Document:

Exhibit
10.29

 

FOUNDERS
TOWER OFFICE LEASE

 

THIS OFFICE LEASE
AGREEMENT (this “Lease”) is made as of the 18th day of November,
2002, and is by and between HEBRON COMMUNICATIONS CORPORATION, a Florida
Corporation whose notice address is 5900 N. Mosteller Drive, Suite 1150,
Oklahoma City, Oklahoma 73112 (“Landlord”) and Amerivision
Communications Inc. an Oklahoma Corporation whose notice address is 5900
Mosteller Drive. Suite 1600. Oklahoma City. Oklahoma 73112  (“Tenant”). Capitalized
terms used herein are either defined in the text of this Lease, in Article 1
below (which contains certain definitions used herein and the basic economic
terms of this Lease), or in the Exhibits attached hereto.

 

RECITALS:

 

A.              Landlord is the owner of the
Building commonly known as the “Founders Tower” (herein the “Building”) located
at 5900 N. Mosteller Drive in Oklahoma City, Oklahoma.

 

B.               Landlord desires to lease to
Tenant and Tenant desires to lease from Landlord, the Premises, as hereinafter
defined, on the terms and conditions stated in this Lease.

 

AGREEMENT:

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Landlord and Tenant agree as follows:

 

Article 1

DEFINITIONS

 

1.1             Lease;
Landlord. The term “Lease” and such terms as “herein,”
“hereof,” “hereby,” “hereunder,” “hereto” and the like will mean this Office
Lease Agreement, together with all exhibits and schedules now or hereafter
attached hereto, and all modifications, amendments, extensions and renewals of
this Office Lease Agreement. The term “Landlord” shall be deemed to include, as
applicable, any successor in interest to Founders Tower as owner of the
Building.

 

1.2             Definition of Basic Lease Terms.
When used in this Lease, the following terms shall have the meanings set forth
below, unless the context of this Lease clearly requires otherwise.

 

“Actual Expense Increase”: The
amount by which Operating Expenses in any particular calendar year exceed
Operating Expenses incurred in the Base Expense Year.

 

“Additional Rent”: All
sums payable by Tenant under or pursuant to this Lease, whether to Landlord or
others, other than Base Rent.

 

“Base Expense Year”: Shall
mean the calendar year 2003. 

 

“Base Rent”: The
sum of $10,935.75 per month or $131,229.00 per year, plus any
additional amounts payable with respect to any partial month at the beginning
of the Term, as provided in Section 4.1 below. 

 

“Commencement Date”: The
date determined pursuant to Article 3 of this Lease.

 

“Common Areas”: Those
areas in the Building consisting of corridors, elevator foyers, restrooms,
plaza areas and other similar facilities provided for the common use and
benefit of the tenants of the Building or patrons thereof.

 

“Estimated Expense Increase”: Landlord’s
estimate of the amount by which Operating Expenses for any particular calendar
year will exceed Operating Expenses for the Base Expense Year.

 

 

“Expiration Date”:    December 31. 2004

 

“Guarantor(s)”:  Not
applicable.

 

“Legal Requirements”: All
federal state, and local laws (whether imposed by statute, ordinance,
regulation, administrative or judicial order, any other governmental authority,
or common law), rules and regulations of utility companies, and all restrictive
covenants and Rules and Regulations now or hereafter in effect which are
applicable to the construction, modification, use or occupancy of the Premises,
Building and areas adjacent and appurtenant thereto, including, without
limitation, zoning ordinances, development and subdivision regulations,
building (including the Americans With Disabilities Act), fire and safety
codes, parking and traffic regulations, and environmental requirements.

 

“Normal Business
Hours”: 7:30
a.m. to 6:30 p.m. Monday through Friday, and 8:00 a.m. to 1:00 p.m. Saturday,
legal holidays excepted.

 

“Operating Expenses”: See
definition attached as Exhibit B hereto.

 

“Permitted Use”: General
office use.

 

“Premises”:
The tenant space located in the Building and known as Suite/Suites Floors 13
and 16 and depicted on Exhibit A hereto.

 

“Rent”: All
Base Rent and Additional Rent.

 

“Rentable Area of  the
Building”: 175,277 square feet.

 

“Rules and Regulations”:
The rules and regulations relating to the use and occupancy of the Premises and
the Common Areas as set forth on Exhibit E attached hereto and as the same
may be amended from time to time by Landlord.

 

“Scheduled Commencement Date”:  January
1. 2003.

 

“Security Deposit”:
   $10,000 deposited with lease dated
January 1, 2000.

 

“Tenant’s Pro-Rata Share”:  7.13%.

 

“Term”: The
period beginning on the Commencement Date and ending on the Expiration Date, or
any earlier date on which the Term is terminated pursuant to the terms of this
Lease.

 

Article 2

LEASE OF PREMISES

 

2.1             Lease.  In consideration of the
payment of Rent and the performance of the covenants and agreements by Tenant
hereinafter set forth, Landlord hereby leases and demises to Tenant the
Premises, together with the non-exclusive right, subject to the provisions
hereof, to use all appurtenances thereto, including the Building Common Areas
and parking facilities designated from time to time by Landlord for the
exclusive or non-exclusive use of the tenants of the Building.

 

2.2             Quiet
Enjoyment. So  long as Tenant is not in default under
this Lease, Tenant shall be entitled to the quiet enjoyment and peaceful
possession of the Premises, subject to the terms and provisions of the Lease,
including, without limitation, the Rules and Regulations.

 

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Article 3

TERM

 

3.1                                        Term.
This Lease shall be effective as of the date first written above.  The Term shall end without notice on the
Expiration Date.

 

3.2             Surrender;
Holding Over.  Upon
the expiration or other termination of the Term, Tenant shall promptly quit the
Premises and surrender the same to Landlord in good order and condition,
ordinary wear and tear and loss by fire or other casualty excepted, unless due
to the negligence of Tenant, and Tenant shall remove all of its movable
furniture, trade fixtures and other personal property. The parties agree that
their respective rights and obligations regarding goods, furniture,
furnishings, trade fixtures and any other personal property belonging to Tenant
which is left in the Premises at the end of the Term will be governed by the
provisions of Section 52 of Title 41 of the Oklahoma Statutes, as the same may
be amended from time to time. If Tenant remains in possession of the Premises
after the expiration of the Term and continues to pay Rent, and Landlord
accepts such Rent, without any express written agreement as to such holding
over, then such holding over shall be deemed to be a tenancy from
month-to-month, subject to all the terms and conditions hereof on the part of
Tenant to be observed and performed and at a monthly Base Rent equivalent to
two hundred percent (200%) of the monthly Base Rent payable by Tenant
immediately prior to such expiration, plus all other Additional Rent payable
hereunder. All such Rent shall be payable in advance on the same day of each
calendar month. Nothing contained herein shall be construed as obligating
Landlord to accept any rental tendered by Tenant after the expiration of the
Term or to relieve Tenant of its obligation as set forth above to surrender the
Premises at the end of the Term and any holdover without Landlord’s consent
shall be deemed a default hereunder entitling Landlord to all of its rights and
remedies set forth in Article 15 below, including, without limitation, its
right to recover consequential damages resulting from said holdover.

 

3.3             Right
of Entry. After reasonable prior notice to the Tenant,
Landlord may enter the Premises to exhibit the Premises to prospective tenants,
purchaser or mortgagee.

 

Article 4

RENT

 

4.1             Base
Rent. Tenant agrees to pay Landlord the applicable Base
Rent specified in Section 1.2 above. 
All  Base Rent shall be paid in advance
commencing on the Commencement Date and on the first (1st) day of each calendar
month thereafter during the Term. If the Commencement Date is on other than the
first day of a calendar month, the first installment of Base Rent shall be
prorated based on the number of days from the Commencement Date to the first
day of the next succeeding calendar month, based upon a 30-day month.

 

4.2             Additional
Rent. In addition to Base Rent, Tenant agrees to pay the
various items of Additional Rent at the times required under this Lease,
including specifically increases in Operating Expenses as referenced in Article
7 below.

 

4.3             Delinquent
Rent.  If any Base
Rent is not paid within five  (5)  days of the day on which it becomes due
(i.e. the first of each month), Landlord may collect a late charge in an amount
equal to ten percent (10%) of the delinquent sum. Late charges shall be
considered Additional Rent and failure to pay the same shall be considered a
default hereunder. Any Rent which remains unpaid for more than thirty (30) days
following its due date shall bear interest from the date due until paid at the
rate of eighteen percent (18%) per annum (the ‘Default Rate”) based on a
360-day year. Payment of such late charges and/or interest shall, at Landlord’s
option, be a condition precedent to curing any default hereunder. Landlord’s

 

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acceptance of subsequent
installments of Rent without having received any accrued late charges or
interest will not waive Landlord’s right to collect such late charges and
interest at any’ time thereafter, including if applicable, at the expiration or
sooner termination of the Term.

 

4.4             Payments
Under Lease.  Except
as otherwise specifically provided in this Lease, Tenant agrees to pay all Rent
provided for herein without demand. The obligation of the Tenant to pay Rent
under this Lease is an independent covenant and no act or circumstance
whatsoever (whether constituting a default by Landlord or not) will release
Tenant from the obligation to pay Rent timely or give rise to any deduction
from or setoff against Rent payable hereunder.

 

Article 5

TENANT IMPROVEMENTS

 

5.1             Construction
and Installation of the Tenant Improyements. The  construction
and installation of tenant improvements shall be governed by the Work Letter,
if any, attached to this Lease as Exhibit D. 
Except as may be specifically set forth in any such Work Letter,
Landlord shall have no obligation for the construction and installation of
tenant improvements or the completion or remodeling of the Premises. Tenant
agrees to accept the Premises in their “as is” condition after completion of
any portion of the work to be performed by Landlord. If Landlord is delayed in
delivering the Premises to Tenant due to the failure of a prior occupant to
vacate or remove its property from the same, then Landlord’s obligation to
commence its portion of its work if any, shall be delayed by a like period of
time. The postponement of Tenant’s obligation to pay Rent and other sums
hereunder shall be in full settlement of all claims which Tenant may otherwise
have by reason of such delay of delivery.

 

5.2             Acceptance
of Premises. Except as provided in the Work Letter,
taking possession of the Premises by’ Tenant shall be conclusive evidence as
against Tenant that the Premises were in the condition agreed upon between
Landlord and Tenant and acknowledgment of satisfactory completion of any’ work
to be performed by Landlord.

 

Article 6

USE OF PREMISES

 

6.1             Character
of Occupancy.  Tenant covenants and agrees to occupy the
Premises for the Permitted Use and for no other purpose, unless Landlord
otherwise consents in writing, which consent may be withheld in Landlord’s sole
discretion. Tenant agrees to use the Premises consistent with the Rules and
Regulations and in a careful, safe, and proper manner and to pay, on demand,
for any damage to the Premises caused by misuse or abuse thereof by Tenant.
Tenant’s agents or employees, or by any other person entering upon the Premises
under express or implied invitation of Tenant. Tenant agrees not to use the
Premises in a manner which would create a nuisance or which would disturb the
other tenants of the Building.

 

6.2             Compliance
With Legal Requirements. Tenant, at Tenant’s expense, shall comply with all Legal Requirements now
in effect, or which may hereafter be in effect, which shall impose any duty
upon Landlord or

Tenant with respect to the occupation or alteration of the Premises. For
instance, as between Landlord and Tenant, Tenant shall bear responsibility for
the compliance of the Premises with the Americans With Disabilities Act. The
foregoing responsibilities shall be limited, however, to compliance required by
the unique character of any alterations undertaken by Tenant or by the unique
character of Tenant’s use (i.e., which distinguishes the same from ordinary
office usage). Consequently, to the extent Legal Requirements are imposed on
office usage in general, the cost of such compliance will be paid by
Landlord.  To the extent Legal
Requirements are imposed solely by reason of the unique character of Tenant’s
alterations, as described above, the cost of compliance will be paid by Tenant.

 

6.3             No
Waste;
Compliance With Insurance and Environmental Requirements.

Tenant shall not commit
waste or suffer or permit waste to be committed or permit any nuisance on or in
the Premises. Tenant agrees that it will not store, keep, use, sell, dispose of
or offer for

 

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sale in, upon or from the
Premises any article or substance which may be prohibited by any insurance
policy in force from time to time covering the Building, nor shall Tenant keep,
store, dispose of, or produce on, in or from the Premises or the Building any
substance which may be deemed a hazardous substance under any Legal Requirement
as may be promulgated or amended from time to time. Tenant agrees to indemnify
and hold harmless Landlord against any cost, loss, claim or expense, including
reasonable attorneys’ fees and expenses, suffered by Landlord as a result of
Tenant’s breach of any covenant set forth in this Article 6.

 

6.4             Rules
and Regulations. The Rules and Regulations set forth on
Exhibit E attached hereto shall be and are hereby made a part of this Lease.
Tenant agrees that Tenant’s employees and agents or any others permitted by
Tenant to occupy or enter the Premises will at all times abide by said Rules
and Regulations. A breach of any of such Rules or Regulations shall be deemed a
default under this Lease. Landlord agrees to apply the Rules and Regulations in
a non-discriminatory manner towards all tenants of the Building. Landlord in
its sole discretion may reasonably amend the Rules and Regulations upon
thirty days written notice.

