shall have the right to sublicense the rights granted in Section 2.1 above to an Affiliate or to any Sublicensee. Licensee shall advise Schering of any proposed sublicense with a Sublicensee and such sublicense shall be
subject to the prior written consent of Schering which may not be unreasonably withheld or delayed. Each such sublicense shall be consistent with all the terms and conditions of this Agreement. Licensee shall remain responsible to Schering for any
non-performance by the Sublicensee of Licensee’s obligations under this Agreement that are assumed by the Sublicensee. 
  
 2.3 Schering Patents. If at any time during the course of this Agreement any additional Patents are acquired by or come under the Control of
Schering that include any claims that are related to the Substance and/or Product in the Territory, such Patents shall be added to the list attached hereto as Schedule 1.51 provided, however, that the failure to amend or add such Patents to
Schedule 1.51 shall not affect the definition of Schering Patents. 
  
 2.4 Schering Know-how. As soon as reasonably possible after the Effective Date, Schering shall disclose and provide to Licensee in English (if available) and in writing, in electronic format where available,
and hard copies, all Schering Know-how which Schering has available and which is required by Licensee for the Development and Commercialization of Product in the Field in the Territory. It is understood that Schering Know-how which is contained in a
DMF will not be disclosed to Licensee, unless explicitly required by the FDA and subject to Sections 3.4 and 3.5. If at any time during the term of this Agreement any additional Schering Know-how is acquired by Schering, Schering shall promptly upon
such acquisition disclose and provide to Licensee in English (if available) and in writing, in electronic format where available, and hard copies, all such additional Schering Know-how. 
  

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 2.5 Reservation of Rights. Except as specifically provided in this Agreement and subject to the
terms and conditions set forth herein, this Agreement shall not affect the right of Schering to use the Substance and Product (i) outside the Territory and (ii) for the development and commercialization of Product in combination with other
substances solely for [*] in the Territory. Notwithstanding the foregoing, Schering will use Commercially Reasonable Efforts to avoid and to ensure that its Affiliates and/or sublicensees avoid commercialization of a product in the Territory
which is substitutable to or for Product.  
  
 2.6 No
Further Rights. Only the rights and licenses granted pursuant to the express terms of this Agreement shall be of any legal force or effect. No other license rights shall be granted or created by implication, estoppel or otherwise. 
  
 2.7 Right of First Negotiation. 
  
 (a) Schering hereby grants Licensee the right (the “Right of First
Negotiation”) to obtain from Schering an exclusive (even as to Schering) right and license under (i) the Schering Technology and/or (ii) Schering’s rights in any Joint Invention, in each case covering or relating to an Improvement that has
application outside the Field but excluding the area of [*] (a “New Product”), to develop, commercialize, use, sell, offer to sell and import such New Product into and throughout the Territory (the “New Product License”),
if Schering does not intend either itself or through its Affiliates to commercialize such New Product in the Territory, subject to the terms and conditions of this Section 2.7. 
  
 (b) With respect to any New Product, Schering shall give written notice to Licensee as soon as practicable following the
decision by Schering to outlicense a New Product, providing Licensee with a summary of the Schering Technology or invention relating to the New Product. Licensee shall have the right to exercise its Right of First Negotiation by delivery to Schering
of a written notice of exercise within [*] after the date on which Licensee receives such notice from Schering. During such [*] period Schering shall provide the relevant data regarding such New Product to enable Licensee to conduct
proper due diligence. If Licensee does not exercise the Right of First Negotiation in respect of a New Product in that time period, the Right of First Negotiation for such New Product shall be deemed to have lapsed with respect to such New Product.
In the event Licensee exercises the Right of First Negotiation, Licensee and Schering shall engage in exclusive, good faith negotiations to enter into an agreement within [*]after such exercise (or such other period as the Parties may agree
to) providing for the New Product License and containing such mutually acceptable and commercially reasonable terms and conditions consistent with similar types of license agreements including, if applicable, supply provisions with respect to the
New Product. If the Parties have not entered into a New Product License prior to the expiration of such time period, provided the Parties have not agreed on an extension, the Right of First Negotiation for such New Product shall be deemed to have
lapsed. 

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 Article 3 
 Development and Regulatory Matters 
  
 3.1 Development. From the Effective Date and subject to the terms and conditions of this Agreement, Licensee shall solely be responsible for and bear all costs of all Development of Product in the Field in the
Territory and, assuming successful completion of Development, use Commercially Reasonable Efforts to obtain Regulatory Approval for Product. 
  
 3.2 Development Plan and Study Protocols. The Development to be conducted by Licensee pursuant to Section 3.1 above including, but not limited to
the timelines for such Development shall be substantially as set forth in a proposed development plan (the “Development Plan”). The Development Plan will take account of Schering’s interest in Product outside the Territory and will be
reviewed by the Steering Committee. Within sixty (60) days after the Effective Date Licensee will present a draft of the initial Development Plan to the Steering Committee for review. This draft Development Plan and any amendments to the Development
Plan shall be reviewed by the Steering Committee and any reasonable proposals made by Schering will be taken into account by Licensee. Each Party will submit to the other Party in advance all draft study protocols for the performance of planned
studies in the course of Development of Product by such Party for review. Each Party will inform the other Party about the progress of its Development of Product. Notwithstanding the foregoing Licensee shall have the right to make all decisions with
respect to all matters relating to Development of Product in the Field in the Territory and Schering shall have the right to make all decisions with respect to all matters relating to Development of Product outside the Territory and outside the
Field but inside the Territory, taking into account the considerations set forth herein. 
  
 3.3 Clinical Development Applications and Drug Approval Application. Licensee shall be responsible for the preparation, filing and prosecution of INDs in the name of Licensee to conduct Clinical Development in
the Field in the Territory. Licensee shall further be responsible for the preparation, filing and prosecution of the Drug Approval Application in the name of Licensee and for seeking Regulatory Approval for Product in the Field in the Territory,
including preparing all reports necessary as part of the Drug Approval Application. 
  
 Licensee shall consult with Schering about the filing strategy and will provide to Schering the table of contents to the NDA Licensee intends to file. Licensee will provide to Schering copies of the draft NDA (for
practical purposes in portions at times when they become available) as well as of other intended filings to the FDA in advance in order to provide Schering the opportunity to review and comment. Licensee will reasonably take into account any comment
from Schering. In case of disputes in this regard, the matter shall be referred to the Steering Committee. 
  
 Licensee will promptly provide to Schering a copy of any Drug Approval Application filed with the FDA. In connection with the Drug Approval Application
being prosecuted by Licensee under this Section 3.3, Licensee agrees to provide Schering with a copy (which may be wholly or partly in electronic form) of all communication from the FDA. 
  

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 3.4 Summary CMC Section. Notwithstanding the provisions of Section 3.3, with respect to the
Summary CMC Section, to the extent required, Schering shall either (i) be responsible for the preparation and delivery to Licensee of the Summary CMC Section in electronic and hard copy form and the latter in format suitable for inclusion in the NDA
in accordance with applicable law and regulatory standards and as the Parties may mutually agree or (ii) provide Licensee with all data and information required to complete the Summary CMC Section in accordance with applicable law and regulatory
standards. Licensee shall provide Schering as soon as practicable with a copy of any comments received by Licensee from the FDA relating to the Summary CMC Section and Schering shall provide or, at Licensee’s request, cooperate with Licensee to
provide, a response to such comments as soon as practicable. In the event that there is a deficiency in the Summary CMC Section attributable to Schering (including as a result of any deficiency in or changes required to be made to the DMF), then
Schering shall be responsible for correcting such deficiency, at Schering’s expense, and shall use Commercially Reasonable Efforts to do so as soon as practicable. 
  
 3.5 Access to and Rights to Reference Regulatory Filings. Schering agrees to file with the FDA DMFs relating to
Substance and Product supplying the necessary information in support of the Chemistry, Manufacturing and Control (“CMC”) sections of Licensee’s NDA. Schering hereby grants Licensee the rights to reference in Licensee’s NDA and
use in association with exercising Licensee’s rights and performing its obligations under this Agreement the DMFs relating to Substance and Product and will provide Licensee with a letter of authorization authorizing Licensee to reference such
DMFs. Schering will permit Licensee to access all Schering Know-how, regulatory filings and regulatory communications associated with any submissions for Regulatory Approvals for Product, provided, however, that this does not apply to any Schering
Know-how relating to CMC development and the manufacture of Substance and Product which will not be disclosed to Licensee provided that such Schering Know-how shall at all times be included in the DMF. 
  
 3.6 Compliance with Standards. In respect of any Development
activities to be performed by Licensee unless expressly agreed with Schering otherwise, Licensee agrees to perform its obligations under this Agreement in compliance in all material respects with applicable laws, regulations and guidances, including
without limitation GCP, GLP and other commitments made in INDs and NDAs and other regulatory filings. 
  
 3.7 Adverse Drug Experiences and Safety Reporting. Each Party shall maintain a safety database for Product and any clinical studies conducted with
Product by such Party. Schering and Licensee agree to promptly exchange all relevant information that relates to the safety of Product and especially all adverse reaction reports. With respect to adverse drug experiences reports relating to Product
(from Clinical Development and Commercialization), the Parties will agree, within six (6) months after the Effective Date but in any event not later than prior to enrollment of the first patient in a Product related clinical study that is conducted,
sponsored or co-sponsored by Licensee, on operating procedures for the exchange of safety information between the Parties sufficient to enable each Party to comply with its legal obligations to report to the appropriate Regulatory Authorities in the
countries in which Product is being developed or commercialized by such Party, in accordance with the appropriate laws and regulations of the relevant countries and authorities. These operating procedures will (i) include measures necessary for each
Party to comply with such laws 
  

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 and regulations as apply to such Party; (ii) define responsibilities for adverse experience handling for initial,
follow-up and/or periodic submission to government agencies of significant information on Product or Substance from pre clinical laboratory, animal toxicology and pharmacology studies and Pre-clinical Development; (iii) include arrangements for the
exchange of serious and non-serious cases including formats and timelines, Periodic Safety Update Reports, Periodic Reports and answers to safety related queries by Regulatory Authorities; and (iv) be promptly amended as changes in legal obligations
require or as otherwise agreed by the Parties. 
  
 3.8
Regulatory Cooperation. Each Party shall inform the other Party, within forty-eight (48) hours, of its receipt of any information that: (a) raises any material concern regarding the safety or efficacy, or manufacturing, of Substance or
Product; (b) concerns suspected or actual Product tampering or contamination or similar problems with respect to Substance or Product; (c) is reasonably likely to lead to a recall or market withdrawal of Product; or (d) concerns any ongoing or
potential FDA or other regulatory authority investigation, inspection, detention, seizure or injunction involving Substance or Product, including, without limitation, the receipt of any warning letter or untitled letter relating to Substance or
Product or IND clinical hold. 
  
 3.9 Recalls and Other
Corrective Actions. The Parties shall advise each other as soon as reasonably practicable but whenever possible no later than forty-eight (48) hours in advance of any planned recall, market withdrawals, or other corrective action related to
Product intended to be conducted by either Party or any of its Affiliates that implicates Product supplied by Schering to Licensee and shall keep each other informed with respect to the status of any such actions. Unless regulated otherwise herein,
Licensee shall have responsibility for and shall make all decisions relating to conducting any recall, market withdrawals, or other corrective action related to Product in the Territory. The Parties shall consult with each other with respect thereto
and Licensee shall consider in good faith any comments or suggestions of Schering, provided, however, that nothing herein shall prohibit Licensee, from initiating or conducting any recall or other corrective action mandated by the FDA or
applicable law. At Licensee’s request, Schering shall provide reasonable assistance in conducting such recall, market withdrawal or other corrective action, including, without limitation, providing all pertinent records that Licensee may
reasonably request to assist in effecting such action. Licensee shall bear any and all costs of any such recall, market withdrawal or other corrective action with respect to Product in the Territory, except that Schering shall bear any and all such
costs if such recall, market withdrawal or other corrective action is attributable predominantly to the fault of Schering or results from a negligent or reckless act or omission or intentional misconduct on the part of Schering or its Affiliates or
the failure of Substance or Product to be manufactured or shipped by Schering or its Affiliates in compliance with all applicable laws, rules and regulations, and the Specifications or any breach by Schering of applicable laws, rules or regulations,
or the provisions of this Agreement. 
  

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 Article 4 
 Commercialization 
  
 4.1
Commercialization Party. Licensee shall have the exclusive right to Commercialize Product, either by itself or through its Affiliates or Sublicensees, in the Field and in the Territory. 
  
 4.2 Commercialization Plan. The planned activities regarding
Commercialization to be conducted by Licensee pursuant to this Article 4 shall be set out in a Commercialization plan (“Commercialization Plan”). Within [*] after the Effective Date, Licensee will present a draft of the initial
Commercialization Plan to the Steering Committee for review. The Commercialization Plan shall consist of (i) [*]for the first [*] years commencing on the date of First Commercial Sale and (ii) [*] for the period ending
[*] following First Commercial Sale. Licensee will provide an [*] update of the planned promotional activities including any changes to the already planned promotional activities. Notwithstanding the foregoing Licensee shall have the
right to make all decisions with respect to all matters relating to Commercialization of Product in the Field in the Territory and Schering shall have the right to make all decisions with respect to all matters relating to Commercialization of
Product outside the Territory, taking into account the considerations set forth herein. 
  
 4.3 Commercialization Efforts. Licensee agrees to use Commercially Reasonable Efforts with respect to the Commercialization of Product in the Territory as provided hereunder, including devoting marketing and
sales resources and other personnel to such Commercialization consistent with such Commercially Reasonable Efforts. In case of sublicensing, Licensee shall obligate its Sublicensee to comply with this obligation. Licensee’s obligations set
forth in Article 3 and this Article 4 are expressly conditioned upon the absence of any adverse conditions or event relating to the safety or efficacy of Substance or Product, including the absence of any action by any regulatory authority
significantly limiting the Development or Commercialization of Substance or Product and upon the availability of Clinical Supplies and Finished Product pursuant to the terms of this Agreement and the Supply Agreement. 
  
 4.4 Discounting; Combination Pricing. Licensee shall determine in its
sole discretion the pricing of Product in the Territory. However, If Licensee sells Product to a customer who also purchases other products from Licensee, Licensee agrees not to discount or price Product in a manner that is intended to disadvantage
Product in order to benefit sales or prices of other products offered for sale by Licensee to such customer. 
  
 4.5 Limitation. Licensee will not supply Product to any customer outside the Territory or to any customer in the Territory known by Licensee to be
intended for resale outside the Territory. Schering will not supply Product to any customer outside the Territory known by Schering to be intended for resale for use in the Field in the Territory. [*] 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

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 Article 5 
 Steering Committee 
  
 5.1
Formation of the Steering Committee. As soon as reasonably practicable after the Effective Date, the Parties shall establish a steering committee (the “Steering Committee”). The Steering Committee shall consist of six (6) members,
three (3) nominated by each Party. The initial members of the Steering Committee shall be nominated by the Parties within thirty (30) days after the Effective Date. Each Party may designate a substitute for a member unable to be present at a
meeting. Each member shall have one vote on any issue. Meetings of the Steering Committee shall be held from time to time as agreed between the Parties, and may be called by either Party with not less than ten (10) Business Days notice to the other
unless such notice is waived, and meetings shall be held alternately at the offices of Schering or Licensee or their respective Affiliates or such other location as may be mutually agreed upon by the Parties. The Steering Committee may be convened,
polled or consulted from time to time by means of telecommunication or correspondence. Each Party will disclose to the other proposed agenda items reasonably in advance of each meeting of the Steering Committee. The meetings of the Steering
Committee shall be organized by a chairman. Until December 31, 2006 a representative of Licensee shall be chairman, thereafter the chair shall alternate every Year between the Parties. The meetings of the Steering Committee shall be documented in
written minutes to be approved by both Parties. Each Party shall bear its own costs for participation in the Steering Committee. 
  
 5.2 Functions of the Steering Committee. The Steering Committee shall function as a forum for the Parties to inform and consult with one another
concerning progress of the Development of Products and involvement in post-Development Commercialization activities and as the initial forum to render decisions thereto. The Steering Committee will review draft study protocols for the performance of
planned studies in the course of Development of Product by Licensee in the Territory and shall discuss manufacturing and supply issues, including evaluating development of certain Product Improvements in the Field as set forth in Section 6.8. The
Steering Committee shall receive reports and information on a regular basis from each Party with regard to Development and Commercialization activities. The Steering Committee will also be responsible for considering and advising on aspects of the
Development and Commercialization insofar as it relates to Schering’s global branding for Product. Both Parties recognize and acknowledge their interest in communicating with each other regarding Commercialization strategies. The Steering
Committee shall give consideration to the views, position and recommendations of each Party on any issue before it. Any Confidential Information disclosed in any meeting of the Steering Committee by a Party shall remain Confidential Information of
such Party, subject to the terms and conditions of this Agreement. 
  
 5.3 Limitation on Steering Committee Authority. Notwithstanding the creation of the Steering Committee, each Party to this Agreement shall retain the rights, powers and discretions granted to it hereunder, and the Steering Committee
shall not be delegated or vested with any such rights, powers or discretion unless such delegation or vesting is expressly provided for herein or the Parties expressly so agree in writing. The Steering Committee shall not have the power to amend or
modify this Agreement. 
  

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 5.4 Resolution of Disputes. If the Steering Committee cannot reach a unanimous decision with
respect to the matters delegated to it – other than safety issues dealt with pursuant to Section 5.5 – within twenty (20) Business Days then the disputed matter shall be promptly referred to the Head of the Global Business Unit Gynecology
& Andrology of Schering and to a representative of Licensee at Executive Officer level. If these persons cannot resolve the issue, [*] decision shall prevail in case the matter relates to the Field and the Territory only, subject to
Section 5.5. 
  
 5.5 Safety Issues. If either Party
believes that the performance of Development activities proposed by the other Party, other than Development activities required or recommended to obtain or as a condition to Regulatory Approval or otherwise required by applicable laws or
regulations, may cause safety issues, the objecting Party has to provide evidence and reasonably demonstrate that such Development activities constitute a safety issue for the Substance and/or Product. Any such case has to be discussed in the
Steering Committee. If the Steering Committee cannot reach a unanimous decision with respect to such matters regarding Development activities to be performed in the Field in the Territory the respective Development activities may not be performed as
proposed. If the Steering Committee cannot reach a unanimous decision with respect to any other matter the respective matter shall be promptly referred to the Head of the Global Business Unit Gynecology & Andrology of Schering and to a
representative of Licensee at Executive Officer level. If these persons cannot resolve the issue, [*] decision shall prevail, provided that [*]has to reasonably consider [*] safety concerns. 
  
 Article 6 
 Manufacture and Supply of Product 
  
 6.1 Manufacturing Responsibility. Subject to the terms and conditions of the Supply Agreement, (a) Schering shall be exclusively responsible for the manufacture at the Schering Facility of and supply to
Licensee of Finished Product required for conduct of Development and Commercialization of Product in the Field in the Territory and (b) Licensee agrees to obtain exclusively from Schering all Finished Product required for conduct of Development and
Commercialization of Product in the Field in the Territory. During the term of this Agreement, neither Schering or any of its Affiliates shall make available Product for use in the Field in the Territory for or on behalf of (or authorize or permit
any Third Party to make Product for or on behalf of), any person or entity other than Licensee, Licensee’s Affiliates and Sublicensees, provided that Schering shall not be prohibited from supplying Product for use in the Territory as set forth
in Section 2.5(ii). 
  
 6.2 Clinical Supplies. Schering
shall supply all of Licensee’s requirements of Clinical Supplies for Development not to exceed 5,000 units in total but not more than 1,500 units in a given Year free of charge. In the event Licensee requires Clinical Supplies in excess of such
amount, such additional Clinical Supplies shall be supplied to Licensee at the Supply Price. 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

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 6.3 Supply Price. 
  
 (a) Subject to the provisions of this Section 6.3, the supply price for Finished Product for Commercialization shall be
[*] which shall incorporate all fully-burdened costs and expenses incurred by Schering or its designees associated with the manufacture, procurement, testing, supply and delivery of Finished Product FCA (INCOTERMS 2000) to a carrier
designated by Licensee. 
  
 (b) In the event Schering develops an
Improvement pursuant to Section 6.8.2 and Licensee determines to commercialize such Improvement in the Field in the Territory under this Agreement, then the Supply Price for the finished product of such Improvement shall be proportionally adjusted
to reflect such increased or decreased costs and expenses. 
  
 6.4
Inspection of Schering Facilities. Schering shall take all reasonable steps necessary for the Schering Facilities to pass inspection by the FDA. Schering will provide Licensee with reasonable advance notice of such inspections and, at the
conclusion of such inspections, provide Licensee with the results and outcome of such inspection. Licensee shall provide such assistance in connection with such inspection as may be reasonably requested by Schering. Schering shall be responsible for
and shall take appropriate actions to correct any deficiencies identified by such inspection. 
  
 6.5 Effect of [*]. In the event of [*], Schering shall have the right to terminate the Supply Agreement on not less than [*] months prior written notice to Licensee and provided that
Schering has to enable the technology transfer of the manufacturing process to an alternate manufacturer of Finished Product designated by Licensee, to be more fully regulated in the Supply Agreement. In the event of such termination of the Supply
Agreement, commencing as of the effective date of such termination through the expiration of the Royalty Term, Licensee shall pay Schering, at Licensee’s discretion, either (i) reimbursement of the reasonable costs incurred by Schering for the
technology transfer plus a royalty equal to [*] of Net Sales or (ii) a royalty equal to [*]of Net Sales. 
  
 6.6 Further Terms and Conditions. This manufacture and supply of the Clinical Supplies and Finished Product by Schering shall be governed by a
Manufacturing and Supply Agreement (the “Supply Agreement”) between the Parties. The Parties will enter into good faith negotiations about the Supply Agreement as soon as practicable after the Effective Date. In addition to the provisions
set forth in this Article 6, the Supply Agreement will include commercially reasonable terms and conditions consistent with a manufacturing and supply agreement for pharmaceutical products including, but not limited to forecasts, firm orders,
delivery, mode of payment, change management, quality assurance, inspection, audits and inquiries, second source of supply and technology transfer obligations in certain situations, customary representations and warranties in the pharmaceutical
industry including those for pharmaceutical products approved by the FDA for use in the Territory, and indemnification. 
  
 6.7 Minimum Purchase Obligation. The Supply Agreement shall also provide that for a period commencing after the second Royalty Year and expiring on
the earlier of the sixth anniversary of First Commercial Sale or the commencement of [*], Licensee shall either (a) for each Royalty Year during such period, purchase from Schering at the Supply Price, a minimum of [*] of the units of
Finished Product that were purchased in the second Royalty Year; or (b) if the actual quantity of Finished Product purchased by Licensee for any such Royalty Year is less than such minimum quantity, pay Schering a 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

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supply fee for such Royalty Year equal to the difference, if any, between (i) the amount that would have been payable to Schering if the [*] and (ii)
the sum of (x) the [*] under Section 7.3.1. 
  
 6.8
Development of Certain Product Improvements. 
  
 6.8.1
[*] or [*].[*] shall [*]to develop [*]or [*]with the overall goal of developing and implementing [*]of finished product comprising [*]or [*]consistent with regulatory requirements
for [*]for [*]or [*]and of [*]for [*]in the Territory of Product comprising [*]or [*]by the [*]of [*]The Parties acknowledge that there are development and regulatory risks and
uncertainties associated with this proposed [*]of [*]or [*]that may [*]. The Steering Committee shall establish, [*]but in any event [*], a project plan, timeline and budget for, and shall oversee the
implementation of [*]of, such [*]or [*]consistent with such overall goal. The project plan, timeline and budget shall contemplate that (i) [*]; and (ii) Licensee shall pay the documented development costs of such
[*]or [*]up to an amount of Euro [*]in achieving the overall goal. 
  
 6.8.2 Other Product Improvements. Either Party may at any time submit to the Steering Committee a written proposal for development of Product Improvements in the Field (other than set forth in Section
6.8.1) that might have the effect, if successfully developed and implemented, of causing a material change in the fully-burdened costs and expenses associated with the manufacture, procurement, testing, supply and delivery of Finished Product. Such
proposal shall contain information supporting the rationale for such development as well as an estimated development timeline and an estimate of the cost of such development. The Steering Committee shall evaluate the proposed Improvement and shall
evaluate whether such development should be conducted by Schering. If any such Improvement is approved by the Steering Committee, (i) the Steering Committee shall promptly determine a development plan and budget for development of such Improvement;
and (ii) each Party shall be responsible for [*] of the development costs associated with such Improvement and set forth in such budget. If any such Improvement is not approved by the Steering Committee, and only Schering wishes to develop
such Improvement, then Schering may conduct the development thereof, provided that the costs and expenses associated with the development of such Improvement shall be solely the responsibility of Schering and Licensee shall not have any rights to
such Improvement unless Licensee elects to reimburse Schering for [*]of the associated development costs. If any such Improvement is not approved by the Steering Committee, and only Licensee wishes to have such Improvement developed by
Schering, Licensee may ask Schering to do so and provided that (i) Schering, at its own discretion, agrees to conduct such development and (ii) the costs and expenses associated with the development of such Improvement shall be solely the
responsibility of Licensee, Schering shall not have any rights to such Improvement unless Schering elects to reimburse Licensee for [*] of the associated development costs. 
  
 Article 7 
 Consideration 
  
 7.1 Up-front Payment. In
partial consideration of the rights granted to it by Schering under this Agreement, Licensee shall pay to Schering an up-front fee of 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

 - 17 - 

 
US Dollar seven million five hundred thousand (US$ 7,500,000) within thirty (30) days from the Effective Date. Said up-front payment will be unconditional
and as such shall not be subject to any offset, credit, reduction or repayment for any reason whatsoever, whether provided for in this Agreement or not.  
  

7.2 Milestone Payments. Within thirty (30) days following the occurrence of the event specified below in (a) and ninety (90) days following the
occurrence of any of the events specified below in (b), (c) and (d), Licensee shall pay to Schering the following amounts, contingent upon occurrence of the specified event, with each milestone payment to be made no more than once with respect to
the achievement of such milestone and no amounts payable for any subsequent or repeated achievement of such milestones, regardless of the number of Products for which such milestone may be achieved (but payable the first time such milestone is
achieved) for Product:  
  

	 	(a)	US Dollar five million (US$5,000,000) upon receipt by Licensee of written Regulatory Approval of the NDA for Product by the FDA; 

  

	 	(b)	US Dollar ten million (US$10,000,000) [*] months after Regulatory Approval of the NDA for Product by the FDA if prior to such date there has been [*];

  

	 	(c)	US Dollar five million (US$5,000,000) [*] months after Regulatory Approval of the NDA for Product by the FDA if prior to such date there has been [*]; and

  

	 	(d)	US Dollar two million five hundred thousand (US$2,500,000) upon the earliest occurrence of either: Net Sales in a given Year in the Territory exceeding US Dollar [*] or
cumulative Net Sales in the Territory exceeding US Dollar [*]. 

