Document:

suiloancommitmentletter-rudgate

SUN RUDGATE LENDER LLC
27777 Franklin Road, Suite 200
Southfield, Michigan 48034

October 3, 2012

Rudgate Village Company Limited Partnership
Rudgate Clinton Company Limited Partnership
Rudgate Clinton Estates L.L.C.
201 W. Big Beaver Road, Suite 1050
Troy, Michigan 48084
Attention: Messrs. Graham Orley and Gregg Orley

Gentlemen: 

We are pleased to advise you that Sun Rudgate Lender LLC (“Sun”) hereby commits to provide the Borrowers (as defined below) with a mezzanine loan (the “Loan”) subject to the following terms and conditions:
1.Loan Terms.
(a)    Type of Credit:  Mezzanine Loan.
(b)    Purpose:  The proceeds of the Loan will be used for retiring prior debt and/or distributions to Borrowers’ owners.  Borrowers shall have the right to direct Sun to place the Loan funds into an account from which proceeds will be used to satisfy amounts due the current lenders who hold mortgages on the Properties (as defined below).
(c)    Amount:  $60,700,000.00 minus the net proceeds of the Senior Loan (defined below) received by the Property Owners (defined below).  The proposed first mortgage loan to the Property Owners to be provided by Ladder Capital Finance LLC (“Ladder” or “Senior Lender”) is expected to be $45,900,000.00 (the “Senior Loan”), all as set forth in that certain Loan Application, dated August 17, 2012 (the “Senior Loan Application”), submitted by the Property Owners to Ladder.
(d)    Co-Borrowers:  Three newly formed Michigan limited liability companies, jointly and severally:
(i)    Rudgate Village Holdings, LLC (“Rudgate Village”);
(ii)    Rudgate Clinton Holdings, LLC (“Rudgate Clinton”); and

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(iii)    Rudgate Clinton Estates Holdings, LLC (“Rudgate Clinton Estates,” and collectively with Rudgate Village and Rudgate Clinton, the “Borrowers”).
Rudgate Village will be the sole member of Rudgate Village SPE, LLC, a Delaware limited liability company (“Village Owner”), which will hold title to Rudgate Village (Manor) Manufactured Home Community.   Rudgate Clinton will be the sole member of Rudgate Clinton SPE, LLC, a Delaware limited liability company (“Clinton Owner”), and  Rudgate Clinton Estates will be the sole member of Rudgate Clinton Estates SPE, LLC, a Delaware limited liability company (“Clinton Estates Owner”, and collectively with Clinton Owner and Village Owner, the “Property Owners”).  Rudgate Clinton and Rudgate Clinton Estates each hold title to a portion of the Rudgate Clinton Manufactured Home Community, and operate the Community as a single project.
Borrowers will be single purpose entities with no assets other than their ownership interests in the respective Property Owners.  The single purpose entity requirements applicable to the Property Owners, as contained in the Senior Loan documentation, will apply to the Borrowers.  Each of the Property Owners will be single purpose entities, with no assets other than their respective interests in the Properties (defined below).  The sole manager of each of the Borrowers shall be Rudgate Manager, LLC (the “Manager”).  The Manager shall be a single purpose entity, with no material assets.  At all times during the term of the Loan, the sole members of the Manager shall be Four O Group, LLC and the Graham A. Orley Revocable Trust dated January 29, 1991, as amended and/or restated.
Rudgate Clinton Manufactured Home Community and Rudgate Village (Manor) Manufactured Home Community, together are referred to herein as the “Properties” and individually, each is referred to as a “Property”.  Rudgate Village shall be wholly-owned by Rudgate Village Company, LLC, Rudgate Clinton shall be wholly-owned by Rudgate Clinton Company, LLC, and Rudgate Clinton Estates shall be wholly-owned by Rudgate Clinton Estates L.L.C. Collectively, Rudgate Village Company, LLC, Rudgate Clinton Company, LLC and Rudgate Clinton Estates L.L.C. shall be referred to as the “Member Companies.”
(e)    Guaranty of Recourse Carve outs:     The Loan will be non-recourse to the Borrowers; except the Borrowers shall be obligated with respect to the recourse carve-outs, set forth on Exhibit A hereto, which shall also be guaranteed by Gregg L. Orley and Randall C. Orley (jointly and severally, the “Guarantors”).
(f)    Interest:  The interest rate charged on the outstanding principal balance of the Loan shall equal 24% per annum (the “Note Rate”), and the minimum cash payment rate shall be 2% per annum (the “Pay Rate”).  Interest only shall be payable monthly under the Loan; however, if after application of all cash flow in accordance with the terms of Section 4 below, there are insufficient funds from the Property to pay the difference between interest accrued under the Loan at the Note Rate and interest accrued under the Loan at the Pay Rate, the Borrowers may borrower such shortfall from Sun as and when such interest is payable under the Loan, and all such sums advanced by Sun shall be reflected in, and be treated as 

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advances under, a promissory note (the “PIK Note”) to be executed and delivered by the Borrowers at closing.   The interest rate charged on the outstanding principal balance of the PIK Note shall be equal to the Note Rate.  All accrued and unpaid principal and interest under the Loan and PIK Note shall be due and payable upon the maturity date of the Loan.  In the event there are insufficient funds to pay such Pay Rate, Lender’s remedy shall be to institute a cash sweep of all excess cash flow to be held in a cash management account and to be utilized to fund the waterfall as provided in Section 4 below.  In the event of a default under the Loan the default rate of interest shall be 24% per annum.
(g)    Term:     Ten (10) years from the date of the Closing (as defined below).
(h)    Exit Fee:  The principal balance of the Loan and PIK Note may be repaid, whether voluntarily, involuntarily, by reason of acceleration or otherwise, only upon the simultaneous payment of the Exit Fee.  For purposes hereof, the “Exit Fee” shall equal 5% of the aggregate outstanding principal balance and unpaid accrued interest of the Loan and the PIK Note.  
(i)    Prepayment:    The Loan may not be prepaid in whole or in part, except as follows: (i) Borrowers may prepay the Loan in whole only, without penalty or premium, during the ninety (90) days prior to the Maturity Date so long as the Property Owners also prepay the Senior Loan; and (ii) after the 7th anniversary of the closing date the Borrowers may prepay the Loan in whole, but not in part, in the event that the Property Owners prepay the Senior Loan, provided that the Borrowers pay to Sun the unpaid principal balance of the Loan, together with all unpaid accrued interest, and all other amounts otherwise owing to Sun under the Loan together with the Prepayment Premium and Exit Fee.  For purposes hereof, the “Prepayment Premium” shall equal the sum of all interest payments which the Borrowers would have paid to Sun on a monthly basis during the remaining term of the Loan based on the then outstanding principal balance of the Loan and presuming no prepayments of principal and each monthly interest payment included interest computed at the Note Rate.  
(j)    Assignment:  Assignment of direct and indirect interests in the Borrowers, Property Owners and their respective constituent members and partners shall be prohibited, except that transfers for estate planning purposes and transfers between Member Companies and/or transfers between the members of the Member Companies (directly or indirectly) shall be permitted and shall not require prior written notice and/or consent of Sun (collectively, the “Permitted Transfers”), provided, however, that Borrowers shall provide copies of all notices required to be furnished to the Senior Lender with respect to all assignments or transfers as and when delivered to the Senior Lender.  Except with respect to the Permitted Transfers, other assignments or transfers shall be prohibited in accordance with the terms of the definitive loan documentation.
(k)    Other Debt:  No other debt of the Borrowers or Property Owners shall be permitted, other than the Senior Loan to the Property Owners and trade payables and other 

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liabilities permitted under the Senior Loan; provided, however, debt resulting from the actions or omissions of the Property Manager shall not cause a default under the Loan.
(l)    Financial Reporting.  Borrowers will provide Sun, or cause the Property Manager (as defined below) to provide Sun with, among other things, quarterly certified rent rolls for the Properties and quarterly and annual income statements and balance sheets, certified by the Borrowers or Property Manager; provided, however, Borrowers’ obligations to furnish Sun with information shall be subject to it receiving such information from the Property Manager.
2.    Security.  The Loan will be secured by a first security interest in all the assets of the Borrowers, including, without limitation, a collateral assignment of the Borrowers’ membership interests in the Property Owners, along with all proceeds received by the Borrowers in respect of such interests.  The recourse carveouts, set forth on Exhibit A, shall be guaranteed by the Guarantors. 
3.    Intercreditor Agreement and Subordination.  The Loan shall be subordinate to the Senior Loan in accordance with the terms of a commercially reasonable intercreditor agreement between the Senior Lender and Sun (the “Intercreditor Agreement”).
4.    The Waterfall.  Borrowers shall cause the cash flow of the Property Owners to be utilized in the following order of priority: 
(a)    First, to pay operating expenses of the Properties, as determined by Property Manager. 
(b)    Second, to pay scheduled payments of interest, principal and other amounts due under the Senior Loan.
(c)    Third, to pay a 3% management fee payable to the Property Manager, including any accrued and unpaid property management fees.
(d)    Fourth, for distributions to the Borrowers in an amount sufficient to pay the Pay Rate of interest on the Loan.
(e)    Fifth, an aggregate amount of $135,000 per year shall be made available for distribution to the Borrowers which shall be permitted to be distributed to the equity owners of the Borrowers.
(f)    Sixth, to pay a 4% asset management fee, payable to the Property Manager, together with reimbursable expenses to the Property Manager, including any accrued and unpaid asset management fees and reimbursable expenses.
(g)    Seventh, to the establishment of such reserves as the Property Manager shall deem necessary for the benefit of the Properties in its sole and absolute discretion.

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(h)    Thereafter, for distributions to the Borrowers to be used solely to pay accrued but unpaid interest, and all principal owing, on the Loan and pursuant to the PIK Note. 
5.    Costs and Expenses.  Sun shall pay all costs and expenses incurred by Sun in connection with preparing for, and closing, the Loan, including, but not limited to, all legal fees and expenses and costs associated with the perfection of the security interests granted to Sun in connection with the Loan.  Borrowers shall pay all costs and expenses incurred by the Borrowers in connection with the Loan, including, but not limited to, legal fees and expenses; provided, however, other than with respect to Borrowers’ legal fees and costs, any third party expenses incurred by Borrowers shall be paid directly by Sun.
6.    Cross-Default.  The Loan will be cross-defaulted to the Senior Loan with respect to all events of default that are not cured or waived within the time period specified in the Senior Loan documents.
7.    Conditions to Closing. Before closing of the Loan or contemporaneous therewith, and as an express condition precedent, the following must occur: 
(a)    Execution of loan documentation consistent with the Senior Loan Documents (the “Loan Documents”), including but not limited to, a loan agreement, promissory note, and pledge and security agreement; provided, however, representations and warranties to be set forth in the loan agreement shall be limited to and consistent with representations and warranties set forth in the “Contribution Agreement” (as defined herein) and in no event shall the Property Manager’s actions or omissions cause Borrowers to be in default under the Loan Documents.
(b)    Title to each Property shall be held by the applicable Property Owner in the condition approved or deemed approved by Sun pursuant to Section 8(c) below, as reflected in the  “marked-up” Commitments or pro forma policies furnished to the Senior Lender in connection with the closing of the Senior Loan, and at Closing each Borrower shall own one hundred percent (100%) of the Membership Interest in the respective Property Owner.
(c)    Closing and funding of the Senior Loan.
(d)    Execution of a Property Management Agreement for each of the Properties, in the form attached as Exhibit B, between the respective Property Owner and an affiliate of Sun (the “Property Manager”), which will govern the management of the property and the related assets.
(e)    Execution of a Reciprocal Reimbursement Agreement among the Property Owners, Guarantors and Rudgate Key Principals (as defined in the Senior Loan Application) (collectively, the “Rudgate Parties”) and Sun Communities Operating Limited Partnership (“SCOLP”) pursuant to which, (i) SCOLP will indemnify, defend and hold harmless the Rudgate Parties for all liabilities, costs and expenses they sustain under the “non-

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recourse carve out guarantee” they deliver to Senior Lender as a result of the acts or omissions of SCOLP or its affiliates, and (ii) the Rudgate Parties will indemnify, defend and hold harmless SCOLP for all liabilities, costs and expenses its sustains under the “non-recourse carve out guarantee” it delivers to Senior Lender as a result of the acts or omissions of the Rudgate Parties, or their affiliates, in the form attached hereto as Exhibit C.
(f)    Execution of the Intercreditor Agreement by Sun and Ladder, in the form contemplated under Section 3 hereof.
(g)    Collateral Assignments of Membership Interests in each of the Property Owners and certificates of such membership interest, together with all other documentation necessary to perfect Sun’s security interest in the collateral.
(h)    No action, suit, proceeding or investigation shall have been instituted before any court or governmental body, or instituted by any governmental agency to restrain or prevent consummation of the Loan.
(i)    Counsel to the Borrowers, Madden, Hauser, Wartell, Roth & Heller, P.C., shall have delivered a legal opinion to Sun opining on matters of authority, organization, litigation, consents, conflicts with other agreements and similar matters, in form reasonably acceptable to Sun.
8.    Pre-Closing Deliveries.  Before closing of the Loan, and as an express condition precedent, Borrowers must furnish Sun with the following materials (all of which must be acceptable to Sun):
(a)    Certified copies of the current operating agreements (which must include language opting into Article 8 of the Uniform Commercial Code) and duly filed articles of organization for the Borrowers, together with satisfactory evidence of the authority of the individual signatories to execute the Loan Documents.
(b)    Certified copies of the articles of organization and operating agreements, if any, for each of the Property Owners, each of the members of each of the Borrowers, and the Manager of each of the Borrowers and Property Owners.
(c)    Copies of existing surveys and title commitments and instruments of record with respect to each Property.  If a title commitment or survey discloses exceptions which are not acceptable to Sun, in its sole discretion, Sun shall notify the Borrowers in writing of its objections to such exceptions not later than October 12, 2012.  If Borrowers notify Sun that they are unable or unwilling to remedy any title objection, Sun will have five (5) business days after receipt of such notice to either terminate this Commitment or to waive such title objection(s), and in the event Sun fails to terminate this Commitment by such date, then such title objection(s) shall be deemed waived by Sun and, at Closing, the condition of title as reflected in the surveys and title commitments will be in the form reviewed by Sun prior to 

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October 12, 2012, as modified based upon items Borrowers have notified Sun will be remedied by Borrowers at or prior to Closing..
(d)    Copies (without duplication) of those due diligence materials, reports (including, without limitation, environmental and engineering reports), schedules, projections, forecasts, appraisals, business plans, development plans, capital expenditure schedules, rent rolls, schedules, exhibits and other documents delivered by or on behalf of the Property Owners to Ladder in connection with the Senior Loan, all of which shall be in form and substance satisfactory to Sun.  Notwithstanding the foregoing, however, Sun hereby acknowledges and agrees that it has reviewed and approved all such due diligence materials, reports, etc. and such condition has been satisfied.
9.        Legal Documentation.  Loan Documents shall be prepared by Sun’s legal counsel and the execution of such Loan Documents shall be a condition to Closing as provided in Section 7.A hereof.
10.    Assignability.  This commitment may not be assigned by the Borrowers except with the written consent of Sun.
11.    Cancellation.
(a)    This commitment may be terminated at the sole option of Sun upon notice in writing to the Borrowers, upon the occurrence of any of the following events:
(i)    If Borrowers fail to comply with any of the material terms and conditions of this Commitment, which failure is not cured within 5 business days after Borrowers receive notice of Sun’s intention to terminate this Commitment; or
(ii)    The termination of the Senior Loan Application or the failure of the closing of the Senior Loan, as a result of Borrowers’ failure to comply with the terms of such Senior Loan Application or Borrowers’ failure to close on the Senior Loan or as a result of Borrowers’ or its affiliates failure to satisfy conditions within the control of Borrowers or its affiliates; or
(iii)    In the event of the filing by or against any of the Borrowers or Property Owners of a petition in bankruptcy or insolvency, or for reorganization, or for the appointment of a receiver or trustee, or in the event of any assignment for the benefit of creditors or the filing of a petition for arrangement by any of the Borrowers or Property Owners; or
(iv)    In the event of the filing by or against any of the Guarantors of a petition in bankruptcy or insolvency, or for reorganization, or for the appointment of a receiver or trustee, or in the event of any assignment for the benefit of creditors or the filing of a petition for arrangement by any of the Guarantors; or

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(v)    In the event that any of the representations and warranties to be set forth in the Loan Documents were untrue or incorrect when made in any material respect.
(b)    This commitment may be terminated at the sole option of the Borrowers upon notice in writing to Sun, upon the occurrence of any of the following events:
(i)    If Sun fails to comply with any of the material terms and conditions of this Commitment; or
(ii)    The termination of the Senior Loan Application or the failure of the closing of the Senior Loan as a result of any actions or omissions by Sun or its affiliates in breach of the Senior Loan Application or this Commitment or as a result of Sun’s or its affiliates’ failure to satisfy conditions within the control of Sun or its affiliates. 
12.    Commitment Acceptance and Expiration.  This commitment letter constitutes an offer to enter into the transactions described herein and will constitute a contract binding upon Sun and the Borrowers only upon acceptance by the Borrowers on or before October 5, 2012.  This commitment may be accepted in whole and not in part.
13.    Closing.  The Closing shall occur concurrently with the closing of the Senior Loan and the closing of the transaction contemplated by the Contribution Agreement executed on even date herewith (the “Contribution Agreement”) and in all events, Closing shall occur not later than November 30, 2012.  In the event the Closing does not occur as set forth above as a result of the failure of Sun or its affiliates to close on the transactions contemplated by the Contribution Agreement in breach of the terms thereof, or because the Senior Loan did not close as a result of any actions or omissions by Sun or its affiliates in breach of the Senior Loan Application or as a result of Sun’s or its affiliates’ failure to satisfy conditions within the control of Sun or its affiliates, or as a result of a default by Sun under this Commitment, Sun shall be deemed to be in default under the terms of this Commitment.  In the event the Closing does not occur as set forth above as a result of Borrowers’ or its affiliates’ failure to close on the Senior Loan or the transactions contemplated by the Contribution Agreement in breach of the terms thereof or as a result of Borrowers’ or its affiliates’ failure to satisfy conditions within the control of Borrowers or its affiliates, or as a result of a default by Borrowers under this Commitment, Borrowers shall be deemed to be in default under this Commitment and in such event, Sun’s sole remedies shall be to terminate this Commitment upon delivering written notice to Borrowers or seek specific performance of this Commitment and Sun acknowledges that Sun shall have no right to damages.  As a condition precedent to exercise by Sun of any rights Sun may have to bring an action for specific performance hereunder, Sun must commence an action within one hundred twenty (120) days after the occurrence of Borrowers’ default.  Sun agrees that its failure to timely commence such an action for specific performance within such one hundred twenty (120) day period shall be deemed a waiver by Sun of its right to commence an action for specific performance.

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14.    Miscellaneous.  Any invalidation or waiver of any of the provisions of this commitment shall not invalidate or waive any other provision hereof.  This commitment and the enforcement hereof shall be construed in accordance with the laws of the State of Michigan.  Time is of the essence.  This commitment letter constitutes the entire agreement of the parties with respect to the Loan and supersedes all previous letters, agreements or understandings with respect to the Loan.

SUN RUDGATE LENDER LLC, a Michigan limited liability company

By: Sun Communities Operating Limited Partnership, a Michigan limited partnership
Its: Sole Member

By: Sun Communities, Inc., a Maryland corporation
Its: General Partner

By: /s/ Gary Shiffman
Name: Gary Shiffman
Its: President

(BORROWER AND GUARANTOR SIGNATURES ON NEXT PAGE)

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Accepted this 3rd day of October, 2012

Rudgate Village Company Limited Partnership

By: /s/ Graham A. Orley
Name: Graham A. Orley
Its: Authorized Signatory

And

By: /s/ Gregg L. Orley
Name: Gregg L. Orley
Its: Authorized Signatory

Rudgate Clinton Company Limited Partnership

By: /s/ Graham A. Orley
Name: Graham A. Orley
Its: Authorized Signatory

And

By: /s/ Gregg L. Orley
Name: Gregg L. Orley
Its: Authorized Signatory

Rudgate Clinton Estates L.L.C.

By: /s/ Graham A. Orley
Name: Graham A. Orley
Its: Authorized Signatory

And

By: /s/ Gregg L. Orley
Name: Gregg L. Orley
Its: Authorized Signatory

/s/ Gregg L. Orley
Gregg L. Orley

/s/ Randall C. Orley
Randall C. Orley

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EXHIBIT A
RECOURSE CARVE-OUTS

The Borrowers and Guarantors shall be liable for any and all actual loss, damage, cost, expense, liability, claim or other obligation incurred or suffered by Sun (including reasonable attorneys' fees and costs reasonably incurred) arising out of the following if caused by an action or omission of any one of the Borrowers, Property Owners or Guarantors, or an Affiliate of one of the foregoing, and for purposes hereof, any act or omission of the Property Manager or its affiliates shall not be considered to have been done by an Affiliate of the Borrowers, Property Owners or Guarantors and Borrowers and Guarantors shall have no liability to the extent such liability results from the actions or omissions of Property Manager or its affiliates: 

		
	A.1
	material physical waste or the removal or disposal of any portion of the Property in violation of the Loan Documents and caused by any Borrower, Property Owner, Guarantor or any Affiliate of a Borrower, Property Owner or Guarantor;

		
	A.2
	the misapplication, misappropriation or conversion of (A) any Insurance Proceeds paid by reason of any loss, damage or destruction to the Property and not used in compliance with the Senior Loan Documents and the Loan Documents, (B) any Awards or other amounts received in connection with the Condemnation of all or a portion of the Property and not used in compliance with the Senior Loan Documents and the Loan Documents, (C) any Gross Revenues (whether before or after an Event of Default), to the extent such misapplication, misappropriation or conversion consists of a failure to deposit such Gross Revenues into the Clearing Account in accordance with the terms of the Senior Loan Documents, or (D) any Gross Revenues after an Event of Default (including, without limitation, any security deposits, advance deposits or any other deposits collected by Borrowers with respect to the Property (including the failure to deliver any such deposits to the Senior Lender or upon a foreclosure of the Property or an action in lieu thereof, except to the extent any such deposits were applied in accordance with the terms and conditions of the applicable Lease prior to the occurrence of the Event of Default giving rise to such foreclosure or action in lieu thereof)) and; provided, however, in no event shall the payment of the Gross Revenues to the Senior Lender or the utilization of such Gross Revenues to pay for operating, maintenance, repair and/or replacement costs associated with the Properties be deemed to be a misapplication, misappropriation or conversion of such Gross Revenues; 

		
	A.3
	in connection with the Loan or the Property, any Borrower, Property Owner, Guarantor, or any Affiliate of a Borrower, Property Owner or Guarantor, engages in any action constituting fraud or willful and material misrepresentation or willful misconduct;

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	A.4
	the forfeiture by Property Owners of the Properties (or one of them), including by reason of any claim under the Racketeer Influenced and Corrupt Organizations Act (“RICO”), that results from conduct of criminal activity by any Property Owner, Borrower or Guarantor or any of their respective Affiliates;

		
	A.5
	Borrowers or Property Owners fail to comply with any of the material single purpose representations, warranties or covenants set forth in the Loan Documents or Senior Loan Documents and which failure is not cured within thirty (30) days after Borrowers’ receipt of written notice identifying such non-compliance, to the extent such non-compliance may be cured, provided, however, that if the Borrowers are diligently working to cure the noncompliance, then Sun shall grant the Borrowers an additional thirty (30) days to cure such non-compliance; 

		
	A.6
	any Guarantor, any Property Owner, any Borrower or any Affiliate of any of the foregoing, in connection with any enforcement action or exercise or assertion of any right or remedy by or on behalf of Sun under or in connection with the Guaranty, the Note, or any other Loan Document, seeks a defense, judicial intervention or injunctive or other equitable relief of any kind or asserts in a pleading filed in connection with a judicial proceeding any defense against Sun or any right in connection with any security for the Loan and which the Court in any such action or proceeding determines in a final, non-appealable order is frivolous, brought in bad faith or wholly without basis in fact or law.

If the Management Agreement is no longer in effect as a result of Borrowers’ termination of the Management Agreement, then the Borrowers and Guarantors shall be liable for any and all actual loss, damage, cost, expense, liability, claim or other obligation incurred or suffered by Sun (including reasonable attorneys' fees and costs reasonably incurred) arising out of or in connection with the following: 

		
	B.1
	the failure to pay charges for labor or materials or other charges that can create Liens on any portion of a Property to the extent such Liens are not bonded over or discharged in accordance with the Loan Documents and Senior Loan Documents, except with respect to any Liens which exist due to the Property Owner’s inability to make the required payments because they do not have access to the Gross Revenues to pay such charges or because there is not sufficient Rents from the Property to make such payments so long as the Property Owners have not applied the Rents from the Property in violation of the Loan Documents and Senior Loan Documents and the Property Owners contracted for such labor or materials in the ordinary course of business in accordance with the terms of the Loan Documents and with the good faith belief that there would be sufficient funds to timely pay such sums; 

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	B.2
	the failure to pay (A) Taxes or (B) obtain and maintain the fully paid for policies of insurance in accordance with the Senior Loan Documents and Loan Documents, except if such failure to pay arose because (1) they do not have access to the Gross Revenues to pay such charges or because there was not sufficient Rents from the Properties to make such payments so long as the Borrowers and Property Owners have not applied the Rents from the Properties in violation of the Loan Documents or Senior Loan Documents, or (2) funds in the Tax Account or Insurance Account, as applicable, held by the Senior Lender were not used for such purpose or applied by the Senior Lender in any other manner; provided however, any such liability for Taxes and Insurance Premiums shall cease with respect to Taxes and Insurance Premiums payable after the Borrowers, the Property Owners and their Affiliates are not in possession or control of the Properties; 

Notwithstanding anything to the contrary, (A) Sun shall not be deemed to have waived any right which Sun may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount of the Loan and all obligations thereunder or to require that all collateral shall continue to secure the Loan owing to Sun in accordance with the Loan Documents, and (B) the Loan and all obligations thereunder shall be fully recourse to Borrowers and Guarantors in the event that any of the following occur, unless caused by the acts or omissions of the Property Manager or its affiliates in violation of the Property Management Agreement:
		
	C.1
	Borrowers or Property Owners fail to comply with any representation, warranty or covenant set forth in Loan Documents or Senior Loan Documents with respect to single purpose structure, and a court of competent jurisdiction orders a substantive consolidation of the assets and liabilities of any Borrower or Property Owner with those of any other Person based on such failure.

		
	C.2
	Borrowers or Property Owners fail to obtain Sun’s prior consent to any indebtedness for borrowed money (which, for clarification, shall not mean trade payables, operating expenses, capital expenditures, property taxes, sums due the Property Manager or to the Senior Lender or indebtedness for borrowed money created through the acts or omissions of the Property Manager) or any voluntary Lien encumbering the Properties or any portion thereof or interest therein, except to the extent expressly permitted by the Loan Documents and excluding any Liens described in subparagraph 7 above and further excluding voluntary liens created through the acts or omissions of Property Manager or its affiliates;

		
	C.3
	Borrowers, Property Owners or their constituent members or partners fail to obtain Sun's prior consent to any transfer, except for Permitted Transfers or as otherwise expressly permitted by the Loan Documents including, without 

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limitation, a transfer to the Senior Lender following an occurrence of an event of default under the Senior Loan; 
		
	C.4
	Borrowers or Property Owners file a voluntary petition under the Bankruptcy Code or any other federal, state, local or foreign bankruptcy or insolvency law; 

		
	C.5
	an Affiliate, officer, director or representative which controls, directly or indirectly, any Borrower or Property Owner files, or joins in the filing of, an involuntary petition against Borrowers or Property Owners (or any one of them) under the Bankruptcy Code or any other federal, state, local or foreign bankruptcy or insolvency law, or solicits or causes to be solicited petitioning creditors for any involuntary petition against Borrowers or Property Owners (or any one of them) from any Person; 

		
	C.6
	Borrowers or Property Owners (or any one of them) file an answer consenting to, or otherwise acquiescing in, or joining in, any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other federal, state, local or foreign bankruptcy or insolvency law, or solicits or causes to be solicited petitioning creditors for any involuntary petition from any Person; 

		
	C.7
	any Affiliate, officer, director or representative which controls any Borrower or Property Owner consents to, or acquiesces in, or joins in, an application for the appointment of a custodian, receiver, trustee or examiner for any Borrower, Property Owners or any portion of the Properties, other than at the request of Sun or the Senior Lender; or 

		
	C.8
	Borrowers or Property Owners (or any one of them) make an assignment for the benefit of creditors, or admit in any legal proceeding its insolvency or inability to pay its debts as they become due unless to do otherwise would require a false statement or violate Rule 9011 of the Federal Rules of Bankruptcy Procedure or other applicable rules requiring a sufficient legal and factual basis for filing papers in a proceeding under Federal or state insolvency law. 

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EXHIBIT B
FORM OF PROPERTY MANAGEMENT AGREEMENT

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PROPERTY MANAGEMENT AGREEMENT
(Rudgate Manor)

This PROPERTY MANAGEMENT AGREEMENT (this “Agreement”) is made and entered into this ___ day of ______________, 2012 (the “Effective Date”), among RUDGATE VILLAGE SPE, LLC, a Delaware limited liability company (“Owner”), and SUN HOME SERVICES, INC., a Michigan corporation (“Manager”).

RECITALS

A.    Owner is the owner of that certain manufactured housing community known as Rudgate Manor, which is further described on the attached Exhibit A, including, without limitation, land, easements, buildings, structures, improvements, manufactured home sites, fixtures attached to or used at the property, parking, facilities, walkways, ramps, machinery, equipment, goods, licenses, permits and franchises issued with respect to the use, occupancy, maintenance or operation or the property, and all other items and rights now or hereafter belonging to Owner and used in any manner and in relation thereto (the “Property”).

B.    Owner, Rudgate Clinton SPE, LLC, a Delaware limited liability company (“RC SPE”), and Rudgate Clinton Estates SPE, LLC, a Delaware limited liability company (“RC Estates SPE,” and together with Owner and RC SPE, the “Senior Loan Borrowers”), have obtained from Ladder Capital Finance LLC, (the “Senior Lender”) a loan (the “Senior Loan”) secured by first mortgages on the Property and that certain manufactured housing community owned by RC SPE and RC Estates SPE (collectively, the “Rudgate Clinton Owners”) known as Rudgate Clinton (“Rudgate Clinton”), pursuant to that certain Loan Agreement dated _________, 2012 (the “Senior Loan Agreement”) among the Senior Loan Borrowers and the Senior Lender.

C.    Rudgate Village Holdings, LLC, a Michigan limited liability company (“RV Holdings”), is the sole member of Owner, Rudgate Clinton Holdings, LLC, a Michigan limited liability company (“RC Holdings”), is the sole member of RC SPE, and Rudgate Clinton Estates Holdings, LLC, a Michigan limited liability company (“RC Estate Holdings,” and together with RV Holdings and RC Holdings, the “Mezzanine Borrowers”), is the sole member of RC Estate SPE.

D.    The Mezzanine Borrowers have obtained from Sun Rudgate Lender LLC (the “Mezzanine Lender”) a mezzanine loan (the “Mezzanine Loan”) secured by, among other things,  their respective membership interests in the Owner and the Rudgate Clinton Owners, pursuant to that certain Mezzanine Loan Agreement, dated _________, 2012 (the “Mezzanine Loan Agreement”) among the Mezzanine Borrowers and the Mezzanine Lender.

E.    Owner desires to (i) engage and appoint Manager to perform the property management and leasing services more particularly described in this Agreement, and (ii) 

engage and appoint Manager to act as asset manager of the Property and to perform the asset management services more particularly described in this Agreement, and Manager desires to accept such engagement and appointment, all upon and subject to the terms and conditions hereinafter set forth.

F.    Manager and the Rudgate Clinton Owners have entered into a Property Management Agreement dated the date hereof (the “Rudgate Clinton Management Agreement”) under which the Rudgate Clinton Owners have engaged Manager to perform property management, leasing and asset management services with respect to Rudgate Clinton on terms substantially the same as those set forth in this Agreement.  