 

Article 7

OPERATING EXPENSES

 

7.1             Payment
of Tenant’s Pro-Rata Share of  Operating Expenses.

 

(a)           Tenant agrees to pay its Pro Rata
Share of Operating Expenses to the extent that Operating Expenses in any
particular year exceed Operating Expenses incurred in the Base Expense Year.
The payment of Tenant’s Pro Rata Share of Operating Expenses pursuant to the
provisions of this Article shall be made as follows: Beginning with the first
rental payment due in the calendar year following the Commencement Date and
continuing each month until the first comparative statement is submitted to
Tenant (and continuing each succeeding year), Tenant shall pay Landlord, as
additional rent, an amount equal to one-twelfth of Tenant’s Pro-Rata Share of
the Estimated Expense Increase. In the event that a comparative statement
evidences that the Actual Expense Increase was greater than the Estimated
Expense Increase, then Tenant shall pay Landlord the amount of such excess as
Additional Rent with the next monthly installment of Base Rent. In the event
that a comparative statement shall show that the Actual Expense Increase amount
was less than the Estimated Expense Increase amount, then Tenant shall receive
a credit for such amount from Landlord to the extent that Tenant has paid the
Estimated Expense Increase amount pursuant to this Paragraph.

 

(b)           Landlord’s and Tenant’s
responsibilities with respect to the Operating Expense adjustment described
herein shall survive the expiration or early termination of this Lease. If
Tenant shall dispute the amount of an adjustment submitted by Landlord or any
proposed estimated increase or decrease in the Estimated Operating Expenses, or
comparative statement, Tenant shall give Landlord written notice of such
dispute within thirty (30) days after Landlord advises of such comparative
statement, adjustment or proposed increase or decrease.  If Tenant does not give Landlord such notice
within such time, Tenant shall have waived its right to dispute the amounts so
determined.  If Tenant timely objects,
Tenant shall have the right, at its own expense, to engage its own accountants
for the purpose of verifying the accuracy of the statement complained of or the
reasonableness of the estimated increase or decrease.  If Tenant identifies an error has been made that is 3% or
more in excess of the Additional Rent due, Landlord and Tenant shall endeavor
to agree upon the matter, failing which the parties shall submit such matter to
an independent certified public accountant selected by Landlord and reasonably
acceptable to Tenant, for a determination which shall be final, conclusive and
binding upon Landlord and Tenant. Notwithstanding the pendency of any dispute
over any particular statement, Tenant shall continue to pay Landlord the amount
of the monthly installments of Tenant’s Pro Rata Share of Operating Expenses
determined by Landlord until the adjustment has been determined to be
incorrect.  If it shall be determined
that any portion of the Operating Expenses were not properly chargeable to
Tenant, then Landlord shall promptly credit or refund the appropriate sum to
Tenant and, if Landlord’s statement for any year exceeds the amount actually
due by more than 3% Landlord shall pay for the independent certified public accountant’s
determination, otherwise Tenant shall pay for the independent certified public
accountant’s determination.

 

(c)           If during any calendar year,
including the Base Expense Year of this Lease and any subsequent calendar
years, during any part of which this lease shall be in effect there is any
Building vacancy; Operating Expenses shall be adjusted at the end of the year
as though the Building had 5%  vacancy/95% occupancy during such year.

 

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Article 8

LANDLORD SERVICES; MAINTENANCE

 

8.1             Services
Provided By Landlord. Subject to the provisions of
Section 8.3 below, Landlord, without charge, except as provided herein, and in
accordance with standards from time to time prevailing for the Building, agrees
to:

 

(a)                 furnish cold running water at
those points of supply for general use of tenants of the Building;

 

(b)                 furnish to public areas of the
Building heated or cooled air (as applicable), lighting, electrical current
(120 Volt 20 amp), janitorial services, and maintenance to the extent Landlord
reasonably deems necessary;

 

(c)                 furnish, during Normal Business
Hours, such heated or cooled air to the Premises as may, in the good faith
judgment of Landlord, be reasonably required for the comfortable use and occupancy
of the Premises, provided that the reasonable recommendations of
Landlord’s engineer regarding occupancy and use of the Premises are complied
with by Tenant and, with respect to cooled air, provided the same is used only
for standard office use;

 

(d)                 list on existing lobby and
Leased Premises floor directories in the Common Areas. Tenant’s name and suite
number;

 

(e)         furnish janitorial
service, as contracted for by Landlord, five (5) days per week, exclusive of
normal holidays; provided, however, if Tenant’s flooring, other improvements or
furniture upholstery’ require special treatment, Tenant shall pay to Landlord
the additional cleaning cost attributable thereto upon presentation of a
statement therefor by Landlord;

 

(f)                 furnish standard building grade
fluorescent bulb replacement in the Premises necessary to maintain the lighting
provided as a part of standard building improvements; provided, however. Tenant
shall be responsible for lighting bulb/tube replacement in special,
non-standard fixtures and/or equipment:

 

(g)                   provide one annual exterior
window washing; and

 

(h)                 keep Common Areas & exterior
of the Building in a neat & orderly condition.

 

8.2              Interruption of Services.
Tenant agrees that Landlord shall not be liable for failure to supply any such
heating, air conditioning, electrical, exterior window washing, janitorial
service, lighting or other services, or to supply such services during any
period Landlord is required to reduce or curtail such services pursuant to any
applicable Legal Requirement, including regulations of any utility now or
hereafter in force or effect.  It is
understood that Landlord may discontinue, reduce, or curtail such services, or
any of them (either temporarily or permanently), at such times as it may be
necessary by reason of accident, repairs, alterations, improvements, strikes,
lockouts, riots, acts of terrorism, acts of God, application of applicable
Legal Requirements or due to any other happening beyond the reasonable control
of Landlord. In the event of any interruption, reduction, or discontinuance of
Landlord’s services (either temporary or permanent), Landlord shall not be
liable for damages to person or property as a result thereof nor shall the
occurrence of any such event in any way be construed as an eviction of Tenant;
or cause or permit an abatement, reduction or setoff of rent; or operate to
release Tenant from any of Tenant’s obligations hereunder.

 

8.3             Notification
of Accidents or Defects.  Tenant
agrees tonotify promptly the Landlord or its representative of any accidents
or defects in the Building of which Tenant becomes aware including defects in
pipes, electric wiring, and HVAC equipment. In addition, Tenant shall provide
Landlord with prompt notification of any matter or condition, which may cause
injury or damage to the Building, Common Areas or any person or property
therein.

 

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8.4             Maintenance
and Improvements.  Unless
otherwise expressly provided herein. Landlord shall not be required to make any
improvements or repairs of any kind or character including plumbing which
exclusively serves the Leased Premises, to the Premises during the Term,
except: (a) such repairs to HVAC, mechanical, plumbing, life safety and
electrical systems in the Premises (to the extent such systems are building
standard) as may be deemed necessary by Landlord for normal maintenance
operations of the Building; and (b) upkeep, maintenance, and repairs to all
Common Areas so long as the need for any such repair is not the result of
Tenant’s negligence.

 

8.5             Landlord’s
Re-entry; Alterations. Tenant covenants and agrees to
permit Landlord upon reasonable notice, and at any time in the event of an
emergency, to enter the Premises to examine and inspect the same or, if Landlord
so elects, to perform any obligations of Tenant hereunder, at the expense of
Tenant, which Tenant shall fail to perform or to perform such cleaning,
maintenance, janitorial services, repairs, additions, or alterations as
Landlord may deem necessary or proper for the safety, improvement, or
preservation of the Premises or of other portions of the Building or as may be
required by any governmental authorities through any Legal Requirement. Any
such re-entry shall not constitute an eviction or entitle Tenant to abatement
of Rent. Furthermore, Landlord shall at all times have the right at Landlord’s
election to make such alterations or changes in other portions of the Building
as Landlord may from time to time deem necessary.

 

8.6             Repairs.  In the event of the need for any repair which is the responsibility of
the Landlord herein. Tenant may notify Landlord in writing of such needed
repair and Landlord shall undertake reasonable efforts to make such repair
within fifteen (15) days from the date of such notice.  If and to the extent the need for such
repair renders any portion of the Premises unusable for normal office usage
then, from and after 15 days from the date of such notice to Landlord, no Rent
shall be payable with respect to such unusable space until such repair has been
completed.

 

 

Article 9

SECURITY DEPOSIT

 

9.1             Payment
and Application of  Security Deposit.  Concurrently with the execution of this Lease,
Tenant agrees to deposit with Landlord and keep on deposit at all times during
the Term, the Security Deposit described in Section 1.2, as security for
the payment by Tenant of all Rent and for the faithful performance of all the
terms, conditions, and covenants of this Lease. If, at any time during the
Term, an Event of Default shall have occurred under this Lease, Landlord shall
have the right to use the Security Deposit, or so much thereof as necessary, in
payment of any Rent, in reimbursement of any expense incurred by Landlord, and
in payment of any damages incurred by Landlord by reason of Tenant’s
default.  In such event, Tenant shall,
within five (5)  days after written demand by Landlord, remit to Landlord a
sufficient amount in cash to restore the Security Deposit to its original
amount. At the end of the Term, and provided all covenants and agreements of
this Lease have been fully performed, Landlord shall refund to Tenant or to
whomever is then the holder of Tenant’s interest in this Lease, any unused
portion of the Security Deposit, without interest. Landlord shall have the
right to commingle the Security Deposit with other funds of Landlord.  If Landlord’s interest in the Building or
Premises is sold or transferred after the date of this Lease, Landlord agrees
to deliver the Security Deposit to the purchaser or transferee and obtain
the purchaser’s or transferee’s assumption of the Landlord’s obligation
hereunder, and thereupon, Landlord shall be discharged from further
liability with respect to the Security Deposit.  Tenant agrees that if a mortgagee succeeds to Landlord’s interest
in the Premises by reason of foreclosure or deed in lieu of foreclosure, Tenant
shall have no claim against said mortgagee for the Security Deposit, or any
portion thereof, unless such mortgagee has actually received (and acknowledged
receipt of) the same from Landlord. Landlord shall be under no obligation to
use the Security Deposit to cure a default by Tenant. If Landlord does elect to
use the Security Deposit. Tenant shall remain liable for any claims of
Landlord, which exceed the amount of the Security Deposit used.

 

9.2                                                            

 

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Article 10

TENANT’SALTERATIONS, FIXTURES AND
EQUIPMENT

 

10.1           Permissible
Alterations. Subject to obtaining Landlord’s prior
written consent, which consent may be withheld in Landlord’s reasonable
discretion, and Tenant’s compliance with the restrictions and conditions set
forth in this Article 10, Tenant may, at its cost, make non-structural alterations
to the interior of the Premises:

 

10.1.1        Restrictions. Tenant shall make no
structural alterations to the Premises (including the exterior thereof). Any
other alterations approved by Landlord in accordance with Section 10.1 above
which are made by Tenant shall not (i) result in an undue burden or excessive
use being placed on the electrical, gas, plumbing. sanitary sewer, heating,
ventilating or air conditioning systems servicing the Building, or require
changes, replacements or additions to such systems; or (ii) result in higher
insurance premiums for the remainder of the Building.

 

10.1.2        Plans. Tenant shall submit to
Landlord for approval reasonably detailed final plans and specifications of the
proposed alterations and the name of its contractor at least thirty (30) days
before the date it intends to commence the alterations.

 

10.1.3        Notice. The alterations shall not be
commenced until three (3) days after Landlord has received notice from Tenant
stating the date the installation of the alterations is to commence so that
Landlord can send, post and/or record appropriate notices of  “non-­responsibility”.

 

10.1.4        Permits.  The
alterations shall be approved by all appropriate government agencies, and all
applicable licenses, permits and authorizations shall be obtained before
commencement of the alterations.

 

10.1.5        Compliance. All alterations shall be
completed with due diligence in compliance with the plans and specifications
and working drawings and all applicable laws and in a good and workmanlike
manner, using new materials and equipment at least equal in quality to the
original installations in the Premises.

 

10.1.6                       Insurance.  Before commencing the alterations and at
all times during the construction, Tenant’s

contractor shall maintain
builder’s risk insurance in an amount reasonably satisfactory to Landlord and
provide Landlord with evidence thereof.

 

10.2           Fixtures
and Equipment.  Tenant,
or its subtenants, may install in or upon the Premises such fixtures, trade
fixtures, furniture and equipment as Tenant or such subtenants deem desirable
provided such fixtures, trade fixtures, furniture and equipment do not place an
unreasonable burden on, or exceed the capacity of, the systems specified in
clause (i) of Section 10.1.1 or require changes, replacements or additions
to such systems, or exceed the safe load bearing capacity of the floors of the
Building.

 

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10.3          Ownership;
Removal; Restoration.  All
alterations and fixtures installed pursuant to Sections 10.1 and 10.2 above
shall remain the property of Tenant until the expiration or termination of the
Term, or any earlier termination of tenant’s right to possession as provided in
Article
15 below, at which time all such alterations and fixtures (excluding
trade fixtures) will become the property of the Landlord. All trade fixtures,
furniture and moveable equipment will at all times remain the property of
Tenant. Tenant shall remove any’ trade fixtures, furniture, moveable equipment
and other personal property upon the expiration or termination of the Term or
any earlier termination of Tenant’s right to possession. Notwithstanding any of
the foregoing. Tenant shall not remove any property if such removal would cause
structural or irreparable damage to the Premises. After removing any property
from the Premises, which Tenant is permitted to remove, Tenant shall promptly,
at its expense, repair or restore any damage to the Premises caused by the
removal.

 

10.4           No
Liens; Indemnity.  Tenant
shall keep the Premises and Tenant’s interest therein free from any liens
arising out of any work performed on the Premises, materials furnished thereto
or obligations incurred by Tenant and shall cause the same to be released or
bonded off within thirty (30) days of the filing of the same.  Tenant shall indemnify, defend and hold
Landlord harmless against liability, loss, damage, cost, and all other expenses
(including without limitation, reasonable attorney’s fees) arising out of
claims of liens for obligations incurred by, or work performed or materials or
supplies furnished to or for the benefit of, Tenant or persons claiming under
Tenant or with regard to Tenant’s failure to comply with Sections 10.1.4 and
10.1.5 above.