  
 7.3 Royalties. 
  
 7.3.1
Royalty on Net Sales. In partial consideration for the license granted hereunder, Licensee shall pay to Schering during the Royalty Term royalties on Net Sales in each Royalty Year in an amount equal to the Purchase Price minus Supply
Price. 
  
 7.3.2 Royalty Term. The obligation of
Licensee to pay royalties under this Agreement shall commence on the date of the First Commercial Sale of Product in the Territory and shall continue until the later of (i) the expiration date of the last to expire Patent included in the Schering
Patents which contains a Valid Claim that covers the manufacture, importation, use, sale and offer for sale of Product in the Field in the Territory, or (ii) ten (10) years from the First Commercial Sale of Product in the Territory (“Royalty
Term”). Thereafter, Licensee shall be relieved of any royalty obligation under this Agreement.  
  
 7.3.3 No more than one royalty payment shall be due with respect to a sale of a particular Product. No multiple payments shall be payable because any
Product or its sale or use is covered by more than one Valid Claim covering Product. No royalty payments shall be payable with respect to Products distributed for use in Development or as promotional samples (if any). 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

 - 18 - 

 Article 8 
 Royalty Accounting and Audit 
  
 8.1 Royalty Payments and Reports. Licensee shall make royalty payments to Schering within sixty (60) days after the end of each calendar quarter in which Net Sales occurred. Licensee shall submit to Schering a report summarizing the
Net Sales, the sales quantities of Product and the number of distributed commercial samples (if any) during the relevant quarter within sixty (60) days following the end of each calendar quarter for which royalties are due. 
  
 8.2 Records of Net Sales. Licensee shall maintain complete and
accurate records which are relevant to Net Sales under this Agreement and, upon the written request of Schering with at least ten (10) Business Days’ notice, Licensee shall permit an independent certified public accounting firm of
internationally recognized standing selected by Schering and consented to by Licensee, to have access to such records during reasonable business hours for any Royalty Year ending not more than three (3) full Years prior to the date of such request
for examination at Schering’s expense and not more often than once each Year, for the sole purpose of verifying for Schering the correctness of calculations under this Agreement. Schering shall bear its own costs related to such audit;
provided, that for any underpayments of royalties by Licensee in an amount greater than five percent (5%) of the royalties owed in the aggregate by Licensee for the applicable period or periods being examined, Licensee shall pay Schering the amount
of underpayment, interest on the amount of the underpayment as provided for in Section 9.2 from the time the royalty was due and the reasonable out-of-pocket costs of such accounting firm. For any underpayments of royalties by Licensee in an amount
less than five percent (5%) of the royalties owed in the aggregate by Licensee for the applicable period or periods being examined under this Section 8.2, Licensee shall pay Schering the amount of such underpayment. Any overpayments by Licensee
will, at Licensee’s option, be refunded to Licensee or credited to future royalties. The accounting firm shall disclose to Schering only whether the reports are correct or incorrect and the specific details concerning any discrepancies. Any
records or accounting information received from Licensee shall be confidential information solely for the purpose of Section 8.1. Results of any such audit shall be provided to both Parties and shall be considered Confidential Information as defined
in Section 13.1. Upon the expiration of twenty-four (24) months following the end of any Royalty Year the calculation of royalties for such Royalty Year shall be binding and conclusive upon Schering, and Licensee shall be released from any liability
or accountability with respect to royalties for such Royalty Year. 
  
 8.3 Audit Disagreement. If there is a dispute between the Parties following any audit pursuant to Section 8.2 above, either Party may refer the issue (an “Audit Disagreement”) to an independent certified public accountant
for resolution. In the event an Audit Disagreement is submitted for resolution by either Party, the Parties shall comply with the following procedures: 
  

	 	(i)	The Party submitting the Audit Disagreement for resolution shall provide written notice to the other that it is invoking the procedures of this Section 8.3.

  

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	 	(ii)	Within thirty (30) Business Days of the giving of such notice, the Parties shall jointly select a recognized international accounting firm to act as an independent expert to resolve
such Audit Disagreement. 

  

	 	(iii)	The Audit Disagreement submitted for resolution shall be described by the Parties to the independent expert, which description may be in written or oral form, within ten (10) days
of the selection of such independent expert. 

  

	 	(iv)	The independent expert shall render a decision on the matter as soon as possible. 

  

	 	(v)	The decision of the independent expert shall be final and binding unless such Audit Disagreement involves alleged fraud, breach of this Agreement or construction or interpretation
of any of the terms and conditions hereof. 

  

	 	(vi)	All reasonable fees and expenses of the independent expert, including any Third Party support staff, or other costs incurred with respect to carrying out the procedures specified at
the direction of the independent expert in connection with such Audit Disagreement, shall be borne by each party in inverse proportion to the disputed amounts awarded to the Party by the independent expert through such decision. For example, Party A
disputes US$ 100, the independent expert awards Party A US$ 60: Party A must pay forty percent (40%) and Party B sixty percent (60%) of the independent expert’s costs. 

  
 Article 9 
 Payment Terms 
  
 9.1 Payments. Payments due under this Agreement shall be due on such date as specified in this Agreement and, in the event such date is not a Business Day, then the next succeeding Business Day, and shall be
made by wire transfer of immediately available funds to a bank account designated by Schering to Licensee in writing at least ten (10) Business Days before payment is due. Any payments by Licensee under this Agreement shall be made in US Dollars.

  
 9.2 Interest. Any failure by Licensee to make a payment
within ten (10) Business Days after the date when due, shall obligate Licensee to pay to Schering imputed interest, the interest period commencing on the due date and ending on the payment day, at a rate per annum equal to the Prime Rate as publicly
announced by Bank of America on [REUTERS_screen <USPRIME1>] plus two percentage point (2%), or the highest rate allowed by law, whichever is lower. The interest calculation shall be based on the [act/360 computation] method. The interest rate
shall be adjusted whenever there is a change in the Prime Rate quotation on REUTERS screen <USPRIME1> mentioned above. Interest shall be compounded annually in arrears. Such interest shall be due and payable on the date of underlying payment
is made. 
  
 9.3 Taxes. Schering shall pay any and all
taxes levied on account of all payments it receives under this Agreement. If laws or regulations require that taxes be withheld, Licensee will (a) deduct those taxes from the remittable payment, (b) timely pay the taxes to the proper taxing
authority and (c) send proof of payment to Schering within thirty (30) days of receipt of confirmation of payment from the relevant taxing 

  

 - 20 - 

 
authority. Licensee agrees to make all lawful and reasonable efforts to minimize such taxes to Schering. If Licensee is so required then Schering and
Licensee shall co-operate in all respects and take all reasonable steps to lawfully avoid payment of any such withholding taxes. Schering shall provide Licensee prior to any payments under this Agreement, with all necessary forms or documentation
required to claim the exemption from such withholding taxes. 
  
 Article 10 
 Ownership, Patent Rights, Trademarks, Domain Name, Use of Name 
  
 10.1 Patent Prosecution of Schering Patents. Schering shall be
responsible, at its sole discretion and expense, for preparing, filing, prosecuting and maintaining (including conducting any interferences, re-examinations, reissues and oppositions) the Schering Patents, as it deems appropriate, by itself, by
Schering’s Affiliates or by external patent attorneys. Schering will consult with Licensee in all matters related to the Schering Patents that are relevant to Products in the Field in the Territory, or outside the Territory if such matters have
potentially negative implications on the Schering Patents in the Territory. Schering shall use Commercially Reasonable Efforts to implement all reasonable requests made by Licensee with regard to the preparation, filing, prosecution and/or
maintenance of such Schering Patents. Schering shall inform Licensee of any developments in the prosecution of pending patent applications included in the Schering Patents, including any office actions, allowance of claims, or upcoming grant of any
patent based thereon in the Territory, in Canada or in Europe. Any patent issues which cannot be resolved on the working level will be referred to the Steering Committee. If Schering elects not to file, prosecute or maintain a patent application or
patent included in the Schering Patents in the Territory, it shall provide Licensee with written advance notice sufficient to avoid any loss or forfeiture, and Licensee shall have the right, but not the obligation, at its expense, to file, prosecute
or maintain such patent application or patent in the Territory. Thereafter, Schering shall assign such patent application or patent to Licensee, and such patent or patent application shall no longer be deemed a Schering Patent. 
  
 10.2 Patent Office Activities. Each Party shall inform the other Party
if it becomes aware of any request for, filing, or declaration of any proceeding before a patent office seeking to protest, oppose, nullify, cancel, reexamine, declare an interference proceeding, initiate a conflicts proceeding, or analogous process
involving a patent application or patent included in the Schering Patents in the Territory, or outside the Territory if such matters have potentially negative implications on the Schering Patents in the Territory, or the Joint Patents, or of the
filing of an action in a court of competent jurisdiction seeking a judgment that a patent included in the Schering Patents or the Joint Patents is either invalid, unenforceable or, not infringed, or some combination thereof. Each Party thereafter
shall cooperate with the other with respect to any such patent office or court proceeding and shall provide the other with any information or assistance that is reasonable. 
  
 10.3 Ownership. Each Party shall solely own, and it alone shall have the right to apply for, patents within and
outside the Territory for any inventions made solely by that Party’s employees or consultants in the course of performing work under this Agreement, subject to the rights granted to the other Party with respect to such 
  

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 inventions or patents under this Agreement. Inventions made jointly by employees or consultants of Schering and Licensee
(herein referred to as “Joint Inventions”) and any Joint Patents resulting therefrom shall be jointly owned by Schering and Licensee subject to the rights granted to the other Party with respect to such Party’s interest in such Joint
Inventions or Joint Patents under this Agreement. 
  
 10.4
Disclosure of Inventions. Any patent application disclosing inventions regarding Product (“Inventions”) made solely by one Party shall be provided by such Party to the other as soon as practicable after submission of such
application to a governmental patent authority. 
  
 10.5 Patent
Filings. Each Party, at its own cost, shall prepare, file, prosecute and maintain Patents to cover Inventions made solely by its own employees or consultants and shall use Commercially Reasonable Efforts to file initially all such applications
inside and outside the Territory. The Parties agree to use Commercially Reasonable Efforts to ensure that any Patent filed outside the US prior to filing in the US will (i) be in a form sufficient to establish the date of original filing as a
priority date for the purposes of a subsequent filing in the US and (ii) satisfy all formal statutory requirements for patentability in the US, including best mode. The Parties agree to use Commercially Reasonable Efforts to ensure that any Patent
filed in the US prior to filing outside the US will (i) be in a form sufficient to establish the date of original filing as a priority date for the purposes of a subsequent filing in any country other than the US and (ii) satisfy all formal
statutory requirements for patentability in the countries outside the US, in particular with regard to the requirement of novelty, for which reason the Parties agree not to disclose any such Invention and related information, either in writing or
oral, prior to filing. The Parties agree to use Commercially Reasonable Efforts to ensure that any Patent filed in the US prior to filing outside the US will be in a form sufficient to establish the date of original filing as a priority date for the
purpose of a subsequent filing in any contracting state of the Paris Convention. 
  
 Schering shall have the initial right to file, prosecute and maintain in the name of both Parties, any Joint Patents, the costs of which shall be equally shared by the Parties. Prior to filing a patent application for
a Joint Invention Schering will provide to Licensee a draft of the patent application for review within twenty (20) Business Days. Schering will reasonably take into consideration any comments of Licensee. The determination of the countries in which
to file Joint Patents shall be made by Schering, provided that Schering will always file an application in the US. Schering shall have the right to direct and control all material actions relating to the prosecution or maintenance of Joint Patents,
including interference proceedings, reexaminations, reissue, opposition and revocation proceedings, subject to the provisions of Section 10.2. Licensee shall provide to Schering all reasonably necessary declarations and cooperate with Schering to
enable Joint Patents to be issued. Schering will consult with Licensee in all matters related to the Joint Patents and shall use Commercially Reasonable Efforts to implement all reasonable requests made by Licensee with regard to the preparation,
filing, prosecution and/or maintenance of Joint Patents. Schering shall inform Licensee of any developments in the prosecution of pending patent applications included in the Joint Patents, including any office actions, allowance of claims, or
upcoming grant of any domestic or foreign patent based thereon. Any patent issues which cannot be resolved on the working level will be referred to the Steering Committee. If Schering elects not to file, prosecute or maintain a patent application or
patent included in the 
  

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 Joint Patents in any country, it shall provide Licensee with written advance notice sufficient to avoid any loss or
forfeiture, and Licensee shall have the right, but not the obligation, at its expense, to file, prosecute or maintain such patent application or patent in such country. Thereafter, Schering shall transfer all right, title and interest in such patent
application or patent to Licensee, and such patent or patent application shall no longer be deemed a Joint Patent. If Licensee elects to no longer own the rights to a Joint Patent in a given country Licensee may transfer all right, title and
interest in such patent application or patent to Schering in such country(ies), and such patent or patent application shall no longer be deemed a Joint Patent in such country(ies). 
  
 This Section 10.5 shall survive the termination of this Agreement for any reason. 
  
 10.6 License Grant to Inventions. All Inventions owned or Controlled
by Schering and Schering’s rights in all Joint Inventions shall be subject to the license granted to Licensee pursuant to Section 2.1 and/or, if applicable, to the provisions of Section 2.7. 
  
 With respect to Inventions owned or Controlled by Licensee and
Licensee’s rights in all Joint Inventions, Licensee hereby grants to Schering (i) a royalty-free, exclusive, sub-licensable license to use any such Invention in the Field outside the Territory; and (ii) a right of first negotiation, to be
implemented in a similar fashion to the Right of First Negotiation set forth in Section 2.7, to obtain from Licensee an exclusive, sub-licensable license to use any such Invention outside the Field and either in or outside the Territory pursuant to
a further license agreement containing mutually acceptable commercially reasonable terms and conditions, including the payment by Schering to Licensee of royalties and/or other consideration in exchange for such license, to be negotiated in good
faith between the Parties; provided, however, that in either case any sublicense by Schering to a Third Party shall require the prior written consent of Licensee, which consent shall not be unreasonably withheld or delayed. 
  
 This Section 10.6 shall survive the termination of this Agreement for any
reason. 
  
 10.7 Enforcement Rights. 
  
 10.7.1 Notification of Infringement. If either Party learns of any
infringement or threatened infringement by a Third Party of the Schering Patents such Party shall promptly notify the other Party and shall provide such other Party with all available evidence of such infringement. The Parties will thereafter
consult and cooperate fully to determine a course of action, including, without limitation, the commencement of legal action by any Party. 
  
 10.7.2 Enforcement in the Territory. Subject to the next sentence and Section 10.7.3, Schering shall be obligated, insofar as commercially
reasonable, at its own expense, to defend Schering Patents in the Territory. However, Licensee shall have the first right, but not the obligation, to institute, prosecute and control at its own expense any action or proceeding with respect to
infringement of any Schering Patents covering the manufacture, use, importation, sale or offer for sale of Product in the Territory, by counsel of its own choice. Schering shall have the right, at its own expense, to be represented in any action by
counsel of its own choice. 
  

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 10.7.3 Failure to Enforce. If Licensee fails to bring an action or proceeding or otherwise take
appropriate action to abate such infringement within a period of sixty (60) days of notice by Schering to Licensee requesting action or otherwise elects not to exercise such right, Schering will have the right, but not the obligation, to bring and
control any such action or proceeding relating to Schering Patents by counsel of its own choice and Licensee will have the right to be represented in any such action by counsel of its own choice and at its own expense. If one Party brings any such
action or proceeding, the other Party agrees to be joined as a party plaintiff if necessary to prosecute the action or proceeding and to give the first Party commercially reasonable assistance and authority to file and prosecute the suit.

  
 10.7.4 Division of Recoveries. Any damages or other
monetary awards recovered pursuant to this Section 10.7 shall be allocated first to the costs and expenses of the Party bringing or maintaining the defense of such suit, then to the costs and expenses, if any, of the other Party. In the event that
Licensee brings such action, any amounts remaining shall be distributed as follows: the remaining amount of the recovery shall be treated as Net Sales in the calendar quarter received and Schering shall be entitled to a portion of the royalties it
would have received on such Net Sales. In the event that Schering brings such action, [*] percent ([*]%) of any amounts remaining shall be payable to Schering and the remaining [*]percent ([*]%) to Licensee. 

 
 10.7.5 Settlement with a Third Party. The Party that controls the
prosecution of a given action shall also have the right to control settlement of such action, provided however, that the Party controlling the action may not settle the action or otherwise consent to an adverse judgment in such action that
diminishes the rights or interests of the non-controlling Party without the written consent of the non-controlling Party, which consent shall not be unreasonably withheld. 
  
 10.8 Defense and Settlement of Third Party Claims. If a Party becomes aware that a Third Party is asserting that a
patent or other intangible right owned by it is infringed by Product in the Field in the Territory, such Party shall promptly notify the other Party in writing setting forth the facts of such claim in reasonable detail. Except as set forth in this
Section 10.8, Schering shall defend against any such assertions or any action relating thereto at its cost and expense. In such event, Licensee shall render such assistance as may reasonably be requested in connection with any such action taken by
Schering. Schering shall not be required to defend such action if Schering determines in good faith that it would not be commercially reasonable to do so, considering the overall spirit and intent of this Agreement. No settlement which would
negatively impact the rights of Licensee under this Agreement may be entered into without the written consent of Licensee, which shall not be unreasonably withheld or delayed. The costs of any such settlement (including, without limitation, damages,
expense reimbursements, compliance, future royalties or other amounts) shall be paid by [*]. If any Third Party is successful in any such claim and Licensee is ordered by a valid judicial authority in an unappealable order (or order which
Schering determines not to appeal) or otherwise determines to make any payments to such Third Party in connection therewith, such payments shall be offset or deducted from the payment obligations of Licensee under the Agreement. In the event that
Schering does not defend such action in accordance with this Section 10.8, then, except as set forth in this Section 10.8, Licensee shall initiate or continue a defense at its cost and expense. In such event, Schering shall render such assistance as
may reasonably be requested in 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

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 connection with any such action taken by Licensee. Licensee shall not be required to defend such action under this
Section 10.8 if Licensee determines in good faith that it would not be commercially reasonable to do so, considering the overall spirit and intent of this Agreement. No settlement which would negatively impact the rights of Schering under this
Agreement may be entered into without the written consent of Schering, which shall not be unreasonably withheld or delayed. If Licensee so determines not to defend such action, the Parties shall discuss and cooperate with each other to determine an
appropriate strategy with respect to such action. However, neither Party shall enter into a settlement of any such action that would negatively impact the rights of the other Party under this Agreement without the written consent of such other
Party, which shall not be unreasonably withheld or delayed. 
  
 10.9 Trademarks. 
  
 10.9.1 Schering grants to
Licensee an exclusive right and license, with the right to sublicense, to use the Trademark in connection with the marketing, sale, advertising and promotion of Product in the Field in the Territory. Licensee will use Commercially Reasonable Efforts
to use the Trademark “Nebido” on and in connection with the Commercialization of Product in the Territory. However, if it is determined that it is not possible, or if the Parties mutually determine that it is not advisable or desirable, to
use the Trademark “Nebido” in connection with the Commercialization of Product in the Territory, the Parties shall mutually agree on an alternate appropriate trademark for adoption in the Territory that is possible, advisable and
desirable, which shall include consideration given to a trademark similar to “Nebido”, and, if selected, such alternate trademark shall, for purposes of this Agreement, be deemed the Trademark. 
  
 10.9.2 Schering shall be responsible for the registration and maintenance of
the Trademark which Licensee employs in connection with the Commercialization of Product in the Field in the Territory. Schering shall own and control the Trademark and bear all relevant costs relating thereto. If necessary to permit Licensee to use
the Trademark, Schering shall make application to register Licensee as a permitted user or registered user of the Trademark. 
  
 10.9.3 Licensee recognizes the exclusive ownership by Schering of any proprietary Schering name, logotype or Trademark furnished by Schering (including
Schering’s Affiliates) for use in connection with the marketing, sale or distribution of Product. Licensee shall not, either while this Agreement is in effect, or at any time thereafter, register, use or challenge or assist others to challenge
the Trademark or attempt to obtain any right in or to any such name, logotype or trademarks confusingly similar to Product as defined in this Agreement or any other goods and products, notwithstanding that such goods or products have a different use
or are dissimilar to Product as defined in this Agreement. Neither Party shall Commercialize or permit another to Commercialize in the Territory, any product (other than, under this Agreement, Product) under the Trademark or any confusingly similar
trademark. During the term of this Agreement Schering agrees not to assign or transfer its rights in and to the Trademark, and/or any associated federal or state trademark registrations or pending applications, or Domain Names to any Third Party
except in connection with a permitted assignment of this Agreement as a whole. 
  

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 10.9.4 Subject to compliance with applicable laws and regulations, neither Party shall modify or alter
the Trademark or do anything which might reasonably be expected to damage the Trademark. Subject to compliance with applicable laws and regulations, Licensee shall use the Trademark “Nebido” only in the layout as set forth in Schedule
1.63 or as agreed upon with Schering in writing. 
  
 10.9.5
Licensee shall promptly notify to Schering any actual alleged or threatened infringement of the Trademark or of any unfair trade practices, trade dress limitation, passing off of counterfeit goods, or similar offenses. Schering shall have the first
right to determine in its discretion whether to and to what extent to institute, prosecute and/or defend any action or proceedings involving or affecting any rights relating to the Trademark in the Territory. Upon Schering’s reasonable request,
Licensee shall cooperate with and assist Schering in any of Schering’s enforcement efforts with respect to the Trademark in the Territory. If Schering determines not to take action against any actual or suspected infringement of the Trademark
in the Territory within sixty (60) days after having become aware of such infringement, then Licensee shall have the right, but not the obligation, to bring or assume control of any action against the allegedly infringing Third Party as Licensee
determines in its sole discretion. In the event that Licensee brings or assumes control of any such action, then Schering agrees to reasonably assist Licensee in connection therewith. However, Licensee may not enter into a settlement with such Third
Party without the prior written consent of Schering, which consent may not be unreasonably withheld or delayed. Any damages or other monetary awards recovered pursuant to this Section 10.9.5 shall be allocated first to the costs and expenses of the
Party bringing or maintaining the defense of such suit, then to the costs and expenses, if any, of the other Party. In the event that Licensee brings such action, any amounts remaining shall be distributed as follows: the remaining amount of the
recovery shall be treated as Net Sales in the calendar quarter received and Schering shall be entitled to a portion of the royalties it would have received on such Net Sales. In the event that Schering brings such action, [*] of any amounts
remaining shall be payable to Schering and the remaining [*] to Licensee. 
  
 10.10 Domain Names. Except as set forth in this Section 10.10, Schering shall be responsible for the registration, hosting, maintenance, costs and defense of the Domain Names. For the avoidance of doubt,
Schering is allowed to register in its own name, to host on its own servers, maintain and defend the Domain Names and use them for websites. Notwithstanding the foregoing, Licensee shall have the right at all times to host a US based website, and to
control the content of such website, using the Domain Name, in connection with the marketing, sale, advertising and promotion of Product in the Field in the Territory. The Parties shall coordinate its activities under this Section 10.10 to ensure
regulatory compliance by each Party. 
  
 10.11 Use of
Names. Neither Party shall use the name of the other Party in relation to this transaction in any public announcement, press release or other public document without the written consent of such other Party, which consent shall not be
unreasonably withheld or delayed, except in accordance with Section 13.5; and provided however, that either Party may use the name of the other Party in any document filed with any Regulatory Authority, including the FDA, and with the SEC (and may
distribute any such filing in the ordinary course of its business), in which case Schering shall be referred to as “Schering AG, Germany”. Licensee acknowledges that Schering does not have any rights to the tradename “Schering”
in the Territory. 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

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 Article 11 
 Representations and Warranties 
  
 11.1 General Representations. Each Party hereby represents and warrants to the other Party as follows: 
  
 11.1.1 Such Party is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated;

  
 11.1.2 Such Party has the corporate power and authority and
the legal right to enter into this Agreement and to perform its obligations hereunder and the execution, delivery and performance by such Party of this Agreement have been duly authorized by all necessary corporate action. This Agreement has been
duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against such Party in accordance with its terms except as enforceability may be limited by (A) any applicable bankruptcy,
insolvency, reorganization, moratorium or similar law affecting creditor’s rights generally, or (B) general principles of equity, whether considered in a proceeding in equity or at law; 
  
 11.1.3 All necessary consents, approvals and authorizations of all
governmental authorities and other persons required to be obtained by such Party in connection with this Agreement have been obtained; and 
  
 11.1.4 The execution and delivery of this Agreement and the performance of such Party’s obligations hereunder (a) do not conflict with or violate any
requirement of applicable laws or regulations or any judgment, injunction, decree, determination or award presently in effect having applicability to it, and (b) do not conflict with, or constitute a default under, any agreement of such Party with
any Third Party. 
  
 11.2 Additional Schering Representations
and Warranties. Schering represents and warrants to Licensee as follows: 
  
 11.2.1 The Schering Technology in the Territory is owned and Controlled solely and exclusively by Schering free and clear of any liens, charges and encumbrances, and no Third Party has any claim of ownership with
respect to the Schering Technology in the Territory, whatsoever; 
  
 11.2.2 Schering has not previously granted, and will not grant during the term of this Agreement, any right, license or interest in and to the Schering Technology in the Territory, or any portion thereof, inconsistent or in conflict with
the license granted to Licensee herein; 
  
 11.2.3 to the best of
Schering’s knowledge, the pending patent application included in the Schering Patents satisfies all the statutory requirements for patentability in the Territory; 
  
 11.2.4 there are no pending or, to the best of Schering’s knowledge, threatened actions, suits, investigations, claims,
judgments or proceedings relating to 

  

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the Schering Technology. Schering is not aware of any issued patent that is or would be infringed by the Development or Commercialization of a Product as
contemplated by this Agreement; 
  
 11.2.5 Schering is not aware
of any information relating to the institution or threatened institution of any interference, opposition, re-examination, reissue, revocation, nullification, or any official proceeding involving a Schering Patent ; 
  
 11.2.6 Schedule 1.51 contains a complete and accurate list of all
Schering Patents in the Territory; 
  
 11.2.7 To the best of
Schering’s knowledge, neither Schering, nor any officer, employee or agent of Schering, has made an untrue statement of a material fact to any Regulatory Authority with respect to Substance or Product (whether in any submission to such
Regulatory Authority or otherwise), or knowingly failed to disclose a material fact required to be disclosed to any Regulatory Authority with respect to Substance or Product; 
  
 11.2.8 To the best of Schering’s knowledge, Schering and its employees, agents, clinical institutions and clinical
investigators have materially complied with all FDA statutory and regulatory requirements applicable to the activities of Schering and its employees, agents, clinical institutions and clinical investigators at the time such activities were
undertaken, in each case with respect to Product and Substance in the Territory; 
  
 11.2.9 Schering has disclosed to Licensee or allowed Licensee access to any facts known to Schering as of the Effective Date that Schering reasonably believes in good faith to be material regarding: (i) preclinical
and clinical study results and protocols for Substance and/or Product; (ii) any communications to and from any Regulatory Authority with respect to Substance and/or Product (other than regarding CMC and manufacturing), including, but not limited to,
any regulatory submissions and filings, correspondence with, and minutes of meetings and telephone conferences with Regulatory Authorities; and (iii) adverse drug experiences and other IND safety reports with respect to Substance and/or Product; and

  
 11.2.10 Clinical Supplies and Finished Product to be supplied
to Licensee by Schering under the Supply Agreement shall conform to the Specifications. 
  
