Document:

exv4w2

 

EXHIBIT 4.2

COOPER CAMERON CORPORATION

as Issuer

and

SUNTRUST BANK

as Trustee

$200,000,000

2.650% SENIOR NOTES DUE 2007

FIRST

SUPPLEMENTAL

INDENTURE

 

Dated as of March 18, 2004

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I ESTABLISHMENT OF NEW SERIES
	 	 	1	 
	Section 1.01. Establishment of New Series
	 	 	1	 
	ARTICLE II DEFINITIONS
	 	 	2	 
	Section 2.01. Definitions in the Indenture
	 	 	2	 
	Section 2.02. Other Definitions
	 	 	4	 
	ARTICLE III THE NOTES
	 	 	4	 
	Section 3.01. Form
	 	 	4	 
	Section 3.02. Issuance of Additional Notes
	 	 	4	 
	ARTICLE IV REDEMPTION
	 	 	4	 
	Section 4.01. Optional Redemption
	 	 	4	 
	Section 4.02. Mandatory Redemption
	 	 	5	 
	ARTICLE V COVENANT SUPPLEMENTS
	 	 	5	 
	Section 5.01. Covenants of the Company
	 	 	5	 
	ARTICLE VI ADDITIONAL EVENT OF DEFAULT
	 	 	7	 
	Section 6.01. Events of Default
	 	 	7	 
	ARTICLE VII MISCELLANEOUS
	 	 	7	 
	Section 7.01. Integral Part
	 	 	7	 
	Section 7.02. Adoption, Ratification and Confirmation
	 	 	7	 
	Section 7.03. Counterparts
	 	 	7	 
	Section 7.04. Governing Law
	 	 	7	 
	Section 7.05. Trustee Makes No Representation; Trustee’s Rights and Duties
	 	 	7	 

EXHIBIT A: Form of Note

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          THIS FIRST SUPPLEMENTAL INDENTURE dated as of March 18, 2004 (this
“Supplemental Indenture”) between Cooper Cameron Corporation, a Delaware
corporation (the “Company” or the “Issuer”), and SunTrust Bank, a Georgia
banking corporation, as trustee (the “Trustee”),

WITNESSETH:

          WHEREAS, the Issuer has heretofore entered into an Indenture, dated as of
March 18, 2004 (the “Original Indenture”), with SunTrust Bank, as trustee;

          WHEREAS, the Original Indenture, as supplemented by this Supplemental
Indenture, is herein called the “Indenture”;

          WHEREAS, under Sections 201, 301 and 901 of the Original Indenture, the
form and terms of a new series of Securities may at any time be established by
a supplemental Indenture executed by the Issuer and the Trustee;

          WHEREAS, the Issuer proposes to create under the Indenture a new series of
Securities; and

          WHEREAS, all conditions necessary to authorize the execution and delivery
of this Supplemental Indenture and to make it a valid and binding obligation of
the Issuer have been done or performed.

          NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE I

ESTABLISHMENT OF NEW SERIES

          Section 1.01. Establishment of New Series. (a) There is hereby established a
new series of Securities to be issued under the Indenture, to be designated as
the Issuer’s 2.650% Senior Notes due 2007 (the “Notes”).

          (b) There are to be authenticated and delivered $200,000,000 principal
amount of Notes on the Issue Date, and from time to time thereafter there may
be authenticated and delivered an unlimited principal amount of Additional
Notes.

          (c) The Notes shall be issued initially in the form of one or more Global
Securities in substantially the form set out in Exhibit A hereto. The
Depositary with respect to the Notes shall be The Depository Trust Company.

          (d) Each Note shall be dated the date of authentication thereof and shall
bear interest as provided in paragraph 1 of the form of Note in Exhibit A
hereto.

          (e) No Additional Amounts shall be payable in relation to the Notes.

 

 

          (f) If and to the extent that the provisions of the Original Indenture are
duplicative of, or in contradiction with, the provisions of this Supplemental
Indenture, the provisions of this Supplemental Indenture shall govern.

ARTICLE II

DEFINITIONS

          Section 2.01. Definitions in the Indenture. All capitalized terms used herein
and not otherwise defined below shall have the meanings ascribed thereto in the
Original Indenture. The following are additional definitions used in this
Supplemental Indenture:

     “Bankruptcy Act” means Title 11, United States Code, or any similar United
States federal or state law (or any similar foreign law) for the relief of
debtors.

     The term “capital stock” of any Person means and includes any and all
shares, rights to purchase, warrants or options (whether or not currently
exercisable), participations or other equivalents of or interests in (however
designated) the equity (which includes, but is not limited to, common stock,
preferred stock and partnership and joint venture interests) of such Person
(excluding any debt securities that are convertible into, or exchangeable for,
such equity).

     “Consolidated Net Tangible Assets” means, at any date of determination,
the total amount of assets after deducting therefrom (1) all current
liabilities (excluding (A) any current liabilities that by their terms are
extendible or renewable at the option of the obligor thereon to a time more
than 12 months after the time as of which the amount thereof is being computed,
and (B) current maturities of long-term debt), and (2) the amount (net of any
applicable reserves) of all goodwill, trade names, trademarks, patents and
other like intangible assets, all as set forth on the consolidated balance
sheet of the Company and its consolidated subsidiaries for the Company’s most
recently completed fiscal quarter, prepared in accordance with GAAP.

     “Debt” means any obligation created or assumed by any Person for the
repayment of money borrowed, any purchase money obligation created or assumed
by such Person and any guarantee of the foregoing.

     “GAAP” means generally accepted accounting principles in the United
States, as in effect from time to time.

     “Global Security” or “Global Note” means a Note that is executed by the
Company and authenticated and delivered by the Trustee to the Depositary or
pursuant to the Depositary’s instruction, all in accordance with this
Indenture, which shall be registered in the name of the Depositary or its
nominee and which shall represent, and shall be denominated in an amount equal
to the aggregate principal amount of, all the Outstanding Notes or any portion
thereof.

     “Issue Date” means the date on which the Notes are initially issued under
this Indenture.

     “Lien” means, as to any Person, any mortgage, lien, pledge, security
interest or other encumbrance in or on, or adverse interest or title of any
vendor, lessor, lender or other secured party

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to or of such Person under
conditional sale or other title retention agreement or capital lease with
respect to, any property or asset of such Person.

     “Notes” has the meaning assigned to it in Section 1.01(a) hereof, and
includes both the Notes issued on the Issue Date and the Additional Notes.

