Document:

esl-ex1060_1190.htm

 

Exhibit 10.60

LEASE AGREEMENT entered into by and between, PROMOTORA INDUSTRIAL TIJUANA, S. A DE C. V., hereinafter referred to as PITSA, represented by Mr. Jaime Roberts Vildosola, and LEACH INTERNATIONAL DE MEXICO, S. DE R.L. DE C.V., hereinafter referred to as COMPANY, represented by Mr. Dennis Sheredy, pursuant to the following RECITALS and CLAUSES.

RECITALS

I.The legal representative of PITSA hereby declares that:

A.PITSA is a Company organized and existing under Mexican General Corporation Law, as per Public Instrument No. 16,150, Volume 270, executed before Attorney Carlos C. Enriquez de Rivera B., Notary Public No. 09 of Mexicali B.C., having as its corporate object the development and operation of an Industrial Park in the City of Tijuana, Baja California, Mexico, known as “Parque Industrial BajaMaq El Aguila”.

B.Mr. Jaime Roberts Vildosola verifies his capacity as Legal Representative of PITSA as per public instrument described above and that such power has not been revoked.

C.PITSA’s registration number at the Federal Registry of Tax Payers is PIT-980722-469.

D.The address at which it has its principal place of business is Km. 10 on Highway to San Luis, Rio Colorado, Sonora, Mexicali, Baja California, Mexico.

E.PITSA established within a tract of land located in Parque Industrial Bajamaq El Aguila a modular Industrial Building, with a constructed area of approximately 91,590.08 square feet, hereinafter referred to as “ PITSA Industrial Building”.,

F.His principal owns and can dispose freely of modules C, D, E and F at PITSA Industrial Building located in Parque Industrial Bajamaq El Aguila in the City of Tijuana, Baja California.

G.PITSA wishes to enter into a lease agreement with COMPANY regarding a portion of the PITSA Industrial Building, described in paragraph E above, with an area of 61,060.08 square feet, identified as modules C, D, E and F located on Ave. de Aguila Azteca 19190 Parque Industrial BajaMaq El Aguila. Such modules includes warehouse, full conditioned office space and parking area for 51 vehicles, and is described in the specifications and drawings attached as Exhibit “A” (referred hereinafter as “Leased Property”).

H.It is the intention of PITSA to grant COMPANY the right of first refusal regarding an additional constructed area of 30,530 square feet, identified as modules A and B, adjoining the modules described in paragraph G above subject matter of this Agreement, for future expansion by COMPANY, under the terms and conditions as may be agreed upon at the time such right is exercised.

I.PITSA has applied for and obtained financial loans through Mexican and Foreign Banking Institutions, with which funds, the building and improvements located within the Industrial Park are being constructed.

IIThe legal representative of COMPANY declares that:

A.His principal is a Company organized and existing under the Mexican General Corporation Law, as is evident in Public Instrument Number 85.245 Volume 1,593 executed on May 12, 2000, before Mr. Xavier Ibañez H. Notary Public Number 3 of the City of Tijuana, Baja California, Mexico.

B.Mr. Dennis Sheredy verifies his capacity as Legal Representative of COMPANY as per public instrument described above and that such power has not been revoked.

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C.COMPANY’s registration number at the Federal Registry of Taxpayers is LIM-000612-IW6

D.The address at which his principal has its principal place of business is precisely the Leased Property subject matter of this Agreement.

E.COMPANY wishes to enter into a lease agreement with COMPANY regarding Leased Property as described in recital I. F. above and Exhibit “A”.

C L A U S E S:

I.-  SCOPE OF LEASE AGREEMENT

A.On the express terms and conditions set forth hereinafter, the scope of this Lease Agreement is as follows: PITSA hereby leases to COMPANY, and COMPANY hereby leases from PITSA the Leased Property as described in Exhibit “A” , referred to in recital I. F above, which is attached hereto and made a part hereof. PITSA agrees to perform the Improvements described in Exhibit “C” attached hereto duly signed by the parties. It is expressly understood that COMPANY enters this agreement with the intention of using the property for Light Industrial Assemblies.

B.PITSA hereby grants COMPANY the right of first refusal regarding the module or constructed space adjoining the Leased Property, with an area of 30,530 square feet for future expansion this area is identified as “ Intermas” in the attached Exhibit B (referred hereinafter as “ Expansion Area” ).

If Expansion Area becomes available, PITSA will provide written notice of this situation to COMPANY. COMPANY will have fifteen (15) calendar days, upon reception of notice from PITSA, to exercise the right of first refusal indicated in the previous paragraph. In the event that COMPANY does not reply within such period or elects not to exercise the option, then PITSA may lease the Expansion Area to a third party. Thereafter PITSA will be released of any future obligation regarding the right of first refusal.

C.PITSA shall deliver possession of Leased Property upon the execution of this Lease Agreement.

II.CONSTRUCTION BY PITSA

A.PITSA shall perform all improvements to Leased Property in accordance with specifications and drawings, which have been approved by PITSA and COMPANY, described in Exhibit “C”.

B.PITSA shall perform all work with respect to the improvements in accordance with all laws, ordinances, regulations, and orders of governmental authorities, and PITSA Industrial Park Regulations which are attached hereto as Exhibit “D”.

C.PITSA will proceed diligently with construction and completion of the improvements (see Exhibit “C”), so as to allow the use of previously designated areas for the purposes contemplated and in accordance with the Specifications. PITSA agrees to complete said Improvements in four weeks upon the execution of this Lease Agreement.

D.COMPANY shall have the right to modify the Specifications and drawings described in Exhibit “C” during the course of construction provided that such changes do not unreasonably delay completion of such Improvements and provided that COMPANY reimburses PITSA upon demand for any additional costs incurred by PITSA by reason of changes required by COMPANY. COMPANY hereby waives the right to object to any delay in completion caused by said changes in the Specifications not due to the default of PITSA. Any such change shall be specified in writing and shall be signed by the construction representative of COMPANY; designation of such representative shall be notified in writing to PITSA in accordance with Section F of this Clause II.

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E.The Leased Property shall be considered ready for occupancy when the Improvements have been completed, as to allow the use of said areas for those purposes previously contemplated and in accordance with the Specifications. The person in charge of Improvements shall prepare, certify by his signature, and deliver, in duplicate to COMPANY and PITSA, a written statement certifying:

a)That the improvements have been substantially completed in accordance with the specifications, any properly authorized changes or amendments thereof, and

b)The date of such completion.

PITSA shall diligently complete or repair, as soon as possible, any items or corrections not completed when the Leased Property is ready for occupancy.

F.In the event of additional construction and if due to the nature of the same it becomes necessary, each party hereto shall immediately designate an individual as its construction representative. Each party agrees to be bound by and authorizes the other to rely, in connection with the original construction, upon the approvals given and any other action on the party’s behalf taken by its construction representative, or any person subsequently designated in writing and given notice to the other party.

G.Upon prior written consent of PITSA, COMPANY may, at any time prior to the Commencement Date, at its sole risk, enter upon and install such trade fixtures, machinery and equipment into operation by COMPANY’s employees or other contractors and that such action shall not relieve PITSA of its responsibilities in completing the improvements under the terms and conditions set forth herein.

H.PITSA hereby acknowledges that any and all construction improvements to be completed by PITSA hereunder, either during the pre-lease term of afterwards, either with PITSA’s employees or by third parties contracted by PITSA, will be the sole responsibility of PITSA and therefore guarantees and warrants to COMPANY that such employees and third parties will be in full compliance with all pertinent construction and Social Security, tax, labor and other applicable Mexican laws and regulations.

I.If PITSA fails to deliver the Improvements at the date indicated in Section II-C above, PITSA agrees to pay as liquidated damages an amount equivalent to one day of rent of Leased Property per each day of delay until the Improvements are completed.

III.INSTALLATIONS BY COMPANY

A.- COMPANY may, at its expense, install on the Leased Property, such trade fixtures, equipment and furniture or improvements in the warehouse, as it may deem necessary; provided that such items are installed and are removed without damage to the structural integrity of the Leased Property and Improvements. Said trade fixtures, equipment and furniture shall remain COMPANY’s property and unless COMPANY is in default hereunder, shall be removed by COMPANY upon expiration of the term hereof, or earlier termination of this Lease. COMPANY may also install temporary improvements in the interior of the Leased Property, provided that such improvements are installed and removed without damage to the structure of the Improvements. COMPANY shall repair, at its sole expense, all damage caused by the installation or removal of such trade fixtures, equipment, furniture or temporary improvements.

B.‐ COMPANY shall perform all installations in accordance with all laws, ordinances, regulations, orders of government authorities, and the PITSA Industrial Building’s Regulations, which are attached hereto as Exhibit “D”.

IV.LEASE TERM AND COMMENCEMENT DATE.

A.Lease Agreement. This Lease Agreement shall be effective from Commencement Date, which for the purposes of this Lease Agreement is set as June 1st , 2000, PITSA will proceed diligently to execute the Improvements not ready at the Commencement Date.

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B.Term. Seven year lease term. The term of this Lease shall be for seven years, commencing upon Commencement Date and shall end on the last day of the of the 7th leased year of the term, as said term is hereafter defined.

C.Lease Year, The term “ Lease Year” as used herein, shall mean a period of twelve (12) consecutive full calendar months. The first Lease Year shall begin on the Commencement Date.

V,RENT.

A.Lease.- As fixed rent for the Lease of the Leased Property during the Lease Term hereof, COMPANY shall pay to PITSA the amount of US$0.36 (thirty six cents currency of the United States of America), plus Value Added Tax (IVA), per square foot per month, payable precisely in such currency or in Mexican Currency at the rate of exchange prevailing at the time of payment for the sale of dollars at Banco International, S. A. (BITAL), Las Californias Branch. Such amount shall be payable in advance on the first day of each month, at the address of PITSA, or be deposited in account # 7000414706 of Bank BITAL, Las Californias Branch, under Promotora Industrial de Tijuana, S. A. DE C. V. Said rent shall be adjusted annually to reflect the exact increase of the Los Angeles-Anaheim-Riverside Consumer Price Index on each anniversary of the lease term . The rent adjustment will not be less than 2% and will not exceed 4.5% per year.

The payment of rent shall start upon Commencement Date, June 1st 2000, as defined in Section IV-A above.

B.Maintenance fee. COMPANY shall pay a monthly maintenance fee of US$0.0138 per square foot of Leased Property, plus the Value Added Tax (IVA), which covers the costs of landscaping, public lighting, street up-keep, common area litter removal and external building maintenance. The maintenance fee is payable jointly with the monthly rent. Such fee shall be adjusted annually to reflect the increase of the Los Angeles- Anaheim-Riverside Consumer Price Index on each anniversary of the lease term. The maintenance fee adjustment will not be less than 2% and will not exceed 4.5% per year.

If such rent and maintenance fee are not paid within the first (5) days of any given month, it shall become delinquent and a late payment penalty will be applied of 5% of the monthly rent.

C.COMPANY hereby agrees to provide maintenance for specific equipment property of PITSA such as A/C units, compressors, electrical transformers. For such purpose, COMPANY will keep a log book indicating all of the maintenance provided to such equipment.

D.Notwithstanding the above statements, COMPANY will pay the rent provided for above, at the address of PITSA as set forth in this Agreement, or at the address of the banking financial institution or to any assignee of PITSA, as PITSA may direct, under the terms of Clause XIII of this Lease Agreement.

E.Liquidated Damages. Termination by PITSA of this Lease Agreement due to a default of COMPANY, prior to or during the first six (6) months of the Lease Term, or termination by COMPANY without cause, entitles PITSA to automatically apply as liquidated damages all sums paid or deposited by COMPANY, as prepaid rent or as a security deposit, in addition to any other rights of PITSA provided for herein.

F.Setoff. The payment of any rent due under this Lease, shall not be withheld or reduced for any reason whatsoever, and COMPANY agrees to assert any claim, demand, or other right against PITS A only by way of an independent proceeding.

G. PITSA hereby acknowledges having received from COMPANY the amount of $ 25.106.69 US Currency. VAT (IVA) included, to be applied to the first month of rent upon Commencement Date for which PITSA shall deliver the corresponding receipt. PITSA also acknowledges having received from CQMPANY the amount of $ 65.944.89 US Currency, as deposit to guarantee compliance of the obligations assumed hereunder. It is understood that such deposit will not be considered as advanced payment of rents but shall be used only to remedy any non-compliance by COMPANY.

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VI.USE.

The leased Property shall be used and occupied for Light Industrial Assemblies or any Lawful industrial purpose not in violation of the PITSA Industrial Park Regulations attached hereto as Exhibit “ D” . COMPANY shall promptly and adequately comply with all laws, ordinances and orders of all governmental authorities affecting the Leased Property or that may be a menace to other occupants of the Industrial Park.

VII.INSURANCE.

A.Fire and Other insurance.- Effective as of the date of commencement of the Lease, COMPANY will obtain insurance covering the building, its improvements, contents and third parties damages, in an amount sufficient to provide for their replacement, particularly in consideration of the risk products to be processed or kept in the Leased Property; all insurance policies will name PITSA as the beneficiary, If such policies are not obtained on or before the commencement date, PITSA will contract an insurance policy equivalent to cover such contingencies and COMPANY will be responsible to reimburse PITSA the amount for the correspondent premiums immediately upon demand.

B.Form and Delivery of Policies. Each insurance policy referred to in the preceding paragraphs shall be in a form approved by the Department of Finance and Public Credit (“Secretaria de Hacienda y Crédito Publico” ) and written with one or more companies licensed to do insurance in Tijuana, Baja California, Mexico, and shall provide that it shall not be subject to cancellation or change, except after at least 30 days prior written notice to PITSA. Prior to the Commencement Date of the Lease Term, each of the parties shall procure and maintain such Insurance deemed necessary to cover its liabilities and property. COMPANY shall deliver to PITSA the corresponding policies within thirty (30) days following the date of signature of this Agreement.

C.Guaranty.- COMPANY shall assure that a Guarantee under the form of Exhibit “E” attached hereto is given by Leach International Corporation, to insure the adherence by COMPANY of all of the conditions, covenants, obligations, liabilities and agreements set forth in this Lease Agreement. With such guaranty, guarantor shall deliver a copy of the most recent audited financial statements.

	
VIII.
	
TAXES AND ASSESSMENTS.

With the exception of the income tax and fixed asset tax imposed on PITSA, which shall be borne by PITSA, COMPANY shall pay property tax and all taxes and assessments of every kind, which are or may be at any time during the Leased Term levied against the Leased Property, the Lease Agreement, or COMPANY due to the nature of its activities. All such taxes and assessments shall be paid by the COMPANY, and receipt showing the payment of such taxes and assessments delivered to PITSA before such taxes and assessments become delinquent.

COMPANY also agrees to pay all taxes and assessments of every kind levied upon any and all personal property of COMPANY, its successors and assigns, whether same shall be or may become a lien upon the Leased Property. All such taxes and assessments shall be paid by COMPANY before the same become delinquent.

IX.REPAIRS, ALTERATIONS AND IMPROVEMENTS. 

A.PITSA

1.After receipt of written notice from COMPANY, PITSA, at its expense shall, with minimum interference of COMPANY’s normal use of the Leased Property, diligently proceed to repair any structural defects in the roof or exterior bearing walls, as constructed by PITSA, excepting normal wear and tear. PITSA shall not be liable for any damages, and shall not be obligated to make any repairs due to damages caused by any negligent act or omissions of COMPANY, its employees, agents, invitees or contractors. PITSA shall have no other obligation to maintain or repair any other portion of the Leased Property, except for the repair of those improvements constructed by PITSA for COMPANY for a period of one year after its completion, PITSA shall not be liable to COMPANY for any damage resulting from PITSA’s failure to make repairs, unless COMPANY has notified PITSA of the need for such repairs, and PITSA has failed to commence such repairs within seven (7) days after said written notice has been given and has failed to complete the same in a diligent manner in the case of more urgent matters.

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2.If PITSA fails to make the repairs described in Clause IX, “A”, COMPANY may, but shall not be required to, make or cause such repairs and PITSA shall, on demand, immediately pay to COMPANY the reasonable cost of the repairs.

B.COMPANY

1.COMPANY, at its expense, except for those obligations of PITSA stated in paragraph “A”, 1, of this Clause, shall keep and maintain in good order and repair, except for normal wear and tear, all of the Leased Property, including improvements, and further including but not limited to, all plumbing, sewage and other utility facilities that are within the Leased Property, as well as fixtures, partitions, walls (interior and exterior, including painting as often as necessary), floors, ceilings, signs, air conditioning, electric installations, heating, and similar equipment, doors, windows, plate glass and all other repairs to the Leased Property. COMPANY at its expense, shall repair all leaks except those caused by structural defects in the roof and exterior walls. The plumbing facilities shall not be used for any other purpose than that for which they were constructed. The expense of any breakage, stoppage or damage resulting from a violation of this provision, shall be borne by COMPANY. COMPANY shall store all trash only temporarily within Leased Property, and shall arrange for the regular pick-up of trash at COMPANY’s expense. COMPANY shall not burn any trash of any kind in or about the Leased Property or the Industrial Park or near it.

2.COMPANY shall require PITSA’s written consent to make any alterations, improvements or additions to the exterior walls and roof of the Leased Property with a cost exceeding US$5,000.00 (FIVE THOUSAND DOLLARS 00/100 CURRENCY OF THE UNITED STATES OF AMERICA). COMPANY shall not damage any floors, walls, ceilings, partitions, or any wood, stone or ironwork on or about the Leased Property in connection with the construction of any such alterations or improvements.

3.COMPANY shall keep the Leased Property free and clear of all encumbrances and liens arising out of acts or omissions of COMPANY, including those arising out of acts or construction done or ordered by COMPANY. However, if by reason of any work performed, materials furnished or obligations incurred by COMPANY with any third party, or any other act or omission by COMPANY, PITSA is made liable or involved in litigation, COMPANY shall hold harmless and indemnify PITSA including any costs and expenses, and attorney’s fee incurred by reason thereof. Should COMPANY fail fully to discharge any such encumbrances or liens within thirty (30) days after the date the same appears of record or fail to provide a bond acceptable to PITSA in case of litigation, PITSA at its option, may pay all or any part thereof. If PITSA pays any such lien or encumbrances or any part thereof, COMPANY shall, on demand, immediately pay PITSA the amount so paid, together with interest at the rate of 20 percent (20%) per annum from the date of payment. No lien or encumbrance any character whatsoever created by and act or omission by COMPANY shall in any way attach or affect the rights of PITSA over the Leased Property.

X.UTILITY SERVICES

During the term of this Lease Agreement, COMPANY shall promptly pay for any and all public and other utilities services furnished to the Leased Property, including but not limited to, water, gas, electricity, telephone and trash pick up charges. PITSA will assist COMPANY in obtaining all such utility services if such becomes necessary.

All contracts necessary for the installation of any services to the Leased Property, such as water, drainage and telephone hook-up fees if any, as well as any KVA installation charge by the Mexican Federal Electric Commission and its electricity hook-up fees usage charge will be covered in full by COMPANY. There are 200 KVA’s free of charge given by CFE; any further need of KVA’s will be supplied and charge additionally by CFE to COMPANY. PITSA warrants that there will be at least 700 KVA’s available on building, which will be supplied by CFE.

There is a private security company at the gate of PITSA Industrial Park. The service will be paid in a prorate manner by tenants according to the square footage leased by tenants. COMPANY as principal tenant may control the choices regarding security of the premises.

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XI.RIGHT-OF-WAY.

PITSA is hereby granted a right-of-way upon, across, and under the Leased Property for ingress, egress, installations, replacing, repairing and maintaining all utilities, including but not limited to water, gas, telephone, all electricity and any television or radio antenna system serving the Leased Property. By virtue of this right-of-way it shall be expressly permissible for the electrical and/or telephone companies to erect and maintain the necessary poles and other necessary equipment on the Leased Property; provided, that in exercising any right PITSA may have under Clause XI, PITSA agrees to cause only a minimum interference with COMPANY’s use and possession by COMPANY of the Leased Property. Unless the performance of any installation or repairs are absolutely necessary for the safety of tenants, any fixtures, cables, wires and/or other equipment that would require to be installed within the industrial building of Leased Property should be previously authorized in writing by COMPANY, such authorization will not be unreasonably withheld. Damages or losses due to lack of authorization or delay in the issuance of such authorization will be COMPANY’s responsibility.

XII.ASSIGNMENT AND SUBLETTING.

A.COMPANY shall have the right, upon prior written authorization from PITSA, to assign or transfer or sublease this Lease Agreement or any interest therein or to permit the use of the Leased Property to any person or company, provided, however, that COMPANY, in the event of any such authorization to assign, transfer or sublease, COMPANY shall remain liable for all its obligations under this Lease Agreement.

B.PITSA shall have the right to assign and reassign, from time to time, any or all of the rights and obligations of PITSA in this Lease Agreement or any interest therein, without COMPANY’s consent, provided that no such assignment or reassignment shall impair any of the rights of COMPANY herein, and provided further, that PITSA shall remain liable for all of its obligations under this Lease Agreement, asserting directly against such assignee any defense, setoff, or counterclaims which COMPANY may have against PITSA or any other person. However, COMPANY hereby specifically waives, with respect to withholding of rent, any preventive measures to guarantee payment of a claim, as provided by the Code of Civil Procedures.

XIII.SUBORDINATION.