 11.3 Effect of Representations and Warranties. It is understood that if the representations and warranties made by a Party under this Article 11 are not true and accurate, and the other Party incurs damages,
liabilities, costs or other expenses as a result, the Party making such representations and warranties shall indemnify and hold the other Party harmless from and against any such damages, liabilities, costs or other expenses incurred as a result.

  
 11.4 Disclaimer. EXCEPT AS EXPRESSLY STATED IN THIS
AGREEMENT NOTHING IN THIS AGREEMENT IS OR SHALL BE CONSTRUED AS: 
  
 11.4.1 A REQUIREMENT THAT SCHERING SHALL FILE ANY PATENT APPLICATION, SECURE ANY PATENT, OR MAINTAIN ANY PATENT IN FORCE; OR 
  

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 11.4.2 AN OBLIGATION TO BRING OR PROSECUTE ACTIONS OR SUITS AGAINST THIRD PARTIES FOR INFRINGEMENT
(EXCEPT TO THE EXTENT AND IN THE CIRCUMSTANCES STATED IN ARTICLE 10); OR 
  
 11.4.3 GRANTING BY IMPLICATION, ESTOPPEL, OR OTHERWISE, ANY LICENSES OR RIGHTS UNDER PATENTS OR KNOW-HOW OF SCHERING OTHER THAN THE SCHERING PATENTS AND THE SCHERING KNOW-HOW AND SCHERING’S INTEREST IN THE JOINT
PATENTS, IF ANY; OR 
  
 11.4.4 A REPRESENTATION OR WARRANTY BY
SCHERING OF THE ACCURACY, SAFETY, OR USEFULNESS FOR ANY PURPOSE OF ANY SCHERING KNOW-HOW AT ANY TIME MADE AVAILABLE BY SCHERING. 
  
 11.4.5 NO GUARANTEE BY SCHERING THAT ANY PRODUCT WILL EVER BE DEVELOPED, APPROVED FOR MARKETING, SOLD OR OFFERED FOR SALE, OR IF SOLD, WILL GENERATE
REVENUES OR PROFITS FOR LICENSEE. 
  
 Article 12 

Indemnification 
  
 12.1 Schering. Schering shall indemnify, defend and hold harmless Licensee and its directors, officers, employees, agents, successors and assigns
(each a “Licensee Indemnitee”) from and against any and all liabilities, damages, losses, costs or expenses (including reasonable attorneys’ and professional fees and other expenses of litigation and/or arbitration) (a
“Liability”) resulting from a claim, suit or proceeding, including a product liability claim (“Claim”), made or brought by a Third Party against a Licensee Indemnitee arising out of, attributable to or based on any claims
alleging (i) any breach by Schering of the representations and warranties set forth in Section 11.1 or 11.2, except to the extent caused by the negligence or willful misconduct of Licensee; or (ii) the negligence or willful misconduct by Schering or
any designee of Schering in exercising or performing any of Schering’s rights or obligations under this Agreement. 
  
 12.2 Licensee. Licensee shall indemnify, defend and hold harmless Schering and its directors, officers, employees, agents, successors and assigns
(each a “Schering Indemnitee”) from and against any and all liabilities, damages, losses, costs or expenses (including reasonable attorneys’ and professional fees and. other expenses of litigation and/or arbitration) (a
“Liability”) resulting from a claim, suit or proceeding including a product liability claim (a “Claim”), made or brought by a Third Party against a Schering Indemnitee, arising out of, attributable to or based on any claims
alleging (i) any breach by Licensee of the representations and warranties set forth in Section 11.1, (ii) the practice by Licensee of any right granted herein, or (iii) any development, testing, importation, use, marketing, promotion, offer for
sale, sale or other distribution of any Product by Licensee or its Affiliates and Sublicensees; except in each case to the extent caused by the negligence or willful misconduct of Schering. 
  
 12.3 Procedure. In the event that any Indemnitee intends to claim
indemnification under this Article 12 it shall promptly notify the other Party (the “Indemnitor”) in writing of such alleged Liability. Failure to provide prompt notice shall not relieve any Party of the duty to defend or indemnify unless
such failure materially 

  

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prejudices the defense of any matter. The Indemnitor shall have the sole right to control the defense and settlement thereof provided, however, that
an Indemnitor shall not, without the written consent of the other Party, as part of any settlement or compromise (i) admit to liability on the part of the other Party; (ii) agree to an injunction against the other Party; or (iii) settle any matter
in a manner that separately apportions fault to the other Party. The Parties further agree that as part of the settlement of any indemnified Claim, unless otherwise agreed by the Indemnitees, an Indemnifying Party shall use Commercially Reasonable
Efforts to obtain a full, complete and unconditional release from the claimant on behalf of the Indemnitees. The Indemnitee shall cooperate with the Indemnitor and its legal representatives in the investigation of any action, claim or liability
covered by this Article 12, the Indemnitee shall have a reasonable opportunity to participate in decision-making with respect to the strategy of such defense, and the Parties shall reasonably cooperate with each other in connection with the
implementation thereof. The Indemnitee shall not, except at its own cost, voluntarily make any payment or incur any expense with respect to any Claim without the prior written consent of the Indemnitor, which the Indemnitor shall not be required to
give. Actions taken by the Indemnitor hereunder shall be without prejudice to the Indemnitor’s right to contest the Indemnitee’s right to indemnification and subject to refund in the event the Indemnitor is ultimately held not to be
obligated to indemnify the Indemnitee. 
  
 12.4 Survival.
This Article 12 shall survive expiry or termination of this Agreement for any reason. 
  
 Article 13 
 Confidentiality 
  
 13.1 Confidential Information. Except to the extent expressly authorized by this Agreement or otherwise agreed in
writing, the Parties agree that the receiving Party shall keep confidential and shall not publish or otherwise disclose to any Third Party or use for any purpose other than as provided for in this Agreement any Know-how and other information and
materials furnished to it by the other Party pursuant to this Agreement, or any provisions of this Agreement that are the subject of an effective order of the SEC granting confidential treatment (collectively “Confidential Information”),
except to the extent that it can be established by the receiving Party that such Confidential Information: 
  
 13.1.1 is or becomes public or available to the general public otherwise than through the act or default of the receiving Party; 
  
 13.1.2 is obtained by the receiving Party from a Third Party who is lawfully
in possession of such Confidential Information and is not subject to an obligation of confidentiality or non-use owed to the disclosing Party or others; 
  
 13.1.3 is previously known to the receiving Party prior to disclosure to the receiving Party by the disclosing Party under this Agreement, as shown by
written evidence, and is not obtained or derived directly or indirectly from the disclosing Party; 
  

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 13.1.4 is disclosed by the receiving Party pursuant to the requirement of law, provided that the
receiving Party has complied with the provisions set forth in Section 6.3; or 
  
 13.1.5 is independently developed by the receiving Party without the use of or reliance on any Confidential Information provided by the disclosing Party hereunder, as shown by contemporaneous written evidence.

  
 13.2 Public Domain. For the purposes of this Agreement,
specific information disclosed as part of the Confidential Information shall not be deemed to be in the public domain or in the prior possession of the receiving Party merely because it is embraced by more general information in the public domain or
by more general information in the prior possession of the receiving Party. 
  
 13.3 Legal Disclosure. If the receiving Party becomes legally required to disclose any Confidential Information provided by the disclosing Party, the receiving Party will give the disclosing Party prompt notice
of such fact so that the disclosing Party may seek to obtain a protective order or other appropriate remedy concerning such disclosure and/or waive compliance with the non-disclosure provision of this Agreement. The receiving Party will reasonably
cooperate with the disclosing Party in connection with the disclosing Party’s efforts to obtain any such order or other remedy. If any such order or other remedy does not fully preclude disclosure or the disclosing Party waives such compliance,
the receiving Party will make such disclosure only to the extent that such disclosure is legally required and will use its reasonable efforts to have confidential treatment accorded to the disclosed Confidential Information. 
  
 13.4 Permitted Use and Disclosures. Each Party hereto may use or
disclose Confidential Information disclosed to it by the other Party to the extent such use or disclosure is reasonably necessary in complying with applicable governmental regulations or otherwise submitting information to Regulatory Authorities,
tax or other governmental authorities, conducting preclinical or clinical development, or otherwise exercising its rights hereunder. If a Party is required to make any such disclosure of another Party’s Confidential Information, other than
pursuant to a confidentiality agreement, it will give reasonable advance notice to the latter Party of such disclosure and, save to the extent inappropriate in the case of patent applications, will use its reasonable efforts to secure confidential
treatment of such Confidential Information prior to its disclosure (whether through protective orders or otherwise). 
  
 13.5 Public Disclosure. Except as otherwise required by law or set forth herein, neither Party shall issue a press release or make any other public
disclosure of the terms of this Agreement without the prior approval of such press release or public disclosure. Each Party shall submit any such press release or public disclosure to the other Party to review and approve any such press release or
public disclosure, which approval shall not be unreasonably withheld or delayed. If the receiving Party does not respond within forty-eight (48) hours from submission, the press release or public disclosure shall be deemed approved. In addition, if
a public disclosure is required by law, including without limitation in a filing with the SEC, the disclosing Party shall provide copies of the disclosure forty-eight (48) hours prior to such filing or other disclosure for the non-disclosing
Party’s prior review and comment, provided, however that such right of review and comment shall only apply for the first time that specific 

  

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information is to be disclosed, and shall not apply to the subsequent disclosure of substantially similar information that has previously been disclosed
unless there have been material developments relating to Product since the date of the previous disclosure. 
  
 13.6 Confidential Terms. Except as expressly provided herein, each Party agrees not to disclose any terms of this Agreement to any Third Party
without the consent of the other Party which consent shall not be unreasonably withheld or delayed; except that disclosures may be made as required by securities or other applicable laws, or to actual or prospective investors or corporate partners,
or to a Party’s accountants, attorneys and other professional advisors and that Licensee may file this Agreement as an exhibit to any filing with the SEC and may distribute any such filing in the ordinary course of its business, provided,
however, that to the maximum extent allowable by SEC rules and regulations, the Parties shall be obligated to maintain the confidentiality obligations set forth herein. 
  
 13.7 Publications. Each Party acknowledges the other Party’s interest in publishing its results related to
Product to obtain recognition within the scientific community and to advance the state of scientific knowledge. Each Party also recognizes the mutual interest in obtaining valid patent protection and in protecting business interests and trade secret
information. Accordingly, neither Party shall submit for written or oral publication any manuscript, abstract or the like relating to Product without the prior approval of the other Party. Any Party proposing to submit such publication shall deliver
the proposed publication or an outline of the oral disclosure at least thirty (30) Business Days prior to planned submission or presentation (three (3) Business Days review in the case of meeting abstracts or similar presentations which do not
contain Confidential Information of Schering). At the reasonable request of the other Party, the submission of such publication may be delayed such that any issues of patent protection may be addressed. In the absence of any such request, upon
expiration of the applicable period referred to in this Section 13.7 the publishing Party shall be free to proceed with the publication or presentation. If the other Party requests modifications to the publication, the publishing Party shall edit
such publication to prevent disclosure of trade secret or proprietary business information prior to submission of the publication or presentation. The contribution of each Party, if any, shall be noted in all publications or presentations by
acknowledgment or co-authorship, whichever is appropriate. 
  
 13.8 Survival. This Article 13 will survive expiry or termination of this Agreement for any reason. 
  
 Article 14 
 Term and Termination 
  
 14.1 Term. This Agreement shall commence as of the Effective Date and,
unless sooner terminated as provided herein, shall continue in effect until the expiry of the Royalty Term. 
  
 14.2 Termination for Cause. Failure of Licensee or Schering to comply with any of the respective material obligations and conditions contained in
this Agreement shall 

  

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entitle the other Party to give the Party in default notice requiring it to cure such default. If such default is not cured within ninety (90) days after
receipt of such notice, the notifying Party shall be entitled (without prejudice to any of its other rights conferred on it by the Agreement) to terminate this Agreement by giving a notice to take effect immediately. Notwithstanding the foregoing,
in the event of a non-monetary default, if the default is not reasonably capable of being cured within the ninety (90) day cure period by the defaulting Party and such defaulting Party is making a good faith effort to cure such default, the
notifying Party may not terminate this Agreement, provided however, that the notifying Party may terminate this Agreement if such default is not cured within one hundred and eighty (180) days of such original notice of default. The right of either
Party to terminate this Agreement as herein above provided shall not be affected in any way by its waiver of, or failure to take action with respect to, any previous default. 
  
 14.3 Termination for Change of Control. Schering shall be entitled to terminate the Agreement upon written notice to
Licensee within ninety (90) days after a Change of Control of Licensee if a direct competitor with respect to Product in the Field in the Territory acquires control over Licensee. 
  
 14.4 Termination for Insolvency. If voluntary or involuntary proceedings by or against a Party are instituted in
bankruptcy or under any insolvency law, or a receiver or custodian is appointed for such Party, or proceedings are instituted by or against such Party for corporate reorganization or the dissolution of such Party, which proceedings, if involuntary,
shall not have been dismissed within sixty (60) days after the date of filing, or if such Party makes an assignment for the benefit of creditors, or substantially all of the assets of such Party are seized or attached and not released within sixty
(60) days thereafter, the other Party may immediately terminate this Agreement effective upon notice of such termination. 
  
 14.5 Licensee Rights Not Affected. All rights and licenses granted pursuant to this Agreement are, and shall otherwise be deemed to be, for
purposes of Section 365(n) of the Bankruptcy Code licenses of rights to “intellectual property” as defined under Section 101(35A) of the Bankruptcy Code. The Parties agree that each Party shall retain and may fully exercise all of their
respective rights, remedies and elections under the Bankruptcy Code. The Parties further agree that, in the event of the commencement of a bankruptcy or reorganization case by or against a Party under the Bankruptcy Code, the other Party shall be
entitled to all applicable rights under Section 365 (including 365(n)) of the Bankruptcy Code. Upon rejection of this Agreement by a Party or a trustee in bankruptcy for such Party, pursuant to Section 365(n), the other Party may elect (i) to treat
this Agreement as terminated by such rejection or (ii) to retain its rights (including any right to enforce any exclusivity provision of this Agreement) to intellectual property (including any embodiment of such intellectual property) under this
Agreement and under any agreement supplementary to this Agreement for the duration of this Agreement and any period for which this Agreement could have been extended by such other Party. Upon written request to the trustee in bankruptcy or bankrupt
Party, the trustee or Party, as applicable, shall (i) provide to the other Party any intellectual property (including such embodiment) held by the trustee or the bankrupt Party and shall provide to the other Party a complete duplicate of (or
complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property and (ii) not interfere with the rights of the other Party to 

  

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such intellectual property as provided in this Agreement or any agreement supplementary to this Agreement, including any right to obtain such intellectual
property (or such embodiment or duplicates thereof) from a Third Party. 
  
 14.6 Effect of Termination and Expiration. 
  
 14.6.1 Accrued Rights and Obligations. Termination of this Agreement for any reason shall not release any Party hereto from any liability which, at the time of such termination, has already accrued to the other Party or which is
attributable to a period prior to such termination nor preclude either Party from pursuing any rights and remedies it may have hereunder or at law or in equity with respect to any breach of this Agreement. It is understood and agreed that monetary
damages may not be a sufficient remedy for any breach of this Agreement and that the non-breaching Party may be entitled to injunctive relief as a remedy for any such breach. 
  
 14.6.2 Return of Schering Know-how. Upon any termination of this Agreement, Licensee shall promptly return to
Schering all Schering Technology in tangible form; provided Licensee’s counsel may retain one (1) copy of such tangible Schering Technology for archival purposes and for ensuring compliance with Article 13. 
  
 14.6.3 Stock on Hand. In the event this Agreement is terminated for
any reason, Licensee shall have the right to sell or otherwise dispose of or to destroy the stock of any Product subject to this Agreement then on hand until the first anniversary of the effective date of such termination. Sales made pursuant to
this Section 14.6.3 shall be treated as Net Sales and royalty thereon shall be paid to Schering. 
  
 14.7 Survival. The rights and obligations set forth in this Agreement shall extend beyond the term or termination of this Agreement only to the
extent expressly provided for herein, or to the extent that the survival of such rights or obligations are necessary to permit their complete fulfillment or discharge. 
  
 Article 15 
 Miscellaneous 
  
 15.1 Entire Agreement.
This Agreement, with its Schedules, constitutes the entire agreement, both written and oral, between the Parties with respect to the subject matter hereof, and all prior agreements respecting the subject matter hereof, either written or oral,
expressed or implied, are merged and canceled, and are null and void and of no effect. No amendment or change hereof or addition hereto shall be effective or binding on either of the Parties hereto unless reduced to writing and duly executed on
behalf of both Parties. 
  
 15.2 Assignment. This Agreement
and any rights and obligations hereunder shall not be assignable by either Party to any Third Party hereto without the written consent of the other Party which consent shall not be unreasonably withheld or delayed; except that either Party may
assign this Agreement, without such consent, to an entity that acquires all or substantially all of its business or assets to which this Agreement pertains, whether by merger, reorganization, acquisition, sale, or otherwise. This Agreement shall be
binding upon and inure to the benefit of the Parties and their 

  

 - 34 - 

 
successors and assigns. Any successor or permitted assignee shall assume all obligations of its assignor under this Agreement. Any purported assignment not
is accordance with this Section 15.2 shall be null and void and of no legal effect. 
  
 15.3 Independent Contractors. The relationship of the Parties hereto is that of independent contractors. The Parties hereto are not deemed to be agents, partners or joint ventures of the others for any purpose
as a result of this Agreement or the transactions contemplated thereby. 
  
 15.4 Notices. All notices, requests and other communications hereunder shall be in writing and shall be personally delivered or sent by telecopy or other electronic facsimile transmission (and promptly confirmed by personal delivery,
registered or certified mail or overnight courier) or by registered or certified mail, return receipt requested, postage prepaid, or sent by internationally-recognized overnight courier, in each case to the respective address specified below, or
such other address as may be specified in writing to the other Party hereto: 
  

			
	 If to Schering:
  
 Schering Aktiengesellschaft
 13342 Berlin
 Germany
 Attn. Legal Department
 Fax-No. [*]
	 	 If to Licensee:
  
 Indevus Pharmaceuticals, Inc.
 33 Hayden Avenue, Lexington, MA
02421
 USA
 Attn. Glenn L. Cooper, M.D.
 Fax-No. [*]

  
 15.5 Force
Majeure. Neither Party shall lose any rights hereunder or be liable to the other Party for damages or losses (except for payment obligations) on account of failure of performance by the defaulting Party if the failure is occasioned by war,
strike, fire, Act of God, terrorism, earthquake, flood, lockout, embargo, governmental acts or orders or restrictions or delays or failures to act, failure of suppliers, or any other reason where failure to perform is beyond the reasonable control
and not caused by the negligence, intentional conduct or misconduct and the non-performing Party has exerted Commercially Reasonable Efforts to overcome such force majeure; provided, however, that in no event shall a Party be required to settle any
labor dispute or disturbance. 
  
 15.6 Severability. In the
event that any provisions of this Agreement are determined to be invalid or unenforceable, the remainder of the Agreement shall remain in full force and effect without said provision unless the absence of the invalidated provision(s) adversely
affects the substantive rights of the Parties. In such event the Parties shall, in good faith, negotiate a substitute valid provision for any provision declared invalid or unenforceable, which shall most nearly approximate the economic effect and
intent of the invalid provision that it can be reasonably assumed that the Parties would have entered into this Agreement with the substituted provision. The same shall apply in case of an omission. 
  
 15.7 Waiver. It is agreed that no waiver by either Party hereto of any
breach or default of any of the covenants or agreements herein set forth shall be deemed a waiver as to any subsequent and/or similar breach or default. 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

 - 35 - 

 15.8 Compliance with Laws. Each Party shall furnish to the other Party any information requested
or required by that Party during the term of this Agreement or any extensions hereof to enable that Party to comply with the requirements of any government agency. 
  
 15.9 Further Assurances. At any time or from time to time on and after the date of this Agreement, either Party shall
at the request of the other Party hereto (i) deliver to the requesting Party any records, data or other documents consistent with the provisions of this Agreement, (ii) execute, and deliver or cause to be delivered, all such consents, documents or
further instruments of transfer or license, and (iii) take or cause to be taken all such actions, as the requesting Party may reasonably deem necessary in order for the requesting Party to obtain the full benefits of this Agreement and the
transactions contemplated hereby. 
  
 15.10 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of New York, US, without giving effect to the choice of laws provisions thereof. 
  
 15.11 Dispute Resolution. 
  

(a) The Parties agree to attempt initially to solve all claims, disputes, or controversies arising under, out of, or in connection with this Agreement
(a “Dispute”) by conducting good faith negotiations. Any Disputes which cannot be resolved by good faith negotiation within sixty (60) days, shall be referred, by written notice from either Party to the other, to the Chief Executive
Officer of Licensee and the Head of the Global Business Unit Gynecology & Andrology of Schering. Such persons shall negotiate in good faith to achieve a resolution of the Dispute referred to them within thirty (30) days after such notice is
received by the Party to whom the notice was sent. If such persons are unable to settle the Dispute between them within thirty (30) days, they shall so report to the Parties in writing. The Dispute shall then be referred to mediation as set forth in
the following subsection (b). 
  
 (b) Upon the Parties receiving
the report of the persons referred to in subsection (a) that the Dispute referred to them pursuant to subsection (a) has not been resolved, the Dispute may be referred to mediation by written notice from either Party to the other. The mediation
shall be conducted pursuant to the mediation rules of the American Arbitration Association (“AAA”). In the event Licensee is the claimant, the mediation shall be held in London, England; in the event Schering is the claimant, the mediation
shall be held in New, York, New York, US. If the Parties have not reached a settlement within sixty (60) days of the date of the notice of mediation, the Dispute may be referred to arbitration pursuant to subsection (c) below. 
  
 (c) If, after the procedures set forth in subsections (a) and (b) above, the
Dispute has not been resolved, and if a Party decides to institute arbitration proceedings, it shall give written notice to that effect to the other Party. The Parties shall refrain from instituting the arbitration proceedings for a period of sixty
(60) days following such notice. During such period, the Parties shall continue to make good faith efforts to amicably resolve the dispute without arbitration. If the Parties have not reached a settlement during that period the arbitration
proceedings shall go forward and be conducted in accordance with the then applicable commercial arbitration rules of the 

  

 - 36 - 

 
AAA except where modified herein. Each such arbitration shall be conducted by a panel of three arbitrators with appropriate experience in the biotechnology
or pharmaceutical industry: one arbitrator shall be appointed by each of Schering and Licensee and the third arbitrator, who shall be the Chairman of the tribunal, shall be appointed by the two Party-appointed arbitrators. In the event Licensee is
the claimant, the arbitration shall be held in London, England; in the event Schering is the claimant, the arbitration shall be held in New York, New York, US. The arbitrators shall have the authority to grant specific performance. Any award so
rendered shall be final and binding and judgment upon the award so rendered may be entered in any court having jurisdiction or application may be made to such court for judicial acceptance of any award and an order of enforcement, as the case may
be. In no event shall a demand for arbitration be made after the date when institution of a legal or equitable proceeding based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. Each Party
shall bear its own costs and expenses incurred in connection with any arbitration proceeding and the Parties shall equally share the costs of the mediation and arbitration levied by the AAA. Any mediation or arbitration proceeding entered into
pursuant to this Section 15.11 shall be conducted in the English language. 
  
 15.12 Headings. The captions to the several Sections and Articles hereof are not a part of this Agreement, but are included merely for convenience of reference only and shall not affect its meaning or
interpretation. 
  
 15.13 Counterparts. This Agreement may
be executed in two counterparts, each of which shall be deemed an original and which together shall constitute one instrument. 
  

 - 37 - 

 IN WITNESS WHEREOF Schering and Licensee have executed this Agreement by their respective duly authorized
representatives. 
  

									
	 Schering Aktiengesellschaft
	 	 	 	 Indevus Pharmaceuticals, Inc.

			
	 Date: July 28, 2005
	 	 	 	 Date: July 28, 2005

					
	 By:
	 	 /s/ Klaus Brill

	 	 	 	 By:
	 	 /s/ Glenn L. Cooper

	 Print Name:
	 	 Klaus Brill
	 	 	 	 Print Name:
	 	 Glenn L. Cooper

	 Title:
	 	 Head of Portfolio Management
	 	 	 	 Title:
	 	 Chairman and CEO

	 	 	 GBU Gynecology & Andrology
	 	 	 	 	 	 
					
	 By:
	 	 /s/ Dr. Hans-Joachim Riedel

	 	 	 	 	 	 
	 Print Name:
	 	 Dr. Hans-Joachim Riedel
	 	 	 	 	 	 
	 Title:
	 	 Head of Commercial Cooperations
	 	 	 	 	 	 

  

 - 38 - 

 SCHEDULE 1.23 
  
 Finished Product 
  
 [*], containing a fill volume of [*]ml, filled with a solution of testosterone undecanoate as active pharmaceutical ingredient and excipients ([*])
for [*]injection. Each ml solution contains [*]mg testosterone undecanoate corresponding to [*] mg [*]. Each [*]with [*]ml solution for injection contains [*]mg testosterone undecanoate.

