Document:

Form of Performance Award Agreement

 

Exhibit 10.1

The Compensation Committee of the Board of Directors of Pro-Dex, Inc. reserves the right to change provisions of this Agreement to comply with any future accounting pronouncements, Internal Revenue Service provision changes or other applicable laws.

Performance Award Agreement

for Employees of

Pro-Dex, Inc.

2016 Equity Incentive Plan (the “Plan”)

This PERFORMANCE AWARD AGREEMENT (“Agreement”) provides for the granting by Pro-Dex, Inc., a Colorado corporation (the “Company”), to the participant, an employee of the Company or one of its subsidiaries (the “Participant”), of Performance Awards under the Plan representing a notional account equal to a corresponding number of shares of the Company’s Common Stock, no par value (the “Shares”), subject to the terms below (the “Performance Awards”). The name of the “Participant,” the “Grant Date” (or “Award Date”), the “Number of Performance Awards,” and the “Performance Targets” are stated in the “Notice of Grant” attached or posted electronically together with this Agreement and are incorporated by reference. The other terms of this award are stated in this Agreement and in the Plan. Terms not defined in this Agreement are defined in the Plan, as amended. The Plan is referred to as the “Incentive Plan” in the Notice of Grant.

1.

Award Grant. The Company hereby awards to the Participant an award of Performance Awards in respect of the number of Shares set forth in the Notice of Grant.

2.

Performance Targets. The Performance Awards granted to the Participant will vest and become payable in accordance with the Performance Targets in the Notice of Grant (the “Vesting Schedule”). This schedule indicates the performance targets which must be achieved upon which the Participant will be entitled to receive Shares. Except as otherwise provided in this Agreement, any Performance Awards that are unvested when the Participant terminates employment with the Company will be forfeited.

3.

Payment of Awards.

(a)

Each Performance Award represents the right to receive one Share when the Performance Award vests.

(b)

In the event of a Change in Control (as defined below) that constitutes a “change in control event” within the meaning of Section 409A of the Code, the Company may, in its sole discretion and in accordance with Treasury Regulation § 1.409A-3(j)(4)(ix)(B), vest (based on the closing date of, and valuation of the Company’s common stock in, the Change of Control transaction) and settle the Performance Awards and terminate this Agreement. In such event, settlement of the Performance Awards shall be made within 30 days following the Change in Control. In the event that Performance Awards are not settled pursuant to the immediately preceding sentence, such Performance Award shall be assumed by an acquirer in which case, vesting will be subject to Paragraphs 2 and 4. If the Shares cease to be outstanding immediately after the Change in Control (e.g., 

 

due to a merger with and into another entity), then the consideration to be received per Share will equal the consideration paid to each stockholder per Share generally upon the Change in Control.

(c)

Any dividends or other distributions on Shares received after vesting of the Performance Awards after applicable withholding, that are held in an account for Participant at the agent engaged by the Company for the purposes of holding the shares for Participant upon vesting (the “Agent”), will be automatically reinvested by default, in accordance with the Agent’s applicable procedures, in additional whole and/or fractional Shares. If you do not wish to have your dividends or other distributions reinvested or if you would like to change your current election you must notify the Agent prior to the record date for such dividend or distribution (or such earlier date as may be required by the Agent).

(d)

For purposes of this Agreement, “Change in Control” means:

(i)

A Change in Control as defined in Section 2.7(a) of the Plan the result of which the Company’s common stock is no longer traded on a U.S. stock exchange or over-the-counter market; or

(ii)

A Change of Control as defined in Section 2.7(c) of the Plan.

4.

Termination of Employment. If the Participant’s employment terminates during the Vesting Period, all unvested Performance Awards will be forfeited except as follows, subject to Paragraph 3:

(a)

Death. Except as otherwise provided in Paragraph 4(b), if the Participant dies, unvested Performance Awards will be forfeited.

(b)

Retirement. If the Participant formally retires upon or after the attainment of age 65, the unvested Performance Awards within two years of the date of termination will continue to vest and be paid in accordance with the Vesting Schedule. Vesting and payment in respect of any unvested Performance Award after retirement will be subject to satisfaction of the conditions precedent that the Participant neither (i) accepts an offer to work for, or otherwise agrees to actively participate in or render services to any business on behalf of any competitor of the Company, its subsidiaries, or affiliates (whether as an employee, consultant or otherwise); nor (ii) conducts himself or herself in a manner adversely affecting the Company. The term “competitor” means any business that is engaged in, or is preparing to become engaged in, medical device design and manufacturing, engineering consulting or any other business in which the Company is engaged or preparing to become engaged, or that otherwise competes with, or is preparing to compete with, the Company. If the Participant dies during active employment after the attainment of age 55 and the completion of 10 or more years of service, or after the attainment of age 65 and the completion of 5 or more years of service, the Participant will have deemed to be retired as of the date of death and this Paragraph 4(b) will apply rather than Paragraph 4(a). If the Participant dies or becomes disabled after retirement as contemplated by this Paragraph 4(b), the provisions of this Paragraph shall apply.

 

(c)

Disability. If the Participant becomes totally and permanently disabled (as determined under the Company’s long-term disability program), the unvested Performance Awards will be forfeited.

(d)

Termination of Employment Without Cause. If the Participant’s employment is terminated at the instance of the Company or relevant subsidiary without Cause (as defined below), unvested Performance Awards within two years of the date of termination will continue to vest and be paid in accordance with the Vesting Schedule and payment will be subject to satisfaction of the conditions precedent that the Participant neither (i) accepts an offer to work for, or otherwise agrees to actively participate in or render services to any business on behalf of any competitor of the Company, its subsidiaries, or affiliates (whether as an employee, consultant or otherwise); nor (ii) conducts himself or herself in a manner adversely affecting the Company. The term “competitor” means any business that is engaged in, or is preparing to become engaged in, medical device design and manufacturing, engineering consulting or other business in which the Company is engaged or preparing to become engaged, or that otherwise competes with, or is preparing to compete with, the Company. All other Performance Awards will be forfeited.