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth below, Owner and Manager agree as follows:
1.    Appointment of Manager. Owner hereby appoints Manager as the exclusive managing and leasing agent for the Property, and as Owner’s agent to perform asset management services and otherwise coordinate ownership activities for the Property, and Manager hereby accepts such appointment, each upon and subject to the terms and conditions set forth in this Agreement.  Manager shall be deemed to be an independent contractor and no partnership or joint venture relationship between Owner and Manager is created or is intended by this Agreement.
2.    Effective Date; Term.  Except as otherwise set forth in Section 8 herein, this Agreement shall commence on the date hereof and continue until the tenth anniversary of the date of this Agreement.
3.    Manager's Duties and Powers as Property Manager.
(a)    General Scope.  Manager shall manage, coordinate and supervise the proper conduct of the business and affairs pertaining to the operation, maintenance and management of the Property (all such activities being hereinafter collectively referred to as “Management Activities”), consistent with the same standards and practices Manager employs in connection with managing properties for Sun Communities Operating Limited Partnership and its affiliates (the “Applicable Standards”). Except as otherwise specifically provided in this Agreement, Manager shall have full control and decision-making authority over the operation, maintenance and management of the Property. Manager shall have such responsibilities, and shall perform and take, or cause to be performed or taken, all such services and actions customarily performed or taken by managing agents of property of similar nature, location and character to that of the Property as shall be necessary or advisable for the proper conduct of the Management Activities, including, without limitation, the duties and powers set forth in Sections 3(b) through 3(l) below.  Unless otherwise specifically provided in this Agreement, all services and actions which Manager is required or permitted to perform or take, or cause to be performed or taken, under this Agreement in connection with the 

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Management Activities shall be performed or taken, as the case may be, for and on behalf of Owner and at Owner’s sole expense including, without limitation, Manager’s travel expenses, Manager’s on-site personnel, including the property manager, and Manager's contracting with third parties for certain services as provided for herein. All Property Revenue (as defined in Section 3(c) below) shall be made available to Manager to be used in conducting the Management Activities. If, in the judgment of Manager, such Property Revenue is not sufficient to permit the Manager to conduct the Management Activities, Owner may, but shall not be required to, contribute cash in an amount equal to any such shortfall to permit the Manager to conduct the Management Activities.  In no event shall Owner be deemed to be in default under this Agreement in the event Owner does not contribute cash to fund any such shortfalls.  To the extent Owner does not elect to so contribute cash to make up any such shortfall, and Manager reasonably determines that such funds are needed in order for Manager to perform the Management Activities in accordance with Applicable Standards, the Owner shall be required to cause the Mezzanine Borrowers to request additional advances under the Mezzanine Loan to fund such shortfalls and to the extent such Mezzanine Borrowers receive any additional advances under the Mezzanine Loan to fund such shortfalls, Mezzanine Borrowers shall cause such funds to be contributed to Owner and then funded to Manager to make up any remaining shortfall.  
(b)    Budget; Reconciliation.  Manager shall cause to be prepared on an annual operating budget (the "Operating Budget") for the operation, maintenance, repair and leasing of the Property in accordance with the Applicable Standards for the immediately succeeding calendar year. Manager shall deliver a copy of the Operating Budget to Owner at Owner’s written request.  
(c)    Rent and Collections.  Manager shall endeavor in accordance with the  Applicable Standards to collect from all persons and/or entities occupying or using space in the Property (individually a “Tenant” and collectively “Tenants”) all fixed, based and minimum rent and all other amounts payable by such Tenants, including, without limitation, taxes and electricity or other utility services, if applicable (all such fixed, base or minimum rents and other amounts, if any, being sometimes hereinafter collectively referred to as “Rent”) under their respective leases or license, occupancy or similar agreements (individually a “Lease” and collectively “Leases”), and in connection therewith, shall prepare and deliver to Tenants all “late payment,” default and other appropriate notices, requests, bills, demands and statements, including notices of taxes, electricity and other utility services increases.  Manager may retain counsel, collection agencies and such other persons and firms as Manager shall deem appropriate or advisable, to enforce by legal action the rights and remedies of Owner against any Tenant in default in the performance of its obligations under the Lease and shall be entitled to utilize “Property Revenue” (as defined below) in order to pay all costs and expenses incurred in connection therewith.  In the event a portion of any Rent received by Manager represents such Tenant’s installment payment towards its manufactured home, Manager shall cause such installment payment to be paid to holder to the installment contract for such manufactured home.  On the Effective Date, Manager and Owner shall make the following adjustments to Property Revenue:

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(i)      Real estate taxes and personal property taxes which are a lien upon or levied against any portion of the Project prior to the Effective Date and which become delinquent prior to the Effective Date (other than current taxes), and all installments of special assessments levied on any portion of the Project prior to the Effective Date and which become delinquent prior to the Effective Date, shall be paid by Owner prior to the Effective Date.  Current real estate taxes, current installments of special assessments and current personal property taxes levied against any portion of any Project paid by Owner and applicable to the period after the Effective Date shall be prorated and adjusted between the parties on the due date basis of the taxing authority (it being agreed such taxes are payable in advance) and the portion allocable to the period on and after the Effective Date shall be paid by Manager to Owner on the Effective Date.
(ii)      The amount of all unpaid water and other utility bills for the Project which are not directly billed to the tenants of the Project, and all other operating and other expenses incurred with respect to the Project relating to the period prior to the Effective Date, shall be paid by Owner on or prior to the Effective Date or, if not paid, as soon as possible after Closing following receipt of an invoice therefor and if prepaid by Owner, such amounts shall be reimbursed by Manager to Owner on the Effective Date.  In the event water is submetered and billed to the tenants, then the company completing such submetering shall continue to bill such tenants for the water services utilized through the date of Closing and shall remit all amounts received to the Owner as and when received for periods through the Effective Date.  In the event that Manager receives any payments from residents of the Projects which are payments for water bills for periods through the Effective Date, Manager shall promptly remit such amounts to Owner as and when received.
(iii)      Charges under service, utility, supply, maintenance and employment contracts and agreements and all other continuing contractual obligations affecting any Owner or the ownership, operation or development of any Project, and all amendments thereto and which will not be terminated as of the Effective Date (the “Project Contracts”) attributable to the period prior to the Effective Date shall be paid by Owner prior to the Effective Date, or, if not paid, the amount due shall be paid by Owner to Manager on the Effective Date and if prepaid by Owner, such amounts shall be reimbursed by Manager to Owner on the Effective Date.
(iv)      All prepaid rental and other revenues collected up to the Effective Date which are allocable to the period from and after the Effective Date shall be Property Revenue and as such paid by Owner to Manager for application in accordance with Section 3(d) below.  Current resident rents shall be prorated and adjusted as of the date of Closing based upon the actual number of days in the month of Closing with Manager being paid credited for rents on the date of Closing.  All rental and other revenues actually collected by Manager attributable to rent due for such month of Closing and received by Manager within sixty (60) days following the Effective Date, shall be prorated between Owner and Manager based on the number of days in such month with Owner receiving rents from the first (1st) day of such month through the Effective Date and with Manager receiving such rents from 

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the Effective Date through the last day of the month.  Except as provided in the preceding paragraph, to the extent Manager collects, within one hundred eighty (180) after the Closing, any rental or revenues allocable to the period prior to the Effective Date, Manager shall pay the same to Owner and Manager shall use its good faith efforts to collect all such rent or revenues allocable to the period prior to the Effective Date, but Manager shall not be required to commence litigation or institute evictions with respect to such tenants; provided, however, and except as otherwise set forth above, Manager is assuming no obligation whatsoever for the collection of such rentals or revenues and all rentals and revenues collected subsequent to the Effective Date shall always, in the first instance, be applied first to the most current rentals and revenues, if any, then due under the tenant leases or otherwise.  Further, Owner shall not have the right to seek collection, through litigation or otherwise, of unpaid rent from any person while they remain a tenant of the Property, nor shall Owner institute any eviction or lockout proceedings against any residents to recover delinquent rents.  Owner shall retain one hundred (100%) percent of the right to receive any past due rents with respect to residents who are no longer residents of the Property. 
(v)    An amount equal to all expenses of the Property which were paid prior to the Effective Date and for which Manager will benefit after the Effective Date including, without limitation, annual license and permit fees, shall be paid by Manager to Owner on the Effective Date, and an amount equal to all expenses of the Property which were incurred prior to the Effective Date and are due or paid after the Effective Date shall be paid by Manager from Project Revenues. 
(vi)      All compensation, fringe benefits and other amounts due the employees of any Owner or any manager of the Property for the period prior to the Effective Date, whether as hourly pay, salaries, overtime, bonus, vacation or sick pay, severance pay, pensions or otherwise, and all amounts due for the payment of employment taxes with respect thereto, shall be paid by Owner on or prior to the Effective Date, or as soon as reasonably possible following the Effective Date.
(vii)      Manager acknowledges and agrees that Owner may have entered into certain cable agreements prior to the date hereof and in the event Owner received any door fees or lump sum payments with respect to such cable agreements, such amounts shall be Owner’ sole and exclusive property and shall not be prorated and in no event shall Manager receive a credit with respect to any such door fees or lump sum payments.
(d)      Property Revenue after the Effective Date.  From and after the Effective Date, each month, and except as otherwise set forth above, Manager shall apply the Rent so collected and any and all other revenue pertaining to the Property from whatever source (together with Rent, “Property Revenue”) as follows: 
(i)    First, to the payment of all operating and other expenses incurred in connection with the Property in order to manage the Property in accordance with the Applicable Standards, which are not otherwise payable by third parties, as reasonably 

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determined by the Manager, including, but not limited to, all expenses incurred by Manager in performing its obligations under this Agreement, all capital expenditures, the cost of maintaining the Property, any and all repair, maintenance and other obligations under any Lease, the cost of all operation, maintenance, improvement, protection, preservation, display, marketing, leasing or other activities on or with respect to the Property, including without limitation, real estate taxes, insurance premiums and assessments (collectively, the “Operating Expenses”).  Operating Expenses shall also include, without limitation, all costs and expenses incurred by Owner and/or Manager related to corporate annual registration payments, resident agent fees, bank fees, independent director fees, loan servicing and related costs, expenses and fees, accounting fees and other costs and expenses incurred as a result of reporting requirements imposed under any mortgage loans (in excess of those incurred by Owner in the absences of such requirements) and all other similar excess costs and expenses incurred in order to comply with the requirements of any mortgage loans  In the event that Property Revenue collected for any month is insufficient to pay that month’s Operating Expenses in full, Manager may provide such funds as necessary to cover the Operating Expenses shortfall.  Any funds advanced by Manager for Operating Expense shortfalls will accrue interest until repaid at a rate equal twenty-four (24%) percent per annum and shall be reimbursable to Manager (including interest thereon) from future collected Property Revenue.
(ii)    Second, to the payment of the debt service obligations of the Senior Loan Borrowers to the Senior Lender, under the Senior Loan Agreement. It is acknowledged and agreed that a portion of the revenue from Rudgate Clinton will also be used to repay such debt service obligations pursuant to Section 3(c)(ii) of the Rudgate Clinton Management Agreement.  It is further acknowledged and agreed that the obligation to apply Property Revenue to such debt obligations under this Section 3(c)(ii) shall be satisfied only when repayments under the Senior Loan Agreement pursuant to this Section 3(c)(ii) and Section 3(c)(ii) of the Rudgate Clinton Management Agreement are in the aggregate sufficient to satisfy all such current debt service obligations, regardless of the relative portions of such repayments made under this Agreement and the Rudgate Clinton Management Agreement.
(iii)    Third, to the payment of the Property Management Fees to Manager pursuant to the provisions of Section 7 of this Agreement, including any accrued and unpaid Property Management Fees.  
(iv)    Fourth, to the payment of that portion of the accrued and unpaid interest owing to the Mezzanine Lender under the Mezzanine Loan Agreement determined by applying a 2.0% annual interest rate on the principal outstanding under the Mezzanine Loan Agreement and the related promissory notes. It is acknowledged and agreed that a portion of the revenue from Rudgate Clinton will also be used to repay the same amount of interest under the Mezzanine Loan Agreement pursuant to Section 3(c)(iv) of the Rudgate Clinton Management Agreement.  It is further acknowledged and agreed that the obligation to apply Property Revenue to such portion of the Mezzanine Loan interest under this Section 3(c)(iv) shall be satisfied only when payments of such interest pursuant to this Section 3(c)(iv) and Section 3(c)(iv) of the Rudgate Clinton Management Agreement are in the aggregate sufficient 

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to satisfy the interest payment requirement set forth above, regardless of the relative portions of such repayments made under this Agreement and the Rudgate Clinton Management Agreement.
(v)    Fifth, to the payment to the Owner of up to $135,000 per year, payable within thirty (30) days of the end of each calendar year of the Property, to permit the Owner to make distributions to its direct and indirect equity owners, including any accrued but unpaid amounts payable pursuant to this Section 3(c)(v) for prior years, less any unpaid amounts owed by Owner under the Guaranty executed by Owner in connection with that certain Asset Purchase Agreement (the “APA”) dated as of the date hereof between Owner, certain affiliates of Owner, and Sun Communities Operating Limited Partnership (“SCOLP”) which unpaid amounts which are not disputed by Owner shall be paid to SCOLP.  If the unpaid amounts under the Guaranty are disputed by Owner, Manager shall retain the disputed amount until instructed otherwise by a court of competent jurisdiction or in writing jointly by Owner and SCOLP or, if appropriate, interplead the disputed amount in to a court of competent jurisdiction, which the parties agree is the Oakland County, Michigan Circuit Court.  It is acknowledged and agreed that a portion of the revenue from Rudgate Clinton will also be used to pay up to $135,000 per year to the Rudgate Clinton Owners pursuant to Section 3(c)(v) of the Rudgate Clinton Management Agreement.  It is further acknowledged and agreed that, notwithstanding anything to the contrary in this Agreement or the Rudgate Clinton Management Agreement, the aggregate payments to the Owner under this Section 3(c)(v) and to the Rudgate Clinton Owners pursuant to Section 3(c)(v) of the Rudgate Clinton Management Agreement shall not exceed $135,000, regardless of the relative amounts of the payments to Owner and the Rudgate Clinton Owners hereunder and thereunder.
(vi)    Sixth, to the payment of the Asset Management Fees and reimbursable expenses to Manager pursuant to the provisions of Section 7 of this Agreement, including any accrued and unpaid Asset Management Fees and reimbursable expenses.  
(vii)    Seventh, to the establishment of such reserves as Manager shall deem necessary for the benefit of the Property in its sole and absolute discretion.
(viii)    Eighth, to the payment of all interest and principal payable to the Mezzanine Lender under the Mezzanine Loan Agreement and the related promissory notes that have not been previously paid under Section 3(c)(iv) of this Agreement, which payments shall be applied first to accrued and unpaid interest and then to unpaid principal. It is acknowledged and agreed that a portion of the revenue from Rudgate Clinton will also be used to repay principal and interest under the Mezzanine Loan Agreement pursuant to Section 3(c)(viii) of the Rudgate Clinton Management Agreement.  It is further acknowledged and agreed that the obligation to apply Property Revenue to such principal and interest repayment obligations under this Section 3(c)(viii) shall be satisfied only when repayments of Mezzanine Loan principal and interest pursuant to this Section 3(c)(viii) and Section 3(c)(viii) of the Rudgate Clinton Management Agreement are in the aggregate sufficient to satisfy repay the 

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Mezzanine Loan in full, regardless of the relative portions of such repayments made under this Agreement and the Rudgate Clinton Management Agreement.
(e)    Employees.
(i)    To the extent Manager deems necessary for the conduct of the Management Activities, Manager shall hire personnel who, in each instance, shall be employees of Manager.  In no event shall Owner be obligated to hire any employees with respect to the Property.  The wages and benefits of any personnel hired by Manager shall be paid as provided in Section 3(c) above.  Manager shall direct and supervise all personnel hired by Manager in the performance of their duties and shall discharge all personnel whose employment Manager shall determine to be unnecessary or undesirable.  Manager shall use all reasonable efforts to minimize duplication of services among its employees and to avoid overtime whenever reasonably possible.  Manager shall select the personnel it employs to perform the Management Activities in accordance with the Applicable Standards.
(ii)    Manager shall (A) pay all wages and other benefits properly payable to the employees hired by Manager under Section 3(d)(i) above, (B) maintain adequate payroll records, (C) remit to the proper authorities all required income and social security withholding taxes, unemployment insurance payments, workmen's compensation payments and such other amounts with respect to the wages and other benefits payable to such employees as may be required under applicable laws, together in each case with all required reports or other filings, and (D) obtain, maintain and administer all medical, disability and other insurance benefits and other fringe benefits as may from time to time be required under any union or other agreements or arrangements pertaining to Manager's employment, as the case may be, of such personnel.
(f)    Professionals and Contractors.  To the extent Manager deems necessary in connection with the Management Activities, Manager shall (i) identify and enter into contracts with architects, engineers, accountants, attorneys, tradesmen and other independent contractors qualified to perform services at the Property, and (ii) supervise the administration, and monitor the performance, of all work to be performed and services to be rendered under all such contracts.  Manager shall use due care in the selection of all such contracts.  Manager shall select all such professionals and other independent contractors in accordance with the Applicable Standards.  All contracts entered into in connection with the performance of the Management Activities shall be entered into in the name of Manager.
(g)    Maintenance.
(i)    Manager shall cause the Property, including common areas thereof, sidewalks, signs, parking lots and landscaping, to be maintained in good and safe condition.  In connection with such maintenance obligations, Manager shall be permitted to use the equipment and vehicles owned by Owner and located on the Property and Manager shall obtain insurance for such equipment and fund the costs thereof from Property Revenue.

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(ii)    To the extent of the capacity of all equipment and systems located in or servicing the Property, Manager shall cause all such equipment and systems to be operated effectively and maintained in good repair.  Further, Manager shall cause to be provided or made available to Tenants those services which Owner is required to provide or to make available under Leases.
(iii)    Manager shall enter into such service and maintenance contracts as Manager shall reasonably deem necessary or appropriate for the operation and maintenance of the Property, including, but not limited to, the equipment and systems located in or servicing the Property, contracts for utilities, telephone service, landscape maintenance, rubbish removal, fuel, security, food vending and vermin extermination.  Manager shall purchase in reasonable quantities and at reasonable prices all supplies, materials, tools and equipment which Manager shall deem necessary or appropriate for the proper operation and maintenance of the Property.  Manager shall be required to utilize Property Revenue in order to pay any and all amounts due under such service and maintenance contracts, to pay for all utilities and to pay for all such supplies, materials, tools and equipment.
(h)    Supervision of Tenants.
(i)    Manager shall plan and coordinate the moving in and moving out of Tenants in the Property in order to insure a minimum of disturbance to the operation of the Property and to other Tenants then occupying or preparing to occupy space in the Property.
(ii)    Manager shall receive and use all reasonable efforts to attend to and resolve any complaints, disputes or disagreements by or among Tenants.
(iii)    Manager shall take steps in accordance with the Applicable Standards to cause the Tenants’ compliance with the terms and provisions of their respective Leases.
(iv)    Manager may terminate tenancies, evict Tenants and recover possession of premises occupied by them, and sue in Owner's name to recover Rents and other sums due, and shall be required to utilize Property Revenue in order to pay all actual attorneys’ fees, court costs and legal expenses incurred in connection with such actions.
(i)    Insurance.  Manager shall procure and maintain in full force and effect at all times insurance coverage to adequately protect Owner and the Property, which shall be in compliance with the terms of the Senior Loan Agreement and the Mezzanine Loan Agreement, and in compliance with Applicable Standards and all insurance costs shall be funded by Manager by applying Property Revenue to all such insurance costs.  In all events, the insurance maintained by Manager with respect to the Property shall be consistent with the insurance obtained by Manager with respect to the other similar manufactured home communities managed by Manager or its affiliates in southeast Michigan.  In the event that the insurance maintained by Manager does not provide coverages for the benefit of Owner 

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consistent with the insurance previously maintained by Owner, as evidenced by the certificate which is attached hereto as Exhibit B, then, in such event, Manager shall indemnify, defend and hold Owner harmless with respect to all liabilities incurred by Owner which would have been covered by such insurance in the event Manager had maintained such insurance set forth on Exhibit B and Sun Communities Operating Limited Partnership shall guarantee such indemnity for the benefit of Owner by joining in this Agreement as provided below.  Pursuant to Section 3(c), Manager shall pay all premiums for such insurance coverage as part of Operating Expenses. Additionally, Manager agrees and covenants to carry at all times Workers' Compensation and Employers' Liability coverage and shall be entitled to utilize Property Revenue to pay for such insurance coverages.  Manager shall be required to cause the Senior Lender to be identified as the loss payee with respect to any casualty insurance and shall be required to identify Owner as a named insured and any other parties reasonably designated by Owner as additional insureds on all insurance policies and shall provide Owner with copies of insurance certificates promptly upon request by Owner and shall provide Owner with such additional information regarding such insurance policies as Owner or Owner’s insurance agent may reasonably request including, without limitation, copies of all such insurance policies. All insurance obtained by Manager shall state that the insurance shall be considered primary and non-contributory with any similar coverage maintained by additional insureds.  In the event that Manager self-insures any of the insurance coverage otherwise required to be obtained hereunder, then, in such event, Manager shall be directly liable to Owner for all amounts which would have otherwise receivable by Owner under such insurance policies, Manager shall be permitted to utilize Property Revenues to fund this liability to Owner, and Sun Communities Operating Limited Partnership joins in this Agreement solely for the purpose of guarantying payment to Owner of all such amounts and payment of all insurance deductibles related to claims under such insurance policies and guarantying payment under the indemnity by Manager to Owner set forth above.
(j)    Advertising - Public Relations.  Manager may, but shall not be required to, hire such advertising services, place such advertisements and generally supervise and attend to all promotional matters pertaining to the operation of the Property as Manager shall deem advisable.
(k)    Litigation.  To the extent Manager in its sole discretion deems it prudent, Manager shall institute legal or other actions, in the name of the Owner, to enforce the collection of rent or other income from the Property, and to dispossess tenants or other persons from the Property, and to enforce the rules and regulations thereof; provided, however, Manager shall be obligated to utilize Property Revenue to pay all actual attorneys’ fees, court costs and legal expenses incurred in connection with such actions including payment of any sums which may become due as a result of counter and/or cross-claims in such actions.  In the event that there are insufficient funds to pay any and all such actual attorneys’ fees, court costs and legal expenses or other sums due in connection with such action(s), Manager shall be required to fund such shortfalls.  In connection with such legal action, Manager may engage legal counsel reasonably acceptable to Owner.  All such suits and proceedings shall be brought in the name of Owner but shall be handled in such manner as Manager directs; provided, 

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however, in the event that a suit or proceeding could result in liability to Owner in excess of $10,000, then Owner shall be entitled to retain separate counsel to defend Owner in connection with such suit or proceeding.  Unless counsel engaged by Manager is prohibited from representing Owner due to a conflict of interest, Owner’s separate counsel shall be engaged by Owner at its expense.  Owner shall be entitled to join in any settlements of any such suits and proceedings if the settlement could reasonably be expected to create a material liability for the Owner which is not required to be satisfied by the Manager, and any such settlements will require Owner’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed.  All legal expenses incurred in bringing such suits or proceedings or defending against all such suits and proceedings in conformance with this Section 3(j) (other than for Owner’s separate counsel if no conflict exists) shall be reimbursable Operating Expenses to Manager.
(l)    Permits and Licenses.  Manager shall apply for, obtain and maintain, in the name of Owner, all licenses and permits required by any federal, state, county or municipal authority in connection with the management or operation of the Property.
(m)    Compliance.  In accordance with the Applicable Standards, Manager shall take or cause to be taken such actions in and about or affecting the Property as Manager shall deem advisable to comply with all legal requirements applicable to the Property.  Manager agrees not to permit the use of the Property for any purpose in violation of the Applicable Standards which may void any policy of insurance, which may render any loss thereunder uncollectible or which would be in violation of any governmental laws, regulations or restrictions.

Manager shall, without Owner’s prior written approval, take or cause to be taken any such actions without limitation as to cost if failure to do so would or might, in Manager's reasonable judgment, expose Owner or Manager to criminal liability.  Manager and Owner shall each promptly notify the other of any violation, order, rule or determination affecting the Property of any governmental authority or agency.

In accordance with the Applicable Standards, Manager shall take or cause to be taken such actions in and about or affecting the Property as Manager shall deem advisable to comply with all terms and conditions contained in any ground lease, space lease, mortgage, deed of trust or other security instrument affecting the Property.

Owner may, without Manager’s prior written approval, take or cause to be taken any actions which reasonably must be taken by Owner to prevent Owner from incurring exposure for criminal liability or civil liability and all costs and expenses incurred by Owner in connection therewith shall be paid by Owner, unless Manager has failed to act in accordance with the Applicable Standards with respect to such matter, in which event the cost thereof shall be a reimbursable Operating Expense, to be repaid by Manager to Owner from the Property Revenue within thirty (30) days after written request therefor.

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(n)    In the event Owner incurs any costs or expenses associated with the operation, maintenance, repair, replacement and/or management of the Property, Owner shall be reimbursed from Property Revenue for all such costs and expenses and Manager shall cause such reimbursement to occur within thirty (30) days after written request therefor by Owner.
(o)    All service, utility, supply, maintenance and employment contracts and agreements and all other continuing contractual obligations affecting Owner or the ownership, operation or development of the Project, and all amendments thereto and which will not be terminated as of the Effective Date (collectively, the "Project Contracts") are listed on the attached Exhibit C.  True, correct and complete copies of all Project Contracts have been delivered to Manager.  Those Project Contracts identified on Exhibit C as being assumed by Manager after the Effective Date and shall be the “Assumed Project Contracts”.  To Owner’s knowledge, each Assumed Project Contract is in full force and effect, Owner has complied in all material respects with the provisions of each Assumed Project Contract to which it is a party and is not in material default under any such Assumed Project Contract and, to the actual knowledge of Owner, no other party to any Assumed Project Contract has failed to comply in any material respect with, or is in default under, the provisions of any Assumed Project Contract.  Prior to or at the Effective Date, Owner shall terminate (x) any contract of Owner not identified as Project Contracts, and (y) the contracts listed on Exhibit C (the “Non-Assumed Project Contracts”).  Prior to and after the Closing, Owner shall be responsible for all liabilities and obligations of Owner under the Non-Assumed Project Contracts, and shall indemnify and hold harmless Manager from all such liabilities and obligations.
4.    Manager's Duties and Powers as Leasing Manager.
(a)    Duties.  Manager shall use all reasonable efforts, consistent with normal and customary practices in the manufactured home leasing business, to negotiate and consummate Leases for all space in the Property available for rent from time to time, at rentals and upon such other terms and conditions as shall be consistent with the relevant market for the Property, as reasonably determined by Manager.  Owner acknowledges that Manager and its affiliates own manage and operate other manufactured home communities in the vicinity of the Property.  In connection with such leasing activities, Manager shall be required to comply with the Applicable Standards and to comply in all material respects with all applicable laws, rules and regulations of all applicable governmental authorities and agencies which could reasonable be expected to expected to create a material liability for the Owner which is not required to be satisfied by the Manager hereunder.
(b)    Powers.  Subject to the terms and conditions of this Agreement, Manager shall have the power to:
(i)    negotiate on behalf of Owner, on such terms as may be designated by Owner to Manager from time to time, with respect to the rental of space at the 

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Property, the extension or renewal of existing Leases and the modification or termination of Leases and other agreements pertaining to all of the above;
(ii)    prepare or cause to be prepared, using Manager’s form of Lease, all new Leases and modifications or terminations of existing Leases; and
(iii)    authorize or provide for advertisements and other promotional activities, including, leasing plans and signs and circular matter, contemplated under the marketing and promotional program developed by Owner.
5.    Manager's Duties and Powers as Asset Manager. In connection with its appointment as asset managers hereunder, Manager shall perform the following services:

(a)    oversee the preservation of the assets and properties associated with the Property in an efficient and satisfactory manner, and all property management and leasing functions in connection with the Property;

(b)    review the financial performance of the Property;

(c)    handle the financial reporting and cash management requirements of Owner relative to the Property including, without limitation, all reporting and cash management requirements associated with the Senior Loan and/or Mezzanine Loan;

(d)    maintain proper books of accounts and other records with respect to Owner’s interest in the Property;

(e)     compile information relating to the Property as necessary for the preparation of tax returns by the Owner and provide such information to the tax return preparers and advisers designated by Owner not later than April 1st of each year;

(f)    handle all loan compliance procedures and reporting with the Senior Lender, the Mezzanine Lender and their successors and assigns;

(g)    investigate, select and manage relationships with accountants, legal counsel, property managers, brokers, investors, builders and developers, banks and other lenders in connection with the Senior Loan and the Mezzanine Loan, and others as necessary in connection with the business of Owner; and 

(h)    manage, on behalf of Owner, the collection and disbursement of funds derived from the Property, payment of the debts and fulfillment of the obligations of Owner as to the Property, and subject to the limitations set forth in this Agreement, handle, prosecute and settle any claims of Owner as to the Property.

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In performing its asset management services under this Agreement, the Manager may from time to time call upon and utilize various facilities, personnel and support services of other persons including one or more affiliates of the Manager.  The Manager shall have the authority to execute agreements, contracts and other documents as asset manager pursuant to this Agreement to the extent such documentation is necessary or appropriate to carry out Manager’s asset management responsibilities hereunder, and no separate approval or consent of Owner shall be required as to such documentation, as long as the execution of such documentation does not create any material adverse impact on Owner and does not violate the terms and conditions of the loan documents with respect to the Senior Loan and/or the Mezzanine Loan.
6.    Books, Accounts, Records and Remittances.
(a)    Books and Records.  Manager shall establish and maintain such books of account, records and other documentation pertaining to the operation and maintenance of the Property as Manager determines are customarily maintained by managing agents of Property similar in location and size to that of the Property. Owner and any representative of Owner shall have the right to inspect such records and audit any and all statements during all business hours, and make photocopies of same at Owner’s expense and such right of inspection, audit and photocopying shall survive the expiration or termination of this Agreement.  
(b)    Operating Accounts.  Manager shall open and maintain an account or accounts separate from Manager's personal account (collectively, “Operating Accounts”), as Manager shall deem necessary, in a banking institution or institutions designated from time to time by Manager.  Manager shall deposit in the Operating Accounts all funds collected by Manager under this Agreement, and shall make withdrawal from the Operating Accounts, pursuant to Section 3(c) above.  
(c)    Security Deposits.  If and when required by law and/or Lease, Manager shall deposit in separate accounts all security deposits, if any, of Tenants.  Notwithstanding the foregoing, irrespective of whether Manager holds security deposits in a separate account, in all events, Manager shall be required to repay all security deposits collected by Manager to the Tenants (to the extent required by law and/or such Tenant’s Lease) and Manager shall indemnify, defend and hold Owner harmless with respect to liabilities incurred by Owner as a result of any unpaid security deposits.

(d)    Year-End Reports.  As soon as practicable after the end of each Operating Year but in no event later than one hundred twenty (120) days after the end of each Operating Year, Manager shall prepare detailed statements of all receipts, expenses and charges pertaining to the operation and maintenance of the Property during the preceding Operating Year. Manager shall deliver such other reports as are created by Manager in accordance with the Applicable Standards or which are required to be prepared under any mortgage loan documents (which it may legally distribute to Owner in accordance with applicable law). 

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Owner shall be responsible for the preparation of its own federal, state and local tax returns, including income and informational tax returns.
7.    Compensation 
(a)    Property Management Fees.  Manager shall be paid Manager's property management fee (the “Property Management Fee”) from Property Revenue for its performance of the Management Activities an amount equal to three percent (3%) of the Property Revenue actually collected by or for the account of Owner in each calendar month, or proportion thereof, during the term of this Agreement. Subject to the terms of Section 3(c) above, the Property Management Fee shall be payable monthly, on or about the 10th day of each calendar month, based upon Property Revenue actually collected during the immediately preceding month, and in accordance with Section 3(c) above. Manager shall be entitled to receive any accrued and unpaid Property Management Fees for prior months to the extent there is Property Revenue available to pay such accrued and unpaid Property Management Fee. If this Agreement is terminated and the effective date of such termination is a day other than the last day of any calendar month, the Property Management Fee earned by Manager for such month shall be prorated and adjusted based on the Property Revenue collected for such month.
(b)    Asset Management Fees and Reimbursement.  
(i)    Manager shall be paid Manager's asset management fees (the “Asset Management Fee”) from Property Revenue for its performance of its asset management services hereunder, an amount equal to four percent (4%) of the Property Revenue actually collected by or for the account of Owner in each calendar month, or proportion thereof, during the term of this Agreement. Subject to the terms of Section 3(c) above, the Asset Management Fee shall be payable monthly, on or about the 10th day of each calendar month, based upon Property Revenue actually collected during the immediately preceding month, and in accordance with Section 3(c) above.  Manager shall be entitled to receive any accrued and unpaid Asset Management Fees for prior months to the extent there is Property Revenue available to pay such accrued and unpaid Asset Management Fees. If this Agreement is terminated and the effective date of such termination is a day other than the last day of any calendar month, the Asset Management Fees earned by Manager for such month shall be prorated and adjusted based on the Property Revenue collected for such month.

(ii)    In addition, Manager shall be reimbursed from Property Revenue for all costs and expenses incurred by the Manager in connection with performing its asset management duties set forth in this Agreement; provided, however, the Manager shall not reimburse the Manager for any such asset management expenses related to the Manager's overhead and other internal expenses, personnel expenses of employees located at the Manager's home office and costs attributable to losses arising from criminal acts, gross negligence, willful misconduct or fraud by the Manager or the Manager's employees. 

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8.    Termination.
(a)    Termination.  This Agreement may be terminated:
(i)    by the mutual written agreement of Owner and Manager; 
(ii)    by either Owner or Manager, if the entire Property is condemned or acquired by eminent domain; 
(iii)    by Manager, if Owner is in default of its obligations under this Agreement, which such default remains uncured for a period of thirty (30) days following receipt by Owner of written notice from Manager of such default, or for such longer period as may be reasonably necessary to cure the default if Manager is diligently pursuing a cure of such default; 
(iv)    by Manager, at any time on not less than 60 days’ prior written notice to Owner;
(v)    by Manager, at any time, if the Rudgate Clinton Management Agreement is validly terminated pursuant to Section 8(a)(iii) thereof. 
(vi)    by Owner, if Manager commits a fraud against Owner or a crime consisting of moral turpitude or in the event of embezzlement or any other felony which is likely to materially impact Owner.
(vii)    by Owner, to the extent Owner is required to terminate the Agreement as a result of the requirements of the Senior Lender or Mezzanine Lender;
(viii)    by Owner, if Manager is in material default of its obligations under this Agreement, which such default remains uncured for a period of thirty (30) days following receipt by Manager of written notice from Owner of such default provided however, if such default is not capable of cure within such thirty (30) day period, Manager shall have such additional time as may needed so long as Manager is diligently pursuing such default, such default will create a material adverse liability to Owner; provided, however, in the event Manager disputes that it has created such a default, this Agreement shall not be terminated by Owner until a court of competent jurisdiction has determined that Manager has in fact defaulted under the terms of this Agreement and Manager has failed to satisfied the judgment within sixty (60) days after it has become final and un-appealable. 
(b)    Upon the expiration of the initial term of this Agreement, in the event that Mezzanine Loan remains outstanding, and except as otherwise provided in Subsections 8(a)(vi), (vii) and (viii) hereof, Owner shall not replace the Manager with respect to the Property without first obtaining the prior written consent of the Mezzanine Lender and until such time as Owner has obtained such consent, Manager shall continue to operate the Property in accordance with the terms of this Agreement and shall be entitled to receive all amounts 

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due hereunder including reimbursement of costs and expenses incurred during such extended management period.
(c)    Survival of Obligations.  Upon the expiration or termination of this Agreement, (i) Owner’s appointment of Manager hereunder shall cease and terminate and, except as otherwise specifically provided hereunder, Owner and Manager shall have no further obligation or liability to the other, (ii) Manager shall no longer have any authority to represent Owner or take or cause to be taken any actions on Owner’s behalf, and (iii) Owner shall remain liable to Manager to pay all Property Management Fees, Asset Management Fees and other fees, expenses and amounts payable to Manager hereunder which shall have accrued through the date of termination; provided, however, Owner’s obligation to fund such amounts shall be limited to available net cash flow received from Property Revenue not otherwise used to pay Operating Expenses.  The provisions of this Section shall survive any such expiration or termination.
(d)    Continuation of Services.  In the event this Agreement is terminated as a result of actions taken by the Senior Lender and/or Mezzanine Lender, then, at the request of Owner, Manager shall continue to manage the Property until such time as a successor property management company and/or receiver has been appointed in order to insure a continuation of management services without interruption and, subject to the Senior Lender and/or Mezzanine Lender making sums available to pay Manager all sums due hereunder, Manager shall continue to have the right to be paid all fees due hereunder and to be reimbursed for all amounts due hereunder during such extended management period.
9.    No Encumbrance; Cooperation.  Owner agrees that during the term of this Agreement, neither Owner nor Manager shall, absent mutual consent:  (a) permit any liens to be placed upon the Property, other than to the Senior Lender under the Senior Loan Agreement and the Mezzanine Lender under the Mezzanine Loan Agreement; or (b) grant any easements, rights of way, surface oil or mineral rights, or other encumbrances.  Owner and Manager will, if required, or deemed reasonably necessary or desirable by both Owner and Manager, join and assist in the preparation and/or filing by Manager, the execution of all permits, applications, and other written requests, reports and documents, including, but not limited to, rezoning and site plan approval applications for easements, tax splits, challenges to or reduction of real estate taxes and any other documents necessary for Owner’s use of the Property, and appear at zoning and site plan approval hearings.  Owner agrees not to hinder or object to any site plan approval applications submitted by or on behalf of Manager, which site plan approval application is intended to improve the value or operation of the Property in the reasonable opinion of Manager. 
10.    Indemnification.
(a)    Scope.
(i)    Subject to the limitations set forth in this Section 10(a)(i) below, Owner shall indemnify, defend and hold harmless Manager and its principals, officers, 

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directors, shareholders, partners, employees and agents (individually and collectively, the “Owner’s Indemnitees”) from and against any and all liabilities, claims, suits, damages, judgments, costs and expenses of whatever nature, including reasonable counsel fees and disbursements (collectively, “Damages”) incurred by reason of or arising out of Owner’s breach of this Agreement, willful misconduct or bad faith.  Owner shall not be required to indemnify, hold harmless or reimburse Owner’s Indemnitees with respect to any matter arising out of Manager's, Manager's officers' and/or directors' or employees' gross negligence, willful misconduct or fraud. Notwithstanding the foregoing, Owner’s liability and obligation to indemnify Owner’s Indemnitees under this Section 10(a)(i) shall be paid by the  Property Revenue only and otherwise shall be non-recourse to Owner.
(ii)    Manager shall indemnify, defend and hold harmless Owner and its principals, officers, directors, shareholders, members, partners, employees and agents (individually and collectively, the “Manager's Indemnitees”) from and against any and all Damages incurred by reason of or arising out of (A) Manager's breach of this Agreement, gross negligence, willful misconduct or bad faith, and (B) any injury to or death of any person(s), damage to property, loss or use of any property or otherwise in connection with the performance by Manager of Manager’s obligations under this Agreement, (C) any claim, proceeding or suit involving an alleged violation by Manager, its agents or employers, of any law pertaining to (1) fair employment, fair credit reporting, rent control, payment of employment or other taxes which are the responsibility of Manager, or fair housing, including, but not limited to, any law prohibiting or making illegal discrimination on the basis of race, sex, creed, family status, age, color, religion, national origin or mental or physical handicap, or (2) any law pertaining to environmental matters, provided, however, Manager only shall be liable for the indemnity under this Section 10(a)(ii)(B)(2) if Manager, its agents or employees is finally adjudged to have violated any such law pertaining to environmental matters. Manager shall not be required to indemnify, hold harmless or reimburse Manager’s Indemnitees with respect to any matter arising out of Owner’s, Owner’s officers’, directors’, members’ or employees’ gross negligence, willful misconduct or fraud, and (D) Manager’s failure to fund any shortfall needed to pay for amounts due by Manager under this Agreement to the extent Manager is obligated to fund such amounts irrespective of whether Property Revenue is available.  Furthermore, Manager shall indemnify Owner against, all expenses incurred by Owner including, without limitation, actual attorneys’ fees, court costs and legal expenses and any liability, fines, penalties or the like, in connection with any claim, proceeding or suit involving an alleged violation of law by Manager, its agents or employees or with respect to the payment of any employment or other taxes required to be paid by Owner and which are the responsibility of Manager or to be funded from Property Revenue.  Manager shall be permitted to utilize Property Revenues to fund its liability and obligation to indemnify Manager’s Indemnities under this Section 10(a)(ii) hereof.
(b)    Conditions.  The obligation of Owner or Manager to indemnify, hold harmless and reimburse Manager’s Indemnitees or Owner’s Indemnitees, respectively, under Section 10(a) above are subject to the condition that Manager’s Indemnitees or Owner’s Indemnitees, as applicable, shall not take or fail to take any actions, including the prompt 

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notification of the indemnitor or an admission of liability, which would bar Owner or Manager, as the case may be, from enforcing any applicable coverage under policies of insurance or would prejudice any defense of Owner or Manager, as the case may be, in any appropriate legal proceedings pertaining to any such matter or otherwise prevent Owner or Manager, as the case may be, from defending itself with respect to any such matter.
(c)    Survival.  The provisions of this Section 10 shall survive the expiration and any termination of this Agreement.
(d)    Release from Liability.  Each party hereby releases the other in respect of any claim (including a claim for negligence) that it might otherwise have against the other party for loss, damage or destruction with respect to its property by fire or other casualty occurring during the term of this Agreement if, and to the extent, covered under the fire insurance policy covering the Property or any other insurance policy carried by Owner or Manager.  Owner and Manager shall be named insureds under the fire and extended coverage, rent insurance and “all risk” insurance covering the Property, as well as any other insurance carried by Owner or Manager in respect of the Property.  The foregoing release shall not apply to the extent Manager self-insures for any of the insurance otherwise required to be carried by Manager under this Agreement.
11.    Timely Performance.  Owner and Manager shall each perform all of their respective obligations under this Agreement in a proper, prompt and timely manner.  Each shall furnish the other with such information and assistance as the other may from time to time reasonably request in order to perform its responsibilities hereunder.  Owner and Manager each shall take all such actions as the other may from time to time reasonably request and otherwise cooperate with the other so as to avoid or minimize any delay or impairment of either party’s performance of its obligations under this Agreement.
12.    Assignment.
(a)    Manager’s Permissible Assignments.  Manager may assign this Agreement or delegate its responsibilities hereunder to any entity controlled by Manager or any entity that controls or is under common control with Manager. Further, Manager may assign this Agreement or delegate its responsibilities hereunder as a part of any sale of all or substantially all of its assets.  Manager shall not otherwise assign this Agreement or delegate its responsibilities hereunder, except as contemplated by this Agreement, without the prior written consent of Owner, which consent shall not be unreasonably withheld or delayed.
(b)    Owner’s Permissible Assignment.  Owner shall not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of Manager which consent may be withheld by Manager for any reason.
(c)    Assumption and Release.  Each permitted assignee of this Agreement shall agree in writing to personally assume, perform and be bound by all of the terms, covenants, conditions and agreements contained in this Agreement, and thereupon the assignor 

