Document:

Exhibit

Exhibit 4.6

PIERIS PHARMACEUTICALS, INC.

Issuer
AND
[   ]   Trustee
INDENTURE
Dated as of [    ]
Subordinated Debt Securities

CROSS-REFERENCE TABLE (1)
	
			
	Section of Trust  
Indenture Act of 
1939, as Amended
	 
	Section of  
Indenture

	 
	 
	 

	310(a).
	 
	7.09

	310(b).
	 
	7.08

	 
	 
	7.10

	 
	 
	 

	310(c).
	 
	Inapplicable

	311(a).
	 
	7.13(a)

	311(b).
	 
	7.13(b)

	311(c).
	 
	Inapplicable

	312(a).
	 
	5.02(a)

	312(b).
	 
	5.02(b)

	312(c).
	 
	5.02(c)

	313(a).
	 
	5.04(a)

	313(b).
	 
	5.04(a)

	313(c).
	 
	5.04(a)

	 
	 
	5.04(b)

	313(d).
	 
	5.04(b)

	314(a).
	 
	5.03

	314(b).
	 
	Inapplicable

	314(c).
	 
	13.06

	314(d).
	 
	Inapplicable

	314(e).
	 
	13.06

	314(f).
	 
	Inapplicable

	315(a).
	 
	7.01(a)

	 
	 
	7.02

	315(b).
	 
	6.07

	315(c).
	 
	7.01

	315(d).
	 
	7.01(b)

	 
	 
	7.01(c)

	315(e).
	 
	6.07

	316(a).
	 
	6.06

	 
	 
	8.04

	316(b).
	 
	6.04

	316(c).
	 
	8.01

	317(a).
	 
	6.02

	317(b).
	 
	4.03

	318(a)
	 
	13.08

________________________________________
(1) This Cross-Reference Table does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

i

TABLE OF CONTENTS (2)
Page
		
	ARTICLE I DEFINITIONS
	1

		
	SECTION 1.01
	Definitions of Terms.    1

		
	ARTICLE II ISSUE, DESCRIPTION, TERMS, EXECUTION,  REGISTRATION AND EXCHANGE OF SECURITIES
	4

		
	SECTION 2.01
	Designation and Terms of Securities.    4

		
	SECTION 2.02
	Form of Securities and Trustee’s Certificate.    6

		
	SECTION 2.03
	Denominations: Provisions for Payment.    6

		
	SECTION 2.04
	Execution and Authentications.    7

		
	SECTION 2.05
	Registration of Transfer and Exchange.    8

		
	SECTION 2.06
	Temporary Securities.    8

		
	SECTION 2.07
	Mutilated, Destroyed, Lost or Stolen Securities.    9

		
	SECTION 2.08
	Cancellation.    9

		
	SECTION 2.09
	Benefits of Indenture.    10

		
	SECTION 2.10
	Authenticating Agent.    10

		
	SECTION 2.11
	Global Securities    10

		
	ARTICLE III REDEMPTION OF SECURITIES AND  SINKING FUND PROVISIONS
	11

		
	SECTION 3.01
	Redemption.    11

		
	SECTION 3.02
	Notice of Redemption.    11

		
	SECTION 3.03
	Payment Upon Redemption.    12

		
	SECTION 3.04
	Sinking Fund.    12

		
	SECTION 3.05
	Satisfaction of Sinking Fund Payments with Securities.    13

		
	SECTION 3.06
	Redemption of Securities for Sinking Fund.    13

		
	ARTICLE IV COVENANTS
	13

		
	SECTION 4.01
	Payment of Principal, Premium and Interest.    13

		
	SECTION 4.02
	Maintenance of Office or Agency.    13

		
	SECTION 4.03
	Paying Agents.    13

		
	SECTION 4.04
	Appointment to Fill Vacancy in Office of Trustee.    14

		
	SECTION 4.05
	Compliance with Consolidation Provisions.    14

		
	ARTICLE V SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	15

		
	SECTION 5.01
	Company to Furnish Trustee Names and Addresses of Securityholders.    15

		
	SECTION 5.02
	Preservation of Information; Communications with Securityholders.    15

		
	SECTION 5.03
	Reports by the Company.    15

		
	SECTION 5.04
	Reports by the Trustee.    16

		
	ARTICLE VI REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	16

		
	SECTION 6.01
	Events of Default.    16

		
	SECTION 6.02
	Collection of Indebtedness and Suits for Enforcement by Trustee.    17

		
	SECTION 6.03
	Application of Moneys Collected.    19

		
	SECTION 6.04
	Limitation on Suits.    19

		
	SECTION 6.05
	Rights and Remedies Cumulative; Delay or Omission Not Waiver.    19

		
	SECTION 6.06
	Control by Securityholders.    20

		
	SECTION 6.07
	Undertaking to Pay Costs.    20

		
	ARTICLE VII CONCERNING THE TRUSTEE
	21

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	SECTION 7.01
	Certain Duties and Responsibilities of Trustee.    21

		
	SECTION 7.02
	Certain Rights of Trustee.    22

		
	SECTION 7.03
	Trustee Not Responsible for Recitals or Issuance of Securities.    23

		
	SECTION 7.04
	May Hold Securities.    23

		
	SECTION 7.05
	Moneys Held in Trust.    23

		
	SECTION 7.06
	Compensation and Reimbursement.    23

		
	SECTION 7.07
	Reliance on Officers’ Certificate.    23

		
	SECTION 7.08
	Disqualification; Conflicting Interests.    24

		
	SECTION 7.09
	Corporate Trustee Required; Eligibility.    24

		
	SECTION 7.10
	Resignation and Removal; Appointment of Successor.    24

		
	SECTION 7.11
	Acceptance of Appointment By Successor.    25

		
	SECTION 7.12
	Merger, Conversion, Consolidation or Succession to Business.    26

		
	SECTION 7.13
	Preferential Collection of Claims Against the Company.    26

		
	ARTICLE VIII CONCERNING THE SECURITYHOLDERS
	26

		
	SECTION 8.01
	Evidence of Action by Securityholders.    26

		
	SECTION 8.02
	Proof of Execution by Securityholders.    27

		
	SECTION 8.03
	Who May be Deemed Owners.    27

		
	SECTION 8.04
	Certain Securities Owned by Company Disregarded.    27

		
	SECTION 8.05
	Actions Binding on Future Securityholders.    28

		
	SECTION 8.06
	Purposes for Which Meetings May Be Called.    28

		
	SECTION 8.07
	Call Notice and Place of Meetings.    28

		
	SECTION 8.08
	Persons Entitled To Vote at Meetings.    28

		
	SECTION 8.09
	Quorum; Action.    29

		
	SECTION 8.10
	Determination of Voting Rights; Conduct and Adjournment of Meetings.    29

		
	SECTION 8.11
	Counting Votes and Recording Action of Meetings.    30

		
	ARTICLE IX SUPPLEMENTAL INDENTURES
	30

		
	SECTION 9.01
	Supplemental Indentures Without the Consent of Securityholders.    30

		
	SECTION 9.02
	Supplemental Indentures With Consent of Securityholders.    31

		
	SECTION 9.03
	Effect of Supplemental Indentures.    31

		
	SECTION 9.04
	Securities Affected by Supplemental Indentures.    31

		
	SECTION 9.05
	Execution of Supplemental Indentures.    32

		
	ARTICLE X SUCCESSOR ENTITY
	32

		
	SECTION 10.01
	Company May Consolidate, Etc.    32

		
	SECTION 10.02
	Successor Entity Substituted.    32

		
	SECTION 10.03
	Evidence of Consolidation, Etc. to Trustee.    33

		
	ARTICLE XI SATISFACTION AND DISCHARGE
	33

		
	SECTION 11.01
	Satisfaction and Discharge of Indenture.    33

		
	SECTION 11.02
	Discharge of Obligations.    33

		
	SECTION 11.03
	Deposited Moneys to be Held in Trust.    34

		
	SECTION 11.04
	Payment of Moneys Held by Paying Agents.    34

		
	SECTION 11.05
	Repayment to Company.    34

		
	ARTICLE XII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	34

		
	SECTION 12.01
	No Recourse.    34

		
	ARTICLE XIII MISCELLANEOUS PROVISIONS
	35

		
	SECTION 13.01
	Effect on Successors and Assigns.    35

		
	SECTION 13.02
	Actions by Successor.    35

iii

		
	SECTION 13.03
	Surrender of Company Powers.    35

		
	SECTION 13.04
	Notices.    35

		
	SECTION 13.05
	Governing Law.    35

		
	SECTION 13.06
	Treatment of Securities as Debt.    35

		
	SECTION 13.07
	Compliance Certificates and Opinions.    35

		
	SECTION 13.08
	Payments on Business Days.    36

		
	SECTION 13.09
	Conflict with Trust Indenture Act.    36

		
	SECTION 13.10
	Counterparts.    36

		
	SECTION 13.11
	Separability.    36

		
	SECTION 13.12
	Assignment.    36

		
	ARTICLE XIV SUBORDINATION OF SECURITIES
	37

		
	SECTION 14.01
	Subordination Terms.    37

________________________________________
(2) This Table of Contents does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

iv

INDENTURE, dated as of [   ], by and between Pieris Pharmaceuticals, Inc., a Nevada corporation (the “Company”), and [   ], as trustee (the “Trustee”):
WHEREAS, for its lawful corporate purposes, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of subordinated debt securities (hereinafter referred to as the “Securities”), in an unlimited aggregate principal amount to be issued from time to time in one or more series as in this Indenture provided, as registered Securities without coupons, to be authenticated by the certificate of the Trustee;
WHEREAS, to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution of this Indenture; and
WHEREAS, all things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.
NOW, THEREFORE, in consideration of the premises and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit of the holders of Securities:

ARTICLE I 
 
DEFINITIONS
SECTION 1.01    Definitions of Terms.
The terms defined in this Section (except as in this Indenture otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section and shall include the plural as well as the singular.  All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939, as amended, or that are by reference in such Act defined in the Securities Act of 1933, as amended (except as herein otherwise expressly provided or unless the context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this instrument.
“Authenticating Agent” means an authenticating agent with respect to all or any of the series of Securities appointed with respect to all or any series of the Securities by the Trustee pursuant to Section 2.10.
“Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.
“Board of Directors” means the Board of Directors of the Company or any duly authorized committee of such Board.
“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification.
“Business Day” means, with respect to any series of Securities, any day other than a day on which Federal or State banking institutions in the Borough of Manhattan, the City and State of New York, are authorized or obligated by law, executive order or regulation to close.
“Certificate” means a certificate signed by the principal executive officer, the principal financial officer or the principal accounting officer of the Company. The Certificate need not comply with the provisions of Section 13.07.
“Commission” means the Securities and Exchange Commission.

1

“Company” means the corporation named as the “Company” in the first paragraph of this instrument until a successor corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor corporation.
“Corporate Trust Office” means the office of the Trustee at which, at any particular time, its corporate trust business shall be principally administered, which office at the date hereof is located at [ ], except that whenever a provision herein refers to an office or agency of the Trustee in the Borough of Manhattan, the City and State of New York, such office is located, at the date hereof, at [ ].
“Custodian” means any receiver, trustee, assignee, liquidator, or similar official under any Bankruptcy Law.
“Default” means an event which is, or after notice or lapse of time, or both, would constitute an Event of Default.
“Depositary” means, with respect to Securities of any series, for which the Company shall determine that such Securities will be issued as a Global Security, The Depository Trust Company, New York, New York, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, or other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant to either Section 2.01 or Section 2.11.
“Event of Default” means, with respect to Securities of a particular series, any event specified in Section 6.01, continued for the period of time, if any, therein designated.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Global Security” means, with respect to any series of Securities, a Security executed by the Company and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with this Indenture, which shall be registered in the name of the Depositary or its nominee.
“Governmental Obligations” means securities that are (i) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (ii) obligations  of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America that, in either case, are non-callable at the option of the issuer thereof, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to any such Governmental Obligation or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder of such depositary receipt; provided, however, that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.
“herein,” “hereof” and “hereunder,” and other words of similar import, refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.
“Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into in accordance with the terms hereof.
“Interest Payment Date,” when used with respect to any installment of interest on a Security of a particular series, means the date specified in such Security or in a Board Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment of interest with respect to Securities of that series is due and payable.
“Officers’ Certificate” means a certificate signed by the President or a Vice President and by the Chief Financial Officer, Vice President of Finance, the Treasurer or an Assistant Treasurer or the Controller or an Assistant Controller or the Secretary or an Assistant Secretary of the Company that is delivered to the Trustee in accordance with the terms hereof. Certificate shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.

2

“Opinion of Counsel” means a written opinion of counsel, who may be counsel to the Company (and may include directors or employees of the Company) and which opinion is acceptable to the Trustee which acceptance shall not be unreasonably withheld.
“Outstanding”, when used with reference to Securities of any series, means, subject to the provisions of Section 8.04, as of any particular time, all Securities of that series theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been canceled; (b) Securities or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); provided, however, that if such Securities or portions of such Securities are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in Article III provided, or provision satisfactory to the Trustee shall have been made for giving such notice; and (c) Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant to the terms of Section 2.07.
“Person” means any individual, corporation, limited liability company, partnership, joint-venture, association, joint-stock company, trust, estate, unincorporated organization or government or any agency or political subdivision thereof.
“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 2.07 in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security.
“Responsible Officer,” when used with respect to the Trustee, means any officer of the Trustee, including any vice president, assistant vice president, secretary, assistant secretary, the treasurer, any assistant treasurer, the managing director or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.
“Securities” means the debt Securities authenticated and delivered under this Indenture.
“Security Register” has the meaning specified in Section 2.05.
“Security Registrar” has the meaning specified in Section 2.05.
“Securityholder,” “holder of Securities,” “registered holder,” or other similar term, means the Person or Persons in whose name or names a particular Security shall be registered in the Security Register.
“Subsidiary” means, with respect to any Person, (i) any corporation at least a majority of whose outstanding Voting Stock shall at the time be owned, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii) any general partnership, joint venture or similar entity, at least a majority of whose outstanding partnership or similar interests shall at the time be owned by such Person, or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited partnership of which such Person or any of its Subsidiaries is a general partner.
“Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean such successor Trustee. The term “Trustee” as used with respect to a particular series of the Securities shall mean the trustee with respect to that series.
“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, subject to the provisions of Sections 9.01, 9.02, and 10.01, as in effect at the date of execution of this instrument; provided, however, that in the event the Trust Indenture Act is amended after such date, Trust Indenture Act means, to the extent required by such amendment, the Trust Indenture Act of 1939, as so amended, or any successor statute.
“Voting Stock,” as applied to any Person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such Person having ordinary voting power for the election of a majority of the 

3

directors (or the equivalent) of such Person, other than shares, interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.
ARTICLE II     
 
ISSUE, DESCRIPTION, TERMS, EXECUTION,  
REGISTRATION AND EXCHANGE OF SECURITIES
SECTION 2.01    Designation and Terms of Securities.
		
	(a)
	The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more series up to the aggregate principal amount of Securities of that series from time to time authorized by or pursuant to a Board Resolution of the Company or pursuant to one or more indentures supplemental hereto. Prior to the initial issuance of Securities of a given series, there shall be established in or pursuant to a Board Resolution of the Company, and set forth in an Officers’ Certificate of the Company, or established in one or more indentures supplemental hereto:

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

		
	(2)
	the aggregate principal amount of the Securities of such series initially to be issued and any limit upon the aggregate principal amount of the Securities of that series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of that series);

		
	(3)
	the currency or units based on or relating to currencies in which debt securities of such series are denominated and the currency or units in which principal or interest or both will or may be payable;

		
	(4)
	the date or dates on which the principal of the Securities of the series is payable and the place(s) of payment;

		
	(5)
	the rate or rates at which the Securities of the series shall bear interest or the manner of calculation of such rate or rates, if any;

		
	(6)
	the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest will be payable or the manner of determination of such Interest Payment Dates, the place(s) of payment, and the record date for the determination of holders to whom interest is payable on any such Interest Payment Dates or the method for determining such dates;

		
	(7)
	the right, if any, to extend the interest payment periods or to defer the payment of interest and the duration of such extension;

		
	(8)
	the period or periods within which, the price or prices at which and the terms and conditions upon which, Securities of the series may be redeemed, in whole or in part, at the option of the Company;

		
	(9)
	the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any sinking fund or analogous provisions (including payments made in cash in satisfaction of future sinking fund obligations) or at the option of a holder thereof and the period or 

4

periods within which, the price or prices at which, and the terms and conditions upon which, Securities of the series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;
		
	(10)
	whether or not the debt securities will be secured or unsecured, and the terms of any secured debt;

		
	(11)
	the form of the Securities of the series including the form of the Certificate of Authentication for such series;

		
	(12)
	if other than denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, the denominations in which the Securities of the series shall be issuable;

		
	(13)
	any and all other terms with respect to such series (which terms shall not be inconsistent with the terms of this Indenture, as amended by any supplemental indenture) including any terms which may be required by or advisable under United States laws or regulations or advisable in connection with the marketing of Securities of that series;

		
	(14)
	whether the Securities are issuable as a Global Security and, in such case, the identity of the Depositary for such series;

		
	(15)
	whether the Securities will be convertible into shares of common stock or other securities of the Company and, if so, the terms and conditions upon which such Securities will be so convertible, including the conversion price and the conversion period;

		
	(16)
	if other than the principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.01;

		
	(17)
	any additional or different Events of Default or restrictive covenants provided for with respect to the Securities of the series; and

		
	(18)
	the subordination terms of the Securities of the series.

All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to any such Board Resolution or in any indentures supplemental hereto.
If any of the terms of the series are established by action taken pursuant to a Board Resolution of the Company, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’ Certificate of the Company setting forth the terms of the series.
Securities of any particular series may be issued at various times, with different dates on which the principal or any installment of principal is payable, with different rates of interest, if any, or different methods by which rates of interest may be determined, with different dates on which such interest may be payable and with different redemption dates.
SECTION 2.02    Form of Securities and Trustee’s Certificate.
The Securities of any series and the Trustee’s certificate of authentication to be borne by such Securities shall be substantially of the tenor and purport as set forth in one or more indentures supplemental hereto or as provided in a Board Resolution of the Company and as set forth in an Officers’ Certificate of the Company and may have such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this 

5

Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which Securities of that series may be listed, or to conform to usage.
SECTION 2.03    Denominations: Provisions for Payment.
The Securities shall be issuable as registered Securities and in the denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section 2.01(a)(12). The Securities of a particular series shall bear interest payable on the dates and at the rate specified with respect to that series.  The principal of and the interest on the Securities of any series, as well as any premium thereon in case of redemption thereof prior to maturity, shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, the City and State of New York. Each Security shall be dated the date of its authentication.  Interest on the Securities shall be computed on the basis of a 360-day year composed of twelve 30-day months.
The interest installment on any Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall be paid to the Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment.  In the event that any Security of a particular series or portion thereof is called for redemption and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on such Security will be paid upon presentation and surrender of such Security as provided in Section 3.03.
Any interest on any Security that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (herein called “Defaulted Interest”) shall forthwith cease to be payable to the registered holder on the relevant regular record date by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below:
		
	(1)
	The Company may make payment of any Defaulted Interest on Securities to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid, to each Securityholder at his or her address as it appears in the Security Register, not less than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered on such special record date.

		
	(2)
	The Company may make payment of any Defaulted Interest on any Securities in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, 

6

after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.
Unless otherwise set forth in a Board Resolution of the Company or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.01 hereof, the term “regular record date” as used in this Section with respect to a series of Securities with respect to any Interest Payment Date for such series shall mean either the fifteenth day of the month immediately preceding the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the first day of a month, or the last day of the month immediately preceding the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.
Subject to the foregoing provisions of this Section, each Security of a series delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Security of such series shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Security.
SECTION 2.04    Execution and Authentications.
The Securities shall be signed on behalf of the Company by its President, or one of its Vice Presidents, or its Treasurer, or one of its Assistant Treasurers, or its Secretary, or one of its Assistant Secretaries, under its corporate seal attested by its Secretary or one of its Assistant Secretaries. Signatures may be in the form of a manual or facsimile signature. The Company may use the facsimile signature of any Person who shall have been a President or Vice President thereof, or of any Person who shall have been a Treasurer or Assistant Treasurer thereof, or of any Person who shall have been a Secretary or Assistant Secretary thereof, notwithstanding the fact that at the time the Securities shall be authenticated and delivered or disposed of such Person shall have ceased to be the President or a Vice President, the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary, of the Company. The seal of the Company may be in the form of a facsimile of such seal and may be impressed, affixed, imprinted or otherwise reproduced on the Securities. The Securities may contain such notations, legends or endorsements required by law, stock exchange rule or usage. Each Security shall be dated the date of its authentication.
A Security shall not be valid or obligatory for any purpose and shall not be entitled to any benefit under this Indenture, in each case, until authenticated with a certificate of authentication manually signed by an authorized signatory of the Trustee, or by an Authenticating Agent. Such certificate shall be conclusive evidence, and the only evidence, that the Security so authenticated has been duly authenticated and delivered hereunder and that the Security is entitled to the benefits of this Indenture. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a written order of the Company for the authentication and delivery of such Securities, signed by its President or any Vice President and its Secretary or any Assistant Secretary, and the Trustee in accordance with such written order shall authenticate and deliver such Securities.
In authenticating such Securities and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to 
Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the form and terms thereof have been established in conformity with the provisions of this Indenture.
The Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.
SECTION 2.05    Registration of Transfer and Exchange.
		
	(a)
	Securities of any series may be exchanged upon presentation thereof at the office or agency of the Company designated for such purpose in the Borough of Manhattan, the City and State of New York, for other Securities of such series of authorized denominations, and for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section. In respect of any Securities so surrendered for exchange, the 

7

Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in exchange therefor the Security or Securities of the same series that the Securityholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.
		
	(b)
	The Company shall keep, or cause to be kept, at its office or agency designated for such purpose in the Borough of Manhattan, the City and State of New York, or such other location designated by the Company a register or registers (herein referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall register the Securities and the transfers of Securities as in this Article provided and which at all reasonable times shall be open for inspection by the Trustee. The registrar for the purpose of registering Securities and transfer of Securities as herein provided shall be appointed as authorized by Board Resolution (the “Security Registrar”).

Upon surrender for transfer of any Security at the office or agency of the Company designated for such purpose, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in the name of the transferee or transferees a new Security or Securities of the same series as the Security presented for a like aggregate principal amount.
All Securities presented or surrendered for exchange or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the Security Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar, duly executed by the registered holder or by such holder’s duly authorized attorney in writing.
		
	(c)
	No service charge shall be made for any exchange or registration of transfer of Securities, or issue of new Securities in case of partial redemption of any series, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, other than exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not involving any transfer.

		
	(d)
	The Company shall not be required (i) to issue, exchange or register the transfer of any Securities during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of less than all the Outstanding Securities of the same series and ending at the close of business on the day of such mailing, nor (ii) to register the transfer of or exchange any Securities of any series or portions thereof called for redemption. The provisions of this Section 2.05 are, with respect to any Global Security, subject to Section 2.11 hereof.

SECTION 2.06    Temporary Securities.
Pending the preparation of definitive Securities of any series, the Company may execute, and the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed or typewritten) of any authorized denomination. Such temporary Securities shall be substantially in the form of the definitive Securities in lieu of which they are issued, but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company. Every temporary Security of any series shall be executed by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive Securities of such series. Without unnecessary delay the Company will execute and will furnish definitive Securities of such series and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor (without charge to the holders), at the office or agency of the Company designated for the purpose in the Borough of Manhattan, the City and State of New York, and the Trustee shall authenticate and such office or agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities of such series, unless the Company advises the Trustee to the effect that definitive Securities need not be executed and furnished until further notice from the Company. Until so exchanged, the temporary Securities of such series shall be entitled to the same benefits under this Indenture as definitive Securities of such series authenticated and delivered hereunder.
SECTION 2.07    Mutilated, Destroyed, Lost or Stolen Securities.