During the term of this Lease Agreement, PITSA shall have the right to encumber its interest in the Leased Property or in this Lease Agreement for any purpose it deems convenient and COMPANY shall and hereby does subordinate its interest in this Lease Agreement and in the Leased Property to such encumbrances. However, in the event such encumbrances are foreclosed upon or judicially enforced, the one who holds the encumbrance shall agree to respect this Lease Agreement and accept the performance by COMPANY of its obligation hereunder. COMPANY shall execute any agreement which may be required by PITSA in confirmation with such subordination and submit whatever public finance data may normally be requested by any trust insurance company, bank or other recognized lending institution.

Once PITSA shall have notified COMPANY in writing that the former has assigned its interest in this Lease Agreement to any lending institution as security for a debt or other obligation of PITSA, PITSA shall not have the power to amend this Lease Agreement so as to reduce the rent, decrease the term or modify or negate any substantial obligation of COMPANY in the terms hereof, or agree to rescind this Lease Agreement without the written consent of such lending institution. Such obligation shall continue until the lending institution has notified COMPANY in writing that such assignment has been terminated, on the understanding that if PITSA fails to obtain such lending institution’s approval to carry out the foregoing, the amendment of the terms above mentioned shall have no effect whatsoever as against such lending institution. In addition, if the lending institution shall notify COMPANY in writing requiring the payment of rents hereunder directly to such lending institution or its representative, then COMPANY shall be obligated to pay such lending institution or its representative each subsequent rental coming due under this Lease Agreement (together with any unpaid rent then past due), until the date on which such lending institution notifies COMPANY authorizing payment of rent to PITSA or other party entitled thereto. COMPANY understands and agrees that except for the advanced security deposit provided for in the Miscellaneous Section hereunder, at the request of PITSA, shall provide a statement that no advanced payment has been made; such document shall be binding upon COMPANY as against the lending institution to which this Lease Agreement may be assigned. In addition, the lending institution shall not be bound to recognize those payments made to PITSA after the COMPANY has received notice requiring payments to be made to such lending institutions.

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XIV.ACCESS TO LHASED PROPERTY.

Without undue interference to COMPANY’s operation, PITSA or its authorized representatives shall have the right to enter the Leased Property during COMPANY’s business hours to and in emergencies at all times inspect the Leased Property and to make repairs, additions or alterations to the Leased Property, For a period commencing ninety (90) days prior to the termination of this Lease Agreement, PITSA shall have access to the Leased Property for the purpose of exhibiting it to prospective tenants and may post usual “For Sale” or “For Lease” signs upon the Leased Property and COMPANY shall have the right to accompany any representatives of PITSA and prospective tenants. PITSA and COMPANY will agree as to the schedule of the visits for the exhibition of Leased Property. COMPANY at is own risk, retains the right to authorize PITSA to enter the premises in case of emergencies.

XV.DAMAGE OR DESTRUCTION.

A. Total.- In the event that the whole or a substantial part of the Leased Property is damaged or destroyed by tire3 act of nature, or any other cause, so as to make COMPANY unable to continue the operation of its business, PITSA and COMPANY shall, within ten (10) days from such destruction, determine whether the Leased Property can be restored within the following four (4) months. If PITSA and COMPANY determine that the Leased Property cannot be restored within four (4) months, either PITSA or COMPANY shall have the right and option to immediately terminate this Lease Agreement, by advising the other thereof by written notice. If PITSA and COMPANY determine that the Leased Property can be restored within said four (4) months, PITSA shall proceed diligently to reconstruct the Leased Property, without obligation to COMPANY for payment of rents during such reconstruction period and until such time that the Leased Property is delivered to COMPANY.

B. Partial.- in the event the said damages were caused to only a portion of the Leased Property and that said destruction does not prevent COMPANY from continuing the normal operation of its business on the Leased Property, PITSA and COMPANY shall repair said damage, each party reconstructing that portion of the Improvements for which it was responsible in the original construction, providing that during the period corresponding for the repair and restoration of PITSA’s Improvements, the rent payable hereunder by COMPANY shall be equitably prorated to the interference with COMPANY’s use and possession of the Leased Property caused by such damage and repairs.

XVI.LIMITATION OF LIABILITY.

Except for intentional or negligent acts or omissions of PITSA, its agents or employees, PITSA shall not be liable to COMPANY or to any other person whatsoever for any loss or damage of any kind or nature caused by the intentional or negligent acts or omissions of COMPANY or other occupants of the PITSA Industrial Park or of adjacent property, or the public, and other causes beyond the control of PITSA, including but not limited to any, failure to furnish or any interruption of any utility or other services in or about the Leased Property, COMPANY recognizes that additions, replacements and repairs to the PITSA Industrial Park will be made from time to time, provided that the same shall not substantially interfere with COMPANY’s use and enjoyment of the Leased Property.

XVII.INDEMNIFICATION.

COMPANY agrees to indemnify and hold PITSA harmless from any death or injury to third persons or damage to the property of third parties, arising from any negligent acts or omissions of COMPANY, or its contractors, licensees, agents, invitees or employees, occurring in or about the Leased Property, or the areas adjoining the Leased Property, and against all costs and expenses, including attorney’s fees, incurred thereby.

PITSA indemnifies and hold COMPANY harmless from death or any injury or damage to the property of COMPANY or its agents or employees, and from any and all liability for death or injury to third persons or damage to the property by third persons while lawfully upon the Leased Property, occurring by reason of any negligent acts or omissions of PITSA, its agents or employees, and from and against all costs, and expenses, including attorney’s fees, incurred thereby.

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XVIII.NOTICES.

All notices under this Lease Agreement shall be forwarded to the addresses of the parties mentioned in the Recitals above or such other address as may from time to time be furnished by the parties hereto. Said notices shall be in writing and shall be deemed given seven (7) days after the date sent by mail, or personal delivery if possible acknowledging receipt of the latter. Duplicate notices shall be sent by certified airmail, postage prepaid, to such additional addresses as may from time to time be requested in writing by the parties hereto.

XIX.COMPANY’s DEFAULT.

A.Each of the following shall be a default of COMPANY:

1.Vacating or abandonment of the Leased Property.- PITSA shall consider the building abandoned when COMPANY closes its operation, terminates all employees and stops making payment of rent for one or more months. Under such circumstances PITSA may proceed to take over the building after notifying COMPANY under the terms hereunder provided, and no answer is received for a period of fifteen (15) days following such notice. For such purpose, PITSA is hereby expressly authorized by COMPANY to request the competent Court under a voluntary jurisdiction procedure to be given possession of the building using any legal means provided by Law, and expressly waiving COMPANY the right to be served notice due to prior notice of abandonment This procedure shall be observed independently of any other remedies of PITSA as provided hereunder. Consequently COMPANY hereby expressly consents and submits to such action, waiving expressly any action to file any claim against PITSA and/or its representatives for any such taking over, or claim damages or losses of any nature.

2.Failure to pay any installment of rent due and payable hereunder upon the date when said payment is due, as provided for in clause “V” , paragraph “A” hereunder, without need of notice of any kind;

3.Default in the performance of any covenant, agreements or obligations hereunder, said default, except for default in the payment of rents, continuing for fifteen (15) days after written notice thereof is given by PITSA to COMPANY (or for any reasonable period necessary for COMPANY to cure said default given by PITSA);

4.A general assignment by COMPANY for the benefit of creditors;

5.The filing of a voluntary petition in bankruptcy by COMPANY or the filing of an involuntary petition by COMPANY’s creditors, said petition remaining undischarged for a period of sixty (60) days;

6.The appointment of a Receiver to take possession of substantially all of COMPANY’s assets or of the Lease Property, said receivership remaining undissolved or unstayed for a period of thirty (30) days; or

7.Failure by COMPANY to comply with any and all applicable laws and regulations of any Environmental Agency of the Government of Mexico, in connection with the use or operation of any equipment by COMPANY that may be considered as contaminating by such Governmental Office, and failure to comply with any and all recommendations so given by said Governmental Office in connection therewith.

B.Upon the occurrence of any of the foregoing defaults, PITSA shall have the right, at its option, and in addition to other rights or remedies granted by law, including the right to claim damage, to immediately rescind this Lease Agreement and evict COMPANY from the Leased Property, independently of the right granted under paragraph A-l) of this Clause.

XX.RIGHT TO CURE DEFAULTS.

In the event of COMPANY’s breach of any term or provision herein, (except payment of rents and maintenance fee) PITSA may, without any obligation to do so, at any time after ten (10) days written notice, cure such breach or default or make repairs to the Leased Property, for the account and at the expense of COMPANY. If PITSA, by reason of such breach or default, pays any money or is compelled to incur any expense including attorney’s fees, the sums so paid or incurred with all interest, cost and damages, shall be paid by COMPANY to PITSA on the first day of the month after incurring such expenses.

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If any installment of rent or any other payment is not paid promptly when due, it shall bear interest of five percent (5%) percent per month from the date on which it becomes delinquent until paid in full. This provision is not intended to relieve COMPANY from any defaults in the making of any payment at the time and in the manner herein specified. The foregoing interest, expenses and damages shall be recoverable from COMPANY by exercise of PITSA’s right to recover damages under this Clause XX.

Nothing in this Clause XX affects the right of PITSA to indemnification by COMPANY in accordance with Clause XVII hereinabove, for liability arising prior to the termination of this Lease for personal injuries or property damage.

XXI.WAIVER.

In the event PITSA or COMPANY does not compel the other to comply with any of the obligations hereunder, such action or omission shall not be construed as a waiver of a subsequent breach of the same or any other provision. Any consent or approval shall not be deemed to waive or render unnecessary the consent or approval of any subsequent or similar act by COMPANY or PITSA.

XXII.CERTIFICATES.

Within ten (10) days of receipt of a written request made by PITSA, COMPANY shall deliver to PITSA a statement in writing certifying that this Lease Agreement is unmodified and in full force and effect (or if there have been modifications, that the same are in full force and effect as modified); the dates to which the rent and any other charges have been paid in advance; and that PITSA’s Improvements have been satisfactorily completed, It is intended that any such statement may be relied upon by any person, prospective purchaser or lending institution interested in the Leased Property.

XXIII.HOLDING OVER.

If COMPANY should remain in possession of the Leased Property, due to COMPANY’s omission or negligence, after the expiration of this agreement, COMPANY shall pay PITSA a conventional monthly penalty equal to one hundred and twenty percent (120%) of the amount of the monthly rent, as of the expiration date of the Lease Agreement until COMPANY has delivered to PITSA possession of the Leased property or executed a new Lease Agreement. This provision shall not be construed as granting any right to COMPANY to remain in possession of the Leased Property after the expiration of the Lease Term. COMPANY shall indemnify PITSA against any loss or liability resulting from the delay by COMPANY in surrendering the Leased Property at the expiration of this Lease Agreement, waving any right granted by law.

XXIV.SURRENDER.

On the last day of the term of this Lease Agreement, or the sooner termination thereof pursuant to other provisions hereof, COMPANY shall quit and surrender the Leased Property, broom clean, in good condition together with all alterations, additions and improvements that may have been made to the same, except furniture, machinery and equipment owned by COMPANY. Upon the termination of this Lease Agreement, COMPANY, unless it is in default hereunder, shall immediately remove all of its property, and all property not removed shall be deemed abandoned by COMPANY. At all times COMPANY shall immediately repair any and all damage caused to the Leased Property by the removal of COMPANY’s property.

XXV.QUIET ENJOYMENT.

PITSA agrees that COMPANY, upon paying the rent and all other charges provided for herein and upon complying with all of the terms and provisions of the Lease Agreement, shall lawfully and quietly occupy and enjoy the Leased Property during the Lease Term.

10

 

XXVI.MISCELLANEOUS.

A.This document contains all of the agreements and conditions made between the parties, and may not be modified orally or in any matter other than by a written agreement signed by the authorized representatives of the parties.

B.If any term, covenant, condition or provision of this Lease, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction, to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions or provisions of this Lease or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

C.In the event that either party should bring an action against the other party for the possession of the Leased Property, or for the recovery of any sum due hereunder, or because of the breach of default of any covenant in this Lease Agreement, the prevailing party shall have the right to collect from the other party its relevant costs and expenses, including attorney’s fees.

D.Every payment and obligation required by this Lease Agreement, shall be paid and performed on the date specified for such payment or performance and no delay or extension thereof shall be permitted.

E.The titles and subtitles to the Clauses of this document shall have no effect on the interpretation of the terms and provisions contained in this Lease Agreement.

F.COMPANY hereby promises to deliver to PITSA on the date of signature of this Lease Agreement an amount equivalent to three months rent, as deposit in guaranty for compliance of the obligations assumed hereunder by COMPANY, It is understood that such deposit will not constitute rents nor will be applied as rent payment, and shall be reimbursed in full to COMPANY by PITSA upon termination of the Lease Agreement, once COMPANY shows satisfactory evidence that all obligations have been complied with. Otherwise PITSA is expressly authorized to use such deposit to cover amounts owed under any title to PITSA hereunder.

G.The parties agree that this Lease Agreement shall be governed by the Laws of the State of Baja California. For everything pertaining to the interpretation and compliance of this Lease Agreement, the parties thereby expressly submit to the jurisdiction of the Civil Courts of the City of Tijuana, Baja California, expressly waiving any other jurisdiction which might be applicable by reason of their present or future domiciles or otherwise.

H.Whenever the prior consent of either party, written or otherwise, is required as a condition for the execution of any act by the other party, such party agrees not arbitrarily to withhold such consent.

I. Each party shall execute such further documents as shall be requested by the other party, but only to the extent that the effect of said documents is to give legal effect to rights set forth in this Lease Agreement.

J.Submission of this instrument for examination or signature by COMPANY does not constitute a reservation of or option to lease, and it is not effective as a Lease Agreement until execution and delivery by both PITSA and COMPANY.

K.This Lease and each of its covenants and conditions shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors or assignees, subject to the provisions hereof. Whenever in this Lease a reference is made to PITSA, such reference shall be deemed to refer to the person in whom the interest of the lessor hereunder shall be vested. Any successor or assignee of COMPANY who accepts an assignment of the benefit of this Lease and enters into possession of enjoyment hereunder, shall thereby assume and agree to perform and be bound by the covenants and conditions hereof.

L.PITSA hereby agrees with COMPANY that, if so requested by COMPANY, PITSA shall construct any additional improvements in the building as may be required by COMPANY as to manner and location, for which purpose COMPANY shall provide PITSA with any and all plans and specifications pertaining to such improvements. In such event, both parties agree to negotiate in good faith, the cost, timing and completion schedules, ownership of such improvements and other terms and conditions related thereto. PITSA shall have ten (10) working days after receipt of the plans and specifications, to grant its approval or to require modifications. COMPANY shall promptly execute and deliver any required modifications for PITSA’s final approval.

11

 

M.This Agreement and each and all of its stipulations as drafted, are for the sole and exclusive use by PITSA with its lessees. Its contents shall not be disclosed or used for any other purpose or parties whatsoever.

N.All Exhibits mentioned hereunder shall be signed by all parties involved, and shall enforceable together with Lease Agreement.

O.Option to Purchase.- COMPANY shall have the option to purchase the Leased Premises at a Fair Market Value, which shall be determined by appraisals performed individually by the parties hereunder. The option to purchase granted in this section will be exercised by means of a notice given to PITSA by COMPANY, at least 120 days prior to the expiration of the Initial Lease Term, as hereunder defined, in the understanding that lack of timely written notice shall release PITSA of such obligation. It is clearly understood that the period of 120 days is established so as to allow COMPANY to exercise such right and formalize the purchase. Any extension thereof or terms and conditions will be negotiated and agreed in writing by the parties.

P.This Agreement shall be executed both in the English and Spanish languages. In the event of any inconsistency between such versions, the English version shall prevail.

12

 

IN WITNESS WHEREOF, the parties have executed this Lease Agreement in the City of Tijuana, State of Baja California, Mexico, on the 1st, day of June of the year two thousand.

 

			
	
PROMOTORA INDUSTRIAL DE TIJUANA, S. A. DE C. V.
	
 
	
LEACH INTERNATIONAL MEXICO, R A. DE C. V.

	
 
	
 
	
 

	
/s/ Jaime Roberts Vildosola
	
 
	
/s/ Dennis Sheredy

	
Jaime Roberts Vildosola
	
 
	
Dennis Sheredy

	
Legal Representative
	
 
	
Legal Representative

	
 
	
 
	
 

	
WITNESSES:

	
 
	
 
	
 

	
 
	
 
	
 

 

 

 

13

 

LEACH

Contrator

ADDENDUM TO LEASE AGREEMENT entered into by and between, PROMOTORA INDUSTRIAL TIJUANA, S. A DE C. V., hereinafter referred to as PITSA, represented by Mr. Jaime Roberts Vildosola, and LEACH INTERNATIONAL DE MEXICO, S. DE R.L. DE C.V., hereinafter referred to as COMPANY, represented by Mr. Dennis Sheredy, pursuant to the following RECITALS and CLAUSES.

RECITALS:

WHEREAS the parties entered into a Lease Agreement dated June 1st , 2000, regarding certain property located at Parque Industrial Bajamaq El Aguila, of the City of Tijuana, Baja California, described as modules C, D, E and F at PITSA Industrial Building, of 61,060.08 square feet.. Such modules include warehouse, full conditioned office space and parking area for 51 vehicles referred as “Leased Property”.

WHEREAS the Lease Agreement stipulates in Clause V, that COMPANY in addition to the rents, shall pay PITSA a Maintenance fee of US$0.0138 per square foot of Leased Property, plus the Value Added Tax (IVA), to cover the costs of landscaping, public lighting, street up-keep, common area litter removal and external building maintenance.

WHEREAS the parties have agreed to amend Clause V, paragraph B, so as to cancel the payment of such Maintenance Fee, allowing COMPANY to assume certain obligations in connection with such maintenance, and releasing PITSA for rendering such maintenance services.

Pursuant to the above, and under the terms of Clause XXVI, A), the parties have hereby agreed as follows:

CLAUSES:

FIRST: PITS A and COMPANY hereby agree to amend the Lease Agreement, regarding Clause V, paragraph B, according to the terms established herein.

SECOND: COMPANY shall exclusively assume the obligations regarding maintenance of the Leased Premises, described as follows:

	
 
	
•
	
Landscaping

	
 
	
•
	
Public lighting

	
 
	
•
	
Common area litter removal.

COMPANY waives any right to claim from PITSA reimbursement for any disbursements made in connection with the maintenance services described above.

The maintenance activities described herein, shall be performed according to the following time-frame:

	
 
	
1.
	
Landscaping shall be performed by a specialized subcontractor hired by the COMPANY for weekly maintenance to keep up the appearance and health of the green areas.

	
 
	
2.
	
Exterior Light Bulb Fixtures shall be changed every time they are expired

	
 
	
3.
	
The Common Area Litter Removal shall be executed when required.

 

 

THIRD: The parties agree to eliminate, upon the execution of this instrument, the obligation of the COMPANY to pay to PITSA a Maintenance fee of US$0.0138 per square foot of Leased Property, plus the Value Added Tax (IVA), described in clause V, Paragraph B of the Lease Agreement.

FOURTH: As a consequence of the terms contained in Clause Second above, it is agreed by the parties hereunder, that if for any reason COMPANY fails to perform its duties as listed in Clause Second of this amendment, within the timing stipulated therein, PITSA will notify COMPANY in writing of any such non-compliance so as to allow COMPANY to perform within a period of fifteen days as of the day such notice is given and received by COMPANY. In the event that COMPANY fails to cure any such default, then PITSA will proceed to perform such jobs and will bill directly COMPANY the expenses incurred in connection therewith, and COMPANY will be obligated to reimburse PITSA within a period of ten days following request of payment from PITSA.

FIFTH: With respect to the activities of External Building Maintenance and Street Upkeep, it is agreed that the painting of the Building and the asphalt patching of the Parking Lot that form part of the Leased Premises will take place every five years from and after the date of this instrument.

When maintenance is due, the parties shall agree on the extent and type of painting of the

Building and the patching of the asphalt to be carried out.

Each of PITSA and COMPANY shall bear and pay one-half of the cost of painting the Building and patching the asphalt of the Parking Lot agreed upon between the parties, that form part of the Leased Premises.

SIXTH: All other obligations assumed by COMPANY stipulated under all other Clauses of the Lease Agreement regarding maintenance of public services as agreed, such as drainage, water services, etc., shall continue to be the responsibility of COMPANY.

SEVENTH: It is clearly understood that except for the amendment contained herein, all other clauses of the Lease Agreement shall remain in full force in effect, and may only be amended as stated under the terms of Clause XXVI, A), which requires that all amendments to the Lease Agreement shall be made in writing.

EIGHTH: This Amendment to Lease Agreement shall be executed both in the English and Spanish languages. In the event of any inconsistency between such versions, the English version shall prevail.

NINTH: The parties agree that this amendment, which is under the terms of the Lease Agreement executed by the parties, shall also be governed by the Laws of the State of Baja California. For everything pertaining to the interpretation and compliance of this Lease Agreement, the parties thereby expressly submit to the jurisdiction of the Civil Courts of the City of Tijuana, Baja California, expressly waiving any other jurisdiction which might be applicable by reason of their present or future domiciles or otherwise.

TENTH: The domiciles of the parties hereto, shall be those indicated in the original Lease Agreement.

IN WITNESS WHEREOF, the parties have executed this Lease Agreement in the City of Tijuana, State of Baja California, Mexico, on the 17th day of April of the year two thousand one.

 

	
PROMOTORA INDUSTRIAL DE TIJUANA, S. A. DE C.V
	
 
	
LEACH INTERNATIONAL MÉXICO, S. DE R.L    DE C.V.