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

 - 39 - 

 SCHEDULE 1.51 
  
 Schering Patents 
  

			
	US20050032762(A1):	 	Methods and pharmaceutical compositions for reliable achievement of acceptable serum testosterone levels

  

 - 40 - 

 SCHEDULE 1.63 
  
 Trademark 
  

			
	Word Mark	  	NEBIDO
		
	Goods and Services	  	International Class 05. G & S: Hormonal preparations
		
	Serial Number	  	76523122
	Filing Date	  	June 16, 2003
	Current Filing Basis	  	44E
	Original Filing Basis	  	1B;44E
		
	Registration Number	  	2932406
	Registration Date	  	March 15, 2005
	Owner	  	 (REGISTRANT) Schering Aktiengesellschaft CORPORATION
 FED REP GERMANY Berlin FED REP GERMANY 13342

  
 Nebido logo

  
 

 
  

 - 41 -Junior Subordinated Indenture, dated as of July 27, 2005

 Exhibit 4.1 

  
 JUNIOR SUBORDINATED INDENTURE 
  
 between 
  
 EXTRA SPACE STORAGE LP 
  
 and 
  
 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, 
 as Trustee 
  

  
 Dated as of July 27, 2005 
  

  

  

					
	 	 	 	 	 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE I
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	 
			
	 Section 1.1.
	  	 Definitions
	  	1
			
	 Section 1.2.
	  	 Compliance Certificate and Opinions
	  	9
			
	 Section 1.3.
	  	 Forms of Documents Delivered to Trustee
	  	9
			
	 Section 1.4.
	  	 Acts of Holders
	  	10
			
	 Section 1.5.
	  	 Notices, Etc. to Trustee and Company
	  	12
			
	 Section 1.6.
	  	 Notice to Holders; Waiver
	  	12
			
	 Section 1.7.
	  	 Effect of Headings and Table of Contents
	  	13
			
	 Section 1.8.
	  	 Successors and Assigns
	  	13
			
	 Section 1.9.
	  	 Separability Clause
	  	13
			
	 Section 1.10.
	  	 Benefits of Indenture
	  	13
			
	 Section 1.11.
	  	 Governing Law
	  	13
			
	 Section 1.12.
	  	 Submission to Jurisdiction
	  	13
			
	 Section 1.13.
	  	 Non-Business Days
	  	14
		
	 ARTICLE II
 SECURITY FORMS
	  	 
			
	 Section 2.1.
	  	 Form of Security
	  	14
			
	 Section 2.2.
	  	 Restricted Legend
	  	19
			
	 Section 2.3.
	  	 Form of Trustee’s Certificate of Authentication
	  	20
			
	 Section 2.4.
	  	 Temporary Securities
	  	21
			
	 Section 2.5.
	  	 Definitive Securities
	  	21
		
	 ARTICLE III
 THE SECURITIES
	  	 
			
	 Section 3.1.
	  	 Payment of Principal and Interest
	  	21
			
	 Section 3.2.
	  	 Denominations
	  	23
			
	 Section 3.3.
	  	 Execution, Authentication, Delivery and Dating
	  	23
			
	 Section 3.4.
	  	 Global Securities
	  	24
			
	 Section 3.5.
	  	 Registration, Transfer and Exchange Generally
	  	26
			
	 Section 3.6.
	  	 Mutilated, Destroyed, Lost and Stolen Securities
	  	28
			
	 Section 3.7.
	  	 Persons Deemed Owners
	  	28

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 Section 3.8.
	  	 Cancellation
	  	28
			
	 Section 3.9.
	  	 Reserved
	  	29
			
	 Section 3.10.
	  	 Reserved
	  	29
			
	 Section 3.11.
	  	 Agreed Tax Treatment
	  	29
			
	 Section 3.12.
	  	 CUSIP Numbers
	  	29
		
	 ARTICLE IV
 SATISFACTION AND DISCHARGE
	  	 
			
	 Section 4.1.
	  	 Satisfaction and Discharge of Indenture
	  	29
			
	 Section 4.2.
	  	 Application of Trust Money
	  	30
		
	 ARTICLE V
 REMEDIES
	  	 
			
	 Section 5.1.
	  	 Events of Default
	  	31
			
	 Section 5.2.
	  	 Acceleration of Maturity; Rescission and Annulment
	  	32
			
	 Section 5.3.
	  	 Collection of Indebtedness and Suits for Enforcement by Trustee
	  	33
			
	 Section 5.4.
	  	 Trustee May File Proofs of Claim
	  	33
			
	 Section 5.5.
	  	 Trustee May Enforce Claim Without Possession of Securities
	  	34
			
	 Section 5.6.
	  	 Application of Money Collected
	  	34
			
	 Section 5.7.
	  	 Limitation on Suits
	  	34
			
	 Section 5.8.
	  	Unconditional Right of Holders to Receive Principal, Premium, if any, and Interest; Direct Action by Holders of Preferred Securities	  	35
			
	 Section 5.9.
	  	 Restoration of Rights and Remedies
	  	35
			
	 Section 5.10.
	  	 Rights and Remedies Cumulative
	  	36
			
	 Section 5.11.
	  	 Delay or Omission Not Waiver
	  	36
			
	 Section 5.12.
	  	 Control by Holders
	  	36
			
	 Section 5.13.
	  	 Waiver of Past Defaults
	  	36
			
	 Section 5.14.
	  	 Undertaking for Costs
	  	37
			
	 Section 5.15.
	  	 Waiver of Usury, Stay or Extension Laws
	  	37
		
	 ARTICLE VI
 THE TRUSTEE
	  	 
			
	 Section 6.1.
	  	 Corporate Trustee Required
	  	37
			
	 Section 6.2.
	  	 Certain Duties and Responsibilities
	  	38

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 Section 6.3.
	  	 Notice of Defaults
	  	40
			
	 Section 6.4.
	  	 Certain Rights of Trustee
	  	40
			
	 Section 6.5.
	  	 May Hold Securities
	  	42
			
	 Section 6.6.
	  	 Compensation; Reimbursement; Indemnity
	  	42
			
	 Section 6.7.
	  	 Resignation and Removal; Appointment of Successor
	  	43
			
	 Section 6.8.
	  	 Acceptance of Appointment by Successor
	  	44
			
	 Section 6.9.
	  	 Merger, Conversion, Consolidation or Succession to Business
	  	44
			
	 Section 6.10.
	  	 Not Responsible for Recitals or Issuance of Securities
	  	44
			
	 Section 6.11.
	  	 Appointment of Authenticating Agent
	  	45
			
	 	  	 ARTICLE VII
 HOLDER’S LISTS AND REPORTS BY COMPANY
	  	 
			
	 Section 7.1.
	  	 Company to Furnish Trustee Names and Addresses of Holders
	  	46
			
	 Section 7.2.
	  	 Preservation of Information, Communications to Holders
	  	46
			
	 Section 7.3.
	  	 Reports by Company
	  	47
			
	 	  	 ARTICLE VIII
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	  	 
			
	 Section 8.1.
	  	 Company May Consolidate, Etc., Only on Certain Terms
	  	48
			
	 Section 8.2.
	  	 Successor Company Substituted
	  	48
			
	 	  	 ARTICLE IX
 SUPPLEMENTAL INDENTURES
	  	 
			
	 Section 9.1.
	  	 Supplemental Indentures without Consent of Holders
	  	49
			
	 Section 9.2.
	  	 Supplemental Indentures with Consent of Holders
	  	49
			
	 Section 9.3.
	  	 Execution of Supplemental Indentures
	  	50
			
	 Section 9.4.
	  	 Effect of Supplemental Indentures
	  	51
			
	 Section 9.5.
	  	 Reference in Securities to Supplemental Indentures
	  	51
			
	 	  	 ARTICLE X
 COVENANTS
	  	 
			
	 Section 10.1.
	  	 Payment of Principal, Premium, if any, and Interest
	  	51
			
	 Section 10.2.
	  	 Money for Security Payments to be Held in Trust
	  	51
			
	 Section 10.3.
	  	 Statement as to Compliance
	  	52
			
	 Section 10.4.
	  	 Calculation Agent
	  	53

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 Section 10.5.
	  	 Additional Tax Sums
	  	53
			
	 Section 10.6.
	  	 Additional Covenants
	  	54
			
	 Section 10.7.
	  	 Waiver of Covenants
	  	55
			
	 Section 10.8.
	  	 Treatment of Securities
	  	55
			
	 	  	 ARTICLE XI
 REDEMPTION OF SECURITIES
	  	 
			
	 Section 11.1.
	  	 Optional Redemption
	  	55
			
	 Section 11.2.
	  	 Special Event Redemption
	  	55
			
	 Section 11.3.
	  	 Election to Redeem; Notice to Trustee
	  	56
			
	 Section 11.4.
	  	 Selection of Securities to be Redeemed
	  	56
			
	 Section 11.5.
	  	 Notice of Redemption
	  	56
			
	 Section 11.6.
	  	 Deposit of Redemption Price
	  	57
			
	 Section 11.7.
	  	 Payment of Securities Called for Redemption
	  	57
			
	 	  	 ARTICLE XII
 SUBORDINATION OF SECURITIES
	  	 
			
	 Section 12.1.
	  	 Securities Subordinate to Senior Debt
	  	58
			
	 Section 12.2.
	  	 No Payment When Senior Debt in Default; Payment Over of Proceeds Upon Dissolution, Etc.
	  	58
			
	 Section 12.3.
	  	 Payment Permitted If No Default
	  	59
			
	 Section 12.4.
	  	 Subrogation to Rights of Holders of Senior Debt
	  	60
			
	 Section 12.5.
	  	 Provisions Solely to Define Relative Rights
	  	60
			
	 Section 12.6.
	  	 Trustee to Effectuate Subordination
	  	61
			
	 Section 12.7.
	  	 No Waiver of Subordination Provisions
	  	61
			
	 Section 12.8.
	  	 Notice to Trustee
	  	61
			
	 Section 12.9.
	  	 Reliance on Judicial Order or Certificate of Liquidating Agent
	  	62
			
	 Section 12.10.
	  	 Trustee Not Fiduciary for Holders of Senior Debt
	  	62
			
	 Section 12.11.
	  	 Rights of Trustee as Holder of Senior Debt; Preservation of Trustee’s Rights
	  	62
			
	 Section 12.12.
	  	 Article Applicable to Paying Agents
	  	62

  

 -iv- 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page

	 SCHEDULES
	 	 	  	 	  	 
				
	 Schedule A
	 	 -
	  	 Determination of LIBOR
	  	 
				
	 Exhibit A
	 	 -
	  	 Form of General Partner’s Financial Certificate
	  	 

  

					
	 	 	-i-	 	 

 JUNIOR SUBORDINATED INDENTURE, dated as of July 27, 2005,
between Extra Space Storage LP, a Delaware limited partnership (the “Company”), and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a New York banking
corporation, as Trustee (in such capacity, the “Trustee”). 
  
 RECITALS OF THE COMPANY 
  
 WHEREAS, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of its unsecured junior
subordinated notes (the “Securities”) issued to evidence loans made to the Company of the proceeds from the issuance by ESS Statutory Trust III, a Delaware statutory trust (the “Trust”), of undivided preferred
beneficial interests in the assets of the Trust (the “Preferred Securities”) and undivided common beneficial interests in the assets of the Trust (the “Common Securities” and, collectively with the Preferred
Securities, the “Trust Securities”), and to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered; and 
  
 WHEREAS, all things necessary to make this Indenture a valid agreement of the Company, in accordance with its
terms, have been done. 
  
 NOW,
THEREFORE, this Indenture Witnesseth: 
  
 For and
in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities, as follows: 
  
 ARTICLE I 
  
 DEFINITIONS AND OTHER PROVISIONS OF
GENERAL APPLICATION 
  
 SECTION 1.1.
Definitions. 
  
 For all purposes of this Indenture, except
as otherwise expressly provided or unless the context otherwise requires: 
  
 (a) the terms defined in this Article I have the meanings assigned to them in this Article I; 
  
 (b) the words “include”, “includes” and “including” shall be deemed to be followed by the phrase
“without limitation”; 
  
 (c) all
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP; 
  
 (d) unless the context otherwise requires, any reference to an “Article” or a “Section” refers to an Article or a
Section, as the case may be, of this Indenture; 
  
 (e) the words “hereby”, “herein”, “hereof and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; 

 

					
	 	 	1	 	 

 (f) a reference to the singular includes the plural and vice versa; and 
  
 (g) the masculine, feminine or neuter genders used herein
shall include the masculine, feminine and neuter genders. 
  
 “Act” when used with respect to any Holder, has the meaning specified in Section 1.4. 
  
 “Administrative Trustee” means, with respect to the Trust, each Person identified as an “Administrative Trustee” in the Trust
Agreement, solely in its capacity as Administrative Trustee of the Trust under the Trust Agreement and not in its individual capacity, or its successor in interest in such capacity, or any successor Administrative Trustee appointed as therein
provided. 
  
 “Additional Interest” means the
interest, if any, that shall accrue on any amounts payable on the Securities, the payment of which has not been made on the applicable Interest Payment Date and which shall accrue at the rate per annum specified or determined as specified in such
Security, in each case to the extent legally enforceable. 
  
 “Additional Tax Sums” has the meaning specified in Section 10.5. 
  
 “Additional Taxes” means taxes, duties or other governmental charges imposed on the Trust as a result of a Tax Event (which, for the sake
of clarity, does not include amounts required to be deducted or withheld by the Trust from payments made by the Trust to or for the benefit of the Holder of, or any Person that acquires a beneficial interest in, the Securities). 
  
 “Affiliate” of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control,” when used with respect to any specified Person, means the power to
direct 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. 
  
 “Applicable Depositary Procedures”
means, with respect to any transfer or transaction involving a Global Security or beneficial interest therein, the rules and procedures of the Depositary for such Security, in each case to the extent applicable to such transaction and as in
effect from time to time. 
  
 “Authenticating Agent”
means any Person authorized by the Trustee pursuant to Section 6.11 to act on behalf of the Trustee to authenticate the Securities. 
  
 “Bankruptcy Code” means Title 11 of the United States Code or any successor statute(s) thereto, or any similar federal or state law for
the relief of debtors, in each case as amended from time to time. 
  
 “Business Day” means any day other than (i) a Saturday or Sunday, (ii) a day on which banking institutions in the City of New York are authorized or required by law or executive order to remain closed or (iii) a day on
which the Corporate Trust Office of the Trustee is closed for business. 
  
 “Calculation Agent” has the meaning specified in Section 10.4. 
  

					
	 	 	2	 	 

 “Common Securities” has the meaning specified in the first recital of this Indenture.

  
 “Company” means the Person named as the
“Company” in the first paragraph of this Indenture until a successor entity shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor entity.

  
 “Company Parent” means Extra Space Storage,
Inc., a Maryland corporation. 
  
 “Company Request”
and “Company Order” mean, respectively, the written request or order signed in the name of the Company by a trustee of its General Partner, and delivered to the Trustee. 
  
 “Corporate Trust Office” means the principal office of the
Trustee at which at any particular time its corporate trust business shall be administered, which office at the date of this Indenture is located at 600 Travis, 50th Floor, Houston, Texas 77019 Attn: Worldwide Securities Services—ESS Statutory Trust III. 
  
 “Debt” means, with respect to any Person, whether recourse is to all or a portion of the assets of such Person, whether currently
existing or hereafter incurred and whether or not contingent and without duplication, (i) every obligation of such Person for money borrowed; (ii) every obligation of such Person evidenced by bonds, debentures, notes or other similar instruments,
including obligations incurred in connection with the acquisition of property, assets or businesses; (iii) every reimbursement obligation of such Person with respect to letters of credit, bankers’ acceptances or similar facilities issued for
the account of such Person; (iv) every obligation of such Person issued or assumed as the deferred purchase price of property or services (but excluding trade accounts payable or other accrued liabilities arising in the ordinary course of business);
(v) every capital lease obligation of such Person; (vi) all indebtedness of such Person, whether incurred on or prior to the date of this Indenture or thereafter incurred, for claims in respect of derivative products, including interest rate,
foreign exchange rate and commodity forward contracts, options and swaps and similar arrangements; (vii) every obligation of the type referred to in clauses (i) through (vi) of another Person and all dividends of another Person the payment of which,
in either case, such Person has guaranteed or is responsible or liable for, directly or indirectly, as obligor or otherwise; and (viii) any renewals, extensions, refundings, amendments or modifications of any obligation of the type referred to in
clauses (i) through (vii). 
  
 “Defaulted Interest”
has the meaning specified in Section 3.1. 
  
 “Delaware Trustee” means, with respect to the Trust, the Person identified as the “Delaware Trustee” in the Trust Agreement, solely in its capacity as Delaware Trustee of the Trust under the Trust Agreement and
not in its individual capacity, or its successor in interest in such capacity, or any successor Delaware Trustee appointed as therein provided. 
  
 “Depositary” means an organization registered as a clearing agency under the Exchange Act that is designated as Depositary by the Company
or any successor thereto. DTC will be the initial Depositary. 
  

					
	 	 	3	 	 

 “Depositary Participant” means a broker, dealer, bank, other financial institution or
other Person for whom from time to time a Depositary effects book-entry transfers and pledges of securities deposited with the Depositary. 
  
 “Distributions” means amounts payable in respect of the Trust Securities as provided in the Trust Agreement and referred to therein as
“Distributions.” 
  
 “Dollar” or
“$” means the currency of the United States of America that, as at the time of payment, is legal tender for the payment of public and private debts. 
  
 “DTC” means The Depository Trust Company, a New York corporation, or any successor thereto. 
  
 “Event of Default” has the meaning specified in Section
5.1. 
  
 “Exchange Act” means the Securities
Exchange Act of 1934 or any successor statute thereto, in each case as amended from time to time. 
  
 “Expiration Date” has the meaning specified in Section 1.4.  
  
 “Fixed Rate Period” has the meaning specified in Section 2.1. 
  
 “GAAP” means United States generally accepted accounting
principles, consistently applied, from time to time in effect. 
  
 “General Partner” means ESS Holdings Business Trust I, a Massachusetts business trust, and its successors and assigns, as the general partner of the Company. 
  
 “General Partner Resolution” means a copy of a resolution certified by a trustee of the General Partner to
have been duly adopted by the General Partner on behalf of the Company and to be in full force and effect on the date of such certification. 
  
 “Global Security” means a Security that evidences all or part of the Securities, the ownership and transfers of which shall be made
through book entries by a Depositary. 
  
 “Government
Obligation” means (a) any security that is (i) a direct obligation of the United States of America of which the full faith and credit of the United States of America is pledged or (ii) an obligation of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America or the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case (i) or (ii), is not
callable or redeemable at the option of the issuer thereof, and (b) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any Government Obligation that is specified in clause (a)
above and held by such bank for the account of the holder of such depositary receipt, or with respect to any specific payment of principal of or interest on any Government Obligation that is so specified and held, provided, that (except as
required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Government Obligation or the specific payment of
principal or interest evidenced by such depositary receipt. 
  

					
	 	 	4	 	 

 “Holder” means a Person in whose name a Security is registered in the Securities
Register. 
  
 “Indenture” means this instrument
as originally executed or as it may from time to time be amended or supplemented by one or more amendments or indentures supplemental hereto entered into pursuant to the applicable provisions hereof. 
  
 “Interest Payment Date” means January 30, April 30, July 30,
and October 30 of each year, commencing on October 30, 2005, during the term of this Indenture. 
  
 “Investment Company Act” means the Investment Company Act of 1940 or any successor statute thereto, in each case as amended from time to
time. 
  
 “Investment Company Event” means the
receipt by the Company of an Opinion of Counsel experienced in such matters to the effect that, as a result of the occurrence of a change in law or regulation (including any announced prospective change) or a written change in interpretation or
application of law or regulation by any legislative body, court, governmental agency or regulatory authority, there is more than an insubstantial risk that the Trust is or, within ninety (90) days of the date of such opinion will be, considered an
“investment company” that is required to be registered under the Investment Company Act, which change or prospective change becomes effective or would become effective, as the case may be, on or after the date of the issuance of the
Securities. 
  
 “LIBOR” has the meaning specified
in Schedule A.  
  
 “LIBOR Business
Day” has the meaning specified in Schedule A.  
  
 “LIBOR Determination Date” has the meaning specified in Schedule A.  
  
 “Liquidation Amount” has the meaning specified in the Trust Agreement. 
  
 “Maturity,” when used with respect to any Security, means the date on which the principal of such Security
or any installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 
  
 “Notice of Default” means a written notice of the kind specified in Section 5.1(c). 
  
 “Officers’ Certificate” means a certificate signed by a
trustee of the General Partner and delivered to the Trustee. 
  
 “Operative Documents” means the Trust Agreement, the Indenture, the Purchase Agreements and the Securities. 
  
 “Opinion of Counsel” means a written opinion of counsel, who may be counsel for or an employee of the Company or any Affiliate of the
Company. 
  
 “Optional Redemption Price” has the
meaning set forth in Section 11.1. 
  

					
	 	 	5	 	 

 “Original Issue Date” means the date of original issuance of each Security. 

 
 “Outstanding” means, when used in reference to any
Securities, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except: 
  
 (i) Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 
  
 (ii) Securities for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such
Securities; provided, that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and 
  
 (iii) Securities that have been paid or in substitution for
or in lieu of which other Securities have been authenticated and delivered pursuant to the provisions of this Indenture, unless proof satisfactory to the Trustee is presented that any such Securities are held by Holders in whose hands such
Securities are valid, binding and legal obligations of the Company; 
  
 provided, that in determining whether the Holders of the requisite principal amount of Outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Securities owned by the
Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only Securities that a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Securities so owned that have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or such other obligor. Notwithstanding anything herein to the contrary, Securities initially issued to the Trust that are owned by the Trust shall be deemed to be Outstanding notwithstanding the ownership by the Company or
an Affiliate of any beneficial interest in the Trust. 
  
 “Paying Agent” means the Trustee or any Person authorized by the Company to pay the principal of or any premium or interest on, or other amounts in respect of, any Securities on behalf of the Company. 
  
 “Person” means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated association, government or any agency or political subdivision thereof, or any other entity of whatever nature.

  
 “Place of Payment” means, with respect to the
Securities, the Corporate Trust Office of the Trustee. 
  

					
	 	 	6	 	 

 “Preferred Securities” has the meaning specified in the first recital of this Indenture.

  
 “Predecessor Security” of any particular
Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security. For the purposes of this definition, any security authenticated and delivered under Section 3.6 in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security. 
  
 “Proceeding” has the meaning specified in Section 12.2. 
  
 “Property Trustee” means the Person identified as the “Property Trustee” in the Trust Agreement,
solely in its capacity as Property Trustee of the Trust under the Trust Agreement and not in its individual capacity, or its successor in interest in such capacity, or any successor Property Trustee appointed as therein provided. 
  
 “Purchase Agreements” means the agreements between the
Company, the Trust and Purchaser(s) named therein. 
  
 “Redemption Date” means, when used with respect to any Security to be redeemed, the date fixed for such redemption by or pursuant to this Indenture. 
  
 “Redemption Price” means, when used with respect to any Security to be redeemed, in whole or in part, the
Special Redemption Price or the Optional Redemption Price, as applicable, at which such Security or portion thereof is to be redeemed as fixed by or pursuant to this Indenture. 
  
 “Reference Banks” has the meaning specified in Schedule A. 
  
 “Regular Record Date” for the interest payable on any
Interest Payment Date with respect to the Securities means the date that is fifteen (15) days preceding such Interest Payment Date (whether or not a Business Day). 
  
 “Responsible Officer” means, when used with respect to the Trustee, the officer in the Institutional Trust
Services department of the Trustee having direct responsibility for the administration of this Indenture. 
  
 “Securities” or “Security” means any debt securities or debt security, as the case may be, authenticated and delivered
under this Indenture. 
  
 “Securities Act” means
the Securities Act of 1933 or any successor statute thereto, in each case as amended from time to time. 
  
 “Securities Register” and “Securities Registrar” have the respective meanings specified in Section 3.5.

  
 “Senior Debt” means the principal of and any
premium and interest on (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company, whether or not such claim for post-petition interest is allowed in such proceeding) all Debt of
the Company, whether incurred on or prior to the date of this Indenture or thereafter 

  

					
	 	 	7	 	 

 
incurred, unless it is provided in the instrument creating or evidencing the same or pursuant to which the same is outstanding, that such obligations are not
superior in right of payment to the Securities issued under this Indenture; provided, that Senior Debt shall not be deemed to include any other debt securities (and guarantees, if any), in respect of such debt securities issued to any trust
other than the Trust (or a trustee of any such trust), partnership or other entity affiliated with the Company that is a financing vehicle of the Company (a “financing entity”) in connection with the issuance by such financing entity of
equity securities or other securities pursuant to an instrument that ranks pari passu with or junior in right of payment to this Indenture. 
  
 “Special Event” means the occurrence of an Investment Company Event or a Tax Event. 
  
 “Special Record Date” for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 3.1. 
  
 “Special Redemption Price” has the meaning set forth in Section 11.2.  
  
 “Stated Maturity” means July 30, 2035. 
  
 “Subsidiary” means a Person more than fifty percent (50%) of the outstanding voting stock or other voting interests of which is owned,
directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. For purposes of this definition, “voting stock” means stock that ordinarily has voting power for the
election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 
  
 “Tax Event” means the receipt by the Company of an Opinion of Counsel experienced in such matters to the effect that, as a result of (a)
any amendment to or change (including any announced prospective change) in the laws or any regulations thereunder of the United States or any political subdivision or taxing authority thereof or therein or (b) any judicial decision or any official
administrative pronouncement (including any private letter ruling, technical advice memorandum or field service advice) or regulatory procedure, including any notice or announcement of intent to adopt any such pronouncement or procedure (an
“Administrative Action”), regardless of whether such judicial decision or Administrative Action is issued to or in connection with a proceeding involving the Company or the Trust and whether or not subject to review or
appeal, which amendment, change, judicial decision or Administrative Action is enacted, promulgated or announced, in each case, on or after the date of issuance of the Securities, there is more than an insubstantial risk that (i) the Trust is, or
will be within ninety (90) days of the date of such opinion, subject to United States federal income tax with respect to income received or accrued on the Securities, (ii) interest payable by the Company on the Securities is not, or within ninety
(90) days of the date of such opinion, will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes, or (iii) the Trust is, or will be within ninety (90) days of the date of such opinion, subject to more
than a de minimis amount of other taxes, duties or other governmental charges. 
  
 “Trust” has the meaning specified in the first recital of this Indenture. 
  
 “Trust Agreement” means the Amended and Restated Trust Agreement executed and delivered by the Company, the Property Trustee, the
Delaware Trustee and the Administrative Trustees named therein, contemporaneously with the execution and delivery of this Indenture, 

  

					
	 	 	8	 	 

 
for the benefit of the holders of the Trust Securities, as amended or supplemented from time to time. 
  
 “Trustee” means the Person named as the
“Trustee” in the first paragraph of this Indenture, solely in its capacity as such and not in its individual capacity, until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and,
thereafter, “Trustee” shall mean or include each Person who is then a Trustee hereunder. 
  
 “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended and as in effect on the date as of this Indenture. 
  
 “Trust Securities” has the meaning specified in the first
recital of this Indenture. 
  
 SECTION 1.2. Compliance
Certificate and Opinions. 
  
 (a) Upon any application or
request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall, if requested by the Trustee, furnish to the Trustee an Officers’ Certificate stating that all conditions precedent (including
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 an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent (including covenants compliance with which constitutes a condition precedent), if any, have been complied with. 
  