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of this Agreement shall be relieved of all obligations hereunder except those which shall have accrued prior to the effectiveness of such assignment.
13.    Notices.  Any and all notices or other communications given under this Agreement shall be deemed duly served (i) when personally served; (ii) three (3) days after deposited in the U.S. certified mail, return receipt requested; (iii) upon receipt if sent by telephone facsimile with fax acceptance sheet verifying receipt; or (iv) one (1) day after being sent via “overnight” courier service, addressed to the parties at the following address:

If to the Owner:
Rudgate Village SPE, LLC
Attn:  Mr. Graham A. Orley
201 W. Big Beaver Road, Suite 720
Troy, MI  48084-5297
Fax:  (248) 689-2221

And to:
Mr. Gregg L. Orley
40900 Woodward Avenue, Suite 130
Bloomfield Hills, Michigan  48304
Fax:  (248) 593-0323

With a required copy to:
Maddin, Hauser, Wartell, Roth & Heller, P.C.
28400 Northwestern Hwy., 3rd Floor
Southfield, MI  48034-1839
Attn: Mr. Lowell D. Salesin
Fax: (248) 359-6189

If to the Manager:
Sun Home Services, Inc.
Attn: Jeff Davidson
27777 Franklin Road, Suite 200
Southfield, Michigan 48034
Fax: (248) 208-2645

With a required copy to:
Jaffe, Raitt, Heuer & Weiss, P.C.
27777 Franklin Road, Suite 2500
Southfield, Michigan 48034
Attn:     Mr. Mark P. Krysinski
Fax: (248) 351-3082 

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Any party may change its address for the giving of notices under this Agreement by delivering to the other party ten (10) days' written notice of such change of address.
14.    Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Michigan, without regard to conflicts-of-laws principles that would require the application of any other law.
15.    Compliance with the Law.  Manager, in fulfilling its obligations under this Agreement, shall comply with all applicable law.
16.    Government Orders.  In the event that any governmental agency, authority or department should order the repair, alteration or removal of any structure or matter in the Property and if after written notice of the same to Owner by such body or by Manager, Owner fails to authorize Manager or others to make such repairs, alterations or removal, Manager shall be released from any responsibility in connection therewith, and Owner shall be answerable to such body for any and all penalties and fines whatsoever imposed because of such failure on Owner’s part.  Notwithstanding the foregoing, however, Manager is hereby expressly authorized and shall comply with any governmental agency, authority or department order promptly following receipt thereof and may do so without first obtaining Owner prior written consent and, subject to any limitation set forth herein, shall be entitled to be reimbursed for any and all costs and expenses incurred in connection therewith from Property Revenue.
17.    Subordination and Assignment Agreements.  Manager shall enter into such customary assignments and/or subordination agreements as may be requested by the Senior Lender and/or the Mezzanine Lender, all promptly after written request therefor.
18.    Attorneys’ Fees.  Should either party retain an attorney to enforce any of the provisions hereof or to protect its interest in any manner arising under this Agreement, or to recover damages for the breach of this Agreement, then the non-prevailing party in any action agrees to pay to the prevailing party all reasonably costs, damages and expenses, including reasonable attorneys’ fees expended or incurred in connection therewith.
19.    Waiver of Trial by Jury.  OWNER AND MANAGER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.  OWNER AND MANAGER REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
20.     Property Sale Restrictions.  Prior to any offer or sale of the Property, Owner shall comply with the following restrictions:
(a)    At least sixty (60) days prior to offering the Property for sale or soliciting offers for the sale of the Property, Owner shall give Manager written notice thereof, 

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together with a summary of the material terms of the sale (a “Sale Notice”).  If Manager responds in writing to the Sale Notice within ten (10) days after the receipt thereof stating that it wishes to Purchase the Property upon the terms set forth in the Sale Notice, Owner and Manager shall have a period of thirty (30) days (“Negotiation Period”) within which to negotiate the terms of and execute a binding purchase and sale agreement for the Property.
(b)      If such an agreement is not executed within the Negotiation Period, or if Manager fails to timely respond to the Sale Notice, then for a period of six (6) months after the expiration of the Negotiation Period or Manager’s failure to timely respond to the Sale Notice, as applicable, (the “Offer Period”) Owner, may offer the Property for sale and shall be permitted to sell the Property to a purchaser for the Property based upon terms no more favorable to Owner than the terms and conditions set forth in the Sale Notice.  In the event Owner intends to offer the Property on terms other than the terms and conditions set forth in the Sale Notice, then Owner shall again be required to provide Manager with a revised Sales Notice incorporating a summary of the modified terms of the sale.  If Owner intends to enter into a binding agreement with a purchaser for the sale of the Property (“Sale Agreement”) within the Offer Period, Owner shall give Manager written notice thereof accompanied by a copy of the proposed Sale Agreement pertaining to the sale of the Property (a “Third Party Sale Notice”).  For a period of ten (10) days thereafter, Manager shall have the right to enter into the Sale Agreement by written notice to Owner, in which event the Sale Agreement shall constitute a binding agreement between Owner and Manager, and the named purchaser under the Sale Agreement shall have no further rights or obligations thereunder.  If Manager does not enter into such Sale Agreement within such ten (10) day period, then Owner may sell the Property to the named purchaser pursuant to the Sale Agreement; provided, however, that any material modification of the Sale Agreement shall be considered a new Sale Agreement, which will entitle Manager to a new Third Party Sale Notice and the right to assume the obligation of the named purchaser within ten (10) days following the Manager’s receipt of the new Third Party Sale Notice as aforesaid.  If a Sale Agreement is not entered into within the Offer Period, or Owner fails to close upon the sale of the Property pursuant to the Sale Agreement, then Owner may not sell the Property, offer the Property for sale or solicit offers for the sale of the Property without giving Manager a new Sale Notice, in which event the provisions of this Section 20 shall be applicable with respect to such new Sale Notice. 
(c)    At Manager’s request, Owner shall join in the execution and acknowledgement of a memorandum setting forth the provisions of this Section 20, which may be recorded.
21.    Miscellaneous.  This Agreement embodies the entire agreement and understanding between the parties and supersedes all prior agreements and understandings relating to the management of the Property.  This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing this Agreement to be drafted.  This Agreement may not be modified, amended or terminated, nor may any term or provision hereof be waived or discharged, except by instrument signed by Owner and Manager.  All of the terms of this Agreement, whether so expressed or not, shall 

22

be binding upon the respective successors and permitted assigns of the parties hereto and shall inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.  If any of the provisions of this Agreement shall to any extent be invalid or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and every provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.  The headings of this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Any references in this Agreement to any one gender, masculine, feminine or neuter, includes the other two, and the singular includes the plural, and vice versa, unless the context otherwise requires.

[Signatures on following page]

    

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IN WITNESS WHEREOF, the parties have executed this Property Management Agreement as of the day and year first above written.

MANAGER:

SUN HOME SERVICES, INC.,
a Michigan corporation
                        
By: _______________________________
Name:  ____________________________
Title:  _____________________________

OWNER:

RUDGATE VILLAGE SPE, LLC, 
a Delaware limited liability company

By:                    
Name:                    
Title:                    

AND 

By: ___________________________
Name: _________________________
Title: __________________________

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JOINDER
THE UNDERSIGNED hereby joins in this Agreement solely for purposes of agreeing to fund the obligations to the extent set forth under Section 3(i) hereof.

SUN COMMUNITIES OPERATING                            
LIMITED PARTNERSHIP, a Michigan
limited partnership

By:   Sun Communities, Inc., its General Partner

By:                    
Name:                    
Title:                    

    

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PROPERTY MANAGEMENT AGREEMENT
(Rudgate Clinton)

This PROPERTY MANAGEMENT AGREEMENT (this “Agreement”) is made and entered into this ___ day of ______________, 2012 (the “Effective Date”), among RUDGATE CLINTON SPE, LLC, a Delaware limited liability company (“RC SPE”), RUDGATE CLINTON ESTATES SPE, LLC, a Delaware limited liability company (“RC Estates SPE,” and together with RC SPE, the “Owner”), and SUN HOME SERVICES, INC., a Michigan corporation (“Manager”).

RECITALS

A.    Owner is the owner of that certain manufactured housing community known as Rudgate Clinton, which is further described on the attached Exhibit A, including, without limitation, land, easements, buildings, structures, improvements, manufactured home sites, fixtures attached to or used at the property, parking, facilities, walkways, ramps, machinery, equipment, goods, licenses, permits and franchises issued with respect to the use, occupancy, maintenance or operation or the property, and all other items and rights now or hereafter belonging to Owner and used in any manner and in relation thereto (the “Property”).

B.    Owner and Rudgate Manor SPE, LLC, a Delaware limited liability company (“RM SPE” and together with Owner, the “Senior Loan Borrowers”), have obtained from Ladder Capital Finance LLC, (the “Senior Lender”) a loan (the “Senior Loan”) secured by first mortgages on the Property and that certain manufactured housing community owned by RM SPE (the “Rudgate Manor Owner”) known as Rudgate Manor (“Rudgate Manor”), pursuant to that certain Loan Agreement dated _________, 2012 (the “Senior Loan Agreement”) among the Senior Loan Borrowers and the Senior Lender.

C.    Rudgate Village Holdings, LLC, a Michigan limited liability company (“RV Holdings”), is the sole member of RM SPE, Rudgate Clinton Holdings, LLC, a Michigan limited liability company (“RC Holdings”), is the sole member of RC SPE, and Rudgate Clinton Estates Holdings, LLC, a Michigan limited liability company (“RC Estate Holdings,” and together with RV Holdings and RC Holdings, the “Mezzanine Borrowers”), is the sole member of RC Estates SPE.

D.    The Mezzanine Borrowers have obtained from Sun Rudgate Lender LLC (the “Mezzanine Lender”) a mezzanine loan (the “Mezzanine Loan”) secured by, among other things,  their respective membership interests in the Owner and Rudgate Manor Owner, pursuant to that certain Mezzanine Loan Agreement, dated _________, 2012 (the “Mezzanine Loan Agreement”) among the Mezzanine Borrowers and the Mezzanine Lender.

E.    Owner desires to (i) engage and appoint Manager to perform the property management and leasing services more particularly described in this Agreement, and (ii) engage and appoint Manager to act as asset manager of the Property and to perform the asset 

management services more particularly described in this Agreement, and Manager desires to accept such engagement and appointment, all upon and subject to the terms and conditions hereinafter set forth.

F.    Manager and the Rudgate Manor Owner have entered into a Property Management Agreement dated the date hereof (the “Rudgate Manor Management Agreement”) under which the Rudgate Manor Owner has engaged Manager to perform property management, leasing and asset management services with respect to Rudgate Manor on terms substantially the same as those set forth in this Agreement.  

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth below, Owner and Manager agree as follows:
1.    Appointment of Manager. Owner hereby appoints Manager as the exclusive managing and leasing agent for the Property, and as Owner’s agent to perform asset management services and otherwise coordinate ownership activities for the Property, and Manager hereby accepts such appointment, each upon and subject to the terms and conditions set forth in this Agreement.  Manager shall be deemed to be an independent contractor and no partnership or joint venture relationship between Owner and Manager is created or is intended by this Agreement.
2.    Effective Date; Term.  Except as otherwise set forth in Section 8 herein, this Agreement shall commence on the date hereof and continue until the tenth anniversary of the date of this Agreement.
3.    Manager's Duties and Powers as Property Manager.
(a)    General Scope.  Manager shall manage, coordinate and supervise the proper conduct of the business and affairs pertaining to the operation, maintenance and management of the Property (all such activities being hereinafter collectively referred to as “Management Activities”), consistent with the same standards and practices Manager employs in connection with managing properties for Sun Communities Operating Limited Partnership and its affiliates (the “Applicable Standards”). Except as otherwise specifically provided in this Agreement, Manager shall have full control and decision-making authority over the operation, maintenance and management of the Property. Manager shall have such responsibilities, and shall perform and take, or cause to be performed or taken, all such services and actions customarily performed or taken by managing agents of property of similar nature, location and character to that of the Property as shall be necessary or advisable for the proper conduct of the Management Activities, including, without limitation, the duties and powers set forth in Sections 3(b) through 3(l) below.  Unless otherwise specifically provided in this Agreement, all services and actions which Manager is required or permitted to perform or take, or cause to be performed or taken, under this Agreement in connection with the Management Activities shall be performed or taken, as the case may be, for and on behalf of Owner and at Owner’s sole expense including, without limitation, Manager’s travel expenses, 

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Manager’s on-site personnel, including the property manager, and Manager's contracting with third parties for certain services as provided for herein. All Property Revenue (as defined in Section 3(c) below) shall be made available to Manager to be used in conducting the Management Activities. If, in the judgment of Manager, such Property Revenue is not sufficient to permit the Manager to conduct the Management Activities, Owner may, but shall not be required to, contribute cash in an amount equal to any such shortfall to permit the Manager to conduct the Management Activities.  In no event shall Owner be deemed to be in default under this Agreement in the event Owner does not contribute cash to fund any such shortfalls.  To the extent Owner does not elect to so contribute cash to make up any such shortfall, and Manager reasonably determines that such funds are needed in order for Manager to perform the Management Activities in accordance with Applicable Standards, the Owner shall be required to cause the Mezzanine Borrowers to request additional advances under the Mezzanine Loan to fund such shortfalls and to the extent such Mezzanine Borrowers receive any additional advances under the Mezzanine Loan to fund such shortfalls, Mezzanine Borrowers shall cause such funds to be contributed to Owner and then funded to Manager to make up any remaining shortfall.  
(b)    Budget; Reconciliation.  Manager shall cause to be prepared on an annual operating budget (the "Operating Budget") for the operation, maintenance, repair and leasing of the Property in accordance with the Applicable Standards for the immediately succeeding calendar year. Manager shall deliver a copy of the Operating Budget to Owner at Owner’s written request.  
(c)         Rent and Collections.  Manager shall endeavor in accordance with the  Applicable Standards to collect from all persons and/or entities occupying or using space in the Property (individually a “Tenant” and collectively “Tenants”) all fixed, based and minimum rent and all other amounts payable by such Tenants, including, without limitation, taxes and electricity or other utility services, if applicable (all such fixed, base or minimum rents and other amounts, if any, being sometimes hereinafter collectively referred to as “Rent”) under their respective leases or license, occupancy or similar agreements (individually a “Lease” and collectively “Leases”), and in connection therewith, shall prepare and deliver to Tenants all “late payment,” default and other appropriate notices, requests, bills, demands and statements, including notices of taxes, electricity and other utility services increases.  Manager may retain counsel, collection agencies and such other persons and firms as Manager shall deem appropriate or advisable, to enforce by legal action the rights and remedies of Owner against any Tenant in default in the performance of its obligations under the Lease and shall be entitled to utilize “Property Revenue” (as defined below) in order to pay all costs and expenses incurred in connection therewith.  In the event a portion of any Rent received by Manager represents such Tenant’s installment payment towards its manufactured home, Manager shall cause such installment payment to be paid to holder to the installment contract for such manufactured home.  On the Effective Date, Manager and Owner shall make the following adjustments to Property Revenue:

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(i)    Real estate taxes and personal property taxes which are a lien upon or levied against any portion of the Project prior to the Effective Date and which become delinquent prior to the Effective Date (other than current taxes), and all installments of special assessments levied on any portion of the Project prior to the Effective Date and which become delinquent prior to the Effective Date, shall be paid by Owner prior to the Effective Date.  Current real estate taxes, current installments of special assessments and current personal property taxes levied against any portion of any Project paid by Owner and applicable to the period after the Effective Date shall be prorated and adjusted between the parties on the due date basis of the taxing authority (it being agreed such taxes are payable in advance) and the portion allocable to the period on and after the Effective Date shall be paid by Manager to Owner on the Effective Date.
(ii)      The amount of all unpaid water and other utility bills for the Project which are not directly billed to the tenants of the Project, and all other operating and other expenses incurred with respect to the Project relating to the period prior to the Effective Date, shall be paid by Owner on or prior to the Effective Date or, if not paid, as soon as possible after Closing following receipt of an invoice therefor and if prepaid by Owner, such amounts shall be reimbursed by Manager to Owner on the Effective Date.  In the event water is submetered and billed to the tenants, then the company completing such submetering shall continue to bill such tenants for the water services utilized through the date of Closing and shall remit all amounts received to the Owner as and when received for periods through the Effective Date.  In the event that Manager receives any payments from residents of the Projects which are payments for water bills for periods through the Effective Date, Manager shall promptly remit such amounts to Owner as and when received.
(iii)      Charges under service, utility, supply, maintenance and employment contracts and agreements and all other continuing contractual obligations affecting any Owner or the ownership, operation or development of any Project, and all amendments thereto and which will not be terminated as of the Effective Date (the “Project Contracts”) attributable to the period prior to the Effective Date shall be paid by Owner prior to the Effective Date, or, if not paid, the amount due shall be paid by Owner to Manager on the Effective Date and if prepaid by Owner, such amounts shall be reimbursed by Manager to Owner on the Effective Date.
(iv)      All prepaid rental and other revenues collected up to the Effective Date which are allocable to the period from and after the Effective Date shall be Property Revenue and as such paid by Owner to Manager for application in accordance with Section 3(d) below.  Current resident rents shall be prorated and adjusted as of the date of Closing based upon the actual number of days in the month of Closing with Manager being paid credited for rents on the date of Closing.  All rental and other revenues actually collected by Manager attributable to rent due for such month of Closing and received by Manager within sixty (60) days following the Effective Date, shall be prorated between Owner and Manager based on the number of days in such month with Owner receiving rents from the first (1st) day of such month through the Effective Date and with Manager receiving such rents from 

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the Effective Date through the last day of the month.  Except as provided in the preceding paragraph, to the extent Manager collects, within one hundred eighty (180) after the Closing, any rental or revenues allocable to the period prior to the Effective Date, Manager shall pay the same to Owner and Manager shall use its good faith efforts to collect all such rent or revenues allocable to the period prior to the Effective Date, but Manager shall not be required to commence litigation or institute evictions with respect to such tenants; provided, however, and except as otherwise set forth above, Manager is assuming no obligation whatsoever for the collection of such rentals or revenues and all rentals and revenues collected subsequent to the Effective Date shall always, in the first instance, be applied first to the most current rentals and revenues, if any, then due under the tenant leases or otherwise.  Further, Owner shall not have the right to seek collection, through litigation or otherwise, of unpaid rent from any person while they remain a tenant of the Property, nor shall Owner institute any eviction or lockout proceedings against any residents to recover delinquent rents.  Owner shall retain one hundred (100%) percent of the right to receive any past due rents with respect to residents who are no longer residents of the Property. 
(v)      An amount equal to all expenses of the Property which were paid prior to the Effective Date and for which Manager will benefit after the Effective Date including, without limitation, annual license and permit fees, shall be paid by Manager to Owner on the Effective Date, and an amount equal to all expenses of the Property which were incurred prior to the Effective Date and are due or paid after the Effective Date shall be paid by Manager from Project Revenues. 
(vi)      All compensation, fringe benefits and other amounts due the employees of any Owner or any manager of the Property for the period prior to the Effective Date, whether as hourly pay, salaries, overtime, bonus, vacation or sick pay, severance pay, pensions or otherwise, and all amounts due for the payment of employment taxes with respect thereto, shall be paid by Owner on or prior to the Effective Date, or as soon as reasonably possible following the Effective Date.
(vii)      Manager acknowledges and agrees that Owner may have entered into certain cable agreements prior to the date hereof and in the event Owner received any door fees or lump sum payments with respect to such cable agreements, such amounts shall be Owner’ sole and exclusive property and shall not be prorated and in no event shall Manager receive a credit with respect to any such door fees or lump sum payments.
(d)     Property Revenue after the Effective Date.  From and after the Effective Date, each month, and except as otherwise set forth above, Manager shall apply the Rent so collected and any and all other revenue pertaining to the Property from whatever source (together with Rent, “Property Revenue”) as follows: 
(i)    First, to the payment of all operating and other expenses incurred in connection with the Property in order to manage the Property in accordance with the Applicable Standards, which are not otherwise payable by third parties, as reasonably 

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determined by the Manager, including, but not limited to, all expenses incurred by Manager in performing its obligations under this Agreement, all capital expenditures, the cost of maintaining the Property, any and all repair, maintenance and other obligations under any Lease, the cost of all operation, maintenance, improvement, protection, preservation, display, marketing, leasing or other activities on or with respect to the Property, including without limitation, real estate taxes, insurance premiums and assessments (collectively, the “Operating Expenses”).  Operating Expenses shall also include, without limitation, all costs and expenses incurred by Owner and/or Manager related to corporate annual registration payments, resident agent fees, bank fees, independent director fees, loan servicing and related costs, expenses and fees, accounting fees and other costs and expenses incurred as a result of reporting requirements imposed under any mortgage loans (in excess of those incurred by Owner in the absences of such requirements) and all other similar excess costs and expenses incurred in order to comply with the requirements of any mortgage loans  In the event that Property Revenue collected for any month is insufficient to pay that month’s Operating Expenses in full, Manager may provide such funds as necessary to cover the Operating Expenses shortfall.  Any funds advanced by Manager for Operating Expense shortfalls will accrue interest until repaid at a rate equal twenty-four (24%) percent per annum and shall be reimbursable to Manager (including interest thereon) from future collected Property Revenue.
(ii)    Second, to the payment of the debt service obligations of the Senior Loan Borrowers to the Senior Lender, under the Senior Loan Agreement. It is acknowledged and agreed that a portion of the revenue from Rudgate Manor will also be used to repay such debt service obligations pursuant to Section 3(c)(ii) of the Rudgate Manor Management Agreement.  It is further acknowledged and agreed that the obligation to apply Property Revenue to such debt obligations under this Section 3(c)(ii) shall be satisfied only when repayments under the Senior Loan Agreement pursuant to this Section 3(c)(ii) and Section 3(c)(ii) of the Rudgate Manor Management Agreement are in the aggregate sufficient to satisfy all such current debt service obligations, regardless of the relative portions of such repayments made under this Agreement and the Rudgate Manor Management Agreement.
(iii)    Third, to the payment of the Property Management Fees to Manager pursuant to the provisions of Section 7 of this Agreement, including any accrued and unpaid Property Management Fees.  
(iv)    Fourth, to the payment of that portion of the accrued and unpaid interest owing to the Mezzanine Lender under the Mezzanine Loan Agreement determined by applying a 2.0% annual interest rate on the principal outstanding under the Mezzanine Loan Agreement and the related promissory notes. It is acknowledged and agreed that a portion of the revenue from Rudgate Manor will also be used to repay the same amount of interest under the Mezzanine Loan Agreement pursuant to Section 3(c)(iv) of the Rudgate Manor Management Agreement.  It is further acknowledged and agreed that the obligation to apply Property Revenue to such portion of the Mezzanine Loan interest under this Section 3(c)(iv) shall be satisfied only when payments of such interest pursuant to this Section 3(c)(iv) and Section 3(c)(iv) of the Rudgate Manor Management Agreement are in the aggregate sufficient 

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to satisfy the interest payment requirement set forth above, regardless of the relative portions of such repayments made under this Agreement and the Rudgate Manor Management Agreement.
(v)    Fifth, to the payment to the Owner of up to $135,000 per year, payable within thirty (30) days of the end of each calendar year of the Property, to permit the Owner to make distributions to its direct and indirect equity owners, including any accrued but unpaid amounts payable pursuant to this Section 3(c)(v) for prior years, less any unpaid amounts owed by Owner under the Guaranty executed by Owner in connection with that certain Asset Purchase Agreement (the “APA”) dated as of the date hereof between Owner, certain affiliates of Owner, and Sun Communities Operating Limited Partnership (“SCOLP”) which unpaid amounts which are not disputed by Owner shall be paid to SCOLP.  If the unpaid amounts under the Guaranty are disputed by Owner, Manager shall retain the disputed amount until instructed otherwise by a court of competent jurisdiction or in writing jointly by Owner and SCOLP or, if appropriate, interplead the disputed amount in to a court of competent jurisdiction, which the parties agree is the Oakland County, Michigan Circuit Court.  It is acknowledged and agreed that a portion of the revenue from Rudgate Manor will also be used to pay up to $135,000 per year to the Rudgate Manor Owner pursuant to Section 3(c)(v) of the Rudgate Manor Management Agreement.  It is further acknowledged and agreed that, notwithstanding anything to the contrary in this Agreement or the Rudgate Manor Management Agreement, the aggregate payments to the Owner under this Section 3(c)(v) and to the Rudgate Manor Owner pursuant to Section 3(c)(v) of the Rudgate Manor Management Agreement shall not exceed $135,000, regardless of the relative amounts of the payments to Owner and the Rudgate Manor Owner hereunder and thereunder.
(vi)    Sixth, to the payment of the Asset Management Fees and reimbursable expenses to Manager pursuant to the provisions of Section 7 of this Agreement, including any accrued and unpaid Asset Management Fees and reimbursable expenses.  
(vii)    Seventh, to the establishment of such reserves as Manager shall deem necessary for the benefit of the Property in its sole and absolute discretion.
(viii)    Eighth, to the payment of all interest and principal payable to the Mezzanine Lender under the Mezzanine Loan Agreement and the related promissory notes that have not been previously paid under Section 3(c)(iv) of this Agreement, which payments shall be applied first to accrued and unpaid interest and then to unpaid principal. It is acknowledged and agreed that a portion of the revenue from Rudgate Manor will also be used to repay principal and interest under the Mezzanine Loan Agreement pursuant to Section 3(c)(viii) of the Rudgate Manor Management Agreement.  It is further acknowledged and agreed that the obligation to apply Property Revenue to such principal and interest repayment obligations under this Section 3(c)(viii) shall be satisfied only when repayments of Mezzanine Loan principal and interest pursuant to this Section 3(c)(viii) and Section 3(c)(viii) of the Rudgate Manor Management Agreement are in the aggregate sufficient to satisfy repay the 

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Mezzanine Loan in full, regardless of the relative portions of such repayments made under this Agreement and the Rudgate Manor Management Agreement.
(e)    Employees.
(i)    To the extent Manager deems necessary for the conduct of the Management Activities, Manager shall hire personnel who, in each instance, shall be employees of Manager.  In no event shall Owner be obligated to hire any employees with respect to the Property.  The wages and benefits of any personnel hired by Manager shall be paid as provided in Section 3(c) above.  Manager shall direct and supervise all personnel hired by Manager in the performance of their duties and shall discharge all personnel whose employment Manager shall determine to be unnecessary or undesirable.  Manager shall use all reasonable efforts to minimize duplication of services among its employees and to avoid overtime whenever reasonably possible.  Manager shall select the personnel it employs to perform the Management Activities in accordance with the Applicable Standards.
(ii)    Manager shall (A) pay all wages and other benefits properly payable to the employees hired by Manager under Section 3(d)(i) above, (B) maintain adequate payroll records, (C) remit to the proper authorities all required income and social security withholding taxes, unemployment insurance payments, workmen's compensation payments and such other amounts with respect to the wages and other benefits payable to such employees as may be required under applicable laws, together in each case with all required reports or other filings, and (D) obtain, maintain and administer all medical, disability and other insurance benefits and other fringe benefits as may from time to time be required under any union or other agreements or arrangements pertaining to Manager's employment, as the case may be, of such personnel.
(f)    Professionals and Contractors.  To the extent Manager deems necessary in connection with the Management Activities, Manager shall (i) identify and enter into contracts with architects, engineers, accountants, attorneys, tradesmen and other independent contractors qualified to perform services at the Property, and (ii) supervise the administration, and monitor the performance, of all work to be performed and services to be rendered under all such contracts.  Manager shall use due care in the selection of all such contracts.  Manager shall select all such professionals and other independent contractors in accordance with the Applicable Standards.  All contracts entered into in connection with the performance of the Management Activities shall be entered into in the name of Manager.
(g)    Maintenance.
(i)    Manager shall cause the Property, including common areas thereof, sidewalks, signs, parking lots and landscaping, to be maintained in good and safe condition.  In connection with such maintenance obligations, Manager shall be permitted to use the equipment and vehicles owned by Owner and located on the Property and Manager shall obtain insurance for such equipment and fund the costs thereof from Property Revenue.

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(ii)    To the extent of the capacity of all equipment and systems located in or servicing the Property, Manager shall cause all such equipment and systems to be operated effectively and maintained in good repair.  Further, Manager shall cause to be provided or made available to Tenants those services which Owner is required to provide or to make available under Leases.
(iii)    Manager shall enter into such service and maintenance contracts as Manager shall reasonably deem necessary or appropriate for the operation and maintenance of the Property, including, but not limited to, the equipment and systems located in or servicing the Property, contracts for utilities, telephone service, landscape maintenance, rubbish removal, fuel, security, food vending and vermin extermination.  Manager shall purchase in reasonable quantities and at reasonable prices all supplies, materials, tools and equipment which Manager shall deem necessary or appropriate for the proper operation and maintenance of the Property.  Manager shall be required to utilize Property Revenue in order to pay any and all amounts due under such service and maintenance contracts, to pay for all utilities and to pay for all such supplies, materials, tools and equipment.
(h)    Supervision of Tenants.
(i)    Manager shall plan and coordinate the moving in and moving out of Tenants in the Property in order to insure a minimum of disturbance to the operation of the Property and to other Tenants then occupying or preparing to occupy space in the Property.
(ii)    Manager shall receive and use all reasonable efforts to attend to and resolve any complaints, disputes or disagreements by or among Tenants.
(iii)    Manager shall take steps in accordance with the Applicable Standards to cause the Tenants’ compliance with the terms and provisions of their respective Leases.
(iv)    Manager may terminate tenancies, evict Tenants and recover possession of premises occupied by them, and sue in Owner's name to recover Rents and other sums due, and shall be required to utilize Property Revenue in order to pay all actual attorneys’ fees, court costs and legal expenses incurred in connection with such actions.
(i)    Insurance.  Manager shall procure and maintain in full force and effect at all times insurance coverage to adequately protect Owner and the Property, which shall be in compliance with the terms of the Senior Loan Agreement and the Mezzanine Loan Agreement, and in compliance with Applicable Standards and all insurance costs shall be funded by Manager by applying Property Revenue to all such insurance costs.  In all events, the insurance maintained by Manager with respect to the Property shall be consistent with the insurance obtained by Manager with respect to the other similar manufactured home communities managed by Manager or its affiliates in southeast Michigan.  In the event that the insurance maintained by Manager does not provide coverages for the benefit of Owner 

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consistent with the insurance previously maintained by Owner, as evidenced by the certificate which is attached hereto as Exhibit B, then, in such event, Manager shall indemnify, defend and hold Owner harmless with respect to all liabilities incurred by Owner which would have been covered by such insurance in the event Manager had maintained such insurance set forth on Exhibit B and Sun Communities Operating Limited Partnership shall guarantee such indemnity for the benefit of Owner by joining in this Agreement as provided below.  Pursuant to Section 3(c), Manager shall pay all premiums for such insurance coverage as part of Operating Expenses. Additionally, Manager agrees and covenants to carry at all times Workers' Compensation and Employers' Liability coverage and shall be entitled to utilize Property Revenue to pay for such insurance coverages.  Manager shall be required to cause the Senior Lender to be identified as the loss payee with respect to any casualty insurance and shall be required to identify Owner as a named insured and any other parties reasonably designated by Owner as additional insureds on all insurance policies and shall provide Owner with copies of insurance certificates promptly upon request by Owner and shall provide Owner with such additional information regarding such insurance policies as Owner or Owner’s insurance agent may reasonably request including, without limitation, copies of all such insurance policies. All insurance obtained by Manager shall state that the insurance shall be considered primary and non-contributory with any similar coverage maintained by additional insureds.  In the event that Manager self-insures any of the insurance coverage otherwise required to be obtained hereunder, then, in such event, Manager shall be directly liable to Owner for all amounts which would have otherwise receivable by Owner under such insurance policies, Manager shall be permitted to utilize Property Revenues to fund this liability to Owner, and Sun Communities Operating Limited Partnership joins in this Agreement solely for the purpose of guarantying payment to Owner of all such amounts and payment of all insurance deductibles related to claims under such insurance policies and guarantying payment under the indemnity by Manager to Owner set forth above.
(j)    Advertising - Public Relations.  Manager may, but shall not be required to, hire such advertising services, place such advertisements and generally supervise and attend to all promotional matters pertaining to the operation of the Property as Manager shall deem advisable.
(k)    Litigation.  To the extent Manager in its sole discretion deems it prudent, Manager shall institute legal or other actions, in the name of the Owner, to enforce the collection of rent or other income from the Property, and to dispossess tenants or other persons from the Property, and to enforce the rules and regulations thereof; provided, however, Manager shall be obligated to utilize Property Revenue to pay all actual attorneys’ fees, court costs and legal expenses incurred in connection with such actions including payment of any sums which may become due as a result of counter and/or cross-claims in such actions.  In the event that there are insufficient funds to pay any and all such actual attorneys’ fees, court costs and legal expenses or other sums due in connection with such action(s), Manager shall be required to fund such shortfalls.  In connection with such legal action, Manager may engage legal counsel reasonably acceptable to Owner.  All such suits and proceedings shall be brought in the name of Owner but shall be handled in such manner as Manager directs; provided, 

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however, in the event that a suit or proceeding could result in liability to Owner in excess of $10,000, then Owner shall be entitled to retain separate counsel to defend Owner in connection with such suit or proceeding.  Unless counsel engaged by Manager is prohibited from representing Owner due to a conflict of interest, Owner’s separate counsel shall be engaged by Owner at its expense.  Owner shall be entitled to join in any settlements of any such suits and proceedings if the settlement could reasonably be expected to create a material liability for the Owner which is not required to be satisfied by the Manager, and any such settlements will require Owner’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed.  All legal expenses incurred in bringing such suits or proceedings or defending against all such suits and proceedings in conformance with this Section 3(j) (other than for Owner’s separate counsel if no conflict exists) shall be reimbursable Operating Expenses to Manager.
(l)    Permits and Licenses.  Manager shall apply for, obtain and maintain, in the name of Owner, all licenses and permits required by any federal, state, county or municipal authority in connection with the management or operation of the Property.  
(m)    Compliance.  In accordance with the Applicable Standards, Manager shall take or cause to be taken such actions in and about or affecting the Property as Manager shall deem advisable to comply with all legal requirements applicable to the Property.  Manager agrees not to permit the use of the Property for any purpose in violation of the Applicable Standards which may void any policy of insurance, which may render any loss thereunder uncollectible or which would be in violation of any governmental laws, regulations or restrictions.

Manager shall, without Owner’s prior written approval, take or cause to be taken any such actions without limitation as to cost if failure to do so would or might, in Manager's reasonable judgment, expose Owner or Manager to criminal liability.  Manager and Owner shall each promptly notify the other of any violation, order, rule or determination affecting the Property of any governmental authority or agency.

In accordance with the Applicable Standards, Manager shall take or cause to be taken such actions in and about or affecting the Property as Manager shall deem advisable to comply with all terms and conditions contained in any ground lease, space lease, mortgage, deed of trust or other security instrument affecting the Property.

Owner may, without Manager’s prior written approval, take or cause to be taken any actions which reasonably must be taken by Owner to prevent Owner from incurring exposure for criminal liability or civil liability and all costs and expenses incurred by Owner in connection therewith shall be paid by Owner, unless Manager has failed to act in accordance with the Applicable Standards with respect to such matter, in which event the cost thereof shall be a reimbursable Operating Expense, to be repaid by Manager to Owner from the Property Revenue within thirty (30) days after written request therefor.

