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Exhibit 10.40    
    

TENANT: THE FIRST MARBLEHEAD CORPORATION  

 LEASE OF  

 WELLINGTON BUSINESS PARK  

 ONE CABOT ROAD, MEDFORD, MASSACHUSETTS  

TABLE OF CONTENTS  

	 
	 	PAGE

	ARTICLE I    BASIC PROVISIONS	 	1
	 	1.1    INTRODUCTION	 	1
	 	1.2    BASIC DATA	 	1
	 	1.3    ADDITIONAL DEFINITIONS	 	2
	ARTICLE II    PREMISES AND APPURTENANT RIGHTS	 	3
	 	2.1    LEASE OF PREMISES	 	3
	 	2.2    APPURTENANT RIGHTS AND RESERVATIONS	 	3
	 	2.3    OPTION FOR ADDITIONAL PARKING	 	5
	 	2.4    OPTION TO EXTEND	 	6
	 	2.5    EXPANSION OPTION	 	7
	 	2.6    RIGHT OF FIRST OFFER	 	8
	 	2.7    STORAGE SPACE	 	8
	ARTICLE III    BASIC RENT	 	9
	 	3.1    PAYMENT	 	9
	ARTICLE IV    COMMENCEMENT DATE AND CONDITION	 	10
	 	4.1    COMMENCEMENT DATE	 	10
	 	4.2    PREPARATION OF THE PREMISES	 	10
	 	4.3    CONDITION; LANDLORD'S PERFORMANCE	 	12
	 	4.4    TENANT'S DELAYS	 	12
	ARTICLE V    USE OF PREMISES	 	13
	 	5.1    PERMITTED USE	 	13
	 	5.2    INSTALLATIONS AND ALTERATIONS BY TENANT	 	15
	 	5.3    HAZARDOUS MATERIALS	 	15
	ARTICLE VI    ASSIGNMENT AND SUBLETTING	 	16
	 	6.1    PROHIBITION	 	16
	 	6.2    EXCESS PAYMENTS	 	17
	 	6.3    ACCEPTANCE OF RENT	 	18
	 	6.4    ADDITIONAL REQUIREMENTS	 	18
	ARTICLE VII    RESPONSIBILITY FOR REPAIRS AND CONDITION OF PREMISES; SERVICES TO BE FURNISHED BY LANDLORD	 	18
	 	7.1    LANDLORD REPAIRS	 	18
	 	7.2    TENANT'S AGREEMENT	 	19
	 	7.3    FLOOR LOAD—HEAVY MACHINERY	 	19
	 	7.4    BUILDING SERVICES	 	20
	 	7.5    ELECTRICITY	 	21
	ARTICLE VIII    REAL ESTATE TAXES	 	23
	 	8.1    PAYMENTS ON ACCOUNT OF REAL ESTATE TAXES	 	23
	 	8.2    ABATEMENT	 	24
	 	8.3    ALTERNATE TAXES	 	24
	ARTICLE IX    OPERATING EXPENSES	 	25
	 	9.1    DEFINITIONS	 	25
	 	9.2    TENANT'S PAYMENTS	 	25
	ARTICLE X    INDEMNITY AND PUBLIC LIABILITY INSURANCE	 	26
	 	10.1    TENANT'S INDEMNITY	 	26
	 	10.2    LANDLORD'S INDEMNITY	 	27
	 	10.3    GENERAL LIABILITY INSURANCE	 	27
	 	10.4    TENANT'S RISK AND PROPERTY DAMAGE INSURANCE	 	27
	 	10.5    INJURY CAUSED BY THIRD PARTIES	 	27
	 	10.6    CERTIFICATES OF INSURANCE	 	27
	ARTICLE XI    LANDLORD'S ACCESS TO PREMISES	 	28
	 	11.1    LANDLORD'S RIGHTS	 	28
	 	 	 

	ARTICLE XII    FIRE, EMINENT DOMAIN, ETC.	 	28
	 	12.1    ABATEMENT OF RENT	 	28
	 	12.2    LANDLORD'S RIGHT OF TERMINATION	 	28
	 	12.3    RESTORATION	 	29
	 	12.4    AWARD	 	29
	ARTICLE XIII    DEFAULT	 	29
	 	13.1    TENANT'S DEFAULT	 	29
	 	13.2    LANDLORD'S DEFAULT	 	33
	ARTICLE XIV    MISCELLANEOUS PROVISIONS	 	33
	 	14.1    EXTRA HAZARDOUS USE	 	33
	 	14.2    WAIVER	 	34
	 	14.3    COVENANT OF QUIET ENJOYMENT	 	34
	 	14.4    LANDLORD'S LIABILITY	 	34
	 	14.5    NOTICE TO MORTGAGEE OR GROUND LESSOR	 	35
	 	14.6    ASSIGNMENT OF RENTS AND TRANSFER OF TITLE	 	35
	 	14.7    RULES AND REGULATIONS	 	36
	 	14.8    ADDITIONAL CHARGES	 	36
	 	14.9    INVALIDITY OF PARTICULAR PROVISIONS	 	36
	 	14.10    PROVISIONS BINDING, ETC.	 	36
	 	14.11    RECORDING	 	36
	 	14.12    NOTICES	 	36
	 	14.13    WHEN LEASE BECOMES BINDING	 	36
	 	14.14    PARAGRAPH HEADINGS AND INTERPRETATION OF SECTIONS	 	37
	 	14.15    RIGHTS OF MORTGAGEE OR GROUND LESSOR	 	37
	 	14.16    ESTOPPEL CERTIFICATE	 	37
	 	14.17    INTENTIONALLY OMITTED	 	38
	 	14.18    REMEDYING DEFAULTS	 	38
	 	14.19    HOLDING OVER	 	38
	 	14.20    WAIVER OF SUBROGATION	 	38
	 	14.21    SURRENDER OF PREMISES	 	38
	 	14.22    INTENTIONALLY OMITTED	 	39
	 	14.23    BROKERAGE	 	39
	 	14.24    GOVERNING LAW	 	39
	 	14.25    BLINDS AND DRAPES	 	39

   LEASE  

        THIS INSTRUMENT IS A LEASE, dated as of August 13, 2004, in which the Landlord and the Tenant are the parties hereinafter named, and which relates to space
in the building (the "Building") located at One Cabot Road, Medford, Massachusetts. The parties to this instrument hereby agree with each other as follows: 

ARTICLE I

BASIC PROVISIONS  

        1.1    INTRODUCTION.    The following set forth basic data and, where appropriate, constitute definitions of the terms
hereinafter listed. 

        1.2    BASIC DATA.    

        Landlord:
Cabot Road Partners, LLC, a Delaware limited liability company. 

	Landlord's Original Address:	 	c/o Berkeley Investments, Inc.,

121 High Street,

Boston, Massachusetts 02110

        Tenant:
The First Marblehead Corporation 

	Tenant's Original Address:	 	The Prudential Tower

800 Boylston Street, 34th Floor

Boston, MA 02199-8157

        Guarantor:
None 

        Basic
Rent: The Basic Rent is as follows: 

	Rental Period
 
	 	Annual Basic Rent
	 	Monthly Payment

	Months 1-9	 	$	0.00	 	$	0.00
	Months 10-24	 	$	2,593,424.00	 	$	216,118.66
	Months 25-36	 	$	2,661,672.00	 	$	221,806.00
	Months 37-84	 	$	2,934,664.00	 	$	244,555.33

        Premises:
The entire second floor and a portion of the third floor of the Building as shown on Exhibit FP annexed hereto, subject to the
provisions of Section 2.1 regarding the Third Floor Space (as defined in Section 2.4). 

        Premises
Rentable Area: Agreed to be 136,496 rentable square feet. 

        Permitted
Uses: General office use, call center use, data center use, and other uses incidental to the foregoing uses (including, without limitation, ancillary office kitchen/pantry
use), but specifically excluding medical or dental offices, utility company offices, employment agencies (other than executive or professional search firms) and governmental or quasi-governmental
offices. 

        Escalation
Factor: .442, as computed in accordance with the Escalation Factor Computation. 

        Initial
Term: Seven (7) years commencing on the Commencement Date and expiring at the close of the day immediately preceding the seventh anniversary of the Commencement Date,
except that if the Commencement Date shall be other than the first day of a calendar month, the expiration of the Initial Term shall be at the close of the day on the last day of the calendar month in
which such anniversary shall fall. 

        Base
Operating Expenses: Operating Expenses for the calendar year ending December 31, 2005. 

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        Base
Taxes: Taxes for the calendar year ending December 31, 2005, as the same may be reduced by the proportional amount of any abatement net of expenses applicable to any tax
fiscal year included within the aforesaid calendar year. Landlord represents that, as of the date of this Lease, the Property constitutes a single tax lot. 

        Security
Deposit: None 

        Broker:
The Codman Company & GVA Thompson Doyle Hennessey & Everest 

        1.3    ADDITIONAL DEFINITIONS.    

        Agent:
Berkeley Management, Inc. or such other person or entity from time to time designated by Landlord. 

        Bankruptcy
Code: As defined in Section 13.1. 

        Building
Rentable Area: 308,496 rentable square feet. 

        Business
Days: All days except Saturday, Sunday, New Year's Day, Martin Luther King's Birthday, Presidents' Day, Patriot's Day, Memorial Day, Independence Day, Labor Day, Columbus Day,
Veterans' Day, Thanksgiving Day, Christmas Day (and the following day when any such day occurs on Sunday or prior day if Saturday) and such other days that tenants occupying at least 50% of Building
Rentable Area recognize as holidays for their general office staff. 

        Commencement
Date: As defined in Section 4.1. 

        Default
of Tenant: As defined in Section 13.1. 

        Environmental
Condition: Any disposal, release or threat of release of Hazardous Materials on, from or about the Building or the Property or storage of Hazardous Materials on, from or
about the Building or the Property. 

        Environmental
Laws: Any federal, state and/or local statute, ordinance, bylaw, code, rule and/or regulation now or hereafter enacted, pertaining to any aspect of the environment or human
health, including, without limitation, Chapter 21C, Chapter 21D, and Chapter 21E of the General Laws of Massachusetts and the regulations promulgated by the Massachusetts Department of Environmental
Protection, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq., the Resource
Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq., the Toxic Substances Control Act, 15 U.S.C. §2061  et seq., the Federal Clean
Water Act, 33 U.S.C. §1251, and the Federal Clean Air Act, 42 U.S.C. §7401 et
seq. 

        Escalation
Charges: The amounts prescribed in Sections 8.1 and 9.2. 

        Escalation
Factor Computation: Premises Rentable Area divided by Building Rentable Area. 

        Event
of Bankruptcy: As defined in Section 13.1. 

        Hazardous
Materials: Shall mean each and every element, compound, chemical mixture, contaminant, pollutant, material, waste or other substance which is defined, determined or identified
as hazardous or toxic under any Environmental Law, including, without limitation, any "oil," "hazardous material," "hazardous waste," "hazardous substance" or "chemical substance or mixture", as the
foregoing terms (in quotations) are defined in any Environmental Laws. 

        Initial
Public Liability Insurance: $5,000,000 per occurrence (combined single limit) for property damage, bodily injury or death. 

        Land:
The parcel of land upon which the Building and the related sidewalks and parking facilities are constructed, as shown on the site plan attached hereto and made a part hereof as  Exhibit PP. If Landlord
shall elect to construct another building on the Land, then the definition of Land hereunder 

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shall
exclude the property on which such building and the improvements related to such building are located. 

        Operating
Expenses: As determined in accordance with Section 9.1. 

        Operating
Year: As defined in Section 9.1. 

        Premises
Usable Area: The carpetable area contained within the Premises. 

        Property:
The Building and the Land. 

        Rent
Commencement Date: The date that is nine months after the Commencement Date. 

        Scheduled
Commencement Date: December 1, 2004. 

        Tax
Year: As defined in Section 8.1. 

        Taxes:
As determined in accordance with Section 8.1. 

        Tenant's
Plans: As defined in Section 4.2. 

        Tenant's
Removable Property: As defined in Section 5.2. 

        Term
of this Lease: The Initial Term and any extension thereof in accordance with the provisions hereof. 

ARTICLE II

PREMISES AND APPURTENANT RIGHTS  

        2.1    LEASE OF PREMISES.    Landlord hereby demises and leases to Tenant for the Term of this Lease and upon the
terms and conditions hereinafter set forth, and Tenant hereby leases from Landlord, the Premises. Notwithstanding the foregoing, Tenant acknowledges that the portion of the Premises on the third floor
(the "Third Floor Space") is currently leased to a third party pursuant to a separate lease. It shall be a condition precedent to the occurrence of the Commencement Date of this Lease and to the
parties' respective obligations under this Lease that (a) Landlord and such tenant of the Third Floor Space enter into an agreement satisfactory to Landlord to terminate such lease, and
(b) such tenant has surrendered and vacated the Third Floor Space, except for certain items of movable personal property that will not affect or delay Landlord's Work in the Premises. If such
condition precedent has not occurred on or before the date that is twenty (20) days after the date of this Lease, either Landlord or Tenant shall have the right to terminate this Lease by
written notice to the other given within five (5) Business Days after the expiration of such twenty (20) day period. 

        2.2    APPURTENANT RIGHTS AND RESERVATIONS.    

        (a)   Tenant
shall have, as appurtenant to the Premises, the non-exclusive right to use, and permit its invitees to use, in common with others (i) public or
common lobbies, hallways, stairways and elevators and common walkways necessary for access to the Building, and if the portion of the Premises on any floor includes less than the entire floor, the
common toilets, corridors and elevator lobby on such floor, and (ii) the access roads, driveways, parking areas, loading areas, pedestrian sidewalks, landscaped areas, trash enclosures,
recreation areas and other areas or facilities, if any, which are located in or on the Land and designated by Landlord from time to time for the non-exclusive use of tenants and other
occupants of the Building (the areas described in clauses (i) and (ii) are hereinafter collectively referred to as the "Common Areas"); but such rights shall always be subject to
reasonable rules and regulations from time to time established by Landlord pursuant to Section 14.7 and to the right of Landlord to designate and change from time to time areas and facilities
so to be used, provided that such changes shall not unreasonably, adversely affect Tenant's access to or use and occupancy of the Premises and shall not result in a permanent reduction in the number
of elevators serving the Premises. 

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        (b)   Excepted
and excluded from the Premises are the ceiling, floor, perimeter walls and exterior windows (except the inner surfaces of each thereof), and any space in the
Premises used for shafts, stacks, pipes, conduits, fan rooms, ducts, electric or other utilities, sinks or other Building facilities, but the entry doors to the Premises are a part thereof. Landlord
shall have the right to place in the Premises (but in such manner as to reduce to a minimum interference with Tenant's use of the Premises and so as to require only a de minimus reduction in the
Premises Usable Area) interior storm windows, sun control devices, and utility lines, equipment, stacks, pipes, conduits, ducts and the like. Tenant shall have the right, subject to the other terms
and conditions of this Lease, including, without limitation, the provisions of Section 5.2, to place pipes, wires and other typical office infrastructure serving the Premises above the ceiling.
In the event that Tenant shall install any hung ceilings or walls in the Premises, Tenant shall install and maintain, as Landlord may require, proper access panels therein to afford access to any
facilities above the ceiling or within or behind the walls. 

        (c)   As
of the Execution Date of this Lease, there are approximately 3.0 parking spaces in the parking areas designated for use by the tenants of the Building for every 1,000
square feet of Building Rentable Area. Tenant's Share of such parking spaces shall equal 409 spaces, of which, 81 spaces shall be available in the garage on a non-exclusive, unreserved
basis. Nothing contained in the Lease shall prohibit or otherwise restrict Landlord from changing from time to time, without notice to Tenant, the location, layout or type of such parking areas,
provided that Landlord shall not reduce the total number of parking spaces available for Tenants' use. Subject to reasonable rules from time to time made by Landlord of which Tenant is given notice,
Tenant shall have the right, in common with all other tenants of the Building, to use such parking areas, without charge, on a first-come, first-served basis. Notwithstanding the
foregoing, if, after the date of this Lease, Landlord shall reserve any parking spaces for any other tenant of the Building, including pursuant to an amendment to the existing lease for a tenant in
possession as of the date of this Lease, then Landlord shall reserve for Tenant the number of parking spaces that is equal to, on a proportionate basis, to the number of parking spaces reserved for
such other tenant, and such reserved spaces shall constitute part of Tenant's 409 spaces; for illustration purposes, if Landlord gives to a tenant 4 reserved parking spaces, and such reserved parking
spaces constitute ten percent (10%) of the parking spaces allocable to the tenant under its lease, then Landlord shall give to Tenant 41 reserved parking spaces. In addition, Landlord shall maintain a
sticker system, or other similar program selected by Landlord in its sole discretion, in order to restrict the use of the parking areas of the Property by authorized vehicles only. As part of any such
system, Landlord shall use reasonable efforts to make sure unauthorized vehicles are not using the parking areas. 

        (d)   So
long as the Building is at least seventy-five percent (75%) occupied, Landlord agrees to operate a fitness center in the Building (the "Fitness Center")
in accordance with the provisions of this Section 2.2(d). Tenant and Tenant's employees and invitees shall have the right to use the Fitness Center, subject to Landlord's right to change from
time to time the type and location of the Fitness Center and, if at any time the Building is less than seventy-five percent (75%) occupied, to cease operation of the Fitness Center. The
use of the Fitness Center by Tenant and its employees and invitees shall be at the sole risk of Tenant and/or such employees and invitees, and Landlord shall have no risk or obligation therefor. As an
ongoing condition to Tenant's right to use the Fitness Center, Tenant covenants with Landlord to maintain at all times a list of persons who are using, or who have requested permission to use, the
Fitness Center, and to keep on file for Landlord's inspection a duly executed and witnessed release and indemnification agreement from each such person, in such form as Landlord may from time to time
approve or require. Access to the Fitness Center shall be controlled by key card security. 

        (e)   So
long as the Building is at least seventy-five percent (75%) occupied, Landlord agrees to operate a cafeteria in the Building (the "Cafeteria") in
accordance with the provisions of this Section 2.2(e). Tenant and Tenant's employees and invitees shall have the right to use the Cafeteria, 

4

 

subject
to Landlord's right to change from time to time the type and location of the Cafeteria and, if at any time the Building is less than seventy-five percent (75%) occupied, to cease
operation of the Cafeteria. Landlord agrees to cause the Cafeteria and to cause the operator to operate, manage and maintain the Cafeteria in a condition in keeping with other cafeterias in similar
first-class buildings in the Medford/Charlestown area. 

        2.3    OPTION FOR ADDITIONAL PARKING.    Notwithstanding anything to the contrary contained in the Lease, provided
that (a) this Lease is then in full force and effect, (b) no Default of Tenant shall have occurred that remains uncured, and (c) the originally-named Tenant, The First Marblehead
Corporation, or any successor entity for which Landlord's consent is not required under Section 6.1(b) below, is then occupying at least eighty-five percent (85%) of the Premises
for the Permitted Use, upon written notice from Tenant to Landlord, Landlord hereby consents to Tenant undertaking to construct or cause to be constructed additional parking spaces on the Property in
the location set forth in Exhibit AP attached hereto (the "Additional Parking"), for use by Tenant's employees, subject to the terms and conditions of
this Section 2.3, and subject to the rights previously given to another tenant in the Building to build an additional 70 spaces in such location. 

        Tenant
acknowledges that Landlord has made no representations or warranties regarding the feasibility of, or requirements for, the use of the Property for the Additional Parking, for all
of which Tenant hereby assumes sole responsibility. Tenant shall, at Tenant's sole cost and expense, obtain all required waivers, permits and approvals of applicable governmental entities and other
third parties prior to commencing any such construction and shall provide copies thereof to Landlord. Tenant shall consult with Landlord and keep Landlord informed concerning the process of obtaining
any required waivers, permits and approvals and Landlord shall have the right to participate with Tenant in such process. Tenant's construction of the Additional Parking shall be subject to all of the
applicable terms and conditions of this Lease regarding alterations, including, without limitation, the applicable provisions of Section 5.2 and Exhibits TW and IR. Without limiting the
generality of the foregoing, Tenant shall submit all plans for construction to Landlord for its approval, and shall perform the construction using a contractor first approved by Landlord. Tenant shall
perform such construction subject to and in accordance all applicable laws, codes, rules, regulations, permits and approvals, including, without limitation any Environmental Laws. Landlord's approval
of Tenant's plans and Tenant's general contractor shall not impose upon Landlord any responsibility or liability whatsoever to Tenant, including, without limitation, as a result of, or arising out of,
the defaults or other acts or omissions of the general contractor. 

        After
construction of the Additional Parking, Tenant shall be solely responsible, at Tenant's sole cost and expense, to maintain and repair the Additional Parking, in good order
condition and repair, including, without limitation, any necessary snow removal. If Landlord shall request by written notice to Tenant at the time that Landlord approves the plans for such Additional
Parking, Tenant shall promptly, and in all cases prior to the expiration of such Term, remove the improvements constituting the Additional Parking and restore such portion of the Property to the
condition existing immediately prior to the construction thereof, at Tenant's sole cost and expense. 

        If
at any time during the Term, Landlord intends to develop the portion of the Property on which Tenant has the right to construct the Additional Parking, Landlord may deliver a written
notice to Tenant in which Landlord either (a) requires that Tenant remove the then existing improvements to the Property that constitute the Additional Parking, at Tenant's sole cost and
expense, within ninety (90) days after the date of such notice, or (b) informs Tenant that, if it has not yet constructed the Additional Parking, Tenant shall have no further right to
construct the Additional Parking. If Tenant has previously constructed the Additional Parking, Tenant shall cause such improvements to be removed within such ninety day period. 

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        2.4    OPTION TO EXTEND.    

        (a)   Provided
that, at the time of each such exercise, (i) this Lease is in full force and effect, (ii) no Default of Tenant shall have occurred and be
continuing (either at the time of exercise or at the commencement of an Extended Term), and (iii) Tenant shall not have assigned this Lease or vacated or sublet more than 20,000 rentable square
feet in the Premises, other than in connection with a transfer for which Landlord's consent is not required under Article VI (any of which conditions described in clauses (i), (ii), and
(iii) may be waived by Landlord at any time in Landlord's sole discretion), Tenant shall have the right and option to extend the Term of this Lease with respect to either the entire Premises,
or only the portion of the Premises on the second floor, or only the portion of the Premises on the third floor, for two extended terms (each an "Extended Term") of five (5) years each by
giving written notice to Landlord not later than twelve (12) months prior to the expiration date of the then current Term. The effective giving of such notice of extension by Tenant shall
automatically extend the Term of this Lease for the applicable Extended Term, and no instrument of renewal or extension need be executed. In the event that Tenant fails timely to give such notice to
Landlord, or if Tenant shall elect to extend the Term solely with respect to the second floor space or the third floor space, then this Lease shall automatically terminate with respect to the
remainder of the Premises at the end of the Initial Term, or the first Extended Term, as applicable, and Tenant shall have no further option to extend the Term of this Lease with respect to such
portion of the Premises. Each Extended Term shall commence on the day immediately succeeding the expiration date of the Initial Term, or the expiration of the first Extended Term, as applicable, and
shall end on the day immediately preceding the fifth (5th) anniversary of the first day of the Extended Term. The Extended Terms shall be on all the terms and conditions of this Lease, except:
(i) during the second Extended Term, Tenant shall have no further option to extend the Term, (ii) the Basic Rent for each Extended Term shall be ninety-five percent (95%) of
the Fair Market Rental Value of the Premises as of the commencement of the Extended Term, taking into account all relevant factors, determined pursuant to paragraph (b) below; and
(iii) if Tenant shall elect in such notice of extension to extend the Term for only the second floor space or the third floor space, the Premises thereafter shall solely refer to such space. 

        (b)   Promptly
after receiving Tenant's notice extending the Term of this Lease pursuant to paragraph (a) above, but in no event sooner than eleven months prior to the
end of the then current Term, Landlord shall provide Tenant with Landlord's good faith estimate of the Fair Market Rental Value of the Premises for the upcoming Extended Term based upon rents being
paid by tenants entering into leases for first-class office similar in size, build-out, amenities and term in the Medford/Charlestown area. If Tenant is unwilling to accept Landlord's
estimate of the Fair Market Rental Value as set forth in Landlord's notice referred to above, and the parties are unable to reach agreement thereon within thirty (30) days after the delivery of
such notice by Landlord, then either party may submit the determination of the Fair Market Rental Value of the Premises to arbitration by giving notice to the other party naming the initiating party's
arbitrator within ten (10) days after the expiration of such thirty (30) day period. Within fifteen (15) days after receiving a notice of initiation of arbitration, the responding
party shall appoint its own arbitrator by notifying the initiating party of the responding party's arbitrator. If the second arbitrator shall not have been so appointed within such fifteen
(15) day period, the Fair Market Rental Value of the Premises shall be determined by the initiating party's arbitrator. If the second arbitrator shall have been so appointed, then the two
arbitrators thus appointed shall make their own determination of Fair Market Rental Value and shall meet and confer in an effort to reconcile their respective determinations. If, within thirty
(30) days after the appointment of the second arbitrator, the two arbitrators have not reached agreement, and if the difference between the two (2) determinations is less than ten
percent (10%), then the average of the two determinations shall be the Fair Market Rental Value. If, however, the difference between the two (2) determinations is ten percent (10%) or more,
then the two arbitrators shall, within ten (10) days after the expiration of such thirty (30) day period, appoint a third arbitrator; in the event the two initial arbitrators are unable
timely to agree on the third arbitrator, then either may, on behalf of 

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both,
request such appointment by the American Arbitration Association, or its successor, or, on its failure, refusal or inability to act, by a court of competent jurisdiction. In such event, the
third arbitrator shall conduct its own independent investigation of the applicable Fair Market Rental Value within fifteen (15) days of his/her appointment; neither Landlord's arbitrator nor
Tenant's arbitrator shall notify the third arbitrator of its determination. After the third arbitrator has completed its determination, the third arbitrator shall notify Landlord and Tenant of the
date on which said arbitrator will discloses its determination, which date shall be at least five (5) days after the giving of such notice. Such disclosure shall take place in Landlord's office
unless otherwise mutually agreed by the parties. In such case, the Fair Market Rental Value shall be the rent proposed by either Landlord's arbitrator or Tenant's arbitrator, whichever value is closer
to the determination of the third arbitrator; if the two are equidistant from the third arbitrator, the Fair Market Rental Value shall be equal to the third arbitrator's determination. All arbitrators
shall be appraisers or other qualified real estate professionals who are independent from the parties who have had at least ten (10) years commercial real estate experience in the greater
Boston area. Each party shall pay the fees of its own arbitrator, and the fees of the third arbitrator shall be shared equally by the parties. 

        2.5    EXPANSION OPTION.    

        (a)   Subject
to the terms and conditions of this Section 2.5 and subject to the pre-existing rights of Transystems, Inc., as shown on  Exhibit FO, Tenant shall have the right to expand the Premises to
include 16,640 rentable square feet of space on the first floor of the Building, in
the location shown on Exhibit FP-1 ("Expansion Premises"), provided and on condition that (i) this Lease is in full force and effect, (ii) no Default of Tenant shall have
occurred and be continuing (either at the time of exercise or at upon the Expansion Premises Commencement Date), (iii) Tenant shall not have assigned this Lease or vacated or sublet more than
20,000 rentable square feet in the Premises, other than in connection with a transfer for which Landlord's consent is not required under Article VI (any of which conditions described in clauses
(i), (ii), and (iii) may be waived by Landlord at any time in Landlord's sole discretion). If Tenant shall give Landlord written notice no later than the date that is twelve months after the
date of this Lease electing to so expand the Premises, then Landlord shall deliver possession of the Expansion Premises to Tenant on the Expansion Premises Commencement Date (as defined below). If
Tenant shall fail to timely deliver such notice electing to so expand the Premises, Tenant shall be deemed to have waived such right, and Landlord shall thereafter be free to lease all or any portion
of the Expansion Premises to such parties and on such terms as Landlord shall determine in its sole discretion, subject to the provisions of Section 2.6 below. 

        (b)   Promptly
after the date of Tenant's notice, Landlord shall commence and use commercially reasonable efforts to perform certain improvements to the Expansion Premises in
order to fit out the space in accordance with a Building standard level of finish consistent with the level of finish for Landlord's Work in the remainder of the Premises, and a ratio of twenty
percent (20%) office space to eighty percent (80%) open space. Such work shall be performed in accordance with and subject to the requirements for Plans, timing of Landlord's Work, Tenant Delay,
punchlist, warranty, and other requirements applicable to the initial Premises set forth in Article IV below. The date that Landlord has substantially completed such work and delivered the
Expansion Premises to Tenant is hereinafter referred to as the "Expansion Premises Commencement Date". Landlord shall use commercially reasonable efforts to deliver the Expansion Premises to Tenant on
or before the date that is five (5) months after the date of Tenant's notice. As of the Expansion Premises Commencement Date, the Premises under this Lease shall be expanded to include the
Expansion Premises. Once incorporated into the Premises, Tenant's rights and obligations with respect to the Expansion Premises shall be subject to and with the benefit of all of the terms and
conditions of this Lease, except that: (i) the Basic Rent per square foot applicable to the Expansion Premises shall equal the Basic Rent per square foot for the remainder of the Premises;
(ii) the Term of the Lease with respect to the Expansion Premises shall be coterminous with the remainder of the Premises; (iii) Tenant shall commence 

7

 

payment
of such additional amount of Basic Rent with respect to the First Expansion Premises on the Expansion Premises Commencement Date; and (iv) the Escalation Factor shall be revised to
reflect the addition of the Expansion Premises to the Premises in accordance with the Escalation Factor Computation. Promptly after the Expansion Premises Commencement Date, Landlord and Tenant agree
to enter into an amendment to this Lease memorializing the addition of the Expansion Premises to this Lease and the amendment to the applicable defined terms hereunder, including, without limitation,
Premises, Basic Rent, Term and Escalation Factor, but failure of the parties to execute such an amendment shall have no effect on the expansion of the Premises to include the Expansion Premises, and
the economic terms associated therewith, as set forth above. 

        2.6    RIGHT OF FIRST OFFER.    

        (a)   Subject
to the terms and conditions of this Section 2.6 and subject to the pre-existing rights of the tenants or other occupants of the Building set
forth in Exhibit FO, Tenant shall have a "Right of First Offer" to lease any office space that is available for lease to third parties in the Building
during the Term of this Lease (the "First Offer Space"), including, without limitation, office space leased to a third party after Tenant has elected not to exercise, and/or has failed to exercise,
whichever the case may be, such rights under this Section 2.6 with respect to said space, provided and on condition that (i) this Lease is in full force and effect, (ii) no
Default of Tenant shall have occurred and be continuing (either at the time of exercise or upon the commencement date of the Term for the First Offer Space), (iii) Tenant shall not have
assigned this Lease or vacated or sublet more than 20,000 rentable square feet in the Premises, other than in connection with a transfer for which Landlord's consent is not required under
Article VI (any of which conditions described in clauses (i), (ii), and (iii) may be waived by Landlord at any time in Landlord's sole discretion). 

        (b)   Landlord
will notify Tenant of its plans to lease any portion of the First Offer Space to any unrelated third party. Landlord's notice shall specify the square footage
of the space and its location, the date of availability, the term of the lease for such space, the Basic Rent for such space, and all other material terms and conditions which will apply to such
space. Notwithstanding the foregoing, if Landlord shall offer such space to Tenant during the first twelve months after the Commencement Date, such First Offer Space shall be upon the same terms and
conditions as set forth for the Expansion Premises under Section 2.5 above. Tenant will notify Landlord within ten (10) Business Days of Landlord's notice if Tenant wishes to lease such
First Offer Space from Landlord on the terms and conditions so specified and otherwise on substantially the same terms and conditions as contained in this Lease. If Tenant notifies Landlord that it
wishes to lease the First Offer Space, Landlord and Tenant shall execute a lease agreement or amendment to this Lease within ten (10) Business Days incorporating substantially such terms and
conditions. If Tenant fails to notify Landlord within said seven day period that Tenant intends to lease such First Offer Space or fails to execute a lease agreement for such First Offer Space within
ten (10) Business Days of Tenant's notice of intent to Landlord, Landlord shall be entitled to lease such space to any third party on terms and conditions acceptable to Landlord in its sole
discretion. Notwithstanding the foregoing, if Tenant shall not exercise its Right of First Offer and Landlord intends to lease the First Offer Space for a net effective rent (taking into consideration
any difference in the improvements allowance or other economic concessions offered to such third party but not to Tenant) that is less than ninety percent (90%) of the net effective rent contained in
Landlord's notice to Tenant, prior to leasing such First Offer Space to any unrelated third party, Landlord shall again offer the First Offer Space to Tenant, at such revised terms and conditions
offered to such third party, and Tenant shall again have a Right of First Offer pursuant to this Section 2.6. 

        2.7    STORAGE SPACE.    

        (a)   Landlord
shall lease to Tenant and Tenant shall accept from Landlord certain storage space consisting of approximately 1,000 rentable square feet on the garage level of
the Building (the "Storage 

8

 

Area"),
located as shown on Exhibit FP-2, attached hereto and made a part hereof. The Storage Area shall be used by Tenant solely for storage purposes as an ancillary use in connection
with Tenant's use of the Premises. The Storage Area shall be held by Tenant commencing on the Commencement Date and continuing thereafter throughout the Term of this Lease, subject to this
Section 2.7. There shall be no additional charges due in respect of Tenant's use of the Storage Space. 

        (b)   During
the term of this Lease, the Storage Area shall be occupied by Tenant in accordance with and subject to all of the terms and conditions of this Lease. Without
limiting the generality of the foregoing (i) Tenant shall extend the coverage of the insurance provided for by Article X of this Lease to the Storage Area; (ii) Tenant shall
maintain the Storage Area and repair any damage to the Storage Area caused by Tenant, its agents, contractors or employees; (iii) Landlord shall retain access to the Storage Area and shall be
entitled to enter the Storage Area in accordance with the terms and conditions of Article XI; and (iv) upon expiration or earlier termination of this Lease, Tenant shall quit and
surrender the same to Landlord, broom clean, and with any damage due to Tenant's use thereof repaired. Landlord may require Tenant at its own expense to secure the Storage Area, but Tenant shall make
no other changes to the Storage Area without Landlord's prior written approval. Tenant agrees that it is accepting the Storage Area in "as is" condition without representation or warranty by Landlord. 

ARTICLE III

BASIC RENT  

        3.1    PAYMENT.    

        (a)   Tenant
agrees to pay to Landlord, or as directed by Landlord, commencing on the Rent Commencement Date without offset, abatement (except as expressly provided in this
Lease), deduction or demand, the Basic Rent. In addition, within ten (10) days after receipt of written notice from Landlord, which notice shall be given no earlier than the date that is three
(3) months prior to the Rent Commencement Date, Tenant shall deposit with Landlord the sum of $216,118.66 as a deposit of the first month's Basic Rent which shall be applied by Landlord on
behalf of the Tenant to the payment of the first month's Basic Rent when due and payable. Such Basic Rent shall be payable in equal monthly installments, in advance, on the first day of each and every
calendar month (except as hereinabove provided) during the Term of this Lease, at the following address: Cabot Road Partners, L.L.C., P. O. Box 31367, Hartford, Connecticut 06150-1367, or
at such other place as Landlord shall from time to time designate by notice, by check drawn on a bank which is a member of the Boston or New York Clearing House. Until notice of some other designation
is given, Basic Rent and all other charges for which provision is herein made shall be paid by remittance payable to the Agent, and all remittances so received as aforesaid, or by any subsequently
designated recipient, shall be treated as a payment to Landlord. Landlord and Tenant agree that all amounts due from Tenant under or in respect of this Lease, whether labeled Basic Rent, Escalation
Charges, additional charges or otherwise, shall be considered as rental reserved under this Lease for all purposes, including without limitation regulations promulgated pursuant to the Bankruptcy
Code, and including further without limitation Section 502(b) thereof. 

        (b)   Basic
Rent for any partial month shall be pro-rated on a daily basis, and if Basic Rent commences on a day other than the first day of a calendar month, the
first payment which Tenant shall make to Landlord shall be payable on the date Basic Rent commences and shall be equal to a proportionate part of the monthly installment of Basic Rent for the partial
month in which Basic Rent commences plus the installment of Basic Rent for the succeeding calendar month. Rental and any other sums due hereunder not paid within five (5) Business Days after
the date due more than once in any twelve month period shall bear interest for each month or fraction thereof from the due date until paid computed at the annual rate of three percentage points over
the so-called prime rate then currently from time to time charged to its most favored corporate customers by Bank of America or its successors, or at any applicable lesser maximum legally
permissible rate for debts of this nature. 

9

   ARTICLE IV

COMMENCEMENT DATE AND CONDITION  

        4.1    COMMENCEMENT DATE.    The "Commencement Date" shall be the last to occur of: 

        (a)   the
day following the Substantial Completion Date, as defined in Section 4.2, or 

        (b)   the
Scheduled Commencement Date set forth in Section 1.3 hereof. 

Notwithstanding
the foregoing, if Tenant's personnel shall occupy all or any part of the Premises for the conduct of its business (as opposed to entry to prepare the same for occupancy) prior to the
Commencement Date as determined pursuant to the preceding sentence, except any such entry for the purpose of setting up and operating a data center at the Premises, such date of occupancy shall, for
all purposes of this Lease, be the Commencement Date. Promptly upon the occurrence of the Commencement Date, Landlord and Tenant shall execute and deliver a letter designating the Commencement Date,
but the failure by either party to execute and deliver such a letter shall have no effect on the Commencement Date, as hereinabove determined. Landlord shall permit Tenant reasonable access to the
Premises prior to the Commencement Date so that Tenant may install furniture, equipment, cabling and fixtures, and operate a data center (the "Data Center") in the Premises, and perform such other
actions as Tenant deems desirable to prepare for occupancy of the Premises on the Commencement Date. Any such access shall be subject to and upon all of the terms and conditions of this Lease other
than the payment of Basic Rent and Escalation Charges. 

        4.2    PREPARATION OF THE PREMISES.    

        (a)   

          (i)  Within
ten (10) Business Days after Tenant has given to Landlord sufficient information concerning (A) telephone/data wiring and cabling to workstations,
(B) program information for power/data, and
(C) systems tie-in information from the Cavan Group, Landlord shall cause the construction drawings for the improvements to the portion of the Premises that will constitute the Data
Center (the "Data Center Plans") to be prepared in accordance with the space plan and work specifications attached hereto and made a part hereof as Exhibit
SP-1 (the "Data Center Space Plan"), and in compliance with all applicable laws, regulations and ordinances, including without limitation the Americans With
Disabilities Act of 1990. The Data Center Plans shall be submitted to Tenant within said ten (10) Business Day period for its approval, which shall not be unreasonably withheld. Tenant shall
notify Landlord of its approval or disapproval of the Data Center Plans within five (5) Business Days after receipt thereof. Any disapproval shall be accompanied by a specific statement of the
reasons therefor. Within ten (10) Business Days after receipt of Tenant's disapproval, Landlord shall revise the Data Center Plans and resubmit them to Tenant, which shall have three
(3) Business Days after receipt of the resubmission to review and respond thereto. 

         (ii)  Within
thirty (30) days after Tenant has given to Landlord sufficient information concerning (A) telephone/data wiring and cabling to workstations,
(B) program information for power/data, and (C) systems tie-in information from the Cavan Group, Landlord shall cause the construction drawings for the interior finish and
other tenant improvements to the Premises (the "Premises Plans") to be prepared in accordance with Building standard tenant finish as described in Exhibit
BS, the space and work specifications attached hereto and made a part hereof as Exhibit SP-2 (the "Premises Space
Plan"), and in compliance with all applicable laws, regulations and ordinances, including without limitation the Americans With Disabilities Act of 1990. The Premises Plans shall be submitted to
Tenant within said thirty (30) day period for its approval, which shall not be unreasonably withheld. Tenant shall notify Landlord of its approval or disapproval of the Premises Plans within
five (5) Business Days after receipt thereof. Any disapproval shall be accompanied by a specific statement of the reasons therefor. Within ten (10) Business Days after 

10

 

receipt
of Tenant's disapproval, Landlord shall revise the Premises Plans and resubmit them to Tenant, which shall have three (3) Business Days after receipt of the resubmission to review and
respond thereto. 

        (iii)  The
final approved Premises Plans and Data Center Plans hereunder shall be referred to collectively as the "Approved Plans." Landlord shall be responsible for the
architect's fees in connection with the preparation of the Data Center Space Plan and the Premises Space Plan up to an amount equal to $13,649.60. In addition, Landlord shall be solely responsible for
the architect's fees in connection with the preparation of the Approved Plans. 

        (b)   Promptly
after approval of the Approved Plans, Landlord shall obtain all necessary permits and approvals and commence and exercise all reasonable efforts to complete the
work described in the Approved Plans ("Landlord's Work"). Landlord's Work shall be performed at Landlord's sole cost and expense, subject to the provisions of paragraph (c) below. Landlord
agrees to complete Landlord's Work in a good and workmanlike manner and in compliance with all applicable laws, regulations and ordinances, including without limitation the Americans With Disabilities
Act of 1990. Landlord agrees to use reasonable efforts to substantially complete the portion of Landlord's Work as set forth in the Data Center Plans on or before the date (the "Scheduled Data Center
Completion Date") that is forty-five (45) days after the Data Center Plans have been approved and Landlord has obtained all applicable permits and approvals required to perform such
work, subject to Tenant Delay and Force Majeure. Landlord agrees to use reasonable efforts to substantially complete the remainder of Landlord's Work by the Scheduled Commencement Date subject to
Tenant Delay and Force Majeure. If Landlord has not substantially completed the portion of Landlord's Work for the Data Center on or before the Scheduled Data Center Completion Date, except as a
result of Force Majeure or Tenant Delay, Tenant shall be entitled to an abatement of one (1) day of Basic Rent (but not Additional Rent or other charges) applicable to the Data Center for every
one (1) day delay in the occurrence of the substantial completion of such portion of Landlord's Work after the Scheduled Data Center Completion Date. If Landlord has not substantially completed
the remainder of Landlord's Work on or before February 1, 2005, except as a result of Force Majeure or Tenant Delay, Tenant shall be entitled to an abatement of one (1) day of Basic Rent
(but not Additional Rent or other charges) applicable to the entire Premises for every one (1) day delay in the occurrence of the substantial completion of the remainder of Landlord's Work
after February 1, 2005. If Landlord has not substantially completed Landlord's Work as of April 1, 2005, subject to Force Majeure and Tenant Delay, Tenant shall have the right to
terminate this Lease by written notice to Landlord given on or before April 10, 2005. The foregoing rights in the event of a delay in the substantial completion of Landlord's Work shall be
Tenant's sole and exclusive remedies for such delay. 

        (c)   The
term "Change Order" as used in this Lease shall mean any change to the approved Plans requested by Tenant and Approved by Landlord, which shall not be unreasonably
withheld, conditioned or delayed. Within five (5) Business Days after receipt by Landlord of a Change Order request, Landlord shall provide to Tenant a notice of the estimated adjustment, if
any, in the cost of Landlord's Work and the estimated delay, if any, in the substantial completion of Landlord's Work beyond the scheduled Substantial Completion Date (as the same may have been
previously modified by a prior Change Order) resulting from the Change Order. Within three (3) Business Days after receipt of Landlord's notice, Tenant shall have the option to cancel the
Change Order in writing to the Landlord within said three (3) Business Day period. The estimated adjustment in the cost of Landlord's Work shall be determined by (i) adding the
architectural and engineering fees (if any) associated with reviewing and revising the Plans in connection with the Change Order, the cost of the materials and labor attributable to the Change Order,
the contractor's overhead and profit attributable to the work described in the Change Order (which shall be calculated at the same rate used in the construction contract for Landlord's Work), the
increased costs (if any) of various trade contractors due to delay in completing Landlord's Work, and the costs (if any) associated with the cancellation of materials already 

11

 

ordered,
and (ii) subtracting from such costs the cost of materials and labor attributable to the work (if any) not being done, the contractor's overhead and profit on the such materials and
labor, the cost of the cancelled materials, and the cost of any other savings attributable to the Change Order. In the event there is a net increase in the cost of Landlord's Work as a result of the
Change Order, then Tenant shall pay to Landlord the amount of the net increase (less the amount of any retainage contained in Landlord's construction contract) in two (2) equal installments,
the first of which shall be paid within twenty (20) days after Tenant shall have approved the Change Order and the second of which shall be paid within thirty (30) days after the work
described on the Change Order has been substantially completed; Tenant agrees to pay the retainage to Landlord simultaneously with the payment of the 2nd installment. 

        (d)   The
Premises shall be deemed ready for occupancy on the first day on which (i) Landlord's Work has been completed, except for minor items of work (and, if
applicable, adjustment of equipment and fixtures) which can be completed after occupancy has been taken without causing unreasonable interference with Tenant's use and enjoyment of the Premises (i.e.
so-called "punchlist" items), (ii) the Building systems serving the Premises are in good working order and otherwise in the condition required to be maintained by Landlord under
this Lease, and (iii) Landlord has obtained a permanent certificate of occupancy for the Premises permitting Tenant to use the Premises for the Permitted Use. Such date is hereinafter called
the "Substantial Completion Date." Within five (5) Business Days after the occurrence of the Substantial Completion Date, Landlord and Tenant shall inspect the Premises and shall prepare a
punchlist of remaining items to be completed. Landlord shall complete all punchlist items as soon as conditions permit, and in all events within sixty (60) days, and Tenant shall afford
Landlord access to the Premises for such purposes. 

        4.3    CONDITION; LANDLORD'S PERFORMANCE.    In addition to the punchlist described in Section 4.2(d), Tenant
shall have the right to give Landlord a notice, not later than twelve (12) calendar months after the Commencement Date, of (i) any respects in which Landlord has not performed Landlord's
Work fully, properly and in accordance with the terms of this Lease, or (ii) any respects in which Landlord's Work is not in good working order and condition, or (iii) any defects in
workmanship
and materials in Landlord's Work. Except as identified in any such notice from Tenant to Landlord, Tenant shall have no right to make any claim that Landlord has failed to perform any of Landlord's
Work fully, properly and in accordance with the terms of this Lease or to require Landlord to perform any further Landlord's Work. Landlord shall complete, repair and/or replace such items as soon as
conditions permit, and in all events within sixty (60) days after written notice from Tenant and Tenant shall afford Landlord access to the Premises for such purposes. Except for Landlord's
Work, the Premises are being leased in their present condition, and except as set forth in the immediately preceding sentence, are being leased AS IS, WITHOUT REPRESENTATION OR WARRANTY by Landlord. 

        4.4    TENANT'S DELAYS.    The delays referred to in paragraph (a) are herein referred to collectively and
individually as "Tenant's Delay": 

        (a)   If
a delay shall occur in the Substantial Completion Date beyond the Scheduled Commencement Date as the result of: 

          (i)  any
delay by Tenant in approving the Data Center Plans and/or the Premises Plans beyond the periods set forth in Section 4.2 above; or 

         (ii)  any
request by Tenant that Landlord delay the commencement or completion of Landlord's Work for any reason; or 

        (iii)  any
reasonably necessary displacement of any of Landlord's Work from its place in Landlord's construction schedule resulting from any of the causes for delay referred
to in this paragraph (a) and the fitting of such Landlord's Work back into such schedule; and 

12

 

if
Landlord shall notify Tenant of such delay within two (2) days of the commencement of such delay (which notice shall include the estimated duration of such delay), then such delay shall
constitute a Tenant Delay; provided, however, if Landlord fails to give Tenant notice of a delay within said two (2) day period, then such delay shall not constitute a Tenant Delay for the
purposes of this Lease. The parties agree that the Substantial Completion Date shall be deemed accelerated by the actual number of days of delay attributable to Tenant Delays. 

        (b)   In
addition, if Landlord notifies Tenant in a Change Order of an estimated delay in the substantial completion of Landlord's Work beyond the scheduled Substantial
Completion Date due to the work
described in said Change Order, and if a delay actually occurs, then such delay shall constitute a Tenant Delay and the Substantial Completion Date shall be deemed accelerated by the actual number of
days of delay attributable to such Change Order. 

ARTICLE V

USE OF PREMISES  

        5.1    PERMITTED USE.    

        (a)   Tenant
agrees that the Premises shall be used and occupied by Tenant only for Permitted Uses and for no other purpose. 

        (b)   Tenant
agrees to conform to the following provisions during the Term of this Lease: 

          (i)  Service
and utility areas (whether or not a part of the premises) shall be used only for the particular purpose for which they were designed. Subject to the other terms
and provisions of this Lease, Tenant may install at its own cost and expense so-called hot-cold water fountains, coffee makers, microwaves and so-called Dwyer
refrigerator-sink-stove combinations for the preparation of beverages and foods, provided that no cooking, frying, etc., are carried on in the Premises which require special
exhaust venting. Tenant hereby acknowledges that the Building is not engineered to provide any such special venting. 

         (ii)  Tenant
shall cause all freight to be delivered to or removed from the Building and the Premises in accordance with reasonable rules and regulations established by
Landlord in accordance with Section 14.7; 

        (iii)  Tenant
will not place on the exterior of the Premises (including both interior and exterior surfaces of doors and interior surfaces of windows) or on any part of the
Building outside the Premises, any signs, symbol, advertisement or the like, except as provided in this clause (iii). Landlord shall not unreasonably withhold or delay its consent with respect
to the installation of signs or lettering on the entry doors to the Premises provided such signs conform to then Building standards adopted by Landlord in its sole discretion; Tenant shall submit to
Landlord a plan or sketch of the sign (including size, color, material, location and method of affixation) to be placed on or at such entry doors in connection with Tenant's request for Landlord's
consent. Landlord shall pay for the cost of any Building-standard suite entry signage selected by Tenant, and Tenant shall pay for any additional costs and expenses with respect to any above
Building-standard signage selected by Tenant and approved by
Landlord as aforesaid. Landlord agrees to maintain a tenant directory in the lobby of the Building in which will be placed Tenant's name and the location of the Premises in the Building, and a
directory on each floor with the names of up to five of Tenant's departments. 

        In
addition, subject to the approval of applicable governmental authorities, Landlord hereby consents to the installation of Tenant's sign on the exterior of the east side of the
Building, as conceptually depicted and in the location specified on Exhibit ES, which shall be purchased and installed at Tenant's sole cost and
expense. Upon the expiration or earlier termination of this Lease, Tenant shall remove the sign (but not the supports) from the exterior of the Building, 

13

 

remove
the supports for such Building sign (unless other directed by Landlord), repair any damage to the Building's exterior caused by such removal, and restore the exterior of the Building to the
condition existing prior to the placement of such sign and support on the Building, reasonable wear and tear and damage by fire or other casualty excepted. 

        Landlord
hereby agrees further to place Tenant's name on the monument sign at the entrance to the Building, which signage shall be consistent with the Building standard graphics and
lettering for the monument sign; 

        (iv)  Notwithstanding
any provision of this Lease, Tenant shall not use, or suffer or permit the use or occupancy of, or suffer or permit anything to be done in or anything
to be brought into or kept in or about the Premises of the Building or any part thereof (including, without limitation, any materials appliances or equipment used in the construction or other
preparation of the Premises and furniture and carpeting): (a) for any unlawful purposes or in any unlawful manner; (b) which, in the reasonable judgment of Landlord shall in any way
materially impair, interfere with or otherwise diminish the quality of any of the Building services or the proper and economic heating, cleaning, ventilating, air conditioning or other servicing of
the Building, or Premises, or with the use or occupancy of any of the other areas of the Building, which is consistent with the maintenance of the Building as an office building of the first class in
the quality of its maintenance, use, or occupancy; 

         (v)  Tenant
shall not perform any act or carry on any practice which may injure the Premises, or any other part of the Building, or cause any offensive odors or loud noise or
constitute a nuisance or a menace to, or otherwise interfere with the business of, any other tenant or tenants or other persons in the Building; 

        (vi)  Tenant
shall comply with the requirements of all applicable governmental laws, rules and regulations, including without limitation the Americans With Disabilities Act
of 1990, to the extent such compliance is required as a result of the specific manner in which Tenant is using the Premises, Tenant's layout of the Premises, or any alterations or improvements
performed by Tenant subsequent to the completion of Landlord's Work; and 

       (vii)  If
any governmental license or permit shall be required for the proper and lawful conduct of Tenant's business, and if the failure to secure such licenses or permit
would in any way affect Landlord, the Premises, the Building or Tenant's ability to perform any of its obligations under this Lease, Tenant, at Tenant's expense, shall duly procure and thereafter
maintain such license and, upon request by Landlord, submit the same to inspection by Landlord. Tenant, at Tenant's expense, shall at all times comply with the terms and conditions of each such
license or permit. Tenant shall furnish all data and information to governmental authorities and Landlord as required in accordance with legal, regulatory, licensing or other similar requirements as
they relate to Tenant's use or occupancy of the Premises or the Building. 

        (c)   Landlord
shall comply with the requirements of all applicable governmental laws, rules and regulations, including without limitation the Americans With Disabilities Act
of 1990, applicable to the Building and, to the extent Tenant is not obligated to comply therewith under clause (vi) of Section 5.1(b), to the Premises; provided, however, Landlord's
failure to comply with such laws, rules and regulations with respect to any portion of the Property outside the Premises shall not constitute a default under Section 13.2 unless (i) such
failure unreasonably interferes with Tenant's access to the Premises or with Tenant's use and enjoyment of the Premises and/or the Common Areas or (ii) Tenant may be subject to a fine, penalty
or enforcement action as a result of such failure. 

        5.2    INSTALLATIONS AND ALTERATIONS BY TENANT.    

        (a)   Except
as expressly provided herein, Tenant shall make no alterations, additions (including, for the purposes hereof, wall-to-wall carpeting), or
improvements in or to the Premises (including any 

14

 

initial
improvements necessary for Tenant's occupancy) without Landlord's prior written consent, which shall not be unreasonably withheld, conditioned or delayed with respect to
non-structural alterations that do not adversely affect any of the Building systems. Landlord's consent shall not be required for (i) any purely cosmetic alteration that does not
affect any Building system, and (ii) any non-structural alteration that does not affect any Building system and costs less than $50,000 in any one instance. Any alterations,
additions or improvements for which Landlord's consent is required shall (i) be in accordance with complete plans and specifications meeting the requirements set forth in Exhibit PR and
approved by Landlord, (ii) be in accordance with the standards set forth in Exhibit BS attached hereto, (iii) be made only in accordance with the procedures set forth in Exhibit TW
attached hereto by contractors or mechanics approved by Landlord, (iv) be made at Tenant's sole expense and at such reasonable times and in such reasonable manner as Landlord may from time to
time designate and (v) upon installation, become part of the Premises and the property of Landlord, provided that Landlord reserves the right, at the time that Landlord consents to such
alterations, to require the removal of any non-standard office alterations upon the expiration or earlier termination of the Term of this Lease. Notwithstanding the foregoing, Tenant shall
not be required to remove any items of Landlord's Work installed as part of Tenant's initial occupancy of the Premises, nor any wiring or cabling installed by Tenant from time to time during the Term. 

        (b)   All
articles of personal property and all business fixtures, machinery and equipment and furniture owned or installed by Tenant solely at its expense in the Premises
("Tenant's Removable Property") shall remain the Property of Tenant and may be removed by Tenant at any time prior to the expiration of this Lease, provided that Tenant, at its expense, shall repair
any damage to the Building caused by such removal. 

        (c)   Notice
is hereby given that Landlord shall not be liable for any labor or materials furnished or to be furnished to Tenant upon credit, and that no mechanic's or other
lien for any such labor or materials shall attach to or affect the reversion or other estate or interest of Landlord in and to the Premises. To the maximum extent permitted by law, at such time as any
contractor commences to perform work on behalf of Tenant, such contractor (and any subcontractors) shall furnish a written statement acknowledging the provisions set forth in the previous sentence.
Whenever and as often as any mechanic's lien shall have been filed against the Property based upon any act or interest of Tenant or of anyone claiming through Tenant, Tenant shall forthwith take such
action by bonding, deposit or payment as will remove or satisfy the lien. 

        (d)   In
the course of any work being performed by Tenant, (other than "field installations" of Tenant's Removable Property and the installation of any wiring and cabling),
Landlord reserves the right to require Tenant to employ union labor compatible with that being employed by Landlord for work in or to the Building, and not to employ or permit the use of any labor or
otherwise take any action which might result in a labor dispute involving personnel providing services or construction in the Building pursuant to arrangements made by Landlord. 

        5.3    HAZARDOUS MATERIALS.    

        (a)   Tenant
may use chemicals such as adhesives, lubricants, ink, solvents and cleaning fluids of the kind and in amounts and in the manner customarily found and used in
business offices in order to conduct its business at the Premises and to maintain and operate the business machines located in the Premises. Tenant shall not use, store, handle, treat, transport,
release or dispose of any other Hazardous Materials on or about the Premises or the Property without Landlord's prior written consent, which Landlord may withhold or condition in Landlord's sole
discretion. 

        (b)   Any
handling, treatment, transportation, storage, disposal or use of Hazardous Materials by Tenant in or about the Premises or the Property and Tenant's use of the
Premises shall comply with all applicable Environmental Laws. 

15

 

        (c)   Tenant
shall indemnify, defend upon demand with counsel reasonably acceptable to Landlord, and hold Landlord harmless from and against, any liabilities, losses claims,
damages, interest, penalties, fines, attorneys' fees, experts' fees, court costs, remediation costs, and other expenses which result from the use, storage, handling, treatment, transportation,
release, threat of release or disposal of Hazardous Materials in or about the Premises or the Property by Tenant or Tenant's agents, employees, contractors or invitees. 

        (d)   Tenant
shall give written notice to Landlord as soon as reasonably practicable of (i) any communication received by Tenant from any governmental authority
concerning Hazardous Materials which relates to the Premises or the Property, and (ii) any Environmental Condition, of which Tenant is aware, on the Premises, or elsewhere on the Property if
caused by Tenant or anyone claiming by through or under Tenant. 

        (e)   Landlord
covenants that, as of the Commencement Date, the Premises shall be free of Hazardous Materials. 

ARTICLE VI

ASSIGNMENT AND SUBLETTING  

        6.1    PROHIBITION.    

        (a)   Except
as otherwise provided in this Article VI, Tenant covenants and agrees that whether voluntarily, involuntarily, by operation of law or otherwise neither
this Lease nor the term and estate hereby granted, nor any interest herein or therein, will be assigned, mortgaged, pledged, encumbered or otherwise transferred and that neither the Premises nor any
part thereof will be encumbered in any manner by reason of any act or omission on the part of Tenant, or used or occupied or permitted to be used or occupied, by anyone other than Tenant, or for any
use or purpose other than a Permitted Use, or be sublet (which term, without limitation, shall include granting of concessions, licenses and the like) in whole or in part, or be offered or advertised
for assignment or subletting without, in each case, the prior written consent of Landlord. Without limiting the foregoing, any agreement pursuant to which: (x) Tenant is relieved from the
obligation to pay, or a third party agrees to pay on Tenant's behalf, all or any portion of Basic Rent, Escalation Charges or other charges due under this Lease; and/or (y) a third party
undertakes or is granted the right to assign or attempt to assign this Lease or sublet or attempt to sublet all or any portion of the Premises, shall for all purposes hereof be deemed to be an
assignment of this Lease and subject to the provisions of this Article VI. The provisions of this paragraph (a) shall apply to a transfer (by one or more transfers) of a majority of the
stock or partnership interests or other evidences of ownership of Tenant as if such transfer were an assignment of this Lease, except any such transfer occurring on a recognized public stock exchange,
or any such transfer complying with the provisions of paragraph (b) below. 

        (b)   The
provisions of paragraph (a) shall not apply to either: (x) transactions with an entity into or with which Tenant is merged or consolidated, or to which
substantially all of Tenant's assets are transferred; or (y) transactions with any entity which controls or is controlled by Tenant or is under common control with Tenant; provided that in
either such event: 

          (i)  the
successor to Tenant's interest under this Lease pursuant to clause (x) above has a net worth computed in accordance with generally accepted accounting
principles consistently applied at least equal to the net worth of Tenant herein named on the date of this Lease, and proof reasonably satisfactory to Landlord of such net worth shall have been
delivered to Landlord at least 10 days prior to the effective date of any such transaction (subject to any confidentiality requirements of applicable laws, in which case such disclosure may be
made within ten (10) days subsequent to such transaction), and 

16

 

         (ii)  any
assignee agrees directly with Landlord, by written instrument in form satisfactory to Landlord, to be bound by all the obligations of Tenant hereunder including,
without limitation, the covenant against further assignment and subletting. 