 

 

Article 11

ASSIGNMENT AND SUBLETTING

 

11.1          Assignment
or Subletting.  Tenant
will not assign or encumber this Lease, or any interest herein, nor sublease
the Premises or any portion thereof, without Landlord’s prior written consent,
which consent will not be unreasonably withheld. If permitted by Landlord, no
such assignment, sublease or encumbrance will release Tenant or any Guarantor
of the Lease from its obligations hereunder or thereunder.

 

Article 12

CONDEMNATION

 

12.1          Condemnation.  If the entire Premises, or
any substantial part of the Premises or any portion of the Building
which shall render the Premises untenantable, shall be taken by right of
eminent domain or shall be conveyed in lieu of any such taking, then either
Landlord or Tenant may, at its option, terminate this Lease by giving the other
party written notice of such election within thirty (30) days after such taking
or conveyance. In such event, this Lease shall cease and terminate and the Rent
shall be duly apportioned as of the date of such taking or conveyance. Tenant
thereupon shall surrender the Premises and all interest therein under this
Lease to Landlord, and Landlord may reenter and take possession of the Premises
or remove Tenant therefrom. In the event less than all of the Premises shall be
taken by eminent domain or conveyance in lieu thereof, Landlord shall promptly
repair the Premises as nearly as possible to its condition immediately prior to
such taking, unless Landlord elects not to reconstruct or rebuild as described
in Section
14.3 below.  In the event of  any
such taking or conveyance, Landlord shall receive the entire award or
consideration for the portion of the Building so taken. Notwithstanding the
foregoing, Landlord’s use of condemnation proceeds may be subject to the
control of its first mortgage lender and, if those proceeds are not made
available for restoration of the Premises, or if they are not sufficient to
restore the Premises, Landlord shall not be obligated to restore the Premises.
This Lease shall continue in any such event unless the inability to effect such
a restoration renders the Premises untenantable.

 

Article 13

INDEMNITY OF LANDLORD;

LIABILITY AND CASUALTY INSURANCE

 

13.1          Indemnity.
Tenant hereby agrees to indemnify, defend, and save Landlord
harmless of and from all liability, loss, damages, costs, or expenses,
including attorneys fees, on account of injuries to the person or property of
Landlord or of any other tenant in the Building or

 

9

 

to any other person rightfully in said Building for any purpose
whatsoever, where the injuries are caused by the negligence, misconduct or
breach of this Lease by the Tenant. Tenant’s agents, servants, or employees or
of any other person entering upon the Premises under express or implied
invitation of Tenant or where such injuries are the result of the violation of
the provisions of this Lease by any of such persons. This indemnity shall
survive termination or earlier expiration of this Lease.

 

13.2          Tenant’s
Liability and Casualty Insurance.  In  addition
to providing the indemnity referenced above, Tenant shall obtain and maintain
throughout the Term a commercial general liability policy, including protection
against death, personal injury and property damage and issued by an insurance
company qualified to do business in the State of Oklahoma, with a single limit
of not less than One Million Dollars ($1,000,000.00). Any such policy shall
name Landlord as an additional insured. Each such policy shall provide that the
same may not be canceled or modified without at least twenty (20) days’ prior
written notice to Landlord. Tenant shall also provide adequate casualty
insurance coverage on all of its personal property, including trade fixtures,
located in the Premises. Prior to occupancy of the Premises, and thereafter
from time to time, Tenant shall deliver certificates evidencing that such
insurance is in force and effect. The limits of said insurance shall not, under
any circumstances, limit the liability of Tenant hereunder with regard to Section
13.1 above.

 

13.3           Damage
to Tenant’s Property. 
Tenant shall neither hold nor attempt to hold Landlord liable for any injury
or damage, either proximate or remote, occurring through or caused by fire,
water, steam, or any repairs, alterations, injury, accident, or any other cause
to the Premises, to any furniture, fixtures, Tenant alterations, or other
personal property of Tenant kept or stored in the Premises, or in other parts
of the Building not herein demised, whether by reason of the negligence or
default of the owners or occupants thereof or any other person or otherwise and
the keeping or storing of all property of Tenant in the Building and/or
Premises shall be at the sole risk of Tenant. Tenant shall obtain and maintain
throughout the term of this Lease “all risk” or “multi-peril” insurance on and
for the full cost of replacement of all of Tenant’s property and betterments in
the Premises, including, without limitation all furniture, fixtures, personal
property and all tenant improvements not paid for by Landlord pursuant to any
work letter attached hereto.

 

Article 14

CASUALTY; RESTORATION OF PREMISES

 

14.1           Damage
to Premises.  If
the Premises or the Building shall be so damaged by fire or other casualty as
to render the Premises wholly untenantable and if such damage shall be so great
that a competent architect, in good standing, selected by Landlord shall
certify in writing to Landlord and Tenant within sixty (60) days of said
casualty that the Premises, with the exercise of reasonable diligence, cannot
be made fit for occupancy within one hundred twenty (120) working day’s from
the happening thereof, then Landlord may, at its option, terminate this Lease.
If Landlord so elects to terminate this Lease, Tenant shall thereupon surrender
to Landlord the Premises and all interest therein hereunder, and Landlord may
reenter and take possession of the Premises and remove Tenant therefrom. Tenant
shall pay Rent, duly apportioned, up to the time of such termination of this
Lease. If Landlord does not so elect to terminate this Lease then, Landlord
shall repair the damage so done (to the extent of the Tenant Improvements identified
in Exhibit D, the “Work Letter”, if any, provided by Landlord to Tenant) with
all reasonable speed and this Lease shall continue in effect. Landlord shall
not have any obligation to rebuild in the event of major damage to the Premises
during the last Twelve (12) months of the term.  The reference in the foregoing to Rent being “duly
apportioned” shall mean that Rent allocable to Rentable Square Feet of the
Premises that is rendered unusable by the casualty shall be abated as of  the
date of  the casualty and Rent allocable to the Rentable Square Feet of
the Premises which remains usable following such casualty being payable
until the Lease Expiration Date or until earlier termination of  the
Lease as provided for herein.

 

14.2          Minor
Damage.  If the
Premises shall be slightly damaged by fire or other casualty, but not so as to
render the same wholly untenantable or to require a repair period in excess of
one hundred twenty (120) days, then, Landlord, after receiving notice in
writing of the occurrence of the casualty, except as hereafter provided, shall
cause the same to be repaired with reasonable promptness and this lease shall
continue in effect.

 

10

 

14.3           Damage
to Building.  In
case the Building shall be so injured or damaged, whether by fire or otherwise
(though the Premises may not be affected, or if affected, can be repaired
within said one hundred twenty (120) days), but not so as to require a repair
period in excess of one hundred twenty (120) days, then Landlord, after
receiving notice in writing of the occurrence of the casualty, except as
provided in Section 14.4, shall cause the same to be repaired with reasonable
promptness and this lease shall continue in effect.

 

14.4          Insurance
Proceeds Not Sufficient or Available. Landlord shall
never have an obligation to rebuild if its insurance proceeds are insufficient
to permit restoration or if they are not made available by Landlord’s lender.
Landlord shall terminate this Lease if it elects not to rebuild in
either event, by giving Tenant written notice of its election to do so within
sixty (60) day’s after determining the non-availability or insufficiency of
such proceeds. In such event, Tenant shall pay the Rent, properly apportioned
up to the date of termination, and neither party shall have any further rights
or obligations under this Lease, except for any obligations, which specifically
survive any such termination.

 

14.5           Waiver
of Subrogation.  Landlord
and Tenant hereby waive any and all rights of recovery against the other, their
officers, agents, and employees occurring out of the use and occupancy of the
Premises for loss or damage to their respective real and/or personal property
arising as a result of a casualty or condemnation contemplated by this Lease.
Each of the parties shall, upon obtaining the policies of insurance required by
this Lease, notify the insurance carrier that the foregoing waiver is contained
in this Lease and shall require such carrier to include an appropriate waiver
of subrogation provision in the policies.

 

14.6           Abatement
of Rent. Provided that the casualty is not the fault of
Tenant, Tenant’s agents, servants, or employees, the Rent shall be equitably
abated taking into consideration all relevant factors, including, without limitation,
whether or not the Premises can be partially used during the period of repair
and restoration, and the relative square footages of the usable and non-usable
areas.

 

Article 15

TENANT’S DEFAULT; LANDLORD’S REMEDIES

 

15.1           Events
of Default.  The occurrence
of any of the following will constitute an event of default by Tenant under
this Lease: (i) failure to pay any Rent when due; (ii) failure to comply with
any other provision of this Lease within any time period specified in this
Lease or, if no time period is specified, within twenty (20) days after written
notice from Landlord or if such failure cannot reasonably be cured within
twenty (20) days, tenant’s failure to commence action designed to cure such
failure and diligently pursue such action to completion; (iii) the filing
by or against Tenant or any Guarantor of Tenant’s obligations under this Lease
of any proceedings under the federal bankruptcy act or any similar law and the
failure to secure a discharge of the same within sixty (60) days; (iv)
the adjudication of Tenant or any Guarantor as bankrupt or insolvent in
proceedings filed under the federal bankruptcy act or any similar law; (v) the
insolvency of Tenant or any Guarantor or the making of a transfer in fraud of
creditors or an assignment for the benefit of creditors; (vi) the appointment
of a receiver or trustee for Tenant or any Guarantor of the assets of Tenant or
any Guarantor; or (vii)  Tenant’s abandonment of the Premises or
failure to do business in any substantial portion thereof (including failure to
take occupancy at the commencement of the Term).

 

15.2           No  Waiver.  No action  by Landlord during the Term
will be deemed an acceptance of an attempted surrender of the Premises. No
reentry or taking possession of the Premises by Landlord will be construed as
an election by Landlord to terminate this Lease, unless a written notice of
termination is given to Tenant. Landlord may accept late or partial payments of
Rent without prejudice to its right to require prompt payment in the future or
to enforceits remedies hereunder for failure to make payment in full. Any
forbearance by Landlord in exercising any right or remedy hereunder or
otherwise provided by law shall not be a waiver of or preclude the exercise of
any such right or remedy unless expressly waived. Any express waiver of any
default by Tenant hereunder shall not constitute a waiver of any other or
future default.

 

15.3           Remedies.  On  the occurrence of any event
of default, Landlord will have the following remedies, in addition to any other
rights or remedies provided by this Lease or by applicable law, all of which
may be exercised without any further notice or demand on Tenant.

 

11

 

15.3.1          Past Due Rent.  
Landlord may collect from Tenant all past due Rent,
including interest thereon and late charges as referenced in Article 4 above,
and all other damages caused by Tenant’s default, together with interest at the
rate of eighteen percent (18%) per year, until paid.

 

15.3.2          Termination.   Landlord may terminate this Lease, in which event Tenant
will immediately surrender the Premises to Landlord, but if Tenant fails to do
so. Landlord may, without notice and without prejudice to any other remedy
Landlord might have, enter and take possession of the Premises and remove
Tenant, anyone claiming under Tenant and any property therefrom without being
subject to any claim for damages therefor. Tenant shall pay Landlord all costs
incurred by Landlord in any such action, including the costs of taking
possession of and repairing any damage to the Premises, and all other damages
caused by Tenant’s default.

 

15.3.3          Reletting.  If
Landlord does not terminate this Lease, then Landlord may, at its option,
reenter the Premises and remove any persons or property therein, and may relet
the Premises for the benefit of Tenant, in which event Tenant shall pay
Landlord all costs incurred by Landlord in taking such action including,
without limitation, the costs of taking possession of and repairing the Premises,
the cost of preparing the same for reletting, attorneys’ fees, brokerage
commissions, and all other damages caused by Tenant’s default. Tenant shall
remain obligated to Landlord for the difference between any rent received by
Landlord as a result of such reletting and the Rent for which Tenant is
obligated hereunder. Landlord shall have no duty to relet the Premises and the
failure of Landlord to relet the Premises will not release or affect Tenant’s
liability for Rent or for damages. In the event any such reletting results in
payment of rent thereunder to Landlord in excess of the Rent for which Tenant
is obligated hereunder, Landlord shall retain such excess.

 

15.3.4          Election Not to Relet.   If Landlord elects not to terminate this
Lease, and does not reenter and relet the Premises for the benefit of Tenant,
Tenant shall remain obligated to Landlord for all Rent for which it is
obligated hereunder for the remainder of the Term, together with all damages
caused by Tenant’s default.

 

15.3.5          Option to Perform. Landlord may
perform or cause to be pe1formed the unperformed obligations of
Tenant under this Lease and may enter the Premises to accomplish such purpose
without being subject to any claim for damages therefor.  Tenant agrees to reimburse Landlord on
demand for any expense which Landlord might incur in effecting compliance with
this Lease on behalf of Tenant, together with interest at the rate specified in
Section
15.3.1 above until paid, and Tenant further agrees that Landlord
will not be liable for any damages resulting to Tenant from such action,
whether caused by negligence of Landlord or otherwise.