     “Permitted Liens” means (1) any Lien upon, or deposits of, any assets in
favor of any surety company or clerk of court for the purpose of obtaining
indemnity or stay of judicial proceedings; (2) any Lien incurred in the
ordinary course of business in connection with worker’s compensation,
unemployment insurance, temporary disability, social security, retiree health
or similar laws or regulations or to secure obligations imposed by statute or
governmental regulations; or (3) any Lien upon any property or assets in
accordance with customary banking practice to secure any Debt incurred by the
Company or any Restricted Subsidiary in connection with the exporting of goods
to, or between, or the marketing of goods in, or the importing of goods from,
foreign countries.

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

     “Principal Property” means any manufacturing plant, warehouse,
distribution center, aftermarket or storage facility or sales office owned or
leased by the Company or any Subsidiary that is located within the United
States or Canada, except, (1) any such property consisting of inventories,
furniture, office fixtures and equipment (including data processing equipment),
vehicles and equipment used on, or useful with, vehicles and (2) any such
property that, in the opinion of the Board of Directors, is not material in
relation to the activities of the Company and its Subsidiaries, taken as a
whole.

     “Restricted Subsidiary” means any Subsidiary of the Company owning or
leasing, directly or indirectly through ownership in another Subsidiary, any
Principal Property.

     “Subsidiary” means, with respect to any Person,

	 	(1)	 	any other Person of which more than 50% of the total voting
power of capital interests (without regard to any contingency to
vote in the election of directors, managers, trustees, or equivalent
persons), at the time of such determination, is owned or controlled,
directly or indirectly, by such Person or one or more of the
Subsidiaries of such Person;
	 
	 	(2)	 	in the case of a partnership, any Person of which more than
50% of the partners’ capital interests (considering all partners’
capital interests as a single class), at the time of such
determination, is owned or controlled, directly or indirectly, by
such Person or one or more of the Subsidiaries of such Person; or
	 
	 	(3)	 	any other Person in which such Person or one or more of the
Subsidiaries of such Person have the power to control, by contract
or otherwise, the board of directors, managers, trustees or equivalent governing body of, or otherwise
control, such other Person.

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          Section 2.02.Other Definitions.

	 	 	 	 	 
	 	 	Defined in	 
	Term
	 	Section
	 
	“Additional Notes”
	 	 	3.02	 

ARTICLE III

THE NOTES

          Section 3.01. Form. The Notes shall be issued initially in the form of one or
more Global Securities, and the Notes and Trustee’s certificate of
authentication shall be substantially in the form of Exhibit A hereto, the
terms of which are incorporated in and made a part of this Supplemental
Indenture, and the Issuer and the Trustee, by their execution and delivery of
this Supplemental Indenture, expressly agree to such terms and provisions and
to be bound thereby.

          Section 3.02. Issuance of Additional Notes. The Issuer may, from time to time,
issue an unlimited amount of additional Notes (“Additional Notes”) under the
Indenture, which shall be issued in the same form as the Notes issued on the
Issue Date and which shall have identical terms as the Notes issued on the
Issue Date other than with respect to the issue date, issue price and first
payment of interest. The Notes issued on the Issue Date shall be limited in
aggregate principal amount to $200,000,000, subject to the provisions of
Section 306 of the Original Indenture. The Notes issued on the Issue Date and
any Additional Notes subsequently issued shall be treated as a single series
for purposes of giving of notices, consents, waivers, amendments and taking any
other action permitted under the Indenture and for purposes of interest accrual
and redemptions.

ARTICLE IV

REDEMPTION

          Section 4.01. Optional Redemption.

          (a) At its option, the Issuer may choose to redeem all or any portion of
the Notes, at once or from time to time.

          (b) To redeem the Notes, the Issuer must pay a Redemption Price in an
amount determined in accordance with the provisions of paragraph number 5 of
the form of Note in Exhibit
A hereto, plus accrued and unpaid interest, if any, to the Redemption Date
(subject to the right of Holders on the relevant Regular Record Date to receive
interest due on the relevant Interest Payment Date).

          (c) Any redemption pursuant to this Section 4.01 shall be made pursuant to
the provisions of Article Eleven of the Original Indenture. The actual
Redemption Price, calculated as provided in paragraph number 5 of the form of
Note in Exhibit A hereto, shall be certified in writing to the Issuer and the
Trustee by the Independent Investment Banker (as defined in such paragraph 5)
no later than two Business Days prior to each Redemption Date.

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          Section 4.02. Mandatory Redemption. The Issuer shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes and
shall have no obligation to repurchase any Notes at the option of the Holders.

ARTICLE V

COVENANT SUPPLEMENTS

          Section 5.01. Covenants of the Company.

          (a) Section 704 of the Original Indenture is hereby supplemented, but only
in relation to the Notes, by the addition of the following sentence to the end
of such Section:

“If the Company is not subject to the requirements of such
Section 13 or 15(d), the Company shall file with the
Trustee, within 15 days after it would have been required to
file the same with the Commission, financial statements,
including any notes thereto (and with respect to annual
reports, an auditors’ report by a firm of established
national reputation), and a “Management’s Discussion and
Analysis of Financial Condition and Results of Operations,”
both comparable to that which the Company would have been
required to include in such annual reports, information,
documents or other reports if the Company had been subject
to the requirements of such Section 13 or 15(d).”

          (b) Article Ten of the Original Indenture is hereby supplemented, but only
in relation to the Notes, by the addition of the following new Section 1008 at
the end of Article Ten:

“Section 1008 Limitations on Liens.

     The Company will not, nor will it permit any Subsidiary to, create,
assume, incur or suffer to exist any Lien upon any Principal Property or upon
any capital stock of any Restricted Subsidiary, whether owned or leased on the
date of this Indenture or thereafter acquired, to secure any Debt of
the Company or any other Person (other than the Securities issued
hereunder), without in any such case making effective provision whereby all of
the Notes and other Securities then Outstanding hereunder shall be secured
equally and ratably with, or prior to, such Debt so long as such Debt shall be
so secured. This restriction shall not apply to:

          (a) any Lien upon any property or assets owned by the Company or any
Restricted Subsidiary in existence on the Issue Date;

          (b) any Lien upon any property or assets created at the time of
acquisition of such property or assets by the Company or any Restricted
Subsidiary or within one year after such time to secure all or a portion of the
purchase price for such property or assets or Debt incurred to finance such
purchase price, whether such Debt was incurred prior to, at the time of or
within one year of such acquisition;

          (c) any Lien upon any property or assets existing thereon at the time of
the acquisition thereof by the Company or any Restricted Subsidiary (whether or
not the obligations

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secured thereby are assumed by the Company or any
Restricted Subsidiary), provided that such Lien only encumbers the property or
assets so acquired;

          (d) any Lien upon any property or assets of a Person existing thereon at
the time such Person becomes a Restricted Subsidiary by acquisition, merger or
otherwise, provided that such Lien is not incurred in anticipation of such
Person becoming a Restricted Subsidiary;