        (c)   Provided
that Tenant is not in default of any of Tenant's obligations under this Lease beyond applicable notice and cure periods, Landlord's consent to a proposed
assignment or sublease shall not be unreasonably withheld or delayed, and shall be given or withheld within twenty (20) days after receipt of all information required from Tenant hereunder,
provided and upon condition that: 

          (i)  In
Landlord's reasonable judgment the proposed assignee or subtenant is engaged in a business which is in keeping with the then standards of the Building and Property
and the proposed use is limited to the Permitted Use; 

         (ii)  The
proposed assignee or subtenant is a reputable person or entity with sufficient financial worth considering the responsibility involved, based on evidence provided
by Tenant (and others) to Landlord, as determined by Landlord in its reasonable discretion; 

        (iii)  Neither
(A) the proposed assignee or sublessee nor (B) any person or entity which, directly or indirectly, controls, is controlled by, or is under common
control with, the proposed assignee or sublessee or any person or entity who controls the proposed assignee or sublessee, is then an occupant of any part of the Property, provided that Landlord then
has comparable space to lease to such party; 

        (iv)  The
proposed assignee or sublessee is not a person or entity to or from whom Landlord has sent or received a letter of intent or other written expression of interest in
the prior ninety (90) day period for the lease of space at the Property comparable in terms of size and finish as the Premises (or the applicable portion of the Premises to be sublet); and 

         (v)  The
proposed sublease or assignment shall be in form reasonably satisfactory to Landlord and shall comply with the applicable provisions of this Article 6. 

        (d)   If
Landlord shall refuse consent to a request to assign or sublease, Landlord's notice shall set forth the reasons for denying such consent. If Landlord shall fail to
respond to Tenant within such twenty (20) day period, and if such failure shall continue for an additional ten (10) days after an additional written notice from Tenant, which notice
shall specifically reference this Section 6.1 and shall state, in bold, uppercase, prominent letters that failure to respond within such ten (10) day period shall be deemed approval by
Landlord of such request, then Landlord shall be deemed to have approved the proposed assignment or sublease. 

        6.2    EXCESS PAYMENTS.    If Tenant assigns this Lease or sublets the Premises or any portion thereof, except
pursuant to the provisions of Section 6.1(b) above, Tenant shall pay to Landlord as additional rent fifty percent (50%) of the amount, if any, by which (a) any and all compensation
received by Tenant as a result of such assignment or subletting, net of reasonable expenses actually incurred by Tenant in connection with such assignment or subletting (including, without limitation,
the cost of any leasehold improvements provided for such assignee or subtenant and the value of any reasonable and customary free rent, work allowance or other concessions provided to such party),
exceeds (b) the allocable portion of the applicable Basic Rent and Escalation Charges attributable to the portion of the Premises so sublet or assigned. After Tenant has fully recovered its
reasonable expenses, Tenant shall commence paying to Landlord its share of such excess payments to the extent Tenant actually receives such payment; such payments shall be made on the date the
corresponding payments under this Lease are due. Notwithstanding the foregoing, the provisions of this Section 6.2 shall impose no obligation on Landlord to consent to an assignment of the
Lease or a subletting of all or a portion of the Premises. 

17

 

        6.3    ACCEPTANCE OF RENT.    If, in violation of this Article 6, this Lease be assigned, or if the Premises or
any part thereof be sublet or occupied by anyone other than Tenant, Landlord may, at any time and from time to time, collect rent and other charges from the assignee, subtenant or occupant, and apply
the net amount collected to the rent and other charges herein reserved, but no such assignment, subletting, occupancy, collection or modification of any provisions of this Lease shall be deemed a
waiver of this covenant, or the acceptance of the assignee, subtenant or occupant as a tenant or a release of Tenant from the further performance of covenants on the part of Tenant to be performed
hereunder. Any consent by Landlord to a particular subletting or occupancy shall not in any way diminish the prohibition stated in paragraph (a) of this Section 6.1 or the continuing
liability of the original named Tenant. No assignment or subletting hereunder shall relieve Tenant from its obligations hereunder and Tenant shall remain fully and primarily liable therefor. No such
assignment, subletting, or occupancy shall affect or be contrary to Permitted Uses. Any assignment, subletting or occupancy shall be void ab initio, if
the same shall fail to require that such assignee, subtenant or occupant agree therein to be independently bound by and upon all of the covenants, agreements, terms, provisions and conditions set
forth in this Lease on the part of Tenant to be kept and performed, except, in the case of a subtenant, limited to the portion of the Premises proposed to be sublet. 

        6.4    ADDITIONAL REQUIREMENTS.    Tenant shall reimburse Landlord on demand, as Additional Rent, for any reasonable
out-of-pocket costs (including reasonable attorneys' fees and expenses) incurred by Landlord in connection with any actual or proposed assignment or sublease or other act
described in paragraph (a) of Section 6.1, whether or not consummated, including the costs
of making investigations as to the acceptability of the proposed assignee or subtenant. Any sublease to which Landlord gives its consent shall not be valid unless and until Tenant and the sublessee
execute a consent agreement in form and substance satisfactory to Landlord in its reasonable discretion and a fully executed counterpart of such sublease has been delivered to Landlord. Any sublease
shall provide that: (i) the term of the sublease ends no later than one day before the last day of the Term of this Lease; (ii) such sublease is subject and subordinate to this Lease;
(iii) Landlord may enforce the provisions of the sublease, including collection of rents; and (iv) in the event of termination of this Lease or reentry or repossession of the Premises by
Landlord, Landlord may, at its sole
discretion and option, take over all of the right, title and interest of Tenant, as sublessor, under such sublease, and such subtenant shall, at Landlord's option, attorn to Landlord. 

ARTICLE VII

RESPONSIBILITY FOR REPAIRS AND CONDITION OF

PREMISES; SERVICES TO BE FURNISHED BY LANDLORD  

        7.1    LANDLORD REPAIRS.    

        (a)   Except
as otherwise provided in this Lease, Landlord agrees to keep in good order, condition and repair, consistent with similar first-class office buildings in the
Medford/Charlestown area, (i) the Building, including, without limitation, roof, foundation, exterior walls, exterior windows, structure, elevators, and all base building systems (but
specifically excluding any supplemental heating, ventilation or air conditioning equipment or systems installed at Tenant's request or installed, whether or not by or on behalf of Tenant, as a result
of requirements in excess of Building standard design criteria), (ii) all Common Areas (interior and exterior), and (iii) all signage (other than any signs installed by Tenant), except
that Landlord shall in no event be responsible to Tenant for the repair of glass in the Premises (excluding exterior windows), the doors leading to the Premises, or any condition in the Premises or
the Building caused by any act or neglect of Tenant, or its invitees or contractors other than as set forth in Article XII. Landlord shall also keep and maintain all Common Areas free of snow
and ice and accumulation of dirt and rubbish, and shall keep and maintain all landscaped areas on the Property in a neat and orderly condition. Notwithstanding the foregoing, but subject to the
provisions of Section 14.20, Landlord shall be responsible for the cost of repairs which may be made necessary by 

18

 

reason
of damage to the Premises caused solely by any negligent or willful act of Landlord, or its contractors or invitees. Landlord shall not be responsible to make any improvements or repairs to the
Building other than as expressly in this Section 7.1 provided, unless expressly provided otherwise in this Lease. 

        (b)   Landlord
shall never be liable for any failure to make repairs which, under the provisions of this Section 7.1 or elsewhere in this Lease, Landlord has undertaken
to make unless Tenant has given notice to Landlord of the need to make such repairs, and Landlord has failed to commence to make such repairs within a reasonable time after receipt of such notice, or
fails to proceed with reasonable diligence to complete such repairs. 

        7.2    TENANT'S AGREEMENT.    

        (a)   Subject
to Landlord's obligations set forth in Section 7.1 above, Tenant will keep neat and clean and maintain in good order, condition and repair the Premises
and every part thereof, excepting only those repairs for which Landlord is responsible under the terms of this Lease, reasonable wear and tear of the Premises, and damage by fire or other casualty or
as a consequence of the exercise of the power of eminent domain; and shall surrender the Premises, at the end of the Term, in such condition. Without limitation, Tenant shall continually during the
Term of this Lease maintain the Premises in accordance with standards recommended by the Boston Board of Fire Underwriters to the extent said compliance is required as a result of the specific manner
in which Tenant is using the Premises, Tenant's layout of the Premises, or any alterations or improvements performed by Tenant subsequent to the completion of Landlord's Work. To the extent that the
Premises constitute a "Place of Public Accommodation" within the meaning of the Americans with Disabilities Act of 1990, Tenant shall be responsible, subject to the requirements of Section 5.2,
for making the repairs within the Premises that are necessary to comply with any provisions of such Act that are enacted, or become effective, or become applicable to the Premises after the
Commencement Date. Notwithstanding the foregoing, to the maximum extent this provision may be enforceable according to law and is not otherwise contrary to public policy, Tenant shall be responsible
for the cost of repairs which may be made necessary by reason of damage to the Building caused solely by any negligent or willful act of Tenant, or its contractors or invitees (including any damage by
fire or other casualty arising therefrom), provided that the liability of Tenant under this sentence shall be limited as and to the extend provide in Section 14.20. 

        (b)   If
repairs are required to be made by Tenant pursuant to the terms hereof, Landlord may demand by written notice that Tenant make the same forthwith, and if Tenant
refuses or neglects to commence such repairs and complete the same within the cure period provided in Section 13.1 (except in the case of emergency in which event Landlord may make such repairs
immediately), Landlord may (but shall not be required to do so) make or cause such repairs to be made. 

        7.3    FLOOR LOAD—HEAVY MACHINERY.    

        (a)   Tenant
shall not place a load upon any floor in the Premises exceeding 100 lbs. per square foot of Premises Usable Area in the west wing and 125 lbs. per square foot of
Premises Usable Area in the east wing or the maximum which such floor was designed to carry and which is allowed by law. Landlord reserves the right to employ Landlord's structural engineer, at
Tenant's expense, to prescribe the weight and position of all business machines and mechanical equipment, including safes, which shall be placed so as to distribute the weight. Business machines and
mechanical equipment shall be placed and maintained by Tenant at Tenant's expense in settings sufficient, in Landlord's judgment, to absorb and prevent vibration, noise and annoyance. Tenant shall not
move any safe, heavy machinery, heavy equipment, freight, bulky matter or fixtures into or out of the Building without Landlord's prior consent, which shall not be unreasonably withheld, conditioned
or delayed, but which consent may include a requirement to provide reasonable insurance, naming Landlord as an insured, in such amounts as Landlord may deem reasonable. 

19

 

        (b)   If
any such safe, machinery, equipment, freight, bulky matter or fixtures requires special handling, Tenant agrees to employ only persons holding a Master Rigger's
License to do such work, and that all work in connection therewith shall comply with applicable laws and regulations. Any such moving shall be at the sole risk and hazard of Tenant, and Tenant will
exonerate, indemnify and save Landlord harmless against and from any liability, loss, injury, claim or suit resulting directly or indirectly from such moving. 

        7.4    BUILDING SERVICES.    

        (a)   Landlord
shall, on Business Days from 8:00 a.m. to 6:00 p.m., furnish heating and cooling as normal seasonal changes may require at least equal to 1cfm per
square foot of Premises Usable Area with 20% outdoor air to maintain 69-74 degree Fahrenheit Temperature, under normal business operation at an occupancy of not more than one person per
100 square feet of Premises Usable Area and a combined lighting and standard electrical load not exceeding 3.0 watts per square foot of Premises Usable Area, with the use of venetian blinds on the
windows. If Tenant shall require air conditioning, heating or ventilation outside the hours and days above specified, Tenant shall give Landlord at least 24 hours' prior notice of such
requirement. Landlord shall furnish such service and Tenant shall pay therefor such charges as may from time to time be in effect. Such charge is currently $50.00 per hour per floor. Notwithstanding
the foregoing, Landlord shall provide heating and cooling from 8:00 a.m. to 1:00 p.m., on no more than twenty-six (26) Saturdays per calendar year, solely to the
portion of the Premises on the second floor of the Building, provided and on condition that Tenant notifies Landlord in writing that it will require such heating or cooling not less than
24 hours prior to the applicable Saturday. In the event Tenant introduces into the Premises personnel or equipment which overloads the capacity of the Building system or in any other way
interferes with the system's ability to perform adequately its proper functions, supplementary systems may, if and as needed, at Landlord's option, be provided by Landlord, at Tenant's expense. 

        (b)   Landlord
shall also provide: 

          (i)  Passenger
elevator service in common with Landlord and other tenants in the Building. 

         (ii)  Hot
water for lavatory and kitchen purposes and cold water (at temperatures supplied by the City of Medford) for drinking, kitchen and lavatory and toilet purposes at a
central service area on each floor. If Tenant uses water for any purpose other than for ordinary office kitchen, lavatory and drinking purposes, Landlord may assess a reasonable charge for the
additional water so used or install a water meter and thereby measure Tenant's water consumption for all purposes. In the latter event, Tenant shall pay the cost of the meter and the cost of
installation thereof and shall keep such meter and installation equipment in good working order and repair. Tenant agrees to pay for water consumed, as shown on such meter, together with the sewer
charge based on such meter charges, as and when bills are rendered, and in default in making such payment Landlord may pay such charges and collect the same from Tenant as an additional charge. 

20

  

        (iii)  Cleaning
and janitorial services on Business Days to (x) the Premises, provided the same are kept in order by Tenant and no extra services are necessary by
reason of any special installations made by Tenant, and (y) the Common Areas, substantially in accordance with the cleaning standards set forth in Exhibit CS attached hereto. 

        (iv)  Free
access to the Premises at all times, 24/7, subject to reasonable security restrictions from time to time in effect, and subject always to restrictions based on
emergency conditions. 

         (v)  Backup
power for normal office use to the Premises through three 2,000 kva generators. Landlord shall perform scheduled preventative maintenance twice per year during
the Term. Preventative maintenance will be performed to one generator at a time while the remaining two are on line and available. In addition, the generators will be exercised every two weeks during
off hours by running each one for a half hour. 

        (vi)  Illuminate
the parking areas and the sidewalks after dusk, and illuminate the interior Common Areas. 

        (c)   Landlord
or Agent from time to time may provide one or more uniformed attendants in or about the lobby of the Building. Such attendant(s) serve functions such as
assisting visitors and invitees of tenants and others in the Building, monitoring fire control and alarm equipment, and summoning emergency services to the Building as and when needed. Tenant
expressly acknowledges and agrees that: (i) such attendants are not police officers, they are unarmed, and they are not trained in situations involving potentially physical confrontation; and
(ii) such attendants have been provided as an amenity to tenants of the Building for the sole purposes set forth above, and not for the purpose of securing any individual tenant premises or
guaranteeing the physical safety of Tenant's Premises or of Tenant's employees, agents, contractors or invitees. If and to the extent that Tenant desires to provide additional security for the
Premises or for such persons or their property, Tenant shall be responsible for so doing, after having first consulted with Landlord and after obtaining Landlord's consent, which shall not be
unreasonably withheld. Landlord expressly disclaims any and all responsibility and/or liability for the physical safety of Tenant's property, and for that of Tenant's employees, agents, contractors
and invitees, and, without in any way limiting the operation of Article X hereof, to the extent permissible by applicable law, Tenant, for itself and its agents, contractors, invitees and
employees, hereby expressly waives any claim, action, cause of action or other right which may accrue or arise as a result of any damage or injury to the person or property of Tenant or any such
agent, invitee, contractor or employee. Tenant acknowledges that the Building is located in an urban area, and that crimes against property and persons do occasionally occur. Tenant agrees that, as
between Landlord and Tenant, it is Tenant's responsibility to advise its employees, agents, contractors and invitees as to necessary and appropriate safety precautions. 

        7.5    ELECTRICITY.    

        (a)   Landlord
shall furnish electricity to the Premises for lights, outlets and supplemental HVAC service dedicated to Tenant's Premises to meet a so-called
"connected load" requirement not to exceed six (6.0) watts at 277/480 volts per square foot of Premises Usable Area. Tenant agrees in its use of the Premises not to exceed such requirement and that
its total connected lighting load will not exceed the maximum from time to time permitted under applicable governmental regulations. Landlord shall purchase and install, at Tenant's expense (without
mark-up or service charge), all replacement lamps, tubes, bulbs, starters and ballasts; provided, however, Landlord agrees to purchase and install, at Landlord's expense, any lamps, tubes,
bulbs, starters and ballasts during the first three (3) months of the Term. In order to assure that the foregoing requirements are not exceeded and to avert possible adverse affect on the
Building's electrical system, Tenant shall not, without Landlord's prior consent, connect any fixtures, appliances or equipment to the Building's electrical distribution system other than typewriters,
printers, fax machines, pencil sharpeners, desk top calculators, dictaphones, photocopiers, 

21

 

personal
computers, word processors, radios and other similar small electrical equipment normally found in business offices. 

        (b)   Tenant
shall be responsible for the payment of all electricity used and consumed in the Premises, including, without limitation for lights, outlets and supplemental HVAC
service dedicated to Tenant's Premises, provided however, once Tenant has installed the equipment in the Data Center, and such equipment is in operation, Tenant shall pay for all electricity used in
the Data Center, allocated by Landlord on a per square foot basis to the Data Center. Landlord shall install a separate check meter measuring the electricity used and consumed in the Premises, and
from time to time, but not more than once per calendar month, Landlord shall invoice Tenant for electricity used and consumed in the Premises, at Landlord's cost therefore, without markup. Tenant
shall pay Landlord the invoiced amount as Additional Rent hereunder within thirty (30) days after receipt of each such invoice. The obligation to pay for electricity used and consumed in the
Premises during the last month of the Term hereof shall survive expiration of the Term. 

        (c)   Landlord
shall have the right to discontinue furnishing electricity to the Premises at any time upon not less than thirty (30) days' notice to Tenant provided
that Landlord shall, at Landlord's expense, separately meter the Premises directly to the applicable public utility company. If Landlord exercises such right, from and after the effective date of such
discontinuance, Landlord shall not be obligated to furnish electricity to the Premises, and Landlord shall permit Landlord's existing wires, risers, conduits and other electrical equipment of Landlord
to be used to supply electricity to Tenant provided that the limits set forth in paragraph (a) shall not be exceeded, and Tenant shall be responsible for payment of all electricity charges
directly to such utility. 

        (d)   Notwithstanding
anything to the contrary in this Article 7 or in this Lease contained, Landlord may institute, and Tenant shall comply with, such policies,
programs and measures as may be reasonably necessary, required, or expedient for the conservation and/or preservation of energy or energy services, or as may be reasonably necessary or required to
comply with applicable codes, rules, regulations or standards. 

        (e)   When
necessary by reason of accident or emergency, or for repair, alterations, replacements or improvements which in the reasonable judgment of Landlord are desirable or
necessary to be made, or of difficulty or inability in securing supplies or labor, or of strikes, or of any other cause beyond the reasonable control of Landlord, whether such other cause be similar
or dissimilar to those hereinabove specifically mentioned until said cause has been removed, Landlord reserves the right to interrupt, curtail, stop or suspend (i) the furnishing of heating,
elevator, air conditioning, and cleaning services and (ii) the operation of plumbing and electric systems. Landlord shall exercise reasonable diligence to eliminate the cause of any such
interruption, curtailment, stoppage or suspension, and perform any such repair or replacement in such a manner so as to minimize any unreasonably interference with Tenant's use of the Premises, but
there shall be no diminution or abatement of rent or other compensation due from Landlord to Tenant hereunder, nor shall this Lease be affected or any of the Tenant's obligations hereunder reduced,
and the Landlord shall have no responsibility or liability for any such interruption, curtailment, stoppage, or suspension of services or systems. Except as set forth in paragraph (f) below, no
diminution or abatement of rent or other compensation, nor any direct, indirect or consequential damages shall or will be claimed by Tenant as a result of, nor shall this Lease or any of the
obligations of Tenant be affected or reduced by reason of, any such interruption, curtailment, suspension or stoppage in the furnishing of the foregoing services or use, irrespective of the cause
thereof. Except as set forth in Section 7.6 below, failure or omission on the part of Landlord to furnish any of the foregoing services or use as provided in this paragraph shall not be
construed as an eviction of Tenant, actual or constructive, nor entitle Tenant to an abatement of rent, nor to render the Landlord liable in damages, nor release Tenant from prompt fulfillment of any
of its covenants under this Lease. 

22

 

        7.6    INTERRUPTION OF SERVICES.    Notwithstanding anything contained in this Lease to the contrary, if (i) an
interruption or curtailment, suspension or stoppage of an Essential Service (as said term is hereinafter defined) shall occur because of a failure of the Building's systems or a failure of Landlord to
perform its obligations set forth herein, or as a result of the acts or negligence of Landlord or any third party under Landlord's control, including without limitation, any tenant of the Building
(any such interruption of an Essential Service being hereinafter referred to as a "Service Interruption"), and (ii) such Service Interruption
continues for more than three (3) consecutive Business Days after Landlord shall have received notice thereof from Tenant, and (iii) as a result of such Service Interruption, the conduct
of Tenant's normal operations in the Premises are materially and adversely affected, then there shall be an abatement of one day's Basic Rent and Escalation Charges for each day during which such
Service Interruption continues after such three (3) Business Day period; provided, however, that if any part of the Premises is reasonably useable for Tenant's normal business operations or if
Tenant conducts all or any part of its operations in any portion of the Premises notwithstanding such Service Interruption, then the amount of each daily abatement of Basic Rent and Escalation Charges
shall only be proportionate to the nature and extent of the interruption of Tenant's normal operations or ability to use the Premises. Except if and to the extent any such failure of Landlord
constitutes a default of Landlord pursuant to Section 13.2 below, the rights granted to Tenant under this Section 7.6 shall be Tenant's sole and exclusive remedy resulting from a failure
of Landlord to provide services. For purposes hereof, the term "Essential Services" shall mean the following services: access to the Premises, water and
sewer/septic service, HVAC service and electricity, but only to the extent that Landlord has an obligation to provide same to Tenant under this Lease. Any abatement of Basic Rent under this paragraph
shall apply only with respect to Basic Rent allocable to the period after each of the conditions set forth in subsections (i) through (iii) hereof shall have been satisfied and only
during such times as each of such conditions shall exist. 

ARTICLE VIII

REAL ESTATE TAXES  

        8.1    PAYMENTS ON ACCOUNT OF REAL ESTATE TAXES.    

        (a)   For
the purposes of this Article, the term "Tax Year" shall mean each calendar year during the Term of this Lease; and the term "Taxes" shall mean (i) all taxes,
excises, assessments (special or otherwise), levies, fees and all payments or obligations to any governmental body or any other government levies, exactions and charges of every kind and nature,
general and special, ordinary and extraordinary, foreseen and unforeseen, which are, at any time prior to or during the Term, imposed or levied upon or assessed against the Property or any portion
thereof, and (ii) the reasonable out-of-pocket expenses actually incurred by Landlord in connection with any proceeding for abatement of any of the foregoing items
included in Taxes, provided Landlord prevails in such abatement proceeding. Supplementing the foregoing sentence, Landlord agrees to pay any special taxes or special assessments over the longest
period permitted and to include in the Taxes for any Tax Year only the installment amount of such special taxes or special assessments (plus any interest, other than penalty interest, payable thereon)
required to be paid during the Tax Year in question. There shall be excluded from Taxes all income, estate, succession, inheritance and transfer taxes of Landlord. If and to the extent the Building at
any time becomes part of a larger project or development, and Taxes are not separately allocated by the taxing authority among the various buildings in such project or development, Landlord shall, in
accordance with commercially reasonable practices, allocate to the Building for each calendar year or portion thereof during the Term an equitable portion of such Taxes. 

        (b)   Commencing
January 1, 2006, in the event that for any reason, Taxes during any Tax Year shall exceed Base Taxes, Tenant shall pay to Landlord, as an Escalation
Charge, an amount equal to (i) the excess of Taxes over Base Taxes for such Tax Year multiplied by (ii) the Escalation Factor, such 

23

 

amount
to be apportioned for any fraction of a Tax Year in which the Commencement Date falls or the Term of this Lease ends. 

        (c)   Estimated
payments by Tenant on account of Taxes shall be made monthly on the first day of each and every calendar month during the Term of this Lease and otherwise in
the manner herein provided for the payment of Basic Rent based on Landlord's good faith estimate of such Taxes for such Tax Year. The monthly amount so to be paid to Landlord shall be sufficient to
provide Landlord by the time real estate tax payments are due a sum equal to Tenant's required payments, as estimated by Landlord from time to time, on account of Taxes for the then current Tax Year.
Promptly after the end of each calendar year and receipt by Landlord of bills for such Taxes, Landlord shall advise Tenant of the amount thereof and the computation of Tenant's payment on account
thereof along with copies of such tax bills. If estimated payments theretofore made by Tenant for the Tax Year covered by such bills exceed the required payments on account thereof for such Year,
Landlord shall credit the amount of overpayment against subsequent obligations of Tenant on account of Basic Rent or Escalation Charges (or refund such overpayment within thirty (30) days after
the end of the Term if the Term of this Lease has ended and Tenant has no further obligation to Landlord); but if the required payments on account thereof for such Year are greater than estimated
payments theretofore made on account thereof for such Year, Tenant shall make payment to Landlord within thirty (30) days after being so advised by Landlord. 

        8.2    ABATEMENT.    Upon the written request of Tenant, Landlord will consider in good faith whether to contest or
seek abatement of any Taxes affecting the Premises. In the event Landlord receives a request from tenants (including Tenant) occupying at least 60% of the rentable area of the Building, Landlord shall
contest or seek abatement of Taxes affecting the Premises. If Landlord shall receive any tax refund or reimbursement of Taxes or sum in lieu thereof with respect to any Tax Year, then out of any
balance remaining thereof after deducting Landlord's expenses reasonably incurred in obtaining the same, Landlord shall pay to Tenant, provided there does not then exist a Default of Tenant, an amount
equal to such refund or reimbursement or sum in lieu thereof (exclusive of any interest) multiplied by the Escalation Factor; provided, that in no event shall Tenant be entitled to receive more than
the amount of any payments actually made by Tenant on account of Taxes for such Tax Year pursuant to Section 8.1 or to receive any payment if Taxes for any Tax Year are less than Base Taxes. 

        8.3    ALTERNATE TAXES.    

        (a)   If
some method or type of taxation shall replace the current method of assessment of real estate taxes in whole or part, or the type thereof, or if additional types of
taxes are imposed upon the Property or Landlord, Tenant agrees that such taxes shall be deemed to be and shall be Taxes hereunder and Tenant shall pay an equitable share of the same as an additional
charge computed in a fashion consistent with the method of computation herein provided, to the end that Tenant's share thereof shall be, to the maximum extent practicable, comparable to that which
Tenant would bear under the foregoing provisions. In calculating the alternative tax, Landlord shall assume that the Building and the Property are the only real estate owned by Landlord. 

        (b)   If
a tax (other than a Federal or State net income tax) is assessed on account of the rents or other charges payable by Tenant to Landlord under this Lease, Tenant
agrees to pay the same as an additional charge within ten (10) days after billing therefor, unless applicable law prohibits the payment of such tax by Tenant. 

24

 

ARTICLE IX

OPERATING EXPENSES  

        9.1    DEFINITIONS.    For the purposes of this Article, the following terms shall have the following respective
meanings: 

        Operating
Year: Each calendar year in which any part of the Term of this Lease shall fall. 

        Operating
Expenses: The aggregate costs or expenses incurred by Landlord with respect to the operation, administration, cleaning, repair, maintenance and management of the Property
including, without limitation, those items enumerated in Exhibit OC annexed hereto, provided that, if during any portion of the Operating Year for which Operating Expenses are being computed, the
Building was not operated or less than 95% of Building Rentable Area was occupied by tenants or if Landlord is not supplying all tenants with the services and utilities being supplied hereunder,
actual Operating Expenses incurred shall be reasonably projected by Landlord to the estimated Operating Expenses that would have been incurred if the Building were fully occupied for such Year and
such services and utilities were being supplied to all tenants, and such projected amount shall, for the purposes hereof, be deemed to be the Operating Expenses for such Year. If and to the extent the
Building becomes at any time part of a larger project or development, and if services (e.g. snow removal and landscaping) which are then Operating Expenses under this Lease are provided by Landlord to
the exterior common areas which are shared in common among the buildings in such project or development, then Landlord shall, in accordance with commercially reasonable practices, allocate to each
building within the project or development (including the Building) its equitable share of the cost of such services for each calendar year. 

        9.2    TENANT'S PAYMENTS.    

        (a)   Commencing
on January 1, 2006, in the event that Operating Expenses for any Operating Year shall exceed Base Operating Expenses, Tenant shall pay to Landlord, as
an Escalation Charge, an amount equal to (i) the excess of Operating Expenses for such Operating Year over Base Operating Expenses, multiplied by (ii) the Escalation Factor, such amount
to be apportioned for any Operating Year in which the Commencement Date falls or the Term of this Lease ends. Notwithstanding the foregoing, Tenant's share of Controllable operating Expenses (defined
below) as determined in accordance with this Section 9.2(a) shall not increase by more than five percent (5%) over Tenant's share of Controllable Operating Expenses in the previous calendar
year, including over Base Operating Expenses. The term "Controllable Operating Expenses" means the items of Operating Expenses for payroll, cleaning,
and service contracts for the Property, including electrical, HVAC, elevator, janitorial, life/safety and landscaping contracts. 

        (b)   Estimated
payments by Tenant on account of Operating Expenses shall be made monthly on the first day of each and every calendar month during the Term of this Lease based
on Landlord's good faith estimate of Operating Expenses for such Operating Year (taking into consideration the Operating Expenses for the prior Operating Year and any reasonably anticipated
increases), and otherwise in the manner herein provided for the payment of Basic Rent. The monthly amount so to be paid to Landlord shall be sufficient to provide Landlord by the end of each Operating
Year with a sum equal to Tenant's required payments, as estimated by Landlord from time to time during each Operating Year (but not more than twice in any one Operating Year), on account of Operating
Expenses for such Operating Year. After the end of each Operating Year, Landlord shall submit to Tenant a reasonably detailed accounting of Operating Expenses for such Year. Landlord shall use
reasonable efforts to deliver such accounting within one hundred twenty (120) days after the end of such Operating Year. If estimated payments theretofore made for such Year by Tenant exceed
Tenant's required payment on account thereof for such Year, according to such statement, Landlord shall credit the amount of overpayment against subsequent obligations of Tenant with respect to Basic
Rent and Escalation Charges (or within thirty (30) days, refund such overpayment if the Term of this Lease has ended and Tenant has no 

25

 

further
obligation to Landlord); but, if the required payments on account thereof for such Year are greater than the estimated payments (if any) theretofore made on account thereof for such Year,
Tenant shall make payment to Landlord within 30 days after being so advised by Landlord. 

        (c)   Tenant
shall have the right to examine, copy and audit Landlord's books and records establishing Operating Expenses for any Operating Year for a period of one
(1) year following the date that Tenant receives the statement of Operating Expenses for such Operating Year from Landlord. Tenant shall give Landlord not less than ten (10) Business
Days' prior notice of its intention to examine and audit such books and records, and such examination and audit shall take place at such place within Massachusetts as Landlord routinely maintains such
books and records. As a condition to performing any such examination, Tenant's examiners shall be required to execute and deliver to Landlord an agreement, in form reasonably acceptable to Landlord,
Tenant and such examiners, agreeing (i) to keep confidential (with customary exceptions) any information which it discovers about Landlord or the Building in connection therewith that is not
otherwise "public" information and (ii) to refrain from soliciting other tenants in the Building. Such examination may be made only by Tenant, its employees and/or by an independent certified
public accounting firm approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed. Without limiting Landlord's approval rights, Landlord may withhold its approval
of any examiner that is being compensated on a contingent fee basis. All costs of the examination and audit shall be borne by Tenant. If, pursuant to the audit, the payments made for such Operating
Year by Tenant exceed Tenant's required payment on account thereof for such Operating Year, Landlord shall credit the amount of overpayment against subsequent obligations of Tenant with respect to
Operating Expenses (or promptly refund such overpayment if the Term of this Lease has ended and Tenant has no further obligation to Landlord); but, if the payments made by Tenant for such Operating
Year are less than Tenant's required payment as established by the examination and audit, Tenant shall pay the deficiency to Landlord within thirty (30) days after conclusion of the examination
and audit, and the obligation to make such payment for any period within the Term shall survive expiration of the Term. If Tenant's audit demonstrates that Landlord's annual statement of Operating
Expenses overstated Operating Expenses for such Operating Year by more than five percent (5%), then Landlord shall pay Tenant's out-of-pocket costs to perform such audit. If
Tenant does not elect to exercise its right to examine and audit Landlord's books and records for any Operating Year within the time period provided for by this paragraph, Tenant shall have no further
right to challenge Landlord's statement of Operating Expenses. If Landlord shall dispute Tenant's accounting and such dispute has not been settled by agreement, either party may submit the dispute to
arbitration in accordance with the commercial arbitration rules of the American Arbitration Association within 90 days after giving of such accounting. The decision of the arbitrators shall be
final and binding on Landlord and Tenant and judgment thereon may be entered in any court of competent jurisdiction. Pending resolution by agreement or arbitration, Tenant shall make any payment due
shown by such accounting to be without prejudice to Tenant's position. 

ARTICLE X

INDEMNITY AND PUBLIC LIABILITY INSURANCE  

        10.1    TENANT'S INDEMNITY.    Except to the extent arising from the negligence or willful misconduct of Landlord or
its agents or employees, to the maximum extent this agreement may be made effective according to law, and subject to the provisions of Section 14.20, Tenant agrees to indemnify and save
harmless Landlord from and against all claims, loss, cost, damage or expense of whatever nature arising: (i) from any accident, injury or damage whatsoever to any person, or to the property of
any person, occurring in or about the Premises; (ii) from any accident, injury or damage occurring outside of the Premises but on the Property where such accident, damage or injury results or
is claimed to have resulted from the negligence or willful misconduct of Tenant or Tenant's agents or employees or independent contractors; or (iii) in connection with the use or management of
the Premises or of any business therein, or any thing or work whatsoever done, or any condition created 

26

 

(other
than by Landlord) in the Premises; and, in any case, occurring after the date of this Lease until the end of the Term of this Lease and thereafter so long as Tenant is in occupancy of any part
of the Premises. This indemnity and hold harmless agreement shall include indemnity against all losses, costs, damages, expenses and liabilities incurred in or in connection with any such claim or
proceeding brought thereon, and the defense thereof, including, without limitation, reasonable attorneys' fees and costs at both the trial and appellate levels. 

        10.2    LANDLORD'S INDEMNITY.    Except to the extent Tenant is required to indemnify Landlord pursuant to
Section 10.1 above, to the maximum extent this agreement may be made effective according to law, and subject to the provisions of Section 14.20, Landlord agrees to indemnify and save
harmless Tenant from and against all claims, loss, cost, damage or expense of whatever nature arising from any accident, injury or damage occurring on the Property where such accident, damage or
injury results or is claimed to have resulted from the negligence or willful misconduct of Landlord or Landlord's agents or employees or independent contractors; and, in any case, occurring after the
date of this Lease until the end of the Term of this Lease and thereafter so long as Tenant is in occupancy of any part of the Premises. This indemnity and hold harmless agreement shall include
indemnity against all losses, costs, damages, expenses and liabilities incurred in or in connection with any such claim or proceeding brought thereon, and the defense thereof, including, without
limitation, reasonable attorneys' fees and costs at both the trial and appellate levels. 

        10.3    GENERAL LIABILITY INSURANCE.    Tenant agrees to maintain in full force from the date upon which Tenant first
enters the Premises for any reason, throughout the Term of this Lease, and thereafter so long as Tenant is in occupancy of any part of the Premises, a policy of commercial general liability and
property damage insurance (including broad form contractual liability, independent contractor's hazard and completed operations coverage) under which Tenant is named as an insured and Landlord, Agent,
and any Mortgagee whose identity may be set out in a notice from time to time, are named as additional insureds, and under which the insurer agrees to indemnify and hold Landlord, Agent and those in
privity of estate with Landlord, harmless from and against all cost, expense and/or liability arising out of or based upon any and all claims, accidents, injuries and damages set forth in
Section 10.1. Each such policy shall be written on an "occurrence" basis, and shall be in at least the amounts of the Initial Public Liability Insurance specified in Section 1.3 or such
greater amounts as are customary for prudent property owners in the area in which the Property is located, as Landlord shall from time to time request, but not more than once in any five year period
(other than pursuant to the reasonable request of any institutional mortgagee of the Property), with deductibles not to exceed $10,000.00 for any one occurrence, and a certificate thereof shall be
delivered to Landlord. 

        10.4    TENANT'S RISK AND PROPERTY DAMAGE INSURANCE.    To the maximum extent this agreement may be made effective
according to law, neither Landlord nor Landlord's insurers shall have any responsibility or liability for any loss of or damage to Tenant's Removable Property. Tenant shall carry "Special Form"
property insurance on a "replacement cost" basis, with deductibles not to exceed $10,000.00 for any one occurrence insuring Tenant's Removable Property. The provisions of this Section 10.4
shall be applicable from and after the execution of this Lease and until the end of the Term of this Lease, and during such further period as Tenant may use or be in occupancy of any part of the
Premises or of the Building. 

        10.5    INJURY CAUSED BY THIRD PARTIES.    To the maximum extent this agreement may be made effective according to
law, Tenant agrees that Landlord shall not be responsible or liable to Tenant, or to those claiming by, through or under Tenant, for any loss or damage that may be occasioned by or through the acts or
omissions of persons occupying adjoining premises or any part of the premises adjacent to or connecting with the Premises or any part of the Property or otherwise. 

        10.6    CERTIFICATES OF INSURANCE.    Such insurance shall be effected with insurers with a Best Rating of at least
A-:VIII, authorized to do business in the state wherein the Building is situated. 

27

 

Such
insurance shall provide that the insurer will endeavor to notify the holder of cancellation, but not modification, of the policies listed on the certificate at least thirty (30) days in
advance by written notice to the named insured therein; provided however, the failure to so notify shall not impose any liability on the insurer. Notwithstanding the foregoing, Tenant agrees to notify
Landlord of any such cancellation or modification at least twenty (20) days before the occurrence thereof. On or before the time Tenant and/or its contractors enter the premises in accordance
with this Lease and thereafter not less than fifteen (15) days prior to the expiration date of each expiring policy, certificates of the policies provided for in this Article X issued by
the respective insurers, together with evidence satisfactory to Landlord of the payment of all premiums for such policies, shall be delivered by Tenant to Landlord and upon request of Landlord, be
delivered by Tenant to the holder of any mortgage affecting the Premises. 

        10.7    LANDLORD'S INSURANCE.    At all times throughout the term, Landlord shall carry and maintain
(a) commercial general liability insurance applicable to the Building and the Property and its appurtenances in at least the amounts required to be maintained by Tenant from time to time, which
insurance shall also insure Landlord's indemnification obligations under this Lease, and (b) "Special Form" property insurance on a "replacement cost" basis insuring the Building above
foundation walls (including work, installations, improvements and betterments in the Premises), the other improvements constructed on the Property, and all of Landlord's personal property on the
Property and in the Building. Such insurance shall be effected with insurers with a Best Rating of at least A-:VIII, authorized to do business in the state wherein the Building is
situated. 

ARTICLE XI

LANDLORD'S ACCESS TO PREMISES  

        11.1    LANDLORD'S RIGHTS.    Landlord and/or Agent shall have the right to enter the Premises at all reasonable hours
upon reasonable prior notice (except in case of emergency) and at any time for an emergency for the purpose of inspecting or making repairs to the same, and Landlord and/or Agent shall also have the
right to make access available at all reasonable hours to prospective or existing mortgagees, purchasers or, in the last twelve months of the Term, to tenants of all or any part of the Property. 

ARTICLE XII

FIRE, EMINENT DOMAIN, ETC.  

        12.1    ABATEMENT OF RENT.    If the Premises or the Building shall be damaged by fire or casualty, Basic Rent and
Escalation Charges payable by Tenant shall abate proportionately for the period in which, by reason of such damage, all or a portion of the Premises is rendered untenantable having regard to the
extent to which Tenant may be required to discontinue Tenant's use of all or a portion of the Premises, but such abatement or reduction shall end if and when Landlord shall have substantially restored
the Premises (including any alterations, additions or improvements made by Tenant pursuant to Section 5.2, to the extent that the same have become the property of Landlord) to the condition in
which they were prior to such damage. If the Premises shall be affected by any exercise of the power of eminent domain, Basic Rent and Escalation Charges payable by Tenant shall be justly and
equitably abated and reduced according to the nature and extent of the loss of use thereof suffered by Tenant. In no event shall Landlord have any liability for damages to Tenant for inconvenience,
annoyance or interruption of business arising from such fire, casualty or eminent domain. 

        12.2    LANDLORD'S RIGHT OF TERMINATION.    If the Premises or the Building are substantially damaged by fire or
casualty (the term "substantially damaged" meaning damage of such a character that Landlord's architect estimates that repair of such damage cannot be completed within 180 days from the date
such restoration work would commence), or if any part of the Building is taken by any exercise of the right of eminent domain which would leave the remainder of the Building 

28

 

unsuitable
or uneconomic for use as an office building comparable to its use on the Commencement Date, then Landlord shall have the right to terminate this Lease (even if Landlord's entire interest in
the Premises may have been divested) by giving notice of Landlord's election so to do within sixty (60) days after the occurrence of such casualty or the effective date of such taking,
whereupon this Lease shall terminate 30 days after the date of such notice with the same force and effect as if such date were the date originally established as the expiration date hereof. 

        12.3    TENANT'S RIGHT OF TERMINATION; RESTORATION.    In the event of (a) any fire or other casualty affecting
the Premises, or any portion of the Building that unreasonably adversely affects Tenant's use and occupancy of the Premises, and Landlord's architect estimates that repair of such damage cannot be
completed within 180 days from the date such restoration work would commence, or (b) a taking of any portion of the Premises, the Building, and/or the Property that adversely affects
Tenant's access to, and/or Tenant's use and occupancy of, the Premises, Tenant may elect to terminate this Lease by written notice to Landlord, delivered within thirty (30) days after the date
of such fire or other casualty, or within thirty (30) days after notice of such taking. If this Lease shall not be so terminated by Tenant, or by Landlord pursuant to Section 12.2,
Landlord shall thereafter use due diligence to restore the Premises, the Building and/or the Property (including any alterations, additions or improvements made by Tenant pursuant to
Section 5.2, to the extent that the same have become the property of Landlord) to the condition in which they were prior to such damage or taking, provided that Landlord's obligation shall be
limited to the amount of insurance proceeds (and any deductible amount) available therefor (provided that Landlord maintains the insurance required to be maintained by Landlord under this Lease), or
any award available for such taking in the event of a taking. If, for any reason, such restoration shall not be substantially completed within two hundred seventy (270) days after the date of
such damage or taking (which 270-day period may be extended for such periods of time as Landlord is prevented from proceeding with or completing such restoration for any cause beyond
Landlord's reasonable control, but in no event for more than an additional ninety (90) days), then Tenant shall have the right to terminate this Lease by giving notice to Landlord thereof
within thirty (30) days after the expiration of such period (as so extended). Upon the giving of such notice, this Lease shall cease and come to an end thirty (30) days after the giving
of such notice, without further liability or obligation on the part of either party, unless, within such 30-day period, Landlord substantially completes such restoration. Such right of
termination shall be Tenant's sole and exclusive remedy at law or in equity for Landlord's failure so to complete such restoration. 

        12.4    AWARD.    Landlord shall have and hereby reserves and excepts, and Tenant hereby grants and assigns to
Landlord, all rights to recover for damages to the Property and the leasehold interest hereby created, and to compensation accrued or hereafter to accrue by reason of such taking, damage or
destruction, and by way of confirming the foregoing, Tenant hereby grants and assigns, and covenants with Landlord to grant and assign to Landlord, all rights to such damages or compensation. Nothing
contained herein shall be construed to prevent Tenant from prosecuting in any condemnation
proceedings a claim for the value of any of Tenant's Removable Property installed in the Premises by Tenant at Tenant's expense and for relocation expenses, provided that such action shall not affect
the amount of compensation otherwise recoverable by Landlord from the taking authority. 

ARTICLE XIII

DEFAULT  

        13.1    TENANT'S DEFAULT.    

        (a)   If
at any time subsequent to the date of this Lease any one or more of the following events (herein referred to as a "Default of Tenant") shall happen: 

          (i)  Tenant
shall fail to pay the Basic Rent, Escalation Charges, additional charges or other charges hereunder when due and such failure shall continue for five
(5) full Business Days after 

29

 

written
notice from Landlord, provided, however, if, in any twelve-month period, Landlord has given to Tenant two (2) notices of a monetary default under this clause (i), then, with
respect to any subsequent failure to pay that occurs during such twelve (12) month period after the giving of the second (2nd) notice, Landlord shall not be obligated to give, and Tenant shall
not be entitled to receive, a notice, and a Default of Tenant shall be deemed to have occurred immediately upon such subsequent failure; or 

         (ii)  Tenant
shall neglect or fail to perform or observe any other covenant herein contained on Tenant's part to be performed or observed and Tenant shall fail to remedy the
same as soon as practicable and in any event within thirty (30) days after notice to Tenant specifying such neglect or failure, or if such failure is of such a nature that Tenant cannot
reasonably remedy the same within such thirty (30) day period, Tenant shall fail to commence promptly (and in any event within such thirty (30) day period) to remedy the same and to
prosecute such remedy to completion with diligence and continuity; or 

        (iii)  Tenant's
leasehold interest in the Premises shall be taken on execution or by other process of law directed against Tenant; or 

        (iv)  Tenant
shall make an assignment for the benefit of creditors or shall be adjudicated insolvent, or shall file any petition or answer seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself under any present or future Federal, State or other statute, law or regulation for the relief of debtors
(other than the Bankruptcy Code, as hereinafter defined), or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of Tenant or of all or any substantial part
of its properties, or shall admit in writing its inability to pay its debts generally as they become due; or 

         (v)  An
Event of Bankruptcy (as hereinafter defined) shall occur with respect to Tenant; or 

        (vi)  A
petition shall be filed against Tenant under any law (other than the Bankruptcy Code) seeking any reorganization, arrangement, composition, readjustment, liquidation,
dissolution, or similar relief under any present or future Federal, State or other statute, law or regulation and shall remain undismissed or unstayed for an aggregate of sixty (60) days
(whether or not consecutive), or if any trustee, conservator, receiver or liquidator of Tenant or of all or any substantial part of its properties shall be appointed without the consent or
acquiescence of Tenant and such appointment shall remain unvacated or unstayed for an aggregate of sixty (60) days (whether or not consecutive); 

then
in any such case Landlord may terminate this Lease by notice to Tenant, specifying a date not less than five (5) days after the giving of such notice on which this Lease shall terminate,
Landlord being under no obligation to accept any cure of such Default of Tenant offered by Tenant during such period prior to the effective date of such termination, such period being provided solely
to accommodate Tenant's vacating of the Premises. This Lease shall come to an end on the date of such notice as fully and completely as if such date were the date herein originally fixed for the
expiration of the Term of this Lease, and Tenant will then quit and surrender the Premises to Landlord, but Tenant shall remain liable as hereinafter provided. 

30

   
        (b)   For purposes of clause (a)(v) above, an "Event of Bankruptcy" means the filing of a voluntary petition by Tenant, or the entry of an order for relief
against Tenant, under Chapter 7, 11, or 13 of the Bankruptcy Code, and the term "Bankruptcy Code" means 11 U.S.C §101, et seq. If an Event
of Bankruptcy occurs, then the trustee of Tenant's bankruptcy estate or Tenant as debtor-in-possession may (subject to final approval of the court) assume this Lease, and may
subsequently assign it, only if it does the following within 60 days after the date of the filing of the voluntary petition, the entry of the order for relief (or such additional time as a
court of competent jurisdiction may grant, for cause, upon a motion made within the original 60-day period): 

          (i)  file a
motion to assume the Lease with the appropriate court; 

         (ii)  satisfy
all of the following conditions, which Landlord and Tenant acknowledge to be commercially reasonable: 

        (A)  cure
all Defaults of Tenant under this Lease or provide Landlord with Adequate Assurance (as defined below) that it will (x) cure all monetary Defaults of Tenant
hereunder within 10 Business Days from the date of the assumption; and (y) cure all nonmonetary Defaults of Tenant hereunder within the time periods set forth above in Section 13.1(a)
from the date of the assumption; 

        (B)  compensate
Landlord and any other person or entity, or provide Landlord with Adequate Assurance that within a reasonable period of time after the date of the assumption,
it will compensate Landlord and such other person or entity, for any actual pecuniary loss that Landlord and such other person or entity incurred as a result of any Default of Tenant, the trustee, or
the debtor-in-possession; and 

        (C)  provide
Landlord with Adequate Assurance of Future Performance (as defined below) of all of Tenant's obligations under this Lease. 

        (c)   Intentionally
Omitted. 

        (d)   For
purposes only of paragraph (b), and in addition to any other requirements under the Bankruptcy Code, any future federal bankruptcy law and applicable case
law, "Adequate Assurance of Future Performance" means at least meeting the following conditions, which Landlord and Tenant acknowledge to be commercially reasonable: 

          (i)  the
trustee or debtor-in-possession depositing with Landlord, as security for the timely payment of rent and other monetary obligations, an
amount equal to the sum of two (2) months' Basic Rent plus an amount equal to two (2) months' installments on account of Operating Expenses and Taxes, computed in accordance with
Articles 8 and 9; 

         (ii)  the
trustee or debtor-in-possession providing adequate assurance of the source of the rent and other consideration due under this Lease; 

        (iii)  Tenant's
bankruptcy estate and the trustee or debtor-in-possession providing Adequate Assurance that the bankruptcy estate (and any successor
after the conclusion of the Tenant's bankruptcy proceedings) will have sufficient funds to fulfill Tenant's obligations hereunder; and 

        (e)   If
the trustee or the debtor-in-possession assumes the Lease under paragraph (b) above and applicable bankruptcy law, it may assign its
interest in this Lease only if the proposed assignee first provides Landlord with Adequate Assurance of Future Performance of all of Tenant's obligations under the Lease, and, with respect to an
assignment to a person or entity that proposes to use the Premises for purposes other than the Permitted Uses, if Landlord determines, in the exercise of its reasonable business judgment, that the
assignment of this Lease will not result in a breach by Landlord of its obligations under any other lease, or any mortgage, financing agreement, or other agreement relating to the Property by which
Landlord or the Property is then bound (and Landlord shall not be required 

31

 

to
obtain consents or waivers from any third party required under any lease, mortgage, financing agreement, or other such agreement by which Landlord is then bound). 

        (f)    For
purposes only of paragraph (e) above, and in addition to any other requirements under the Bankruptcy Code, any future federal bankruptcy law and applicable
case law, "Adequate Assurance of Future Performance" means at least the satisfaction of the following conditions, which Landlord and Tenant acknowledge to be commercially reasonable: 

          (i)  the
proposed assignee submitting a current financial statement, that shows a net worth and working capital in amounts determined in the reasonable business judgment of
Landlord to be sufficient to assure the future performance by the assignee of Tenant's obligation under this Lease; 

        (g)   If
this Lease shall have been terminated as provided in this Article, or if any execution or attachment shall be issued against Tenant or any of Tenant's property
whereupon the Premises shall be taken or occupied by someone other than Tenant, then Landlord may re-enter the Premises, either by summary proceedings, ejectment or otherwise, and remove
and dispossess Tenant and all other persons and any and all property from the same, as if this Lease had not been made. 

        (h)   In
the event of any termination, Tenant shall pay the Basic Rent, Escalation Charges and other sums payable hereunder up to the time of such termination, and thereafter
Tenant, until the end of what would have been the Term of this Lease in the absence of such termination, and whether or not the Premises shall have been relet, shall be liable to Landlord for, and
shall pay to Landlord, as liquidated current damages, the Basic Rent, Escalation Charges and other sums that would be payable hereunder if such termination had not occurred, less the net proceeds, if
any, of any reletting of the Premises, after deducting all reasonable expenses in connection with such reletting, including, without limitation, all reasonable repossession costs, brokerage
commissions, legal expenses, attorneys' fees, advertising, alteration costs and expenses of preparation for such reletting. Tenant shall pay such damages to Landlord monthly on the days which the
Basic Rent would have been payable hereunder if this Lease had not been terminated. 

        (i)    At
any time after such termination, whether or not Landlord shall have collected any such current damages, as liquidated final damages and in lieu of all such current
damages beyond the date of such demand, at Landlord's election Tenant shall pay to Landlord an amount equal to the excess, if any, of the Basic Rent, Escalation Charges and other sums as hereinbefore
provided which would be payable hereunder from the date of such demand assuming that, for the purposes of this paragraph, annual payments by Tenant on account of Taxes and Operating Expenses would be
the same as the payments required for the immediately preceding Operating or Tax Year for what would be the then unexpired Term of this Lease if the same remained in effect, over the then fair net
rental value of the Premises for the same period, discounted to present value using a discount rate equal to the average yield to maturity of United States treasury instruments having a maturity
comparable to time period between the date of such termination or reentry and the original expiration date of the Term of this Lease. 

        (j)    In
case of any Default by Tenant, re-entry, expiration and dispossession by summary proceedings or otherwise, Landlord may (i) re-let the
Premises or any part or parts thereof, either in the name of Landlord or otherwise, for a term or terms which may at Landlord's option be equal to or less than or exceed the period which would
otherwise have constituted the balance of the Term of this Lease and may grant concessions or free rent to the extent that Landlord considers advisable and necessary to re-let the same and
(ii) may make such reasonable alterations, repairs and decorations in the Premises as Landlord in its sole judgment considers advisable and necessary for the purpose of reletting the Premises;
and the making of such alterations, repairs and decorations shall not operate or be construed to release Tenant from liability hereunder as aforesaid. Landlord shall in no event be liable in any way
whatsoever for failure to re-let the Premises, or, in the event that the Premises are re-let, for failure to collect the rent under such re-letting. Tenant hereby
expressly waives any and all 

32

 

rights
of redemption granted by or under any present or future laws in the event of Tenant being evicted or dispossessed, or in the event of Landlord obtaining possession of the Premises, by reason of
the violation by Tenant of any of the covenants and conditions of this Lease. The foregoing notwithstanding, in the event of termination of this Lease or repossession of the Premises after a Default
of Tenant, and provided Tenant has not refused to reasonably work with Landlord in surrendering possession of the Premises as required herein after such termination or repossession, Landlord shall use
commercially reasonable efforts to mitigate its damages hereunder, provided that Landlord (i) shall not be obligated to show preference for reletting the Premises over any other vacant space in
the Building; (ii) may divide the Premises, or to consolidate portions of the Premises with other spaces, in order to facilitate such reletting, as Landlord deems appropriate, (iii)may relet
the whole or any portion of the Premises for any period, to any tenant, and for any use and purpose, and upon such terms as it deems appropriate, and may grant any rental or other lease concessions as
it reasonably deems advisable under prevailing market conditions, including free rent; and (iv) Landlord's obligation to mitigate damages shall be deemed satisfied by its providing adequate
information to a commercial broker as to the availability of such space (based on a customary brokerage fee being earned by such broker), having the Premises available for inspection by prospective
tenants during reasonable business hours, and by acceptance of a commercially reasonable offer for the Premises (or reasonable portion thereof) from a creditworthy person or entity based on a form of
lease agreement which is substantially the same as the form utilized for other space tenants in the Building, without material change therefrom (and Landlord shall be under no obligation to accept any
offer other than a commercially reasonable offer from a creditworthy person or entity at then going rental rates for the Building). 

        (k)   The
specified remedies to which Landlord may resort hereunder are not intended to be exclusive of any remedies or means of redress to which Landlord may at any time be
entitled lawfully, and Landlord may invoke any remedy (including the remedy of specific performance) allowed at law or in equity as if specific remedies were not herein provided for. 

        (l)    All
reasonable costs and expenses incurred by or on behalf of Landlord (including, without limitation, attorneys' fees and expenses at both the trial and appellate
levels) in enforcing its rights hereunder or occasioned by any Default of Tenant shall be paid by Tenant. 

        13.2    LANDLORD'S DEFAULT.    Landlord shall in no event be in default in the performance of any of Landlord's
obligations hereunder unless and until Landlord shall have failed to perform such obligations within thirty (30) days, or if such failure is of such a nature that Landlord cannot reasonably
remedy the same within such thirty (30) day period, Landlord shall fail to commence promptly (and in any event within such thirty (30) day period) to remedy the same and to prosecute
such remedy to completion with diligence and continuity. The foregoing shall not derogate from the rights and remedies provided to Tenant in Section 7.6. Without limiting any other rights that
Tenant may have under this Lease, at law or in equity, Tenant expressly agrees that this Lease shall be construed as though Landlord's covenants contained herein are independent and not dependent. 

ARTICLE XIV

MISCELLANEOUS PROVISIONS  

        14.1    EXTRA HAZARDOUS USE.    Tenant covenants and agrees that Tenant will not do or permit anything to be done in
or upon the Premises, or bring in anything or keep anything therein, which shall increase the rate of property or liability insurance on the Premises or the Property above the standard rate applicable
to Premises being occupied for Permitted Uses; and Tenant further agrees that, in the event that Tenant shall do any of the foregoing, Tenant will promptly pay to Landlord, on demand, any such
increase resulting therefrom, which shall be due and payable as an additional charge hereunder. Landlord represents that, as of the date of this Lease, Tenant's use of the Premises for the 

33

 

Permitted
Use, in accordance with the terms of this Lease, shall not require any increase in the insurance premiums for the Premises or the Property. 

        14.2    WAIVER.    

        (a)   Failure
on the part of Landlord or Tenant to complain of any action or non-action on the part of the other, no matter how long the same may continue, shall
never be a waiver by Tenant or Landlord, respectively, of any of the other's rights hereunder. Further, no waiver at any time of any of the provisions hereof by Landlord or Tenant shall be construed
as a waiver of any of the other provisions hereof, and a waiver at any time of any of the provisions hereof shall not be construed as a waiver at any subsequent time of the same provisions. The
consent or approval of Landlord or Tenant to or of any action by the other requiring such consent or approval shall not be construed to waive or render unnecessary Landlord's or Tenant's consent or
approval to or of any subsequent similar act by the other. 

        (b)   No
payment by Tenant, or acceptance by Landlord, of a lesser amount than shall be due from Tenant to Landlord shall be treated otherwise than as a payment on account of
the earliest installment of any payment due from Tenant under the provisions hereof. The acceptance by Landlord of a check for a lesser amount with an endorsement or statement thereon, or upon any
letter accompanying such check, that such lesser amount is payment in full, shall be given no effect, and Landlord may accept such check without prejudice to any other rights or remedies which
Landlord may have against Tenant. 

        14.3    COVENANT OF QUIET ENJOYMENT.    Tenant, subject to the terms and provisions of this Lease, on payment of the
Basic Rent, Escalation Charges and additional charges and observing, keeping and performing all of the other terms and provisions of this Lease on Tenant's part to be observed, kept and performed,
shall lawfully, peaceably and quietly have, hold, occupy and enjoy the Premises during the term hereof, without hindrance or ejection by any persons lawfully claiming under Landlord to have title to
the Premises superior to Tenant; the foregoing covenant of quiet enjoyment is in lieu of any other covenant, express or implied. 

        14.4    LANDLORD'S LIABILITY.    

        (a)   Tenant
specifically agrees to look solely to Landlord's interest in the Property, and the insurance and sale proceeds, condemnation awards, rent and other income
therefrom, for recovery of any judgment from Landlord; it being specifically agreed that neither Landlord (original or successor) nor any partner of Landlord (nor any principal of any such partner)
shall ever be personally liable for any such judgment, or for the payment of any monetary obligation to Tenant. The provision contained in the foregoing sentence is not intended to, and shall not,
limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord or Landlord's successors in interest, or to take any action not involving the personal liability of
Landlord (original or successor). 

        (b)   With
respect to any services or utilities to be furnished by Landlord to Tenant, Landlord shall in no event be liable for failure to furnish the same when prevented from
doing so by strike, lockout, breakdown, accident, order or regulation of or by any governmental authority, or failure of supply, or failure whenever and for so long as may be necessary by reason of
the making of repairs or changes which Landlord is required or is permitted by this Lease or by law to make or in good faith deems necessary, or inability by the exercise of reasonable diligence to
obtain supplies, parts or employees necessary to furnish such services, or because of war or other emergency, or for any other cause beyond Landlord's reasonable control, or for any cause due to any
act or neglect of Tenant or Tenant's servants, agents, employees, licensees or any person claiming by, through or under Tenant. Notwithstanding the foregoing, (A) Landlord shall exercise
reasonable diligence to eliminate the cause of any such interruption, curtailment, stoppage or suspension, (B) Landlord shall secure, to the extent commercially reasonable, other means of
providing such services or utilities on a temporary basis, and (C) Landlord shall perform any such repair or replacement in such a manner so as to minimize any 

34

 

unreasonably
interference with Tenant's use of the Premises. Landlord hereby acknowledges and agrees that the foregoing provisions shall not derogate from Tenant's remedies set forth in
Section 7.6. 

        (c)   In
no event shall Landlord ever be liable to Tenant for any loss of business or any other indirect or consequential damages suffered by Tenant from whatever cause.
Except to the extent arising as a result of any holdover of Tenant in the Premises, in no event shall Tenant ever be liable to Landlord for any loss of business or any other indirect or consequential
damages suffered by Landlord from whatever cause. 