 (b) Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than the certificate
provided pursuant to Section 10.3) shall include: 
  
 (i) a statement by each individual signing such certificate or opinion that such individual has read such covenant or condition and the definitions herein relating thereto; 
  
 (ii) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions of such individual contained in such certificate or opinion are based; 
  
 (iii) a statement that, in the opinion of such individual, 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 
  
 (iv) a statement as to whether, in the opinion of such individual, such condition or covenant has been complied with. 
  
 SECTION 1.3. Forms of Documents Delivered to Trustee. 
  
 (a) In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  

					
	 	 	9	 	 

 (b) Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal
matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or after reasonable inquiry should know, that the certificate or opinion or representations with respect to matters upon which his or her
certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating
that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or after reasonable inquiry should know, that the certificate or opinion or representations with respect to such matters are
erroneous. 
  
 (c) Where any Person is required to make, give or
execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
  
 (d) Whenever, subsequent to the receipt by the Trustee of any Board
Resolution, Officers’ Certificate, Opinion of Counsel or other document or instrument, a clerical, typographical or other inadvertent or unintentional error or omission shall be discovered therein, a new document or instrument may be
substituted therefor in corrected form with the same force and effect as if originally received in the corrected form and, irrespective of the date or dates of the actual execution and/or delivery thereof, such substitute document or instrument
shall be deemed to have been executed and/or delivered as of the date or dates required with respect to the document or instrument for which it is substituted. Without limiting the generality of the foregoing, any Securities issued under the
authority of such defective document or instrument shall nevertheless be the valid obligations of the Company entitled to the benefits of this Indenture equally and ratably with all other Outstanding Securities. 
  
 SECTION 1.4. Acts of Holders. 
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given to or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent thereof duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments (including any appointment of an agent) is or are delivered to the Trustee, and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section 1.4. 
  
 (b) The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or
writing acknowledged to him or her the execution thereof. Where such execution is by a Person acting in other than his or her individual capacity, such certificate or affidavit shall also constitute sufficient proof of his or her authority. The fact
and date of the execution by any Person of any such instrument or writing, or the authority of the 

  

					
	 	 	10	 	 

 
Person executing the same, may also be proved in any other manner that the Trustee deems sufficient and in accordance with such reasonable rules as the
Trustee may determine. 
  
 (c) The ownership of Securities shall
be proved by the Securities Register. 
  
 (d) Any request, demand,
authorization, direction, notice, consent, waiver or other action by the Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done or suffered to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
  
 (e) Without limiting the foregoing, a Holder entitled to take any action
hereunder with regard to any particular Security may do so with regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any
part of such principal amount. 
  
 (f) Except as set forth in
paragraph (g) of this Section 1.4, the Company may set any day as a record date for the purpose of determining the Holders of Outstanding Securities entitled to give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be given, made or taken by Holders of Securities. If any record date is set pursuant to this paragraph, the Holders of Outstanding Securities on such record date, and no
other Holders, shall be entitled to take the relevant action, whether or not such Holders remain Holders after such record date; provided, that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration
Date (as defined in Section 1.4(h)) by Holders of the requisite principal amount of Outstanding Securities on such record date. Nothing in this paragraph shall be construed to prevent the Company from setting a new record date for any action
for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person be canceled and of no effect). Promptly after any record date is set pursuant
to this paragraph, the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Trustee in writing and to each Holder of Securities in the manner set
forth in Section 1.6. 
  
 (g) The Trustee may set any day
as a record date for the purpose of determining the Holders of Outstanding Securities entitled to join in the giving or making of (i) any Notice of Default, (ii) any declaration of acceleration or rescission or annulment thereof referred to in
Section 5.2, (iii) any request to institute proceedings referred to in Section 5.7(b) or (iv) any direction referred to in Section 5.12. If any record date is set pursuant to this paragraph, the Holders of Outstanding Securities
on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction, whether or not such Holders remain Holders after such record date; provided, that no such action shall be effective
hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities on such record date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a new
record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person be canceled and of no effect). Promptly after any
record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration 

  

					
	 	 	11	 	 

 
Date to be given to the Company in writing and to each Holder of Securities in the manner set forth in Section 1.6. 
  
 (h) With respect to any record date set pursuant to paragraph (f) or (g) of
this Section 1.4, the party hereto that sets such record date may designate any day as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or later day; provided, that no such
change shall be effective unless notice of the proposed new Expiration Date is given to the other party hereto in writing, and to each Holder of Securities in the manner set forth in Section 1.6, on or prior to the existing Expiration Date.
If an Expiration Date is not designated with respect to any record date set pursuant to this Section 1.4, the party hereto that set such record date shall be deemed to have initially designated the ninetieth (90th) day after such record date as the Expiration Date with respect thereto, subject to its right to change the Expiration Date as
provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the one hundred eightieth (180th) day after the applicable record date. 
  
 SECTION 1.5. Notices, Etc. to Trustee and Company. 
  
 Any request, demand, authorization, direction, notice, consent, waiver, Act of Holders, or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with: 
  
 (a) the Trustee by any Holder, any holder of Preferred Securities or the
Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with and received by the Trustee at its Corporate Trust Office, or 
  
 (b) the Company by the Trustee, any Holder or any holder of Preferred Securities shall be sufficient for every purpose
hereunder if in writing and mailed, first class, postage prepaid, to the Company (to the attention of its General Counsel) addressed to it at 2795 East Cottonwood Parkway, Suite 400, Salt Lake City, UT 84121 or at any other address previously
furnished in writing to the Trustee by the Company. 
  
 SECTION
1.6. Notice to Holders; Waiver. 
  
 Where this Indenture
provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first class, postage prepaid, to each Holder affected by such event to the address of such
Holder as it appears in the Securities Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. If, by reason of the suspension of or irregularities in regular mail service or for
any other reason, it shall be impossible or impracticable to mail notice of any event to Holders when said notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to
the Trustee shall be deemed to be a sufficient giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 
  

					
	 	 	12	 	 

 SECTION 1.7. Effect of Headings and Table of Contents. 
  
 The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction of this Indenture. 
  
 SECTION 1.8. Successors and Assigns. 
  
 This Indenture shall be binding upon and shall inure to the benefit of any successor to the Company and the Trustee, including any successor by operation of law. Except in connection with a transaction involving the
Company that is permitted under Article VIII and pursuant to which the assignee agrees in writing to perform the Company’s obligations hereunder, the Company shall not assign its obligations hereunder. 
  
 SECTION 1.9. Separability Clause. 
  
 If any provision in this Indenture or in the Securities shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby, and there shall be deemed substituted for the provision at issue a valid, legal and enforceable
provision as similar as possible to the provision at issue. 
  
 SECTION 1.10. Benefits of Indenture. 
  
 Nothing
in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their successors and assigns, the holders of Senior Debt, the Holders of the Securities and, to the extent expressly provided in
Sections 5.2, 5.8, 5.9, 5.11, 5.13, 9.2 and 10.7, the holders of Preferred Securities, any benefit or any legal or equitable right, remedy or claim under this Indenture. 
  
 SECTION 1.11. Governing Law. 
  
 This Indenture and the rights and obligations of each of the Holders, the
Company and the Trustee shall be construed and enforced in accordance with and governed by the laws of the State of New York without reference to its conflict of laws provisions (other than Section 5-1401 of the General Obligations Law).

  
 SECTION 1.12. Submission to Jurisdiction. 
  
 ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT
TO OR ARISING OUT OF THIS INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH
OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS INDENTURE, EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND 

  

					
	 	 	13	 	 

 
COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS INDENTURE. 
  
 SECTION 1.13. Non-Business Days. 
  
 If any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day, then (notwithstanding any other provision of this Indenture or the Securities) payment of interest, premium, if any, or principal or other amounts in respect of such Security shall not be made on such date, but
shall be made on the next succeeding Business Day (and no interest shall accrue in respect of the amounts whose payment is so delayed for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be,
until such next succeeding Business Day) except that, if such Business Day falls in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on
the Interest Payment Date or Redemption Date or at the Stated Maturity. 
  
 ARTICLE II 
  
 SECURITY
FORMS 
  
 SECTION 2.1. Form of Security. 

  
 Any Security issued hereunder shall be in substantially the
following form: 
  
 Extra Space Storage LP 
  
 Unsecured Junior Subordinated Note due 2035 
  

				
	 No.
                                
	  	$	41,238,000

  
 Extra Space Storage
LP, a Delaware limited partnership (hereinafter called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                                        ,
or registered assigns, the principal sum of Forty One Million Two Hundred Thirty Eight Thousand Dollars ($41,238,000) [if the Security is a Global Security, then insert— or such other principal amount represented hereby
as may be set forth in the records of the Securities Registrar hereinafter referred to in accordance with the Indenture] on July 30, 2035. The Company further promises to pay interest on said principal sum from July 27, 2005, or from the most
recent Interest Payment Date to which interest has been paid or duly provided for, quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, commencing October 30, 2005, or if any such day is not a Business Day, on the next
succeeding Business Day (and no interest shall accrue in respect of the amounts whose payment is so delayed for the period from and after such Interest Payment Date until such next succeeding Business Day), except that, if such Business Day falls in
the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case, with the same force and effect as if made on the Interest Payment Date, at a fixed rate equal to 6.91% per annum through the
interest payment date on July 30, 2010 (“Fixed Rate Period”), and thereafter at a variable rate equal to LIBOR plus 2.40% per annum, together with Additional Tax Sums, if any, as provided in Section 10.5 of the Indenture,
until the principal hereof is paid or duly provided for or made available for 

  

					
	 	 	14	 	 

 
payment; provided, further, that any overdue principal, premium, if any, or Additional Tax Sums and any overdue installment of interest shall bear
Additional Interest at a fixed rate equal to 6.91% per annum through the interest payment date on July 30, 2010, and thereafter at a variable rate equal to LIBOR plus 2.40% per annum (to the extent that the payment of such interest shall be legally
enforceable), compounded quarterly, from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand. 
  
 The amount of interest payable on any Interest Payment Date shall be computed during the Fixed Rate Period on the basis of a
360-day year of twelve 30-day months, and thereafter on the basis of a 360-day year and the actual number of days elapsed in the relevant interest period. The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date shall, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest installment. Any such interest
not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities not less than ten (10) days prior to such Special Record Date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.

  
 During an Event of Default, the Company shall not (i) declare
or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of the Company’s capital stock (for avoidance of doubt, the term “capital stock” with respect to the Company
shall include any ownership interest in the Company, including without limitation equity partnership units of any kind) or (ii) make any payment of principal of or any interest or premium, if any, on or repay, repurchase or redeem any debt
securities of the Company that rank pari passu in all respects with or junior in interest to this Security (other than (a) repurchases, redemptions or other acquisitions of shares of capital stock of the Company in connection with (1) any
employment contract, benefit plan or other similar arrangement with or for the benefit of any one or more employees, officers, directors or consultants, (2) a dividend reinvestment or stockholder stock purchase plan and (3) the issuance of capital
stock of the Company (or securities convertible into or exercisable for such capital stock) as consideration in an acquisition transaction entered into prior to such Event of Default, (b) as a result of an exchange or conversion of any class or
series of the Company’s capital stock (or any capital stock of a Subsidiary of the Company) for any class or series of the Company’s capital stock or of any class or series of the Company’s indebtedness for any class or series of the
Company’s capital stock, (c) the purchase of fractional interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (d) any
declaration of a dividend in connection with any rights plan, the issuance of rights, stock or other property under any rights plan, or the redemption or repurchase of rights pursuant thereto or (e) any dividend in the form of stock, warrants,
options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such stock).

  

					
	 	 	15	 	 

 Payment of principal of, premium, if any, and interest on this Security shall be made 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. Payments of principal, premium, if any, and interest due at the Maturity of this Security shall be made at the Place of
Payment upon surrender of such Securities to the Paying Agent, and payments of interest shall be made, subject to such surrender where applicable, by wire transfer at such place and to such account at a banking institution in the United States as
may be designated in writing to the Paying Agent at least ten (10) Business Days prior to the date for payment by the Person entitled thereto unless proper written transfer instructions have not been received by the relevant record date, in which
case such payments shall be made by check mailed to the address of such Person as such address shall appear in the Security Register. Notwithstanding the foregoing, so long as the Holder of this Security is the Property Trustee, the payment of the
principal of (and premium, if any) and interest (including any overdue installment of interest and Additional Tax Sums, if any) on this Security will be made at such place and to such account as may be designated by the Property Trustee. 

 
 The indebtedness evidenced by this Security is, to the extent provided in
the Indenture, subordinate and junior in right of payment to the prior payment in full of all Senior Debt, and this Security is issued subject to the provisions of the Indenture with respect thereto. Each Holder of this Security, by accepting the
same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on his or her behalf to take such actions as may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee
his or her attorney-in-fact for any and all such purposes. Each Holder hereof, by his or her acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Debt,
whether now outstanding or hereafter incurred, and waives reliance by each such holder upon said provisions. 
  
 Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 
  
 [FORM OF REVERSE OF SECURITY] 
  
 This Security is
one of a duly authorized issue of securities of the Company (the “Securities”) issued under the Junior Subordinated Indenture, dated as of July 27, 2005 (the “Indenture”), between the Company and JPMorgan Chase
Bank, National Association, as Trustee (in such capacity, the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, the holders of Senior Debt, the Holders of the Securities and the holders of the Preferred Securities, and of the terms upon
which the Securities are, and are to be, authenticated and delivered. 
  
 All terms used in this Security that are defined in the Indenture or in the Amended and Restated Trust Agreement, dated as of July 27, 2005 (as modified, amended or supplemented from time to time, the “Trust Agreement”),
relating to the ESS Statutory Trust III (the “Trust”) among the Company, as Depositor, the Trustees named therein and the Holders from time to time of the Trust Securities issued pursuant thereto, shall have the meanings
assigned to them in the Indenture or the Trust Agreement, as the case may be. 
  

					
	 	 	16	 	 

 The Company may, on any Interest Payment Date, at its option, upon not less than thirty (30) days’
nor more than sixty (60) days’ written notice to the Holders of the Securities (unless a shorter notice period shall be satisfactory to the Trustee) on or after July 30, 2010, and subject to the terms and conditions of Article XI of the
Indenture, redeem this Security in whole at any time or in part from time to time at a Redemption Price equal to one hundred percent (100%) of the principal amount hereof, together, in the case of any such redemption, with accrued interest,
including any Additional Interest, through but excluding the date fixed as the Redemption Date. 
  
 In addition, upon the occurrence and during the continuation of a Special Event, the Company may, at its option, upon not less than thirty (30) days’
nor more than sixty (60) days’ written notice to the Holders of the Securities (unless a shorter notice period shall be satisfactory to the Trustee), redeem this Security, in whole but not in part, subject to the terms and conditions of
Article XI of the Indenture at a Redemption Price equal to one hundred seven and one half percent (107.5%) of the principal amount hereof, together, in the case of any such redemption, with accrued interest, including any Additional Interest,
through but excluding the date fixed as the Redemption Date. 
  
 In the event of redemption of this Security in part only, a new Security or Securities for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. If less than all the Securities are to be
redeemed, the particular Securities to be redeemed shall be selected not more than sixty (60) days prior to the Redemption Date by the Trustee from the Outstanding Securities not previously called for redemption, by such method as the Trustee shall
deem fair and appropriate and which may provide for the selection for redemption of a portion of the principal amount of any Security. 
  
 The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee at any time to enter into a supplemental indenture or
indentures for the purpose of modifying in any manner the rights and obligations of the Company and of the Holders of the Securities, with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities. The
Indenture also contains provisions permitting Holders of specified percentages in principal amount of the Securities, on behalf of the Holders of all Securities, to waive compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 
  
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium, if any, and interest, including any Additional Interest (to the extent legally enforceable), on this Security at the times, place and rate, and in the coin or currency, herein
prescribed. 
  
 As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Security is restricted to transfers to “Qualified Purchasers” (as such term is defined in the Investment Company Act of 1940, as amended), and is registrable in the Securities
Register, upon surrender of this Security for registration of transfer at the office or agency of the 

  

					
	 	 	17	 	 

 
Company maintained for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the
Securities Registrar and duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Securities, of like tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees. 
  
 The Securities are issuable only in registered form without coupons in minimum denominations of $100,000 and any integral multiple of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set
forth, Securities are exchangeable for a like aggregate principal amount of Securities and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 
  
 No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
  
 The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof
for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
  

The Company and, by its acceptance of this Security or a beneficial interest herein, the Holder of, and any Person that acquires a beneficial interest
in, this Security agree that, for United States federal, state and local tax purposes, it is intended that this Security constitute indebtedness. 
  
 This Security shall be construed and enforced in accordance with and governed by the laws of the State of New York, without reference to its conflict
of laws provisions (other than Section 5-1401 of the General Obligations Law). 
  
 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed on this              day of
                    , 20    . 
  

			
	 Extra Space Storage LP

		
	By:	 	 ESS Holdings Business Trust I

	 Its:
	 	 General Partner

  

			
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

					
	 	 	18	 	 

 SECTION 2.2. Restricted Legend. 
  
 (a) Any Security issued hereunder shall bear a legend in substantially the following form: 
  
 “[IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN
THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO
DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 
  
 UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND SUCH SECURITIES, AND ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY SECURITIES IS
HEREBY NOTIFIED THAT THE SELLER OF THE SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT. 
  
 THE HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITIES
MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE COMPANY OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED),
AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
  
 THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000 AND 

  

					
	 	 	19	 	 

 
MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH
PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE
DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH SECURITIES. 
  
 THE
HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING
ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE
SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE,
A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE.” 
  
 (b) The above legends shall not be removed from any Security unless there is
delivered to the Company satisfactory evidence, which may include an Opinion of Counsel, as may be reasonably required to ensure that any future transfers thereof may be made without restriction under or violation of the provisions of the Securities
Act and other applicable law. Upon provision of such satisfactory evidence, the Company shall execute and deliver to the Trustee, and the Trustee shall deliver, upon receipt of a Company Order directing it to do so, a Security that does not bear the
legend. 
  
 SECTION 2.3. Form of Trustee’s Certificate of
Authentication.  
  
 The Trustee’s certificate of
authentication shall be in substantially the following form: 
  
 This is one of the Securities referred to in the within-mentioned Indenture. 
  
 Dated:
                                        

  

					
	 	 	20	 	 

			
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, not in its individual capacity, but solely as Trustee
		
	By:	 	 
	 	 	Authorized signatory

  
 SECTION 2.4.
Temporary Securities. 
  
 (a) Pending the preparation of
definitive Securities, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any denomination,
substantially of the tenor of the definitive Securities in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by
their execution of such Securities. 
  
 (b) If temporary
Securities are issued, the Company will cause definitive Securities to be prepared without unreasonable delay. After the preparation of definitive Securities, the temporary Securities shall be exchangeable for definitive Securities upon surrender of
the temporary Securities at the office or agency of the Company designated for that purpose without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor one or more definitive Securities of any authorized denominations having the same Original Issue Date and Stated Maturity and having the same terms as such temporary Securities. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities. 
  
 SECTION 2.5. Definitive Securities. 
  
 The Securities issued on the Original Issue Date shall be in definitive form. The definitive Securities shall be printed, lithographed or engraved, or
produced by any combination of these methods, if required by any securities exchange on which the Securities may be listed, on a steel engraved border or steel engraved borders or may be produced in any other manner permitted by the rules of any
securities exchange on which the Securities may be listed, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities. 
  
 ARTICLE III 
  
 THE SECURITIES 
  
 SECTION 3.1. Payment of Principal and Interest. 
  
 (a) The unpaid principal amount of the Securities shall bear interest at a fixed rate equal to 6.91% per annum through the interest payment date on July
30, 2010, and thereafter at a variable rate of LIBOR plus 2.40% per annum until paid or duly provided for such interest to accrue from the Original Issue Date or from the most recent Interest Payment Date to which 

  

					
	 	 	21	 	 

 
interest has been paid or duly provided for, and any overdue principal, premium, if any, or Additional Tax Sums and any overdue installment of interest shall
bear Additional Interest at the rate equal to a fixed rate equal to 6.91% per annum through the interest payment date on July 30, 2010, and thereafter at a variable rate of LIBOR plus 2.40% per annum compounded quarterly from the dates such amounts
are due until they are paid or funds for the payment thereof are made available for payment. 
  
 (b) Interest and Additional 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 (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, except that interest and any Additional Interest payable on the Stated Maturity (or any date of principal repayment upon early maturity) of
the principal of a Security or on a Redemption Date shall be paid to the Person to whom principal is paid. The initial payment of interest on any Security that is issued between a Regular Record Date and the related Interest Payment Date shall be
payable as provided in such Security. 
  
 (c) Any interest on any
Security that is due and payable, but is not timely paid or duly provided for, on any Interest Payment Date for Securities (herein called “Defaulted Interest”) shall forthwith cease to be payable to the registered Holder on the
relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in paragraph (i) or (ii) below: 
  
 (i) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest (a “Special Record Date”),
which shall be fixed in the following manner. At least thirty (30) days prior to the date of the proposed payment, the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security and the
date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the
Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest. Thereupon the Trustee shall fix a Special Record Date for the
payment of such Defaulted Interest, which shall be not more than fifteen (15) days and not less than ten (10) days prior to the date of the proposed payment and not less than ten (10) days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first class, postage prepaid, to each Holder of a Security at the address of such Holder as it appears in the Securities Register not less than ten (10) days prior to such Special Record Date. Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities (or their respective Predecessor Securities) are registered on such Special Record
Date; or 
  

					
	 	 	22	 	 

 (ii) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Securities may be listed and, upon such notice as may be required by such exchange (or by the Trustee if the Securities are not listed), if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this clause, such payment shall be deemed practicable by the Trustee. 
  
 (d) Payments of interest on the Securities shall include interest accrued to but excluding the respective Interest Payment Dates. Interest payments for
the Securities shall be computed and paid on the basis of a 360-day year and the actual number of days elapsed in the relevant interest period. 
  
 (e) Payment of principal of, premium, if any, and interest on the Securities shall be made 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. Payments of principal, premium, if any, and interest due at the Maturity of such Securities shall be made at the Place of Payment upon surrender of such Securities to the
Paying Agent and payments of interest shall be made subject to such surrender where applicable, by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Paying Agent at
least ten (10) Business Days prior to the date for payment by the Person entitled thereto unless proper written transfer instructions have not been received by the relevant record date, in which case such payments shall be made by check mailed to
the address of such Person as such address shall appear in the Security Register. Notwithstanding the foregoing, so long as the holder of this Security is the Property Trustee, the payment of the principal of (and premium, if any) and interest
(including any overdue installment of interest and Additional Tax Sums, if any) on this Security will be made at such place and to such account as may be designated by the Property Trustee. 
  
 (f) Subject to the foregoing provisions of this Section 3.1. each
Security delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Security. 
  
 SECTION 3.2. Denominations. 
  
 The Securities shall be in registered form without coupons and shall be
issuable in minimum denominations of $100,000 and any integral multiple of $1,000 in excess thereof. 
  
 SECTION 3.3. Execution, Authentication, Delivery and Dating. 
  
 (a) At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities
in an aggregate principal amount (including all then Outstanding Securities) not in excess of Forty One Million Two Hundred Thirty Eight Thousand Dollars ($41,238,000) executed by the Company to the Trustee for authentication, together with a
Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver such Securities. In authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and shall be folly protected in relying upon: 
  

(i) a copy of any General Partner Resolution relating thereto; and 
  

					
	 	 	23	 	 

 (ii) an Opinion of Counsel stating that: (1) such Securities, when authenticated and
delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute, and the Indenture constitutes, valid and legally binding obligations of the Company, each
enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles;
(2) the Securities have been duly authorized and executed by the Company and have been delivered to the Trustee for authentication in accordance with this Indenture; (3) the Securities are not required to be registered under the Securities Act; and
(4) the Indenture is not required to be qualified under the Trust Indenture Act. 
  
 (b) The Securities shall be executed on behalf of the Company by a trustee of its General Partner. The signature of the trustee of its General Partner on the Securities may be manual or facsimile. Securities bearing
the manual or facsimile signatures of individuals who were at any time a proper trustee of the General Partner shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication
and delivery of such Securities or did not hold such offices at the date of such Securities. 
  
 (c) No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Security a certificate of authentication substantially in the form provided
for herein executed by the Trustee by the manual signature of one of its authorized signatories, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in
Section 3.8, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture. 
  
 (d) Each Security shall be dated the date of its authentication. 

 
 SECTION 3.4. Global Securities. 
  
 (a) Upon the election of the Holder after the Original Issue Date, which
election need not be in writing, the Securities owned by such Holder shall be issued in the form of one or more Global Securities registered in the name of the Depositary or its nominee. Each Global Security issued under this Indenture shall be
registered in the name of the Depositary designated by the Company for such Global Security 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 all purposes of this Indenture. 
  
 (b)
Notwithstanding any other provision in this Indenture, no Global Security may be exchanged in whole or in part for registered Securities, and no transfer of a Global Security in 

  

					
	 	 	24	 	 

 
whole or in part may be registered, in the name of any Person other than the Depositary for such Global Security or a nominee thereof unless (i) such
Depositary advises the Trustee and the Company in writing that such Depositary is no longer willing or able to properly discharge its responsibilities as Depositary with respect to such Global Security, and no qualified successor is appointed by the
Company within ninety (90) days of receipt by the Company of such notice, (ii) such Depositary ceases to be a clearing agency registered under the Exchange Act and no successor is appointed by the Company within ninety (90) days after obtaining
knowledge of such event, (iii) the Company executes and delivers to the Trustee a Company Order stating that the Company elects to terminate the book-entry system through the Depositary or (iv) an Event of Default shall have occurred and be
continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) above, the Trustee shall notify the Depositary and instruct the Depositary to notify all owners of beneficial interests in such Global Security of the
occurrence of such event and of the availability of Securities to such owners of beneficial interests requesting the same. The Trustee may conclusively rely, and be protected in relying, upon the written identification of the owners of beneficial
interests furnished by the Depositary, and shall not be liable for any delay resulting from a delay by the Depositary. Upon the issuance of such Securities and the registration in the Securities Register of such Securities in the names of the
Holders of the beneficial interests therein, the Trustees shall recognize such holders of beneficial interests as Holders. 
  