8

In case any temporary or definitive Security shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company’s request the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the same series, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in substitution for the Security so destroyed, lost or stolen. In every case the applicant for a substituted Security shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicant’s Security and of the ownership thereof. The Trustee may authenticate any such substituted Security and deliver the same upon the written request or authorization of any officer of the Company. Upon the issuance of any substituted Security, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. In case any Security that has matured or is about to mature shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Security) if the applicant for such payment shall furnish to the Company and the Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction, loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the ownership thereof.
Every replacement Security issued pursuant to the provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of the same series duly issued hereunder. All Securities shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.
SECTION 2.08    Cancellation.
All Securities surrendered for the purpose of payment, redemption, exchange or registration of transfer shall, if surrendered to the Company or any paying agent, be delivered to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall be issued in lieu thereof except as expressly required or permitted by any of the provisions of this Indenture. On request of the Company at the time of such surrender, the Trustee shall deliver to the Company canceled Securities held by the Trustee. In the absence of such request the Trustee may dispose of canceled Securities in accordance with its standard procedures and deliver a certificate of disposition to the Company. If the Company shall otherwise acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation.
SECTION 2.09    Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or implied, shall give or be construed to give to any Person, other than the parties hereto and the holders of the Securities (and, with respect to the provisions of Article XIV, the holders of Senior Indebtedness, as defined in any supplement to this Indenture pursuant to Article XIV) any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the holders of the Securities (and, with respect to the provisions of Article XIV, the holders of Senior Indebtedness).
SECTION 2.10    Authenticating Agent.
So long as any of the Securities of any series remain Outstanding there may be an Authenticating Agent for any or all such series of Securities which the Trustee shall have the right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon exchange, transfer or partial redemption thereof, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. All references in this Indenture to the authentication of Securities by the Trustee shall be deemed to include authentication by an Authenticating Agent for such series. Each Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction 

9

under which it is organized or in which it is doing business to conduct a trust business, and that is otherwise authorized under such laws to conduct such business and is subject to supervision or examination by Federal or State authorities. If at any time any Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately.
Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time (and upon request by the Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant hereto.
SECTION 2.11    Global Securities
		
	(a)
	If the Company shall establish pursuant to Section 2.01 that some or all of the Securities of a particular series are to be issued as a Global Security, then the Company shall execute and the Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security that (i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, the Outstanding Securities of such series which are to be issued as a Global Security, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv) shall bear a legend substantially to the following effect: “Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred, in whole but not in part, only to another nominee of the Depositary or to a successor Depositary or to a nominee of such successor Depositary.”

		
	(b)
	Notwithstanding the provisions of Section 2.05, the Global Security of a series may be transferred, in whole but not in part and in the manner provided in Section 2.05, only to another nominee of the Depositary for such series, or to a successor Depositary for such series selected or approved by the Company or to a nominee of such successor Depositary.

		
	(c)
	If at any time the Depositary for a series of the Securities notifies the Company that it is unwilling or unable to continue as Depositary for such series or if at any time the Depositary for such series shall no longer be registered or in good standing under the Exchange Act, or other applicable statute or regulation, and a successor Depositary for such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such condition, as the case may be, this Section 2.11 shall no longer be applicable to the Securities of such series and the Company will execute, and subject to Section 2.05, the Trustee will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security. In addition, the Company may at any time determine that the Securities of any series shall no longer be represented by a Global Security and that the provisions of this Section 2.11 shall no longer apply to the Securities of such series. In such event the Company will execute and subject to Section 2.05, the Trustee, upon receipt of an Officers’ Certificate evidencing such determination by the Company, will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security. Upon the exchange of the Global Security for such Securities in definitive registered form without coupons, in authorized denominations, the Global Security shall be canceled by the Trustee. Such Securities in definitive registered form issued in exchange for the Global Security pursuant to this Section 2.11(c) shall be registered in such names and in such authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct 

10

the Trustee. The Trustee shall deliver such Securities to the Depositary for delivery to the Persons in whose names such Securities are so registered.
ARTICLE III     
 
REDEMPTION OF SECURITIES AND  
SINKING FUND PROVISIONS
SECTION 3.01    Redemption.
The Company may redeem the Securities of any series issued hereunder on and after the dates and in accordance with the terms established for such series pursuant to Section 2.01 hereof.
SECTION 3.02    Notice of Redemption.
		
	(a)
	In case the Company shall desire to exercise such right to redeem all or, as the case may be, a portion of the Securities of any series in accordance with the right reserved so to do, the Company shall, or shall cause the Trustee to, give notice of such redemption to holders of the Securities of such series to be redeemed by mailing, first class postage prepaid, a notice of such redemption not less than 30 days and not more than 90 days before the date fixed for redemption of that series to such holders at their last addresses as they shall appear upon the Security Register unless a shorter period is specified in the Securities to be redeemed. Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any Security of any series designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Securities of such series or any other series. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers’ Certificate evidencing compliance with any such restriction.

Each such notice of redemption shall specify the date fixed for redemption and the redemption price at which Securities of that series are to be redeemed, and shall state that payment of the redemption price of such Securities to be redeemed will be made at the office or agency of the Company in the Borough of Manhattan, the City and State of New York, upon presentation and surrender of such Securities, that interest accrued to the date fixed for redemption will be paid as specified in said notice, that from and after said date interest will cease to accrue and that the redemption is for a sinking fund, if such is the case. If less than all the Securities of a series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in whole or in part shall specify the particular Securities to be so redeemed. In case any Security is to be redeemed in part only, the notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state that on and after the redemption date, upon surrender of such Security, a new Security or Securities of such series in principal amount equal to the unredeemed portion thereof will be issued.
		
	(b)
	If less than all the Securities of a series are to be redeemed, the Company shall give the Trustee at least 30 days’ notice in advance of the date fixed for redemption as to the aggregate principal amount of Securities of the series to be redeemed, and thereupon the Trustee shall select, by lot or in such other manner as it shall deem appropriate and fair in its discretion and that may provide for the selection of a portion or portions (equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount of such Securities of a denomination larger than $1,000, the Securities to be redeemed and shall thereafter promptly notify the Company in writing of the numbers of the Securities to be redeemed, in whole or in part. The Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by its President or any Vice President, instruct the Trustee or any paying agent to call all or any part of the Securities of a particular series for redemption and to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as the Trustee or such paying agent may deem 

11

advisable. In any case in which notice of redemption is to be given by the Trustee or any such paying agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as the case may be, such Security Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or such paying agent to give any notice by mail that may be required under the provisions of this Section.
SECTION 3.03    Payment Upon Redemption.
		
	(a)
	If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities of the series to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption and interest on such Securities or portions of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued interest with respect to any such Security or portion thereof. On presentation and surrender of such Securities on or after the date fixed for redemption at the place of payment specified in the notice, said Securities shall be paid and redeemed at the applicable redemption price for such series, together with interest accrued thereon to the date fixed for redemption (but if the date fixed for redemption is an interest payment date, the interest installment payable on such date shall be payable to the registered holder at the close of business on the applicable record date pursuant to Section 2.03).

		
	(b)
	Upon presentation of any Security of such series that is to be redeemed in part only, the Company shall execute and the Trustee shall authenticate and the office or agency where the Security is presented shall deliver to the holder thereof, at the expense of the Company, a new Security of the same series of authorized denominations in principal amount equal to the unredeemed portion of the Security so presented.

SECTION 3.04    Sinking Fund.
The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.01 for Securities of such series.
The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 3.05. Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series.
SECTION 3.05    Satisfaction of Sinking Fund Payments with Securities.
The Company (i) may deliver Outstanding Securities of a series (other than any Securities previously called for redemption) and (ii) may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant to the terms of such Securities as provided for by the terms of such series, provided that such Securities have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the redemption price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.
SECTION 3.06    Redemption of Securities for Sinking Fund.
Not less than 45 days prior to each sinking fund payment date for any series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment for that 

12

series pursuant to the terms of the series, the portion thereof, if any, that is to be satisfied by delivering and crediting Securities of that series pursuant to Section 3.05 and the basis for such credit and will, together with such Officers’ Certificate, deliver to the Trustee any Securities to be so delivered. Not less than 30 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.02 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.02. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Section 3.03.
ARTICLE IV     
 
COVENANTS
SECTION 4.01    Payment of Principal, Premium and Interest.
The Company will duly and punctually pay or cause to be paid the principal of (and premium, if any) and interest on the Securities of that series at the time and place and in the manner provided herein and established with respect to such Securities.
SECTION 4.02    Maintenance of Office or Agency.
So long as any series of the Securities remain Outstanding, the Company agrees to maintain an office or agency in the Borough of Manhattan, the City and State of New York, with respect to each such series and at such other location or locations as may be designated as provided in this Section 4.02, where (i) Securities of that series may be presented or surrendered for payment, (ii) Securities of that series may be presented as herein above authorized for registration of transfer and exchange, and (iii) notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be given or served, such designation to continue with respect to such office or agency until the Company shall, by written notice signed by its President or a Vice President and delivered to the trustee, designate some other office or agency for such purposes or any of them. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, notices and demands.
SECTION 4.03    Paying Agents.
		
	(a)
	If the Company shall appoint one or more paying agents for all or any series of the Securities, other than the Trustee, the Company will cause each such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section:

		
	(1)
	that it will hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the Securities of that series (whether such sums have been paid to it by the Company or by any other obligor of such Securities) in trust for the benefit of the Persons entitled thereto;

		
	(2)
	that it will give the Trustee notice of any failure by the Company (or by any other obligor of such Securities) to make any payment of the principal of (and premium, if any) or interest on the Securities of that series when the same shall be due and payable;

		
	(3)
	that it will, at any time during the continuance of any failure referred to in the preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent; and

		
	(4)
	that it will perform all other duties of paying agent as set forth in this Indenture.

13

		
	(b)
	If the Company shall act as its own paying agent with respect to any series of the Securities, it will on or before each due date of the principal of (and premium, if any) or interest on Securities of that series, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient with monies held by all other paying agents to pay such principal (and premium, if any) or interest so becoming due on Securities of that series until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or any failure (by it or any other obligor on such Securities) to take such action. Whenever the Company shall have one or more paying agents for any series of Securities, it will, prior to each due date of the principal of (and premium, if any) or interest on any Securities of that series, deposit with the paying agent a sum sufficient to pay the principal (an premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of this action or failure so to act.

		
	(c)
	Notwithstanding anything in this Section to the contrary, (i) the agreement to hold sums in trust as provided in this Section is subject to the provisions of Section 11.05, and (ii) the Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the same terms and conditions as those upon which such sums were held by the Company or such paying agent; and, upon such payment by any paying agent to the Trustee, such paying agent shall be released from all further liability with respect to such money.

SECTION 4.04    Appointment to Fill Vacancy in Office of Trustee.
The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee hereunder.
SECTION 4.05    Compliance with Consolidation Provisions.
The Company will not, while any of the Securities remain Outstanding, consolidate with or merge into any other Person, in either case where the Company is not the survivor of such transaction, or sell or convey all or substantially all of its property to any other company unless the provisions of Article X hereof are complied with.
ARTICLE V     
 
SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
SECTION 5.01    Company to Furnish Trustee Names and Addresses of Securityholders.
If the Company is not the Security Register, the Company will furnish or use reasonable efforts to cause to be furnished to the Trustee (a) on each regular record date (as defined in Section 2.03) a list, in such form as the Trustee may reasonably require, of the names and addresses of the holders of each series of Securities as of such regular record date, provided that the Company shall not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect from the most recent list furnished to the Trustee by the Company and (b) at such other times as the Trustee may request in writing within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; provided, however, that, in either case, no such list need be furnished for any series for which the Trustee shall be the Security Registrar.
SECTION 5.02    Preservation of Information; Communications with Securityholders.
		
	(a)
	The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Securities contained in the most recent list furnished to it as 

14

provided in Section 5.01 and as to the names and addresses of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity) and shall otherwise comply with Section 312(a) of the Trust Indenture Act.
		
	(b)
	The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt of a new list so furnished.

		
	(c)
	Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with respect to their rights under this Indenture or under the Securities.

SECTION 5.03    Reports by the Company.
		
	(a)
	The Company covenants and agrees to file with the Trustee, within 15 days after the Company is required to file the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) that the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents or reports pursuant to either of such sections, then to file with the Trustee and the Commission, in accordance with the rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports that may be required pursuant to Section 13 of the Exchange Act, in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations; provided, however, the Company shall not be required to deliver to the Trustee any materials for which the Company has sought and received confidential treatment by the Commission. The Company also shall comply with the other provisions of Section 314(a) of the Trust Indenture Act.

		
	(b)
	The Company covenants and agrees to file with the Trustee and the Commission, in accordance with the rules and regulations prescribed from to time by the Commission, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants provided for in this Indenture as may be required from time to time by such rules and regulations.

		
	(c)
	The Company covenants and agrees to transmit by mail, first class postage prepaid, or reputable over-night delivery service that provides for evidence of receipt, to the Securityholders, as their names and addresses appear upon the Security Register, within 30 days after the filing thereof with the Trustee, such summaries of any information, documents and reports required to be filed by the Company pursuant to subsections (a) and (b) of this Section as may be required by rules and regulations prescribed from time to time by the Commission.

SECTION 5.04    Reports by the Trustee.
		
	(a)
	The Trustee shall transmit to holders as provided in Section 313 of the Trust Indenture Act such reports concerning the Trustee and its actions under this Indenture as may be required by Section 313 of the Trust Indenture Act at the times and in the manner provided by the Trust Indenture Act.

		
	(b)
	A copy of each such report shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company, with each stock exchange upon which any Securities are listed (if so listed) and, if required by Section 313 of the Trust Indenture Act, also with the Commission. The Company agrees to notify the Trustee when any Securities become listed on any stock exchange.

15

ARTICLE VI     
 
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
SECTION 6.01    Events of Default.
		
	(a)
	Whenever used herein with respect to Securities of a particular series, “Event of Default” means any one or more of the following events that has occurred and is continuing:

		
	(1)
	the Company defaults in the payment of any installment of interest upon any of the Securities of that series, as and when the same shall become due and payable, and continuance of such default for a period of 90 days; provided, however, that a valid extension of an interest payment period by the Company in accordance with the terms of any 

16

indenture supplemental hereto shall not constitute a default in the payment of interest for this purpose;
		
	(2)
	the Company defaults in the payment of the principal of (or premium, if any, on) any of the Securities of that series as and when the same shall become due and payable whether at maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking or analogous fund established with respect to that series; provided, however, that a valid extension of the maturity of such Securities in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal or premium, if any;

		
	(3)
	the Company fails to observe or perform any other of its covenants or agreements with respect to that series contained in this Indenture or otherwise established with respect to that series of Securities pursuant to Section 2.01 hereof (other than a covenant or agreement that has been expressly included in this Indenture solely for the benefit of one or more series of Securities other than such series) for a period of 90 days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice is a “Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered or certified mail, or to the Company and the Trustee by the holders of not less than a majority in principal amount of the Securities of that series at the time Outstanding;

		
	(4)
	the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property or (iv) makes a general assignment for the benefit of its creditors; or

		
	(5)
	a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company for all or substantially all of its property, or (iii) orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 90 consecutive days.

		
	(b)
	In each and every such case, unless the principal of all the Securities of that series shall have already become due and payable, either the Trustee or the holders of not less than a majority in aggregate principal amount of the Securities of that series then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such Securityholders), may declare the principal (or, if any Securities of that series are discount securities, that portion of the principal amount as may be specified in the terms of that series pursuant to Section 2.01(a)(16)) of (and premium, if any, on) and accrued and unpaid interest, if any, on all the Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable. Notwithstanding the foregoing, the payment of such principal (or, if any Securities of that series are discount securities, that portion of the principal amount as may be specified in the terms of that series pursuant to Section 2.01(a)(16)) of (and premium, if any, on) and accrued and unpaid interest, if any, on the Securities of such series shall remain subordinated to the extent provided in Article XIV.

		
	(c)
	At any time after the principal of the Securities of that series shall have been so declared due and payable, and before a judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the holders of a majority in aggregate principal amount of the Securities of that series then Outstanding hereunder (or, by action at a meeting of holders of the Securities of such series in accordance with Section 8.09, the holders of a majority in aggregate principal amount of the Securities of such series then Outstanding represented at such meeting), by written notice to the Company and the Trustee, may rescind and annul such declaration and its 

17

consequences if: (i) the Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of that series and the principal of (and premium, if any, on) any and all Securities of that series that shall have become due otherwise than by acceleration and (ii) any and all Events of Default under this Indenture with respect to such series, other than the nonpayment of principal of (and premium, if any, on) and accrued and unpaid interest, if any, on Securities of that series that shall have become due solely because of such acceleration, shall have been remedied, cured or waived as provided in Section 6.06.  No such rescission and annulment shall extend to or shall affect any subsequent default or impair any right consequent thereon.
		
	(d)
	In case the Trustee shall have proceeded to enforce any right with respect to Securities of that series under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case, subject to any determination in such proceedings, the Company, and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall continue as though no such proceedings had been taken.

SECTION 6.02    Collection of Indebtedness and Suits for Enforcement by Trustee.
		
	(a)
	The Company covenants that (1) in case it shall default in the payment of any installment of interest on any of the Securities of a series, or any payment required by any sinking or analogous fund established with respect to that series as and when the same shall have become due and payable, and such default shall have continued for a period of 90 Business Days, or (2) in case it shall default in the payment of the principal of (or premium, if any, on) any of the Securities of a series when the same shall have become due and payable, whether upon maturity of the Securities of a series or upon redemption or upon declaration or otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities of that series, the whole amount that then shall have been become due and payable on all such Securities for principal (and premium, if any) or interest, or both, as the case may be, with interest upon the overdue principal (and premium, if any) and (to the extent that payment of such interest is enforceable under applicable law) upon overdue installments of interest at the rate per annum expressed in the Securities of that series; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to the Trustee under Section 7.06.

		
	(b)
	If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or other obligor upon the Securities of that series and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or other obligor upon the Securities of that series, wherever situated.

		
	(c)
	In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial proceedings affected the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings and take any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the Trustee and of the holders of Securities of such series allowed for the entire amount due and payable by the Company under this Indenture at the date of institution of such proceedings and for any additional amount that may become due and payable by the Company after such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and to 

18

distribute the same after the deduction of the amount payable to the Trustee under Section 7.06; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Securities of such series to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Securityholders, to pay to the Trustee any amount due it under Section 7.06.
		
	(d)
	All rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to Securities of that series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of any amounts due under Section 7.06, be for the ratable benefit of the holders of the Securities of such series.

In case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.
Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities of that series or the rights of any holder thereof or to authorize the Trustee to vote in respect of the claim of any Securityholder in any such proceeding.
SECTION 6.03    Application of Moneys Collected.
Any moneys collected by the Trustee pursuant to this Article with respect to a particular series of Securities shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal (or premium, if any) or interest, upon presentation of the Securities of that series, and notation thereon the payment, if only partially paid, and upon surrender thereof if fully paid:
		
	FIRST:
	To the payment of costs and expenses of collection and of all amounts payable to the Trustee under Section 7.06;

		
	SECOND:
	To the payment of all Senior Indebtedness of the Company if and to the extent required by Article XIV; and

		
	THIRD:
	To the payment of the amounts then due and unpaid upon Securities of such series for principal (and premium, if any) and interest, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal (and premium, if any) and interest, respectively.

SECTION 6.04    Limitation on Suits.
No holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless (i) such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof with respect to the Securities of such series specifying such Event of Default, as hereinbefore provided; (ii) the holders of not less than a majority in aggregate principal amount of the Securities of such series then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as trustee hereunder; (iii) such holder or holders shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby; and (iv) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity, shall have failed to institute any such action, suit or proceeding and (v) during such 60 day period, the holders of a majority in principal amount of the Securities of that series (or such amount as shall have acted at a 

19

meeting of the holders of Securities of such series pursuant to the provisions of this Indenture) do not give the Trustee a direction inconsistent with the request; provided, however, that no one or more of such holders may use this Indenture to prejudice the rights of another holder or to obtain preference or priority over another holder.
Notwithstanding anything contained herein to the contrary, any other provisions of this Indenture, the right of any holder of any Security to receive payment of the principal of (and premium, if any) and interest on such Security, as therein provided, on or after the respective due dates expressed in such Security (or in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Security hereunder it is expressly understood, intended and covenanted by the taker and holder of every Security of such series with every other such taker and holder and the Trustee, that no one or more holders of Securities of such series shall have any right in any manner whatsoever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such Securities, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Securities of such series. For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.
SECTION 6.05    Rights and Remedies Cumulative; Delay or Omission Not Waiver.
		
	(a)
	Except as otherwise provided in Section 2.07, all powers and remedies given by this Article to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to such Securities.

		
	(b)
	No delay or omission of the Trustee or of any holder of any of the Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or on acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article or by law to the Trustee or the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.

SECTION 6.06    Control by Securityholders.
The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding, determined in accordance with Section 8.01, shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to such series; provided, however, that such direction shall not be in conflict with any rule of law or with this Indenture or be unduly prejudicial to the rights of holders of Securities of any other series at the time Outstanding determined in accordance with Section 8.01. Subject to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer or Officers of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability.
The holders either (a) through the written consent of not less than a majority in aggregate principal amount of the Securities of any series at the time Outstanding or (b) by action at a meeting of holders of the Securities of such series in accordance with Section 8.09, by the holders of a majority in aggregate principal amount of the Securities of such series then Outstanding represented at such meeting, may on behalf of the holders of all of the Securities of such series waive any past default in the performance of any of the covenants contained herein or established pursuant to Section 2.01 with respect to such series and its consequences, except a default in the payment of the principal of, or premium, if any, or interest on, any of the Securities of that series as and when the same shall become due by the terms of such Securities otherwise than by acceleration (unless such default has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been deposited with the Trustee (in accordance with Section 6.01(c)) and except in respect a provision hereof which, under Section 9.02, cannot be modified or amended without the consent of the holders of each Outstanding Security affected; provided however that this Section shall not limit the right of holders of Securities of a series to rescind and annul any acceleration as set forth in Section 6.01. Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture and the 

20

Company, the Trustee and the holders of the Securities of such series shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. The provisions which otherwise would be automatically deemed to be contained in this Indenture pursuant to Section 316(a)(1) of the Trust Indenture Act are hereby expressly excluded from this Indenture, except to the extent such provisions are expressly included herein.
SECTION 6.07    Undertaking to Pay Costs.
All parties to this Indenture agree, and each holder of any Securities by such holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding more than 10% in aggregate principal amount of the Outstanding Securities of any series, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security of such series, on or after the respective due dates expressed in such Security or established pursuant to this Indenture.
ARTICLE VII     
 
CONCERNING THE TRUSTEE
SECTION 7.01    Certain Duties and Responsibilities of Trustee.
		
	(a)
	The Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing of all Events of Default with respect to the Securities of that series that may have occurred, shall undertake to perform with respect to the Securities of such series such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants shall be read into this Indenture against the Trustee. In case an Event of Default with respect to the Securities of a series has occurred (that has not been cured or waived), the Trustee shall exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

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

		
	(1)
	prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing or waiving of all such Events of Default with respect to that series that may have occurred:

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

		
	(ii)
	in the absence of bad faith on the part of the Trustee, the Trustee may with respect to the Securities of such series conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this 

21

Indenture; but in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirement of this Indenture;
		
	(2)
	the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee, was negligent in ascertaining the pertinent facts;

		
	(3)
	the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture with respect to the Securities of that series; and

		
	(4)
	None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it.

SECTION 7.02    Certain Rights of Trustee.
Except as otherwise provided in Section 7.01:
		
	(a)
	The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

		
	(b)
	Any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company, by the President or any Vice President and by the Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer thereof (unless other evidence in respect thereof is specifically prescribed herein);

		
	(c)
	The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted hereunder in good faith and in reliance thereon;

		
	(d)
	The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders, pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities that may be incurred therein or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect to a series of the Securities (that has not been cured or waived) to exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and to use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs;

22

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

		
	(f)
	The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security, or other papers or documents, unless requested in writing so to do by the holders of not less than a majority in principal amount of the Outstanding Securities of the particular series affected thereby (determined as provided in Section 8.04); provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such costs, expenses or liabilities as a condition to so proceeding. The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand; and

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

SECTION 7.03    Trustee Not Responsible for Recitals or Issuance of Securities.
		
	(a)
	The recitals contained herein and in the Securities shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same.

		
	(b)
	The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities.

		
	(c)
	The Trustee shall not be accountable for the use or application by the Company of any of the Securities or of the proceeds of such Securities, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture or established pursuant to Section 2.01, or for the use or application of any moneys received by any paying agent other than the Trustee.

SECTION 7.04    May Hold Securities.
The Trustee or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar.
SECTION 7.05    Moneys Held in Trust.
Subject to the provisions of Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any moneys received by it hereunder except such as it may agree with the Company to pay thereon.
SECTION 7.06    Compensation and Reimbursement.
		