        (d)   Whenever
Tenant requests Landlord's consent or approval (whether or not provided for herein), Tenant shall pay to Landlord, on demand, as an additional charge, any
expenses incurred by Landlord (including without limitation legal fees and costs, if any) in connection therewith without limitation. 

        (e)   With
respect to any repairs or restoration which are required or permitted to be made by Landlord, the same may be made during normal business hours and Landlord shall
have no liability for damages to Tenant for inconvenience, annoyance or interruption of business arising therefrom. Landlord shall use commercially reasonable efforts to perform any such work in a
manner that will not unreasonably interfere with Tenant's use and occupancy of the Premises, and shall diligently pursue such work to completion. 

        14.5    NOTICE TO MORTGAGEE OR GROUND LESSOR.    After receiving notice from any person, firm or other entity that it
holds a mortgage or a ground lease which includes the Premises, Tenant shall give a copy of any notice of default of Landlord to such holder or ground lessor (provided Tenant shall have been furnished
with the name and address of such holder or ground lessor), and the curing of any of Landlord's defaults by such holder or ground lessor shall be treated as performance by Landlord. 

        14.6    ASSIGNMENT OF RENTS AND TRANSFER OF TITLE.    

        (a)   With
reference to any assignment by Landlord of Landlord's interest in this Lease, or the rents payable hereunder, conditional in nature or otherwise, which assignment
is made to the holder of a mortgage on property which includes the Premises, Tenant agrees that the execution thereof by Landlord, and the acceptance thereof by the holder of such mortgage shall never
be treated as an assumption by such holder of any of the obligations of Landlord hereunder unless such holder shall, by notice sent to Tenant, specifically otherwise elect and that, except as
aforesaid, such holder shall be treated as having assumed Landlord's obligations hereunder only upon foreclosure of such holder's mortgage and the taking of possession of the Premises. 

        (b)   In
no event shall the acquisition of Landlord's interest in the Property by a purchaser which, simultaneously therewith, leases Landlord's entire interest in the
Property back to the seller thereof be treated as an assumption by operation of law or otherwise, of Landlord's obligations hereunder, but Tenant shall look solely to such seller-lessee, and its
successors from time to time in title, for performance of Landlord's obligations hereunder. In any such event, this Lease shall be subject and subordinate to the lease to such seller-lessee provided
such purchaser-lessor enters into a non-disturbance agreement with Tenant, as required by the provisions of Section 14.15. For all purposes, such seller-lessee, and its successors
in title, shall be the Landlord hereunder unless and until Landlord's position shall have been assumed by such purchaser-lessor. 

        (c)   Except
as provided in paragraph (b) of this Section, in the event of any transfer of title to the Property by Landlord, upon assumption by such transferee of
Landlord's obligations hereunder, Landlord shall thereafter be entirely freed and relieved from the performance and observance of all covenants and obligations hereunder. 

35

 

        14.7    RULES AND REGULATIONS.    Tenant shall abide by rules and regulations from time to time established by
Landlord, it being agreed that such rules and regulations will be established and applied by Landlord in a non-discriminatory fashion, such that all rules and regulations shall be
applicable to other tenants of the Building. The current rules and regulations in effect for the Building are attached hereto and made a part hereof as  Exhibit RR. Landlord agrees to use reasonable
efforts to insure that any such rules and regulations are uniformly enforced, but Landlord shall
not be liable to Tenant for violation of the same by any other tenant or occupant of the Building, or persons having business with them. In the event that there shall be a conflict between such rules
and regulations and this Lease, the provisions of this Lease shall prevail. 

        14.8    ADDITIONAL CHARGES.    If Tenant shall fail to pay when due any sums under this Lease designated as an
Escalation Charge or additional charge, Landlord shall have the same rights and remedies as Landlord has hereunder for failure to pay Basic Rent. 

        14.9    INVALIDITY OF PARTICULAR PROVISIONS.    If any term or provision of this Lease, or the application thereof to
any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as
to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 

        14.10    PROVISIONS BINDING, ETC.    Except as herein otherwise provided, the terms hereof shall be binding upon and
shall inure to the benefit of the successors and assigns, respectively, of Landlord and Tenant (except in the case of Tenant, however, only such assigns as may be permitted hereunder) and, if Tenant
shall be an individual, upon and to his heirs, executors, administrators, successors and
permitted assigns. The reference contained to successors and assigns of Tenant is not intended to constitute a consent to assignment by Tenant. 

        14.11    RECORDING.    Tenant agrees not to record this Lease, but, if the Term of this Lease (including any extended
term) is seven (7) years or longer, each party hereto agrees, on the request of the other, to execute a so-called notice of lease in recordable form, complying with applicable law
and reasonably satisfactory to Landlord's attorneys. In no event shall such document set forth the rent or other charges payable by Tenant under this Lease; and any such document shall expressly state
that it is executed pursuant to the provisions contained in this Lease, and is not intended to vary the terms and conditions of this Lease. 

        14.12    NOTICES.    Whenever, by the terms of this Lease, notices shall or may be given either to Landlord or to
Tenant, such notice shall be in writing and shall be sent by registered, certified or express mail, or by a recognized commercial courier or delivery service, postage or delivery charges prepaid,
return receipt requested: 

If
intended for Landlord, addressed to Landlord c/o Berkeley Investments, Inc., 121 High Street, Boston, Massachusetts 02110 and marked "ATTN: Steve Brooks (or to such other address or
addresses as may from time to time hereafter be designated by Landlord by like notice); or 

If
intended for Tenant, addressed to Tenant at Tenant's Original Address until the Commencement Date and thereafter to the Premises, to the attention of the Chief Executive Officer (or to such other
address or addresses as may from time to time hereafter be designated by Tenant by like notice). 

All
such notices shall be effective when within three (3) days after depositing in the United States Mail or upon delivery to such courier or the next day after deposit with such overnight
delivery service within the Continental United States. 

        14.13    WHEN LEASE BECOMES BINDING.    The submission of this document for examination and negotiation does not
constitute an offer to lease, or a reservation of, or option for, the Premises, 

36

 

and
this document shall become effective and binding only upon the execution and delivery hereof by both Landlord and Tenant. All negotiations, considerations, representations and understandings
between Landlord and Tenant are incorporated herein and this Lease expressly supersedes any proposals or other written documents relating hereto. This Lease may be modified or altered only by written
agreement between Landlord and Tenant, and no act or omission of any employee or agent of Landlord shall alter, change or modify any of the provisions hereof. 

        14.14    PARAGRAPH HEADINGS AND INTERPRETATION OF SECTIONS.    The paragraph headings throughout this instrument are
for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this
Lease. The provisions of this Lease shall be construed as a whole, according to their common meaning (except where a precise legal interpretation is clearly evidenced), and the provisions hereof shall
not be construed or interpreted for or against either party, regardless of any rules of construction or interpretation. Use in this Lease of the words "including," "such as" or words of similar
import, when followed by any general term, statement or matter, shall not be construed to limit such term, statement or matter to the specified item(s), whether or not language of
non-limitation, such as "without limitation" or "including, but not limited to," or words of similar import, are used with reference thereto, but rather shall be deemed to refer to all
other terms or matters that could fall within a reasonably broad scope of such term, statement or matter. Tenant represents that (i) it has had the opportunity to review this Lease and the
terms and conditions herein set forth with sophisticated legal counsel of Tenant's choosing, and (ii) it has had the opportunity to discuss and negotiate such terms and conditions with Landlord
or Landlord's counsel, and (iii) this Lease as executed represents the results of such review, discussions and negotiations. 

        14.15    RIGHTS OF MORTGAGEE OR GROUND LESSOR.    

        (a)   This
Lease shall be subordinate to any mortgage or ground lease from time to time encumbering the Premises, whether executed and delivered prior to or subsequent to the
date of this Lease, provided and on condition that the holder of such mortgage or ground lease shall execute a subordination, non-disturbance and attornment agreement ("SNDA") in form and
substance reasonably satisfactory to Tenant and such holder; said SNDA shall provide, in part, that Tenant's right to possession of the Premises shall not be disturbed, and Tenant's other rights
hereunder shall not be adversely affected by, any the exercise of any rights under said mortgage or ground lease, whichever is applicable (including, without limitation a foreclosure of such mortgage
or encumbrance or a termination of such ground lease) so long as there is no Default of Tenant under this Lease. If this Lease is subordinated to any mortgage or ground lease and the holder thereof
(or successor) shall succeed to the interest of Landlord, Tenant shall attorn to such holder in accordance with the terms of said SNDA and this Lease shall continue in full force and effect between
such holder (or successor) (such holder hereinafter referred to as the "Successor Landlord") and Tenant. 

        (b)   This
Lease is contingent upon the execution and delivery of the SNDA by the holder(s) of the existing mortgage(s) within forty-five (45) days after
the execution of this Lease. If such contingency is not satisfied within said forty-five (45) day period, then Tenant shall have the right to terminate this Lease by notice given to
Landlord at any time after said forty-five (45) day period. Said termination notice shall be effective on the tenth (10th) day after the giving of such notice, unless this
contingency is satisfied on or before said tenth (10th) day. 

        14.16    ESTOPPEL CERTIFICATE.    Recognizing that both parties may find it necessary to establish to third parties,
such as accountants, banks, mortgagees, ground lessors, or the like, the then current status of performance hereunder, either party, on the request of the other made from time to time, will promptly
furnish to Landlord, or the holder of any mortgage or ground lease encumbering the Premises, or to Tenant, as the case may be, a statement of the status of any matter pertaining to 

37

 

this
Lease, including, without limitation, acknowledgments that (or the extent to which) each party is in compliance with its obligations under the terms of this Lease. 

        14.17    INTENTIONALLY OMITTED.    

        14.18    REMEDYING DEFAULTS.    Landlord shall have the right, but shall not be required, to pay such sums or do any
act which requires the expenditure of monies which may be necessary or appropriate by reason of the failure or neglect of Tenant to perform any of the provisions of this Lease, and in the event of the
exercise of such right by Landlord, Tenant agrees to pay to Landlord forthwith upon demand all such sums, together with interest thereon at a rate equal to 3% over the so-called base rate
in effect from time to time at Bank of America, N.A. (but in no event more than 18% per annum), as an additional charge. 

        14.19    HOLDING OVER.    

        (a)   Provided
that no Default of Tenant has occurred and is continuing, either at the time of exercise or the time such extension commences, Tenant shall have the
one-time option to extend the Term of this Lease for an additional six (6) months after the expiration of the Lease (the "Holdover Term"), upon all of the terms and conditions of
this Lease, by providing written notice to Landlord not later than twelve (12) months prior to the expiration of the Term of this Lease. The giving of such notice of extension by Tenant shall
automatically extend the Term of this Lease for the Holdover Term, and no instrument of renewal or extension need be executed. In the event that Tenant fails to give such notice to Landlord, this
Lease shall automatically terminate at the end of the Term then in effect, and Tenant shall have no further option to extend the Term of this Lease. 

        (b)   Any
holding over by Tenant after the expiration of the Term of this Lease not effected by Tenant in accordance with Paragraph (a) shall be treated as a daily
tenancy at sufferance at a rate equal to one and a half times the Basic Rent then in effect plus Escalation Charges and other additional charges herein provided (prorated on a daily basis) and shall
otherwise be on the terms and conditions set forth in this Lease as far as applicable. Without limiting the foregoing, Tenant shall also be responsible for, and indemnify and hold Landlord harmless
from and against, all lost, cost and damage suffered by Landlord (including without limitation loss of rental or loss of a tenant) as a result of any such holding over. 

        14.20    WAIVER OF SUBROGATION.    Notwithstanding anything to the contrary contained in the Lease, insofar as, and to
the extent that, the following provision shall not make it impossible to secure insurance coverage obtainable from responsible insurance companies doing business in the locality in which the Property
is located (even though extra premium may result therefrom) Landlord and Tenant: (i) mutually agree that, with respect to any damage to property, the loss from which is covered by insurance
then being carried by them, respectively, or would have been covered by insurance if said party had maintained the insurance required under this Lease, the one carrying, or obligated to carry, such
insurance and suffering such loss releases the other of and from, and forever waives, any and all claims with respect to such loss, but only to the extent of the limits of insurance carried or
required with respect thereto, less the amount of any deductible; and (ii) mutually agree that any property damage insurance carried by either shall provide for the waiver by the insurance
carrier of any right of subrogation against the other. 

        14.21    SURRENDER OF PREMISES.    Upon the expiration or earlier termination of the Term of this Lease, Tenant shall
peaceably quit and surrender to Landlord the Premises in neat and clean condition and in good order, condition and repair, together with all alterations, additions and improvements which may have been
made or installed in, on or to the Premises prior to or during the Term of this Lease, excepting only (i) ordinary wear and use and (ii) damage by fire or other casualty or as a result
of any exercise of the right of eminent domain. Tenant shall remove all of Tenant's Removable Property and shall repair any damages to the Premises or the Building caused by such 

38

 

removal.
Any Tenant's Removable Property which shall remain in the Building or on the Premises after the expiration or termination of the Term of this Lease shall be deemed conclusively to have been
abandoned, and either may be retained by Landlord as its property or may be disposed of in such manner as Landlord may see fit, at Tenant's sole cost and expense. 

        14.22    INTENTIONALLY OMITTED.    

        14.23    BROKERAGE.    Tenant warrants and represents that Tenant has dealt with no broker in connection with the
consummation of this Lease other than the Brokers and, in the event of any brokerage claims against Landlord predicated upon prior dealings with Tenant, Tenant agrees to defend the same and indemnify
Landlord against any such claim (except any claim by the Brokers). 

        14.24    GOVERNING LAW.    This Lease shall be governed exclusively by the provisions hereof and by the laws of the
Commonwealth of Massachusetts, as the same may from time to time exist. 

        14.25    BLINDS AND DRAPES.    No blinds may be put on or in any window or elsewhere if visible from the exterior of
the Building, nor may the building standard drapes or blinds be removed by Tenant. Tenant may hangs its own drapes, provided that they shall not in any way interfere with the building
standard drapery or blinds or be visible from the exterior of the Building and that such drapes are so hung and installed that when drawn, the building standard drapery or blinds are automatically
also drawn. Neither Landlord's name, nor the name of the Building, or the name of any other structure erected therein shall be used without Landlord's consent in any advertising material (except on
business stationery or as an address in advertising matter), nor shall any such name, as aforesaid, be used in any undignified, confusing, detrimental or misleading manner. 

        IN
WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed, under seal, by persons hereunto duly authorized, in multiple copies, each to be considered an original
hereof, as of the date first set forth above. 

	 	 	 	 	LANDLORD: CABOT ROAD PARTNERS, LLC
	

 	
 	

 	
 	

By:	
 	

BERKELEY INVESTMENTS, INC., its general partner
	

Attest:	
 	

/s/  STEVE BROOKS      
	
 	

By:	
 	

/s/  DONALD CUFF      

	

 	
 	

 	
 	
TENANT:

THE FIRST MARBLEHEAD CORPORATION
	

Attest:	
 	

    
	
 	

By:	
 	

/s/  ANDREW J. HAWLEY      
 (Vice) President
	

Attest:	
 	

    
	
 	

By:	
 	

    
 (Assistant) Treasurer

39

   EXHIBIT FP

(Floor Plan of the Premises)  

[schematic
diagrams of second and third floors] 

40

 
EXHIBIT FP-1

(Floor Plan of the Expansion Premises)  

[schematic
diagram of first refusal space—approximately 16,640 RSF] 

41

 
EXHIBIT FP-2

(Floor Plan of the Storage Area)  

[schematic
diagram of storage space—approximately 1,000 SF] 

42

 
EXHIBIT PP

(Plan of the Property)  

[schematic
diagram of site, including bounding roadways] 

43

 
EXHIBIT OC

(Items Included in Operating Expenses)  

        Without
limitation, Operating Expenses shall include: 

	1.
	All
expenses (including any sales or use tax) incurred by Landlord or Landlord's agents which shall be directly related to employment of personnel, including amounts incurred for
wages, salaries and other compensation for services, payroll, social security, unemployment and similar taxes, workmen's compensation insurance, disability benefits, pensions, hospitalization,
retirement plans and group insurance, uniforms and working clothes and the cleaning thereof, and expenses imposed on Landlord or Landlord's agents pursuant to any collective bargaining agreement for
the services of employees of Landlord or Landlord's agents in connection with the operation, administration, repair, maintenance, cleaning, management and protection of the Property, and its
mechanical systems including, without limitation, day and night supervisors, property manager, accountants, bookkeepers, janitors, carpenters, engineers, mechanics, electricians and plumbers and
personnel engaged in supervision of any of the persons mentioned above; provided that, if any such employee is also employed on other property of Landlord, such compensation shall be suitably prorated
among the Property and such other properties;

	2.
	The
cost incurred by Landlord of services, materials and supplies furnished or used in the operation, administration, repair, maintenance, cleaning, management and protection of the
Property, including, without limitation, fees, if any, imposed upon Landlord, or charged to the Property, by the state or municipality in which the Property is located on account of the need of the
Property for increased or augmented public safety services;

	3.
	The
cost of replacements for tools and other similar equipment used in the repair, maintenance, cleaning and protection of the Property, provided that, in the case of any such
equipment used jointly on other property of Landlord, such costs shall be suitably prorated among the Property and such other properties;

	4.
	Where
the Property is managed by Landlord or an affiliate of Landlord, a sum equal to the amounts customarily charged by management firms in the Boston area for similar properties, but
in no event more than four percent (4%) of gross annual income, whether or not actually paid, or where managed by other than Landlord or an affiliate thereof, the amounts accrued for management (not
exceeding four percent of gross annual income), together with, in either case, amounts accrued for legal and other professional fees relating to the Property, but excluding such fees and commissions
paid in connection with services rendered for securing or renewing leases and for matters not related to the normal administration and operation of the Building;

	5.
	Premiums
for insurance against damage or loss to the Building from such hazards as shall from time to time be generally required by institutional mortgagees in the Boston area for
similar properties, including, but not by way of limitation, insurance covering loss of rent attributable to any such hazards, and public liability insurance and premiums for fidelity bonds covering
persons having custody or control over funds or other property of Landlord relating to the Property;

	6.
	If,
during the Term of this Lease, Landlord shall make a capital expenditure for the purpose of complying with any legal requirement enacted or promulgated after the date of this Lease
or for the purpose of updating any Building system in order to reduce Operating Expenses, the total cost of which is not properly includable in Operating Expenses for the Operating Year in which it
was made, there shall nevertheless be included in such Operating Expenses for the Operating Year in which it was made and in Operating Expenses for each succeeding 

44

 

Operating
Year the annual charge-off of such capital expenditure; provided, however, with respect to those capital expenditures incurred to reduce Operating Expenses, the annual
charge-off included in the Operating Expenses for any Operating Year shall not exceed the actual savings realized by Landlord. Annual charge-off shall be determined by dividing
the original capital expenditure plus an interest factor, reasonably determined by Landlord as being the interest rate then being charged for
long-term mortgages by institutional lenders on like properties within the locality in which the Building is located, by the number of years of useful life of the improvement made with the
capital expenditure (except that with respect to a capital expenditure for the purpose of saving Operating Expenses, the number of years may be less than the useful life of the improvement to the
extent of such savings); and the useful life shall be otherwise determined reasonably by Landlord in accordance with generally accepted accounting principles and practices in effect at the time of
making such expenditure; and 

	7.
	Costs
incurred by Landlord for electricity, fuel, water and sewer use charges, and all other utilities supplied to the Property, except for those paid for directly by tenants of the
Property. 

        Operating
Expenses shall not include, and therefore Landlord is not entitled to be reimbursed under this Lease for, the following items: (i) depreciation on the Building or any
other improvement on the Property; (ii) costs of planning, designing, improving or altering any tenant's space; (iii) costs of relocating any tenant; (iv) expenses of advertising,
marketing and leasing space in the Building, including finders' fees and real estate broker commissions, legal fees, fit-up costs, contributions, credits, and buy-out costs;
(v) costs for which Landlord is otherwise reimbursed, but only to the extent of such other reimbursement, such as, for example, expenses reimbursed by another tenant under the provisions of
such other tenant's lease; (vi) costs of any work or service performed for any other tenant to the extent such work or service is in excess of any work or service which Landlord is obligated to
furnish to Tenant; (vii) Landlord's general overhead and administrative expenses (exclusive of the management fee referenced above); (viii) court costs and legal fees; (ix) wages
of any employee above the property manager; (x) except as otherwise expressly permitted under clause 6 above, all expenditures that are considered to be capital expenditures under GAAP;
(xi) costs of repairs covered by warranty or guaranty; (xii) costs of repairs and replacements incurred by reason of fire or other casualty or caused by the exercise of the right of
eminent domain to the extent Landlord is reimbursed for such expenses from insurance proceeds or any condemnation award and, with respect to those repairs and replacements for which Landlord is not
reimbursed, such costs shall be excluded to the extent they would otherwise be excluded under this Exhibit OC; (xiii) costs related to the financing or refinancing of the Building or Property,
including points, commissions and legal fees; (xiv) costs of complying with any laws, including, without limitation, environmental laws in effect as of
the Commencement Date of this Lease; (xvi) contributions for off site improvements; (xvii) contributions to reserves; (xviii) all interest and amortization payments, and all fines
and penalties; (xix) any cost or charge billed to Landlord pursuant to a service contract, which cost or charge, if incurred directly by Landlord, would be excluded from the Operating Expenses;
(xx) all rent paid under any other ground or superior lease of the Building or Property; (xxiii) Taxes and all costs to contest Taxes; (xxiv) any costs and expenses related to the
cafeteria in the Building to the extent reimbursed directly by the operator of such cafeteria or otherwise offset by the income received by Landlord for such cafeteria; and (xxv) any capital
expenditures, except to the extent expressly permitted under paragraph 6 above. 

        In
the event any employee whose wages (including fringe benefits and employment taxes) are included in the Operating Expenses does not devote his/her entire time to the Building and/or
Property, then said wages shall be included only in proportion to the amount of time spent working at the Building and/or Property. In addition, if any service is provided by an affiliate or
subsidiary of Landlord or managing agent, the cost of such service shall not exceed the reasonable and customary cost charged by an independent, reputable third party performing the same services. 

45

 
EXHIBIT CS

(Cleaning Specifications)  

A.    General    

	1.
	All
stone, ceramic, tile, marble, terrazzo and other unwaxed flooring to be swept nightly on Business Days, using approved dust-down preparation; wash flooring once a
month.

	2.
	All
linoleum, rubber, asphalt tile and other similar types of flooring (that may be waxed) to be swept nightly on Business Days, using approved dust-down preparation.
Waxing, if any, shall be done at Tenant's expense.

	3.
	All
carpeting and rugs to be carpet swept or vacuum cleaned nightly on Business Days, as may be required.

	4.
	Hand
dust and wipe clean all furniture, files, fixtures and window sills nightly on Business Days;

	5.
	Dust
interior of all waste paper disposal cans and baskets nightly on Business Days; damp dust as necessary.

	6.
	Wash
clean all water coolers nightly on Business Days;

	7.
	Dust
all door and other ventilating louvers within reach, as necessary.

	8.
	Dust
all telephones as necessary.

	9.
	Sweep
all private stairway structures nightly on Business Days.

	10.
	Wipe
clean all bright work weekly.

	11.
	Interior
and exterior of metal elevator car and hatch doors, including saddles, to be properly cleaned and treated as necessary.

	12.
	The
parties agree and acknowledge that, despite reasonable precautions in selecting cleaning and maintenance contractors and personnel, any property or equipment in the premises of a
delicate, fragile or vulnerable nature may nevertheless be damaged in the course of cleaning and maintenance services being performed. Accordingly, Tenant shall take reasonable protective precautions
with such property and equipment (including, without limitation, computers, or other data processing components or equipment and optical or electronic equipment, etc.), e.g. housing the property and
equipment in a separate, locked room, so as to render it inaccessible to the Building's cleaning personnel. 

B.    Lavatories (Building)    

	1.
	Sweep
and wash all lavatory floors nightly on Business Days, wash and polish all mirrors, powder shelves, bright work and enameled surfaces in lavatories, weekly.

	2.
	Scour,
wash and disinfect all basins, bowls and urinals throughout all lavatories nightly on Business Days.

	3.
	Wash
all toilet seats nightly on Business Days.

	4.
	Hand
dust and clean all partitions, tile wall dispensers and receptacles in all lavatories nightly on Business Days.

	5.
	Empty
paper towel receptacles and transport wastepaper from the demised premises nightly on Business Days.

	6.
	Fill
toilet tissue holders nightly on Business Days. 

46

 

	7.
	Empty
sanitary disposal receptacles nightly on Business Days.

	8.
	Wash
interior of waste cans and receptacles at least once a week.

	9.
	Thoroughly
wash all wall tile and stall surfaces as often as necessary but in no event less than once every two weeks.

	10.
	Fill
soap dispensers and paper towel dispensers. 

C.    High Dusting    

        Do
all high dusting quarterly, which includes the following: 

	1.
	Dust
clean all vertical surfaces, such as walls, partitions, doors and bucks and other surfaces not reached in nightly cleaning.

	2.
	Dust
clean all pipes, ventilating and air conditioning louvers, ducts, high moldings and other high areas not reached in nightly cleaning.

	3.
	Dust
all lighting fixtures, including glass or plastic enclosures (exterior only). 

D.    Window Cleaning    

	1.
	All
windows to be cleaned inside and outside, two times a year.

	2.
	Tenants'
entrance doors and lobby glass to be spot-cleaned daily on Business Days.

	3.
	All
other Tenant interior partition glass and glass doors are to be cleaned at Tenant's request and cost. 

E.    Day Porters    

	1.
	Service,
during Business Days all public and operating space throughout the Building.

	2.
	Keep
elevator cars clean and neat during the day on Business Days.

	3.
	Insert
toilet tissue in lavatories as necessary on Business Days.

	4.
	Keep
staircases policed as necessary on Business Days.

	5.
	Fill
soap dispensers and paper towel dispensers on Business Days.

	6.
	Police
all Buildings' men's and ladies' toilets during the day on Business Days. 

F.    Exterminating Services    

Provide
exterminating services by a licensed operator once a month throughout public space and vacant tenant space in the Building. 

47

  

EXHIBIT TW

(Tenant's Work Requirements)  

A.    General    

	1.
	All
alterations, installations or improvements ("Alterations") to be made by Tenant in, to or about the Premises shall be made in accordance with the requirements of this Exhibit and
by contractors or mechanics approved by Landlord.

	2.
	Tenant
shall, prior to the commencement of any work, submit for Landlord's written approval, complete plans for the Alterations, which plans meet the requirements set forth in Exhibit
PR. Drawings are to be complete with full details and specifications for all of the Alterations.

	3.
	Alterations
must comply with the Building Codes in effect for the City of Medford and the requirements, rules and regulations and any other governmental agencies having jurisdiction.

	4.
	No
work shall be permitted to commence without the Landlord being furnished with a valid permit from the City of Medford Building Department and/or other agencies having jurisdiction.

	5.
	All
demolition, removals or other categories of work that in Landlord's reasonable judgment may inconvenience other tenants or disturb Building operations, must be scheduled and
performed before 8:00 a.m. or after 6:00 p.m. and Tenant shall provide the Building manager with at least 48 hours' notice prior to proceeding with such work.

	6.
	All
inquiries, submissions, approvals and all other matters shall be processed through the Building manager, and shall be in writing. 

B.    Prior to Commencement of Work    

	1.
	Tenant
shall submit to the Building manager a written request to perform the work. The request shall include the following enclosures:

	(i)
	A
list of Tenant's contractors and/or subcontractors for Landlord's approval, including afterhours emergency contractor numbers.

	(ii)
	Four
complete sets of plans and specifications properly stamped by a registered architect and/or professional engineer and meeting the requirements set forth in Exhibit PR.

	(iii)
	A
properly executed building permit application form.

	(iv)
	Four
executed copies of the Insurance Requirements agreement in the form attached to these Tenant's Work Requirements from Tenant's contractor and if requested by Landlord from the
contractor's subcontractors.

	(v)
	Contractor's
and subcontractor's insurance certificates including an indemnity in accordance with the Insurance Requirements agreement.

	2.
	Within
ten (10) business days, Landlord will return the following to Tenant:

	(i)
	Two
sets of plans approved or a disapproval with specific comments as to the reasons therefor (such approval or comments shall not constitute a waiver of Building Department approval
or approval of other governmental agencies).

	(ii)
	Two
fully executed copies of the Insurance Requirements agreement.

	3.
	Tenant
shall obtain a building permit from the Building Department and necessary permits from other governmental agencies. Tenant shall be responsible for keeping current all permits.
Tenant shall submit copies of all approved plans and permits to Landlord and shall post the 

48

 

original
permit on the Premises prior to the commencement of any work. All work, if performed by a contractor or subcontractor, shall be subject to reasonable supervision and inspection by Landlord's
representative. Such supervision and inspection, to the extent that the work may affect the Building's mechanical and electrical systems, shall be at Tenant's sole expense and Tenant shall pay
Landlord's reasonable charges for such supervision and inspection. 

C.    Requirements and Procedures    

	1.
	All
structural and floor loading requirements shall be subject to the prior approval of Landlord's structural engineer, with cost of such review to be paid by Tenant.

	2.
	All
mechanical (HVAC, plumbing and sprinkler) and electrical requirements shall be subject to the approval of Landlord's mechanical and electrical engineers and all mechanical and
electrical work shall be performed by contractors approved by Landlord. When necessary, Landlord will require engineering and shop drawings, which drawings must be approved by Landlord before work is
started. Drawings are to be prepared by Tenant and all approvals shall be obtained by Tenant.

	3.
	Elevator
service for construction work shall be charged to Tenant at standard Building rates which will include the cost of operators and supervisory staff. Prior arrangements for
elevator use shall be made in writing at least 48 hours in advance with Building manager by Tenant. No material or equipment shall be carried under or on top of elevators. If an operating
engineer or master mechanic is required by any union regulations, such engineer or master mechanic shall be paid for by Tenant.

	4.
	If
shutdown of risers and mains for electrical, HVAC, sprinkler and plumbing work is required, such work shall be supervised by Landlord's representative at Tenant's cost. No work will
be performed in Building's mechanical or electrical equipment rooms without Landlord's approval and under Landlord's supervision.

	5.
	Tenant's
contractor shall:

	(i)
	have
a responsible superintendent or foreman on the Premises at all times;

	(ii)
	police
the job at all times, continually keeping the Premises orderly;

	(iii)
	maintain
cleanliness and protection of all areas, at all times, including elevators and lobbies, building Common Areas, and loading areas.

	(iv)
	protect
the front and top of all peripheral HVAC units and thoroughly clean them at the completion of work;

	(v)
	block
off supply and return grills, diffusers and ducts to keep dust from entering into the Building air conditioning system;

	(vi)
	avoid
the disturbance of other tenants; and

	(vii)
	fully
abide by all building rules, policies and regulations.

	6.
	If
Tenant's contractor is negligent in any of its responsibilities and if, after notice to Tenant no corrective action is taken, Landlord may, but shall not be obligated to, engage
other contractors to perform the Alterations. Tenant shall be charged for corrective work.

	7.
	All
equipment and installations must be equal to the standards set forth in Exhibit BS. Any deviation from such standards will be permitted only if indicated or specified on the plans
and specifications and approved by Landlord. 

49

 

	8.
	A
properly executed air balancing report signed by an independent professional engineer shall be submitted to Landlord upon the completion of all HVAC work for approval.

	9.
	Upon
completion of the Alterations and prior to taking occupancy, Tenant shall submit to Landlord a permanent certificate of occupancy and final approval by the other governmental
agencies having jurisdiction.

	10.
	Tenant
shall submit to Landlord a final "as-built" set of sepia drawings showing all items of the Alterations in full detail.

	11.
	Additional
and differing provisions in the Lease, if any, will be applicable and will take precedence.

	12.
	Any
plan or design approval rights reserved to or exercised by Landlord hereunder are for the sole and exclusive benefit of Landlord to ensure compatibility of such work with Building
systems and Building standards, and such approval does not constitute any representation or warranty whatsoever as to the adequacy, correctness, efficiency or compliance with applicable law of such
plan or design or the work shown thereon. 

50

 

EXHIBIT IR

(Contractor's Insurance Requirements)  

Building:
One Cabot Road, Medford, Massachusetts 

Tenant: 

Premises: 

        The
undersigned contractor or subcontractor ("Contractor") has been hired by the tenant or occupant (hereinafter called "Tenant") of the Building named above or by Tenant's contractor to
perform certain work ("Work") for Tenant in the Premises identified above. Contractor and Tenant have requested the undersigned landlord ("Landlord") to grant Contractor access to the Building and its
facilities in connection with the performance of the Work and Landlord agrees to grant such access to Contractor upon and subject to the following terms and conditions: 

	1.
	Contractor
agrees to indemnify and save harmless the Landlord (and, if Landlord is a general or limited partnership, each of the partners thereof), Agent, Berkeley
Investment, Inc. and their respective officers, employees and agents and their affiliates, subsidiaries and partners, and each of them, from and with respect to any claims, demands, suits,
liabilities, losses and expenses, including reasonable attorneys' fees, arising out of or in connection with the Work (and/or imposed by law upon any or all of them) because of personal injuries,
including death at any time resulting therefrom and loss of or damage to property, including consequential damages, whether such injuries to person or property are claimed to be due to negligence of
the Contractor, Tenant, Landlord or any other party entitled to be indemnified as aforesaid except to the extent specifically prohibited by law (and any such prohibition shall not void this Agreement
but shall be applied only to the minimum extent required by law).

	2.
	Contractor
shall provide and maintain at its own expense, until completion of the Work, the following insurance:

	(a)
	Workmen's
Compensation and Employers, Liability Insurance covering each and every workman employed in, about or upon the Work, as provided for in each and every statute applicable to
Workmen's Compensation and Employers' Liability Insurance.

	(b)
	Comprehensive
General Liability Insurance including coverages for Products/Completed Operations, Broad Form Property Damage and Contractual Liability (to specifically include coverage
for the indemnification clause of this Agreement), all listing Landlord as an additional insured, for not less than the following limits: 

	Personal Injury:	 	$1,000,000 per person

$2,000,000 per occurrence
	

Property Damage:	
 	

$1,000,000 per occurrence

$2,000,000 aggregate

	(c)
	Comprehensive
Automobile Liability Insurance (covering all owned, non-owned and/or hired motor vehicles to be used in connection with the Work) for not less than the
following limits: 

	Bodily Injury:	 	$1,000,000 per person

$2,000,000 per occurrence
	

Property Damage:	
 	

$1,000,000 per occurrence

$2,000,000 aggregate

Contractor
shall furnish a certificate from its insurance carrier or carriers to the Building office before commencing the Work, showing that it has complied with the above requirements regarding 

51

 

insurance
and providing that the insurer will give Landlord ten (10) days' prior written notice of the cancellation of any of the foregoing policies. 

	3.
	Contractor
shall require all of its subcontractors engaged in the Work to provide the following insurance:

	(a)
	Comprehensive
General Liability Insurance including Protective and Contractual Liability coverages with limits of liability at least equal to the limits stated in
paragraph 2(b).

	(b)
	Comprehensive
Automobile Liability Insurance (covering all owned, non-owned and/or hired motor vehicles to be used in connection with the Work) with limits of liability at
least equal to the limits stated in paragraph 2(c). 

        Upon
the request of Landlord, Contractor shall require all of its subcontractors engaged in the Work to execute an Insurance Requirements agreement in the same form as this Agreement. 

        Agreed
to and executed this    day of                        ,        .

	 	 	Contractor:
	

 	
 	

By:	
 	

    

52

 
EXHIBIT BS

(Building Standards)  

 
 

TURNKEY EXHIBIT
  Building Standard Materials and Turnkey Scope    
    

        Landlord will provide a turnkey buildout of Tenant's Premises at Landlord's expense substantially in accordance with the following scope definition and floor
plans dated August 5, 2004 and labeled Schematic Design prepared by Fuller Associates ("Preliminary Plan") attached hereto and incorporated herein as part of this Exhibit BS. The tenant improvements
will be constructed with the building standard materials described below. Quantities will be defined by the Delineation of Turn-key Scope and Tenant Responsibility Matrix and approved Tenant plans. 

	 
	 	 
	 	Turn-key

Scope
	 	Tenant

Cost

	Preparation of Premises for Tenant Improvements	 	 	 	 
	a.	 	Landlord to remove at Landlord's expense existing tenant improvements, including all existing tele/data cabling, as required to provide the new tenant improvements described herein.	 	X	 	 
	b.	 	Landlord to furnish and install at Landlord's expense all partitions to demise the Premises, 21/2" metal studs at 16" on center with one (1) layer of 5/8" gypsum board
on one side and one (1) layer of 5/8" gypsum board on the other. Demising partitions will extend from floor to underside of structure above, insulated transfer ducts to be provided subject to requirements of the building air
conditioning system, and the partition will be filled with 3" compressed fiberglass sound insulation.	 	N/A	 	N/A
	c.	 	Landlord to provide all material and labor at Landlord's expense to segregate the fire protection, HVAC, fire alarm, and electrical systems as required due to the demising of the Premises.	 	N/A	 	N/A
	d.	 	Landlord to demolish and dispose of existing systems furniture and other equipment and debris remaining in the Premises.	 	X	 	 
	
Finish Carpentry	
 	

 	
 	

 
	a.	 	Provide new standard color plastic laminate exterior and interior finish upper and lower cabinets with adjustable interior shelves at Pantries, Cafes and Kitchen.	 	X	 	 
	b.	 	A closet shelf and coat rod will be provided at each coat room and/or closet.	 	X	 	 
	c.	 	Standard color plastic laminate exterior and interior finish upper and lower cabinets with adjustable interior shelves at Copy/Fax, areas and Mail Rooms.	 	X	 	 
	d.	 	Tenant to supply systems furniture.	 	 	 	X
	e.	 	Reception desk.	 	 	 	X
	f.	 	Provide new standard color plastic laminate phone carrels and coat rack at Training area Phones/Coats.	 	X	 	 
	g.	 	Demo and dispose of ceilings in the existing auditorium and boardroom on the second floor.	 	X	 	 
	h.	 	Repair window sills where damaged or altered for walls that have been demolished.	 	X	 	 
	
Rough Carpentry	
 	

 	
 	

 
	a.	 	One (1) 4'x 8' plywood backboard mounted partition in MIS rooms to be provided for Tenant's tele/data and security system equipment.	 	X	 	 
	b.	 	Blocking within partitions to be provided as required for Turnkey work.	 	X	 	 
	 	 	 	 	 	 	 

53

 

	c.	 	Raised flooring at 3rd floor auditorium as required for elevated seating.	 	X	 	 
	d.	 	Provide design and support of dense file system at File Room, 2W.	 	X	 	 
	
Doors & Frames & Hardware	
 	

 	
 	

 
	The Tenant standard doors shall consist of the following:	 	 	 	 
	a.	 	All doors within a single premises will be 3'0" × 8'0" solid core wood doors or equivalent with mahogany veneer (finish to match doors on 2nd Floor), 13/4" thick and shall receive a factory
clear finish. Oak doors refinished to mahogany will not be accepted. Door frames will be hollow metal.	 	X	 	 
	b.	 	Hardware will include four (4) butts, one (1) standard duty mortise latch set, and one (1) floor-mounted door stop. Standard duty mortise locksets to be provided at doors to the common corridor. All office doors to
receive one (1) coat hook. Landlord will be responsible to match existing hardware and replace any missing hardware.	 	X	 	 
	c.	 	Closers to be provided at doors to the common corridor, cafes, pantries, copy/fax areas and IT rooms.	 	X	 	 
	d.	 	Landlord will provide entry doors as shown on plans.	 	X	 	 
	e.	 	Where doors have had multiple hardware/locks removed, door shall be replaced with a new door and appropriate door hardware. Plating of core holes will not be acceptable.	 	X	 	 
	
Partitions	
 	

 	
 	

 
	The following building standard materials will be provided by Landlord:	 	 	 	 
	a.	 	Interior partitions (i.e. partitions within the a single Premises) will be 21/2" metals studs 24" on center with one (1) layer of 5/8" gypsum board on each side.
Partitions will be built to 6" above the ceiling.	 	X	 	 
	b.	 	Walls that are existing to remain shall be patched and repaired to receive new finishes.	 	X	 	 
	
Ceiling	
 	

 	
 	

 
	a.	 	Building standard ceilings shall be 2'0" × 2'0" reveal edge textured acoustic lay-in tile, Celotex LeBaron, or equal. Ceiling grid shall match existing.	 	X	 	 
	b.	 	ACT shall be consistent throughout. Patterned or embossed ACT shall be replaced to match existing tile in open areas.	 	X	 	 
	
Flooring	
 	

 	
 	

 
	a.	 	Landlord will provide a $25/sy allowance for the total installed cost of the carpet, exclusive of any floor leveling or preparation that may be required.	 	X	 	 
	b.	 	Standard VCT will be provided in pantries, kitchen and kitchen areas of cafes. It shall also be provided at storage and file rooms, as copy/fax rooms.	 	X	 	 
	c.	 	Existing VCT that remains as shown on plans shall be stripped and re-sealed.	 	X	 	 
	d.	 	Anti-static VCT to be provided in new MIS or IS rooms, as shown on plans.	 	X	 	 
	e.	 	4" vinyl base will be provided on all partitions.	 	X	 	 
	f.	 	Base building restrooms contained within the Premises are to receive new carpet (where carpet currently exists) complementary to Tenant finishes and existing restroom fixtures.	 	X	 	 
	
Painting and Wall Covering	
 	

 	
 	

 
	a.	 	All wall surfaces and ceiling soffits shall receive two (2) coats of eggshell finish latex paint. Color selection will be made from a mutually agreed upon color palette with not more than one (1) color per
office.	 	X	 	 
	 	 	 	 	 	 	 

54

 

	b.	 	All existing interior hollow metal door frames will receive two (2) coats of semi-gloss enamel.	 	X	 	 
	c.	 	Base building restrooms contained within the Premises are to receive new wall finishes complementary to Tenant finishes and existing restroom fixtures.	 	X	 	 
	
Specialties	
 	

 	
 	

 
	a.	 	Fire extinguishers and cabinets to be provided as required per Code.	 	X	 	 
	b.	 	Perimeter blinds to be in good working order with missing slats replaced.	 	X	 	 
	c.	 	Damaged window sills repaired and sills washed down throughout.	 	X	 	 
	d.	 	In-ceiling, electric projection screens shall be provided at all training and conference rooms seating 8 or more.	 	X	 	 
	e.	 	LL to confirm as functional and/or repair as needed the automatic blackout shades in the third floor auditorium space. LL to provide any equipment required to operate said shades in a complete and functional
manner.	 	X	 	 
	
Appliances	
 	

 	
 	

 
	a.	 	Appliances to be provided as shown on plans.	 	 	 	X
	
Fire Protection	
 	

 	
 	

 
	a.	 	All existing fire sprinkler heads to be reused and relocated to center of ceiling tiles as required by reflected ceiling plan. New heads with swing arms to be provided as required per Code.	 	X	 	 
	b.	 	Existing Inergen system to be tested, adjusted and recharged as necessary for reuse at existing Data Center room.	 	X	 	 
	c.	 	Deactivated Intergen system to be tested, adjusted and tanks provided and charged as necessary to reactive for reuse at existing room.	 	X	 	 
	
Plumbing	
 	

 	
 	

 
	a.	 	Landlord will provide a stainless steel sink with hot and cold water at the pantries, kitchen, cafes and servery. A point of use hot water heater will be sized for the sink requirement and installed in an adjacent base
cabinet. Tees for connection of water purification systems, refrigerators, and ice makers shall be provided at the sink.	 	X	 	 
	b.	 	New restrooms are to be provided on Floors 2 and 3 as shown on plans, fixtures and level of finish to match base building standard.	 	X	 	 
	
HVAC	
 	

 	
 	

 
	The Landlord will provide a fully functional HVAC system that will include the following:	 	 	 	 
	a.	 	HVAC system consists of air handling units and interior VAV boxes. One (1) VAV box and one (1) DDC sensor will be provided per 1,500 square feet of interior usable space, mail room, and each conference room. One (1) DDC
sensor to be provided for each 800 useable square feet of space abutting the exterior windows. VAV boxes to be located so to not be above private offices or conference rooms.	 	X	 	 
	b.	 	Supply air on the interior shall be provided through low pressure duct work, ceiling- mounted diffusers, with concealed spline (or equal). Return air will be into a ceiling return air plenum through ceiling-mounted grills,
 (or equal).	 	X	 	 
	c.	 	Provide supplemental cooling to Data Center, Engineering, Development Staging, IT and MIS Rooms, as shown on drawings.	 	X	 	 
	d.	 	Provide supplemental cooling to Printing rooms (2W, west of Café)	 	X	 	 
	 	 	 	 	 	 	 

55

 

	
Electrical	
 	

 	
 	

 
	The Landlord will provide a fully functional generator based electrical system based on the following:	 	 	 	 
	a.	 	The lighting will be (2) 2x2 recessed direct/indirect fluorescent parabolic fixtures.	 	X	 	 
	b.	 	One (1) switch or occupancy sensor will be provided in each individual room, as required by Code.	 	X	 	 
	c.	 	Provide occupancy sensors/switching in open areas, as required by Code.	 	X	 	 
	d.	 	Duplex outlets to be provided in open areas as required for cleaning. Two duplex outlets to be provided at each office and enclosed room. Furniture feeds to be provided as required on Fit Plan.	 	X	 	 
	e.	 	Provide dedicated, grounded, surge protected power as required at Data Center, Engineering, Development Staging, IT and MIS Rooms and Printing Areas, as shown on drawings.	 	X	 	 
	f.	 	One (1) flush poke-through receptacle providing both electrical and tele/data feeds to be provided in Conference Rooms.	 	X	 	 
	g.	 	If required, transformers and panelboards located in electrical closet located within the base building electrical closets to supply the Premises.	 	X	 	 
	h.	 	All exit signs, fire alarm devices, emergency egress lighting, and wiring required per Code will be provided. Existing fire alarm panel to be reused.	 	X	 	 
	i.	 	Provide floor cores and conduit as required to supply conference room floor outlets and systems furniture connections where wiring is not contained within the Premises (e.g., Second floor space).	 	X	 	 
	
Telecom, Security, and Audio/Visual Systems	
 	

 	
 	

 
	a.	 	One (1) plaster ring with pull string to above the finish ceiling to be provided at each private office, interview room, reception desk, copier and LAN room. Two (2) plaster rings with pull strings to above the finish
ceiling to be provided at conference room.	 	X	 	 
	b.	 	Tel/Data wiring	 	 	 	X
	
Security	
 	

 	
 	

X
	a.	 	One (1) plaster ring with pull string to above the finish ceiling to be provided at each card reader, camera location or door contact as designated on plan.	 	X	 	 

56

 
EXHIBIT PR

(Tenant Plan Requirements)  

        Whenever Tenant shall be required by the terms of the Lease to submit plans to Landlord in connection with any improvement or alteration to the Premises, such
plans shall include at least the following: 

	1.
	Floor
plan indicating location of partitions and doors (details required of partition and door types) and a furniture plan indicating the proposed use of the Premises.

	2.
	Location
of standard electrical convenience outlets and telephone outlets.

	3.
	Location
and details of special electrical outlets; e.g., photocopiers, etc.

	4.
	Reflected
ceiling plan showing layout of standard ceiling and lighting fixtures. Partitions to be shown lightly with switches located indicating fixtures to be controlled.

	5.
	Locations
and details of special ceiling conditions, lighting fixtures, speakers, etc.

	6.
	Location
and specifications of floor covering, paint or paneling with paint colors referenced to standard color system.

	7.
	Finish
schedule plan indicating wall covering, paint, or paneling with paint colors referenced to standard color system.

	8.
	Details
and specifications of special millwork, glass partitions, rolling doors and grilles, blackboards, shelves, etc.

	9.
	Hardware
schedule indicating door number keyed to plan, size, hardware required including butts, latchets or locksets, closures, stops, and any special items such as thresholds,
soundproofing, etc. Keying schedule is required.

	10.
	Verified
dimensions of all built-in equipment (file cabinets, lockers, plan files, etc.)

	11.
	Location
and weights of storage files.

	12.
	Location
of any special soundproofing requirements.

	13.
	Location
and details of special floor areas exceeding 50 pounds of live load per square foot.

	14.
	All
structural, mechanical, plumbing and electrical drawings, to be prepared by the base building consulting engineers, necessary to complete the Premises in accordance with Tenant's
Plans.

	15.
	All
drawings to be uniform size (30" × 46") and shall incorporate the standard project electrical and plumbing symbols and be at a scale of
1/8" = 1' or larger.

	16.
	All
drawing shall be stamped by an architect (or, where applicable, an engineer) licensed in the Commonwealth of Massachusetts and without limiting the foregoing, shall be sufficient
in all respects for submission to the City of Medford Inspectional Services Department in connection with a building permit application.

	17.
	Landlord's
approval of the plans, drawings, specifications or other submissions in respect of any work, addition, alteration or improvement to be undertaken by or on behalf of Tenant
shall create no liability or responsibility on the part of Landlord for their completeness, design sufficiency or compliance with requirements of any applicable laws, rules or regulations of any
governmental or quasi-governmental agency, board or authority. 

57

 

EXHIBIT CL

(Commencement Letter)  

CABOT ROAD PARTNERS LLC

121 High Street

Boston, MA 02110  

[Name of Contact]

[Name of Tenant]

One Cabot Road

Medford, MA

	RE:
	[Name
of Tenant]

[Premises Rentable Area and Floor] One Cabot Road, Medford 

Dear
[Name of Contact]: 

        Reference
is made to that certain Lease [and Leasehold Improvements Agreement], both dated as of                        ,
19    , between Cabot Road Partners
LLC as Landlord and                        as Tenant, with respect to approximately square feet of space on
the            floor of One Cabot Road, Medford, Massachusetts.
 

        In
accordance with Section 4.1 of the Lease, this is to confirm that the Commencement Date of the term of such Lease occurred
on                        , that the Rent Commencement Date
shall occur on                        and that the Initial Term of such Lease shall expire
on                        . If the foregoing is in accordance with your understanding, would you kindly execute this letter
in the space provided below, and return the same to us for execution by Landlord, whereupon it will become a binding agreement between us. 

	 	 	Very truly yours,
	

 	
 	
LANDLORD: CABOT ROAD PARTNERS, LLC
	

 	
 	

By:	
 	

 
	

 	
 	

By:	
 	

 
	

Attest:	
 	

By:	
 	

    

	

 	
 	
TENANT:	
 	

    

	

Attest:	
 	

By:	
 	

    
 (Vice) President
	 	 	 	 	 

58

 

	

Attest:	
 	

By:	
 	

    
 (Assistant) Treasurer

	Accepted and Agreed:	 	 
	

[Name of Tenant]	
 	

 
	

By:	
 	

    
	
 	

 
	 	 	Name:	 	    
	 	 
	 	 	Title:	 	    
	 	 
	 	 	Date:	 	    
	 	 

59

   EXHIBIT AP

LOCATION OF ADDITIONAL PARKING SITE  

60

 
EXHIBIT SP-1

DATA CENTER SPACE PLAN  

[schematic
diagram of third-floor data center] 

61

 
EXHIBIT SP-2

PREMISES SPACE PLAN  

[schematic
diagrams of second and third floor space plans] 

62

 
EXHIBIT ES

PLAN OF TENANT'S EXTERIOR SIGNAGE  

[schematic
diagram of exterior sign location] 

63

 
EXHIBIT RR

RULES AND REGULATIONS  

        1.     The
sidewalks, halls, passages, exits and entrances of the Building shall not be obstructed by Tenant or used by it for any purpose other than for ingress to and egress
from the Premises. The halls, passages, exits, entrances, elevators and stairways are not for the use of the general public, and Landlord shall in all cases retain the right to control and prevent
access thereto of all persons whose presence in the judgment of Landlord would be prejudicial to the safety, character, reputation and interests of the Building and its tenants, provided that nothing
herein confined shall be construed to prevent such access to person with whom Tenant normally deals in the ordinary course of its business, unless such persons are engaged in illegal activities.
Tenant shall not go upon the roof of the Building, except in areas that Landlord may designate as "Common Areas" from time to time. 

        2.     The
Premises shall not be used for lodging or sleeping and no cooking shall be done or permitted by Tenant on the Premises except that the preparation of coffee, tea, hot
chocolate and similar items for Tenant and its employees shall be permitted. 

        3.     Tenant
shall not employ any person or persons other than the cleaning contractor of Landlord for the purpose of cleaning the Premises, unless otherwise agreed to by
Landlord in writing, except with the written consent of Landlord. No person or persons other than those approved by Landlord shall be permitted to enter the Building for the purpose of cleaning same.
Tenant shall not cause any unnecessary labor by reason of Tenant's carelessness or indifference in the preservation of good order and cleanliness. 

        4.     No
additional locking devices shall be installed without the proper written consent of Landlord. Landlord may make reasonable charge for removal of any additional lock
and bolt installed on any door of the Premises without the prior consent of Landlord. Tenant shall, upon the termination of its tenancy deliver to Landlord all keys to doors in the Building and the
Premises that have been furnished to Tenant. 

        5.     The
freight elevator shall be available for use by Tenant, subject to such reasonable scheduling as Landlord shall deem appropriate. The persons employed by Tenant to
move equipment or other items in or out of the Building must be acceptable to Landlord. Landlord shall have the right to prescribe the weight, size and position of all equipment, materials, supplies,
furniture or other property brought into the Building. Landlord will not be responsible for loss of or damage to any such property from any cause, and all damage done to the Building by moving or
maintaining Tenant's property shall be repaired at the expense of Tenant. 

        6.     Tenant
shall not use or keep in the Premises or the Building any kerosene, gasoline or flammable or combustible fluid or use any method of heating or air conditioning
other than that supplied by Landlord. Tenant shall not use, keep or permit or suffer the Premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the
Building by reason of noise, odors and/or vibrations, or interfere in any way with other tenants or those having business in the Building. 

        7.     In
case of invasion, mob, riot, public excitement or other circumstances rendering such action advisable in Landlord's opinion, Landlord reserves the right to prevent
access to the Building during the continuance of same by such action as Landlord may deem appropriate, including closing entrances to the Building. 

        8.     Tenant
shall see that the doors of the Premises are closed and securely locked at such time as Tenant's employees leave the Premises. 

        9.     The
toilet rooms, toilets, urinals, wash bowels and other apparatus shall not be used for any purpose other than that from which they were constructed, no foreign
substance of any kind whatsoever 

64

 

shall
be deposited therein, and any damage resulting to same from Tenant's misuse shall be paid for by Tenant. 

        10.   Tenant
shall not install any radio or television antenna, loudspeaker or other device on the roof or exterior walls of the Building. 

        11.   Tenant
shall not use in any space, or in the Common Areas of the Building, any handtrucks except those equipped with rubber tires and side guards or such other material
handling-equipment as Landlord may approve. No other vehicles of any kind shall be brought by Tenant into the Building or kept in or about the Premises. 

        12.   Tenant
shall store all its trash and garbage within the Premises until daily removal of same by Landlord to such location in the Building as may be designated from time
to time by Landlord. No material shall be placed in the Building trash boxes or receptacles if such material is of such nature that may not be disposed of in the ordinary and customary manner of
removing and disposing of trash and garbage in the municipality in which the Building is located without being in violation of any law or ordinance governing such disposal. All trash other than
ordinary office trash will be removed only by special request and at the expense of the Tenant. 

        13.   All
loading and unloading of merchandise, supplies, materials, garbage and refuse and delivery of same to the Premises shall be made only through such entryways and
elevators as Landlord shall designate. 

        14.   Canvassing,
soliciting, peddling or distribution of handbills or any other written material in the Building is prohibited, and Tenant shall cooperate to prevent same,
reporting any such activity to the Landlord. 

        15.   Tenant
shall not permit the use or the operation of any coin-operated machines on the Premises including, without limitation, vending machines, video games,
pinball machines, or pay telephones, without the prior written consent of Landlord. 

        16.   Landlord
may direct the use of all pest extermination and scavenger contractors at such intervals as Landlord may require. 

        17.   Tenant
shall ensure that all work by Tenant's contractors and/or vendors affecting any area of the Building other than the Tenant's Premises shall be coordinated with
reasonable advanced notice with the Landlord. If requested by Landlord, all such contractors and/or vendors shall be required to provide to Landlord a certificate of insurance, naming Landlord as
additionally insured. 

        18.   Landlord
reserves the right to select the name of the Building and to make such change or changes of name as it may deem appropriate from time to time, and Tenant shall
not refer to the Building by any name other than (i) the names as selected by Landlord (as same may be changed from time to time), (ii) the post office address, approved by the United
States Postal Service. Tenant shall not use the name of the Building in any respect other than as an address of its operation in the Building without the prior written consent of Landlord. 

        19.   Except
with the prior written consent of Landlord, Tenant shall not place any sign on the Building or any store front or in any window. 

        20.   The
requirements of Tenant will be attended to only upon application by telephone or in person at the office of the Building. Employees of Landlord shall not perform any
work or do anything outside of their regular duties unless under special instructions from Landlord. 

        21.   Landlord
may waive any one or more of these Rules and Regulations for the benefit of any particular tenant or tenants, but no such waiver by Landlord shall be construed
as a waiver of these Rules and Regulations in favor of any other tenant or tenants, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all of the tenants of
the Building. 

65

 

        22.   Whenever
the word "Tenant" occurs in these Rules and Regulations, it is understood and agreed that it shall mean Tenant's associates, agents, assigns, clerks, employees,
visitors, vendors and contractors. Wherever the word "Landlord" occurs in these Rules and Regulations, it is understood and agreed that it shall mean Landlord's assigns, agents, clerks, employees and
visitors. 

        23.   Landlord
shall provide Tenant with space on the Building's directory, located in the lobby, based upon the Tenant's pro rata share. No subheadings shall be allowed for
subtenants unless a sublease approved by Landlord has been executed by that individual. 

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

        25.   Landlord
reserves the right to make such other and reasonable Rules and Regulations as in its judgment may from time tot time be needed for the safety, care, operating
efficiency and cleanliness of the Building, and for the preservation of good order therein. 

66

 
EXHIBIT FO

(Superior Expansion Rights)  

        1.     TranSystems—Right
of First Refusal on 16,640 square feet on the first floor. 

        2.     Cross
Country—Right of First Offer on 29,757 square feet on the third floor. 

        3.     Partners
Healthcare—Right of First Offer on 77,380 square feet on the fourth floor. 

67

QuickLinks

Exhibit 10.40

TURNKEY EXHIBIT Building Standard Materials and Turnkey ScopeExhibit 4.10

 

EXECUTION COPY

 

 

 

MQ ASSOCIATES,
INC.

 

AND

 

WACHOVIA BANK,
NATIONAL ASSOCIATION,

AS TRUSTEE

 

121⁄4% Senior
Discount Notes due 2012

 

 

INDENTURE

 

Dated as of
August 24, 2004

 

 

 

 

 

Table of Contents

 

	
  ARTICLE I

  
	
  Definitions and Incorporation by Reference

  
	
   

  	
   

  
	
  SECTION 1.1. Definitions

  	
   

  
	
  SECTION 1.2. Other Definitions.

  	
   

  
	
  SECTION 1.3. Incorporation by Reference of
  Trust Indenture Act

  	
   

  
	
  SECTION 1.4. Rules of Construction

  	
   

  
	
  SECTION 1.5. Cross-References

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  
	
  The Securities

  
	
   

  	
   

  
	
  SECTION 2.1. Form, Dating and Terms

  	
   

  
	
  SECTION 2.2. Execution and Authentication

  	
   

  
	
  SECTION 2.3. Registrar and Paying Agent

  	
   

  
	
  SECTION 2.4. Paying Agent to Hold Money in
  Trust

  	
   

  
	
  SECTION 2.5. Securityholder Lists

  	
   

  
	
  SECTION 2.6. Transfer and Exchange

  	
   

  
	
  SECTION
  2.7. Form of Certificate to be Delivered in Connection with Transfers to
  Institutional Accredited Investors

  	
   

  
	
  SECTION 2.8. Form of Certificate to be
  Delivered in Connection with Transfers Pursuant to Regulation S.