	
 
	
 
	
 

	
/s/ Jaime Roberts Vildosola
	
 
	
/s/ Dennis Sheredy

	
Jaime Roberts Vildosola
	
 
	
Dennis Sheredy

	
Legal Representative
	
 
	
Legal Representative

W I T N E S S E S:

 

	
 
	
 
	
 

	
 
	
 
	
 

 

 

 

 

2

 

LEASE AMENDMENT

MODIFICATORY AGREEMENT to the Lease Agreement entered into by and between PROMOTORA INDUSTRIAL DE TIJUANA S.A. DE C.V., hereinafter referred to as “PITSA”, represented by Mr. Jaime Roberts Vildósola, and LEACH INTERNTIONAL DE MEXICO, S. DE R.L. DE C.V., hereinafter referred to as “COMPANY”, represented by it’s legal representative, Mr. Greg Brostek, and which is formalized in accordance with the following recitals and clauses:

RECITALS:

Both parties declare:

	
 
	
I.
	
That PITSA and COMPANY have entered into a Lease Agreement dated June 1, 2000, whereby PITSA leased a modular building to COMPANY, located in Parque Industrial Bajamaq El Aguila, with a constructed area of approximately 91,590.08 square feet, hereinafter referred to as “PITSA Industrial Building”.

	
 
	
II.
	
PITSA and COMPANY wish to enter into this Modificatory Agreement in order to amend the Lease Agreement pursuant to the terms and conditions set forth below due to COMPANY wishes to extend the lease term and add a 2,406 square feet mezzanine to the 61,060.08 square feet used at this moment by the COMPANY.

	
 
	
III.- 
	
That in the referred agreement on Clause IV, they agreed on the term of the lease for a period of seven (7) years; hereunder the COMPANY wishes to extend that period for ten (10) years, commencing on April 01, 2005 and concluding on March 31, 2015.

	
 
	
IV.- 
	
PITSA requires that an additional deposit equivalent to US$14,022.36 (fourteen thousand and twenty two dollars 36/100 currency of the United States of America) plus I.V.A. be delivered over the extension of the lease term in guaranty for compliance of the obligations assumed hereunder by the COMPANY.

Now, therefore, in consideration of the foregoing recitals and the agreement, covenants and conditions contained herein, the parties hereto agree as follows:

CLAUSES:

FIRST: LEASE TERM. Under the terms and conditions set forth on the Lease Agreement, the term over. the complete 63,466.08 square feet (include the mezzanine), will be extended to ten (10) years, binding for the parties, commencing on April 01, 2005 and concluding on March 31, 2015. It is understood and agreed upon that COMPANY shall have the option to extend the term herein described after it’s termination, for two (2) additional terms of five (5) years each, obligatory for the parties.

SECOND: RENT.

A.- Lease. As fixed rent for the Lease of the building expansion during the Lease Term hereof, COMPANY shall pay to PITSA the amount of US$26,655.75 (twenty six thousand six hundred and fifty five dollars 75/100 currency of the United States of America) per month plus I.V.A. (corresponding to US$0.42 cents per square feet of constructed area per month plus I.V.A.) payable in advance to PITSA at the address of PITSA, on the first day of each month.

Such fee shall be adjusted annually to reflect the Los Angeles-Riverside-Orange County Consumer Price Index on each anniversary of the lease term. The rent adjustment will not be less than 2% and will not exceed 4.5% per year.

If such rent is not paid within ten (10) days after the first day of any given month, it shall become delinquent and late penalty fees will be applied at the rate of 5% per month, payable precisely in United States currency.

THIRD: SECURITY DEPOSIT. COMPANY shall deposit to PITSA, upon the execution of this agreement, the amount of US$14,022.36 (fourteen thousand and twenty two dollars 36/100 currency of the United States of America) plus I.V.A, as deposit in guaranty for compliance of the obligations assumed hereunder by COMPANY, including but not limited to payment of rents, and shall be reimbursed to COMPANY by PITSA upon termination of the Lease Agreement, once COMPANY shows evidence that all obligations have been complied with, otherwise PITSA is expressly authorized to use such deposit to cover amounts owed under any title to PITSA.

 

 

FOURTH: GUARANTY. It is clearly understood that PITSA has been induced to enter into this Modificatory Agreement with COMPANY due to the guaranties to be submitted by COMPANY. Consequently, COMPANY shall assure that a Guarantee under the form of Exhibit “A” attached hereto, is given by Esterline Technologies an American corporation (“GUARANTOR”), to insure the adherence by COMPANY of all of the conditions, covenants, obligations, including those concerning with the applications of the mechanisms of restoration in the event of an environmental damage and contamination of the Leased Property by COMPANY, liabilities and agreements set forth on the Lease Agreement dated on June 1, 2000.

FIFTH: The parties hereby agree that this Modificatory Agreement shall modify only the provisions mentioned herein, all other provisions shall remain valid and unchanged. The Lease Agreement previously executed by the parties on June 1st, 2000 shall govern any matter related to the Lease, which is not specifically addressed herein.

IN WITNESS WHEREOF this document is signed in duplicate in this City of Tijuana, Baja California, on the twenty-third of March of the year two thousand and five.

 

	
PROMOTORA INDUSTRIAL DE TIJUANA, S.A. DE C.V.
	
 
	
LEACH INTERNATIONAL DE MEXICO, S. DE R.L. DE C.V.

	
 
	
 
	
 

	
/s/ Jaime Roberts Vildosóla
	
 
	
/s/ Greg Brostek

	
Jaime Roberts Vildosóla

Legal Representative
	
 
	
Greg Brostek

Legal Representative

	
 
	
 
	
 

	
 
	
 
	
 

	
WITNESSES:

	
 
	
 
	
 

	
/s/ Lope Palomino Ara iza
	
 
	
/s/ Christian Zak

	
Lope Palomino Ara iza
	
 
	
Christian Zak

 

 

 

 

 

CONTRATO DE ARRENDAMIENTO que celebran, PROMOTORA INDUSTRIAL TIJUANA, S.A. DE .C.V., en adelante llamado como PITSA, representada por el Sr. Jaime Roberts Vildósola, y LEACH INTERNATIONAL DE MÉXICO, S. de R.L. de C.V., en adelante llamada como LA COMPAÑÍA, representada por el Sr. Dennos Sheredy, al tenor de las siguientes CLÁUSULAS y DECLARACIONES.

DECLARACIONES

	
 
	
I.
	
El representante legal de PITSA declara lo siguiente:

	
 
	
A.
	
PITSA es una Compañía organizada y existente bajo la Ley General de Corporaciones Mexicanas, como se describe en el Acta Publica No. 16,150, Volumen 270, adscrita ante el Sr. Abogado Carlos C. Enríquez de Rivera B., Notario Publico No. 09 de Mexicali, B.C., teniendo como objeto corporativo el desarrollo y operación de un Parque Industrial en la Ciudad de Tijuana, Baja California, México, conocido como “Parque Industrial Bajamaq EL Águila”.

	
 
	
B.
	
El Sr. Jaime Roberts Vildósola constata su capacidad como Representante Legal de PITSA como lo describe el documento público abajo y que tal poder no ha sido revocado.

	
 
	
C.
	
La Clave del Registro Federal de Contribuyentes de PITSA es: PIT- 980722-469.

	
 
	
D.
	
La dirección Principal Vigente del Negocio se encuentra en al Kilómetro 10 de la carretera Federal a San Luís Río Colorado Sonora en Mexicali, Baja California México.

	
 
	
E.
	
PITSA se encuentra localizada en un porción de terreno localizada en el Parque Industrial Bajamaq El Águila en un edificio Industrial Modular, con un área construida de aproximadamente 91,590.08 pies cuadrados, de aquí en adelante llamada como “Edificio Industrial PITSA”.,

	
 
	
F.
	
Su Principal posee y dispone libremente de los módulos C, D, E y F en el Edificio Industrial PITSA localizados en el Parque Industrial Bajamaq El Águila en la Ciudad de Tijuana baja California, México.

	
 
	
G.
	
PITSA desea establecer un contrato de arrendamiento con la COMPAÑÍA referente a una porción del Edificio Industrial PITSA, descrito anteriormente en el párrafo E, con un área de 61,060.08 pies cuadrados, identificado como módulos C, D, E y F localizados en al Avenida de Águila Azteca 19190 Parque Industrial Bajamaq El Águila. Tales módulos incluyen almacén, espacio completamente condicionado para oficinas y área de estacionamiento para 51 vehículos, los cuales se describen en las especificaciones y planos anexos descritos como Anexo “A” (llamado en adelante como “Propiedad Arrendada”).

	
 
	
H.
	
Es la intención de PITSA otorgar a la COMPAÑÍA el derecho de Primer Oferente respecto al área adicional construida de 30,530 pies cuadrados, identificada como módulos A y B, adjuntos a los módulos descritos anteriormente en el párrafo G materia de este contrato de Arrendamiento, para futura expansión por la COMPAÑÍA, bajo los términos y condiciones que pudieran establecerse por común acuerdo al momento de que dicho derecho sea ejercido.

	
 
	
I.
	
PITSA ha aplicado y obtenido financieros a través de Instituciones Bancarias Nacionales y Extranjeras; con dichos fondos, el Edificio, así como las Mejoras realizadas dentro del Parque Industrial están siendo construidas.

	
 
	
II
	
El Representante Legal de la COMPAÑÍA declara que:

	
 
	
A.
	
Su principal se basa en una Compañía organizada y existente bajo la Ley General de Corporaciones Mexicana, como se muestra en la Escritura Pública Número 85,245, Volumen 1,593 firmada el 12 de mayo, 2002, ante el Señor Xavier Ibáñez H. Notario Publico Número 3 de la Ciudad de Tijuana Baja California, México.

	
 
	
B.
	
El señor Dennos Sheredy constata su capacidad de Representante Legal de la COMPAÑÍA como se describe anteriormente en el Acta Constitutiva y que tal Poder no ha sido revocado.

	
 
	
C.
	
La Clave del Registro Federal de Contribuyentes de la COMPAÑÍA es LIM-000612-IW6

	
 
	
D.
	
La dirección principal en donde finca su lugar de negocios es precisamente la Propiedad Arrendada objeto de este Contrato de Arrendamiento.

	
 
	
E.
	
La COMPAÑÍA desea establecer un Contrato de Arrendamiento con la COMPAÑÍA sobre la Propiedad Arrendada que se describe anteriormente en la declaración I punto F. y Anexo “A”.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
1
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

CLÁUSULAS:

	
 
	
I.
	
ALCANCE DEL CONTRATO DE ARRENDAMIENTO

	
 
	
A.
	
En los términos y condiciones establecidas de ahora en adelante, el alcance de este Contrato de Arrendamiento se describe a continuación: PITSA declara que Arrendará a la COMPAÑÍA, y LA COMPAÑÍA declara que Rentará de PITSA la Propiedad Arrendada, como se describe en el Anexo “A”, referidos en la declaración anterior I. punto F, el cual se anexa a este contrato y forma parte del mismo. PITSA acuerda realizar las mejoras descritas en el Anexo “C”, adjunto a este contrato y debidamente firmado por las partes. Se expresa a pleno conocimiento de las partes que la COMPAÑÍA participa en este contrato con la intención de utilizar la propiedad para Ensamblaje Industrial Ligero.

	
 
	
B.
	
PITSA acuerda otorgar a la COMPAÑÍA el derecho de Primer Oferente de acuerdo al modulo o espacio construido adjunto a la Propiedad Arrendada, con un área de 30,530 pies cuadrados para futura expansión, esta área se identifica como “Interna” adjunta en el Anexo “B” (llamado de ahora en adelante como “área de expansión”)

Si el área de expansión esta disponible, PITSA notificará por escrito de tal situación a la COMPAÑÍA. La COMPAÑÍA tendrá quince (15) días naturales, una vez que haya sido notificada por PITSA para ejercitar su derecho de Primer Oferente, como se indica en el párrafo anterior. En el caso de que la COMPAÑÍA

No responda dentro del período señalado o elija no ejercer esta opción, entonces PITSA puede arrendar el área de expansión a un Tercero. Por lo tanto, PITSA será liberada de cualquier obligación futura respecto al derecho de Primer Oferente.

	
 
	
C.
	
PITSA deberá otorgar posesión de la Propiedad Arrendada una vez que se ejecute el Contrato de Arrendamiento.

	
 
	
II.
	
CONSTRUCCIÓN POR PITSA

	
 
	
A.
	
PITSA deberá realizar todas las mejoras a la Propiedad Arrendada de acuerdo a las especificaciones y planos descritos en el Anexo “C”, los cuales han sido aprobados por PITSA y la COMPAÑÍA.

	
 
	
B.
	
PITSA deberá realizar todo el trabajo referente a las mejoras de acuerdo con todas las leyes, reglamentos, dictámenes y órdenes de las autoridades gubernamentales, así como los Reglamentos del Parque Industrial PITSA, los cuales se adjuntan en el presente documento como Anexo “D”.

	
 
	
C.
	
PITSA procederá diligentemente con la construcción y término de las mejoras (ver Anexo “C”),de tal forma en que permitirá el uso de las áreas anteriormente designadas para los propósitos que se contemplan y de acuerdo con las Especificaciones. PITSA acuerda en completar dichas Mejoras en cuatro semanas, toda vez que adquiera validez este Contrato de Arrendamiento.

	
 
	
D.
	
La COMPAÑÍA tiene el derecho de modificar las Especificaciones y Planos descritos en el Anexo “C” durante el curso de la construcción, siempre y cuando tales cambios no retrasen la finalización de las obras de Mejoras y prevean que la COMPAÑÍA reintegre a PITSA, bajo demanda, cualquier costo adicional incurrido por PITSA por razón de los cambios requeridos por la COMPAÑÍA. La COMPAÑÍA rechaza el derecho de objetar a cualquier retraso en la finalización de las obras causado por dichos cambios dentro de las Especificaciones y no debidos a la intención de PITSA. Cualquier cambio deberá especificarse por escrito y deberá ser firmado por el representante de obras de la COMPAÑÍA; La designación de tal representante deberá ser notificada por escrito a PITSA de acuerdo con la Sección F de la Cláusula II.

	
 
	
E.
	
La Propiedad Arrendada deberá considerarse lista para ocuparse cuando las Mejoras hayan sido completadas, de tal forma para permitir el uso de dichas áreas para esos propósitos anteriormente contemplados y de acuerdo con las Especificaciones. La Persona a cargo de las Mejoras deberá preparar, certificar con firma autógrafa y entregar por duplicado a la COMPAÑIA y a PITSA una declaración que contemple lo siguiente:

	
 
	
a.
	
Que las Mejoras han sido substancialmente finalizadas de acuerdo con las Especificaciones, cualquier cambio debidamente autorizado o cambios descritos en el presente y

	
 
	
b.
	
La fecha de finalización de la Obra.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
2
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

PITSA debe completar o reparar diligentemente, tan pronto sea posible, cualquier detalle o corrección no terminada cuando la Propiedad Arrendada este lista para ocuparse.

	
 
	
F.
	
En el caso de requerir construcción adicional, y si debido a la naturaleza del mismo llega a ser necesario, cada parte aquí firmante deberá inmediatamente designar a un individuo como representante de Obra. Cada Parte acuerda en someterse y autoriza a la otra en confiar y en conservar la construcción original, una vez dados los acuerdos aprobados, así como cualquier otra acción por conducto de la otra parte por su representante de Obras, o cualquier persona subsecuentemente designada y notificada por escrito a la otra parte.

	
 
	
G.
	
Bajo consentimiento por escrito de PITSA, la COMPAÑÍA puede, en cualquier momento antes de la Fecha de Inicio, bajo su propio riesgo, realizar e instalar muebles de comercio, maquinaria y equipo en la Propiedad Arrendada de la manera en que lo considere. PITSA acuerda permitir el establecimiento de tales muebles, maquinaria y equipo en operación por los Empleados de la COMPAÑÍA o cualquier contratante, y que tales acciones no liberarán a PITSA de su responsabilidad de finalizar las Mejoras bajo los términos y condiciones aquí descritas.

	
 
	
H.
	
PITSA reconoce que cualquier o todas las Mejoras a la construcción a ser realizadas por PITSA de ahora en adelante, ya sea durante el termino anterior al Contrato de Arrendamiento o después del mismo, los empleados de PITSA o aquellos contratados a terceras partes por PITSA, serán sola y únicamente responsabilidad de PITSA y por lo tanto, las garantías y acuerdos con la COMPAÑÍA de que tales empleados o terceras personas estarán en pleno consentimiento de todos los acuerdos de construcción, Seguro Social, impuestos, mano de obra y otra leyes y Reglamentos Mexicanos aplicables.

	
 
	
I.
	
Si PITSA falla en entregar las Mejoras en la fecha indicada anteriormente en la Sección II-C, PITSA acuerda en pagar por daños una cantidad equivalente a un día de renta de la Propiedad Arrendada por cada día de retraso hasta completar las Mejoras.

	
 
	
III.
	
INSTALACIONES POR LA COMPAÑÍA

	
 
	
A.
	
La COMPAÑÍA puede, a su coste, instalar en la Propiedad Arrendada, tales muebles y composturas, equipo y mejoras en el almacén, como lo considere necesario; provisto de que tales artículos sean instalados y removidos sin dañar la integridad estructural de la Propiedad Arrendada y Mejoras. Tales artículos de mercadeo, equipo y muebles deberán permanecer como propiedad de la COMPAÑÍA, y a menos que la COMPAÑÍA lo considere necesario, deberán removerse por la propia COMPAÑÍA una vez que expiren los términos aquí descritos, o a la finalización anticipada de este Contrato de Arrendamiento. La COMPAÑÍA puede además instalar mejoras temporales en el interior de la Propiedad Arrendada, provisto de que tales mejoras sean instaladas y removidas sin dañar la estructura de las Mejoras. La COMPAÑÍA deberá reparar, a su propio coste, todos los daños causados por la instalación o remoción de tales artículos de comercio, equipo, muebles o mejoras témporales.

	
 
	
B.
	
La Compañía deberá realizar todas las instalaciones de acuerdo a todas las leyes, reglamentos, normas, órdenes de las autoridades gubernamentales, así como el Reglamento del Edificio Industrial de PITSA, las cuales se adjuntan como Anexo “D”.

	
 
	
IV.
	
PLAZO DE ARRENDAMIENTO Y FECHA DE INICIO

	
 
	
A.
	
Contrato de Arrendamiento. Este Contrato de Arrendamiento deberá ser efectivo desde la Fecha de Inicio, la cual para los propósitos de este Contrato de Arrendamiento se establece el 1ro. de junio de 2000. PITSA procederá diligentemente a ejecutar las Mejoras que no estén listas a la Fecha de Inicio.

	
 
	
B.
	
Plazo. Plazo de Arrendamiento por Siete Años. La Vigencia de este Contrato de Arrendamiento deberá de ser por Siete Años, comenzando desde la Fecha de Inicio y deberá terminar el último día del plazo del Séptimo Año, como dicho plazo se define en adelante.

	
 
	
C.
	
Año de Arrendamiento. El termino “Año de Arrendamiento” como se utiliza aquí, deberá de ser un período de doce (12) meses completos consecutivos calendarizables. El primer Año de Arrendamiento deberá comenzar en la Fecha de Inicio.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
3
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

	
 
	
V.
	
RENTA.

	
 
	
A.
	
Arrendamiento. Se define como la renta establecida para Arrendar la Propiedad Arrendada durante el Plazo de Arrendamiento aquí establecido, la COMPAÑÍA deberá pagar a PITSA la cantidad de US$0.36 (treinta y seis centavos 00cts./l00 US Dlls.), mas el Impuesto al valor Agregado (I.V.A.) por pie cuadrado por mes, pagado precisamente en tal moneda o en Pesos Mexicanos al tipo de cambio establecido al momento del pago de acuerdo al valor de venta del Banco Internacional, S.A. (BITAL), Sucursal las Californias. Tal cantidad deberá ser pagadera por adelantado el primero de cada mes, en la dirección de PITSA, o bien, depositada en la cuenta # 7000414706 del Banco BITAL, Sucursal Las Californias, bajo el nombre de Promotora Industrial de Tijuana, S.A. de C.V. Dicha renta deberá ajustarse anualmente para reflejar el incremento exacto del Índice de Precios del Consumidor de Los Ángeles Anaheim-Riverside cada aniversario del Plazo de Arrendamiento. El ajuste a la renta no será menor al 2% y no excederá el 4.5% por año.

El pago de la Renta deberá comenzar en la Fecha de Inicio el 1ro. de junio de 2000 como se define anteriormente en la Sección IV-A.

	
 
	
B.
	
Cuota de Mantenimiento. La COMPAÑÍA deberá pagar una cuota de mantenimiento mensual de US$0.0138 por pie cuadrado de Propiedad Arrendada, además de su Impuesto al Valor Agregado (I.V.A.), la cual cubre los costes de jardinería, alumbrado público, limpieza de vías, remoción de basura y mantenimiento exterior de edificios. La cuota de mantenimiento será pagadera junto con la renta mensual. Dicha cuota deberá ajustarse anualmente para reflejar el incremento del Índice de Precios del Consumidor de Los Ángeles Anaheim-Riverside cada aniversario del Plazo de Arrendamiento. El ajuste a la cuota de mantenimiento no será menor al 2% y no excederá el 4.5% por año.

Si cada renta y cuota de mantenimiento no se cubren dentro de los primeros cinco (5) días de cada mes, se penalizará por moroso y se cargará un 5% de la renta mensual.

	
 
	
C.
	