          (e) any Lien upon property or assets to secure all or part of the cost of
construction, development, repair or improvements thereon or to secure Debt
incurred prior to, at the time of, or within one year after completion of such
construction, development, repair or improvements or the commencement of full
operations thereof (whichever is later), to provide funds for any such purpose;

          (f) any Lien in favor of the Company or any Restricted Subsidiary;

          (g) any Lien created or assumed by the Company or any Restricted
Subsidiary in connection with the issuance of Debt the interest on which is
excludable from gross income of the holder of such Debt pursuant to the
Internal Revenue Code of 1986, as amended, or any successor statute, for the
purpose of financing, in whole or in part, the acquisition or construction of
property or assets to be used by the Company or any Subsidiary;

          (h) Permitted Liens;

          (i) any Lien upon any additions, improvements, replacements, repairs,
fixtures, appurtenances or component parts thereof attaching to or required to
be attached to property or assets pursuant to the terms of any mortgage, pledge
agreement, security agreement or other similar instrument, creating a Lien upon
such property or assets permitted by Clauses (a) through (h), inclusive, of
this Section; or

          (j) any extension, renewal, refinancing, refunding or replacement (or
successive extensions, renewals, refinancings, refundings or replacements) of
any Lien, in whole or in part, that
is referred to in Clauses (a) through (i), inclusive, of this Section, or
of any Debt secured thereby; provided, however, that the principal amount of
Debt secured thereby shall not exceed the greater of (1) the principal amount
of Debt so secured at the time of such extension, renewal, refinancing,
refunding or replacement (plus the aggregate amount of premiums, other
payments, costs and expenses required to be paid or incurred in connection with
such extension, renewal, refinancing, refunding or replacement) and (2) the
maximum committed principal amount of Debt so secured at such time; provided
further, however, that such extension, renewal, refinancing, refunding or
replacement shall be limited to all or a part of the property or assets
(including improvements, alterations and repairs on such property or assets)
subject to the Lien so extended, renewed, refinanced, refunded or replaced
(plus improvements, alterations and repairs on such property or assets).

     Notwithstanding the foregoing provisions of this Section, the Company may,
and may permit any Restricted Subsidiary to, create, assume, incur or suffer to
exist any Lien upon any Principal Property or capital stock of a Restricted
Subsidiary to secure Debt of the Partnership or any other

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Person (other than
the Securities) that is not excepted by Clauses (a) through (j), inclusive, of
this Section without securing the Notes and other Securities issued hereunder,
provided that the aggregate principal amount of all Debt then outstanding
secured by such Lien and all other Liens not excepted by Clauses (a) through
(j), inclusive, of this Section do not exceed at any one time 10% of
Consolidated Net Tangible Assets.”

ARTICLE VI

ADDITIONAL EVENT OF DEFAULT

          Section 6.01. Events of Default. With respect to the Notes only, the following
additional Event of Default is hereby added to Section 5.01(7) of the Original
Indenture:

      “(7) default in the payment of any principal of any Debt of the
Company or any of its Subsidiaries outstanding in an aggregate principal
amount in excess of $75,000,000 at the final stated maturity thereof or
the occurrence of any other default thereunder, the effect of which
default is to cause the Debt of the Company or any of its Subsidiaries in
excess of such amount to become, or to be declared, due prior to its
final stated maturity, and there is 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 and
requiring it to be remedied and stating that such notice is a “Notice of
Default” hereunder, unless (A) such default shall be cured, by payment or
otherwise, within 30 days after the receipt by the Company of such
written notice or (B) the acceleration is rescinded or annulled or the
default that caused the acceleration is cured within 30 days after the
receipt by the Company of such written notice.”

ARTICLE VII

MISCELLANEOUS

          Section 7.01. Integral Part. This Supplemental Indenture constitutes an integral part of the Indenture.

          Section 7.02. Adoption, Ratification and Confirmation. The Original Indenture,
as supplemented and amended by this Supplemental Indenture, is in all respects
hereby adopted, ratified and confirmed.

          Section 7.03. Counterparts. This Supplemental Indenture may be executed in any
number of counterparts, each of which when so executed shall be deemed an
original; and all such counterparts shall together constitute but one and the
same instrument.

          Section 7.04. Governing Law. THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

          Section 7.05. Trustee Makes No Representation; Trustee’s Rights and Duties.
The Trustee makes no representation as to the validity or sufficiency of this
Supplemental Indenture and shall not be liable in connection therewith. The
rights and duties of the Trustee shall be determined by the express provisions
of the Original Indenture and, except as expressly set forth in this
Supplemental Indenture, nothing in this Supplemental Indenture shall in any way
modify or otherwise affect the Trustee’s rights and duties thereunder.

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SIGNATURES

	 	 	 	 	 
	

	 	ISSUER:
	 
	 	 	 	 
	

	 	COOPER CAMERON CORPORATION
	 
	 	 	 	 
	

	 	By:	 	/s/ Michael C. Jennings
	

	 	 	 	
 
	

	 	Name:	 	Michael C. Jennings
	

	 	 	 	
 
	

	 	Title:	 	Vice President and Treasurer
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	TRUSTEE:
	 
	 	 	 	 
	

	 	SUNTRUST BANK,

as Trustee
	 
	 	 	 	 
	

	 	By:	 	/s/ Jack Ellerin
	

	 	 	 	
 
	

	 	Name:	 	Jack Ellerin
	

	 	 	 	
 
	

	 	Title:	 	Assistant Vice President
	

	 	 	 	
 

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EXHIBIT A

(Form of Face of Note)

			
	CUSIP 216640 AC 6
	 	No.            

			
	ISIN US216640AC61
	 	$                       

COOPER CAMERON CORPORATION

2.650% Senior Note due 2007

Cooper Cameron Corporation, a Delaware corporation, promises to pay to
                  , or registered assigns, the principal sum of                    Dollars [or
such greater or lesser amount as may be endorsed on the Schedule attached
hereto]1 on April 15, 2007.

Interest Payment Dates: April 15 and October 15

Record Dates: April 1 and October 1

	 	 	 	 	 
	

	 	COOPER CAMERON CORPORATION
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	Name:	 	 
	

	 	 	 	
 
	

	 	Title:	 	 
	

	 	 	 	
 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

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

	 	 	 	 
	SUNTRUST BANK,

as Trustee
	 
	 	 	 
	By:
	 	 	 
	

	 	
 	 
	

	 	Authorized Signatory	 
	 
	 	 	 
	Dated:
	 	 	 
	

	 	
 	 

	1	To be included only if the Note is issued in global form.

 

 

(Form of Back of Note)

2.650% Senior Note due 2007

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

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT
NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO HEREIN.]2

          Capitalized terms used herein shall have the meanings assigned to them in
the Indenture referred to below unless otherwise indicated.