  	
   

  
	
  SECTION 2.9. Mutilated, Destroyed, Lost or
  Stolen Securities

  	
   

  
	
  SECTION 2.10. Outstanding Securities

  	
   

  
	
  SECTION 2.11. Temporary Securities

  	
   

  
	
  SECTION 2.12. Cancellation

  	
   

  
	
  SECTION 2.13. Payment of Interest;
  Defaulted Interest

  	
   

  
	
  SECTION 2.14. Computation of Interest

  	
   

  
	
  SECTION 2.15. CUSIP and ISIN Numbers

  	
   

  
	
   

  	
   

  
	
  ARTICLE III

  
	
  Covenants

  
	
   

  	
   

  
	
  SECTION 3.1. Payment of Securities

  	
   

  
	
  SECTION 3.2. SEC Reports

  	
   

  
	
  SECTION 3.3. Limitation on Indebtedness

  	
   

  
	
  SECTION 3.4. Limitation on Restricted
  Payments

  	
   

  
	
  SECTION 3.5. Limitation on Liens

  	
   

  
	
  SECTION 3.6. Limitation on Restrictions on
  Distributions from Restricted Subsidiaries

  	
   

  
	
  SECTION 3.7. Limitation on Sales of Assets
  and Subsidiary Stock

  	
   

  
	
  SECTION 3.8. Limitation on Affiliate
  Transactions

  	
   

  
	
  SECTION 3.9. Change of Control

  	
   

  

 

ii

 

	
  SECTION 3.10. Limitation on Sale of Capital
  Stock of Restricted Subsidiaries

  	
   

  
	
  SECTION 3.11. Future Subsidiary Guarantors

  	
   

  
	
  SECTION 3.12. Limitation on Lines of
  Business

  	
   

  
	
  SECTION 3.13. Maintenance of Office or
  Agency

  	
   

  
	
  SECTION 3.14. Corporate Existence

  	
   

  
	
  SECTION 3.15. Payment of Taxes and Other
  Claims

  	
   

  
	
  SECTION 3.16. Payments for Consent

  	
   

  
	
  SECTION 3.17. Compliance Certificate

  	
   

  
	
  SECTION 3.18. Further Instruments and Acts

  	
   

  
	
  SECTION 3.19. Statement by Officers as to
  Default

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
  Successor Company

  
	
   

  	
   

  
	
  SECTION 4.1. Merger and Consolidation

  	
   

  
	
   

  	
   

  
	
  ARTICLE V

  
	
  Redemption of Securities

  
	
   

  	
   

  
	
  SECTION 5.1. Optional Redemption

  	
   

  
	
  SECTION 5.2. Applicability of Article

  	
   

  
	
  SECTION 5.3. Election to Redeem; Notice to
  Trustee

  	
   

  
	
  SECTION 5.4. Selection by Trustee of
  Securities to Be Redeemed

  	
   

  
	
  SECTION 5.5. Notice of Redemption

  	
   

  
	
  SECTION 5.6. Deposit of Redemption Price

  	
   

  
	
  SECTION 5.7. Securities Payable on
  Redemption Date

  	
   

  
	
  SECTION 5.8. Securities Redeemed in Part

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
  Defaults and Remedies

  
	
   

  	
   

  
	
  SECTION 6.1. Events of Default

  	
   

  
	
  SECTION 6.2. Acceleration

  	
   

  
	
  SECTION 6.3. Other Remedies

  	
   

  
	
  SECTION 6.4. Waiver of Past Defaults

  	
   

  
	
  SECTION 6.5. Control by Majority

  	
   

  
	
  SECTION 6.6. Limitation on Suits

  	
   

  
	
  SECTION 6.7. Rights of Holders to Receive
  Payment

  	
   

  
	
  SECTION 6.8. Collection Suit by Trustee

  	
   

  
	
  SECTION 6.9. Trustee May File Proofs of
  Claim

  	
   

  
	
  SECTION 6.10. Priorities

  	
   

  
	
  SECTION 6.11. Undertaking for Costs

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII

  
	
  Trustee

  
	
   

  	
   

  
	
  SECTION 7.1. Duties of Trustee

  	
   

  

 

iii

 

	
  SECTION 7.2. Rights of Trustee

  	
   

  
	
  SECTION 7.3. Individual Rights of Trustee

  	
   

  
	
  SECTION 7.4. Trustee’s Disclaimer

  	
   

  
	
  SECTION 7.5. Notice of Defaults

  	
   

  
	
  SECTION 7.6. Reports by Trustee to Holders

  	
   

  
	
  SECTION 7.7. Compensation and Indemnity

  	
   

  
	
  SECTION 7.8. Replacement of Trustee

  	
   

  
	
  SECTION 7.9. Successor Trustee by Merger

  	
   

  
	
  SECTION 7.10. Eligibility; Disqualification

  	
   

  
	
  SECTION 7.11. Preferential Collection of
  Claims Against Company

  	
   

  
	
  SECTION 7.12. Trustee’s Application for
  Instruction from the Company

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII

  
	
  Discharge of Indenture; Defeasance

  
	
   

  	
   

  
	
  SECTION 8.1. Discharge of Liability on
  Securities; Defeasance

  	
   

  
	
  SECTION 8.2. Conditions to Defeasance

  	
   

  
	
  SECTION 8.3. Application of Trust Money

  	
   

  
	
  SECTION 8.4. Repayment to Company

  	
   

  
	
  SECTION 8.5. Indemnity for U.S. Government
  Obligations

  	
   

  
	
  SECTION 8.6. Reinstatement

  	
   

  
	
   

  	
   

  
	
  ARTICLE IX

  
	
  Amendments

  
	
   

  	
   

  
	
  SECTION 9.1. Without Consent of Holders

  	
   

  
	
  SECTION 9.2. With Consent of Holders

  	
   

  
	
  SECTION 9.3. Compliance with Trust
  Indenture Act

  	
   

  
	
  SECTION 9.4. Revocation and Effect of
  Consents and Waivers

  	
   

  
	
  SECTION 9.5. Notation on or Exchange of
  Securities

  	
   

  
	
  SECTION 9.6. Trustee To Sign Amendments

  	
   

  
	
   

  	
   

  
	
  ARTICLE X

  
	
  Miscellaneous

  
	
   

  	
   

  
	
  SECTION 10.1. Trust Indenture Act Controls

  	
   

  
	
  SECTION 10.2. Notices

  	
   

  
	
  SECTION 10.3. Communication by Holders with
  other Holders

  	
   

  
	
  SECTION 10.4. Certificate and Opinion as to
  Conditions Precedent

  	
   

  
	
  SECTION 10.5. Statements Required in
  Certificate or Opinion

  	
   

  
	
  SECTION 10.6. When Securities Disregarded

  	
   

  
	
  SECTION 10.7. Rules by Trustee, Paying
  Agent and Registrar

  	
   

  
	
  SECTION 10.8. Legal Holidays

  	
   

  
	
  SECTION 10.9. GOVERNING LAW

  	
   

  
	
  SECTION 10.10. No Recourse Against Others

  	
   

  
	
  SECTION 10.11. Successors

  	
   

  
	
  SECTION 10.12. Multiple Originals

  	
   

  

 

iv

 

	
  SECTION 10.13. Qualification of Indenture

  	
   

  
	
  SECTION 10.14. Table of Contents; Headings

  	
   

  

 

	
   

  	
   

  
	
  EXHIBIT A

  	
  Form
  of the Series A Note

  
	
  EXHIBIT B

  	
  Form
  of the Series B Note

  
	
  EXHIBIT C

  	
  Form
  of Supplemental Indenture Constituting Notes Guarantee

  
	
   

  	
   

  
	
  Schedule
  3.4

  	
  Restricted
  Payments in Connection with the Transactions

  
	
  Schedule
  3.6

  	
  Existing
  Restrictions on Distributions

  

 

v

 

CROSS-REFERENCE
TABLE

 

	
  TIA

  Section

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  	
   

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  7.8; 7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.5

  
	
   

  	
  (b)

  	
   

  	
  10.3

  
	
   

  	
  (c)

  	
   

  	
  10.3

  
	
  313

  	
  (a)

  	
   

  	
  7.6

  
	
   

  	
  (b)(1)

  	
   

  	
  N.A.

  
	
   

  	
  (b)(2)

  	
   

  	
  7.6

  
	
   

  	
  (c)

  	
   

  	
  7.6

  
	
   

  	
  (d)

  	
   

  	
  7.6

  
	
  314

  	
  (a)

  	
   

  	
  3.2; 3.19;
  10.2

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  10.4

  
	
   

  	
  (c)(2)

  	
   

  	
  10.4

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  10.5

  
	
  315

  	
  (a)

  	
   

  	
  7.1

  
	
   

  	
  (b)

  	
   

  	
  7.5; 10.2

  
	
   

  	
  (c)

  	
   

  	
  7.1

  
	
   

  	
  (d)

  	
   

  	
  7.1

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a)(last
  sentence)

  	
   

  	
  10.6

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.5

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.4

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  6.7

  
	
  317

  	
  (a)(1)

  	
   

  	
  6.8

  
	
   

  	
  (a)(2)

  	
   

  	
  6.9

  
	
   

  	
  (b)

  	
   

  	
  2.4

  
	
  318

  	
  (a)

  	
   

  	
  10.1

  

 

N.A. means Not Applicable.

 

Note: This Cross-Reference Table shall not,
for any purpose, be deemed to be part of this Indenture.

 

 

INDENTURE
dated as of August 24, 2004, between MQ ASSOCIATES, INC., a Delaware
corporation (the “Company”), and WACHOVIA BANK, NATIONAL ASSOCIATION, a
national banking association (the “Trustee”) as Trustee.

 

Each party
agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of (i) the Company’s 121⁄4% Senior Discount Notes,
Series A, due 2012, issued on the date hereof (the “Initial Securities”),
(ii) if and when issued, an unlimited principal amount of additional 121⁄4%
Senior Discount Notes, Series A, due 2012 in a non-registered offering or 121⁄4%
Senior Discount Notes, Series B, due 2012 in a registered offering of the Company
that may be offered from time to time subsequent to the Issue Date (the “Additional
Securities”) and (iii) if and when issued, the Company’s 121⁄4% Senior
Discount Notes, Series B, due 2012 that may be issued from time to time in
exchange for Initial Securities or any Additional Securities in an offer
registered under the Securities Act as provided in the Registration Rights
Agreement (as hereinafter defined the “Exchange Securities,” and
together with the Initial Securities and Additional Securities, the “Securities”).

 

ARTICLE I

 

Definitions
and Incorporation by Reference

 

SECTION 1.1.   Definitions.

 

“Accreted
Value” means as of any date (such date, the “Specified Date”), the
amount provided below for each $1,000 principal amount at maturity of Securities:

 

(1)                                   if
the Specified Date occurs on one of the following dates (each, a “Semi-Annual
Accrual Date”), the Accreted Value will equal the amount set forth below
for such Semi-Annual Accrual Date:

 

	
  Semi-Annual Accrual Date

  	
   

  	
  Accreted
  Value

  	
   

  
	
  February 15, 2005

  	
   

  	
  $

  	
  659.59

  	
   

  
	
  August 15, 2005

  	
   

  	
  $

  	
  699.99

  	
   

  
	
  February 15, 2006

  	
   

  	
  $

  	
  742.87

  	
   

  
	
  August 15, 2006

  	
   

  	
  $

  	
  788.37

  	
   

  
	
  February 15, 2007

  	
   

  	
  $

  	
  836.66

  	
   

  
	
  August 15, 2007

  	
   

  	
  $

  	
  887.90

  	
   

  
	
  February 15, 2008

  	
   

  	
  $

  	
  942.28

  	
   

  
	
  August 15, 2008

  	
   

  	
  $

  	
  1,000.00

  	
   

  

 

(2)                                   if
the Specified Date occurs before the first Semi-Annual Accrual Date, the
Accreted Value will equal the sum of (A) the original issue price of a Security
and (B) an amount equal to the product of (x) the Accreted Value for the first
Semi-Annual Accrual Date less such original issue price and (y) a fraction, the
numerator of which is the number of days from the Issue Date to the Specified
Date, calculated using a 360-day year of twelve 30-

 

 

day months, and the denominator of which is the number of days elapsed
from the Issue Date to the first Semi-Annual Accrual Date, calculated using a
360-day year of twelve 30-day months;

 

(3)                                   if
the Specified Date occurs between two Semi-Annual Accrual Dates, the Accreted
Value will equal the sum of (A) the Accreted Value for the Semi-Annual Accrual
Date immediately preceding such Specified Date and (B) an amount equal to the
product of (x) the Accreted Value for the Semi-Annual Accrual Date next
succeeding such Specified Date less the Accreted Value for the Semi-Annual
Accrual Date immediately preceding such Specified Date and (y) a fraction, the
numerator of which is the number of days from the immediately preceding
Semi-Annual Accrual Date to the Specified Date, calculated using a 360-day year
of twelve 30-day months, and the denominator of which is 180; or

 

(4)                                   if
the Specified Date occurs after the last Semi-Annual Accrual Date, the Accreted
Value will equal $1,000;

 

provided, however, that in each case, the Accreted
Value shall be reduced in the event that, and to the extent that, the Company
makes the payments of accrued interest such that the Securities will not be
issued with “significant original issue discount” in accordance with, and in
the manner and amount described in, Section 2.13(b).

 

“Acquired Indebtedness”
means Indebtedness (i) of a Person or any of its Subsidiaries existing
at the time such Person becomes a Restricted Subsidiary or (ii) assumed in
connection with the acquisition of assets from such Person, in each case
whether or not Incurred by such Person in connection with, or in anticipation
or contemplation of, such Person becoming a Restricted Subsidiary of the
Company or such acquisition.  Acquired
Indebtedness shall be deemed to have been Incurred, with respect to clause (i)
of the preceding sentence, on the date such Person becomes a Restricted
Subsidiary and, with respect to clause (ii) of the preceding sentence, on the
date of consummation of such acquisition of assets.

 

“Additional
Assets” means:

 

(1)                                   any
property or assets (other than Indebtedness and Capital Stock) to be used by
the Company or its Restricted Subsidiary in a Related Business or any
improvement, maintenance, development, upgrade or repair, in each case, to the
extent such improvement, maintenance, development, upgrade or repair is
capitalized on the balance sheet of the Company, to any property or assets that
are used by the Company or its Restricted Subsidiary in a Related Business;

 

(2)                                   the
Capital Stock of a Person that becomes a Restricted Subsidiary of the Company
as a result of the acquisition of such Capital Stock by the Company or a
Restricted Subsidiary of the Company; or

 

(3)                                   Capital
Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary of the Company;

 

2

 

provided, however,
that, in the case of clauses (2) and (3), such Restricted Subsidiary is
primarily engaged in a Related Business.

 

“Additional
Interest” means any additional interest payable on the Initial Securities
pursuant to the terms of the Registration Rights Agreement, as such amount is
certified in writing to the Trustee by the Company.

 

“Affiliate”
of any specified Person means any other Person, directly or indirectly,
controlling or controlled by or under direct or indirect common control with
such specified Person. For the purposes of this definition, “control” when used
with respect to any Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.  For purposes of the provisions described in Sections
3.7 and 3.8 only, “Affiliate” shall also mean any beneficial owner
of shares representing 10% or more of the total voting power of the Voting
Stock (on a fully diluted basis) of the Company or of rights or warrants to
purchase such Voting Stock (whether or not currently exercisable) and any
Person who would be an Affiliate of any such beneficial owner pursuant to the
first sentence hereof.

 

“Asset
Disposition” means any direct or indirect sale, lease (other than an
operating lease entered into in the ordinary course of business), transfer,
issuance or other disposition, or a series of related sales, leases, transfers,
issuances or dispositions that are part of a common plan, of shares of Capital
Stock of a Subsidiary (other than directors’ qualifying shares or shares
required by applicable healthcare laws to be held by Persons other than the
Company), property or other assets (each referred to for the purposes of this
definition as a “disposition”) by the Company or any of its Restricted
Subsidiaries, including any disposition by means of a merger, consolidation or
similar transaction.

 

Notwithstanding the preceding, the following items shall not be deemed
to be Asset Dispositions:

 

(1)                                   a
disposition by a Restricted Subsidiary to the Company or by the Company or its
Restricted Subsidiary to a Restricted Subsidiary of the Company (other than a
Receivables Entity);

 

(2)                                   the
sale of Cash Equivalents in the ordinary course of business;

 

(3)                                   a
disposition of inventory and supplies in the ordinary course of business;

 

(4)                                   a
disposition of obsolete or worn out equipment or equipment that is no longer
useful in the conduct of the business of the Company and its Restricted
Subsidiaries and that is disposed of in each case in the ordinary course of
business;

 

(5)                                   transactions
permitted under Section 4.1;

 

3

 

(6)                                   an
issuance of Capital Stock by a Restricted Subsidiary of the Company to the
Company or to a Restricted Subsidiary of the Company (other than a Receivables
Entity);

 

(7)                                   for
purposes of Section 3.7 only, the making of a Permitted Investment or a
disposition subject to Section 3.4;

 

(8)                                   sales
of accounts receivable and related assets or an interest therein of the type
specified in the definition of “Qualified Receivables Transaction” to a
Receivables Entity;

 

(9)                                   dispositions
of assets with an aggregate fair market value, as determined conclusively by
senior management of the Company acting in good faith, in an amount not to
exceed $1.0 million in any calendar year (with unused amounts in any calendar
year being carried over to succeeding calendar years);

 

(10)                             dispositions
in connection with Permitted Liens;

 

(11)                             the
licensing or sublicensing of intellectual property or other general intangibles
and licenses, leases or subleases of other property in the ordinary course of
business which do not materially interfere with the business of the Company and
its Restricted Subsidiaries;

 

(12)                             dispositions
of receivables in connection with the compromise, settlement or collection
thereof in the ordinary course of business or in bankruptcy or similar proceedings
and exclusive of factoring or similar arrangements;

 

(13)                             the
disposition of any Capital Stock or other ownership interest in or assets or
property of an Unrestricted Subsidiary; and

 

(14)                             foreclosure
on assets.

 

“Average
Life” means, as of the date of determination, with respect to any
Indebtedness or Preferred Stock, the quotient obtained by dividing (1) the sum
of the products of the numbers of years from the date of determination to the
dates of each successive scheduled principal payment of such Indebtedness or
scheduled redemption or similar payment with respect to such Preferred Stock
multiplied by the amount of such payment by (2) the sum of all such payments.

 

“Bank Indebtedness” means any and all amounts, whether
outstanding on the Issue Date or Incurred after the Issue Date, payable by the
Company, MedQuest or any of its Subsidiaries under or in respect of the Senior
Credit Agreement and any related notes, collateral documents, letters of credit
and guarantees and any Interest Rate Agreement entered into in connection with
the Senior Credit Agreement, including principal, premium, if any, interest
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company or any of its Subsidiaries
at the rate specified therein whether or not a claim for post filing interest
is allowed in such proceedings), fees, charges,

 

4

 

expenses, reimbursement obligations,
guarantees and all other amounts payable thereunder or in respect thereof.

 

“Bankruptcy Law” means Title 11, United States Code or
any similar Federal or state law for the relief of debtors.

 

“Board
of Directors” means, as to any Person, the board of directors of
such Person or any duly authorized committee thereof.

 

“Business Day” means each day that is not a Saturday, Sunday or
other day on which banking institutions in New York, New York are authorized or
required by law to close.

 

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

 

“Capitalized
Lease Obligations” means an obligation that is required to be
classified and accounted for as a capitalized lease for financial reporting
purposes in accordance with GAAP, and the amount of Indebtedness represented by
such obligation will be the capitalized amount of such obligation at the time
any determination thereof is to be made as determined in accordance with GAAP,
and the Stated Maturity thereof will be the date of the last payment of rent or
any other amount due under such lease prior to the first date such lease may be
terminated without penalty.

 

“Cash Equivalents” means:

 

(1)                                   securities
issued or directly and fully guaranteed or insured by the United States
Government or any agency or instrumentality of the United States (provided that the full faith and credit of
the United States is pledged in support thereof), having maturities of not more
than one year from the date of acquisition;

 

(2)                                   marketable
general obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition of the United States (provided that the full faith and credit of
the United States is pledged in support thereof) and, at the time of acquisition,
having a credit rating of “A” or better from either Standard & Poor’s
Ratings Services or Moody’s Investors Service, Inc.;

 

(3)                                   certificates
of deposit, time deposits, eurodollar time deposits, overnight bank deposits or
bankers’ acceptances having maturities of not more than one year from the date
of acquisition thereof issued by any commercial bank the long-term debt of
which is rated at the time of acquisition thereof at least “A” or the
equivalent thereof by Standard & Poor’s Ratings Services, or “A” or the
equivalent thereof by Moody’s Investors Service, Inc., and having combined
capital and surplus in excess of $500 million;

 

5

 

(4)                                   repurchase
obligations with a term of not more than six months for underlying securities
of the types described in clauses (1), (2) and (3) entered into with any bank
meeting the qualifications specified in clause (3) above;

 

(5)                                   commercial
paper rated at the time of acquisition thereof at least “A-2” or the equivalent
thereof by Standard & Poor’s Ratings Services or “P-2” or the equivalent
thereof by Moody’s Investors Service, Inc., or carrying an equivalent rating by
a nationally recognized rating agency, if both of the two named rating agencies
cease publishing ratings of investments, and in any case maturing within one
year after the date of acquisition thereof; and

 

(6)                                   interests
in any investment company or money market fund which invests 95% or more of its
assets in instruments of the type specified in clauses (1) through (5) above.

 

“Change of
Control” means:

 

(1)                                   prior
to the first public offering of Common Stock of the Company or MedQuest, the
Permitted Holders cease to be the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of a majority in the
aggregate of the total voting power of the Voting Stock of the Company or
MedQuest, whether as a result of the issuance of securities of the Company or
MedQuest, any merger, consolidation, liquidation or dissolution of the Company
or MedQuest, any direct or indirect transfer of securities by any Permitted
Holder or otherwise (for purposes of this clause (1) and clause (2) below, the
Permitted Holders shall be deemed to beneficially own any Voting Stock of an
entity (the “specified entity”) held by any other entity (the “parent entity”)
so long as the Permitted Holders beneficially own (as so defined), directly or
indirectly, in the aggregate a majority of the voting power of the Voting Stock
of the parent entity); or

 

(2)                                   on
the date of or after the first public offering of Common Stock referred to in
clause (1), (A) any “person” or “group” of related persons (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more
Permitted Holders, is or becomes the beneficial owner (as defined in Rules
13d-3 and 13d-5 under the Exchange Act, except that such person or group shall
be deemed to have “beneficial ownership” of all shares that any such person or
group has the right to acquire, whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, of more than 35% of
the total voting power of the Voting Stock of the Company or MedQuest (or a
successor to either of such entities by merger, consolidation or purchase of
all or substantially all of its assets) (for the purposes of this clause, such
person or group shall be deemed to beneficially own any Voting Stock of the
Company or 

 

6

 

MedQuest held by a parent entity, if such person or group “beneficially
owns” (as defined above), directly or indirectly, more than 35% of the voting
power of the Voting Stock of such parent entity); and (B) the Permitted Holders
“beneficially own” (as defined in Rules 13d-3 and 13d-5 of the Exchange Act),
directly or indirectly, in the aggregate a lesser percentage of the total
voting power of the Voting Stock of the Company or MedQuest, as the case may
be, (or a successor to the relevant entity by merger, consolidation or purchase
of all or substantially all of its assets) than such other person or group and
do not have the right or ability by voting power, contract or otherwise to
elect or designate for election a majority of the Board of Directors of the
Company or MedQuest or such successor (for the purposes of this clause, such
other person or group shall be deemed to beneficially own any Voting Stock of a
specified entity held by a parent entity, if such other person or group
“beneficially owns” directly or indirectly, more than 35% of the voting power
of the Voting Stock of such parent entity and the Permitted Holders
“beneficially own” directly or indirectly, in the aggregate a lesser percentage
of the voting power of the Voting Stock of such parent entity and do not have
the right or ability by voting power, contract or otherwise to elect or
designate for election a majority of the Board of Directors of such parent
entity); or

 

(3)                                   the
first day on which a majority of the members of the Board of Directors of the
Company or MedQuest are not Continuing Directors; or

 

(4)                                   the
sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Company and its Restricted Subsidiaries
taken as a whole to any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) other than a Permitted Holder; or

 

(5)                                   the
adoption by the stockholders of the Company or MedQuest of a plan or proposal
for the liquidation or dissolution of the Company or MedQuest.

 

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

 

“Common
Stock” means with respect to any Person, any and all shares, interest or
other participations in, and other equivalents (however designated and whether
voting or nonvoting) of such Person’s common stock whether or not outstanding
on the Issue Date, and includes, without limitation, all series and classes of
such common stock.

 

“Consolidated Coverage
Ratio” means as of any date of determination, with respect to any
Person, the ratio of (x) the aggregate amount of Consolidated EBITDA of such
Person for the period of the most recent four consecutive fiscal quarters
ending prior to the date of such determination for which financial statements
are in existence to (y) Consolidated Interest Expense for such four fiscal
quarters, provided,
however,
that:

 

7

 

(1)            if such Person or
any Restricted Subsidiary of such Person:

 

(a)             has Incurred any
Indebtedness since the beginning of such period that remains outstanding on
such date of determination or if the transaction giving rise to the need to
calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness,
Consolidated EBITDA and Consolidated Interest Expense for such period will be
calculated after giving effect on a pro forma basis to such Indebtedness as if
such Indebtedness had been Incurred on the first day of such period (except
that in making such computation, the amount of Indebtedness under any revolving
credit facility outstanding on the date of such calculation will be deemed to
be (i) the average daily balance of such Indebtedness during such four fiscal
quarters or such shorter period for which such facility was outstanding or (ii)
if such facility was created after the end of such four fiscal quarters, the
average daily balance of such Indebtedness during the period from the date of
creation of such facility to the date of such calculation) and the discharge of
any other Indebtedness repaid, repurchased, defeased or otherwise discharged
with the proceeds of such new Indebtedness as if such discharge had occurred on
the first day of such period; or

 

(b)            has repaid,
repurchased, defeased or otherwise discharged any Indebtedness since the
beginning of the period that is no longer outstanding on such date of
determination or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio involves a discharge of Indebtedness (in each case
other than Indebtedness Incurred under any revolving credit facility unless
such Indebtedness has been permanently repaid and the related commitment
terminated), Consolidated EBITDA and Consolidated Interest Expense for such
period will be calculated after giving effect on a pro forma basis to such
discharge of such Indebtedness, including with the proceeds of such new
Indebtedness, as if such discharge had occurred on the first day of such
period;

 

(2)                                   if
since the beginning of such period such Person or any Restricted Subsidiary of
such Person will have disposed of any company, division, diagnostic imaging
center, operating unit, segment, business, group of related assets or line of
business or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio is such an Asset Disposition:

 

(a)             the Consolidated
EBITDA for such period will be reduced by an amount equal to the Consolidated
EBITDA (if positive) directly attributable to the assets which are the subject
of such Asset Disposition for such period or increased by an amount equal to
the Consolidated EBITDA (if negative) directly attributable thereto for such
period; and

 

8

 

(b)            Consolidated Interest
Expense for such period will be reduced by an amount equal to the Consolidated
Interest Expense directly attributable to any Indebtedness of such Person or
any Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged
with respect to such Person and its continuing Restricted Subsidiaries in
connection with such Asset Disposition for such period (or, if the Capital
Stock of any Restricted Subsidiary is sold, the Consolidated Interest Expense
for such period directly attributable to the Indebtedness of such Restricted
Subsidiary to the extent such Person and its continuing Restricted Subsidiaries
are no longer liable for such Indebtedness after such sale);

 

(3)                                   if
since the beginning of such period such Person or any Restricted Subsidiary of
such Person (by merger or otherwise) will have made an Investment in any
Restricted Subsidiary (or another Person which becomes a Restricted Subsidiary
or is merged with or into such Person) or an acquisition of assets, including
any acquisition of assets occurring in connection with a transaction causing a
calculation to be made hereunder, which constitutes all or substantially all of
any company, division, diagnostic imaging center, operating unit, segment,
business, group of related assets or line of business, Consolidated EBITDA and
Consolidated Interest Expense for such period will be calculated after giving
pro forma effect thereto (including the Incurrence of any Indebtedness) as if
such Investment or acquisition occurred on the first day of such period; and

 

(4)                                   if
since the beginning of such period another Person (that subsequently became a
Restricted Subsidiary or was merged with or into such Person or any of its
Restricted Subsidiaries since the beginning of such period) will have Incurred
any Indebtedness or discharged any Indebtedness, made any Asset Disposition or
any Investment or acquisition of assets that would have required an adjustment
pursuant to clause (2) or (3) above if made by such Person or its Restricted
Subsidiary during such period, Consolidated EBITDA and Consolidated Interest
Expense for such period will be calculated after giving pro forma effect
thereto as if such Incurrence, discharge, Asset Disposition or Investment or
acquisition of assets occurred on the first day of such period.

 

For purposes
of this definition, whenever pro forma effect is to be given to any calculation
under this definition, the pro forma calculations will be determined in good
faith by a responsible financial or accounting officer of such Person.  Any such pro forma calculations may include
operating expense reductions for such period resulting from the acquisition
which is being given pro forma effect that (a) would be permitted pursuant to
Article 11 of Regulation S-X under the Securities Act or (b) have been realized
or for which the steps necessary for realization have been taken or are
reasonably expected to be taken within six months following any such
acquisition, including, but not limited to, the execution or termination of any
contracts, the termination of any personnel or the closing (or approval by the
Board of Directors of any closing) of any diagnostic imaging center or
facility, as applicable, provided
that such

 

9

 

adjustments are set forth in an Officers’
Certificate signed by such Person’s Chief Financial Officer and another Officer
which states (i) the amount of such adjustment or adjustments, (ii) that such
adjustment or adjustments are based on the reasonable good faith beliefs of the
Officers executing such Officers’ Certificate at the time of such execution and
(iii) that any related Incurrence of Indebtedness is permitted pursuant to this
Indenture.  If any Indebtedness bears a
floating rate of interest and is being given pro forma effect, the interest
expense on such Indebtedness will be calculated as if the rate in effect on the
date of determination had been the applicable rate for the entire period
(taking into account any Interest Rate Agreement applicable to such
Indebtedness if such Interest Rate Agreement has a remaining term in excess of
12 months).  If any Indebtedness that is
being given pro forma effect bears an interest rate at the option of such
Person, the interest rate shall be calculated by applying such optional rate
chosen by such Person.

 

“Consolidated EBITDA”
means, with respect to any Person, for any period, without duplication,
the Consolidated Net Income for such period, plus the following to the extent
deducted in calculating such Consolidated Net Income:

 

(1)            Consolidated
Interest Expense;

 

(2)            Consolidated
Income Taxes;

 

(3)            consolidated
depreciation expense;

 

(4)            consolidated
amortization of goodwill and other intangibles;

 

(5)                                   impairment
charges recorded in connection with the application of Financial Accounting
Standards No. 142 “Goodwill and Other Intangibles;” and

 

(6)                                   other
non-cash charges reducing Consolidated Net Income (excluding any such non-cash
charge to the extent it represents an accrual of or reserve for cash charges in
any future period or amortization of a prepaid cash expense that was paid in a
prior period not included in the calculation).

 

Notwithstanding the preceding sentence, clauses (2) through (6)
relating to amounts of a Restricted Subsidiary of a Person will be added to
Consolidated Net Income to compute Consolidated EBITDA of such Person only to
the extent (and in the same proportion) that the net income (loss) of such
Restricted Subsidiary was included in calculating the Consolidated Net Income
of such Person and, to the extent the amounts set forth in clauses (2) through
(6) are in excess of those necessary to offset a net loss of such Restricted
Subsidiary or if such Restricted Subsidiary has net income for such period
included in Consolidated Net Income, only if a corresponding amount would be
permitted at the date of determination to be dividended to such Person by such
Restricted Subsidiary without prior approval (that has not been obtained),
pursuant to the terms of its charter and all agreements, instruments,
judgments, decrees, orders, statutes, rules and governmental regulations
applicable to that Restricted Subsidiary or its stockholders.

 

10

 

“Consolidated Income
Taxes” means, with respect to any Person for any period, taxes
imposed upon such Person or other payments required to be made by such Person
by any governmental authority which taxes or other payments are calculated by
reference to the income or profits of such Person or such Person and its
Restricted Subsidiaries (to the extent such income or profits were included in
computing Consolidated Net Income for such period), regardless of whether such
taxes or payments are required to be remitted to any governmental authority.

 

“Consolidated Interest
Expense” means, with respect to any Person, for any period, without
duplication, the total interest expense of such Person and its consolidated
Restricted Subsidiaries, whether paid or accrued, plus, to the extent not
included in such interest expense:

 

(1)                                   interest
expense attributable to Capitalized Lease Obligations, determined as if such
lease were a capitalized lease in accordance with GAAP and the interest
component of any deferred payment obligations;

 

(2)                                   amortization
of debt discount and debt issuance cost (provided
that any amortization of bond premium will be credited to reduce Consolidated
Interest Expense unless, pursuant to GAAP, such amortization of bond premium
has otherwise reduced Consolidated Interest Expense);

 

(3)                                   non-cash
interest expense;

 

(4)                                   commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing;

 

(5)                                   the
interest expense on Indebtedness of another Person that is Guaranteed by such
Person or one of its Restricted Subsidiaries or secured by a Lien on assets of
such Person or one of its Restricted Subsidiaries;

 

(6)                                   net
costs associated with Hedging Obligations (including amortization of fees), provided, however,
that if Hedging Obligations result in net benefits rather than costs, such
benefits shall be credited to reduce Consolidated Interest Expense unless,
pursuant to GAAP, such net benefits are otherwise reflected in Consolidated Net
Income;

 

(7)                                   the
consolidated interest expense of such Person and its Restricted Subsidiaries
that was capitalized during such period;

 

(8)                                   all
dividends paid or declared to be paid in cash, Cash Equivalents or Indebtedness
on any series of Disqualified Stock of the Company or on Preferred Stock of its
Restricted Subsidiaries that are not Subsidiary Guarantors payable to a party
other than such Person or a Wholly Owned Subsidiary;

 

(9)                                   the
cash contributions to any employee stock ownership plan or similar trust to the
extent such contributions are used by such plan or trust to pay

 

11

 

interest or fees to another Person (other than such Person) in
connection with Indebtedness Incurred by such plan or trust; provided,
however,
that there will be excluded therefrom any such interest expense of any
Unrestricted Subsidiary to the extent the related Indebtedness is not Guaranteed
or paid by such Person or any Restricted Subsidiary of such Person; and

 

(10)                             Receivables
Fees.

 

For purposes of the foregoing, total interest expense will be
determined after giving effect to any net payments made or received by such
Person and its Subsidiaries with respect to Interest Rate Agreements.  Notwithstanding anything to the contrary
contained herein, commissions, discounts, yield and other fees and charges
Incurred in connection with any transaction pursuant to which such Person or
any of its Subsidiaries may sell, convey or otherwise transfer or grant a
security interest in any accounts receivable or related assets shall be
included in Consolidated Interest Expense.

 

“Consolidated
Net Income” means, with respect to any Person, for any period, the
net income (loss) of such Person and its consolidated Restricted Subsidiaries
determined in accordance with GAAP; provided, however, that there will not be
included in such Consolidated Net Income:

 

(1)                                   any
net income (loss) of another Person (other than such Person) if such other
Person is not a Restricted Subsidiary, except that:

 

(a)             subject to the
limitations contained in clauses (3), (4) and (5) below, such Person’s equity
in the net income of any such other Person for such period will be included in
such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such other Person during such period to such Person or one of
its Restricted Subsidiaries as a dividend or other distribution (subject, in
the case of a dividend or other distribution to a Restricted Subsidiary, to the
limitations contained in clause (2) below); and

 

(b)            such Person’s equity
in a net loss of any such other Person (other than an Unrestricted Subsidiary)
for such period will be included in determining such Consolidated Net Income to
the extent such loss has been funded with cash from such Person or a Restricted
Subsidiary;

 

(2)                                   any
net income (but not loss) of any Restricted Subsidiary of such Person if such
Subsidiary is subject to restrictions, directly or indirectly, on the payment
of dividends or the making of distributions by such Restricted Subsidiary,
directly or indirectly, to such Person (other than as permitted under Section
3.6), except that:

 

(a)             subject to the
limitations contained in clauses (3), (4) and (5) below, such Person’s equity
in the net income of any such Restricted Subsidiary for such period will be
included in such Consolidated Net 

 

12

 

Income up to the aggregate amount of cash
that could have been distributed by such Restricted Subsidiary during such
period to such Person or another Restricted Subsidiary as a dividend (subject,
in the case of a dividend to another Restricted Subsidiary, to the limitation
contained in this clause); and

 

(b)            such Person’s equity
in a net loss of any such Restricted Subsidiary for such period will be
included in determining such Consolidated Net Income;

 

(3)                                   any
gain (loss) realized upon the sale or other disposition of any property, plant
or equipment of such Person or its consolidated Restricted Subsidiaries
(including pursuant to any Sale/Leaseback Transaction) which is not sold or
otherwise disposed of in the ordinary course of business and any gain (loss)
realized upon the sale or other disposition of any Capital Stock of another
Person;

 

(4)            any
extraordinary gain or loss; and

 

(5)            the
cumulative effect of a change in accounting principles.

 

“Continuing Directors”
means, as of any date of determination, any member of the Board of
Directors of the Company or MedQuest, as the case may be, who (1) was a member
of such Board of Directors on the date of this Indenture; (2) was nominated for
election or elected to such Board of Directors with the approval of a majority
of the Continuing Directors who were members of the Board of Directors at the
time of such nomination or election; or (3) was elected to such Board of
Directors in accordance with the terms of the Stockholders’ Agreement.

 

“Currency Agreement” means
in respect of a Person any foreign exchange contract, currency swap agreement
or other similar agreement as to which such Person is a party or a beneficiary.

 

“Custodian”
means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law.

 

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

 

“Definitive
Securities” means certificated Securities.

 

“Disqualified
Stock” means, with respect to any Person, any Capital Stock of such
Person which by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable) or upon the happening of any
event:

 

(1)                                   matures
or is mandatorily redeemable pursuant to a sinking fund obligation or
otherwise;

 

13

 

(2)                                   is
convertible or exchangeable for Indebtedness or Disqualified Stock (excluding
Capital Stock which is convertible or exchangeable solely at the option of the
Company or its Restricted Subsidiary); or

 

(3)                                   is
redeemable at the option of the holder of the Capital Stock thereof, in whole
or in part,

 

in each case on or prior to the date that is 91 days after the earlier
of the date (a) of the Stated Maturity of the Securities or (b) on which there
are no Securities outstanding, provided that only the portion of Capital
Stock which so matures or is mandatorily redeemable, is so convertible or
exchangeable or is so redeemable at the option of the holder thereof prior to
such date will be deemed to be Disqualified Stock; provided, further, that any
Capital Stock that would constitute Disqualified Stock solely because the
holders thereof have the right to require the Company to repurchase such
Capital Stock upon the occurrence of a change of control or asset sale (each
defined in a substantially identical manner to the corresponding definitions in
this Indenture) shall not constitute Disqualified Stock if the terms of such
Capital Stock (and all such securities into which it is convertible or for
which it is ratable or exchangeable) provide that the Company may not
repurchase or redeem any such Capital Stock (and all such securities into which
it is convertible or for which it is ratable or exchangeable) pursuant to such
provision prior to compliance by the Company with Sections 3.7 and 3.9
and such repurchase or redemption complies with Section 3.4.

 

“Domestic Restricted Subsidiary” means a Restricted Subsidiary
of the Company organized and existing under the laws of the United States of
America, any state of the United States of America or the District of Columbia.

 

“DTC”
means The Depository Trust Company, its nominees and their respective
successors and assigns, or such other depository institution hereinafter
appointed by the Company.

 

“Equity Offering” means
any public or private offering for cash by the Company or MedQuest, as the case
may be, of its common stock, or options, warrants or rights with respect to its
common stock (other than a registered offering on Form S-4 or S-8).

 

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

 

“Exchange
Offer” shall have the meaning set forth in the Registration Rights
Agreement.

 

“Excluded Contribution” means Net Cash Proceeds received by the
Company (with respect to a Restricted Payment by the Company) or by MedQuest (with
respect to a Restricted Payment by MedQuest) from (a) contributions to its
common equity capital and (b) the sale (other than to a Subsidiary of the
Company or to any Company or Subsidiary management equity plan or stock option
plan or any other management or employee benefit plan or agreement) of Capital
Stock (other than Disqualified Stock) of the Company (with respect to a
Restricted Payment by the Company) or of MedQuest (with respect to a Restricted
Payment by MedQuest), in each case designated as Excluded Contributions
pursuant to an Officers’ Certificate executed on the date such capital
contributions are made or the date such Capital

 

14

 

Stock is sold, as the case may be, which are
excluded from the calculation set forth in clause (c)(ii) of Section 3.4(a).

 

“Existing Management Stockholders” means each of Gene Venesky,
J.K. (Ken) Luke, Thomas C. Gentry, Daniel J. Schaefer and Michael A. Villa.

 

“fair
market value” means the price that could be negotiated in an arm’s-length
free market transaction, for cash, between a willing seller and a willing and
able buyer, neither of whom is under undue pressure or compulsion to complete
the transaction.  Unless otherwise
expressly required in this Indenture, fair market value shall be determined
conclusively by the Board of Directors of the Company acting reasonably and in
good faith.

 

“GAAP”
means generally accepted accounting principles in the United States of
America as in effect as of the Issue Date, including those set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as approved by a significant segment of the accounting
profession.  All ratios and computations
based on GAAP contained in this Indenture will be computed in conformity with
GAAP.

 

“Guarantee”
means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and any
obligation, direct or indirect, contingent or otherwise, of such Person:

 

(1)                                   to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness of such other Person (whether arising by virtue of
partnership arrangements, or by agreement to keep-well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise); or

 

(2)                                   entered
into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part);

 

provided, however,
that the term “Guarantee” will not include endorsements for collection or
deposit in the ordinary course of business. The term “Guarantee” used as a verb
has a corresponding meaning.

 

“Guarantor” means any Person that Guarantees the Securities; provided that, upon the release or
discharge of such Person from its Notes Guarantee in accordance with the terms
hereof (including the terms of any supplemental indenture hereto constituting a
Notes Guarantee), such Person shall cease to be a Guarantor.

 

“Guarantor Subordinated Obligation” means, with respect to a
Guarantor, any Indebtedness of such Guarantor (whether outstanding on the Issue
Date or thereafter Incurred) which is expressly subordinate in right of payment
to the obligations of such Guarantor under its Notes Guarantee pursuant to a written
agreement.

 

15

 

“Hedging
Obligations” of any Person means the obligations of such Person
pursuant to any Interest Rate Agreement or Currency Agreement.

 

“Incur”
means issue, create, assume, Guarantee, incur or otherwise become liable
for; provided,
however, that any Indebtedness or Capital Stock of a Person existing
at the time such Person becomes a Restricted Subsidiary (whether by merger,
consolidation, acquisition or otherwise) will be deemed to be Incurred by such
Restricted Subsidiary at the time it becomes a Restricted Subsidiary; and the
terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.

 

“Indebtedness”
means, with respect to any Person on any date of determination (without
duplication):

 

(1)                                   the
principal of and premium (if any) in respect of indebtedness of such Person for
borrowed money;

 

(2)                                   the
principal of and premium (if any) in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;

 

(3)                                   the
principal component of all obligations of such Person in respect of letters of
credit, bankers’ acceptances or other similar instruments (including
reimbursement obligations with respect thereto except to the extent such
reimbursement obligation relates to a trade payable and such obligation is
satisfied within 30 days of Incurrence);

 

(4)                                   the
principal component of all obligations of such Person to pay the deferred and
unpaid purchase price of property (except trade payables and healthcare fees
owed to physicians), which purchase price is due more than six months after the
date of placing such property in service or taking delivery and title thereto;

 

(5)                                   Capitalized
Lease Obligations of such Person;

 

(6)                                   the
principal component or liquidation preference of all obligations of such Person
with respect to the redemption, repayment or other repurchase of any
Disqualified Stock or, with respect to any Subsidiary that is not a Subsidiary
Guarantor, any Preferred Stock (but excluding, in each case, any accrued
dividends);

 

(7)                                   the
principal component of all Indebtedness of other Persons secured by a Lien on
any asset of such Person, whether or not such Indebtedness is assumed by such
Person; provided,
however, that the amount of such Indebtedness will be the lesser of
(a) the fair market value of such asset at such date of determination and (b)
the amount of such Indebtedness of such other Persons;

 

(8)                                   the
principal component of Indebtedness of other Persons to the extent Guaranteed
by such Person;

 

16

 

(9)                                   to
the extent not otherwise included in this definition, net obligations of such
Person under Currency Agreements and Interest Rate Agreements (the amount of
any such obligations to be equal at any time to the termination value of such
agreement or arrangement giving rise to such obligation that would be payable
by such Person at such time); and

 

(10)                             to
the extent not otherwise included, the amount then outstanding (i.e., advanced,
and received by, and available for use by such Person) under any receivables
financing (as set forth in the books and records of such Person and confirmed
by the agent, trustee or other representative of the institution or group
providing such receivables financing).

 

Notwithstanding the foregoing, “Indebtedness” shall not include
unsecured indebtedness of such Person and its Restricted Subsidiaries Incurred
to finance insurance premiums in a principal amount not in excess of the
insurance premiums to be paid by such Person and its Restricted Subsidiaries
for a three-year period beginning on the date of Incurrence of any such
Indebtedness.

 

The amount of
Indebtedness of any Person at any date will be the outstanding balance at such
date of all unconditional obligations as described above and the maximum
liability, upon the occurrence of the contingency giving rise to the
obligation, of any contingent obligations at such date.

 

In addition,
“Indebtedness” of any Person shall include Indebtedness described in the preceding
paragraph that would not appear as a liability on the balance sheet of such
Person if:

 

(1)                                   such
Indebtedness is the obligation of a partnership or joint venture that is not a
Restricted Subsidiary (a “Joint Venture”);

 

(2)                                   such
Person or a Restricted Subsidiary of such Person is a general partner of the
Joint Venture (a “General Partner”); and

 

(3)                                   there
is recourse, by contract or operation of law, with respect to the payment of
such Indebtedness to property or assets of such Person or a Restricted
Subsidiary of such Person; and then such Indebtedness shall be included in an
amount not to exceed:

 

(a)             the lesser of (i) the
net assets of the General Partner and (ii) the amount of such obligations to
the extent that there is recourse, by contract or operation of law, to the
property or assets of such Person or a Restricted Subsidiary of such Person; or

 

(b)            if less than the
amount determined pursuant to clause (a) immediately above, the actual amount
of such Indebtedness that is recourse to such Person or a Restricted Subsidiary
of such Person, if the Indebtedness is evidenced by a writing and is for a
determinable amount and the related interest expense shall be included in
Consolidated Interest

 

17

 

Expense to the extent actually paid by the
Company or its Restricted Subsidiaries.

 

“Indenture”
means this Indenture, as amended or supplemented from time to time.

 

“Initial
Securities” has the meaning ascribed to it in the second introductory
paragraph of this Indenture.

 

“Intangible Assets” means goodwill, patents, trademarks and
other intangibles as determined in accordance with GAAP.

 

“Interest Rate Agreement” means, with respect to any Person, any
interest rate protection agreement, interest rate future agreement, interest
rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement or
other similar agreement or arrangement as to which such Person is party or a
beneficiary.

 

“Investment”
means, with respect to any Person, all investments by such Person in
other Persons (including Affiliates) in the form of any direct or indirect
advance, loan (other than advances or extensions of credit to customers in the
ordinary course of business) or other extension of credit (including by way of
Guarantee or similar arrangement, but excluding any debt or extension of credit
represented by a bank deposit other than a time deposit) or capital
contribution to (by means of any transfer of cash or other property to others
or any payment for property or services for the account or use of others), or
any purchase or acquisition of Capital Stock, Indebtedness or other similar
instruments issued by, such Person and all other items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP; provided
that none of the following will be deemed to be an Investment:

 

(1)                                   Hedging
Obligations entered into in the ordinary course of business and in compliance
with this Indenture;

 

(2)                                   endorsements
of negotiable instruments and documents in the ordinary course of business; and

 

(3)                                   an
acquisition of assets, Capital Stock or other securities by the Company or a
Subsidiary of the Company for consideration to the extent such consideration
consists of Common Stock of the Company or MedQuest.

 

For purposes
of Section 3.4:

 

(1)                                   “Investment”
will include the portion (proportionate to the Company’s equity interest in a
Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of the
fair market value of the net assets of such Restricted Subsidiary of the
Company at the time that such Restricted Subsidiary is designated an
Unrestricted Subsidiary; provided, however, that upon a
redesignation of such Subsidiary as a Restricted Subsidiary, the Company will
be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive)

 

18

 

equal to (a) the Company’s “Investment” in such Subsidiary at the time
of such redesignation less (b) the portion (proportionate to the Company’s
equity interest in such Subsidiary) of the fair market value of the net assets
(as conclusively determined by the Board of Directors of the Company in good
faith) of such Subsidiary at the time that such Subsidiary is so re-designated
a Restricted Subsidiary; and

 

(2)                                   any
property transferred to or from an Unrestricted Subsidiary will be valued at
its fair market value at the time of such transfer, in each case as determined
in good faith by the Board of Directors of the Company.  If the Company or any Restricted Subsidiary
of the Company sells or otherwise disposes of any Voting Stock of any
Restricted Subsidiary of the Company such that, after giving effect to any such
sale or disposition, such entity is no longer a Subsidiary of the Company, the
Company shall be deemed to have made an Investment on the date of any such sale
or disposition equal to the fair market value (as conclusively determined in
good faith by (a) the senior management of the Company if the amount thereof is
less than $2.0 million and (b) the Board of Directors of the Company if in
excess thereof) of the Capital Stock of such Subsidiary not sold or disposed
of.

 

“Issue Date”
means the date on which the Initial Securities are originally issued.

 

“Lien” means
any mortgage, pledge, security interest, encumbrance, lien or charge of any
kind (including any conditional sale or other title retention agreement or
lease in the nature thereof).

 

“MedQuest”
means MedQuest, Inc., a Delaware corporation, and its successors.

 

“Net
Available Cash” from an Asset Disposition means cash payments
received (including any cash payments received by way of deferred payment of
principal pursuant to a note or installment receivable or otherwise and net
proceeds from the sale or other disposition of any securities received as
consideration, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring person of
Indebtedness or other obligations relating to the properties or assets that are
the subject of such Asset Disposition or received in any other non-cash form)
therefrom, in each case net of:

 

(1)                                   all
legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses Incurred, and all Federal, state,
provincial, foreign and local taxes required to be paid or accrued as a
liability under GAAP (after taking into account any available tax credits or
deductions and any tax sharing agreements), as a consequence of such Asset
Disposition;

 

(2)                                   all
payments made on any Indebtedness which is secured by any assets subject to
such Asset Disposition, in accordance with the terms of any Lien upon such
assets, or which must by its terms, or in order to obtain a 

 

19

 

necessary consent to such Asset Disposition, or by applicable law be
repaid out of the proceeds from such Asset Disposition;

 

(3)                                   all
distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures as a result of such Asset
Disposition; and

 

(4)                                   the
deduction of appropriate amounts to be provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the assets
disposed of in such Asset Disposition and retained by the Company or any of its
Restricted Subsidiaries after such Asset Disposition.

 

“Net Cash Proceeds”
means, with respect to any issuance or sale of Capital Stock, the cash
proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees,
underwriters’ or placement agents’ fees, listing fees, discounts or commissions
and brokerage, consultant and other fees and charges actually Incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result of such issuance or sale (after taking into account any available tax
credit or deductions and any tax sharing arrangements).

 

“Non-Recourse
Debt” means Indebtedness of a Person:

 

(1)                                   as
to which neither the Company nor any of its Restricted Subsidiaries (a)
provides any Guarantee or credit support of any kind (including any
undertaking, guarantee, indemnity, agreement or instrument that would
constitute Indebtedness) or (b) is directly or indirectly liable (as a
guarantor or otherwise);

 

(2)                                   no
default with respect to which (including any rights that the holders thereof
may have to take enforcement action against an Unrestricted Subsidiary) would
permit (upon notice, lapse of time or both) any holder of any other
Indebtedness of the Company or any of its Restricted Subsidiaries to declare a
default under such other Indebtedness or cause the payment thereof to be
accelerated or payable prior to its stated maturity; and

 

(3)                                   the
explicit terms of which provide there is no recourse against any of the assets
of the Company or its Restricted Subsidiaries (other than recourse against a
pledge of the Capital Stock of such Person to the extent such Capital Stock
constitutes an asset of the Company or any of its Restricted Subsidiaries).

 

“Non-U.S.
Person” means a person who is not a U.S. person, as defined in Regulation
S.

 

“Notes
Guarantee” means, individually, any Guarantee of payment of the Securities
by a Subsidiary Guarantor pursuant to the terms of this Indenture and any

 

20

 

supplemental indenture thereto, and,
collectively, all such Guarantees.  Each
such Notes Guarantee will be in the form prescribed by this Indenture.

 

“Note
Register” means the register of Securities, maintained by the Trustee,
pursuant to Section 2.3.

 

“Offering
Memorandum” means the offering memorandum, dated August 19, 2004, relating
to the offering by the Company of $136.0 million aggregate principal amount at maturity of the 121⁄4% Senior Discount Notes due 2012.

 

“Officer”
means the Chairman of the Board, the Chief Executive Officer, the
President, the Chief Financial Officer, any Vice President, the Treasurer or
the Secretary of the Company.  The term
Officer of any Guarantor has a correlative meaning.

 

“Officers’ Certificate”
means a certificate signed by two Officers or by an Officer and either
an Assistant Treasurer or an Assistant Secretary of the Company.

 

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

 

“Permitted Holders” means each of J.P. Morgan Partners, LLC, the
Existing Management Stockholders and each of their respective Affiliates and
Related Persons.

 

“Permitted
Investment” means an Investment by the Company or any of its
Restricted Subsidiaries in:

 

(1)                                   a
Restricted Subsidiary of the Company (other than a Receivables Entity) or a
Person which will, upon the making of such Investment, become a Restricted
Subsidiary of the Company (other than a Receivables Entity); provided,
however, that the primary business of such Restricted Subsidiary is
a Related Business;

 

(2)                                   another
Person if as a result of such Investment such other Person is merged or
consolidated with or into, or transfers or conveys all or substantially all its
assets to, the Company or a Restricted Subsidiary of the Company (other than a
Receivables Entity); provided, however, that such Person’s
primary business is a Related Business;

 

(3)                                   cash
and Cash Equivalents;

 

(4)                                   receivables
owing to the Company or any Restricted Subsidiary of the Company created or
acquired, and other extensions of trade credit and other advances to customers
and suppliers, in each case, made in the ordinary course of business and
payable or dischargeable in accordance with customary trade terms (including,
without limitation, receivables owing to the Company or any Restricted
Subsidiary of the Company by physicians on account of prior advances made by
the Company); provided,

 

21

 

however, that such trade terms may include
such concessionary trade terms as the Company or any such Restricted Subsidiary
deems reasonable under the circumstances;

 

(5)                                   pledges,
deposits and similar arrangements with respect to leases and utilities in the
ordinary course of business;

 

(6)                                   payroll,
travel and similar advances or loans to cover matters that are expected at the
time of such advances ultimately to be treated as expenses for accounting
purposes and that are made in the ordinary course of business;

 

(7)                                   loans
or advances to officers, directors, consultants and employees made (a) in the
ordinary course of business of the Company or such Restricted Subsidiary and
not exceeding $3.0 million at any one time outstanding and (b) to fund
purchases of stock under the stock option plan of the Company and any similar
stock ownership plans or under employment arrangements;

 

(8)                                   Capital
Stock, obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any of its Restricted
Subsidiaries or in satisfaction of judgments or pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of a
debtor;

 

(9)                                   Investments
made as a result of the receipt of non-cash consideration from an Asset
Disposition that was made pursuant to and in compliance with Section 3.7;

 

(10)                             Investments
in existence on the Issue Date;

 

(11)                             Currency
Agreements, Interest Rate Agreements and related Hedging Obligations, which
transactions or obligations are Incurred in compliance with Section 3.3;

 

(12)                             Investments
by the Company or any of its Restricted Subsidiaries, together with all other
Investments pursuant to this clause (12), in an aggregate amount at the time of
such Investment not to exceed $10.0 million outstanding at any one time;

 

(13)                             Guarantees
issued in accordance with Section 3.3;

 

(14)                             Investments
by the Company or its Restricted Subsidiary in a Receivables Entity or any
Investment by a Receivables Entity in any other Person, in each case, in
connection with a Qualified Receivables Transaction, provided, however, that any
Investment in any such Person is in the form of a Purchase Money Note, or any
equity interest or interests in accounts receivable and related assets
generated by the Company or its Restricted

 

22

 

Subsidiary and transferred to any Person in connection with a Qualified
Receivables Transaction or any such Person owning such accounts receivable;

 

(15)                             Investments
of a Person or any of its Subsidiaries existing at the time such Person becomes
a Restricted Subsidiary of the Company or at the time such Person merges or
consolidates with the Company or any of its Restricted Subsidiaries, in either
case in compliance with this Indenture, provided
that such Investments were not made by such Person in connection with, or in
anticipation or contemplation of, such Person becoming a Restricted Subsidiary
of the Company or such merger or consolidation;

 

(16)                             Investments
in Unrestricted Subsidiaries not to exceed $5.0 million since the Issue Date,
plus (a) the aggregate net after-tax amount returned since the Issue Date to
the Company or any of its Restricted Subsidiaries in cash on or with respect to
any Investments made since the Issue Date in Unrestricted Subsidiaries whether
through interest payments, principal payments, dividends or other distributions
or payments (including such dividends, distributions or payments made
concurrently with such Investment), (b) the net after-tax cash proceeds
received since the Issue Date by the Company or any of its Restricted
Subsidiaries from the disposition of all or any portion of such Investments
(other than to the Company or a Subsidiary of the Company) and (c) upon
redesignation since the Issue Date of an Unrestricted Subsidiary as a
Restricted Subsidiary of the Company, the portion (proportionate to the
Company’s equity interest in such Subsidiary) of the fair market value of the net
assets (as conclusively determined by the Board of Directors of the Company in
good faith) of such Subsidiary at the time that such Subsidiary is so
re-designated a Restricted Subsidiary; and

 

(17)                             Investments
by the Company or any of its Restricted Subsidiaries in a Permitted Joint
Venture, together with all other Investments pursuant to this clause (17) in an
aggregate amount at the time of such Investment not to exceed $2.5 million
outstanding at any one time, so long as (a) such Permitted Joint Venture does
not have any Indebtedness for borrowed money at any time on or after the date
of such Investment (other than Indebtedness owing to the equity holders of such
Permitted Joint Venture, the Company or any Restricted Subsidiary of the
Company), (b) the documentation governing such Permitted Joint Venture does not
contain a restriction on distributions to the Company or its Restricted
Subsidiaries, (c) such Permitted Joint Venture is engaged only in a Related
Business and (d) after giving pro forma effect to such Investment, (x) with
respect to any such Investment made by the Company, the Company would be
permitted to Incur $1.00 of additional Indebtedness under the first paragraph
of Section 3.3 and (y) with respect to any such Investment made by
MedQuest or any Subsidiary that Guarantees the Senior Subordinated

 

23

 

Notes, MedQuest would be permitted to Incur $1.00 of additional
Indebtedness under the first paragraph of Section 3.3.

 

“Permitted Joint Venture” means, with respect to any Person, (1)
any corporation, association, or other business entity (other than a
partnership) of which 50% or less of the total voting power of shares of
Capital Stock entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees thereof is at the time
of determination owned or controlled, directly or indirectly, by such Person or
one or more of the Restricted Subsidiaries of that Person or a combination
thereof and (2) any partnership, joint venture, limited liability company or
similar entity of which 50% or less of the capital accounts, distribution
rights, total equity and voting interests or general or limited partnership
interests, as applicable, are owned or controlled, directly or indirectly, by
such Person or one or more of the other Restricted Subsidiaries of that Person
or a combination thereof whether in the form of membership, general, special or
limited partnership interests or otherwise.