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(n)    In the event Owner incurs any costs or expenses associated with the operation, maintenance, repair, replacement and/or management of the Property, Owner shall be reimbursed from Property Revenue for all such costs and expenses and Manager shall cause such reimbursement to occur within thirty (30) days after written request therefor by Owner.
(o)    All service, utility, supply, maintenance and employment contracts and agreements and all other continuing contractual obligations affecting Owner or the ownership, operation or development of the Project, and all amendments thereto and which will not be terminated as of the Effective Date (collectively, the "Project Contracts") are listed on the attached Exhibit C.  True, correct and complete copies of all Project Contracts have been delivered to Manager.  Those Project Contracts identified on Exhibit C as being assumed by Manager after the Effective Date and shall be the “Assumed Project Contracts”.  To Owner’s knowledge, each Assumed Project Contract is in full force and effect, Owner has complied in all material respects with the provisions of each Assumed Project Contract to which it is a party and is not in material default under any such Assumed Project Contract and, to the actual knowledge of Owner, no other party to any Assumed Project Contract has failed to comply in any material respect with, or is in default under, the provisions of any Assumed Project Contract.  Prior to or at the Effective Date, Owner shall terminate (x) any contract of Owner not identified as Project Contracts, and (y) the contracts listed on Exhibit C (the “Non-Assumed Project Contracts”).  Prior to and after the Closing, Owner shall be responsible for all liabilities and obligations of Owner under the Non-Assumed Project Contracts, and shall indemnify and hold harmless Manager from all such liabilities and obligations.
4.    Manager's Duties and Powers as Leasing Manager.
(a)    Duties.  Manager shall use all reasonable efforts, consistent with normal and customary practices in the manufactured home leasing business, to negotiate and consummate Leases for all space in the Property available for rent from time to time, at rentals and upon such other terms and conditions as shall be consistent with the relevant market for the Property, as reasonably determined by Manager.  Owner acknowledges that Manager and its affiliates own manage and operate other manufactured home communities in the vicinity of the Property.  In connection with such leasing activities, Manager shall be required to comply with the Applicable Standards and to comply in all material respects with all applicable laws, rules and regulations of all applicable governmental authorities and agencies which could reasonable be expected to expected to create a material liability for the Owner which is not required to be satisfied by the Manager hereunder.
(b)    Powers.  Subject to the terms and conditions of this Agreement, Manager shall have the power to:
(i)    negotiate on behalf of Owner, on such terms as may be designated by Owner to Manager from time to time, with respect to the rental of space at the 

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Property, the extension or renewal of existing Leases and the modification or termination of Leases and other agreements pertaining to all of the above;
(ii)    prepare or cause to be prepared, using Manager’s form of Lease, all new Leases and modifications or terminations of existing Leases; and
(iii)    authorize or provide for advertisements and other promotional activities, including, leasing plans and signs and circular matter, contemplated under the marketing and promotional program developed by Owner.
5.    Manager's Duties and Powers as Asset Manager. In connection with its appointment as asset managers hereunder, Manager shall perform the following services:
(a)    oversee the preservation of the assets and properties associated with the Property in an efficient and satisfactory manner, and all property management and leasing functions in connection with the Property;
(b)    review the financial performance of the Property;
(c)    handle the financial reporting and cash management requirements of Owner relative to the Property including, without limitation, all reporting and cash management requirements associated with the Senior Loan and/or Mezzanine Loan;
(d)    maintain proper books of accounts and other records with respect to Owner’s interest in the Property;
(e)     compile information relating to the Property as necessary for the preparation of tax returns by the Owner and provide such information to the tax return preparers and advisers designated by Owner not later than April 1st of each year;
(f)    handle all loan compliance procedures and reporting with the Senior Lender, the Mezzanine Lender and their successors and assigns;
(g)    investigate, select and manage relationships with accountants, legal counsel, property managers, brokers, investors, builders and developers, banks and other lenders in connection with the Senior Loan and the Mezzanine Loan, and others as necessary in connection with the business of Owner; and 
(h)    manage, on behalf of Owner, the collection and disbursement of funds derived from the Property, payment of the debts and fulfillment of the obligations of Owner as to the Property, and subject to the limitations set forth in this Agreement, handle, prosecute and settle any claims of Owner as to the Property.

In performing its asset management services under this Agreement, the Manager may from time to time call upon and utilize various facilities, personnel and support services of other persons including one or more affiliates of the Manager.  The Manager shall have the authority to execute agreements, contracts and other documents as asset manager pursuant to this Agreement to the extent such documentation is necessary or appropriate to carry out Manager’s asset management responsibilities hereunder, and no separate approval or consent of Owner shall be required as to such documentation, as long as the execution of such documentation does not create any material adverse impact on Owner and does not violate the terms and conditions of the loan documents with respect to the Senior Loan and/or the Mezzanine Loan.

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6.    Books, Accounts, Records and Remittances.
(a)    Books and Records.  Manager shall establish and maintain such books of account, records and other documentation pertaining to the operation and maintenance of the Property as Manager determines are customarily maintained by managing agents of Property similar in location and size to that of the Property. Owner and any representative of Owner shall have the right to inspect such records and audit any and all statements during all business hours, and make photocopies of same at Owner’s expense and such right of inspection, audit and photocopying shall survive the expiration or termination of this Agreement.  
(b)    Operating Accounts.  Manager shall open and maintain an account or accounts separate from Manager's personal account (collectively, “Operating Accounts”), as Manager shall deem necessary, in a banking institution or institutions designated from time to time by Manager.  Manager shall deposit in the Operating Accounts all funds collected by Manager under this Agreement, and shall make withdrawal from the Operating Accounts, pursuant to Section 3(c) above.  
(c)    Security Deposits.  If and when required by law and/or Lease, Manager shall deposit in separate accounts all security deposits, if any, of Tenants.  Notwithstanding the foregoing, irrespective of whether Manager holds security deposits in a separate account, in all events, Manager shall be required to repay all security deposits collected by Manager to the Tenants (to the extent required by law and/or such Tenant’s Lease) and Manager shall indemnify, defend and hold Owner harmless with respect to liabilities incurred by Owner as a result of any unpaid security deposits.
(d)    Year-End Reports.  As soon as practicable after the end of each Operating Year but in no event later than one hundred twenty (120) days after the end of each Operating Year, Manager shall prepare detailed statements of all receipts, expenses and charges pertaining to the operation and maintenance of the Property during the preceding Operating Year. Manager shall deliver such other reports as are created by Manager in accordance with the Applicable Standards or which are required to be prepared under any mortgage loan documents (which it may legally distribute to Owner in accordance with applicable law). Owner shall be responsible for the preparation of its own federal, state and local tax returns, including income and informational tax returns.
7.    Compensation 
(a)    Property Management Fees.  Manager shall be paid Manager's property management fee (the “Property Management Fee”) from Property Revenue for its performance of the Management Activities an amount equal to three percent (3%) of the Property Revenue actually collected by or for the account of Owner in each calendar month, or proportion thereof, during the term of this Agreement. Subject to the terms of Section 3(c) above, the Property 

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Management Fee shall be payable monthly, on or about the 10th day of each calendar month, based upon Property Revenue actually collected during the immediately preceding month, and in accordance with Section 3(c) above. Manager shall be entitled to receive any accrued and unpaid Property Management Fees for prior months to the extent there is Property Revenue available to pay such accrued and unpaid Property Management Fee. If this Agreement is terminated and the effective date of such termination is a day other than the last day of any calendar month, the Property Management Fee earned by Manager for such month shall be prorated and adjusted based on the Property Revenue collected for such month.
(b)    Asset Management Fees and Reimbursement.  
(i)    Manager shall be paid Manager's asset management fees (the “Asset Management Fee”) from Property Revenue for its performance of its asset management services hereunder, an amount equal to four percent (4%) of the Property Revenue actually collected by or for the account of Owner in each calendar month, or proportion thereof, during the term of this Agreement. Subject to the terms of Section 3(c) above, the Asset Management Fee shall be payable monthly, on or about the 10th day of each calendar month, based upon Property Revenue actually collected during the immediately preceding month, and in accordance with Section 3(c) above.  Manager shall be entitled to receive any accrued and unpaid Asset Management Fees for prior months to the extent there is Property Revenue available to pay such accrued and unpaid Asset Management Fees. If this Agreement is terminated and the effective date of such termination is a day other than the last day of any calendar month, the Asset Management Fees earned by Manager for such month shall be prorated and adjusted based on the Property Revenue collected for such month.
(ii)    In addition, Manager shall be reimbursed from Property Revenue for all costs and expenses incurred by the Manager in connection with performing its asset management duties set forth in this Agreement; provided, however, the Manager shall not reimburse the Manager for any such asset management expenses related to the Manager's overhead and other internal expenses, personnel expenses of employees located at the Manager's home office and costs attributable to losses arising from criminal acts, gross negligence, willful misconduct or fraud by the Manager or the Manager's employees. 
8.    Termination.
(a)    Termination.  This Agreement may be terminated:
(i)    by the mutual written agreement of Owner and Manager; 
(ii)    by either Owner or Manager, if the entire Property is condemned or acquired by eminent domain; 
(iii)    by Manager, if Owner is in default of its obligations under this Agreement, which such default remains uncured for a period of thirty (30) days following receipt by Owner of written notice from Manager of such default, or for such longer period 

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as may be reasonably necessary to cure the default if Manager is diligently pursuing a cure of such default; 
(iv)    by Manager, at any time on not less than 60 days’ prior written notice to Owner;
(v)    by Manager, at any time, if the Rudgate Manor Management Agreement is validly terminated pursuant to Section 8(a)(iii) thereof. 
(vi)    by Owner, if Manager commits a fraud against Owner or a crime consisting of moral turpitude or in the event of embezzlement or any other felony which is likely to materially impact Owner.
(vii)    by Owner, to the extent Owner is required to terminate the Agreement as a result of the requirements of the Senior Lender or Mezzanine Lender;
(viii)    by Owner, if Manager is in material default of its obligations under this Agreement, which such default remains uncured for a period of thirty (30) days following receipt by Manager of written notice from Owner of such default provided however, if such default is not capable of cure within such thirty (30) day period, Manager shall have such additional time as may needed so long as Manager is diligently pursuing such default, such default will create a material adverse liability to Owner; provided, however, in the event Manager disputes that it has created such a default, this Agreement shall not be terminated by Owner until a court of competent jurisdiction has determined that Manager has in fact defaulted under the terms of this Agreement and Manager has failed to satisfied the judgment within sixty (60) days after it has become final and un-appealable. 
(b)    Upon the expiration of the initial term of this Agreement, in the event that Mezzanine Loan remains outstanding, and except as otherwise provided in Subsections 8(a)(vi), (vii) and (viii) hereof, Owner shall not replace the Manager with respect to the Property without first obtaining the prior written consent of the Mezzanine Lender and until such time as Owner has obtained such consent, Manager shall continue to operate the Property in accordance with the terms of this Agreement and shall be entitled to receive all amounts due hereunder including reimbursement of costs and expenses incurred during such extended management period.
(c)    Survival of Obligations.  Upon the expiration or termination of this Agreement, (i) Owner’s appointment of Manager hereunder shall cease and terminate and, except as otherwise specifically provided hereunder, Owner and Manager shall have no further obligation or liability to the other, (ii) Manager shall no longer have any authority to represent Owner or take or cause to be taken any actions on Owner’s behalf, and (iii) Owner shall remain liable to Manager to pay all Property Management Fees, Asset Management Fees and other fees, expenses and amounts payable to Manager hereunder which shall have accrued through the date of termination; provided, however, Owner’s obligation to fund such amounts shall be limited to available net cash flow received from Property Revenue not otherwise used to 

16

pay Operating Expenses.  The provisions of this Section shall survive any such expiration or termination.
(d)    Continuation of Services.  In the event this Agreement is terminated as a result of actions taken by the Senior Lender and/or Mezzanine Lender, then, at the request of Owner, Manager shall continue to manage the Property until such time as a successor property management company and/or receiver has been appointed in order to insure a continuation of management services without interruption and, subject to the Senior Lender and/or Mezzanine Lender making sums available to pay Manager all sums due hereunder, Manager shall continue to have the right to be paid all fees due hereunder and to be reimbursed for all amounts due hereunder during such extended management period.
9.    No Encumbrance; Cooperation.  Owner agrees that during the term of this Agreement, neither Owner nor Manager shall, absent mutual consent:  (a) permit any liens to be placed upon the Property, other than to the Senior Lender under the Senior Loan Agreement and the Mezzanine Lender under the Mezzanine Loan Agreement; or (b) grant any easements, rights of way, surface oil or mineral rights, or other encumbrances.  Owner and Manager will, if required, or deemed reasonably necessary or desirable by both Owner and Manager, join and assist in the preparation and/or filing by Manager, the execution of all permits, applications, and other written requests, reports and documents, including, but not limited to, rezoning and site plan approval applications for easements, tax splits, challenges to or reduction of real estate taxes and any other documents necessary for Owner’s use of the Property, and appear at zoning and site plan approval hearings.  Owner agrees not to hinder or object to any site plan approval applications submitted by or on behalf of Manager, which site plan approval application is intended to improve the value or operation of the Property in the reasonable opinion of Manager. 
10.    Indemnification.
(a)    Scope.
(i)    Subject to the limitations set forth in this Section 10(a)(i) below, Owner shall indemnify, defend and hold harmless Manager and its principals, officers, directors, shareholders, partners, employees and agents (individually and collectively, the “Owner’s Indemnitees”) from and against any and all liabilities, claims, suits, damages, judgments, costs and expenses of whatever nature, including reasonable counsel fees and disbursements (collectively, “Damages”) incurred by reason of or arising out of Owner’s breach of this Agreement, willful misconduct or bad faith.  Owner shall not be required to indemnify, hold harmless or reimburse Owner’s Indemnitees with respect to any matter arising out of Manager's, Manager's officers' and/or directors' or employees' gross negligence, willful misconduct or fraud. Notwithstanding the foregoing, Owner’s liability and obligation to indemnify Owner’s Indemnitees under this Section 10(a)(i) shall be paid by the  Property Revenue only and otherwise shall be non-recourse to Owner.

17

(ii)    Manager shall indemnify, defend and hold harmless Owner and its principals, officers, directors, shareholders, members, partners, employees and agents (individually and collectively, the “Manager's Indemnitees”) from and against any and all Damages incurred by reason of or arising out of (A) Manager's breach of this Agreement, gross negligence, willful misconduct or bad faith, and (B) any injury to or death of any person(s), damage to property, loss or use of any property or otherwise in connection with the performance by Manager of Manager’s obligations under this Agreement, (C) any claim, proceeding or suit involving an alleged violation by Manager, its agents or employers, of any law pertaining to (1) fair employment, fair credit reporting, rent control, payment of employment or other taxes which are the responsibility of Manager, or fair housing, including, but not limited to, any law prohibiting or making illegal discrimination on the basis of race, sex, creed, family status, age, color, religion, national origin or mental or physical handicap, or (2) any law pertaining to environmental matters, provided, however, Manager only shall be liable for the indemnity under this Section 10(a)(ii)(B)(2) if Manager, its agents or employees is finally adjudged to have violated any such law pertaining to environmental matters. Manager shall not be required to indemnify, hold harmless or reimburse Manager’s Indemnitees with respect to any matter arising out of Owner’s, Owner’s officers’, directors’, members’ or employees’ gross negligence, willful misconduct or fraud, and (D) Manager’s failure to fund any shortfall needed to pay for amounts due by Manager under this Agreement to the extent Manager is obligated to fund such amounts irrespective of whether Property Revenue is available.  Furthermore, Manager shall indemnify Owner against, all expenses incurred by Owner including, without limitation, actual attorneys’ fees, court costs and legal expenses and any liability, fines, penalties or the like, in connection with any claim, proceeding or suit involving an alleged violation of law by Manager, its agents or employees or with respect to the payment of any employment or other taxes required to be paid by Owner and which are the responsibility of Manager or to be funded from Property Revenue.  Manager shall be permitted to utilize Property Revenues to fund its liability and obligation to indemnify Manager’s Indemnities under this Section 10(a)(ii) hereof.
(b)    Conditions.  The obligation of Owner or Manager to indemnify, hold harmless and reimburse Manager’s Indemnitees or Owner’s Indemnitees, respectively, under Section 10(a) above are subject to the condition that Manager’s Indemnitees or Owner’s Indemnitees, as applicable, shall not take or fail to take any actions, including the prompt notification of the indemnitor or an admission of liability, which would bar Owner or Manager, as the case may be, from enforcing any applicable coverage under policies of insurance or would prejudice any defense of Owner or Manager, as the case may be, in any appropriate legal proceedings pertaining to any such matter or otherwise prevent Owner or Manager, as the case may be, from defending itself with respect to any such matter.
(c)    Survival.  The provisions of this Section 10 shall survive the expiration and any termination of this Agreement.
(d)    Release from Liability.  Each party hereby releases the other in respect of any claim (including a claim for negligence) that it might otherwise have against the other 

18

party for loss, damage or destruction with respect to its property by fire or other casualty occurring during the term of this Agreement if, and to the extent, covered under the fire insurance policy covering the Property or any other insurance policy carried by Owner or Manager.  Owner and Manager shall be named insureds under the fire and extended coverage, rent insurance and “all risk” insurance covering the Property, as well as any other insurance carried by Owner or Manager in respect of the Property.  The foregoing release shall not apply to the extent Manager self-insures for any of the insurance otherwise required to be carried by Manager under this Agreement.
11.    Timely Performance.  Owner and Manager shall each perform all of their respective obligations under this Agreement in a proper, prompt and timely manner.  Each shall furnish the other with such information and assistance as the other may from time to time reasonably request in order to perform its responsibilities hereunder.  Owner and Manager each shall take all such actions as the other may from time to time reasonably request and otherwise cooperate with the other so as to avoid or minimize any delay or impairment of either party’s performance of its obligations under this Agreement.
12.    Assignment.
(a)    Manager’s Permissible Assignments.  Manager may assign this Agreement or delegate its responsibilities hereunder to any entity controlled by Manager or any entity that controls or is under common control with Manager. Further, Manager may assign this Agreement or delegate its responsibilities hereunder as a part of any sale of all or substantially all of its assets.  Manager shall not otherwise assign this Agreement or delegate its responsibilities hereunder, except as contemplated by this Agreement, without the prior written consent of Owner, which consent shall not be unreasonably withheld or delayed.
(b)    Owner’s Permissible Assignment.  Owner shall not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of Manager which consent may be withheld by Manager for any reason.
(c)    Assumption and Release.  Each permitted assignee of this Agreement shall agree in writing to personally assume, perform and be bound by all of the terms, covenants, conditions and agreements contained in this Agreement, and thereupon the assignor of this Agreement shall be relieved of all obligations hereunder except those which shall have accrued prior to the effectiveness of such assignment.
13.    Notices.  Any and all notices or other communications given under this Agreement shall be deemed duly served (i) when personally served; (ii) three (3) days after deposited in the U.S. certified mail, return receipt requested; (iii) upon receipt if sent by telephone facsimile with fax acceptance sheet verifying receipt; or (iv) one (1) day after being sent via “overnight” courier service, addressed to the parties at the following address:

If to the Owner:

19

Rudgate Clinton SPE, LLC
Attn:  Mr. Graham A. Orley
201 W. Big Beaver Road, Suite 720
Troy, MI  48084-5297
Fax:  (248) 689-2221

And:

Rudgate Clinton Estates SPE, LLC
Attn:  Mr. Graham A. Orley
201 W. Big Beaver Road, Suite 720
Troy, MI  48084-5297
Fax:  (248) 689-2221

And to:

Mr. Gregg L. Orley
40900 Woodward Avenue, Suite 130
Bloomfield Hills, Michigan  48304
Fax:  (248) 593-0323

With a required copy to:

Maddin, Hauser, Wartell, Roth & Heller, P.C.
28400 Northwestern Hwy., 3rd Floor
Southfield, MI  48034-1839
Attn: Mr. Lowell D. Salesin
Fax: (248) 359-6189

If to the Manager:

Sun Home Services, Inc.
Attn: Jeff Davidson
27777 Franklin Road, Suite 200
Southfield, Michigan 48034
Fax: (248) 208-2645

With a required copy to:

Jaffe, Raitt, Heuer & Weiss, P.C.
27777 Franklin Road, Suite 2500
Southfield, Michigan 48034
Attn:     Mr. Mark P. Krysinski

20

Fax: (248) 351-3082 

Any party may change its address for the giving of notices under this Agreement by delivering to the other party ten (10) days' written notice of such change of address.
14.    Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Michigan, without regard to conflicts-of-laws principles that would require the application of any other law.
15.    Compliance with the Law.  Manager, in fulfilling its obligations under this Agreement, shall comply with all applicable law.
16.    Government Orders.  In the event that any governmental agency, authority or department should order the repair, alteration or removal of any structure or matter in the Property and if after written notice of the same to Owner by such body or by Manager, Owner fails to authorize Manager or others to make such repairs, alterations or removal, Manager shall be released from any responsibility in connection therewith, and Owner shall be answerable to such body for any and all penalties and fines whatsoever imposed because of such failure on Owner’s part.  Notwithstanding the foregoing, however, Manager is hereby expressly authorized and shall comply with any governmental agency, authority or department order promptly following receipt thereof and may do so without first obtaining Owner prior written consent and, subject to any limitation set forth herein, shall be entitled to be reimbursed for any and all costs and expenses incurred in connection therewith from Property Revenue.
17.    Subordination and Assignment Agreements.  Manager shall enter into such customary assignments and/or subordination agreements as may be requested by the Senior Lender and/or the Mezzanine Lender, all promptly after written request therefor.
18.    Attorneys’ Fees.  Should either party retain an attorney to enforce any of the provisions hereof or to protect its interest in any manner arising under this Agreement, or to recover damages for the breach of this Agreement, then the non-prevailing party in any action agrees to pay to the prevailing party all reasonably costs, damages and expenses, including reasonable attorneys’ fees expended or incurred in connection therewith.
19.    Waiver of Trial by Jury.  OWNER AND MANAGER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.  OWNER AND MANAGER REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
20.     Property Sale Restrictions.  Prior to any offer or sale of the Property, Owner shall comply with the following restrictions:

21

(a)    At least sixty (60) days prior to offering the Property for sale or soliciting offers for the sale of the Property, Owner shall give Manager written notice thereof, together with a summary of the material terms of the sale (a “Sale Notice”).  If Manager responds in writing to the Sale Notice within ten (10) days after the receipt thereof stating that it wishes to Purchase the Property upon the terms set forth in the Sale Notice, Owner and Manager shall have a period of thirty (30) days (“Negotiation Period”) within which to negotiate the terms of and execute a binding purchase and sale agreement for the Property.
(b)      If such an agreement is not executed within the Negotiation Period, or if Manager fails to timely respond to the Sale Notice, then for a period of six (6) months after the expiration of the Negotiation Period or Manager’s failure to timely respond to the Sale Notice, as applicable, (the “Offer Period”) Owner, may offer the Property for sale and shall be permitted to sell the Property to a purchaser for the Property based upon terms no more favorable to Owner than the terms and conditions set forth in the Sale Notice.  In the event Owner intends to offer the Property on terms other than the terms and conditions set forth in the Sale Notice, then Owner shall again be required to provide Manager with a revised Sales Notice incorporating a summary of the modified terms of the sale.  If Owner intends to enter into a binding agreement with a purchaser for the sale of the Property (“Sale Agreement”) within the Offer Period, Owner shall give Manager written notice thereof accompanied by a copy of the proposed Sale Agreement pertaining to the sale of the Property (a “Third Party Sale Notice”).  For a period of ten (10) days thereafter, Manager shall have the right to enter into the Sale Agreement by written notice to Owner, in which event the Sale Agreement shall constitute a binding agreement between Owner and Manager, and the named purchaser under the Sale Agreement shall have no further rights or obligations thereunder.  If Manager does not enter into such Sale Agreement within such ten (10) day period, then Owner may sell the Property to the named purchaser pursuant to the Sale Agreement; provided, however, that any material modification of the Sale Agreement shall be considered a new Sale Agreement, which will entitle Manager to a new Third Party Sale Notice and the right to assume the obligation of the named purchaser within ten (10) days following the Manager’s receipt of the new Third Party Sale Notice as aforesaid.  If a Sale Agreement is not entered into within the Offer Period, or Owner fails to close upon the sale of the Property pursuant to the Sale Agreement, then Owner may not sell the Property, offer the Property for sale or solicit offers for the sale of the Property without giving Manager a new Sale Notice, in which event the provisions of this Section 20 shall be applicable with respect to such new Sale Notice. 
(c)    At Manager’s request, Owner shall join in the execution and acknowledgement of a memorandum setting forth the provisions of this Section 20, which may be recorded.
21.    Miscellaneous.  This Agreement embodies the entire agreement and understanding between the parties and supersedes all prior agreements and understandings relating to the management of the Property.  This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing this Agreement to be drafted.  This Agreement may not be modified, amended or terminated, nor 

22

may any term or provision hereof be waived or discharged, except by instrument signed by Owner and Manager.  All of the terms of this Agreement, whether so expressed or not, shall be binding upon the respective successors and permitted assigns of the parties hereto and shall inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.  If any of the provisions of this Agreement shall to any extent be invalid or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and every provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.  The headings of this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Any references in this Agreement to any one gender, masculine, feminine or neuter, includes the other two, and the singular includes the plural, and vice versa, unless the context otherwise requires.

[Signatures on following page]

    

23

IN WITNESS WHEREOF, the parties have executed this Property Management Agreement as of the day and year first above written.

MANAGER:

SUN HOME SERVICES, INC.,
a Michigan corporation
                        
By: _______________________________
Name:  ____________________________
Title:  _____________________________

OWNER:

RUDGATE CLINTON SPE, LLC, 
a Delaware limited liability company

By:                    
Name:                    
Title:                    

AND 

By: ___________________________
Name: _________________________
Title: __________________________

RUDGATE CLINTON ESTATES SPE, LLC, 
a Delaware limited liability company

By:                    
Name:                    
Title:                    

AND 

By: ___________________________
Name: _________________________
Title: __________________________

24

JOINDER
THE UNDERSIGNED hereby joins in this Agreement solely for purposes of agreeing to fund the obligations to the extent set forth under Section 3(i) hereof.

SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP, a Michigan limited partnership

By:   Sun Communities, Inc., its General Partner

By:                    
Name:                    
Title:                    

25

EXHIBIT C

FORM OF RECIPROCAL REIMBURSEMENT AGREEMENT

18

RECIPROCAL REIMBURSEMENT AGREEMENT

    
This RECIPROCAL REIMBURSEMENT AGREEMENT (“Agreement”) is made and entered into as of _____________, 2012, by and among GREGG L. ORLEY and RANDALL C. ORLEY (individually and collectively, jointly and severally, the “Rudgate Key Principals”), RUDGATE VILLAGE COMPANY LIMITED PARTNERSHIP, a Michigan limited partnership,  RUDGATE CLINTON COMPANY LIMITED PARTNERSHIP, a Michigan limited partnership, RUDGATE CLINTON ESTATES L.L.C., a Michigan limited liability company (individually and collectively, jointly and severally, the “Rudgate Owners”) and SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP, a Michigan limited partnership (“Sun” and together with the Rudgate Key Principals, the “Guarantors”). 

R E C I T A L S:

A.    Ladder Capital Finance LLC (the “Lender”) has extended a mortgage loan to Rudgate Village SPE, LLC, a Delaware limited liability company, Rudgate Clinton SPE, LLC, a Delaware limited liability company and Rudgate Clinton Estates SPE, LLC, a Delaware limited liability company (individually and collectively, jointly and severally, the “Rudgate Borrowers”) in the amount of $45,900,000 (the “Loan”), as evidenced by a certain Loan Agreement, Promissory Note, Mortgage and other loan documents executed pursuant thereto (the “Loan Documents”).  The Rudgate Borrowers are indirectly wholly owned by the Rudgate Owners.
 
B.    As a condition to providing the Loan, the Lender has required the Rudgate Key Principals and Sun to execute and deliver a Guaranty of Recourse Obligations (“Guaranty”) in favor of the Lender, which Guaranty provides for (i) the Rudgate Key Principals to unilaterally guaranty certain so-called non-recourse carve outs pertaining to the Loan upon the occurrence of certain events more particularly described therein (the “Rudgate Unilateral Guaranteed Obligations”), (ii) Sun to unilaterally guaranty certain so-called non-recourse carve outs pertaining to the Loan upon the occurrence of certain events more particularly described therein (the “Sun Unilateral Guaranteed Obligations”), and (iii) the Rudgate Key Principals and Sun to both guaranty certain so-called non-recourse carve outs pertaining to the Loan upon the occurrence of certain events more particularly described therein (the “Joint Guaranteed Obligations”).

C.    Sun has extended a mezzanine mortgage loan to Rudgate Village Holdings, LLC, a Delaware limited liability company, Rudgate Clinton Holdings, LLC, a Delaware limited liability company and Rudgate Clinton Estates Holdings, LLC, a Delaware limited liability company (individually and collectively, jointly and severally, the “Rudgate Mez Borrowers”) in the amount of $___________ (the “Mezzanine Loan”), as evidenced by a certain Mezzanine Loan Agreement, Promissory Note, Pledge Agreement and other loan documents executed pursuant thereto (collectively, the “Mez Loan Documents”).  The Rudgate Mez Borrowers wholly own the Rudgate Borrowers, and the Rudgate Owners wholly own the Rudgate Mez Borrowers.

D.    Sun Home Services, Inc. (“SHS”), an affiliate of Sun, and Rudgate Village SPE, LLC are parties to a Property Management Agreement (the “Manor Management Agreement”) pursuant to which SHS has been engaged to manage Rudgate Manor Manufactured Home Community (the 

“Manor Project”), and SHS, Rudgate Clinton SPE, LLC, and Rudgate Clinton Estates SPE, LLC, are parties to a Property Management Agreement (the “Clinton Management Agreement”, and together with the Manor Management Agreement, the “Management Agreements”) pursuant to which SHS has been engaged to manage Rudgate Clinton Manufactured Home Community (the “Clinton Project”).

E.    Sun has agreed to execute and deliver the Guaranty and the Rudgate Key Principals have agreed to execute and deliver the Guaranty, and as a condition to such execution and delivery of the Guaranty, the Rudgate Key Principals, Rudgate Owners and Sun have agreed to enter into this Agreement.  
    
NOW, THEREFORE, in consideration of the foregoing recitals, and the agreements and undertakings contained in this Agreement, the parties agree as follows.
        
1.    The Rudgate Key Principals and Rudgate Owners, joint and severally, agree to reimburse Sun and Sun Communities, Inc. (“SCI”), the general partner of Sun, for any and all sums paid to Lender and for any reasonable attorneys’ fees, court costs and legal expenses incurred by Sun and SCI, which Sun or SCI are required to pay or which amounts they incur by reason of or in connection with the Sun Unilateral Guaranteed Obligations and which arise as a result of any affirmative act of any Rudgate Borrower, Rudgate Owner, Rudgate Mez Borrower or Rudgate Key Principal, or any of their respective affiliates, agents, employees, representatives, partners, members, managers, officers or directors, which affirmative action occurs after the date hereof and causes Sun or SCI to incur liability under the Sun Unilateral Guaranteed Obligations; provided, however, nothing herein shall require the Rudgate Key Principals, Rudgate Owners, or Rudgate Mez Borrowers to contribute capital or fund any obligations with respect to Manor Project or Clinton Project, and any failure to contribute capital or fund any obligations shall not be deemed an affirmation action of any such party.  Furthermore, in no event shall events occurring prior to the date hereof, or conditions existing at the Manor Project or Clinton Project as of the date hereof, create any liability under this Section 1 to the Rudgate Key Principals or Rudgate Owners.  For avoidance of doubt, the parties agree that for all purposes of this Agreement neither Sun nor its affiliates, its agents or its employees shall be considered an agent or affiliate of any Rudgate Borrower, Rudgate Owner or Rudgate Key Principal, and in no event shall SHS (or any successor thereto or assign thereof), acting as the property manager of the Manor Project and Clinton Project be deemed to be an agent or affiliate of any Rudgate Borrower, Rudgate Owner or Rudgate Key Principal.

2.    Sun agrees to reimburse Rudgate Borrowers and Rudgate Key Principals for any and all  sums paid to Lender and for any reasonable attorneys’ fees, court costs and legal expenses which Rudgate Borrower or Rudgate Key Principal are required to pay or which amounts they incur by reason of or in connection with  (i) any Joint Guaranteed Obligation as a result of (x) an affirmative act, or (y) an omission which is in violation of the single purpose entity covenants contained in the Loan Documents, and which is made by Sun, SHS or any of their respective affiliates, agents, employees, representatives, partners, members, shareholders, managers, officers or directors, or (ii) the Rudgate Unilateral Guaranteed Obligation requiring Borrower to obtain Lender’s prior written consent to a “Transfer” (as such term is defined under the Loan Documents) of an interest in the Property not expressly permitted by the Loan Documents, and arising as a result of an affirmative act causing a prohibited Transfer made by Sun, SHS or any of their respective affiliates, agents, employees, representatives, partners, members, shareholders, managers, officers or directors, and not approved in writing by a Rudgate Borrower.  For avoidance of doubt, the parties agree that for all purposes of 

this Agreement none of the Rudgate Borrowers, Rudgate Owners or Rudgate Mez Borrowers or any of their respective affiliates, their agents or their employees shall be considered an agent or affiliate of Sun or SHS.

3.    The Rudgate Key Principals and Rudgate Owners, joint and severally, agree to reimburse Sun and SCI for any and all sums paid to Lender and for any reasonable attorneys’ fees, court costs or legal expenses incurred by Sun or SCI, which Sun or SCI are required to pay or which amounts they incur by reason of or in connection with any Joint Guaranteed Obligation as a result of any (i) affirmative act, or (ii) an omission which is in violation of the single purpose entity covenants contained in the Loan Documents and which is made by any Rudgate Borrower, Rudgate Owner, Rudgate Mez Borrower or Rudgate Key Principal, or any of their respective affiliates, agents, employees, representatives, partners, members, managers, officers or directors; provided, however, any failure to contribute capital or fund any Obligations shall not be deemed to be gross negligence or willful misconduct of such parties.  For avoidance of doubt, the parties agree that for all purposes of this Agreement neither Sun nor its affiliates, its agents or its employees shall be considered an agent or affiliate of any Rudgate Borrower, Rudgate Owner or Rudgate Key Principal, and in no event shall SHS (or any successor thereto or assignee thereof), acting as the property manager of the Manor Project and Clinton Project be deemed to be an agent or affiliate of any Rudgate Borrower, Rudgate Owner or Rudgate Key Principal.

4.    The parties agree that the compromise or release of any of the liabilities or obligations arising from or in connection with the Guaranty (collectively, the “Obligations”), the renewal or extension of the time of payment of any of the Obligations, the amendment or modification of the terms of any agreement or instrument evidencing any Obligations, the discharge or release of any of the undersigned by reason of the operation of federal or state bankruptcy or insolvency laws, or the extinguishment of any of the Obligations due to the running of any applicable statute of limitations, shall not release the obligations of the undersigned pursuant to this Agreement.

5.    Nothing contained in the Agreement is intended to, or shall be construed to, modify, alter, amend, or impact in any way (i) the obligations, rights or remedies of Sun, the Mez Loan Borrowers or the Rudgate Key Principals under the Mezzanine Loan or Mez Loan Documents, or (ii) the obligations, rights and remedies of SHS or the Rudgate Borrowers under the Management Agreements, which shall remain independent from the terms, conditions and obligations of the parties under this Agreement.

6.    In the event any action is brought to enforce this Agreement, the non-prevailing party in such action shall reimburse the prevailing party for all reasonable attorney fees, court costs and legal expenses incurred in connection with such action.

7.    This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, legal representatives, successors and assigns.

8.    This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Michigan, without regard to principals and conflicts of laws.

9.    This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same agreement.

IN WITNESS WHEREOF, the undersigned have executed this Reciprocal Reimbursement Agreement as of the date first written above.
                                                
Name: Gregg L. Orley

        
Name: Randall C. Orley

RUDGATE VILLAGE COMPANY LIMITED PARTNERSHIP, a Michigan limited partnership

By:         
Name:            
Its:     

and

By:         
Name:            
Its:     

RUDGATE CLINTON COMPANY LIMITED PARTNERSHIP, a Michigan limited partnership

By:         
Name:            
Its:           

and

By:         
Name:            
Its:     

RUDGATE CLINTON ESTATES L.L.C., a Michigan limited liability company

By:         
Name:            
Its:           

and

By:         
Name:            
Its:     

[Signatures Continue on the Following Page]

SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP, a Michigan limited partnership

By: Sun Communities, Inc., a Maryland corporation
Its: General Partner

By:         
Name:            
Its:Exhibit 4.1 

GENERAL ELECTRIC COMPANY 

and 

THE BANK OF NEW YORK MELLON 

Trustee

INDENTURE

Dated as of October 9, 2012

CERTAIN SECTIONS OF THIS INDENTURE RELATING TO 

SECTIONS 310 THROUGH 318, 

INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

	
  

 	
  

 	
  

 	
  

 
	
 TRUST INDENTURE

 ACT SECTION

 	
  

 	
 INDENTURE

 SECTION(S)

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 310(a)(1)

 	
  

 	
 609

 
	
  

 	
 (a)(2)

 	
  

 	
 609

 
	
  

 	
 (a)(3)

 	
  

 	
 Not
 Applicable

 
	
  

 	
 (a)(4)

 	
  

 	
 Not
 Applicable

 
	
  

 	
 (b)

 	
  

 	
 608,
 610

 
	
 Section 311(a)

 	
  

 	
 613

 
	
  

 	
 (b)

 	
  

 	
 613

 
	
 Section 312(a)

 	
  

 	
 701,
 702

 
	
  

 	
 (b)

 	
  

 	
 702

 
	
  

 	
 (c)

 	
  

 	
 702

 
	
 Section 313(a)

 	
  

 	
 703

 
	
  

 	
 (b)

 	
  

 	
 703

 
	
  

 	
 (c)

 	
  

 	
 703

 
	
  

 	
 (d)

 	
  

 	
 703

 
	
 Section 314(a)

 	
  

 	
 704

 
	
  

 	
 (a)(4)

 	
  

 	
 101,
 1004

 
	
  

 	
 (b)

 	
  

 	
 Not
 Applicable

 
	
  

 	
 (c)(1)

 	
  

 	
 102

 
	
  

 	
 (c)(2)

 	
  

 	
 102

 
	
  

 	
 (c)(3)

 	
  

 	
 Not
 Applicable

 
	
  

 	
 (d)

 	
  

 	
 Not
 Applicable

 
	
  

 	
 (e)

 	
  

 	
 102

 
	
 Section 315(a)

 	
  

 	
 601

 
	
  

 	
 (b)

 	
  

 	
 602

 
	
  

 	
 (c)

 	
  

 	
 601

 
	
  

 	
 (d)

 	
  

 	
 601

 
	
  

 	
 (e)

 	
  

 	
 514

 
	
 Section 316(a)

 	
  

 	
 101

 
	
  

 	
 (a)(1)(A)

 	
  

 	
 502,
 512

 
	
  

 	
 (a)(1)(B)

 	
  

 	
 513

 
	
  

 	
 (a)(2)

 	
  

 	
 Not
 Applicable

 
	
  

 	
 (b)

 	
  

 	
 508

 
	
  

 	
 (c)

 	
  

 	
 104

 
	
 Section 317(a)(1)

 	
  

 	
 503

 
	
  

 	
 (a)(2)

 	
  

 	
 504

 
	
  

 	
 (b)

 	
  

 	
 1003

 
	
 Section 318(a)

 	
  

 	
 107

 

NOTE: This reconciliation
and tie shall not, for any purpose, be deemed to be a part of the Indenture. 