(e)

Termination of Employment By Employee. If the Participant voluntarily terminates his or her employment (e.g., by voluntarily resigning) other than due to retirement or disability, which are subject to Paragraphs 4(b) and 4(c) above, respectively, all unvested Performance Awards will be forfeited.

(f)

Termination of Employment With Cause. If the Participant is terminated for Cause, all unvested Performance Awards will be forfeited. For this purpose, “Cause” is defined in the employment agreement in effect between the Participant and the Company or any subsidiary, including an employment agreement entered into after the Grant Date (or “Award Date”). In the absence of an employment agreement, “Cause” means any breach by the Participant of any of his or her material obligations under any Company policy or procedure, including, without limitation, the Company’s Code of Ethics and Business Conduct.

(g)

Termination After a Change in Control. If, on or after a Change in Control, the Participant terminates for Good Reason (as defined below), dies, becomes disabled as described in paragraph 4(c), formally retires as described in paragraph 4(b) or is terminated at the instance of the Company or relevant subsidiary without Cause, the unvested Performance Awards will immediately vest in full and, solely if such Change in Control constitutes a “change in control event” within the meaning of Section 409A of the Code and such termination occurs within two (2) years of such “change in control event,” will be immediately paid in cash. Otherwise, such Performance Awards will immediately vest, but will only be paid at such times as they would otherwise be paid in accordance with this Agreement. For this purpose, “Good Reason” means the occurrence of any of the following, without the express written consent of the Participant:

(i)

the assignment to the Participant of any duties inconsistent in any material adverse respect with the Participant’s position, authority or responsibilities immediately prior to the Change in Control, or any other material adverse change in such position, including title, authority or responsibilities;

 

(ii)

any failure by the Company to pay any amounts for compensation or benefits owed to the Participant or a material reduction of the overall amounts of compensation and benefits in effect prior to the Change in Control, other than an insubstantial or inadvertent failure remedied by the Company promptly after receipt of notice thereof given by the Participant;

(iii)

the Company’s requiring the Participant to be based at any office or location more than fifty (50) miles from that location at which he performed his or her services for the Company immediately prior to the Change in Control, except for travel reasonably required in the performance of the Participant’s responsibilities; or

(iv)

any failure by the Company to obtain the assumption and agreement to perform this Agreement by a successor, unless such assumption occurs by operation of law.

5.

No Rights of Stock Ownership. This grant of Performance Awards does not entitle the Participant to any interest in or to any voting or other rights normally attributable to Share ownership. A Performance Award confers no rights as a shareholder of the Company until Shares are actually delivered to the Participant.

6.

Withholding. Regardless of any action the Company or the Participant’s employer (the “Employer”) takes with respect to any or all income tax, social security, payroll tax, or other tax-related withholding (“Tax-Related Items”), Participant acknowledges that the ultimate liability for all Tax- Related Items legally due by Participant is and remains his or her responsibility. Furthermore, Participant acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Performance Awards, including the grant of the Performance Awards, the vesting of the Performance Awards, the delivery of Shares, the subsequent sale of Shares acquired under the Plan and the receipt of any dividends; and (ii) do not commit to structure the terms of the grant of the Performance Awards or any aspect of Participant’s participation in the Plan to reduce or eliminate his or her liability for Tax-Related Items.

Prior to the relevant taxable event, Participant shall pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all withholding obligations of the Company and/or the Employer. In this regard, Participant authorizes the Company and/or the Employer to withhold all applicable Tax-Related Items legally payable by Participant from his or her wages or other cash compensation paid by the Company and/or the Employer or from proceeds of the sale of the Shares acquired under the Plan. Alternatively, or in addition, the Company may (i) sell or arrange for the sale of Shares that Participant acquires under the Plan to meet the withholding obligation for the Tax-Related Items, and/or (ii) withhold in Shares, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum withholding amount. If the Company satisfies the Tax-Related Item withholding obligation by withholding a number of Shares as described herein, Participant will be deemed to have been issued the full number of Shares due to Participant at vesting, notwithstanding that a number of the Shares is held back solely for purposes of such Tax-Related Items.

 

Finally, Participant shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of his or her participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue Shares under the Plan and refuse to deliver the Shares if Participant fails to comply with his or her obligations in connection with the Tax-Related Items as described in this paragraph.

7.

Nonassignability. This award may not be assigned, pledged, or transferred, except, if the Participant dies, to a designated beneficiary or by will or by the laws of descent and distribution. The foregoing restrictions do not apply to transfers under a court order, including, but not limited to, any domestic relations order.

8.

Effect Upon Employment. The Participant’s right to continue to serve the Company or any of its subsidiaries as an officer, employee, or otherwise, is not enlarged or otherwise affected by an award hereunder. Nothing in this Agreement or the Plan gives the Participant any right to continue in the employ of the Company or any of its subsidiaries or to interfere in any way with any right the Company or any subsidiary may have to terminate his or her employment at any time. Payment of Shares is not secured by a trust, insurance contract or other funding medium, and the Participant does not have any interest in any fund or specific asset of the Company by reason of this Award or the account established on his or her behalf. 

9.

Notices. Any notice required or permitted under this Agreement is deemed to have been duly given if delivered, telecopied, or mailed (certified or registered mail, return receipt requested) or sent by internationally-recognized courier guaranteeing next day delivery (a) to the Participant at the address on file in the Company’s (or relevant subsidiary’s) personnel records or (b) to the Company, attention Corporate Secretary at its principal executive offices, which are currently located at 2361 McGaw Avenue, Irvine, California.