 

Article 16

DEFAULT BY LANDLORD

 

16.1           Default
By Landlord.   In
the event of any alleged default on the part of Landlord hereunder, Tenant
shall give written notice to Landlord and Landlord’s first mortgage lender if
lender has provided Tenant written notice of its interest, in the manner
provided herein and shall afford Landlord and such lender a reasonable
opportunity, but at least thirty (30) days, to cure any such default. If said
default is not cured within a reasonable time, Tenant shall be entitled to
pursue a suit for damages or injunctive relief (but no other form of relief);
provided, however, in no event shall (i) the Lease be terminated by Tenant or
(ii) Landlord be responsible for any consequential damages incurred by Tenant
as a result of any default, including, without limitation, lost profits or
interruption of business as a result of any alleged default by Landlord
hereunder. Landlord’s obligations under this Lease shall cease to accrue upon
any transfer by it of the Premises to a transferee assuming Landlord’s
obligations hereunder and Tenant shall look solely to its new landlord for
performance of all obligations accruing hereunder after the transfer.
Landlord’s liability hereunder shall be limited to its interest in the
Building. No mortgage lender shall be required to cure any such default.

 

Article 17

SUBORDINATION; ESTOPPEL

 

17.1           Subordination.   This Lease and all rights
of Tenant hereunder shall be subject and subordinate to any encumbrance
perfected against the Premises or Landlord’s interest in this

 

12

 

Lease after the date of this Lease. Tenant agrees to attorn to any
purchaser at any foreclosure or other sale enforcing such encumbrance. If any
holder of a mortgage or deed of trust shall elect to have this Lease superior
to the lien of the holder’s mortgage or deed of trust and shall give written
notice thereof to Tenant, this Lease shall be deemed prior to such mortgage or
deed of trust, whether this Lease is dated prior or subsequent to the date of
said mortgage or deed of trust or the date of recording thereof

 

17.2           Estoppel.   Tenant agrees, within ten (10) days after request by Landlord,
to execute in favor of any prospective purchaser or encumbrancer of the
Premises or an interest in this Lease, an estoppel agreement (a) confirming the
subordination of this Lease to any such encumbrance on the terms set forth
in paragraph 17.1, and (b) stating (i) whether this Lease is in full force
and effect and listing any modifications, assignments or subleases, (ii)
whether Tenant has accepted possession of the Premises, (iii) the commencement
date and expiration date of the Term, (iv) the amount of the monthly
installments of Base Rent then payable, (v) an itemization of any Additional
Rent paid during the preceding twelve (12) months, (vi) whether Tenant claims
an offset against Rent due or to become due hereunder (provided nothing herein shall
be construed to create such a right of offset except as expressly set forth
in this Lease), (vii) whether Rent has been paid more than one (1) month in
advance of its due date (and containing an agreement by Tenant not to pay Rent
more than one month in advance of its due date), (viii) the address for notices
to be sent to Tenant, (ix) that Tenant will look only to Landlord for
obligations accruing prior to the time any such purchaser, encumbrancer, or
purchaser at foreclosure acquires title to the Premises, (x) whether Landlord
is then in default (specifying the exact nature of any claimed default). (xi)
that Tenant will riot surrender the Premises prior to the expiration of the
Term or consent to a written modification or termination of this Lease with
Landlord without the approval of any first mortgage lender which has advised
Tenant of its interest, and (xii) such other factual matters as may
be reasonably requested by Landlord including matters related to any Guarantor.

 

18.             Telecommunications.

 

18.1                                 Limitation
of Responsibility.   Tenant
acknowledges and agrees that all telephone and telecommunications services
desired by Tenant shall be ordered and utilized at the sole expense of Tenant.
Unless Landlord otherwise requests or consents in writing, all of Tenant’s
telecommunications equipment shall be and remain solely in the Leased Premises
and, in accordance with the rules and regulations adopted by the Landlord from
time to time, the telephone closet(s) on the floor(s) on which the Leased
Premises is located. Unless otherwise specifically agreed in writing, Landlord
shall have no responsibility for the maintenance of Tenant’s telecommunications
equipment, including wiring, nor for any wiring or other infrastructure to
which Tenant’s telecommunications equipment may be connected. Tenant agrees
that to the extent any such service is interrupted, curtailed or discontinued,
Landlord shall have no obligation or liability with respect thereto and it
shall be the sole obligation of Tenant at its expense to obtain substitute
service.

 

18.2                                 Necessary  Service
Interruptions.  Landlord
shall have the right, upon reasonable prior notice to Tenant, to interrupt or
turn off telecommunications facilities in the event of emergency or as
necessary in connection with repairs to the Building or installation of
telecommunications equipment for other tenants of the Building.

 

18.3                                 Removal
of Equipment, Wiring, and Other Facilities.   Any and all telecommunications equipment installed in the
Leased Premises or elsewhere in the Building by or on behalf of Tenant,
including wiring, or other facilities for telecommunications transmittal, shall
be removed prior to the expiration or earlier termination of the Lease term, by
Tenant at its sole cost or, at Landlord’s election, by Landlord at Tenant’s
sole cost, with the cost thereof to be paid as additional rent. Landlord shall
have the right, however, upon written notice to Tenant given no later that
thirty (30) day(s) prior to the expiration or earlier termination of the Lease
term, to require Tenant to abandon and leave in place, without additional
payment to Tenant or credit against rent, any and all telecommunications wiring

 

13

 

and related
infrastructure, or selected components thereof, whether located in the Leased
Premises or elsewhere in the Building.

 

18.4                               New
Provider
Installations.    In
the event that Tenant wishes at any time to utilize the services of a telephone
or telecommunications provider whose equipment is not then servicing the
Building, no such provider shall be permitted to install its lines or other
equipment within the Building without first securing the prior written approval
of the Landlord. Landlord’s approval shall not be deemed any kind of warranty
or representation as to the suitability, competence, or financial strength of
the provider. Without limitation of the foregoing standard, unless all of the
following conditions are satisfied to Landlord’s satisfaction, it shall be
reasonable for Landlord to refuse to give its approval; (i) Landlord shall
incur no expense whatsoever with respect to any aspect of the provider’s
provision of its services, including without limitation, the costs of
installation, materials and services; (ii) prior to commencement of any work in
or about the Building by provider, the provider shall supply Landlord with
written indemnities, insurance, financial statements, and such other items as
Landlord reasonably determines to be necessary to protect its financial
interests and the interests of the Building relating to the proposed activities
of the provider; (iii) the provider agrees in writing to abide by such rules
and regulations, building and other codes, job site rules and such other
requirements as are reasonably determined by Landlord to be necessary to
protect the interests of the Building, the tenants in the Building and
Landlord, in the same or similar manner as Landlord has the right to protect
itself and the Building with respect to proposed alterations as described in
Article Ten of this Lease; (iv) Landlord reasonably determines that there is
sufficient space in the Building for the placement of all of the provider’s
equipment and materials; (x) Landlord receives from the provider such
compensation as is reasonably determined by Landlord to compensate it for space
used in the Building for the storage and maintenance of the provider’s
equipment, for the fair market value of a provider’s access to the building,
and the costs which may reasonably be expected to be incurred by Landlord; and
(vi) all of the foregoing matters are documented in a written agreement between
Landlord and the provider, the form and content of which is reasonably
satisfactory to Landlord.

 

18.5                                 Limit of Default or Breach.  Notwithstanding any provision of the
preceding paragraphs to the contrary, the refusal of Landlord to grant its
approval to any prospective provider shall not be deemed a default or breach by
Landlord of its obligation under this Lease unless and until Landlord is
adjudicated to have acted recklessly or maliciously with respect to Tenant’s
request for approval, and in that event, Tenant shall still have no right to
terminate the Lease or claim an entitlement to rent abatement, but may assert a
claim for its direct damages. The provisions of this paragraph may be enforced
solely by Tenant and Landlord, are not for the benefit of any other party, and
specifically but without limitation, no telephone or telecommunications
provider shall be deemed a third party beneficiary of this Lease.

 

18.6                                 Installation
and Usage of  Wireless Technologies.  Tenant shall not utilize any wireless communications equipment
(other than usual and customary cellular telephones), including antenna and
satellite receiver dishes, within the Leased Premises or the Building, without
Landlord’s prior written consent. Such consent shall not be unreasonably
withheld, but may be conditioned in such a manner so as to protect Landlord’s
financial interests and the interests of the Building, and the other tenants
therein, in a manner similar to the arrangements described in the immediately
preceding paragraph.

 

If Tenant obtains
permission and installs any of the above items, Tenant agrees to make no
changes, alterations or modifications to said installed items without prior
written consent of Landlord, and Tenant at its expense shall maintain said
items in a neat and orderly manner at all times.

 

14

 

Article 19

MISCELLANEOUS

 

19.1           Time.   Time is of the essence of
each provision of this Lease.

 

19.2           Successors.  This Lease shall be
binding on and inure to the benefit of the parties and their respective
successors and permitted assigns.

 

19.3           Brokerage.   Except as may be
specifically set forth in writing prior to the execution hereof each party
represents that it has not dealt with any real estate broker, finder or other
person, with respect to this Lease in any manner, Tenant shall hold
harmless the Landlord from all damages resulting from any claims that
may be asserted against the Tenant 
by any broker, finder, or other person, with whom the Tenant has
or purportedly has dealt. Likewise, Landlord shall hold harmless the Tenant
from all damages resulting from any claims that may be asserted against
Landlord by any broker, finder or other person. with whom the Landlord has or
purportedly has dealt.

 

19.4          Recording.   Landlord and Tenant agree that neither this Lease nor any
memorandum hereof will be recorded.

 

19.5          Joint
and Several Obligations.  “Party”
shall mean Landlord or Tenant; and if more than one person or entity is
Landlord or Tenant, the obligations imposed on that party shall be joint and
several.

 

19.6           Notices.  Except as otherwise
provided herein, any notices or other communications required or permitted
hereunder shall be sufficient if made in writing and (i) delivered personally,
or (ii) sent by certified mail, return receipt requested, and addressed to the
appropriate party at its address stated below or to such other address as such
party may substitute by written notice to the other.  All notices shall be deemed received upon receipted personal
delivery or, if mailed, upon the earlier of (i) actual receipt, or (ii) three
(3) days after being mailed.

 

19.7          Entire
Agreement.  Tenant
agrees  that
there are no representations, understandings, stipulations, or other agreements
relating to the Premises, which are not incorporated herein. This Lease may not
be altered, waived, or amended, except by a written agreement signed by
Landlord and Tenant.

 

19.8           Governing
Law, Severability.   The  interpretation
and enforcement of this Lease will be governed by Oklahoma law.  If any clause or provision of this Lease is
illegal, invalid or unenforceable under any present or future law, the
remainder of this Lease will not be affected thereby.

 

15

 

19.8          Governing
Law, Severability. The interpretation and enforcement of
this Lease will be governed by Oklahoma law. If any clause or provision of this
Lease is illegal, invalid or unenforceable under any present or future law, the
remainder of this Lease will not be affected thereby.

 

19.9          Captions.   The captions used in this
Lease are for reference purposes  only and shall not in any way affect the
meaning or interpretation of this Lease.

 

19.10        Force
Majeure.   Whenever
a period of time  is provided for herein for the performance of any obligation
and the performance of such obligation is made impossible by strikes, riots,
acts of God or other causes reasonably outside of the control of the party bound
by the obligation, a reasonable extension of time will he provided for said
performance to compensate for the temporary impossibility of performing during
such event.

 

19.11         Attorncy’s
Fees.   The
prevailing party shall be entitled to reasonable attorney fees and costs of
litigation in connection with the enforcement of this Lease or in connection
with any dispute hereunder.

 

19.12                          Tenant
Execution. The person executing this Lease in a representative capacity
on behalf of the Tenant warrants that he/she is authorized to bind the Tenant
by virtue of that execution.

 

 

	
   

  	
  “Landlord”:

  	
   

  	
  HEBRON COMMUNICATIONS  CORPORATION

  5900 N. Mosteller Dr. #115O, OKC, OK 73112

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John E. Telling

  
	
   

  	
   

  	
   

  	
  John E. Telling,
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Tenant”:

  	
   

  	
  AMERIVISION COMMUNICATIONS, INC.