 

“Permitted
Liens” means, with respect to any Person:

 

(1)                                   Liens
securing Indebtedness and other obligations of the Company under the Senior
Credit Agreement and related Interest Rate Agreements and Liens on assets of
Restricted Subsidiaries securing Guarantees of Indebtedness and other
obligations of the Company under the Senior Credit Agreement and other
Indebtedness of a Guarantor (other than Guarantor Subordinated Obligations)
permitted to be Incurred under this Indenture;

 

(2)                                   pledges
or deposits by such Person under workmen’s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection
with bids, tenders, contracts (other than for the payment of Indebtedness) or
leases to which such Person is a party, or deposits to secure public or
statutory obligations of such Person or deposits of cash or United States
government bonds to secure surety or appeal bonds to which such Person is a
party, or deposits as security for contested taxes or import or customs duties
or for the payment of rent, in each case Incurred in the ordinary course of
business;

 

(3)                                   Liens
imposed by law, including carriers’, warehousemen’s and mechanics’ Liens, in
each case for sums not yet due or being contested in good faith by appropriate
proceedings if a reserve or other appropriate provisions, if any, as shall be
required by GAAP shall have been made in respect thereof;

 

(4)                                   Liens
for taxes, assessments or other governmental charges not yet subject to
penalties for non-payment or which are being contested in good faith by
appropriate proceedings; provided
that appropriate reserves required pursuant to GAAP have been made in respect
thereof;

 

24

 

(5)                                   Liens
in favor of issuers of surety or performance bonds or letters of credit or
bankers’ acceptances issued pursuant to the request of and for the account of
such Person in the ordinary course of its business; provided, however,
that such letters of credit do not constitute Indebtedness;

 

(6)                                   encumbrances,
easements or reservations of, or rights of others for, licenses, rights of way,
sewers, electric lines, telegraph and telephone lines and other similar
purposes, or zoning or other restrictions as to the use of real properties or
liens incidental to the conduct of the business of such Person or to the
ownership of its properties which do not in the aggregate materially adversely
affect the value of said properties or materially impair their use in the
operation of the business of such Person;

 

(7)                                   Liens
securing Hedging Obligations so long as the related Indebtedness is, and is
permitted to be under this Indenture, secured by a Lien on the same property
securing such Hedging Obligation;

 

(8)                                   leases,
licenses, subleases and sublicenses of assets (including, without limitation,
real property and intellectual property rights) which do not materially
interfere with the ordinary conduct of the business of the Company or any of
its Restricted Subsidiaries;

 

(9)                                   judgment
Liens not giving rise to an Event of Default so long as such Lien is adequately
bonded and any appropriate legal proceedings which may have been duly initiated
for the review of such judgment have not been finally terminated or the period
within which such proceedings may be initiated has not expired;

 

(10)                           Liens
for the purpose of securing the payment of all or a part of the purchase price
of, or Capitalized Lease Obligations with respect to, assets or property
acquired or constructed in the ordinary course of business, provided
that:

 

(a)             the aggregate principal
amount of Indebtedness secured by such Liens is otherwise permitted to be
Incurred under this Indenture and does not exceed the cost of the assets or
property so acquired or constructed; and

 

(b)            such Liens are created
within six months of construction or acquisition of such assets or property and
do not encumber any other assets or property of the Company or any of its
Restricted Subsidiaries other than such assets or property and assets affixed
or appurtenant thereto and such other assets financed by, and a Lien permitted
hereunder granted in favor of, the same financing source;

 

(11)                           Liens
arising solely by virtue of any statutory or common law provisions relating to
banker’s Liens, rights of set-off or similar rights and remedies

 

25

 

as to deposit accounts or other funds maintained with a depositary
institution; provided that:

 

(a)             such deposit account
is not a dedicated cash collateral account and is not subject to restrictions
against access by the Company in excess of those set forth by regulations
promulgated by the Federal Reserve Board; and

 

(b)            such deposit account
is not intended by the Company or any of its Restricted Subsidiaries to provide
collateral to the depository institution;

 

(12)                             Liens
arising from Uniform Commercial Code financing statement filings regarding
operating leases entered into by the Company and its Restricted Subsidiaries in
the ordinary course of business;

 

(13)                             Liens
existing on the Issue Date;

 

(14)                             Liens
on property or shares of stock of a Person at the time such Person becomes a
Restricted Subsidiary of the Company; provided, however, that such Liens are not
created, Incurred or assumed in connection with, or in contemplation of, such
other Person becoming a Restricted Subsidiary of the Company; provided,
further, however, that any such Lien may not extend to any other
property owned by the Company or any of its Restricted Subsidiaries;

 

(15)                             Liens
on property at the time the Company or its Restricted Subsidiary acquired the
property, including any acquisition by means of a merger or consolidation with
or into the Company or any of its Restricted Subsidiaries; provided, however, that such
Liens are not created, Incurred or assumed in connection with, or in contemplation
of, such acquisition; provided, further, however, that such
Liens may not extend to any other property owned by the Company or any of its
Restricted Subsidiaries except assets financed by, and a Lien permitted
hereunder granted in favor of, the same financing source;

 

(16)                             Liens
securing Indebtedness or other obligations of a Restricted Subsidiary of the
Company owing to the Company or a Wholly Owned Subsidiary (other than a
Receivable Entity);

 

(17)                             Liens
securing the Securities and Notes Guarantees;

 

(18)                             Liens
securing Refinancing Indebtedness Incurred to refinance Indebtedness
(including, without limitation, Acquired Indebtedness) that was previously so
secured, provided
that any such Lien is limited to all or part of the same property or assets
(plus improvements, accessions, proceeds or dividends or distributions in
respect thereof) that secured (or, under the written arrangements under which
the original Lien arose, could 

 

26

 

secure) the Indebtedness being refinanced or is in respect of property
that is the security for a Permitted Lien hereunder;

 

(19)                             any
interest or title of a lessor under any Capitalized Lease Obligation or
operating lease; and

 

(20)                             Liens
on assets transferred to a Receivables Entity or on assets of a Receivables
Entity, in either case Incurred in connection with a Qualified Receivables
Transaction.

 

“Person” means
any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability
company, government or any agency or political subdivision hereof or any other
entity.

 

“Preferred
Stock” means, as applied to the Capital Stock of any corporation, Capital
Stock of any class or classes (however designated) which is preferred as to the
payment of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such corporation, over shares of
Capital Stock of any other class of such corporation.

 

“Purchase Money Note” means a promissory note of a Receivables
Entity evidencing a line of credit, which may be irrevocable, from the Company
or any Restricted Subsidiary of the Company in connection with a Qualified
Receivables Transaction to a Receivables Entity, which note is repayable from
cash available to the Receivables Entity, other than amounts required to be
established as reserves pursuant to agreements, amounts paid to investors in
respect of interest, principal and other amounts owing to such investors and
amounts owing to such investors and amounts paid in connection with the
purchase of newly generated accounts receivable.

 

“Qualified Public Offering” means the first firm commitment
underwritten public offering pursuant to an effective registration statement
filed on Form S-1 (or its successor form) under the Securities Act underwritten
by a nationally-recognized underwriter satisfactory to the holders of a
majority of the shares of the Company’s Common Stock, par value $0.001 per
share, and the Company’s Class A Common Stock, par value $0.001 per share,
(voting together as a single class) resulting in aggregate proceeds (net of
underwriting discounts and commissions) to the Company of not less than $50.0
million.

 

“Qualified Receivables
Transaction” means any transaction or series of transactions that
may be entered into by the Company or any of its Restricted Subsidiaries
pursuant to which the Company or any of its Restricted Subsidiaries may sell,
convey or otherwise transfer to (1) a Receivables Entity (in the case of a
transfer by the Company or any of its Restricted Subsidiaries) and (2) any
other Person (in the case of a transfer by a Receivables Entity), or may grant
a security interest in, any accounts receivable (whether now existing or
arising in the future) of the Company or any of its Restricted Subsidiaries,
and any assets related thereto including, without limitation, all collateral
securing such accounts receivable, all contracts and all guarantees or other
obligations in respect of such accounts receivable, the proceeds of such
receivables and other assets which are customarily transferred, or in respect
of

 

27

 

which security interests are customarily
granted in connection with asset securitization involving accounts receivable.

 

“Qualified
Stock” means any Capital Stock that is not Disqualified Stock.

 

“Recapitalization Agreement” means the Recapitalization
Agreement, dated as of July 16, 2002, as amended as of August 8, 2002, among MQ
Investment Holdings, LLC, the Company, the stockholders of the Company
signatory thereto and David Lang and Gene Venesky, as the stockholders’
representatives.

 

“Receivable” means a right to receive payment arising from a
sale or lease of goods or services by a Person pursuant to an arrangement with
another Person pursuant to which such other Person is obligated to pay for
goods or services under terms that permit the purchase of such goods and
services on credit.

 

“Receivables
Entity” means a Wholly-Owned Subsidiary of the Company (or another
Person in which the Company or any Restricted Subsidiary of the Company makes
an Investment and to which the Company or any Restricted Subsidiary of the
Company transfers accounts receivable and related assets) which engages in no activities
other than in connection with the financing of accounts receivable and which is
designated by the Board of Directors of the Company (as provided below) as a
Receivables Entity:

 

(1)                                   no
portion of the Indebtedness or any other obligations (contingent or otherwise)
of which:

 

(a)             is guaranteed by the
Company or any Restricted Subsidiary of the Company (excluding guarantees of
obligations (other than the principal of, and interest on, Indebtedness)
pursuant to Standard Securitization Undertakings);

 

(b)            is recourse to or
obligates the Company or any Restricted Subsidiary of the Company in any way
other than pursuant to Standard Securitization Undertakings; or

 

(c)             subjects any property
or asset of the Company or any Restricted Subsidiary of the Company, directly
or indirectly, contingently or otherwise, to the satisfaction thereof, other
than pursuant to Standard Securitization Undertakings;

 

(2)                                   with
which neither the Company nor any Restricted Subsidiary of the Company has any
material contract, agreement, arrangement or understanding (except in
connection with a Purchase Money Note or Qualified Receivables Transaction)
other than on terms no less favorable to the Company or such Restricted
Subsidiary than those that might be obtained at the time from Persons that are
not Affiliates of the Company, other than fees payable in the ordinary course
of business in connection with servicing accounts receivable; and

 

28

 

(3)                                   to
which neither the Company nor any Restricted Subsidiary of the Company has any
obligation to maintain or preserve such entity’s financial condition or cause
such entity to achieve certain levels of operating results.

 

Any such
designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a certified copy of the resolution of the
Board of Directors of the Company giving effect to such designation and an
Officers’ Certificate certifying that such designation complied with the
foregoing conditions.

 

“Receivables Fees” means any discount from the face amount of
Receivables or participations therein transferred in connection with a
Qualified Receivables Transaction, factoring agreement or other similar
arrangement.

 

“Refinancing
Indebtedness” means Indebtedness that is Incurred to refund,
refinance, replace, exchange, renew, repay, retire or extend (including
pursuant to any defeasance or discharge mechanism) (collectively, “refinance,”
“refinances,” and “refinanced” shall have a correlative meaning) any
Indebtedness existing on the date of this Indenture or Incurred in compliance
with this Indenture (including Indebtedness of the Company that refinances
Indebtedness of any of its Restricted Subsidiaries and Indebtedness of any
Restricted Subsidiary of the Company that refinances Indebtedness of another
Restricted Subsidiary) including Indebtedness that refinances Refinancing
Indebtedness, provided, however, that:

 

(1)                                   (a)
if the Stated Maturity of the Indebtedness being refinanced is earlier than the
Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated
Maturity no earlier than the Stated Maturity of the Indebtedness being
refinanced or (b) if the Stated Maturity of the Indebtedness being refinanced
is later than the Stated Maturity of the Securities, the Refinancing
Indebtedness has a Stated Maturity at least 91 days later than the Stated
Maturity of the Securities;

 

(2)                                   the
Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of
the Indebtedness being refinanced;

 

(3)                                   such
Refinancing Indebtedness is Incurred in an aggregate principal amount (or if
issued with original issue discount, an aggregate issue price) that is equal to
or less than the sum of the aggregate principal amount (or if issued with
original issue discount, the aggregate accreted value) then outstanding of
Indebtedness being refinanced (plus, without duplication, any additional
Indebtedness Incurred to pay interest or premiums required by the instruments
governing such existing Indebtedness and fees, commissions and other issuance
costs Incurred in connection therewith); and

 

(4)                                   if
the Indebtedness being refinanced is subordinated in right of payment to the
Securities or any Notes Guarantee, such Refinancing Indebtedness is

 

29

 

subordinated in right of payment to the Securities or such Notes
Guarantee on terms at least as favorable to the Holders of Securities as those
contained in the documentation governing the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded.

 

“Registration
Rights Agreement” means that certain registration rights agreement
dated as of the date of this Indenture by and among the Company and the initial
purchasers set forth therein and future registration rights agreements with
respect to Additional Securities.

 

“Related
Business” means any business which is the same as or related,
ancillary or complementary to or a reasonable extension of any of the
businesses of the Company and its Restricted Subsidiaries on the date of this
Indenture, in each case, as determined conclusively and in good faith by the
Company’s Board of Directors.

 

“Related Person” with respect to any Permitted Holder means:

 

(1)                                   any
controlling stockholder or a majority (or more) owned Subsidiary of such
Permitted Holder or, in the case of an individual, any spouse or immediate
family member of such Permitted Holder, any trust created for the benefit of such
individual or such individual’s estate, executor, administrator, committee or
beneficiaries; or

 

(2)                                   any
trust, corporation, partnership or other entity, the beneficiaries,
stockholders, partners, owners or Persons beneficially holding a majority (or more)
controlling interest of which consist of such Permitted Holder and/or such
other Persons referred to in the immediately preceding clause (1).

 

“Restricted
Investment” means any Investment other than a Permitted Investment.

 

“Restricted
Subsidiary” means, (x) with respect to the Company, any Subsidiary of the
Company other than an Unrestricted Subsidiary, and (y) with respect to
MedQuest, any “Restricted Subsidiary” as defined in the Senior Subordinated
Notes Indenture.

 

“Sale/Leaseback
Transaction” means an arrangement relating to property now owned or
hereafter acquired whereby the Company or its Restricted Subsidiary transfers
such property to a Person and the Company or its Restricted Subsidiary leases
it from such Person, other than leases between the Company and a Wholly-Owned
Subsidiary or between Wholly-Owned Subsidiaries.

 

“SEC” means the United States Securities and Exchange
Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Securities
Custodian” means the custodian with respect to the Global Security (as
appointed by DTC), or any successor Person thereto and shall initially be the
Trustee.

 

30

 

“Securityholder”
or “Holder” means the Person in whose name a Security is registered in
the Note Register.

 

“Senior
Credit Agreement” means, with respect to the Company, one or more
debt facilities (including, without limitation, the Amended and Restated Credit
Agreement, dated as of September 3, 2003 and as further amended on August 16,
2004, among the Company, MedQuest, Wachovia Bank, National Association, as
Administrative Agent, and the lenders parties thereto from time to time) or
commercial paper facilities with banks or other institutional lenders providing
for revolving credit loans, term loans, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or letters of
credit, in each case, as amended, restated, modified, renewed, refunded,
replaced or refinanced in whole or in part from time to time (and whether or
not with the original administrative agent and lenders or one or more other
representatives or other lenders, investors or other providers of funds or otherwise
and whether provided under the original Senior Credit Agreement or any other
credit or other agreement or indenture).

 

“Senior Subordinated Notes” means the 11 7/8% Senior
Subordinated Notes due 2012 of MedQuest.

 

“Senior Subordinated Notes Indenture” means the indenture, dated
as of August 15, 2002, among MedQuest, the Trustee and the guarantors party
thereto, pursuant to which the Senior Subordinated Notes were issued, as
amended, supplemented or modified from time to time in accordance with its terms.

 

“Series A Preferred Stock” means the Series A Redeemable
Preferred Stock, par value $0.001 per share, of the Company.

 

“Series B Preferred Stock” means the Series B Redeemable
Preferred Stock, par value $0.001 per share, of the Company.

 

“Significant Subsidiary”
means any Restricted Subsidiary of the Company that would be a
“Significant Subsidiary” of the Company within the meaning of Rule 1-02 under
Regulation S-X promulgated by the SEC.

 

“Standard Securitization
Undertakings” means representations, warranties, covenants and
indemnities entered into by the Company or any Restricted Subsidiary of the
Company which are reasonably customary in securitization of accounts receivable
transactions.

 

“Stated Maturity” means,
with respect to any security, the date specified in such security as the fixed
date on which the payment of principal of such security is due and payable,
including pursuant to any mandatory redemption provision, but shall not include
any contingent obligations to repay, redeem or repurchase any such principal
prior to the date originally scheduled for the payment thereof.

 

“Stockholders’
Agreement” means the Stockholders’ Agreement, dated as of August 15, 2002,
among the Company and each of the stockholders parties thereto, as in effect

 

31

 

on August 15, 2002 and as further amended and
modified from time to time so long as the Permitted Holders beneficially own a
majority of the Capital Stock of the Company.

 

“Subordinated Obligation”
means any Indebtedness of the Company (whether outstanding on the Issue
Date or thereafter Incurred) which is expressly subordinated or junior in right
of payment to the Securities pursuant to a written agreement.

 

“Subsidiary”
of any Person means any corporation, association, partnership, joint
venture, limited liability company or other business entity of which more than
50% of the total voting power of shares of Capital Stock or other interests
(including partnership and joint venture interests) entitled (without regard to
the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by (1) such Person, (2) such Person and one or more Subsidiaries of
such Person or (3) one or more Subsidiaries of such Person. Unless otherwise
specified herein, each reference to a Subsidiary will refer to a Subsidiary of
the Company.

 

“Subsidiary Guarantor” means each Restricted Subsidiary of the
Company that has Guaranteed any Indebtedness of the Company and executed a
supplemental indenture constituting a Notes Guarantee in accordance with the
provisions hereof, but excluding any Restricted Subsidiary that in the future
is released from a Guarantee of Indebtedness of the Company that resulted in
the obligation to Guarantee the Securities.

 

“Tangible Assets” means Total Assets less Intangible Assets.

 

“Total Assets” means the total consolidated assets of the
Company and its Restricted Subsidiaries, as shown on the most recent balance
sheet of the Company.

 

“Transactions” means, collectively, the offering of the Senior
Subordinated Notes, the recapitalization pursuant to the Recapitalization
Agreement and the initial borrowings under the Senior Credit Agreement, each as
described in the Offering Memorandum.

 

“TIA”
or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb), as in effect on the date of this Indenture.

 

“Trustee”
means the party named as such in this Indenture until a successor replaces it
and, thereafter, means the successor.

 

“Trust
Officer” shall mean, when used with respect to the Trustee, any officer
within the corporate trust department of the Trustee, including any vice
president, assistant vice president, assistant secretary, assistant treasurer,
trust officer or any other officer of the Trustee who customarily performs
functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

 

32

 

“Unrestricted
Subsidiary” means:

 

(1)                                   any
Subsidiary of the Company that at the time of determination shall be designated
an Unrestricted Subsidiary by the Board of Directors of the Company in the
manner provided below; and

 

(2)                                   any
Subsidiary of an Unrestricted Subsidiary.

 

The Board of
Directors of the Company may designate any Subsidiary of the Company (including
any newly acquired or newly formed Subsidiary or a Person becoming a Subsidiary
through merger or consolidation or Investment therein) to be an Unrestricted
Subsidiary only if:

 

(1)                                   such
Subsidiary or any of its Subsidiaries does not own any Capital Stock or
Indebtedness of or have any Investment in, or own or hold any Lien on any
property of, any other Subsidiary of the Company which is not a Subsidiary of
the Subsidiary to be so designated or otherwise an Unrestricted Subsidiary;

 

(2)                                   all
the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date of
designation, and will at all times thereafter, consist of Non-Recourse Debt;

 

(3)                                   such
designation and the Investment of the Company in such Subsidiary complies with Section
3.4;

 

(4)                                   such
Subsidiary, either alone or in the aggregate with all other Unrestricted
Subsidiaries, does not operate, directly or indirectly, all or substantially
all of the business of the Company and its Subsidiaries;

 

(5)                                   such
Subsidiary is a Person with respect to which neither the Company nor any of its
Restricted Subsidiaries has any direct or indirect obligation:

 

(a)  to subscribe for additional Capital Stock of
such Person; or

 

(b)  to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of
operating results; and

 

(6)                                   on
the date such Subsidiary is designated an Unrestricted Subsidiary, such
Subsidiary is not a party to any agreement, contract, arrangement or
understanding with the Company or any of its Restricted Subsidiaries with terms
substantially less favorable to the Company than those that might have been
obtained from Persons who are not Affiliates of the Company.

 

Any such
designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a resolution of the Board of Directors of
the Company giving effect to such designation and an Officers’ Certificate
certifying that such designation complies with the foregoing conditions. If, at
any time, any Unrestricted Subsidiary would fail to meet the foregoing
requirements as an Unrestricted Subsidiary, it shall thereafter

 

33

 

cease to be an Unrestricted Subsidiary for
purposes of this Indenture and any Indebtedness of such Subsidiary shall be
deemed to be Incurred as of such date.

 

The Board of
Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary of the Company; provided that immediately after giving
effect to such designation, no Default or Event of Default shall have occurred
and be continuing or would occur as a consequence thereof and (A) in the case
of any Subsidiary of MedQuest, MedQuest could Incur at least $1.00 of
additional Indebtedness under the first paragraph of Section 3.3 on a
pro forma basis taking into account such designation or (B) in the case of a
Subsidiary of the Company that is not also a Subsidiary of MedQuest, the
Company could Incur at least $1.00 of additional Indebtedness under the first
paragraph of Section 3.3 on a pro forma basis taking into account such
designation.

 

“U.S. Government Obligations” means securities that are (a)
direct obligations of the United States of America for the timely payment of
which its full faith and credit is pledged or (b) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America the timely payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of
America, which, in either case, are not callable or redeemable at the option of
the issuer thereof, and shall also include a depository receipt issued by a
bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such U.S. Government Obligations or a specific payment of
principal of or interest on any such U.S. Government Obligations held by such
custodian for the account of the holder of such depository receipt; provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligations or the specific payment
of principal of or interest on the U.S. Government Obligations evidenced by
such depository receipt.

 

“Voting
Stock” of a corporation means all classes of Capital Stock of such
corporation then outstanding and normally entitled to vote in the election of
directors.

 

“Wholly-Owned Subsidiary”
means a Restricted Subsidiary of the Company, all of the Capital Stock
of which (other than directors’ qualifying shares or shares required by
applicable healthcare laws to be owned by Persons other than the Company) is
owned by the Company or another Wholly-Owned Subsidiary.

 

34

 

SECTION
1.2.   Other Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
   

  	
   

  	
   

  
	
  “Additional Restricted Securities”

  	
   

  	
  2.1(b)

  
	
  “Affiliate Transaction”

  	
   

  	
  3.8

  
	
  “Agent Member”

  	
   

  	
  2.1(f)

  
	
  “Asset Disposition Offer”

  	
   

  	
  3.7(b)

  
	
  “Asset Disposition Offer Amount”

  	
   

  	
  3.7(b)

  
	
  “Asset Disposition Offer Period”

  	
   

  	
  3.7(b)

  
	
  “Asset Disposition Purchase Date”

  	
   

  	
  3.7(c)(1)

  
	
  “Authenticating Agent”

  	
   

  	
  2.2

  
	
  “Certificate of Destruction”

  	
   

  	
  2.12

  
	
  “Change of Control Offer”

  	
   

  	
  3.9

  
	
  “Change of Control Payment”

  	
   

  	
  3.9

  
	
  “Change of Control Payment Date”

  	
   

  	
  3.9

  
	
  “Company Order”

  	
   

  	
  2.2

  
	
  “Corporate Trust Office”

  	
   

  	
  3.13

  
	
  “covenant defeasance option”

  	
   

  	
  8.1(b)

  
	
  “cross acceleration provision”

  	
   

  	
  6.1(6)(b)

  
	
  “Defaulted Interest”

  	
   

  	
  2.13

  
	
  “Event of Default”

  	
   

  	
  6.1

  
	
  “Excess Proceeds”

  	
   

  	
  3.7(b)

  
	
  “Exchange Global Note”

  	
   

  	
  2.1(b)

  
	
  “Global Securities”

  	
   

  	
  2.1(b)

  
	
  “IAI”

  	
   

  	
  2.1(b)

  
	
  “Institutional Accredited Investor Note”

  	
   

  	
  2.1(b)

  
	
  “Institutional Accredited Investor Global Note”

  	
   

  	
  2.1(b)

  
	
  “judgment default provision”

  	
   

  	
  6.1(8)

  
	
  “legal defeasance option”

  	
   

  	
  8.1(b)

  
	
  “Note Register”

  	
   

  	
  2.3

  

 

35

 

	
  “Pari Passu Notes”

  	
   

  	
  3.7(b)

  
	
  “payment default”

  	
   

  	
  6.1(6)

  
	
  “Paying Agent”

  	
   

  	
  2.3

  
	
  “Private Placement Legend”

  	
   

  	
  2.1(d)

  
	
  “QIB”

  	
   

  	
  2.1(b)

  
	
  “Registrar”

  	
   

  	
  2.3

  
	
  “Regulation S”

  	
   

  	
  2.1(b)

  
	
  “Regulation S Global Note”

  	
   

  	
  2.1(b)

  
	
  “Regulation S Legend”

  	
   

  	
  2.1(d)

  
	
  “Regulation S Note”

  	
   

  	
  2.1(b)

  
	
  “Resale Restriction Termination Date”

  	
   

  	
  2.6(a)

  
	
  “Restricted Payment”

  	
   

  	
  3.4

  
	
  “Restricted Securities”

  	
   

  	
  2.1(a)

  
	
  “Rule 144A”

  	
   

  	
  2.1(b)

  
	
  “Rule 144A Global Note”

  	
   

  	
  2.1(b)

  
	
  “Rule 144A Note”

  	
   

  	
  2.1(b)

  
	
  “Similar Business”

  	
   

  	
  3.7(c)(2)

  
	
  “Special Interest Payment Date”

  	
   

  	
  2.13(a)

  
	
  “Special Record Date”

  	
   

  	
  2.13(a)

  
	
  “Successor Company”

  	
   

  	
  4.1

  

 

SECTION
1.3.   Incorporation by Reference of
Trust Indenture Act.  This Indenture is subject to the mandatory provisions of the TIA
which are incorporated by reference in and made a part of this Indenture.  The following TIA terms have the following
meanings:

 

“Commission” means the SEC.

 

“indenture
securities” means the Securities.

 

“indenture
security holder” means a Securityholder.

 

36

 

“indenture to
be qualified” means this Indenture.

 

“indenture
trustee” or “institutional trustee” means the Trustee.

 

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

 

All other TIA
terms used in this Indenture that are defined by the TIA, defined in the TIA by
reference to another statute or defined by SEC rule have the meanings assigned
to them by such definitions.

 

SECTION 1.4.   Rules
of Construction. 
Unless the context otherwise requires:

 

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

 

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

 

(3)           “or” is not
exclusive;

 

(4)           “including” means
including without limitation;

 

(5)           words in the
singular include the plural and words in the plural include the singular;

 

(6)           the principal amount
of any noninterest bearing or other discount security at any date shall be the
principal amount thereof that would be shown on a balance sheet of the issuer
dated such date prepared in accordance with GAAP; and

 

(7)           the principal amount
of any Preferred Stock shall be (i) the maximum liquidation value of such
Preferred Stock or (ii) the maximum mandatory redemption or mandatory
repurchase price with respect to such Preferred Stock, whichever is greater.

 

SECTION 1.5.   Cross-References.  Unless otherwise specified, references in
this Indenture to any Article, Section, subsection or Exhibit are references to
such Article, Section, subsection or Exhibit of this Indenture and, unless
otherwise specified, references in any Article, Section or definition to any
clause are references to such clause of such Article, Section or definition.

 

ARTICLE II

 

The Securities

 

SECTION 2.1.   Form, Dating and Terms.

 

(a)  The
aggregate principal amount of Securities that may be authenticated and
delivered under this Indenture is unlimited. 
The Initial Securities issued on the date hereof will

 

37

 

be in an
aggregate principal amount at maturity of $136,000,000.  In addition, the Company may issue, from
time to time in accordance with the provisions of this Indenture, including,
without limitation, Section 3.3 hereof, Additional Securities and
Exchange Securities.  Furthermore,
Securities may be authenticated and delivered upon registration or transfer, or
in lieu of, other Securities pursuant to Section 2.6, 2.10,  2.12
or 9.5 or in connection with an Asset Disposition Offer pursuant to Section
3.7 or a Change of Control Offer pursuant to Section 3.9.

 

The Initial
Securities shall be known and designated as “121⁄4% Senior Discount Notes, Series
A, due 2012” of the Company.  Additional
Securities issued as securities bearing one of the restrictive legends
described in Section 2.1(e) (“Restricted Securities”) shall be
known and designated as “121⁄4% Senior Discount Notes, Series A, due 2012” of the
Company.  Additional Securities issued
other than as Restricted Securities shall be known and designated as “121⁄4%
Senior Discount Notes, Series B, due 2012” of the Company, and Exchange
Securities shall be known and designated as “121⁄4% Senior Discount Notes, Series
B, due 2012” of the Company.

 

With respect
to any Additional Securities, the Company shall set forth in a Board Resolution
and an Officers’ Certificate, the following information:

 

(1)           the aggregate
principal amount at maturity of such Additional Securities to be authenticated
and delivered pursuant to this Indenture;

 

(2)           the issue price and
the issue date of such Additional Securities, including the date from which
interest shall accrue; and

 

(3)           whether such
Additional Securities shall be Restricted Securities issued in the form of
Exhibit A hereto and/or shall be issued in the form of Exhibit B hereto.

 

The Initial Securities, the Additional Securities and
the Exchange Securities shall be considered collectively as a single class for
all purposes of this Indenture.  Holders
of the Initial Securities, the Additional Securities and the Exchange
Securities will vote and consent together on all matters to which such Holders
are entitled to vote or consent as one class, and none of the Holders of the
Initial Securities, the Additional Securities or the Exchange Securities shall
have the right to vote or consent as a separate class on any matter to which
such Holders are entitled to vote or consent.

 

(b)  The
Initial Securities are being offered and sold by the Company pursuant to a
Purchase Agreement, dated August 19, 2004, among the Company, J.P. Morgan
Securities Inc. and the other initial purchasers named therein.  The Initial Securities and any Additional
Securities (if issued as Restricted Securities) (the “Additional Restricted
Securities”) will be resold initially only to (A) qualified institutional
buyers (as defined in Rule 144A under the Securities Act (“Rule 144A”))
in reliance on Rule 144A (“QIBs”) and (B) Persons other than U.S.
Persons (as defined in Regulation S under the Securities Act (“Regulation S”))
in reliance on Regulation S.  Such
Initial Securities and Additional Restricted Securities may thereafter be
transferred to, among others, QIBs, purchasers in reliance on Regulation S and
institutional “accredited investors” (as defined in Rules 501(a)(1), (2), (3)
and (7) under the Securities Act)

 

38

 

who are not
QIBs (“IAIs”) in accordance with Rule 501 of the Securities Act, in each
case, in accordance with the procedures described herein.

 

Initial
Securities and Additional Restricted Securities offered and sold to QIBs in the
United States of America in reliance on Rule 144A (the “Rule 144A Notes”)
shall be issued in the form of a permanent global Security, without interest
coupons, substantially in the form of Exhibit A, which is hereby
incorporated by reference and made a part of this Indenture, including
appropriate legends as set forth in Section 2.1(e) (the “Rule 144A
Global Note”), deposited with the Trustee, as custodian for DTC, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided.  The Rule 144A Global Note may
be represented by more than one certificate, if so required by DTC’s rules
regarding the maximum principal amount to be represented by a single
certificate.  The aggregate principal
amount of the Rule 144A Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
DTC or its nominee, as hereinafter provided.

 

Initial
Securities and Additional Securities offered and sold outside the United States
of America (the “Regulation S Notes”) in reliance on Regulation S shall
be issued in the form of a permanent global Security, without interest coupons,
substantially in the form of Exhibit A including appropriate legends as
set forth in Section 2.1(e) (the “Regulation S Global Note”).  The Regulation S Global Note will be
deposited upon issuance with, or on behalf of, the Trustee as custodian for DTC
in the manner described in this Article II for credit to the respective
accounts of the purchasers (or to such other accounts as they may direct) at
Euroclear Bank S.A./N.V. (“Euroclear”) or Clearstream Banking, société
anonyme (“Clearstream”).  Prior
to the 40th day after the later of the commencement of the offering of the
Initial Securities and the Issue Date (such period through and including such
40th day, the “Restricted Period”), interests in the Regulation S Global
Note may only be held through Euroclear or Clearstream (as indirect
participants in DTC) unless exchanged for interests in a Global Security in
accordance with the transfer and certification requirements described herein.

 

Investors may
hold their interests in the Regulation S Global Note directly through Euroclear
or Clearstream, if they are participants in such systems, or indirectly through
organizations which are participants in such systems.  After the expiration of the Restricted Period (but not earlier),
investors may also hold such interests through organizations other than
Euroclear or Clearstream that are participants in DTC’s system.  Euroclear and Clearstream will hold such
interests in the applicable Regulation S Global Note on behalf of their
participants through customers’ securities accounts in their respective names
on the books of their respective depositaries. 
Such depositaries, in turn, will hold such interests in the applicable
Regulation S Global Note in customers’ securities accounts in the depositaries’
names on the books of DTC.

 

The Regulation
S Global Note may be represented by more than one certificate, if so required
by DTC’s rules regarding the maximum principal amount to be represented by a
single certificate.  The aggregate
principal amount of the Regulation S Global Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for DTC or its nominee, as hereinafter provided.

 

Initial
Securities and Additional Securities resold to IAIs (the “Institutional
Accredited Investor Notes”) in the United States of America shall be issued
in the form of a

 

39

 

permanent global Security, without interest
coupons, substantially in the form of Exhibit A including appropriate
legends as set forth in Section 2.1(e) (the “Institutional Accredited
Investor Global Note”) deposited with the Trustee, as custodian for DTC,
duly executed by the Company and authenticated by the Trustee as hereinafter
provided.  The Institutional Accredited
Investor Global Note may be represented by more than one certificate, if so
required by DTC’s rules regarding the maximum principal amount to be
represented by a single certificate. 
The aggregate principal amount of the Institutional Accredited Investor
Global Note may from time to time be increased or decreased by adjustments made
on the records of the Trustee, as custodian for DTC or its nominee, as
hereinafter provided.

 

Exchange
Securities exchanged for interests in the Rule 144A Notes, the Regulation S
Notes and the Institutional Accredited Investor Notes will be issued in the
form of a permanent global Security, without interest coupons, substantially in
the form of Exhibit B, which is hereby incorporated by reference and
made a part of this Indenture, deposited with the Trustee as hereinafter
provided, including the appropriate legend set forth in Section 2.1(e)
(the “Exchange Global Note”). 
The Exchange Global Note may be represented by more than one
certificate, if so required by DTC’s rules regarding the maximum principal
amount to be represented by a single certificate.

 

The Rule 144A
Global Note, the Regulation S Global Note, the Institutional Accredited
Investor Global Note and the Exchange Global Note are sometimes collectively
herein referred to as the “Global Securities.”

 

The principal
of (and premium, if any) and cash interest on the Securities shall be payable
at the office or agency of the Company maintained for such purpose in The City
of New York, or at such other office or agency of the Company as may be
maintained for such purpose pursuant to Section 2.3; provided, however, that, at the option of
the Company, each installment of cash interest may be paid by (i) check mailed
to addresses of the Persons entitled thereto as such addresses shall appear on
the Note Register or (ii) wire transfer to an account located in the United
States maintained by the payee. 
Payments in respect of Securities represented by a Global Security (including
principal, premium, if any, and cash interest) will be made by wire transfer of
immediately available funds to the accounts specified by DTC.

 

The Securities
may have notations, legends or endorsements required by law, stock exchange
rule or usage, in addition to those set forth on Exhibit A and Exhibit
B and in Section 2.1(e).  The
Company and the Trustee shall approve the forms of the Securities and any
notation, endorsement or legend on them. 
Each Security shall be dated the date of its authentication.  The terms of the Securities set forth in Exhibit
A and Exhibit B are part of the terms of this Indenture and, to the
extent applicable, the Company and the Trustee, by their execution and delivery
of this Indenture, expressly agree to be bound by such terms.

 

(c)  Denominations.  The Securities shall be issuable only in
fully registered form, without coupons, and only in denominations of $1,000
principal amount at maturity and any integral multiple thereof.

 

(d)  Original
Issue Discount Legend.  Each
Security will bear the following legend on the face thereof:

 

40

 

“THIS SECURITY
WAS ISSUED WITH “ORIGINAL ISSUE DISCOUNT” WITHIN THE MEANING OF SECTION 1272,
ET SEQ., OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.  UPON WRITTEN
REQUEST, THE COMPANY WILL PROVIDE TO ANY HOLDER OF THE SECURITY (1) THE
ORIGINAL ISSUE PRICE AND DATE OF THE SECURITY, (2) THE AMOUNT OF ORIGINAL ISSUE
DISCOUNT ON THE SECURITY AND (3) THE ORIGINAL YIELD TO MATURITY OF THE
SECURITY.  SUCH REQUEST SHOULD BE SENT TO THE COMPANY AT MQ ASSOCIATES,
INC., 4300 NORTH POINT PARKWAY, ALPHARETTA, GEORGIA 30022, ATTN: CHIEF
FINANCIAL OFFICER.”

 

(e)  Restrictive
Legends.  Unless and until
(i) an Initial Security is sold under an effective registration statement
or (ii) an Initial Security is exchanged for an Exchange Security in
connection with an effective registration statement, in each case pursuant to
the Registration Rights Agreement or a similar agreement,

 

(A)  the
Rule 144A Global Note and the Institutional Accredited Investor Global Note
shall bear the following legend (the “Private Placement Legend”) on the
face thereof:

 

“THIS SECURITY
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.  NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION.  THE HOLDER OF THIS
SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF
ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS
THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO
THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON
IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND
SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN
THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS
AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN

 

41

 

ACCOUNT OR FOR
THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A
MINIMUM PRINCIPAL AMOUNT AT MATURITY OF THE SECURITIES OF $250,000, FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION
WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF
THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

BY ITS
ACQUISITION OF THIS SECURITY THE HOLDER THEREOF WILL BE DEEMED TO HAVE
REPRESENTED AND WARRANTED THAT EITHER (I) NO PORTION OF THE ASSETS USED BY SUCH
HOLDER TO ACQUIRE AND HOLD THIS SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE
BENEFIT PLAN THAT IS SUBJECT TO TITLE I OF THE U.S. EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF PLANS, INDIVIDUAL RETIREMENT
ACCOUNTS OR OTHER ARRANGEMENTS THAT ARE SUBJECT TO SECTION 4975 OF THE U.S.
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR PROVISIONS UNDER ANY
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR
TO SUCH PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF AN ENTITY WHOSE
UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF SUCH PLANS,
ACCOUNTS OR ARRANGEMENTS, OR (II) THE PURCHASE AND HOLDING OF THIS SECURITY
WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR VIOLATION UNDER ANY APPLICABLE
SIMILAR LAWS.”

 

(B)  the
Regulation S Global Note shall bear the following legend (the “Regulation S
Legend”) on the face thereof:

 

“THIS SECURITY
HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE
UNITED STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS
SET FORTH IN THE FOLLOWING SENTENCE.  BY
ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS NOT A U.S. PERSON
NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT (“REGULATION S”), (2) BY ITS ACCEPTANCE HEREOF AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED
SECURITIES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE

 

42

 

DATE (THE
“RESALE RESTRICTION TERMINATION DATE”) THAT IS FORTY DAYS AFTER THE LATER OF
THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2),
(3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED
INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH
AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL
AMOUNT AT MATURITY OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND
NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM AND
IN THE CASE OF THE FOREGOING CLAUSE (E), A CERTIFICATE OF TRANSFER IN THE FORM
APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE COMPANY AND THE TRUSTEE. 
THIS LEGEND WILL BE REMOVED AFTER 40 CONSECUTIVE DAYS BEGINNING ON AND
INCLUDING THE LATER OF (A) THE DAY ON WHICH THE SECURITIES ARE OFFERED TO
PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S) AND (B) THE DATE
OF THE CLOSING OF THE ORIGINAL OFFERING. 
AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND
“U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT.”

 

(C)  The
Global Securities, whether or not an Initial Security, shall bear the following
legend on the face thereof:

 

“UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE
COMPANY OR ITS

 

43

 

AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

 

TRANSFERS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED
TO ON THE REVERSE HEREOF.”

 

(f)  Book-Entry
Provisions.

 

(i)  This Section 2.1(f) shall apply only to Global
Securities deposited with the Trustee, as custodian for DTC.

 

(ii)  Each Global Security initially shall (x) be registered in
the name of DTC for such Global Security or the nominee of DTC, (y) be
delivered to the Trustee as custodian for DTC and (z) bear legends as set forth
in Section 2.1(e).

 

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

 

(iv)  In connection with any transfer of a portion of the
beneficial interest in a Global Security pursuant to Section 2.1(g) to
beneficial owners who are required to hold Definitive Securities, the
Securities Custodian shall reflect on its books and records the date and a
decrease in the principal amount of such Global Security in an amount equal to
the principal amount of the beneficial interest in the Global Security to be
transferred, and the Company shall execute, and the Trustee shall authenticate
and deliver, one or more Definitive Securities of like tenor and amount.

 

(v)  In connection with the transfer of an entire Global Security
to beneficial owners pursuant to Section 2.1(g), such Global Security
shall be deemed to be surrendered to the Trustee for cancellation, and the
Company shall execute, and the Trustee shall authenticate and

 

44

 

deliver, to each beneficial owner identified by DTC in exchange for its
beneficial interest in such Global Security, an equal aggregate principal
amount of Definitive Securities of authorized denominations.

 

(vi)  The registered Holder of a Global Security may grant proxies
and otherwise authorize any person, including Agent Members and persons that
may hold interests through Agent Members, to take any action which a Holder is
entitled to take under this Indenture or the Securities.

 

(g)  Definitive
Securities.  (i)  Except as
provided below, owners of beneficial interests in Global Securities will not be
entitled to receive Definitive Securities. 
If required to do so pursuant to any applicable law or regulation,
beneficial owners may obtain Definitive Securities in exchange for their
beneficial interests in a Global Security upon written request in accordance
with DTC’s and the Registrar’s procedures. 
In addition, Definitive Securities shall be transferred to all
beneficial owners in exchange for their beneficial interests in a Global
Security if (a) DTC notifies the Company that it is unwilling or unable to
continue as depositary for such Global Security or DTC ceases to be a clearing
agency registered under the Exchange Act, at a time when DTC is required to be
so registered in order to act as depositary, and in each case a successor
depositary is not appointed by the Company within 90 days of such notice or,
(b) the Company in its sole discretion executes and delivers to the
Trustee and Registrar an Officers’ Certificate stating that such Global
Security shall be so exchangeable or (c) an Event of Default has occurred
and is continuing and the Registrar has received a request from DTC.

 

(ii)  Any Definitive Security delivered in exchange for an
interest in a Global Security pursuant to Section 2.1(f)(iv) or (v)
shall, except as otherwise provided by Section 2.6(c), bear the
applicable legend regarding transfer restrictions applicable to the Definitive
Security set forth in Section 2.1(e).

 

(iii)  In connection with the exchange of a portion of a
Definitive Security for a beneficial interest in a Global Security, the Trustee
shall cancel such Definitive Security, and the Company shall execute, and the
Trustee shall authenticate and deliver, to the transferring Holder a new
Definitive Security representing the principal amount not so transferred.

 

SECTION 2.2.   Execution and Authentication.  One Officer shall sign the Securities for
the Company by manual or facsimile signature. 
If an Officer whose signature is on a Security no longer holds that
office at the time the Trustee authenticates the Security, the Security shall
be valid nevertheless.

 

A Security shall
not be valid until an authorized signatory of the Trustee manually
authenticates the Security.  The
signature of the Trustee on a Security shall be conclusive evidence that such
Security has been duly and validly authenticated and issued under this Indenture.  A Security shall be dated the date of its
authentication.

 

At any time
and from time to time after the execution and delivery of this Indenture, the
Trustee shall authenticate and make available for delivery:  (1) Initial Securities for original issue on
the Issue Date in an aggregate principal amount at maturity of $136,000,000,
(2) Additional Securities for original issue from time to time after the Issue
Date

 

45

 

in an unlimited principal amount and
(3) Exchange Securities for issue only in an Exchange Offer pursuant to
the Registration Rights Agreement, and only in exchange for Initial Securities
or Additional Securities of an equal principal amount, in each case upon a
written order of the Company signed by two Officers or by an Officer and either
an Assistant Treasurer or an Assistant Secretary of the Company (the “Company
Order”).  Such Company Order shall
specify the amount of the Securities to be authenticated and the date on which
the original issue of Securities is to be authenticated and whether the
Securities are to be Initial Securities, Additional Securities or Exchange
Securities.

 

The Trustee
may appoint an agent (the “Authenticating Agent”) reasonably acceptable
to the Company to authenticate the Securities. 
Any such instrument shall be evidenced by an instrument signed by a
Trust Officer, a copy of which shall be furnished to the Company.  Unless limited by the terms of such
appointment, any such Authenticating Agent may authenticate Securities whenever
the Trustee may do so.  Each reference
in this Indenture to authentication by the Trustee includes authentication by
the Authenticating Agent.

 

In case the
Company or any Guarantor, if any, pursuant to Article IV, shall be
consolidated or merged with or into any other Person or shall convey, transfer,
lease or otherwise dispose of its properties and assets substantially as an
entirety to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company or any
Guarantor shall have been merged, or the Person which shall have received a
conveyance, transfer, lease or other disposition as aforesaid, shall have
executed an indenture supplemental hereto with the Trustee pursuant to Article
IV, any of the Securities authenticated or delivered prior to such
consolidation, merger, conveyance, transfer, lease or other disposition may,
from time to time, at the request of the successor Person, be exchanged for
other Securities executed in the name of the successor Person with such changes
in phraseology and form as may be appropriate, but otherwise in substance of
like tenor as the Securities surrendered for such exchange and of like
principal amount; and the Trustee, upon Company Order of the successor Person,
shall authenticate and deliver Securities as specified in such order for the
purpose of such exchange.  If Securities
shall at any time be authenticated and delivered in any new name of a successor
Person pursuant to this Section 2.2 in exchange or substitution for or
upon registration of transfer of any Securities, such successor Person, at the
option of the Holders but without expense to them, shall provide for the
exchange of all Securities at the time outstanding for Securities authenticated
and delivered in such new name.

 

SECTION 2.3.   Registrar and Paying Agent.  The Company shall maintain an office or
agency where Securities may be presented for registration of transfer or for
exchange (the “Registrar”) and an office or agency where Securities may
be presented for payment (the “Paying Agent”).  The Company shall cause each of the Registrar and the Paying
Agent to maintain an office or agency in the Borough of Manhattan, The City of
New York.  The Registrar shall keep
a register of the Securities and of their transfer and exchange (the “Note
Register”).  The Company may have
one or more co-registrars and one or more additional paying agents.  The term “Paying Agent” includes any
additional paying agent and the term “Registrar” includes any co-registrar.

 

The Company
shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture, which shall incorporate the terms of the

 

46

 

TIA. 
The agreement shall implement the provisions of this Indenture that
relate to such agent.  The Company shall
notify the Trustee of the name and address of each such agent.  If the Company fails to maintain a Registrar
or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.7.  The Company or any of its Restricted
Subsidiaries may act as Paying Agent, Registrar or transfer agent.

 

The Company
initially appoints the Trustee as Registrar and Paying Agent for the
Securities.  The Company may remove any
Registrar or Paying Agent upon written notice to such Registrar or Paying Agent
and to the Trustee; provided, however,
that no such removal shall become effective until (i) acceptance of any appointment
by a successor as evidenced by an appropriate agreement entered into by the
Company and such successor Registrar or Paying Agent, as the case may be, and
delivered to the Trustee or (ii) notification to the Trustee that the Trustee
shall serve as Registrar or Paying Agent until the appointment of a successor
in accordance with clause (i) above. 
The Registrar or Paying Agent may resign at any time upon written notice
to the Company and the Trustee.

 

SECTION 2.4.   Paying Agent to Hold Money in Trust.  By no later than 10:00 a.m. (New York City
time) on the date on which any principal of or cash interest on any Security is
due and payable, the Company shall deposit with the Paying Agent a sum
sufficient in immediately available funds to pay such principal or cash
interest when due.  The Company shall
require each Paying Agent (other than the Trustee) to agree in writing that
such Paying Agent shall hold in trust for the benefit of Securityholders or the
Trustee all money held by such Paying Agent for the payment of principal of or
cash interest on the Securities and shall notify the Trustee in writing of any
default by the Company or any Guarantor in making any such payment.  If the Company or a Subsidiary acts as Paying
Agent, it shall segregate the money held by it as Paying Agent and hold it as a
separate trust fund.  The Company at any
time may require a Paying Agent (other than the Trustee) to pay all money held
by it to the Trustee and to account for any funds disbursed by such Paying
Agent.  Upon complying with this
Section, the Paying Agent (if other than the Company or a Subsidiary) shall
have no further liability for the money delivered to the Trustee.  Upon any bankruptcy, reorganization or
similar proceeding with respect to the Company, the Trustee shall serve as
Paying Agent for the Securities.

 

SECTION 2.5.   Securityholder Lists.  The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Securityholders. 
If the Trustee is not the Registrar, or to the extent otherwise required
under the TIA, the Company shall furnish or cause the Registrar to furnish to
the Trustee, in writing at least five Business Days before each interest
payment date and at such other times as the Trustee may request in writing, a
list in such form and as of such date as the Trustee may reasonably require of
the names and addresses of Securityholders.

 

SECTION 2.6.   Transfer and Exchange.

 

(a)  The
following provisions shall apply with respect to any proposed transfer of a
Rule 144A Note or an Institutional Accredited Investor Note prior to the date
which is two years after the later of the date of its original issue and the
last date on which the Company or any affiliate of the Company was the owner of
such Securities (or any predecessor thereto) (the “Resale Restriction
Termination Date”):

 

47

 

(i)  a transfer of a Rule 144A Note or
an Institutional Accredited Investor Note or a beneficial interest therein to a
QIB shall be made upon the representation of the transferee in the form as set
forth on the reverse of the Security that it is purchasing the Security for its
own account or an account with respect to which it exercises sole investment discretion
and that it and any such account is a “qualified institutional buyer” within
the meaning of Rule 144A, and is aware that the sale to it is being made
in reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as the undersigned has requested pursuant to
Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon its foregoing representations in
order to claim the exemption from registration provided by Rule 144A;

 

(ii)  a transfer of a Rule 144A Note or
an Institutional Accredited Investor Note or a beneficial interest therein to
an IAI shall be made upon receipt by the Trustee or its agent of a certificate
substantially in the form set forth in Section 2.7 from the proposed
transferee and, if requested by the Company or the Trustee, the delivery of an
opinion of counsel, certification and/or other information satisfactory to each
of them; and

 

(iii)  a transfer of a Rule 144A Note or
an Institutional Accredited Investor Note or a beneficial interest therein to a
Non-U.S. Person shall be made upon receipt by the Trustee or its agent of a
certificate substantially in the
form set forth in Section 2.8 from the proposed transferee and, if
requested by the Company or the Trustee, the delivery of an opinion of counsel,
certification and/or other information satisfactory to each of them.

 

(b)  The
following provisions shall apply with respect to any proposed transfer of a
Regulation S Note prior to the expiration of the Restricted Period:

 

(i)  a transfer of a Regulation S Note
or a beneficial interest therein to a QIB shall be made upon the representation
of the transferee in the form as set forth on the reverse of the Security that
it is purchasing the Security for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a “qualified institutional buyer” within the meaning of Rule 144A, and
is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying upon
its foregoing representations in order to claim the exemption from registration
provided by Rule 144A;

 

(ii)  a transfer of a Regulation S Note
or a beneficial interest therein to an IAI shall be made upon receipt by the
Trustee or its agent of a certificate substantially in the form set forth in Section
2.7 from the proposed transferee and, if requested by the Company or the
Trustee, the delivery of an opinion of counsel, certification and/or other
information satisfactory to each of them; and

 

(iii)  a transfer of a Regulation S Note
or a beneficial interest therein to a Non-U.S. Person shall be made upon
receipt by the Trustee or its agent of a certificate substantially in the form
set forth in Section 2.8 hereof from the proposed transferee and,

 

48

 

if requested by the Company or the Trustee, receipt by the Trustee or
its agent of an opinion of counsel, certification and/or other information
satisfactory to each of them.

 

After the
expiration of the Restricted Period, interests in the Regulation S Note may be
transferred in accordance with applicable law without requiring the
certification set forth in Section 2.7, Section 2.8 or any
additional certification.

 

(c)  Restricted
Securities Legend.  Upon the
transfer, exchange or replacement of Securities not bearing a Restricted
Securities Legend, the Registrar shall deliver Securities that do not bear a
Restricted Securities Legend.  Upon the
transfer, exchange or replacement of Securities bearing a Restricted Securities
Legend, the Registrar shall deliver only Securities that bear a Restricted
Securities Legend unless (i) Initial Securities are being exchanged for
Exchange Securities in an Exchange Offer in which case the Exchange Securities
shall not bear a Restricted Securities Legend, (ii) an Initial Security is
being transferred pursuant to an effective registration statement or (iii)
there is delivered to the Registrar an Opinion of Counsel to the effect that
neither such legend nor the related restrictions on transfer are required in
order to maintain compliance with the provisions of the Securities Act.

 

(d)  The
Registrar shall retain copies of all letters, notices and other written
communications received pursuant to Section 2.1 or this Section 2.6.
 The Company shall have the right to
inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable prior
written notice to the Registrar.

 

(e)  Obligations
with Respect to Transfers and Exchanges of Securities.

 

(i)  To permit registrations of
transfers and exchanges, the Company shall, subject to the other terms and
conditions of this Article II, execute and the Trustee shall
authenticate Definitive Securities and Global Securities at the Registrar’s
request.

 

(ii)  No service charge shall be made to
a Holder for any registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any transfer tax, assessments, or
similar governmental charge payable in connection therewith (other than any
such transfer taxes, assessments or similar governmental charges payable upon
exchange or transfer pursuant to Sections  3.7, 3.9 or 9.5).

 

(iii)  The Registrar shall not be
required to register the transfer of or exchange of any Security for a period
beginning (1) 15 days before the mailing of a notice of an offer to repurchase
or redeem Securities and ending at the close of business on the day of such
mailing or (2) 15 days before an interest payment date and ending on such
interest payment date.

 

(iv)  Prior to the due presentation for
registration of transfer of any Security, the Company, the Trustee, the Paying
Agent or the Registrar may deem and treat the person in whose name a Security
is registered as the absolute owner of such Security for the purpose of
receiving payment of principal of and interest on such Security and for all
other purposes whatsoever, including without limitation the transfer or
exchange of such Security, whether or not such Security is overdue, and none of
the Company, the Trustee, the Paying Agent or the Registrar shall be affected
by notice to the contrary.

 

49

 

(v)  Any Definitive Security delivered
in exchange for an interest in a Global Security pursuant to Section 2.1(f)
shall, except as otherwise provided by Section 2.6(c), bear the
applicable legend regarding transfer restrictions applicable to the Definitive
Security set forth in Section 2.1(e).

 

(vi)  All Securities issued upon any
transfer or exchange pursuant to the terms of this Indenture shall evidence the
same debt and shall be entitled to the same benefits under this Indenture as
the Securities surrendered upon such transfer or exchange.

 

(f)  No
Obligation of the Trustee.

 

(i)  The Trustee shall have no responsibility or obligation to any
beneficial owner of a Global Security, a member of, or a participant in, DTC or
other Person with respect to the accuracy of the records of DTC or its nominee
or of any participant or member thereof, with respect to any ownership interest
in the Securities or with respect to the delivery to any participant, member,
beneficial owner or other Person (other than DTC) of any notice (including any
notice of redemption) or the payment of any amount or delivery of any
Securities (or other security or property) under or with respect to such
Securities.  All notices and
communications to be given to the Holders and all payments to be made to
Holders in respect of the Securities shall be given or made only to or upon the
order of the registered Holders (which shall be DTC or its nominee in the case
of a Global Security).  The rights of
beneficial owners in any Global Security shall be exercised only through DTC subject
to the applicable rules and procedures of DTC. 
The Trustee may rely and shall be fully protected in relying upon
information furnished by DTC with respect to its members, participants and any
beneficial owners.

 

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

 

SECTION 2.7.   Form of Certificate to be Delivered in Connection with
Transfers to Institutional Accredited Investors.

 

	
   

  	
  [Date]

  

 

MQ Associates,
Inc. 

c/o Wachovia Bank, National Association

191 Peach Street, 23rd Floor

Atlanta, Georgia 30303-9094

Attention: Corporate Trust Group

 

Dear Sirs:

 

50

 

This
certificate is delivered to request a transfer of
$[                ]
principal amount at maturity of the 121⁄4% Senior Discount Notes due 2012 (the “Securities”)
of MQ Associates, Inc. (the “Company”).

 

Upon transfer,
the Securities would be registered in the name of the new beneficial owner as
follows:

 

Name:
                                                                                             

 

Address:
                                                              

 

Taxpayer ID
Number:
                                 

 

The
undersigned represents and warrants to you that:

 

1.             We are an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act of 1933, as amended (the “Securities Act”)) purchasing for our own
account or for the account of such an institutional “accredited investor” at
least $250,000 principal amount at maturity of the Securities, and we are
acquiring the Securities not with a view to, or for offer or sale in connection
with, any distribution in violation of the Securities Act.  We have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risk of our investment in the Securities and we invest in or purchase
securities similar to the Securities in the normal course of our business.  We and any accounts for which we are acting
are each able to bear the economic risk of our or its investment.

 

2.             We understand that the Securities
have not been registered under the Securities Act and, unless so registered,
may not be sold except as permitted in the following sentence.  We agree on our own behalf and on behalf of
any investor account for which we are purchasing Securities to offer, sell or
otherwise transfer such Securities prior to the date that is two years after
the later of the date of original issue and the last date on which the Company
or any affiliate of the Company was the owner of such Securities (or any
predecessor thereto) (the “Resale Restriction Termination Date”) only
(a) to the Company, (b) pursuant to a registration statement which has been
declared effective under the Securities Act, (c) in a transaction complying
with the requirements of Rule 144A under the Securities Act, to a person we
reasonably believe is a qualified institutional buyer under Rule 144A (a “QIB”)
that purchases for its own account or for the account of a QIB and to whom
notice is given that the transfer is being made in reliance on Rule 144A, (d)
pursuant to offers and sales that occur outside the United States within the
meaning of Regulation S under the Securities Act, (e) to an institutional
“accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act that is purchasing for its own account or for the
account of such an institutional “accredited investor,” in each case in a
minimum principal amount at maturity of Securities of $250,000 or (f) pursuant
to any other available exemption from the registration requirements of the
Securities Act, subject in each of the foregoing cases to any requirement of
law that the disposition of our property or the property of such investor
account or accounts be at all times within our or their control and in
compliance with any applicable state securities laws.  The foregoing restrictions on resale will not apply subsequent to
the Resale Restriction Termination Date. 
If any resale or other transfer of the Securities is proposed to be made
pursuant to clause (e) above prior to the 

 

51

 

Resale Restriction Termination Date, the
transferor shall deliver a letter from the transferee substantially in the form
of this letter to the Company and the Trustee, which shall provide, among other
things, that the transferee is an institutional “accredited investor” (within
the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and
that it is acquiring such Securities for investment purposes and not for
distribution in violation of the Securities Act.  Each purchaser acknowledges that the Company and the Trustee
reserve the right prior to any offer, sale or other transfer prior to the
Resale Termination Date of the Securities pursuant to clauses (d), (e) or (f)
above to require the delivery of an opinion of counsel, certifications and/or
other information satisfactory to the Company and the Trustee.

 

	
   

  	
  TRANSFEREE:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  	
   

  
					

 

SECTION 2.8.   Form of Certificate to be Delivered in Connection with
Transfers Pursuant to Regulation S.

 

	
   

  	
  [Date]

  

 

MQ Associates,
Inc.

c/o Wachovia Bank, National Association

191 Peach Street, 23rd Floor

Atlanta, Georgia 30303-9094

Attention: Corporate Trust Group

 

	
  Re:

  	
   

  	
  MQ
  Associates, Inc.

  
	
   

  	
   

  	
  121⁄4% Senior
  Discount Notes due 2012 (the “Securities”)

  

 

Ladies and
Gentlemen:

 

In connection
with our proposed sale of
$[                   ]
aggregate principal amount at maturity of the Securities, we confirm that such
sale has been effected pursuant to and in accordance with Regulation S
under the United States Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, we represent that:

 

(a)           the offer of the Securities was not
made to a person in the United States;

 

(b)           either (i) at the time the buy
order was originated, the transferee was outside the United States or we and
any person acting on our behalf reasonably believed that the transferee was
outside the United States or (ii) the transaction was executed in, on or
through the facilities of a designated off-shore securities market and neither
we nor any person acting on our behalf knows that the transaction has been
pre-arranged with a buyer in the United States;

 

(c)           no directed selling efforts have been
made in the United States in contravention of the requirements of
Rule 903(b) or Rule 904(b) of Regulation S, as applicable; and

 

52

 

(d)           the transaction is not part of a plan
or scheme to evade the registration requirements of the Securities Act.

 

In addition,
if the sale is made during a restricted period, we confirm that such sale has
been made pursuant to Rule 903(b)(2)(iii) or Rule 904(b)(1) of Regulation S.

 

You and the Company
are entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or
legal proceedings or official inquiry with respect to the matters covered
hereby.  Terms used in this certificate
have the meanings set forth in Regulation S.

 

Very truly
yours,

 

[Name of
Transferor]

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signature

  	
   

  

 

SECTION 2.9.   Mutilated, Destroyed, Lost or Stolen
Securities.  If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue
and the Trustee shall authenticate a replacement Security if the requirements
of Section 8-405 of the Uniform Commercial Code are met, such that the
Securityholder (a) satisfies the Company or the Trustee within a reasonable
time after such Securityholder has notice of such loss, destruction or wrongful
taking and the Registrar does not register a transfer prior to receiving such
notification, (b) makes such request to the Company or Trustee prior to the
Security being acquired by a protected purchaser as defined in Section 8-303 of
the Uniform Commercial Code (a “protected purchaser”) and (c) satisfies any
other reasonable requirements of the Trustee. 
If required by the Trustee or the Company, such Holder shall furnish an
indemnity bond sufficient in the judgment of the Company and the Trustee to
protect the Company, the Trustee, the Paying Agent and the Registrar from any
loss which any of them may suffer if a Security is replaced, and, in the
absence of notice to the Company, any Guarantor or the Trustee that such
Security has been acquired by a protected purchaser, the Company shall execute
and upon Company Order the Trustee shall authenticate and make available for
delivery, in exchange for any such mutilated Security or in lieu of any such
destroyed, lost or stolen Security, a new Security of like tenor and principal
amount, bearing a number not contemporaneously outstanding.