10. 

Disclosure and Use of Information.

a.

By acknowledging and agreeing to or signing and returning the attached Notice of Grant, and as a condition of the grant of the Performance Award, the Participant hereby expressly and unambiguously consents to the collection, use, and transfer of personal data, including sensitive data, as described in this paragraph and below by and among, as necessary and applicable, the Employer, the Company and its subsidiaries and by any agent of the Company or its subsidiaries for the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan.

b.

The Participant understands that the Employer, the Company and/or its other subsidiaries holds, by means of an automated data file or otherwise, certain personal information about the Participant, including, but not limited to, name, home address and telephone number, date of birth, social security number, salary, nationality, job title, any shares or directorships held in the Company, details of all Performance Awards or other entitlement to shares awarded, canceled, exercised, vested, unvested, or outstanding in the Participant’s favor, for purposes of managing and administering the Plan (“Data”).

c.

The Participant also under stands that part or all of his or her Data may be held by the Company or its subsidiaries in connection with managing and administering previous award or incentive plans, pursuant to a prior transfer made with the Participant’s consent in respect of any previous grant of Performance Awards or other awards.

 

d.

The Participant further understands that the Employer may transfer Data to the Company or its subsidiaries as necessary to implement, administer, and manage his or her participation in the Plan. The Company and its subsidiaries may transfer data among themselves, and each, in turn, may further transfer Data to any third parties assisting the Company in the implementation, administration, and management of the Plan (“Data Recipients”).

e.

The Participant understands that the Company, its subsidiaries, and the Data Recipients are or may be located in his or her country of residence, the United States or elsewhere. The Participant authorizes the Employer, the Company, its subsidiaries, and such Data Recipients to receive, possess, use, retain, and transfer Data in electronic or other form to implement, administer, and manage his or her participation in the Plan, including any transfer of Data that the Administrator deems appropriate for the administration of the Plan and any transfer of Shares on his or her behalf to a broker or third party with whom the Shares may be deposited.

f.

The Participant understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.

g.

The Participant understands that Data will be held as long as is reasonably necessary to implement, ad minister and manage his or her participation in the Plan and he or she may op pose the processing and transfer of his or her Data and may, at any time, review the Data, request that any necessary amendments be made to it, or withdraw his or her consent by notifying the Company in writing. The Participant further understands that withdrawing consent may affect his or her ability to participate in the Plan.

11. 

Discretionary Nature and Acceptance of Award. The Participant agrees to be bound by the terms of this Agreement and acknowledges that:

a.

The Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement;

b.

The award of Performance Awards is voluntary and occasional, and does not create any contractual or other right to receive future awards of Performance Awards, or benefits in lieu of Performance Awards, even if Performance Awards have been awarded repeatedly in the past;

c.

All decisions with respect to future awards, if any, will be at the sole discretion of the Company;

d.

Participant’s participation in the Plan is voluntary;

e.

Participant’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Company or the Employer to terminate Participant’s employment at any time;

 

f.

The Award of the Performance Awards will be deemed accepted unless the Award is declined by way of written notice by the Participant within 30 days of the Award Date to the Chief Executive Officer of the Company (or if the Participant is the Chief Executive Officer, then to the Chief Financial Officer of the Company);

g.

Performance Awards are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or any subsidiary, and which is outside the scope of Participant’s employment or service contract, if any;

h.

The Performance Awards are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any subsidiary;

i.

In the event the Participant is not an employee of the Company, the Performance Awards and Participant’s participation in the Plan will not be interpreted to form an employment or service contract or relationship with the Company; and furthermore, the Performance Awards and Participant’s participation in the Plan will not be interpreted to form an employment or service contract with any subsidiary of the Company;

j.

The future value of the underlying Shares is unknown and cannot be predicted with certainty;

k.

In consideration of the award of the Performance Awards, no claim or entitlement to compensation or damages shall arise from termination of the Performance Awards or diminution in value of the Performance Awards, or Shares acquired upon vesting of the Performance Awards, resulting from termination of Participant’s employment by the Company or any subsidiary (for any reason whatsoever and whether or not in breach of local labor laws) and in consideration of the award of the Performance Awards, Participant irrevocably releases the Company and any subsidiary from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by acknowledging and agreeing to or signing the Notice of Grant, Participant shall be deemed irrevocably to have waived his or her right to pursue or seek remedy for any such claim or entitlement;

l.

In the event of termination of Participant’s employment (whether or not in breach of local labor laws), Participant’s right to receive Performance Awards under the Plan and to vest in such Performance Awards, if any, will terminate effective as of the date that Participant is no longer actively employed and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); the Administrator shall have the exclusive discretion to determine when Participant is no longer actively employed for purposes of this Agreement;

m.

The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan or Participant’s acquisition or sale of the underlying Shares; and

 

n.

Participant is hereby advised to consult with Participant’s own personal tax, legal and financial advisors regarding Participant’s participation in the Plan before taking any action related to the Plan.

12. 

Failure to Enforce Not a Waiver. The Company’s failure to enforce at any time any provision of this Agreement does not constitute a waiver of that provision or of any other provision of this Agreement.

13. 

Governing Law. This Agreement is governed by and is to be construed according to the laws of the State of California, that apply to agreements made and performed in that state, without regard to its choice of law provisions. For purposes of litigating any dispute that arises under the Performance Award or this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation will be conducted in the courts of Orange County, California, or the federal courts for the United States for the Central District of California, and no other courts, where the Performance Awards are made and/or to be performed.

14. 

Partial Invalidity. The invalidity or illegality of any provision of this Agreement will be deemed not to affect the validity of any other provision.