 (c) If any Global Security is to be exchanged for other Securities or canceled in part, or if another Security is to he exchanged in whole or in part for
a beneficial interest in any Global Security, then either (i) such Global Security shall be so surrendered for exchange or cancellation as provided in this Article III or (ii) the principal amount thereof shall be reduced or increased by an
amount equal to (x) the portion thereof to be so exchanged or canceled, or (y) the principal amount of such other Security to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the
records of the Securities Registrar, whereupon the Trustee, in accordance with the Applicable Depositary Procedures, shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records. Upon any such
surrender or adjustment of a Global Security by the Depositary, accompanied by registration instructions, the Company shall execute and the Trustee shall authenticate and deliver any Securities issuable in exchange for such Global Security (or any
portion thereof) in accordance with the instructions of the Depositary. The Trustee shall not be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be fully protected in relying on, such instructions.

  
 (d) Every Security authenticated and delivered upon
registration of transfer of, or in exchange for or in lieu of, a Global Security or any portion thereof shall be authenticated and delivered in the form of, and shall be, a Global Security, unless such Security is registered in the name of a Person
other than the Depositary for such Global Security or a nominee thereof. 
  
 (e) Securities distributed to holders of Book-Entry Preferred Securities (as defined in the applicable Trust Agreement) upon the dissolution of the Trust shall be distributed in the form of one or more Global
Securities registered in the name of a Depositary or its nominee, and deposited with the Securities Registrar, as custodian for such Depositary, or with such Depositary, for credit by the Depositary to the respective accounts of the beneficial
owners of the Securities represented thereby (or such other accounts as they may direct). Securities distributed to holders of Preferred Securities other than Book-Entry Preferred Securities upon the dissolution 

  

					
	 	 	25	 	 

 
of the Trust shall not be issued in the form of a Global Security or any other form intended to facilitate book-entry trading in beneficial interests in such
Securities. 
  
 (f) The Depositary or its nominee, as the
registered owner of a Global Security, shall be the Holder of such Global Security for all purposes under this Indenture and the Securities, and owners of beneficial interests in a Global Security shall hold such interests pursuant to the Applicable
Depositary Procedures. Accordingly, any such owner’s beneficial interest in a Global Security shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its
Depositary Participants. The Securities Registrar and the Trustee shall be entitled to deal with the Depositary for all purposes of this Indenture relating to a Global Security (including the payment of principal and interest thereon and the giving
of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole Holder of the Security and shall have no obligations to the owners of beneficial interests therein. Neither the Trustee nor the Securities
Registrar shall have any liability in respect of any transfers effected by the Depositary. 
  
 (g) The rights of owners of beneficial interests in a Global Security shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such owners and the
Depositary and/or its Depositary Participants. 
  
 (h) No holder
of any beneficial interest in any Global Security held on its behalf by a Depositary shall have any rights under this Indenture with respect to such Global Security, and such Depositary may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the owner of such Global Security for all purposes whatsoever. None of the Company, the Trustee nor any agent of the Company or the Trustee will have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests of a Global Security or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 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 a Depositary or impair, as between a Depositary and such holders of beneficial interests, the
operation of customary practices governing the exercise of the rights of the Depositary (or its nominee) as Holder of any Security. 
  
 SECTION 3.5. Registration, Transfer and Exchange Generally. 
  
 (a) The Trustee shall cause to be kept at the Corporate Trust Office a register (the “Securities Register”)
in which the registrar and transfer agent with respect to the Securities (the “Securities Registrar”), subject to such reasonable regulations as it may prescribe, shall provide for the registration of Securities and of transfers
and exchanges of Securities. The Trustee shall at all times also be the Securities Registrar. The provisions of Article VI shall apply to the Trustee in its role as Securities Registrar. 
  
 (b) Subject to compliance with Section 2.2(b), upon surrender for
registration of transfer of any Security at the offices or agencies of the Company designated for that purpose the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or
more new Securities of any authorized denominations of like tenor and aggregate principal amount. 
  

					
	 	 	26	 	 

 (c) At the option of the Holder, Securities may be exchanged for other Securities of any authorized
denominations, of like tenor and aggregate principal amount, upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities that the Holder making the exchange is entitled to receive. 
  
 (d) All Securities issued upon any transfer or exchange of Securities shall be the 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. 
  
 (e) Every Security presented or surrendered for transfer or exchange shall (if so required by the Company or the Trustee) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the Company and the Securities Registrar, duly executed by the Holder thereof or such Holder’s attorney duly authorized in writing. 
  
 (f) No service charge shall be made to a Holder for any transfer or exchange
of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Securities. 
  
 (g) Neither the Company nor the Trustee shall be required pursuant to the
provisions of this Section 3.5 (g): (i) to issue, register the transfer of or exchange any Security during a period beginning at the opening of business fifteen (15) days before the day of selection for redemption of Securities pursuant to
Article XI and ending at the close of business on the day of mailing of the notice of redemption or (ii) to register the transfer of or exchange any Security so selected for redemption in whole or in part, except, in the case of any such
Security to be redeemed in part, any portion thereof not to be redeemed. 
  
 (h) The Company shall designate an office or offices or agency or agencies where Securities may be surrendered for registration or transfer or exchange. The Company initially designates the Corporate Trust Office as
its office and agency for such purposes. The Company shall give prompt written notice to the Trustee and to the Holders of any change in the location of any such office or agency. 
  
 (i) The Securities may only be transferred to a “Qualified Purchaser” as such term is defined in Section 2(a)(51)
of the Investment Company Act. Neither the Trustee nor the Securities Registrar shall be responsible for ascertaining whether any transfer hereunder complies with the registration provisions of or any exemptions from the Securities Act, applicable
state securities laws or the applicable laws of any other jurisdiction, ERISA, the United States Internal Revenue Code of 1986, as amended, or the Investment Company Act; provided, that if a certificate is specifically required by the express terms
of this Section 3.5 to be delivered to the Trustee or the Securities Registrar by a Holder or transferee of a Security, the Trustee and the Securities Registrar shall be under a duty to receive and examine the same to determine whether or not the
certificate substantially conforms on its face to the requirements of this Indenture and shall promptly notify the party delivering the same if such certificate does not comply with such terms. 
  

					
	 	 	27	 	 

 SECTION 3.6. Mutilated, Destroyed, Lost and Stolen Securities. 
  
 (a) If any mutilated Security is surrendered to the Trustee together with
such security or indemnity as may be required by the Trustee to save the Company and the Trustee harmless, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of like tenor and aggregate
principal amount and bearing a number not contemporaneously outstanding. 
  
 (b) If there shall be delivered to the Trustee (i) evidence to its satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by it to save each of the
Company and the Trustee harmless, then, in the absence of notice to the Company 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 lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and aggregate principal amount as such destroyed, lost or stolen Security, and bearing a number not contemporaneously outstanding.

  
 (c) If any such mutilated, destroyed, lost or stolen Security
has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security. 
  
 (d) Upon the issuance of any new Security under this Section 3.6, 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 and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
  
 (e) Every new Security issued pursuant to this Section 3.6 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 the benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder. 
  
 (f) The provisions of this Section 3.6 are 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 3.7. Persons Deemed Owners.

  
 The Company, the Trustee and any agent of the Company or the
Trustee shall treat the Person in whose name any Security is registered as the owner of such Security for the purpose of receiving payment of principal, premium, if any, and any interest on such Security and for all other purposes whatsoever, and
neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 
  
 SECTION 3.8. Cancellation. 
  
 All Securities surrendered for payment, redemption, transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee, and any such Securities and Securities surrendered directly to the Trustee for any such purpose shall be 

  

					
	 	 	28	 	 

 
promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder
that the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly canceled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this
Section 3.8. except as expressly permitted by this Indenture. All canceled Securities shall be retained or disposed of by the Trustee in accordance with its customary practices and the Trustee shall deliver to the Company a certificate of
such disposition. 
  
 SECTION 3.9. Reserved. 
  
 SECTION 3.10. Reserved. 
  
 SECTION 3.11. Agreed Tax Treatment. 
  
 Each Security issued hereunder shall provide that the Company and, by its
acceptance or acquisition of a Security or a beneficial interest therein, the Holder of, and any Person that acquires a direct or indirect beneficial interest in, such Security, intend and agree to treat such Security as indebtedness of the Company
for United States Federal, state and local tax purposes and to treat the Preferred Securities (including but not limited to all payments and proceeds with respect to the Preferred Securities) as an undivided beneficial ownership interest in the
Securities (and any other Trust property) (and payments and proceeds therefrom, respectively) for United States Federal, state and local tax purposes. The provisions of this Indenture shall be interpreted to further this intention and agreement of
the parties. 
  
 SECTION 3.12. CUSIP Numbers. 

 
 The Company in issuing the Securities may use “CUSIP” numbers
(if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption and other similar or related materials as a convenience to Holders; provided, that any such notice or other materials 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 redemption or other materials and that reliance may be placed only on the other identification numbers printed
on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. 
  
 ARTICLE IV 
  
 SATISFACTION AND DISCHARGE 
  
 SECTION 4.1. Satisfaction and Discharge of Indenture. 
  
 This Indenture shall, upon Company Request, cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of Securities herein expressly provided for and as otherwise
provided in this Section 4.1) 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 
  
 (a) either 
  
 (i) all Securities theretofore authenticated and delivered (other than (A) Securities that have been
mutilated, destroyed, lost or stolen and that have been replaced or paid as provided in Section 3.6 and (B) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust as provided in Section 10.2) have been delivered to the Trustee for cancellation; or 
  

					
	 	 	29	 	 

 (ii) all such Securities not theretofore delivered to the Trustee for cancellation

  
 (A) have become due and payable, or

  
 (B) will become due and payable at their
Stated Maturity within one year of the date of deposit, or 
  
 (C) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, 
  
 and the Company, in the case of subclause (ii)(A), (B) or (C) above, has
deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose (x) an amount in the currency or currencies in which the Securities are payable, (y) Government Obligations which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide, not later than the due date of any payment, money in an amount or (z) a combination thereof, in each case sufficient, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal
and any premium and interest (including any Additional Interest) to the date of such deposit (in the case of Securities that have become due and payable) or to the Stated Maturity (or any date of principal repayment upon early maturity) or
Redemption Date, as the case may be; 
  
 (b) the Company has paid
or caused to be paid all other sums payable hereunder by the Company; and 
  
 (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with. 
  
 Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company to the Trustee under Section 6.6, the obligations of the Company to any Authenticating Agent under Section 6.11 and, if money shall have been deposited with the Trustee
pursuant to subclause (a)(ii) of this Section 4.1, the obligations of the Trustee under Section 4.2 and Section 10.2(e) shall survive. 
  
 SECTION 4.2. Application of Trust Money. 
  
 Subject to the provisions of Section 10.2(e), all money deposited with the Trustee pursuant to Section 4.1 shall be held in trust and
applied by the Trustee, in accordance with the 

  

					
	 	 	30	 	 

 
provisions of the Securities and this Indenture, to the payment in accordance with Section 3.1, either directly or through any Paying Agent (including
the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal and any premium and interest (including any Additional Interest) for the payment of which such money or obligations have been
deposited with or received by the Trustee. Moneys held by the Trustee under this Section 4.2 shall not be subject to the claims of holders of Senior Debt under Article XII. 
  
 ARTICLE V 
  
 REMEDIES 
  
 SECTION 5.1. Events of Default. 
  
 “Event of Default” means, wherever used herein with respect to the Securities, any one of the following events (whatever the reason for
such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

  
 (a) default in the payment of any interest upon any Security,
including any Additional Interest in respect thereof, when it becomes due and payable, and continuance of such default for a period of thirty (30) days; or 
  
 (b) default in the payment of the principal of or any premium on any Security at its Maturity; or 
  
 (c) default in the performance, or breach, of any covenant or warranty of the
Company in this Indenture and continuance of such default or breach for a period of thirty (30) days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at
least twenty five percent (25%) in aggregate principal amount of the Outstanding Securities a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;
or 
  
 (d) the entry by a court having jurisdiction in the
premises of a decree or order adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable Federal or
state bankruptcy, insolvency, reorganization or other similar law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or ordering the
winding up or liquidation of its affairs, and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of sixty (60) consecutive days; or 
  
 (e) the institution by the Company of proceedings to be adjudicated a
bankrupt or insolvent, or the consent by the Company to the institution of bankruptcy or insolvency proceedings against it, or the filing by the Company of a petition or answer or consent seeking reorganization or relief under any applicable Federal
or state bankruptcy, insolvency, reorganization or other similar law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, 

  

					
	 	 	31	 	 

 
sequestrator or other similar official of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of
creditors, or the admission by it in writing of its inability to pay its debts generally as they become due and its willingness to be adjudicated a bankrupt or insolvent, or the taking of corporate action by the Company in furtherance of any such
action; or 
  
 (f) the Trust shall have voluntarily or
involuntarily liquidated, dissolved, wound-up its business or otherwise terminated its existence, except in connection with (1) the distribution of the Securities to holders of the Preferred Securities in liquidation of their interests in the Trust,
(2) the redemption of all of the outstanding Preferred Securities or (3) certain mergers, consolidations or amalgamations, each as and to the extent permitted by the Trust Agreement. 
  
 SECTION 5.2. Acceleration of Maturity; Rescission and Annulment. 
  
 (a) If an Event of Default occurs and is continuing, then and in every such
case the Trustee or the Holders of not less than twenty five percent (25%) in aggregate principal amount of the Outstanding Securities may declare the principal amount of all the Securities to be due and payable immediately, by a notice in writing
to the Company (and to the Trustee if given by Holders), provided, that if, upon an Event of Default, the Trustee or the Holders of not less than twenty five percent (25%) in principal amount of the Outstanding Securities fail to declare the
principal of all the Outstanding Securities to be immediately due and payable, the holders of at least twenty five percent (25%) in aggregate Liquidation Amount of the Preferred Securities then outstanding shall have the right to make such
declaration by a notice in writing to the Property Trustee, the Company and the Trustee; and upon any such declaration the principal amount of and the accrued interest (including any Additional Interest) on all the Securities shall become
immediately due and payable. 
  
 (b) At any time after such a
declaration of acceleration with respect to Securities has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter provided in this Article V, the Holders of a majority in
aggregate principal amount of the Outstanding Securities, by written notice to the Indenture Trustee, or the holders of a majority in aggregate Liquidation Amount of the Preferred Securities, by written notice to the Property Trustee, the Company
and the Trustee, may rescind and annul such declaration and its consequences if: 
  
 (i) the Company has paid or deposited with the Trustee a sum sufficient to pay: 
  
 (A) all overdue installments of interest on all Securities,

  
 (B) any accrued Additional Interest on all
Securities, 
  
 (C) the principal of and any
premium on any Securities that have become due otherwise than by such declaration of acceleration and interest (including any Additional Interest) thereon at the rate borne by the Securities, and 
  
 (D) all sums paid or advanced by the Trustee hereunder and
the reasonable compensation, expenses, disbursements and advances of the Trustee, the Property Trustee and their agents and counsel; and 
  

					
	 	 	32	 	 

 (ii) all Events of Default with respect to Securities, other than the non-payment of the
principal of Securities that has become due solely by such acceleration, have been cured or waived as provided in Section 5.13; 
  
 provided, that if the Holders of such Securities fail to annul such declaration and waive such default, the holders of not less than a majority in aggregate
Liquidation Amount of the Preferred Securities then outstanding shall also have the right to rescind and annul such declaration and its consequences by written notice to the Property Trustee, the Company and the Trustee, subject to the satisfaction
of the conditions set forth in paragraph (b) of this Section 5.2. No such rescission shall affect any subsequent default or impair any right consequent thereon. 
  
 SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee. 
  
 (a) The Company covenants that if: 
  
 (i) default is made in the payment of any installment of
interest (including any Additional Interest) on any Security when such interest becomes due and payable and such default continues for a period of thirty (30) days, or 
  
 (ii) default is made in the payment of the principal of and any premium on any Security at the Maturity
thereof, 
  
 the Company will, upon demand of the Trustee, pay to the Trustee, for
the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and any premium and interest (including any Additional Interest) and, in addition thereto, all amounts owing the Trustee under
Section 6.6. 
  
 (b) If the Company fails to pay such
amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree,
and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon the
Securities, wherever situated. 
  
 (c) If an Event of Default with
respect to Securities occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities by such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 
  
 SECTION 5.4. Trustee May File Proofs of Claim. 
  
 In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or similar judicial proceeding relative to the Company (or any other obligor upon the Securities), its property or its creditors, the Trustee shall be entitled and empowered, by intervention in
such proceeding or otherwise, to take any and all actions authorized hereunder in order to have claims of the Holders and the Trustee allowed in any such 

  

					
	 	 	33	 	 

 
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or other property payable or deliverable on any such claims and
to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official 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 first pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts owing the Trustee, any predecessor Trustee and other Persons under Section 6.6. 
  
 SECTION 5.5. Trustee May Enforce Claim Without Possession of Securities. 
  
 All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without
the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment
shall, subject to Article XII and after provision for the payment of all the amounts owing the Trustee, any predecessor Trustee and other Persons under Section 6.6. be for the ratable benefit of the Holders of the Securities in respect
of which such judgment has been recovered. 
  
 SECTION 5.6.
Application of Money Collected. 
  
 Any money or property
collected or to be applied by the Trustee with respect to the Securities pursuant to this Article V shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money or property
on account of principal or any premium or interest (including any Additional Interest), upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 
  
 FIRST: To the payment of all amounts due the Trustee, any predecessor Trustee
and other Persons under Section 6.6; 
  
 SECOND: To the
payment of all Senior Debt of the Company if and to the extent required by Article XII; 
  
 THIRD: Subject to Article XII, to the payment of the amounts then due and unpaid upon the Securities for principal and any premium and interest (including any Additional Interest) in respect of which or for the
benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities for principal and any premium and interest (including any Additional Interest),
respectively; and 
  
 FOURTH: The balance, if any, to the Person
or Persons entitled thereto. 
  
 SECTION 5.7. Limitation on
Suits. 
  
 Subject to Section 5.8, no Holder of any
Securities shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture or for the appointment of a custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar official) or for any
other remedy hereunder, unless: 
  
 (a) such Holder has previously
given written notice to the Trustee of a continuing Event of Default with respect to the Securities; 
  

					
	 	 	34	 	 

 (b) the Holders of not less than a majority in aggregate principal amount of the Outstanding Securities
shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
  
 (c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with
such request; 
  
 (d) the Trustee after its receipt of such
notice, request and offer of indemnity has failed to institute any such proceeding for sixty (60) days; and 
  
 (e) no direction inconsistent with such written request has been given to the Trustee during such sixty (60)-day period by the Holders of a majority in
aggregate principal amount of the Outstanding Securities; 
  
 it being understood
and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing itself of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Securities, or to
obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders. 
  
 SECTION 5.8. Unconditional Right of Holders to Receive Principal, Premium,
if any, and Interest; Direct Action by Holders of Preferred Securities. 
  
 Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and any premium on such Security at
its Maturity and payment of interest (including any Additional Interest) on such Security when due and payable and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder.
Any registered holder of the Preferred Securities shall have the right, upon the occurrence of an Event of Default described in Section 5.1(a) or Section 5.1(b), to institute a suit directly against the Company for enforcement of
payment to such holder of principal of and any premium and interest (including any Additional Interest) on the Securities having a principal amount equal to the aggregate Liquidation Amount of the Preferred Securities held by such holder.

  
 SECTION 5.9. Restoration of Rights and Remedies.

  
 If the Trustee, any Holder or any holder of Preferred
Securities has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee, such Holder or such holder of
Preferred Securities, then and in every such case the Company, the Trustee, such Holders and such holder of Preferred Securities shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions
hereunder, and thereafter all rights and remedies of the Trustee, such Holder and such holder of Preferred Securities shall continue as though no such proceeding had been instituted. 
  

					
	 	 	35	 	 

 SECTION 5.10. Rights and Remedies Cumulative. 
  
 Except as otherwise provided in Section 3.6(f), no right or remedy
herein conferred upon or reserved to the Trustee or the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or
remedy. 
  
 SECTION 5.11. Delay or Omission Not Waiver.

  
 No delay or omission of the Trustee, any Holder of any
Securities or any holder of any Preferred Security to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right
and remedy given by this Article V or by law to the Trustee or to the Holders and the right and remedy given to the holders of Preferred Securities by Section 5.8 may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee, the Holders or the holders of Preferred Securities, as the case may be. 
  
 SECTION 5.12. Control by Holders. 
  
 The Holders of not less than a majority in aggregate principal amount of the Outstanding Securities (or, as the case may be, the holders of a majority in
aggregate Liquidation Amount of Preferred Securities) shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee;
provided, that: 
  
 (a) such direction shall not be in
conflict with any rule of law or with this Indenture, 
  
 (b) the
Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction, and 
  
 (c) subject to the provisions of Section 6.2, the Trustee shall have the right to decline to follow such direction if a Responsible Officer or
Officers of the Trustee shall, in good faith, reasonably determine that the proceeding so directed would be unjustly prejudicial to the Holders not joining in any such direction or would involve the Trustee in personal liability. 
  
 SECTION 5.13. Waiver of Past Defaults. 
  
 (a) The Holders of not less than a majority in aggregate principal amount of
the Outstanding Securities or the holders of not less than a majority in aggregate Liquidation Amount of the Preferred Securities may waive any past Event of Default hereunder and its consequences except an Event of Default: 
  
 (i) in the payment of the principal of or any premium or
interest (including any Additional Interest) on any Security (unless such Event of Default has been cured and the Company has paid to or deposited with the Trustee a sum sufficient to pay all installments of interest (including any Additional
Interest) due and past due and all principal of and any premium on all Securities due otherwise than by acceleration), or 
  

					
	 	 	36	 	 

 (ii) in respect of a covenant or provision hereof that under Article IX cannot be
modified or amended without the consent of each Holder of any Outstanding Security. 
  
 (b) Any such waiver shall be deemed to be on behalf of the Holders of all the Securities or, in the case of a waiver by holders of Preferred Securities issued by such Trust, by all holders of Preferred Securities.

  
 (c) Upon any such waiver, such Event of Default shall cease to
exist and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Event of Default or impair any right consequent thereon. 

 
 SECTION 5.14. Undertaking for Costs. 
  
 All parties to this Indenture agree, and each Holder of any Security by his
or her acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted
by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any
party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 5.14 shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more than ten percent (10%) in aggregate principal amount of the Outstanding Securities, or to any suit instituted by any Holder for the enforcement of the payment of the
principal of or any premium on the Security after the Stated Maturity or any interest (including any Additional Interest) on any Security after it is due and payable. 
  
 SECTION 5.15. Waiver of Usury, Stay or Extension Laws. 
  
 The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in
any manner whatsoever claim or take the benefit or advantage of, any usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the
extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not 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. 
  
 ARTICLE VI 
  
 THE TRUSTEE

  
 SECTION 6.1. Corporate Trustee Required. 
  
 There shall at all times be a Trustee hereunder with respect to the
Securities. The Trustee shall be a corporation organized and doing business under the laws of the United States or of any state thereof, authorized to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by Federal or state 

  

					
	 	 	37	 	 

 
authority and having an office within the United States. If such corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of such supervising or examining authority, then, for the purposes of this Section 6.1, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 6.1, it shall resign immediately in the manner and with the effect hereinafter specified in this
Article VI. 
  
 SECTION 6.2. Certain Duties and
Responsibilities.  
  
 Except during the continuance of an
Event of Default: 
  
 (i) the Trustee undertakes
to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
  
 (ii) 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; provided, that in the
case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they substantially conform on their
face to the requirements of this Indenture. 
  
 (b) If an Event of
Default known to the Trustee has occurred and is continuing, the Trustee shall, prior to the receipt of directions, if any, from the Holders of at least a majority in aggregate principal amount of the Outstanding Securities (or, if applicable, from
the holders of at least a majority in aggregate Liquidation Amount of Preferred Securities), 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 such person’s own affairs. 
  
 (c) Notwithstanding the foregoing, 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,
or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. Whether or not therein expressly
so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 6.2. To the extent that, at law or in equity, the
Trustee has duties and liabilities relating to the Holders, the Trustee shall not be liable to any Holder or any holder of Preferred Securities for the Trustee’s good faith reliance on the provisions of this Indenture. The provisions of this
Indenture, to the extent that they restrict the duties and liabilities of the Trustee otherwise existing at law or in equity, are agreed by the Company and the Holders and the holders of Preferred Securities to replace such other duties and
liabilities of the Trustee. 
  

					
	 	 	38	 	 

 (d) No provisions of this Indenture shall be construed to relieve the Trustee from liability with respect
to matters that are within the authority of the Trustee under this Indenture for its own negligent action, negligent failure to act or willful misconduct, except that: 
  
 (i) the Trustee shall not be liable for any error or judgment made in good faith by an authorized officer of
the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; 
  
 (ii) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of at least a majority in aggregate principal amount of the Outstanding Securities (or, as the case may be, the holders of a majority in aggregate Liquidation Amount of Preferred Securities) relating to the time, method and
place of conducting any proceeding for any remedy available to the Trustee under this Indenture; and 
  
 (iii) the Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing
with the Company and money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. 
  
 (e) If at any time the Trustee hereunder is not the same Person as the Property Trustee under the Trust Agreement: 
  
 (i) whenever a reference is made herein to the dissolution,
termination or liquidation of the Trust, the Trustee shall be entitled to assume that no such dissolution, termination, or liquidation has occurred so long as the Securities are or continue to be registered in the name of such Property Trustee, and
the Trustee shall be charged with notice or knowledge of such dissolution, termination or liquidation only upon written notice thereof given to the Trustee by the Depositor under the Trust Agreement; and 
  
 (ii) the Trustee shall not be charged with notice or
knowledge that any Person is a holder of Preferred Securities or Common Securities issued by the Trust or whether any group of holders of Preferred Securities constitutes any specified percentage of all outstanding Preferred Securities for any
purpose under this Indenture, unless and until the Trustee is furnished with a list of holders by such Property Trustee and the aggregate Liquidation Amount of the Preferred Securities then outstanding. The Trustee may conclusively rely and shall be
protected in relying on such list. 
  
 (f) Notwithstanding
Section 1.10, the Trustee shall not, and shall not be deemed to, owe any fiduciary duty to the holders of any of the Trust Securities issued by the Trust and shall not be liable to any such holder (other than for the willful misconduct or
negligence of the Trustee) if the Trustee in good faith (i) pays over or distributes to a registered Holder of the Securities or to the Company or to any other Person, cash, property or securities to which such holders of such Trust Securities shall
be entitled or (ii) takes any action or omits to take any action at the request of the Holder of such Securities. Nothing in this paragraph shall affect the obligation of any other such Person to hold such payment for the benefit of, and to pay such
amount over to, such holders of Preferred Securities or Common Securities or their representatives. 
  

					
	 	 	39	 	 

 SECTION 6.3. Notice of Defaults. 
  