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE ONE DEFINITIONS
 AND OTHER PROVISIONS OF GENERAL APPLICATION

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 101. Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 102. Compliance
 Certificates and Opinions

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 103. Form of Documents
 Delivered to Trustee

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 104. Acts of
 Holders; Record Dates

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 105. Notices,
 Etc., to Trustee and Company

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 106. Notice to
 Holders; Waiver

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 107. Conflict with
 Trust Indenture Act

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 108. Effect of
 Headings and Table of Contents

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 109. Successors
 and Assigns

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 110. Separability
 Clause

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 111. Benefits of
 Indenture

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 112. Governing
 Law; Waiver of Trial by Jury

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 113. Legal
 Holidays

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 114. Counterparts

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE TWO SECURITY FORMS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 201. Forms
 Generally

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 202. Form of Face
 of Security

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 203. Form of
 Reverse of Security

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 204. Form of
 Legend for Global Securities

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 205. Form of
 Trustee’s Certificate of Authentication

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE THREE THE
 SECURITIES

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 301. Amount
 Unlimited; Issuable in Series

 	
  

 	
 18

 

Table of Contents

(Continued)

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 302.
 Denominations

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 303. Execution,
 Authentication, Delivery and Dating

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 304. Temporary
 Securities

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 305. Registration,
 Registration of Transfer and Exchange

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 306. Mutilated,
 Destroyed, Lost and Stolen Securities

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 307. Payment of
 Interest; Interest Rights Preserved; Optional Interest Reset

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 308. Optional
 Extension of Maturity

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 309. Persons
 Deemed Owners

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 310. Cancellation

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 311. Computation
 of Interest; Usury Not Intended

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 312. CUSIP or ISIN
 Numbers

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE FOUR SATISFACTION
 AND DISCHARGE

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 401. Satisfaction
 and Discharge of Indenture

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 402. Application
 of Trust Money

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE FIVE REMEDIES

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 501. Events of
 Default

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 502. Acceleration
 of Maturity; Rescission and Annulment

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 503. Collection of
 Indebtedness and Suits for Enforcement by Trustee

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 504. Trustee May
 File Proofs of Claim

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 505. Trustee May
 Enforce Claims Without Possession of Securities

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 506. Application
 of Money Collected

 	
  

 	
 35

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 507. Limitation on
 Suits

 	
  

 	
 35

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 508. Unconditional
 Right of Holders to Receive Principal, Premium and Interest

 	
  

 	
 36

 

Table of Contents

(Continued)

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 509. Restoration
 of Rights and Remedies

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 510. Rights and
 Remedies Cumulative

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 511. Delay or
 Omission Not Waiver

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 512. Control by
 Holders

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 513. Waiver of
 Past Defaults

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 514. Undertaking
 for Costs

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 515. Waiver of
 Usury, Stay or Extension Laws

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE SIX THE TRUSTEE

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 601. Certain
 Duties and Responsibilities

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 602. Notice of
 Defaults

 	
  

 	
 38

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 603. Certain
 Rights of Trustee

 	
  

 	
 38

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 604. Not
 Responsible for Recitals or Issuance of Securities

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 605. May Hold
 Securities

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 606. Money Held in
 Trust

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 607. Compensation
 and Reimbursement

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 608. Conflicting
 Interests

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 609. Corporate
 Trustee Required; Eligibility

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 610. Resignation
 and Removal; Appointment of Successor

 	
  

 	
 42

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 611. Acceptance of
 Appointment by Successor

 	
  

 	
 43

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 612. Merger,
 Conversion, Consolidation or Succession to Business

 	
  

 	
 44

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 613. Preferential
 Collection of Claims Against Company

 	
  

 	
 44

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 614. Appointment
 of Authenticating Agent

 	
  

 	
 44

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE SEVEN HOLDERS’
 LISTS AND REPORTS BY TRUSTEE AND COMPANY

 	
  

 	
 46

 

Table of Contents

(Continued)

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 701. Company to
 Furnish Trustee Names and Addresses of Holders

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 702. Preservation
 of Information; Communications to Holders

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 703. Reports by
 Trustee

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 704. Reports by
 Company

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE EIGHT
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 801. Company May
 Consolidate, Etc., Only on Certain Terms

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 802. Successor
 Substituted

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE NINE SUPPLEMENTAL
 INDENTURES

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 901. Supplemental
 Indentures Without Consent of Holders

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 902. Supplemental
 Indentures With Consent of Holders

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 903. Execution of
 Supplemental Indentures

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 904. Effect of
 Supplemental Indentures

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 905. Conformity
 with Trust Indenture Act

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 906. Reference in
 Securities to Supplemental Indentures

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE TEN COVENANTS

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1001. Payment of
 Principal, Premium and Interest

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1002. Maintenance
 of Office or Agency

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1003. Money for
 Securities Payments to Be Held in Trust

 	
  

 	
 52

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1004. Statement by
 Officer as to Default

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1005. Existence

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1006. Waiver of
 Certain Covenants

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE ELEVEN REDEMPTION
 OF SECURITIES

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1101.
 Applicability of Article

 	
  

 	
 53

 

Table of Contents

(Continued)

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1102. Election to
 Redeem; Notice to Trustee

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1103. Selection by
 Trustee of Securities to Be Redeemed

 	
  

 	
 54

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1104. Notice of
 Redemption

 	
  

 	
 54

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1105. Deposit of
 Redemption Price

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1106. Securities
 Payable on Redemption Date

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1107. Securities
 Redeemed in Part

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE TWELVE SINKING
 FUNDS

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1201.
 Applicability of Article

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1202. Satisfaction
 of Sinking Fund Payments with Securities

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1203. Redemption
 of Securities for Sinking Fund

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE THIRTEEN REPAYMENT
 AT THE OPTION OF THE HOLDERS

 	
  

 	
 57

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1301.
 Applicability of Article

 	
  

 	
 57

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1302. Repayment of
 Securities

 	
  

 	
 57

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1303. Exercise of
 Option

 	
  

 	
 57

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1304. When
 Securities Presented for Repayment Become Due and Payable

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1305. Securities
 Repaid in Part

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE FOURTEEN
 DEFEASANCE AND COVENANT DEFEASANCE

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1401. Company’s
 Option to Effect Defeasance or Covenant Defeasance

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1402. Defeasance
 and Discharge

 	
  

 	
 58

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1403. Covenant
 Defeasance

 	
  

 	
 59

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1404. Conditions
 to Defeasance or Covenant Defeasance

 	
  

 	
 59

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1405.
 Acknowledgment of Discharge By Trustee

 	
  

 	
 61

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1406. Deposited Money and U.S. Government Obligations to Be
 Held in Trust; Miscellaneous Provisions

 	
  

 	
 61

 

Table of Contents

(Continued)

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1407.
 Reinstatement

 	
  

 	
 61

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1408. Qualifying
 Trustee

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE FIFTEEN IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS,
 DIRECTORS AND EMPLOYEES

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SECTION 1501. Exemption
 from Individual Liability

 	
  

 	
 62

 

          INDENTURE
(herein called this “Indenture”), dated as of October 9, 2012, between General
Electric Company, a corporation duly organized and existing under the laws of
the State of New York (herein called the “Company”), having its principal
office at 3135 Easton Turnpike, Fairfield, Connecticut 06828, and The Bank of
New York Mellon, a New York corporation having an office in New York, New York,
as Trustee (herein called the “Trustee”). 

RECITALS OF THE COMPANY

          The
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its debentures, notes or other
evidences of indebtedness (herein called the “Securities”), to be issued in one
or more series as in this Indenture provided. 

          All
things necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done. 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          For
and in consideration of the premises and the purchase of the Securities by the
Holders thereof, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders of the Securities or of any series
thereof, as follows: 

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS 

OF GENERAL APPLICATION

          SECTION
101. Definitions. 

          For
all purposes of this Indenture, except as otherwise expressly provided or
unless the context otherwise requires: 

	
  

 	
  

 
	
  

 	
           (1)
 the terms defined in this Article One have the meanings assigned to them in
 this Article One and include the plural as well as the singular; 

 
	
  

 	
  

 
	
  

 	
           (2)
 all other terms used herein which are defined in the Trust Indenture Act,
 either directly or by reference therein, have the meanings assigned to them
 therein; 

 
	
  

 	
  

 
	
  

 	
           (3)
 all accounting terms not otherwise defined herein have the meanings assigned
 to them in accordance with generally accepted accounting principles in the
 United States of America, and, except as otherwise herein expressly provided,
 the term “generally accepted accounting principles” with respect to any
 computation required or permitted hereunder shall mean such accounting
 principles as are generally accepted in the United States of America at the
 date of such computation, provided that when two or more principles are so
 generally accepted, it shall mean that set of principles consistent with
 those in use by the Company; 

 
	
  

 	
  

 
	
  

 	
           (4)
 unless the context otherwise requires, any reference to an “Article” or a
 “Section” refers to an Article or a Section, as the case may be, of this
 Indenture; 

 
	
  

 	
  

 
	
  

 	
           (5)
 the words “herein”, “hereof” and “hereunder” and other words of similar
 import refer to this Indenture as a whole and not to any particular Article,
 Section or other subdivision; 

 

	
  

 	
  

 
	
  

 	
           (6)
 words importing any gender include the other genders; 

 
	
  

 	
  

 
	
  

 	
           (7)
 references to statutes are to be construed as including all statutory
 provisions consolidating, amending or replacing the statute referred to; 

 
	
  

 	
  

 
	
  

 	
           (8)
 references to “writing” include printing, typing, lithography and other means
 of reproducing words in a tangible, visible form; 

 
	
  

 	
  

 
	
  

 	
           (9)
 the words “including,” “includes” and “include” shall be deemed to be
 followed by the words “without limitation”; and 

 
	
  

 	
  

 
	
  

 	
           (10)
 unless otherwise provided, references to agreements and other instruments
 shall be deemed to include all amendments and other modifications to such
 agreements and instruments, but only to the extent such amendments and other
 modifications are not prohibited by the terms of this Indenture. 

 

          “Act”,
when used with respect to any Holder, has the meaning specified in Section 104.

          “Affiliate”
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person. For the purposes of this definition, 

          “control”
when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing. 

          “Authenticating
Agent” means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities of one or more series. 

          “Board
of Directors” means either the board of directors of the Company or any duly
authorized committee of that board. 

          “Board
Resolution” means a copy of a resolution certified by the Corporate Secretary,
an Assistant Corporate Secretary or an Associate Secretary of the Company to
have been duly adopted by the Board of Directors, or such committee of the
Board of Directors or officers of the Company to which authority to act on
behalf of the Board of Directors has been delegated, and to be in full force
and effect on the date of such certification, and delivered to the Trustee. 

          “Business
Day”, when used with respect to any Place of Payment, means each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in that Place of Payment are authorized or obligated by law or
regulation to close. 

          “Commission”
means the Securities and Exchange Commission, from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this
instrument such Commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act, then the body performing such
duties at such time. 

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

2

          “Company
Request” or “Company Order” mean, respectively, a written request or order
signed in the name of the Company by its Chairman of the Board, its Chief
Executive Officer, a Vice Chairman of the Board, its Chief Financial Officer,
its President, a Vice President, its Treasurer, an Assistant Treasurer, its
Corporate Secretary, an Assistant Corporate Secretary or an Associate
Secretary, and delivered to the Trustee. 

          “Corporate
Trust Office” means the office of the Trustee at which at any particular time
its corporate trust business shall be principally administered, which office at
the date hereof is located at 101 Barclay Street, Floor 8W, New York, New York
10286. 

          “corporation”
means a corporation, association, company, limited liability company,
joint-stock company or business or statutory trust. 

          “Covenant
Defeasance” has the meaning specified in Section 1403. 

          “Defaulted
Interest” has the meaning specified in Section 307(a). 

          “Defeasance”
has the meaning specified in Section 1402. 

          “Depositary”
means, with respect to Securities of any series issuable in whole or in part in
the form of one or more Global Securities, a clearing agency registered under
the Exchange Act that is designated to act as Depositary for such Securities as
contemplated by Section 301. 

          “Event
of Default” has the meaning specified in Section 501. 

          “Exchange
Act” means the Securities Exchange Act of 1934 and any statute successor
thereto, in each case as amended from time to time. 

          “Exchange
Rate” has the meaning specified in Section 501. 

          “Expiration
Date” has the meaning specified in Section 104. 

          “Extension
Notice” has the meaning specified in Section 308. 

          “Extension
Period” has the meaning specified in Section 308. 

          “Final
Maturity” has the meaning specified in Section 308. 

          “Global
Security” means a Security that evidences all or part of the Securities of any
series and bears the legend set forth in Section 204 (or such legend as may be
specified as contemplated by Section 301 for such Securities). 

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

          “Indenture”
means this instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof, including, for all purposes
of this instrument and any such supplemental indenture, the provisions of the
Trust Indenture Act that are deemed to be a part of and govern this instrument
and any such supplemental indenture, respectively. The term “Indenture” shall
also include the terms of particular series of Securities established as
contemplated by Section 301. 

3

          “interest”,
when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, means interest payable after
Maturity. 

          “Interest
Payment Date”, when used with respect to any Security, means the Stated
Maturity of an installment of interest on such Security. 

          “Investment
Company Act” means the Investment Company Act of 1940 and any statute successor
thereto, in each case as amended from time to time. 

          “Maturity”,
when used with respect to any Security, means the date on which the principal
of such Security or an installment of principal or premium, if any, becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise. 

          “Maximum
Interest Rate” has the meaning specified in Section 311. 

          “Notice
of Default” means a written notice of the kind specified in Section 501(4). 

          “Officer’s
Certificate” means a certificate signed by the Chairman of the Board, the Chief
Executive Officer, a Vice Chairman of the Board, the Chief Financial Officer,
the President, a Vice President, the Treasurer, an Assistant Treasurer, the
Corporate Secretary, an Assistant Corporate Secretary or an Associate Secretary
of the Company and delivered to the Trustee. 

          “Opinion
of Counsel” means a written opinion of counsel, who may be counsel for the
Company (and who may be an employee of the Company), and who shall be
acceptable to the Trustee. 

          “Optional
Reset Date” has the meaning specified in Section 307(b). 

          “Original
Issue Discount Security” means any Security which provides for an amount less
than the principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502. 

          “Original
Stated Maturity” has the meaning specified in Section 308. 

          “Outstanding”,
when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture,
except: 

	
  

 	
  

 
	
  

 	
           (1)
 Securities theretofore canceled by the Trustee or delivered to the Trustee
 for cancellation; 

 
	
  

 	
  

 
	
  

 	
           (2)
 Securities for whose payment or redemption money in the necessary amount has
 been theretofore deposited with the Trustee or any Paying Agent (other than
 the Company) in trust or set aside and irrevocably segregated in trust by the
 Company (if the Company shall act as its own Paying Agent) for the Holders of
 such Securities; provided that, if such Securities are to be redeemed, notice
 of such redemption has been duly given pursuant to this Indenture or
 provision therefor satisfactory to the Trustee has been made; 

 
	
  

 	
  

 
	
  

 	
           (3)
 Securities as to which Defeasance has been effected pursuant to Section 1402;
 and 

 

4

	
  

 	
  

 
	
  

 	
           (4)
 Securities which have been paid pursuant to Section 306 or in exchange for or
 in lieu of which other Securities have been authenticated and delivered
 pursuant to this Indenture, other than any such Securities in respect of
 which there shall have been presented to the Trustee proof satisfactory to it
 that such Securities are held by a bona fide purchaser in whose hands such
 Securities are valid obligations of the Company; provided, however, that in
 determining whether the Holders of the requisite principal amount of the
 Outstanding Securities have given, made or taken any request, demand,
 authorization, direction, notice, consent, waiver or other action hereunder
 as of any date, (A) the principal amount of an Original Issue Discount
 Security which shall be deemed to be Outstanding shall be the amount of the
 principal thereof which would be due and payable as of such date upon
 acceleration of the Maturity thereof to such date pursuant to Section 502,
 (B) if, as of such date, the principal amount payable at the Stated Maturity
 of a Security is not determinable, the principal amount of such Security
 which shall be deemed to be Outstanding shall be the amount as specified or
 determined as contemplated by Section 301, (C) the principal amount of a
 Security denominated in one or more foreign currencies or currency units
 which shall be deemed to be Outstanding shall be the U.S. dollar equivalent,
 determined as of such date in the manner provided as contemplated by Section
 301, of the principal amount of such Security (or, in the case of a Security
 described in Clause (A) or (B) above, of the amount determined as provided in
 such Clause), and (D) Securities owned by the Company or any other obligor
 upon the Securities or any Affiliate of the Company or of such other obligor
 shall be disregarded and deemed not to be Outstanding, except that, in
 determining whether the Trustee shall be protected in relying upon any such
 request, demand, authorization, direction, notice, consent, waiver or other
 action, only Securities which the Trustee knows to be so owned shall be so
 disregarded. Securities so owned which have been pledged in good faith may be
 regarded as Outstanding if the pledgee establishes to the satisfaction of the
 Trustee the pledgee’s right so to act with respect to such Securities and
 that the pledgee is not the Company or any other obligor upon the Securities
 or any Affiliate of the Company or of such other obligor. 

 

          “Paying
Agent” means any Person authorized by the Company to pay the principal of or
any premium or interest on any Securities on behalf of the Company. The Company
initially authorizes and appoints the Trustee as the Paying Agent for each
series of the Securities. 

          “Periodic
Offering” means an offering of Securities of a series from time to time the
specific terms of which Securities, including the rate or rates of interest or
formula for determining the rate or rates of interest thereon, if any, the
Stated Maturity or Maturities thereof and the redemption provisions, if any,
with respect thereto, are to be determined by the Company upon the issuance of
such Securities. 

          “Person”
means any individual, corporation, partnership, joint venture, trust,
unincorporated organization, government or any agency or political subdivision
thereof. 

          “Place
of Payment”, when used with respect to the Securities of any series, means the
place or places where the principal of and any premium and interest on the
Securities of that series are payable as specified as contemplated by Section
301. 

          “Predecessor
Security” of any particular Security means every previous Security evidencing
all or a portion of the same debt as that evidenced by such particular
Security; and, for the purposes of this definition, any Security authenticated
and delivered under Section 306 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same debt as
the mutilated, destroyed, lost or stolen Security. 

          “Redemption
Date”, when used with respect to any Security to be redeemed, means the date
fixed for such redemption by or pursuant to this Indenture. 

5

          “Redemption
Price”, when used with respect to any Security to be redeemed, means the price
at which it is to be redeemed pursuant to this Indenture. 

          “Regular
Record Date” for the interest payable on any Interest Payment Date on the
Securities of any series means the date specified for that purpose as
contemplated by Section 301. 

          “Repayment
Date” means, when used with respect to any Security to be repaid at the option
of the Holder, the date fixed for such repayment by or pursuant to this
Indenture. 

          “Reset
Notice” has the meaning specified in Section 307(b). 

          “Responsible
Officer,” when used with respect to The Bank of New York Mellon, as Trustee,
means an officer in the Corporate Trust Office thereof having direct
responsibility for administration of this Indenture and, when used with respect
to any successor Trustee, means the chairman or any vice chairman of the board
of directors, the chairman or any vice chairman of the executive committee of
the board of directors, the chairman of the trust committee, the president, any
vice president, the secretary, any assistant secretary, the treasurer, any
assistant treasurer, the cashier, any assistant cashier, any trust officer or
assistant trust officer, the controller or any assistant controller or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and, in each case, also
means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of his knowledge of and familiarity
with the particular subject. 

          “Securities”
has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this
Indenture. 

          “Securities
Act” means the Securities Act of 1933 and any statute successor thereto, in
each case as amended from time to time. 

          “Security
Register” and “Security Registrar” have the respective meanings specified in
Section 305. 

          “Special
Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 307(a). 

          “Stated
Maturity”, when used with respect to any Security or any installment of
principal thereof or premium, if any, or interest thereon, means the date
specified in such Security as the fixed date on which the principal of or
premium, if any, on such Security or such installment of principal or interest is
due and payable. 

          “Subsequent
Interest Period” has the meaning specified in Section 307(b). 

          “Subsidiary”
means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other
Subsidiaries, or by the Company and one or more other Subsidiaries. For the
purposes of this definition, “voting stock” means stock which ordinarily has
voting power for the election of directors, whether at all times or only so
long as no senior class of stock has such voting power by reason of any
contingency. 

          “Trust
Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as
of which this instrument was executed; provided, however, that in the event the
Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act”
means, to the extent required by any such amendment, the Trust Indenture Act of
1939 as so amended. 

6

          “Trustee”
means the Person named as the “Trustee” in the first paragraph of this
instrument until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Trustee” shall mean or
include each Person who is then a Trustee hereunder, and if at any time there
is more than one such Person, “Trustee” as used with respect to the Securities
of any series shall mean the Trustee with respect to Securities of that series.

          “U.S.
Government Obligation” has the meaning specified in Section 1404. 

          “Vice
President”, when used with respect to the Company or the Trustee, means any
vice president, whether or not designated by a number or a word or words added
before or after the title “vice president”. 

          “Yield
to Maturity” means the yield to maturity, computed at the time of issuance of a
Security (or, if applicable, at the most recent redetermination of interest on
such Security) and as set forth in such Security in accordance with generally
accepted United States bond yield computation principles. 

          SECTION
102. Compliance Certificates and Opinions. 

          Upon
any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the Trustee
such certificates and opinions as may be required under the Trust Indenture
Act. Each such certificate or opinion shall be given in the form of an
Officer’s Certificate, if to be given by an officer of the Company, or an
Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in
this Indenture. 

          Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture, other than an Officer’s Certificate required by
Section 1004, shall include: 

	
  

 	
  

 
	
  

 	
           (1)
 a statement that each individual signing such certificate or opinion has read
 such covenant or condition and the definitions herein relating thereto; 

 
	
  

 	
  

 
	
  

 	
           (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 each such individual, the individual has
 made or caused to be made such examination or investigation as is necessary
 to enable such individual 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, in the opinion of each such individual, such
 condition or covenant has been complied with. 

 

          SECTION
103. Form of Documents Delivered to Trustee. 

          In
any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons may certify or give an opinion as to other matters, and any such
Person may certify or give an opinion as to such matters in one or several
documents. 

7

          Any
certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which such officer’s certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous. 

          Where
any Person is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other instruments
under this Indenture, they may, but need not, be consolidated and form one
instrument. 

          SECTION
104. Acts of Holders; Record Dates. 

          Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Indenture to be given, made or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing; and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the “Act” of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for
any purpose of this Indenture and (subject to Section 601) conclusive in favor
of the Trustee and the Company, if made in the manner provided in this Section
104. 

          The
fact and date of the execution by any Person of any such instrument or writing
may be proved in any reasonable manner which the Trustee deems sufficient.
Where such execution is by a signer acting in a capacity other than his
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority. The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other manner which the Trustee deems sufficient. 

          The
ownership of Securities shall be proved by the Security Register. 

          Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of the Holder of any Security shall bind every future Holder of the same
Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such
Security. 

          The
Company may set any day as a record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to give, make or take
any request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Indenture to be given, made or taken by
Holders of Securities of such series, provided that the Company may not set a
record date for, and the provisions of this paragraph shall not apply with
respect to, the giving or making of any notice, declaration, request or
direction referred to in the next paragraph. If any record date is set pursuant
to this paragraph, the Holders of Outstanding Securities of the relevant series
on such record date, and no other Holders, shall be entitled to take the
relevant action, whether or not such Holders remain Holders after such record
date; provided that no such action shall be effective hereunder unless taken on
or prior to 

8

the applicable Expiration
Date by Holders of the requisite principal amount of Outstanding Securities of
such series on such record date. Nothing in this paragraph shall be construed
to prevent the Company from setting a new record date for any action for which
a record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be canceled and of no effect), and nothing in this paragraph shall be construed
to render ineffective any action taken by Holders of the requisite principal
amount of Outstanding Securities of the relevant series on the date such action
is taken. Promptly after any record date is set pursuant to this paragraph, the
Company, at its own expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to
the Trustee in writing and to each Holder of Securities of the relevant series
in the manner set forth in Section 106. 

          The
Trustee may set any day as a record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to join in the giving
or making of (i) any Notice of Default, (ii) any declaration of acceleration
referred to in Section 502, (iii) any request to institute proceedings referred
to in Section 507(2) or (iv) any direction referred to in Section 512, in each
case with respect to Securities of such series. If any record date is set
pursuant to this paragraph, the Holders of Outstanding Securities of such
series on such record date, and no other Holders, shall be entitled to join in
such notice, declaration, request or direction, whether or not such Holders
remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this paragraph shall be construed to
prevent the Trustee from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be canceled and of no effect), and nothing in this paragraph shall be construed
to render ineffective any action taken by Holders of the requisite principal
amount of Outstanding Securities of the relevant series on the date such action
is taken. Promptly after any record date is set pursuant to this paragraph, the
Trustee, at the Company’s expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to
the Company in writing and to each Holder of Securities of the relevant series
in the manner set forth in Section 106. 

          With
respect to any record date set pursuant to this Section 104, the party hereto
which sets such record dates may designate any day as the “Expiration Date” and
from time to time may change the Expiration Date to any earlier or later day;
provided that no such change shall be effective unless notice of the proposed
new Expiration Date is given to the other party hereto in writing, and to each
Holder of Securities of the relevant series in the manner set forth in Section
106, on or prior to the existing Expiration Date. If an Expiration Date is not
designated with respect to any record date set pursuant to this Section 104,
the party hereto which set such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date as provided
in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date. 

          Without
limiting the foregoing, a Holder entitled hereunder to take any action
hereunder with regard to any particular Security may do so with regard to all
or any part of the principal amount of such Security or by one or more duly appointed
agents, each of which may do so pursuant to such appointment with regard to all
or any part of such principal amount. 

          SECTION
105. Notices, Etc., to Trustee and Company. 

          Any
request, demand, authorization, direction, notice, consent, waiver or Act of
Holders or other document provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with 

9

	
  

 	
  

 
	
  

 	
           (1)
 the Trustee by any Holder or by the Company shall be sufficient for every
 purpose hereunder if made, given, furnished or filed in writing to or with
 the Trustee at its Corporate Trust Office, Attention: Corporate Finance, or 

 
	
  

 	
  

 
	
  

 	
           (2)
 the Company by the Trustee or by any Holder shall be sufficient for every
 purpose hereunder (unless otherwise herein expressly provided) if in writing
 and mailed, first-class postage prepaid, to the Company addressed to the
 attention of the Treasurer of the Company at the address of the Company’s
 principal office specified in the first paragraph of this instrument or at any
 other address previously furnished in writing to the Trustee by the Company. 

 

          SECTION
106. Notice to Holders; Waiver. 

          Where
this Indenture provides for notice to Holders of any event, such notice shall
be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to each Holder affected by
such event, at his address as it appears in the Security Register, not later
than the latest date (if any), and not earlier than the earliest date (if any),
prescribed for the giving of such notice. In any case where notice to Holders
is given by mail, neither the failure to mail such notice, nor any defect in
any notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver. 

          In
case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder. 

          SECTION
107. Conflict with Trust Indenture Act. 

          If
any provision of this Indenture limits, qualifies or conflicts with a provision
of the Trust Indenture Act which is required under such Act to be a part of and
govern this Indenture, the latter provision shall control. If any provision of
this Indenture modifies or excludes any provision of the Trust Indenture Act
which may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be. 

          SECTION
108. Effect of Headings and Table of Contents. 

          The
Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof. 

          SECTION
109. Successors and Assigns. 

          All
covenants and agreements in this Indenture by the Company shall bind its
successors and assigns, whether so expressed or not. 

          SECTION
110. Separability Clause. 

          In
case any provision in this Indenture or in the Securities shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. 

10

          SECTION
111. Benefits of Indenture. 

          Nothing
in this Indenture or in the Securities, express or implied, shall give to any
Person, other than the parties hereto and their successors hereunder and the
Holders, any benefit or any legal or equitable right, remedy or claim under
this Indenture. 

          SECTION
112. Governing Law; Waiver of Trial by Jury. 

          THIS
INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES THEREOF. 

          Each
of the Company and the Trustee irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Indenture or the transactions
contemplated hereby. 

          SECTION
113. Legal Holidays. 

          In
any case where any Interest Payment Date, Redemption Date, Repayment Date or
Stated Maturity of any Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Securities (other than a provision of any Security which specifically states
that such provision shall apply in lieu of this Section 113)) payment of
interest or principal (and premium, if any) need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on the Interest
Payment Date, Redemption Date, Repayment Date or at the Stated Maturity, and no
additional interest shall accrue as the result of such delayed payment. 

          SECTION
114. Counterparts. 

          This
instrument may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument. 

ARTICLE TWO 

SECURITY FORMS

          SECTION
201. Forms Generally. 

          The
Securities of each series and the Trustee’s certificate of authentication shall
be in substantially the form set forth in this Article Two, or in such other
form as shall be established by or pursuant to a Board Resolution or in one or
more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with applicable tax laws or the rules of any securities exchange
or automated quotation system on which the Securities of such series may be
listed or traded or the rules of any Depositary therefor or as may,
consistently herewith, be determined to be appropriate by the officers
executing such Securities, as evidenced by their execution thereof. If the form
or forms of Securities of any series are established by action taken pursuant
to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Corporate Secretary or an Assistant Corporate Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 303 for the authentication and delivery of such
Securities. 

11

          The
definitive Securities of each series shall be typewritten, printed,
lithographed or engraved or produced by any combination of these methods, or
engraved on steel engraved borders, if required by any securities exchange or
automated quotation system on which the Securities of such series may be listed
or traded, or may be produced in any other manner permitted by the rules of any
securities exchange or automated quotation system on which the Securities of
such series may be listed or traded, all as determined by the officers
executing such Securities, as evidenced by their execution of such Securities. 

          SECTION
202. Form of Face of Security. 

[INSERT ANY APPLICABLE LEGENDS] 

GENERAL ELECTRIC COMPANY 

(Title of Security)

	
  

 	
  

 
	
 No. _______

 	
 $_______

 
	
  

 
	
  

 	
 CUSIP No. _______

 

          General
Electric Company, a corporation duly organized and existing under the laws of
the State of New York (herein called the “Company”, which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to _________________, or registered assigns,
the principal sum of ____________ Dollars ($____________) on __________________
[if the Security is to bear interest prior to Maturity, insert — , and to pay
interest thereon from ________________ or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on
_____________ and _____________ in each year, commencing_______________, at the
rate of ___% per annum, until the principal hereof is paid or made available
for payment [if applicable, insert — , provided that any principal and premium,
and any such installment of interest, which is overdue shall bear interest at
the rate of ___% per annum (to the extent permitted by applicable law), from
the dates such amounts are due until they are paid or made available for
payment, and such interest shall be payable on demand]. [If applicable, insert
— The amount of interest payable for any period shall be computed on the basis
of twelve 30-day months and a 360-day year. In the event that any date on which
interest is payable on this Security is not a Business Day, then a payment of
the interest payable on such date will be made on the next succeeding day which
is a Business Day (and without any interest or other payment in respect of any
such delay) with the same force and effect as if made on the date the payment
was originally payable. A “Business Day” shall mean, when used with respect to
any Place of Payment, each Monday, Tuesday, Wednesday, Thursday and Friday which
is not a day on which banking institutions in that Place of Payment are
authorized or obligated by law or regulation to close.] The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be the
____________ or ______________ (whether or not a Business Day), as the case may
be, immediately preceding such Interest Payment Date. Any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated
quotation system on which the Securities of this series may be listed or
traded, and upon such notice as may be required by such exchange or automated
quotation system, all as more fully provided in said Indenture. 

12

          [If
the Security is not to bear interest prior to Maturity, insert — The principal
of this Security shall not bear interest except in the case of a default in
payment of principal upon acceleration, upon redemption or at Stated Maturity
and in such case the overdue principal and any overdue premium shall bear
interest at the rate of ___% per annum (to the extent that the payment of such
interest shall be legally enforceable), from the dates such amounts are due
until they are paid or made available for payment. Interest on any overdue
principal or premium shall be payable on demand.] 

          Payment
of the principal of (and premium, if any) and [if applicable, insert — any
such] interest on this Security will be made at the office or agency of the
Paying Agent maintained for that purpose in ______________, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts [if applicable, insert — ;
provided, however, that at the option of the Company payment of interest 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 in
immediately available funds at such place and to such account as may be
designated in writing by the Person entitled thereto as specified in the
Security Register at least fifteen days prior to the relevant Interest Payment
Date]. 

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

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

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

	
  

 	
  

 	
  

 
	
 Dated:

 	
 GENERAL ELECTRIC COMPANY 

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
 Attest: 

 	
  

 
	
  

 	
  

 
	

 

 	
  

 

          SECTION
203. Form of Reverse of Security. 

          This
Security is one of a duly authorized issue of securities of the Company (herein
called the “Securities”), issued and to be issued in one or more series under
an Indenture, dated as of October 9, 2012 (herein called the “Indenture”, which
term shall have the meaning assigned to it in such instrument), between the
Company and The Bank of New York Mellon, as Trustee (herein called the
“Trustee”, which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof [if applicable, insert —, limited in aggregate principal amount
to $__________________; provided, however, that the authorized aggregate principal
amount of the Securities may be increased above such amount by a Board
Resolution to such effect; and provided further, that additional Securities of
this series may not be issued under the same CUSIP number unless 

13

such additional Securities
and the original Securities of this series are fungible for U.S. federal income
tax purposes]. 

          [If
applicable, insert— The interest rate (or the spread or spread multiplier used
to calculate such interest rate, if applicable) on this Security may be reset
by the Company on _________________ (each an “Optional Reset Date”). The
Company may exercise such option with respect to this Security by notifying the
Trustee of such exercise at least 50 but not more than 60 days prior to an
Optional Reset Date for this Security. If the Company exercises such option,
not later than 40 days prior to each Optional Reset Date, the Trustee shall
transmit, in the manner provided for in Section 106 of the Indenture, to the
Holder of this Security a notice (the “Reset Notice”) indicating that the
Company has elected to reset the interest rate (or the spread or spread
multiplier used to calculate such interest rate, if applicable), and (i) such
new interest rate (or such new spread or spread multiplier, if applicable) and
(ii) the provisions, if any, for redemption during the period from such
Optional Reset Date to the next Optional Reset Date or if there is no such next
Optional Reset Date, to the Stated Maturity of this Security (each such period
a “Subsequent Interest Period”), including the date or dates on which or the
period or periods during which and the price or prices at which such redemption
may occur during the Subsequent Interest Period. 

          Notwithstanding
the foregoing, not later than 20 days prior to the Optional Reset Date, the
Company may, at its option, revoke the interest rate (or the spread or spread
multiplier used to calculate such interest rate, if applicable) provided for in
the Reset Notice and establish an interest rate (or a spread or spread
multiplier used to calculate such interest rate, if applicable) that is higher
than the interest rate (or the spread or spread multiplier, if applicable)
provided for in the Reset Notice, for the Subsequent Interest Period by causing
the Trustee to transmit, in the manner provided for in Section 106 of the
Indenture, notice of such higher interest rate (or such higher spread or spread
multiplier, if applicable) to the Holder of this Security. Such notice shall be
irrevocable. All Securities of this series with respect to which the interest
rate (or the spread or spread multiplier used to calculate such interest rate,
if applicable) is reset on an Optional Reset Date, and with respect to which
the Holders of such Securities have not tendered such Securities for repayment
(or have validly revoked any such tender) pursuant to the next succeeding
paragraph, will bear such higher interest rate (or such higher spread or spread
multiplier, if applicable). 

          The
Holder of this Security will have the option to elect repayment by the Company
of the principal of this Security on each Optional Reset Date at a price equal
to the principal amount hereof plus interest accrued to such Optional Reset
Date. In order to obtain repayment on an Optional Reset Date, the Holder must
follow the procedures set forth in Article Thirteen of the Indenture for
repayment at the option of Holders except that the period for delivery or
notification to the Trustee shall be at least 25 but not more than 35 days
prior to such Optional Reset Date and except that, if the Holder has tendered
this Security for repayment pursuant to the Reset Notice, the Holder may, by
written notice to the Trustee, revoke such tender or repayment until the close
of business on the tenth day before such Optional Reset Date.] 