15. 

Section 409A Compliance. This Agreement is intended to comply with section 409A of the Code, and any regulations, rulings, or guidance provided thereunder. Each payment under this Agreement shall be treated as a separate payment for purposes of Section 409A of the Code. In no event may the Participant, directly or indirectly, designate the calendar year of any payment to be made under this Agreement. The Company reserves the unilateral right to amend this Agreement upon written notice to the Participant in order to prevent taxation under Code section 409A.

16. 

Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to Performance Awards awarded under the Plan or future Performance Awards that may be awarded under the Plan by electronic means or request Participant’s consent to participate in the Plan by electronic means. Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through any on-line or electronic system established and maintained by the Company or another third party designated by the Company.

Pro-Dex, Inc. 

By:__________________________

Accepted and agreed to by the Participant:

Signature: _______________________

Print Name: _____________________

Date: __________________________Exhibit

Exhibit 4.2

Healthcare Realty Trust Incorporated
and
Branch Banking and Trust Company 
as Trustee
________________________
Seventh Supplemental Indenture
Dated as of December 11, 2017
_______________________
Supplement to Indenture dated as of May 15, 2001

1

Seventh Supplemental Indenture
Seventh Supplemental Indenture, dated as of December 11, 2017, between Healthcare Realty Trust Incorporated, a Maryland corporation (hereinafter called the “Company”), having its principal office at 3310 West End Avenue, Suite 700, Nashville, Tennessee 37203, and Branch Banking and Trust Company, a bank organized and existing under the laws of the state of North Carolina, as Trustee (hereafter called the “Trustee”), having a Corporate Trust Office at 223 West Nash Street, Second Floor, Wilson, North Carolina 27893 as Trustee under the Indenture (as hereinafter defined).
Recitals
Whereas, the Company and the Trustee are parties to an Indenture, dated as of May 15, 2001, a copy of which is attached hereto as Exhibit A and which is incorporated herein by reference (hereinafter called the “Indenture”) providing for the issuance by the Company from time to time of its senior debt securities evidencing its unsecured and unsubordinated indebtedness (the “Securities”);
Whereas, the Company desires to issue a series of senior debt securities under the Indenture designated as its 3.625% Senior Notes due 2028 (the “Notes”), and has duly authorized the creation of the Notes and the execution and delivery of this Seventh Supplemental Indenture to modify the Indenture and provide certain additional provisions as hereinafter described; and
Whereas, the Company and the Trustee deem it advisable to enter into this Seventh Supplemental Indenture for the purposes of providing for the rights, obligations and duties of the Company and the Trustee with respect to the Notes and to set forth certain specific provisions with respect thereto.
Now, Therefore, This Seventh Supplemental Indenture Witnesseth:
For and in consideration of the premises, the Company and the Trustee covenant and agree, for the equal and proportionate benefit of all Holders of the Notes, as follows:
Article One
Relation to Indenture; Definitions
Section 1.01.    This Seventh Supplemental Indenture constitutes an integral part of the Indenture.
Section 1.02.    Pursuant to Section 301(25) of the Indenture, so long as any of the Notes are Outstanding, the following definitions shall be applicable to the Notes, be included as defined terms with respect to the Notes for all purposes and, to the extent inconsistent with the definition of such term contained in Section 101 of the Indenture, shall replace such definition with respect to the Notes:  

2

“Capital Lease” means at any time a lease with respect to which the lessee is required concurrently to recognize the acquisition of any asset and the incurrence of a liability in accordance with GAAP.

“Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes.

“Comparable Treasury Price” means (i) the average of four Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
“Consolidated Income Available for Debt Service” for any period means Earnings from Operations plus amounts which have been deducted, and minus amounts which have been added, for (i) Consolidated Interest Expense, (ii) provision for taxes of the Company and its Subsidiaries based on income, (iii) amortization (other than amortization of debt discount) and depreciation, (iv) provisions for gains and losses from sales or joint ventures, (v) increases in deferred taxes and other non-cash items, (vi) charges resulting from a change in accounting principles, or (vii) charges for early extinguishment of debt.
“Consolidated Interest Expense” means, for any period, and without duplication, all interest (including the interest component of rentals on capitalized leases, letter of credit fees, commitment fees and other like financial charges) and all amortization of debt discount on all Debt (including, without limitation, payment-in-kind, zero coupon and other like securities) of the Company and its Subsidiaries, but excluding legal fees, title insurance charges and other out-of-pocket fees and expenses incurred in connection with the issuance of Debt, all determined in accordance with GAAP, and the amount of dividends that are payable during such period in respect of any Disqualified Stock.
“Corporate Trust Office” means the office of the Trustee at which, at any particular time, its service as Trustee hereunder shall be principally administered, which office at the date hereof is located at Branch Banking and Trust Company, 223 West Nash Street, Second Floor, Wilson, North Carolina 27893 and, for purposes of the Place of Payment provisions of Sections 305 and 1002 of the Indenture, is located at Branch Banking and Trust Company, 223 West Nash Street, Second Floor, Wilson, North Carolina 27893.  
“Disqualified Stock” means, with respect to any Person, any Capital Stock of such Person which by the terms of such Capital Stock (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (i) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than Capital Stock which is redeemable solely in exchange for common stock), (ii) is convertible into or exchangeable or exercisable for Debt or Disqualified Stock or (iii) is redeemable at the option of the holder thereof, in whole or in part (other than Capital Stock which is redeemable solely in exchange for Capital Stock which is not Disqualified Stock or the redemption price of which may, at the option of such Person, be paid in Capital Stock which is not Disqualified Stock), in each case on or prior to the Stated Maturity of the Notes. 