La COMPAÑÍA acuerda a proveer mantenimiento del equipo especifico propiedad de PITSA, tal como las unidades de Aire Acondicionado, compresores y transformadores eléctricos. Para tal propósito, la COMPAÑÍA mantendrá un libro de bitácoras indicando todo el mantenimiento provisto a dicho equipo.

	
 
	
D.
	
En adición a los acuerdos anteriores, la COMPAÑÍA pagará la renta señalada anteriormente, en la dirección de PITSA como se indica en este Contrato de Arrendamiento, o en la dirección de la institución bancaria o en cualquier lugar señalado por PITSA, bajo los términos de la Cláusula XIII de este Contrato de Arrendamiento.

	
 
	
E.
	
Depósito por Daños. A la terminación de este Contrato de Arrendamiento por PITSA debido a faltas de la COMPAÑÍA, antes o durante los primeros seis (6) meses del Plazo de Arrendamiento, o a la terminación por la COMPAÑIA sin causa alguna, obliga a PITSA a aplicar automáticamente como Depósito por Daños todas las sumas pagaderas o depositadas por la COMPAÑÍA, como lo es la renta de depósito o pago por seguridad, además de cualquier otro derecho de PITSA previsto en este Acuerdo.

	
 
	
F.
	
Premisa. El pago de cualquier adeudo de renta en por este Contrato de Arrendamiento, no deberá ser reducida o suspendida por ninguna razón y la COMPAÑÍA acuerda en defender cualquier clamo, demanda u otro derecho contra PITSA sólo por vía de un procedimiento independiente.

	
 
	
G.
	
PITSA declara haber recibido de la COMPAÑÍA la cantidad de $25,106.69 Dólares Americanos con I.V.A. incluido, para ser aplicados por el primer mes de renta a la Fecha de Inicio para lo cual PITSA deberá entregar en recibo correspondiente. PITSA además declara haber recibido de la COMPAÑÍA la cantidad de $ 65,944.89 Dólares Americanos, como depósito en garantía para cumplir con las obligaciones descritas en este Contrato. Se entiende que tal depósito no será considerado como pago por adelantado de rentas pero se utilizará únicamente para remediar cualquier imprevisto o incumplimiento de la COMPAÑÍA.

	
 
	
VI.
	
USO.

La Propiedad Arrendada deberá utilizarse y ocuparse para Ensamblaje Industrial Ligero o cualquier otro propósito de índole Legal-industrial que no viole el Reglamento del Parque Industrial de PITSA, adjunto como Anexo “D”. La COMPAÑÍA deberá cumplir de manera cabal y rápida con todas las leyes, reglamentos y órdenes de todas las autoridades gubernamentales que afecten a la Propiedad Arrendada o aquellas que pudieran amenazar a otros ocupantes del Parque Industrial.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
4
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

	
 
	
VII.
	
SEGUROS.

	
 
	
A.
	
Seguros contra Incendios y Otros. Con vigencia a partir de la Fecha de Inicio del Contrato de Arrendamiento, la COMPAÑÍA deberá obtener un seguro de cobertura del edificio, sus mejoras, contenidos y daños a terceras personas, particularmente en consideración del riesgo de los productos que serán procesados o resguardados en la Propiedad Arrendada; todos las pólizas de seguros estarán a favor de PITSA como el beneficiario. Si dichas pólizas no son obtenidas en o antes de la Fecha de Inicio, PITSA contratará una póliza de seguro equivalente para cubrir dichas contingencias y la COMPAÑÍA será responsable de rembolsar a PITSA la cantidad de las tarifas correspondientes inmediatamente o contra demanda.

	
 
	
B.
	
Forma y Entrega de pólizas. Cada póliza de aseguranza referidas en los párrafos anteriores deberán estar en los formatos aprobados por la “Secretaria de Hacienda y Crédito Publico” y escritas con una o mas compañías con licencia para asegurar en Tijuana, Baja California, México, y deberán prever que no estarán sujetas a cambios o cancelación, a excepción de pleno consentimiento por escrito treinta (30) días posteriores a la notificación a PITSA. Antes de la Fecha de Inicio del Plazo de Arrendamiento, cada una de las partes deberá procurar y mantener dicho Seguro lo más necesario y pertinente para cubrir las responsabilidades y la propiedad. La COMPAÑÍA deberá entregar a PITSA la póliza correspondiente dentro de los treinta (30) días siguientes a la fecha de la firma de este Contrato de Arrendamiento.

	
 
	
C.
	
Garantías. La COMPAÑÍA deberá asegurar que la garantía bajo la forma del Anexo “E” adjunta a este documento sea exhibida por Leach Internacional Corporation, para asegurar la adherencia de la COMPAÑÍA a todas las condiciones, convenios, obligaciones, responsabilidades y acuerdos descritos en este Contrato de Arrendamiento. Con tal garantía, el Garante deberá entregar una copia de los estados financieros más recientes.

	
 
	
VIII.
	
IMPUESTOS Y ADEUDOS

Con la excepción del impuesto al IVA y al impuesto de retención para PITSA, el cual debe de ser absorbido por PITSA, la COMPAÑÍA deberá pagar el impuesto predial y todos aquellos impuestos y adeudos de todo tipo, los cuales son o pueden surgir en cualquier momento durante el Plazo de Arrendamiento, agravados sobre la Propiedad Arrendada, el Contrato de Arrendamiento o la COMPAÑÍA debido a la naturaleza de sus actividades. Todos estos impuestos y adeudos deberán ser cubiertos por la COMPAÑÍA, y el recibo de pago de impuestos y adeudos será entregado a PITSA antes de que estos impuestos y adeudos sean moratorios.

LA COMPAÑÍA además acuerda en pagar todos los impuestos y adeudos de todo tipo que recaigan sobre cualquier propiedad personal de la COMPAÑÍA, sus sucesores y designados, donde aplique o pueda recaer sobre la Propiedad Arrendada. Todos estos impuestos y adeudos deberán ser cubiertos por la COMPAÑÍA antes de que los mismos se conviertan en moratorios.

	
 
	
IX.
	
REPARACIONES, ALTERACIONES Y MEJORAS

	
 
	
A.
	
PITSA

	
 
	
1.
	
Después de notificar por escrito por parte de la COMPAÑÍA, PITSA, a su propio coste, deberá con la mínima interferencia del uso normal de la Propiedad Arrendada, diligentemente proceder a reparar cualquier defecto estructural en el techo o parte exterior de las paredes, construidas por PITSA, a excepción de aquella producida por desgaste normal. PITSA no será responsable de cualquier daño y no estará obligada a realizar ninguna reparación debida a daños causados por cualquier acto de negligencia u omisión de la COMPAÑÍA, sus empleados, agentes, invitados o contratistas. PITSA no tendrá ninguna obligación de mantener o reparar ninguna otra porción de la Propiedad Arrendada, excepto por la reparación de aquellas mejoras construidas por PITSA para la COMPAÑÍA por el período de un año después de su finalización. PITSA no será responsable ni responderá a la COMPAÑÍA por ningún daño resultante de la falla de PITSA sobre las reparaciones, a menos que la COMPAÑÍA haya notificado a PITSA de la necesidad de tales reparaciones y que PITSA haya fallado a iniciar tales reparaciones dentro de los siete (7) días siguientes a que dicha notificación por escrito haya sido entregada y no se hubiere finalizado de manera diligente en el caso de atención a asuntos mas urgentes.

	
 
	
2.
	
Si PITSA falla en realizar tales reparaciones descritas en la Cláusula IX, “A”, la COMPAÑÍA puede, más no esta sujeta a, realizar o encausar tales reparaciones, y PITSA debe, bajo demanda, inmediatamente pagar a la COMPAÑÍA el coste razonable de las reparaciones.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
5
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

	
 
	
A.
	
COMPAÑÍA

	
 
	
1.
	
La COMPAÑIA, a su propio coste, excepto por aquellas obligaciones de PITSA establecidas en el párrafo “A”, 1, de esta Cláusula, deberá mantener en buen estado y reparar, excepto por el desgaste normal de toda la Propiedad Arrendada, incluyendo las Mejoras, e incluyendo pero no limitando a, la plomería, drenaje y cualquier instalación de utilerías que se encuentren dentro de la Propiedad Arrendada, así como reparaciones, particiones, paredes (exteriores e interiores, incluyendo la pintura tan seguido como sea necesario), pisos, cielos, señales, aire acondicionado, instalaciones eléctricas, calefacción y equipo similar, puertas, ventanas, mesas de vidrio y cualquier tipo de reparaciones, la Propiedad Arrendada. La COMPAÑÍA, a su propio coste, deberá reparar todas las goteras, excepto esas causadas por daños estructurales en el techo y paredes exteriores. Las instalaciones de plomería no deberán utilizarse para ningún otro propósito mas allá del que fueron construidas. Los gastos de cualquier rompimiento, obstrucción o daño resultante por una violación de esta provisión, deberá ser absorbida por la COMPAÑIA. La COMPAÑÍA deberá resguardar toda la basura, sólo temporalmente, dentro de la Propiedad Arrendada, y deberá contratar el desecho de la misma regularmente a pleno costo de la COMPAÑÍA. La COMPAÑÍA no deberá quemar la basura, sea esta de cualquier tipo, dentro o fuera de la Propiedad Arrendada o cerca del Parque Industrial.

	
 
	
2.
	
La COMPAÑÍA requerirá por escrito del consentimiento de PITSA para realizar cualquier alteración, mejora o adición a las paredes exteriores y techo de la Propiedad Arrendada con un costo excedente a los US$5,000.00 (Cinco Mil Dólares Americanos 00/100.). La COMPAÑÍA no deberá dañar los pisos, paredes, cielos, particiones, o tipo de acabados de madera, piedra o herrería dentro o por alrededor de la Propiedad Arrendada en relación con la construcción de cualquier alteración mencionada o mejoras.

	
 
	
3.
	
La COMPAÑÍA deberá mantener la Propiedad Arrendada limpia y libre de impedimentos y responsabilidades que surjan de actos de omisión de la COMPAÑÍA, incluyendo esos que surjan por la construcción realizada u ordenada por la COMPAÑÍA. Sin embargo, si por alguna causa del trabajo realizado, acabado de los materiales o de las obligaciones incurridas por la COMPAÑÍA con cualquier tercero, o cualquier acto u omisión de la COMPAÑÍA, PITSA resulta responsable o se ve envuelta en una Litigación, la COMPAÑÍA deberá liberar e indemnizar a PITSA incluyendo los gastos y costes, así como los honorarios incurridos de los abogados por dicha razón.

Si la COMPAÑÍA falla en deslindar completamente de cualquier impedimento o responsabilidad dentro de los treinta (30) días siguientes a la fecha que aparezca en el registro, o falla en proveer una indemnización aceptable a PITSA en caso de litigación, PITSA por propia fe, puede pagar todo o en parte. Si PITSA paga tales responsabilidades o impedimentos de cualquier tipo, la COMPAÑÍA deberá, bajo demanda, inmediatamente pagar a PITSA dicha cantidad cubierta, junto con la tasa de interés al 20% anual desde la fecha del pago. Ninguna responsabilidad o impedimento de cualquier carácter creado por la omisión o acto de la COMPAÑÍA deberá en ninguna manera afectar los derechos de PITSA sobre la Propiedad Arrendada.

	
 
	
X.
	
SERVICIOS PÚBLICOS

Durante los términos de este Contrato de Arrendamiento, la COMPAÑÍA deberá pagar en tiempo y forma cualquier tipo de servicio público y otros servicios realizados a la Propiedad Arrendada, incluyendo pero no limitando a, agua, luz, gas, electricidad, telefonía y cargos por recolección de basura. PITSA asistirá a la COMPAÑÍA en la contratación de tales servicios de llegar a ser necesario.

Todos los contratos para la instalación de cualquiera de estos servicios en la Propiedad Arrendada, como el agua, drenaje y cuotas de reconexión telefónica, de existir alguna, así como cargos por instalación de KVA por la Comisión Federal de Electricidad y sus cargos por demanda de electricidad y reconexión, serán cubiertas completamente por la COMPAÑÍA. Hay 200 KVA’s libres de cargos por parte de la Comisión Federal de Electricidad; cualquier necesidad mas allá de estos KVA’s será provista y con cargo adicional por parte de la CFE hacia la COMPAÑÍA. PITSA garantiza que en el sitio habrá al menos 700 KVA’s disponibles en el Edificio, los cuales serán provistos por la CFE.

Existe una compañía de seguridad controlando los accesos del Parque Industrial PITSA. El servicio será pagado de manera distributiva por los inquilinos de acuerdo a los pies cuadrados arrendados. La COMPAÑÍA como inquilino principal, puede elegir y controlar sus premisas de seguridad.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
6
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

	
 
	
XI.
	
DERECHO DE VÍA

A PITSA se le conseciona un derecho de vía sobre de, a lo largo de y por debajo de la Propiedad Arrendada; para acceso, salida, instalaciones, sustituciones, reparaciones y mantenimiento de servicios públicos, incluyendo pero no limitando a, gas, agua, telefonía, toda la electricidad y sistemas de televisión o antenas de radio dentro de la Propiedad Arrendada. Por virtud, este derecho de vía debe ser lo suficiente amplio para que las compañías de electricidad y telefonía edifiquen y den el mantenimiento necesario a los postes y a cualquier otro tipo de equipo dentro de la Propiedad Arrendada; previsto que durante el ejercicio de cualquier derecho, PITSA puede tener bajo la Cláusula XI, en donde acuerda en establecer sólo una mínima interferencia con el uso y posesión de la COMPAÑÍA sobre la Propiedad Arrendada. A menos de que el desarrollo de cualquier instalación o reparación sea absolutamente necesaria para la integridad de los inquilinos, cualquier compostura, cableado, alambrado y/u otro equipo que pudiera requerir de ser instalado dentro de los límites del edificio industrial del la Propiedad Arrendada deberá ser previamente autorizada por escrito por la COMPAÑÍA, tal autorización no será retenida sin razón alguna. Los daños o pérdidas debido a la falta de autorización o demora en el cumplimiento de tal autorización será responsabilidad de la COMPAÑÍA.

	
 
	
XII.
	
OTORGAMIENTO O SUBARRENDAMIENTO.

	
 
	
A.
	
La COMPAÑÍA tiene el derecho, previa autorización por escrito de PITSA, asignar o transferir o subarrendar este Contrato de Arrendamiento o cualquier interés dentro del mismo, o permitir el uso de la Propiedad Arrendada a cualquier persona o compañía, previsto, sin embargo, que la COMPAÑÍA, en el caso de que tal autorización para asignar, transferir o subarrendar, la COMPAÑÍA deberá mantener la responsabilidad de todas las obligaciones de este Contrato de Arrendamiento.

	
 
	
B.
	
PITSA tiene el derecho de asignar y reasignar, de vez en cuando, cualquier o todos los derechos y obligaciones de PITSA dentro de este Contrato de Arrendamiento, o cualquier interés dentro del mismo, sin el consentimiento de la COMPAÑÍA, previsto que ninguna asignación o reasignación mencionada deberá revocar cualquiera de los derechos de la COMPAÑÍA descritos en este documento, y previsto que mas aún, PITSA deberá permanecer responsable de todas sus obligaciones bajo este Contrato de Arrendamiento, declarando directamente contra tal asignación, cualquier defensa, premisas o reclamos que la COMPAÑÍA pudiere tener en contra de PITSA o cualquier otra persona. Sin embargo, la COMPAÑÍA, dentro de este documento, renuncia respecto a suspender la renta o cualquier medida preventiva para garantizar el pago de un reclamo, como se describe en los procedimientos del Código Civil.

	
 
	
XIII.
	
SUBORDINACIÓN.

Durante el plazo de este Contrato de Arrendamiento, PITSA tiene el derecho de impedir su interés sobre la Propiedad Arrendada o dentro de este Contrato de Arrendamiento para cualquier propósito que considere más conveniente, y la COMPAÑÍA debe y acuerda en subordinar su interés dentro de este Contrato de Arrendamiento y sobre la Propiedad Arrendada a tales impedimentos. Sin embargo, en caso de que tales impedimentos sean por embargos o por preceptos de ley, quien resulte tener el impedimento debe acordar con respecto a este Contrato de Arrendamiento y aceptar el desempeño de la COMPAÑÍA y de sus obligaciones descritas en este documento. La COMPAÑÍA debe ejecutar cualquier acuerdo que sea requerido por PITSA conforme a tal subordinación y emitir cualquier información financiera que pudiera ser requerida por cualquier compañía de seguros, entidad bancaria u otra institución de reconocida.

Una vez que PITSA haya notificado por escrito a la COMPAÑÍA que el representante ha asignado su interés de este Contrato de Arrendamiento a cualquier institución de préstamo como garantía por préstamos u otra obligación de PITSA, PITSA no tendrá poder de enmendar este Contrato de Arrendamiento como para reducir la renta, reducir el plazo o modificar o negar cualquier obligación de la COMPAÑÍA en los términos descritos, o acordar rescindir este Contrato de Arrendamiento sin el previo consentimiento por escrito de dicha institución de préstamos. Tal obligación deberá continuar hasta que la institución de préstamos haya notificado a la COMPAÑÍA por escrito de que tal asignación ha sido terminada, en el entendido de que si PITSA falla en obtener tal aprobación de la institución de préstamos para llevar a cabo lo siguiente, la enmienda a los términos arriba mencionados no tendrán ningún efecto contra dicha institución de préstamos. En adición, si la institución de notificara por escrito a la COMPAÑÍA requiriendo directamente los pagos de la renta descrita en este documento a dicha institución de o su representante, entonces la COMPAÑÍA debe de obligarse a pagar a tal institución de o a su representante cada renta subsiguiente que se cumpla dentro de este Contrato de Arrendamiento (junto con cualquier adeudo de rentas moratorio), hasta la fecha en que dicha institución de préstamos notifique a la COMPAÑÍA autorizando el pago de la renta a PITSA o cualquier otra parte con derechos dentro de este documento. La COMPAÑÍA entiende y acuerda que a excepción del depósito de seguridad por adelantado previsto en la Sección de Misceláneos, a petición de PITSA, deberá proporcionar una declaración de que no se ha realizado ningún pago por adelantado; tal documento deberá ser emitido a voluntad de la COMPAÑÍA y en contra de la institución de que este Contrato de Arrendamiento pudiera asignársele. En adición, la institución de no podrá reconocer esos pagos realizados a PITSA después de que la COMPAÑÍA haya recibido la notificación de solicitud de pagos hacia dicha institución de.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
7
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

	
 
	
XIV.
	
ACCESOS A LA PROPIEDAD ARRENDADA.

Sin ninguna intervención en las operaciones de la COMPAÑÍA, PITSA o sus representantes autorizados tienen el derecho de entrar a la Propiedad Arrendada durante las horas hábiles de la COMPAÑÍA, y en emergencias, en todo momento para inspeccionar la Propiedad Arrendada y realizar reparaciones, adiciones o alteraciones a la Propiedad Arrendada. Por un período inicial de noventa (90) días antes de la finalización de este Contrato de Arrendamiento, PITSA tendrá acceso a la Propiedad Arrendada con el propósito de exhibirla a sus prospectos de arrendatarios así como colocar anuncios de “Para Venta” o “Para Renta” dentro de la Propiedad Arrendada y la COMPAÑÍA tiene el derecho de acompañar a los representantes de PITSA y a los prospectos de arrendatarios. PITSA y la COMPAÑÍA acuerdan en establecer los horarios y calendarización de las visitas para la exhibición de la Propiedad Arrendada. La COMPAÑÍA, bajo su propio riesgo, se reserva el derecho de autorizar a PITSA a entrar al edificio en caso de emergencia.

	
 
	
XV.
	
DAÑOS O DESTRUCCIÓN.

	
 
	
A.
	
Total. En el evento de que toda o parte substancial de la Propiedad Arrendada sea dañada o destruida por fuego, acto de naturaleza, o cualquier otra causa, de tal forma en que la COMPAÑÍA no pueda continuar la operación de su negocio, PITSA y la COMPAÑÍA deberán, en un período de diez (10) días posteriores a dicha destrucción determinar si la Propiedad Arrendada puede restaurarse en los siguientes cuatro (4) meses. Si PITSA y la COMPAÑÍA determinan que la Propiedad Arrendada no puede restaurarse en cuatro (4) meses, ya sea PITSA o la COMPAÑÍA tiene el derecho y la opción de inmediatamente terminar este Contrato de Arrendamiento, avisando por escrito a la otra parte. Si PITSA y la COMPAÑÍA determina que la Propiedad Arrendada si puede ser restaurada en cuatro (4) meses, PITSA procederá diligentemente a reconstruir la Propiedad Arrendada, sin la obligación de la COMPAÑÍA a pagar las rentas durante tal período de reconstrucción o hasta la fecha en que la Propiedad Arrendada le sea entregada a la COMPAÑÍA.

	
 
	
B.
	
Parcial. En el evento de que dichos daños fueran causados a sólo una porción de la Propiedad Arrendada y tal destrucción no limite a la COMPAÑÍA para continuar su operación normal de su negocio en la Propiedad Arrendada, PITSA y la COMPAÑÍA deberán reparar tal daño, cada parte reconstruirá la porción de las Mejoras de la cual era responsable en la construcción original, teniendo en cuenta que para el período correspondiente para reparar y restaurar las Mejoras de PITSA, la renta descrita a pagar por la COMPAÑIA deberá ser equitativamente dividida a su interferencia del uso y posesión de la COMPAÑÍA de la Propiedad Arrendada causada por tales daños y reparaciones.

	
 
	
XVI.
	
LIMITACIÓN DE RESPONSABILIDAD.