 

In case any
such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a
new Security, pay such Security.

 

Upon the
issuance of any new Security under this Section, 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) in connection therewith.

 

53

 

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

 

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

 

SECTION 2.10.   Outstanding Securities.  Securities outstanding at any time are all
Securities authenticated by the Trustee except for those cancelled by it, those
delivered to it for cancellation and those described in this Section 2.10
as not outstanding.  A Security does not
cease to be outstanding in the event the Company or an Affiliate of the Company
holds the Security, provided, however, that (i) for purposes
of determining which are outstanding for consent or voting purposes hereunder,
the provisions of Section 10.6 shall apply and (ii) in determining
whether the Trustee shall be protected in making a determination whether the
Holders of the requisite principal amount of outstanding Securities are present
at a meeting of Holders of Securities for quorum purposes or have consented to
or voted in favor of any request, demand, authorization, direction, notice,
consent, waiver, amendment or modification hereunder, or relying upon any such
quorum, consent or vote, only Securities which a Trust Officer of the Trustee
actually knows to be held by the Company or an Affiliate of the Company shall
not be considered outstanding.

 

If a Security
is replaced pursuant to Section 2.9, it ceases to be outstanding unless
the Trustee and the Company receive proof satisfactory to them that the
replaced Security is held by a protected purchaser.

 

If the Paying
Agent segregates and holds in trust, in accordance with this Indenture, on a
redemption date or maturity date money sufficient to pay all principal and interest
payable on that date with respect to the Securities (or portions thereof) to be
redeemed or maturing, as the case may be, and the Paying Agent is not
prohibited from paying such money to the Securityholders on that date pursuant
to the terms of this Indenture, then on and after that date such Securities (or
portions thereof) cease to be outstanding and interest on them ceases to
accrue.

 

SECTION 2.11.   Temporary Securities.  In the event that Definitive Securities are
to be issued under the terms of this Indenture, until such Definitive
Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities. 
Temporary Securities shall be substantially in the form of Definitive
Securities but may have variations that the Company considers appropriate for
temporary Securities.  Without
unreasonable delay, the Company shall prepare and the Trustee shall
authenticate Definitive Securities. 
After the preparation of Definitive Securities, the temporary Securities
shall be exchangeable for Definitive Securities upon surrender of the temporary
Securities at any office or agency maintained by the Company for that purpose
and such exchange shall be without charge to the Holder.  Upon surrender for cancellation of any one
or more temporary Securities,

 

54

 

the Company shall execute, and the Trustee shall authenticate and make
available for delivery in exchange therefor, one or more Definitive Securities
representing an equal principal amount of Securities.  Until so exchanged, the Holder of temporary Securities shall in
all respects be entitled to the same benefits under this Indenture as a Holder
of Definitive Securities.

 

SECTION 2.12.   Cancellation.  The Company at any time may deliver
Securities to the Trustee for cancellation. 
The Registrar and the Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange or
payment.  The Trustee and no one else
shall cancel all Securities surrendered for registration of transfer, exchange,
payment or cancellation and destroy such Securities in accordance with its
internal policies including delivery of a certificate (a “Certificate of
Destruction”) describing such Securities disposed (subject to the record
retention requirements of the Exchange Act). 
The Company may not issue new Securities to replace Securities it has
paid or delivered to the Trustee for cancellation for any reason other than in
connection with a transfer or exchange.

 

SECTION 2.13.   Payment of Interest; Defaulted Interest.  (a)  Cash interest on any Security
which is payable, and is punctually paid or duly provided for, on any interest
payment date shall be paid to the Person in whose name such Security (or one or
more predecessor Securities) is registered at the close of business on the
regular record date for such interest at the office or agency of the Company
maintained for such purpose pursuant to Section 2.3.

 

(b)  The
Company is required to make payments of accrued interest (whether in the form
of an increase in the Accreted Value of the Securities or otherwise) in an
amount and at a time such that the Securities will not be issued with
“significant original issue discount” within the meaning of Section 163(i)(2)
of the Code.  As such, the Company will
pay by the end of the first accrual period ending after the fifth anniversary
of the Issue Date an amount such that at no time during the continued term of
the Securities will there be accrued but unpaid interest on the Securities
exceeding an amount equal to the product of (i) the original issue price of the
Initial Securities (within the meaning of Section 1273(b) and Section 1274(a)
of the Code) and (ii) the Initial Securities’ yield to maturity.  Moreover, the Company may make payments of
accrued and unpaid interest to the Holders of the Securities as of August 15,
2008, in addition to making the payment by the time described in the preceding
sentence.  Any payments made pursuant
this Section 2.13(b)  will reduce
the Accreted Value and principal amount at maturity of the Securities; however,
the amount of such reduction of Accreted Value and principal amount at maturity
of the Securities will be the Accreted Value and principal amount at maturity
of Securities that the Company could have redeemed if it had instead applied
such payments of accrued interest to make a partial redemption of the
Securities at the applicable redemption prices set forth in paragraph 5 of the
form of Securities set forth in Exhibits A and B hereto.

 

Notice of the
mandatory payment to be made pursuant to this Section 2.13(b) shall be
given in the manner provided for in Section 10.2 not less than 30 nor
more than 60 days prior to the date of such payment, to each the Trustee and each
Holder receiving such a payment. At the Company’s request, the Trustee shall
give notice of the mandatory payment in the Company’s name and at the Company’s
expense; provided,
however, that the Company shall deliver to the Trustee, at least 45
days prior to the payment date, an Officers’ Certificate

 

55

 

requesting
that the Trustee give such notice at the Company’s expense and setting forth
the information to be stated in such notice as provided in the following items.

 

Such notice of
the mandatory payment shall state:

 

(1)                                  the
date of such payment,

 

(2)                                  the
amount of such payment,

 

(3)                                  the
name and address of the Paying Agent, and

 

(4)                                  the
CUSIP number, and that no representation is made as to the accuracy or
correctness of the CUSIP number, if any, listed in such notice or printed on
the Securities.

 

The mandatory
payment under this Section 2.13(b) shall be made on a pro
rata
basis among the classes of Securities, by lot or by such other method as the
Trustee in its sole discretion shall deem fair and appropriate (and in such
manner as complies with applicable legal requirements); provided, however, that no
such payment shall reduce the portion of the principal amount at maturity of a
Security to less than $1,000.

 

Prior to 11:00
a.m., New York City time, on the mandatory payment date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section 2.4)
the amount of money required to be paid pursuant to this Section 2.13(b).

 

Upon making
the mandatory payment required pursuant to this Section 2.13(b), the
Company may execute, and the Trustee shall authenticate and make available for
delivery to each Holder of the Securities at the expense of the Company, a new
Security or Securities, of any authorized denomination as requested by such
Holder, in an aggregate principal amount at maturity equal to and in exchange
for the unpaid portion of the principal amount at maturity of such Holder’s
Securities.  Such delivery shall only be
made upon surrender of such unpaid Security at the office or agency of the
Company maintained for such purpose pursuant to Section 3.13.  The Accreted Value and principal amount at maturity
of the Securities shall be reduced as set forth in this Section 2.13(b),
whether or not such Securities are surrendered.

 

(c)  Any
cash interest on any Security which is payable, but is not paid when the same
becomes due and payable and such nonpayment continues for a period of 30 days
shall forthwith cease to be payable to the Holder on the regular record date by
virtue of having been such Holder, and such defaulted interest and (to the
extent lawful) interest on such defaulted interest at the rate borne by the
Securities (such defaulted interest and interest thereon herein collectively
called “Defaulted Interest”) shall be paid by the Company, at its
election in each case, as provided in clause (1) or (2) below:

 

(1)           The Company may
elect to make payment of any Defaulted Interest to the Persons in whose names
the Securities (or their respective predecessor Securities) are registered at
the close of business on a Special Record Date (as defined below) for the
payment of such Defaulted Interest, which shall be fixed in the following
manner.  The

 

56

 

Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each Security and the date (not less than 30 days after such notice)
of the proposed payment (the “Special Interest Payment Date”), 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 record date (the “Special Record
Date”) for the payment of such Defaulted Interest, which date shall be not
more than 15 days and not less than 10 days prior to the Special Interest
Payment Date 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 and Special
Interest Payment Date therefor to be given in the manner provided for in Section
10.2, 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 and Special Interest Payment
Date therefor having been so given, such Defaulted Interest shall be paid on
the Special Interest Payment Date to the Persons in whose names the Securities
(or their respective predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to
the following clause (b).

 

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

 

Subject to the
foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of, transfer of or in exchange for or in lieu of
any other Security shall carry the Accreted Value and the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.

 

SECTION 2.14.   Computation of Interest.  Interest on the Securities shall be computed
on the basis of a 360-day year comprised of twelve 30-day months.

 

SECTION 2.15.   CUSIP and ISIN Numbers.  The Company in issuing the Securities may
use “CUSIP” and “ISIN” numbers (if then generally in use) and, if so, the
Trustee shall use “CUSIP” and “ISIN” numbers in notices of redemption as a
convenience to Holders; provided, however, that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such CUSIP or ISIN numbers.  The Company shall promptly notify the
Trustee in writing of any change in the CUSIP and ISIN numbers.

 

57

 

ARTICLE III

 

Covenants

 

SECTION 3.1.   Payment of Securities.  The Company shall promptly pay the Accreted
Value of and cash interest on the Securities on the dates and in the manner
provided in the Securities and in this Indenture.  Accreted Value and cash interest shall be considered paid on the
date due if on such date the Trustee or the Paying Agent holds in accordance
with this Indenture immediately available funds sufficient to pay all Accreted Value
and cash interest then due and the Trustee or the Paying Agent, as the case may
be, is not prohibited from paying such money to the Securityholders on that
date pursuant to the terms of this Indenture.

 

The Company
shall pay interest on overdue Accreted Value at the rate specified therefor in
the Securities, and it shall pay interest on overdue installments of interest
at the same rate to the extent lawful.

 

Notwithstanding
anything to the contrary contained in this Indenture, the Company may, to the extent
it is required to do so by law, deduct or withhold income or other similar
taxes imposed by the United States of America from principal or interest
payments hereunder.

 

SECTION 3.2.   SEC Reports.  Notwithstanding that the Company may not be
subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act, to the extent permitted by the Exchange Act, the Company shall file with
the SEC, and make available to the Trustee and the registered Holders of the
Securities, the annual reports and the information, documents and other reports
(or copies of such portions of any of the foregoing as the SEC may by rules and
regulations prescribe) that are specified in Sections 13 and 15(d) of the
Exchange Act within the time periods specified therein.  In the event that the Company is not
permitted to file such reports, documents and information with the SEC pursuant
to the Exchange Act, the Company will nevertheless make available such Exchange
Act information to the Trustee and the Holders of the Securities as if the
Company were subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act within the time periods specified therein.

 

If the Unrestricted Subsidiaries of the Company, either individually or
in the aggregate, would constitute a Significant Subsidiary (if such
Subsidiaries were Restricted Subsidiaries), then the quarterly and annual
reports referred to in the preceding paragraph shall include a Management’s
Discussion and Analysis of Results of Operations and Financial Condition that
describes, for the relevant period, the financial performance of the Company
and its Restricted Subsidiaries.

 

SECTION 3.3.   Limitation on Indebtedness.  (a) 
The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, Incur any Indebtedness (including Acquired Indebtedness); provided, however, that the Company and
its Restricted Subsidiaries may Incur Indebtedness if on the date thereof:

 

(1)                                   (x)
with respect to any Indebtedness Incurred by the Company, the Consolidated
Coverage Ratio for the Company is at least 2.00 to 1.00, or

 

58

 

(y) with respect to any Indebtedness Incurred by MedQuest or any of its
Restricted Subsidiaries that Guarantees the Senior Subordinated Notes, the
Consolidated Coverage Ratio for MedQuest is at least 2.00 to 1.00; and

 

(2)                                   no
Default or Event of Default will have occurred or be continuing or would occur
as a consequence of Incurring the Indebtedness.

 

(b)           Section 3.3(a)
will not prohibit the Incurrence of the following Indebtedness:

 

(1)                                   Indebtedness
of the Company, MedQuest or its Restricted Subsidiaries that Guarantee the
Senior Subordinated Notes Incurred pursuant to the Senior Credit Agreement in
an aggregate amount up to $95.0 million, less the aggregate principal amount of
permanent commitment reductions with the proceeds from Asset Dispositions;

 

(2)                                   any
Guarantees by MedQuest and any of its Restricted Subsidiaries of Indebtedness
Incurred in accordance with the provisions of this Indenture; provided that in the event (x) a Notes
Guarantee is outstanding and (y) such Indebtedness that is being Guaranteed is
a Subordinated Obligation or a Guarantor Subordinated Obligation, then the
related Guarantee shall be subordinated in right of payment to the applicable
Notes Guarantee;

 

(3)                                   Indebtedness
of the Company owing to and held by any of its Restricted Subsidiaries (other
than a Receivables Entity) or Indebtedness of a Restricted Subsidiary of the
Company owing to and held by the Company or any of its Restricted Subsidiaries
(other than a Receivables Entity), provided,
however;

 

(a)                                    if the Company is the obligor on such
Indebtedness, such Indebtedness is expressly subordinated to the prior payment
in full in cash of all obligations with respect to the Securities;

 

(b)                                   if a Subsidiary Guarantor is the obligor on
such Indebtedness and the Company is not the Obligee, such Indebtedness is
subordinated in right of payment to the Notes Guarantee of such Subsidiary
Guarantor; and

 

(c)                                    (i) any subsequent issuance or transfer of
Capital Stock or any other event which results in any such Indebtedness being
beneficially held by a Person other than the Company or a Restricted Subsidiary
(other than a Receivables Entity) of the Company; and

 

(ii) any sale or other
transfer of any such Indebtedness to a Person other than the Company or a
Restricted Subsidiary (other than a Receivables Entity) of the Company,

 

59

 

shall be deemed, in each
case, to constitute an Incurrence of such Indebtedness by the Company or such
Subsidiary, as the case may be;

 

(4)                                   Indebtedness
represented by (a) the Securities issued on the Issue Date and the Exchange
Securities issued in exchange therefor in a registered exchange offer pursuant
to the Registration Rights Agreement, (b) any Indebtedness (other than the
Indebtedness described in clauses (1), (2), (3), (5), (7), (8), (9) and (10))
outstanding on the Issue Date (including, without limitation, (x) the Senior
Subordinated Notes and Guarantees thereof by the Company and any Restricted
Subsidiaries of MedQuest, and (y) Indebtedness outstanding under the Senior
Credit Agreement consisting of $60.0 million of Tranche B term loans) and (c)
any Refinancing Indebtedness Incurred in respect of any Indebtedness described
in this clause (4) or Incurred pursuant to Section 3.3(a);

 

(5)                                   Indebtedness
under Currency Agreements and Interest Rate Agreements; provided that in the case of Currency
Agreements, such Currency Agreements are related to business transactions of
the Company or its Restricted Subsidiaries entered into in the ordinary course
of business or, in the case of Currency Agreements and Interest Rate
Agreements, such Currency Agreements and Interest Rate Agreements are entered
into for bona fide hedging purposes of the Company or its Restricted
Subsidiaries (as determined in good faith by the Board of Directors or senior
management of the Company) and substantially correspond in terms of notional
amount, duration, currencies and interest rates, as applicable, to Indebtedness
of the Company or its Restricted Subsidiaries Incurred without violation of
this Indenture;

 

(6)                                   Indebtedness
(including Capitalized Lease Obligations and Acquired Indebtedness) Incurred by
the Company or any of its Restricted Subsidiaries to finance the acquisition,
purchase, lease, construction, development, maintenance, upgrade or
improvement, in each case, to the extent such expenditures are capitalized on
the balance sheet of the Company, of property (real or personal), equipment or
other assets (in each case whether through the direct purchase of assets or the
Capital Stock of any Person owning such assets) so long as such Indebtedness is
created within six months of the acquisition, purchase, lease, construction,
development, maintenance, upgrade or improvement of the related asset; provided that the aggregate principal
amount of all Indebtedness Incurred pursuant to this clause (6) and all
Refinancing Indebtedness to refund, refinance or replace any Indebtedness
Incurred pursuant to this clause (6) does not exceed the greater of (A) $10.0
million and (B) 10% of Tangible Assets in an aggregate principal amount at any
one time outstanding;

 

(7)                                   Indebtedness
Incurred in respect of workers’ compensation claims, self-insurance
obligations, performance, surety and similar bonds and

 

60

 

completion guarantees provided by the Company or its Restricted
Subsidiary in the ordinary course of business;

 

(8)                                   Indebtedness
arising from agreements of the Company or its Restricted Subsidiary providing
for indemnification, adjustment of purchase price or similar obligations, in
each case, Incurred or assumed in connection with the disposition of any
business, assets or Capital Stock of a Restricted Subsidiary of the Company in
accordance with the terms of this Indenture, other than Guarantees by the
Company or any Restricted Subsidiary of the Company of Indebtedness Incurred by
any Person acquiring all or any portion of such business, assets or a
Subsidiary of the Company for the purpose of financing such acquisition, provided that the maximum aggregate
liability in respect of all such Indebtedness shall at no time exceed the gross
proceeds, including the fair market value as determined in good faith by a
majority of the Board of Directors of non-cash proceeds (the fair market value
of such non-cash proceeds being measured at the time it is received and without
giving effect to any subsequent changes in value) actually received by the Company
and its Restricted Subsidiaries in connection with such disposition;

 

(9)                                   Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business, provided, however, that such Indebtedness
is extinguished within five Business Days of Incurrence;

 

(10)                             the
Incurrence by a Receivables Entity of Indebtedness in a Qualified Receivables
Transaction that is not recourse to the Company or any Restricted Subsidiary of
the Company (except for Standard Securitization Undertakings); and

 

(11)                             in
addition to the items referred to in clauses (1) through (10) above,
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate
outstanding principal amount which, when taken together with the principal
amount of all other Indebtedness Incurred pursuant to this clause (11) and then
outstanding, will not exceed $25.0 million at any one time outstanding.

 

(c)           The Company will not
Incur any Indebtedness under Section 3.3(b) if the proceeds thereof are
used, directly or indirectly, to refinance any Subordinated Obligations of the
Company unless such Indebtedness will be subordinated to the Securities to at
least the same extent as such Subordinated Obligations.  No Guarantor, if any, will Incur any
Indebtedness if the proceeds thereof are used, directly or indirectly, to
refinance any Guarantor Subordinated Obligations of such Guarantor unless such
Indebtedness will be subordinated to the obligations of such Guarantor under
its Notes Guarantee to at least the same extent as such Guarantor Subordinated
Obligations.

 

61

 

(d)           For purposes of
determining compliance with, and the outstanding principal amount of any
particular Indebtedness Incurred pursuant to and in compliance with, this Section
3.3:

 

(1)                                   in
the event that Indebtedness meets the criteria of more than one of the types of
Indebtedness described in Section 3.3(a) or (b), the Company, in
its sole discretion, will classify such item of Indebtedness on the date of
Incurrence and only be required to include the amount and type of such
Indebtedness in the clause so selected, except that, following the date of
Incurrence, the Company may later reclassify all or a portion of such item of
Indebtedness in any manner that complies with this Section 3.3; provided that the Indebtedness so
reclassified is of the nature referred to in the clause into which all or a portion
of such Indebtedness is reclassified;

 

(2)                                   Indebtedness
outstanding on the date of this Indenture under the Senior Credit Agreement in
excess of the $60.0 million of Tranche B term loans pursuant to the Senior
Credit Agreement shall be deemed initially Incurred on the Issue Date under
clause (1) of Section 3.3(b) and not clause (4) of Section 3.3(b);

 

(3)                                   Guarantees
of, or obligations in respect of letters of credit relating to, Indebtedness
which is otherwise included in the determination of a particular amount of
Indebtedness shall not be included;

 

(4)                                   if
obligations in respect of letters of credit are Incurred pursuant to the Senior
Credit Agreement and are being treated as Incurred pursuant to clause (1) of Section
3.3(b) and the letters of credit relate to other Indebtedness, then such
other Indebtedness shall not be included;

 

(5)                                   the
principal amount of any Disqualified Stock of the Company or its Restricted
Subsidiary or Preferred Stock of a Restricted Subsidiary of MedQuest that is
not a guarantor of the Senior Subordinated Notes will be equal to the greater
of the maximum mandatory redemption or repurchase price (not including, in
either case, any redemption or repurchase premium) or the liquidation
preference thereof;

 

(6)                                   Indebtedness
permitted by this Section 3.3 need not be permitted solely by reference
to one provision permitting such Indebtedness but may be permitted in part by
one such provision and in part by one or more other provisions of this Section
3.3 permitting such Indebtedness; and

 

(7)                                   the
amount of Indebtedness issued at a price that is less than the principal amount
thereof will be equal to the amount of the liability in respect thereof
determined in accordance with GAAP.

 

Accrual of
interest, accrual of dividends, the accretion of accreted value, the payment of
interest in the form of additional Indebtedness and the payment of dividends in
the

 

62

 

form of additional shares of Preferred Stock
or Disqualified Stock will not be deemed to be an Incurrence of Indebtedness
for purposes of this Section 3.3.

 

(e)           In addition, the
Company will not permit any of its Unrestricted Subsidiaries to Incur any
Indebtedness or issue any shares of Disqualified Stock, other than Non-Recourse
Debt. If at any time an Unrestricted Subsidiary becomes a Restricted Subsidiary
of the Company, any Indebtedness of such Subsidiary shall be deemed to be
Incurred by a Restricted Subsidiary of the Company as of such date (and, if
such Indebtedness is not permitted to be Incurred as of such date under this Section
3.3, the Company shall be in Default of this Section 3.3).

 

(f)            For purposes of
determining compliance with any U.S. dollar-denominated restriction on the
Incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the
relevant currency exchange rate in effect on the date such Indebtedness was
Incurred, in the case of term Indebtedness, or first committed, in the case of
revolving credit Indebtedness; provided that
if such Indebtedness is Incurred to refinance other Indebtedness denominated in
a foreign currency, and such refinancing would cause the applicable U.S.
dollar-denominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S.
dollar-denominated restriction shall be deemed not to have been exceeded so
long as the principal amount of such refinancing Indebtedness does not exceed
the principal amount of such Indebtedness being refinanced. Notwithstanding any
other provision of this Section 3.3, the maximum amount of Indebtedness
that the Company may Incur pursuant to this Section 3.3 shall not be
deemed to be exceeded solely as a result of fluctuations in the exchange rate
of currencies. The principal amount of any Indebtedness Incurred to refinance
other Indebtedness, if Incurred in a different currency from the Indebtedness
being refinanced, shall be calculated based on the currency exchange rate
applicable to the currencies in which such Refinancing Indebtedness is
denominated that is in effect on the date of such refinancing.

 

SECTION 3.4.   Limitation on Restricted Payments.  (a)  The Company shall not, and shall
not permit any of its Restricted Subsidiaries, directly or indirectly, to:

 

(1)                                   declare
or pay any dividend or make any distribution on or in respect of its Capital
Stock (including any payment in connection with any merger or consolidation
involving the Company or any of its Restricted Subsidiaries) except:

 

(a)                                dividends or distributions payable in Capital
Stock of the Company (other than Disqualified Stock of the Company) or in
options, warrants or other rights to purchase such Capital Stock; and

 

(b)                               dividends or distributions payable to the
Company or a Restricted Subsidiary of the Company or to other holders of Common
Stock of a Restricted Subsidiary of the Company on a pro rata basis;

 

(2)                                   purchase,
redeem, retire or otherwise acquire for value any Capital Stock of the Company
or any direct or indirect parent of the Company held by

 

63

 

Persons other than the Company or a Restricted Subsidiary of the
Company;

 

(3)                                   purchase,
repurchase, redeem, defease or otherwise acquire or retire for value, prior to
scheduled maturity, scheduled repayment or scheduled sinking fund payment, any
Subordinated Obligations or Guarantor Subordinated Obligations (other than the
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Subordinated Obligations or Guarantor Subordinated Obligations purchased in
anticipation of satisfying a sinking fund obligation, principal installment or
final maturity, in each case due within one year of the date of purchase, repurchase,
redemption, defeasance or other acquisition or retirement); or

 

(4)                                   make
any Restricted Investment in any Person;

 

(any such
dividend, distribution, purchase, redemption, repurchase, defeasance, other
acquisition, retirement or Restricted Investment referred to in clauses (1)
through (4) shall be referred to herein as a “Restricted Payment”), if
at the time the Company or such Restricted Subsidiary makes such Restricted
Payment:

 

(a)                                   a
Default shall have occurred and be continuing (or would result therefrom); or

 

(b)                                  (x)
with respect to a Restricted Payment by the Company, the Company is not able to
Incur an additional $1.00 of Indebtedness pursuant to Section 3.3.(a)
after giving effect, on a pro forma basis, to such Restricted Payment; and (y)
with respect to a Restricted Payment by MedQuest or any of its Restricted
Subsidiaries that Guarantees the Senior Subordinated Notes, MedQuest is not
able to incur an additional $1.00 of Indebtedness pursuant to Section
3.3.(a) after giving effect, on a pro forma basis, to such Restricted
Payment; or

 

(c)                                   the
aggregate amount of such Restricted Payment and all other Restricted Payments
declared or made subsequent to August 15, 2002 would exceed the sum of:

 

(i)                                       50% of Consolidated Net Income (it
being understood that for the purposes of calculating Consolidated Net Income
pursuant to this clause (c)(i) only, any of the Company’s non-cash
interest expense and amortization of original issue discount in respect of the
Securities shall be excluded) of the Company (with respect to a Restricted
Payment by the Company) or of MedQuest (with respect to a Restricted Payment by
MedQuest or any of its Restricted Subsidiaries) for the period (treated as one accounting period) from July 1, 2002 to
the end of the most recent fiscal quarter ending prior to the date of such
Restricted Payment for

 

64

 

which financial statements
are publicly available (or, in case such Consolidated Net Income is a deficit,
minus 100% of such deficit);

 

(ii)                                    100% of the aggregate Net Cash Proceeds
(other than in respect of an Excluded Contribution) received by the Company (with
respect to a Restricted Payment by the Company) or by MedQuest (with respect to
a Restricted Payment by MedQuest or any of its Restricted Subsidiaries) from the issue or sale of its Capital Stock
(other than Disqualified Stock) or other capital contributions subsequent to
August 15, 2002 (other than Net Cash Proceeds received from an issuance or sale
of such Capital Stock to a Subsidiary of the Company or an employee stock
ownership plan, option plan or similar trust to the extent such sale to an
employee stock ownership plan, option plan or similar trust is financed by
loans from or Guaranteed by the Company or any of its Restricted Subsidiaries
unless such loans have been repaid with cash on or prior to the date of
determination);

 

(iii)                                 100%
of the fair market value (as determined in good faith by the Board of Directors
of the Company) of shares of Qualified Stock of the Company (with respect to a
Restricted Payment by the Company) or of MedQuest (with respect to a Restricted
Payment by MedQuest or any of its Restricted Subsidiaries) issued to acquire
assets from a third party;

 

(iv)                                the amount by which Indebtedness of the
Company or its Restricted Subsidiaries is reduced on the Company’s balance
sheet or MedQuest’s balance sheet, as the case may be, upon the conversion or
exchange (other than by a Subsidiary of the Company) subsequent to August 15,
2002 of any Indebtedness of the Company or its Restricted Subsidiaries
convertible or exchangeable for Capital Stock (other than Disqualified Stock)
of the Company or MedQuest, as the case may be (less the amount of any cash, or
the fair market value of any other property, distributed by the Company upon
such conversion or exchange); and

 

(v)                                   the amount equal to the net reduction in
Restricted Investments made by the Company or any of its Restricted
Subsidiaries in any Person resulting from:

 

(A)                           repurchases or redemptions of such Restricted
Investments by such Person, proceeds realized upon the sale of such Restricted
Investment (other than to the Company or any of its Restricted Subsidiaries),
repayments of loans or advances or other transfers of assets (including by way
of

 

65

 

dividend or distribution) by
such Person to the Company or any Restricted Subsidiary of the Company; or

 

(B)                             the redesignation of Unrestricted
Subsidiaries as Restricted Subsidiaries of the Company (valued in each case as
provided in the definition of “Investment”) not to exceed, in the case of any
Unrestricted Subsidiary, the amount of Investments previously made by the
Company or any of its Restricted Subsidiaries in such Unrestricted Subsidiary,

 

which amount in each case
under this clause (v) was included in the calculation of the amount of
Restricted Payments; provided, however, that no amount will be included
under this clause (v) to the extent it is already included in Consolidated Net
Income.

 

(b)  The
provisions of Section 3.4(a) will not prohibit:

 

(1)                                   any
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Capital Stock, Disqualified Stock or Subordinated Obligations of the Company
or Guarantor Subordinated Obligations of a Subsidiary Guarantor made by
exchange for, or out of the proceeds of the substantially concurrent sale of,
Capital Stock of the Company or any of its Subsidiaries or cash capital
contributions to the Company (other than Disqualified Stock and other than
Capital Stock issued or sold to a Subsidiary or an employee stock ownership
plan or similar trust to the extent such sale to an employee stock ownership
plan or similar trust is financed by loans from or Guaranteed by the Company or
any of its Restricted Subsidiaries unless such loans have been repaid with cash
on or prior to the date of determination); provided,
however, that (a) such purchase, retirement, prepayment, defeasance
or redemption will be excluded in subsequent calculations of the amount of
Restricted Payments and (b) the Net Cash Proceeds from such sale or cash
capital contributions applied in the manner set forth in this clause (1) will
be excluded from clause (c)(ii) of Section 3.4(a);

 

(2)                                   any
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Subordinated Obligations of the Company or Guarantor Subordinated
Obligations of a Subsidiary Guarantor made by exchange for, or out of the
proceeds of the substantially concurrent sale of, Subordinated Obligations of
the Company or Guarantor Subordinated Obligations of a Subsidiary Guarantor, as
the case may be, that is permitted to be Incurred pursuant to Section 3.3
and that, in each case constitutes Refinancing Indebtedness; provided, however, that such purchase,
retirement, prepayment, defeasance or redemption will be excluded in subsequent
calculations of the amount of Restricted Payments;

 

66

 

(3)                                   any
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Disqualified Stock of the Company or its Restricted Subsidiary made by
exchange for or out of the proceeds of the substantially concurrent sale of
Disqualified Stock of the Company or such Restricted Subsidiary, as the case
may be, that, in each case, constitutes Refinancing Indebtedness; provided, however, that such purchase,
retirement, prepayment, defeasance or redemption will be excluded in subsequent
calculations of the amount of Restricted Payments;

 

(4)                                   so
long as no Default or Event of Default has occurred and is continuing, any
purchase or redemption of Subordinated Obligations or Guarantor Subordinated
Obligations of a Subsidiary Guarantor from Net Available Cash to the extent
permitted under Section 3.7; provided,
however, that such purchase or redemption will be excluded in
subsequent calculations of the amount of Restricted Payments;

 

(5)                                   dividends
paid within 60 days after the date of declaration if at such date of
declaration such dividend would have complied with this Section 3.4; provided however, that such dividends will
be included in subsequent calculations of the amount of Restricted Payments;

 

(6)                                   Investments
that are made with Excluded Contributions; provided,
however, that such Investments will be excluded in subsequent
calculations of the amount of Restricted Payments;

 

(7)                                   so
long as no Default or Event of Default has occurred and is continuing,

 

(a)                                    the
purchase, redemption or other acquisition, cancellation or retirement for value
from any existing or former employees, officers, directors or consultants of
the Company or any Subsidiary of the Company or their assigns, estates or heirs
of Capital Stock, Subordinated Obligations or options, warrants, equity
appreciation rights or other rights to purchase or acquire Capital Stock of the
Company or any Restricted Subsidiary of the Company or any parent of the
Company; provided
that the amount of such redemptions, repurchases, acquisitions, cancellations
or retirements pursuant to this clause shall not exceed in any calendar year $5.0
million (with unused amounts in any calendar year, beginning with calendar year
2002, being carried over to succeeding calendar years subject to a maximum of
$10.0 million) (which amount in any calendar year shall be increased by the
amount of any Net Cash Proceeds to the Company or MedQuest from (i) sales of
Capital Stock of the Company or MedQuest to officers, directors, other
employees or Permitted Holders subsequent to August 15, 2002 to the extent such
amounts are not included under clause (c)(ii) of Section 3.4(a) and (ii)
any “key-man” life insurance policies which are used to make such

 

67

 

repurchases); provided, further, that the cancellation
of Indebtedness owing to the Company from such former officers, directors,
consultants or employees of the Company or any of its Restricted Subsidiaries
in connection with a repurchase of Capital Stock of the Company will not be
deemed to constitute a Restricted Payment under this Indenture; provided,
however, that the amount of any such purchase, redemption or other
acquisition, cancellation or retirement for value will be included in
subsequent calculations of the amount of Restricted Payments; and

 

(b)                                   loans
or advances to officers, directors or other employees of the Company or any
Subsidiary of the Company the proceeds of which are used to purchase Capital
Stock of the Company or MedQuest (x) from Persons other than the Company or
MedQuest in an aggregate amount not to exceed $1.0 million at any one time outstanding
and (y) from the Company or MedQuest so long as the Net Cash Proceeds of any
such purchase, either to the extent directly received by the Company or
MedQuest or contributed to the capital of MedQuest by the Company, are not
included under clause (c)(ii) of Section 3.4(a); provided, however, that the
amount of such loans and advances under clause (x) will be included in
subsequent calculations of the amount of Restricted Payments and the amount of
such loans and advances under clause (y) will be excluded in subsequent
calculations of the amount of Restricted Payments;

 

(8)                                   so
long as no Default or Event of Default has occurred and is continuing, the
declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Company or MedQuest issued in accordance with the
terms of this Indenture to the extent such dividends are included in the
definition of “Consolidated Interest Expense”; provided,
however, that such payment of such dividends will be excluded from
subsequent calculations of the amount of Restricted Payments;

 

(9)                                   repurchases
of Capital Stock deemed to occur upon the exercise of stock options, warrants
or other convertible securities if such Capital Stock represents a portion of
the exercise price thereof; provided,
however, that such repurchases will be excluded from subsequent
calculations of the amount of Restricted Payments;

 

(10)                             any
payments made in connection with the Transactions pursuant to the
Recapitalization Agreement and any other agreements or documents in effect on
August 15, 2002 related to the Transactions and set forth on a Schedule 3.4
(without giving effect to subsequent amendments, waivers or other modifications
to such agreements or documents) or as otherwise described in the Offering
Memorandum, including payments made by MedQuest to the Company to allow the
Company to satisfy its obligations

 

68

 

(including indemnification, purchase price adjustments and transaction
fees and expenses) under such agreements or documents as such agreements or
documents were in effect on August 15, 2002; provided, however, that such amounts will be
excluded from subsequent calculations of the amount of Restricted Payments;

 

(11)                             the
payment of dividends on the Company’s Common Stock or MedQuest’s Common Stock,
following the first public offering of the Company’s Common Stock or MedQuest’s
Common Stock, as applicable, after the Issue Date, of, whichever is earlier,
(i) in the case of the first public offering of MedQuest’s Common Stock, up to
6% per annum of the Net Cash Proceeds received by MedQuest in such public
offering or (ii) in the case of the first public offering of the Company’s
Common Stock, up to 6% per annum of the amount contributed by the Company to MedQuest
from the Net Cash Proceeds received by the Company in such public offering, in
each case, other than public offerings of the Company or MedQuest’s Common
Stock registered on Form S-4 or S-8; provided, however, that such payments will
be included in subsequent calculations of the amount of Restricted Payments;

 

(12)                             the
repurchase, redemption or other acquisition or retirement for value of
Subordinated Obligations of the Company pursuant to a “change of control”
covenant set forth in the indenture or other agreement pursuant to which the
same is issued, provided that (i) such “change of control” covenant is
substantially identical in all material respects to Section 3.9 in this
Indenture; (ii) such repurchase, redemption or other acquisition or retirement
for value shall only be permitted if all the terms and conditions in such
provisions have been complied with and such repurchases, redemptions or other
acquisitions or retirements for value are made in accordance with such
indenture or other agreement pursuant to which the same is issued; (iii) that
the Company has repurchased all Securities required to be repurchased by the
Company pursuant to the terms and conditions described in Section 3.9
prior to the repurchase, redemption or other acquisition or retirement for
value of such Subordinated Obligations pursuant to the “change of control”
covenant included in such indenture or other agreement; and (iv) that such
repurchase, redemption or other acquisition shall be excluded in subsequent
calculations of the amount of Restricted Payments;

 

(13)                             the
declaration and payment of dividends and other distributions to holders of the
Company’s Capital Stock with the proceeds (net of discount and commissions to
the initial purchasers) received by the Company from the sale of the Initial
Securities; provided, however, that such amounts will be
excluded from subsequent calculations of the amount of Restricted Payments;

 

69

 

(14)                             the
redemption, repurchase, retirement or other acquisition for value of the Series
A Preferred Stock and Series B Preferred Stock in existence on the Issue Date
as contemplated in accordance with the terms thereof upon the occurrence of a
Qualified Public Offering to the extent the proceeds of such Qualified Public
Offering are received by the Company; and

 

(15)                             other
Restricted Payments not to exceed $5.0 million at any one time outstanding provided,
however, that such amounts will be included in subsequent
calculations of the amount of Restricted Payments.

 

The amount of
all Restricted Payments (other than cash) shall be the fair market value on the
date of such Restricted Payment of the asset(s) or securities proposed to be
paid, transferred or issued by the Company or such Restricted Subsidiary, as
the case may be, pursuant to such Restricted Payment. The fair market value of
any cash Restricted Payment shall be its face amount and any non-cash
Restricted Payment shall be determined conclusively by the Board of Directors
of the Company acting in good faith, whose resolution with respect thereto
shall be delivered to the Trustee, such determination to be based upon an
opinion or appraisal issued by an accounting, appraisal or investment banking
firm of national standing if such fair market value is estimated in good faith
by the Board of Directors of the Company to exceed $25.0 million. Not later
than the date of making any Restricted Payment, the Company shall deliver to
the Trustee an Officers’ Certificate stating that such Restricted Payment is
permitted and setting forth the basis upon which the calculations required by
this Section 3.4 were computed, together with a copy of any opinion or
appraisal required by this Indenture.

 

(c) 
Notwithstanding any of the foregoing provisions of this Section 3.4, so
long as any Senior Subordinated Notes are outstanding, if and to the extent
MedQuest or any of its Restricted Subsidiaries would be permitted to make a
Restricted Payment (as defined in the Senior Subordinated Notes Indenture)
pursuant to the Senior Subordinated Notes Indenture, MedQuest or such
Restricted Subsidiary, as the case may be, shall be permitted to make hereunder
a Restricted Payment permitted to be made thereunder.

 

SECTION 3.5.   Limitation on Liens.  The Company will not, and will not permit
any Subsidiary Guarantor to, directly or indirectly, create, Incur or suffer to
exist any Lien (other than Permitted Liens) upon any of its property or assets
(including Capital Stock of Restricted Subsidiaries of the Company), whether
owned on the date hereof or acquired after that date, which Lien is securing
any Indebtedness of the Company or, in the case of a Subsidiary Guarantor, any
Guarantee of Indebtedness of the Company, unless contemporaneously with the
Incurrence of the Liens effective provision is made to secure the Indebtedness
due under the Securities or, in respect of Liens on any Subsidiary Guarantor’s
property or assets securing Indebtedness of the Company, the Guarantee by such
Subsidiary Guarantor of the Securities, equally and ratably with (or prior to
in the case of Liens with respect to Subordinated Obligations or Guarantor
Subordinated Obligations, as the case may be) the Indebtedness secured by such
Lien for so long as such Indebtedness is so secured.

 

SECTION 3.6.   Limitation on Restrictions on
Distributions from Restricted Subsidiaries.  (a)  The Company shall not, and shall not permit any of its
Restricted Subsidiaries

 

70

 

to, create or otherwise cause or permit to exist or become effective
any consensual encumbrance or consensual restriction on the ability of any of
its Restricted Subsidiaries to:

 

(1)                                   pay
dividends or make any other distributions on its Capital Stock or pay any
Indebtedness or other obligations owed to the Company or any other Restricted
Subsidiary (it being understood that the priority of any preferred stock in
receiving dividends or liquidating distributions prior to dividends or
liquidating distributions being paid on Common Stock shall not be deemed a
restriction on the ability to make distributions on Capital Stock);

 

(2)                                   make
any loans or advances to the Company or any other Restricted Subsidiary (it
being understood that the subordination of loans or advances made to the
Company or any of its Restricted Subsidiaries to other Indebtedness Incurred by
the Company or any of its Restricted Subsidiaries shall not be deemed a
restriction on the ability to make loans or advances); or

 

(3)                                   transfer
any of its property or assets to the Company or any of its Restricted
Subsidiaries.

 

(b)  The
preceding provisions will not prohibit:

 

(i)                                       any encumbrance or restriction pursuant to an
agreement in effect at or entered into on the Issue Date and identified in Schedule
3.6, including, without limitation, this Indenture, the Securities, the
Senior Credit Agreement and the Senior Subordinated Notes Indenture in effect
on such date;

 

(ii)                                    any encumbrance or restriction with respect
to a Restricted Subsidiary pursuant to an agreement relating to any Capital
Stock or Indebtedness Incurred by a Restricted Subsidiary on or before the date
on which such Restricted Subsidiary was acquired by the Company (other than
Capital Stock or Indebtedness Incurred as consideration in, or to provide all
or any portion of the funds utilized to consummate, the transaction or series
of related transactions pursuant to which such Restricted Subsidiary became a
Restricted Subsidiary or was acquired by the Company or in contemplation of the
transaction) and outstanding on such date;

 

(iii)                                 any encumbrance or restriction with respect
to a Restricted Subsidiary pursuant to an agreement effecting a refunding,
replacement or refinancing of Indebtedness Incurred pursuant to an agreement
referred to in clause (i) or (ii) of this paragraph or this clause (iii) or
contained in any amendment to an agreement referred to in clause (i) or (ii) of
this paragraph or this clause (iii); provided,
however, that the encumbrances
and restrictions with

 

71

 

respect to such Restricted
Subsidiary contained in any such agreement or amendment, taken as a whole, are
no less favorable in any material respect to the Holders of the Securities than
the encumbrances and restrictions contained in such agreements referred to in clauses
(i) or (ii) of this paragraph on the Issue Date or the date such Restricted
Subsidiary became a Restricted Subsidiary, whichever is applicable;

 

(iv)                                in the case of clause (3) of Section
3.6(a), any encumbrance or restriction:

 

(a)                               that restricts in a customary manner the
subletting, assignment or transfer of any property or asset that is subject to
a lease, license or similar contract, or the assignment or transfer of any such
lease, license or other contract;

 

(b)                              contained in mortgages, pledges, or other
security agreements permitted under this Indenture securing Indebtedness of the
Company or its Restricted Subsidiary to the extent such encumbrances or
restrictions restrict the transfer of the property subject to such mortgages,
pledges, or other security agreements; or

 

(c)                               pursuant to customary provisions restricting
dispositions of real property interests set forth in any reciprocal easement
agreements of the Company or any of its Restricted Subsidiaries;

 

(v)                                   (a) 
purchase money obligations for property acquired in the ordinary course
of business and (b) Capitalized Lease Obligations permitted under this
Indenture, in each case, that impose encumbrances or restrictions of the nature
described in clause (3) of Section 3.6(a) on the property so acquired;

 

(vi)                                any Purchase Money Note or other Indebtedness
or contractual requirements Incurred with respect to a Qualified Receivables
Transaction relating exclusively to a Receivables Entity that, in the good
faith determination of the Board of Directors, are necessary to effect such
Qualified Receivables Transaction;

 

(vii)                             any restriction with respect to a Restricted
Subsidiary (or any of its property or assets) imposed pursuant to an agreement
entered into for the direct or indirect sale or disposition of the Capital
Stock or assets of such Restricted Subsidiary (or the property or assets that

 

72

 

are subject to such
restriction) pending the closing of such sale or disposition;

 

(viii)                          customary provisions in joint venture
agreements and other similar agreements entered into in the ordinary course of
business;

 

(ix)                                  net worth provisions in leases and other
agreements entered into by the Company or any of its Restricted
Subsidiaries in the ordinary course of business;

 

(x)                                     encumbrances or restrictions arising or
existing by reason of applicable law or any applicable rule, regulation or
order; and

 

(xi)                                  Indebtedness
incurred by Restricted Subsidiaries of the Company pursuant to the Section
3.3(a);  provided either (x) the provisions relating to such
encumbrance or restriction contained in such Indebtedness, taken as a whole,
are no less favorable to the Company in any material respect as determined by
the Board of Directors of the Company in its reasonable and good faith judgment
than the provisions contained in the Senior Credit Agreement, the Senior
Subordinated Notes Indenture or herein, in each case, as in effect on the date
hereof or (y) any encumbrance or restriction contained in such Indebtedness
does not prohibit (except upon a default or event of default thereunder) the
payment of dividends in an amount sufficient, as determined by the Board of
Directors of the Company in its reasonable and good faith judgment, to make
scheduled payments of cash interest on the Securities beginning on February 15,
2009;

 

SECTION 3.7.   Limitation on Sales of Assets and
Subsidiary Stock.  (a)  The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
make any Asset Disposition unless:

 

(1)                                   the
Company or such Restricted Subsidiary, as the case may be, receives
consideration at the time of contractually agreeing to such Asset Disposition
at least equal to the fair market value, as
determined in good faith by the Board of Directors (including as to the value
of all non-cash consideration), of the shares and assets subject to such Asset
Disposition;

 

(2)                                   at
least 75% of the consideration from such Asset Disposition received by the
Company or such Restricted Subsidiary, as the case may be, is in the form of
cash or Cash Equivalents; and

 

(3)                                   an
amount equal to 100% of the Net Available Cash from such Asset Disposition is
applied by the Company or such Restricted Subsidiary, as the case may be:

 

73

 

(a)                                    first,
to the extent the Company or any of its Restricted Subsidiaries, as the case
may be, elects (or is required by the terms of any Indebtedness), to prepay,
repay or purchase Indebtedness of the Company or Indebtedness (other than any
Disqualified Stock or Guarantor Subordinated Obligation) of a Restricted
Subsidiary (in each case other than Indebtedness owed to the Company or an
Affiliate of the Company) within 365 days from the later of the date of such
Asset Disposition or the receipt of such Net Available Cash; provided,
however, that, in connection with any prepayment, repayment or
purchase of Indebtedness pursuant to this clause (a), the Company or such
Restricted Subsidiary will retire such Indebtedness and will cause the related
commitment (if any) to be permanently reduced in an amount equal to the
principal amount so prepaid, repaid or purchased; and

 

(b)                                   second,
to the extent of the balance of such Net Available Cash after application in
accordance with clause (a), to the extent the Company or such Restricted Subsidiary elects, to invest in
Additional Assets within 365 days from the later of the date of such Asset
Disposition or the receipt of such Net Available Cash;

 

provided that pending the final application of
any such Net Available Cash in accordance with clause (a) or clause (b) above,
the Company and its Restricted Subsidiaries may temporarily reduce Indebtedness
or otherwise invest such Net Available Cash in any manner not prohibited by
this Indenture.

 

(b)           Any Net Available Cash from Asset
Dispositions that are not applied or invested as provided in Section 3.7(a)
will be deemed to constitute “Excess Proceeds.” On the 366th day after
an Asset Disposition, if the aggregate amount of Excess Proceeds exceeds $20.0
million, the Company will be required to make an offer (“Asset Disposition
Offer”) to all Holders of Securities and, to the extent required by the
terms of other Indebtedness of the Company ranking equally in right of payment
to the Securities, to all holders of such other Indebtedness outstanding with
similar provisions requiring the Company to make an offer to purchase such
Indebtedness with the proceeds from any Asset Disposition (“Pari Passu Notes”),
to purchase, on a ratable basis, the maximum principal amount at maturity of
Securities and any such Pari Passu Notes to which the Asset Disposition Offer
applies that may be purchased out of the Excess Proceeds, at an offer price in
cash in an amount equal to the sum of (A) 100% of the Accreted Value of the
Securities, and (B) 100% of the principal amount of the Pari Passu Notes, plus,
in each case, accrued and unpaid cash interest (including Additional Interest)
to the date of purchase, in accordance with the procedures set forth in this
Indenture or the agreements governing the Pari Passu Notes, as applicable, in
each case in integral multiples of $1,000 principal amount at maturity.  To the extent that the aggregate principal
amount at maturity of Securities and Pari Passu Notes so validly tendered and
not properly withdrawn pursuant to an Asset Disposition Offer is less than the
Excess Proceeds, the Company may use any remaining Excess Proceeds for general
corporate purposes subject to the other covenants contained in this

 

74

 

Indenture. 
If the aggregate principal amount at maturity of Securities surrendered
by Holders thereof and other Pari Passu Notes surrendered by holders or
lenders, collectively, exceeds the amount of Excess Proceeds, the Trustee shall
select the Securities and Pari Passu Notes to be purchased on a pro rata basis
on the basis of the aggregate principal amount at maturity of tendered
Securities and Pari Passu Notes. Upon completion of such Asset Disposition
Offer, the amount of Excess Proceeds shall be reset at zero.

 

(c)(1)       The Asset Disposition Offer will remain
open for a period of 20 Business Days following its commencement, except to the
extent that a longer period is required by applicable law (the “Asset
Disposition Offer Period”). No later than five Business Days after the
termination of the Asset Disposition Offer Period (the “Asset Disposition
Purchase Date”), the Company will purchase the principal amount at maturity
of Securities and Pari Passu Notes required to be purchased pursuant to this Section
3.7 (the “Asset Disposition Offer Amount”) or, if less than the
Asset Disposition Offer Amount has been so validly tendered, all Securities and
Pari Passu Notes validly tendered in response to the Asset Disposition Offer.

 

(2)  If the Asset Disposition Purchase Date is on
or after an interest record date and on or before the related interest payment
date, any accrued and unpaid cash interest will be paid to the Person in whose
name a Security is registered at the close of business on such record date, and
no additional interest will be payable to Holders of the Securities who tender
Securities pursuant to the Asset Disposition Offer.

 

(3)  On or before the Asset Disposition Purchase
Date, the Company will, to the extent lawful, accept for payment, on a pro rata
basis to the extent necessary, the Asset Disposition Offer Amount of Securities
and Pari Passu Notes or portions of Securities and Pari Passu Notes so validly
tendered and not properly withdrawn pursuant to the Asset Disposition Offer, or
if less than the Asset Disposition Offer Amount has been validly tendered and
not properly withdrawn, all Securities and Pari Passu Notes so validly tendered
and not properly withdrawn, in each case in integral multiples of $1,000
principal amount at maturity.  The
Company will deliver to the Trustee an Officers’ Certificate stating that such
Securities or portions thereof were accepted for payment by the Company in
accordance with the terms of this Section 3.7 and, in addition, the
Company will deliver all certificates and notes required, if any, by the
agreements governing the Pari Passu Notes. The Company or the Paying Agent, as
the case may be, will promptly (but in any case not later than five Business
Days after termination of the Asset Disposition Offer Period) mail or deliver
to each tendering Holder of Securities or holder or lender of Pari Passu Notes,
as the case may be, an amount equal to the purchase price of the Securities or
Pari Passu Notes so validly tendered and not properly withdrawn by such holder
or lender, as the case may be, and accepted by the Company for purchase, and
the Company will promptly issue a new Security, and the Trustee, upon delivery
of an Officers’ Certificate from the Company will authenticate and mail or
deliver such new Security to such Holder, in a principal amount equal to any
unpurchased portion of the Security surrendered; provided that each such new Security will be in a principal
amount at maturity of $1,000 or an integral multiple of principal amount at
maturity of $1,000.  In addition, the
Company will take any and all other actions required by the agreements
governing the Pari Passu Notes. Any Security not so accepted will be promptly
mailed or delivered by the Company to the Holder thereof. The Company will
publicly announce the results of the Asset Disposition Offer on or prior to the
Asset Disposition Purchase Date.

 

75

 

For the
purposes of this Section 3.7, the following will be deemed to be cash:

 

(1)                                   the
assumption by the transferee of Indebtedness (other than Subordinated
Obligations or Disqualified Stock) of the Company or Indebtedness (other than
Guarantor Subordinated Obligations or Preferred Stock) of any Restricted
Subsidiary of the Company and the release of the Company or such Restricted
Subsidiary from all liability on such Indebtedness in connection with such
Asset Disposition (in which case the Company will, without further action, be
deemed to have applied such deemed cash to Indebtedness in accordance with Section
3.7(a) above);

 

(2)                                   properties
and assets to be owned by the Company or any of its Restricted Subsidiaries and
used in a business that is a Related Business engaged in business activities of
the kind performed by the Company on the Issue Date (a “Similar Business”) or
Capital Stock in one or more Persons engaged in a Similar Business that are or
thereby become Restricted Subsidiaries of the Company (in which case the
Company will, without further action, be deemed to have applied such deemed
cash to an investment in Additional Assets in accordance with Section
3.7(a)(3)(b) above); and

 

(3)                                   securities,
notes or other obligations received by the Company or any Restricted Subsidiary
of the Company from the transferee that are promptly converted by the Company
or such Restricted Subsidiary into cash.

 

(d)           The Company will
comply, to the extent applicable, with the requirements of Section 14(e) of the
Exchange Act and any other securities laws or regulations in connection with
the repurchase of Securities pursuant to this Section 3.7.
To the extent that the provisions of any securities laws or regulations
conflict with provisions of this Section 3.7, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Indenture by virtue of any conflict.

 

(e)           The provisions under
this Section 3.7 relative to the Company’s obligations to make an offer
to repurchase the Securities as a result of an Asset Disposition may be waived
or modified with the written consent of the Holders of a majority in principal
amount of the Securities.

 

SECTION 3.8.   Limitation on Affiliate Transactions.  (a)  The Company shall not, and shall
not permit any of its Restricted Subsidiaries to, directly or indirectly, enter
into or conduct any transaction (including the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate of
the Company (an “Affiliate Transaction”) unless:

 

(1)                                   the
terms of such Affiliate Transaction are no less favorable to the Company or
such Restricted Subsidiary, as the case may be, than those that could be
obtained in a comparable transaction at the time of such 

 

76

 

transaction in arm’s-length dealings with a Person who is not such an
Affiliate;

 

(2)                                   in
the event such Affiliate Transaction involves aggregate consideration in excess
of $5.0 million, the terms of such transaction have been approved by a majority
of the members of the Board of Directors of the Company and by a majority of
the members of such Board having no personal stake in such transaction, if any
(and such majority or majorities, as the case may be, determines that such
Affiliate Transaction satisfies the criteria in clause (1) above); and

 

(3)                                   in
the event such Affiliate Transaction involves aggregate consideration in excess
of $10.0 million, the Company has received a written opinion from an
independent investment banking, accounting or appraisal firm of nationally
recognized standing that such Affiliate Transaction is not materially less
favorable than those that could reasonably have been obtained in a comparable
transaction at such time on an arm’s-length basis from a Person that is not an
Affiliate.

 

(b)  Section
3.8(a) will not apply to:

 

(1)                                   any
Restricted Payment (other than a Restricted Investment) permitted to be made
pursuant to Section 3.4 of this Indenture;

 

(2)                                   any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment agreements and
arrangements, options to purchase Capital Stock of the Company or MedQuest and
equity ownership, restricted stock plans, long-term incentive plans, stock
appreciation rights plans, participation plans or similar employee benefits
plans approved by the Board of Directors;

 

(3)                                   the
grant of options (and the exercise thereof) to purchase Capital Stock of the
Company or MedQuest or similar rights to employees and directors of the Company
or MedQuest pursuant to plans approved by the Board of Directors;

 

(4)                                   loans
or advances to employees, officers or directors in the ordinary course of
business of the Company or any of its Restricted Subsidiaries but in any event
not to exceed $5.0 million in the aggregate outstanding at any one time with
respect to all loans or advances made since the Issue Date;

 

(5)                                   any
transaction between the Company and its Restricted Subsidiary (other than a
Receivables Entity) or between Restricted Subsidiaries of the Company (other
than a Receivables Entity or Receivables Entities) and Guarantees issued by the
Company or its Restricted Subsidiary for the benefit of the Company or its
Restricted Subsidiary, as the case may be, in accordance with Section 3.3;

 

77

 

(6)                                   the
payment of reasonable and customary fees paid to, and indemnity provided on
behalf of, officers, directors or employees of the Company or any Restricted
Subsidiary of the Company or the payment of any director’s and officer’s
insurance premiums;

 

(7)                                   the
performance of obligations of the Company or any of its Restricted Subsidiaries
under the terms of any agreement to which the Company or any of its Restricted
Subsidiaries is a party as of or on the Issue Date (including the
Recapitalization Agreement, the Senior Credit Agreement, the Stockholders’
Agreement, the registration rights agreement, dated as of August 15, 2002,
among the Company and the stockholders of the Company parties thereto, and the
Senior Subordinated Notes Indenture, but excluding the leases and rental
agreements referred to in clause (11)), in each case, as these agreements may
be amended, modified, supplemented, extended or renewed from time to time; provided,
however, that any future amendment, modification, supplement, extension
or renewal entered into after the Issue Date will be permitted to the extent
that its terms are not more disadvantageous to the Holders of the Securities
than the terms of the agreements in effect on the Issue Date;

 

(8)                                   sales
or other transfers or dispositions of accounts receivable and other related
assets customarily transferred in an asset securitization transaction involving
accounts receivable to a Receivables Entity in a Qualified Receivables
Transaction, and acquisitions of Permitted Investments in connection with a
Qualified Receivables Transaction;

 

(9)                                   transactions
with suppliers or other purchasers for the sale or purchase of goods in the
ordinary course of business and otherwise in accordance with the terms of this
Indenture which are fair to the Company and its Restricted Subsidiaries, in the
good faith determination of the Board of Directors of the Company or the senior
management of the Company, and are on terms at least as favorable as might
reasonably have been obtained from an unaffiliated party;

 

(10)                             the
issuance of Capital Stock (other than Disqualified Stock) of the Company or
MedQuest to any Permitted Holder or any Related Person;

 

(11)                             the
performance by the Company and its Restricted Subsidiaries of their obligations
under leases and rental agreements with Image Properties, LLC (a) which leases
and rental agreements are in existence on the Issue Date and any extensions,
renewals or replacements thereof which are entered into from time to time after
the Issue Date so long as such extensions, renewals or replacements are
approved by a majority of the disinterested members of the Board of Directors
of the Company and determined to be no less favorable to the Company or such
Restricted Subsidiary than those that could be obtained in a comparable
transaction at the time of such extension, renewal or replacement in
arm’s-length

 

78

 

dealings with a Person who is not an Affiliate and (b) which leases and
rental agreements are entered into after the Issue Date, and any extensions,
renewals or replacements thereof, so long as (i) such transactions are approved
by a majority of the disinterested members of the Board of Directors of the
Company, (ii) such transactions are determined to be no less favorable to the
Company or such Restricted Subsidiary than those that could be obtained in a
comparable transaction at the time of such lease or rental agreement in
arm’s-length dealings with a Person who is not an Affiliate and (iii) the
rental expense to be paid in the aggregate under all such leases and rental
agreements entered into following the Issue Date shall not exceed $2.5 million
per year; and

 

(12)                             the
provision by Persons who may be deemed Affiliates or stockholders of the
Company (other than J.P. Morgan Partners, LLC and Persons directly or
indirectly controlled by J.P. Morgan Partners, LLC) of investment banking,
commercial banking, trust, lending or financing, investment, underwriting,
placement agent, financial advisory or similar services to the Company or its
Subsidiaries performed after the Issue Date.

 

(c) 
Notwithstanding the foregoing provisions of this Section 3.8, so long as
any Senior Subordinated Notes are outstanding, if and to the extent any action
by MedQuest or any of its Restricted Subsidiaries is not deemed to be an
Affiliate Transaction (as defined in the Senior Subordinated Notes Indenture)
under the Senior Subordinated Notes Indenture, such action by MedQuest or such
Restricted Subsidiary, as the case may be, shall not be deemed to be an
Affiliate Transaction hereunder and, therefore, will not be subject to the
provisions of this Section 3.8.