3

“Earnings from Operations” for any period means the net earnings determined in accordance with GAAP, excluding gains and losses on sales of investments, extraordinary items and property valuation losses.  

“Independent Investment Banker” means either Wells Fargo Securities, LLC or U.S. Bancorp Investments, Inc., as specified by the Company, or, if these firms are unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company.
 “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including, in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements).
“Make-Whole Amount” means, in connection with any optional redemption or accelerated payment of any Notes, the excess, if any, of (i) the sum of the present values as of the date of such redemption or accelerated payment of the remaining scheduled payments of principal and interest on the Notes to be redeemed or repaid that would be due if such Notes matured on the Par Call Date (not including any portion of such payments of interest accrued to the date of redemption or repayment) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate (determined on the third Business Day preceding the date such notice of redemption is given or declaration of acceleration is made) plus 25 basis points, over (ii) the Outstanding Principal Amount.
“Mortgage Debt” means Debt of the Company or any Subsidiary secured by a Lien on one or more parcels of their real property.
“Notes” means the Company’s 3.625% Senior Notes due 2028.
“Outstanding Principal Amount” means, at any time, 100% of the principal amount of Notes then outstanding to be redeemed or repaid.

“Reference Treasury Dealer” means (i) Wells Fargo Securities, LLC and its successors, (ii) a Primary Treasury Dealer (as defined below) selected by U.S. Bancorp Investments, Inc. and its successors, provided, however, that if either of the foregoing shall cease to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury Dealer and (iii) any two other Primary Treasury Dealers selected by the Company after consultation with the Independent Investment Banker.

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

4

 “Secured Debt” means Debt secured by any mortgage, trust deed, deed of trust, deed to secure debt, security agreement, pledge, conditional sale or other title retention agreement, capitalized lease, or other like agreement granting or conveying security title to or a security interest in real property or other tangible assets, other than those relating to intercompany debt. For purposes hereof, such Debt shall become Secured Debt at the time it first becomes secured by execution of any of the documents, instruments or agreements described in the immediately preceding sentence.
 “Total Assets” as of any date means the sum of (i) Undepreciated Real Estate Assets and (ii) all other assets of the Company determined in accordance with GAAP (but excluding accounts receivable and non-real estate intangibles).
 “Total Unencumbered Assets” as of any date means the sum of (i) those Undepreciated Real Estate Assets not securing any portion of Secured Debt and (ii) all other assets of the Company and its Subsidiaries not securing any portion of Secured Debt determined in accordance with GAAP (but excluding accounts receivable and non-real estate intangibles) after eliminating intercompany accounts and transactions; provided, however, that, all investments in any Person that is not consolidated for financial reporting purposes in accordance with GAAP shall be excluded from Total Unencumbered Assets.

“Treasury Rate” means, with respect to any Redemption Date:

		
	•
	the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining term of the Notes to be redeemed, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or

		
	•
	if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

“Undepreciated Real Estate Assets” as of any date means the cost (original cost plus capital improvements) of any real estate assets of the Company and its Subsidiaries on such date, before depreciation and amortization, determined on a consolidated basis in accordance with GAAP.
 “Unsecured Debt” means at any time the aggregate unpaid principal amount of all Debt of the Company and its Subsidiaries other than (i) Debt of a Subsidiary owing to the Company or to a Wholly-Owned Subsidiary, (ii) Mortgage Debt and (iii) Secured Debt.

5

“Wholly-Owned Subsidiary” means, at any time, any Subsidiary 100% of all of the equity interests (except directors’ qualifying shares) and voting interests and all Debt of which are owned by any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries at such time.
Article Two
Creation of the Notes
Section 2.01.    Pursuant to the terms hereof and the Indenture, the Company hereby creates a series of its Notes known as the “3.625% Senior Notes due 2028” each of which shall be deemed Securities for all purposes of the Indenture.
Section 2.02.    The definitive form of the Notes shall be substantially in the form set forth in Exhibit B attached hereto, which is incorporated herein and made part hereof. 
Section 2.03.    (a) The Notes will bear interest at a rate of 3.625% per annum, from December 11, 2017 or from the immediately preceding Interest Payment Date (as defined below) to which interest has been paid or duly provided for, payable semi-annually in arrears on January 15 and July 15 of each year, commencing July 15, 2018 (each, an “Interest Payment Date”), to the Person in whose name such Note (or any predecessor) is registered at the close of business on January 1 or July 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date (each, a “Regular Record Date”).  Interest on the Notes will be computed on the basis of a 360-day year comprised of twelve 30-day months.
(b)    The interest so payable on any Note which is not punctually paid or duly provided for on any Interest Payment Date (“Defaulted Interest”) shall forthwith cease to be payable to the Person in whose name such Note is registered on the relevant Regular Record Date, and such Defaulted Interest shall instead be payable either (i) to the Person in whose name such Note is registered on the Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to the Holder of such Note not less than ten days prior to such Special Record Date or (ii) may be paid at any time in any other lawful manner in accordance with the Indenture.
(c)    If any Interest Payment Date or Stated Maturity falls on a day that is not a Business Day, the required payment shall be made on the next Business Day as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or Stated Maturity, as the case may be.
(d)    The Notes will mature on January 15, 2028.
Section 2.04.    The Notes shall initially not exceed $300,000,000 in aggregate principal amount, and may, upon the execution and delivery of this Seventh Supplemental Indenture or from time to time thereafter, be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Notes to or upon the written order of the Company, signed by its President or a Vice President and by its Treasurer or an Assistant Treasurer or its Secretary or an Assistant Secretary, without further action by the Company.  The series of Securities comprised of the Notes may be reopened and additional Notes forming a part of the same series may be issued in the future.
    