          1. Interest; Additional Interest. Cooper Cameron Corporation, a Delaware
corporation (the “Company” or the “Issuer”), promises to pay interest on the
principal amount of this Note at 2.650% per annum from March 18, 2004 until
maturity. The Issuer shall pay interest semi-annually on April 15 and October
15 of each such year, or if any such day is not a Business Day, on the next
succeeding Business Day (each an “Interest Payment Date”). Interest on the
Notes shall accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from the date of issuance; provided that if
there is no existing default in the payment of interest, and if this Note is
authenticated between a Regular Record Date referred to on the face hereof and
the next succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date; provided, further, that the first Interest
Payment Date shall be October 15, 2004. The Issuer shall pay interest
(including post-petition interest in any proceeding under the Bankruptcy Act)
on overdue principal and premium, if any, from time to time on demand at the
same rate; and it shall pay interest (including post-petition interest in any
proceeding under the Bankruptcy Act) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest shall be computed on the basis of
a 360-day year of twelve 30-day months.

	2	To be included only if the Note is issued in global form.

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          2. Method of Payment. The Issuer shall pay interest on the Notes (except
Defaulted Interest) to the Persons who are registered Holders of Notes at the
close of business on the April 1 or October 1 next preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or
before such Interest Payment Date, except as provided in Section 307 of the
Original Indenture with respect to Defaulted Interest, and the Issuer shall pay
principal (and premium, if any) of the Notes upon surrender thereof to the
Trustee or a Paying Agent on or after the Stated Maturity thereof. The Notes
shall be payable as to principal, premium, if any, and interest at the office
or agency of the Trustee maintained for such purpose (which initially is c/o
Computershare Trust Company, Wall Street Plaza, 88 Pine Street, 19th Floor, New
York, New York 10005), or, at the option of the Issuer, payment of interest may
be made by check mailed to the Holders at their addresses set forth in the
register of Holders, and provided that payment by wire transfer of immediately
available funds shall be required with respect to principal of, and interest
and premium, if any, on, (a) each Global Security and (b) all other Notes
aggregating at least $1,000,000 in principal amount the Holder of which shall
have provided wire transfer instructions to the Issuer or the paying agent on
or prior to the applicable record date. Such payment shall be 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.

          3. Paying Agent and Registrar. Initially, SunTrust Bank, the Trustee
under the Indenture, shall act as Paying Agent and Security Registrar. The
Issuer may change any Paying Agent or Security Registrar without notice to any
Holder. The Issuer may act in any such capacity.

          4. Indenture. The Issuer issued the Notes under an Indenture dated as of
March 18, 2004 (the “Original Indenture”), as supplemented by the First
Supplemental Indenture dated as of the same date (the “Supplemental Indenture”
and, together with the Original Indenture, the “Indenture”) between the Issuer
and the Trustee. The terms of the Notes include those stated in the Indenture
and those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all
such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms. To the extent any provision of this Note conflicts
with the express provisions of the Indenture, the provisions of the Indenture
shall govern and be controlling. The Notes are the obligation of the Issuer,
initially in aggregate principal amount of $200 million. The Issuer may issue
an unlimited principal amount of Additional Notes under the Indenture. Any
such Additional Notes that are actually issued shall be treated as issued and
outstanding Notes (and as the same series (with identical terms other than with
respect to the issue date, issue price and first payment of interest) as the
initial Notes for the purposes indicated in Section 3.02 of the Supplemental
Indenture).

          5. Optional Redemption. (a) At its option, the Issuer may choose to
redeem all or any portion of the Notes, at once or from time to time.

          (b) To redeem the Notes, the Issuer must pay a Redemption Price equal to
the greater of (i) 100% of the principal amount of the Notes to be redeemed and
(ii) the sum of the present values of the remaining scheduled payments of
principal and interest on the Notes to be redeemed (exclusive of interest
accrued to the Redemption Date) from the Redemption Date to April 15, 2007
computed by discounting such payments to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at a rate
equal to the sum of the

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Treasury Rate (as defined below) plus 15 basis points, plus, in either
case, accrued and unpaid interest, if any, to the Redemption Date (subject to
the right of Holders on the relevant Regular Record Date to receive interest
due on the relevant Interest Payment Date).

     For purposes of determining the Redemption Price, the following
definitions shall apply:

          “Comparable Treasury Issue” means the United States Treasury security or
securities selected by the Independent Investment Banker as having an actual or
interpolated maturity comparable to the remaining term of the Notes to be
redeemed that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt
securities of a comparable maturity to the remaining term of the Notes to be
redeemed.

          “Comparable Treasury Price” means, for any Redemption Date, (1) the
average of five Reference Treasury Dealer Quotations for such Redemption Date,
after excluding the highest and lowest such Reference Treasury Dealer
Quotations, or (2) if the Independent Investment Banker obtains fewer than five
such Reference Treasury Dealer Quotations, the average of all such quotations.

          “Independent Investment Banker” means UBS Securities LLC and any successor
firm, or if such firm is unwilling or unable to serve as such, an independent
investment banking institution of national standing appointed by the Company.

          “Reference Treasury Dealer” means each of ABN AMRO Incorporated and UBS
Securities LLC, plus up to three other dealers selected by the Company that are
primary U.S. government securities dealers and their respective successors;
provided, if any of ABN AMRO Incorporated or UBS Securities LLC or any primary
U.S. government securities dealer selected by the Company shall cease to be a
primary U.S. government securities dealer, then such other primary U.S.
government securities dealers as may be substituted by the Company.

          “Reference Treasury Dealer Quotations” means, for each Reference Treasury
Dealer and any Redemption Date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Independent Investment Banker by such Reference Treasury
Dealer at 3:30 p.m., New York City time, on the third Business Day preceding
such Redemption Date.

          “Treasury Rate” means, with respect to any Redemption Date, (1) the yield,
under the heading which represents the average for the immediately preceding
week, appearing in the most recently published statistical release designated
“H.15(519)” or any successor publication which is published weekly by the Board
of Governors of the Federal Reserve System and which establishes yields on
actively traded United States Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities,” for the maturity
corresponding to the Comparable Treasury Issue (if no maturity is within three
months before or after the remaining term of the Notes to be redeemed, yields
for the two published maturities most closely corresponding to the Comparable
Treasury Issue shall be determined and the Treasury Rate shall be interpolated
or extrapolated from such yields on a straight line basis, rounding to the
nearest month) or (2) if such release (or any

A-4

 

successor release) is not published during the week in which the
calculation date falls (or in the immediately preceding week if the calculation
date falls on any day prior to the usual publication date for such release) or
does not contain such yields, the rate per year equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue, calculated using
a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for such Redemption
Date. The Treasury Rate shall be calculated on the third Business Day
preceding the Redemption Date. Any weekly average yields calculated by
interpolation or extrapolation will be rounded to the nearest 1/100th of 1%,
with any figure of 1/200th of 1% or above being rounded upward.