A excepción de los actos intencionales o negligentes o actos de omisión de PITSA, sus agentes y empleados, PITSA no será responsable de la COMPAÑÍA o de cualquier otra persona por ninguna pérdida o daño de cualquier tipo o naturaleza causada por actos intencionales o negligentes o actos de omisión de la COMPAÑÍA u otros ocupantes del Parque Industrial PITSA, incluyendo pero no limitando a cualquier falla de obra o cualquier interrupción de cualquier servició público dentro o alrededor de la Propiedad Arrendada. La COMPAÑÍA reconoce que las adiciones, reemplazos y reparaciones al Parque Industrial PITSA serán realizadas de tiempo en tiempo, previsto que los mismos no interferirán con el uso y goce de la Propiedad Arrendada por la COMPAÑÍA.

	
 
	
XVII.
	
INDEMNIZACIÓN.

La COMPAÑÍA acuerda a indemnizar y deslindar de responsabilidad a PITSA de cualquier muerte o daño a terceras personas, o daño en propiedad ajena, los cuales surjan por actos negligentes o de omisión por parte de la COMPAÑÍA, o sus contratantes, licenciados, agentes, invitados o empleados, que ocurran dentro o por los linderos de la Propiedad Arrendada, así como cubrir todos los costes y gastos, incluyendo los honorarios de abogados en los que se incurran.

PITSA indemnizará y deslindará de responsabilidad a la COMPAÑÍA de cualquier muerte, heridas o daños a la propiedad de la COMPAÑÍA o sus agentes o empleados, así como de cualquier responsabilidad de muerte o daños a terceras personas o daño en propiedad ajena mientras legalmente recaiga sobre la Propiedad Arrendada, las cuales ocurran por razones de negligencia o actos de omisión de PITSA, sus agentes o empleados, así como cubrir todos los gastos generados incluyendo los honorarios de abogados en los que se incurran.

	
 
	
XVIII.
	
AVISOS.

Todos los avisos bajo este Contrato de Arrendamiento deberán enviarse y dirigirse a las partes mencionadas en las Declaraciones anteriores o a cualquier otra dirección las cuales se generen de tiempo en tiempo por las partes que se mencionan en el documento. Tales avisos deberán de estar por escrito y deberán de otorgarse (7) días de gracias después de la fecha de envío por correo, o entrega personal de ser posible para dar acuse de recibido. Deberán enviarse avisos por duplicado y por correo aéreo certificado, con timbre prepagado a dichas direcciones según sea requerido de tiempo en tiempo por escrito por las partes que integran este documento.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
8
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

	
 
	
XIX.
	
FALTAS DE LA COMPAÑÍA.

	
 
	
A.
	
Cada uno de los siguientes puntos serán Faltas de la COMPAÑÍA.

	
 
	
1.
	
Abandono o desalojo de la Propiedad Arrendada. PITSA considerará el edificio abandonado cuando la COMPAÑÍA cierre sus operaciones, dé por terminadas las relaciones laborales con sus empleados y se abstenga de realizar los pagos de renta por uno o más meses. Bajo tales circunstancias, PITSA puede proceder a tomar el edificio después de notificar a la COMPAÑÍA bajo los términos que se describen, y cuando no se haya recibido ninguna respuesta dentro de un período de quince (15) días posteriores a la fecha de notificación. Para tal propósito, PITSA, como lo expresa el documento, está autorizada por la COMPAÑÍA a requerir a una corte competente, bajo la jurisdicción voluntaria, de proceder a dar posesión del edificio utilizando cualquier medio legal provisto por ley, así como renunciar la COMPAÑÍA a su derecho de reclamar adeudos antes del aviso de desalojo. Este procedimiento deberá ser observado independientemente de cualquier otro recurso de ley de PITSA, tal como se menciona en el documento. Consecuentemente, la COMPAÑÍA expresa su consentimiento y se submite a tal acción, renunciando expresamente de tomar alguna acción para reclamar o demandar a PITSA y/o a sus representantes por tal ocupación, así como del reclamo por pérdidas o daños de cualquier naturaleza.

	
 
	
2.
	
La omisión de pago de cualquier adeudo de renta descrita en el presente documento una vez que la fecha se cumpla, como se describe en la Cláusula “V” párrafo “A” de este Contrato, sin necesidad de notificación de ningún tipo;

	
 
	
3.
	
La omisión de cumplir en cualquier momento los acuerdos u obligaciones de este documento, tal evasión, a excepción del pago de rentas, continuarán por quince (15) días después de la notificación por escrito de parte de PITSA a la COMPAÑÍA (o por cualquier período razonable necesario para la COMPAÑÍA para cubrir tal Evasión expresada por PITSA);

	
 
	
4.
	
Una disposición general de la COMPAÑÍA por el beneficio de créditos;

	
 
	
5.
	
La requisición de una petición voluntaria de bancarrota de la COMPAÑÍA o la requisición de una petición involuntaria del crédito de la COMPAÑÍA, si dicha petición permanece con adeudo por un período de sesenta (60) días;

	
 
	
6.
	
La cita de un Consultivo para tomar posesión de substancialmente todo los bienes de la COMPAÑÍA o de la Propiedad Arrendada, si dicha demanda permanece vigente o efectiva por un período de treinta (30) días; o

	
 
	
7.
	
La omisión de la COMPAÑÍA en cumplir en alguna o todas las leyes o reglamentos aplicables de cualquier Agencia Ambiental del Gobierno de México, en relación con el uso u operación de cualquier equipo de la COMPAÑÍA que pudiera considerarse como contaminante por tal Dependencia Gubernamental, así como la falta en cumplir con alguna o todas las recomendaciones dadas por tal Dependencia Gubernamental en relación con la misma.

	
 
	
B.
	
Bajo la acción o realización de cualquiera de las Faltas, PITSA tendrá el derecho, a su consideración, y en adición a otros derechos o enmiendas otorgadas por la ley, el incluir el derecho de demanda por daños, para así inmediatamente rescindir este Contrato de Arrendamiento y desalojar a la COMPAÑÍA de la Propiedad Arrendada, independientemente del derecho otorgado bajo el párrafo A-1) de estas Cláusulas

	
 
	
XX.
	
DERECHO DE RESOLUCIÓN DE FALTAS.

En el caso de una falta de la COMPAÑÍA en algunos de los términos o declaraciones de este documento (a excepción del pago de rentas y cuotas de mantenimiento) PITSA puede, sin ninguna obligación, en cualquier momento, después de diez (10) días previo aviso por escrito, resolver tales faltas u omisiones o de realizar reparaciones a la Propiedad Arrendada, a cuenta y gastos de la COMPAÑÍA. Si PITSA, por razón de estas faltas u omisiones, paga cualquier cantidad de dinero o se ve forzada en incurrir en gastos de honorarios legales, dichas sumas, pagos incurridos con intereses y daños, deberán ser pagados por la COMPAÑÍA a PITSA el primer día de cada mes después de incurridos tales gastos.

Si cualquier adeudo de renta u otro pago no se cubre inmediatamente a su vencimiento, generará un interés del cinco (5%) por ciento mensual a partir de la fecha de su vencimiento hasta cubrirse en su totalidad. Esta declaración no tiene la intención de liberar a la COMPAÑÍA de cualquier falta al realizar cualquier pago en su tiempo y forma como se expresa en este documento. El interés generado, gastos y daños deberán ser rescatados por la COMPAÑÍA por el ejercicio del derecho de PITSA a recuperar los daños descritos en la Cláusula XX.

Nada del contenido de la Cláusula XX afecta el derecho de PITSA a ser indemnizada por la COMPAÑÍA de acuerdo con la Cláusula XVIII anterior, por las responsabilidades que surjan de la terminación de este Contrato de Arrendamiento por daños personales o daños en propiedad ajena.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
9
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

	
 
	
XXI.
	
RENUNCIA

En el caso de que PITSA o la COMPAÑÍA no obligue a la otra en cumplir con las obligaciones descritas, tal acción u omisión no deberá ser interpretada como renuncia o una subsiguiente falta de la misma o cualquier otra declaración. Cualquier consentimiento o aprobación no será causa de renuncia o demérito o abandono innecesario del consentimiento o aprobación de cualquier acto subsiguiente o similar por la COMPAÑÍA o PITSA.

	
 
	
XXII.
	
CERTIFICADOS.

Dentro de los diez (10) días posteriores a la recepción de la solicitud por escrito emitida por PITSA, la COMPAÑÍA debe entregar a PITSA una declaración por escrito certificando que esta Propiedad Arrendada no será modificada y que tiene pleno efecto y validez (o si hubiere modificaciones, que tales gozan de plena validez y efecto según se modifiquen); las fechas en las que la renta y otros cargos sean pagadas por adelantado; y que las mejoras de PITSA han sido satisfactoriamente terminadas, es la intención de que tal declaración pueda recaer y dar confianza a cualquier persona, prospecto de compra o institución interesada en la Propiedad Arrendada.

	
 
	
XXIII.
	
PERÍODO DE GRACIA.

Si la COMPAÑÍA permaneciera en posesión de la Propiedad Arrendada, debido a la omisión o negligencia de la COMPAÑÍA, después del vencimiento de este Contrato de Arrendamiento, la COMPAÑÍA deberá pagar a PITSA una pena convencional mensual igual al ciento veinte por ciento (120%) de la cantidad de la renta mensual, al vencimiento de la fecha del Contrato de Arrendamiento hasta que la COMPAÑÍA haya entregado a PITSA la posesión de la Propiedad Arrendada o a la realización de un nuevo Contrato de Arrendamiento. Esta declaración no constituye ningún otorgamiento de ningún derecho a la COMPAÑÍA a permanecer en posesión de la Propiedad Arrendada después del vencimiento del Plazo de Arrendamiento. La COMPAÑÍA debe indemnizar a PITSA contra cualquier pérdida o responsabilidad resultante del retraso de la COMPAÑÍA en devolver la Propiedad Arrendada, al vencimiento de este Contrato de Arrendamiento, renunciando a cualquier derecho otorgado por Ley.

	
 
	
XXIV.
	
ENTREGA.

En el ultimo día del plazo de este Contrato de Arrendamiento, o anterior a al terminación del mismo de acuerdo a otras declaraciones descritas, la COMPAÑÍA deberá renunciar y entregar la Propiedad Arrendada, limpia de polvo, en buenas condiciones junto con cualquier alteración, adición o mejoras que pudieran haberse realizado, excepto muebles, maquinaria y equipo perteneciente a la COMPAÑÍA. Una vez terminado el Contrato de Arrendamiento, la COMPAÑÍA, a menos que incurra en Faltas, deberá inmediatamente remover todo de su propiedad, y toda la propiedad que no sea removida se declarará como abandonada por la COMPAÑÍA. En cualquier momento la COMPAÑÍA deberá reparar inmediatamente cualquier daño causado a la Propiedad Arrendada en el momento de remover toda propiedad de la COMPAÑÍA.

	
 
	
XXV.
	
OCUPACIÓN.

PITSA acuerda que la COMPAÑÍA, una vez pagada la renta y cualquier otro cargo provisto en el presente documento y toda vez que cumpla con todos los términos y cláusulas de este Contrato de Arrendamiento, podrá pacíficamente y con todo goce de ley ocupar y disfrutar de la Propiedad Arrendada durante el Plazo de Arrendamiento.

	
 
	
XXVI.
	
MISCELÁNEOS.

	
 
	
A.
	
Este documento contiene todos los acuerdos y condiciones establecidas entre las partes y no podrán ser modificadas oralmente o en cualquier forma más que por acuerdo escrito debidamente firmado por los representantes autorizados de ambas partes.

	
 
	
B.
	
Si cualquiera de los términos, convenios, condiciones o cláusulas de este Contrato de Arrendamiento, o la aplicación de los mismos a cualquier persona o circunstancia, pudiera por cualquier motivo ser revocada por una corte de jurisdicción competente, ser invalidada, vetada o no aplicable, el remanente de los términos, convenios, condiciones o cláusulas de este Contrato de Arrendamiento o la aplicación del mismo a cualquier persona o circunstancia, deberá permanecer en plena validez y efecto y no deberá en ninguna forma ser afectado, demeritado o invalidado.

	
 
	
C.
	
En el caso de que cualquiera de las partes inicien una acción contra la otra parte por la posesión de la Propiedad Arrendada, o por la recuperación de cualquier adeudo o suma aquí descrita, o debido a la Falta u omisión de cualquier convenio de este Contrato de Arrendamiento, la parte prevaleciente tendrá el derecho de solicitar de la otra parte la cobertura de los costos relevantes y gastos realizados, incluyendo aquellos generados por honorarios legales.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
10
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

	
 
	
D.
	
Cada pago y obligación requerida por este Contrato de Arrendamiento, deberá ser pagado en la fecha especificada para dicho efecto y no se permitirá ninguna extensión ni prórroga.

	
 
	
E.
	
Los Títulos y Subtítulos de las Cláusulas de este documento no tendrán ningún efecto en su interpretación de los términos y cláusulas contenidas dentro de este Contrato de Arrendamiento.

	
 
	
F.
	
La COMPAÑIA declara y promete entregar a PITSA en la fecha indicada en este Contrato de Arrendamiento una cantidad equivalente a tres meses de renta, como depósito en garantía para cumplir con las obligaciones asumidas por la COMPAÑÍA en el presente documento. Se entiende que dicho depósito no constituye las rentas ni se aplicará como pago de rentas, y será reembolsado por completo a la COMPAÑÍA por PITSA una vez concluido el Contrato de Arrendamiento, toda vez que la COMPAÑÍA muestre evidencia satisfactoria de que todas las obligaciones han sido cumplidas. De lo contrario, PITSA esta expresamente autorizado para utilizar dicho depósito para cubrir las cantidades adeudadas a PITSA bajo cualquier título descrito.

	
 
	
G.
	
Las partes acuerdan que este Contrato de Arrendamiento debe gobernarse por las Leyes del Estado de Baja California. Para todo lo concerniente a la interpretación y cumplimiento de este Contrato de Arrendamiento, las partes aquí señaladas expresan submitirse a la jurisdicción de la Corte Civil de la Ciudad de Tijuana, Baja California, expresamente renunciando a cualquier otra Jurisdicción la cual pudiera ser aplicable por razones de sus domicilios presentes o futuros o cualquier otro.

	
 
	
H.
	
Cuando por consentimiento de cualquiera de las partes, por escrito u otra manera, sea requerido como condición para la ejecución de cualquier acto por la otra parte, tal parte acuerda a no otorgar dicho consentimiento arbitrariamente.

	
 
	
I.
	
Cada parte debe ejecutar tales documentos como lo solicite la otra parte, pero sólo en el entendido de que el efecto de dichos documentos es el de dar validez legal a los derechos establecidos en este Contrato de Arrendamiento.

	
 
	
J.
	
El someter este documento a revisión o firma por la COMPAÑÍA no constituye reservación, o una opción de renta, y no será efectivo como Contrato de Arrendamiento hasta su ejecución y entrega por PITSA y la COMPAÑÍA.

	
 
	
K.
	
Este Contrato de Arrendamiento y cada una de sus Cláusulas y condiciones deberán ser requisitos necesarios y tendrá efecto a beneficio de las partes y sus respectivos sucesores o asignados, sujetos a las cláusulas aquí descritas. En cualquier momento dentro de ese Contrato de Arrendamiento se hace una referencia a PITSA, tal referencia deberá ser juzgada como referencia a la persona en que el interés de la arrendadora deberá investir. Cualquier sucesor o asignado de la COMPAÑÍA quien acepte un designio del beneficio de este Contrato de Arrendamiento y entre en posesión de la ocupación aquí descrita, por lo tanto deberá asumir y acordar realizar y ser sujeto de todas las condiciones y convenios aquí señalados.

	
 
	
L.
	
PITSA establece y acuerda con la COMPAÑÍA que, de ser requerido por la COMPAÑÍA, PITSA deberá construir cualquier mejora adicional en el edificio según sea requerido por la COMPAÑÍA en forma y lugar, con el propósito de que la COMPAÑÍA pueda proveer a PITSA con algún o todos los planos y especificaciones referentes a tales mejoras. En tal evento, ambas partes acuerdan en negociar de buena fe, el coste, tiempo y calendarización de finalización de obra, pertenencia de tales mejoras y otros términos y condiciones aquí descritas. PITSA tendrá diez (10) días hábiles después de haber recibido los planos y especificaciones, a fin de dar su aprobación o requerir modificaciones. La COMPAÑÍA debe realizar y entregar cualquier modificación señalada por PITSA para su aprobación final.

	
 
	
M.
	
Este Contrato y cada uno de sus cláusulas y anexos como formatos, son única y exclusivamente para el uso de PITSA con sus arrendatarios. Su contenido no podrá ser divulgado o utilizado para ningún otro propósito a otras partes.

	
 
	
N.
	
Todas las declaraciones mencionadas en el presente documento, deberán ser firmadas por todas las partes involucradas y deberán forzosamente estar adjuntas con el Contrato de Arrendamiento.

	
 
	
O.
	
Opción de Compra. La COMPAÑÍA tiene el derecho de opción de compra de las Premisas Arrendadas en una Subasta de Mercado, la cual será determinada por propia consideración realizada por cada una de las partes. La opción de compra otorgada en esta sección será ejercida por medio de una notificación a PITSA por la COMPAÑÍA, al menos 120 días antes del vencimiento del Plazo Inicial de Arrendamiento, como se define en el documento, en el entendido de que la falta de tiempo de la notificación escrita libera a PITSA de tal obligación, está claramente entendido que el período de 120 días se establece de tal manera que permite a la COMPAÑÍA ejercer tal derecho y formalizar la compra. Cualquier extensión establecida o términos y condiciones serán negociadas y acordadas por escrito por las partes.

	
 
	
P.
	
Este Contrato de Arrendamiento deberá ejercerse en ambos lenguajes: Ingles y Español. En el caso de cualquier inconsistencia entre tales versiones, la Versión en Ingles prevalecerá.

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
11
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

DANDO FE DE LO ESTIPULADO, las partes han ejercido este Contrato de Arrendamiento en la Ciudad de Tijuana, Estando de Baja California, México, siendo el 1ro. de junio de dos mil.

 

	
PROMOTORA INDUSTRIAL DE TIJUANA, S.A. DE C.V.
	
 
	
LEACH INTERNACIONAL MÉXICO, S.A. DE C.V.

	
 
	
 
	
 

	
(Firma Ilegible)
	
 
	
(Firma Ilegible)

	
Jaime Roberts Vildósola
	
 
	
Dennos Sherey

	
Representante Legal
	
 
	
Representante Legal

	
 
	
 
	
 

	
Testigos:

(sin firma)
	
 
	
(sin firma)

 

 

 

 

 

	
(Firma Ilegible al calce)

Sr. Jaime
	
(Firma Ilegible al calce)

Sr. Brostek
	
12
	
 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUCTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

ENMIENDA AL CONTRATO DE ARRENDEMIENTO

ACUERDO MODIFICATORIO al Contrato de Arrendamiento celebrado por y entre PROMOTORA INDUSTRIAL DE TIJUANA, S.A. de C.V., llamada en adelante como “PITSA”, representada por el Sr. Jaime Roberts Vildósola, y LEACH INTERNACIONAL DE MÉXICO, S. de R.L. de C.V., llamada en adelante como “COMPAÑÍA”, representada por su representante legal, el Sr. Grez Brostek, el cual esta formado de acuerdo con las siguientes declaraciones y cláusulas:

DECLARACIONES:

Ambas partes declaran:

	
 
	
I.
	
PITSA y la COMPAÑÍA han celebrado un Contrato de Arrendamiento con fecha 1ro. de junio, 2000, en donde PITSA le arrenda un edificio modular a la COMPAÑÍA, localizado en el Parque Industrial Bajamar EL Águila, con una área construida de aproximadamente 91,590.08 pies cuadrados, en adelante llamada como “Edificio Industrial PITSA”.

	
 
	
II.
	
PITSA y la COMPAÑÍA desean establecer un Acuerdo Modificatorio a fin de enmendar los términos y condiciones del Contrato de Arrendamiento, los cuales se establecen abajo, ya que la COMPAÑÍA desea extender el Plazo de Arrendamiento y agregar 2,406 pies cuadrados de mezanine a los 61,060.08 pies cuadrados utilizados en este momento por la COMPAÑÍA.

	
 
	
III.
	
En lo referido dentro del Contrato en la Cláusula IV, ellos acuerdan el término de renta por un período de (7) años; la COMPAÑÍA aquí señala que desea extender ese período por diez (10) años, iniciando el 1ro de abril, de 2005 y concluyendo el 31 de marzo, 2015.

	
 
	
IV.
	
PITSA requiere que se realice un depósito adicional equivalente a US$14,022.36 (catorce mil veintidós dólares americanos 36/100 US) mas I.V.A. por la extensión del Plazo de Arrendamiento en garantía para cumplir con las obligaciones asumidas en este documento por la COMPAÑÍA.

Ahora, por lo tanto, en consideración de las siguientes declaraciones y el contrato, convenios y condiciones contenidas en el mismo, las partes acuerdan como sigue:

CLÁUSULAS:

PRIMERA: PLAZO DE ARRENDAMIENTO. Bajo los términos y condiciones establecidos en el Contrato de Arrendamiento, el término sobre los 63,466.08 pies cuadrados (incluyendo el mezanine), será extendido a diez (10) años, obligando a las partes, a iniciar el 1ro de abril, 2005 y finalizando el 31 de marzo, 2015. Se entiende y acuerda que la COMPAÑÍA tiene la opción de extender el término aquí señalado después de su terminación, por dos (2) términos adicionales de cinco (5) años cada uno, siendo obligatoria para las partes.