6

Section 2.05.    The Trustee’s certificate of authentication to be borne by the Notes shall be substantially of the tenor and purport as provided in the Indenture.
Section 2.06.     The Notes may be redeemed at any time in whole or from time to time in part, at the option of the Company at a redemption price equal to (i) in the case of a Redemption Date prior to October 15, 2027, the sum of (A) the Outstanding Principal Amount, (B) accrued and unpaid interest on the Outstanding Principal Amount and (C) the Make-Whole Amount, if any, or (ii) in the case of a Redemption Date  on or after October 15, 2027, the sum of (A) the Outstanding Principal Amount and (B) accrued and unpaid interest on the Outstanding Principal Amount (the “Redemption Price”).  The Company shall calculate the Redemption Price to be paid pursuant to this Section 2.06 and, together with any notice of redemption required by Section 1102 of the Indenture, shall provide the Trustee an Officer’s Certificate setting forth the Redemption Price, upon which Certificate the Trustee shall be entitled to rely. Pursuant to Section 301(25) of the Indenture, notice of redemption shall be delivered to each holder of Notes to be redeemed at least 15 and not more than 60 days prior to the date fixed for redemption, and, to the extent inconsistent with Section 1104 of the Indenture, this Section 2.06 shall govern.
Section 2.07.    The Place of Payment where the Notes may be presented or surrendered for payment, where the Notes may be surrendered for registration of transfer or exchange and where notices and demands to and upon the Company in respect of the Notes and the Indenture may be served shall be in the City of Nashville, Tennessee, and the office or agency for such purpose shall be located at 223 West Nash Street, Second Floor, Wilson, North Carolina 27893.
Section 2.08.    Payment of the principal of and interest on the Notes will be made at the office or agency of the Company maintained for that purpose (which shall initially be an office or agency of the Trustee), in Dollars; provided, however, that, at the option of the Company, payments of principal and interest on the Notes (other than payments of principal and interest due at Stated Maturity) may be made (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer to an account maintained by the Person entitled thereto located within the United States, provided, that such Person owns Notes in an aggregate principal amount of at least $1,000,000 and such Person makes a written request therefor for the appropriate Interest Payment Date.
Section 2.09.    Principal and interest on the Notes shall be payable in Dollars.
Section 2.10.    The Notes shall be issuable and transferable in fully registered form as Registered Securities, without coupons. The Notes shall each be issued in global form. The depository for the Notes shall be The Depository Trust Company (“DTC”). The Notes shall not be issuable in definitive form except as provided in the Indenture.
Section 2.11.    The Trustee shall initially serve as Registrar and Paying Agent for the Notes.
Section 2.12.    The provisions of Section 1402 and 1403 of the Indenture, together with the other provisions of Article Fourteen of the Indenture, shall be applicable to the Notes.  The provisions of Section 1403 of the Indenture shall apply to the covenants set forth in Article Four of this Seventh Supplemental Indenture and to those covenants specified in Section 1403 of the Indenture.

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Article Three
Appointment of the Trustee for the Notes
Section 3.01.    Pursuant and subject to the Indenture, the Company hereby appoints the Trustee as trustee to act on behalf of the Holders of the Notes, effective upon execution and delivery of this Seventh Supplemental Indenture. By execution, acknowledgement and delivery of this Seventh Supplemental Indenture, the Trustee hereby accepts appointment as trustee with respect to the Notes, and agrees to perform such trusts upon the terms and conditions in the Indenture and in this Seventh Supplemental Indenture set forth.
Section 3.02.    Any rights, powers, duties and obligations by any provisions of the Indenture conferred or imposed upon the Trustee shall, insofar as permitted by law, be conferred or imposed upon and exercised or performed by the Trustee with respect to the Notes.
Article Four
Covenants of the Company
The covenants provided for by Article Ten of the Indenture will be applicable to the Notes.  In addition, pursuant to Section 301(15) of the Indenture, so long as any of the Notes are Outstanding, the Company covenants and agrees as follows:
Section 4.01.    Limitations on Incurrence of Total Debt.  The Company will not, and will not permit any Subsidiary to, incur any Debt if, immediately after giving effect to the incurrence of such additional Debt and the application of the proceeds thereof, the aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries (determined on a consolidated basis in accordance with GAAP) is greater than 60% of the sum of (without duplication) (i) the Total Assets of the Company and its Subsidiaries as of the end of the calendar quarter covered in the Company's Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not permitted under the Exchange Act, with the Trustee) prior to the incurrence of such additional Debt and (ii) the purchase price of any real estate assets or mortgages receivable acquired, and the amount of any securities offering proceeds received (to the extent that such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Company or any Subsidiary since the end of such calendar quarter, including those proceeds obtained in connection with the incurrence of such additional Debt.
Section 4.02.    Limitation on Incurrence of Debt Secured by any Lien.  The Company will not, and will not permit any Subsidiary to, incur any Debt secured by any Lien upon any of the property of the Company or any Subsidiary if, immediately after giving effect to the incurrence of such additional Debt and the application of the proceeds thereof, the aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries (determined on a consolidated basis in accordance with GAAP), which is secured by any Lien on property of the Company or any Subsidiary, is greater than 40% of the sum of (without duplication) (i) the Total Assets of the Company and its Subsidiaries as of the end of the calendar quarter covered in the Company's Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not permitted under the Exchange Act, with the Trustee) prior to the incurrence of such additional Debt and (ii) the purchase price of any real estate assets or mortgages receivable acquired, and the amount of any securities offering proceeds received (to the extent that such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Company or any Subsidiary since the end of such calendar quarter, including those proceeds obtained in connection with the incurrence of such additional Debt.
    