 

SECTION 3.9.   Change of Control.  If a Change of Control occurs, each
registered Holder of Securities will have the right to require the Company to
repurchase all or any part (equal to $1,000 of principal amount at maturity or
an integral multiple thereof) of such Holder’s Securities at a purchase price
in cash equal to 101% of the Accreted Value of the Securities, plus (x) if the
Change of Control Payment Date occurs prior to August 15, 2008, accrued and
unpaid Additional Interest, if any, to the date of purchase or (y) if the
Change of Control Payment Date occurs on or after August 15, 2008, accrued and
unpaid cash interest (including Additional Interest), if any, to the date of
purchase, (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date); provided,
however, that notwithstanding the foregoing, the Company shall not
be obligated to repurchase the Securities pursuant to this Section 3.9
if the Company has exercised its right to redeem all of the Securities pursuant
to the terms of Section 5.1.

 

Within 30 days
following any Change of Control, the Company shall mail a notice (the “Change
of Control Offer”) to each registered Holder, with a copy to the Trustee,
stating:

 

(1)                                   that a Change of Control has occurred and
that such Holder has the right to require the Company to purchase such Holder’s
Securities at a purchase price in cash equal to 101% of the Accreted
Value of the Securities, plus

 

79

 

(x) if the
Change of Control Payment Date occurs prior to August 15, 2008, accrued and
unpaid Additional Interest, if any, to the date of purchase or (y) if the
Change of Control Payment Date occurs on or after August 15, 2008, accrued and
unpaid cash interest (including Additional Interest), if any, to the date of
purchase (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date) (the
“Change of Control Payment”);

 

(2)                                   the repurchase date (which shall be no
earlier than 30 days nor later than 60 days from the date such notice is
mailed) (the “Change of Control Payment Date”); and

 

(3)                                   the procedures determined by the Company,
consistent with this Indenture, that a Holder must follow in order to have its
Securities repurchased.

 

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

 

(1)                                   accept for payment all Securities or portions
of Securities (in integral multiples of $1,000 of principal amount at maturity)
properly tendered pursuant to the Change of Control Offer;

 

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

 

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

 

The Paying
Agent shall promptly mail to each Holder of Securities so tendered the Change
of Control Payment for such Securities, and the Trustee shall promptly authenticate
and mail (or cause to be transferred by book entry) to each Holder a new
Security equal in principal amount at maturity to any unpurchased portion of
the Securities surrendered, if any; provided
that each such new Security shall be in a principal amount at
maturity of $1,000 or an integral multiple of $1,000 of principal amount at
maturity.

 

If the Change
of Control Payment Date is on or after an interest record date and on or before
the related interest payment date, any accrued and unpaid cash interest, if
any, will be paid to the Person in whose name a Security is registered at the
close of business on such record date, and no additional interest will be
payable to Holders who tender pursuant to the Change of Control Offer.

 

The Company
shall not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in this
Indenture applicable to a

 

80

 

Change of Control Offer made by the Company
and purchases all Securities validly tendered and not withdrawn under such
Change of Control Offer.

 

The Company
shall comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other securities laws or regulations in connection
with the repurchase of Securities pursuant to this Section 3.9.  To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Indenture, the
Company will comply with the applicable securities laws and regulations and
shall not be deemed to have breached its obligations described in this
Indenture by virtue of the conflict.

 

SECTION 3.10.   Limitation on Sale of Capital Stock of
Restricted Subsidiaries.  The
Company shall not, and shall not permit any Restricted Subsidiary of the
Company to, transfer, convey, sell, lease or otherwise dispose of any Voting
Stock of any Restricted Subsidiary of the Company or to issue any of the Voting
Stock of a Restricted Subsidiary of the Company (other than, if necessary,
shares of its Voting Stock constituting directors’ qualifying shares or shares
of Voting Stock required by applicable healthcare laws to be held by Persons
other than the Company) to any Person except:

 

(1)                                   to the Company or a Wholly-Owned Subsidiary
(other than a Receivables Entity); or

 

(2)                                   in compliance with Section 3.7 and
immediately after giving effect to such issuance or sale, such Restricted
Subsidiary would either (a) continue to be a Restricted Subsidiary of the
Company or (b) if such Restricted Subsidiary would no longer be a
Restricted Subsidiary of the Company, any Investment in such Person remaining
after giving effect to such issuance or sale would have been permitted to be
made pursuant to Section 3.4 if made on the date of such issuance or
sale.

 

Notwithstanding
the preceding paragraph, the Company may sell all the Voting Stock of a
Restricted Subsidiary of the Company as long as the Company complies with the
terms of Section 3.7.

 

SECTION 3.11.   Future Subsidiary Guarantors.  The Company shall cause each Domestic
Restricted Subsidiary (other than a Receivables Entity) that Guarantees any
Indebtedness of the Company (other than Indebtedness and other obligations
under the Senior Credit Agreement, the Senior Subordinated Notes and the
Guarantees of other Indebtedness of the Company consisting solely of Guarantees
of Indebtedness of one or more of the Company’s Subsidiaries) to execute and
deliver to the Trustee a supplemental indenture, in the form set forth as Exhibit
C, pursuant to which such Subsidiary will Guarantee payment of the
Securities.  The obligations of each
Guarantor, if any, under its Notes Guarantee will be limited to the maximum
amount as will, after giving effect to all other contingent and fixed
liabilities of such Guarantor (including, without limitation, any guarantees
under the Senior Credit Agreement and the Senior Subordinated Notes Indenture)
and after giving effect to any collections from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other
Guarantor under its Notes Guarantee, result in the obligations of such
Guarantor under its Notes Guarantee not constituting a fraudulent conveyance or
fraudulent transfer under federal or state law and not

 

81

 

otherwise being void or voidable under any similar laws affecting the
rights of creditors generally.

 

A Guarantor shall be released from its obligations
under its Notes Guarantee upon the occurrence of certain events as specified in
the supplemental indenture constituting its Notes Guarantee.

 

SECTION 3.12.   Limitation on Lines of Business.  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, engage in any business other than a
Related Business.

 

SECTION 3.13.   Maintenance of Office or Agency.  The Company will maintain in The City of
New York, an office or agency where the Securities may be presented or
surrendered for payment, where, if applicable, the Securities may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities and this Indenture
may be served.  The principal corporate
trust office of the Trustee, or if the Trustee’s principal corporate trust
office is not located in The City of New York, any other office or agency
maintained by the Trustee in The City of New York (the “Corporate Trust
Office”), shall be such office or agency of the Company, unless the Company
shall designate and maintain some other office or agency for one or more of
such purposes.  The Company will give
prompt written notice to the Trustee of any change in the location of any such
office or agency.  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,
surrenders, 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, surrenders, notices and demands.

 

The Company
may also from time to time designate one or more other offices or agencies (in
or outside of The City of New York) where the Securities may be presented
or surrendered for any or all such purposes and may from time to time rescind
any such designation; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain an office or agency in The City of New York
for such purposes.  The Company will
give prompt written notice to the Trustee of any such designation or rescission
and any change in the location of any such other office or agency.

 

SECTION 3.14.   Corporate Existence.  Subject to Article IV, the Company
shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence and the corporate, partnership,
limited liability or other existence of each Restricted Subsidiary and the
rights (charter and statutory) licenses and franchises of the Company and each
Restricted Subsidiary; provided, however, that the Company shall
not be required to preserve any such existence (except the Company), right,
license or franchise if the Board of Directors of the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and each of its Restricted Subsidiaries, taken as a
whole, and that the loss thereof would not have a material adverse effect on
the ability of the Company to perform its obligations under the Securities or
this Indenture, and provided, further,
the Company and each of its Restricted Subsidiaries may merge in accordance
with Section 4.1.

 

82

 

SECTION 3.15.   Payment of Taxes and Other Claims.  The Company shall pay or discharge or cause
to be paid or discharged, before the same shall become delinquent, (i) all
material taxes, assessments and governmental charges levied or imposed upon the
Company or any Restricted Subsidiary or upon the income, profits or property of
the Company or any Restricted Subsidiary and (ii) all lawful claims for
labor, materials and supplies, which, if unpaid, might by law become a material
liability or lien upon the property of the Company or any Restricted
Subsidiary; provided,
however, that the Company shall not be required to pay or discharge
or cause to be paid or discharged any such tax, assessment, charge or claim
whose amount, applicability or validity is being contested in good faith by
appropriate proceedings and for which appropriate reserves, if necessary (in
the good faith judgment of management of the Company), are being maintained in
accordance with GAAP or where the failure to pay or discharge the same would
not have a material adverse effect on the ability of the Company to perform its
obligations under the Securities or this Indenture.

 

SECTION 3.16.   Payments for Consent.  Neither the Company nor any of its
Restricted Subsidiaries shall, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fees or otherwise, to any Holder
of any Securities for or as an inducement to any consent, waiver or amendment
of any of the terms or provisions of this Indenture or the Securities unless
such consideration is offered to be paid or is paid to all Holders of the
Securities that consent, waive or agree to amend in the time frame set forth in
the solicitation documents relating to such consent, waiver or amendment.

 

SECTION 3.17.   Compliance Certificate.  The Company shall deliver to the Trustee
within 120 days after the end of each fiscal year of the Company an Officers’
Certificate stating that in the course of the performance by the signers of
their duties as Officers of the Company they would normally have knowledge of
any Default or Event of Default and whether or not the signers know of any
Default or Event of Default that occurred during such previous fiscal year.  If they do, the certificate shall describe
the Default or Event of Default, its status and the action the Company is
taking or proposes to take with respect thereto.  The Company also shall comply with TIA § 314(a)(4).

 

SECTION 3.18.   Further Instruments and Acts.  Upon request of the Trustee, the Company
will execute and deliver such further instruments and do such further acts as
may be reasonably necessary or proper to carry out more effectively the purpose
of this Indenture.

 

SECTION 3.19.   Statement by Officers as to Default.  The Company shall deliver to the Trustee, as
soon as possible and in any event within 30 days after the Company becomes
aware of the occurrence of any Event of Default or an event which, with notice
or the lapse of time or both, would constitute an Event of Default, an
Officers’ Certificate setting forth the details of such Event of Default or
default, its status and the action which the Company proposes to take with
respect thereto.

 

83

 

ARTICLE IV

 

Successor
Company 

 

SECTION 4.1.   Merger and Consolidation.  The
Company shall not consolidate with or merge with or into, or convey, transfer
or lease all or substantially all its assets to, any Person, unless:

 

(1)                                   the resulting, surviving or transferee Person
(the “Successor Company”) shall be a corporation, partnership, trust or
limited liability company organized and existing under the laws of the United
States of America, any State of the United States or the District of Columbia
and the Successor Company (if not the Company) shall expressly assume, by
supplemental indenture, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all the obligations of the Company under the
Securities and this Indenture;

 

(2)                                   immediately after giving effect to such
transaction (and treating any Indebtedness that becomes an obligation of the
Successor Company or any Subsidiary of the Successor Company as a result of
such transaction as having been Incurred by the Successor Company or such
Subsidiary at the time of such transaction), no Default or Event of Default
shall have occurred and be continuing;

 

(3)                                   immediately after giving effect to such
transaction, the Successor Company would be able to Incur at least an
additional $1.00 of Indebtedness pursuant to clause (x) of Section 3.3(a)(1);

 

(4)                                   each Guarantor (unless it is the other party
to the transactions above, in which case clause (1) shall apply), if any, shall
have by supplemental indenture confirmed that its Notes Guarantee, if any,
shall apply to such Person’s obligations in respect of this Indenture and the
Securities and its obligations under the Registration Rights Agreement shall
continue to be in effect; and

 

(5)                                   the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger or transfer and such supplemental indenture (if any)
comply with this Indenture.

 

For purposes
of this Section 4.1, the sale, lease, conveyance, assignment, transfer,
or other disposition of all or substantially all of the properties and assets
of one or more Subsidiaries of the Company, which properties and assets, if
held by the Company instead of such Subsidiaries, would constitute all or
substantially all of the properties and assets of the Company on a consolidated
basis, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.

 

84

 

The Successor
Company shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture, but, in the case of a lease of
all or substantially all its assets, the predecessor Company will not be
released from the obligation to pay the principal of and interest on the
Securities.  Solely for the purpose of
computing amounts described in clause (c)(i) of Section 3.4(a), the
Successor Company shall only be deemed to have succeeded and be substituted for
the Company with respect to periods subsequent to the effective time of such
merger, consolidation, combination or transfer of assets.

 

The Company
shall not permit any Subsidiary Guarantor (if any) to consolidate with or merge
with or into any Person (other than another Subsidiary Guarantor) unless either

 

(A) (i)                the resulting, surviving or transferee Person
shall be a corporation, partnership, trust or limited liability company
organized and existing under the laws of the United States of America, any
State of the United States or the District of Columbia and such Person (if not
such Subsidiary Guarantor) shall expressly assume, by supplemental indenture,
executed and delivered to the Trustee, in form satisfactory to the Trustee, all
the obligations of such Subsidiary Guarantor under its Notes Guarantee;

 

(ii)              immediately after giving effect to such
transaction (and treating any Indebtedness that becomes an obligation of the
resulting, surviving or transferee Person or any Restricted Subsidiary of the
Company as a result of such transaction as having been Incurred by such Person
or such Restricted Subsidiary at the time of such transaction), no Default or
Event of Default shall have occurred and be continuing; and

 

(iii)           the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger or transfer and such supplemental indenture (if any) comply with the
terms hereof; or

 

(B)                                 such transaction results in the Company
receiving cash or other property (other than Capital Stock representing a
controlling interest in the successor entity), and the transaction is made in
compliance with the terms of Section 3.7.

 

Notwithstanding
the preceding clause (3) of the first sentence of this Section 4.1,
(x) any Restricted Subsidiary of the Company (other than a Receivables Entity)
may consolidate with, merge into or transfer all or part of its properties and
assets to the Company or a Subsidiary Guarantor and (y) the Company may merge
with an Affiliate incorporated solely for the purpose of reincorporating the
Company in another jurisdiction to realize tax benefits; provided that, in the case of a Restricted
Subsidiary of the Company that merges into the Company, the Company shall not
be required to comply with the preceding clause (5).

 

85

 

ARTICLE V

 

Redemption of
Securities

 

SECTION 5.1.   Optional Redemption.  (a) The Securities may be redeemed, as a
whole or from time to time in part, subject to the conditions and at the
redemption prices specified in paragraph 5 of the form of Securities set forth
in Exhibits A and B hereto, which are hereby incorporated by reference and made
a part of this Indenture, together with accrued and unpaid cash interest
(including Additional Interest) to the Redemption Date.

 

(b)  At any
time on or after August 15, 2005 and prior to August 15, 2008, within 90 days
following the occurrence of a Change of Control, the Company may redeem the
Securities, in whole but not in part, at the redemption prices (expressed as a
percentage of Accreted Value thereof), plus accrued and unpaid Additional
Interest, if any, on the Securities to the applicable redemption date (subject
to the right of holders of record on the relevant record date to receive cash
interest due on the relevant interest payment date), if redeemed during the
12-month period beginning on August 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2005

  	
   

  	
  118.000

  	
  %

  
	
  2006

  	
   

  	
  115.000

  	
  %

  
	
  2007

  	
   

  	
  112.000

  	
  %

  

 

Notice of redemption of the Securities pursuant to
this Section 5.1(b) shall be mailed to Holders of the Securities not more than
60 days following the occurrence of a Change of Control, which notice shall
state the redemption date (which shall be no earlier than 30 days nor later
than 60 days from the date such notice is mailed).

 

SECTION 5.2.   Applicability of Article.  Redemption of Securities at the election of
the Company or otherwise, as permitted or required by any provision of this
Indenture, shall be made in accordance with such provision and this Article.

 

SECTION 5.3.   Election to Redeem; Notice to Trustee.  The election of the Company to redeem any
Securities pursuant to Section 5.1 shall be evidenced by a Board
Resolution.  In case of any redemption
at the election of the Company, the Company shall, upon not later than the
earlier of the date that is 30 days prior to the Redemption Date fixed by the
Company or the date on which notice is given to the Holders (except as provided
in Section 5.5 or unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date and of the principal
amount at maturity of Securities to be redeemed and shall deliver to the
Trustee such documentation and records as shall enable the Trustee to select
the Securities to be redeemed pursuant to Section 5.4.  Any such notice may be cancelled at any time
prior to notice of such redemption being mailed to any Holder and shall thereby
be void and of no effect.

 

86

 

SECTION 5.4.   Selection by Trustee of Securities to Be
Redeemed.  If less than all the
Securities are to be redeemed at any time pursuant to an optional redemption,
the particular Securities to be redeemed shall be selected not more than 60
days prior to the Redemption Date by the Trustee, from the outstanding
Securities not previously called for redemption, in compliance with the
requirements of the principal securities exchange, if any, on which such
Securities are listed, or, if such Securities are not so listed, on a pro
rata
basis among the classes of Securities, by lot or by such other method as the
Trustee in its sole discretion shall deem fair and appropriate (and in such
manner as complies with applicable legal requirements) and which may provide
for the selection for redemption of portions of the principal amount at
maturity of the Securities; provided, however, that no such partial
redemption shall reduce the portion of the principal amount at maturity of a
Security not redeemed to less than $1,000.

 

The Trustee
shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption,
the method it has chosen for the selection of Securities and the principal
amount at maturity thereof to be redeemed.

 

For all
purposes of this Indenture, unless the context otherwise requires, all
provisions relating to redemption of Securities shall relate, in the case of
any Security redeemed or to be redeemed only in part, to the portion of the
principal amount at maturity of such Security which has been or is to be
redeemed.

 

SECTION 5.5.   Notice of Redemption.  Notice of redemption shall be given in the
manner provided for in Section 10.2 not less than 30 nor more than
60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed.  At the Company’s request, the
Trustee shall give notice of redemption in the Company’s name and at the
Company’s expense; provided, however, that the Company shall
deliver to the Trustee, at least 45 days prior to the Redemption Date, an
Officers’ Certificate requesting that the Trustee give such notice at the
Company’s expense and setting forth the information to be stated in such notice
as provided in the following items.

 

All notices of
redemption shall state:

 

(1)                                  the
Redemption Date,

 

(2)                                  the
redemption price and the amount of accrued interest to the Redemption Date
payable as provided in Section 5.7, if any,

 

(3)                                  if
less than all outstanding Securities are to be redeemed, the identification of
the particular Securities (or portion thereof) to be redeemed, as well as the
aggregate principal amount at maturity of Securities to be redeemed and the
aggregate principal amount at maturity of Securities to be outstanding after
such partial redemption,

 

(4)                                  in
case any Security is to be redeemed in part only, the notice which relates to
such Security shall state that on and after the Redemption Date, upon surrender
of such Security, the Holder will receive, without charge, a

 

87

 

new Security
or Securities of authorized denominations for the principal amount at maturity
thereof remaining unredeemed,

 

(5)                                  that
on the Redemption Date the redemption price (and accrued interest, if any, to
the Redemption Date payable as provided in Section 5.7) will become
due and payable upon each such Security, or the portion thereof, to be
redeemed, and, unless the Company defaults in making the redemption payment,
that interest on Securities called for redemption (or the portion thereof) will
cease to accrue on and after said date,

 

(6)                                  the
place or places where such Securities are to be surrendered for payment of the
Redemption Price and accrued interest, if any,

 

(7)                                  the
name and address of the Paying Agent,

 

(8)                                  that
Securities called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price,

 

(9)                                  the
CUSIP number, and that no representation is made as to the accuracy or
correctness of the CUSIP number, if any, listed in such notice or printed on
the Securities, and

 

(10)                            the
paragraph of the Securities pursuant to which the Securities are to be
redeemed.

 

SECTION 5.6.   Deposit of Redemption Price.  Prior to 11:00 a.m., New York City time, on
any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 2.4) an amount of money
sufficient to pay the redemption price of, and accrued interest on, all the
Securities which are to be redeemed on that date other than Securities or
portions of Securities called for redemption that have been delivered by the
Company to the Trustee for cancellation.

 

SECTION 5.7.   Securities Payable on Redemption Date.  Notice of redemption having been given as aforesaid,
the Securities or portions of Securities so to be redeemed shall, on the
Redemption Date, become due and payable at the redemption price therein
specified (together with accrued interest, if any, to the Redemption Date), and
from and after such date (unless the Company shall default in the payment of
the Redemption Price and accrued interest) such Securities shall cease to bear
interest.  Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be
paid by the Company at the redemption price, together with accrued interest, if
any, to the Redemption Date (subject to the rights of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date).

 

If any
Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear
interest from the Redemption Date at the rate borne by the Securities.

 

88

 

SECTION 5.8.   Securities Redeemed in Part.  Any
Security which is to be redeemed only in part (pursuant to the provisions of
this Article) shall be surrendered at the office or agency of the Company
maintained for such purpose pursuant to Section 3.13 (with, if the
Company or the Trustee so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or such Holder’s attorney duly authorized in writing),
and the Company shall execute, and the Trustee shall authenticate and make
available for delivery to the Holder of such Security at the expense of the
Company, a new Security or Securities, of any authorized denomination as
requested by such Holder, in an aggregate principal amount at maturity equal to
and in exchange for the unredeemed portion of the principal amount at maturity
of the Security so surrendered, provided,
that each such new Security will be in a principal amount at maturity of $1,000
or integral multiple thereof.

 

ARTICLE VI

 

Defaults and
Remedies

 

SECTION 6.1.   Events of Default.  Each
of the following is an Event of Default:

 

(1)                                   default in any payment of interest or
Additional Interest (as required by the Registration Rights Agreement) on any
Security when the same becomes due and payable, and such default continues for
a period of 30 days;

 

(2)                                   default in the payment of principal of or
premium, if any, on any Security when the same becomes due and payable at its
Stated Maturity, upon optional redemption, upon required repurchase, upon
declaration or otherwise;

 

(3)                                   failure by the Company or any Subsidiary
Guarantor to comply with its obligations under Article IV;

 

(4)                                   failure by the Company to comply with any of
its obligations under Sections 3.2, 3.3, 3.4, 3.5, 3.6,
3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13,
3.14, 3.15 and 3.16 (in each case, other than a failure to
purchase Securities when required pursuant to Section 3.7 or 3.9,
which failure shall constitute an Event of Default under clause (2)
above and other than a failure to comply with Article IV which
failure shall constitute an Event of Default covered by clause (3)) and
such failure continues for 30 days after the notice specified below (with such
notice only given after the expiry of the periods permitted to perform an
obligation);

 

(5)                                   the
Company defaults in the performance of or a breach by the Company of any other
covenant or agreement in this Indenture or under the Securities (other than
those referred to in clause (1), (2), (3) or (4)
above) and such default continues for 60 days after the notice specified below

 

89

 

(with such
notice only given after the expiry of the periods permitted to perform an
obligation);

 

(6)                                   default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Company
or any of its Restricted Subsidiaries), other than Indebtedness owed to the
Company or its Restricted Subsidiary, whether such Indebtedness or guarantee
now exists, or is created after the date of this Indenture, which default:

 

(a)                                    is caused by a failure to pay principal of,
or interest or premium, if any, on such Indebtedness after final
maturity (after giving effect to any applicable grace period provided in such Indebtedness) (“payment default”);
or

 

(b)                                   results in the acceleration of such Indebtedness
prior to its maturity (the “cross acceleration provision”);

 

and, in each case, the
principal amount of any such Indebtedness, together with the principal amount
of any other such Indebtedness under which there has been a payment default or
the maturity of which has been so accelerated, aggregates $10.0 million or more
or its foreign currency equivalent at the time;

 

(7)                                   (a)
the Company or a Significant Subsidiary (other than any Receivables Entity) or
a group of its Restricted Subsidiaries (other than Receivables Entities) that,
taken together (as of the latest audited consolidated financial statements for
the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

(i)                                     commences a
voluntary case or proceeding;

 

(ii)                                  consents to the entry
of judgment, decree or order for relief against it in an involuntary case or
proceeding;

 

(iii)                               consents to the
appointment of a Custodian of it or for any substantial part of its property;

 

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

 

90

 

(v)                                 consents to or
acquiesces in the institution of a bankruptcy or an insolvency proceeding
against it; or

 

(vi)                              takes any corporate
action to authorize or effect any of the foregoing;

 

or takes any comparable action under any
foreign laws relating to insolvency; or

 

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

 

(i)                                     is for relief against
the Company or any Significant Subsidiary (other than any Receivables Entity)
or a group of its Restricted Subsidiaries (other than Receivables Entities)
that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a
Significant Subsidiary in an involuntary case;

 

(ii)                                  appoints a Custodian
of the Company or any Significant Subsidiary (other than any Receivables
Entity) or a group of its Restricted Subsidiaries (other than Receivables
Entities) that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a
Significant Subsidiary or for any substantial part of its property; or

 

(iii)                               orders the winding up or
liquidation of the Company or any Significant Subsidiary (other than any
Receivables Entity) or a group of its Restricted Subsidiaries (other than
Receivables Entities) that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary;

 

or any similar relief is
granted under any foreign laws and the order, decree or relief remains unstayed
and in effect for 60 days;

 

(8)                                   failure by the Company or any Significant
Subsidiary or group of its Restricted Subsidiaries that, taken together (as of
the latest audited consolidated financial statements for the Company and its
Restricted 

 

91

 

Subsidiaries), would
constitute a Significant Subsidiary to pay final judgments aggregating in
excess of $10.0 million or its foreign currency equivalent at the time (net of
any amounts that a reputable and creditworthy insurance company has acknowledged
liability or coverage for in writing), which judgments are not paid, discharged
or stayed for a period of 60 days (the “judgment default provision”); or

 

(9)                                   any
Notes Guarantee of a Significant Subsidiary, or a group of Subsidiary
Guarantors that, taken together (as of the latest audited consolidated
financial statements for the Company) would collectively represent a
Significant Subsidiary, ceases to be in full force and effect (except as
contemplated by the terms of this Indenture) or is declared null and void in a
judicial proceeding or any Guarantor denies or disaffirms its obligations under
this Indenture or its Notes Guarantee.

 

The foregoing
will constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or involuntary or is effected by operation
of law or pursuant to any judgment, decree or order of any court or any order,
rule or regulation of any administrative or governmental body.

 

Notwithstanding
the foregoing, a Default under clause (4) or (5) of this Section
6.1 will not constitute an Event of Default until the Trustee or the
Holders of 25% or more in principal amount at maturity of the outstanding
Securities notify the Company of the Default and the Company does not cure such
Default within the time specified in clause (4) or (5) of this Section
6.1 after receipt of such notice. 
Such notice must specify the Default, demand that it be remedied and
state that such notice is a “Notice of Default.”

 

The Company
shall deliver to the Trustee, within 30 days after an Officer of the Company
becomes aware of the occurrence thereof, written notice in the form of an
Officers’ Certificate of any Default or Event of Default under clause (3),
(4), (5), (6), (7), (8) or (9) of
this Section 6.1, which such notice shall contain the status thereof and
a description of the action being taken or proposed to be taken by the Company
in respect thereof.

 

SECTION 6.2.   Acceleration.  If an Event of Default (other than an Event
of Default specified in clause (7) of Section 6.1) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least
25% in principal amount at maturity of the outstanding Securities by notice to
the Company and the Trustee, may, and the Trustee at the request of such Holders
shall, declare the Accreted Value of, premium, if any, and accrued and unpaid
interest, if any, on all the Securities to be due and payable.  Upon such a declaration, such Accreted
Value, premium and accrued and unpaid interest shall be due and payable
immediately.  In the event of a
declaration of acceleration of the Securities because an Event of Default set
forth in clause (6) of Section 6.1 has occurred and is
continuing, such declaration of acceleration of the Securities shall be
automatically rescinded and annulled if the event of default or payment default
triggering such Event of Default pursuant to clause (6) of Section
6.1 shall be remedied or cured by the Company and/or the relevant
Restricted Subsidiary of the Company or the holders of the relevant
Indebtedness have rescinded the declaration of acceleration in respect of such
Indebtedness within 20 days after the declaration of acceleration with respect
thereto and if (a)

 

92

 

the annulment of the acceleration of the Securities would not conflict
with any judgment or decree of a court of competent jurisdiction and (b) all
existing Events of Default, except nonpayment of Accreted Value, premium or
interest on the Securities that became due solely because of the acceleration
of the Securities, have been cured or waived. 
If an Event of Default specified in clause (7) of Section 6.1
above occurs and is continuing, the Accreted Value of, premium, if any, and
accrued and unpaid interest on all the Securities will become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holders. No such rescission shall affect any subsequent
Default or Event of Default or impair any right consequent thereto.

 

SECTION 6.3.   Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of Accreted Value of (or premium, if any) or interest on the Securities or to
enforce the performance of any provision of the Securities or this Indenture.

 

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

 

SECTION 6.4.
  Waiver of Past Defaults.  The Holders of a majority in principal
amount at maturity of the outstanding Securities by notice to the Trustee may
(a) waive, by their consent (including, without limitation consents obtained in
connection with a purchase of, or tender offer or exchange offer for,
Securities), an existing Default or Event of Default and its consequences
except (i) a Default or Event of Default in the payment of the principal of, or
premium, if any, or interest on a Security or (ii) a Default or Event of
Default in respect of a provision that under Section 9.2 cannot be
amended without the consent of each Securityholder affected and (b) rescind any
such acceleration with respect to the Securities and its consequences if (1)
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction and (2) all existing Events of Default, other than the
nonpayment of the principal of, premium, if any, and interest on the Securities
that have become due solely by such declaration of acceleration, have been
cured or waived.  When a Default or
Event of Default is waived, it is deemed cured, but no such waiver shall extend
to any subsequent or other Default or Event of Default or impair any consequent
right.

 

SECTION 6.5.   Control by Majority.  The Holders of a majority in principal
amount at maturity of the outstanding Securities may direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or of exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow
any direction that conflicts with law or this Indenture or, subject to Sections
7.1 and 7.2, that the Trustee determines is unduly prejudicial to
the rights of other Securityholders or would involve the Trustee in personal
liability; provided,
however, that the Trustee may take any other action deemed proper by
the Trustee that is not inconsistent with such direction.  Prior to taking any action hereunder, the
Trustee shall be entitled to indemnification satisfactory to it in its sole
discretion against all losses and expenses caused by taking or not taking such
action.

 

93

 

SECTION 6.6.   Limitation on Suits.  Subject to Section 6.7, a
Securityholder may not pursue any remedy with respect to this Indenture or the
Securities unless:

 

(1)                                  such
Holder has previously given to the Trustee written notice stating that an Event
of Default is continuing;

 

(2)                                  Holders
of at least 25% in principal amount at maturity of the outstanding Securities
have requested that the Trustee to pursue the remedy;

 

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

 

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

 

(5)                                  the
Holders of a majority in principal amount at maturity of the outstanding
Securities have not given the Trustee a direction that, in the opinion of the
Trustee, is inconsistent with such request within such 60-day period.

 

A
Securityholder may not use this Indenture to prejudice the rights of another
Securityholder or to obtain a preference or priority over another
Securityholder.

 

SECTION 6.7.   Rights of Holders to Receive Payment.  Notwithstanding any other provision of this
Indenture (including, without limitation, Section 6.6), the right of any
Holder to receive payment of principal of, premium (if any) or interest on the
Securities held by such Holder, on or after the respective due dates expressed
in the Securities, or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

 

SECTION 6.8.   Collection Suit by Trustee.  If an Event of Default specified in clauses
(1) or (2) of Section 6.1 occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount then due and owing (together with
interest on any unpaid interest to the extent lawful) and the amounts provided
for in Section 7.7.

 

SECTION 6.9.   Trustee May File Proofs of Claim.  The Trustee may file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee and the Securityholders allowed in any judicial
proceedings relative to the Company, its Subsidiaries or its or their
respective creditors or properties and, unless prohibited by law or applicable
regulations, may vote on behalf of the Holders in any election of a trustee in
bankruptcy or other Person performing similar functions, and any Custodian in
any such judicial proceeding is hereby authorized by each Holder to make
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and its counsel, and any other amounts due
the Trustee under Section 7.7.

 

94

 

SECTION 6.10.   Priorities.  If the Trustee collects any money or
property pursuant to this Article VI, it shall pay out the money or
property in the following order:

 

FIRST:  to the Trustee for amounts due under Section
7.7;

 

SECOND:  to Securityholders for amounts due and
unpaid on the Securities for principal, premium, if any, and interest, ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Securities for principal and interest, respectively; and

 

THIRD:  to the Company.

 

The Trustee
may fix a record date and payment date for any payment to Securityholders
pursuant to this Section.  At least 15
days before such record date, the Company shall mail to each Securityholder and
the Trustee a notice that states the record date, the payment date and amount
to be paid.

 

SECTION 6.11.   Undertaking for Costs.  In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court in its discretion may require
the filing by any party litigant in the suit of an undertaking to pay the costs
of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made
by the party litigant.  This Section
does not apply to a suit by the Trustee, a suit by the Company, a suit by a
Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in
outstanding principal amount at maturity of the Securities.

 

ARTICLE VII

 

Trustee

 

SECTION 7.1.   Duties of Trustee.  (a)  If an Event of Default has
occurred and is continuing, the Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent Person would exercise or use under the circumstances
in the conduct of such Person’s own affairs; provided that if an Event of
Default occurs and is continuing, the Trustee will be under no obligation to
exercise the rights of powers under this Indenture at the request or direction
of any of the Holders unless such Holders have offered the Trustee reasonable
indemnity or security against loss, liability or expense;

 

(b) 
Except during the continuance of an Event of Default:

 

(1)                                  the
Trustee undertakes to perform such duties and only such duties as are specifically
set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

 

(2)                                  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions

 

95

 

expressed
therein, upon certificates, opinions or orders furnished to the Trustee and
conforming to the requirements of this Indenture.  However, in the case of any such certificates or opinions which
by any provisions hereof are specifically required to be furnished to the
Trustee, the Trustee shall examine such certificates and opinions to determine
whether or not they conform on their face to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations
or other facts stated therein).

 

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

 

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

 

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

 

(3)                                  the
Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section
6.5.

 

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

 

(e)  The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company.

 

(f) 
Money held in trust by the Trustee need not be segregated from other funds
except to the extent required by law.

 

(g)  No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers, if it shall
have reasonable grounds to believe that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

(h) 
Every provision of this Indenture relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the
provisions of this Section and to the provisions of the TIA.

 

(i) 
Unless otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Company shall be sufficient if signed by an
Officer of the Company.

 

(j)  The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders unless such Holders shall have offered to the Trustee reasonable
security or indemnity satisfactory to it

 

96

 

against the
costs, expenses (including reasonable attorneys’ fees and expenses) and
liabilities that might be incurred by it in compliance with such request or
direction.

 

(k)  The
permissive rights of the Trustee hereunder shall not be construed as duties.

 

SECTION 7.2.   Rights of Trustee.  Subject to Section 7.1:

 

(a)  The
Trustee may conclusively rely on any document (whether in its original or
facsimile form) reasonably believed by it to be genuine and to have been signed
or presented by the proper person.  The
Trustee need not investigate any fact or matter stated in the document.

 

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

 

(c)  The
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent appointed with due care.

 

(d)  The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers, unless
the Trustee’s conduct constitutes willful misconduct or negligence.

 

(e)  The
Trustee may consult with counsel of its selection, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the
Securities shall be full and complete authorization and protection from
liability in respect of any action taken, omitted or suffered by it hereunder
in good faith and in accordance with the advice or opinion of such counsel.

 

SECTION 7.3.   Individual Rights of Trustee.  The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it
were not Trustee.  Any Paying Agent,
Registrar, co-registrar or co-paying agent may do the same with like
rights.  However, the Trustee must
comply with Sections 7.10 and 7.11.

 

SECTION 7.4.   Trustee’s Disclaimer.  The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds
from the Securities, and it shall not be responsible for any statement of the
Company in this Indenture or in any document issued in connection with the sale
of the Securities or in the Securities other than the Trustee’s certificate of
authentication.  The Trustee shall not
be responsible for ensuring that the rate of interest due and payable with
respect to the Securities does not exceed the highest legal rate of interest
permissible under applicable federal or state law.

 

SECTION 7.5.   Notice of Defaults.  If a Default or Event of Default occurs and
is continuing and if a Trust Officer has actual knowledge thereof, the Trustee
shall mail to each Securityholder notice of the Default or Event of Default
within the earlier of 90 days after it occurs or 30 days after the Trustee has
knowledge of such default.  Except in
the case of a

 

97

 

Default or Event of Default in payment of principal of, premium (if
any), or interest on any Security (including payments pursuant to the optional
redemption or required repurchase provisions of such Security, if any), the
Trustee may withhold the notice if and so long as a committee of its Trust
Officers in good faith determines that withholding the notice is in the
interests of Securityholders.  Nothing
herein shall be construed to require the Trustee to independently investigate
the Company’s compliance with its covenants hereunder.

 

SECTION 7.6.   Reports by Trustee to Holders.  As promptly as practicable after each May 15
beginning with the May 15 following the date of this Indenture, and in any
event prior to July 15 in each year, the Trustee shall mail to each
Securityholder a brief report dated as of such May 15 that complies with TIA
§ 313(a).  The Trustee also shall
comply with TIA § 313(b).  The
Trustee shall also transmit by mail all reports required by TIA § 313(c).

 

A copy of each
report at the time of its mailing to Securityholders shall be filed with the
SEC and each stock exchange (if any) on which the Securities are listed.  The Company agrees to notify promptly the
Trustee whenever the Securities become listed on any stock exchange and of any
delisting thereof.

 

SECTION 7.7.   Compensation and Indemnity.  The Company shall pay to the Trustee from
time to time reasonable compensation for its acceptance of this Indenture and
services hereunder as the Company and the Trustee shall from time to time agree
in writing.  The Trustee’s compensation
shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, costs of preparing and reviewing reports,
certificates and other documents, costs of preparation and mailing of notices
to Securityholders and reasonable costs of counsel retained by the Trustee in
connection with the delivery of an Opinion of Counsel or otherwise, in addition
to the compensation for its services. 
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee’s agents, counsel, accountants and
experts.  The Company shall indemnify
the Trustee against any and all loss, liability, damages, claims or expense
(including reasonable attorneys’ fees and expenses) incurred by it without negligence
or willful misconduct on its part in connection with the administration of this
trust and the performance of its duties hereunder, including the costs and
expenses of enforcing this Indenture (including this Section 7.7) and of
defending itself against any claims (whether asserted by any Securityholder,
the Company or otherwise).  The Trustee
shall notify the Company promptly of any claim for which it may seek
indemnity.  Failure by the Trustee to so
notify the Company shall not relieve the Company of its obligations
hereunder.  The Company shall defend the
claim and the Trustee shall provide reasonable cooperation at the Company’s
expense in the defense.  The Trustee may
have separate counsel and the Company shall pay the fees and expenses of such
counsel provided that the Company shall not be required to pay such fees and
expenses if it assumes the Trustee’s defense, and, in the reasonable judgment
of outside counsel to the Trustee, there is no conflict of interest between the
Company and the Trustee in connection with such defense.  The Company shall not be under any
obligation to pay for any written settlement without its consent, which consent
shall not be unreasonably delayed, conditioned or withheld.  The Company need not reimburse any expense
or indemnify against any loss, liability or expense incurred by the Trustee
through the Trustee’s own willful misconduct or negligence.

 

98

 

To secure the
Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the
Trustee other than money or property held in trust to pay principal of and
interest on particular Securities.  The Trustee’s
right to receive payment of any amounts due under this Section 7.7 shall
not be subordinate to any other liability or Indebtedness of the Company.

 

The Company’s
payment obligations pursuant to this Section shall survive the discharge of
this Indenture or the Trustee’s resignation or removal hereunder.  When the Trustee incurs expenses after the
occurrence of a Default specified in clause (7) of Section 6.1 with
respect to the Company, the expenses are intended to constitute expenses of
administration under any Bankruptcy Law.

 

SECTION 7.8.   Replacement of Trustee.  The Trustee may resign at any time by so
notifying the Company.  The Holders of a
majority in principal amount at maturity of the Securities may remove the
Trustee by so notifying the Trustee and may appoint a successor Trustee.  The Company shall remove the Trustee if:

 

(1)                                  the
Trustee fails to comply with Section 7.10;

 

(2)                                  the
Trustee is adjudged bankrupt or insolvent;

 

(3)                                  a
receiver or other public officer takes charge of the Trustee or its property;
or

 

(4)                                  the
Trustee otherwise becomes incapable of acting as trustee hereunder.

 

If the Trustee
resigns or is removed by the Company or by the Holders of a majority in
principal amount at maturity of the Securities and such Holders do not
reasonably promptly appoint a successor Trustee, or if a vacancy exists in the
office of the Trustee for any reason (the Trustee in such event being referred
to herein as the retiring Trustee), the Company shall promptly appoint a
successor Trustee.

 

A successor
Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company.  Thereupon
the resignation or removal of the retiring Trustee shall become effective, and
the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture.  The
successor Trustee shall mail a notice of its succession to
Securityholders.  The retiring Trustee
shall promptly transfer all property held by it as Trustee to the successor
Trustee, subject to the lien provided for in Section 7.7.

 

If a successor
Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of at least 10% in principal
amount at maturity of the Securities may petition, at the Company’s expense,
any court of competent jurisdiction for the appointment of a successor Trustee.

 

If the Trustee
fails to comply with Section 7.10, unless the Trustee’s duty to resign
is stayed as provided in Section 310(b) of the TIA, any Securityholder who has
been a bona fide Holder of a Security for at least six months may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

 

99

 

Notwithstanding
the replacement of the Trustee pursuant to this Section, the Company’s
obligations under Section 7.7 shall continue for the benefit of the
retiring Trustee.

 

SECTION 7.9.   Successor Trustee by Merger.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust
business or assets to, another corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be
the successor Trustee.

 

In case at the
time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture, any of the
Securities shall have been authenticated but not delivered, any such successor
to the Trustee may adopt the certificate of authentication of any predecessor
trustee, and deliver such Securities so authenticated; and in case at that time
any of the Securities shall not have been authenticated, any successor to the
Trustee may authenticate such Securities either in the name of any predecessor
hereunder or in the name of the successor to the Trustee; and in all such cases
such certificates shall have the full force which it is anywhere in the
Securities or in this Indenture provided that the certificate of the Trustee
shall have.

 

SECTION 7.10.   Eligibility; Disqualification.  The Trustee shall at all times satisfy the
requirements of TIA § 310(a).  The
Trustee shall have a combined capital and surplus of at least $100 million as
set forth in its most recent published annual report of condition.  The Trustee shall comply with TIA
§ 310(b); provided, however, that there shall be excluded from the
operation of TIA § 310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in other securities of
the Company are outstanding if the requirements for such exclusion set forth in
TIA § 310(b)(1) are met.

 

SECTION 7.11.   Preferential Collection of Claims
Against Company.  The Trustee shall
comply with TIA § 311(a), excluding any creditor relationship listed in
TIA § 311(b).  A Trustee who has
resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated.

 

SECTION 7.12.   Trustee’s Application for Instruction
from the Company.  Any application
by the Trustee for written instructions from the Company may, at the option of
the Trustee, set forth in writing any action proposed to be taken or omitted by
the Trustee under this Indenture and the date on and/or after which such action
shall be taken or such omission shall be effective.  The Trustee shall not be liable for any action taken by, or
omission of, the Trustee in accordance with a proposal included in such
application on or after the date specified in such application (which date
shall not be less than three Business Days after the date any officer of the
Company actually receives such application, unless any such officer shall have
consented in writing to any earlier date) unless prior to taking any such
action (or the effective date in the case of an omission), the Trustee shall
have received written instructions in response to such application specifying
the action to be taken or omitted.

 

100

 

ARTICLE VIII

 

Discharge of Indenture; Defeasance

 

SECTION 8.1.   Discharge of Liability on Securities;
Defeasance.  (a)   Subject to Section 8.1(c), when
(i)(x) the Company delivers to the Trustee all outstanding Securities (other
than Securities replaced pursuant to Section 2.9) for cancellation or
(y) all outstanding Securities not theretofore delivered for cancellation have
become due and payable, whether at maturity or upon redemption or will 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 pursuant to Article V hereof and the Company or any Guarantor
irrevocably deposits or causes to be deposited with the Trustee as trust funds
in trust solely for the benefit of the Holders money in U.S. dollars, non-callable
U.S. Government Obligations, or a combination thereof, in such amounts as will
be sufficient without consideration of any reinvestment of interest to pay and
discharge the entire indebtedness on such Securities not theretofore delivered
to the Trustee for cancellation for Accreted Value, premium, if any, and
accrued cash interest to the date of maturity or redemption; (ii) no Default or
Event of Default shall have occurred and be continuing on the date of such
deposit or shall occur as a result of such deposit and such deposit will not
result in a breach or violation of, or constitute a default under, any other
instrument to which the Company or any Guarantor is a party or by which the
Company or any Guarantor is bound; (iii) the Company or any Guarantor has paid
or caused to be paid all sums payable under this Indenture and the Securities;
and (iv) the Company has delivered irrevocable instructions to the Trustee
under this Indenture to apply the deposited money toward the payment of such
Securities at maturity or the Redemption Date, as the case may be, then the
Trustee shall acknowledge satisfaction and discharge of this Indenture on
demand of the Company (accompanied by an Officers’ Certificate and an Opinion
of Counsel stating that all conditions precedent specified herein relating to
the satisfaction and discharge of this Indenture have been complied with) and
at the cost and expense of the Company.

 

(b) 
Subject to Sections 8.1(c) and 8.2, the Company at any time may
terminate (i) all its obligations under the Securities and this Indenture (“legal
defeasance option”), and after giving effect to such legal defeasance, any
omission to comply with such obligations shall no longer constitute a Default
or Event of Default or (ii) its obligations under Sections 3.2, 3.3,
3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10,
3.11, 3.12, 3.16 and 4.1(3) and the Company may
omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply with such covenants shall
no longer constitute a Default or an Event of Default under Sections 6.1(3),
6.1(4) and 6.1(5) and the operation of Sections 6.1(6), 6.1(7)
(but only with respect to a Significant Subsidiary or group of Restricted
Subsidiaries that would constitute a Significant Subsidiary), 6.1(8) and
6.1(9), and the events specified in such Sections shall no longer
constitute an Event of Default (clause (ii) being referred to as the “covenant
defeasance option”), but except as specified above, the remainder of this
Indenture and the Securities shall be unaffected thereby.  The Company may exercise its legal
defeasance option notwithstanding its prior exercise of its covenant defeasance
option. If the Company exercises its covenant defeasance option, the Company
may elect to have any Notes Guarantees in effect at such time terminate.

 

101

 

If the Company
exercises its legal defeasance option, payment of the Securities may not be
accelerated because of an Event of Default, and the Notes Guarantees in effect
at such time shall terminate.  If the
Company exercises its covenant defeasance option, payment of the Securities may
not be accelerated because of an Event of Default specified in Sections
6.1(3), 6.1(4) (as such Section relates to Sections 3.2, 3.3,
3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10,
3.11, 3.12 and 3.16), 6.1(5), 6.1(6), 6.1(7)
(but only with respect to a Significant Subsidiary or group of Restricted
Subsidiaries that would constitute a Significant Subsidiary), 6.1(8) or 6.1(9)
or because of the failure of the Company to comply with Section 4.1(3).

 

Upon
satisfaction of the conditions set forth herein and upon request of the
Company, the Trustee shall acknowledge in writing the discharge of those
obligations that the Company terminates.

 

(c) 
Notwithstanding the provisions of Sections 8.1(a) and (b), the
Company’s obligations in Sections  2.2, 2.3, 2.4, 2.5,
2.6, 2.9, 2.10, 2.11, 3.1, 3.13, 3.14,
3.15, 3.17, 3.18, 3.19, 6.7, 7.7, 7.8
and in this Article VIII shall survive until the Securities have been
paid in full.  Thereafter, the Company’s
obligations in Sections 7.7, 8.4 and 8.5 shall survive.

 

SECTION 8.2.   Conditions to Defeasance.  The Company may exercise its legal
defeasance option or its covenant defeasance option only if:

 

(1)           the Company irrevocably
deposits in trust with the Trustee for the benefit of the Holders money in U.S.
dollars or U.S. Government Obligations or a combination thereof, the principal
of and interest (without reinvestment) on which will be sufficient, or a
combination thereof sufficient, for the payment of Accreted Value, premium, if
any, and cash interest on the Securities to maturity or redemption, as the case
may be;

 

(2)           the Company delivers
to the Trustee a certificate from a nationally recognized firm of independent
accountants expressing their opinion that the payments of principal and
interest when due and without reinvestment on the deposited U.S. Government
Obligations plus any deposited money without investment will provide cash at
such times and in such amounts as will be sufficient to pay principal and
interest when due on all the Securities to maturity or redemption, as the case
may be;

 

(3)           no Default or Event
of Default shall have occurred and be continuing on the date of such deposit
or, with respect to certain bankruptcy or insolvency Events of Default, on the
91st day after such date of deposit;

 

(4)           such legal
defeasance or covenant defeasance shall not result in a breach or violation of,
or constitute a Default under, this Indenture or any other material agreement
or instrument to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its Subsidiaries is bound;

 

(5)           the Company shall
have delivered to the Trustee an Opinion of Counsel (subject to customary
assumptions and exclusions) to the effect that (A) the Securities and
(B) assuming no intervening bankruptcy of the Company between the date of
deposit and the 91st day following the deposit and that no Holder of the
Securities is an insider of the Company, after the 91st day following the
deposit, the trust funds will not be subject

 

102

 

to the effect of any applicable bankruptcy, insolvency, reorganization
or similar laws affecting creditors’ right generally;

 

(6)           the deposit does not
constitute a default under any other agreement binding on the Company;

 

(7)           the Company delivers
to the Trustee an Opinion of Counsel (subject to customary assumptions and
exclusions) to the effect that the trust resulting from the deposit does not
constitute, or is qualified as, a regulated investment company under the
Investment Company Act of 1940, as amended;

 

(8)           in the case of the
legal defeasance option, the Company shall have delivered to the Trustee an
Opinion of Counsel (subject to customary assumptions and exclusions) in the
United States stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of
this Indenture there has been a change in the applicable federal income tax
law, in either case to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Securityholders will not recognize income, gain
or loss for federal income tax purposes as a result of such defeasance and will
be subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such legal defeasance had not
occurred;

 

(9)           in the case of the
covenant defeasance option, the Company shall have delivered to the Trustee an
Opinion of Counsel (subject to customary assumptions and exclusions) in the
United States to the effect that the Securityholders will not recognize income,
gain or loss for federal income tax purposes as a result of such deposit and
covenant defeasance and will be subject to federal income tax on the same
amount, in the same manner and at the same times as would have been the case if
such deposit and covenant defeasance had not occurred; and

 

(10)         the Company delivers
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent to the defeasance and discharge of the Securities
and this Indenture as contemplated by this Article VIII have been
complied with.

 

SECTION 8.3.   Application of Trust Money.  The Trustee shall hold in trust money or
U.S. Government Obligations deposited with it pursuant to this Article VIII.  It shall apply the deposited money and the
money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and interest on
the Securities.

 

SECTION 8.4.   Repayment to Company.  The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money, U.S.
Government Obligations or securities held by them upon payment of all the
obligations under this Indenture.

 

Subject to any
applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon request any money held by them for the payment of principal
of or interest on the Securities that remains unclaimed for two years, and,
thereafter,

 

103

 

Securityholders entitled to the money must
look to the Company for payment as general creditors.

 

SECTION 8.5.   Indemnity for U.S. Government
Obligations.  The Company shall pay
and shall indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against deposited U.S. Government Obligations or the principal and
interest received on such U.S. Government Obligations.

 

SECTION 8.6.   Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with this Article
VIII by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the obligations of the Company under
this Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article VIII until such time as
the Trustee or Paying Agent is permitted to apply all such money or U.S.
Government Obligations in accordance with this Article VIII; provided,
however, that, if the Company has made any payment of interest on or
principal of any Securities because of the reinstatement of its obligations,
the Company shall be subrogated to the rights of the Holders of such Securities
to receive such payment from the money or U.S. Government Obligations held by
the Trustee or Paying Agent.

 

ARTICLE IX

 

Amendments

 

SECTION 9.1.   Without Consent of Holders.  The Company, the Guarantors, if any, and the
Trustee may amend this Indenture or the Securities without notice to or consent
of any Securityholder:

 

(1)           to cure any
ambiguity, omission, defect or inconsistency;

 

(2)           to comply with Article
IV in respect of the assumption by a Successor Company of an obligation of
the Company or any Subsidiary Guarantor under this Indenture;

 

(3)           to provide for
uncertificated Securities in addition to or in place of certificated
Securities; provided, however,
that the uncertificated Securities are issued in registered form for purposes
of Section 163(f) of the Code or in a manner such that the uncertificated
Securities are described in Section 163(f)(2)(B) of the Code;

 

(4)           to add Notes
Guarantees with respect to the Securities or to release a Guarantor in
accordance with this Indenture (including any supplemental indenture hereto
constituting a Notes Guarantee);

 

(5)           to secure the
Securities;

 

(6)           to add to the covenants
of the Company for the benefit of the Holders or to surrender any right or
power herein conferred upon the Company;

 

104

 

(7)           to make any change
that does not adversely affect the rights of any Securityholder;

 

(8)           to comply with any
requirements of the SEC in connection with the qualification of this Indenture
under the TIA; or

 

(9)           to provide for the
issuance of the Exchange Securities, which will have terms substantially
identical in all respects to the Initial Securities or the Additional
Securities, as the case may be (except that the transfer restrictions contained
in the Initial Securities or the Additional Securities, if any, will be
modified or eliminated, as appropriate), and which will be treated, together
with any outstanding Initial Securities or Additional Securities, as a single
class of securities.

 

After an
amendment under this Section becomes effective, the Company shall mail to
Securityholders a notice briefly describing such amendment.  The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity
of an amendment under this Section.

 

SECTION 9.2.   With Consent of Holders.  The Company, the Guarantors, if any, and the
Trustee may amend this Indenture or the Securities without notice to any
Securityholder but with the written consent of the Holders of at least a
majority in principal amount at maturity of the Securities then outstanding
(including, without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for, Securities) and compliance with the
provisions of this Indenture may be waived with the written consent of the
Holders of at least a majority in principal amount at maturity of the
Securities then outstanding (including, without limitation, consents obtained
in connection with a purchase of, or tender offer or exchange offer for,
Securities).  However, without the
consent of each Securityholder affected, an amendment or waiver may not:

 

(1)           reduce the amount of
Securities whose Holders must consent to an amendment;

 

(2)           reduce the stated
rate of or extend the stated time for payment of interest or additional
interest on any Security;

 

(3)           reduce the principal
or Accreted Value of or extend the Stated Maturity of any Security;

 

(4)           reduce the premium
payable upon the redemption or repurchase of any Security or change the time at
which any Security may or shall be redeemed or repurchased as described under Article
V, whether through an amendment or waiver of provisions in the covenants,
definitions or otherwise;

 

(5)           make any Security
payable in money other than that stated in the Security;

 

(6)           impair the right of
any Holder to receive payment or Accreted Value of, premium, if any, and cash
interest on such Holder’s Securities on or after the due dates

 

105

 

therefor or to
institute suit for the enforcement of any payment on or with respect to such
Holder’s Securities;

 

(7)           make any change to
the amendment provisions which require each Holder’s consent or to the waiver
provisions; or

 

(8)           modify the Notes
Guarantees, if any, in any manner adverse to the Holders of the Securities.

 

It shall not
be necessary for the consent of the Holders under this Section to approve the
particular form of any proposed amendment or waiver, but it shall be sufficient
if such consent approves the substance thereof.  A consent to any amendment or waiver under this Indenture by any
Holder of the Securities given in connection with a tender of such Holder’s
Securities will not be rendered invalid by such tender.

 

After an
amendment under this Section becomes effective, the Company shall mail to
Securityholders a notice briefly describing such amendment.  The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity
of an amendment under this Section.

 

SECTION 9.3.   Compliance with Trust Indenture Act.  Every amendment to this Indenture or the
Securities shall comply with the TIA as then in effect.

 

SECTION 9.4.   Revocation and Effect of Consents and
Waivers.  A consent to an amendment
or a waiver by a Holder of a Security shall bind the Holder and every
subsequent Holder of that Security or portion of the Security that evidences
the same debt as the consenting Holder’s Security, even if notation of the
consent or waiver is not made on the Security. 
However, any such Holder or subsequent Holder may revoke the consent or
waiver as to such Holder’s Security or portion of the Security if the Trustee
receives the notice of revocation before the date the amendment or waiver
becomes effective.  After an amendment
or waiver becomes effective, it shall bind every Securityholder.  An amendment or waiver shall become
effective upon receipt by the Trustee of the requisite number of written
consents under Section 9.2.

 

The Company
may, but shall not be obligated to, fix a record date for the purpose of
determining the Securityholders entitled to give their consent or take any
other action described above or required or permitted to be taken pursuant to
this Indenture.  If a record date is
fixed, then notwithstanding the immediately preceding paragraph, those Persons
who were Securityholders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to give such consent or to
revoke any consent previously given or to take any such action, whether or not
such Persons continue to be Holders after such record date.  No such consent shall become valid or
effective more than 120 days after such record date.

 

SECTION 9.5.   Notation on or Exchange of Securities.  If an amendment changes the terms of a
Security, the Trustee may require the Holder of the Security to deliver it to
the Trustee.  The Trustee may place an
appropriate notation on the Security regarding the changed terms and return it
to the Holder.  Alternatively, if the
Company or the Trustee so determines, the Company in exchange for the Security
shall issue and the Trustee shall

 

106

 

authenticate a new Security that reflects the changed terms.  Failure to make the appropriate notation or
to issue a new Security shall not affect the validity of such amendment.

 

SECTION 9.6.   Trustee To Sign Amendments.  The Trustee shall sign any amendment
authorized pursuant to this Article IX if the amendment does not
adversely affect the rights, duties, liabilities or immunities of the
Trustee.  If it does, the Trustee may
but need not sign it.  In signing such
amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Sections 7.1 and 7.2)
shall be fully protected in relying upon an Officers’ Certificate and an
Opinion of Counsel stating that such amendment is authorized or permitted by
this Indenture.

 

ARTICLE X

 

Miscellaneous

 

SECTION 10.1.   Trust Indenture Act Controls.  If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required to be included
in this Indenture by the TIA, the provision required by the TIA shall control.

 

SECTION 10.2.   Notices.  Any notice or communication shall be in writing and delivered in
person or mailed by first-class mail addressed as follows:

 

 

	
   

  	
  if to the Company:

  
	
   

  	
   

  
	
   

  	
  MQ Associates, Inc.

  
	
   

  	
  4300 North Point Parkway

  
	
   

  	
  Alpharetta, GA 30022

  
	
   

  	
  Attention: Thomas C. Gentry

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  O’Melveny
  & Myers LLP

  
	
   

  	
  Times
  Square Tower

  
	
   

  	
  7 Times
  Square

  
	
   

  	
  New York, NY 10036

  
	
   

  	
  Attention:  Rosa A. Testani,
  Esq.

  
	
   

  	
   

  
	
   

  	
  if to the Trustee:

  
	
   

  	
   

  
	
   

  	
  Wachovia Bank, National Association

  
	
   

  	
  191 Peach Street, 23rd Floor

  
	
   

  	
  Atlanta, Georgia 30303-9094

  
	
   

  	
  Attention: Corporate Trust Group

  

 

107

 

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

 

Any notice or
communication mailed to a registered Securityholder shall be mailed to the
Securityholder at the Securityholder’s address as it appears on the
registration books of the Registrar and shall be sufficiently given if so
mailed within the time prescribed.

 

Failure to
mail a notice or communication to a Securityholder or any defect in it shall
not affect its sufficiency with respect to other Securityholders.  If a notice or communication is mailed in
the manner provided above, it is duly given, whether or not the addressee
receives it.

 

SECTION 10.3.   Communication by Holders with other
Holders.  Securityholders may communicate
pursuant to TIA § 312(b) with other Securityholders with respect to their
rights under this Indenture or the Securities. 
The Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c).

 

SECTION 10.4.   Certificate and Opinion as to Conditions
Precedent.  Upon any request or
application by the Company to the Trustee to take or refrain from taking any
action under this Indenture, the Company shall furnish to the Trustee:

 

(1)           an Officers’
Certificate in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with; and

 

(2)           an Opinion of
Counsel in form and substance reasonably satisfactory to the Trustee stating
that, in the opinion of such counsel, all such conditions precedent have been
complied with.

 

SECTION 10.5.   Statements Required in Certificate or
Opinion.  Each certificate or
opinion with respect to compliance with a covenant or condition provided for in
this Indenture shall include:

 

(1)           a statement that the
individual 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 individual, 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 individual, such covenant or condition
has been complied with.

 

108

 

In giving such
Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.

 

SECTION 10.6.   When Securities Disregarded.  In determining whether the Holders of the required
principal amount of Securities have concurred in any direction, waiver or
consent, Securities owned by the Company or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company shall be disregarded and deemed not to be outstanding,
except that, for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities
which the Trustee knows are so owned shall be so disregarded.  Also, subject to the foregoing, only
Securities outstanding at the time shall be considered in any such
determination.

 

SECTION 10.7.   Rules by Trustee, Paying Agent and
Registrar.  The Trustee may make
reasonable rules for action by, or a meeting of, Securityholders.  The Registrar and the Paying Agent may make
reasonable rules for their functions.