  5900 N. Mosteller Dr. #1600, OKC, OK 
  73112

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David W. Clark

  
	
   

  	
   

  	
   

  	
  David W. Clark

  
	
   

  	
   

  	
   

  	
  Chairman of the Board
  of Directors

  

 

 

Exhibits

 

A - Floor  Plan

B - Operating Expense
Definition

C - Commencement
Certificate

D - Work Letter (may not
apply)

E - Rules and Regulations

C  -
Legal Description

 

16

 

Exhibit B

 

Operating Expenses

 

“Operating Expenses” shall
mean all operating expenses of any kind or nature, which are necessary,
ordinary, or customarily incurred in connection with the operation and
maintenance of the Building. Operating Expenses shall include, but not be
limited to:

 

(a)                 All real
property taxes and assessments levied against the Building by any governmental
or quasi-governmental authority. The foregoing shall include any taxes,
assessments, surcharges, or service or other fees of a nature not presently in
effect which shall hereafter be levied on the Building as a result of the use,
ownership or operation of the Building or for any other reason, whether in lieu
of or in addition to, any current real estate taxes and assessments; provided,
however, any taxes which shall be levied on the rentals of the Building shall
be determined as if the Building were Landlord’s only property and, provided,
further, that in no event shall the term “taxes or assessments,” as used
herein, include any net federal or state income taxes levied or assessed on
Landlord, unless such taxes are a specific substitute for real property taxes.
Such term shall, however, include gross taxes on rentals. Expenses incurred by
Landlord for tax consultants and in contesting the amount or validity of any
such taxes or assessments shall be included in such computations (all of the
foregoing are collectively referred to herein as the “Taxes”). “Assessment”
shall include so-called special assessments, license tax, business license fee,
business license tax, commercial rental tax, levy, charge penalty or tax,
imposed by any authority having the direct power to tax, including any city,
county, state or federal government, or any school, agricultural, lighting,
water, drainage or other improvement or special district thereof, against the
Premises, the Building or any legal or equitable interest of Landlord therein.
For the purposes of this Lease, any special assessments shall be deemed payable
in such number of installments as is permitted by law, whether or not actually
so paid, and shall include any applicable interest on such installments;

 

(b)                 Costs of supplies, including,
but not limited to, the cost of relamping and replacing ballasts in all
Building standard tenant lighting as the same may be required from time to time
(provided, however, that Landlord reserves the right to directly bill Tenant
for replacement of lighting in the Premises):

 

(c)                 Costs incurred in connection
with obtaining and providing energy for the Building, including, but not
limited to, costs of propane, butane, natural gas, steam, electricity,
solar energy and fuel oils, coal or any other energy sources:

 

(d)                 Costs of water and sanitary and
storm drainage services;

 

(e)                 Costs of janitorial and
security services;

 

(f)                  Costs of general maintenance
and repairs, including costs under HVAC and other mechanical maintenance
contracts: and repairs and replacements of equipment used in connection with
such maintenance and repair work;

 

(g)                 Costs of maintenance and
replacement of landscaping;

 

(h)                                                 Insurance
premiums, including fire and all-risk or multiperil coverage, together with
loss of rent

endorsement, if
applicable; public liability insurance; and any other insurance carried by
Landlord on the Building

or any component parts
thereof (all such insurance shall be in such amounts as may be required by any
mortgagee or as Landlord may reasonably determine);

 

(i)                  Labor
costs, including wages and other payments, costs to Landlord of workmen’s
compensation and disability insurance, payroll taxes. welfare fringe benefits,
and all legal fees and other costs or expenses incurred in resolving any labor
dispute;

 

(j)                  Professional building
management fees, costs and expenses, including costs of office space and
storage space required by management for performance of its services as
contemplated herein;

 

(k)                 Legal, accounting, inspection,
and other consultation fees (including, without limitation, fees charged by
consultants retained by Landlord for services that are designed to produce a
reduction in Operating Expenses or to reasonably improve the operation,
maintenance or state of repair

 

17

 

of the Building) incurred in the ordinary course of operating the
Building; (excluding, however, any such costs in connection with Landlord’s
financing or resulting from any tenant’s default):

 

(l)  The costs of capital improvements and
structural repairs and replacements made in or to the Building in order to
conform to changes subsequent to the date of issuance of the certificate of
occupancy for the Building in any applicable laws, ordinances, rules,
regulations, or orders of any governmental or quasi-governmental authority
having jurisdiction over the Building (herein “Required Capital Improvements”);
and the costs of any capital improvements and structural repairs and
replacements designed primarily to reduce Operating Expenses (herein “Cost
Savings Improvements”). The expenditures for Required Capital Improvements and
Cost Savings Improvements shall be amortized at a market rate of return over
the useful life of such capital improvement or structural repair or replacement
(as determined by Landlord’s Accountants); provided that the amortized amount
of any Cost Savings Improvements shall be limited in any year to the reduction
in Operating Expenses as a result thereof;

 

“Operating Expenses” shall
not include:

 

i)       Costs of work, including
painting and decorating and tenant change work, which Landlord performs for any
tenant or in any tenant’s space in the Building other than work of a kind and
scope which Landlord would be obligated to furnish to all tenants whose leases
contain a rental adjustment provision similar to this one;

 

ii)      Costs of repairs or other work occasioned
by fire, windstorm or other insured casualty to the extent of insurance
proceeds received;

 

iii)     Leasing commissions, advertising
expenses, and other costs incurred in leasing space in the Building;

 

iv)     costs of repairs or rebuilding necessitated
by condemnation;

 

v)      Any interest on borrowed money or debt
amortization, except as specifically set forth above; or

 

vi)              Depreciation on the
Building;

 

vii)    Except as expressly set forth above, any
capital expense.

 

18

 

Exhibit
C

 

COMMENCEMENT  CERTIFICATE

 

 

THIS COMMENCEMENT
CERTIFICATE is attached to and made a part of that certain FOUNDERS TOWER
Office Lease dated as of the 30th day of September. 2002, between Hebron
Communications Corporation, (“Landlord”), and Amerivision  Communications.
Inc., (“Tenant”). Unless otherwise defined in
this Commencement Certificate or unless otherwise required by the context of
this Commencement Certificate, capitalized terms used in this Commencement
Certificate will have the meanings ascribed to those terms in the Lease.
Landlord and Tenant agree as follows with respect to the Premises:

 

I.                The tenant improvements, if any,
required to be constructed and installed in, on or about the Premises in
accordance with the terms of the Lease have been satisfactorily completed and
are acceptable to Tenant, subject to the completion of any punch list items.

 

2.                The Premises have a street address
of 5900 N. Mosteller Dr.. Suites 900. 1300. 1400 and

1600. Oklahoma City, OK
73112.

 

3.                The Commencement Date of the
Lease is January 1,2003, and the Expiration Date of the Term is December
31, 2004.  In accordance with the
provisions of the Lease, Tenant’s obligation to pay Rent shall commence on the
Commencement Date.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Commencement Certificate to be
executed the day and year first above written.

 

 

	
   

  	
  “Landlord”:

  	
  HEBRON COMMUNICATIONS CORPORATION

  
	
   

  	
   

  	
  5900 N. Mosteller Dr.
  41150, OKC, OK 73112

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Tenant”:

  	
  AMERIVISION COMMUNICATIONS, INC.

  
	
   

  	
   

  	
  5900 Mosteller Dr.
  #1150, OKC, OK 73112

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

19

 

Exhibit “D”, Work Letter

 

The Landlord
agrees to provide, at the sole cost and expense of the Landlord, the following
improvements to the Leased Premises:

 

 

	
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20

 

Exhibit “E”

 

FOUNDERS TOWER
Office Building

 

RULES
AND REGULATIONS

 

 

1.             All safes or other heavy articles shall be carried up or
into the premises only at such times and in such manner as shall be prescribed
by the Landlord, and the Landlord shall in all cases have the right to specify
the proper weight and position of any such safe or other heavy article.
Structural analysis required by Landlord shall be at the sole cost of the
Tenant. Any damage done to the building by taking in or removing any safe from
overloading any floor in any way shall be paid by the Tenant. Defacing or
injuring, in any way any, part of the building, by the Tenant its agents or
servants, shall be paid for by the Tenant.

 

2.             No additional signage or other showcases shall be placed
in front of the building or in the court or corridor, without written consent
of the Landlord.

 

3.             No Tenant shall employ any person or persons other than
the janitorial service of the Landlord for the purposes of cleaning or taking
charge of the demised premises, without the written consent of the Landlord; It
being understood and agreed that the Landlord shall be in no way responsible to
any Tenant for any loss of property from the demised premises, however
occurring, or for any damage to the furniture by the janitor or any of his
employees, or by any other person or persons whatsoever. Any person or persons
employed by the Tenant, with the written consent of the Landlord, must be
subject to and under the control and direction of the management of the
building, in all things, in the building and outside of said demised premises.

 

4.             The janitorial service of the building shall at all
times keep a pass key, as well as other agents of the Landlord, and shall at
all times be allowed admittance to said demised premises.

 

5.             No additional locks shall be placed upon any doors
without the written consent of the Landlord, nor shall any duplicate keys be
made. The Landlord shall furnish all necessary keys, and the same shall be
surrendered upon the termination of this lease, and the Tenant shall then give
to the Landlord or his agents, explanation of the combination of all locks upon
the doors of his vaults.

 

6.             The water closets and other water fixtures shall not be
used for any purpose other than those for which they were constructed, and any
damage resulting to them from misuse or the defacing or injury of any part of
the building shall be borne by the person who shall occasion it. No person
shall waste water by interfering with the faucets or otherwise.

 

7.             No dogs or other animals will be allowed in the
building, except qualified therapy animals and then only if approved by the
Landlord in writing.

 

8.             No
bicycles or similar vehicles will be allowed in the building.

 

9.             Nothing shall be  thrown out of the windows of the building,
off the balconies, or down the stairways or other passages. No items of any
kind, including antennas shall be placed on balconies. Tenant should use the
balconies only at their sole risk. Use of the balconies shall not subject the
Landlord to any liability. Further, the Landlord makes no warranties as to the
safety of the balconies for any use whatsoever.

 

10.           The Landlord or his agents shall have
the right to enter the demised premises to examine the same or to make such
repairs, alterations or additions as the Landlord shall deem necessary for the
safety, preservation or improvement of the building; and the Landlord or his
agents may show said demised premises.

 

21

 

11.           Tenants, their employees, clerks or
servants, shall not use the demised premises for the purpose of lodging rooms,
or for any immoral or unlawful purposes.

 

12.           Neither Tenant, his agents or
employees shall disturb the occupants of the building by the use of musical
instruments, making unseemly noises, or by interference in any way.

 

13.           Movement in or out of the Building of
furniture or office equipment. or dispatch or receipt by Tenant of any
merchandise or materials, which requires use of elevators or stairways, or
movement through Building entrances or lobby shall be restricted to hours
designated by landlord. All such movement shall be under supervision of
Landlord and in the manner agreed between Tenant and Landlord by pre-arrangement
before performance. Such pre-arrangement initiated by Tenant will include
determination by Landlord and subject to his decision and control of the time,
method and routing of movement, and limitations imposed by safety or other
concerns which may prohibit any article, equipment or any other item from being
brought into the Building.  Tenant is to
assume all risk as to damage to articles moved and injury to persons or public
engaged or not engaged in such movement, including equipment, property and
personnel of Landlord if damaged or injured as a result of acts in connection
with carrying out this service for Tenant from time of entering the tract on
which the Building stands to completion of work; and Landlord shall not be
liable for acts of any person engaged in, or any damage or loss to any of said
property or persons resulting from any act in connection with such service
performed for Tenant.

 

14.           No signs will be allowed in any form
on exterior of Building or windows inside or out, and no signs except in
uniform location and uniform styles fixed by Landlord will be permitted in the
public corridors or on corridor doors or entrances to Tenant’s space.  All signs will be contracted for by Landlord
for Tenant at the rate fixed by Landlord from time to time, and Tenant will be
billed and pay for such service accordingly. 
Except as otherwise provided for in this Lease.

 

15.           No draperies, shutter, or other
window covering shall be installed on exterior windows or walls or windows and
doors facing public corridors without landlord’s prior written approval.

 

16.           Tenant shall not place, install or
operate on the demised premises or in any part of the Building, any engine,
stove, or machinery, or conduct mechanical operations or cook thereon or
therein (microwave oven excepted), or place or use in or about premises any
explosives, gasoline, kerosene, oil, acids, caustics, or any other inflammable,
explosive, or hazardous materials without written consent of Landlord. Candles
and electric space heaters are fire hazards and are prohibited from use in the
Building.

 

17.           Landlord will not be responsible for
lost or stolen personal property, equipment, money, jewelry, documentation or
files from the demised premises or public rooms regardless of whether such loss
occurs when area is locked against entry or not.

 

18.           None of the entries, passages, doors,
elevators, elevator doors, hallways, or stairways shall be blocked or
obstructed or any rubbish, litter, trash, or material of any nature placed,
emptied or thrown into these areas, or such areas be used at any time except
for ingress by Tenant, Tenant’s agents, employees, or invitees.

 

19.           Tenant shall store all its trash and
garbage within its demised premises. No materiel shall be placed in the trash
boxes or receptacles if such material is such nature that it may not be
disposed of in the ordinary and customary manner of removing and disposing of
trash and garbage and with out being in violation of any law or ordinance
governing such disposal. All garbage and refuse disposal shall be made only
through entryways and elevators provided for such purposes and at such times as
Landlord shall designate.

 

20.           The Tenant will not mark, paint,
drill into or in any way deface any part of the Leased Premises or the Building.  No boring, cutting, or stringing of wires
will be permitted except with the prior written consent of the Landlord and as
the Landlord might direct. The Tenant will not install any tile or other
similar floor covering without the prior written consent of the Landlord. The
Tenant will refer all contractors, representatives and installation technicians
rendering any service to the Tenant to the Landlord for the Landlord’s
supervision, approval and control before the performance of any such service
(the foregoing provisions will apply to all work performed in the Building at
the Tenant’s request, including, but not limited to, installations of
telephones,

 

22

 

telegraph equipment,
electrical devices and all installations of every nature affecting floors,
walls, woodwork, trim, windows, ceilings, equipment and any other portion of
the Building).

 

21.           These Rules and Regulations are in
addition to, and shall not be construed to in any way modify, alter or amend, in
whole or in part, the terms, covenants, agreements and conditions of any lease
covering premises in the Building.

 

#

 

23

 

ADDENDUM

 

 

THIS ADDENDUM is made
this 26th day of Jan., 2003 between HEBRON COMMUNICATIONS
CORPORATION, a Florida corporation (the “Landlord”) and AMERIVISION
COMMUNICATIONS INC., an Oklahoma corporation (the “Tenant”).

 

WITNESSETH

 

WHEREAS, the Landlord and
the Tenant have executed that certain Office Lease (the “Lease”) dated November
18, 2002 attached hereto, covering a portion of the space in the Building;

 

WHEREAS, the Landlord and
the Tenant have reached certain agreements. which are not reflected by the
Lease, and to the extent the provisions of this Addendum are inconsistent with
the Lease, the terms of this Addendum will control;

 

WHEREAS, unless
specifically defined herein, the capitalized terms used in this Addendum will
have the meanings defined in the Lease; and

 

WHEREAS, the section
numbers, which follow, correspond with the same section numbers as are
contained in the Lease.