	(a)
	The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled to, such reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust), as the Company, and the Trustee may from time to time agree in writing, for all services rendered by it in the execution of the trusts hereby created and in the exercise and performance of any of the powers and duties hereunder of the Trustee, and, except as otherwise expressly provided herein, the Company will pay or reimburse the Trustee upon its request 

23

for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its negligence or bad faith. The Company also covenants to indemnify the Trustee (and its officers, agents, directors and employees) for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on the part of the Trustee and arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim of liability in the premises.
		
	(b)
	The obligations of the Company under this Section to compensate and indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior to that of the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Securities.

SECTION 7.07    Reliance on Officers’ Certificate.
Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate delivered to the Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture upon the faith thereof.
SECTION 7.08    Disqualification; Conflicting Interests.
If the Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.
SECTION 7.09    Corporate Trustee Required; Eligibility.
There shall at all times be a Trustee with respect to the Securities issued hereunder which shall at all times be a corporation organized and doing business under the laws of the United States of America or any State or Territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the Commission, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least 50 million U.S. dollars ($50,000,000), and subject to supervision or examination by Federal, State, Territorial, or District of Columbia authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  The Company may not, nor may any Person directly or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee.  In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 7.10.
SECTION 7.10    Resignation and Removal; Appointment of Successor.
		
	(a)
	The Trustee or any successor hereafter appointed, may at any time resign with respect to the Securities of one or more series by giving written notice thereof to the Company and by transmitting notice of resignation by mail, first class postage prepaid, to the Securityholders of such series, as their names and addresses appear upon the Security Register.  Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee with respect to Securities of such series by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which 

24

instrument shall be delivered to the resigning Trustee and one copy to the successor trustee.  If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee with respect to Securities of such series, or any Securityholder of that series who has been a bona fide holder of a Security or Securities for at least six months may on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee.  Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.
		
	(b)
	In case at any time any one of the following shall occur:

		
	(1)
	the Trustee shall fail to comply with the provisions of Section 7.08 after written request therefor by the Company or by any Securityholder who has been a bona fide holder of a Security or Securities for at least six months; or

		
	(2)
	the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09 and shall fail to resign after written request therefor by the Company or by any such Securityholder; or

		
	(3)
	the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then, in any such case, the Company may remove the Trustee with respect to all Securities and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, unless the Trustee’s duty to resign is stayed as provided herein, any Securityholder who has been a bona fide holder of a Security or Securities for at least six months may, on behalf of that holder and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

		
	(c)
	The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding may at any time remove the Trustee with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such series with the consent of the Company.

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

		
	(e)
	Any successor trustee appointed pursuant to this Section may be appointed with respect to the Securities of one or more series or all of such series, and at any time there shall be only one Trustee with respect to the Securities of any particular series.

SECTION 7.11    Acceptance of Appointment By Successor.
		
	(a)
	In case of the appointment hereunder of a successor trustee with respect to all Securities, every such successor trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal 

25

of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor trustee all the rights, powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor trustee all property and money held by such retiring Trustee hereunder.
		
	(b)
	In case of the appointment hereunder of a successor trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee relates, (2) shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust, that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee and that no Trustee shall be responsible for any act or failure to act on the part of any other Trustee hereunder; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein, such retiring Trustee shall with respect to the Securities of that or those series to which the appointment of such successor trustee relates have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations vested in the Trustee under this Indenture, and each such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee relates; but, on request of the Company or any successor trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor trustee, to the extent contemplated by such supplemental indenture, the property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor trustee relates.

		
	(c)
	Upon request of any such successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be.

		
	(d)
	No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified and eligible under this Article.

		
	(e)
	Upon acceptance of appointment by a successor trustee as provided in this Section, the Company shall transmit notice of the succession of such trustee hereunder by mail, first class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security Register. If the Company fails to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be transmitted at the expense of the Company.

SECTION 7.12    Merger, Conversion, Consolidation or Succession to Business.

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Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.
SECTION 7.13    Preferential Collection of Claims Against the Company.
The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.
ARTICLE VIII     
 
CONCERNING THE SECURITYHOLDERS
SECTION 8.01    Evidence of Action by Securityholders.
Whenever in this Indenture it is provided that the holders of a majority or specified percentage in aggregate principal amount of the Securities of a particular series may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action the holders of such majority or specified percentage of that series have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders of Securities of that series in Person or by agent or proxy appointed in writing.
If the Company shall solicit from the Securityholders of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option, as evidenced by an Officers’ Certificate, fix in advance a record date for such series for the determination of Securityholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after the record date, but only the Securityholders of record at the close of business on the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of Outstanding Securities of that series have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Outstanding Securities of that series shall be computed as of the record date; provided, however, that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date.
SECTION 8.02    Proof of Execution by Securityholders.
Subject to the provisions of Section 7.01, proof of the execution of any instrument by a Securityholder (such proof will not require notarization) or his agent or proxy and proof of the holding by any Person of any of the Securities shall be sufficient if made in the following manner:
		
	(a)
	The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the Trustee.

		
	(b)
	The ownership of Securities shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar thereof.

		
	(c)
	The Trustee may require such additional proof of any matter referred to in this Section as it shall deem necessary.

27

SECTION 8.03    Who May be Deemed Owners.
Prior to the due presentment for registration of transfer of any Security, the Company, the Trustee, any paying agent and any Security Registrar may deem and treat the Person in whose name such Security shall be registered upon the books of the Company as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Security Registrar) for the purpose of receiving payment of or on account of the principal of, premium, if any, and (subject to Section 2.03) interest on such Security and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary.
SECTION 8.04    Certain Securities Owned by Company Disregarded.
In determining whether the holders of the requisite aggregate principal amount of Securities of a particular series have concurred in any direction, consent of waiver under this Indenture, the Securities of that series that are owned by the Company or any other obligor on the Securities of that series or by any Person directly or indirectly controlling or controlled by or under common control with the Company or any other obligor on the Securities of that series shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Securities of such series that the Trustee actually knows are so owned shall be so disregarded. The Securities so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor. In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.
SECTION 8.05    Actions Binding on Future Securityholders.
At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action, any holder of a Security of that series that is shown by the evidence to be included in the Securities the holders of which have consented to such action may, by filing written notice with the Trustee, and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such Security. Except as aforesaid any such action taken by the holder of any Security shall be conclusive and binding upon such holder and upon all future holders and owners of such Security, and of any Security issued in exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto is made upon such Security. Any action taken by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all the Securities of that series.
SECTION 8.06    Purposes for Which Meetings May Be Called.
A meeting of holders of any series of Securities may be called at any time and from time to time pursuant to this Article to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be made, given or taken by holders of such series of Securities.
Notwithstanding anything contained in this Article VIII, the Trustee may, during the pendency of a Default or an Event of Default, call a meeting of holders of any series of Securities in accordance with its standard practices.
SECTION 8.07    Call Notice and Place of Meetings.
		
	(a)
	The Trustee may at any time call a meeting of holders of any series of Securities for any purpose specified in Section 8.06 hereof, to be held at such time and at such place in The City of New York. Notice of every meeting of holders of any series of Securities, setting forth the time and the place of such meeting, in general terms the action proposed to be taken at such meeting and the percentage of the principal amount of the Outstanding Securities of such series which shall constitute a quorum at such meeting, shall be given, in the manner provided in Section 13.04 hereof, not less than 21 nor 

28

more than 180 days prior to the date fixed for the meeting to holders of Outstanding Securities of such series.
		
	(b)
	In case at any time the Company, pursuant to a Board Resolution, or the holders of at least 10% in principal amount of the Outstanding Securities of any series shall have requested the Trustee to call a meeting of the holders of Securities of such series for any purpose specified in Section 8.06 hereof, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have made the first publication of the notice of such meeting within 21 days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as provided herein, then the Company or the holders of Securities of such series in the amount specified, as the case may be, may determine the time and the place in The City of New York for such meeting and may call such meeting for such purposes by giving notice thereof as provided in paragraph (a) of this Section.

SECTION 8.08    Persons Entitled To Vote at Meetings.
To be entitled to vote at any meeting of holders of Securities of a given series, a Person shall be (a) a holder of one or more Outstanding Securities of such series or (b) a Person appointed by an instrument in writing as proxy for a holder or holders of one or more Outstanding Securities of such series by such holder or holders. The only Persons who shall be entitled to be present or to speak at any meeting of holders shall be the Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel and any representatives of the Company and its counsel.
SECTION 8.09    Quorum; Action.
The Persons entitled to vote a majority in aggregate principal amount of the Outstanding Securities of a given series shall constitute a quorum with respect to a meeting of holders of Outstanding Securities of such series. In the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the request of holders of Securities of such series, be dissolved. In any other case, the meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 8.07(a) hereof, except that such notice need be given only once and not less than five days prior to the date on which the meeting is scheduled to be reconvened.
At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid, any resolution and all matters (except as limited by the proviso to the first paragraph of Section 9.02 hereof) shall be effectively passed and decided if passed or decided by the Persons entitled to vote not less than a majority in aggregate principal amount of Outstanding Securities of a series represented and voting at such meeting with respect to a meeting of holders of Outstanding Securities of such series.
Any resolution passed or decisions taken at any meeting of holders of Securities duly held in accordance with this Section shall be binding on all the holders of Securities of such series, whether or not present or represented at the meeting.
SECTION 8.10    Determination of Voting Rights; Conduct and Adjournment of Meetings.
		
	(a)
	Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of holders of Securities in regard to proof of the holding of Securities and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate.

29

		
	(b)
	The Trustee shall, by an instrument in writing, appoint a temporary chairman (which may be the Trustee) of the meeting, unless the meeting shall have been called by the Company or by holders of Securities of a given series as provided in Section 8.07(b) hereof, in which case the Company or the holders of Securities of such series calling the meeting, as the case may be, shall in like manner appoint a temporary chairman.  A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in principal amount of the Outstanding Securities of such series represented at the meeting.

		
	(c)
	At any meeting, each holder of a Security of the series in respect of which such meeting is being held or proxy shall be entitled to one vote for each $1,000 principal amount of Securities of such series held or represented by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Security of such series challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding.  The chairman of the meeting shall have no right to vote, except as a holder of a Security of such series or proxy.

		
	(d)
	Any meeting of holders of Securities duly called pursuant to Section 8.07 hereof at which a quorum is present may be adjourned from time to time by Persons entitled to vote a majority in principal amount of the Outstanding Securities of the series in respect of which such meeting is being held represented at the meeting, and the meeting may be held as so adjourned without further notice.

SECTION 8.11    Counting Votes and Recording Action of Meetings.
The vote upon any resolution submitted to any meeting of holders of Securities of a given series shall be by written ballots on which shall be subscribed the signatures of the holders of Securities of such series or of their representatives by proxy and the principal amounts and serial numbers of the Outstanding Securities of such series held or represented by them.  The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting.  A record, at least in duplicate, of the proceedings of each meeting of holders of Securities of such series shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was given as provided in Section 8.07 hereof and, if applicable, Section 8.09 hereof. Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one such copy shall be delivered to the Company and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.  Any record so signed and verified shall be conclusive evidence of the matters therein stated.
ARTICLE IX     
 
SUPPLEMENTAL INDENTURES
SECTION 9.01    Supplemental Indentures Without the Consent of Securityholders.
In addition to any supplemental indenture otherwise authorized by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect), without the consent of the Securityholders, for one or more of the following purposes:
		
	(a)
	cure any ambiguity, correct or supplement any provision herein which may be inconsistent with any other provision herein or which is otherwise defective, or make any other provisions with respect to matters or questions arising under this Indenture which the Company and the Trustee may deem necessary or desirable and which shall not be inconsistent with the provisions of this Indenture;

		
	(b)
	to comply with Article X;

30

		
	(c)
	to provide for uncertificated Securities in addition to or in place of certificated Securities;

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

		
	(e)
	to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of issue, authentication, and delivery of Securities, as herein set forth;

		
	(f)
	to make any change that does not adversely affect the rights of any Securityholder in any material respect;

		
	(g)
	to provide for the issuance of and establish the form and terms and conditions of the Securities of any series as provided in Section 2.01, to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or any series of Securities, or to add to the rights of the holders of any series of Securities; or

		
	(h)
	comply with the requirements of the Commission in order to effect or maintain the qualification of this Indenture under the Trust Indenture Act.

The Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of this Section may be executed by the Company and the Trustee without the consent of the holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.
SECTION 9.02    Supplemental Indentures With Consent of Securityholders.
With the written consent of the holders of at least a majority in aggregate principal amount of the Outstanding Securities of any series or by action at a meeting of holders of the Securities of such series in accordance with Section 8.09, by the holders of a majority in aggregate principal amount of the Securities of such series then Outstanding represented at such meeting, the Company, when authorized by Board Resolutions, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not covered by Section 9.01 the rights of the holders of the Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the holders of each Security then Outstanding and affected thereby, (i) extend the fixed maturity of any Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, (ii) reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture, or any consent or waiver, (iii) reduce the principal amount of discount securities payable upon acceleration of the maturity of any Securities of any series or (iv) make the principal of or premium or interest on any Security of a series payable in currency or currency units other than that stated in the Securities of such series.
It shall not be necessary for the consent of the Securityholders of any series affected thereby under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.
SECTION 9.03    Effect of Supplemental Indentures.

31

Upon the execution of any supplemental indenture pursuant to the provisions of this Article or of Section 10.01, this Indenture shall, with respect to such series, be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Securities of the series affected thereby shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.
SECTION 9.04    Securities Affected by Supplemental Indentures.
Securities of any series affected by a supplemental indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article or of Section 10.01, may bear a notation in form approved by the Company, provided such form meets the requirements of any exchange upon which such series may be listed, as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new Securities of that series so modified as to conform, in the opinion of the Board of Directors of the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for the Securities of that series then Outstanding.
SECTION 9.05    Execution of Supplemental Indentures.
Upon the request of the Company, accompanied by its Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental indenture.  The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article is authorized or permitted by, and conforms to, the terms of this Article and that it is proper for the Trustee under the provisions of this Article to join in the execution thereof; provided, however, that such Opinion of Counsel need not be provided in connection with the execution of a supplemental indenture that establishes the terms of a series of Securities pursuant to Section 2.01 hereof.
Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class postage prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to the Securityholders of all series affected thereby as their names and addresses appear upon the Security Register. Any failure of the Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.
ARTICLE X     
 
SUCCESSOR ENTITY
SECTION 10.01    Company May Consolidate, Etc.
Nothing contained in this Indenture or in any of the Securities shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with the Company) or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor or successors as an entirety, or substantially as an entirety, to any other corporation (whether or not affiliated with the Company or its successor or successors) authorized to acquire and operate the same; provided, however, the Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction), sale, conveyance, transfer or other disposition, the due and punctual payment of the principal of (premium, if any) and interest on all of the Securities of all series in accordance with the terms of each series, according to their tenor and the due and punctual performance and observance of all the covenants and conditions of this Indenture with respect to each series or established with respect to such series pursuant to Section 2.01 to be kept or performed by the Company shall be expressly assumed, by supplemental indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect) satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by such 

32

consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such property.
SECTION 10.02    Successor Entity Substituted.
		
	(a)
	In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the principal of, premium, if any, and interest on all of the Securities of all series Outstanding and the due and punctual performance of all of the covenants and conditions of this Indenture or established with respect to each series of the Securities pursuant to Section 2.01 to be performed by the Company with respect to each series, such successor entity shall succeed to and be substituted for the Company with the same effect as if it had been named as the Company herein, and thereupon the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the Securities.

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

		
	(c)
	Nothing contained in this Article shall require any action by the Company in the case of a consolidation or merger of any Person into the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Company).

SECTION 10.03    Evidence of Consolidation, Etc. to Trustee.
The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or other disposition, and any such assumption, comply with the provisions of this Article.
ARTICLE XI     
 
SATISFACTION AND DISCHARGE
SECTION 11.01    Satisfaction and Discharge of Indenture.
If at any time:  (a) the Company shall have delivered to the Trustee for cancellation all Securities of a series theretofore authenticated (other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.07) and Securities for whose payment money or Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company (and thereupon repaid to the Company or discharged from such trust, as provided in Section 11.05); or (b) all such Securities of a particular series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as trust funds the entire amount in moneys or Governmental Obligations sufficient or a combination thereof, sufficient (assuming that no tax liability will be imposed on the Trustee) in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon redemption all Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder with respect to such series by the Company then this Indenture shall thereupon cease to be of further effect with respect to such series except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall survive until the date of maturity or redemption date, as the case may be, and Sections 7.06 and 11.05, that shall survive to such date and thereafter, and the Trustee, on demand of the Company and at the cost and expense of the 

33

Company shall execute proper instruments acknowledging satisfaction of and discharging this Indenture with respect to such series.
SECTION 11.02    Discharge of Obligations.
If at any time all such Securities of a particular series not heretofore delivered to the Trustee for cancellation or that have not become due and payable as described in Section 11.01 shall have been paid by the Company by depositing irrevocably with the Trustee as trust funds moneys or an amount of Governmental Obligations sufficient to pay at maturity or upon redemption all such Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder by the Company with respect to such series, then after the date such moneys or Governmental Obligations, as the case may be, are deposited with the Trustee the obligations of the Company under this Indenture with respect to such series shall cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07, 4,01, 4.02, 4.03, 7.06, 7.10 and 11.05 hereof that shall survive until such Securities shall mature and be paid. Thereafter, Sections 7.06 and 11.05 shall survive.
SECTION 11.03    Deposited Moneys to be Held in Trust.
Subject to Section 11.05, all moneys or Governmental Obligations deposited with the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be available for payment as due, either directly or through any paying agent (including the Company acting as its own paying agent), to the holders of the particular series of Securities for the payment or redemption of which such moneys or Governmental Obligations have been deposited with the Trustee.
SECTION 11.04    Payment of Moneys Held by Paying Agents.
In connection with the satisfaction and discharge of this Indenture all moneys or Governmental Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys or Governmental Obligations.
SECTION 11.05    Repayment to Company.
Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then held by the Company, in trust for payment of principal of or premium or interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such Securities for two years after the date upon which the principal of (and premium, if any) or interest on such Securities shall have respectively become due and payable, shall be repaid to the Company or (if then held by the Company) shall be discharged from such trust in each case, promptly after the end of any such two-year period or, at the request of the Company, on a later date specified by the Company; and thereupon the paying agent and the Trustee shall be released from all further liability with respect to such moneys or Governmental Obligations, and the holder of any of the Securities entitled to receive such payment shall thereafter, as an unsecured general creditor, look only to the Company for the payment thereof.
ARTICLE XII     
 
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
SECTION 12.01    No Recourse.
No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Company or of any predecessor or successor corporation, either directly or through the Company or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors as such, of the 

34

Company or of any predecessor or successor corporation, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Securities.
ARTICLE XIII     
 
MISCELLANEOUS PROVISIONS
SECTION 13.01    Effect on Successors and Assigns.
All the covenants, stipulations, promises and agreements in this Indenture contained by or on behalf of the Company shall bind its successors and assigns, whether so expressed or not.
SECTION 13.02    Actions by Successor.
Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the corresponding board, committee or officer of any corporation that shall at the time be the lawful successor of the Company.
SECTION 13.03    Surrender of Company Powers.
The Company by instrument in writing executed by authority of its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the Company, and thereupon such power so surrendered shall terminate both as to the Company and as to any successor corporation.
SECTION 13.04    Notices.
Except as otherwise expressly provided herein any notice or demand that by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the holders of Securities to or on the Company may be given or served by being deposited first class postage prepaid in a post-office letterbox addressed (until another address is filed in writing by the Company with the Trustee), as follows:  Pieris Pharmaceuticals, Inc., Attn: [   ], 255 State Street, 9th Floor, Boston, Massachusetts 02109.  Any notice, election, request or demand by the Company or any Securityholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.  Any notice or communication to a holder shall be mailed by first-class mail to his address shown on the Security Register kept by the Security Registrar.  Failure to mail a notice or communication to a holder or any defect in such notice or communication shall not affect its sufficiency with respect to other holders.  If a notice or communication is mailed or sent in the manner provided above within the time prescribed, it is duly given as of the date it is mailed, whether or not the addressee receives it, except that notice to the Trustee or the Company shall only be effective upon receipt thereof by the Trustee or the Company, respectively. If the Company mails a notice or communication to holders of Securities, it shall mail a copy to the Trustee at the same time.
SECTION 13.05    Governing Law.
This Indenture and each Security shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State.
SECTION 13.06    Treatment of Securities as Debt.
It is intended that the Securities will be treated as indebtedness and not as equity for federal income tax purposes.  The provisions of this Indenture shall be interpreted to further this intention.

35

SECTION 13.07    Compliance Certificates and Opinions.
		
	(a)
	Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company, shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.

		
	(b)
	Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant in this Indenture shall include (1) a statement that the Person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; (3) a statement that, in the opinion of such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

SECTION 13.08     Payments on Business Days.
Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and as set forth in an Officers’ Certificate, or established in one or more indentures supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Security or the date of redemption of any Security shall not be a Business Day, then payment of interest or principal (and premium, if any) may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue for the period after such nominal date.
SECTION 13.09    Conflict with Trust Indenture Act.
If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control.
SECTION 13.10    Counterparts.
This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.
SECTION 13.11    Separability.
In case any one or more of the provisions contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.
SECTION 13.12    Assignment.
The Company will have the right at all times to assign any of its rights or obligations under this Indenture to a direct or indirect wholly-owned Subsidiary of the Company, provided that, in the event of any such assignment, the Company, will remain liable for all such obligations. Subject to the foregoing, this Indenture is binding upon and inures to the benefit of the parties thereto and their respective successors and assigns. This Indenture may not otherwise be assigned by the parties thereto.

36

ARTICLE XIV     
 
SUBORDINATION OF SECURITIES
SECTION 14.01    Subordination Terms.
The payment by the Company of the principal of, premium, if any, and interest on any series of Securities issued hereunder shall be subordinated to the extent set forth in an indenture supplemental hereto relating to the Securities of such series.