          6. Mandatory Redemption. The Issuer shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes or to
repurchase them at the option of the Holders.

          7. Notice of Redemption. Notice of redemption shall be mailed at least 30
days but not more than 60 days before the Redemption Date to each Holder whose
Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the Redemption Date interest shall cease to accrue on Notes or portions
thereof called for redemption and with respect to which the Redemption Price
has been paid.

          8. Denominations, Transfer, Exchange. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000.
The transfer of Notes may be registered and Notes may be exchanged as provided
in the Indenture. The Security Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents,
and the Issuer may require a Holder to pay any taxes or other governmental
charges imposed in relation thereto.

          9. Persons Deemed Owners. The registered Holder of a Note shall be
treated as its owner for all purposes.

          10. Amendment, Supplement and Waiver. Subject to certain exceptions, the
Indenture may be amended or supplemented with the consent of the Holders of not
less than a majority in principal amount of the then Outstanding Securities of
each series affected thereby, any existing default relating to the Notes may be
waived with the consent of the Holders of not less than a majority in principal
amount of the then Outstanding Notes, and the Holders of not less than a
majority in principal amount of all Outstanding Securities may on behalf of the
Holders of all Outstanding Securities waive any other default under the
Indenture. Without the consent of any Holder of a Note, the Indenture may be
amended or supplemented for any of the purposes set forth in Section 901 of the
Indenture, including to cure any ambiguity, defect or inconsistency, to provide
for the assumption of the Issuer’s obligations to Holders of the Notes in case
of a merger or consolidation of the Issuer or sale of all or substantially all
of the Issuer’s assets, to make any change that does not adversely affect the
rights under the Indenture of any Holder of the Notes in any material respect,
to comply with the requirements of the Commission to permit the qualification
of the Indenture under the Trust Indenture Act, to evidence or provide for the
acceptance of appointment under the Indenture of a successor or additional
Trustee, to add to the covenants of the

A-5

 

Issuer or any additional Events of Default, to secure the Notes or to
establish the form or terms of any other series of Securities.

          11. Events of Defaults and Acceleration. Events of Default with respect
to the Notes include: (i) default for 30 days in the payment when due of
interest on the Notes; (ii) default in payment when due of principal of or
premium, if any, on the Notes when due at Stated Maturity, upon redemption or
otherwise; (iii) failure to perform or breach of any covenant or warranty of
the Company in the Indenture (other than a covenant or warranty referred to in
clause (i) or (ii) or included in the Indenture for the sole benefit of a
series of Securities other than the Notes), and continuance of such default 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
all series affected thereby a written notice specifying such default and
requiring it to be remedied and stating that such notice is a “Notice of
Default” under the Indenture; (iv) default in the payment of any principal of
any Debt of the Company or any Subsidiary outstanding in an aggregate principal
amount in excess of $75,000,000 at the final stated maturity thereof or the
occurrence of any other default thereunder, the effect of which default is to
cause such Debt to become, or to be declared, due prior to its final stated
maturity, and 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 Notes a written notice
specifying such default and requiring it to be remedied and stating that such
notice is “Notice of Default” unless (A) such default shall be cured, by
payment or otherwise, within 30 days after the Company’s receipt of such notice
or (B) the acceleration is rescinded or annulled or the default that caused the
acceleration is cured within 30 days after the Company’s receipt of such
notice; and (v) certain events of bankruptcy, insolvency or reorganization with
respect to the Issuer. If any Event of Default referred to in clause (i), (ii)
or (iv) occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then Outstanding Notes may declare all the Notes to be
due and payable. If an Event of Default referred to in clause (iii) occurs and
is continuing the Trustee or the Holders of at least 25% in principal amount of
all Outstanding Securities of all series affected by such default, including
the Notes, may declare all such Securities to be due and payable.
Notwithstanding the foregoing, in the case of an Event of Default referred to
in clause (v), all Outstanding Securities shall become due and payable without
further action or notice. Holders may not enforce the Indenture or the Notes
except as provided in the Indenture.

          12. Authentication. This Note shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

          13. Abbreviations. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

          14. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Issuer has
caused CUSIP and corresponding ISIN numbers to be printed on the Notes, and the
Trustee may use CUSIP and corresponding ISIN numbers in notices of redemption
as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as
printed on the Notes or as contained in any notice of redemption and reliance
may be placed only on the other identification numbers placed thereon.

          The Issuer shall furnish to any Holder upon written request and without
charge a copy of the Indenture. Requests may be made to:

	 	 
	
	Cooper Cameron Corporation

	
	1333 West Loop South, Suite 1700

	
	Houston, Texas 77027

	
	Attention: General Counsel

A-6

 

Assignment Form

To assign this Note, fill in the form below: (I) or (we) assign and transfer
this Note to

(Insert assignee’s soc. sec. or tax I.D. no.)

(Print or type assignee’s name, address and zip code)

and irrevocably appoint                                        
agent to transfer this Note on the books of the Issuer. The agent may
substitute another to act for him.

	 	 	 	 
	Date:
	 	 	 
	

	 	
 	 

	 	 	 	 
	 	Your Signature:

	 	

	 	
 
	

	 	(Sign exactly as your name appears on the face of this Note)

	 	 	 
	Signature Guarantee:
	 	 
	

	 	
 
	

	 	(Signature must be guaranteed by a financial institution
that is a member of the Securities Transfer Agent Medallion
Program (“STAMP”), the Stock Exchange Medallion Program
(“SEMP”), the New York Stock Exchange, Inc. Medallion
Signature Program (“MSP”) or such other signature guarantee
program as may be determined by the Registrar in addition
to, or in substitution for, STAMP, SEMP or MSP, all in
accordance with the Securities Exchange Act of 1934, as
amended.)