          [If
applicable, insert — The Stated Maturity of this Security may be extended at
the option of the Company for _____________ (each an “Extension Period”) up to
but not beyond ______________ (the “Final Maturity”). The Company may exercise
such option with respect to this Security by notifying the Trustee of such
exercise at least 50 but not more than 60 days prior to the Stated Maturity of
this Security in effect prior to the exercise of such option (the “Original
Stated Maturity”). If the Company exercises such option, the Trustee shall
transmit, in the manner provided for in Section 106 of the Indenture, to the
Holder of this Security not later than 40 days prior to the Original Stated
Maturity a notice (the “Extension Notice”) indicating (i) the election of the
Company to extend the Maturity, (ii) the new Stated Maturity, (iii) the
interest rate applicable to the Extension Period and (iv) the provisions, if
any, for redemption during such Extension Period. Upon the Trustee’s
transmittal of the Extension Notice, the 

14

Stated Maturity of this
Security shall be extended automatically and, except as modified by the
Extension Notice and as described in the next paragraph, this Security will
have the same terms as prior to the transmittal of such Extension Notice. 

          Notwithstanding
the foregoing, not later than 20 days before the Original Stated Maturity of
this Security, the Company may, at its option, revoke the interest rate
provided for in the Extension Notice and establish a higher interest rate for
the Extension Period by causing the Trustee to transmit, in the manner provided
for in Section 106 of the Indenture, notice of such higher interest rate to the
Holder of this Security. Such notice shall be irrevocable. All Securities of
this series with respect to which the Stated Maturity is extended will bear
such higher interest rate. 

          If
the Company extends the Maturity of this Security, the Holder will have the
option to elect repayment of this Security by the Company on the Original
Stated Maturity at a price equal to the principal amount hereof, plus interest
accrued to such date. In order to obtain repayment on the Original Stated
Maturity once the Company has extended the Maturity hereof, the Holder hereof
must follow the procedures set forth in Article Thirteen of the Indenture for
repayment at the option of Holders, except that the period for delivery or
notification to the Trustee shall be at least 25 but not more than 35 days
prior to the Original Stated Maturity and except that, if the Holder has
tendered this Security for repayment pursuant to an Extension Notice, the
Holder may, by written notice to the Trustee, revoke such tender for repayment
until the close of business on the tenth day before the Original Stated
Maturity.] 

[If
applicable, insert — The Securities of this series are subject to redemption
upon not less than 30 days’, but not more than 60 days’, notice by mail, [if
applicable, insert — (1) on ___________ in any year commencing with the year
_____________ and ending with the year _____ through operation of the sinking
fund for this series at a Redemption Price equal to 100% of the principal
amount, and (2)] at any time [if applicable, insert — on or after
________________, 20___], as a whole or in part, at the election of the
Company, at [if applicable, insert — a redemption price equal to [calculation
to be specified]] with accrued interest to the Redemption Date, but interest
installments whose Stated Maturity is on or prior to such Redemption Date will
be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates
referred to on the face hereof, all as provided in the Indenture.] 

          [If
applicable, insert — The Securities of this series are subject to redemption
upon not less than 30 days’ notice by mail, (1) on _________________ in any
year commencing with the year ____ and ending with the year _____ through
operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of
the principal amount) set forth in the table below, and (2) at any time [if
applicable, insert — on or after ______________], as a whole or in part, at the
election of the Company, at the Redemption Prices for redemption otherwise than
through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below: If redeemed during the 12-month
period beginning _________________ of the years indicated, 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Year

 	
  

 	
 Redemption Price For 

 Redemption Through 

 Operation of the Sinking Fund

 	
  

 	
 Redemption Price For 

 Redemption Otherwise Than Through 

 Operation of the Sinking Fund

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 

and thereafter at a
Redemption Price equal to ___% of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or
otherwise) with accrued interest to the Redemption Date, but interest
installments whose Stated Maturity is on or prior to such Redemption Date will
be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates
referred to on the face hereof, all as provided in the Indenture.] 

15

          [If
applicable, insert — Notwithstanding the foregoing, the Company may not, prior
to ____________, redeem any Securities of this series as contemplated by [if
applicable, insert — Clause (2) of] the preceding paragraph as a part of, or in
anticipation of, any refunding operation by the application, directly or
indirectly, of moneys borrowed having an interest cost to the Company
(calculated in accordance with generally accepted financial practice) of less
than ___% per annum.] 

          [If
applicable, insert — The sinking fund for this series provides for the
redemption on ______________ in each year beginning with the year _____ and
ending with the year _____ of [if applicable, insert — not less than
$___________ (“mandatory sinking fund”) and not more than] $____________
aggregate principal amount of Securities of this series. Securities of this
series acquired or redeemed by the Company otherwise than through [if
applicable, insert — mandatory] sinking fund payments may be credited against
subsequent [if applicable, insert — mandatory] sinking fund payments otherwise
required to be made [if applicable, insert —, in the inverse order in which
they become due].] 

          [If
the Security is subject to redemption of any kind, insert — In the event of
redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in
the name of the Holder hereof upon the cancellation hereof.] 

          [If
applicable, insert — The Securities of this series are not subject to
redemption by the Company prior to their Stated Maturity and will not be
entitled to the benefit of any sinking fund.] 

          The
Indenture contains provisions for satisfaction and discharge of the entire
indebtedness of this Security upon compliance by the Company with certain
conditions set forth in the Indenture. 

          [If
applicable, insert — The Indenture contains provisions for defeasance at any
time of [the entire indebtedness of this Security] [or] [certain covenants and
Events of Default with respect to this Security] [, in each case] upon
compliance with certain conditions set forth in the Indenture.] 

          [If
the Security is not an Original Issue Discount Security, insert — If an Event
of Default with respect to the Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due
and payable in the manner and with the effect provided in the Indenture.] 

          [If
the Security is an Original Issue Discount Security, insert — If an Event of
Default with respect to the Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to — insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal, premium and interest (in each
case to the extent that the payment of such interest shall be legally
enforceable), all of the Company’s obligations in respect of the payment of the
principal of and premium and interest, if any, on the Securities of this series
shall terminate.] 

          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 all series to be affected under
the Indenture at any time by the Company and the Trustee with the consent of
the Holders of a majority in principal amount of the Securities at the time
Outstanding of all series to be affected, treated as one class. 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 Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the 

16

registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

          As
provided in and subject to the provisions of the Indenture, the Holder of this
Security shall not have the right to institute any proceeding with respect to
the Indenture or for the appointment of a receiver or trustee or for any other
remedy thereunder, unless such Holder shall have previously given the Trustee
written notice of a continuing Event of Default with respect to the Securities
of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, the Trustee
shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with
such request, and 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 Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed or
provided for herein.

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

          As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Security is registrable in the Security Register, upon
surrender of this Security for registration of transfer at the office or agency
of the Company in any place where the principal of and any premium and interest
on this Security are payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar duly executed by, the Holder hereof or his attorney duly authorized
in writing, and thereupon one or more new Securities of this series and of like
tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees. No service charge
shall be made for any such registration of transfer or exchange, but the
Company and the Security Registrar 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 Security for registration of transfer, the Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,
whether or not this Security be overdue, and neither the Company, the Trustee
nor any such agent shall be affected by notice to the contrary.

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

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

          THE
INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES THEREOF.

          SECTION
204. Form of Legend for Global Securities.

17

          Unless
otherwise specified as contemplated by Section 301 for the Securities evidenced
thereby, every Global Security authenticated and delivered hereunder shall, in
addition to the provisions contained in Sections 202 and 203, bear a legend in
substantially the following form:

          Unless
this certificate 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 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.

          THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A
DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME
OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.

          SECTION
205. Form of Trustee’s Certificate of Authentication.

          The
Trustee’s certificates of authentication shall be in substantially the
following form:

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

	
  

 	
  

 	
  

 	
  

 
	
 Date:

 	
 The Bank of
 New York Mellon, 

 
	
  

 	
               As
 Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Authorized
 Signatory

 
	
  

 	
  

 	
  

 
	
 ARTICLE THREE

 
	
 THE SECURITIES

 

          SECTION
301. Amount Unlimited; Issuable in Series.

          The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited.

          The
Securities may be issued in one or more series. There shall be established in
or pursuant to a Board Resolution and, subject to Section 303, set forth, or
determined in the manner provided, in an Officer’s Certificate or in a Company
Order, or established in one or more indentures supplemental hereto, prior to
the issuance of Securities of any series:

	
  

 	
  

 
	
  

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

 

18

	
  

 	
  

 
	
  

 	
           (2)
 any limit upon the aggregate principal amount of the Securities of the series
 which may be authenticated and delivered under this Indenture (except for
 Securities authenticated and delivered upon registration of transfer of, or
 in exchange for, or in lieu of, other Securities of the series pursuant to
 Section 304, 305, 306, 906, 1107 or 1305 and except for any Securities which,
 pursuant to Section 303, are deemed never to have been authenticated and
 delivered hereunder); provided, however, that the authorized aggregate
 principal amount of such series may from time to time be increased above such
 amount by a Board Resolution to such effect; provided further, that, if such
 additional Securities are not fungible for U.S. federal income tax purposes
 with the Securities of such series, such additional Securities shall have a
 different CUSIP number;

 
	
  

 	
  

 
	
  

 	
           (3)
 the date or dates on which the principal of any Securities of the series is
 payable, or the method by which such date or dates shall be determined or
 extended;

 
	
  

 	
  

 
	
  

 	
           (4)
 the rate or rates at which the Securities of the series shall bear interest,
 if any, or the method by which such rate or rates shall be determined, the
 date or dates from which such interest shall accrue, or the method by which
 such date or dates shall be determined, the Interest Payment Dates on which
 such interest shall be payable and the Regular Record Date, if any, for the
 interest payable on any Interest Payment Date, or the method by which such
 date or dates shall be determined, and the basis upon which interest shall be
 calculated if other than that of a 360-day year of twelve 30-day months, the
 right, if any, to extend or defer interest payments and the duration of such
 extension or deferral;

 
	
  

 	
  

 
	
  

 	
           (5)
 the place or places where the principal of and any premium and interest on
 any Securities of the series shall be payable, the place or places where the
 Securities of such series may be presented for registration of transfer or exchange,
 and the place or places where notices and demands to or upon the Company in
 respect of the Securities of such series may be made;

 
	
  

 	
  

 
	
  

 	
           (6)
 the period or periods within or the date or dates on which, the price or
 prices at which and the term and conditions upon which any Securities of the
 series may be redeemed, in whole or in part, at the option of the Company
 and, if other than by a Board Resolution, the manner in which any election by
 the Company to redeem the Securities shall be evidenced;

 
	
  

 	
  

 
	
  

 	
           (7)
 the obligation or the right, if any, of the Company to redeem or purchase any
 Securities of the series pursuant to any sinking fund, amortization or
 analogous provisions or at the option of the Holder thereof and the period or
 periods within which, the price or prices at which, the currency or
 currencies (including currency unit or units) in which and the other terms
 and conditions upon which any Securities of the series shall be redeemed or
 purchased, in whole or in part, pursuant to such obligation;

 
	
  

 	
  

 
	
  

 	
           (8)
 if other than denominations of $1,000 and any integral multiple thereof, the
 denominations in which any Securities of the series shall be issuable;

 
	
  

 	
  

 
	
  

 	
           (9)
 if the amount of principal of or any premium or interest on any Securities of
 the series may be determined with reference to an index or pursuant to a
 formula, the manner in which such amounts shall be determined;

 
	
  

 	
  

 
	
  

 	
           (10)
 if other than the currency of the United States of America, the currency,
 currencies or currency units, including composite currencies, in which the
 principal of or any premium or interest on any Securities of the series shall
 be payable and the manner of 

 

19

	
  

 	
  

 
	
  

 	
 determining
 the equivalent thereof in the currency of the United States of America for
 any purpose, including for purposes of the definition of “Outstanding” in Section 101;

 
	
  

 	
  

 
	
  

 	
           (11)
 if the principal of or any premium or interest on any Securities of the
 series is to be payable, at the election of the Company or the Holder
 thereof, in one or more currencies or currency units other than that or those
 in which such Securities are stated to be payable, the currency, currencies
 or currency units in which the principal of or any premium or interest on
 such Securities as to which such election is made shall be payable, the
 period or periods within or the date or dates on which and the terms and
 conditions upon which such election is to be made and the amount so payable
 (or the manner in which such amount shall be determined);

 
	
  

 	
  

 
	
  

 	
           (12)
 the percentage of the principal amount at which such Securities will be
 issued and, if other than the principal amount thereof, the portion of the
 principal amount of Securities of the series that shall be payable upon declaration
 of acceleration of the Maturity thereof pursuant to Section 502 or the method
 by which such portion shall be determined;

 
	
  

 	
  

 
	
  

 	
           (13)
 if the principal amount payable at the Stated Maturity of any Securities of
 the series will not be determinable as of any one or more dates prior to the
 Stated Maturity, the amount which shall be deemed to be the principal amount
 of such Securities as of any such date for any purpose thereunder or
 hereunder, including the principal amount thereof which shall be due and
 payable upon any Maturity other than the Stated Maturity or which shall be
 deemed to be Outstanding as of any date prior to the Stated Maturity (or, in
 any such case, the manner in which such amount deemed to be the principal
 amount shall be determined);

 
	
  

 	
  

 
	
  

 	
           (14)
 if applicable, that the Securities of the series, in whole or any specified
 part, shall not be defeasible or shall be defeasible in a manner varying from
 Section 1402 and Section 1403 and, if other than by a Board Resolution, the
 manner in which any election by the Company to defease such Securities shall
 be evidenced;

 
	
  

 	
  

 
	
  

 	
           (15)
 whether the Securities of the series, or any portion thereof, shall initially
 be issuable in the form of a temporary Global Security representing all or
 such portion of the Securities of such series and provisions for the exchange
 of such temporary Global Security for one or more permanent Global Securities
 or definitive Securities of such series;

 
	
  

 	
  

 
	
  

 	
           (16)
 if applicable, that any Securities of the series, or any portion thereof,
 shall be issuable in whole or in part in the form of one or more Global
 Securities and, in such case, the respective Depositaries for such Global
 Securities, the form of any legend or legends which shall be borne by any
 such Global Security in addition to or in lieu of that set forth in Section
 204 and any circumstances in addition to or in lieu of those set forth in
 Clause (2) of the last paragraph of Section 305 in which any such Global
 Security may be exchanged in whole or in part for Securities registered, and
 any transfer of such Global Security in whole or in part may be registered,
 in the name or names of Persons other than the Depositary for such Global
 Security or a nominee thereof;

 
	
  

 	
  

 
	
  

 	
           (17)
 if applicable, that the Securities of the series, in whole or any specified
 part, shall be subject to the optional interest reset provisions of Section
 307(b);

 
	
  

 	
  

 
	
  

 	
           (18)
 if applicable, that the Securities of the series, in whole or any specified part,
 shall be subject to the optional extension of maturity provisions of Section
 308;

 

20

	
  

 	
  

 
	
  

 	
           (19)
 any deletion or addition to or change in the Events of Default which applies
 to any Securities of the series and any change in the right of the Trustee or
 the requisite Holders of such Securities to declare the principal amount
 thereof due and payable pursuant to Section 502 or in any other remedies
 provided in Article Five;

 
	
  

 	
  

 
	
  

 	
           (20)
 any addition to or change in the covenants set forth in Article Ten which
 applies to Securities of the series;

 
	
  

 	
  

 
	
  

 	
           (21)
 the additions or changes, if any, to this Indenture with respect to the
 Securities of such series as shall be necessary to permit or facilitate the
 issuance of the Securities of such series in bearer form, registrable or not
 registrable as to principal, and with or without interest coupons;

 
	
  

 	
  

 
	
  

 	
           (22)
 the appointment of any Paying Agent or Agents for the Securities of such
 series, if other than the Trustee;

 
	
  

 	
  

 
	
  

 	
           (23)
 the terms of any right to convert or exchange Securities of such series into
 any other securities or property of the Company or of any other corporation
 or Person, and the additions or changes, if any, to this Indenture with
 respect to the Securities of such series to permit or facilitate such
 conversion or exchange;

 
	
  

 	
  

 
	
  

 	
           (24)
 the terms and conditions, if any, pursuant to which the Securities of the
 series are secured;

 
	
  

 	
  

 
	
  

 	
           (25)
 any restriction or condition on the transferability of the Securities of such
 series;

 
	
  

 	
  

 
	
  

 	
           (26)
 the exchanges, if any, on which the Securities may be listed; and

 
	
  

 	
  

 
	
  

 	
           (27)
 any other additional, eliminated or changed terms of the Securities of such
 series (which terms shall not be inconsistent with the provisions of this
 Indenture, except as permitted by Section 901).

 

          All
Securities of any one series shall be substantially identical except as to
denomination and except as may otherwise be provided herein or in or pursuant
to the Board Resolution referred to above and (subject to Section 303) set
forth, or determined in the manner provided, in the Officer’s Certificate or
Company Order referred to above or in any such indenture supplemental hereto.

          If
any of the terms of the Securities of any series are established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Corporate Secretary or an Assistant Corporate
Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officer’s Certificate or Company Order setting forth the terms
or the manner of determining the terms of the series.

          With
respect to Securities of a series offered in a Periodic Offering, the Board Resolution
(or action taken pursuant thereto), Officer’s Certificate, Company Order or
supplemental indenture referred to above may provide general terms or
parameters for Securities of such series and provide either that the specific
terms of particular Securities of such series shall be specified in a further
Company Order or that such terms shall be determined by the Company in
accordance with other procedures specified in the Company Order contemplated by
the third paragraph of Section 303.

          SECTION
302. Denominations.

21

          The
Securities of each series shall be issuable only in registered form without
coupons and only in such denominations as shall be specified as contemplated by
Section 301. In the absence of any such specified denomination with respect to
the Securities of any series, the Securities of such series shall be issuable
in denominations of $1,000 and any integral multiple thereof.

          SECTION
303. Execution, Authentication, Delivery and Dating.

          The
Securities shall be executed on behalf of the Company by its Chairman of the
Board, its Chief Executive Officer, its Vice Chairman of the Board, its Chief
Financial Officer, its President or one of its Vice Presidents, and attested by
its Corporate Secretary, an Assistant Corporate Secretary, an Associate
Secretary or an Attesting Secretary. The signature of any of these officers on
the Securities may be manual or facsimile.

          Securities
bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Company shall bind the Company, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at
the date of such Securities.

          At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities;
provided, however, that in the case of Securities offered in a Periodic
Offering, the Trustee shall authenticate and deliver such Securities from time
to time in accordance with such other procedures (including the receipt by the
Trustee of oral or electronic instructions from the Company or its duly
authorized agents, promptly confirmed in writing) acceptable to the Trustee as
may be specified by or pursuant to a Company Order delivered to the Trustee
prior to the time of the first authentication of Securities of such series. If
the form or terms of the Securities of the series have been established by or pursuant
to one or more Board Resolutions as permitted by Sections 201 and 301, in
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating,

	
  

 	
  

 
	
  

 	
           (1)
 if the form or forms of such Securities have been established by or pursuant
 to Board Resolution as permitted by Section 201, that such form or forms have
 been established in conformity with the provisions of this Indenture;

 
	
  

 	
  

 
	
  

 	
           (2)
 if the terms of such Securities have been, or in the case of Securities of a
 series offered in a Periodic Offering, will be, established by or pursuant to
 Board Resolution as permitted by Section 301, that such terms have been, or
 in the case of Securities of a series offered in a Periodic Offering, will
 be, established in conformity with the provisions of this Indenture, subject,
 in the case of Securities of a series offered in a Periodic Offering, to any
 conditions specified in such Opinion of Counsel; and

 
	
  

 	
  

 
	
  

 	
           (3)
 that such Securities, when authenticated and delivered by the Trustee and
 issued by the Company in the manner and subject to any conditions specified
 in such Opinion of Counsel, will constitute valid and legally binding
 obligations of the Company enforceable in accordance with their terms,
 subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
 moratorium and similar laws of general applicability relating to or affecting
 creditors’ rights and to general equity principles.

 

22

If such forms
or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this
Indenture will affect the Trustee’s own rights, duties or immunities under the
Securities and this Indenture or otherwise in a manner which is not reasonably
acceptable to the Trustee.

          Notwithstanding
the provisions of Section 301 and of the preceding paragraph, if all Securities
of a series are not to be originally issued at one time, it shall not be
necessary to deliver the Officer’s Certificate or Company Order otherwise
required pursuant to Section 301 or the Company Order and Opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the
authentication of each Security of such series if such documents are delivered
at or prior to the authentication upon original issuance of the first Security
of such series to be issued. This paragraph shall not be applicable to
Securities of a series that are issued pursuant to the proviso to Section
301(2).

          Each
Security shall be dated the date of its authentication.

          With
respect to Securities of a series offered in a Periodic Offering, the Trustee
may rely, as to the authorization by the Company of any of such Securities, the
form or forms and terms thereof and the legality, validity, binding effect and
enforceability thereof, upon the Opinion of Counsel and the other documents
delivered pursuant to Sections 201 and 301 and this Section, as applicable, in
connection with the first authentication of Securities of such series.

          No
Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security a certificate
of authentication substantially in the form provided for herein executed by the
Trustee by the manual signature of one of its authorized signatories, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 310, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.

          SECTION
304. Temporary Securities.

          Pending
the preparation of definitive Securities of any series, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities which are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities of such series in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.

          If
temporary Securities of any series are issued, the Company will cause
definitive Securities of that series to be prepared without unreasonable delay.
After the preparation of definitive Securities of such series, the temporary
Securities of such series shall be exchangeable for definitive Securities of
such series upon surrender of the temporary Securities of such series at the
office or agency of the Company in a Place of Payment for that series, without
charge to the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor one or more definitive Securities
of the same series, of any authorized denominations and of like tenor and
aggregate principal amount. Until so exchanged, the temporary Securities of any
series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series and tenor.

23

          SECTION
305. Registration, Registration of Transfer and Exchange.

          The
Company shall cause to be kept at the Corporate Trust Office of the Trustee a
register (the register maintained in such office being herein sometimes
referred to as the “Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Securities and of transfers of
Securities. The Trustee is hereby appointed
“Security Registrar” for the
purpose of registering Securities and transfers of Securities as herein
provided. If in accordance with Section 301(5), the Company designates a
transfer agent (in addition to the Security Registrar) with respect to any
series of Securities, the Company may at any time rescind the designation of
any such transfer agent or approve a change in the location through which any
such transfer agent acts, provided that the Company maintains a transfer agent
in each Place of Payment for such series. The Company may at any time designate
additional transfer agents with respect to any series of Securities.

          Upon
surrender for registration of transfer of any Security of a series at the
office or agency of the Company in a Place of Payment for that series, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same series, of any authorized denominations and of like tenor and
aggregate principal amount.

          At
the option of the Holder, Securities of any series may be exchanged for other
Securities of the same series, of any authorized denominations and of like
tenor and aggregate principal amount, upon surrender of the Securities to be
exchanged at such office or agency. Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.

          All
Securities issued upon any registration of transfer or exchange of Securities
shall be the valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.

          Every
Security presented or surrendered for registration of transfer or for exchange
shall (if so required by the Company or the Trustee) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed, by the Holder thereof or his
attorney duly authorized in writing.

          No
service charge shall be made for any registration of transfer or exchange of
Securities, but the Company and the Security Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities.

          If
the Securities of any series are to be redeemed, neither the Trustee nor the
Company shall be required, pursuant to the provisions of this Section 305, (A)
to issue, register the transfer of or exchange any Securities of any series (or
of any series and specified tenor, as the case may be) during a period
beginning at the opening of business 15 days before the day of the mailing of a
notice of redemption of any such Securities selected for redemption under
Section 1103 and ending at the close of business on the day of such mailing, or
(B) to register the transfer of or exchange any Security so selected for
redemption, in whole or in part, except, in the case of any Security to be
redeemed in part, any portion not to be redeemed.

          The
provisions of Clauses (1), (2), (3) and (4) below shall apply only to Global
Securities:

24

	
  

 	
  

 
	
  

 	
           (1)
 Each Global Security authenticated under this Indenture shall be registered
 in the name of the Depositary designated for such Global Security or a
 nominee thereof and delivered to such Depositary or a nominee thereof or
 custodian therefor, and each such Global Security shall constitute a single
 Security for all purposes of this Indenture.

 
	
  

 	
  

 
	
  

 	
           (2)
 Notwithstanding any other provision in this Indenture, no Global Security may
 be exchanged in whole or in part for Securities registered, and no transfer
 of a Global Security in whole or in part may be registered, in the name of
 any Person other than the Depositary for such Global Security or a nominee
 thereof unless (A) such Depositary (i) has notified the Company that it is
 unwilling or unable to continue as Depositary for such Global Security, (ii)
 defaults in the performance of its duties as Depositary, or (iii) has ceased
 to be a clearing agency registered under the Exchange Act at a time when the
 Depositary is required to be so registered to act as depositary, in each case,
 unless the Company has approved a successor Depositary within 90 days after
 receipt of such notice or after it has become aware of such default or
 cessation, (B) the Company in its sole discretion determines, subject to the
 procedures of the Depositary, that such Global Security will be so
 exchangeable or transferable or (C) there shall exist such circumstances, if
 any, in addition to or in lieu of the foregoing as have been specified for
 this purpose as contemplated by Section 301.

 
	
  

 	
  

 
	
  

 	
           (3)
 Subject to Clause (2) above, any exchange of a Global Security for other
 Securities may be made in whole or in part, and all Securities issued in
 exchange for a Global Security or any portion thereof shall be registered in
 such names as the Depositary for such Global Security shall direct.

 
	
  

 	
  

 
	
  

 	
           (4)
 Every Security authenticated and delivered upon registration of transfer of,
 or in exchange for or in lieu of, a Global Security or any portion thereof,
 whether pursuant to this Section 305, Section 304, 306, 906, 1107 or 1305 or
 otherwise, shall be authenticated and delivered in the form of, and shall be,
 a Global Security, unless such Security is registered in the name of a Person
 other than the Depositary for such Global Security or a nominee thereof.

 

          SECTION
306. Mutilated, Destroyed, Lost and Stolen Securities.

          If
any mutilated Security is surrendered to the Trustee together with such
security or indemnity as may be required by the Company or the Trustee to save
each of them harmless, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not
contemporaneously outstanding and shall cancel and dispose of such mutilated
Security in accordance with its customary procedures.

          If
there shall be delivered to the Company and the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Security has been acquired by a bona fide purchaser,
the Company shall execute and the Trustee shall authenticate and deliver, in
lieu of any such destroyed, lost or stolen Security, a new Security of the same
series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding. If, after the delivery of such new Security, a
bona fide purchaser of the original Security in lieu of which such new Security
was issued presents for payment or registration such original Security, the
Trustee shall be entitled to recover such new Security from the party to whom
it was delivered or any party taking therefrom, except a bona fide purchaser,
and shall be entitled to recover upon the security or indemnity provided
therefor to the extent of any loss, damage, cost or expense incurred by the
Company and the Trustee in connection therewith and shall cancel and dispose of
such new Security in accordance with its customary procedures.

25

          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 306, 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 counsel to the Company and the fees and
expenses of the Trustee, its agents and counsel) connected therewith.

          Every
new Security of any series issued pursuant to this Section 306 in lieu of any
destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series duly issued hereunder.

          The
provisions of this Section 306 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
307. Payment of Interest; Interest Rights Preserved; Optional Interest Reset.

                    (a)
Except as otherwise provided as contemplated by Section 301 with respect to any
series of Securities, interest on any Security of any series 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 that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest in respect of Securities of such series, except that, unless
otherwise provided in the Securities of such series, interest payable on the
Stated Maturity of the principal of a Security shall be paid to the Person to
whom principal is paid. The initial payment of interest on any Security of any
series which is issued between a Regular Record Date and the related Interest
Payment Date shall be payable as provided in such Security or in or pursuant to
the Board Resolution, Officer’s Certificate, Company Order or supplemental
indenture pursuant to Section 301 with respect to the related series of
Securities. Except in the case of a Global Security, at the option of the
Company, interest on any series of Securities may be paid (i) by check mailed
to the address of the Person entitled thereto as it shall appear on the
Security Register of such series or (ii) by wire transfer in immediately
available funds at such place and to such account as designated in writing by
the Person entitled thereto as specified in the Security Register of such
series at least fifteen days prior to the relevant Interest Payment Date.

          Any
Paying Agents will be identified in accordance with Section 301, except for the
Trustee, who has been appointed as Paying Agent for the Securities as provided
in the definition of “Paying Agent” contained in Section 101. The Company may at
any time designate additional Paying Agents or rescind the designation of any
Paying Agent; however, the Company at all times will be required to maintain a
Paying Agent in each Place of Payment for each series of Securities.

          Unless
otherwise provided as contemplated by Section 301 with respect to any series of
Securities, any interest on any Security of any series which is payable, but is
not timely paid or duly provided for, on any Interest Payment Date for
Securities of such series (herein called
“Defaulted Interest”) shall forthwith cease to be payable to the
registered Holder on the relevant Regular Record Date by virtue of having been
such Holder, and such Defaulted Interest may 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 of such series in respect of which
 interest is in default (or

 

26

	
  

 	
  

 
	
  

 	
 their
 respective Predecessor Securities) are registered at the close of business on
 a Special Record Date for the payment of such Defaulted Interest, which shall
 be fixed in the following manner. The Company shall notify the Trustee in
 writing of the amount of Defaulted Interest proposed to be paid on each
 Security of such series and the date of the proposed payment, and at the same
 time the Company shall deposit with the Trustee an amount of money equal to
 the aggregate amount proposed to be paid in respect of such Defaulted
 Interest or shall make arrangements satisfactory to the Trustee for such
 deposit prior to the date of the proposed payment, such money when deposited
 to be held in trust for the benefit of the Persons entitled to such Defaulted
 Interest as provided in this Clause (1). Thereupon the Trustee shall fix a
 Special Record Date for the payment of such Defaulted Interest which shall be
 not more than 15 days and not less than 10 days prior to the date of the
 proposed payment and not less than 10 days after the receipt by the Trustee
 of the notice of the proposed payment. The Trustee shall promptly notify the
 Company of such Special Record Date and, in the name and at the expense of
 the Company, shall cause notice of the proposed payment of such Defaulted
 Interest and the Special Record Date therefor to be given to each Holder of
 Securities of such series in the manner set forth in Section 106, not less
 than 10 days prior to such Special Record Date. Notice of the proposed
 payment of such Defaulted Interest and the Special Record Date therefor
 having been so mailed, such Defaulted Interest shall be paid to the Persons
 in whose names the Securities of such series (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 (2).

 
	
  

 	
  

 
	
  

 	
           (2)
 The Company may make payment of any Defaulted Interest on the Securities of
 any series in any other lawful manner not inconsistent with the requirements
 of any securities exchange or automated quotation system on which such
 Securities may be listed or traded, and upon such notice as may be required
 by such exchange or automated quotation system, 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 307, 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 rights to interest accrued and unpaid, and to
accrue, which were carried by such other Security.

                    (b)
The provisions of this Section 307(b) may be made applicable to any series of
Securities pursuant to Section 301 (with such modifications, additions or
substitutions as may be specified pursuant to such Section 301). The interest
rate (or the spread or spread multiplier used to calculate such interest rate,
if applicable) on any Security of such series may be reset by the Company on
the date or dates specified on the face of such Security (each an “Optional
Reset Date”). The Company may exercise such option with respect to such
Security by notifying the Trustee of such exercise at least 50 but not more
than 60 days prior to an Optional Reset Date for such Security, such notice to
contain the information to be included in the Trustee’s notice referred to in
the following sentence. If the Company exercises such option, not later than 40
days prior to each Optional Reset Date, the Trustee shall transmit, in the
manner provided for in Section 106, to the Holder of any such Security a notice
(the “Reset Notice”) indicating that the Company has elected to reset the
interest rate (or the spread or spread multiplier used to calculate such
interest rate, if applicable), and (i) such new interest rate (or such new
spread or spread multiplier, if applicable) and (ii) the provisions, if any,
for redemption during the period from such Optional Reset Date to the next
Optional Reset Date or if there is no such next Optional Reset Date, to the
Stated Maturity of such Security (each such period a “Subsequent Interest
Period”), including the date or dates on which or the period or periods during
which and the price or prices at which such redemption may occur during the
Subsequent Interest Period.

27

          Notwithstanding
the foregoing, not later than 20 days prior to the Optional Reset Date, the
Company may, at its option, revoke the interest rate (or the spread or spread
multiplier used to calculate such interest rate, if applicable) provided for in
the Reset Notice and establish an interest rate (or a spread or spread
multiplier used to calculate such interest rate, if applicable) that is higher
than the interest rate (or the spread or spread multiplier, if applicable)
provided for in the Reset Notice, for the Subsequent Interest Period by causing
the Trustee to transmit, in the manner provided for in Section 106, notice of
such higher interest rate (or such higher spread or spread multiplier, if
applicable) to the Holder of such Security. Such notice shall be irrevocable.
All Securities with respect to which the interest rate (or the spread or spread
multiplier used to calculate such interest rate, if applicable) is reset on an
Optional Reset Date, and with respect to which the Holders of such Securities
have not tendered such Securities for repayment (or have validly revoked any
such tender) pursuant to the next succeeding paragraph, will bear such higher
interest rate (or such higher spread or spread multiplier, if applicable).

          The
Holder of any such Security will have the option to elect repayment by the
Company of the principal of such Security on each Optional Reset Date at a
price equal to the principal amount thereof plus interest accrued to such
Optional Reset Date. In order to obtain repayment on an Optional Reset Date,
the Holder must follow the procedures set forth in Article Thirteen for
repayment at the option of Holders except that the period for delivery or
notification to the Trustee shall be at least 25 but not more than 35 days
prior to such Optional Reset Date and except that, if the Holder has tendered
any Security for repayment pursuant to the Reset Notice, the Holder may, by
written notice to the Trustee, revoke such tender or repayment until the close
of business on the tenth day before such Optional Reset Date.

          Subject
to the foregoing provisions of this Section 307 and Section 305, 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 rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.

          SECTION
308. Optional Extension of Maturity.

          The
provisions of this Section 308 may be made applicable to any series of
Securities pursuant to Section 301 (with such modifications, additions or
substitutions as may be specified pursuant to such Section 301). The Stated
Maturity of any Security of such series may be extended at the option of the
Company for the period or periods specified on the face of such Security (each
an “Extension Period”) up to but not beyond the date (the “Final Maturity”) set
forth on the face of such Security. The Company may exercise such option with
respect to any Security by notifying the Trustee of such exercise at least 50
but not more than 60 days prior to the Stated Maturity of such Security in
effect prior to the exercise of such option (the “Original Stated Maturity”),
such notice to contain the information to be included in the Trustee’s notice
referred to in the following sentence. If the Company exercises such option,
the Trustee shall transmit, in the manner provided for in Section 106, to the
Holder of such Security not later than 40 days prior to the Original Stated
Maturity a notice (the “Extension Notice”) indicating (i) the election of the
Company to extend the Maturity, (ii) the new Stated Maturity, (iii) the
interest rate applicable to the Extension Period and (iv) the provisions, if
any, for redemption during such Extension Period. Upon the Trustee’s
transmittal of the Extension Notice, the Stated Maturity of such Security shall
be extended automatically and, except as modified by the Extension Notice and
as described in the next paragraph, such Security will have the same terms as
prior to the transmittal of such Extension Notice.

          Notwithstanding
the foregoing, not later than 20 days before the Original Stated Maturity of
such Security, the Company may, at its option, revoke the interest rate
provided for in the Extension Notice and establish a higher interest rate for
the Extension Period by causing the Trustee to transmit, in the manner provided
for in Section 106, notice of such higher interest rate to the Holder of such
Security.

28

Such notice
shall be irrevocable. All Securities with respect to which the Stated Maturity
is extended will bear such higher interest rate.

          If
the Company extends the Maturity of any Security, the Holder will have the
option to elect repayment of such Security by the Company on the Original
Stated Maturity at a price equal to the principal amount thereof, plus interest
accrued to such date. In order to obtain repayment on the Original Stated
Maturity once the Company has extended the Maturity thereof, the Holder must
follow the procedures set forth in Article Thirteen for repayment at the option
of Holders, except that the period for delivery or notification to the Trustee shall
be at least 25 but not more than 35 days prior to the Original Stated Maturity
and except that, if the Holder has tendered any Security for repayment pursuant
to an Extension Notice, the Holder may, by written notice to the Trustee,
revoke such tender for repayment until the close of business on the tenth day
before the Original Stated Maturity.

          SECTION
309. Persons Deemed Owners.

          Prior
to due presentment of a Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name such Security is registered as the owner of such Security for the
purpose of receiving payment of principal of and any premium and (subject to
Section 307) any interest on such Security and (subject to the record date
provisions of Section 104) for all other purposes whatsoever, whether or not
such Security be overdue, and neither the Company, the Trustee nor any agent of
the Company or the Trustee shall be affected by notice to the contrary.

          SECTION
310. Cancellation.

          All
Securities surrendered for payment, redemption, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee and shall be
promptly canceled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold, and all Securities so delivered shall be
promptly canceled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section 310,
except as expressly permitted by this Indenture. All canceled Securities held
by the Trustee shall be treated in accordance with its document retention
policies.

          SECTION
311. Computation of Interest; Usury Not Intended.

          Except
as otherwise specified as contemplated by Section 301 for Securities of any
series, interest on the Securities of each series shall be computed on the
basis of a 360-day year of twelve 30-day months.