SEGUNDO: RENTA.

	
A.
	
Arrendamiento. Como renta fija por el Arrendamiento del edificio de expansión durante el Plazo de Arrendamiento aquí descrito, la COMPAÑÍA debe pagar a PITSA la cantidad de US$26,655.75 (veintiséis mil seiscientos cincuenta y cinco dólares americanos 75/100 US) por mes mas I.V.A. (corresponde a US$0.42 centavos por pie cuadrado del área construida por mes mas I.V.A.) pagadera a PITSA en la dirección de PITSA, el primer día de cada mes.

	
 
	
Tal cuota deberá ser ajustada anualmente para reflejar el Índice de Precios del Consumidor del Condado de Orange-Riverside-Los Ángeles cada aniversario del plazo de arrendamiento. El ajuste de renta no será menor al 2% y no excederá el 4.5% por año.

	
 
	
Si dicha renta no es cubierta en diez (10) días después del primer día de cada mes, será moratoria y las cuotas de penalización se aplicarán a razón del 5% mensual, pagadera precisamente en moneda de los Estados Unidos de América.

 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUOTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

TERCERO: DEPÓSITO DE ANTICIPO. La COMPAÑÍA deberá realizar un depósito a PITSA, una vez ejercido el Contrato, la cantidad de US$14,022.36 (catorce mil veintidós dólares americanos 36/100US) mas I.V.A. como depósito en garantía para cumplir con las obligaciones asumidas en este documento por la COMPAÑÍA, incluyendo pero no limitado al pago de las rentas, las cuales serán reembolsadas a la COMPAÑÍA por PITSA una vez concluido el Contrato de Arrendamiento, toda vez que la COMPAÑÍA muestre evidencia de que todas las obligaciones han sido cumplidas; de otra manera, PITSA esta expresamente autorizada a utilizar tal depósito para cubrir los adeudos de cualquier título a PITSA.

CUARTO: GARANTÍA. Es claramente entendible que PITSA ha sido inducida en celebrar el Acuerdo Modificatorio con la COMPAÑÍA, debido a las garantías demostradas por la COMPAÑÍA. Consecuentemente, la COMPAÑÍA debe asegurar que la garantía bajo la forma del Anexo “A”, adjunto a este documento, se dio por Esterline Technologies una Corporación Americana (“AVAL”), para asegurar la adherencia por la COMPAÑÍA a todas las condiciones, convenios, obligaciones, incluyendo esas concernientes con la aplicación de mecanismos de restauración en el evento de que incurra la COMPAÑÍA en daños Ambientales y Contaminación de la Propiedad Arrendada, así como responsabilidades y acuerdos establecidos en este Contrato de Arrendamiento con fecha 1ro. De junio de 2000.

QUINTO: las partes acuerdan que este Acuerdo Modificatorio debe sólo modificar las declaraciones mencionadas anteriormente, todas las demás cláusulas y declaraciones deberán permanecer vigentes y sin cambios. El Contrato de Arrendamiento Anteriormente celebrado por las parte el 1ro de junio, 2000 deberá gobernar por sobre cualquier tenia relacionado a este Contrato de Arrendamiento, el cual no esta específicamente domiciliado.

DANDO FE DE LO ESTIPULADO en ese documento se firma por duplicado en la Ciudad de Tijuana Baja California, el 23 de marzo del año dos mil cinco.

 

	
PROMOTORA INDUSTRIAL DE

TIJUANA, S.A. DE C.V.
	
 
	
LEACH INTERNACIONAL MÉXICO,

S.A. DE C.V.

	
 
	
 
	
 

	
(firma Ilegible)

Jaime Roberts Vildósola

Representante Legal
	
 
	
(firma Ilegible)

Grez Brostek

Representante Legal

	
 
	
 
	
 

	
Testigos:

(firma Ilegible)
	
 
	
(firma Ilegible)

	
 
	
 
	
 

	
 
	
 
	
 

	
López Palomino Araiza
	
 
	
Christian Zak

 

 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUOTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

ANEXO “A”

GARANTÍA

El abajo firmante Esterline Technologies una Corporación Americana, (de ahora en adelante llamada‘‘AVAL”), en consideración de las Premisas de arrendamiento descritas en el Contrato de Arrendamiento (llamado en adelante como “Contrato de Arrendamiento”) el cual tiene Fecha de Inicio del 1ro de abril. 2005, entre PROMOTORA INDUSTRIAL DE TIJUANA S.A. de C.V.., una corporación Mexicana, con dirección en el km, 10.5 Carretera a San Luís R.C., Mexicali, B.C., México, como dueño de la propiedad (en adelante llamado “Arrendador”), y LEACH INTERNACIONAL DE MÉXICO, S. de R.L. de C.Y., una corporación Mexicana, como inquilino (en adelante llamado “Arrendatario”), aquí convienen y acuerdan con lo siguiente:

	
 
	
A)
	
El abajo firmante establece incondicionalmente garantizar por completo, de buena fe el pago oportuno y desempeño del Arrendatario, de todos los pagos, convenios y otras obligaciones del Arrendatario bajo la obligación del Contrato de Arrendamiento. Si el Arrendatario falta en tiempo y forma en el pago de cualquier renta, o cualquier otra suma, costos o cargos, incluyendo esos concernientes con la aplicación de los mecanismos de restauración en el evento de un daño ambiental y contaminación de la Propiedad Arrendada, o en el desarrollo de cualquiera de los otros convenios y obligaciones del Arrendatario bajo el cumplimiento del Contrató de Arrendamiento y falta a remediar tales omisiones dentro del tiempo provisto en el Contrato de Arrendamiento, entonces el Aval, a su propio coste, debe bajo demanda del Arrendador, completa y rápidamente, así como en tiempo y forma, pagar todas las rentas, sumas, costes y cargos que debieran ser pagados por el Arrendatario al cumplimiento del Contrato de Arrendamiento, así como las obligaciones a ser desarrolladas por el Arrendatario bajo el cumplimiento del Contrato de Arrendamiento; en adición, bajo demanda del Arrendador pagar al Arrendador cualquier y todas las sumas que se adeuden durante el cumplimiento del Contrato de Arrendamiento incluyendo todos los intereses y cargos tardíos sobre deudas y obligaciones antiguas del Arrendatario, los costos razonables del Arrendador, así como todos los daños y gastos razonables (incluyendo los honorarios de los abogados y costos de litigación), que pudieran surgir como consecuencia de las Faltas del Arrendatario.

	
 
	
B)
	
Las obligaciones del Aval aquí descritas son independientes de las obligaciones del Arrendatario. Una acción o acciones separadas pueden, en la opinión del Arrendador, ser fincadas contra el Aval, ya sea que la acción o no, sea la primera o subsiguiente fincada en contra del Arrendatario, o bien si el Arrendatario se involucra o no a dicha acción y el Aval puede involucrarse en cualquier acción o procedimiento iniciado por el Arrendador en contra del Arrendatario por consecuencias de, en conexión con o basándose en el Contrato de Arrendamiento. El Aval renuncia a cualquier derecho de requerir al Arrendador a proceder en contra del Arrendatario u obligar a tomar cualquier otra atribución de algún poder del Arrendador, cualquier derecho a demandar por retraso en el desempeño del Arrendador y/o antes de la acción por el Arrendador de cualquier naturaleza en contra del Arrendatario o viceversa. El Aval expresamente renuncia a todas las defensas las cuales pudieran constituir un cargo equilibrando una obligación o sanción y reconoce que tiene conocimiento de que sus obligaciones bajo estas garantías no están sujetas a ninguna reducción, limitación, disminución, liberación o terminación por ninguna razón (otra que la de el pago inherente y desempeño completo de todos los adeudos de rentas y oíros pagos por el Arrendatario bajo este Contrato de Arrendamiento)

	
 
	
C)
	
Esta garantía deberá de permanecer y continuar vigente y con todo efecto y no deberá disminuir en parte o por completo (ya sea antes o después de su ejecución) sobre cualquier alteración, renovación, extensión, modificación, enmienda o asignación de o subarrendamiento a, del Contrato de Arrendamiento. El abajo firmante renuncia a cualquiera de los avisos siguientes y acuerda que la responsabilidad del abajo firmante debe basarse en las obligaciones del Arrendatario derivadas del Contrato de Arrendamiento de manera en que el mismo pueda ser alterado, renovado, extendido, modificado, enmendado o asignado. Para el propósito de esta garantía y las obligaciones y responsabilidades de los abajo firmantes, el ‘‘Arrendatario” esta obligado a incluir cualquier o todas las asignaciones, subarrendamientos, permisos u otros directa o indirectamente operando o conduciendo un negocio en o de las Premisas, tan ampliamente como si cualquiera de las mismas fueran llamadas Arrendatarios bajo el Contrato de Arrendamiento.

	
 
	
D)
	
Las obligaciones del abajo firmante deben de permanecer en pleno ejercicio a pesar de que el Arrendador pudiera renunciar a una o mas Faltas por el Arrendatario, extender el tiempo de desarrollo por el Arrendatario o liberar, regresar o no aplicar otro colateral en cualquier momento como seguridad para las obligaciones del Arrendatario.

	
 
	
E)
	
Esta garantía debe permanecer en pleno ejercicio y efecto a pesar de la institución de o en Contra del Arrendatario, como banca rota, reorganización, reajuste, recibimiento o procedimientos de insolvencia de cualquier naturaleza, o la renuncia del Contrato de Arrendamiento en tales procedimientos o viceversa.

	
 
	
F)
	
Los términos neutros deben además referirse, donde sea aplicable, al género femenino y al masculino; y la referencia singular debe también incluir el plural de cualquier palabra si el contexto lo requiere.

	
 
	
G)
	
Esta garantía debe aplicar a, obligar a y forzar a el beneficio de poseedor, ejecutor, administrador, representantes, sucesores y asignados del Arrendador y el abajo firmante. El Arrendador puede, sin previo aviso, asignar esta garantía toda o en parte, en adición con las asignaciones del Arrendador sobre sus intereses bajo el Acuerdo de Arrendamiento.

 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUOTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

	
 
	
H)
	
En el caso de que el Arrendador pudiera instituir cualquier demanda en contra del abajo firmante por violación de una obligación de cualquiera de los celebrantes o condiciones de esta garantía, o forzar cualquier derecho del Arrendador aquí descrito, o ya sea el abajo firmante instituye cualquier demanda en contra del Arrendador que surja de o en conexión con esta garantía, o cualquiera de las partes instituye una demanda en contra de la otra por declaración de derechos descritos en este documento, o cualquier parte interviene en cualquier demanda en la cual la otra es una parte que se protege o refuerza su interés o derechos establecidos, la parte prevaleciente en cualquiera de las demandas mencionadas deberá cubrir las cuotas de los abogados en cantidades razonables, las cuales serán determinadas por la corte y gravada con impuestos como parte de los costes descritos en este documento.

	
 
	
I)
	
El ejercicio de esta garantía antes de la ejecución del Contrato de Arrendamiento no debe invalidar esta garantía o aminorar las obligaciones del Aval aquí descritas.

	
 
	
J)
	
Esta garantía esta hecha de acuerdo a, y debe ser interpretada y aplicada de acuerdo con las Leyes del Estado de California.

DANDO FE DE LO ESTIPULADO, los abajo firmantes lo firman y autorizan esta garantía el 24 de marzo de 2005.

 

	
	
Aval

	
 

	
(firma Ilegible)

	
Sr. Robert George

	
Esterline Technologies

	
 

	
Testigo

	
(firma Ilegible)

Estado de Washington

Condado de King

El presente instrumento fue traído ante mí el 24 de marzo de 2005, por el Sr Robert D. George quien personalmente me conoce.

 

	
 
	
(firma Ilegible)

	
 
	
Firma del Notario

	
 
	
 

	
 
	
D. H. Rynhound

	
 
	
Notario Público, Estado de Washington

	
 
	
Mi Comisión Expira el 21 de noviembre de 2008.

 

 

TRADUCIDO POR: OZMIN ZARATE HILTY, PERITO TRADUOTOR DE LA JUDICATURA GENERAL DEL ESTADO DE BAJA CALIFORNIA

24 de junio de 2005

 

EXHIBIT A

GUARANTY

The Undersigned Esterline Technologies an American corporation, (hereinafter referred to as “Guarantor”), in consideration of the leasing of the Premises described in that certain Lease (hereinafter referred to as “Lease”) which Commencement Date is on April 1st, 2005, between Promotora Industrial de Tijuana S.A. de C.V., a Mexican Corporation, whose address is Km, 10.5 Carretera a San Luis R.C. Mexicali, B.C. México, as Landlord (hereinafter referred to as “Landlord”), and Leach International de México S. de R.L. de C.V., a Mexican Corporation, as tenant (hereinafter referred to as “Tenant”), does hereby convenant and agree as follows.

	
 
	
A)
	
The Undersigned does hereby unconditionally guarantee the full, faithful and timely payment and performance by Tenant of all of the payments, covenants and other obligations of Tenant under the pursuant of the Lease. If Tenant shall fail at any time in the payment of any rent, ot any other sums, costs, or changes, including those concerning with the application of the mechanisms of restoration in the event of an environmental damage and contamination of the leased property whatsoever or in the performance of any of the other convenants and obligations of Tenant under or pursuant to the Lease and fail to cure such default within the time provided in the Lease, then the Guarantor, at its expense, shall on demand of Landlord fully and promptly, and well and truly, pay all rent, sums, costs and charges to be paid by Tenant under or pursuant to the Lease as obligations to be performed by Tenant under or pursuant to the Lease and, in addition, shall on Landlord’s demand pay to Landlord any and all sums due to Landlord pursuant to the lease including all interest and late charges on past charges and past due obligations of Tenant reasonable costs advanced by Landlord, and all damages and reasonable expenses (including attorney fees and litigation costs), that may arise in consequence of Tenant’s default.

	
 
	
B)
	
The obligations of the Guarantor hereunder are independent of, the obligations of Tenant. A separate action or actlons may, at Landlord’s option, be brought and prosecuted against the Guarantor, whether or not any action is first or subsequently brought against Tenant, or whether or not Tenant is joined in any such action, and Guarantor may be joined in any action or proceeding commenced by Landlord against Tenant arising out of, in connection with or based upon the Lease. The Guarantor waives any right to require Landlord to proceed against Tenant or pursue any other remedy in Landlord’s power whatsoever, any right to complain of delay in the enforcement of Landlord and/or prior action by Landlord of any nature whatsoever against Tenant, or otherwise. Guarantor hereby expressly waives all defenses which might constitute a legal or equitable discharge of a surety or obligor, and acknowledges that its obligations under this guaranty are not subject to any reduction, limitation, impairment discharge or termination for any reason (other than indefeasible payment and performance in full of all rents and other payments due and payable by the Lessee under the Lease).

	
 
	
C)
	
This Guaranty shall remain and continue in full force and effect and shall not be discharged in whole or in part norwithstanding (whether prior or subsequent to the execution hereof) any alteration, renewal, extension, modification, amendment ar assignment of or subletting permitted under, the Lease, The undersigned hereby waives notices of any of the foregoing, and agrees that the liability of the undersigned hereunder shall be based upon the obligations, of Tenant set forth in the Lease as the same may be altered, renewed, extended, modified, amended or assigned for the purpose of this Guaranty and the obligations and liabilities of the undersigned hereunder, “Tenant” shall be deemed to include any and all assignees, subtenants, permittees or others directly or indirectly operating or conducting a business in or from the Premises, as fully as if any of the same were the named Tenant under the Lease.

	
 
	
D)
	
The undersigned’s obligations hereunder shall remain fully binding although Landlord may have waived one or more defaults by Tenant, extended the time of performance by Tenant or released. returned or misapplied other collateral at any time given as security for Tenant’s obligations.

	
 
	
E)
	
This Guaranty shall remain in full force and effect notwithstanding the institution by or against Tenant of bankruptey, reorganizaiton, readjustment, receivership, or insolveney proceedings of any nature, or the disaffirmance of the Lease in any such proceedings or otherwise.

	
 
	
F)
	
Neuter teams should also refer, where applicable, to the ferninine gender and the masculine gender; and the singular reference shall also include the plural of any word if the context so requires.

	
 
	
G)
	
This Guaranty shall be applicable to, binding upon and inure to the benefit of the heirs, executors, administrators, representatives, succcssors and assigns of Landlord and the undersigned. Landlord may, without notice, assign this Guaranty in whole or in part in connection with Landlord’s assignment of its interest under the Lease.

 

 

	
 
	
H)
	
In the event that Landlord should institute any suit against the undersigned for violation of or to enforce any the convenants or conditions of this Guaranty or to enforce any right of Landlord hereunder, or should the undersigned institute any suit against Landlord arising out of or in connection with this Guaranty, or should either party institute a suit against the other for a declaration of rights hereunder, or should either party intervene in any suit in which the other is a party to enforce or protect its interest or rights hereunder, the prevailing party in any such suit shall be entitled to the fees of its attorney (s) in the reasonable amount thereof, to be determined by the court and taxed as a part of the costs therein.

	
 
	
I)
	
The execution of this Guaranty prior to execution of the Lease shall not invalidate this Guaranty or lessen the obligations of Guarantor (s) hereunder.

	
 
	
J)
	
This Guaranty is made pursuant to, and shall be interpreted and applied in accordance with, the Laws of the State of California.

IN THE WITNESS WHEREOF, the undersigned hereby signs and authorizes this Guaranty this 24th day of March 2005.

 

	
Guarantor

	
 

	
/s/ Mr. Robert George

	
Mr. Robert George

	
Esterline Technologies

 

	
	
WITNESSES

	
 

	
/s/ D. H. Rynhoud

 

State of Washington

County of King

The foregoing instrument was acknowledged before me on this 24th day of  March 2005, by Robert D. George who is personally known to me.

 

	
/s/ D. H. Rynhoud

	
Signature of Notary

	
 

	
D. H. Rynhoud

	
Notary Public, State of Washington

My Commission Expires Novemher 21, 2008.

 

 

 

 

 

TERCER ADDENDUM al Contrato de Arrendamiento que celebran por una parte INMOBILIARIA PROMOTORA, S.A. DE C.V., de aqui en adelante descrito como el “ARRENDADOR”, representado por el Sr. Eduardo Mendoza Larios, y LEACH INTERNATIONAL DE MEXICO, S. DE R.L. DE C.V., de aqui en adelante referido como el “ARRENDATARIO”, representado por su representante legal, Sr Jesus Aristeo Gonzalez Dominguez, y con el conocimiento de Esterline Technologies Corporation de aqul en adelante referido como “GARANTE”, representado por su representante legal John H. Danley, en términos de las siguientes declaraciones y cláusulas:

DECLARACIONES:

Declaran ambas partes a través de sus representantes:

I.- Que Promotora Industrial de Tijuana, S.A de C.V. y el ARRENDATARIO celebraron un Contrato de Arrendamiento (en lo sucesivo referido como el Contrato de Arrendamiento) fechado el 1ero. de Junio de 2000 en el cual Promotora Industrial de Tijuana, S.A. de C.V. arrendó una propiedad al ARRENDATARIO, localizada en el Parque Industrial Bajamaq “EI Aguila”, en la Ciudad de Tijuana, Baja California, con una superficie arrendada de 61,060.08 pies cuadrados, y del edificio ubicado en la misma y las mejoras.

II.- Que el 23 de Marzo de 2005, Promotora Industrial de Tijuana. S.A. de C.V. y el ARRENDATARIO, celebraron un Primer Addendum o Convenio Modificatorio al Contrato de Arrendamiento, con el fin de modificar la superficie arrendada a 63,466.08 pies cuadrados y renovar por diez (10) años obligatorios comenzando el 1ero. de Abril del 2005 y concluyendo el 31 de Marzo del 2015.

III.- Que con fecha 30 de junio de 2012, Promotora Industrial de Tijuana, S.A de C.V. e Inmobiliaria Promotora, S.A. de C.V., celebraron un Convenio de Transmisión de Derecho Real de Usufructo, por medio del cual el primero transmitió el derecho real de usufructo respecto del predio donde se ubica la propiedad arrendada en la Ciudad de Tijuana, Baja California, así como de las construcciones en el existentes, a favor de Inmobiliaria Promotora, S.A. de C.V., con lo que los darechos derivados del Contrato de Arrendamiento y del Primer Addendum o

THIRD ADDENDUM to the Lease Agreement entered into by and between INMOBILIARIA PROMOTORA, S.A. DE C.V., hereinafter referred to as “LESSOR”, represented by Mr. Eduardo Mendoza Larios, and LEACH INTERNATIONAL DE MEXICO, S. DE R.L. DE C.V., hereinafter referred to as “LESSEE” represented by its legal representative, Mr. Jesus Aristeo Gonzalez Dominguez, with the presence and consent of Esterline Technologies Corporation hereinafter referred to as the “GUARANTOR”, represented by its legal representative John H. Danley, pursuant to the following RECITALS and CLAUSES:

RECITALS:

Both parties declare by means of their legal representatives, that:

I. That Promotora Industrial de Tijuana, S.A. de C.V. and LESSEE entered into a Lease Agreement (hereinafter referred to as the “Lease Agreement”) dated on June 1st, 2000, in which Promotora Industrial de Tijuana, S.A. de C.V. leased a property to LESSEE, located in Parque Industrial Bajamaq “El Aguila” in the city of Tijuana, Baja California, with a total leased area of 61,060.08 square feet, and the building located thereon and improvements.

II. That on March 23rd, 2005, Promotora Industrial de Tijuana, S.A. de C.V. and LESSEE entered into a First Addendum to the Lease Agreement, in order to modify the leased surface to 63,466.08 square and extend the lease term for ten (10) years commencing on April 1st 2005 and ending on March 31st  2015.