37

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

By: ____________________________________
Name:
Title:

[                                                ],
As Trustee

By: ____________________________________
Name:
Title:

 

38Exhibit

Exhibit 10.1
Execution Version

AMENDED AND RESTATED
LIMITED PARTNERSHIP AGREEMENT
OF
CPN Management, LP
a Delaware Limited Partnership
effective as of March 8, 2018

PARTNERSHIP INTERESTS IN CPN MANAGEMENT, LP, A DELAWARE LIMITED PARTNERSHIP, HAVE NOT BEEN REGISTERED WITH OR QUALIFIED BY THE U.S. SECURITIES AND EXCHANGE COMMISSION OR ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE. THE INTERESTS ARE BEING SOLD IN RELIANCE UPON EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATION REQUIREMENTS. THE INTERESTS CANNOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFERABILITY CONTAINED IN THIS AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT OF CPN MANAGEMENT, LP AND APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

 	
					
	TABLE OF CONTENTS

	 
	 
	 
	 

	ARTICLE I. DEFINITIONS
	1
	

	 
	 
	 
	 

	 
	1.01
	Certain Definitions
	1
	

	 
	1.02
	Construction
	12
	

	 
	 
	 
	 

	ARTICLE II. FORMATION
	12
	

	 
	 
	 
	 

	 
	2.01
	Continuation of the Partnership
	12
	

	 
	2.02
	Name
	12
	

	 
	2.03
	Registered Office; Registered Agent
	12
	

	 
	2.04
	Principal Place of Business
	12
	

	 
	2.05
	Purpose; Powers
	13
	

	 
	2.06
	Fiscal Year
	13
	

	 
	2.07
	Foreign Qualification Governmental Filings
	13
	

	 
	2.08
	Duration
	13
	

	 
	 
	 
	 

	ARTICLE III. PARTNERS; REPRESENTATIONS AND WARRANTIES OF PARTNERS
	13
	

	 
	 
	 
	 

	 
	3.01
	Partners
	13
	

	 
	3.02
	Additional Partners
	14
	

	 
	3.03
	Representations and Warranties
	14
	

	 
	3.04
	Liability to Third Parties
	15
	

	 
	 
	 
	 

	ARTICLE IV. INTERESTS AND CAPITAL CONTRIBUTIONS
	15
	

	 
	 
	 
	 

	 
	4.01
	Interests
	15
	

	 
	4.02
	Capital Contributions
	15
	

	 
	4.03
	Return of Contribution
	15
	

	 
	4.04
	Withdrawal of Capital
	16
	

	 
	4.05
	Further Contributions
	16
	

	 
	4.06
	Capital Accounts
	16
	

	 
	4.07
	Award of Interests to Class B Partners
	16
	

	 
	 
	 
	 

	ARTICLE V. DISTRIBUTIONS, REDEMPTIONS AND ALLOCATIONS
	18
	

	 
	 
	 
	 

	 
	5.01
	Distributions
	18
	

	 
	5.02
	Benchmark Amounts; Other Adjustments
	18
	

	 
	5.03
	Tax Distributions
	18
	

	 
	5.04
	Distributions in Error
	19
	

	 
	5.05
	Allocations
	19
	

	 
	5.06
	Withholding
	23
	

	 
	 
	 
	 

	ARTICLE VI. TRANSFERS OF INTERESTS
	23
	

	 
	 
	 
	 

	 
	6.01
	Transfers
	23
	

i

	
					
	 
	6.02
	Drag-Along Rights
	25
	

	 
	6.03
	Tag-Along Rights
	26
	

	 
	6.04
	Pledge of Interests
	28
	

	 
	6.05
	Repurchase Rights
	28
	

	 
	6.06
	Elective Transfer
	31
	

	 
	6.07
	IPO
	31
	

	 
	6.08
	Power of Attorney
	33
	

	 
	6.09
	Incapacity
	33
	

	 
	6.10
	Non-Competition; Non-Solicitation; Non-Disparagement
	33
	

	 
	6.11
	Parent Distribution
	36
	

	 
	 
	 
	 

	ARTICLE VII. MANAGEMENT
	36
	

	 
	 
	 
	 

	 
	7.01
	Management
	36
	

	 
	7.02
	Limitation of Duties
	37
	

	 
	7.03
	Transactions with Affiliates
	37
	

	 
	7.04
	Officers; Partners
	37
	

	 
	7.05
	Indemnification; Limitation of Liability
	38
	

	 
	7.06
	Officers’ Insurance
	39
	

	 
	 
	 
	 

	ARTICLE VIII. OTHER RIGHTS AND OBLIGATIONS OF PARTNERS
	40
	

	 
	 
	 
	 

	 
	8.01
	Books and Records
	40
	

	 
	8.02
	Schedule K-1 Information
	40
	

	 
	8.03
	Confidentiality
	40
	

	 
	 
	 
	 

	ARTICLE IX. TAXES
	40
	

	 
	 
	 
	 

	 
	9.01
	Tax Returns
	40
	

	 
	9.02
	Tax Classification
	40
	

	 
	9.03
	Partnership Representative
	41
	

	 
	9.04
	Section 409A
	41
	

	 
	 
	 
	 

	ARTICLE X. CERTIFICATION OF INTERESTS; REPORTS; BANK ACCOUNTS
	41
	

	 
	 
	 
	 

	 
	10.01
	Certification of Interests
	41
	

	 
	10.02
	Reports
	41
	

	 
	10.03
	Bank Accounts
	41
	

	 
	 
	 
	 

	ARTICLE XI. DISSOLUTION, LIQUIDATION TERMINATION AND CONVERSION
	41
	

	 
	 
	 
	 

	 
	11.01
	Dissolution
	41
	

	 
	11.02
	Liquidation and Termination
	42
	

	 
	11.03
	Cancellation of Filing
	43
	

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

ii

	
					
	ARTICLE XII. GENERAL PROVISIONS
	43
	

	 
	 
	 
	 

	 
	12.01
	Changes in Interests; Disposition of Assets
	43
	

	 
	12.02
	Offset
	43
	

	 
	12.03
	Notices
	43
	

	 
	12.04
	Entire Agreement; Supersedure
	44
	

	 
	12.05
	Effect of Waiver or Consent
	44
	

	 
	12.06
	Amendment or Modification
	44
	

	 
	12.07
	Binding Effect
	44
	

	 
	12.08
	Governing Law; Severability
	45
	

	 
	12.09
	Further Assurances
	45
	

	 
	12.10
	Consent to Jurisdiction; Service of Process; Waiver of Jury Trial
	45
	

	 
	12.11
	Waiver of Certain Rights
	46
	

	 
	12.12
	Counterparts
	46
	

	 
	 
	 
	 

	EXHIBIT A
	A-1
	

	 
	 
	 

	EXHIBIT B
	B-1
	

	 
	 
	 

	EXHIBIT C
	C-1
	

	 
	 
	 

	EXHIBIT D
	D-1
	

	 
	 
	 

	EXHIBIT E
	E-1
	

iii

AMENDED AND RESTATED
LIMITED PARTNERSHIP AGREEMENT
OF
CPN MANAGEMENT, LP
This AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT (this “Agreement”) of CPN MANAGEMENT, LP, a Delaware limited partnership (the “Partnership”), effective as of March 8, 2018 (the “Effective Date”), is made and entered into by and among VOLT PARENT GP, LLC, a Delaware limited liability company, as the “General Partner,” and each of VOLT PARENT, LP, a Delaware limited partnership (“Parent”), and the holders of Class B Interests who execute this Agreement or a joinder hereto. Capitalized terms used but not otherwise defined herein have the meanings set forth in Section 1.01.
R E C I T A L S
WHEREAS, the Partnership was formed as a limited partnership under the Act pursuant to a certificate of limited partnership (the “Delaware Certificate”) filed in the office of the Delaware Secretary of State on January 10, 2018;
WHEREAS, the General Partner and Parent previously entered into that certain Limited Partnership Agreement of the Partnership, dated as of January 10, 2018 (the “Prior Agreement”); and 
WHEREAS, the Partners desire to amend and restate the Prior Agreement in its entirety as set forth herein and do hereby adopt this Agreement as the Limited Partnership Agreement of the Partnership.
A G R E E M E N T
NOW, THEREFORE, in consideration of the promises and the covenants hereinafter contained and to induce the parties hereto to enter into this Agreement, it is agreed as follows:
ARTICLE I. 
DEFINITIONS
1.01    Certain Definitions. As used in this Agreement, the following terms have the following meanings:
“Act” means the Delaware Revised Uniform Limited Partnership Act and any successor statute, as amended from time to time.
“Adjusted Capital Account” means, with respect to any Partner, the balance in such Partner’s Capital Account as of the end of the relevant Fiscal Year or other period, after giving effect to the following adjustments:
(a)    add to such Capital Account any amounts which such Partner is obligated to restore pursuant to this Agreement or is deemed to be obligated to restore to the Partnership pursuant to Treasury Regulations Section 1.704-1(b)(2)(ii)(c) or the penultimate sentence of each of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and

(b)    subtract from such Capital Account such Partner’s share of the items described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6).
“Affiliate” of a Person means any other Person directly or indirectly Controlling or Controlled by or under direct or indirect common Control with the first Person.
“Agreement” has the meaning set forth in the introductory paragraph hereof.
“Amended Drag-Along Notice” has the meaning set forth in Section 6.02(c).
“Amended Tag-Along Notice” has the meaning set forth in Section 6.03(b).
“Assumed Tax Liability” means, with respect to any Partner, an amount, as determined in good faith by the General Partner, that is equal to the excess, if any, of (i) an amount sufficient to satisfy such Partner’s projected deemed federal, state and local income tax liability with respect to the income and gain allocated to such Partner (giving effect to any current or prior allocations of losses and deductions) for tax purposes pursuant to Section 5.05 of this Agreement for the portion of the then-current year through the end of the then-current fiscal quarter (determined without regard to any activities, income or loss of that Partner realized other than in its capacity as a Partner of the Partnership) over (ii) the distributions made to such Partner pursuant to Sections 5.01, 5.02 and 5.03 of this Agreement for such year. For each Partner other than Parent, the Assumed Tax Liability will be calculated based on the highest combined marginal income tax rate for an individual residing in New York, New York. For Parent, the Assumed Tax Liability will be calculated based on the highest combined marginal income tax rate for an individual or a corporation (whichever is higher) resident for tax purposes in New York, New York. In each case, the Assumed Tax Liability will also be calculated by utilizing the rates for ordinary income or capital gain (as applicable) depending on the character of the Partnership’s income and gain and (solely if and to the extent that Section 164(b)(6) of the Code is amended or repealed or expires after the date hereof and no longer applies to limit such deduction) taking into account the deductibility (if any) of state and local taxes for federal income tax purposes for the relevant period(s).
“Available Cash” means the gross cash proceeds from the Partnership’s operations (including sales and dispositions of property whether or not in the ordinary course of business) and any net cash proceeds from any issuance of equity, less amounts used to pay or establish reserves for all Partnership expenses, debt payments, capital improvements, replacements, future acquisitions and investments and contingencies, in each case as reasonably determined by the General Partner.
“Award” has the meaning set forth in Section 4.07(a).
“Award Agreement” means the written agreement between the Partnership and a Limited Partner of the Partnership pursuant to which Class B Interests may be issued to such Limited Partner in accordance with the terms of Section 3.02.
“Benchmark Amount” has the meaning set forth in Section 4.07(c).

2

“Benchmark Component” has the meaning set forth in Section 4.07(c).
“Business Day” means any day other than a Saturday, Sunday or legal holiday on which banks in New York are authorized or obligated by law to close.
“Calpine” means Calpine Corporation, a Delaware corporation and a wholly-owned subsidiary of the Partnership.
“Calpine Repurchase Right” has the meaning set forth in Section 6.05(a).
“Calpine Shares” means shares of common stock of Calpine.
“Capital” means the amount of cash and/or the initial Gross Asset Value of any non-cash property contributed to the Partnership (at the time of such contribution) by the Partners pursuant to the terms of this Agreement.
“Capital Account” means the capital account maintained for each Partner on the Partnership’s books and records in accordance with the following provisions:
(a)    To each Partner’s Capital Account there will be added (i) the amount of cash and the Gross Asset Value of any other asset contributed by such Partner (at the time of such contribution) to the Partnership pursuant to Article IV hereof, (ii) such Partner’s allocable share of Profits and any items in the nature of income or gain that are specially allocated to such Partner pursuant to Section 5.05(a) and (b) hereof or other provisions of this Agreement, and (iii) the amount of any Partnership liabilities assumed by such Partner or which are secured by any property distributed to such Partner.
(b)    From each Partner’s Capital Account there will be subtracted (i) the amount of cash and the Gross Asset Value of any other Partnership assets distributed to such Partner pursuant to any provision of this Agreement, (ii) such Partner’s allocable share of Losses and any other items in the nature of expenses or losses that are specially allocated to such Partner pursuant to Section 5.05(a) and (b) or other provisions of this Agreement, and (iii) liabilities of such Partner assumed by the Partnership or which are secured by any property contributed by such Partner to the Partnership.
(c)    In the event any Interest is Transferred in accordance with the terms of this Agreement, the transferee will succeed to the Capital Account of the transferor to the extent it relates to the transferred Interest.
(d)    Determination of the amount of any liability for purposes of subparagraphs (a) and (b) above will take into account Code Section 752(c) and any other applicable provisions of the Code and Treasury Regulations.
(e)    The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2 and will be interpreted and applied in a manner consistent with such Treasury Regulations. In the event that the General Partner determines that it is prudent to modify the manner 

3

in which the Capital Accounts, or any additions or subtractions thereto, are computed in order to comply with such Treasury Regulations, the General Partner may make such modification, provided that it is not likely to have a material effect on the amounts distributable to any Partner pursuant to Article XI hereof upon the dissolution of the Partnership.
“Capital Contribution” means any amount of Capital contributed to the Partnership by a Partner pursuant to the terms of this Agreement. Any reference to the Capital Contributions of a Partner will include the Capital Contributions made by a predecessor holder of the Interest of such Partner.
“Class A Interest” means any Interests (other than the Class B Interests), which may be denominated in one or more sub-classes and all such sub-classes together shall be deemed Class A Interests.
“Class A Partner” and “Class A Partners” means a Partner, in its capacity as a holder of record of Class A Interests, with a Capital Account as set forth on Exhibit A hereto.
“Class B Interests” means the Interests in the Partnership having the rights and obligations set forth in this Agreement with respect to Class B Interests and issued pursuant to Sections 3.02 and 4.07, as set forth on Exhibit A hereto.
“Class B Partner” and “Class B Partners” means a Limited Partner, in its capacity as a holder of record of Class B Interests, in each case so long as such Person is shown on the Partnership’s books and records as the owner of Class B Interests hereunder (or Calpine Shares received in redemption therefor pursuant to Section 6.05), but excluding the Partnership, the General Partner and the Class A Partners in the event the Partnership, the General Partner and/or the Class A Partners purchase Class B Interests pursuant to this Agreement.
“Code” means the Internal Revenue Code of 1986 and any successor statute, as amended from time to time.
“Control” means possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through ownership of voting securities, by agreement or otherwise.
“Conversion Date” has the meaning set forth in Section 6.07(b).
“Conversion Shares” has the meaning set forth in Section 6.07(a).
“Date of Termination” means, with respect to each Class B Partner, the date on which such Class B Partner’s employment with or other service for the Partnership or its Affiliates terminates for any reason.
“Deemed Fair Value” means the price which, if paid for all of the Partnership’s assets, would produce net proceeds after payment of the Partnership’s liabilities (limited, in the case of nonrecourse liabilities, to the fair market value of the assets securing those liabilities) which, if distributed to the applicable Partner pursuant to Section 11.02(c)(iii) with respect to that portion of 

4

such Partner’s aggregate Interest being Transferred, would equal the applicable purchase price payable to such Partner in connection with any Drag-Along Sale or Tag-Along Sale, as applicable.
“Delaware Certificate” has the meaning set forth in the Recitals.
“Depreciation” means, for each Fiscal Year or other period, an amount equal to the depreciation, amortization or other cost recovery deduction allowable for federal income tax purposes with respect to an asset for such Fiscal Year or other period, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year or other period, Depreciation will be an amount that bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization or other cost recovery deduction for such Fiscal Year or other period bears to such beginning adjusted tax basis; provided, that if the method described in Treasury Regulations Section 1.704-3(d) is used to take account of the difference between an asset’s Gross Asset Value and its adjusted tax basis, then Depreciation in respect of such asset (or the relevant portion thereof) shall be determined in accordance with Treasury Regulations Section 1.704-3(d)(2). Notwithstanding the foregoing, if the federal income tax depreciation, amortization or other cost recovery deduction allowable for such Fiscal Year or other period is zero, Depreciation will be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the General Partner.
“Disability Notice” has the meaning set forth in Section 6.05(f)(ii).
“Drag-Along Co-Seller” has the meaning set forth in Section 6.02(a).
“Drag-Along Notice” has the meaning set forth in Section 6.02(c).
“Drag-Along Rights” has the meaning set forth in Section 6.02(a).
“Drag-Along Sale” has the meaning set forth in Section 6.02(a).
“Drag-Along Transferee” has the meaning set forth in Section 6.02(a).
“Economic Interest” means a Person’s right to share in the Profits, Losses or similar items of, and to receive distributions from, the Partnership, but does not include any other rights of a Partner including the right to vote, consent or otherwise participate in the management of the Partnership, or, except as specifically provided in this Agreement or required under the Act, any right to information concerning the business and affairs of the Partnership.
“ECP” means, collectively, Energy Capital Partners III, LP, Energy Capital Partners IV, LP and any of their respective parallel funds, co-investment vehicles, acquisition vehicles or alternative investment vehicles.
“ECP Aggregate Ownership” has the meaning set forth in Section 4.07(e).
“Effective Date” has the meaning set forth in the introductory paragraph hereof.

5

“Entity” means any corporation, limited liability company, general partnership, limited partnership, venture, trust, business trust, unincorporated association, estate or other entity.
“Fair Market Value” means the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, and both having reasonable knowledge of the relevant facts, as determined by the General Partner in good faith and consistent with any contemporaneous arm’s length transaction using such reasonable methods of valuation as it may adopt.
“Financing Documents” has the meaning set forth in Section 6.05(f)(i).
“Fiscal Year” has the meaning set forth in Section 2.06.
“GAAP” means generally accepted accounting principles in effect from time to time in the United States, applied on a consistent basis.
“General Partner” means Volt Parent GP, LLC, a Delaware limited liability company, and its successors and permitted assigns as general partner of the Partnership. The General Partner has no obligation to make Capital Contributions or right to receive distributions under this Agreement.
“Gross Asset Value” means, with respect to any asset, the asset’s adjusted basis for federal income tax purposes, except as follows:
(a)    The initial Gross Asset Value of any non-cash asset contributed by a Partner to the Partnership is the gross Fair Market Value of such asset.
(b)    The Gross Asset Value of all Partnership assets immediately prior to the occurrence of any event described in subparagraphs (i) through (v) below may be adjusted to equal their respective gross Fair Market Values:
(i)    the acquisition of an additional Interest in the Partnership by a new or existing Partner in exchange for a more than de minimis Capital Contribution, if the General Partner reasonably determines that such adjustment is necessary or appropriate to reflect the relative Interests of the Partners in the Partnership;
(ii)    the distribution by the Partnership to a Partner of more than a de minimis amount of Partnership assets as consideration for an Interest in the Partnership, if the General Partner reasonably determines that such adjustment is necessary or appropriate to reflect the relative Interests of the Partners in the Partnership;
(iii)    the liquidation or dissolution of the Partnership within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g); 
(iv)    the grant of a more than de minimis Interest in the Partnership as consideration for the provision of services to or for the benefit of the Partnership by an existing Partner acting in his capacity as a Partner, or by a new Partner acting in his capacity as a Partner or in anticipation of becoming a Partner of the Partnership, if the General Partner 

6

reasonably determines that such adjustment is necessary or appropriate to reflect the relative Interests of the Partners in the Partnership, provided that such adjustment is consistent with the economic results contemplated by the parties under this Agreement; and
(v)    at such other times as the General Partner may reasonably determine necessary or advisable in order to comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2 in a manner consistent with the economic results contemplated by the parties under this Agreement.
(c)    The Gross Asset Value of any Partnership asset distributed to a Partner is the gross Fair Market Value of such asset (taking Section 7701(g) of the Code into account) on the date of distribution.
(d)    The Gross Asset Values of Partnership assets will be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m), except that Gross Asset Values will not be adjusted pursuant to this subparagraph (d) to the extent that an adjustment pursuant to subparagraph (b) above is made in connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (d).
(e)    If the Gross Asset Value of a Partnership asset has been determined or adjusted pursuant to subparagraph (a), (b) or (d) above, such Gross Asset Value will thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses, and not by the depreciation, amortization and other cost recovery deductions taken into account with respect to that asset for federal income tax purposes.
“Hypothetical Value” means, in respect of a Partner’s Interests (or ECP’s direct or indirect equity interest in Parent), a pro rata portion (based on the ratio which (i) the portion of such Partner’s Interests (or ECP’s direct or indirect equity interest in Parent) being Transferred pursuant to Tag-Along Rights or Drag-Along Rights bears to (ii) such Partner’s entire Interest (or ECP’s entire direct or indirect equity interest in Parent)) of the amount that would have been distributed with respect to such Partner’s entire Interest (or ECP’s entire direct or indirect equity interest in Parent) pursuant to Section 11.02(c)(iii), if all of the Partnership’s assets and liabilities had been sold for their Deemed Fair Value and, immediately following the consummation of such hypothetical sale, the Partnership distributed the proceeds in accordance with Section 11.02(c)(iii).
“Incapacity” means the entry of an order of incompetence or of insanity, or the death, dissolution, bankruptcy (as defined in the Act), or termination (other than by merger or consolidation) of any Person.
“Indemnitee” has the meaning set forth in Section 7.05(a).
“Initial Repurchase Deadline” has the meaning set forth in Section 6.05(a).

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“Interest” means the partnership interest of a Partner in the Partnership at any particular time including such Partner’s Economic Interest and the right, if any, to participate in the management of the business and affairs of the Partnership, including the right (if any) to vote on, consent to or otherwise participate in any decision or action of or by the Partners, the right (if any) to designate members to the board of managers (or similar governing body) of the General Partner, and the right (if any) to receive information concerning the business and affairs of the Partnership, in each case to the extent expressly provided in this Agreement or otherwise required by the Act.
“IPO” means the initial public offering of the Partnership’s equity securities or the equity securities of a Person that owns not less than 50.1% of the equity securities of the Partnership and holds no assets other than equity securities of the Partnership or any successor of the Partnership, in either case pursuant to an effective registration statement under the Securities Act.
“Lien” means (a) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing and (b) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.
“Limited Partner” means a limited partner of the Partnership.
“Nonrecourse Deductions” has the meaning set forth in Treasury Regulations Sections 1.704-2(b)(1) and 1.704-2(c).
“Nonrecourse Liability” has the meaning set forth in Treasury Regulations Sections 1.704-2(b)(3) and 1.752-1(a)(2).
“Obligations” means all obligations of every nature of the Partnership under this Agreement.
“Officer” means any Person designated as an officer of the Partnership pursuant to Section 7.04(a).
“Parent” has the meaning set forth in the introductory paragraph hereof.
“Parent Distribution” has the meaning set forth in Section 6.11.
“Parent LPA” means that certain Second Amended and Restated Limited Partnership Agreement of Parent, dated March 7, 2018, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms.
“Parent-Related Indemnitee” has the meaning set forth in Section 7.05(g).
“Parent-Related Indemnitors” has the meaning set forth in Section 7.05(g).
“Parent-Related Partner” means Parent and (i) any Affiliate of Parent or any direct or indirect partner, member or other equity participant of any of the foregoing, and (ii) any Transferee of the foregoing, in each case for so long as such Person owns any Interests.

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“Partner” means each of the General Partner, Parent, each other Limited Partner, and any other Person who becomes a Partner in accordance with the terms of this Agreement, but does not include any Person who has ceased to hold any Interests in the Partnership.
“Partner Minimum Gain” means an amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury Regulations Section 1.704-2(i) with respect to “partner minimum gain.”
“Partner Nonrecourse Debt” has the meaning set forth in Treasury Regulations Section 1.704-2(b)(4) for the phrase “partner nonrecourse debt.”
“Partner Nonrecourse Deductions” has the meaning set forth in Treasury Regulations Section 1.704-2(i) for the phrase “partner nonrecourse deductions.”
“Partnership” has the meaning set forth in the introductory paragraph hereof.
“Partnership Minimum Gain” has the meaning set forth in Treasury Regulations Sections 1.704-2(b)(2) and 1.704-2(d)(1) for the phrase “partnership minimum gain.”
“Partnership Redemption Right” has the meaning set forth in Section 6.05(a).
“Percentage Interest” means, (i) as to each Class B Partner, its Percentage Interest (including both the vested and unvested portions), as set forth on Exhibit A attached hereto, as shall be amended from time to time by the General Partner to reflect any changes, and (ii) with respect to each Class A Partner, the product of (A) 100% minus the aggregate then outstanding Percentage Interests held by the Class B Partners at such time and (B) a fraction, the numerator of which is the total Capital contributed by such Class A Partner, as applicable, to the Partnership and the denominator of which is the aggregate total Capital contributed by all Class A Partners to the Partnership.
“Performance Class B Interests” has the meaning set forth in Section 4.07(e).
“Person” means any individual or Entity.
“Prime Rate” means the prime rate listed from time to time in The Wall Street Journal, which listing appears as of the relevant date of determination under the caption “Money Rates.”
“Prior Agreement” has the meaning set forth in the Recitals.
“Profits” and “Losses” means, for each Fiscal Year or other period, an amount equal to the Partnership’s taxable income or loss for such year or period determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, deduction or credit required to be stated separately pursuant to Code Section 703(a)(1) will be included in taxable income or loss), with the following adjustments:

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(a)    Any income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this definition of Profits and Losses will increase the amount of such income and/or decrease the amount of such loss;
(b)    Any expenditure of the Partnership described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses pursuant to this definition of Profits and Losses, will decrease the amount of such income and/or increase the amount of such loss;
(c)    Gain or loss resulting from any disposition of Partnership assets where such gain or loss is recognized for federal income tax purposes will be computed by reference to the Gross Asset Value of the Partnership assets disposed of, notwithstanding that the adjusted tax basis of such Partnership assets differs from their Gross Asset Value;
(d)    In lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such income or loss, Depreciation will be taken into account for such Fiscal Year or other period;
(e)    To the extent an adjustment to the adjusted tax basis of any asset included in Partnership assets pursuant to Code Section 734(b) or Code Section 743(b) is required pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m) to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Partner’s Interest, the amount of such adjustment will be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and will be taken into account for the purposes of computing Profits and Losses;
(f)    If the Gross Asset Value of any Partnership asset is adjusted in accordance with subparagraph (b) or subparagraph (c) of the definition of “Gross Asset Value” above, the amount of such adjustment will be taken into account in the taxable year of such adjustment as gain or loss from the disposition of such asset for purposes of computing Profits or Losses; and
(g)    Notwithstanding any other provision of this definition of Profits and Losses, any items that are specially allocated pursuant to Article V hereof will not be taken into account in computing Profits or Losses. The amounts of the items of Partnership income, gain, loss or deduction available to be specially allocated pursuant to Article V hereof will be determined by applying rules analogous to those set forth in this definition of Profits and Losses. 
“Proposed Regulations” has the meaning set forth in Section 5.05(d)(iv).
“Proprietary Information” has the meaning set forth in Section 6.10(c).
“Regulatory Allocations” has the meaning set forth in Section 5.05(b)(viii).
“Reinstatement Notice” has the meaning set forth in Section 6.05(f)(ii).
“Repurchase Disability” has the meaning set forth in Section 6.05(f)(i).