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Section 4.03.    Maintenance of Total Unencumbered Assets.  The Company and its Subsidiaries will not at any time own Total Unencumbered Assets equal to less than 150% of the aggregate outstanding principal amount of the Unsecured Debt of the Company and its Subsidiaries on a consolidated basis.
Section 4.04.    Debt Service Coverage.  The Company will not, and will not permit any Subsidiary to, incur any Debt if the ratio of Consolidated Income Available for Debt Service to the Consolidated Interest Expense for the four consecutive fiscal quarters most recently ended prior to the date on which such additional Debt is to be incurred shall have been less than 1.5:1 on a pro forma basis after giving effect thereto and to the application of the proceeds therefrom, and calculated on the assumption that (i) such Debt and any other Debt incurred by the Company and its Subsidiaries since the first day of such four-quarter period and the application of the proceeds therefrom, including to refinance other Debt, had occurred at the beginning of such period; (ii) the repayment or retirement of any other Debt by the Company and its Subsidiaries since the first day of such four-quarter period had been repaid or retired at the beginning of such period (except that, in making such computation, the amount of Debt under any revolving credit facility shall be computed based upon the average daily balance of such Debt during such period); (iii) in the case of Acquired Debt or Debt incurred in connection with any acquisition since the first day of such four-quarter period, the related acquisition had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition being included in such pro forma calculation; and (iv) in the case of any acquisition or disposition by the Company or its Subsidiaries of any asset or group of assets since the first day of such four-quarter period, whether by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition or any related repayment of Debt had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation.
Article Five
Miscellaneous
Section 5.01.    Each and every term and condition contained in the Indenture shall apply to this Seventh Supplemental Indenture with the same force and effect as if the same were herein set forth in full, with such omissions, variations and modifications thereof as may be appropriate to make the same conform to this Seventh Supplemental Indenture. As supplemented by this Seventh Supplemental Indenture, the Indenture shall be read, taken and construed as one and the same instrument; provided, however, that the rights, duties and obligations of the Trustee in this Seventh Supplemental Indenture shall be limited to those matters expressly relating to the Notes.  The permissive rights of the Trustee to take any action under this Seventh Supplemental Indenture or the Indenture shall not be construed as duties.
    

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Section 5.02.    Nothing contained in this Seventh Supplemental Indenture shall be construed to confer upon any person other than a Holder of the Notes, the Company and the Trustee any right or interest to avail itself or himself, as the case may be, of any benefit under any provision of the Indenture or this Seventh Supplemental Indenture.
Section 5.03.    All capitalized terms which are used herein and not otherwise defined herein are defined in the Indenture and are used herein with the same meanings as set forth in the Indenture.
Section 5.04.    This Seventh Supplemental Indenture shall be effective as of the date first above written and upon the execution and delivery hereof by each of the parties hereto.
Section 5.05.    This Seventh Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.
Section 5.06.    This Seventh Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original but all such counterparts shall together constitute but one and the same instrument.
Section 5.07.    This Seventh Supplemental Indenture shall cease to be of further effect upon compliance with Section 401 of the Indenture with respect to the Notes created hereby.
Section 5.08.    The provisions of this Seventh Supplemental Indenture shall only be applicable with respect to, and govern the terms of, the Notes and shall not apply to any other Securities that may be issued by the Company under the Indenture.
Section 5.09.    In case any one or more of the provisions contained in this Seventh Supplemental Indenture or in the Notes shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Seventh Supplemental Indenture or of the Notes, but this Seventh Supplemental Indenture and the Notes shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein or therein.

(signature page follows)

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In Witness Whereof, the parties hereto have caused this Seventh Supplemental Indenture to be duly executed by their respective officers hereunto duly authorized, all as of the day and year first above written.
Healthcare Realty Trust Incorporated

		
	Dated:  December 11, 2017
	By:___/s/ B. Douglas Whitman, II________

Name:  B. Douglas Whitman, II
Title:  Executive Vice President - Corporate Finance

Branch Banking and Trust Company, as Trustee

		
	Dated:  December 11, 2017
	By:____/s/ Gregory Yanok_____________

Name:  Gregory Yanok
Title:   Vice President

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Acknowledgment
State of Tennessee
) SS:
County of Davidson
On the 11th day of December, 2017, before me personally came  B. Douglas Whitman, II, to me known, who, being by me duly sworn, did depose and say that he is the Executive Vice President - Corporate Finance of Healthcare Realty Trust Incorporated, one of the parties described in and which executed the foregoing instrument, and that he signed his name thereto by authority of the Board of Directors.
[Notarial Seal]
__/s/ Robin J. Higgins_____________________________
Notary Public
Commission Expires
State of North Carolina
) SS:
County of Wilson
On the 11th day of December, 2017, before me personally came Gregory Yanok, to me known, who, being by me duly sworn, did depose and say that he is a Vice President of Branch Banking and Trust Company, one of the parties described in and which executed the foregoing instrument, and that he signed his name thereto by authority of the Board of Directors.
[Notarial Seal]
___/s/ S. White_______________________________
Notary Public
Commission Expires

12

Exhibit A

Indenture

Incorporated by reference to the Company’s Form 8-K filed with the Securities and Exchange Commission on May 17, 2001.