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements herein contained, the
Landlord and the Tenant agree as follows:

 

 

ARTICLE 20, STORAGE SPACE.  Add the following new paragraph to the
Lease. During the initial Term of this Lease, Tenant shall be allowed to store
office items in 1,136 Usable Square Feet in the lower level of the annex
building as depicted on Exhibit A-2 attached hereto.  In lieu of Rent on said Storage Space, Tenant shall provide to
Hebron Communications Corporation seven (7) telephones and seven (7) business
lines on Tenant’s telephone network within the Building. Landlord’s obligation
to provide said Storage Space at no charge shall terminate upon the Expiration
Date of this Lease Agreement. Tenant’s obligation to provide said telephones
and business shall terminate at the earlier of the Expiration Date of this
Lease or upon the date that Hebron Communications Corporation ceases to occupy
space within the Building.

 

 

	
   

  	
  “Landlord”:

  	
   

  	
  HEBRON COMMUNICATIONSCORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
  5900 N. Mosteller Dr. #1150, OKC, OK 73112

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John E. Telling

  	
   

  
	
   

  	
   

  	
   

  	
  John E. Telling,
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Tenant”:

  	
   

  	
  AMERIVISION COMMUNICATIONS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
  5900 N. Mosteller Dr., #1600, OKC, OK  73112

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David W. Clark

  	
   

  
	
   

  	
   

  	
   

  	
  David W. Clark, Chairman of the Board

  	
   

  

 

24Exhibit
4.1

 

SUPPLEMENTAL INDENTURE NO. 3

 

by
and between

 

SENIOR HOUSING PROPERTIES TRUST

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

As
of April 21, 2003

 

 

SUPPLEMENTAL TO THE INDENTURE DATED AS OF DECEMBER
20, 2001

 

 

 

 

SENIOR HOUSING PROPERTIES TRUST

 

7
7/8 % Senior Notes due 2015

 

 

This SUPPLEMENTAL INDENTURE NO. 3 (this “Supplemental
Indenture”) made and entered into as of April 21, 2003 between
SENIOR HOUSING PROPERTIES TRUST, a Maryland real estate investment trust (the “Company”),
and U.S. BANK NATIONAL ASSOCIATION, a national banking association (and
successor to State Street Bank and Trust Company (“State Street”) in its
capacity as Trustee), as Trustee (the “Trustee”),

 

WITNESSETH THAT:

 

WHEREAS, the Company and State Street have executed
and delivered an Indenture, dated as of December 20, 2001 (as previously and
from time to time hereafter amended, supplemented or otherwise modified, the “Base
Indenture” and, together with this Supplemental Indenture, as
amended, supplemented or otherwise modified from time to time, the “Indenture”)
to provide for the future issuance of the Company’s senior debt securities (the
“Securities”)
to be issued from time to time in one or more series; and

 

WHEREAS, U.S. Bank National Association has acquired
and succeeded to substantially all of the corporate trust business of State
Street, and, being eligible to serve as trustee under the Indenture, has
succeeded to State Street as Trustee under the Indenture; and

 

WHEREAS, pursuant to the terms of the Base Indenture,
the Company desires to provide for the establishment of a series of its
Securities, to be known as its 7 7/8% Senior Notes due 2015, the form and
substance of such Securities and the terms, provisions and conditions thereof
to be set forth as provided in the Indenture;

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE
WITNESSETH:

 

ARTICLE 1

 

DEFINED TERMS

 

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

 

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

 

“Adjusted Total Assets” is defined in clause
(i) of Section 3.1(a).

 

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

 

“Business Day” means any day other than a
Saturday or Sunday or a day on which banking institutions in the City of New
York or in the city in which the corporate trust office of the Trustee

 

 

are required or authorized to close.

 

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

 

“Cash Equivalents” means:

 

(i)                                     demand
deposits, certificates of deposit or repurchase agreements issued by or
maintained with banks or other financial institutions;

 

(ii)                                  marketable
securities issued or directly and fully guaranteed as to timely payment by the
United States of America or any agency or instrumentality thereof, or

 

(iii)                               any
commercial paper or other obligation rated, at time of purchase, at least “P-2”
(or its equivalent) by Moody’s or at least “A-2” (or its equivalent) by
Standard & Poor’s.

 

“Change of Control” means such time as any
“person” or “group” (as such terms are defined in Sections 13(d) and
14(d)(2) of the Exchange Act), other than an Excluded Person, becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of more
than 50% of the total voting power of the Voting Stock of the Company on a
fully diluted basis.  For such purpose,
“Excluded
Person” means (i) RMR, HRPT Properties Trust, a Maryland real estate
investment trust, Hospitality Properties Trust, a Maryland real estate
investment trust, Five Star Quality Care, Inc., a Maryland corporation, or any
other entity for which financing, investment and operating oversight for
substantially all of such entity’s activities is provided by RMR, or any
successor to or affiliate of such persons, and (ii) any person or group
acquiring shares issued by the Company in connection with a merger or
acquisition, if the person or group has agreed with the Company to distribute
such shares to the holders of its or their securities within a period of not
longer than one year from the date of such agreement (the “Distribution
Period”) and, giving pro forma effect to such distribution as of the date on
which the agreement for the merger or acquisition was entered into (and giving
effect to the transactions contemplated by that agreement), no Change of
Control would have occurred; provided that if such distribution does
not occur by the end of the Distribution Period, a Change in Control shall be
deemed to have occurred at the end of the Distribution Period.

 

“Change of Control Offer” is defined in
Section 4.1 of this Supplemental Indenture.

 

“Change of Control Payment” is defined in
Section 4.1 of this Supplemental Indenture.

 

“Change of Control Payment Date” is defined
in Section 4.1(b) of this Supplemental Indenture.

 

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

 

2

 

minus amounts which have been added, for the following (without
duplication): (i) interest or distributions on Debt of the Company and its
Subsidiaries, (ii) provision for taxes of the Company and its Subsidiaries
based on income, (iii) amortization of debt discount and deferred
financing costs, (iv) provisions for gains and losses on properties and
property depreciation and amortization, (v) the effect of any noncash
charge resulting from a change in accounting principles in determining Earnings
from Operations for such period and (vi) amortization of deferred charges.

 

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

 

“Disqualified Stock” means, with respect to
any Person, any Capital Stock of such Person which by the terms of such Capital
Stock (or by the terms of any security into which it is convertible or for
which it is exchangeable or exercisable), upon the happening of any event or
otherwise (other than pursuant to a
change of control provision not materially more favorable to the holder thereof
than that set forth in Section 4.1 of this Supplemental Indenture), (i) matures
or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise (other than Capital Stock which is redeemable solely in exchange for
Capital Stock which is not Disqualified Stock or for Subordinated Debt),
(ii) is convertible into or exchangeable or exercisable for Debt, other
than Subordinated Debt or Disqualified Stock, or (iii) is redeemable at
the option of the holder thereof, in whole or in part (other than Capital Stock
which is redeemable solely in exchange for Capital Stock which is not Disqualified
Stock or for Subordinated Debt); in each case on or prior to the Stated
Maturity of the principal of the Notes.

 

“Earnings from Operations” for any period
means net earnings excluding gains and losses on sales of investments, gains or
losses on early extinguishment of debt, extraordinary items,

 

3

 

distributions on equity securities and property valuation losses, as
reflected in the financial statements of the Company and its Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP.

 

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

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

“Excluded Refunding” means,
at any time, any voluntary or optional principal payment, or voluntary or
optional redemption, repurchase, defeasance, or other acquisition or retirement
for value, of Subordinated Debt of the Company or any Subsidiary in an amount
not exceeding the aggregate Net Cash Proceeds received by the Company and its
Subsidiaries from the substantially concurrent sale of Qualified Subordinated
Debt, to the extent such proceeds have not theretofore been taken in account in
calculating the amount of an Excluded Refunding.  For such purpose, “Qualified Subordinated Debt” means
Subordinated Debt of the Company or a Subsidiary of the Company (or trust
preferred securities or similar Capital Stock of a Subsidiary of the Company as
to which any related Debt of the Company or other Subsidiaries of the Company
is Subordinated Debt) which does not mature and is not subject to mandatory
repurchase or redemption or to repurchase or redemption at the option of the
holder thereof (other than pursuant to a change of control provision not
materially more favorable to the holder thereof than that set forth in
Section 4.1 of this Supplemental Indenture) in whole or in part prior to
the Stated Maturity of the principal of the Notes.

 

“Funds from Operations” for any period means
Earnings from Operations for such period plus amounts which have been deducted,
and minus amounts that have been added, for the following (without
duplication): (i) provision for taxes of the Company and its Subsidiaries
based on income, (ii) amortization of debt discount and deferred financing
costs, (iii) provisions for gains and losses on properties and property
depreciation and amortization, (iv) the effect of any noncash charge
resulting from a change in accounting principles in determining Earnings from
Operations for such period, (v) expenses and charges relating to the spin-off
of Five Star Quality Care, Inc., and (vi) amortization of deferred
charges.

 

“Interest Payment Date” with respect to the
Notes is defined in Section 101 of the Base Indenture and Section 2.1(b)
of this Supplemental Indenture.

 

“Moody’s” means Moody’s Investors Services,
Inc. or any successor thereof.

 

“Net Cash Proceeds” means the proceeds of
any issuance or sale of Capital Stock, in the form of cash or Cash Equivalents,
including payments in respect of deferred payment obligations when received in
the form of, or shares or other assets when disposed for, cash or Cash
Equivalents (except to the extent that such obligations are financed or sold
with recourse to the Company or any Subsidiary), net of attorney’s fees,
accountant’s fees and brokerage, consultation, underwriting and other fees and
expenses actually incurred in connection with such issuance or sale and net of
taxes paid or payable as a result thereof.

 

4

 

“Notes” means the Company’s 7 7/8% Senior
Notes due 2015, issued under the Indenture.

 

“Public Equity Offering” means an underwritten public offering by the
Company of its common shares of beneficial interest pursuant to an effective
registration statement under the Securities Act, in which the aggregate cash
gross proceeds (prior to reduction for underwriting or brokerage discounts,
commissions or fees, attorney’s or accountant’s fees or other fees or
expenses in connection with such offering) are not less than $25,000,000.

 

“Regular Record Date” with respect to the
Notes is defined in Section 101 of the Base Indenture and Section 2.1(b)
of this Supplemental Indenture.

 

“RMR”
means Reit Management & Research LLC, a Delaware limited liability company.

 

“Secured Debt” means Debt secured by any
Encumbrance.

 

“Standard & Poor’s” means Standard
& Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc. or any successor thereof.

 

“Subordinated Debt” means Debt which by the
terms of such Debt is subordinated in right of payment to the principal of and
interest and premium, if any, on the Notes.

 

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

 

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

 

“Total Unencumbered Assets” means the sum
of (i) the Undepreciated Real Estate Assets of the Company and its Subsidiaries
not securing any portion of Secured Debt and (ii) all other assets, including
accounts receivable and intangibles, of the Company and its Subsidiaries not
securing any portion of Secured Debt determined on a consolidated basis in
accordance with GAAP.  If Secured Debt
secured by real estate or other property or assets of the Company or its
Subsidiaries (“Secondary Collateral”) is fully defeased in accordance with the
terms thereof or is also secured by cash or Cash Equivalents in an amount
(determined at the lesser of (i) carrying value in accordance with GAAP or (ii)
fair market value) at least equal to the outstanding principal amount of such
Secured Debt, such Secondary Collateral shall be deemed not to secure any portion
of such Secured Debt for purposes of this definition.

 

“Undepreciated Real Estate Assets” as of
any date means the cost (original cost plus capital improvements less
adjustments to carrying value in accordance with GAAP made prior to
January 1, 2001) of real estate and associated tangible personal property
used in connection with

 

5

 

the real estate assets of the Company and its Subsidiaries on such
date, before depreciation and amortization determined on a consolidated basis
in accordance with GAAP.

 

“Unsecured Debt” means any Debt which is
not Secured Debt.

 

“Voting Stock” of any Person means the
Capital Stock of such Person that is at the time entitled to vote in the
election of the board of directors, board of trustees or the equivalent of such
Person.

 

ARTICLE 2

 

TERMS OF THE NOTES

 

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

 

(a)  Title;
Aggregate Principal Amount; Form of Notes. 
The Notes shall be Registered Securities under the Indenture and shall
be known as the Company’s “7 7/8% Senior Notes due 2015.”  The Notes will be limited to an aggregate
principal amount of $150,000,000, subject to the right of the Company to reopen
such series for issuances of additional securities of such series and except
(i) as provided in this Section and (ii) for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities of the series pursuant to Section 304, 305, 306, 906 or 1107
of the Indenture and except for any Securities which, pursuant to Section 303
of the Indenture, are deemed never to have been authenticated and delivered
hereunder. The Notes (together with the Trustee’s certificate of
authentication) shall be substantially in the form of Exhibit A hereto, which
is hereby incorporated in and made a part of this Supplemental Indenture.

 

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

 

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

 

If DTC is at any time unwilling, unable or ineligible
to continue as depositary and a

 

6

 

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

 

(b)  Interest
and Interest Rate.  The Notes will
bear interest at a rate of 7 7/8% per annum, from April 21, 2003 (or, in the
case of Notes issued upon the reopening of this series of Notes, from the date
designated by the Company in connection with such reopening) or from the
immediately preceding Interest Payment Date to which interest has been paid or
duly provided for, payable semiannually on each April 15 and October 15,
commencing October 15, 2003 (each of which shall be an “Interest Payment
Date”), to the Persons in whose names the Notes are registered in the Security
Register at the close of business on April 1 and October 1, as the case may be
(whether or not a Business Day), next preceding such Interest Payment Date
(each, a “Regular Record Date”).