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“Repurchase Price” means, with respect to any Calpine Shares held by a Class B Partner subject to the repurchase rights in Section 6.05, the “Repurchase Price” as defined in the Award Agreement between the Partnership and the triggering Class B Partner.
“Repurchase Trigger” has the meaning set forth in Section 6.05(a).
“Restricted Business” has the meaning set forth in Section 6.10(a).
“Restricted Period” has, with respect to each Class B Partner, the meaning set forth in any Award Agreement entered into with such Class B Partner.
“Section 409A” means Section 409A of the Code and the Department of Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date hereof.
“Securities Act” means the Securities Act of 1933, as amended.
“Stockholders Agreement” means that certain Stockholders Agreement of Calpine, dated as of the date hereof, by and among Calpine, the Partnership and each of the other stockholders who become parties thereto from time to time in accordance with the terms thereof, as such agreement may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof.
“Substitute Partner” means (i) any Person (A) to whom a Partner (or transferee thereof) Transfers all or any part of such Partner’s Interest in the Partnership, and (B) which has been admitted to the Partnership as a Substitute Partner pursuant to Section 6.01(e) and (ii) any Person that purchases any Interest(s) pursuant to and in compliance with Sections 6.02, 6.03 or 6.06.
“Tag-Along Notice” has the meaning set forth in Section 6.03(b).
“Tag-Along Participant” has the meaning set forth in Section 6.03(a).
“Tag-Along Rights” has the meaning set forth in Section 6.03(a).
“Tag-Along Sale” means any Transfer subject to Section 6.03(a).
“Tag-Along Transferee” has the meaning set forth in Section 6.03(a).
“Third Party” means any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended) other than (i) Calpine, the Partnership, Parent or any of their respective Affiliates or (ii) any employee benefit plan maintained by Calpine or any of its subsidiaries.
“Transfer” means a sale, assignment, transfer, exchange, or other disposition of or a pledge or grant of a security interest in or other encumbrance on any Interest.

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“Transferee” means a Person that acquires all or any portion of an Interest as a result of a Transfer.
“Transferor” means a Person that Transfers all or any portion of an Interest to another Person.
“Unreturned Capital” means, with respect to any Class A Partner, an amount equal to the aggregate Capital Contributions made or deemed made by such Partner with respect to such Partner’s Interest, minus the aggregate amount of such Capital Contributions that have been returned to such Partner pursuant to Section 5.01 and Section 5.03.
1.02    Construction. Whenever the context requires, the gender of all words used in this Agreement includes the masculine, feminine, and neuter. All references to Articles and Sections refer to articles and sections of this Agreement, and all references to Exhibits and Schedules are to exhibits and schedules attached hereto, each of which is made a part hereof for all purposes. The use herein of the word “include” or “including,” when following any general statement, term or matter, will not be construed to limit such statement, term or matter to the specific items or matters set forth following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather will be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. The term “or” is not exclusive. The definitions set forth or referred to in Section 1.01 will apply equally to both the singular and plural forms of the terms defined. All accounting terms used herein and not otherwise defined herein will have the meanings accorded them in accordance with GAAP and, except as expressly provided herein, all accounting determinations will be made in accordance with GAAP.
ARTICLE II.
FORMATION
2.01    Continuation of the Partnership. The Partnership was formed as a Delaware limited partnership on January 10, 2018 by the filing of the Delaware Certificate. The Partners desire to continue the Partnership for the purposes and upon the terms and conditions set forth herein. As of the Effective Date, the General Partner, Parent and the holders of Class B Interests party to this Agreement constitute all of the Partners of the Partnership. Except as provided herein, the rights, duties and liabilities of each Partner will be as provided in the Act.
2.02    Name. The name of the Partnership is “CPN Management, LP”. Partnership business will be conducted in such name or such other names that comply with applicable law as the General Partner may select from time to time. 
2.03    Registered Office; Registered Agent. The registered office of the Partnership in the State of Delaware will be the initial registered office designated in the Delaware Certificate or such other office (which need not be a place of business of the Partnership) as the General Partner may designate from time to time in the manner provided by law. The registered agent of the Partnership in the State of Delaware will be the initial registered agent designated in the Delaware Certificate, or such other Person or Persons as the General Partner may designate from time to time in the manner provided by law. 
2.04    Principal Place of Business. The principal place of business of the Partnership will be at 717 Texas Avenue, Suite 100, Houston Texas 77002, or such other location as the General 

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Partner may designate from time to time, which need not be in the State of Delaware. The Partnership may have such other offices as the General Partner may determine appropriate.
2.05    Purpose; Powers. The purpose of the Partnership is to directly or indirectly own Calpine and to issue the Class B Interests to the Class B Partners. The Partnership shall have the power to engage in any and all lawful businesses or activities and exercise any powers in which a limited partnership may be engaged under applicable law, including the Act. The Partnership will have all powers permitted to be exercised by a limited partnership organized in the State of Delaware.
2.06    Fiscal Year. The fiscal year of the Partnership (the “Fiscal Year”) for financial statement and federal income tax purposes will end on December 31st unless otherwise determined by the General Partner or required under the Code.
2.07    Foreign Qualification Governmental Filings. The General Partner is authorized to cause the Partnership to comply, to the extent procedures are available, with all requirements necessary to qualify the Partnership as a foreign limited partnership in any jurisdiction where the Partnership may conduct business. Each Officer is authorized, on behalf of the Partnership, to execute, acknowledge, swear to and deliver all certificates and other instruments as may be necessary or appropriate in connection with such qualifications. Further, each Partner will execute, acknowledge, swear to and deliver all certificates and other instruments that are necessary or appropriate to qualify, or, as appropriate, to continue or terminate such qualification of, the Partnership as a foreign limited partnership in all such jurisdictions in which the Partnership may conduct business. 
2.08    Duration. The Partnership commenced on the date the Delaware Certificate was filed with the Delaware Secretary of State, and the Partnership will be perpetual in duration unless terminated pursuant to this Agreement.
                                                          ARTICLE III. 
PARTNERS; REPRESENTATIONS AND WARRANTIES OF PARTNERS
3.01    Partners. As of the Effective Date, the General Partner, Parent and the holders of Class B Interests party to this Agreement are the only Partners of the Partnership. The names, addresses, type of Interests held by the Partners, Benchmark Components, Capital Contributions and Percentage Interests of the Partners are set forth on Exhibit A attached hereto and incorporated herein. The General Partner is hereby authorized to complete or amend Exhibit A from time to time to reflect the admission of additional Partners, the withdrawal of a Partner, the change of address of any Partner, the Capital Contribution of a Partner, the Percentage Interests of a Partner upon any issuance, redemption or Transfer of such Partner’s Interests, and other information called for by Exhibit A, and to correct or amend Exhibit A. Such completion, correction or amendment may be made from time to time as and when the General Partner considers it appropriate. The General Partner may, in its discretion, in lieu of providing each Partner with a complete version of Exhibit A, elect to provide any Partner with a redacted or partial version of Exhibit A containing only such information as the General Partner determines appropriate under the circumstances; provided, that any such redacted or partial version of Exhibit A shall contain at least such Partner’s Capital Contributions and Percentage Interests.

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3.02    Additional Partners. Subject to the provisions of this Agreement, including Section 8.03 and Article VI, as applicable, hereof upon the approval of the General Partner, additional Persons may be admitted to the Partnership as Partners and Interests may be created and issued to such Persons as determined by the General Partner on such terms and conditions as the General Partner may determine at the time of admission (including subject to such Person’s agreement to be bound by and execution of an Award Agreement containing vesting and other terms and conditions determined in the General Partner’s sole discretion), provided that any Person that acquires Interests pursuant to a Transfer permitted by, and effected in accordance with, this Agreement will be deemed to be automatically approved by the General Partner. The terms of admission may provide for the creation of different classes or series of Interests having different rights, powers and duties. As a condition to the admission of any Person as a Partner of the Partnership, such Person must agree to be bound by the terms of this Agreement by executing and delivering a joinder to this Agreement in the form attached hereto as Exhibit B, and must make the representations and warranties set forth in Section 3.03 as of the date of such Person’s admission as a Partner of the Partnership.
3.03    Representations and Warranties. Each Partner hereby represents and warrants to the Partnership and each other Partner that, as of the Effective Date (or, for any Partner that becomes a Partner after the Effective Date, as of such date he, she or it becomes a Partner):
(a)    Power and Authority. Such Partner has full power and authority to enter into this Agreement and to perform its obligations hereunder;
(b)    No Conflicts. The execution, delivery and performance of this Agreement do not conflict with any other agreement or arrangement to which such Partner is a party or by which it is or its assets are bound;
(c)    Own Account. Such Partner is and will be acquiring such Partner’s Interest for investment purposes only for his, her or its own account and not with a view to distribution, reoffer, resale or any other disposition not in compliance with the Securities Act and applicable state securities laws;
(d)    Expertise. Such Partner alone, or together with such Partner’s representatives, possesses such expertise, knowledge and sophistication in financial and business matters generally, and in the type of transactions in which the Partnership proposes to engage in particular, that such Partner is capable of evaluating the merits and economic risks of acquiring and holding an Interest, and such Partner is able to bear all such economic risks now and in the future;
(e)    Access to Information. Such Partner has had access to all of the information with respect to the Partnership and his, her or its Interest that such Partner deems necessary to make a complete evaluation thereof;
(f)    Own Evaluation. Such Partner’s decision to acquire an Interest for investment has been based solely upon the evaluation made by such Partner;
(g)    Awareness of Economic Risk. Such Partner is aware that such Partner must bear the economic risk of such Partner’s investment in the Partnership for an indefinite 

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period of time because the Interests have not been registered under the Securities Act or under the securities laws of any state, and, therefore, such Interests cannot be sold unless they are subsequently registered under the Securities Act and any applicable state securities laws or an exemption from registration is available;
(h)    No Registration Rights. Such Partner is aware that only the Partnership can take action to register Interests in the Partnership and that the Partnership is under no such obligation and does not propose or intend to attempt to do so;
(i)    Transfer Restrictions. Such Partner is aware that this Agreement provides restrictions on the ability of a Partner to Transfer Interests, and such Partner will not seek to effect any Transfer other than in accordance with such restrictions; and
(j)    Accredited Investor. Such Partner is, and at such time that such Partner acquires any Interests of the Partnership or makes Capital Contributions (if any) to the Partnership, will be, an “accredited investor” within the meaning of Rule 501 under the Securities Act, unless such Partner has notified the Partnership in writing that such Partner is not an accredited investor.
3.04    Liability to Third Parties. No Limited Partner or Officer will have any personal liability for any obligations or liabilities of the Partnership, whether such liabilities arise in contract, tort or otherwise, except to the extent that any such liabilities or obligations are expressly assumed in writing by such Limited Partner or Officer. Nothing in this Section 3.04 comprises or will be construed as an agreement by the Partnership to indemnify or hold harmless any Limited Partner or Officer.
                                                                 ARTICLE IV. 
INTERESTS AND CAPITAL CONTRIBUTIONS
4.01    Interests. Each Partner’s interest in the Partnership will be represented by its Capital Account and by Interests issued by the Partnership to such Partner. Subject to Sections 3.02 and 8.03, additional Interests may be issued from time to time as may be determined by the General Partner. The General Partner may create additional series or classes through subdivision or by issuance of Interests of such class or series.
4.02    Capital Contributions. As of the Effective Date, Parent has made the initial Capital Contribution set forth on Exhibit A hereto. The General Partner will determine, in its sole discretion at any time and from time to time, whether Parent will make additional Capital Contributions.
4.03    Return of Contribution. Except as provided in this Agreement, a Partner is not entitled to the return of any part of its Capital Contributions or to be paid interest in respect of either its Capital Account or its Capital Contributions. Any Capital Contribution that has not been repaid is not a liability of the Partnership or of the other Partners. A Partner is not required to contribute or to lend any cash or property to the Partnership to enable the Partnership to return the other Partners’ Capital Contributions.

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4.04    Withdrawal of Capital. Except as provided in Article VI, no Partner has the right to withdraw any part of its Capital Contribution from the Partnership or to receive the return of any part of its Interest in the Partnership prior to its liquidation and termination pursuant to Article XI hereof.
4.05    Further Contributions. Except as specifically set forth in Section 4.02, no Partner shall be required or permitted to make further Capital Contributions to the Partnership. 
4.06    Capital Accounts. The Partnership will maintain for each Limited Partner owning any Interests a separate Capital Account with respect to such Interests in accordance with the rules of Treasury Regulations Section 1.704-1(b)(2)(iv) and as set forth in this Agreement.
4.07    Award of Interests to Class B Partners.
(a)    Each issuance of Interests to a Class B Partner hereunder (an “Award”) shall be subject to the terms and conditions of this Agreement and an Award Agreement containing such vesting and other terms, conditions and limitations (including provisions regarding repurchases of interests) as may be determined in the sole discretion of the General Partner; provided that, (i) no Award Agreement shall be entered into by the Partnership, and the Partnership shall not issue any Award, without the prior approval of Parent, and (ii) except as expressly provided in the Award Agreement or any employment agreement, if the Award Agreement or employment agreement contains any provision that conflicts with this Agreement, the applicable provision of this Agreement shall prevail and control and the conflicting provision of such Award Agreement or employment agreement (and only such provision) shall be of no force or effect. Each Award Agreement shall be executed by an authorized Officer, on behalf of the Partnership, and by such Class B Partner. No Class B Partner or any employee of, or service provider to, the Partnership or any subsidiary thereof shall execute or approve, on behalf of the Partnership, such employee or service provider’s own, or such Class B Partner’s own Award Agreement or any other instrument that directly relates to such employee or service provider’s specific interests under this Agreement or the Award Agreement. Neither this Agreement nor any Award Agreement shall confer upon any Class B Partner or any other Person any right with respect to continuation of service with the Partnership or any subsidiary thereof, nor shall it interfere in any way with the right of the Partnership or any subsidiary thereof to terminate any employee’s, service provider’s or any other Person’s service at any time. Absent express provisions to the contrary, Awards and related benefits or payments shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Partnership or any subsidiary thereof and shall not affect any benefits under any other benefit plan of any kind or subsequently in effect under which the availability or amount of benefits is related to level of compensation.
(b)    A separate series of Class B Interests shall be created with respect to the Awards issued to any Class B Partner on any given issuance date, and shall be set forth on Exhibit A along with the applicable information determined in accordance with Section 4.07(c) below.

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(c)    The General Partner shall determine the benchmark amount with respect to each series of Class B Interests as of a given date, which amount shall, unless otherwise specified by the General Partner or as provided in Section 4.07(e), be the sum of (x) the amount set forth with respect to such series in the “Benchmark Component” column on Exhibit A (with such “Benchmark Component” representing the Fair Market Value of the equity Interests of the Partnership at such time such series is issued or such greater amount as determined by the General Partner in its sole discretion) and (y) the amount of all Capital Contributions (if any) made on or after the date such series is issued (the “Benchmark Amount”). This Section 4.07(c), together with the provisions of Section 5.02, is intended to result in each series of Class B Interests being treated as a “profits interest” for U.S. federal income tax purposes as of the date such series is issued.
(d)    Except as provided in Section 4.07(e), in no event shall the aggregate amount of outstanding Class B Interests held by Class B Partners represent an aggregate Percentage Interest (including both vested and unvested Percentage Interests) in excess of 6%, of which an aggregate Percentage Interest of 5.5% shall be granted as soon as practicable following the Effective Date. The allocation of the remaining 0.5% among the employees of Calpine shall be made by the Chief Executive Officer of Calpine, with the approval of the General Partner.
(e)    In addition to the Class B Interests described in Section 4.07(d), the Partnership shall grant Class B Interests with an aggregate Percentage Interest of 2.5% (the “Performance Class B Interests”). Each Performance Class B Interest shall have a Benchmark Component equal to the greater of (i) 2.00x the aggregate Fair Market Value of the equity Interests of the Partnership as of the Effective Date and (ii) the aggregate Fair Market Value of the equity Interests of the Partnership as of the date such Performance Class B Interest is granted and, notwithstanding Section 4.07(c), shall have a Benchmark Amount equal to the sum of (x) the Benchmark Component and (y) 2.00x the amount of all Capital Contributions (if any) made on or after the Effective Date. The Performance Class B Interests shall vest only upon a Change in Control (as defined in the applicable Award Agreement) that occurs within seven (7) years following the Effective Date, subject to the holder’s continuous employment with Calpine or any of its subsidiaries through the date of such Change in Control; provided that, in the event of such a Change in Control arising from a transaction or series of transactions in which ECP directly or indirectly Transfers to a Third Party securities of Parent possessing less than 100% of the total combined voting power of the securities of Parent beneficially owned, directly or indirectly, in the aggregate by ECP as of the Effective Date (such combined voting power as of the Effective Date, the “ECP Aggregate Ownership”), then only a portion of the Performance Class B Interests held by each Limited Partner shall vest, with such portion equal to the percentage of the ECP Aggregate Ownership directly or indirectly Transferred by ECP in such Change in Control, and the remainder of such Limited Partner’s Performance Class B Interests shall be forfeited upon such Change in Control without payment therefor. Any unvested Performance Class B Interests shall be forfeited on the day after the seventh (7th) anniversary of the Effective Date without payment therefor. The allocation of the Performance Class B Interests among 

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the employees of Calpine shall be made by the Chief Executive Officer of Calpine, with the approval of the General Partner.
                                                       ARTICLE V.
DISTRIBUTIONS, REDEMPTIONS AND ALLOCATIONS 
5.01    Distributions. Subject to Sections 5.02, 5.03, 5.04, and 5.06, Available Cash will be applied or distributed to the Partners in accordance with the provisions of this Section 5.01 solely at the discretion of the General Partner, as follows:
(a)    first, to the Class A Partners, pro rata in accordance with their respective amounts of Unreturned Capital, until each such Partner’s Unreturned Capital is reduced to zero; and
(b)    second, among all of the Limited Partners in accordance with their respective Percentage Interests as of the date of such distribution;
provided that, except for distributions pursuant to Section 5.03, any distributions with respect to any Percentage Interests that are not vested pursuant to the applicable Award Agreement shall not be distributed to such holder pursuant to this Section 5.01(b) and shall be held by the Partnership in a segregated money market account (separate from and not commingled with the general funds of the Partnership) and shall be credited with interest that accrues in accordance with the terms of such account. Any such amount with respect to any unvested Percentage Interests (including any interest with respect thereto) shall be distributed to the holder of such Percentage Interest upon the vesting of such Percentage Interest; provided that, if any such unvested Percentage Interest is forfeited or is otherwise cancelled or ceases to remain outstanding prior to vesting in accordance with the terms of the relevant Award Agreement, then such amount (including any interest with respect thereto) shall be distributable to the Partners pursuant to this Section 5.01.
5.02    Benchmark Amounts; Other Adjustments. Notwithstanding anything to the contrary in Section 5.01, no distribution (other than any tax distribution pursuant to Section 5.03) shall be made to any Class B Partner with respect to any series of Class B Interests until the aggregate distributions made to all Partners (or, in the case of the Performance Class B Interests, to the Class A Partner) pursuant to Section 5.01 (including pursuant to the immediately following sentence) from the date of issuance of such series equals the Benchmark Amount of such series. An amount equal to the amount of any reduction in distributions to the Class B Partners resulting from the application of the foregoing sentence (i.e., the incremental amount that the Class B Partners would have otherwise been distributed with respect to a series of Class B Interests) shall be distributed, in accordance with Section 5.01(b), to all of the Limited Partners, including the Class B Partners with respect to any series of Class B Interests with a lower Benchmark Amount than that of the series with respect to which each Class B Partner’s distributions were reduced and which would otherwise be entitled to participate in such distribution pursuant to Section 5.01(b), taking into account the application of the first sentence of this Section 5.02.
5.03    Tax Distributions. Notwithstanding Sections 5.01 or 5.02 hereof, to the extent the General Partner determines that the Partnership has Available Cash, the Partnership shall make 

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quarterly distributions to each Partner in an amount equal to such Partner’s Assumed Tax Liability (if any); provided that if the amount of Available Cash is not sufficient to make the foregoing payments in full, the amount that is available will be distributed among the Partners in the same proportion as if the full amount were available. Distributions made pursuant to this Section 5.03 will be treated as advances of distributions to be made under Sections 5.01, 5.02 and 11.02 of this Agreement and will be credited against and will reduce the next future distributions to be made to each Partner under Sections 5.01, 5.02 and 11.02 of this Agreement.
5.04    Distributions in Error. Any distributions pursuant to this Article V made in error or in violation of Section 18-607(a) of the Act, will, upon demand by the General Partner, be returned to the Partnership.
5.05    Allocations.
(a)    Profits and Losses. Profits and Losses will be determined and allocated with respect to each Fiscal Year of the Partnership as of the end of such Fiscal Year, at such times as the Partnership assets are revalued in accordance with the definition of Gross Asset Value and at such other times as determined appropriate by the General Partner. Subject to the other provisions of this Article V, an allocation to a Partner of a share of Profits or Losses will be treated as an allocation of the same share of each item of income, gain, loss or deduction that is taken into account in computing those Profits or Losses. Subject to the other provisions of this Article V, for purposes of adjusting the Capital Accounts of the Partners, the Profits and Losses for any Fiscal Year or other period will be allocated among the Partners in a manner such that the Adjusted Capital Account of each Partner immediately after making such allocation is, as nearly as possible, equal (proportionately) to the distributions that would be made to such Partner pursuant to Section 11.02(c)(iii) if the Partnership were dissolved, its affairs wound up and its assets sold for cash equal to their Gross Asset Value, all Partnership liabilities were satisfied (limited with respect to each Nonrecourse Liability to the Gross Asset Value of the asset securing such liability), and the net assets of the Partnership were distributed in accordance with Section 11.02(c)(iii) to the Partners immediately after making such allocation (for this purpose treating all Interests held by all Partners as being 100% vested).
(b)    Regulatory Allocations. Notwithstanding the foregoing provisions of Section 5.05(a), the following special allocations will be made in the following order of priority:
(i)    If there is a net decrease in Partnership Minimum Gain during a Partnership taxable year, then each Partner will be allocated items of Partnership income and gain for such taxable year (and, if necessary, for subsequent years) in an amount equal to such Partner’s share of the net decrease in Partnership Minimum Gain, determined in accordance with Treasury Regulations Section 1.704-2(g)(2). This Section 5.05(b)(i) is intended to comply with the minimum gain chargeback requirement of Treasury Regulations Section 1.704-2(f) and will be interpreted consistently therewith.
(ii)    If there is a net decrease in Partner Minimum Gain attributable to a Partner Nonrecourse Debt during any Partnership taxable year, each Partner who 

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has a share of the Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5), will be specially allocated items of Partnership income and gain for such taxable year (and, if necessary, subsequent years) in an amount equal to such Partner’s share of the net decrease in Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in a manner consistent with the provisions of Treasury Regulations Section 1.704-2(g)(2). This Section 5.05(b)(ii) is intended to comply with the partner nonrecourse debt minimum gain chargeback requirement of Treasury Regulations Section 1.704-2(i)(4) and will be interpreted consistently therewith.
(iii)    If any Partner unexpectedly receives an adjustment, allocation, or distribution of the type contemplated by Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of income and gain will be allocated to all such Partners (in proportion to the amounts of their respective deficit Adjusted Capital Accounts) in an amount and manner sufficient to eliminate the deficit balance in the Adjusted Capital Account of such Partner as quickly as possible, provided that an allocation pursuant to this Section 5.05(b)(iii) will be made if and only to the extent that such Partner would have an Adjusted Capital Account deficit after all other allocations provided for in this Article V have been tentatively made as if this Section 5.05(b)(iii) were not in this Agreement. It is intended that this Section 5.05(b)(iii) qualify and be construed as a “qualified income offset” within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(d).
(iv)    If the allocation of Losses to a Partner as provided in Section 5.05(a) hereof would create or increase an Adjusted Capital Account deficit, there will be allocated to such Partner only that amount of Losses as will not create or increase an Adjusted Capital Account deficit. The Losses that would, absent the application of the preceding sentence, otherwise be allocated to such Partner will be allocated to the other Partners in accordance with their relative positive Adjusted Capital Account balances, subject to the limitations of this Section 5.05(b)(iv).
(v)    To the extent that an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) or, as the result of a distribution to a Partner in complete liquidation of its Interest, Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts will be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such gain or loss will be specially allocated to the Partners in accordance with their Percentage Interests in the Partnership in the event that Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Partners to whom such distribution was made in the event that Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.
(vi)    The Nonrecourse Deductions for each taxable year of the Partnership will be allocated to the Partners in proportion to their respective Percentage Interests.