          The
amount of interest (or amounts deemed to be interest under applicable law)
payable or paid on any Security shall be limited to an amount which shall not
exceed the maximum nonusurious rate of interest allowed by the applicable laws
of the State of New York, or any applicable law of the United States permitting
a higher maximum nonusurious rate that preempts such applicable New York law,
which could lawfully be contracted for, taken, reserved, charged or received
(the “Maximum Interest Rate”). If, as a
result of any circumstances whatsoever, the Company or any other Person is
deemed to have paid interest (or amounts deemed to be interest under applicable
law) or any Holder of a Security is deemed to have contracted for, taken,
reserved, charged or received interest (or amounts deemed to be interest under
applicable law), in excess of the Maximum Interest Rate, then, ipso facto, the
obligation to 

29

be fulfilled
shall be reduced to the limit of validity, and if under any such circumstance,
the Trustee, acting on behalf of the Holders, or any Holder shall ever receive
interest or anything that might be deemed interest under applicable law that
would exceed the Maximum Interest Rate, such amount that would be excessive
interest shall be applied to the reduction of the principal amount owing on the
applicable Security or Securities and not to the payment of interest, or if
such excessive interest exceeds the unpaid principal balance of any such
Security or Securities, such excess shall be refunded to the Company; provided
that the Company and not the Trustee shall be responsible for collecting any
such refund from the Holders. In addition, for purposes of determining whether
payments in respect of any Security are usurious, all sums paid or agreed to be
paid with respect to such Security for the use, forbearance or detention of
money shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full term of such Security.

          SECTION
312. CUSIP or ISIN Numbers.

          The
Company in issuing the Securities may use “CUSIP” or “ISIN” numbers (if then
generally in use), and, if so, the Trustee shall use “CUSIP” or “ISIN” numbers
in notices of redemption as a convenience to Holders; provided 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 numbers. The Company shall
promptly notify the Trustee in writing of any change in “CUSIP” or “ISIN”
numbers.

ARTICLE FOUR

SATISFACTION AND DISCHARGE

          SECTION
401. Satisfaction and Discharge of Indenture.

          This
Indenture shall upon Company Request cease to be of further effect (except as
to any surviving rights of registration of transfer or exchange of Securities
herein expressly provided for and as otherwise provided in this Section 401),
and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture,
when

	
  

 	
  

 	
  

 
	
  

 	
 (1) either

 
	
  

 	
  

 
	
  

 	
           (A)
 all Securities theretofore authenticated and delivered (other than (i)
 Securities which have been destroyed, lost or stolen and which have been
 replaced or paid as provided in Section 306 and (ii) Securities for whose
 payment money has theretofore been deposited in trust or segregated and held
 in trust by the Company and thereafter repaid to the Company or discharged
 from such trust, as provided in Section 1003) have been delivered to the
 Trustee for cancellation; or

 
	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i) have
 become due and payable, or

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii) will
 become due and payable at their Stated Maturity within one year of the date
 of deposit, or

 

30

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (iii)
 are to be called for redemption within one year under arrangements
 satisfactory to the Trustee for the giving of notice of redemption by the
 Trustee in the name, and at the expense, of the Company,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           and
 the Company, in the case of (i), (ii) or (iii) above, has deposited or caused
 to be deposited with the Trustee as trust funds in trust for such purpose
 money in an amount sufficient to pay and discharge the entire indebtedness on
 such Securities not theretofore delivered to the Trustee for cancellation,
 for principal and any premium and interest to the date of such deposit (in
 the case of Securities which have become due and payable) or to the Stated
 Maturity or Redemption Date, as the case may be;

 
	
  

 	
  

 	
  

 
	
  

 	
           (2)
 the Company has paid or caused to be paid all other sums payable hereunder by
 the Company; and

 
	
  

 	
  

 
	
  

 	
           (3)
 the Company has delivered to the Trustee an Officer’s Certificate and an
 Opinion of Counsel, each stating that all conditions precedent herein
 provided for relating to the satisfaction and discharge of this Indenture
 have been complied with.

 

          Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607 and, if money shall have been
deposited with the Trustee pursuant to subclause (B) of Clause (1) of this
Section 401, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.

          SECTION
402. Application of Trust Money.

          Subject
to the provisions of the last paragraph of Section 1003, all money deposited
with the Trustee pursuant to Section 401 shall be held in trust and applied by
it, in accordance with the provisions of the Securities and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal and any premium and interest for whose
payment such money has been deposited with the Trustee.

ARTICLE FIVE

REMEDIES

          SECTION
501. Events of Default.

          “Event
of Default”, wherever used herein with respect to the Securities of any series,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

	
  

 	
  

 
	
  

 	
           (1)
 default in the payment of any interest upon any Security of that series when
 it becomes due and payable, and continuance of such default for a period of
 30 days; or

 
	
  

 	
  

 
	
  

 	
           (2)
 default in the payment of the principal of or any premium on any Security of
 that series at its Maturity; or

 
	
  

 	
  

 
	
  

 	
           (3)
 default in the deposit of any sinking fund payment, when and as due by the
 terms of a Security of that series, and continuance of such default for a
 period of 30 days; or

 

31

	
  

 	
  

 
	
  

 	
           (4)
 default in the performance, or breach, in any material respect, of any
 covenant or warranty of the Company in this Indenture with respect to a
 Security of that series (other than a covenant or warranty a default in the
 performance of which or the breach of which is elsewhere in this Section 501
 specifically dealt with or which has expressly been included in this
 Indenture solely for the benefit of series of Securities other than that
 series), and continuance of such default or breach for a period of 90 days
 after there has been given, by registered or certified mail, to the Company
 by the Trustee or to the Company and the Trustee by the Holders of at least
 25% in principal amount of the Outstanding Securities of that series a
 written notice specifying such default or breach and requiring it to be
 remedied and stating that such notice is a “Notice of Default” under this
 Indenture; or

 
	
  

 	
  

 
	
  

 	
           (5)
 the entry by a court having jurisdiction in the premises of (A) a decree or
 order for relief in respect of the Company in an involuntary case or
 proceeding under any applicable federal or state bankruptcy, insolvency,
 reorganization or other similar law or (B) a decree or order adjudging the
 Company a bankrupt or insolvent, or approving as properly filed a petition
 seeking reorganization, arrangement, adjustment or composition of or in
 respect of the Company under any applicable federal or state law, or
 appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
 or other similar official of the Company or of any substantial part of its
 property, or ordering the winding up or liquidation of its affairs, and the
 continuance of any such decree or order for relief or any such other decree
 or order unstayed and in effect for a period of 90 consecutive days; or

 
	
  

 	
  

 
	
  

 	
           (6)
 the commencement by the Company of a voluntary case or proceeding under any
 applicable federal or state bankruptcy, insolvency, reorganization or other
 similar law or of any other case or proceeding to be adjudicated a bankrupt
 or insolvent, or the consent by it to the entry of a decree or order for
 relief in respect of the Company in an involuntary case or proceeding under
 any applicable federal or state bankruptcy, insolvency, reorganization or
 other similar law or to the commencement of any bankruptcy or insolvency case
 or proceeding against it, or the filing by it of a petition or answer or
 consent seeking reorganization or relief under any applicable federal or
 state law, or the consent by it to the filing of such petition or to the
 appointment of or taking possession by a custodian, receiver, liquidator,
 assignee, trustee, sequestrator or other similar official of the Company or
 of any substantial part of its property, or the making by it of an assignment
 of a substantial part of its property for the benefit of creditors, or the
 admission by it in writing of its inability to pay its debts generally as
 they become due, or the taking of corporate action by the Company in
 furtherance of any such action; or

 
	
  

 	
  

 
	
  

 	
           (7)
 any other Event of Default provided with respect to Securities of that
 series,

 

          provided,
however, that no event described in Clause (4) above
shall constitute an Event of Default hereunder until a Responsible Officer has
actual knowledge thereof or has received written notice thereof as contemplated
in Section 602.

          Notwithstanding
the foregoing provisions of this Section 501, if the principal or any premium
or interest on any Security is payable in a currency other than the currency of
the United States of America and such currency is not available to the Company
for making payment thereof due to the imposition of exchange controls or other
circumstances beyond the control of the Company, the Company will be entitled to
satisfy its obligations to Holders of the Securities by making such payment in
the currency of the United States of America in an amount equal to the currency
of the United States of America equivalent of the amount payable in such other
currency, as determined by the Trustee by reference to the noon buying rate in
The City of New York for cable transfers for such currency (“Exchange Rate”),
as such Exchange Rate is reported or otherwise made available by the Federal
Reserve Bank of New York 

32

on the date of
such payment, or, if such rate is not then available, on the basis of the most
recently available Exchange Rate. Notwithstanding the foregoing provisions of
this Section 501, any payment made under such circumstances in the currency of
the United States of America where the required payment is in a currency other
than the currency of the United States of America will not constitute an Event
of Default under this Indenture.

          SECTION
502. Acceleration of Maturity; Rescission and Annulment.

          If
an Event of Default (other than an Event of Default specified in Section 501(7)
which is common to all Outstanding series of Securities) with respect to
Securities of any series at the time Outstanding occurs and is continuing, then
in every such case the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Securities of that series may declare the principal
amount of all the Securities of that series (or, if any Securities of that
series are Original Issue Discount Securities, such portion of the principal
amount of such Securities as may be specified by the terms thereof) to be due
and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable. If an
Event of Default under Section 501(7) which is common to all Outstanding series
of Securities occurs and is continuing, then in such case, the Trustee or the
Holders of not less than 25% in aggregate principal amount of all the
Securities then Outstanding hereunder (treated as one class), by a notice in
writing to the Company (and to the Trustee if given by Holders) may declare the
principal amount (or, if any Securities are Original Issue Discount Securities,
such portion of the principal amount as may be specified by the terms thereof)
of all the Securities then Outstanding to be due and payable immediately, and
upon any such declaration such principal amount (or specified amount) shall
become immediately due and payable.

          At
any time after such a declaration of acceleration with respect to Securities of
any series has been made and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter provided in this
Article Five, the Event of Default giving rise to such declaration of
acceleration shall, without further act, be deemed to have been waived, and
such declaration and its consequences shall, without further act, be deemed to
have been rescinded and annulled, if:

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (1)
 the Company has paid or deposited with the Trustee a sum sufficient to pay:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A)
 all overdue installments of interest on all Securities of that series,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)
 the principal of (and premium, if any, on) any Securities of that series
 which have become due otherwise than by such declaration of acceleration and
 any interest thereon at the rate or rates prescribed therefor in such
 Securities,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C)
 to the extent that payment of such interest is lawful, interest upon overdue
 interest at the rate or rates prescribed therefor in such Securities, and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (D)
 all sums paid or advanced by the Trustee hereunder and the reasonable
 compensation, expenses, disbursements and advances of the Trustee, its agents
 and counsel;

 
	
  

 	
  

 	
  

 
	
  

 	
           (2)
 all Events of Default with respect to Securities of that series, other than
 the non-payment of the principal of Securities of that series which have
 become due solely by such declaration of acceleration, have been cured or
 waived as provided in Section 513.

 

No such
rescission shall affect any subsequent default or impair any right consequent
thereon.

33

          SECTION
503. Collection of Indebtedness and Suits for Enforcement by Trustee.

	
  

 	
  

 
	
  

 	
 The Company
 covenants that if:

 
	
  

 	
  

 
	
  

 	
           (1)
 default is made in the payment of any interest on any Security when such
 interest becomes due and payable and such default continues for a period of
 30 days,

 
	
  

 	
  

 
	
  

 	
           (2)
 default is made in the payment of the principal of (or premium, if any, on)
 any Security at the Maturity thereof, or

 
	
  

 	
  

 
	
  

 	
           (3)
 default is made in the deposit of any sinking fund payment, when and as due
 by the terms of any Security and such default continues for a period of 30
 days,

 

          the
Company will, upon demand of the Trustee, pay to the Trustee, for the benefit
of the Holders of such Securities, the whole amount then due and payable on
such Securities for principal and any premium and interest and, to the extent
that payment of such interest shall be legally enforceable, interest on any
overdue principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, all amounts
owing the Trustee, its agents and counsel under Section 607.

          If
an Event of Default with respect to Securities of any series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders of Securities of such series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

          SECTION
504. Trustee May File Proofs of Claim.

          In
case of any judicial proceeding relative to the Company (or any other obligor
upon the Securities), its property or its creditors, the Trustee shall be
entitled and empowered, by intervention in such proceeding or otherwise, to
take any and all actions authorized under the Trust Indenture Act in order to
have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute
the same; and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee and, in
the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it and any
predecessor Trustee under Section 607.

          No
provision of this Indenture shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding; provided, however, that the
Trustee may, on behalf of the Holders, vote for the election of a trustee in
bankruptcy or similar official and be a member of a creditors’ or other similar
committee.

          SECTION
505. Trustee May Enforce Claims Without Possession of Securities.

          All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any

34

 proceeding relating thereto, and any such
proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of all amounts owing the Trustee and any predecessor
Trustee under Section 607, its agents and counsel, be for the ratable benefit
of the Holders of the Securities in respect of which such judgment has been
recovered.

          SECTION
506. Application of Money Collected.

          Any
money or property collected or to be applied by the Trustee with respect to a
series of Securities pursuant to this Article Five shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money or property on account of principal or any premium
or interest, upon presentation of the Securities and the notation thereon of
the payment if only partially paid and upon surrender thereof if fully paid:

          FIRST:
To the payment of all amounts due the Trustee under Section 607; 

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

          THIRD:
To the payment of the remainder, if any, to the Company.

          SECTION
507. Limitation on Suits.

          No
Holder of any Security of any series shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver, assignee, trustee, liquidator or sequestrator (or
other similar official), or for any other remedy hereunder, unless

	
  

 	
  

 
	
  

 	
           (1)
 such Holder has previously given written notice to the Trustee of a
 continuing Event of Default with respect to the Securities of that series;

 
	
  

 	
  

 
	
  

 	
           (2)
 the Holders of not less than 25% in principal amount of the Outstanding
 Securities of that series shall have made written request to the Trustee to
 institute proceedings in respect of such Event of Default in its own name as
 Trustee hereunder;

 
	
  

 	
  

 
	
  

 	
           (3)
 such Holder or Holders have offered to the Trustee reasonable security or
 indemnity against the costs, expenses and liabilities to be incurred in
 compliance with such request;

 
	
  

 	
  

 
	
  

 	
           (4)
 the Trustee for 60 days after its receipt of such notice, request and offer
 of security or indemnity has failed to institute any such proceeding; and

 
	
  

 	
  

 
	
  

 	
           (5)
 no direction inconsistent with such written request has been given to the
 Trustee during such 60-day period by the Holders of a majority in principal
 amount of the Outstanding Securities of that series;

 

it being
understood and intended that no one or more of such Holders shall have any
right in any manner whatever by virtue of, or by availing itself of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders of Securities, or to obtain or to seek to obtain priority or 

35

preference
over any other of such Holders or to enforce any right under this Indenture,
except in the manner herein provided and for the equal and ratable benefit of
all such Holders.

          SECTION
508. Unconditional Right of Holders to Receive Principal, Premium and Interest.

          Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the
principal of and any premium and (subject to Section 307) interest on such
Security on the respective Stated Maturities expressed in such Security (or, in
the case of redemption or repayment, on the Redemption Date or Repayment Date)
and to institute suit for the enforcement of any such payment, and such rights
shall not be impaired without the consent of such Holder.

          SECTION
509. Restoration of Rights and Remedies.

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

          SECTION
510. Rights and Remedies Cumulative.

          Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

          SECTION
511. Delay or Omission Not Waiver.

          No
delay or omission of the Trustee or of any Holder of any Securities to exercise
any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article Five or by
law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.

          SECTION
512. Control by Holders.

          The
Holders of not less than a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such series, provided that

	
  

 	
  

 
	
  

 	
           (1)
 such direction shall not be in conflict with any rule of law or with this
 Indenture,

 
	
  

 	
  

 
	
  

 	
           (2)
 the Trustee may take any other action deemed proper by the Trustee which is
 not inconsistent with such direction, and

 

36

	
  

 	
  

 
	
  

 	
           (3)
 subject to the provisions of Section 601, the Trustee shall have the right to
 decline to follow such direction if a Responsible Officer or Officers of the
 Trustee shall, in good faith, determine that the proceeding so directed would
 involve the Trustee in personal liability or would otherwise be contrary to
 applicable law.

 

          SECTION
513. Waiver of Past Defaults.

          The
Holders of not less than a majority in principal amount of the Outstanding
Securities of any series may on behalf of the Holders of all the Securities of
such series waive any past default hereunder with respect to such series and
its consequences, except a default

	
  

 	
  

 
	
  

 	
           (1)
 in the payment of the principal of or any premium or interest on any Security
 of such series or

 
	
  

 	
  

 
	
  

 	
           (2)
 in respect of a covenant or provision hereof which under Article Nine cannot
 be modified or amended without the consent of the Holder of each Outstanding
 Security of such series affected.

 

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

          SECTION
514. Undertaking for Costs.

          All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken
or omitted by it as Trustee, the filing by any party litigant in such suit of
an undertaking to pay the costs of such suit, and such court may in its
discretion assess reasonable costs including reasonable attorneys’ fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant;
provided that the provisions of this Section 514 shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Holder or group of
Holders holding in the aggregate more than 10% in principal amount of the
Outstanding Securities, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of or interest on any Security, on
or after the respective due dates expressed in such Security.

          SECTION
515. Waiver of Usury, Stay or Extension Laws.

          The
Company covenants (to the extent that it may lawfully do so) that it will not
at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any usury, stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution
of every such power as though no such law had been enacted.

ARTICLE SIX

THE TRUSTEE

          SECTION
601. Certain Duties and Responsibilities.

37

          The
duties and responsibilities of the Trustee shall be as provided by the Trust
Indenture Act; provided, that (i) notwithstanding Section 315(a)(2) of the
Trust Indenture Act, the Trustee need not confirm or investigate the accuracy
of any mathematical calculations or other facts, statements, opinions or
conclusions stated in the certificates or opinions referred to therein, and
(ii) except during the continuance of an Event of Default, no implied covenants
or obligations shall be read into this Indenture against the Trustee.
Notwithstanding the foregoing, no provision of this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it. Whether or not therein expressly
so provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

          SECTION
602. Notice of Defaults.

          If
a default occurs hereunder with respect to Securities of any series, the
Trustee shall give the Holders of Securities of such series notice of such
default as and to the extent provided by the Trust Indenture Act; provided,
however, that in the case of any default of the character specified in Section
501(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the
purpose of this Section 602, the term “default” means any event which is, or
after notice or lapse of time or both would become, an Event of Default with
respect to Securities of such series.

          The
Trustee shall not be required to take notice or be deemed to have notice or
knowledge of any Event of Default with respect to the Securities of a series,
except an Event of Default under Section 501(1), Section 501(2) or Section
501(3) hereof (provided, that the Trustee is the principal Paying Agent with
respect to the Securities of such series), unless a Responsible Officer shall
have received written notice of such Event of Default in accordance with
Section 105 from the Company, any Subsidiary or the Holder of any Security,
which notice states that the event referred to therein constitutes an Event of
Default.

          SECTION
603. Certain Rights of Trustee.

          Subject
to the provisions of Section 601:

	
  

 	
  

 
	
  

 	
           (1)
 the Trustee may rely and shall be protected in acting or refraining from
 acting upon any resolution, certificate, statement, instrument, opinion,
 report, notice, request, direction, consent, order, bond, debenture, note,
 other evidence of indebtedness or other paper or document believed by it to
 be genuine and to have been signed or presented by the proper party or
 parties;

 
	
  

 	
  

 
	
  

 	
           (2)
 any request or direction of the Company mentioned herein shall be
 sufficiently evidenced by a Company Request or Company Order, and any
 resolution of the Board of Directors shall be sufficiently evidenced by a
 Board Resolution;

 
	
  

 	
  

 
	
  

 	
           (3)
 whenever in the administration of this Indenture the Trustee shall deem it
 desirable that a matter be proved or established prior to taking, suffering
 or omitting any action hereunder, the Trustee (unless other evidence be
 herein specifically prescribed) may, in the absence of bad faith on its part,
 rely upon an Officer’s Certificate;

 

38

	
  

 	
  

 
	
  

 	
           (4)
 the Trustee may consult with counsel, and the advice of such counsel or any
 Opinion of Counsel shall be full and complete authorization and protection in
 respect of any action taken, suffered or omitted by it hereunder in good
 faith and in reliance thereon;

 
	
  

 	
  

 
	
  

 	
           (5)
 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 pursuant to this Indenture, unless such Holders shall have
 offered to the Trustee reasonable security or indemnity against the costs,
 expenses and liabilities which might be incurred by it in compliance with
 such request or direction;

 
	
  

 	
  

 
	
  

 	
           (6)
 the Trustee shall not be bound to make any investigation into the facts or
 matters stated in any resolution, certificate, statement, instrument,
 opinion, report, notice, request, direction, consent, order, bond, debenture,
 note, other evidence of indebtedness or other paper or document, but the
 Trustee, in its discretion, may make such further inquiry or investigation
 into such facts or matters as it may see fit, and, if the Trustee shall
 determine to make such further inquiry or investigation, it shall be entitled
 to examine the books, records and premises of the Company, personally or by
 agent or attorney;

 
	
  

 	
  

 
	
  

 	
           (7)
 the Trustee may execute any of the trusts or powers hereunder or perform any
 duties hereunder either directly or by or through agents or attorneys and the
 Trustee shall not be responsible for any misconduct or negligence on the part
 of any agent or attorney appointed with due care by it hereunder;

 
	
  

 	
  

 
	
  

 	
           (8)
 the Trustee is not required to give any bond or surety with respect to the
 performance of its duties or the exercise of its powers under this Indenture;

 
	
  

 	
  

 
	
  

 	
           (9)
 in the event the Trustee receives inconsistent or conflicting requests and
 indemnity from two or more groups of Holders of Securities of a series, each
 representing less than a majority in aggregate principal amount of the
 Securities of such series Outstanding, the Trustee, in its sole discretion,
 may determine what action, if any, shall be taken;

 
	
  

 	
  

 
	
  

 	
           (10)
 the Trustee’s immunities and protections from liability and its right to
 indemnification in connection with the performance of its duties under this
 Indenture shall extend to the Trustee’s officers, directors, agents and
 employees. Such immunities and protections and right to indemnification,
 together with the Trustee’s right to compensation, shall survive the
 Trustee’s resignation or removal and the satisfaction and discharge of this
 Indenture;

 
	
  

 	
  

 
	
  

 	
           (11)
 except for information provided by the Trustee concerning the Trustee, the
 Trustee shall have no responsibility for any information in any offering
 memorandum or other disclosure material distributed with respect to the
 Securities, and the Trustee shall have no responsibility for compliance with
 any state or federal securities laws in connection with the Securities;

 
	
  

 	
  

 
	
  

 	
           (12)
 the Trustee shall not be liable for special, indirect or consequential loss
 or damage of any kind whatsoever (including but not limited to lost profits),
 even if the Trustee has been advised of the likelihood of such loss or damage
 and regardless of the form of action; 

 
	
  

 	
  

 
	
  

 	
           (13)
 the Trustee shall not be responsible or liable for any failure or delay in
 the performance of its obligations under this Indenture arising out of or
 caused by, directly or indirectly, forces beyond its control, including
 without limitation strikes, work stoppages, accidents, acts of war or
 terrorism, civil or military disturbances, nuclear or natural catastrophes

 

39

	
  

 	
  

 
	
  

 	
 or acts of
 God, and interruptions, loss or malfunctions of utilities, communications or
 computer (software or hardware) services;

 
	
  

 	
  

 
	
  

 	
           (14) the
 Trustee will not be liable for any action it takes or omits to take in good
 faith that it believes to be authorized or within the rights or powers
 conferred upon it by this Indenture;

 
	
  

 	
  

 
	
  

 	
           (15) the
 rights, privileges, protections and benefits given to the Trustee, including,
 without limitation, its rights to be indemnified, are extended to, and shall
 be enforceable by, the Trustee in each of its capacities hereunder, and to
 each agent, custodian and other Persons employed to act hereunder;

 
	
  

 	
  

 
	
  

 	
           (16) the
 Trustee may request that the Company deliver an Officer’s Certificate setting
 forth the names of individuals and/or titles of officers authorized at such
 time to take specified actions pursuant to this Indenture, which Officer’s
 Certificate may be signed by any person authorized to sign an Officer’s
 Certificate, including any person specified as so authorized in any such
 certificate previously delivered and not superseded; and

 
	
  

 	
  

 
	
  

 	
           (17) the
 permissive right of the Trustee to take or refrain from taking any actions
 enumerated in this Indenture shall not be construed as a duty.

 

          SECTION
604. Not Responsible for Recitals or Issuance of Securities.

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

          SECTION
605. May Hold Securities.

          The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or
any other agent of the Company, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 608 and 613,
may otherwise deal with the Company with the same rights it would have if it
were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or
such other agent.

          SECTION
606. Money Held in Trust.

          Money
held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law. The Trustee shall be under no liability
for interest on any money received by it hereunder except as otherwise agreed
with the Company.

          SECTION
607. Compensation and Reimbursement.

          The
Company agrees:

	
  

 	
  

 
	
  

 	
           (1)
 to pay to the Trustee from time to time such compensation for all services
 rendered by it hereunder in such amounts as the Company and the Trustee shall
 agree in writing from time to time (which compensation shall not be limited
 by any provision of law in regard to the compensation of a trustee of an
 express trust);

 

40

	
  

 	
  

 
	
  

 	
           (2)
 except as otherwise expressly provided herein, to reimburse the Trustee upon
 its request for all reasonable expenses, disbursements and advances incurred
 or made by the Trustee in accordance with any provision of this Indenture
 (including the reasonable compensation and the expenses and disbursements of
 its agents and counsel), except any such expense, disbursement or advance as
 may be attributable to its negligence or willful misconduct; and

 
	
  

 	
  

 
	
  

 	
           (3)
 to indemnify the Trustee for, and to hold it harmless against, any loss,
 liability or expense incurred without negligence or willful misconduct on its
 part, arising out of or in connection with the acceptance or administration
 of the trust or trusts hereunder, including the costs and expenses of
 defending itself against any claim or liability in connection with the exercise
 or performance of any of its powers or duties hereunder, except those
 attributable to its negligence or willful misconduct.

 

          The
Trustee shall notify the Company promptly of any claim for which it may seek
indemnity under this Section 607. The Company shall defend the claim and the
Trustee shall cooperate in the defense. The Trustee may have separate counsel
and, in the event the subject matter of the claim involves a conflict of
interest between the Company and the Trustee, the Company shall pay the
reasonable fees and expenses of such counsel. The Company need not pay for any
settlement made without its consent.

          As
security for the performance of the obligations of the Company under this
Section, the Trustee shall have a lien prior to the Securities upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the payment of principal of (and premium, if any) or interest on
particular Securities.

          Without
prejudice to any other rights available to the Trustee under applicable law, in
the event the Trustee incurs expenses or renders services in any proceedings
which result from an Event of Default under Section 501(5) or (6), or from any
default which, with the passage of time, would become such Event of Default,
the expenses so incurred and compensation for services so rendered are intended
to constitute expenses of administration under the United States Bankruptcy
Code or equivalent law.

          SECTION
608. Conflicting Interests.

          If
the Trustee has or shall acquire a conflicting interest within the meaning of
the Trust Indenture Act, the Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series or by virtue of being trustee under the
Senior Note Indenture dated as of January 1, 2003, between the Company and The
Bank of New York Mellon, as trustee, and the Indenture dated as of December 1,
2005, between The Bank of New York Mellon (as successor to JPMorgan Chase Bank,
N.A.), as trustee.

          SECTION
609. Corporate Trustee Required; Eligibility.

          There
shall at all times be one (and only one) Trustee hereunder with respect to the
Securities of each series, which may be Trustee hereunder for Securities of one
or more other series. Each Trustee shall be a Person that is eligible pursuant
to the Trust Indenture Act to act as such and has a combined capital and
surplus of at least $50,000,000. If any such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of its
supervising or examining authority, then for the purposes of this Section 609
and to the extent permitted by the Trust Indenture Act, the combined capital
and surplus of such Person shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee with respect to the Securities of any series shall cease

41

to be eligible
in accordance with the provisions of this Section 609, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article Six.

          SECTION
610. Resignation and Removal; Appointment of Successor.

          No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article Six shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 611.

          The
Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company. If the instrument of
acceptance by a successor Trustee required by Section 611 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

          The
Trustee may be removed at any time with respect to the Securities of any series
by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series, delivered to the Trustee and to the Company.

          If
at any time:

	
  

 	
  

 
	
  

 	
           (1)
 the Trustee shall fail to comply with Section 608 after written request
 therefor by the Company or by any Holder who has been a bona fide Holder of a
 Security for at least six months, or

 
	
  

 	
  

 
	
  

 	
           (2)
 the Trustee shall cease to be eligible under Section 609 and shall fail to
 resign after written request therefor by the Company or by any such Holder,
 or

 
	
  

 	
  

 
	
  

 	
           (3)
 the Trustee shall become incapable of acting or shall be adjudged a bankrupt
 or insolvent or a receiver of the Trustee or of its property shall be
 appointed or any public officer shall take charge or control of the Trustee
 or of its property or affairs for the purpose of rehabilitation, conservation
 or liquidation,

 

then, in any
such case, (A) the Company, acting pursuant to the authority of a Board
Resolution, may remove the Trustee with respect to all Securities, or (B)
subject to Section 514, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.

          If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee or Trustees with respect to the Securities
of that or those series (it being understood that any such successor Trustee
may be appointed with respect to the Securities of one or more or all of such
series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable
requirements of Section 611. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 611, become the
successor Trustee with respect to the Securities of such series and to that
extent

42

supersede the
successor Trustee appointed by the Company. If no successor Trustee with
respect to the Securities of any series shall have been so appointed by the Company
or the Holders and accepted appointment in the manner required by Section 611,
any Holder who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

          The
Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series to all Holders
of Securities of such series in the manner provided in Section 106. Each notice
shall include the name of the successor Trustee with respect to the Securities
of such series and the address of its Corporate Trust Office.

          SECTION
611. Acceptance of Appointment by Successor.

          In
case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

          In
case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring
Trustee and each successor Trustee with respect to the Securities of one or more
series shall execute and deliver an indenture supplemental hereto wherein each
successor Trustee shall accept such appointment and which (1) shall contain
such provisions as shall be necessary or desirable to transfer and confirm to,
and to vest in, each successor Trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, (2) if the
retiring Trustee is not retiring with respect to all Securities, shall contain
such provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall add
to or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustee’s co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.

43

          Upon
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts referred to in the first
or second preceding paragraph, as the case may be.

          No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this
Article Six.

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

          Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article Six,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated, and in case
any Securities shall not have been authenticated, any such successor to the
Trustee may authenticate such Securities either in the name of any predecessor
Trustee or in the name of such successor Trustee, and in all cases the
certificate of authentication shall have the full force which it is provided anywhere
in the Securities or in this Indenture that the certificate of the Trustee
shall have.

          SECTION
613. Preferential Collection of Claims Against Company.

          If
and when the Trustee shall be or become a creditor of the Company (or any other
obligor upon the Securities), the Trustee shall be subject to the provisions of
the Trust Indenture Act regarding the collection of claims against the Company
(or any such other obligor). For purposes of Section 311(b)(4) and (6) of the
Trust Indenture Act:

	
  

 	
  

 
	
  

 	
           (a)
 “cash transaction” means any transaction in which full payment for goods or
 securities sold is made within seven days after delivery of the goods or
 securities in currency or in checks or other orders drawn upon banks and
 payable upon demand; and

 
	
  

 	
  

 
	
  

 	
           (b)
 “self-liquidating paper” means any draft, bill of exchange, acceptance or
 obligation which is made, drawn, negotiated or incurred by the Company (or
 any such obligor) for the purpose of financing the purchase, processing, manufacturing,
 shipment, storage or sale of goods, wares or merchandise and which is secured
 by documents evidencing title to, possession of, or a lien upon, the goods,
 wares or merchandise or the receivables or proceeds arising from the sale of
 the goods, wares or merchandise previously constituting the security;
 provided the security is received by the Trustee simultaneously with the
 creation of the creditor relationship with the Company (or any such obligor)
 arising from the making, drawing, negotiating or incurring of the draft, bill
 of exchange, acceptance or obligation.

 

          SECTION
614. Appointment of Authenticating Agent.

          The
Trustee may appoint an Authenticating Agent or Agents with respect to one or
more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon original issue
and upon exchange, registration of transfer or partial redemption thereof or
pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the

44

Trustee or the
Trustee’s certificate of authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any state
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by federal or state
authority. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section 614, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section 614, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section 614.

          Any
corporation into which an Authenticating Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which such Authenticating Agent shall be
a party, or any corporation succeeding to all or substantially all of the
corporate agency or corporate trust business of an Authenticating Agent shall
be the successor Authenticating Agent hereunder, provided such corporation
shall be otherwise eligible under this Section 614, without the execution or
filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

          An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Company. The Trustee may at any time terminate the
agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 614, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment in the manner provided in Section 106 to all Holders
of Securities of the series with respect to which such Authenticating Agent
will serve. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section 614.

          The
Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 614.

          If
an appointment with respect to one or more series is made pursuant to this
Section 614, the Securities of such series may have endorsed thereon, in
addition to the Trustee’s certificate of authentication, an alternative
certificate of authentication in the following form:

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Dated: 

 	
  

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 The Bank of New York Mellon, 

 	
  

 
	
  

 	
  

 	
  

 	
 As Trustee

 	
  

 
	
  

 	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 

 	
 ’

 

45

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 as Authenticating Agent

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized Officer

 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

          SECTION
701. Company to Furnish Trustee Names and Addresses of Holders. 

          The
Company will furnish or cause to be furnished to the Trustee

	
  

 	
  

 
	
  

 	
           (1)
 semi-annually, not later than January 15 and July 15 in each year, a list, in
 such form as the Trustee may reasonably require, of the names and addresses
 of the Holders of Securities of each series as of the preceding January 1 or
 July 1 as the case may be, and

 
	
  

 	
  

 
	
  

 	
           (2)
 at such other times as the Trustee may request in writing, within 30 days
 after the receipt by the Company of any such request, a list of similar form
 and content as of a date not more than 15 days prior to the time such list is
 furnished;

 

provided, however,
that if and so long as the Trustee shall be Security Registrar for Securities
of a series, no such list need be furnished with respect to such series of
Securities.

          SECTION
702. Preservation of Information; Communications to Holders.

          The
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of Holders contained in the most recent list furnished to
the Trustee as provided in Section 701 and the names and addresses of Holders
received by the Trustee in its capacity as Security Registrar. The Trustee may
destroy any list furnished to it as provided in Section 701 upon receipt of a
new list so furnished.

          The
rights of Holders to communicate with other Holders with respect to their
rights under this Indenture or under the Securities, and the corresponding
rights and privileges of the Trustee, shall be as provided in the Trust
Indenture Act.

          Every
Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent
of either of them shall be held accountable by reason of any disclosure of
information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.

          SECTION
703. Reports by Trustee.

          The
Trustee shall transmit to Holders such reports concerning the Trustee and its
actions under this Indenture as may be required pursuant to the Trust Indenture
Act at the times and in the manner provided pursuant thereto.

          If
required by Section 313(a) of the Trust Indenture Act, the Trustee shall,
within 60 days after each May 15 following the date of this Indenture, deliver
to Holders a brief report, dated as of such May 15, which complies with the
provisions of such Section 313(a).

46

          A
copy of each such report shall, at the time of such transmission to Holders, be
filed by the Trustee with each stock exchange upon which any Securities are
listed, with the Commission and with the Company. The Company will notify the
Trustee when any Securities are listed on any stock exchange.

          SECTION
704. Reports by Company

          The
Company shall file with the Trustee and the Commission, and transmit to
Holders, such information, documents and other reports, and such summaries
thereof, as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided in the Trust Indenture Act; provided that any such
information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the
Trustee within 15 days after the same is filed with the Commission.

          Delivery
of any reports, information and documents by the Company to the Trustee
pursuant to the provisions of this Section 704 is for informational purposes
only and the Trustee’s receipt of same shall not constitute constructive notice
of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of the covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officer’s
Certificates).

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

          SECTION
801. Company May Consolidate, Etc., Only on Certain Terms.

          The
Company shall not consolidate with or merge into any other Person or convey,
transfer or lease its properties and assets substantially as an entirety to any
Person, unless:

	
  

 	
  

 
	
  

 	
           (1)
 in case the Company shall consolidate with or merge into another Person or
 convey, transfer or lease its properties and assets substantially as an
 entirety to any Person, the Person formed by such consolidation or into which
 the Company is merged or the Person which acquires by conveyance or transfer,
 or which leases, the properties and assets of the Company substantially as an
 entirety shall be a corporation, partnership, trust or other entity, and
 shall expressly assume, by an indenture supplemental hereto, executed and
 delivered to the Trustee, in form satisfactory to the Trustee, the due and
 punctual payment of the principal of and any premium and interest on all the
 Securities and the performance or observance of every covenant of this
 Indenture on the part of the Company to be performed or observed;

 
	
  

 	
  

 
	
  

 	
           (2)
 immediately after giving effect to such transaction, no Event of Default, and
 no event which, after notice or lapse of time or both, would become an Event
 of Default, shall have happened and be continuing; and

 
	
  

 	
  

 
	
  

 	
           (3)
 the Company has delivered to the Trustee an Officer’s Certificate and an
 Opinion of Counsel stating that such consolidation, merger, conveyance,
 transfer or lease and such supplemental indenture comply with this Article
 Eight and that all conditions precedent herein provided for relating to such
 transaction have been complied with.