III. That on June 30th 2012, Promotora Industrial de Tijuana, S.A. de C.V. and Inmobiliaria Promotora, S.A. de C.V., entered into a Usufruct Agreement by which the first transmitted the Rights of Usufruct in respect of the land where the leased property is located on, in the City of Tijuana, Baja California, as well as the constructions therein contained, in favor of Inmobiliaria Promotora, SA de CV, and also the rights arising under the Lease Agreement and the first Addendum. 

 

 

Convenio Modificatorio

IV.-Que con fecha 13 de Mayo, el ARRENDADOR y el ARRENDATARIO, celebraron un Segundo Addendum al Contrato de Arrendamiento para agregarlo como parte integral del Contrato de Arrendamiento, con el fin de renovar el término del contrato, por un periodo adicional obligatorio para las partes de dos (2) meses comenzando el 1ero. de Abril de 2015 y concluyendo el 31 de Mayo de 2015.

V.- Que es su voluntad celebrar este Tercer Addendum, considerando los términos y condiciones que se mencionan a continuación, de acuerdo a la voluntad del ARRENDATARIO de renovar el término del contrato, por un periodo adicional obligatorio para las partes da diez (10) años por lo que el nuevo término iniciará el 1ero. de junio de 2015 y concluirá el 31 de Mayo de 2025 y a actualizar el precio de la renta.

VI.- Que los poderes de representación bajo los cuales ellos representan el ARRENDADOR y al ARRENDATARIO se encuentran todavía vigentes, y que los mismos no han sido revocados o limitados de ninguna manera, y consecuentemente los mismos se reconocen mutuamente su capacidad para todos los efectos legales.

En términos de lo anterior, las partes acuerdan como sigue:

C L Á U S U L A S:

PRIMERA: El ARRENDADOR y el ARRENDATARIO acuerdan extender el Término del Arrendamiento por uno nuevo término adicional de diez (10) años forzosos para las partes; por lo tanto el nuevo término iniciará el 1ro. de Junio del 2015 y finalizando el 31 de Mayo del 2025.

SEGUNDA: A partir del 1ero. de Junio del 2015 el ARRENDATARIO pagará al ARRENDADOR por concepto de renta de la Propiedad Arrendada, con superficie utilizable de 63,466.08 pies cuadrados, la cantidad mensual de $26,973.08 Dólares (Veintiséis mil novecientos setenta y tres,

 

IV. That on May 13th, LESSOR and LESSEE entered into a Second Addendum to the Lease Agreement to add it as an integral part of the Lease Agreement, to extend the Lease Term, for an additional two (2) month term, obligatory to the parties, commencing on April 1st 2015 and ending on May 31st 2015.

V. That it’s their intention to execute this Third addendum, considering the terms and conditions listed below, according to the will of the LESSEE to extend the lease term for an additional term of ten (10) years, obligatory to the parties, hence the new term starts on the June 1st. 2015 and ends on May 31st 2025, and to update the price of the rent.

VI. That the powers of attorney under which LESSOR and LESSEE are represented are still in force, and that they have not been revoked or limited in any way, and consequently, they mutually acknowledge their faculties for all legal purposes.

Pursuant to the above the parties agree as follows:

C L A U S E S:

FIRST: LESSOR and the LESSEE agree to extend the term of the lease for a new additional term of ten (10) years, obligatory for the parties; hence the new term starts on the June 1st, 2015 and ending on May 31st, 2025.

SECOND: As of 1. June 2015, the LESSEE shall pay to LESSOR as rent of the Leased Property, with an usable area of 63,488.08 square feet, the monthly amount of $26,973.08 Dollars (Twenty six thousand nine hundred seventy three Dollars 08/100, legal currency in United States of America), at a rate of 0.425 USD (zero

 

 

 

dólares 08/100, Moneda de Curso Legal en los Estados Unidos de América), a razón de 0.425 Dólares (cero punto cuatro, dos, cinco, Dólares, Moneda de Curso Legal en los Estados Unidos de América) por pie cuadrado de superficie arrendada al mes; más el Impuesto al Valor Agregado que corresponda. Los cuales deberán ser pagados por adelantado al ARRENDADOR en el domicilio de este último, el primer día de cada mes.

Dicha renta será ajustada anualmente para reflejar el Indice de Precios al Consumidor para el área de Los Ángeles-Riverside-Orange County, con una tasa que no será menor al dos por ciento (2%) ni excederá el cuatro punto cinco por ciento (4.5) % anual, como se acordó en el Contrato de Arrendamiento y su Primer Addendum o Convenio Modificatorio.

Si dicha renta no se pagare dentro de los primeros diez (10) dias de cualquiera de los meses, se considerará en mora y se cargará un interés moratorio a razón del 5% mensual, pagaderos en moneda de los Estados Unidos de América.

TERCERA: En caso de que el ARRENDATARIO requiera que el ARRENDADOR lleve a cabo cualesquier construcción o mejoras, estas serán negociadas caso por caso y sujetas a un Contrato de Construcción adicional.

El ARRENDADOR será el único autorizado para construir cualesquier mejora, que amplíe la superficie rentable dentro de la Propiedad Arrendada, es decir, aquellas que aumenten la superficie utilizable dentro de la Propiedad Arrendada, cualquiera que sea su naturaleza, incluyendo pero no limitado a mezzanine, cafetería, ampliación de oficinas, almacenes, laboratorios, cuartos de máquinas, planta de producción y espacio de estacionamiento, que se consideraran por las partes como superficie rentable, y por consiguiente como parte de la Propiedad Arrendada bajo este Contrato, por lo cual el valor de renta de la misma será negociado oportunamente por el ARRENDADOR y el ARRENDATARIO, considerando la superficie, su naturaleza, materiales de construcción y acabados de la misma según su destino. En cualquier caso, las anteriores precisiones y cualesquier otras necesarias constaran por escrito y serán firmadas por

 

point four, two, five, Dollars, legal currency of the United States of America) per square foot of leased area per month; plus the applicable Value Added Tax. Same that shall be paid in advance to LESSOR at the address of the latter, the first day of each month.

Such rent will be adjusted annually to reflect the Los Angeles-Riverside-Orange County Consumer price index, with a rate that will not be of less than two percent (2%) nor will exceed four point five percent (4.5%) annually, as agreed in the Lease and First Addendum.

If such rent is not paid within the first ten (10) days of any given month, it shall become delinquent will be considered arrears and will be charged a penalty interest at the rate of 5% per month, payable in money of the United States of America

THIRD: If LESSEE requires the LESSOR to perform any construction or improvements, these will be negotiated on a case by case basis and subject to a separate Construction Agreement.

LESSOR will be the only authorized to build any improvement that extend the usable area within the Leased Property, meaning those ones that increase the usable area within the Leased property, whatever nature it has, including but not limited to mezzanine, cafeteria, extensions of offices, warehouses, laboratories, mechanical rooms, production facility and parking space, which will be considered by the parties as a rental area, and therefore as part of the Leased Property under this Agreement, whereby the value of the rent will be be timely negotiated by the LESSOR and the LESSEE, considering the surface, its nature, building materials and finishes according to their destination. In any event, all such precisions and others necessary shall be agreed on writing and executed by the parties.

 

 

las partes.

CUARTA: El GARANTE en este acto, reconoce y declara que su Garantía descrita y referida tanto en el Contrato de Arrendamiento, como en su Primer y Segundo Addendum o Convenio Modificatorio, se mantiene vigente y efectiva, y es aplicable y extensiva al Contrato de Arrendamiento como se modificó y extendió, por este Tercer Addendum.

 

QUINTA: Todos los otros términos y condiciones del Contrato de Arrendamiento, garantía y sus convenios modificatorios y todas las demás estipulaciones contenidas ahí, se mantendrán y continuarán vigentes y válidos como se describen en dichos documentos. De conformidad con lo anterior, las partes aquí acuerdan que este Tercer Addendum deberá modificar únicamente las provisiones aquí descritas; todas las demás provisiones deberán mantenerse vigentes y sin cambios. por lo que en este instrumento no existe novación. El Contrato de Arrendamiento previamente ejecutado por las partes, así como su Primer Y Segundo Addendum o Convenio Modificatorio deberá regular cualquier cuestión relativa al Arrendamiento, que no se encuentren específicamente señaladas en el presente, incluyendo las propiedades arrendadas originales y adicionales arriba descritas.

SEXTA: Este documento forma parte del Contrato de Arrendamiento y a su Primer y Segundo Addendum o Convenio Modificatorio, y forma parte de los mismos como un solo documento; conteniendo estos las condiciones y promesas realizados entre las partes, y no deberán ser modificados verbalmente o de ninguna otra manera más que en un contrato por escrito firmado por los representantes autorizados de las partes.

SEPTIMA: Las partes aquí acuerdan que todo lo relativo a la interpretación y cumplimiento de este Contrato y del Contrato de Arrendamiento, se someten expresamente a la ley y a la jurisdicción de los Juzgados Civiles de la Ciudad de Tijuana, Baja California, renunciando expresamente cualquier otra jurisdicción que pudiera ser aplicable por razón del domicilio presente o futuro o cualquier otro.

FOURTH. The GUARANTOR hereby acknowledges and states that its warranty described and referred in the Lease Agreement and in its First and Second Addendum, is still valid and effective, and applies and extends the Lease as amended and extended, by this Third Addendum

 

FIFTH. All other terms and conditions of the Lease Agreement, warranty, its Addendums and all other provisions contained therein shall remain and continue in force and valid as described in such documents. In accordance with the foregoing, the Parties agree that this Third Addendum shall only modify the provisions described herein; all other provisions shall remain in force and unchanged, so there is no novation in this Instrument. The Lease Agreement previously executed by the Parties, as well as its First and Second Addendum or Addendum, shall regulate any matters relating to the Lease Agreement, which are not specifically mentioned herein, including the original and additional leased properties.

SIXTH: This document forms a part of the Lease Agreement and its First and Second Addendum or Addendum as one whole document; these containing the conditions and promises made between the parties, and may not be modified orally or in any manner other than by a written agreement signed by the authorized representatives of the parties.

SEVENTH: The Parties agree that for all matters relating to the interpretation and enforcement of this Amendment and the Lease Agreement, they are expressly subjected to the law and the jurisdiction of the Civil Courts of the City of Tijuana, Baja California, expressly waiving any other jurisdiction that could be applicable by reason of present or future address or otherwise.

 

 

 

EN PRESENCIA DE LOS TESTIGOS, este documento es firmado por duplicado en la Ciudad de Tijuana, Baja California, en este día 08 de Octubre del año dos mil catorce.

 

	
	
EL ARRENDADOR:

	
 

	
INMOBILIARIA PROMOTORA, S.A. DE C.V.

	
 

	
/s/ C.P. Eduardo Mendoza Larios

	
C.P. Eduardo Mendoza Larios

	
Representante Legal

 

		
	
EL ARRENDATARIO:

	
 

	
LEACH INTERNATIONAL DE MEXICO, S.

	
DE R.L. DE C.V.

	
 

	
/s/ Sr. Jesus Aristeo Gonzalez Dominguez

	
Sr. Jesus Aristeo Gonzalez Dominguez

	
Representante Legal

	
 

	
EI Garante tiene conocimiento y acepta los términos fijados en este Addendum tal como se describe en la Cláusula Cuarta

	
 

	
GARANTE:

	
Esterline Technologies Corporation

	
 

	
/s/ Por. John H. Danley

	
Por. John H. Danley

	
 

	
Fecha:
	
3-12-2015

	
 
	
 

 

	
	
TESTIGOS:

	
 

	
/s/ Sr. Carlos Uribe

	
Sr. Carlos Uribe

	
INMOBILIARIA PROMOTORA, S.A. DE C.V.

	
 

	
 

	
 

	
Sr.

 

IN WITNESS WHEREOF this document is signed in duplicate in this City of Tijuana, Baja California, on this 8th day of October of the year two thousand and fourteen.

 

	
	
LESSOR

	
 

	
INMOBILIARIA PROMOTORA, S.A. DE C.V.

	
 

	
/s/ C.P. Eduardo Mendoza Larios

	
C.P. Eduardo Mendoza Larios

	
Legal Representative

 

		
	
LESSEE

	
 

	
LEACH INTERNATIONAL DE MEXICO, S.

	
DE R.L. DE C.V.

	
 

	
/s/ Mr. Jesus Aristeo Gonzalez Dominguez

	
Mr. Jesus Aristeo Gonzalez Dominguez

	
Legal Representative

	
 

	
The Guarantor acknowledges and accepts the terms set out in this Addendum as described in the Fourth Clause.

	
 

	
GUARANTOR:

	
Esterline Technologies Corporation

	
 

	
/s/ John H. Danley

	
By: John H. Danley

	
 

	
Date:
	
3-12-2015

	
 
	
 

 

	
	
WITNESSES:

	
 

	
/s/ Mr. Carlos Uribe

	
Mr. Carlos Uribe

	
INMOBILIARIA PROMOTORA, S.A. DE C.V.

	
 

	
 

	
 

	
Mr.Exhibit

Exhibit 4.6

SMARTFINANCIAL, INC.
and
               [-], as Trustee
SENIOR INDENTURE
Dated as of  [-], 201[-]
Providing for the Issuance of Senior Debt Securities

CROSS-REFERENCE TABLE	
			
	 
	 
	 

	Trust Indenture
Act Section
	 
	Indenture Section

	310(a)(1)
	 
	6.09

	 (a)(2)
	 
	6.09

	 (a)(3)
	 
	N.A.

	 (a)(4)
	 
	N.A.

	 (a)(5)
	 
	6.08

	 (b)
	 
	6.08

	 (c)
	 
	N.A.

	311(a)
	 
	6.13

	 (b)
	 
	6.13

	 (c)
	 
	N.A.

	312(a)
	 
	7.01

	 (b)
	 
	7.02

	 (c)
	 
	7.02

	313(a)
	 
	7.03

	 (b)(2)
	 
	7.03

	 (c)
	 
	7.03

	 (d)
	 
	7.03

	314(a)
	 
	7.04; 1.02

	 (c)(1)
	 
	1.02

	 (c)(2)
	 
	1.02

	 (c)(3)
	 
	N.A.

	 (e)
	 
	1.02

	 (f)
	 
	N.A.

	315(a)
	 
	6.01

	 (b)
	 
	6.02; 1.06

	 (c)
	 
	6.01

	 (d)
	 
	6.01

	 (e)
	 
	5.14

	316(a)(last sentence)
	 
	1.01

	 (a)(1)(A)
	 
	5.12

	 (a)(1)(B)
	 
	5.02

	 (a)(2)
	 
	N.A.

	 (b)
	 
	5.08

	 (c)
	 
	3.07

	317(a)(1)
	 
	5.03

	 (a)(2)
	 
	5.04

	 (b)
	 
	4.06

	318(a)
	 
	1.07

	 (b)
	 
	N.A.

	 (c)
	 
	1.07

N.A means not applicable.
 

2

TABLE OF CONTENTS
 
Article I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION    1
		
	Section 1.01 Definitions
	1

		
	Section 1.02 Officers’ Certificates and Opinions
	6

		
	Section 1.03 Form of Documents Delivered to Trustee
	6

		
	Section 1.04 Acts of Securityholders.
	6

		
	Section 1.05 Notices, etc., to Trustee and Company
	7

		
	Section 1.06 Notice To Securityholders; Waiver
	7

		
	Section 1.07 Conflict with Trust Indenture Act
	8

		
	Section 1.08 Effect of Headings and Table of Contents
	8

		
	Section 1.09 Successors and Assigns
	8

		
	Section 1.10 Separability Clause
	8

		
	Section 1.11 Benefits Of Indenture
	8

		
	Section 1.12 Governing Law
	8

		
	Section 1.13 Counterparts
	8

		
	Section 1.14 Judgment Currency
	8

		
	Section 1.15 Legal Holidays
	8

Article II SECURITY FORMS    9
		
	Section 2.01 Forms Generally
	9

		
	Section 2.02 Forms of Securities
	9

		
	Section 2.03 Securities in Global Form
	9

		
	Section 2.04 Form of Trustee’s Certificate of Authentication
	9

Article III THE SECURITIES    9
		
	Section 3.01 General Title; General Limitations; Issuable in Series; Terms of Particular Series.
	9

		
	Section 3.02 Denominations and Currency
	12

		
	Section 3.03 Execution, Authentication and Delivery, and Dating
	12

		
	Section 3.04 Temporary Securities
	13

		
	Section 3.05 Registration, Transfer and Exchange
	14

		
	Section 3.06 Mutilated, Destroyed, Lost and Stolen Securities
	15

		
	Section 3.07 Payment of Interest; Interest Rights Preserved
	16

		
	Section 3.08 Persons Deemed Owners
	17

		
	Section 3.09 Cancellation
	17

		
	Section 3.10 Computation of Interest
	17

Article IV SATISFACTION AND DISCHARGE    17
		
	Section 4.01 Satisfaction and Discharge of Indenture
	17

		
	Section 4.02 Discharge and Defeasance
	18

		
	Section 4.03 Covenant Defeasance
	19

		
	Section 4.04 Conditions To Defeasance Or Covenant Defeasance
	19

		
	Section 4.05 Application of Trust Money; Excess Funds
	20

		
	Section 4.06 Paying Agent to Repay Moneys Held
	20

		
	Section 4.07 Return of Unclaimed Amounts
	21

Article V REMEDIES    21
		
	Section 5.01 Events of Default
	21

		
	Section 5.02 Acceleration of Maturity; Rescission, and Annulment
	22

		
	Section 5.03 Collection of Indebtedness and Suits for Enforcement by Trustee
	22

		
	Section 5.04 Trustee May File Proofs of Claim
	23

		
	Section 5.05 Trustee May Enforce Claims Without Possession of Securities
	23

3

		
	Section 5.06 Application of Money Collected
	24

		
	Section 5.07 Limitation on Suits
	24

		
	Section 5.08 Unconditional Right of Securityholders to Receive Principal, Premium, and Interest
	24

		
	Section 5.09 Restoration of Rights and Remedies
	24

		
	Section 5.10 Rights and Remedies Cumulative
	25

		
	Section 5.11 Delay or Omission Not Waiver
	25

		
	Section 5.12 Control by Securityholders
	25

		
	Section 5.13 Waiver of Past Defaults
	25

		
	Section 5.14 Undertaking for Costs
	25

		
	Section 5.15 Waiver of Stay or Extension Laws
	26

Article VI THE TRUSTEE    26
		
	Section 6.01 Certain Duties and Responsibilities of Trustee.
	26

		
	Section 6.02 Notice of Defaults
	26

		
	Section 6.03 Certain Rights of Trustee
	27

		
	Section 6.04 Not Responsible for Recitals or Issuance of Securities
	27

		
	Section 6.05 May Hold Securities
	27

		
	Section 6.06 Money Held in Trust
	28

		
	Section 6.07 Compensation and Reimbursement
	28

		
	Section 6.08 Disqualification; Conflicting Interests
	28

		
	Section 6.09 Corporate Trustee Required; Eligibility
	28

		
	Section 6.10 Resignation and Removal; Appointment of Successor.
	28

		
	Section 6.11 Acceptance of Appointment by Successor
	29

		
	Section 6.12 Merger, Conversion, Consolidation or Succession to Business
	30

		
	Section 6.13 Preferential Collection of Claims Against Company
	30

		
	Section 6.14 Appointment of Authenticating Agent
	30

Article VII SECURITYHOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY    31
		
	Section 7.01 Company to Furnish Trustee Names and Addresses of Securityholders
	31

		
	Section 7.02 Preservation of Information; Communications to Securityholders.
	32

		
	Section 7.03 Reports by Trustee.
	32

		
	Section 7.04 Reports by Company
	33

Article VIII CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER    33
		
	Section 8.01 Company May Consolidate, etc., Only on Certain Terms
	33

		
	Section 8.02 Successor Corporation Substituted
	33

Article IX SUPPLEMENTAL INDENTURES    34
		
	Section 9.01 Supplemental Indentures Without Consent of Securityholders
	34

		
	Section 9.02 Supplemental Indentures With Consent of Securityholders
	35

		
	Section 9.03 Execution of Supplemental Indentures
	36

		
	Section 9.04 Effect of Supplemental Indentures
	36

		
	Section 9.05 Conformity With Trust Indenture Act
	36

		
	Section 9.06 Reference in Securities to Supplemental Indentures
	36

Article X COVENANTS    36
		
	Section 10.01 Payment of Principal, Premium and Interest
	36

		
	Section 10.02 Maintenance of Office or Agency
	36

		
	Section 10.03 Money or Security Payments to Be Held in Trust
	36

		
	Section 10.04 Certificate to Trustee
	37

		
	Section 10.05 Corporate Existence
	37

Article XI REDEMPTION OF SECURITIES    37
		
	Section 11.01 Applicability of Article
	37

4

		
	Section 11.02 Election to Redeem; Notice to Trustee
	37

		
	Section 11.03 Selection by Trustee of Securities to be Redeemed
	38

		
	Section 11.04 Notice of Redemption
	38

		
	Section 11.05 Deposit of Redemption Price
	38

		
	Section 11.06 Securities Payable on Redemption Date
	39

		
	Section 11.07 Securities Redeemed in Part
	39

		
	Section 11.08 Provisions with Respect to any Sinking Funds
	39

Article XII REPAYMENT AT OPTION OF HOLDERS    40
		
	Section 12.01 Applicability of Article
	40

		
	Section 12.02 Repayment of Securities
	40

		
	Section 12.03 Exercise of Option
	40

		
	Section 12.04 When Securities Presented for Repayment Become Due and Payable
	40

		
	Section 12.05 Securities Repaid in Part
	41

5

THIS SENIOR INDENTURE, between SmartFinancial, Inc., a Tennessee corporation (hereinafter called the “Company”) having its principal office at 5401 Kingston Pike, Suite 600, Knoxville, Tennessee 37919 and,                     , a                     , as trustee (hereinafter called the “Trustee”), is made and entered into as of this      day of             , 201[-].
Recitals of the Company
All things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.
Agreements of the Parties
To set forth or to provide for the establishment of the terms and conditions upon which the Securities (as hereinafter defined) are and are to be authenticated, issued, and delivered, and in consideration of the premises thereof, and the purchase of Securities by the Holders (as hereinafter defined) thereof, it is mutually covenanted and agreed as follows, for the equal and proportionate benefit of all Holders from time to time of the Securities or of any series thereof, as the case may be:
Article I 
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 1.01    Definitions. For all purposes of this Indenture and of any indenture supplemental hereto, except as otherwise expressly provided or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;
(b) all other terms used herein which are defined in the Trust Indenture Act (as hereinafter defined), either directly or by reference therein, have the meanings assigned to them therein;
(c) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles 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; and
(d) all references in this instrument to designated “Articles”, “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this instrument as originally executed. 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.