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Exhibit B

Form of Note
[Form of Face of Note]
Unless this Note is presented by an authorized representative of The Depository Trust Company, a New York Corporation (“DTC”), to the Company or its agent for registration of transfer, exchange or payment and any Note 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.
Except as otherwise provided in Section 305 of the Indenture, this Security may be transferred, in whole but not in part, only to another nominee of the depositary or to a successor depositary or to a nominee of such successor depositary.
Healthcare Realty Trust Incorporated
3.625% Senior Note due 2028
No. _____                                            [Date]
$___________                                        CUSIP: 421946 AK0
For Value Received, the undersigned, Healthcare Realty Trust Incorporated (herein called the “Company”), a corporation organized and existing under the laws of the State of Maryland, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of _______________ Dollars on January 15, 2028, with interest (computed on the basis of a 360-day year of twelve 30‐day months) at the rate of 3.625% per annum (a) on the unpaid balance thereof from the date hereof, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, payable semi-annually in arrears on January 15 and July 15 each year, commencing July 15, 2018, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest and any overdue payment of any Make-Whole Amount, payable semi-annually as aforesaid. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture referred to below, be paid to the Person in whose name this Note is registered at the close of business on January 1 and July 1 (whether or not a Business Day), as the case may be, preceding such Interest Payment Date.
Payments of principal of, interest on and any Make Whole Amount with respect to this Note are to be made in Dollars at the principal office of Branch Banking and Trust Company (herein called the “Trustee,” which term includes any successor trustee under the Indenture with respect to the series of which this Note is a part) in Nashville, Tennessee or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Indenture referred to below.

This Note is one of a series of 3.625% Senior Notes due 2028 (herein called the “Notes”) issued pursuant to the Seventh Supplemental Indenture, dated as of December 11, 2017 (as from time to time supplemented or amended, the “Seventh Supplemental Indenture”), and the related Indenture dated as of May 15, 2001 (as from time to time supplemented or amended, and as amended by the Seventh Supplemental Indenture, the “Indenture”), each between the Company and the Trustee, and is entitled to the benefits thereof.  All terms used in this Note not defined herein which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
This Note is a registered Note and, as provided in the Indenture, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder 

14

hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.
The Company will make required prepayments of principal on the dates and in the amounts specified in the Indenture.  This Note may be redeemed at the option of the Company, in whole at any time or from time to time in part, upon the payment of the Redemption Price with respect to that part of the Note to be redeemed.
If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture.
This Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State.
This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been executed by the Trustee under the Indenture referred to herein.
In Witness Whereof, Healthcare Realty Trust Incorporated has caused this instrument to be duly executed.
Dated: 
Healthcare Realty Trust Incorporated
By: ___________________________________        
Name:
Title:

Attest: 

By:____________________________________
Name:
Title: 
Certificate of Authentication
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
Branch Banking and Trust Company, as Trustee
By:_______________________________
Authorized Signatory

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[Reverse of Note]
3.625% SENIOR NOTE DUE 2028

This Note is one of a duly authorized issue of securities of the Company designated as the 3.625% Senior Notes due 2028, issued and to be issued in one or more series under the Indenture between the Company and the Trustee, to which the Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the first page hereof, initially limited in aggregate principal amount to $300,000,000.

The covenants set forth in Article Four of the Seventh Supplemental Indenture and Article Ten of the Indenture shall be fully applicable to this Note. 

The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of the Company on this Note and (b) certain restrictive covenants and the related defaults and Events of Default applicable to the Company, in each case, upon compliance by the Company with certain conditions set forth in the Indenture, which provisions apply to this Note. 

If any Event of Default with respect to the Notes of this series shall occur and be continuing, the principal of, accrued interest and the Make-Whole Amount, if any, on, the Notes of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

As provided in and subject to the provisions of the Indenture, the Holder of this Note shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Notes of this series, the Holders of not less than 25% in principal amount of the Notes of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee, offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of not less than a majority in principal amount of Notes of this series at the time Outstanding a direction inconsistent with such request, and the Trustee shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Note for the enforcement of any payment of principal hereof (and the Make-Whole Amount, if any) or any interest thereon on or after the respective due dates expressed herein. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be effected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Securities of each series at the time Outstanding affected thereby. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, Make-Whole Amount, if any, on, and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in any Place of Payment where the principal of, Make-Whole Amount, if any, on, and interest on this Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by the Holder hereof or his attorney duly authorized in writing, 

16

and thereupon one or more new Notes of this series, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Notes of this series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like aggregate principal amount of Notes of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused “CUSIP” numbers to be printed on the Notes of this series as a convenience to the Holders of such Notes. No representation is made as to the correctness or accuracy of such CUSIP numbers as printed on the Notes, and reliance may be placed only on the other identification numbers printed hereon. 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

17

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

	Ten Ent-
	as tenants by the entireties

	JT Ten-
	as joint tenants with right of survivorship and not as tenants in common

Unif Gift Min Act - __________________________ Custodian ______________________
(Cust)         (Minor)
Under Uniform Gifts to Minor Act ___________________________
(State)
Additional abbreviations may also be used though not in the above list

18

Assignment Form
To assign this Note, fill in the form below:
For Value Received, the undersigned hereby sell(s), assign(s) and transfer(s) unto
    
[Please insert Social Security or other Identifying number of Assignee]
    
    
[Please print or type name and address including zip code, of Assignee]
    
    
the within Note and all rights thereunder, hereby irrevocably constituting and appointing such person attorney to transfer such Note on the books of the Company, with full power of substitution in the premises.
		
	Notice:
	The signature to this assignment must correspond with the name as written upon the face of the within Note in every particular without alteration or enlargement or any change whatsoever.

Your Signature:                                        
(Sign exactly as your name appears on the other side of this Note)

Signature Guarantee:

	
	
	____________________________________
(Authorized Officer)
Signature must be guaranteed by an institution which is a participant in the Securities Transfer Agent Medallion Program (STAMP) or similar program.

19

Schedule A

Schedule of Principal Amount
The initial principal amount of this Global Note shall be $______________.  The following increases or decreases in the principal amount of this Global Note have been made:
	
					
	Amount of decrease in principal amount of this Global Note
	Amount of increase in principal amount of this Global Note
	Principal amount of this Global Note
	Signature of authorized officer of Trustee or Notes Custodian
	Date of exchange following such decrease or increase

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

20

	
					
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

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