 

 

SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE3

     The original principal amount of this Global Note is $200,000,000. The
following increases or decreases in this Global Note have been made:

	 	 	 
	 	 	 	 	 	 	 	 	Principal	 	 	 
	 	 	Amount of	 	 	Amount of	 	 	Amount of	 	 	Signature of
	 	 	decrease in	 	 	increase in	 	 	this Global Note	 	 	authorized
	 	 	Principal Amount	 	 	Principal Amount	 	 	following such	 	 	signatory of
	Date of	 	of	 	 	of	 	 	decrease	 	 	Trustee or Note
	Exchange
	 	this Global Note
	 	 	this Global Note
	 	 	(or increase)
	 	 	Custodian

	3	To be included only if the Note is issued in global form.<PAGE>
                                                                   EXHIBIT 10.16

                         University City Science Center
                                LICENSE AGREEMENT

         This LICENSE AGREEMENT (this "Agreement"), dated as of this 30 day of
July, 2001, by and between UNIVERSITY CITY SCIENCE CENTER (the "Licensor")
having an office at 3624 Market Street, Philadelphia, PA 19104 and CARESCIENCE,
INC., (the "Licensee") whose present address is 6th Floor, 3600 Market Street,
Philadelphia, Pennsylvania 19104

                                   WITNESSETH:

         WHEREAS, Licensor is the owner of a building located at 3550 Market
Street, Philadelphia, PA 19104 (the "Building"); and

         WHEREAS, Licensor desires to grant to Licensee and Licensee desires to
obtain from Licensor a license to enter the portion of the Building located on
the second floor consisting of 831 rentable square feet as shown on Exhibit A
attached hereto and made a part hereof (the "Premises").

         NOW, THEREFORE, in consideration of the mutual promises contained
herein, Licensor and Licensee agree as follows:

         1. Licensed Area. Licensor grants to Licensee and Licensee accepts from
Licensor a revocable license (the "License") to use the Premises, subject to the
terms and conditions contained herein.

         2. Term. The term of the License granted hereby shall commence on the
same date as the Lease between the Licensor and Licensee for premises located at
7th Floor, 3660 Market Street, Philadelphia, PA (the "Commencement Date") and
shall expire on midnight of the last day of the five (5) year period following
the Commencement Date.

         3. License Fee. The fee for the use of the Premises by Licensee (the
"License Fee") shall be payable in advance, in equal monthly installments of
$1,073.38 with the payment for the first month (or portion thereof) due upon
execution of this Agreement and thereafter on the first day of each month. If
the Commencement Date is not the first day of a calendar month, or if this
License should terminate at any time other than the last day of a calendar
month, the amount of License Fee due from Licensee for the portion of such
month shall be proportionately adjusted based on that portion of the month that
this License is in effect. If Licensee fails to pay an installment of the
License Fee within five days after the date when due, a late fee equal to 5% of
the past due installment may be assessed at the option of the Licensor. The
parties hereto agree that such License fee includes all charges to Licensee for
utilities, operating expenses and similar changes, except for any utilities such
as telephone service for which Licensee contracts independently.

         4. Intentionally omitted.

<PAGE>

         5 . Permitted Use. The Premises shall only be used for office use,
research and development and laboratory use in a manner consistent with the
purposes of the University City Science Center as of the date hereof, which are
to stimulate scientific research and development primarily in the Middle
Atlantic region of the United States; to promote the economic growth and health
of that region by promoting the establishment and expansion in the region of
business and industry oriented towards science and research; and to encourage
the private sector to participate in these endeavors and for no other purpose.

         6. Condition of Premises. Licensor has made no representations to the
condition of the Premises or the fitness or availability of the Premises for any
particular use, and Licensee shall accept the Premises in the configuration
shown on Exhibit A.

         7. Right to Enter. Licensee shall have the right at Licensee's expense
to secure the Premises with appropriate locks and security devices consistent
with building standard elements. Notwithstanding the foregoing, Licensor, its
agents (including, without limitation, Licensor's building manager) or employees
shall be given the keys (and/or security information) necessary in order for
Licensor to enter the Premises, and Licensor, its agents (including, without
limitation, Licensor's building manager) and employees may enter the Premises at
reasonable times including normal business hours upon reasonable advance notice,
and at any time in the event of an emergency, to: (a) exhibit the Premises to
prospective purchasers or Licensees of the Building or the Premises; (b) inspect
the Premises to see that Licensee is complying with its obligations hereunder;
(c) make repairs, alterations, improvements and additions required of Licensor
under the terms hereof, or that are advisable in Licensor's determination to
preserve the integrity, safety and good order of all or any part of the Premises
or the Building, including any systems serving the Building which run through
the Premises, or which may be necessary to comply with applicable laws,
ordinances or other requirements of any governmental entity or agency having
jurisdiction; (d) provide any services required under this License; and (e)
remove any alterations, additions or improvements made by Licensee in violation
of this Agreement.

         8. Insurance and Indeminity. Licensee agrees that, at Licensee's own
cost and expense, Licensee will procure and continue in force the following
insurance coverage during the term of this Agreement: general liability
insurance on an occurrence basis covering any and all claims for injuries to
persons occurring in, upon, or about the Premises, including any period during
which Licensee is engaged in making any repairs or alterations to the Premises,
and including all damage to or from signs, glass, awnings, fixtures, or other
appurtenances now or hereafter erected by Licensee or erected on Licensee's
behalf, on or about the Premises during the term of this Agreement, with minimum
limits of $3,000,000 for personal and bodily injury to, or death of, any one
person; $3,000,000 for personal and bodily injury to, or death of, more than one
than one person in one occurrence; and $3,000,000.00 for property damage; and
such insurance shall also include contractual liability coverage. Such insurance
shall be written with a company or companies of recognized responsibility
authorized to engage in the business of general liability insurance in the
Commonwealth of Pennsylvania. There shall be delivered to Licensor: (i) at least
10 days prior to the day upon which this Agreement shall commence, a certificate
of such insurance, and (ii) at least 10 days prior to the expiration of any
policy, a renewal or replacement of such insurance, with proof satisfactory to
Licensor of the payments of premiums therefore. All such policies shall name
Licensor (and any other party designated by Licensor) as an additional insured,
and shall contain a provision that such policies may not be

                                      -2-
<PAGE>

canceled or changed without at least 10 days' prior written notice to Licensor.
In the event Licensee fails to furnish such policies, Licensor may obtain such
insurance, the cost of which shall be deemed additional rent to be paid by
Licensee to Licensor upon demand. Licensor covenants that it will maintain
insurance on the Premises for the full replacement value thereof, and liability
insurance in amounts equal to those required of the Licensee herein.

                  Notwithstanding any other provision of this Agreement,
Licensor shall not be liable or responsible for, and Licensee hereby releases
Licensor and its partners, officers, directors, agents and employees from, any
and all liability or responsibility to Licensee or any Person claiming by,
through, or under Licensee, by way of subrogation or otherwise, for any injury,
loss or damage to Licensee's property covered by a valid and collectible fire
insurance policy with extended coverage endorsement, and Licensee shall require
its insurer(s) to include in all of Licensee's insurance policies which could
give rise to a right of subrogation against Licensor a clause or endorsement
whereby the insurer(s) shall waive any rights of subrogation against Licensor.