 

(c)  Principal
Repayment; Currency.  The Stated
Maturity of the principal of the Notes is April 15, 2015, provided, however,
the Notes may be earlier redeemed at the option of the Company as provided in
paragraph (d) below. The principal of each Note payable at its Stated Maturity
shall be paid against presentation and surrender thereof at the Corporate Trust
Office of the Trustee, located initially at One Federal Street, Boston,
Massachusetts 02110, in such coin or currency of the United States of America
as at the time of payment is legal tender for the payment of public or private
debts.

 

(d)  Redemption
at the Option of the Company.

 

(i)                                     The
Notes will be subject to redemption at any time and from time to time on or
after April 15, 2008 at the option of the Company, in whole
or in part, upon not less than 30 nor more than 60 days’ notice to each Holder
of Notes to be redeemed at its address appearing in the Security Register, at
the following redemption prices (expressed in percentages of principal amount),
plus accrued and unpaid interest, if any, to but excluding the applicable
Redemption Date, if redeemed during the 12-month period beginning on April 15
of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  103.938

  	
  %

  
	
  2009

  	
   

  	
  102.625

  	
  %

  
	
  2010

  	
   

  	
  101.313

  	
  %

  
	
  2011
  and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(ii)                                  In
addition, up to 35% of the aggregate principal amount of the Notes issued
hereunder will be subject to redemption at any time and from time to time prior
to April 15, 2006 at the option of the Company, in whole or in part, with
the net proceeds of one or more Public Equity Offerings, upon not less than 30
nor more than 60 days’ notice

 

7

 

to each Holder of Notes
to be redeemed at its address appearing in the Security Register, at a
redemption price (expressed in percentages of principal amount) of 107.875%,
plus accrued and unpaid interest, if any, to but excluding the applicable
Redemption Date; provided (i) that Notes representing at least 65% of the
aggregate principal amount of the Notes issued hereunder remains outstanding
immediately after each such redemption and (ii) such redemption occurs within
90 days after the date of the closing of the applicable Public Equity Offering.

 

(e)  Notices.  All notices and other communications
hereunder shall be in writing and shall be deemed to have been duly given if
mailed or transmitted by any standard form of telecommunication.  Notices to the Company shall be directed to
it at 400 Centre Street, Newton, Massachusetts
02458, fax number (617) 796-8349, Attention:
President; notices to the Trustee shall be directed to it at One Federal
Street, Boston, Massachusetts 02110, fax number (617) 603-6683, Attention:
Corporate Trust Department, Re: Senior Housing Properties Trust 7 7/8% Senior
Notes due 2015; or as to either party, at such other address as shall be
designated by such party in a written notice to the other party.

 

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

 

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

 

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

 

ARTICLE 3

 

ADDITIONAL
COVENANTS

 

Section 3.1  Holders of the Notes shall have the benefit
of the following covenants, in addition to the covenants of the Company set
forth in Article Eight of the Indenture:

 

(a)  Limitations
on Incurrence of Debt.

 

(i)                                     The
Company will not, and will not permit any Subsidiary to, incur any

 

8

 

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

 

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

 

(iii)                               The
Company will not, and will not permit any Subsidiary to, incur any Debt if the
ratio of Consolidated Income Available for Debt Service to the Annual Debt
Service for the four consecutive fiscal quarters most recently ended prior to
the date on which such additional Debt is to be incurred shall have been less
than 2.0 to 1.0, on a pro forma basis after giving effect thereto and to the
application of the proceeds therefrom, and calculated on the assumption that
(A) such Debt and any other Debt incurred by the Company and its Subsidiaries
on a consolidated basis since the first day of such four-quarter period and the
application of the proceeds therefrom, including to refinance other Debt, had
occurred at the beginning of such period; (B) the repayment or retirement
of any other Debt by the Company and its Subsidiaries since the first date of
such four-quarter period had been repaid or retired at the beginning of such
period (except that, in making such computation, the amount of Debt under any
revolving credit facility shall be computed based upon the average daily
balance of such Debt during such period); (C) in the case of Acquired Debt
or Debt incurred in connection with any acquisition since the first day of such
four-quarter period, the related acquisition had occurred as of the first day
of such period with appropriate adjustments with respect to such acquisition
being included in such pro forma calculation; and (D) in the case of any
acquisition or disposition by the Company or its Subsidiaries on a consolidated
basis of any asset or group of assets since the first day of such four-quarter
period, whether by merger, stock purchase or sale, or asset purchase or sale,
such acquisition or disposition or any related repayment of Debt had occurred
as of the first day of such period with the appropriate adjustments with
respect to such acquisition or disposition being included in such pro forma
calculation. If the Debt giving rise to the need to make the foregoing
calculation or any other Debt incurred after the first day of the relevant four-quarter
period bears interest at a floating rate then, for purposes of calculating the
Annual Debt Service, the

 

9

 

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

 

(b)  Limitations
on Distributions.  The Company will
not, and will not permit any Subsidiary to, (i) declare or pay any dividend or
make any distribution on or with respect to the Company’s Capital Stock (other
than dividends or distributions payable solely in shares of the Company’s
Capital Stock, other than Disqualified Stock, or in options, warrants or other
rights to acquire shares of such Capital Stock; (ii) purchase, redeem, retire
or otherwise acquire for value any shares of the Company’s Capital Stock; or
(iii) make any voluntary or optional principal payment, or voluntary or
optional redemption, repurchase, defeasance, or other acquisition or retirement
for value, of Subordinated Debt (other
than Excluded Refundings); unless, immediately after giving pro forma
effect to such distribution (each, a “Restricted Payment”):

 

(A)                              no
Default under the Indenture shall have occurred and be continuing or would
occur as a result of such Restricted Payment;

 

(B)                                the
Company and its Subsidiaries would have been permitted to incur at least $1.00
of additional Debt (other than Debt between the Company and one or more its
Subsidiaries or between one or more its Subsidiaries) under the terms of
Section 3.1(a) of this Supplemental Indenture; and

 

(C)                                the
aggregate amount of all Restricted Payments (the amount, if other than in cash,
to be determined in good faith by the Board, whose determination shall be
conclusive and evidenced by a Board Resolution) made after the date of this
Supplemental Indenture would not exceed the sum of:

 

(I)                                    95%
of Funds from Operations accrued on a cumulative basis during the period (taken
as one accounting period) beginning on October 1, 2001 and ending on the last
day of the Company’s then most recently completed calendar quarter; plus

 

(II)                                100%
of the aggregate Net Cash Proceeds received by the Company after October 1,
2001 from the issuance or sale of Capital Stock of the Company to a Person
which is not a Subsidiary of the Company; plus

 

(III)                            $15,000,000.

 

Notwithstanding the
foregoing, this Section 3.1(b) shall not prohibit or limit, and shall not
be violated by, (i) any dividend, distribution or other action which is
necessary to distribute 100% of the Company’s real estate investment trust
taxable income (determined prior to any deductions for dividends paid) or to
maintain the Company’s status as a real estate investment trust under the
Internal Revenue Code of 1986, as amended, if the aggregate principal amount of
all outstanding Debt of the Company and its Subsidiaries on a consolidated
basis determined in accordance with GAAP is less than 60% of Adjusted Total
Assets, or (ii) the payment of any dividend or other distribution within
60 days of the declaration thereof if at the date of declaration thereof
such payment would have complied with the provisions of this Section 3.1(b).

 

10

 

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

 

(d)  Company
May Consolidate, Etc., Only on Certain Terms.  In addition to the provisions of Section 801 of the Indenture,
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 the Company shall not permit any Person to
consolidate with or merge into the Company or convey, transfer or lease its
properties and assets substantially as an entirety to the Company, unless
immediately after giving effect to such transaction, the Person formed by such
consolidation or into which the Company is merged or the Person which acquires
by conveyance or transfer, or which leases, the properties and assets of the Company
substantially as an entirety would be permitted to incur at least $1.00 of
additional Debt (other than Debt between such Person and one or more of its
Subsidiaries or between one or more or its Subsidiaries) under the terms of
Section 3.1(a) of this Supplemental Indenture.

 

ARTICLE 4

 

OFFER TO
REPURCHASE UPON CHANGE OF CONTROL

 

Section 4.1  Subject to Section 4.2, if a Change of
Control occurs, the Company shall make an offer (a “Change of Control Offer”) to
each Holder of the Notes to repurchase all or any part (equal to $1,000 or an
integral multiple thereof) of such Holder’s Notes at a purchase price, in cash,
equal to 101% of the aggregate outstanding principal amount of the Notes
repurchased, plus accrued and unpaid interest thereon, if any (subject to the
right of Holders on the relevant record date to receive interest due on the
relevant interest payment date), to the date of purchase (the “Change of
Control Payment”).

 

Within 10 days following any Change of Control, the
Company shall mail a written offer (an “Offer”) to each Holder in accordance
with the terms of Section 1104 of the Base Indenture.  The Offer shall contain all the information required by
applicable law to be included therein. 
The Offer shall also contain information concerning the business of the
Company and its Subsidiaries which the Company in good faith believes will
enable such Holders to make an informed decision with respect to the Change of
Control Offer.  The Offer shall contain
all instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Change of Control Offer. 
The Offer shall also state:

 

(a)  that the
Change of Control Offer is being made pursuant to this covenant and that all
Notes tendered will be accepted for payment on the Change of Control Payment
Date, as defined below;

 

(b)  the
purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the “Change of
Control Payment

 

11

 

Date”),
which date shall also be the date the Offer expires;

 

(c)  that any
Note not tendered will continue to accrue interest;

 

(d)  that,
unless the Company defaults in the payment of the Change of Control Payment,
all Notes accepted for payment pursuant to the Change of Control Offer shall
cease to accrue interest after the Change of Control Payment Date;

 

(e)  that
Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender the Notes, with the form entitled “Option
of Holder to Elect Purchase” on the reverse of the Notes completed, to the
Paying Agent at the address specified in the notice prior to close of business
on the date specified in such notice, which shall not be earlier than first to
occur of (i) the thirtieth day following the date of such notice and (ii) the
third Business Day preceding the Change of Control Payment Date;

 

(f)  that
Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day
preceding the Change of Control Payment Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Notes delivered for purchase, and a statement that such Holder is
withdrawing its election to have the Notes purchased;

 

(g)  that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $1,000 in principal amount or an
integral multiple thereof; and

 

(h)  that
Holders electing to have a Note purchased pursuant to a Change of Control Offer
may elect to have Notes purchased in integral multiples of $1,000 only.

 

On the Change of Control Payment Date, the Company
shall, to the extent lawful,

 

(i)                                     accept
for payment all Notes or portions of the Notes properly tendered pursuant to
the Change of Control Offer;

 

(ii)                                  deposit
with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of the Notes so tendered; and

 

(iii)                               deliver
or cause to be delivered to the Trustee the Notes so accepted together with an
Officers’ Certificate stating the aggregate principal amount of Notes or
portions thereof being purchased by the Company.

 

The Paying Agent shall promptly mail to each Holder of
Notes properly tendered payment in an amount equal to the Change of Control
Payment with respect to the purchased Notes, and the Trustee shall promptly
authenticate and mail (or cause to be transferred by book entry) to each Holder
a new Note equal in principal amount to any unpurchased portion of the Notes
surrendered by such Holder, if any; provided, however, that each such new Note
shall be

 

12

 

in a principal amount of $1,000 or an integral multiple thereof. The
Company shall publicly announce the results of the Change of Control Offer on
or as soon as practicable after the Change of Control Payment Date.

 

The Change of Control provisions described above shall
be applicable whether or not any other provisions of this Indenture are
applicable.

 

The Company shall comply with the  requirements of Section 14(e) of the
Exchange Act and any other securities laws or regulations to the extent those
laws and regulations are applicable to any Change of Control Offer.  If the provisions of any of the applicable
securities laws or securities regulations conflict with the provisions of this
Section 4.1, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section 4.1 by virtue of the compliance.

 

Notwithstanding the
foregoing provisions of this Section 4.1, the Company shall not be
required to make or give notice of a Change of Control Offer and, if made or
given, shall not be required to repurchase Notes on the related Change of
Control Payment Date if, prior to the date on which such notice or Change of
Control Offer is required to be given or made or such Change of Control Payment
Date, as applicable

 

(i)                                   the
Company shall have irrevocably exercised its option to redeem the Notes in
whole pursuant to Section 2.1(d) of this Supplemental Indenture; provided
that if the Company shall default in its obligation to redeem the Notes
pursuant to such redemption on the applicable Redemption Date, the Company
shall become obligated to commence a Change of Control Offer in accordance with
this Article 4 on such Redemption Date; or

 

(ii)                                  giving
effect to the related Change of Control, the Moody’s and Standard & Poor’s
shall have confirmed that the Notes are rated “Ba3” (or its equivalent) or
higher and “BB-” or higher, respectively.

 

The Company shall not be required to make a Change of
Control Offer upon a Change of Control if a third party makes the Change of
Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Indenture applicable to a Change of Control
Offer made by the Company and purchases all Notes properly tendered and not
withdrawn under such Change of Control Offer.

 

The provisions of the
Indenture relating to the Company’s obligation to make an offer to repurchase
the Notes as a result of a Change of Control (including this Article 4 and
clause (a) of Section 5.1) may be waived or modified with the consent of the
Holders of at least a majority in principal amount of the Notes then
outstanding.