 Within ninety (90) days after the occurrence of any default actually known to the Trustee, the Trustee shall give the
Holders notice of such default unless such default shall have been cured or waived; provided, that except in the case of a default in the payment of the principal of or any premium or interest on any Securities, the Trustee shall be fully
protected in withholding the notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determines that withholding the notice is in the
interest of the Holders; and provided, further, that in the case of any default of the character specified in Section 5.1(c), no such notice to Holders shall be given until at least thirty (30) days after the occurrence thereof. For
the purpose of this Section 6.3, the term “default” means any event which is, or after notice or lapse of time or both would become, an Event of Default. 
  
 SECTION 6.4. Certain Rights of Trustee.  
  
 Subject to the provisions of Section 6.2: 
  
 (a) the Trustee may conclusively rely and shall be fully protected in acting or refraining from acting in good faith and in
accordance with the terms hereof upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties; 
  
 (b) if (i)
in performing its duties under this Indenture the Trustee is required to decide between alternative courses of action, (ii) in construing any of the provisions of this Indenture the Trustee finds ambiguous or inconsistent with any other provisions
contained herein or (iii) the Trustee is unsure of the application of any provision of this Indenture, then, except as to any matter as to which the Holders are entitled to decide under the terms of this Indenture, the Trustee shall deliver a notice
to the Company requesting the Company’s written instruction as to the course of action to be taken and the Trustee shall take such action, or refrain from taking such action, as the Trustee shall be instructed in writing to take, or to refrain
from taking, by the Company; provided, that if the Trustee does not receive such instructions from the Company within ten Business Days after it has delivered such notice or such reasonably shorter period of time set forth in such notice the
Trustee may, but shall be under no duty to, take such action, or refrain from taking such action, as the Trustee shall deem advisable and in the best interests of the Holders, in which event the Trustee shall have no liability except for its own
negligence, bad faith or willful misconduct; 
  
 (c) any request
or direction of the Company shall be sufficiently evidenced by a Company Request or Company Order and a General Partner Resolution; 
  
 (d) the Trustee may consult with counsel (which counsel may be counsel to the Trustee, the Company or any of its Affiliates, and may include any of its
employees) and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 
  

					
	 	 	40	 	 

 (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders or any holder of Preferred Securities pursuant to this Indenture, unless such Holders (or such holders of Preferred Securities) shall have offered to the Trustee security or indemnity
reasonably satisfactory to it against the costs, expenses (including reasonable attorneys’ fees and expenses) and liabilities that might be incurred by it in compliance with such request or direction, including reasonable advances as may be
requested by the Trustee; 
  
 (f) 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, indenture, note or other paper or document, but the Trustee in its
discretion may make such inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such inquiry or investigation, it shall be entitled to examine the books, records and premises of the
Company, personally or by agent or attorney; 
  
 (g) the Trustee
may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys, custodians or nominees and the Trustee shall not be responsible for any misconduct or negligence on the part of any
such agent, attorney, custodian or nominee appointed with due care by it hereunder; 
  
 (h) whenever in the administration of this Indenture the Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action with respect to enforcing any
remedy or right hereunder, the Trustees (i) may request instructions from the Holders (which instructions may only be given by the Holders of the same aggregate principal amount of Outstanding Securities as would be entitled to direct the Trustee
under this Indenture in respect of such remedy, right or action), (ii) may refrain from enforcing such remedy or right or taking such action until such instructions are received and (iii) shall be protected in acting in accordance with such
instructions; 
  
 (i) except as otherwise expressly provided by
this Indenture, the Trustee shall not be under any obligation to take any action that is discretionary under the provisions of this Indenture; 
  
 (j) without prejudice to any other rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in
connection with any bankruptcy, insolvency or other proceeding referred to in clauses (d) or (e) of the definition of Event of Default, such expenses (including legal fees and expenses of its agents and counsel) and the compensation for such
services are intended to constitute expenses of administration under any bankruptcy laws or law relating to creditors rights generally; 
  
 (k) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate addressing such matter, which, upon receipt of
such request, shall be promptly delivered by the Company; 
  

					
	 	 	41	 	 

 (l) the Trustee shall not be charged with knowledge of any Event of Default unless either (i) a
Responsible Officer of the Trustee shall have actual knowledge or (ii) the Trustee shall have received written notice thereof from the Company or a Holder; and 
  

(m) in the event that the Trustee is also acting as Paying Agent, Authenticating Agent or Securities Registrar hereunder, the rights and protections
afforded to the Trustee pursuant to this Article VI shall also be afforded such Paying Agent, Authenticating Agent, or Securities Registrar. 
  
 SECTION 6.5. May Hold Securities. 
  
 The Trustee, any Authenticating Agent, any Paying Agent, any Securities Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal with the Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Securities Registrar or such other agent. 
  
 SECTION 6.6. Compensation; Reimbursement; Indemnity. 
  
 (a) The Company agrees: 
  
 (i) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder in such amounts as the Company and the Trustee shall agree from time to time (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust); 
  
 (ii) to reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be attributable to its negligence, bad faith or willful misconduct; and 
  
 (iii) to the fullest extent permitted by applicable law, to indemnify the Trustee and its Affiliates, and their officers, directors,
shareholders, agents, representatives and employees for, and to hold them harmless against, any loss, damage, liability, tax (other than income, franchise or other taxes imposed on amounts paid pursuant to (i) or (ii) hereof), penalty, expense or
claim of any kind or nature whatsoever incurred without negligence, bad faith or willful misconduct on its part arising out of or in connection with the acceptance or administration of this trust or the performance of the Trustee’s duties
hereunder, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
  
 (b) To secure the Company’s payment obligations in this Section 6.6, the Company hereby grants and pledges to
the Trustee and the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee, other than money or property held in trust to pay principal and interest on particular Securities. Such lien shall
survive the satisfaction and discharge of this Indenture or the resignation or removal of the Trustee. 
  

					
	 	 	42	 	 

 (c) The obligations of the Company under this Section 6.6 shall survive the satisfaction and
discharge of this Indenture and the earlier resignation or removal of the Trustee. 
  
 (d) In no event shall the Trustee be liable for any indirect, special, punitive 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. 
  
 (e) In no event shall the Trustee be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond its control, including, but not limited to, acts of God, flood, war
(whether declared or undeclared), terrorism, fire, riot, embargo, government action, including any laws, ordinances, regulations, governmental action or the like which delay, restrict or prohibit the providing of the services contemplated by this
Indenture. 
  
 SECTION 6.7. Resignation and Removal;
Appointment of Successor. 
  
 (a) No resignation or removal of
the Trustee and no appointment of a successor Trustee pursuant to this Article VI shall become effective until the acceptance of appointment by the successor Trustee under Section 6.8. 
  
 (b) The Trustee may resign at any time by giving written notice thereof to
the Company. 
  
 (c) Unless an Event of Default shall have
occurred and be continuing, the Trustee may be removed at any time by the Company by a General Partner Resolution. If an Event of Default shall have occurred and be continuing, the Trustee may be removed by Act of the Holders of a majority in
aggregate principal amount of the Outstanding Securities, delivered to the Trustee and to the Company. 
  
 (d) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any reason, at a time
when no Event of Default shall have occurred and be continuing, the Company, by a General Partner Resolution, shall promptly appoint a successor Trustee, and such successor Trustee and the retiring Trustee shall comply with the applicable
requirements of Section 6.8. If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any reason, at a time when an Event of Default shall have occurred and be continuing,
the Holders, by Act of the Holders of a majority in aggregate principal amount of the Outstanding Securities, shall promptly appoint a successor Trustee, and such successor Trustee and the retiring Trustee shall comply with the applicable
requirements of Section 6.8. If no successor Trustee shall have been so appointed by the Company or the Holders and accepted appointment within sixty (60) days after the giving of a notice of resignation by the Trustee or the removal of the
Trustee in the manner required by Section 6.8, any Holder who has been a bona fide Holder of a Security for at least six months may, on behalf of such Holder and all others similarly situated, and any resigning Trustee may, at the expense of
the Company, petition any court of competent jurisdiction for the appointment of a successor Trustee. 
  
 (e) The Company shall give notice to all Holders in the manner provided in Section 1.6 of each resignation and each removal of the Trustee and each
appointment of a successor Trustee. Each notice shall include the name of the successor Trustee and the address of its Corporate Trust Office. 
  

					
	 	 	43	 	 

 SECTION 6.8. Acceptance of Appointment by Successor. 
  
 (a) In case of the appointment hereunder of a successor Trustee, each
successor Trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and
such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee
shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder. 
  
 (b) Upon
request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all rights, powers and trusts referred to in paragraph (a) of this Section
6.8. 
  
 (c) No successor Trustee shall accept its appointment
unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article VI. 
  
 SECTION 6.9. Merger, Conversion, Consolidation or Succession to Business. 
  
 Any Person into which the Trustee may be merged or converted or with which it may be consolidated, or any Person resulting
from any merger, conversion or consolidation to which the Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, without the
execution or filing of any paper or any further act on the part of any of the parties hereto, provided, that such Person shall be otherwise qualified and eligible under this Article VI. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation or as otherwise provided above in this Section 6.9 to such authenticating Trustee may adopt such authentication and deliver
the Securities so authenticated, and in case any Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor Trustee or in the name of such successor Trustee, and
in all cases the certificate of authentication shall have the full force which it is provided anywhere in the Securities or in this Indenture that the certificate of the Trustee shall have. 
  
 SECTION 6.10. Not Responsible for Recitals or Issuance of Securities.

  
 The recitals contained herein and in the Securities, except
the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the
validity or sufficiency of this Indenture or of the Securities. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of the Securities or the proceeds thereof. 
  

					
	 	 	44	 	 

 SECTION 6.11. Appointment of Authenticating Agent. 
  
 (a) The Trustee may appoint an Authenticating Agent or Agents with respect to
the Securities, which shall be authorized to act on behalf of the Trustee to authenticate Securities issued upon original issue and upon exchange, registration of transfer or partial redemption thereof or pursuant to Section 3.6, and
Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and doing business under the laws of the United States of America, or of any State or Territory thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by Federal or state authority. If such Authenticating Agent publishes reports of condition at least annually pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of this Section 6.11 the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section 6.11, such Authenticating Agent shall resign immediately in the
manner and with the effect specified in this Section 6.11. 
  
 (b) Any Person into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or
any Person succeeding to all or substantially all of the corporate trust business of an Authenticating Agent shall be the successor Authenticating Agent hereunder, provided such Person shall be otherwise eligible under this Section 6.11,
without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent. 
  
 (c) An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section 6.11, the Trustee may appoint a successor Authenticating Agent eligible under the provisions of this Section 6.11. which shall be acceptable to the
Company, and shall give notice of such appointment to all Holders. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like
effect as if originally named as an Authenticating Agent. 
  
 (d)
The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section 6.11 in such amounts as the Company and the Authenticating Agent shall agree from time to time. 

 

					
	 	 	45	 	 

 (e) If an appointment of an Authenticating Agent is made pursuant to this Section 6.11, the
Securities may have endorsed thereon, an alternative certificate of authentication in substantially the following form: 
  
 This is one of the Securities referred to in the within mentioned Indenture. 
  
 Dated: __________________________________ 
  

			
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	 
	 	 	Authenticating Agent
		
	By:	 	 
	 	 	Authorized Signatory

  
 ARTICLE VII

  
 HOLDER’S
LISTS AND REPORTS BY COMPANY 
  
 SECTION 7.1. Company to Furnish Trustee Names and Addresses of Holders.  
  
 The Company will furnish or cause to be furnished to the Trustee: 
  
 (a) semiannually, on or before June 30 and December 31 of each year, a list,
in such form as the Trustee may reasonably require, of the names and addresses of the Holders as of a date not more than fifteen (15) days prior to the delivery thereof, and 
  
 (b) at such other times as the Trustee may request in writing, within thirty (30) days after the receipt by the Company of
any such request, a list of similar form and content as of a date not more than fifteen (15) days prior to the time such list is furnished, 
  
 in each case to the extent such information is in the possession or control of the Company and has not otherwise been received by the Trustee in its capacity as
Securities Registrar. 
  
 SECTION 7.2. Preservation of
Information, Communications to Holders. 
  
 (a) The Trustee
shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee as provided in Section 7.1 and the names and addresses of Holders received by the
Trustee in its capacity as Securities Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.1 upon receipt of a new list so furnished. 
  

					
	 	 	46	 	 

 (b) The rights of Holders to communicate with other Holders with respect to their rights under this
Indenture or under the Securities, and the corresponding rights and privileges of the Trustee, shall be as provided in the Trust Indenture Act. 
  
 (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor
any agent of either of them shall be held accountable by reason of the disclosure of information as to the names and addresses of the Holders made pursuant to the Trust Indenture Act. 
  
 SECTION 7.3. Reports by Company. 
  
 (a) The Company shall furnish to the Holders and to prospective purchasers of Securities, upon their request, the
information required to be furnished pursuant to Rule 144A(d)(4) under the Securities Act. The delivery requirement set forth in the preceding sentence may be satisfied by compliance with Section 7.3(b) hereof by the Company Parent.

  
 (b) The Company shall furnish to each of (i) the Trustee, (ii)
the Holders and to subsequent holders of Securities, (iii) each Purchaser (as defined in the Purchase Agreements) or such other address as designated thereby) and (iv) any beneficial owner of the Securities reasonably identified to the Company, a
duly completed and executed certificate substantially and substantively in the form attached hereto as Exhibit A, including the financial statements referenced in such Exhibit, which certificate and financial statements shall be so furnished
by the Company not later than sixty (60) days after the end of each of the first three fiscal quarters of each fiscal year of the Company and not later than one hundred twenty (120) days after the end of each fiscal year of the Company. The delivery
requirements under this Section 7.3(b) may be satisfied by compliance with Section 8.16(b) of the Trust Agreement. 
  
 (c) The Company Parent files its annual and quarterly information with the Securities and Exchange Commission (the “Commission”) in
electronic form pursuant to Regulation S-T of the Commission using the Commission’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system. The Trustee is hereby authorized and directed to access the EDGAR system
for purposes of retrieving the financial information so filed. Compliance with the foregoing shall constitute delivery by the Company of its financial statements to the Trustee in compliance with the provisions of Section 314(a) of the Trust
Indenture Act, if applicable. The Trustee shall have no duty to search for or obtain any electronic or other filings that the Company Parent makes with the Commission, regardless of whether such filings are periodic, supplemental or otherwise.
Delivery of reports, information and documents to the Trustee pursuant to this Section 7.3(c) shall be solely for purposes of compliance with this Section 7.3(c) and, if applicable, with Section 314(a) of the Trust Indenture Act. The
Trustee’s receipt of such reports, information and documents shall not constitute notice to it of the content thereof or any matter determinable from the content thereof, including the Company’s compliance with any of its covenants
hereunder, as to which the Trustee is entitled to rely upon Officers’ Certificates. 
  

					
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 ARTICLE VIII 
  
 CONSOLIDATION, MERGER,
CONVEYANCE, TRANSFER OR LEASE 
  
 SECTION 8.1. Company May Consolidate, Etc., Only on Certain Terms. 
  
 The Company shall not consolidate with or merge into any other Person or convey, transfer or lease its properties and assets substantially as an entirety
to any Person, and no Person shall consolidate with or merge into the Company or convey, transfer or lease its properties and assets substantially as an entirety to the Company, unless: 
  
 (a) if the Company shall consolidate with or merge into another Person or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, the entity formed by such consolidation or into which the Company is merged or the Person that acquires by conveyance or transfer, or that leases, the properties and assets of the Company
substantially as an entirety shall be an entity organized and existing under the laws of the United States of America or any State or Territory thereof or the District of Columbia and shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, the due and punctual payment of the principal of and any premium and interest (including any Additional 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; 
  
 (b) immediately after giving effect to such transaction, no Event of Default, and no event that, after notice or lapse of time, or both, would constitute an Event of Default, shall have happened and be continuing; and

  
 (c) the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, any such supplemental indenture comply with this
Article VIII and that all conditions precedent herein provided for relating to such transaction have been complied with; and the Trustee may rely upon such Officers’ Certificate and Opinion of Counsel as conclusive evidence that such
transaction complies with this Section 8.1. 
  
 SECTION
8.2. Successor Company Substituted. 
  
 (a) Upon any
consolidation or merger by the Company with or into any other Person, or any conveyance, transfer or lease by the Company of its properties and assets substantially as an entirety to any Person in accordance with Section 8.1 and the execution
and delivery to the Trustee of the supplemental indenture described in Section 8.1 (a), the successor entity 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 in the event of any such conveyance or transfer,
following the execution and delivery of such supplemental indenture, the Company shall be discharged from all obligations and covenants under the Indenture and the Securities. 
  
 (b) Such successor Person may cause to be executed, and may issue either in its own name or in the name of the Company, any
or all of the Securities issuable hereunder that 

  

					
	 	 	48	 	 

 
theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such successor Person instead of the Company and
subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Securities that previously shall have been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities that such successor Person thereafter shall cause to be executed and delivered to the Trustee on its behalf. All the Securities so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this Indenture. 
  
 (c) In case of any such consolidation, merger, sale, conveyance or lease, such changes in phraseology and form may be made in the Securities thereafter to
be issued as may be appropriate to reflect such occurrence. 
  
 ARTICLE IX 
  
 SUPPLEMENTAL
INDENTURES 
  
 SECTION 9.1. Supplemental
Indentures without Consent of Holders. 
  
 Without the consent
of any Holders, the Company, when authorized by a General Partner Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form reasonably satisfactory to the Trustee, for any of
the following purposes: 
  
 (a) to evidence the succession of
another Person to the Company, and the assumption by any such successor of the covenants of the Company herein and in the Securities; or 
  
 (b) to cure any ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other provision herein, or to make
or amend any other provisions with respect to matters or questions arising under this Indenture, which shall not be inconsistent with the other provisions of this Indenture, provided, that such action pursuant to this clause (b) shall not
adversely affect in any material respect the interests of any Holders or the holders of the Preferred Securities; or 
  
 (c) to add to the covenants, restrictions or obligations of the Company or to add to the Events of Default, provided, that such action pursuant to
this clause (c) shall not adversely affect in any material respect the interests of any Holders or the holders of the Preferred Securities; or 
  
 (d) to modify, eliminate or add to any provisions of the Indenture or the Securities to such extent as shall be necessary to ensure that the Securities
are treated as indebtedness of the Company for United States Federal income tax purposes, provided, that such action pursuant to this clause (d) shall not adversely affect in any material respect the interests of any Holders or the holders of
the Preferred Securities. 
  
 SECTION 9.2. Supplemental
Indentures with Consent of Holders. 
  
 (a) With the consent
of the Holders of not less than a majority in aggregate principal amount of the Outstanding Securities, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a General Partner Resolution, and the Trustee
may 

  

					
	 	 	49	 	 

 
enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities under this Indenture; provided, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security,

  
 (i) change the Stated Maturity of the
principal or any premium of any Security or change the date of payment of any installment of interest (including any Additional Interest) on any Security, or reduce the principal amount thereof or the rate of interest thereon or any premium payable
upon the redemption thereof or change the place of payment where, or the coin or currency in which, any Security or interest thereon is payable, or restrict or impair the right to institute suit for the enforcement of any such payment on or after
such date, or 
  
 (ii) reduce the percentage in
aggregate 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 of compliance with any provision of this Indenture or
of defaults hereunder and their consequences provided for in this Indenture, or 
  
 (iii) modify any of the provisions of this Section 9.2, Section 5.13 or Section 10.7, except to increase any
percentage in aggregate principal amount of the Outstanding Securities, the consent of whose Holders is required for any reason, or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the
Holder of each Security; 
  
 provided, further, that, so long as any
Preferred Securities remain outstanding, no amendment under this Section 9.2 shall be effective until the holders of a majority in Liquidation Amount of the Preferred Securities shall have consented to such amendment; provided, further,
that if the consent of the Holder of each Outstanding Security is required for any amendment under this Indenture, such amendment shall not be effective until the holder of each Outstanding Preferred Security shall have consented to such
amendment. 
  
 (b) It shall not be necessary for any Act of
Holders under this Section 9.2 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
  
 SECTION 9.3. Execution of Supplemental Indentures. 
  
 In executing or accepting the additional trusts created by any supplemental indenture permitted by this Article IX or
the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and shall be fully protected in conclusively relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture, and that all conditions precedent herein provided for relating to such action have been complied with. The Trustee may, but shall not be obligated to, enter into
any such supplemental indenture that affects the Trustee’s own rights, duties, indemnities or immunities under this Indenture or otherwise. Copies of the final form of each supplemental indenture shall be delivered by the Trustee at the expense
of the 

  

					
	 	 	50	 	 

 
Company to each Holder, and, if the Trustee is the Property Trustee, to each holder of Preferred Securities, promptly after the execution thereof.

  
 SECTION 9.4. Effect of Supplemental Indentures.

  
 Upon the execution of any supplemental indenture under this
Article IX, 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 and every holder of Preferred Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby. 
  
 SECTION 9.5. Reference in Securities to Supplemental Indentures. 
  
 Securities authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and shall if required by
the Company, bear a notation in form approved by the Company as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Company, to any such
supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities. 
  
 ARTICLE X 
  
 COVENANTS 
  
 SECTION 10.1. Payment of Principal, Premium, if any, and Interest. 
  
 The Company covenants and agrees for the benefit of the Holders of the Securities that it will duly and punctually pay the principal of and any premium
and interest (including any Additional Interest) on the Securities in accordance with the terms of the Securities and this Indenture. 
  
 SECTION 10.2. Money for Security Payments to be Held in Trust. 
  
 (a) If the Company shall at any time act as its own Paying Agent with respect to the Securities, it will, on or before each
due date of the principal of and any premium or interest (including any Additional Interest) on the Securities, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal and any premium or
interest (including Additional Interest) so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and will promptly notify the Trustee in writing of its failure so to act. 
  
 (b) Whenever the Company shall have one or more Paying Agents, it will, prior
to 10:00 a.m., New York City time, on each due date of the principal of or any premium or interest (including any Additional Interest) on any Securities, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be held as
provided in the Trust Indenture Act and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its failure so to act. 
  
 (c) The Company will cause each Paying Agent for the Securities other than the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall 

  

					
	 	 	51	 	 

 
agree with the Trustee, subject to the provisions of this Section 10.2, that such Paying Agent will (i) comply with the provisions of this Indenture
and the Trust Indenture Act applicable to it as a Paying Agent and (ii) during the continuance of any default by the Company (or any other obligor upon the Securities) in the making of any payment in respect of the Securities, upon the written
request of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent for payment in respect of the Securities. 
  
 (d) The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by
Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 
  
 (e) Any money deposited with the Trustee or any Paying Agent, or then held by the Company in trust for the payment of the principal of and any premium or
interest (including any Additional Interest) on any Security and remaining unclaimed for two years after such principal and any premium or interest has become due and payable shall (unless otherwise required by mandatory provision of applicable
escheat or abandoned or unclaimed property law) be paid on Company Request to the Company, or (if then held by the Company) shall (unless otherwise required by mandatory provision of applicable escheat or abandoned or unclaimed property law) be
discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and
all liability of the Company as trustee thereof, shall thereupon cease; provided, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in a
newspaper published in the English language, customarily published on each Business Day and of general circulation in the Borough of Manhattan, The City of New York, notice that such money remains unclaimed and that, after a date specified therein,
which shall not be less than thirty (30) days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
  
 SECTION 10.3. Statement as to Compliance. 
  
 The Company shall deliver to the Trustee, within one hundred and twenty (120) days after the end of each fiscal year of the
Company ending after the date hereof, an Officers’ Certificate covering the preceding calendar year, stating whether or not to the knowledge of the signers thereof the Company is in default in the performance or observance of any of the terms,
provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided hereunder), and if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may
have knowledge. The delivery requirements of this Section 10.3 may be satisfied by compliance with Section 8.16(a) of the Trust Agreement. 
  

					
	 	 	52	 	 

 SECTION 10.4. Calculation Agent. 
  
 (a) The Company hereby agrees that for so long as any of the Securities remain Outstanding, there will at all times be an
agent appointed to calculate LIBOR in respect of each Interest Payment Date in accordance with the terms of Schedule A (the “Calculation Agent”). The Company has initially appointed the Property Trustee as Calculation Agent
for purposes of determining LIBOR for each Interest Payment Date. The Calculation Agent may be removed by the Company at any time. Notwithstanding the foregoing, so long as the Property Trustee holds any of the Securities, the Calculation Agent
shall be the Property Trustee. If the Calculation Agent is unable or unwilling to act as such or is removed by the Company, the Company will promptly appoint as a replacement Calculation Agent the London office of a leading bank which is engaged in
transactions in Eurodollar deposits in the international Eurodollar market and which does not control or is not controlled by or under common control with the Company or its Affiliates. The Calculation Agent may not resign its duties without a
successor having been duly appointed. 
  
 (b) The Calculation
Agent shall be required to agree that, as soon as possible after 11:00 a.m. (London time) on each LIBOR Determination Date (as defined in Schedule A), but in no event later than 11:00 a.m. (London time) on the Business Day immediately
following each LIBOR Determination Date, the Calculation Agent will calculate the interest rate (the Interest Payment shall be rounded to the nearest cent, with half a cent being rounded upwards) for the related Interest Payment Date, and will
communicate such rate and amount to the Company, the Trustee, each Paying Agent and the Depositary. The Calculation Agent will also specify to the Company the quotations upon which the foregoing rates and amounts are based and, in any event, the
Calculation Agent shall notify the Company before 5:00 p.m. (London time) on each LIBOR Determination Date that either: (i) it has determined or is in the process of determining the foregoing rates and amounts or (ii) it has not determined and is
not in the process of determining the foregoing rates and amounts, together with its reasons therefor. The Calculation Agent’s determination of the foregoing rates and amounts for any Interest Payment Date will (in the absence of manifest
error) be final and binding upon all parties. For the sole purpose of calculating the interest rate for the Securities, “Business Day” shall be defined as any day on which dealings in deposits in Dollars are transacted in the London
interbank market. 
  
 SECTION 10.5. Additional Tax Sums.

  
 So long as no Event of Default has occurred and is continuing,
if (a) the Trust is the Holder of all of the Outstanding Securities and (b) a Tax Event described in clause (i) or (iii) in the definition of Tax Event in Section 1.1 hereof has occurred and is continuing, the Company shall pay to the Trust
(and its permitted successors or assigns under the related Trust Agreement) for so long as the Trust (or its permitted successor or assignee) is the registered holder of the Outstanding Securities, such amounts as may be necessary in order that the
amount of Distributions (including any Additional Interest Amount (as defined in the Trust Agreement)) then due and payable by the Trust on the Preferred Securities and Common Securities that at any time remain outstanding in accordance with the
terms thereof shall not be reduced as a result of any Additional Taxes arising from such Tax Event (additional such amounts payable by the Company to the Trust, the “Additional Tax Sums”). Whenever in this Indenture or the
Securities there is a reference in any context to the payment of principal of or interest on the Securities, such mention shall be deemed to include mention of the payments of the Additional Tax Sums 

  

					
	 	 	53	 	 

 
provided for in this Section 10.5 to the extent that, in such context, Additional Tax Sums are, were or would be payable in respect thereof pursuant
to the provisions of this Section 10.5 and express mention of the payment of Additional Tax Sums (if applicable) in any provisions hereof shall not be construed as excluding Additional Tax Sums in those provisions hereof where such express
mention is not made. 
  