 

          SECTION
802. Successor Substituted.

          Upon
any consolidation of the Company with, or merger of the Company into, any other
Person or any conveyance, transfer or lease of the properties and assets of the
Company substantially as an entirety in accordance with Section 801, the
successor Person formed by such consolidation or into which 

47

the Company is merged or to
which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein; and in the event of any such conveyance or transfer (but
not in the case of a lease) the Company shall be discharged from all
obligations and covenants under the Indenture and the Securities and may be
dissolved and liquidated.

          Such
successor Person may cause to be signed, and may issue either in its own name
or in the name of the Company, any or all of the Securities issuable hereunder
which theretofore shall not have been signed by the Company and delivered to
the Trustee; and, upon the order of such successor Person instead of the
Company and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver any
Securities which previously shall have been signed and delivered by the
officers of the Company to the Trustee for authentication pursuant to such
provisions and any Securities which such successor Person thereafter shall
cause to be signed and delivered to the Trustee on its behalf for the purpose
pursuant to such provisions. All the Securities so issued shall in all respects
have the same legal rank and benefit under this Indenture as the Securities
theretofore or thereafter issued in accordance with the terms of this Indenture
as though all of such Securities had been issued at the date of the execution
hereof.

          In
case of any such consolidation, merger, sale, conveyance or lease, such changes
in phraseology and form may be made in the Securities thereafter to be issued
as may be appropriate.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

          SECTION
901. Supplemental Indentures Without Consent of Holders.

          Without
the consent of any Holders, the Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of
the following purposes:

	
  

 	
  

 
	
  

 	
           (1)
 to evidence the succession of another Person to the Company, or successive
 successions, and the assumption by the successor Person of the covenants,
 agreements and obligations of the Company pursuant to Article Eight; or

 
	
  

 	
  

 
	
  

 	
           (2)
 to add to the covenants of the Company for the benefit of the Holders of all
 or any series of Securities (and if such covenants are to be for the benefit
 of less than all series of Securities, stating that such covenants are
 expressly being included solely for the benefit of such series) or to
 surrender any right or power herein conferred upon the Company; or

 
	
  

 	
  

 
	
  

 	
           (3)
 to add any additional Events of Default for the benefit of the Holders of all
 or any series of Securities (and if such additional Events of Default are to
 be for the benefit of less than all series of Securities, stating that such
 additional Events of Default are expressly being included solely for the
 benefit of such series), provided, however, that in respect of any such
 additional Events of Default such supplemental indenture may provide for a
 particular period of grace after default (which period may be shorter or
 longer than that allowed in the case of other defaults) or may provide for an
 immediate enforcement upon such default or may limit the remedies available
 to the Trustee upon such default or may limit the right of the Holders of a
 majority in aggregate principal amount of that or those series of Securities
 to which such additional Events of Default apply to waive such default; or

 

48

	
  

 	
  

 
	
  

 	
           (4)
 to add to or change any of the provisions of this Indenture to such extent as
 shall be necessary to permit or facilitate the issuance of Securities in
 bearer form, registrable or not registrable as to principal, and with or
 without interest coupons, or to permit or facilitate the issuance of
 Securities in uncertificated form; or

 
	
  

 	
  

 
	
  

 	
           (5)
 to add to, change or eliminate any of the provisions of this Indenture in
 respect of one or more series of Securities; provided, however, that if such
 addition, change or elimination shall adversely affect the interests of
 Holders of Securities of any series in any material respect, such addition,
 change or elimination shall become effective with respect to such series only
 when no such Security of such series remains Outstanding; or

 
	
  

 	
  

 
	
  

 	
           (6)
 to convey, transfer, assign, mortgage or pledge any property to or with the
 Trustee or to surrender any right or power herein conferred upon the Company;
 or

 
	
  

 	
  

 
	
  

 	
           (7)
 to establish the forms or terms of Securities of any series as permitted by
 Sections 201 and 301; or

 
	
  

 	
  

 
	
  

 	
           (8)
 to provide for uncertificated securities in addition to certificated
 securities; or

 
	
  

 	
  

 
	
  

 	
           (9)
 to evidence and provide for the acceptance of appointment hereunder by a
 successor Trustee with respect to the Securities of one or more series and to
 add to or change any of the provisions of this Indenture as shall be
 necessary to provide for or facilitate the administration of the trusts
 hereunder by more than one Trustee, pursuant to the requirements of Section
 611; or

 
	
  

 	
  

 
	
  

 	
           (10)
 to cure any ambiguity, or to correct or supplement any provision herein which
 may be defective or inconsistent with any other provision herein; or

 
	
  

 	
  

 
	
  

 	
           (11)
 to make any other provisions with respect to matters or questions arising
 under this Indenture, provided that such action shall not adversely affect
 the interests of the Holders of Securities of any series in any material
 respect; or

 
	
  

 	
  

 
	
  

 	
           (12)
 to supplement any of the provisions of this Indenture to such extent as shall
 be necessary to permit or facilitate the defeasance and discharge of any
 series of Securities pursuant to Sections 401, 1402 and 1403; provided that
 any such action shall not adversely affect the interests of the Holders of
 Securities of such series or any other series of Securities in any material
 respect; or

 
	
  

 	
  

 
	
  

 	
           (13)
 to comply with the rules or regulations of any securities exchange or
 automated quotation system on which any of the Securities may be listed or
 traded; or

 
	
  

 	
  

 
	
  

 	
           (14)
 to add to, change or eliminate any of the provisions of this Indenture as
 shall be necessary or desirable in accordance with any amendments to the
 Trust Indenture Act, provided that such action does not adversely affect the
 rights or interests of any Holder of Securities in any material respect; or

 
	
  

 	
  

 
	
  

 	
           (15)
 to provide for the payment by the Company of additional amounts in respect of
 taxes imposed on certain Holders and for the treatment of such additional
 amounts as interest and for all matters incidental thereto.

 

          SECTION 902.
Supplemental Indentures With Consent of Holders.

49

          With the consent of the
Holders of not less than a majority in principal amount of the Outstanding
Securities of all series affected by such supplemental indenture (treated as
one class), by Act of said Holders delivered to the Company and the Trustee,
the Company, when authorized by a Board Resolution, and the Trustee may enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities of such series under this Indenture; provided, however,
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,

	
  

 	
  

 
	
  

 	
           (1)
 except to the extent permitted by Section 307(b) or Section 308 or otherwise
 specified in the form or terms of the Securities of any series as permitted
 by Sections 201 and 301 with respect to extending the Stated Maturity of any
 Security of such series, change the Stated Maturity of the principal of, or
 any installment of principal of or interest on, any Security, or reduce the
 principal amount thereof or the rate of interest thereon or any premium
 payable upon the redemption thereof, or reduce the amount of the principal of
 an Original Issue Discount Security or any other Security which would be due
 and payable upon a declaration of acceleration of the Maturity thereof
 pursuant to Section 502, or change any Place of Payment where, or the coin or
 currency in which, any Security or any premium or interest thereon is
 payable, or impair the right to institute suit for the enforcement of any
 such payment on or after the Stated Maturity thereof (or, in the case of
 redemption or repayment, on or after the Redemption Date or Repayment Date),
 or

 
	
  

 	
  

 
	
  

 	
           (2)
 reduce the percentage in principal amount of the Outstanding Securities of
 any series, the consent of whose Holders is required for any such
 supplemental indenture, or the consent of whose Holders is required for any
 waiver (of compliance with certain provisions of this Indenture or certain
 defaults hereunder and their consequences) provided for in this Indenture, or

 
	
  

 	
  

 
	
  

 	
           (3)
 modify any of the provisions of this Section 902, Section 513 or Section
 1006, except to increase any such percentage or to provide that certain other
 provisions of this Indenture cannot be modified or waived without the consent
 of the Holder of each Outstanding Security affected thereby; provided,
 however, that this clause shall not be deemed to require the consent of any
 Holder with respect to changes in the references to “the Trustee” and
 concomitant changes in this Section 902 and Section 1006, or the deletion of
 this proviso, in accordance with the requirements of Sections 611 and 901(9),
 or

 
	
  

 	
  

 
	
  

 	
           (4)
 if the Securities of any series are convertible or exchangeable into any
 other securities or property of the Company, make any change that adversely
 affects in any material respect the right to convert or exchange any Security
 of such series (except as permitted by Section 901) or decrease the
 conversion or exchange rate or increase the conversion price of any such
 Security of such series, unless such decrease or increase is permitted by the
 terms of such Security, or

 
	
  

 	
  

 
	
  

 	
           (5)
 if the Securities of any series are secured, change the terms and conditions
 pursuant to which the Securities of such series are secured in a manner
 adverse to the Holders of the secured Securities of such series in any
 material respect.

 

A supplemental
indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or
more particular series of Securities, or which modifies the rights of the
Holders of Securities of such series with respect to such covenant or 

50

other
provision, shall be deemed not to affect the rights under this Indenture of the
Holders of Securities of any other series.

          It
shall not be necessary for any Act of Holders under this Section 902 to approve
the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.

          SECTION
903. Execution of Supplemental Indentures.

          In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article Nine or the modifications thereby of the
trusts created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an Officer’s
Certificate and an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise.

          SECTION
904. Effect of Supplemental Indentures.

          Upon
the execution of any supplemental indenture under this Article Nine, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every
Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

          SECTION
905. Conformity with Trust Indenture Act.

          Every
supplemental indenture executed pursuant to this Article Nine shall conform to
the requirements of the Trust Indenture Act.

          SECTION
906. Reference in Securities to Supplemental Indentures.

          Securities
of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article Nine may, and shall if required
by the Trustee, bear a notation in form approved by the Trustee as to any
matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.

ARTICLE TEN

COVENANTS

          SECTION
1001. Payment of Principal, Premium and Interest.

          The
Company covenants and agrees for the benefit of each series of Securities that
it will duly and punctually pay the principal of and any premium and interest
on the Securities of that series in accordance with the terms of the Securities
and this Indenture.

          SECTION
1002. Maintenance of Office or Agency.

          The
Company will maintain in each Place of Payment for any series of Securities an
office or agency where Securities of that series may be presented or
surrendered for payment, where Securities of 

51

that series may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be served. The Company initially appoints the Trustee,
acting through its Corporate Trust Office, as its agent for said purpose. The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of 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 where the Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; 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 each Place of Payment for Securities of any series for such purposes.
The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.

          SECTION
1003. Money for Securities Payments to Be Held in Trust.

          If
the Company shall at any time act as its own Paying Agent with respect to any
series of Securities, it will, on or before each due date of the principal of
or any premium or interest on any of the Securities of that series, segregate
to the extent required by law and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal and any premium and
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the Trustee
of its action or failure so to act.

          Whenever
the Company shall have one or more Paying Agents for any series of Securities,
it will, on or prior to each due date of the principal of or any premium or
interest on any Securities of that series, deposit with a Paying Agent a sum
sufficient to pay such amount, such sum to be held as provided by the Trust
Indenture Act, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act.

          The
Company will cause each Paying Agent for any series of Securities other than
the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section 1003, that such Paying Agent will (1) comply with the provisions of the
Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.

          The
Company may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by Company Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Company or such Paying Agent, such sums to be held by the Trustee upon the same
trusts as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

          Any
money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of the principal of or any premium or
interest on any Security of any series and remaining unclaimed for one year
after such principal, premium or interest has become due and payable 

52

may be paid to the Company
on Company Request, or (if then held by the Company) shall be discharged from
such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease.

          SECTION
1004. Statement by Officer as to Default.

          The
Company will deliver to the Trustee, within 120 days after the end of each fiscal
year of the Company ending after the date hereof, an Officer’s Certificate, the
signer of which shall be the principal executive, principal accounting or
principal financial officer of the Company, stating whether or not to the best
knowledge of the signer thereof, the Company is in default in the performance
and observance of any of the terms, provisions, covenants and conditions of
this Indenture (without regard to any period of grace or requirement of notice
provided hereunder) and, if the Company shall be in default, specifying all
such defaults and the nature and status thereof of which he or she may have
knowledge.

          SECTION
1005. Existence.

          Subject
to Article Eight and the Company’s ability to convert into a limited liability
company, limited partnership or limited liability partnership under applicable
law, the Company will do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence. On and after any
conversion of the Company into a limited liability company, limited partnership
or limited liability partnership under applicable law, the Company will do or
cause to be done all things necessary to preserve and keep in full force and
effect its limited liability company, limited partnership or limited liability
partnership existence, as applicable.

          SECTION
1006. Waiver of Certain Covenants.

          Except
as otherwise specified as contemplated by Section 301 for Securities of such
series, the Company may, with respect to the Securities of any series, omit in
any particular instance to comply with any term, provision or condition set
forth in any covenant provided pursuant to Section 301(20), 901(2) or 901(7)
for the benefit of the Holders of such series or in Section 1005, if the
Holders of at least a majority in principal amount of the Outstanding
Securities of such series shall, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until
such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

          SECTION
1101. Applicability of Article.

          Securities
of any series which are redeemable before their Stated Maturity shall be
redeemable in accordance with their terms and (except as otherwise specified as
contemplated by Section 301 for such Securities) in accordance with this
Article Eleven.

          SECTION
1102. Election to Redeem; Notice to Trustee.

          The
election of the Company to redeem any Securities shall be evidenced by a
Company Order or in another manner specified as contemplated by Section 301 for
such Securities. In case of any 

53

redemption at the election
of the Company, the Company shall, not less than 45 nor more than 60 days prior
to the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date, of
the principal amount of Securities of such series to be redeemed and, if applicable,
of the tenor of the Securities to be redeemed. In the case of any redemption of
Securities (a) prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, or (b)
pursuant to an election of the Company which is subject to a condition
specified in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officer’s Certificate evidencing
compliance with such restriction or condition.

          SECTION
1103. Selection by Trustee of Securities to Be Redeemed.

          If
less than all the Securities of any series are to be redeemed (unless all the
Securities of such series and of a specified tenor are to be redeemed or unless
such redemption affects only a single Security), 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 of such series not
previously called for redemption, by such method as the Trustee shall deem fair
and appropriate and which may provide for the selection for redemption of a
portion of the principal amount of any Security of such series, provided that
the unredeemed portion of the principal amount of any Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. If less than all the Securities of such series
and of a specified tenor are to be redeemed (unless such redemption affects only
a single Security), 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 of such series and specified tenor not previously called
for redemption in accordance with the preceding sentence.

          The
Trustee shall promptly notify the Company in writing of the Securities selected
for redemption as aforesaid and, in case of any Securities selected for partial
redemption as aforesaid, the principal amount thereof to be redeemed.

          The
provisions of the two preceding paragraphs shall not apply with respect to any
redemption affecting only a single Security, whether such Security is to be
redeemed in whole or in part. In the case of any such redemption in part, the
unredeemed portion of the principal amount of the Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security.

          For
all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case
of any Securities redeemed or to be redeemed only in part, to the portion of
the principal amount of such Securities which has been or is to be redeemed. If
the Company shall so direct, Securities registered in the name of the Company,
any Affiliate or any Subsidiary thereof shall not be included in the Securities
selected for redemption.

          SECTION
1104. Notice of Redemption.

          Notice
of redemption shall be given by first-class mail, postage prepaid, mailed not
less than 30 nor more than 60 days prior to the Redemption Date, to each Holder
of Securities to be redeemed, at his address appearing in the Security
Register.

          With
respect to Securities of each series to be redeemed, each notice of redemption
shall identify the Securities to be redeemed (including CUSIP or ISIN numbers,
if applicable) and shall state:

	
  

 	
  

 
	
  

 	
           (1)
 the Redemption Date,

 

54

	
  

 	
  

 
	
  

 	
           (2)
 the Redemption Price, or if not then ascertainable, the manner of calculation
 thereof,

 
	
  

 	
  

 
	
  

 	
           (3)
 if less than all the Outstanding Securities of any series consisting of more
 than a single Security are to be redeemed, the identification (and, in the
 case of partial redemption of any such Securities, the principal amounts) of
 the particular Securities to be redeemed and, if less than all the
 Outstanding Securities of any series consisting of a single Security are to
 be redeemed, the principal amount of the particular Security to be redeemed,

 
	
  

 	
  

 
	
  

 	
           (4)
 that on the Redemption Date, the Redemption Price will become due and payable
 upon each such Security to be redeemed and, if applicable, that interest
 thereon will cease to accrue on and after said date,

 
	
  

 	
  

 
	
  

 	
           (5)
 the place or places where each such Security is to be surrendered for payment
 of the Redemption Price, and

 
	
  

 	
  

 
	
  

 	
           (6)
 that the redemption is for a sinking fund, if such is the case.

 

          Notice
of redemption of Securities to be redeemed at the election of the Company shall
be given by the Company or, at the Company’s request, by the Trustee in the
name and at the expense of the Company provided, however, that the Company has
delivered to the Trustee, at least 45 days prior to the redemption date (unless
a shorter notice shall be satisfactory to the Trustee), an Officer’s
Certificate requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in the preceding paragraph.
Any such notice of redemption shall be irrevocable. The notice if mailed in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not the Holder receives such notice. In any case, a failure to give
such notice by mail or any defect in the notice to the Holder of any Security
designated for redemption as a whole or in part shall not affect the validity
of the proceedings for the redemption of any other Security.

          SECTION
1105. Deposit of Redemption Price.

          On
or before the Redemption Date specified in the notice of redemption given as
provided in Section 1104, 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 1003) an amount of money sufficient to
pay the Redemption Price of, and (except if the Redemption Date shall be an
Interest Payment Date) accrued and unpaid interest on, all the Securities which
are to be redeemed on that date.

          SECTION
1106. Securities Payable on Redemption Date.

          Notice
of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, 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 to the
Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 301, installments of interest whose Stated Maturity is
on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

55

          If
any Security called for redemption shall not be so paid upon surrender thereof
for redemption, the principal amount (together with interest, if any, thereon
accrued to the Redemption Date) and any premium shall, until paid, bear
interest from the Redemption Date at the rate prescribed therefor in the
Security.

          SECTION
1107. Securities Redeemed in Part.

          Any
Security which is to be redeemed only in part shall be surrendered at a Place
of Payment therefor (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 his attorney
duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Security without service
charge, a new Security or Securities of the same series and of like tenor, of
any authorized denomination (which shall not be less than the minimum
authorized denomination) as requested by such Holder, in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered.

ARTICLE TWELVE

SINKING FUNDS

          SECTION
1201. Applicability of Article.

          The
provisions of this Article Twelve shall be applicable to any sinking fund for
the retirement of Securities of any series except as otherwise specified as
contemplated by Section 301 for such Securities.

          The
minimum amount of any sinking fund payment provided for by the terms of any
Securities of any series is herein referred to as a “mandatory sinking fund
payment”, and any sinking fund payment in excess of such minimum amount which
is permitted to be made by the terms of such Securities is herein referred to
as an “optional sinking fund payment”. If provided for by the terms of any
Securities of any series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 1202. Each sinking fund payment
shall be applied to the redemption of Securities of any series as provided for
by the terms of such Securities.

          SECTION
1202. Satisfaction of Sinking Fund Payments with Securities.

          The
Company (1) may deliver Outstanding Securities of a series (other than any
previously called for redemption) and (2) may apply as a credit Securities of a
series which have been redeemed either at the election of the Company pursuant
to the terms of such Securities or through the application of permitted
optional sinking fund payments pursuant to the terms of such Securities, in
each case in satisfaction of all or any part of any sinking fund payment with
respect to any Securities of such series required to be made pursuant to the
terms of such Securities as and to the extent provided for by the terms of such
Securities; provided that the Securities to be so credited have not been
previously so credited. The Securities to be so credited shall be received and
credited for such purpose by the Trustee at the Redemption Price, as specified
in the Securities so to be redeemed, for redemption through operation of the
sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

          SECTION
1203. Redemption of Securities for Sinking Fund.

          Not
less than 60 days prior to each sinking fund payment date for any series of
Securities, the Company will deliver to the Trustee an Officer’s Certificate
specifying the amount of the next ensuing sinking fund payment for such
Securities pursuant to the terms of such Securities, the portion thereof, if
any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by

56

delivering and
crediting Securities pursuant to Section 1202 and stating the basis for any such
credit and that such Securities have not previously been so credited and will
also deliver to the Trustee any Securities to be so delivered. Not less than 30
days prior to each such sinking fund payment date, the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 1103 and cause notice of the redemption thereof to be
given in the name of and at the expense of the Company in the manner provided
in Section 1104. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections
1106 and 1107.

ARTICLE THIRTEEN

REPAYMENT AT THE OPTION OF THE HOLDERS

          SECTION
1301. Applicability of Article.

          Repayment
of Securities of any series before their Stated Maturity at the option of
Holders thereof shall be made in accordance with the terms of such Securities
and (except as otherwise specified as contemplated by Section 301 for
Securities of any series) in accordance with this Article Thirteen.

          SECTION
1302. Repayment of Securities.

          Securities
of any series subject to repayment in whole or in part at the option of the
Holders thereof will, unless otherwise provided in the terms of such Securities,
be repaid at a price equal to the principal amount thereof and any premium
thereon, together with interest thereon accrued to the Repayment Date specified
in or pursuant to the terms of such Securities. The Company covenants that on
or before the Repayment Date it will 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 1003) an amount of money sufficient to pay the
principal (or, if so provided by the terms of the Securities of any series, a
percentage of the principal) of, the premium, if any, and (except if the
Repayment Date shall be an Interest Payment Date) accrued interest on, all the
Securities or portions thereof, as the case may be, to be repaid on such date.

          SECTION
1303. Exercise of Option.

          Securities
of any series subject to repayment at the option of the Holders thereof will
contain an “Option to Elect Repayment” form on the reverse of such Securities.
To be repaid at the option of the Holder, any Security so providing for such
repayment, with the “Option to Elect Repayment” form on the reverse of such
Security duly completed by the Holder (or by the Holder’s attorney duly
authorized in writing), must be received by the Company at the Place of Payment
therefor specified in the terms of such Security (or at such other place or
places of which the Company shall from time to time notify the Holders of such
Securities) not earlier than 45 days nor later than 30 days prior to the
Repayment Date. If less than the entire principal amount of such Security is to
be repaid in accordance with the terms of such Security, the principal amount
of such Security to be repaid, in increments of the minimum denomination for
Securities of such series, and the denomination or denominations of the
Security or Securities to be issued to the Holder for the portion of the
principal amount of such Security surrendered that is not to be repaid, must be
specified. The principal amount of any Security providing for repayment at the
option of the Holder thereof may not be repaid in part if, following such
repayment, the unpaid principal amount of such Security would be less than the
minimum authorized denomination of Securities of the series of which such Security
to be repaid is a part. Except as otherwise may be provided by the terms of any
Security providing for repayment at the option of the Holder thereof and as
provided in Sections 307(b) and 308, exercise of the repayment option by the
Holder shall be irrevocable unless waived by the Company.

57

          SECTION
1304. When Securities Presented for Repayment Become Due and Payable.

          If
Securities of any series providing for repayment at the option of the Holders
thereof shall have been surrendered as provided in this Article Thirteen and as
provided by or pursuant to the terms of such Securities, such Securities or the
portions thereof, as the case may be, to be repaid shall become due and payable
and shall be paid by the Company on the Repayment Date therein specified, and
on and after such Repayment Date (unless the Company shall default in the
payment of such Securities on such Repayment Date) such Securities shall, if
the same were interest-bearing, cease to bear interest. Upon surrender of any
such Security for repayment in accordance with such provisions, the principal
amount of such Security so to be repaid shall be paid by the Company, together
with accrued interest and/or premium, if any, to (but excluding) the Repayment
Date; provided, however, that, unless otherwise specified as contemplated by
Section 301, installments of interest, if any, whose Stated Maturity is on or
prior to the Repayment Date shall be payable (but without interest thereon,
unless the Company shall default in the payment thereof) to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

          If
the principal amount of any Security surrendered for repayment shall not be so
repaid upon surrender thereof, such principal amount (together with interest,
if any, thereon accrued to such Repayment Date) and any premium shall, until
paid, bear interest from the Repayment Date at the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) set forth in such
Security.

          SECTION
1305. Securities Repaid in Part.

          Upon
surrender of any Security which is to be repaid in part only, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Security, without service charge and at the expense of the Company, a new
Security or Securities of the same series, of any authorized denomination
specified by the Holder, in an aggregate principal amount equal to and in
exchange for the portion of the principal of such Security so surrendered which
is not to be repaid.

ARTICLE FOURTEEN

DEFEASANCE AND COVENANT DEFEASANCE

          SECTION
1401. Company’s Option to Effect Defeasance or Covenant Defeasance.

          The
Company may elect, at its option at any time, to have Section 1402 or Section
1403 applied to any Securities or any series of Securities, as the case may be,
(unless designated pursuant to Section 301 as not being defeasible pursuant to
such Section 1402 or 1403), in accordance with any applicable requirements
provided pursuant to Section 301 and upon compliance with the conditions set
forth below in this Article Fourteen. Any such election shall be evidenced by a
Board Resolution or in another manner specified as contemplated by Section 301
for such Securities.

          SECTION
1402. Defeasance and Discharge.

          Upon
the Company’s exercise of its option (if any) to have this Section 1402 applied
to any Securities or any series of Securities, as the case may be, the Company
shall be deemed to have been discharged from its obligations with respect to
such Securities as provided in this Section 1402 on and after the date the
conditions set forth in Section 1404 are satisfied (hereinafter called
“Defeasance”). For this purpose, such Defeasance means that the Company shall
be deemed to have paid and discharged the entire indebtedness represented by
such Securities and to have satisfied all its other obligations under such
Securities and this Indenture insofar as such Securities are concerned (and the
Trustee, at the 

58

expense of the
Company, shall execute proper instruments acknowledging the same), subject to
the following which shall survive until otherwise terminated or discharged
hereunder: (1) the rights of Holders of such Securities to receive, solely from
the trust fund described in Section 1404 and as more fully set forth in such
Section 1406, payments in respect of the principal of and any premium and
interest on such Securities when payments are due, (2) the Company’s
obligations with respect to such Securities under Sections 304, 305, 306, 1002
and 1003, (3) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and (4) this Article Fourteen. Subject to compliance with this
Article Fourteen, the Company may exercise its option (if any) to have this
Section 1402 applied to any Securities notwithstanding the prior exercise of
its option (if any) to have Section 1403 applied to such Securities.

          SECTION
1403. Covenant Defeasance.

          Upon
the Company’s exercise of its option (if any) to have this Section 1403 applied
to any Securities or any series of Securities, as the case may be, (1) the
Company shall be released from its obligations under any covenants provided
pursuant to Section 301(20), 704 (to the extent of any covenants in addition to
the requirements of the Trust Indenture Act), 901(2) or 901(7) for the benefit
of the Holders of such Securities and (2) the occurrence of any event specified
in Sections 501(4) (with respect to any such covenants provided pursuant to
Section 301(20), 704 (to the extent of any covenants in addition to the
requirements of the Trust Indenture Act), 901(2) or 901(7)), shall be deemed
not to be or result in an Event of Default, in each case with respect to such
Securities as provided in this Section 1403 on and after the date the
conditions set forth in Section 1404 are satisfied (hereinafter called
“Covenant Defeasance”). For this purpose, such Covenant Defeasance means that,
with respect to such Securities, 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 specified Section (to the extent so specified in the case of Section
501(4)), whether directly or indirectly by reason of any reference elsewhere
herein to any such Section or by reason of any reference in any such Section to
any other provision herein or in any other document, but the remainder of this
Indenture and such Securities shall be unaffected thereby.

          SECTION
1404. Conditions to Defeasance or Covenant Defeasance.

          The
following shall be the conditions to the application of Section 1402 or Section
1403 to any Securities or any series of Securities, as the case may be:

	
  

 	
  

 
	
  

 	
           (1)
 The Company shall irrevocably have deposited or caused to be deposited with
 the Trustee (or another trustee which satisfies the requirements contemplated
 by Section 609 and agrees to comply with the provisions of this Article
 Fourteen applicable to it) as trust funds in trust for the purpose of making
 the following payments, specifically pledged as security for, and dedicated
 solely to, the benefits of the Holders of such Securities, (A) money in an
 amount, or (B) U.S. Government Obligations which through the scheduled
 payment of principal and interest in respect thereof in accordance with their
 terms will provide, not later than one day before the due date of any
 payment, money in an amount, or (C) a combination thereof, in each case
 sufficient, in the opinion of a nationally recognized firm of independent
 certified public accountants expressed in a written certification thereof
 delivered to the Trustee, to pay and discharge, and which shall be applied by
 the Trustee (or any such other qualifying trustee) to pay and discharge, the
 principal of and any premium and interest on such Securities on the
 respective Stated Maturities or upon redemption, in accordance with the terms
 of this Indenture and such Securities. As used herein, “U.S. Government
 Obligation” means (x) any security which is (i) a direct obligation of the
 United States of America for the payment of which the full faith and credit
 of the United States of America is pledged or (ii) an obligation of a Person
 controlled or supervised by and acting as an agency or instrumentality of the
 United States of America the payment of which is unconditionally guaranteed
 as a full faith and credit obligation by the United

 

59

	
  

 	
  

 
	
  

 	
 States of
 America, which, in either case (i) or (ii), is not callable or redeemable at
 the option of the issuer thereof, and (y) any depositary receipt issued by a
 bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with
 respect to any U.S. Government Obligation which is specified in Clause (x)
 above and held by such bank for the account of the holder of such depositary
 receipt, or with respect to any specific payment of principal of or interest
 on any U.S. Government Obligation which is so specified and held, provided
 that (except as required by law) such custodian is not authorized to make any
 deduction from the amount payable to the holder of such depositary receipt
 from any amount received by the custodian in respect of the U.S. Government Obligation
 or the specific payment of principal or interest evidenced by such depositary
 receipt.

 
	
  

 	
  

 
	
  

 	
           (2)
 In the event of an election to have Section 1402 apply to any Securities or
 any series of Securities, as the case may be, the Company shall have
 delivered to the Trustee an Opinion of Counsel stating that (A) the Company
 has received from, or there has been published by, the Internal Revenue
 Service a ruling or (B) since the date of this instrument, there has been a
 change in the applicable federal income tax law, in either case (A) or (B) to
 the effect that, and based thereon such opinion shall confirm that, the
 Holders of such Securities will not recognize gain or loss for federal income
 tax purposes as a result of the deposit, Defeasance and discharge to be
 effected with respect to such Securities and will be subject to federal
 income tax on the same amount, in the same manner and at the same times as
 would be the case if such deposit, Defeasance and discharge were not to
 occur.

 
	
  

 	
  

 
	
  

 	
           (3)
 In the event of an election to have Section 1403 apply to any Securities or
 any series of Securities, as the case may be, the Company shall have
 delivered to the Trustee an Opinion of Counsel to the effect that the Holders
 of such Securities will not recognize gain or loss for federal income tax
 purposes as a result of the deposit and Covenant Defeasance to be effected
 with respect to such Securities and will be subject to federal income tax on
 the same amount, in the same manner and at the same times as would be the
 case if such deposit and Covenant Defeasance were not to occur.

 
	
  

 	
  

 
	
  

 	
           (4)
 No event which is, or after notice or lapse of time or both would become, an
 Event of Default with respect to such Securities or any other Securities
 shall have occurred and be continuing at the time of such deposit or, with
 regard to any such event specified in Sections 501(5) and (6), at any time on
 or prior to the 90th day after the date of such deposit (it being understood
 that this condition shall not be deemed satisfied until after such 90th day).

 
	
  

 	
  

 
	
  

 	
           (5)
 Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a
 conflicting interest within the meaning of the Trust Indenture Act (assuming
 all Securities are in default within the meaning of such Act).

 
	
  

 	
  

 
	
  

 	
           (6)
 Such Defeasance or Covenant Defeasance shall not result in a breach or
 violation of, or constitute a default under, any other agreement or
 instrument to which the Company is a party or by which it is bound.

 
	
  

 	
  

 
	
  

 	
           (7)
 Such Defeasance or Covenant Defeasance shall not result in the trust arising
 from such deposit constituting an investment company within the meaning of
 the Investment Company Act unless such trust shall be registered under the
 Investment Company Act or exempt from registration thereunder.

 
	
  

 	
  

 
	
  

 	
           (8)
 The Company shall have delivered to the Trustee an agreement whereby the
 Company irrevocably agrees to forfeit its right, if any, (A) to reset the
 interest rate of such 

 

60

	
  

 	
  

 
	
  

 	
 Securities
 pursuant to Section 307(b) and (B) to extend the Stated Maturity of such
 Securities pursuant to Section 308.

 
	
  

 	
  

 
	
  

 	
           (9)
 If the Securities are to be redeemed prior to Stated Maturity (other than
 from mandatory sinking fund payments or analogous payments), notice of such
 redemption shall have been duly given pursuant to this Indenture or provision
 therefor satisfactory to the Trustee shall have been made.

 
	
  

 	
  

 
	
  

 	
           (10)
 The Company shall have delivered to the Trustee an Officer’s Certificate and
 an Opinion of Counsel, each stating that all conditions precedent with
 respect to such Defeasance or Covenant Defeasance have been complied with.

 

          SECTION
1405. Acknowledgment of Discharge By Trustee.

          Subject
to Section 1407 below and after the Company has delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent referred to in Section 1404 relating to the Defeasance or
Covenant Defeasance, as the case may be, have been complied with, the Trustee
upon request of the Company shall acknowledge in writing the Defeasance or the
Covenant Defeasance, as the case may be.

          SECTION
1406. Deposited Money and U.S. Government Obligations to Be Held in Trust;
Miscellaneous Provisions.

          Subject
to the provisions of the last paragraph of Section 1003, all money and U.S.
Government Obligations (including the proceeds thereof) deposited with the
Trustee or other qualifying trustee (solely for purposes of this Section 1406,
the Trustee and any such other trustee are referred to collectively as the
“Trustee”) pursuant to Section 1404 in respect of any Securities shall be held
in trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any
such Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities, of all sums due and
to become due thereon in respect of principal and any premium and interest, but
money so held in trust need not be segregated from other funds except to the
extent required by law.

          The
Company shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the U.S. Government Obligations deposited
pursuant to Section 1404 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of Outstanding Securities.

          Anything
in this Article Fourteen to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon Company Request any money
or U.S. Government Obligations held by it as provided in Section 1404 with
respect to any Securities which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect the Defeasance or Covenant Defeasance, as
the case may be, with respect to such Securities.

          SECTION
1407. Reinstatement.

          If
the Trustee or the Paying Agent is unable to apply any money in accordance with
this Article Fourteen with respect to any Securities by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the obligations under this 

61

Indenture and
such Securities from which the Company has been discharged or released pursuant
to Section 1402 or 1403 shall be revived and reinstated as though no deposit
had occurred

          pursuant
to this Article Fourteen with respect to such Securities, until such time as
the Trustee or Paying Agent is permitted to apply all money held in trust
pursuant to Section 1406 with respect to such Securities in accordance with
this Article Fourteen; provided, however, that if the Company makes any payment
of principal of or any premium or interest on any such Security following such
reinstatement of its obligations, the Company shall be subrogated to the rights
(if any) of the Holders of such Securities to receive such payment from the
money so held in trust.

          SECTION
1408. Qualifying Trustee.

          Any
trustee appointed pursuant to Section 1404 for the purpose of holding trust
funds deposited pursuant to that Section shall be appointed under an agreement
in form acceptable to the Trustee and shall provide to the Trustee a certificate
of such trustee, upon which certificate the Trustee shall be entitled to
conclusively rely, that all conditions precedent provided for herein to the
related Defeasance or Covenant Defeasance have been complied with. In no event
shall the Trustee be liable for any acts or omissions of said trustee.

ARTICLE FIFTEEN

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS, DIRECTORS AND EMPLOYEES

          SECTION
1501. Exemption from Individual Liability.

          No
recourse under or upon any obligation, covenant or agreement of this Indenture,
or of any Security, or for any claim based thereon or otherwise in respect
thereof, shall be had against any incorporator, stockholder, officer, director
or employee, as such, past, present or future, of the Company, any Subsidiary
or any successor corporation, either directly or through the Company, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise; it being expressly understood that this
Indenture and the obligations issued hereunder are solely corporate obligations
of the Company, and that no such personal liability whatever shall attach to,
or is or shall be incurred by, the incorporators, stockholders, officers,
directors, or employees, as such, of the Company, any Subsidiary or any
successor corporation, or any of them, because of the creation of the
indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom; and that any and all such personal liability, either at
common law or in equity or by constitution or statute, of, and any and all such
rights and claims against, every such incorporator, stockholder, officer,
director or employee, as such, because of the creation of the indebtedness
hereby authorized, or under or by reason of the obligations, covenants or
agreements contained in this Indenture or in any of the Securities or implied
therefrom, are hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of such
Securities.

62

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

	
  

 	
  

 	
  

 
	
  

 	
 GENERAL
 ELECTRIC COMPANY

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Kathryn
 A. Cassidy

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Kathryn A. Cassidy

 
	
  

 	
 Title:
 Senior Vice President and Treasurer

 

	
  

 	
  

 
	
 Attest:

 	
  

 
	
  

 	
  

 
	
 /s/ David P.
 Russell

 	
  

 
	

 

 	
  

 
	
 Name: David
 P. Russell

 	
  

 
	
 Title:
 Attesting Secretary

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF
 NEW YORK MELLON, as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Laurence
 J. O’Brien

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Laurence J. O’Brien

 
	
  

 	
 Title: Vice
 President

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