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(vii)    The Partner Nonrecourse Deductions will be allocated each year to the Partner that bears the economic risk of loss (within the meaning of Treasury Regulations Section 1.752-2) for the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable.
(viii)    The allocations set forth in Sections 5.05(b)(i) through (vii) hereof (the “Regulatory Allocations”) are intended to comply with certain requirements of Treasury Regulations Sections 1.704-1(b) and 1.704-2(i). It is the intent of the Partners that, to the extent possible, all Regulatory Allocations will be offset either with other Regulatory Allocations or with special allocations of other items of Partnership income, gain, loss, credit or deduction pursuant to this Section 5.05(b)(viii). Therefore, notwithstanding Section 5.05(a), the General Partner will make such offsetting special allocations of Partnership income, gain, loss or deduction so that, to the extent possible, the net amount of such allocations of other items pursuant to this Section 5.05(b)(viii) and the Regulatory Allocations to each Partner will be equal to the net amount that would have been allocated to each such Partner if the Regulatory Allocations had not occurred.
(c)    Tax Allocations.
(i)    Except as provided in Section 5.05(c)(ii) hereof, for income tax purposes under the Code and the Treasury Regulations, each Partnership item of income, gain, loss and deduction will be allocated among the Partners as its correlative item of “book” income, gain, loss or deduction is allocated pursuant to this Article V.
(ii)    Tax items with respect to any Partnership asset that is contributed to the Partnership with a Gross Asset Value that varies from its tax basis in the hands of the contributing Partner immediately preceding the contribution will be allocated between the Partners for income tax purposes pursuant to the Treasury Regulations promulgated under Code Section 704(c) so as to take into account such variation. The Partnership will account for such variation under any method approved under Code Section 704(c) and the applicable Treasury Regulations. If the Gross Asset Value of any Partnership asset is adjusted pursuant to the definition of “Gross Asset Value” herein, subsequent allocations of income, gain, loss, deduction and credit with respect to such Partnership asset will take account of any variation between the adjusted basis of such Partnership asset for federal income tax purposes and its Gross Asset Value in a manner consistent with Code Section 704(c) and the Treasury Regulations promulgated thereunder. Allocations pursuant to this Section 5.05(c)(ii) are solely for purposes of federal, state and local taxes and will not affect, or in any way be taken into account in computing, any Partner’s Capital Account or share of Profits, Losses and any other items or distributions pursuant to any provision of this Agreement.
(d)    Other Provisions.
(i)    For any Fiscal Year or other period during which any part of an Interest in the Partnership is transferred between Partners or to another person, the portion 

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of the Profits, Losses and other items of income, gain, loss, deduction and credit that are allocable with respect to such part of an Interest in the Partnership will be apportioned between the transferor and the transferee under any method allowed pursuant to Section 706 of the Code and the applicable Treasury Regulations as determined in good faith by the General Partner.
(ii)    In the event that the Code or any Treasury Regulations require allocations of items of income, gain, loss, deduction or credit different from those set forth in this Article V, the General Partner is hereby authorized to make new allocations in reliance on the Code and such Treasury Regulations, and no such new allocation will give rise to any claim or cause of action by any Partner.
(iii)    For purposes of determining a Partner’s proportional share of the Partnership’s “excess nonrecourse liabilities” within the meaning of Treasury Regulations Section 1.752-3(a)(3), each Partner’s interest in Profits will be equal to its Percentage Interest.
(iv)    The Partnership will follow the proposed Treasury Regulations that were issued on May 24, 2005 regarding the issuance of partnership equity for services (including Prop. Treas. Reg. §§1.83-3, 1.83-6, 1.704-1, 1.706-3, 1.721-1 and 1.761-1), as such regulations may be subsequently amended (the “Proposed Regulations”), upon the issuance of Class B Interests issued for services rendered or to be rendered to or for the benefit of the Partnership or a subsidiary thereof, until final Treasury Regulations or other succeeding legal authorities regarding these matters are issued. In furtherance of the foregoing, the definition of Capital Accounts and Gross Asset Value, and the allocations of Profits and Losses of the Partnership set forth in this Agreement, will be made in a manner that is consistent with the Proposed Regulations. The General Partner is expressly authorized by each Partner to elect to apply the safe harbor set forth in the Proposed Regulations if the provisions of the Proposed Regulations and the proposed Revenue Procedure described in IRS Notice 2005-43, or provisions similar thereto, are adopted as final (or temporary) Treasury Regulations. If the General Partner determines that the Partnership should make such election, the General Partner is hereby authorized to amend this Agreement without the consent of any other Partner to provide that (A) the Partnership is authorized and directed to elect the safe harbor, (B) the Partnership and each of its Partners (including any person to whom a partnership interest is transferred in connection with the performance of services) will comply with all requirements of the safe harbor with respect to all Class B Interests transferred in connection with the performance of services while such election remains in effect and (C) the Partnership and each of its Partners will take all actions necessary, including providing the Partnership with any required information, to permit the Partnership to comply with the requirements set forth or referred to in the applicable Proposed Regulations for such election to be effective until such time (if any) as the General Partner determines, in its discretion, that the Partnership should terminate such election. The General Partner is further authorized to amend this Agreement to the extent the General Partner determines in its discretion that such modification is 

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necessary or desirable as a result of the issuance of such Regulations relating to the tax treatment of the transfer of a partnership interest in connection with the performance of services. Notwithstanding anything to the contrary in this Agreement, each Partner expressly confirms and agrees that it will be legally bound by any such amendment.
(e)    Valuation; Revaluation. For tax purposes only, valuations will be made by the General Partner or by independent third parties appointed by the General Partner and deemed qualified by the General Partner to render an opinion as to the value of the Partnership’s assets, using such methods and considering such information relating to the investments, assets and liabilities of the Partnership as the General Partner or independent third party, as the case may be, may determine in the reasonable discretion of the General Partner.
5.06    Withholding. The Partnership may withhold in connection with distributions, allocations or portions thereof (or any other amounts that are withholdable in respect of Awards or otherwise in respect of a Partner hereunder) if it is required to do so by any applicable rule, regulation, or law, and each Partner hereby authorizes the Partnership to withhold from or pay on behalf of or with respect to such Partner any amount of federal, state, local or foreign taxes that the General Partner determines that the Partnership is required to withhold or pay with respect to any such Partner pursuant to this Agreement (including any amounts payable in respect of Awards hereunder and including any “imputed underpayment” within the meaning of Section 6232 of the Code). Any amounts withheld or paid pursuant to this Section 5.06 will be treated as having been distributed to such Partner. To the extent that the cumulative amount of such withholding or payments exceeds the amount actually withheld from distributions to which such Partner would otherwise then have been entitled, the amount of such excess will be considered a loan from the Partnership to such Partner, with interest accruing at the Prime Rate plus two percent. Such loan may, at the option of the General Partner, be satisfied (a) out of the next distributions to which such Partner would otherwise be subsequently entitled, or (b) by the immediate payment in cash by such Partner to the Partnership of such excess amount. The General Partner, on behalf of the Partnership, may take any other action it determines to be necessary or appropriate in connection with any obligation or possible obligation to impose withholding pursuant to any tax law or to pay any amounts on account of tax with respect to a Partner. Each Partner hereby unconditionally and irrevocably grants to the Partnership a security interest in such Partner’s Interests to secure such Partner’s obligation to pay to the Partnership any amounts required to be paid by that Partner pursuant to this Section 5.06. Each Partner will take such actions as the Partnership may request in order to perfect or enforce the security interest created hereunder.
                                                                  ARTICLE VI.     
TRANSFERS OF INTERESTS
6.01    Transfers.
(a)    Restricted and Unrestricted Transfers. The General Partner and Parent may each Transfer all or any portion of its Interest from time to time to any Person, including to any Affiliate. None of the Class B Partners may Transfer all or any portion of their respective Interests without the prior written approval of the General Partner in its sole discretion, 

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except in the case of Transfers effected pursuant to and in accordance with this Section 6.01 and Sections 6.02, 6.03, 6.05 and 6.06 of this Agreement (including pursuant to the power of attorney in Section 6.08) or for bona fide estate planning purposes. Each Class B Partner further agrees that, in connection with any Transfer by such Class B Partner (including any Transfer approved by the General Partner), such Class B Partner will, if requested by the General Partner, deliver to the Partnership an opinion of counsel, in form and substance reasonably satisfactory to the General Partner and counsel for the Partnership, to the effect that such Transfer is not in violation of this Agreement, the Securities Act or the securities laws of any state.
(b)    Prohibited Tax Consequences. No Transfer may be effected by any Class B Partner if such Transfer would cause the Partnership to be treated as an association or “publicly traded partnership” taxable as a corporation for federal income tax purposes. In addition, unless otherwise consented to by the General Partner, no Transfer may be effected by any Class B Partner if such Transfer would cause the Partnership not to be able to qualify for the safe harbor contained in Treasury Regulations Section 1.7704-1(h) and if there is a reasonable risk (as determined by the General Partner) that the Partnership may be treated as a “publicly traded partnership” taxable as a corporation for US federal income tax purposes.
(c)    VOID TRANSFERS. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, ANY PURPORTED TRANSFER IN VIOLATION OF ANY OF THE PROVISIONS OF THIS ARTICLE VI WILL BE NULL AND VOID AND WILL HAVE NO FORCE OR EFFECT.
(d)    Admission of Transferees as Partners. Until such time, if any, as a Transferee is admitted to the Partnership as a Substitute Partner pursuant to Section 6.01(e): provided such Transfer is permitted under the terms of this Agreement, (i) such Transferee shall receive only, to the extent Transferred, the Economic Interest associated with the Interest so Transferred, and (ii) such Transferee shall not be entitled or enabled to exercise any other rights or powers of a Partner, such other rights remaining with the Transferring Partner (even if such Partner has transferred such Partner’s entire Economic Interest in the Partnership to one or more Transferees). If any Transferee desires to make a further assignment of any Economic Interest in the Partnership, such Transferee shall be subject to all of the provisions of this Agreement to the same extent and in the same manner as any Partner desiring to make such a Transfer.
(e)    Substitute Partners. A Transferee shall become a Substitute Partner only if and when each of the following conditions are satisfied: (i) the General Partner consents to such admission and (ii) the Transferee (A) provides such information concerning the Transferee’s financial capacities and investment experience as may be reasonably requested by the General Partner, (B) agrees to become a party to this Agreement as a Partner, and (C) executes a joinder in the form attached as Exhibit B hereto acknowledging that such Transferee agrees to be bound by the terms hereof, together with such other written instruments of Transfer in a form reasonably satisfactory to the General Partner. Upon admission of any Substitute Partner, the Transferor shall (x) cease to be a Partner with respect to the portion of the Interest so Transferred to the extent such obligations are Transferred 

24

and assumed, (y) be released from any obligations arising after the date of such Transfer with respect to the portion of the Interest so Transferred, and (z) Exhibit A shall be amended to reflect the name and address of such Substitute Partner and to eliminate, if necessary, the name and address of the predecessor of such Substitute Partner and to reflect the Interest of such Substitute Partner and to eliminate or adjust, if necessary, the Interest of the predecessor of such Substitute Partner. Notwithstanding the foregoing, any Person that purchases any Interest pursuant to and in accordance with Sections 6.02, 6.03, or 6.06 shall be deemed Substitute Partners without regard to the foregoing.
6.02    Drag-Along Rights.
(a)    General. If, at any time, (i) Parent elects to consummate a Transfer to any Person or Persons (other than to any Affiliate) (collectively, a “Drag-Along Transferee”) in a bona fide arm’s-length transaction or series of related transactions (including by way of a purchase agreement, tender offer, merger or other business combination transaction or otherwise) of Interests consisting of more than 50% of the aggregate Class A Interests held by Parent on the Effective Date, (ii) ECP elects to consummate a Transfer to any Drag-Along Transferee in a bona fide arm’s-length transaction or series of related transactions (including by way of a purchase agreement, tender offer, merger or other business combination transaction or otherwise) of more than 50% of its aggregate interest in Parent as of the Effective Date or (iii) ECP elects to consummate a Transfer to any Drag-Along Transferee in a bona fide arm’s-length transaction or series of related transactions (including by way of a purchase agreement, tender offer, merger or other business combination transaction or otherwise) of interest in Parent such that, following such Transfer, ECP (directly or indirectly) is no longer the largest holder of interests in Parent (a “Drag-Along Sale”), Parent or ECP, as applicable, may, subject to the other provisions of this Section 6.02, require each other Limited Partner (including each Class B Partner) to Transfer a percentage of its Interests (and solely in the case of a Class B Partner, its vested Class B Interests) equal to the percentage of the aggregate Class A Interests of Parent or ECP’s (direct or indirect) interests in Parent, as applicable, proposed to be Transferred (such rights arising under clauses (i) through (iii) of this Section 6.02(a) being referred to as “Drag-Along Rights”). Each Limited Partner or Class B Partner Transferee required to Transfer its Interests pursuant to this Section 6.02 shall be referred to herein as a “Drag-Along Co-Seller”. In connection with any Drag-Along Sale:
(i)    subject to Section 6.02(b), each Drag-Along Co-Seller will transfer the applicable percentage of its Interests (and solely in the case of a Class B Partner, its vested Class B Interests) on substantially the same terms (other than aggregate price) and conditions applicable to, and, for the same type of consideration payable to, Parent or ECP, as applicable, at the price calculated in accordance with Section 6.02(a)(ii);
(ii)    the aggregate purchase price payable for the Interests purchased by a Drag-Along Transferee will be allocated among Parent or ECP, as applicable, and Drag-Along Co-Sellers based upon the Hypothetical Value of such Partner’s Interests so Transferred; and

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(iii)    any indemnification or other obligations will be apportioned pro rata as among Parent or ECP, as applicable, and the Drag-Along Co-Sellers, other than with respect to representations, warranties and covenants made individually by a Partner or other Drag-Along Co-Seller (e.g., representations as to title or authority or representations qualified by the individual knowledge of such or other Drag-Along Co-Seller).
(b)    Terms of Sale. In connection with a Drag-Along Sale, the Drag-Along Co-Sellers will execute such documents, and make such representations, warranties, covenants and indemnities, as are executed and made by Parent or ECP, as applicable. At the request of the Drag-Along Transferee, all or a portion of the purchase price payable to the Partners and the other Drag-Along Co-Sellers in connection with a Drag-Along Sale may be held back in an escrow account for the purpose of satisfying such Partners’ and such other Drag-Along Co-Sellers’ obligations under the applicable documents, including indemnity obligations. In connection with a Drag-Along Sale, the Drag-Along Co-Sellers will also (A) consent to and raise no objections against the Drag-Along Sale or the process pursuant to which the Drag-Along Sale was arranged, (B) waive any dissenter’s rights and other similar rights, (C) take all actions reasonably required or desirable or requested by Parent or ECP, as applicable, to consummate such Drag-Along Sale and (D) comply with the terms of the documentation relating to the Drag-Along Sale.
(c)    Drag-Along Notice. The rights set forth in this Section 6.02 will be exercised by Parent or ECP, as applicable, giving written notice (the “Drag-Along Notice”) to each other Partner, at least 30 days prior to the date on which Parent or ECP, as applicable, expect to consummate the Drag-Along Sale. In the event that the material terms and/or conditions set forth in the Drag-Along Notice are thereafter amended in any material respect, Parent or ECP, as applicable, will give written notice (an “Amended Drag-Along Notice”) of the amended terms and conditions of the proposed Transfer to each other Partner. Each Drag-Along Notice and Amended Drag-Along Notice will set forth: (i) the name and address of the Drag-Along Transferee, (ii) the proposed amount and form of consideration and terms and conditions of payment offered by the Drag-Along Transferee, and (iii) the material terms of the proposed transaction including the expected closing date of the transaction.
(d)    Upstream Sale. In addition to the foregoing, the provisions of this Section 6.02 will be interpreted so as to apply to any indirect sale, transfer, exchange or other disposition of Interests by Parent or ECP to a Drag-Along Transferee.
6.03    Tag-Along Rights.
(a)    General. If (i) Parent elects to consummate a Transfer to any Person or Persons (other than to any Affiliate) (collectively, a “Tag-Along Transferee”) in a bona fide arm’s-length transaction or series of transactions (including by way of a purchase agreement, tender offer, merger or other business combination transaction or otherwise) consisting of more than 50% of the aggregate Interests held by Parent on the Effective Date, (ii) ECP elects to consummate a Transfer to any Tag-Along Transferee in a bona fide arm’s-length transaction or series of related transactions (including by way of a purchase agreement, tender offer, 

26

merger or other business combination transaction or otherwise) of more than 50% of its aggregate interest in Parent as of the Effective Date or (iii) ECP elects to consummate a Transfer to any Tag-Along Transferee in a bona fide arm’s-length transaction or series of related transactions (including by way of a purchase agreement, tender offer, merger or other business combination transaction or otherwise) of interest in Parent such that, following such Transfer, ECP (directly or indirectly) is no longer the largest holder of interests in Parent (a “Tag-Along Sale”), then, subject to the other provisions of this Section 6.03(a), each Partner may participate in the proposed Transfer by Parent or ECP, as applicable, to the Tag-Along Transferee. Each Partner, other than Parent, shall be referred to herein as a “Tag-Along Participant” solely to the extent that such Partner is entitled to participate in such proposed Transfer pursuant to this Section 6.03(a).
(i)    Subject to Section 6.03(b), each Tag-Along Participant may participate in such transaction by Transferring to the Tag-Along Transferee a percentage of its Interests (and solely in the case of a Class B Partner, its vested Class B Interests) equal to the percentage of the aggregate Class A Interests of Parent or ECP’s (direct or indirect) interest in Parent, as applicable, proposed to be Transferred (such participation rights being hereinafter referred to as “Tag-Along Rights”).
(ii)    The aggregate purchase price payable for the Interests purchased by a Tag-Along Transferee will be allocated among Parent or ECP, as applicable, and the Tag-Along Participants participating in such Tag-Along Sale based upon the Hypothetical Value of such Partner’s or such other Tag-Along Participant’s Interests so Transferred.
(iii)    Any indemnification or other obligations will be apportioned pro rata as among Parent or ECP, as applicable, and the Tag-Along Participants, other than with respect to representations, warranties and covenants made individually by a Partner or other Tag-Along Participant (e.g., representations as to title or authority or representations qualified by the individual knowledge of such Partner or other Tag-Along Participant).
(b)    Tag-Along Notice. At least five days prior to Parent or ECP, as applicable, making any Transfer which gives rise to Tag-Along Rights pursuant to this Section 6.03, Parent or ECP, as applicable, will give written notice (a “Tag-Along Notice”) to each potential Tag-Along Participant, setting forth in reasonable detail the terms and conditions of such proposed Transfer, including (i) the name and address of the Tag-Along Transferee, (ii) the proposed amount and form of consideration and terms and conditions of payment offered by the Tag-Along Transferee, and (iii) the material terms of the proposed transaction including the expected closing date of the transaction. In the event that the terms and/or conditions set forth in the Tag-Along Notice are thereafter amended in any material respect, Parent or ECP, as applicable, will give written notice (an “Amended Tag-Along Notice”) of the amended terms and conditions of the proposed Transfer to each other Partner. Those Tag-Along Participants opting to exercise their Tag-Along Rights will give written notice 

27

to Parent or ECP, as applicable, within ten Business Days after receipt of the Tag-Along Notice, or, if later, within five Business Days after receipt of the most recent Amended Tag-Along Notice (but in any event prior to the closing date of the proposed Transfer as specified in such Tag-Along Notice or Amended Tag-Along Notice) of their intention to participate in the proposed Transfer by Parent or ECP, as applicable, to the Tag-Along Transferee on the terms and conditions set forth in such Tag-Along Notice or the most recent Amended Tag-Along Notice. Any Partner or other Tag-Along Participant that has not notified Parent or ECP, as applicable, of its intent to exercise Tag-Along Rights within the period of time specified in this Section 6.03(b) will be conclusively deemed to have elected not to exercise such Tag-Along Rights with respect to the Transfer contemplated by such notice.
(c)    Terms of Sale. In connection with a Tag-Along Sale, each Tag-Along Participant will execute such documents, and make such representations, warranties, covenants and indemnities, as are executed and made by Parent or ECP, as applicable. At the request of the Tag-Along Transferee, all or a portion of the purchase price payable to the Partners or the other Tag-Along Participants in connection with a Tag-Along Sale may be held back in an escrow account for the purpose of satisfying such Partners’ or other Tag-Along Participants’ obligations under the applicable documents, including indemnity obligations. In connection with a Tag-Along Sale, each Tag-Along Participant will also (A) consent to and raise no objections against the Tag-Along Sale or the process pursuant to which the Tag-Along Sale was arranged, (B) waive any dissenter’s rights and other similar rights, (C) take all actions reasonably required or desirable or requested by Parent or ECP, as applicable, to consummate such Tag-Along Sale and (D) comply with the terms of the documentation relating to the Tag-Along Sale.
(d)    Upstream Sale. In addition to the foregoing, the provisions of this Section 6.03 will be interpreted so as to apply to any indirect sale, transfer, exchange or other disposition of Interests by Parent or ECP to a Tag-Along Transferee.
6.04    Pledge of Interests. In connection with any indebtedness of the Partnership, the General Partner shall be authorized to cause each Partner to pledge, hypothecate, mortgage, assign, transfer or grant security interests in or other liens on the Partners’ Interests. Each Partner agrees to, if requested by the General Partner, execute and deliver such consent letters and estoppel certificates as are reasonably and customarily requested by lenders and any and all reasonable and customary ancillary documents thereto; provided, however, that no such pledge, hypothecation, mortgage, assignment, transfer or grant shall convey to the transferee recourse against any Partner.
6.05    Repurchase Rights.
(a)    Repurchase Right. Except to the extent provided in any employment agreement or Award Agreement, in the event that any Class B Partner (i) experiences a termination of employment or termination of other services with the Partnership or its Affiliates for any reason or (ii) engages in a purported Transfer in violation of the provisions of this Article VI (each, a “Repurchase Trigger”), then (A) the unvested Interests of such Class B Partner shall be forfeited without payment therefor and (B) at any time and from time to time during the period commencing on the date of such Repurchase Trigger and 

28

ending on the later of (I) the six-month anniversary of the Repurchase Trigger and (II) the one-month anniversary of the date of expiration of any holding period that would prohibit the exercise of rights pursuant to this Section 6.05(a), as determined by the General Partner in good faith (such later date, the “Initial Repurchase Deadline”), (x) the Partnership will have the right, but not the obligation, to redeem the vested Class B Interests of such employee or other service provider (taking into account any acceleration of vesting that occurs in connection with such Repurchase Trigger pursuant to the applicable Award Agreement) in exchange for such number of Calpine Shares with a Fair Market Value equal in the aggregate to the Fair Market Value (if any) of the Interests (or portion thereof) to be redeemed on the date of the redemption (the “Partnership Redemption Right”), and (y) following any redemption pursuant to the foregoing clause (x), the Partnership shall have the right, but not the obligation, to cause Calpine to purchase, and if the Partnership exercises such right, such Class B Partner will be required to sell to Calpine, any or all of the Calpine Shares so received by such Class B Partner, at a price equal to the applicable Repurchase Price with respect to the Interests in exchange for which the Class B Partner received such Calpine Shares to be purchased on the date of the purchase (the “Calpine Repurchase Right”). The rights and obligations applicable to a holder of Class B Interests under this Agreement shall apply mutatis mutandis to any Class B Partner who receives Calpine Shares pursuant to a Partnership Redemption Right, taking into account the difference in tax consequences of the Class B Interests and the Calpine Shares. For the avoidance of doubt, (1) the Partnership Redemption Right and the Calpine Repurchase Right, respectively, may be exercised more than once, and, any Calpine Shares subject to purchase hereunder may be purchased at different Repurchase Prices, (2) the Partnership, in its sole discretion, may elect to redeem all or any portion of such Interests, and (3) the Partnership, in its sole discretion, may cause Calpine to purchase all or any portion of such Calpine Shares, including purchasing only such Calpine Shares that are subject to purchase at a lower Repurchase Price. Notwithstanding the foregoing, in no event will the Partnership redeem any Interests pursuant to the Partnership Redemption Right prior to the day immediately following the six-month anniversary of the date such Interests first became vested, and the Partnership Redemption Right and the Calpine Repurchase Right shall be subject to the terms of any employment agreement or Award Agreement. Each Partner agrees that Calpine shall be deemed a third-party beneficiary of, and shall be entitled to enforce, this Section 6.05.
(b)    In the event that the Partnership (or its assignee) exercises the Calpine Repurchase Right pursuant to Section 6.05(a) and, within the six (6) month period following the date that the Partnership pays the Class B Partner the Repurchase Price, the stock of Calpine or its affiliates becomes readily tradeable on an established securities market pursuant to an IPO or a Tag-Along Sale occurs, within ten (10) business days following the date of the IPO or the Tag-Along Sale, as applicable, the Partnership shall pay such Class B Partner an amount equal to the product of (A) the excess of (x) the per share price of the Partnership’s common shares or other equity interests, as applicable, as of the date of the IPO or the Tag-Along Sale, as applicable, over (y) the amount the Partnership paid the Class B Partner with respect to each Class B Interest purchased pursuant to the Calpine Repurchase Right and (B) the number of Class B Interests purchased pursuant to the Calpine Repurchase Right up to, in the case of a Tag-Along Sale, the number of Class B Interests that the Class 