 SECTION 10.6. Additional
Covenants. 
  
 (a) The Company covenants and agrees with each
Holder of Securities that if an Event of Default shall have occurred and be continuing, it shall not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any shares of the
Company’s capital stock (for the avoidance of doubt, the term “capital stock” with respect to the Company shall include any ownership interest of the Company including without limitation any equity partnership units of the Company),
(ii) vote in favor of or permit or otherwise allow any of its subsidiaries to declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to or otherwise retire, any shares of such
subsidiaries preferred stock (for the avoidance of doubt, whether such preferred stock is perpetual or otherwise), or (iii) make any payment of principal of or any interest or premium, if any, on or repay, repurchase or redeem any debt securities of
the Company that rank pari passu in all respects with or junior in interest to the Securities (other than (A) repurchases, redemptions or other acquisitions of shares of capital stock of the Company in connection with any employment contract,
benefit plan or other similar arrangement with or for the benefit of any one or more employees, officers, directors or consultants, in connection with a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of
capital stock of the Company (or securities convertible into or exercisable for such capital stock) as consideration in an acquisition transaction entered into prior to such Event of Default, (B) as a result of an exchange or conversion of any class
or series of the Company’s capital stock (or any capital stock of a Subsidiary of the Company) for any class or series of the Company’s capital stock or of any class or series of the Company’s indebtedness for any class or series of
the Company’s capital stock, (C) the purchase of fractional interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (D) any
declaration of a dividend in connection with any rights plan, the issuance of rights, stock or other property under any rights plan or the redemption or repurchase of rights pursuant thereto or (E) any dividend in the form of stock, warrants,
options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such stock).

  
 (b) The Company also covenants with each Holder of Securities
(i) to hold, directly or indirectly, one hundred percent (100%) of the Common Securities of the Trust, provided, that any permitted successor of the Company hereunder may succeed to the Company’s ownership of such Common Securities, (ii)
as holder of such Common Securities, not to voluntarily dissolve, wind-up or liquidate the Trust other than (A) in connection with a distribution of the Securities to the holders of the Preferred Securities in liquidation of the Trust or (B) in
connection with certain mergers, consolidations or amalgamations permitted by the Trust Agreement and (iii) to use its reasonable commercial efforts, consistent with the terms and provisions of the Trust Agreement, to cause the Trust to continue to
be taxable as a grantor trust and not as a corporation for United States Federal income tax purposes. 
  

					
	 	 	54	 	 

 (c) The Company also agrees that Company Parent will use all reasonable efforts to meet the requirements
to qualify as a real estate investment trust under the Internal Revenue Code of 1986, as amended, for the fiscal year ending December 31, 2005. 
  
 SECTION 10.7. Waiver of Covenants. 
  
 The Company may omit in any particular instance to comply with any covenant or condition contained in Section 10.6 if, before or after the time for
such compliance, the Holders of at least a majority in aggregate principal amount of the Outstanding Securities shall, by Act of such Holders, and at least a majority of the aggregate Liquidation Amount of the Preferred Securities then outstanding,
by consent of such holders, either waive such compliance in such instance or generally waive compliance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly
waived, and, until such waiver shall become effective, the obligations of the Company in respect of any such covenant or condition shall remain in full force and effect. 
  
 SECTION 10.8. Treatment of Securities. 
  
 The Company will treat the Securities as indebtedness, and the amounts, other than payments of principal, payable in respect
of the principal amount of such Securities as interest, for all U.S. federal income tax purposes. All payments in respect of the Securities will be made free and clear of U.S. withholding tax to any beneficial owner thereof that has provided an
Internal Revenue Service Form W-9 or W-8BEN (or any substitute or successor form) establishing its U.S. or non-U.S. status for U.S. federal income tax purposes, or any other applicable form establishing a complete exemption from U.S. withholding
tax. 
  
 ARTICLE XI 
  
 REDEMPTION OF SECURITIES

  
 SECTION 11.1. Optional Redemption. 
  
 The Company may, at its option, on any Interest Payment Date, on or after
July 30, 2010, redeem the Securities in whole at any time or in part from time to time, at a Redemption Price equal to one hundred percent (100%) of the principal amount thereof (or of the redeemed portion thereof, as applicable), together, in the
case of any such redemption, with accrued interest, including any Additional Interest, through but excluding the date fixed as the Redemption Date (the “Optional Redemption Price”). 
  
 SECTION 11.2. Special Event Redemption. 
  
 Prior to July 30, 2010, upon the occurrence and during the continuation of a
Special Event, the Company may, at its option, redeem the Securities, in whole but not in part, at a Redemption Price equal to one hundred seven and one half percent (107.5%) of the principal amount thereof, together, in the case of any such
redemption, with accrued interest, including any Additional Interest, through but excluding the date fixed as the Redemption Date (the “Special Redemption Price”). 
  

					
	 	 	55	 	 

 SECTION 11.3. Election to Redeem; Notice to Trustee. 
  
 The election of the Company to redeem any Securities, in whole or in part,
shall be evidenced by or pursuant to a General Partner Resolution. In case of any redemption at the election of the Company, the Company shall, not less than forty-five (45) days and not more than seventy-five (75) days prior to the Redemption Date
(unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee and the Property Trustee under the Trust Agreement in writing of such date and of the principal amount of the Securities to be redeemed and provide the additional
information required to be included in the notice or notices contemplated by Section 11.5. In the case of any redemption of Securities, in whole or in part, (a) prior to the expiration of any restriction on such redemption provided in
this Indenture or the Securities or (b) pursuant to an election of the Company which is subject to a condition specified in this Indenture or the Securities, the Company shall furnish the Trustee with an Officers’ Certificate and an Opinion of
Counsel evidencing compliance with such restriction or condition. 
  
 SECTION 11.4. Selection of Securities to be Redeemed. 
  
 (a) If less than all the Securities are to be redeemed, the particular Securities to be redeemed shall be selected and redeemed on a pro rata basis not more than sixty (60) days prior to the Redemption Date by the Trustee from the
Outstanding Securities not previously called for redemption, provided, that the unredeemed portion of the principal amount of any Security shall be in an authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. 
  
 (b) The Trustee shall
promptly notify the Company in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed. For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security that has been or is to be
redeemed. 
  
 (c) The provisions of paragraphs (a) and (b) of this
Section 11.4 shall not apply with respect to any redemption affecting only a single Security, whether such Security is to be redeemed in whole or in part. In the case of any such redemption in part, the unredeemed portion of the principal
amount of the Security shall be in an authorized denomination (which shall not be less than the minimum authorized denomination) for such Security. 
  
 SECTION 11.5. Notice of Redemption. 
  
 (a) Notice of redemption shall be given not later than the thirtieth (30th) day, and not earlier than the sixtieth (60th) day, prior to the Redemption Date to each Holder of Securities to be redeemed, in whole or in part, (unless a shorter notice shall be satisfactory to the Property Trustee under the related Trust Agreement). 
  
 (b) With respect to Securities to be redeemed, in whole or in part, each
notice of redemption shall state: 
  
 (i) the
Redemption Date; 
  

					
	 	 	56	 	 

 (ii) the Redemption Price or, if the Redemption Price cannot be calculated prior to the
time the notice is required to be sent, the estimate of the Redemption Price, as calculated by the Company, together with a statement that it is an estimate and that the actual Redemption Price will be calculated on the fifth Business Day prior to
the Redemption Date (and if an estimate is provided, a further notice shall be sent of the actual Redemption Price on the date that such Redemption Price is calculated); 
  
 (iii) if less than all Outstanding Securities are to be redeemed, the identification (and, in the case of
partial redemption, the respective principal amounts) of the particular Securities to be redeemed; 
  
 (iv) that on the Redemption Date, the Redemption Price will become due and payable upon each such Security or portion thereof, and that
any interest (including any Additional Interest) on such Security or such portion, as the case may be, shall cease to accrue on and after said date; and 
  
 (v) the place or places where such Securities are to be surrendered for payment of the Redemption Price. 
  
 (c) Notice of redemption of Securities to be redeemed, in whole or in part,
at the election of the Company shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company and shall be irrevocable. The notice if mailed in the manner provided above shall be
conclusively presumed to have been duly given, whether or not the Holder receives such notice. In any case, a failure to give such notice by mail or any defect in the notice to the Holder of any Security designated for redemption as a whole or in
part shall not affect the validity of the proceedings for the redemption of any other Security. 
  
 SECTION 11.6. Deposit of Redemption Price. 
  
 Prior to 10:00 a.m., New York City time, on the Redemption Date specified in the notice of redemption given as provided in Section 11.5, the
Company will deposit with the Trustee or with one or more Paying Agents (or if the Company is acting as its own Paying Agent, the Company will segregate and hold in trust as provided in Section 10.2) an amount of money sufficient to pay the
Redemption Price of, and any accrued interest (including any Additional Interest) on, all the Securities (or portions thereof) that are to be redeemed on that date. 
  
 SECTION 11.7. Payment of Securities Called for Redemption. 
  
 (a) If any notice of redemption has been given as provided in Section
11.5, the Securities or portion of Securities with respect to which such notice has been given shall become due and payable on the date and at the place or places stated in such notice at the applicable Redemption Price, together with accrued
interest (including any Additional Interest) to the Redemption Date. On presentation and surrender of such Securities at a Place of Payment specified in such notice, the Securities or the specified portions thereof shall be paid and redeemed by the
Company at the applicable Redemption Price, together with accrued interest (including any Additional Interest) to the Redemption Date. 
  
 (b) Upon presentation of any Security redeemed in part only, the Company shall execute and the Trustee shall authenticate and deliver to the Holder
thereof, at the expense of the 

  

					
	 	 	57	 	 

 
Company, a new Security or Securities, of authorized denominations, in aggregate principal amount equal to the unredeemed portion of the Security so
presented and having the same Original Issue Date, Stated Maturity and terms. 
  
 (c) If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal of and any premium on such Security shall, until paid, bear interest from the Redemption Date at the
rate prescribed therefor in the Security. 
  
 ARTICLE XII

  
 SUBORDINATION OF
SECURITIES 
  
 SECTION 12.1. Securities
Subordinate to Senior Debt. 
  
 The Company covenants and
agrees, and each Holder of a Security, by its acceptance thereof, likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this Article XII, the payment of the principal of and any premium and interest
(including any Additional Interest) on each and all of the Securities are hereby expressly made subordinate and subject in right of payment to the prior payment in full of all Senior Debt. 
  
 SECTION 12.2. No Payment When Senior Debt in Default; Payment Over of
Proceeds Upon Dissolution, Etc. 
  
 (a) In the event and
during the continuation of any default by the Company in the payment of any principal of or any premium or interest on any Senior Debt (following any grace period, if applicable) when the same becomes due and payable, whether at maturity or at a
date fixed for prepayment or by declaration of acceleration or otherwise, then, upon written notice of such default to the Company by the holders of such Senior Debt or any trustee therefor, unless and until such default shall have been cured or
waived or shall have ceased to exist, no direct or indirect payment (in cash, property, securities, by set-off or otherwise) shall be made or agreed to be made on account of the principal of or any premium or interest (including any Additional
Interest) on any of the Securities, or in respect of any redemption, repayment, retirement, purchase or other acquisition of any of the Securities. 
  
 (b) In the event of a bankruptcy, insolvency or other proceeding described in clause (d) or (e) of the definition of Event of Default (each such event, if
any, herein sometimes referred to as a “Proceeding”), all Senior Debt (including any interest thereon accruing after the commencement of any such proceedings) shall first be paid in full before any payment or distribution,
whether in cash, securities or other property, shall be made to any Holder of any of the Securities on account thereof. Any payment or distribution, whether in cash, securities or other property (other than securities of the Company or any other
entity provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided in these subordination provisions with respect to the indebtedness evidenced by the Securities, to the payment of
all Senior Debt at the time outstanding and to any securities issued in respect thereof under any such plan of reorganization or readjustment), which would otherwise (but for these subordination provisions) be payable or deliverable in respect of
the Securities shall be paid or delivered directly to the holders of Senior Debt in accordance with the priorities 

  

					
	 	 	58	 	 

 
then existing among such holders until all Senior Debt (including any interest thereon accruing after the commencement of any Proceeding) shall have been
paid in full. 
  
 (c) In the event of any Proceeding, after
payment in full of all sums owing with respect to Senior Debt, the Holders of the Securities, together with the holders of any obligations of the Company ranking on a parity with the Securities, shall be entitled to be paid from the remaining assets
of the Company the amounts at the time due and owing on account of unpaid principal of and any premium and interest (including any Additional Interest) on the Securities and such other obligations before any payment or other distribution, whether in
cash, property or otherwise, shall be made on account of any capital stock or any obligations of the Company ranking junior to the Securities and such other obligations. If, notwithstanding the foregoing, any payment or distribution of any character
or any security, whether in cash, securities or other property (other than securities of the Company or any other entity provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided in
these subordination provisions with respect to the indebtedness evidenced by the Securities, to the payment of all Senior Debt at the time outstanding and to any securities issued in respect thereof under any such plan of reorganization or
readjustment) shall be received by the Trustee or any Holder in contravention of any of the terms hereof and before all Senior Debt shall have been paid in full, such payment or distribution or security shall be received in trust for the benefit of,
and shall be paid over or delivered and transferred to, the holders of the Senior Debt at the time outstanding in accordance with the priorities then existing among such holders for application to the payment of all Senior Debt remaining unpaid, to
the extent necessary to pay all such Senior Debt (including any interest thereon accruing after the commencement of any Proceeding) in full. In the event of the failure of the Trustee or any Holder to endorse or assign any such payment, distribution
or security, each holder of Senior Debt is hereby irrevocably authorized to endorse or assign the same. 
  
 (d) The Trustee and the Holders, at the expense of the Company, shall take such reasonable action (including the delivery of this Indenture to an agent
for any holders of Senior Debt or consent to the filing of a financing statement with respect hereto) as may, in the opinion of counsel designated by the holders of a majority in principal amount of the Senior Debt at the time outstanding, be
necessary or appropriate to assure the effectiveness of the subordination effected by these provisions. 
  
 (e) The provisions of this Section 12.2 shall not impair any rights, interests, remedies or powers of any secured creditor of the Company in
respect of any security interest the creation of which is not prohibited by the provisions of this Indenture. 
  
 (f) The securing of any obligations of the Company, otherwise ranking on a parity with the Securities or ranking junior to the Securities, shall not be
deemed to prevent such obligations from constituting, respectively, obligations ranking on a parity with the Securities or ranking junior to the Securities. 
  
 SECTION 12.3. Payment Permitted If No Default. 
  
 Nothing contained in this Article XII or elsewhere in this Indenture or in any of the Securities shall prevent (a) the Company, at any time, except
during the pendency of the conditions described in paragraph (a) of Section 12.2 or of any Proceeding referred to in 

  

					
	 	 	59	 	 

 
Section 12.2, from making payments at any time of principal of and any premium or interest (including any Additional Interest) on the Securities or
(b) the application by the Trustee of any moneys deposited with it hereunder to the payment of or on account of the principal of and any premium or interest (including any Additional Interest) on the Securities or the retention of such payment by
the Holders, if, at the time of such application by the Trustee, it did not have knowledge (in accordance with Section 12.8) that such payment would have been prohibited by the provisions of this Article XII, except as provided in
Section 12,8. 
  
 SECTION 12.4. Subrogation to Rights of
Holders of Senior Debt. 
  
 Subject to the payment in full of
all amounts due or to become due on all Senior Debt, or the provision for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the holders of Senior Debt, the Holders of the Securities shall be subrogated to the extent
of the payments or distributions made to the holders of such Senior Debt pursuant to the provisions of this Article XII (equally and ratably with the holders of all indebtedness of the Company that by its express terms is subordinated to
Senior Debt of the Company to substantially the same extent as the Securities are subordinated to the Senior Debt and is entitled to like rights of subrogation by reason of any payments or distributions made to holders of such Senior Debt) to the
rights of the holders of such Senior Debt to receive payments and distributions of cash, property and securities applicable to the Senior Debt until the principal of and any premium and interest (including any Additional Interest) on the Securities
shall be paid in full. For purposes of such subrogation, no payments or distributions to the holders of the Senior Debt of any cash, property or securities to which the Holders of the Securities or the Trustee would be entitled except for the
provisions of this Article XII, and no payments made pursuant to the provisions of this Article XII to the holders of Senior Debt by Holders of the Securities or the Trustee, shall, as among the Company, its creditors other than
holders of Senior Debt, and the Holders of the Securities, be deemed to be a payment or distribution by the Company to or on account of the Senior Debt. 
  
 SECTION 12.5. Provisions Solely to Define Relative Rights. 
  

The provisions of this Article XII are and are intended solely for the purpose of defining the relative rights of the Holders of the Securities
on the one hand and the holders of Senior Debt on the other hand. Nothing contained in this Article XII or elsewhere in this Indenture or in the Securities is intended to or shall (a) impair, as between the Company and the Holders of the
Securities, the obligations of the Company, which are absolute and unconditional, to pay to the Holders of the Securities the principal of and any premium and interest (including any Additional Interest) on the Securities as and when the same shall
become due and payable in accordance with their terms, (b) affect the relative rights against the Company of the Holders of the Securities and creditors of the Company other than their rights in relation to the holders of Senior Debt or (c) prevent
the Trustee or the Holder of any Security (or to the extent expressly provided herein, the holder of any Preferred Security) from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, including filing and
voting claims in any Proceeding, subject to the rights, if any, under this Article XII of the holders of Senior Debt to receive cash, property and securities otherwise payable or deliverable to the Trustee or such Holder. 
  

					
	 	 	60	 	 

 SECTION 12.6. Trustee to Effectuate Subordination. 
  
 Each Holder of a Security by his or her acceptance thereof authorizes and
directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination provided in this Article XII and appoints the Trustee his or her attorney-in-fact for any and all
such purposes. 
  
 SECTION 12.7. No Waiver of Subordination
Provisions. 
  
 (a) No right of any present or future holder
of any Senior Debt to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by
any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof that any such holder may have or be otherwise charged with. 
  
 (b) Without in any way limiting the generality of paragraph (a) of this
Section 12.7, the holders of Senior Debt may, at any time and from to time, without the consent of or notice to the Trustee or the Holders of the Securities, without incurring responsibility to such Holders of the Securities and without
impairing or releasing the subordination provided in this Article XII or the obligations hereunder of such Holders of the Securities to the holders of Senior Debt, do any one or more of the following: (i) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, Senior Debt, or otherwise amend or supplement in any manner Senior Debt or any instrument evidencing the same or any agreement under which Senior Debt is outstanding, (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise securing Senior Debt, (iii) release any Person liable in any manner for the payment of Senior Debt and (iv) exercise or refrain from exercising any rights against the
Company and any other Person. 
  
 SECTION 12.8. Notice to
Trustee. 
  
 (a) The Company shall give prompt written notice
to a Responsible Officer of the Trustee of any fact known to the Company that would prohibit the making of any payment to or by the Trustee in respect of the Securities. Notwithstanding the provisions of this Article XII or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment to or by the Trustee in respect of the Securities, unless and until a Responsible Officer of the
Trustee shall have received written notice thereof from the Company or a holder of Senior Debt or from any trustee, agent or representative therefor; provided, that if the Trustee shall not have received the notice provided for in this
Section 12.8 at least two Business Days prior to the date upon which by the terms hereof any monies may become payable for any purpose (including, the payment of the principal of and any premium on or interest (including any Additional
Interest) on any Security), then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such monies and to apply the same to the purpose for which they were received and shall not be
affected by any notice to the contrary that may be received by it within two Business Days prior to such date. 
  

					
	 	 	61	 	 

 (b) The Trustee shall be entitled to rely on the delivery to it of a written notice by a Person
representing himself or herself to be a holder of Senior Debt (or a trustee, agent, representative or attorney-in-fact therefor) to establish that such notice has been given by a holder of Senior Debt (or a trustee, agent, representative or
attorney-in-fact therefor). In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any Person as a holder of Senior Debt to participate in any payment or distribution pursuant to this
Article XII, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Debt held by such Person, the extent to which such Person is entitled to participate in such payment
or distribution and any other facts pertinent to the rights of such Person under this Article XII, and if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such
Person to receive such payment. 
  
 SECTION 12.9. Reliance on
Judicial Order or Certificate of Liquidating Agent. 
  
 Upon
any payment or distribution of assets of the Company referred to in this Article XII, the Trustee and the Holders of the Securities shall be entitled to conclusively rely upon any order or decree entered by any court of competent jurisdiction
in which such Proceeding is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit of creditors, agent or other Person making such payment or distribution, delivered to the Trustee
or to the Holders of Securities, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of the Senior Debt and other indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XII. 
  
 SECTION 12.10. Trustee Not Fiduciary for Holders of Senior Debt. 
  
 The Trustee, in its capacity as trustee under this Indenture, shall not be deemed to owe any fiduciary duty to the holders
of Senior Debt and shall not be liable to any such holders if it shall in good faith mistakenly pay over or distribute to Holders of Securities or to the Company or to any other Person cash, property or securities to which any holders of Senior Debt
shall be entitled by virtue of this Article XII or otherwise. 
  
 SECTION 12.11. Rights of Trustee as Holder of Senior Debt; Preservation of Trustee’s Rights. 
  
 The Trustee in its individual capacity shall be entitled to all the rights set forth in this Article XII with respect to any Senior Debt that may
at any time be held by it, to the same extent as any other holder of Senior Debt, and nothing in this Indenture shall deprive the Trustee of any of its rights as such holder. 
  
 SECTION 12.12. Article Applicable to Paying Agents. 
  
 If at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting
hereunder, the term “Trustee” as used in this Article XII shall in such case (unless the context otherwise requires) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article XII in addition to or in place of the Trustee; provided, that 

  

					
	 	 	62	 	 

 
Sections 12.8 and 12.11 shall not apply to the Company or any Affiliate of the Company if the Company or such Affiliate acts as Paying
Agent. 
  
 *  *  *  * 
  
 This instrument may be executed in any number of counterparts, each of which
so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
  
 *  *  *  * 
  

					
	 	 	63	 	 

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

			
	Extra Space Storage LP
		
	By:	 	ESS Holdings Business Trust I
	Its:	 	General Partner
		
	By:	 	/s/    CHARLES L ALLEN        
	Name:	 	Charles L Allen
	Title:	 	Trustee

  

			
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	/s/    SHELLY A.
STERLING        
	Name:	 	Shelly A. Sterling
	Title:	 	Vice President

  

					
	 	 	64	 	 

 Schedule A 
  

DETERMINATION OF LIBOR 
  
 With respect to the Securities, the London interbank offered rate (“LIBOR”) shall be determined by the Calculation Agent in accordance
with the following provisions (in each case rounded to the nearest .000001%): 
  
 (1) Subsequent to expiration of the Fixed Rate Period, on the second LIBOR Business Day (as defined below) prior to an Interest Payment Date (each such day, a “LIBOR Determination Date”), LIBOR for any given security shall
for the following interest payment period equal the rate, as obtained by the Calculation Agent from Bloomberg Financial Markets Commodities News, for three-month Eurodollar deposits that appears on Dow Jones Telerate Page 3750 (as defined in the
International Swaps and Derivatives Association, Inc. 1991 Interest Rate and Currency Exchange Definitions), or such other page as may replace such Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date. 
  
 (2) If, on any LIBOR Determination Date, such rate does not appear on Dow Jones Telerate Page
3750 or such other page as may replace such Page 3750, the Calculation Agent shall determine the arithmetic mean of the offered quotations of the Reference Banks (as defined below) to leading banks in the London interbank market for three-month
Eurodollar deposits in an amount determined by the Calculation Agent by reference to requests for quotations as of approximately 11:00 a.m. (London time) on the LIBOR Determination Date made by the Calculation Agent to the Reference Banks. If, on
any LIBOR Determination Date, at least two of the Reference Banks provide such quotations, LIBOR shall equal such arithmetic mean of such quotations. If, on any LIBOR Determination Date, only one or none of the Reference Banks provide such
quotations, LIBOR shall be deemed to be the arithmetic mean of the offered quotations that leading banks in the City of New York selected by the Calculation Agent are quoting on the relevant LIBOR Determination Date for three-month Eurodollar
deposits in an amount determined by the Calculation Agent by reference to the principal London offices of leading banks in the London interbank market; provided that, if the Calculation Agent is required but is unable to determine a rate in
accordance with at least one of the procedures provided above, LIBOR shall be LIBOR as determined on the previous LIBOR Determination Date. 
  
 (3) As used herein: “Reference Banks” means four major banks in the London interbank market selected by the Calculation Agent; and “LIBOR
Business Day” means a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in London. 
  

					
	 	 	Schedule A-1	 	 

 Form of General Partner’s Financial Certificate 
  
 The undersigned, the [trustee of the general partner or officer of the
Company] hereby certifies, pursuant to Section 7.3(b) of the Junior Subordinated Indenture, dated as of July 27, 2005 (the “Indenture”), among Extra Space Storage LP (the “Company”) and JPMorgan Chase Bank, National Association,
as trustee, that, as of [date], [20    ]: 
  
 [FOR
FISCAL YEAR END: Attached hereto are the audited consolidated financial statements (including the balance sheet, income statement and statement of cash flows, and notes thereto, together with the report of the independent accountants thereon) of the
Company Parent and its consolidated subsidiaries for the three years ended [date], 20    .] 
  
 [FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated and consolidating financial statements (including the balance sheet and income statement) of the
Company Parent and its consolidated subsidiaries for the fiscal quarter ended [date], 20    .] 
  
 The financial statements fairly present in all material respects, in accordance with U.S. generally accepted accounting principles (“GAAP”), the
financial position of the Company Parent and its consolidated subsidiaries, and the results of operations and changes in financial condition as of the date, and for the [quarter] [annual] period ended [date], 20    , and
such financial statements have been prepared in accordance with GAAP consistently applied throughout the period involved (expect as otherwise noted therein). 
  

					
	 	 	Schedule A-2	 	 

 IN WITNESS WHEREOF, the undersigned has executed this General Partner’s Financial Certificate as of
this              day of
                            , 20    . 
  

			
		
	By:	 	 
	Name:	 	 
	
	 Extra Space Storage LP
 2795 East Cottonwood Parkway, Suite 400
 Salt Lake City, UT 84121
 801-365-4537

  

					
	 	 	Schedule A-3

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