                  Notwithstanding any other provision of this Agreement,
Licensee shall not be liable or responsible for, and Licensor hereby releases
Licensee and its partners, officers, directors, agents and employees from, any
and all liability or responsibility to Licensor or any Person claiming by,
through, or under Licensor, by way of subrogation or otherwise, for any injury,
loss or damage to Licensor's property covered by a valid and collectible fire
insurance policy with extended coverage endorsement, and Licensor shall require
its insurer(s) to include in all of Licensor's insurance policies which could
give rise to a right of subrogation against Licensee a clause or endorsement
whereby the insurer(s) shall waive any rights of subrogation against Licensee.

         9 . Compliance with Law. Licensee agrees to comply promptly with all
laws and ordinances and other notices, requirements, orders, regulations and
recommendations (whatever the nature thereof may be) of any and all the Federal,
State, County or Municipal authorities or of the Board of Fire Underwriters or
any insurance organizations, associations or companies, with respect to
Licensee's use of the Premises and any property appurtenant thereto. Licensor
warrants that the Premises are now in compliance with all applicable laws and
ordinances.

         10. Indemnification and Release. Licensor shall not be held responsible
for, and is hereby expressly relieved from, any and all liability by reason of
any injury, loss or damage to any person or property in or about the Premises or
the Building whether the same be due to fire, breakage, leakage, water flow,
stream, gas, use, misuse, abuse of elevators or defects therein, hatches,
openings, defective construction or condition anywhere in the Building, failure
of water supply, or light or power, defects in electric wiring, plumbing or
other equipment or mechanism, wind, lightning, storm or any other cause whatever
whether the loss, injury or damage be to the person or property of Licensee or
any other person, unless due to any oversight, neglect or negligence of
Licensor, occurring before or after the execution of this Agreement. Licensee
further agrees to indemnify, defend and save Licensor harmless from and against
all claims by any employee or invitee of Licensee made on account of such
injury, loss or damage, including but not limited to reasonable attorneys' fees
and other legal expenses. Except for the willful or negligent acts or omissions
of Licensee or its agents or employees, invitees or licensees, Licensor

                                      -3-
<PAGE>

hereby agrees to indemnify and hold harmless Licensee from and against any and
all claims, losses, actions, damages, liabilities and expenses (including
reasonable attorneys' fees) that arise from or are in connection with the common
areas of the Building, any spaces occupied by other tenants of the Building, or
any default by Licensor hereunder.

         11. Licensee's Risk. Licensee shall, at all times during the Term
hereof and for such further time as Licensee shall occupy the Premises or any
part thereof, keep all effects and property of every kind, nature and
description of Licensee and of all persons claiming by, through or under
Licensee which, during the continuance of this Agreement or any occupancy of the
Premises by Licensee or anyone claiming under Licensee, may be in the Premises
or in the Building, at the sole risk and hazard of Licensee, and if the same
shall be lost or damaged by any cause, no part of said loss or damage is to be
charged to or to be borne by Licensor, except that Licensor shall in no event be
indemnified or held harmless or exonerated from any liability to Licensee or to
any other person, for any injury, loss, damage or liability to the extent
prohibited by law.

         12. Yield Up: Holdover. No later than the last day of the Term or
earlier termination as provided herein, Licensee will remove all Licensee's
personal property and, if requested by Licensor, the locks and security devices
permitted pursuant to Paragraph 7 hereof, and repair all injury done by or in
connection with installation or removal of said property and surrender the
Premises (together with all keys, access cards or entrance passes to the
Premises and/or Building) in as good a condition as it was at the beginning of
the Term, reasonable wear and tear, unrepaired casualty not caused by Licensee
and condemnation excepted. All property of Licensee remaining in the Premises
without Licensor's consent after expiration or earlier termination of the Term
shall be deemed conclusively abandoned and may be removed by Licensor, and
Licensee shall reimburse Licensor for the cost of removing the same and for any
repair to the Premises or the Building as a result of such removal, subject,
however, to Licensor's right to require Licensee to remove any improvements or
additions made to the Premises by Licensee pursuant to the terms of this
License. If Licensee shall not immediately surrender possession of the Premises
at the expiration or termination of this Agreement, or if property of Licensee
remains in the Premises after the expiration or termination of this Agreement
without Licensor's consent, unless otherwise agreed to in writing by Licensor,
during such holdover period the License Fee shall increase to an amount equal to
150% of the License Fee payable hereunder immediately prior to the expiration or
termination of this Agreement. Nothing in the provisions of this Paragraph 12
shall constitute Licensor's consent to any holdover by Licensee or shall impair
Licensor's right to evict Licensee or exercise Licensor's other rights and
remedies under this Agreement or under applicable law on account of any
holdover.

         13. Assignment. Licensee shall not assign, pledge or otherwise transfer
its rights under this Agreement in whole or in part, whether voluntarily,
involuntarily or by operation of law.

         14. Alterations. Licensee shall not make any installations, alterations
or additions in, to or on the Premises without on each occasion obtaining the
prior written consent of Licensor. If Licensor shall consent to any such
alterations, Licensee will use only contractors or workers consented to by
Licensor in writing prior to the time such work is commenced. Licensor may
condition its consent upon its receipt of acceptable lien waivers and
certificates of insurance

                                      -4-
<PAGE>
from such contractors or workmen. Licensee shall promptly satisfy any lien or
claim of lien for material or labor claimed against the Premises or Building, or
both, by such contractors or workmen if such claim should arise, and hereby
indemnifies and holds Licensor harmless from and against any and all losses,
costs, damages, expenses or liabilities including, but not limited to,
attorney's fees, incurred by Licensor, as a result of or in any way related to
such claims or such liens.

         15. Casualtv or Condemnation. In the event of a casualty or
condemnation which renders all or a part of the Premises unusable by Licensee;
either Licensee or Licensor may elect to terminate this Agreement by giving 10
days' written notice to the other of such termination.

         16. Maintenance: Nuisance. Etc. Licensee shall keep and maintain the
Premises in good and safe order and repair. Licensee shall not injure, deface or
otherwise harm the Premises or the Building; nor commit any nuisance; nor make,
allow or suffer any waste; nor interfere with or disturb the quiet enjoyment of
the use of the Building or any portion thereof by any other licensees or
Licensees in the Building; nor make any use of the Premises which is improper,
offensive or contrary to any law or ordinance or which will invalidate or
increase the premiums for any of Licensor's insurance.

         17. Signage Licensee shall have a listing on the building directory and
a building standard sign mounted outside its suite entry.

         18. Hazardous Materials.

                  (a) "Hazardous Substance" shall mean any hazardous or toxic
substance, material or waste which is or becomes regulated by any local, state
or federal governmental authority having jurisdiction. The term "Hazardous
Substance" includes, without limitation, any material or substance which is (i)
designated as a "hazardous substance" pursuant to Section 311 of the Federal
Water Pollution Control Act (33 U.S.C. Section 1317), (ii) defined as a
"hazardous waste" pursuant to Section 1004 of the Resource Conservation and
Recovery Act, 42 U.S.C. Section 6901 et seq. (42 U.S.C. Section 6903), (iii)
defined as a "hazardous substance" pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601
et seq. (42 U.S.C. Section 9601), (iv) petroleum or (v) asbestos or
asbestos-containing materials.