 

SECTION 10.8.   Legal Holidays.  A “Legal Holiday” is a Saturday, a Sunday or
other day on which commercial banking institutions are authorized or required
to be closed in New York City.  If a
payment date is a Legal Holiday, payment shall be made on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue for the
intervening period.  If a regular record
date is a Legal Holiday, the record date shall not be affected.

 

SECTION 10.9.   GOVERNING LAW.  THIS INDENTURE AND THE SECURITIES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

SECTION 10.10.   No Recourse Against Others.  An incorporator, director, officer,
employee, stockholder or controlling person, as such, of the Company shall not
have any liability for any obligations of the Company under the Securities or
this Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Security, each Securityholder shall waive and release all such
liability.  The waiver and release shall
be part of the consideration for the issue of the Securities.

 

SECTION 10.11.   Successors.  All agreements of the Company in this
Indenture and the Securities shall bind their respective successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

 

SECTION 10.12.   Multiple Originals.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.  One signed copy is enough to prove this
Indenture.

 

SECTION 10.13.   Qualification of Indenture.  The Company shall qualify this Indenture under
the TIA in accordance with the terms and conditions of the Registration Rights
Agreement and shall pay all reasonable costs and expenses (including attorneys’
fees and expenses for the Company, the Trustee and the Holders) incurred in
connection therewith, including, but not limited to, costs and expenses of
qualification of this Indenture and the Securities and printing this Indenture
and the Securities.  The Trustee shall
be entitled to receive from the Company any such Officers’ Certificates, Opinions
of Counsel or other documentation

 

109

 

as it may reasonably request in connection with any such qualification
of this Indenture under the TIA.

 

SECTION 10.14.   Table of Contents; Headings.  The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not intended to be considered a part
hereof and shall not modify or restrict any of the terms or provisions hereof.

 

110

 

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

 

 

	
   

  	
  MQ ASSOCIATES, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Thomas C. Gentry

  	
   

  
	
   

  	
   

  	
  Name: 
  Thomas C. Gentry

  
	
   

  	
   

  	
  Title: 
  CFO/ Asst. Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul L. Henderson

  	
   

  
	
   

  	
   

  	
  Name:  Paul L. Henderson

  
	
   

  	
   

  	
  Title:  Trust Officer

  

 

111

 

EXHIBIT A

 

[FORM OF FACE
OF SERIES A NOTE]

 

[Applicable
Restricted Securities Legend]

[Depositary Legend, if applicable]

[Original Issue Discount Legend]

 

	
  No.
  [     ]

  	
   

  	
  Principal Amount at Maturity
  $[                    ]

  
	
   

  	
   

  	
  CUSIP NO.

  	
   

  	
   

  

 

MQ ASSOCIATES,
INC.

 

121⁄4% Senior
Discount Note, Series A, due 2012

 

MQ Associates,
Inc., a Delaware corporation, promises to pay to
[                ],
or registered assigns, the principal sum of
[                            ]
Dollars, on August 15, 2012.

 

Interest
Payment Dates:  February 15 and August
15

Record
Dates:  February 1 and August 1

 

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

 

A-1

 

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

 

 

	
   

  	
  MQ ASSOCIATES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

TRUSTEE’S
CERTIFICATE OF

AUTHENTICATION

 

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

 

	
   

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, As Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
                             ,
  20     

  	
   

  	
   

  
						

 

A-2

 

[FORM OF
REVERSE SIDE OF SERIES A NOTE]

 

121⁄4% Senior
Discount Note, Series A, due 2012

 

1.   Interest

 

MQ Associates,
Inc., a Delaware corporation (such corporation, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the
“Company”), promises to pay interest on the principal amount of this Security
at the rate per annum shown above.

 

The Senior
Discount Notes due 2012 (the “Securities”) will accrete in value from the Issue
Date to, but not including, August 15, 2008 at a rate of 121⁄4% per annum,
compounded semi-annually as provided in the definition of “Accreted Value” in
the Indenture such that the Accreted Value will equal the full principal amount
at maturity on August 15, 2008.  Cash
interest will not accrue on the Securities prior to August 15, 2008.  Cash interest will accrue on the Securities
at the rate of 121⁄4% per annum from August 15, 2008 or from the most recent date
to which interest has been paid, and accrued cash interest will be payable
semi-annually in arrears to the Holders of record on each February 1 and August
1 immediately preceding the interest payment date on February 15 and August 15
of each year, commencing February 15, 2009. 
Interest will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

The Company is
required to make payments of accrued interest (whether in the form of an
increase in the Accreted Value of the Securities or otherwise) in an amount and
at a time such that the Securities will not be issued with “significant
original issue discount” within the meaning of Section 163(i)(2) of the Code.  As such, the Company will pay by the end of
the first accrual period ending after the fifth anniversary of the Issue Date
an amount such that at no time during the continued term of the Securities will
there be accrued but unpaid interest on the Securities exceeding an amount
equal to the product of (i) the original issue price of the Initial Securities
(within the meaning of Section 1273(b) and Section 1274(a) of the Code) and
(ii) the Initial Securities’ yield to maturity.  Moreover, the Company may make payments of accrued and unpaid
interest to the Holders of the Securities as of August 15, 2008, in addition to
making the payment by the time described in the preceding sentence.  Any payments made pursuant this paragraph
will reduce the Accreted Value and principal amount at maturity of the
Securities; however, the amount of such reduction of Accreted Value and
principal amount at maturity of the Securities will be the Accreted Value and
principal amount at maturity of Securities that the Company could have redeemed
if it had instead applied such payments of accrued interest to make a partial
redemption of the Securities at the applicable redemption prices described set
forth in paragraph 5 hereof.  In
addition, all such payments will be made in accordance with the notice and
other applicable provisions set forth in Section 2.13(b) of the Indenture.

 

2.   Method of Payment

 

By no later
than 10:00 a.m. (New York City time) on the date on which any principal of or
cash interest on any Security is due and payable, the Company shall irrevocably
deposit with the Trustee or the Paying Agent money sufficient to pay such
principal, premium, if

 

A-3

 

any, and/or interest.  The Company will pay cash interest (except
Defaulted Interest) to the Persons who are registered Holders of Securities at
the close of business on the February 1 or August 1 next preceding the interest
payment date even if Securities are cancelled, repurchased or redeemed after
the record date and on or before the interest payment date.  Holders must surrender Securities to a
Paying Agent to collect principal payments. 
The Company will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and
private debts.  Payments in respect of
Securities represented by a Global Security (including principal, premium, if
any, and interest) will be made by the transfer of immediately available funds
to the accounts specified by The Depository Trust Company or any successor
depository.  The Company will make all
payments in respect of a Definitive Security (including principal, premium, if
any, and interest) by mailing a check to the registered address of each Holder
thereof; provided, however, that payments on the Securities may
also be made, in the case of a Holder of at least $1,000,000 aggregate
principal amount at maturity of Securities, by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 15 days
immediately preceding the relevant due date for payment (or such other date as
the Trustee may accept in its discretion).

 

3.   Paying Agent and Registrar

 

Initially,
Wachovia Bank, National Association (the “Trustee”), will act as Trustee,
Paying Agent and Registrar.  The Company
may appoint and change any Paying Agent, Registrar or co-registrar without
notice to any Securityholder.  The
Company or any of its Restricted Subsidiaries may act as Paying Agent,
Registrar or co-registrar.

 

4.   Indenture

 

The Company
issued the Securities under an Indenture dated as of August 24, 2004 (as it may
be amended or supplemented from time to time in accordance with the terms
thereof, the “Indenture”), between the Company and the Trustee.  The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in
effect on the date of the Indenture (the “Act”).  Capitalized terms used herein and not defined herein have the
meanings ascribed thereto in the Indenture. 
The Securities are subject to all such terms, and Securityholders are
referred to the Indenture and the Act for a statement of those terms.

 

The Securities
are general unsecured senior obligations of the Company.  The aggregate principal amount of securities
that may be authenticated and delivered under the Indenture is unlimited.  The Securities include (i) $136,000,000
aggregate principal amount at maturity of the Company’s 121⁄4% Senior Discount
Notes, Series A, due 2012 issued under the Indenture on August 24, 2004 (herein
called “Initial Securities”), (ii) if and when issued, additional 121⁄4% Senior
Discount Notes, Series A, due 2012 or 121⁄4% Senior Discount Notes, Series B, due
2012 of the Company that may be issued from time to time under the Indenture
subsequent to August 24, 2004 (herein called “Additional Securities”) and (iii)
if and when issued, the Company’s 121⁄4% Senior Discount Notes, Series B, due
2012 that may be issued from time to time under the Indenture in exchange for
Initial Securities or Additional Securities

 

A-4

 

in an offer registered under the Securities
Act as provided in the Registration Rights Agreement (herein called “Exchange
Securities”).  The Initial Securities,
Additional Securities and Exchange Securities are treated as a single class of
securities under the Indenture.  This is
one of the [Initial] [Additional] Securities. 
The Indenture imposes certain limitations on, among other things, the
Incurrence of Indebtedness by the Company and its Restricted Subsidiaries, the
payment of dividends and other distributions on the Capital Stock of the
Company and its Restricted Subsidiaries, the purchase or redemption of Capital
Stock of the Company and Capital Stock of such Restricted Subsidiaries, certain
purchases or redemptions of Subordinated Obligations, the sale or transfer of
assets and Capital Stock of Restricted Subsidiaries, the issuance or sale of
Capital Stock of Restricted Subsidiaries, the incurrence of certain Liens,
certain payment guarantees, the business activities and investments of the
Company and its Restricted Subsidiaries, mergers and consolidation, and
transactions with Affiliates.  In
addition, the Indenture limits the ability of the Company and its Restricted
Subsidiaries to enter into agreements that restrict distributions and dividends
from Restricted Subsidiaries.

 

5.   Redemption

 

Except as set
forth below, the Securities will not be redeemable at the option of the Company
prior to August 15, 2008.  On or after
August 15, 2008, the Securities will be redeemable, at the Company’s option, in
whole or in part, at any time upon not less than 30 nor more than 60 days
prior notice mailed by first-class mail to each Holder’s registered address, at
the following redemption prices (expressed as a percentage of Accreted Value
thereof), plus accrued and unpaid cash interest (including Additional Interest,
if any) on the Securities, if any, to the applicable redemption date (subject
to the right of holders of record on the relevant record date to receive cash
interest due on the relevant interest payment date), if redeemed during the
12-month period beginning on August 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2008

  	
   

  	
  109.000

  	
  %

  
	
  2009

  	
   

  	
  106.000

  	
  %

  
	
  2010

  	
   

  	
  103.000

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition,
at any time and from time to time prior to August 15, 2007, the Company may
redeem in the aggregate up to 35% of the original principal amount at maturity
of the Securities with the Net Cash Proceeds of one or more Equity Offerings
received by the Company at a redemption price of 112.250% of the Accreted Value
thereof, plus Additional Interest, if any, to the redemption date (subject to
the right of Holders of record on the relevant record date to receive cash
interest due on the relevant interest payment date); provided, however, that at least 65% of the original
principal amount at maturity of the Securities must remain outstanding after
each such redemption; provided further,
that each such redemption occurs within 120 days of the date of closing of such
Equity Offering.

 

A-5

 

If the
optional redemption date is on or after an interest record date and on or
before the related interest payment date, the accrued and unpaid cash interest,
if any, will be paid to the Person in whose name the Security is registered at
the close of business on such record date, and no additional cash interest will
be payable to Holders whose Securities will be subject to redemption by the
Company.

 

In the case of
any partial redemption, selection of the Securities for redemption will be made
by the Trustee in compliance with the requirements of the principal national
securities exchange, if any, on which the Securities are listed or, if the
Securities are not listed, then on a pro rata basis, by lot or by such other
method as the Trustee in its sole discretion shall deem to be fair and
appropriate, although no Securities of $1,000 in original principal amount at
maturity or less will be redeemed in part. 
Any such notice to the Trustee may be cancelled at any time prior to
notice of such redemption being mailed to any Holder and shall thereby be void
and of no effect.  If any Security is to
be redeemed in part only, the notice of redemption relating to such Security
shall state the portion of the principal amount at maturity thereof to be
redeemed. A new Security in principal amount at maturity equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Security. 
On and after the redemption date, interest will cease to accrue on
Securities or portions thereof called for redemption as long as the Company has
deposited with the Paying Agent funds in satisfaction of the applicable
redemption price pursuant to the Indenture.

 

In addition,
at any time on or after August 15, 2005 and prior to August 15, 2008, within 90
days following the occurrence of a Change of Control, the Company may redeem
the Securities, in whole but not in part, at the redemption prices set forth in
Section 5.1(b) of the Indenture.  Notice
of redemption of the Securities pursuant to this paragraph shall be mailed to
holders of the Securities not more than 60 days following the occurrence of a
Change of Control, which notice shall state the redemption date (which shall be
no earlier than 30 days nor later than 60 days from the date such notice is
mailed).

 

6.   Repurchase Provisions

 

(a)           Upon a Change of
Control any Holder of Securities will have the right to cause the Company to
repurchase all or any part (equal to $1,000 of principal amount at maturity or
an integral multiple thereof) of the Securities of such Holder at a purchase
price in cash equal to 101% of the Accreted Value of the Securities, plus (x)
if the Change of Control Payment Date occurs prior to August 15, 2008, accrued
and unpaid Additional Interest, if any, to the date of purchase or (y) if the
Change of Control Payment Date occurs on or after August 15, 2008, accrued and
unpaid cash interest (including Additional Interest), if any, to the date of
repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date) as provided
in, and subject to the terms of, the Indenture.

 

(b)           In the event of an
Asset Disposition that requires the purchase of Securities pursuant to Section
3.7(b) of the Indenture, the Company will be required to apply such Excess
Proceeds to the repayment of the Securities and any Pari Passu Notes in
accordance with the procedures set forth in Section 3.7 of the
Indenture.

 

A-6

 

7.   Denominations; Transfer; Exchange

 

The Securities
are in registered form without coupons in denominations of $1,000 of principal
amount at maturity and integral multiples of $1,000 of principal amount at
maturity.  A Holder may transfer or
exchange Securities in accordance with the Indenture.  The Registrar may require a Holder, among other things, to
furnish appropriate endorsements or transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture.  The Registrar need not register the transfer of or exchange (i)
any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) for a period
beginning 15 days before the mailing of a notice of Securities to be redeemed
and ending on the date of such mailing or (ii) any Securities for a period
beginning 15 days before an interest payment date and ending on such interest
payment date.

 

8.   Persons Deemed Owners

 

The registered
Holder of this Security may be treated as the owner of it for all purposes.

 

9.   Unclaimed Money

 

If money for
the payment of principal or interest remains unclaimed for two years, the
Trustee or Paying Agent shall pay the money back to the Company at its request
unless an abandoned property law designates another Person.  After any such payment, Holders entitled to
the money must look only to the Company and not to the Trustee for payment.

 

10.   Defeasance

 

Subject to
certain conditions set forth in the Indenture, the Company at any time may
terminate some or all of its obligations under the Securities and the Indenture
if the Company deposits with the Trustee money or U.S. Government Obligations
for the payment of Accreted Value and interest on the Securities to redemption
or maturity, as the case may be.

 

11.   Amendment, Waiver

 

Subject to
certain exceptions set forth in the Indenture, (i) the Indenture or the
Securities may be amended with the written consent of the Holders of at least a
majority in principal amount at maturity of the then-outstanding Securities and
(ii) any default (other than with respect to nonpayment or in respect of a
provision that cannot be amended without the written consent of each
Securityholder affected) or noncompliance with any provision may be waived with
the written consent of the Holders of a majority in principal amount at
maturity of the then-outstanding Securities. 
Subject to certain exceptions set forth in the Indenture, without the
consent of any Securityholder, the Company and the Trustee may amend the
Indenture or the Securities to cure any ambiguity, omission, defect or
inconsistency, or to comply with Article IV of the Indenture, or to
provide for uncertificated Securities in addition to or in place of
certificated Securities, or to add guarantees with respect to the Securities,
to release a Guarantor in accordance with the Indenture or to secure the
Securities, or to add additional covenants of the Company, or surrender rights
and powers conferred on the Company, or to comply with any request of the SEC
in connection with qualifying the Indenture under the TIA, or to make any 

 

A-7

 

change that does not adversely affect the
rights of any Securityholder, or to provide for the issuance of Exchange
Securities.

 

12.   Defaults and Remedies

 

Under the
Indenture, Events of Default include (i) default for 30 days in payment of
interest or Additional Interest when due on the Securities; (ii) default in
payment of principal or premium, if any, on the Securities at Stated Maturity,
upon required repurchase or upon optional redemption pursuant to paragraphs 5
and 6 of the Securities, upon declaration or otherwise; (iii) the failure
by the Company or any Guarantor to comply with its obligations under Article
IV of the Indenture; (iv) failure by the Company to comply for
30 days after notice with any of its obligations under the covenants
described under Sections 3.2 through 3.16 inclusive of the
Indenture (in each case, other than a failure to purchase Securities when
required pursuant to Section 3.7 or 3.9, which failure shall
constitute an Event of Default under clause (ii) above and other than a
failure to comply with Article IV which is covered by clause (iii)
above); (v) the failure by the Company to comply for 60 days after
written notice (specifying the default and demanding that the same be remedied)
with its other agreements contained in the Indenture or under the Securities
(other than those referred to in (i), (ii), (iii) or (iv) above);
(vi) default under any mortgage, indenture or instrument under which there
may be issued or by which there may be secured or evidenced any Indebtedness
for money borrowed by the Company or any of its Restricted Subsidiaries (or the
payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries), other than Indebtedness owed to the Company or a Restricted
Subsidiary, whether such Indebtedness or guarantee now exists, or is created
after the date of the Indenture, which default (a) is caused by a failure to
pay principal of, or interest or premium, if any, on such Indebtedness after
final maturity (after giving effect to any applicable grace period provided in
such Indebtedness) (“payment default”) or (b) results in the
acceleration of such Indebtedness prior to its maturity (the “cross
acceleration provision”) and, in each case, the principal amount of any
such Indebtedness, together with the principal amount of any other such
Indebtedness under which there has been a payment default or the maturity of
which has been so accelerated, aggregates $10.0 million or more or its foreign
currency equivalent at the time; (vii) certain events of bankruptcy, insolvency
or reorganization of the Company or a Significant Subsidiary (other than any
Receivables Entity) or group of Restricted Subsidiaries (other than any
Receivables Entity) that, taken together (as of the latest audited consolidated
financial statements for the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary (the “bankruptcy provisions”);
(viii) failure by the Company or any Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest audited consolidated
financial statements for the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary to pay final judgments aggregating in
excess of $10.0 million or its foreign currency equivalent at the time (net of
any amounts with respect to which a reputable and creditworthy insurance
company has acknowledged liability or coverage for in writing), which judgments
are not paid, discharged or stayed for a period of 60 days (the “judgment
default provision”) or (ix) any Notes Guarantee of a Significant
Subsidiary, or a group of Subsidiary Guarantors that, taken together (as of the
latest audited consolidated financial statements for the Company) would
collectively represent a Significant Subsidiary, ceases to be in full force and
effect (except as contemplated by the terms of the Indenture) or is declared
null and void in a judicial proceeding or any Guarantor denies or disaffirms
its obligations under the Indenture or its Notes Guarantee.  However, a default under clauses (iv)

 

A-8

 

and (v) will not constitute an Event of
Default until the Trustee or the Holders of 25% or more in principal amount at
maturity of the outstanding Securities notify the Company of the default and
the Company does not cure such default within the time specified in
clauses (iv) and (v) hereof after receipt of such notice.

 

If an Event of
Default occurs and is continuing (other than an Event of Default pursuant to
clause (vii) above), the Trustee or the Holders of at least 25% in principal
amount of the Securities may declare all the Securities to be due and payable
immediately.  If an Event of Default
occurs pursuant to clause (vii) above and is continuing, the Securities will be
due and payable immediately without any action on the part of the Trustee or
the Holders.

 

Securityholders
may not enforce the Indenture or the Securities except as provided in the
Indenture.  The Trustee may refuse to
enforce the Indenture or the Securities unless it receives reasonable indemnity
or security.  Subject to certain
limitations, Holders of a majority in principal amount at maturity of the
Securities may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from
Securityholders notice of any continuing Default or Event of Default (except a
Default or Event of Default in payment of principal or interest) if it
determines that withholding notice is in their interest.

 

13.   Trustee Dealings with the Company

 

Subject to
certain limitations set forth in the Indenture, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its affiliates with the same rights it would have if it were not Trustee.

 

14.   No Recourse Against Others

 

An
incorporator, director, officer, employee, stockholder or controlling person,
as such, of the Company shall not have any liability for any obligations of the
Company under the Securities or the Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation.  By accepting a Security, each Securityholder
waives and releases all such liability. 
The waiver and release are part of the consideration for the issue of
the Securities.

 

15.   Authentication

 

This Security
shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent acting on its behalf) manually signs the certificate of
authentication on the other side of this Security.

 

16.   Abbreviations

 

Customary
abbreviations may be used in the name of a Securityholder or an assignee, such
as TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN
(= joint tenants with rights of survivorship and not as tenants in common),
CUST (= custodian) and U/G/M/A (= Uniform Gift to Minors Act).

 

A-9

 

17.   CUSIP Numbers

 

Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the
Securities and has directed the Trustee to use CUSIP numbers in notices of
redemption as a convenience to Securityholders.  No representation is made as to the accuracy of such numbers
either as printed on the Securities or as contained in any notice of redemption
and reliance may be placed only on the other identification numbers placed
thereon.

 

18.   Governing Law

 

This Security
shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

The Company
will furnish to any Securityholder upon written request and without charge to
the Securityholder a copy of the Indenture, which has in it the text of this
Security in larger type.  Requests may
be made to:

 

MQ Associates, Inc.

4300 North Point Parkway

Alpharetta, Georgia 30022

Attention: Thomas C. Gentry, Chief Financial
Officer

 

A-10

 

ASSIGNMENT FORM

 

To assign this
Security, fill in the form below:

 

I or we assign
and transfer this Security to

 

 

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

 

 

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

 

and irrevocably
appoint
                           
agent to transfer this Security on the books of the Company.  The agent may substitute another to act for
him.

 

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
  (Signature must be guaranteed)

  
						

 

 

Sign exactly
as your name appears on the other side of this Security.

 

The
signature(s) should be guaranteed by an eligible guarantor institution (banks,
stockbrokers, savings and loan associations and credit unions with membership
in an approved signature guarantee medallion program), pursuant to S.E.C. Rule
17Ad-15.

 

In connection with any transfer or exchange of any of the Securities
evidenced by this certificate occurring prior to the date that is two years
after the later of the date of original issuance of such Securities and the
last date, if any, on which such Securities were owned by the Company or any
Affiliate of the Company, the undersigned confirms that such Securities are
being:

 

CHECK ONE BOX
BELOW:

 

1o                             acquired
for the undersigned’s own account, without transfer; or

 

2o                             transferred
to the Company; or

 

3o                             transferred
pursuant to and in compliance with Rule 144A under the Securities Act of 1933,
as amended (the “Securities Act”); or

 

4o                             transferred
pursuant to an effective registration statement under the Securities Act; or

 

5o                             transferred
pursuant to and in compliance with Regulation S under the Securities Act; or

 

A-11

 

6o                             transferred
to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act), that has furnished to the Trustee a
signed letter containing certain representations and agreements (the form of
which letter appears as Section 2.7 of the Indenture); or

 

7o                             transferred
pursuant to another available exemption from the registration requirements of the
Securities Act of 1933.

 

Unless one of
the boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any person other than the
registered Holder thereof; provided, however,
that if box (5), (6) or (7) is checked, the Trustee or the Company may require,
prior to registering any such transfer of the Securities, in their sole
discretion, such legal opinions, certifications and other information as the
Trustee or the Company may reasonably request to confirm that such transfer is
being made pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act of 1933, such as the
exemption provided by Rule 144 under such Act.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Signature must be guaranteed)

  	
  Signature

  
				

 

 

The
signature(s) should be guaranteed by an eligible guarantor institution (banks,
stockbrokers, savings and loan associations and credit unions with membership
in an approved signature guarantee medallion program), pursuant to S.E.C. Rule
17Ad-15.

 

TO BE
COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

 

The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities Act
of 1933, as amended, and is aware that the sale to it is being made in reliance
on Rule 144A and acknowledges that it has received such information regarding
the Company as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the
transferor is relying upon the undersigned’s foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

 

	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  

 

A-12

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL SECURITY

 

The following increases or decreases in this
Global Security have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of
  decrease in Principal

  Amount at Maturity of this

  Global Security

  	
   

  	
  Amount of
  increase in Principal

  Amount at Maturity of this

  Global Security

  	
   

  	
  Principal
  Amount at Maturity of

  this Global Security following

  such decrease or increase

  	
   

  	
  Signature
  of authorized

  signatory of Trustee or

  Securities Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-13

 

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Security purchased by the Company pursuant to Section 3.7
or 3.9 of the Indenture, check either box:

 

	
   

  	
   

  
	
  o

  	
  o

  
	
  3.7

  	
  3.9

  

 

If you want to
elect to have only part of this Security purchased by the Company pursuant to Section
3.7 or 3.9 of the Indenture, state the amount in principal amount at
maturity (must be integral multiple of $1,000):  $

 

	
  Date:

  	
   

  	
   

  	
  Your Signature

  	
   

  
	
   

  	
  (Sign exactly as your name
  appears on the other side of the Security)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
  (Signature must be guaranteed)

  
						

 

The
signature(s) should be guaranteed by an eligible guarantor institution (banks,
stockbrokers, savings and loan associations and credit unions with membership
in an approved signature guarantee medallion program), pursuant to S.E.C. Rule
17Ad-15.

 

A-14

 

EXHIBIT B

 

 

[FORM OF FACE
OF SERIES B NOTE]

 

 

[Depositary
Legend, if applicable]

[Original Issue Discount Legend]

 

	
  No.
  [     ]

  	
   

  	
  Principal Amount at Maturity
  $[                    ]

  
	
   

  	
   

  	
  CUSIP NO.

  	
   

  	
   

  

 

 

MQ ASSOCIATES,
INC.

 

121⁄4% Senior
Discount Note, Series B, due 2012

 

MQ Associates,
Inc., a Delaware Corporation, promises to pay to
[                      ],
or registered assigns, the principal sum of
[                                        ]
Dollars, on August 15, 2012.

 

Interest
Payment Dates:  February 15 and August
15

 

Record
Dates:  February 1 and August 1

 

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

 

B-1

 

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

 

 

	
   

  	
  MQ ASSOCIATES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

TRUSTEE’S
CERTIFICATE OF

AUTHENTICATION

 

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

 

	
   

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, As Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
                           ,
  20     

  	
   

  
						

 

B-2

 

[FORM OF
REVERSE SIDE OF SERIES B NOTE]

 

121⁄4% Senior
Discount Note, Series B, due 2012

 

1.   Interest

 

MQ Associates,
Inc., a Delaware corporation (such corporation, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the
“Company”), promises to pay interest on the principal amount of this Security
at the rate per annum shown above.

 

The Senior
Discount Notes due 2012 (the “Securities”) will accrete in value from the Issue
Date to, but not including, August 15, 2008 at a rate of 121⁄4% per annum,
compounded semi-annually as provided in the definition of “Accreted Value” in
the Indenture such that the Accreted Value will equal the full principal amount
at maturity on August 15, 2008.  Cash
interest will not accrue on the Securities prior to August 15, 2008.  Cash interest will accrue on the Securities
at the rate of 121⁄4% per annum from August 15, 2008 or from the most recent date
to which interest has been paid, and accrued cash interest will be payable
semi-annually in cash and in arrears to the Holders of record on each February
1 and August 1 immediately preceding the interest payment date on February 15
and August 15 of each year, commencing February 15, 2009.  Interest will be computed on the basis of a
360-day year comprised of twelve 30-day months.

 

The Company is
required to make payments of accrued interest (whether in the form of an
increase in the Accreted Value of the Securities or otherwise) in an amount and
at a time such that the Securities will not be issued with “significant
original issue discount” within the meaning of Section 163(i)(2) of the
Code.  As such, the Company will pay by
the end of the first accrual period ending after the fifth anniversary of the
Issue Date an amount such that at no time during the continued term of the
Securities will there be accrued but unpaid interest on the Securities
exceeding an amount equal to the product of (i) the original issue price of the
Initial Securities (within the meaning of Section 1273(b) and Section 1274(a)
of the Code) and (ii) the Initial Securities’ yield to maturity.  Moreover, the Company may make payments of
accrued and unpaid interest to the Holders of the Securities as of August 15,
2008, in addition to making the payment by the time described in the preceding
sentence.  Any payments made pursuant
this paragraph will reduce the Accreted Value and principal amount at maturity
of the Securities; however, the amount of such reduction of Accreted Value and
principal amount at maturity of the Securities will be the Accreted Value and
principal amount at maturity of Securities that the Company could have redeemed
if it had instead applied such payments of accrued interest to make a partial
redemption of the Securities at the applicable redemption prices described set
forth in paragraph 5 hereof.  In
addition, all such payments will be made in accordance with the notice and
other applicable provisions set forth in Section 2.13(b) of the Indenture.

 

2.   Method of Payment

 

By no later
than 10:00 a.m. (New York City time) on the date on which any principal of or
cash interest on any Security is due and payable, the Company shall irrevocably
deposit with the Trustee or the Paying Agent money sufficient to pay such
principal, premium, if

 

B-3

 

any, and/or interest.  The Company will pay cash interest (except
Defaulted Interest) to the Persons who are registered Holders of Securities at
the close of business on the February 1 or August 1 next preceding the interest
payment date even if Securities are cancelled, repurchased or redeemed after
the record date and on or before the interest payment date.  Holders must surrender Securities to a
Paying Agent to collect principal payments. 
The Company will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and
private debts. Payments in respect of Securities represented by a Global
Security (including principal, premium, if any, and interest) will be made by
the transfer of immediately available funds to the accounts specified by The
Depository Trust Company or any successor depositary.  The Company will make all payments in respect of a Definitive
Security (including principal, premium, if any, and interest) by mailing a
check to the registered address of each Holder thereof; provided, however,
that payments on the Securities may also be made, in the case of a Holder of at
least $1,000,000 aggregate principal amount at maturity of Securities, by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such
account no later than 15 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

 

3.   Paying Agent and Registrar

 

Initially,
Wachovia Bank, National Association (the “Trustee”), will act as Trustee,
Paying Agent and Registrar.  The Company
may appoint and change any Paying Agent, Registrar or co-registrar without
notice to any Securityholder.  The Company
or any of its Restricted Subsidiaries may act as Paying Agent, Registrar or
co-registrar.

 

4.   Indenture

 

The Company
issued the Securities under an Indenture dated as of August 24, 2004 (as it may
be amended or supplemented from time to time in accordance with the terms
thereof, the “Indenture”), between the Company and the Trustee.  The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in
effect on the date of the Indenture (the “Act”).  Capitalized terms used herein and not defined herein have the
meanings ascribed thereto in the Indenture. 
The Securities are subject to all such terms, and Securityholders are
referred to the Indenture and the Act for a statement of those terms.

 

The Securities
are general unsecured senior obligations of the Company.  The aggregate principal amount of securities
that may be authenticated and delivered under the Indenture is unlimited.  The Securities include (i) $136,000,000
aggregate principal amount at maturity of the Company’s 121⁄4% Senior Discount
Notes, Series A, due 2012 issued under the Indenture on August 24, 2004 (herein
called “Initial Securities”), (ii) if and when issued, additional 121⁄4% Senior
Discount Notes, Series A, due 2012 or 121⁄4% Senior Discount Notes, Series B, due
2012 of the Company that may be issued from time to time under the Indenture
subsequent to August 24, 2004 (herein called “Additional Securities”) and (iii)
if and when issued, the Company’s 121⁄4% Senior Discount Notes, Series B, due
2012 that may be issued from time to time under the Indenture in exchange for
Initial Securities or Additional Securities

 

B-4

 

in an offer registered under the Securities
Act as provided in the Registration Rights Agreement (herein called “Exchange
Securities”).  The Initial Securities,
Additional Securities and Exchange Securities are treated as a single class of
securities under the Indenture.  This is
one of the [Additional] [Exchange] Securities. 
The Indenture imposes certain limitations on, among other things, the
Incurrence of Indebtedness by the Company and its Restricted Subsidiaries, the
payment of dividends and other distributions on the Capital Stock of the
Company and its Restricted Subsidiaries, the purchase or redemption of Capital
Stock of the Company and Capital Stock of such Restricted Subsidiaries, certain
purchases or redemptions of Subordinated Obligations, the sale or transfer of
assets and Capital Stock of Restricted Subsidiaries, the issuance or sale of
Capital Stock of Restricted Subsidiaries, the incurrence of certain Liens,
certain payment guarantees, the business activities and investments of the
Company and its Restricted Subsidiaries, mergers and consolidations, and
transactions with Affiliates.  In
addition, the Indenture limits the ability of the Company and its Restricted
Subsidiaries to enter into agreements that restrict distributions and dividends
from Restricted Subsidiaries.

 

5.   Redemption

 

Except as set
forth below, the Securities will not be redeemable at the option of the Company
prior to August 15, 2008.  On or after
August 15, 2008, the Securities will be redeemable, at the Company’s option, in
whole or in part, at any time upon not less than 30 nor more than 60 days
prior notice mailed by first-class mail to each Holder’s registered address, at
the following redemption prices (expressed as a percentage of Accreted Value
thereof), plus accrued and unpaid cash interest (including Additional Interest,
if any) on the Securities, if any, to the applicable redemption date (subject
to the right of holders of record on the relevant record date to receive cash
interest due on the relevant interest payment date), if redeemed during the
12-month period beginning on August 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2008

  	
   

  	
  109.000

  	
  %

  
	
  2009

  	
   

  	
  106.000

  	
  %

  
	
  2010

  	
   

  	
  103.000

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition,
at any time and from time to time prior to August 15, 2007, the Company may
redeem in the aggregate up to 35% of the original principal amount at maturity
of the Securities with the Net Cash Proceeds of one or more Equity Offerings
received by the Company at a redemption price of 112.250% of the Accreted Value
thereof, plus Additional Interest, if any, to the redemption date (subject to
the right of Holders of record on the relevant record date to receive cash
interest due on the relevant interest payment date); provided, however, that at least 65% of the original
principal amount at maturity of the Securities must remain outstanding after
each such redemption; provided further,
that each such redemption occurs within 120 days of the date of closing of such
Equity Offering.

 

B-5

 

In the case of
any partial redemption, selection of the Securities for redemption will be made
by the Trustee in compliance with the requirements of the principal national
securities exchange, if any, on which the Securities are listed or, if the
Securities are not listed, then on a pro rata basis, by lot or by such other
method as the Trustee in its sole discretion shall deem to be fair and
appropriate, although no Securities of $1,000 in original principal amount at
maturity or less will be redeemed in part. 
Any such notice to the Trustee may be cancelled at any time prior to
notice of such redemption being mailed to any Holder and shall thereby be void
and of no effect.  If any Security is to
be redeemed in part only, the notice of redemption relating to such Security
shall state the portion of the principal amount at maturity thereof to be
redeemed. A new Security in principal amount at maturity equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Security. 
On and after the redemption date, interest will cease to accrue on
Securities or portions thereof called for redemption as long as the Company has
deposited with the Paying Agent funds in satisfaction of the applicable
redemption price pursuant to the Indenture.

 

In addition,
at any time on or after August 15, 2005 and prior to August 15, 2008, within 90
days following the occurrence of a Change of Control, the Company may redeem
the Securities, in whole but not in part, at the redemption prices set forth in
Section 5.1(b) of the Indenture.  Notice
of redemption of the Securities pursuant to this paragraph shall be mailed to
holders of the Securities not more than 60 days following the occurrence of a
Change of Control, which notice shall state the redemption date (which shall be
no earlier than 30 days nor later than 60 days from the date such notice is
mailed).

 

6.   Repurchase Provisions

 

(a)           Upon a Change of
Control any Holder of Securities will have the right to cause the Company to
repurchase all or any part (equal to $1,000 of principal amount at maturity or
an integral multiple thereof) of the Securities of such Holder at a purchase
price in cash equal to 101% of the Accreted Value of the Securities, plus, if
the Change of Control Payment Date occurs on or after August 15, 2008, accrued
and unpaid cash interest, if any, to the date of repurchase (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date) as provided in, and subject to the terms
of, the Indenture.

 

(b)           In the event of an
Asset Disposition that requires the purchase of Securities pursuant to Section
3.7(b) of the Indenture, the Company will be required to apply such Excess
Proceeds to the repayment of the Securities and any Pari Passu Notes in
accordance with the procedures set forth in Section 3.7 of the
Indenture.

 

7.   Denominations; Transfer; Exchange

 

The Securities
are in registered form without coupons in denominations of $1,000 of principal
amount at maturity and integral multiples of $1,000 of principal amount at
maturity.  A Holder may transfer or
exchange Securities in accordance with the Indenture.  The Registrar may require a Holder, among other things, to
furnish appropriate endorsements or transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture.  The Registrar need not register the transfer of or exchange (i)
any Securities selected for redemption

 

B-6

 

(except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) for a period
beginning 15 days before the mailing of a notice of Securities to be redeemed
and ending on the date of such mailing or (ii) any Securities for a period
beginning 15 days before an interest payment date and ending on such interest
payment date.

 

8.   Persons Deemed Owners

 

The registered
Holder of this Security may be treated as the owner of it for all purposes.

 

9.   Unclaimed Money

 

If money for
the payment of principal or interest remains unclaimed for two years, the
Trustee or Paying Agent shall pay the money back to the Company at its request
unless an abandoned property law designates another Person.  After any such payment, Holders entitled to
the money must look only to the Company and not to the Trustee for payment.

 

10.   Defeasance

 

Subject to
certain conditions set forth in the Indenture, the Company at any time may
terminate some or all of its obligations under the Securities and the Indenture
if the Company deposits with the Trustee money or U.S. Government Obligations
for the payment of Accreted Value and interest on the Securities to redemption
or maturity, as the case may be.

 

11.   Amendment, Waiver

 

Subject to
certain exceptions set forth in the Indenture, (i) the Indenture or the
Securities may be amended with the written consent of the Holders of at least a
majority in principal amount at maturity of the then-outstanding Securities and
(ii) any default (other than with respect to nonpayment or in respect of a
provision that cannot be amended without the written consent of each
Securityholder affected) or noncompliance with any provision may be waived with
the written consent of the Holders of a majority in principal amount at
maturity of the then-outstanding Securities. 
Subject to certain exceptions set forth in the Indenture, without the
consent of any Securityholder, the Company and the Trustee may amend the
Indenture or the Securities to cure any ambiguity, omission, defect or
inconsistency, or to comply with Article IV of the Indenture, or to
provide for uncertificated Securities in addition to or in place of
certificated Securities, or to add guarantees with respect to the Securities,
to release a Guarantor in accordance with the Indenture or to secure the
Securities, or to add additional covenants of the Company, or surrender rights
and powers conferred on the Company, or to comply with any request of the SEC
in connection with qualifying the Indenture under the TIA, or to make any
change that does not adversely affect the rights of any Securityholder, or to
provide for the issuance of Exchange Securities.

 

12.   Defaults and Remedies

 

Under the
Indenture, Events of Default include (i) default for 30 days in payment of
interest when due on the Securities; (ii) default in payment of principal or
premium, if any, on the Securities at Stated Maturity, upon required repurchase
or upon optional redemption pursuant

 

B-7

 

to paragraphs 5 and 6 of the Securities, upon
declaration or otherwise; (iii) the failure by the Company or any
Guarantor to comply with its obligations under Article IV of the
Indenture; (iv) failure by the Company to comply for 30 days after
notice with any of its obligations under the covenants described under Sections
3.2 through 3.16 inclusive of the Indenture (in each case, other
than a failure to purchase Securities when required pursuant to Section 3.7
or 3.9, which failure shall constitute an Event of Default under
clause (ii) above and other than a failure to comply with Article IV
which is covered by clause (iii) above); (v) the failure by the Company to
comply for 60 days after written notice (specifying the default and
demanding that the same be remedied) with its other agreements contained in the
Indenture or under the Securities (other than those referred to in (i), (ii),
(iii) or (iv) above); (vi) default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Company
or any of its Restricted Subsidiaries), other than Indebtedness owed to the
Company or a Restricted Subsidiary, whether such Indebtedness or guarantee now
exists, or is created after the date of the Indenture, which default (a) is
caused by a failure to pay principal of, or interest or premium, if any, on
such Indebtedness after final maturity (after giving effect to any applicable
grace period provided in such Indebtedness) (“payment default”) or (b)
results in the acceleration of such Indebtedness prior to its maturity (the “cross
acceleration provision”) and, in each case, the principal amount of any
such Indebtedness, together with the principal amount of any other such
Indebtedness under which there has been a payment default or the maturity of
which has been so accelerated, aggregates $10.0 million or more or its foreign
currency equivalent at the time; (vii) certain events of bankruptcy, insolvency
or reorganization of the Company or a Significant Subsidiary (other than any
Receivables Entity) or group of Restricted Subsidiaries (other than any
Receivables Entity) that, taken together (as of the latest audited consolidated
financial statements for the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary (the “bankruptcy provisions”);
(viii) failure by the Company or any Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary to pay final judgments
aggregating in excess of $10.0 million or its foreign currency equivalent at
the time (net of any amounts with respect to which a reputable and creditworthy
insurance company has acknowledged liability or coverage for in writing), which
judgments are not paid, discharged or stayed for a period of 60 days (the “judgment
default provision”) or (ix) any Notes Guarantee of a Significant
Subsidiary, or a group of Subsidiary Guarantees that, taken together (as of the
latest audited consolidated financial statements for the Company) would
collectively represent a Significant Subsidiary, ceases to be in full force and
effect (except as contemplated by the terms of the Indenture) or is declared
null and void in a judicial proceeding or any Guarantor denies or disaffirms
its obligations under the Indenture or its Notes Guarantee.  However, a default under clauses (iv)
and (v) will not constitute an Event of Default until the Trustee or the
Holders of 25% or more in principal amount at maturity of the outstanding
Securities notify the Company of the default and the Company does not cure such
default within the time specified in clauses (iv) and (v) hereof after
receipt of such notice.

 

If an Event of
Default occurs and is continuing (other than an Event of Default pursuant to
clause (vii) above), the Trustee or the Holders of at least 25% in principal
amount of the Securities may declare all the Securities to be due and payable
immediately.  If an Event of

 

B-8

 

Default occurs pursuant to clause (vii) above
and is continuing, the Securities will be due and payable immediately without
any action on the part of the Trustee or the Holders.

 

Securityholders
may not enforce the Indenture or the Securities except as provided in the
Indenture.  The Trustee may refuse to
enforce the Indenture or the Securities unless it receives reasonable indemnity
or security.  Subject to certain
limitations, Holders of a majority in principal amount at maturity of the
Securities may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from
Securityholders notice of any continuing Default or Event of Default (except a
Default or Event of Default in payment of principal or interest) if it
determines that withholding notice is in their interest.

 

13.   Trustee Dealings with the Company

 

Subject to
certain limitations set forth in the Indenture, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its affiliates with the same rights it would have if it were not Trustee.

 

14.   No Recourse Against Others

 

An
incorporator, director, officer, employee, stockholder or controlling person,
as such, of the Company shall not have any liability for any obligations of the
Company under the Securities or the Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation.  By accepting a Security, each Securityholder
waives and releases all such liability. 
The waiver and release are part of the consideration for the issue of
the Securities.

 

15.   Authentication

 

This Security
shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent acting on its behalf) manually signs the certificate of
authentication on the other side of this Security.

 

16.   Abbreviations

 

Customary
abbreviations may be used in the name of a Securityholder or an assignee, such
as TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN
(= joint tenants with rights of survivorship and not as tenants in common),
CUST (= custodian) and U/G/M/A (= Uniform Gift to Minors Act).

 

17.   CUSIP Numbers

 

Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures the Company has caused CUSIP numbers to be printed on the Securities
and has directed the Trustee to use CUSIP numbers in notices of redemption as a
convenience to Securityholders.  No
representation is made as to the accuracy of such numbers

 

B-9

 

either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

 

18.   Governing Law

 

This Security
shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

The Company
will furnish to any Securityholder upon written request and without charge to
the Securityholder a copy of the Indenture which has in it the text of this
Security in larger type.  Requests may
be made to:

 

MQ Associates,
Inc.

4300 North Point Parkway

Alpharetta, Georgia 30022

Attention: Thomas C. Gentry, Chief Financial Officer

 

B-10

 

 

ASSIGNMENT FORM

 

To assign this Security, fill in the form below:

 

I or we assign and transfer this Security to

 

 

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

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

 

and irrevocably appoint                              
agent to transfer this Security on the books of the Company.  The agent may substitute another to act for
him.

 

 

	
  Date:

  	
   

  	
   

  	
  Your Signature

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
  (Signature must be guaranteed)

  
						

 

 

Sign exactly as your name appears on the other side of this Security.

 

The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program), pursuant
to S.E.C. Rule 17Ad-15.

 

B-11

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

 

The following increases or decreases in this Global Security have been
made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of
  decrease in Principal

  Amount at Maturity of this

  Global Security

  	
   

  	
  Amount of
  increase in Principal

  Amount at Maturity of this

  Global Security

  	
   

  	
  Principal
  Amount at Maturity of

  this Global Security following

  such decrease or increase

  	
   

  	
  Signature
  of authorized

  signatory of Trustee or

  Securities Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-12

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Security purchased by the Company
pursuant to Section 3.7 or 3.9 of the Indenture, check
either box:

 

	
   

  	
   

  
	
  o

  	
  o

  
	
  3.7

  	
  3.9

  

 

If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 3.7 or 3.9 of the Indenture,
state the amount in principal amount at maturity (must be integral multiple of
$1,000): $

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign
  exactly as your name appears on the other side of the Security)

  
	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  
	
  (Signature must be guaranteed)

  
							

 

 

The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program),
pursuant to S.E.C. Rule 17Ad-15.

 

B-13

 

EXHIBIT C

 

FORM OF SUPPLEMENTAL INDENTURE CONSTITUTING NOTES GUARANTEE

 

This Supplemental Indenture, dated as of
[                        ],
20     (this “Supplemental Indenture” or “Guarantee”),
among [name of Subsidiary Guarantor]
(the “Guarantor”), MQ Associates, Inc. (together with its successors and
assigns, the “Company”), [each other then existing Subsidiary Guarantor
under the Indenture referred to below,] and Wachovia Bank, National
Association, as Trustee under the Indenture referred to below.

 

W I T N E S S E T H:

 

WHEREAS, the Company and the Trustee have heretofore executed and
delivered an Indenture, dated as of August 24, 2004 (as amended,
supplemented, waived or otherwise modified, the “Indenture”), providing
for the issuance of 121⁄4% Senior Discount Notes due 2012 of the Company (the “Securities”);

 

WHEREAS, Section 3.11 of the Indenture provides that the
Company is required to cause each Domestic Restricted Subsidiary (other than a
Receivables Entity) that Guarantees any Indebtedness of the Company (other than
Indebtedness and other obligations under the Senior Credit Agreement, the
Senior Subordinated Notes and the Guarantees of other Indebtedness of the
Company consisting solely of Guarantees of Indebtedness of one or more of the
Company’s Subsidiaries) to execute and deliver to the Trustee a supplemental
indenture pursuant to which such Subsidiary will Guarantee payment of the
Securities on the same terms as the Guarantee of such Indebtedness except that
if such Indebtedness is a Subordinated Obligation, any such Guarantee of such
Restricted Subsidiary with respect to such Indebtedness shall be subordinated
to such Subsidiary Guarantor’s Guarantee of the Securities to the same extent
as such Indebtedness is subordinated to the Securities; and

 

WHEREAS, pursuant to Section 9.1 of the Indenture, the
Trustee and the Company are authorized to execute and deliver this Supplemental
Indenture to amend the Indenture, without the consent of any Securityholder;

 

NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt of which is hereby acknowledged, the
Guarantor, the Company, [the other Subsidiary Guarantors] and the Trustee
mutually covenant and agree for the equal and ratable benefit of the Holders of
the Securities as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.1  Defined Terms.  As used in this Supplemental Indenture,
terms defined in the Indenture or in the preamble or recital hereto are used
herein as therein defined, except that the term “Holders” in this
Supplemental Indenture shall refer to the term

 

C-1

 

“Securityholders” as defined in the Indenture and the Trustee acting on
behalf or for the benefit of such Holders. 
The words “herein,” “hereof” and “hereby” and other words of similar
import used in this Supplemental Indenture refer to this Supplemental Indenture
as a whole and not to any particular section hereof.

 

ARTICLE II

 

Agreement to be Bound; Guarantee

 

SECTION 2.1  Agreement to be
Bound.  The Guarantor hereby becomes
a party to the Indenture as a Subsidiary Guarantor and as such will have all of
the rights and be subject to all of the obligations and agreements of a
Subsidiary Guarantor under the Indenture. 
The Guarantor agrees to be bound by all of the provisions of the
Indenture applicable to a Subsidiary Guarantor and to perform all of the
obligations and agreements of a Subsidiary Guarantor under the Indenture.

 

SECTION 2.2   Guarantee.  The Guarantor hereby fully, unconditionally and irrevocably
guarantees, as primary obligor and not merely as surety, jointly and severally
with each other Subsidiary Guarantor, to each Holder of the Securities, the
full and punctual payment when due, whether at maturity, by acceleration, by
redemption or otherwise, of the Accreted Value of, premium, if any, and
interest on the Securities and all other obligations of the Company under the
Indenture (all the foregoing being hereinafter collectively called the
“Obligations”).  The Guarantor further
agrees (to the extent permitted by law) that the Obligations may be extended or
renewed, in whole or in part, without notice or further assent from it, and
that it will remain bound under this Article II notwithstanding any
extension or renewal of any Obligation.

 

The Guarantor waives presentation to, demand of payment from and
protest to the Company of any of the Obligations and also waives notice of
protest for nonpayment.  The Guarantor
waives notice of any default under the Securities or the Obligations.  The obligations of the Guarantor hereunder
shall not be affected by (a) the failure of any Holder to assert any claim or
demand or to enforce any right or remedy against the Company or any other
person under the Indenture, the Securities or any other agreement or otherwise;
(b) any extension or renewal of any thereof; (c) any rescission, waiver,
amendment or modification of any of the terms or provisions of the Indenture,
the Securities or any other agreement; (d) the release of any security held by
any Holder or the Trustee for the Obligations or any of them; (e) the failure
of any Holder to exercise any right or remedy against any other Subsidiary
Guarantor; or (f) any change in the ownership of the Company.

 

The Guarantor further agrees that its Guarantee herein constitutes a
guarantee of payment when due (and not a guarantee of collection) and waives
any right to require that any resort be had by any Holder to any security held
for payment of the Obligations.

 

The obligations of the Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason (other than
payment of the Obligations in full), including any claim of waiver, release,
surrender, alteration or compromise, and shall not

 

C-2

 

be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise.  Without limiting the generality of the foregoing, the obligations
of the Guarantor herein shall not be discharged or impaired or otherwise
affected by the failure of any Holder to assert any claim or demand or to
enforce any remedy under the Indenture, the Securities or any other agreement,
by any waiver or modification of any thereof, by any default, failure or delay,
willful or otherwise, in the performance of the Obligations, or by any other
act or thing or omission or delay to do any other act or thing which may or might
in any manner or to any extent vary the risk of the Guarantor or would
otherwise operate as a discharge of the Guarantor as a matter of law or equity.

 

The Guarantor further agrees that its Guarantee herein shall continue
to be effective or be reinstated, as the case may be, if at any time payment,
or any part thereof, of principal of or interest on any of the Obligations is
rescinded or must otherwise be restored by any Holder upon the bankruptcy or
reorganization of the Company or otherwise.

 

In furtherance of the foregoing and not in limitation of any other
right which any Holder has at law or in equity against the Guarantor by virtue
hereof, upon the failure of the Company to pay any of the Obligations when and
as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, the Guarantor hereby promises to and will, upon
receipt of written demand by the Trustee, forthwith pay, or cause to be paid,
in cash, to the Holders an amount equal to the sum of (i) the unpaid amount of
such Obligations then due and owing and (ii) accrued and unpaid interest on
such Obligations then due and owing (but only to the extent not prohibited by
law).

 

The Guarantor further agrees that, as between the Guarantor, on the one
hand, and the Holders, on the other hand, (x) the maturity of the Obligations
guaranteed hereby may be accelerated as provided in the Indenture for the
purposes of the Guarantee herein, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Obligations
guaranteed hereby and (y) in the event of any such declaration of acceleration
of such Obligations, such Obligations (whether or not due and payable) shall
forthwith become due and payable by the Guarantor for the purposes of this
Guarantee.

 

The Guarantor also agrees to pay any and all reasonable costs and
expenses (including reasonable attorneys’ fees) incurred by the Trustee or the
Holders in enforcing any rights under this Section.

 

SECTION 2.3   Limitation
on Liability; Termination, Release and Discharge.

 

(a)                                  The obligations of
the Guarantor hereunder will be limited to the maximum amount as will, after
giving effect to all other contingent and fixed liabilities of the Guarantor
(including, without limitation, any guarantees under the Credit Agreement) and
after giving effect to any collections from or payments made by or on behalf of
any other Subsidiary Guarantor in respect of the obligations of such other
Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to its
contribution obligations under the Indenture or as set forth below, result in
the obligations of the Guarantor under this Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under federal or state law.

 

C-3

 

(b)                                 Subject to Article III
and Article IV of the Indenture, the Guarantor may consolidate with
or merge into or sell its assets to the Company or another Subsidiary Guarantor
without limitation.  Upon the sale or
disposition of the Guarantor (by merger, consolidation, the sale of its Capital
Stock or the sale of all or substantially all of its assets (other than by
lease)) and whether or not the Guarantor is the surviving corporation in such
transaction to a Person which is not the Company or a Restricted Subsidiary of
the Company (other than a Receivables Entity), which sale or disposition is
otherwise in compliance with the Indenture (including, without limitation, Sections
3.4, 3.7 and 3.10), the Guarantor will be deemed released
from all its obligations under this Indenture and its Notes Guarantee and such
Notes Guarantee will terminate; provided,
however, that any such
termination will occur only to the extent that all obligations of the Guarantor
under the Senior Credit Agreement and all of its guarantees of, and under all
of its pledges of assets or other security interests which secure, any other
Indebtedness of the Company or its Restricted Subsidiaries will also terminate
upon such release, sale or transfer.

 

(c)                                  The Guarantor will be
deemed released from all its obligations under the Indenture, this Notes
Guarantee and the Registration Rights Agreement and such Notes Guarantee will
terminate upon the legal defeasance or covenant defeasance of the Securities
pursuant to the provisions of Article VIII of the Indenture.

 

(d)                                 The Guarantor will be
deemed released and relieved of its obligations under the Indenture and this
Notes Guarantee without any further action required on the part of the Company
or the Guarantor upon the designation of the Guarantor as an Unrestricted
Subsidiary in accordance with the terms of the Indenture.

 

SECTION 2.4   Right of Contribution.  The Guarantor hereby agrees that to the
extent that any Subsidiary Guarantor shall have paid more than its proportionate
share of any payment made under the Note Guarantees, the Guarantor shall be
entitled to seek and receive contribution from and against any other Subsidiary
Guarantor (including the Guarantor) who has not paid its proportionate share of
such payment.  The provisions of this
Section 2.3 shall in no respect limit the obligations and liabilities of
the Guarantor to the Trustee and the Holders and the Guarantor shall remain
liable to the Trustee and the Holders for the full amount guaranteed by the Guarantor
hereunder shall remain liable to the Holders for the full amount guaranteed by
such Guarantor hereunder.

 

SECTION 2.5   No Subrogation.  Notwithstanding any payment or payments made
by the Guarantor hereunder, the Guarantor shall not be entitled to be
subrogated to any of the rights of the Trustee or any Holder against the
Company or any other Subsidiary Guarantor or any collateral security or
guarantee or right of offset held by the Trustee or any Holder for the payment
of the Obligations, nor shall the Guarantor seek or be entitled to seek any
contribution or reimbursement from the Company or any other Subsidiary
Guarantor in respect of payments made by the Guarantor hereunder, until all
amounts owing to the Trustee and the Holders by the Company on account of the
Obligations are paid in full.  If any
amount shall be paid to the Guarantor on account of such subrogation rights at
any time when all of the Obligations shall not have been paid in full, such
amount shall be held by the Guarantor in trust for the Trustee and the Holders,
segregated from other funds of the Guarantor, and shall, forthwith upon receipt
by the 

 

C-4

 

Guarantor, be turned over to the Trustee in the exact form received by
the Guarantor (duly indorsed by the Guarantor to the Trustee, if required), to
be applied against the Obligations.

 

ARTICLE III

 

Miscellaneous

 

SECTION 3.1   Notices.  All notices and other communications pertaining to this Guarantee
or any Security shall be in writing and shall be deemed to have been duly given
upon the receipt thereof.  Such notices
shall be delivered by hand, or mailed, certified or registered mail with
postage prepaid (a) if to the Guarantor, at its address set forth below, with a
copy to the Company as provided in the Indenture for notices to the Company,
and (b) if to the Holders or the Trustee, as provided in the Indenture.  The Guarantor by notice to the Trustee may
designate additional or different addresses for subsequent notices to or communications
with the Guarantor.

 

SECTION 3.2   Parties.  Nothing expressed or mentioned herein is intended or shall be
construed to give any Person, firm or corporation, other than the Holders and
the Trustee, any legal or equitable right, remedy or claim under or in respect
of this Supplemental Indenture or the Indenture or any provision herein or
therein contained.

 

SECTION 3.3   Governing Law.  This Supplemental Indenture shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

SECTION 3.4   Severability Clause.  In case any provision in this Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby and such provision shall be ineffective only to the extent
of such invalidity, illegality or unenforceability.

 

SECTION 3.5   Waivers and Remedies.  Neither a failure nor a delay on the part of
the Holders or the Trustee in exercising any right, power or privilege under
this Supplemental Indenture shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise of
any right, power or privilege.  The rights,
remedies and benefits of the Holders and the Trustee herein expressly specified
are cumulative and not exclusive of any other rights, remedies or benefits
which either may have under this Supplemental Indenture or at law, in equity,
by statute or otherwise.

 

SECTION 3.6   Successors and Assigns.  Subject to Section 2.2 hereof, (a) this
Supplemental Indenture shall be binding upon and inure to the benefit of the
Guarantor, the Trustee, any other parties hereto, the Holders and their
respective successors and assigns and (b) in the event of any transfer or
assignment of rights by any Holder, the rights and privileges conferred upon
that party in this Supplemental Indenture and in the Securities shall
automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions of this Supplemental Indenture and the
Indenture.

 

SECTION 3.7   Modification, etc.  Subject to the provisions of, and except as
otherwise provided in, Article IX of the Indenture (including without
limitation Sections 9.1 and

 

C-5

 

9.2 thereof), no modification, amendment or waiver of any provision of
this Supplemental Indenture, nor the consent to any departure by the Guarantor
therefrom, shall in any event be effective unless the same shall be in writing
and consented to by the Trustee (with the consent of the Holders of at least a
majority in principal amount at maturity of the Securities if required by
Section 9.2 of the Indenture) and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which it was
given.  No notice to or demand on the
Guarantor in any case shall entitle such Guarantor or any other guarantor to
any other or further notice or demand in the same, similar or other
circumstances.

 

SECTION 3.8   Entire Agreement.  This Supplemental Indenture is intended by
the parties to be a final expression of their agreement in respect of the
subject matter contained herein and, together with the Indenture, supersedes
all prior agreements and understandings between the parties with respect to
such subject matter.

 

SECTION 3.9   Ratification of Indenture; Supplemental
Indentures Part of Indenture. 
Except as expressly amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. 
This Supplemental Indenture shall form a part of the Indenture for all
purposes, and every Holder of Securities heretofore or hereafter authenticated
and delivered shall be bound hereby. 
The Trustee makes no representation or warranty as to the validity or
sufficiency of this Supplemental Indenture.

 

SECTION 3.10   Counterparts.  The parties hereto may sign one or more
copies of this Supplemental Indenture in counterparts, all of which together
shall constitute one and the same agreement.

 

SECTION 3.11   Headings.  The headings of the Articles and the sections in this
Supplemental Indenture are for convenience of reference only and shall not be
deemed to alter or affect the meaning or interpretation of any provisions
hereof.

 

C-6

 

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

 

	
   

  	
  [GUARANTOR],

  
	
   

  	
  as a Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MQ
  ASSOCIATES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK NATIONAL

  ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C-7

 

SCHEDULE 3.4

 

Restricted
Payments in Connection with the Transactions

 

None.

 

 

SCHEDULE 3.6

 

Restrictions
on Distributions from Restricted Subsidiaries

 

Encumbrances pursuant to the Indenture, the Securities, the Senior
Subordinated Notes Indenture and the Senior Credit Agreement

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