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B Partner would have been entitled to sell in connection with the Tag-Along Sale. In the event of two or more Tag-Along Sales during any such period, the foregoing sentence shall apply to each such sale, provided that the number Class B Interests taken into account in the aggregate under Clause (B) above shall not exceed the number of shares with respect to which the Partnership exercises its Calpine Repurchase Right.
(c)    Form of Consideration. Subject to Section 6.05(f), Calpine may pay the Repurchase Price for such Calpine Shares by delivery of funds deposited into an account designated by such Class B Partner, a bank cashier’s check, a certified check or a company check of Calpine for the Repurchase Price. Notwithstanding anything to the contrary in this Agreement, Calpine may deduct and withhold from the amounts otherwise payable pursuant to this Agreement such amounts as necessary to comply with the Code, or any other provision of applicable law, with respect to the making of such payment.
(d)    Release. As a condition of any Transfer of Interests or repurchase of Calpine Shares under this Section 6.05, the Class B Partner will be required to execute a release in favor of the Partnership and its Partners and Affiliates, releasing the Partnership and its Partners and Affiliates from all liabilities to such Class B Partner.
(e)    Breach of Restrictive Covenants. Notwithstanding anything to the contrary herein, each Class B Partner agrees that in the event of the breach by such Class B Partner of any restrictive covenants contained in this Agreement or any employment, consulting or other agreement between such Class B Partner and the Partnership or any Affiliate thereof, in addition to any other remedy which may be available at law or in equity, Calpine will be entitled to reimbursement by such Class B Partner, and such Class B Partner shall be obligated to reimburse Calpine, for the aggregate Repurchase Price of any Calpine Shares purchased by Calpine in respect of such Class B Partner.
(f)    Repurchase Disability.
(i)    Notwithstanding anything to the contrary herein, except as otherwise provided by Section 6.05(f)(iii), Calpine shall not be permitted to purchase any Calpine Shares upon exercise of the Calpine Repurchase Right if the General Partner determines that: (A) the purchase of such Calpine Shares would render Calpine or its subsidiaries unable to meet their Obligations in the ordinary course of business taking into account any pending or proposed transactions, capital expenditures or other budgeted cash outlays by Calpine or any of its subsidiaries, including any proposed acquisition of any other entity by Calpine or any of its subsidiaries, (B) Calpine is prohibited from purchasing Calpine Shares by applicable law restricting the purchase by an entity of its own equity securities, or (C) the purchase of Calpine Shares would constitute a breach of, default, or event of default under, or is otherwise prohibited by, the terms of any loan agreement or other agreement or instrument to which Calpine or any of its subsidiaries is a party (the “Financing Documents”) or Calpine or any of its subsidiaries is not able to obtain the requisite consent of any of its senior lenders to effect the purchase of the Interests. The events described in (A) through (C) above each constitute a “Repurchase Disability.”

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(ii)    Except as otherwise provided in Section 6.05(f)(iii), in the event a Repurchase Disability shall occur, the Partnership shall notify in writing such Class B Partner (such notice, a “Disability Notice”). The Disability Notice shall specify the nature of the Repurchase Disability. The Partnership shall thereafter cause Calpine to purchase the Calpine Shares described in the Disability Notice as soon as reasonably practicable after all Repurchase Disabilities cease to exist (or Calpine may elect, but shall have no obligation, to cause its nominee to purchase such Calpine Shares while any Repurchase Disabilities continue to exist). In the event that the Calpine suspends its obligations to purchase such Calpine Shares pursuant to a Repurchase Disability, (A) the Partnership shall provide written notice to such Class B Partner as soon as practicable after all Repurchase Disabilities cease to exist (the “Reinstatement Notice”); (B) the Repurchase Price, if applicable, of such Calpine Shares shall be determined as of the date the Reinstatement Notice is delivered to such Class B Partner; and (C) the redemption shall occur on a date specified by the Partnership within ten days following the later of (x) the date the Reinstatement Notice is delivered to such Class B Partner or (y) if applicable, the date of the determination of the Repurchase Price of the Calpine Shares to be repurchased.
(iii)    Notwithstanding Sections 6.05(f)(i) and (ii), if (x) the Partnership has caused Calpine to exercise the Calpine Repurchase Right and (y) a Repurchase Disability shall occur, then, in the sole discretion of the Partnership, the Partnership may cause Calpine to purchase such Calpine Shares, and, in lieu of cash consideration, issue a promissory note to the Class B Partner in the amount of the Repurchase Price, the terms of which promissory note shall be acceptable to Calpine’s senior lenders and shall not result in a breach or violation of any of the Financing Documents. The promissory note shall (A) bear simple interest at the Prime Rate as published in the Wall Street Journal on the date such payment is due and owing from such date to the date such payment is made and (B) have such other reasonable terms and conditions as may be determined by the Partnership. All payments of interest accrued under the promissory note shall be paid only at the date of payment by Calpine of the principal amount of such promissory note.
6.06    Elective Transfer In lieu of causing Calpine to consummate a purchase of a Class B Partner’s Calpine Shares pursuant to Section 6.05, the General Partner may instead require the Class B Partner to Transfer to the Partnership, for the same aggregate consideration that would be otherwise payable in such purchase under Section 6.05, all or any portion of the Calpine Shares then held by such Class B Partner, and such Transfer shall be subject to Sections 6.05(b), (d) and (e).
6.07    IPO.
(a)    Authority. In the event that the Partnership determines to consummate an IPO, the General Partner shall have the power and authority, without any vote or consent of the Partners, to convert the Partnership to a master limited partnership structure, incorporate the Partnership, or take such other actions as it may deem advisable, including (i) creating one or more subsidiaries of the newly incorporated corporation (or other form 

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of entity selected by the General Partner) and transferring to such subsidiaries any or all of the assets of the Partnership (including by merger) or (ii) causing the Partners to exchange their Interests for common shares of the newly-formed corporation (or for limited partnership interests or other equity interests, as applicable, in such other form of entity as may be selected by the General Partner) with equivalent value (“Conversion Shares”); provided that if the Interests of Class A Partners are exchanged for Conversion Shares or cash, the Interests of Class B Partners shall be concurrently exchanged for Conversion Shares or cash to the same extent as the Class A Partners, proportionate to their respective Interests. Prior to consummating any such transaction, the General Partner shall approve the proposed forms of a certificate of incorporation, by-laws, stockholders’ agreement and/or any other applicable governing documents proposed to be established for such corporation (or other entity) and its subsidiaries, if any. For the avoidance of doubt, the General Partner may, in its sole discretion in connection with any IPO, impose such customary lock-up and resale restrictions or other customary conditions on any Conversion Shares in connection with the IPO as the General Partner may deem appropriate.
(b)    Vesting of Conversion Shares. Conversion Shares issued to Class B Partners will be vested only to the extent that the related original Interests are vested on the date of such conversion (the “Conversion Date”), and vesting thereafter will continue in accordance with the schedule set forth in the respective Award Agreements.
(c)    Delivery. As promptly as practicable after the determination of the number of Conversion Shares each holder shall receive under Section 6.07 above, each holder of Interests shall deliver to the Partnership the certificate or certificates, if any, representing the Interests to be converted into Conversion Shares, duly endorsed or assigned in blank or to the Partnership (if required by it) and stating the name or names (with address) in which the certificate or certificates for the Conversion Shares, if any, are to be issued. Upon receipt of any such certificates representing the Interests, the Partnership shall issue and deliver to each holder entitled to Conversion Shares, to the place and in the name designated by such holder, a certificate or certificates, if any, for the number of Conversion Shares to which such Partner is entitled (including any fractional shares). The Person in whose name the certificate or certificates of the Conversion Shares may be issued shall be deemed to have become a holder of record on the Conversion Date unless the transfer books of the Partnership are closed on that date, in which event such Person shall be deemed to have become a holder of record on the next succeeding date on which the transfer books are open.
(d)    Approvals; Stockholders’ Agreement. The Partners agree to take all necessary and desirable actions, and to vote their Interests (or Conversion Shares, as applicable), as requested by the General Partner in connection with the consummation of those actions contemplated by this Section 6.07. In connection with the conversion of the Partnership into a corporation, such actions by the Partners shall include, without limitation, entering into a stockholders’ agreement containing provisions similar to the provisions in this Agreement, except that the stockholders’ agreement will include such customary lock-up and resale restrictions or other customary conditions in connection therewith as the General Partner may deem appropriate.

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6.08    Power of Attorney. Each Class B Partner hereby makes, constitutes and appoints the General Partner and Parent as his, her or its true and lawful attorney-in-fact for his, her or it and in his, her or its name, place, and stead and for his, her or its use and benefit, to sign, execute, certify, acknowledge, swear to, file and record any instrument that is now or may hereafter be deemed necessary by Parent in its reasonable discretion to carry out fully the provisions and the agreements, obligations and covenants of such Class B Partner in Sections 6.02, 6.03, 6.04, 6.05 and 6.06 in the event that he, she or it is required to Transfer Interests pursuant to such provisions. Each Class B Partner hereby gives such attorney-in-fact full power and authority to do and perform each and every act or thing whatsoever requisite or advisable to be done in connection with his, her or its obligations and agreements pursuant to Sections 6.02, 6.03, 6.04, 6.05 and 6.06 as fully as he, she or it might or could do himself, herself or itself, and hereby ratifies and confirms all that any such attorney-in-fact will lawfully do or cause to be done by virtue of the power of attorney granted hereby. The power of attorney granted pursuant to this Section 6.08 is a special power of attorney, coupled with an interest, and is irrevocable, and will survive the bankruptcy, insolvency, dissolution or cessation of existence of any Class B Partner.
6.09    Incapacity. Upon the Incapacity of a Partner, such Partner’s Interest shall automatically be converted to an Economic Interest, and such Partner (or its executor, administrator, trustee or receiver, if applicable) shall thereafter be deemed a Transferee of such Interests for all purposes hereunder, with the same Economic Interest as was held by such Partner, but without any other rights of a Partner, except that the General Partner may in its discretion cause the Partnership to redeem such interest on the same basis as would apply pursuant to Section 6.05.
6.10    Non-Competition; Non-Solicitation; Non-Disparagement. In consideration for (i) the issuance of any initial Interest to a Class B Partner pursuant to Section 3.01 and Section 4.07 above and/or (ii) the issuance of any additional Interest to an existing Class B Partner pursuant to Section 4.01 above, the adequacy of which such Class B Partner hereby acknowledges, such Class B Partner hereby agrees as follows:
(a)    Non-Competition. Such Class B Partner shall not, at any time during the Restricted Period, directly or indirectly engage in, have any interest in (including, without limitation, through the investment of capital or lending of money or property), or manage, operate or otherwise render any services to, any Person (whether on his or her own or in association with others, as a principal, director, manager, officer, employee, agent, representative, partner, member, security holder, consultant, advisor, independent contractor, owner, investor, participant or in any other capacity) that engages in (either directly or through any subsidiary or affiliate thereof) any business or activity in North America relating to (i) the sale or generation of electricity from natural gas renewables and geothermal resources (including retail sales of electricity) in competitive wholesale and retail power markets or (ii) any other business that constitutes more than 20% of the revenue or net operating profit of Calpine at the time (any such business or activity in clause (i) or (ii), a “Restricted Business”). Notwithstanding the foregoing, engagement in (x) a natural gas production, transportation or trading business, (y) a business that, incidental to its core business, sells wholesale power into a market and the Class B Partner is not engaged in such activity, or (z) a financial commodities trading business, shall not be considered a Restricted Business. Notwithstanding the foregoing, such Class B Partner shall be permitted to acquire a passive stock or equity interest in 

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such a business; provided that such stock or other equity interest acquired is not more than five percent of the outstanding interest in such business.
(b)    Non-Solicitation. Such Class B Partner shall not, at any time during the Restricted Period, directly or indirectly, either for himself or herself or on behalf of any other Person, (i) recruit or otherwise solicit or induce any employee, customer or supplier of Calpine or any of its subsidiaries to terminate his, her or its employment or arrangement with Calpine or such subsidiary, or otherwise change his, her or its relationship with Calpine or such subsidiary, or (ii) hire, or cause to be hired, any person who was employed by the Calpine or any of its subsidiaries at any time during the 12-month period immediately prior to the Date of Termination or who thereafter becomes employed by Calpine or any of its Subsidiaries.
(c)    Additional Class B Partner Confidentiality Obligations. Except as such Class B Partner reasonably and in good faith determines to be required in the faithful performance of such Class B Partner’s duties to the Partnership or in accordance with Section 6.10(e), such Class B Partner shall, for so long as such Class B Partner is employed by or provides services to the Partnership and thereafter, maintain in confidence and shall not directly or indirectly use, disseminate, disclose or publish, for such Class B Partner’s benefit or the benefit of any other Person, any Proprietary Information (as defined below), or deliver to any Person, any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information. Unless otherwise defined in any employment agreement, “Proprietary Information” means any confidential or proprietary information or trade secrets of or relating to the Partnership, including, without limitation, information with respect to the Partnership’s operations, processes, protocols, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, strategic business plans, technology, designs, compensation paid to employees or other terms of employment. Notwithstanding the foregoing, “Proprietary Information” shall not include (A) information that is or becomes generally available to the public other than as a result of a Person’s improper disclosure (including any disclosure by such Class B Partner or his, her or its representatives) or (B) information made available to the Class B Partner on a non-confidential basis from a person that to the best of the Class B Partner’s knowledge (after reasonable inquiry), was not otherwise prohibited from disclosing such information. Such Class B Partner’s obligation to maintain and not use, disseminate, disclose or publish, or use for such Class B Partner’s benefit or the benefit of any other Person, any Proprietary Information will survive the Date of Termination. The parties hereby stipulate and agree that as between them, the Proprietary Information identified herein is important, material and affects the successful conduct of the businesses of the Partnership (and any successor or assignee of the Partnership).
(d)    Return of Materials. Upon termination of such Class B Partner’s employment or other service relationship with the Partnership for any reason, such Class B Partner will promptly deliver to the Partnership (i) all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents that are Proprietary Information, including all physical and digital copies thereof, 

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and (ii) all other Partnership property (including, without limitation, any personal computer or wireless device and related accessories, keys, credit cards and other similar items) which is in his or her possession, custody or control.
(e)    Legal Process; Exceptions. Such Class B Partner may respond to a lawful and valid subpoena or other legal process but shall give the Partnership the earliest possible notice thereof, and shall, as much in advance of the return date as possible, make available to the Partnership and its counsel the documents and other information sought, and shall assist such counsel in resisting or otherwise responding to such process. In addition, nothing herein shall prevent any Class B Partner from reporting possible violations of federal law or regulation to, otherwise communicating with or participating in any investigation or proceeding that may be conducted by, or providing documents and other information, without notice to the Partnership, to, any governmental agency or entity (including the Department of Justice, the Securities and Exchange Commission, Congress, and any agency Inspector General), including in accordance with the provisions of and rules promulgated under Section 21F of the Exchange Act or Section 806 of the Sarbanes-Oxley Act of 2002, as each may have been amended from time to time, or any other whistleblower protection provisions of state or federal law or regulation.
(f)    Non-Disparagement. Such Class B Partner agrees not to (i) make any negative, unflattering, accusatory, or derogatory remarks about the Partnership, any of the Partnership’s products or practices, or any of the Partnership’s directors, officers, agents, representatives, partners, members, equity holders or Affiliates, either orally or in writing, at any time, or (ii) take any action that might reasonably be expected to cause damage or harm (reputational or otherwise) to the Partnership or any of its Affiliates; provided that such Class B Partner may confer in confidence with such Class B Partner’s legal representatives and make truthful statements as required by law. 
(g)    Transitions. Prior to accepting other employment or any other service relationship during the Restricted Period, such Class B Partner shall provide a copy of this Section 6.10 to any recruiter who assists such Class B Partner in obtaining other employment or any other service relationship and to any employer or other Person with which such Class B Partner discusses potential employment or any other service relationship.
(h)    Interpretation. In the event the terms of this Section 6.10 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. Any breach or violation by such Class B Partner of the provisions of this Section 6.10 shall toll the running of any time periods set forth in this Section 6.10 for the duration of any such breach or violation.
(i)    Certain Terms. As used in this Section 6.10, the term “the Partnership” shall include the Partnership, the General Partner, Parent, Calpine and their respective subsidiaries and Affiliates.
(j)    Injunctive Relief. Such Class B Partner recognizes and acknowledges that a breach of the covenants contained in this Section 6.10 will cause irreparable damage to the Partnership and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate. Accordingly, 

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such Class B Partner agrees that in the event of a breach of any of the covenants contained in this Section 6.10, in addition to any other remedy which may be available at law or in equity (including, without limitation, pursuant to Section 6.05(e)), the Partnership will be entitled to specific performance and injunctive relief.
6.11    Parent Distribution. Notwithstanding anything to the contrary in this Agreement, it is expressly understood and agreed that Parent or any of its Affiliates or any direct or indirect partner, member or other equity participant of any of the foregoing may, with the consent of the General Partner, distribute all or any portion of the Interests or Calpine Shares held directly or indirectly by it to its respective direct or indirect partners, members or other equity participants (any such distribution, a “Parent Distribution”). Any such partners, members or other equity participants (a) who receive Interests pursuant to a Parent Distribution, shall agree to be bound by the terms of this Agreement by executing and delivering a joinder to this Agreement in the form attached hereto as Exhibit B, and make the representations and warranties set forth in Section 3.03 as of the date of such Person’s admission as a Partner of the Partnership, in each case in accordance with Section 3.02, and (b) who receive Calpine Shares pursuant to a Parent Distribution, shall agree to be bound by the terms of the Stockholders Agreement by executing and delivering a joinder to the Stockholders Agreement. Notwithstanding anything to the contrary contained in this Agreement, a Parent Distribution shall not constitute a “Transfer” for any purpose under this Agreement and shall, except as expressly provided in this Section 6.11, be exempt in all respects from the terms and conditions of this Agreement. As an example, and without limiting the generality of the foregoing, it is expressly understood and agreed that a Parent Distribution shall not constitute a Tag-Along Sale. Any such partners, members or other equity participants (a) who receive Interests pursuant to a Parent Distribution, shall have the same rights and restrictions as applicable to Parent under this Agreement and (b) who receive Calpine Shares pursuant to a Parent Distribution, shall have the same rights and restrictions as applicable to Parent under the Stockholders Agreement.
ARTICLE VII. 
MANAGEMENT
7.01    Management. Except as otherwise provided in this Agreement or by applicable law, the power and authority to manage, direct and control the Partnership will be vested in the General Partner. The General Partner will have full, complete and exclusive authority to manage, direct and control the business, affairs and properties of the Partnership, and to perform any and all other acts or activities customary or incident to the management of the Partnership’s activities. Unless expressly authorized to do so by the provisions hereof or by action of the General Partner, no Partner may claim or exercise any authority to act, or to enter into any contract or agreement, on behalf of the Partnership. The General Partner shall be removed as general partner of the Partnership immediately upon the removal of the General Partner as general partner of Parent in accordance with the Parent LPA and the Person appointed as the successor general partner of Parent shall be appointed the successor General Partner of the Partnership. For the avoidance of doubt, notwithstanding anything to the contrary in this Agreement, in no event shall the Partnership take any action set forth in Section 6.8.1 of the Parent LPA without the consent of “Two-Thirds in Interest” of the “Limited Partners” of Parent (each as defined in the Parent LPA), if such action would, pursuant to Section 6.8.1 of the Parent LPA, require such consent.

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7.02    Limitation of Duties. No Partner (in its capacity as such) shall have any duties (including fiduciary duties) or liabilities relating thereto to the Partnership or the Partners, except for the implied covenant of good faith and fair dealing and except as may be specifically provided herein or required by any provisions of the Act or other applicable law that cannot be waived. Moreover, except as expressly provided herein, each Partner and each of their respective Affiliates shall be free to engage or invest in, and devote his or its and their time to, any other business venture or activity of any nature and description, whether or not such activities are considered competitive with the Partnership, and neither the Partnership nor any other Person will have any right by virtue of this Agreement or the relationship created hereby in or to such other venture or activity of any Person (or to the income or proceeds derived therefrom), and the pursuit of such other venture or activity will not be deemed wrongful or improper. No notice, approval or other sharing of any such other opportunity or activity will be required. The legal doctrines of “corporate opportunity,” “business opportunity” and similar doctrines will not be applied to any such competitive venture or activity to the fullest extent permitted by applicable law.
7.03    Transactions with Affiliates. To the extent permitted by applicable law, each Partner, whether acting for itself or on behalf of the Partnership, is, subject to Section 7.02, hereby authorized to purchase property from, sell property to, or otherwise deal with any other Partner, the Partnership, or any of their respective Affiliates.
7.04    Officers; Partners.
(a)    Officers. The General Partner may, from time to time, designate one or more Persons to be Officers of the Partnership, with such titles as the General Partner may assign to such Persons. No Officer need be a Partner or a resident of the State of Delaware. Officers so designated will have such authority and perform such duties as the General Partner may, from time to time, delegate to them and, unless otherwise specified by the General Partner, will have the authority and responsibilities generally held by officers of a Delaware corporation holding the same titles. Any number of offices may be held by the same Person. The salaries or other compensation, if any, of the Officers and agents of the Partnership will be fixed from time to time by the General Partner. Any Officer may resign as such at any time. Such resignation will be made in writing and will take effect at the time specified therein, or if no time be specified, at the time of its receipt by the General Partner. Any Officer may be removed as such, either with or without cause, by the General Partner, in its sole discretion. Any vacancy occurring in any office of the Partnership may be filled by the General Partner. The Officers of the Partnership, and their respective titles, as of the Effective Date are set forth on Exhibit C.
(b)    Separate Interests. The General Partner, in performing its obligations under this Agreement, may act or omit to act at the direction of Parent, considering only such factors, including the separate interests of Parent and its Affiliates (which interests may differ from, and be given priority over, the interests of the Partnership or any other Partner), as the General Partner or Parent chooses to consider, and any action of the General Partner or failure to act, taken or omitted in good faith reliance on this Section 7.04(b) will not constitute a breach of any duty (including any fiduciary duty) on the part of the General Partner or Parent to the Partnership or any other Partner. The provisions of this Agreement, 

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to the extent that they modify or eliminate the duties and liabilities of the General Partner or any Partner otherwise existing at law or in equity, are agreed by the Partners to modify or eliminate to that extent such other duties and liabilities of the General Partner or such Partner to the fullest extent permitted by applicable law.
7.05    Indemnification; Limitation of Liability.
(a)    Indemnification. Except as limited by applicable law and subject to the provisions of this Section 7.05, the Officers and each Partner of the Partnership (each, an “Indemnitee”) will not be liable for, and will be indemnified and held harmless by the Partnership against, any and all losses, liabilities and reasonable expenses, including attorneys’ fees, arising from proceedings in which such Indemnitee may be involved, as a party or otherwise, by reason of its being a Partner or Officer of the Partnership, or by reason of its involvement in the management of the affairs of the Partnership, whether or not it continues to be such at the time any such loss, liability or expense is paid or incurred. Notwithstanding the foregoing, no Indemnitee will be held harmless or indemnified under this Section 7.05 for any losses, liabilities or expenses arising out of the fraud, intentional misconduct, or knowing or reckless breach of Indemnitee’s obligations under this Agreement, or bad faith of such Indemnitee. The rights of indemnification provided in this Section 7.05 are in addition to any rights to which an Indemnitee may otherwise be entitled by contract or as a matter of law. Without limiting the foregoing, an Indemnitee will be entitled to indemnification by the Partnership against reasonable expenses (as incurred), including attorneys’ fees, incurred by the Indemnitee in connection with the defense of any action to which the Indemnitee may be made a party (without regard to the success of such defense), to the fullest extent permitted under the provisions of the Act or any other applicable statute.
(b)    Payments Prior to Final Disposition. Except as limited by applicable law, expenses incurred by an Indemnitee in defending any proceeding (except a proceeding by or in the right of the Partnership or a majority in interest of the Partners against such Indemnitee), will be paid by the Partnership in advance of the final disposition of the proceeding, upon receipt of a written undertaking by or on behalf of such Indemnitee to repay such amount if such Indemnitee is determined pursuant to this Section 7.05 or adjudicated to be ineligible for indemnification, which undertaking will be an unlimited general obligation of the Indemnitee but need not be secured unless so determined by the General Partner.
(c)    Heirs and Representatives. The indemnification provided by this Section 7.05 will inure to the benefit of the heirs and personal representatives of each Indemnitee.
(d)    Officers and Agents. The Partnership may, at the direction of the General Partner, indemnify and advance expenses to any other Officer, employee or agent of the Partnership to the same extent and subject to the same conditions under which it may indemnify and advance expenses under Sections 7.05(a) and (b).