                  (b) Licensee shall not cause or suffer or allow any Hazardous
Substances to be brought upon, kept, used, discharged, deposited or leaked in or
about the Premises or the Property by Licensee or any of Licensee's contractors,
employees or invitees or by anyone in the Premises (other than Licensor or its
agents, employees or contractors), except to the extent such Hazardous
Substances are customarily kept or used by typical office Licensees. If the
obligations imposed by the preceding sentence are breached, or if the presence
of any Hazardous Substance on the Premises or the Property caused or suffered or
permitted by Licensee or any of Licensee's contractors, employees or invitees or
by anyone in the Premises (other than Licensor or its agents, employees or
contractors) results in contamination of the Premises or the Property, then
Licensee shall indemnify, defend and hold Licensor harmless from any and all
claims, judgments, damages, penalties, fines, costs, liabilities, expenses and
losses (including, without limitation, diminution in value of the Property,
damages for the loss or restriction on use of

                                      -5-
<PAGE>

leasable space or of any amenity of the Building, damages arising from any
adverse impact on marketing of space and sums paid in settlement of claims,
attorneys' fees, consultant fees and expert fees) which arise during or after
the Term as a result of such contamination. This indemnification shall include,
without limitation, costs incurred in connection with any investigation of site
conditions or any clean-up, remedial, removal or restoration work required by
any federal, state or local governmental agency or political subdivision because
of any Hazardous Substance present in the soil or groundwater on or under the
Property.

         19. Default. Licensee's failure to observe or perform any covenant or
agreement contained herein on Licensee's part to be observed or performed, after
Licensor shall have given Licensee ten (10) days' written notice of such
non-observance or non-performance, shall constitute a default hereunder. In the
event of a default hereunder, in addition to all other remedies available at law
or in equity, Licensor shall be entitled to immediately revoke the license
granted herein. In such event Licensor may, without further notice and without
prejudice to any other remedy Licensor may have, enter upon the Premises and
expel or remove Licensee and Licensee's effects without being liable for any
claim for trespass or damages therefor. Licensee shall be liable for the License
Fee for a period of 30 days following Licensor's termination under this
Paragraph.

         20. No Estate Conveyed. This Agreement does not and shall not be deemed
to (a) constitute a lease or a conveyance of personal or real property by
Licensor to Licensee or (b) confer upon Licensee any right, title, estate or
interest in the Premises. This Agreement grants to Licensee only a personal
privilege revocable by Licensor on the terms set forth herein.

         21. Notices. Notices hereunder shall be in writing and shall be
delivered by hand or national overnight delivery service or sent by registered
or certified mail, postage prepaid, return receipt requested:

                  If intended for Licensor, addressed to:

                  UNIVERSITY CITY SCIENCE CENTER
                  3624 Market Street
                  Philadelphia, PA 19104
                  Attention: Suzanne Lobrun

(or to such other address or addresses as may from time to time hereafter be
designed by Licensor by written notice to the Licensee in the manner set forth
herein).

                  If intended for Licensee, at the Premises, or addressed to:

                  -----------------------------

                  -----------------------------

                  -----------------------------

(or to such other address or addresses as may from time to time hereafter be
designated by Licensee by written notice to the Licensor in the manner set forth
herein).

                                      -6-
<PAGE>

         All such notices shall be effective when delivered in hand (provided
the party delivering the same shall prepare and present to the recipient for
signature, a suitable receipt evidencing such delivery) by national overnight
delivery service, or when deposited in the United States mail within the
continental United States.

         22. Exculpation of Licensor. Licensor's liability to Licensee with
respect to this License shall be limited solely to Licensor's interest in the
Building. Neither Licensor, nor any partner, officer, director, member, employee
or shareholder of Licensor, shall have any personal liability whatsoever with
respect to this Agreement and the License granted herein.

         23. Entire Agreement; No Waiver. This Agreement contains the entire
agreement of the parties hereto and no representations, inducements, promises or
agreements, oral or otherwise, between the parties not embodied herein shall be
of any force and effect. The failure of either party to insist in any instance
on strict performance of any covenant or condition hereof, or to exercise any
option herein contained, shall not be construed as a waiver of such covenant,
condition or option in any other instance. This Agreement cannot be changed or
terminated orally, and can be modified only in writing, executed by each party
hereto.

         24. Governing Law. This Agreement has been made under and shall be
construed and interpreted under and in accordance with the laws of the
Commonwealth of Pennsylvania.

         25. Authority. Licensee represents and warrants to Licensor that the
individual executing this Agreement has the requisite authority to legally bind
Licensee to this Agreement and all of the terms hereof.

         26. Subordination. This Agreement is and shall be subject and
subordinate to all ground leases, deeds of trust and mortgages (collectively,
"Mortgages") which may now or hereafter affect the Premises and also to all
renewals, modifications, consolidations, replacements, and extensions of such
Mortgages. This provision is self-executing and no further instrument shall be
required to establish such subordination. If any foreclosure proceedings are
brought which affect the Premises, or if the power of sale under a Mortgage is
exercised, then Licensee shall attorn to the purchaser upon any such foreclosure
or sale and recognize such purchaser as the Licensor under this Agreement.

         27. Intentionally omitted.

         28. Termination Option. Provided Licensee is not in default in its
obligations under this Agreement, Licensee shall have the right to terminate
this Agreement, such right to continue until the expiration of the Term of this
Agreement, by Licensee providing Licensor with ninety (90) days' written notice
before the date on which Licensee wishes to terminate this Agreement.

         29. Termination of Existing Lease. As of the Commencement Date, the
existing lease between the parties hereto for space on the second floor of the
Building dated April 15, 1997 shall terminate and be of no further force and
effect, the same as if that date were the date set forth in the lease for
termination.

                                      -7-
<PAGE>

         IN WITNESS WHEREOF, Licensor and Licensee have executed this Agreement,
as a sealed instrument, as of the day and year first above written.

LICENSOR:

UNIVERSITY CITY SCIENCE CENTER

By: /s/ JILL FELIX
    -------------------------------------
Printed Name: Jill Felix
              ---------------------------
Title: President & CEO
       ----------------------------------

LICENSEE:

CARESCIENCE, INC.

By: /s/ STEVEN BELL
    -------------------------------------
Printed Name: Steven Bell
              ---------------------------
Title: CFO
       ----------------------------------

                                      -8-
<PAGE>

                                    EXHIBIT A

                         (3550 MARKET - 2ND FLOOR PLAN)

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