 

Section 4.2.  The provisions of Section 4.1 shall
terminate and cease to have further force or effect on or after the first date,
if any, on which the Notes shall have been rated “Baa3” (or its equivalent) or
higher by Moody’s and “BBB-” (or its equivalent) or higher by Standard &
Poor’s.

 

13

 

ARTICLE 5

 

ADDITIONAL EVENTS
OF DEFAULT

 

Section 5.1  For purposes of this Supplemental Indenture
and the Notes, in addition to the Events of Default set forth in Section 501 of
the Indenture, it shall also constitute an “Event of Default” if (a) the
Company shall have failed to consummate a Change of Control Offer in accordance
with the provisions of Article 4 of this Supplemental Indenture, or (b)
one or more final judgments or orders (not covered by insurance, treating any
deductibles, self-insurance or retention as not so covered) for the payment of
money in excess of $10,000,000 in the aggregate for all such judgments or
orders against the Company or any Subsidiary and such judgments or orders shall
not be paid or discharged, and there shall be a period of 60 consecutive days
after the final judgment or order that causes such aggregate amount to exceed
$10,000,000 million during which a stay of enforcement of such final
judgment(s) or order(s) are not in effect.

 

Section 5.2  Notwithstanding any provisions to the
contrary in the Indenture including, without limitation, Section 501(a)
thereof, the failure to pay the principal of or any premium on the Notes at its
Maturity shall constitute an “Event of Default”.

 

Section 5.3  Notwithstanding any provisions to the
contrary in the Indenture including, without limitation, Section 501(e)
thereof, the default under any bonds, debentures, notes or other evidences of
indebtedness of the Company, or under any mortgage, indenture or other instrument
of the Company (including a default with respect to Securities of any series
other than the Notes) under which there may be issued or by which there may be
secured any indebtedness of the Company (or by one or more Subsidiaries, the
repayment of which the Company has guaranteed or for which the Company is
directly responsible or liable as obligor or guarantor), whether such
indebtedness now exists or shall hereafter be created, which default(s) shall
constitute a failure to pay an aggregate principal amount exceeding $10,000,000
of such indebtedness when due and payable after the expiration of any
applicable grace period with respect thereto and shall have resulted in such
indebtedness in an aggregate principal amount exceeding $10,000,000 becoming or
being declared due and payable prior to the date on which it would otherwise
have become due and payable, without such indebtedness having been discharged,
or such acceleration having been rescinded or annulled, within a period of 10
days after there shall have been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at
least a majority in principal amount of the Outstanding Notes a written notice
specifying such default and requiring the Company to cause such indebtedness to
be discharged or cause such acceleration to be rescinded or annulled and
stating that such notice is a “Notice of Default” hereunder, shall
constitute an Event of Default.

 

ARTICLE 6

 

EFFECTIVENESS

 

Section 6.1  This Supplemental Indenture shall be
effective for all purposes as of the date and time this Supplemental Indenture
has been executed and delivered by the Company and the Trustee in accordance
with Article Nine of the Indenture. As supplemented hereby, the Indenture

 

14

 

is hereby confirmed as being in full force and effect.

 

ARTICLE 7

 

NOTICE TO TRUSTEE

 

Section 7.1  Notwithstanding anything to the contrary in
the Indenture including, without limitation, Section 1102 thereof, in
connection with the redemption at the election of the Company of less than all
the Notes, the Company shall notify the Trustee of the establishment of a
Redemption Date and the principal amount of Notes to be redeemed at least 45
days prior to such Redemption Date unless a shorter period shall be
satisfactory to the Trustee.

 

ARTICLE 8

 

MISCELLANEOUS

 

Section 8.1  In the event any provision of this
Supplemental Indenture shall be held invalid or unenforceable by any court of
competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof or any provision of the Indenture.

 

Section 8.2  To the extent that any terms of this
Supplemental Indenture or the Notes are inconsistent with the terms of the
Indenture, the terms of this Supplemental Indenture or the Notes shall govern
and supersede such inconsistent terms.

 

Section 8.3  This Supplemental Indenture shall be
governed by and construed in accordance with the laws of the State of New York.

 

Section 8.4 This Supplemental Indenture may be
executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.

 

15

 

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

 

	
   

  	
  SENIOR HOUSING
  PROPERTIES TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John R. Hoadley

  	
   

  
	
   

  	
   

  	
  Name: John R. Hoadley

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marie A. Hattinger

  	
   

  
	
   

  	
   

  	
  Name: Marie A.
  Hattinger

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

[Signature Page to
Supplemental Indenture]

 

16

 

EXHIBIT A

 

FORM OF NOTE

 

[Form of Face of
Security]

 

SENIOR HOUSING
PROPERTIES TRUST

 

7 7/8% Senior
Notes due 2015

 

	
  No.

  	
                                   

  	
   

  	
  $

  	
                

  

 

Senior Housing Properties Trust, a real estate
investment trust duly organized and existing under the laws of Maryland (herein
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                               
Dollars ($                   )
on April 15, 2015, and to pay interest thereon from April 21, 2003 or from the
most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on April 15 and October 15 in each year, commencing
October 15, 2003 at the rate of 7 7/8% per annum, until the principal hereof is
paid or made available for payment.  The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such 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, which
shall be the April 1 or October 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so
punctually paid or duly provided for will 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 of this series not less than 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 of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture.

 

Payment of the principal of (and premium, if any) and
any such interest on this Security will be made at the office or agency of the
Company maintained for that purpose in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that at the option
of the Company payment of interest may be made by check mailed to the address
of the Person entitled thereto as such address shall appear in the Security
Register.

 

Reference is hereby made to the further provisions of
this Security set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof by manual
signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

 

THE
ARTICLES OF AMENDMENT AND RESTATEMENT ESTABLISHING SENIOR HOUSING PROPERTIES
TRUST DATED SEPTEMBER 20, 1999, A COPY OF WHICH, TOGETHER WITH ALL AMENDMENTS
AND SUPPLEMENTS THERETO (THE “DECLARATION”), IS DULY FILED IN THE OFFICE OF THE
STATE DEPARTMENT OF ASSESSMENTS AND TAXATION OF MARYLAND, PROVIDES THAT THE
NAME “SENIOR HOUSING PROPERTIES TRUST” REFERS TO THE TRUSTEES UNDER THE DECLARATION
COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO
TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF THE COMPANY SHALL BE HELD
TO ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF, OR
CLAIM AGAINST, THE COMPANY. ALL PERSONS DEALING WITH THE COMPANY SHALL LOOK
ONLY TO THE ASSETS OF THE COMPANY FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE
OF ANY OBLIGATION.

 

A-1

 

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

 

	
  Dated:

  	
  SENIOR HOUSING
  PROPERTIES TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   Title:

  

 

 

CERTIFICATE OF
AUTHENTICATION

 

Dated:

 

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

 

	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION, As

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   Authorized Officer

  

 

A-2

 

[Form of Reverse
of Security]

 

1.                                       General.  This Security is one of a duly authorized
issue of securities of the Company (herein called the “Securities”),  issued and to be issued in one or more
series under an Indenture, dated as of December 20, 2001, between the Company
and State Street Bank and Trust Company (“State Street”) (as amended, supplemented
or otherwise modified from time to time, the “Base Indenture”), as
supplemented by a Supplemental Indenture No. 3, dated as of April 21,
2003, between the Company and U.S. Bank National Association, as successor
trustee to State Street (herein called the “Trustee”, which term includes State Street
as applicable) (as amended, supplemented or otherwise modified from time to
time, the “Supplemental
Indenture” and the Base Indenture, as supplemented by such
Supplemental Indenture, the “Indenture”), and reference is hereby made
to the Indenture for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Trustee, and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. 
This Security is one of the series designated on the face hereof.

 

2.                                       Optional
Redemption.  (i)           The Notes will be subject to redemption at
any time and from time to time on or after April 15, 2008 at the option of the
Company, in whole or in part, upon not less than 30 nor more than 60 days’
notice to each Holder of Notes to be redeemed at its address appearing in the
Security Register, at the following redemption prices (expressed in percentages
of principal amount), plus accrued and unpaid interest, if any, to but
excluding the applicable Redemption Date, if redeemed during the 12-month
period beginning on April 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  103.938

  	
  %

  
	
  2009

  	
   

  	
  102.625

  	
  %

  
	
  2010

  	
   

  	
  101.313

  	
  %

  
	
  2011
  and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(ii)                                  In
addition, up to 35% of the aggregate principal amount of the Notes issued
hereunder will be subject to redemption at any time and from time to time prior
to April 15, 2006 at the option of the Company, in whole or in part, with
the net proceeds of one or more Public Equity Offerings, upon not less than 30
nor more than 60 days’ notice to each Holder of Notes to be redeemed at its
address appearing in the Security Register, at a redemption price (expressed in
percentages of principal amount) of 107.875%, plus accrued and unpaid interest,
if any, to but excluding the applicable Redemption Date; provided (i) that Notes
representing at least 65% of the aggregate principal amount of the Notes issued
under the Supplemental Indenture remains outstanding immediately after each
such redemption and (ii) such redemption occurs within 90 days after the date
of the closing of the applicable Public Equity Offering.

 

(iii)                               In
the event of redemption of this Security in part only, a new Security or
Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof.

 

3.                                       Defeasance.  The Indenture contains provisions for
defeasance at any time of the entire indebtedness of this Security upon
compliance with certain conditions set forth in the Indenture.

 

4.                                       Defaults
and Remedies.  If an Event of
Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due
and payable in the manner and with the effect provided in the Indenture.

 

5.                                       Actions
of Holders.  The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Securities of each series to be affected under the Indenture at
any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time Outstanding of each
series to be affected.  The Indenture
also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such

 

A-3

 

series, 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 therefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

 

As provided in and subject to the provisions of the
Indenture, the Holder of this Security shall not have the right to institute
any proceeding with respect to the Indenture or for the appointment of a
receiver or trustee or for any other remedy thereunder, unless such Holder
shall have previously given the Trustee written notice of a continuing Event of
Default with respect to the Securities of this series, the Holders of not less
than a majority in principal amount of the Securities of this series at the
time Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the
Holders of a majority in principal amount of Securities of this series at the
time Outstanding a direction inconsistent with such request, and shall have
failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

 

6.                                       Payments
Not Impaired.  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 and interest on this
Security at the times, place and rate, and in the coin or currency, herein
prescribed.

 

7.                                       Denominations,
Transfer, Exchange.  As provided in
the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon
surrender of this Security for registration of transfer at the office or agency
of the Company in any place where the principal of and any premium and interest
on this Security are payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar duly executed by, the Holder hereof or his attorney duly authorized
in writing, and thereupon one or more new Securities of this series and of like
tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.

 

The Securities of this series are issuable only in
registered form without coupons in denominations of $1,000 and any integral
multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series 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.

 

8.                                       Persons
Deemed Owners.  Prior to due
presentment of this Security for registration of transfer, 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.

 

9.                                       Defined
Terms.  All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to
them in the Indenture.

 

A-4

 

[ASSIGNMENT FORM]

 

ABBREVIATIONS

 

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

 

	
  TEN COM

  	
   

  	
  —

  	
   

  	
  as tenants in common

  	
   

  	
  UNIF GIFT MIN ACT

  	
   

  	
  —

  	
   

  	
   

  	
  Custodian

  	
   

  
	
  TEN ENT

  	
   

  	
  —

  	
   

  	
  as tenants by the
  entireties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
  JT TEN

  	
   

  	
  —

  	
   

  	
  as joint tenants with
  right of survivorship and not as tenants in common

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Under Uniform Gifts to
  Minors 

  
	
  Act

  	
   

  	
   

  
	
   

  	
  (State)

  	
   

  
															

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

 

 

FOR VALUE RECEIVED, the
undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL
SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 

 

	
   

  
	
   

  

 

 

	
  PLEASE PRINT OR
  TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

  
	
   

  
	
  the within security and all rights thereunder, hereby
  irrevocably constituting and appointing

  
	
   

  	
  Attorney

  
	
  to transfer said security on the books of the
  Company with full power of substitution in the premises.

  

 

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice:  The signature to this assignment must
  correspond with the name as it appears upon the face of the within security
  in every particular, without alteration or enlargement or any change
  whatever.

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature Guarantee*:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
  *  Participant in a recognized Signature
  Guarantee Medallion Program (or other signature guarantor acceptable to the
  Trustee).

  
								

 

A-5

 

[FORM OF OPTION OF
HOLDER TO ELECT PURCHASE]

 

OPTION OF HOLDER
TO ELECT PURCHASE

 

If you want to elect to
have this Note purchased by the Company pursuant to Section 4.1 of the
Supplemental Indenture referred to in this Note pursuant to the Company’s
Change of Control Offer, check this box: 
o

 

	
  If you want to elect to
  have only part of this Note purchased by the Company pursuant to Section 4.1
  of the Supplemental Indenture 

  
	
  referred to in this
  Note pursuant to the Company’s Change of Control Offer, state the amount you
  elect to have purchased (must be 

  
	
  an integral multiple of
  $1,000):  $                                                      

  	
   

  

 

 

PLEASE INSERT YOUR SOCIAL
SECURITY OR OTHER IDENTIFYING NUMBER:

 

	
   

  
	
   

  

 

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice:  The signature to this election must
  correspond with the name as it appears upon the face of the within security
  in every particular, without alteration or enlargement or any change
  whatever.

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature Guarantee*:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
  *  Participant in a recognized Signature
  Guarantee Medallion Program (or other signature guarantor acceptable to the
  Company).

  
							

 

A-6

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