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(e)    Not Exclusive. The right to indemnification and the advancement and payment of expenses conferred in this Section 7.05 shall not be exclusive of any other right that a Partner or other Person indemnified pursuant to this Section 7.05 may have or hereafter acquire under any law (common or statutory) or provision of this Agreement.
(f)    No Partner Personal Liability for Indemnification. Any indemnification pursuant to this Section 7.05 will be made only out of the assets of the Partnership and will in no event cause any Partner to incur any personal liability nor will it result in any liability of the Partners to any third party. 
(g)    Priority. The Partnership hereby acknowledges that each Indemnitee that is a Parent-Related Partner or heir or representative of any Parent-Related Partner (each, a “Parent-Related Indemnitee”), may have certain rights to indemnification, advancement of expenses and/or insurance provided by or on behalf of the Parent-Related Partners and/or their Affiliates (collectively, the “Parent-Related Indemnitors”). Notwithstanding anything to the contrary in this Agreement or otherwise: (i) the Partnership is the indemnitor of first resort (i.e., the Partnership’s obligations to each Parent-Related Indemnitee are primary and any obligation of the Parent-Related Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by each Parent-Related Indemnitee are secondary), (ii) the Partnership will be required to advance the full amount of expenses incurred by each Parent-Related Indemnitee and will be liable for the full amount of all liabilities, expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by this Section 7.05, without regard to any rights each Parent-Related Indemnitee may have against the Parent-Related Indemnitors, and (iii) the Partnership and the Partners irrevocably waive, relinquish and release the Parent-Related Indemnitors from any and all claims against the Parent-Related Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. Notwithstanding anything to the contrary in this Agreement or otherwise, no advancement or payment by the Parent-Related Indemnitors on behalf of a Parent-Related Indemnitee with respect to any claim for which such Parent-Related Indemnitee has sought indemnification or advancement of expenses from the Partnership will affect the foregoing and the Parent-Related Indemnitors will have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Parent-Related Indemnitee against the Partnership. The Parent-Related Indemnitors are express third party beneficiaries of the terms of this Section 7.05(g).
7.06    Officers’ Insurance. The Partnership shall purchase and maintain officer liability insurance in the amount approved by the General Partner on behalf of any Person who is or was a Partner or Officer of the Partnership against any liability asserted against such Person or incurred by such Person in any capacity identified in Section 7.05 or arising out of such Person’s status as an Indemnitee, whether or not the Partnership would have the power to indemnify such Person against that liability under Section 7.05.
                                                                

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                                                               ARTICLE VIII.     
OTHER RIGHTS AND OBLIGATIONS OF PARTNERS
8.01    Books and Records. The Partnership shall maintain or cause to be maintained at the principal office of the Partnership appropriate books and records with respect to the Partnership’s business. The books of the Partnership shall be maintained, for financial reporting purposes, on an accrual basis in accordance with GAAP. All decisions as to accounting matters, except as specifically provided to the contrary herein, shall be made by the General Partner.
8.02    Schedule K-1 Information. No later than 90 days after the end of each Fiscal Year, the Partnership shall use its reasonable efforts to provide an estimated Schedule K-1 to each Partner, and, no later than June 30 following the end of each Fiscal Year, the Partnership shall use its reasonable efforts to (i) provide to each Partner a final Schedule K-1 and (ii) provide to any Partner such other information reasonably requested by such Partner in order for such Partner to fulfill its federal, state and local tax reporting obligations.
8.03    Confidentiality. Each Partner agrees that the provisions of this Agreement, all understandings, agreements and other arrangements between and among the Partners, and all other non-public information received from or otherwise relating to the Partnership or its business will be confidential, and will not be disclosed or otherwise released to any other Person (other than another party hereto), without the prior approval of the General Partner. The obligations of the Partners hereunder will not apply to the extent that the disclosure of information otherwise determined to be confidential is required by applicable law; provided, that prior to disclosing such confidential information, to the extent practicable a Partner must notify the Partnership thereof, which notice will include the basis upon which such Partner believes the information is required to be disclosed.
ARTICLE IX. 
TAXES
9.01    Tax Returns. The General Partner will cause to be prepared and timely filed all necessary federal, state and local income tax returns for the Partnership. Each Partner will furnish to the General Partner all pertinent information in its possession relating to Partnership operations that is necessary to enable the Partnership’s tax returns to be prepared and timely filed.
9.02    Tax Classification. It is the intent of the Partners that the Partnership be treated as a partnership (for so long as any Class B Interests have been issued and are outstanding) or as a disregarded entity (if no Class B Interests are then outstanding), in each case, for federal income tax purposes and, to the extent permitted by applicable law, for state and local franchise and income tax purposes. Neither the Partnership nor any Partner may make an election for the Partnership to be excluded from the application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar provisions of applicable state or local law or to be treated as a corporation for federal income tax purposes (other than as determined by the General Partner in connection with the consummation of an IPO pursuant to Section 6.07 of this Agreement), and no provision of this Agreement will be construed to sanction or approve such an election.

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9.03    Partnership Representative. The General Partner is hereby designated as the Partnership’s “partnership representative” within the meaning of Code Section 6223, unless and until another Person is designated as such from time to time by the General Partner.
9.04    Section 409A. No Award is intended to constitute or provide for “nonqualified deferred compensation” within the meaning of Section 409A. To the extent that the General Partner determines that any Award granted under this Agreement is subject to Section 409A, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A. Notwithstanding any provision of this Agreement to the contrary, in the event that following the effective date hereof, the General Partner determines that any Award may be subject to Section 409A, the General Partner reserves the right to (without any obligation to do so or to indemnify the holder of such Award for failure to do so), in its sole discretion, adopt such amendments to this Agreement and the applicable Award Agreement or adopt such other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the General Partner determines to be necessary or appropriate (i) to preserve the intended tax treatment of the benefits provided with respect to the Award, to preserve the economic benefits with respect to the Award, or to avoid less favorable accounting or tax consequences for the Partnership and/or (ii) to exempt the Award from Section 409A or to comply with the requirements of Section 409A and thereby avoid the application of penalty taxes thereunder.
ARTICLE X
CERTIFICATION OF INTERESTS; REPORTS; BANK ACCOUNTS
10.01    Certification of Interests. If the General Partner so elects at any time, (i) each Partner will enter into an amendment to this Agreement which provides that this Section 10.01 will be amended and restated substantially as set forth in Exhibit D hereto and (ii) the Partnership will cause the Interests in the Partnership to be evidenced by certificates in the form of Exhibit E hereto. The Partnership will maintain books for the purpose of registering the transfer of Interests.
10.02    Reports. The Partnership will cause to be prepared or delivered such reports as the General Partner may require. The Partnership will bear the costs of such reports.
10.03    Bank Accounts. The General Partner will cause the Partnership to establish and maintain one or more separate bank or investment accounts for Partnership funds in the Partnership’s name with such financial institutions and firms as the General Partner may select and with such signatories thereon as the General Partner may designate.
ARTICLE XI. 
DISSOLUTION, LIQUIDATION, TERMINATION AND CONVERSION
11.01    Dissolution. The Partnership will dissolve and its affairs will be wound up upon the first to occur of any of the following:
(a)    the consent of the General Partner; or
(b)    the occurrence of any other event causing dissolution of the Partnership under the Act;

41

provided that, upon dissolution pursuant to clause (b) of this Section 11.01, any or all of the remaining Partners may elect to continue the business of the Partnership within 90 days after the occurrence of the event causing such dissolution. The death, resignation, withdrawal, bankruptcy, insolvency or expulsion of any Partner will not dissolve the Partnership.
11.02    Liquidation and Termination. On dissolution of the Partnership, the General Partner may appoint one or more other Persons as liquidator(s). The liquidator will proceed diligently to wind up the affairs of the Partnership and make final distributions as provided herein. The costs of liquidation will be borne as a Partnership expense. Until final distribution, the liquidator will continue to operate the Partnership properties with all of the power and authority of the Partners. The steps to be accomplished by the liquidator are as follows:
(a)    Accounting. As promptly as possible after dissolution and again after final liquidation, the liquidator will cause a proper accounting to be made by a recognized firm of certified public accountants of the Partnership’s assets, liabilities, and operations through the last day of the calendar month in which the dissolution occurs or the final liquidation is completed, as applicable;
(b)    Payments. The liquidator will pay from Partnership funds all of the debts and liabilities of the Partnership (including all expenses incurred in liquidation) or otherwise make adequate provision therefor (including the establishment of a cash escrow fund for contingent liabilities in such amount and for such term as the liquidator may reasonably determine); and
(c)    Disposition of Assets. The Partnership will dispose of all remaining assets as follows:
(i)    the liquidator may sell any or all Partnership property, and any resulting gain or loss from each sale will be computed and allocated to the Partners pursuant to Article V;
(ii)    with respect to all Partnership property that has not been sold, the fair market value of that property will be determined and the Capital Accounts of the Partners will be adjusted to reflect the manner in which the unrealized income, gain, loss, and deduction inherent in property that has not been reflected in the Capital Accounts previously would be allocated among the Partners if there were a taxable Transfer of that property for the fair market value of that property on the date of distribution;
(iii)    thereafter, Partnership property will be distributed among the Partners in accordance with Section 5.01, taking into account prior distributions under Section 5.03 but subject to Section 5.02.
(iv)    Distributions. All distributions in kind to the Partners will be made subject to the liability of each distributee for its allocable share of costs, expenses and liabilities theretofore incurred or for which the Partnership has committed prior to the date of termination and those costs, expenses and liabilities will be allocated to the distributee pursuant to this Section 11.02.

42

11.03    Cancellation of Filing. On completion of the distribution of Partnership assets as provided herein, the Partnership will be terminated, and the General Partner (or such other Person or Persons as may be required) will cause the cancellation of any other filings made as provided in Section 2.07 and will take such other actions as may be necessary to terminate the Partnership.
ARTICLE XII.
GENERAL PROVISIONS
12.01    Changes in Interests; Disposition of Assets. In the event that the General Partner determines that any dividend or other distribution (whether in the form of cash, Interests, other equity securities or other property), Capital Contribution, recapitalization, reclassification, reorganization, change to corporate form, merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Partnership, or exchange of Interests or other equity securities of the Partnership, or other similar corporate transaction or event, affects the Interests such that an adjustment is determined by the General Partner in good faith to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Agreement or with respect to an Award, or if the events described in clause (i) of the definition of Drag-Along Sale occur, then the General Partner shall, in such manner as it may deem equitable, adjust any or all of:
(a)    The number of Interests or the number and kind of equity securities of the Partnership with respect to which Awards may be granted under this Agreement;
(b)    The number of Interests or the number and kind of equity securities of the Partnership subject to outstanding Awards, including the cancellation of outstanding Awards for an amount of cash, securities, or other property equal to the amount, if any, that could have been attained upon the realization of the Partner’s rights had such Award (or portion thereof) been fully vested immediately prior to the occurrence of such transaction or event;
(c)    The purchase price, if any, with respect to any Interest; and
(d)    The Benchmark Amount, Benchmark Component or any financial or other “targets” specified in this Agreement or in any Award Agreement for determining the vesting of any Award.
12.02    Offset. Whenever the Partnership is to pay any sum to any Partner, any amounts such Partner owes the Partnership may be deducted from that sum before payment.
12.03    Notices. All notices, requests or consents provided for or permitted to be given under this Agreement will be in writing and will be given either by depositing such writing in the United States mail, addressed to the recipient, postage paid and certified with return receipt requested, or by depositing such writing with a reputable overnight courier for next day delivery, or by delivering such writing to the recipient in person, by courier or by facsimile transmission. A notice, request or consent given under this Agreement will be effective on receipt by the Person to receive it. All notices, requests and consents to be sent to a Partner or other party hereto will be sent to or made 

43

at the addresses given for that Person on the list attached hereto as Exhibit A or such other address as such Person may specify by notice to the other Persons party hereto. Any notice, request or consent to the Partnership made by a Partner will be given to each other Partner.
12.04    Entire Agreement; Supersedure. This Agreement (together with the Exhibits hereto), and the agreements entered into in connection herewith, constitute the entire agreement of the Partners relating to the Partnership and supersede all prior contracts or agreements with respect to the Partnership, whether oral or written.
12.05    Effect of Waiver or Consent. A waiver or consent, express or implied, to or of any breach or default by any Person in the performance by that Person of its obligations with respect to the Partnership will not constitute a consent or waiver to or of any other breach or default in the performance by that Person of the same or any other obligations of that Person with respect to the Partnership. Failure on the part of a Person to complain of any act of any Person or to declare any Person in default with respect to the Partnership, irrespective of how long such failure continues, will not constitute a waiver by that Person of its rights with respect to that default until the applicable limitations period has expired.
12.06    Amendment or Modification.
(a)    Except as otherwise provided herein, this Agreement may be amended or modified from time to time only by a written instrument that is adopted by the General Partner; provided that without the consent of any Partner to be adversely affected thereby, this Agreement may not be amended so as to (i) modify the limited liability of any Partner, (ii) disproportionately and adversely affect the interest of such Partner in any Profits, Losses or distributions or (iii) require any Partner to make any additional Capital Contribution to the Partnership without that Partner’s prior written consent; provided, further, that any amendment which impairs the rights of the Class B Partners arising under this Agreement in a manner that has a disproportionate negative impact on the Class B Partners shall also require the consent of the holders of a majority of the Class B Interests.
(b)    Notwithstanding the foregoing or anything to the contrary herein, in addition to other amendments authorized herein, amendments may be made to this Agreement from time to time by the General Partner without the consent of any Partner to (i) amend Exhibit A in accordance with Section 3.01, (ii) correct any typographical or similar ministerial errors, (iii) delete or add any provision of this Agreement required to be so deleted or added by, or for compliance with, applicable law, (iv) amend any provisions of this Agreement as the General Partner reasonably deems necessary or appropriate in furtherance of any Transfer to, or admission of, any Affiliate of Parent and/or (v) cure any mistake or ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Agreement in each such case in a manner that is not inconsistent with the provisions of this Agreement.
12.07    Binding Effect. Subject to the restrictions on Transfer set forth in this Agreement, this Agreement will be binding on and inure to the benefit of the Partners and their respective heirs, legal representatives, successors, and assigns.

44

12.08    Governing Law; Severability. This Agreement, and all rights and remedies in connection therewith, will be governed by, and construed under, the laws of the State of Delaware, without regard to otherwise governing principles of conflicts of law (whether of the State of Delaware or otherwise) that would result in the application of the laws of any other jurisdiction. If any provision of this Agreement or its application to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Persons or circumstances will not be affected thereby, and such provision will be enforced to the greatest extent permitted by law.
12.09    Further Assurances. In connection with this Agreement and the transactions contemplated thereby, each Partner will execute and deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement and such transactions.
12.10    Consent to Jurisdiction; Service of Process; Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY CONSENTS TO THE JURISDICTION OF ANY UNITED STATES DISTRICT COURT OR DELAWARE STATE CHANCERY COURT LOCATED IN WILMINGTON, DELAWARE AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER SUCH ACTIONS OR PROCEEDINGS ARE BASED IN STATUTE, TORT, CONTRACT OR OTHERWISE), SHALL BE LITIGATED IN SUCH COURTS. EACH PARTY (A) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR SUCH ACTIONS OR PROCEEDINGS, (B) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY SUCH COURT, AND (C) AGREES THAT IT WILL NOT BRING ANY SUCH ACTION OR PROCEEDING IN ANY COURT OTHER THAN SUCH COURTS. EACH PARTY ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE AND IRREVOCABLE JURISDICTION AND VENUE OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY NON-APPEALABLE JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTIONS OR PROCEEDINGS. A COPY OF ANY SERVICE OF PROCESS SERVED UPON THE PARTIES SHALL BE MAILED BY REGISTERED MAIL TO THE RESPECTIVE PARTY EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF PROCESS. IF ANY AGENT APPOINTED BY A PARTY REFUSES TO ACCEPT SERVICE, EACH PARTY AGREES THAT SERVICE UPON THE APPROPRIATE PARTY BY REGISTERED MAIL SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

45

12.11    Waiver of Certain Rights. To the maximum extent permitted by applicable law, each Partner irrevocably waives any right it might have to maintain any action for dissolution of the Partnership, or to maintain any action for partition of the property of the Partnership
12.12    Counterparts. This Agreement may be executed in any number of counterparts, any of which may be delivered via facsimile or PDF, each of which will be deemed to be an original and all of which will constitute one agreement, binding on all parties hereto.
[Signature pages follow]

46

IN WITNESS THEREOF, the undersigned Partners have executed this Agreement effective as of the Effective Date.

GENERAL PARTNER

VOLT PARENT GP, LLC

By:      Energy Capital Partners III, LLC, 
            its managing member

By:       ECP ControlCo, LLC,
             its managing member

By:     /s/ Tyler Reeder
Name:   Tyler Reeder
Title:     Managing Member

LIMITED PARTNERS

VOLT PARENT, LP

By:    Volt Parent GP, LLC,
             its general partner

By:      Energy Capital Partners III, LLC,
            its managing member

By:      ECP ControlCo, LLC,
            its managing member

By:       /s/ Tyler Reeder
Name:       Tyler Reeder
Title:     Managing Member

[Signature Page to Amended and Restated Limited Partnership Agreement of CPN Management, LP]

EXHIBIT A
Partners, Capital Contributions, and Interests 
Revised as of: June 4, 2018

	
						
	Partner Name and Address
	Type of Interest
	Capital Contribution
	Unreturned Capital
	Percentage Interest(2)
	Benchmark Component

	General Partner(1)
Volt Parent GP, LLC
51 JFK Parkway
Suite 200
Short Hills, NJ 07078
Attn: President and CEO
Fax: (973) 671-6101
	General Partner
	 
	 
	 
	 

	Parent(1)
Volt Parent, LP
51 JFK Parkway
Suite 200
Short Hills, NJ 07078
Attn: President and CEO
Fax: (973) 671-6101
	Class A
	$5,439,205,757.50
	$5,439,205,757.50
	100.0000%
	None

A-1

	
					
	Partner Name and Address
	Date of Issuance
	Type of Interest
	Percentage Interest(3)
	Benchmark Components

	[l]
[l]
[l]
Fax: [l]
	[l], 2018
	Class B Interest
	[l]%
	$[l]

	[l]
[l]
[l]
Fax: [l]
	[l], 2018
	Class B Interest
	[l]%
	$[l]

		
	(1)
	All notices shall be sent with a copy concurrently to Latham & Watkins LLP, 885 Third Avenue, New York, NY 10022-4834, Facsimile No.: (212) 751-4864, Attn: David Kurzweil.

		
	(2)
	Not adjusted for Benchmark Amount.

		
	(3)
	Reflects the Awards granted to such Class B Partner, whether vested or unvested. Awards are subject to vesting as set forth in the applicable Award Agreement.

A-2

EXHIBIT B
FORM OF JOINDER
TO
AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT 
OF
CPN MANAGEMENT, LP

The undersigned hereby joins in the execution and delivery of that certain Amended and Restated Limited Partnership Agreement, dated as of March 8, 2018 (as may hereafter be amended from time to time, the “Partnership Agreement”), of CPN Management, LP, a Delaware limited partnership (the “Partnership”), and agrees to be bound in all respects by the terms and conditions specified in the Partnership Agreement as a limited partner of the Partnership. If the undersigned is married, the undersigned has further caused his or her spouse to execute the Spousal Consent set forth below.

Dated: _________ ___, 20__

__________________________
Name:

Address:
_______________________
_______________________
_______________________
FEIN/SSN:

SPOUSAL CONSENT
The undersigned is the spouse of _______________________. The undersigned acknowledges that he or she has read the Partnership Agreement (as defined above) and clearly understands its provisions. The undersigned is aware that, by the provisions of the Partnership Agreement, he or she has agreed to sell or transfer all of his or her interest in the Partnership (as defined above), including any community property interest, in accordance with the terms and provisions of the Partnership Agreement. The undersigned hereby expressly approves of and agrees to be bound by the provisions of the Partnership Agreement in its entirety, including, but not limited to, those provisions relating to the sales and transfers of interests in the Partnership.

Dated: _________ ___, 20__

__________________________
Name:

B-1

EXHIBIT C
Officers
	
		
	Name
	Title

	Tyler Reeder
	President and Chief Executive Officer

	Andrew Singer
	General Counsel and Secretary

	Andrew Gilbert
	Vice President and Treasurer

C-1

EXHIBIT D
Certificated Securities and Article 8 Opt-in Provision

Section 10.01. Certification of Interests; Article 8 Opt-in.
(a)    Certification of Interests. The Interests in the Partnership will be evidenced by certificates in the form of Exhibit E hereto. The Partnership will maintain books for the purpose of registering the Transfer of Interests. In connection with a transfer in accordance with this Agreement of any Interests in the Partnership, the certificate(s) evidencing the Interests will be delivered to the Partnership for cancellation, and the Partnership will thereupon issue a new certificate to the transferee evidencing the Interests that were Transferred and, if applicable, the Partnership will issue a new certificate to the transferor evidencing any Interests registered in the name of the transferor that were not Transferred.
(b)    Article 8 Opt-in. The Partnership hereby irrevocably elects that all Interests in the Partnership will be securities governed by Article 8 of the Uniform Commercial Code as in effect in the State of Delaware and each other applicable jurisdiction. Each certificate evidencing Interests in the Partnership will bear the following legend: “This certificate evidences an interest in CPN Management, LP and will be a security governed by Article 8 of the Uniform Commercial Code as in effect in the State of Delaware and, to the extent permitted by applicable law, Article 8 of the Uniform Commercial Code of each other applicable jurisdiction.” This provision will not be amended, and any purported amendment to this provision will not take effect, until all outstanding certificates have been surrendered for cancellation.

D-1

EXHIBIT E
Form of Interest Certificate
CERTIFICATE OF INTEREST

Certificate Number: [___]
CPN Management, LP 
Formed under the Delaware Revised Uniform Limited Partnership Act
The transfer of interest represented by this certificate is subject to the restrictions set forth on the reverse side

This certifies that [_____________] holds an interest in:

CPN Management, LP 
a Delaware Limited Partnership

This Certificate is transferable only on the books of CPN Management, LP by the holder hereof in accordance with the Amended and Restated Limited Partnership Agreement of CPN Management, LP, as amended from time to time (the “Partnership Agreement”).

This Certificate evidences an interest CPN Management, LP and will be a security governed by Article 8 of the Uniform Commercial Code as in effect in the State of Delaware and, to the extent permitted by applicable law, Article 8 of the Uniform Commercial Code of each other applicable jurisdiction.
In Witness Whereof, the undersigned has executed this Certificate on behalf of CPN Management, LP this __ day of _________, _____.
_____________________________
Name: [_________]
Title: [_________]

E-1

THE INTEREST REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES OR BLUE SKY LAWS (“BLUE SKY LAW”). THE INTEREST MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION UNDER THE ACT AND UNDER APPLICABLE BLUE SKY LAW OR UNLESS SUCH OFFER, SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION IS EXEMPT FROM REGISTRATION THEREUNDER AND IS MADE IN ACCORDANCE WITH THE TERMS, CONDITIONS AND RESTRICTIONS IN THE PARTNERSHIP AGREEMENT.

E-2

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