(e) the following terms will have the meanings set forth below:
“Act”, when used with respect to any Securityholder (as hereinafter defined), has the meaning specified in Section 1.04.

1

“Affiliate” of any specified Person (as hereinafter defined) 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 to authenticate Securities of one or more series under Section 6.14.
“Authentication Order” has the meaning specified in Section 3.03.
“Board of Directors” means (i) the board of directors of the Company, (ii) any duly authorized committee of that board, or (iii) any officer, director, or authorized representative of the Company, in each case duly authorized by such Board to act hereunder.
“Board Resolution” means a copy of a resolution certified by the secretary or an assistant secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.
“Capital Stock” means, with respect to any Person, any capital stock (including preferred stock), shares, interests, participations or other ownership interests (however designated) of such Person and any rights (other than debt securities convertible or exchangeable for corporate stock), warrants or options to purchase any thereof.
“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of 1934, 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 on such date.
“Company” means SmartFinancial, Inc., unless and until a successor corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor corporation.
“Company Request”, “Company Order”, and “Company Consent” mean, respectively, a written request, order, or consent signed in the name of the Company by the chairman of the Board of Directors, the chief executive officer, the chief financial officer, the treasurer, the controller, or by any other officer or officers of the Company pursuant to an applicable Board Resolution, 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                     .
“Corporation” means a corporation, association, company, joint-stock company, limited liability company or business trust.
“Covenant Defeasance” has the meaning specified in Section 4.03.

2

“Defaulted Interest” has the meaning specified in Section 3.07.
“Defeasance” has the meaning specified in Section 4.02.
“Depositary” means with respect to the Securities of any series issuable or issued in whole or in part in global form, the Person designated as Depositary by the Company pursuant to Section 3.01, unless and until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person who is then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as used with respect to the Securities of any such series shall mean the “Depositary” with respect to the Securities of that series.
“Equivalent Government Securities” means, in relation to Securities denominated in a currency other than U.S. dollars, securities of the government that issued the currency in which such Securities are denominated or securities of government agencies backed by the full faith and credit of such government.
“Event of Default” has the meaning specified in Article 5.
“Holder”, “Securityholder” and “Holder of Securities” means a Person in whose name a Security is registered in the Security Register (as hereinafter defined).
“Guarantee” by any Person means any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing any Indebtedness or other obligation of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation (whether arising by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into for the purpose of assuring in any other manner the obligee of such Indebtedness or other obligation of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part), provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” when used as a verb has a corresponding meaning.
“Indebtedness” with respect to any Person means (1) any liability of such Person (a) for borrowed money, or (b) evidenced by a bond, note, debenture or similar instrument (including purchase money obligations but excluding Trade Payables), or (c) for the payment of money relating to a lease that is required to be classified as a capitalized lease obligation in accordance with generally accepted accounting principles; (2) mandatorily redeemable preferred or preference stock of a Subsidiary held by Persons other than the Company or a Subsidiary; (3) any liability of others described in the preceding clause (1) that such Person has Guaranteed, that is recourse to such Person or that is otherwise such Person’s legal liability; and (4) any amendment, supplement, modification, deferral, renewal, extension or refunding of any liability of the types referred to in clauses (1), (2) and (3) above.
“Indenture” or “this Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto 

3

entered into pursuant to the applicable provisions hereof and shall include the terms of any particular series of Securities established as contemplated by Section 3.01.
“Interest Payment Date”, when used with respect to any series of Securities, means any date on which an installment of interest on those Securities is scheduled to be paid.
“Maturity”, when used with respect to any Security, means the date on which the principal amount outstanding under such Security or an installment of principal amount outstanding under such Security becomes due and payable, as therein or herein provided, whether on the Scheduled Maturity Date (as hereinafter defined), by declaration of acceleration, call for redemption, or otherwise.
“New York Business Day” means (except, with respect to any particular series of Securities, as may be otherwise provided in the form of such Securities) any day other than a Saturday or Sunday that is neither a legal holiday nor a day on which banking institutions are authorized or required by law, regulation, or executive order to be closed.
“Officers’ Certificate” means a certificate signed by any two of the chairman of the Board of Directors, the chief executive officer, the president, any vice president, the treasurer or by any other officer or officers of the Company pursuant to an applicable Board Resolution, and delivered to the Trustee.
“Opinion of Counsel” means a written opinion of counsel to the Company, which counsel may be an employee of the Company or other counsel who shall be reasonably acceptable to the Trustee.
“Original Issue Discount Security” means any Security which is initially sold at a discount from the principal amount thereof and the terms of which provide that upon redemption or acceleration of the Maturity thereof, an amount less than the principal amount thereof would become due and payable.
“Outstanding”, when used with respect to any particular Securities or to the Securities of any particular series means, as of the date of determination, all such Securities theretofore authenticated and delivered under this Indenture, except:
(i) such Securities theretofore canceled by the Trustee or delivered by the Company to the Trustee for cancellation;

(ii) such Securities, or portions thereof, for whose payment or redemption money in the necessary amount has been theretofore deposited in trust with the Trustee or with any Paying Agent (as hereinafter defined) other than the Company, or, if the Company shall act as its own Paying Agent, has been set aside and segregated in trust by the Company; provided, in any case, that if such Securities are to be redeemed prior to their Scheduled Maturity Date, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and
(iii) such Securities in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, or which shall have been paid, in each case, 

4

pursuant to the terms of Section 3.06 (except with respect to any such Security as to which proof satisfactory to the Trustee is presented that such Security is held by a Person in whose hands such Security is a legal, valid, and binding obligation of the Company).
In determining whether the Holders of the requisite principal amount of such Securities Outstanding have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of any Original Issue Discount Security that shall be deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof. In determining whether the Holders of the requisite principal amount of such Securities Outstanding have given a direction concerning the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or concerning the exercise of any trust or power conferred upon the Trustee under this Indenture, or concerning a consent on behalf of the Holders of any series of Securities to the waiver of any past default and its consequences, Securities owned by the Company, any other obligor upon the Securities, or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to be Outstanding. In determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent, or waiver, only Securities which a Responsible Officer assigned to the corporate trust department of the Trustee knows to be owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor 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 to act as owner 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 such other obligor.
“Paying Agent” means, with respect to any Securities, any Person appointed by the Company to distribute amounts payable by the Company on such Securities. If at any time there shall be more than one such Person, “Paying Agent” as used with respect to the Securities of any particular series shall mean the Paying Agent with respect to Securities of that series. As of the date of this Indenture, the Company has appointed                      as Paying Agent with respect to all Securities issuable hereunder.
“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, or government, or any agency or political subdivision thereof.
 
“Place of Payment” means with respect to any series of Securities issued hereunder the city or political subdivision so designated with respect to the series of Securities in question in accordance with the provisions of Section 3.01.
“Predecessor Securities” 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 3.06 in lieu of a lost, destroyed, mutilated, or stolen Security shall be deemed to evidence the same debt as the lost, destroyed, mutilated, or stolen Security.

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“Record Date” means any date as of which the Holder of a Security will be determined for any purpose described herein, such determination to be made as of the close of business on such date by reference to the Security Register.
“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.
“Redemption Price”, when used with respect to any Security to be redeemed, means the price specified in the Security at which it is to be redeemed pursuant to this Indenture.
“Repayment Date”, when used with respect to any Security to be repaid, means the date fixed for such repayment pursuant to such Security.
“Repayment Price”, when used with respect to any Security to be repaid, means the price at which it is to be repaid pursuant to such Security.
“Responsible Officer”, when used with respect to the Trustee, shall mean an officer or assistant officer of the Trustee in the Corporate Trust Office, having direct responsibility for the administration of this Indenture, and also, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.
“Scheduled Maturity Date”, when used with respect to any Security, means the date specified in such Security as the date on which all outstanding principal and interest will be due and payable.
“Security” or “Securities” means any senior note or notes, bond or bonds, debenture or debentures, or any other evidences of indebtedness, as the case may be, of any series authenticated and delivered from time to time under this Indenture.
“Security Register” shall have the meaning specified in Section 3.05.
“Security Registrar” means the Person who maintains the Security Register, which Person shall be the Trustee unless and until a successor Security Registrar is appointed by the Company.
 
 “Significant Subsidiary” means each Subsidiary which is a “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X, as amended or modified and in effect from time to time.
“Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.07.
“Specified Currency” has the meaning specified in Section 3.01.
“Subsidiary” means any corporation, partnership or other entity of which at the time of determination the Company owns or controls directly or indirectly more than 50% of the shares of voting stock or equivalent interest.
“Trade Payables” means accounts payable or any other Indebtedness or monetary obligations to trade creditors created or assumed in the ordinary course of business in connection with the obtaining of materials, finished products, inventory or services.

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“Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as in force as of the date hereof, except as provided in Section 9.05.
“Trustee” means the party named as such above until a successor becomes such pursuant to this Indenture and thereafter means or includes each party who is then a trustee hereunder, and if at any time there is more than one such party, “Trustee” as used with respect to the Securities of any series means the Trustee with respect to Securities of that series. If Trustees with respect to different series of Securities are trustees under this Indenture, nothing herein shall constitute the Trustees co-trustees of the same trust, and each Trustee shall be the trustee of a trust separate and apart from any trust administered by any other Trustee with respect to a different series of Securities.
“U.S. Government Obligations” means (i) securities that are direct obligations of the United States of America, the payment of which is unconditionally Guaranteed by the full faith and credit of the United States of America and (ii) securities that are obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally Guaranteed by the full faith and credit of the United States of America, and also includes depository receipts issued by a bank or trust company as custodian with respect to any of the securities described in the preceding clauses (i) and (ii), and any payment of interest or principal payable under any of the securities described in the preceding clauses (i) and (ii) that is held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt, or from any amount received by the custodian in respect of such securities, or from any specific payment of interest or principal payable under the securities evidenced by such depository receipt.
“Voting Stock”, as applied to the stock of any corporation, means stock of any class or classes (however designated), the outstanding shares of which have, by the terms thereof, ordinary voting power to elect a majority of the members of the board of directors (or other governing body) of such corporation, other than stock having such power only by reason of the happening of a contingency.
 
Section 1.02    Officers’ Certificates and Opinions. Every Officers’ Certificate, Opinion of Counsel, and other certificate or opinion to be delivered to the Trustee under this Indenture with respect to any action to be taken by the Trustee (except for the Officers’ Certificate required by Section 10.04) shall include the following:
(a) a statement that each individual signing such certificate or opinion has read all covenants and conditions of this Indenture relating to such proposed action, including the definitions herein relating thereto;
(b) 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;
(c) a statement that, in the opinion of each such individual, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and
(d) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

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Section 1.03    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 as to the other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.
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, legal counsel, unless such officer knows that any such certificate, opinion, or representation is erroneous. Any opinion of counsel for the Company 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, unless such counsel knows that any such certificate, opinion, or representation is 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, such instruments may, but need not, be consolidated and form a single instrument.
Section 1.04    Acts of Securityholders.
(a) Any request, demand, authorization, direction, notice, consent, waiver, or other action provided by this Indenture to be given or taken by Securityholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Securityholders 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 (if expressly required by the applicable terms of this Indenture) to the Company. If any Securities are denominated in coin or currency other than that of the United States, then for the purposes of determining whether the Holders of the requisite principal amount of Securities have taken any action as herein described, the principal amount of such Securities shall be deemed to be that amount of United States dollars that could be obtained for such principal amount on the basis of the spot rate of exchange into United States dollars for the currency in which such Securities are denominated (as evidenced to the Trustee by a certificate provided by a financial institution, selected by the Company, that maintains an active trade in the currency in question, acting as conversion agent) as of the date the taking of such action by the Holders of such requisite principal amount is evidenced to the Trustee as provided in the immediately preceding sentence. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Securityholders 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 6.01) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section.
(b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness to such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by an officer of a corporation or a member of a partnership, on behalf of such corporation or partnership, such certificate or affidavit shall also constitute sufficient proof of his authority. The 

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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.
(c) The ownership of Securities shall for all purposes be determined by reference to the Security Register, as such register shall exist as of the applicable date.
(d) If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option, by Board Resolution, fix in advance a Record Date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no obligation to do so. If such Record Date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after such Record Date, but only the Holders of record at the close of business on such Record Date shall be deemed to be Holders for the purpose of determining whether Holders of the requisite proportion of Securities Outstanding have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Securities Outstanding shall be computed as of such Record Date; provided that no such authorization, agreement or consent by the Holders on such Record Date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after such Record Date.
(e) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Security shall bind each subsequent Holder of such Security, and each Holder of any Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, with respect to anything done or suffered to be done by the Trustee or the Company in reliance upon such action, whether or not notation of such action is made upon such Security.

Section 1.05    Notices, etc., to Trustee and Company. Any request, order, authorization, direction, consent, waiver, or other action to be taken by the Trustee, the Company, or the Securityholders hereunder (including any Authentication Order), and any notice to be given to the Trustee or the Company with respect to any action taken or to be taken by the Trustee, the Company, or the Securityholders hereunder, shall be sufficient if made in writing and
(a) (if to be furnished or delivered to or filed with the Trustee by the Company or any Securityholder) delivered to the Trustee at its Corporate Trust Office, Attention:                     , or
(b) (if to be furnished or delivered to the Company by the Trustee or any Securityholder, and except as otherwise provided in Section 5.01(d) and, in the case of a request for repayment, except as specified in the Security carrying the right to repayment) mailed to the Company, first-class postage prepaid, at its principal office (as specified in the first paragraph of this instrument), Attention: Harold R. Carpenter, Chief Financial Officer, or at any other address hereafter furnished in writing by the Company to the Trustee.
Section 1.06    Notice To Securityholders; Waiver. Where this Indenture or any Security provides for notice to Securityholders of any event, such notice shall be sufficiently given (unless otherwise expressly provided herein or in such Security) if in writing and mailed, first-class postage prepaid, to each Securityholder affected by such event, at his or her address as it appears in the Security Register as of the applicable Record Date, not later than the latest date or earlier than the earliest date prescribed by this Indenture or such Security for the giving of such notice. In any case where notice to Securityholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Securityholder shall affect the sufficiency 

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of such notice with respect to other Securityholders. Where this Indenture or any Security 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 Securityholders 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 as a result of a strike, work stoppage or otherwise, it shall be impractical to mail notice of any event to any Securityholder when such notice is required to be given pursuant to any provision of this Indenture or the applicable Security, then any method of notification as shall be satisfactory to the Trustee and the Company shall be deemed to be sufficient for the giving of such notice.
 
Section 1.07    Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in this Indenture by any of the provisions of the TIA, such required provision shall control.
Section 1.08    Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents hereof are for convenience only and shall not affect the construction of any provision of this Indenture.
Section 1.09    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 1.10    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.
Section 1.11    Benefits Of Indenture. Nothing in this Indenture or in any Securities, express or implied, shall give to any Person, other than the parties hereto, their successors hereunder, the Authenticating Agent, the Security Registrar, any Paying Agent, and the Holders of Securities (or such of them as may be affected thereby), any benefit or any legal or equitable right, remedy or claim under this Indenture.
Section 1.12    Governing Law. This Indenture and any dispute arising there under shall be governed by the substantive law of the State of New York without regard to any conflicts of law principles.
Section 1.13    Counterparts. This instrument may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all of which shall together constitute but one and the same instrument.
Section 1.14    Judgment Currency. The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court with respect to the Securities of any series it is necessary to convert the sum due in respect of the principal, premium, if any, or interest, if any, payable with respect to such Securities into a currency in which a judgment can be rendered (the “Judgment Currency”), the rate of exchange from the currency in which payments under such Securities is payable (the “Required Currency”) into the Judgment Currency shall be the highest bid quotation (assuming European-style quotation — i.e., Required Currency per Judgment Currency) received by the Company from three recognized foreign exchange dealers in the City of New York for the purchase of the aggregate amount of the judgment (as denominated in the Judgment Currency) on the New York Business Day preceding the date on which a final unappealable judgment is rendered, for settlement on such payment date, and at which the applicable dealer timely commits to execute a contract, and (b) the Company’s obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, or by any recovery pursuant to any judgment (whether or not entered in accordance with the preceding clause (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt by the judgment creditor of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the 

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full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture.
Section 1.15    Legal Holidays. In any case where any Interest Payment Date, Redemption Date, Repayment Date or Maturity of any Security shall not be a New York Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the Securities) 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 Maturity, provided that no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date, Repayment Date or Maturity, as the case may be.
ARTICLE II     
SECURITY FORMS
Section 2.01    Forms Generally. The Securities of each series shall have 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 the rules of any securities exchange, or as may, consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution of the Securities. Any portion of the text of any Security may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Security.
The definitive Securities, if any, shall be printed, lithographed or engraved or produced by any combination of these methods on steel engraved borders or may be produced in any other manner permitted by the rules of any securities exchange, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities.
Section 2.02    Forms of Securities. Each Security shall be in one of the forms approved from time to time by or pursuant to any Board Resolution, or established in one or more indentures supplemental hereto. Prior to the delivery to the Trustee for authentication of any Security in any form approved by or pursuant to a Board Resolution, the Company shall deliver to the Trustee a copy of such Board Resolution, together with a true and correct copy of the form of Security which has been approved thereby, or, if a Board Resolution authorizes a specific officer or officers to approve a form of Security, together with a certificate of such officer or officers approving the form of Security attached thereto, provided, however, that with respect to all Securities issued pursuant to the same Board Resolution, the required copy of such Board Resolution, together with the appropriate attachment, need be delivered only once. Any form of Security approved by or pursuant to a Board Resolution must be acceptable as to form to the Trustee, such acceptance to be evidenced by the Trustee’s authentication of Securities in that form or by a certificate signed by a Responsible Officer of the Trustee and delivered to the Company.
Section 2.03    Securities in Global Form. If Securities of a series are issuable in whole or in part in global form, the global security representing such Securities may provide that it shall represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and may also provide that the aggregate amount of Outstanding Securities represented thereby may from time to time be reduced to reflect exchanges or increased to reflect the issuance of additional Securities. Any endorsement of a Security in global form to reflect the amount (or any increase or decrease in the amount) of Outstanding Securities represented thereby shall be made in such manner and by such Person or Persons as shall be specified therein or in the Authentication Order delivered to the Trustee pursuant to Section 3.03 hereof.
Section 2.04    Form of Trustee’s Certificate of Authentication. The form of Trustee’s Certificate of Authentication for any Security issued pursuant to this Indenture shall be substantially as follows:

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TRUSTEE’S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
 
	
			
	 
	 
	 

	                                         , as Trustee,

	 
	 

	By:
	 
	 

	 
	 
	Authorized Officer:

 
ARTICLE III     
THE SECURITIES
Section 3.01    General Title; General Limitations; Issuable in Series; Terms of Particular Series.
(a) The aggregate principal amount of Securities that may be authenticated, delivered, and Outstanding at any time under this Indenture is not limited.
(b) The Securities may be issued in one or more series in such aggregate principal amount as may from time to time be authorized by the Board of Directors. All Securities of a series issued under this Indenture shall in all respects be equally and ratably entitled to the benefits hereof, without preference, priority, or distinction on account of the actual time of the authentication and delivery or Scheduled Maturity Date thereof.
(c) Each series of Securities shall be created either by or pursuant to one or more Board Resolutions, by an Officers’ Certificate or by one or more indentures supplemental hereto. Any such Board Resolution or supplemental indenture (or, in the case of a series of Securities created pursuant to a Board Resolution, any officer or officers authorized by such Board Resolution) shall establish the terms of any such series of Securities, including the following (as and to such extent as may be applicable):
(1) the title of such series;
(2) the limit, if any, upon the aggregate principal amount or issue price of the Securities of such series;
(3) the issue date or issue dates of the Securities of such series;
(4) the Scheduled Maturity Date of the Securities of such series;
(5) the place or places where the principal, premium, if any, interest, if any, and additional amounts, if any, payable with respect to the Securities of such series shall be payable;
(6) whether the Securities of such series will be issued at par or at a premium over or a discount from their face amount;

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(7) the rate or rates (which may be fixed or variable) at which the Securities of such series shall bear interest, if any, and, if applicable, the method by which such rate or rates may be determined;
(8) the date or dates (or the method by which such date or dates may be determined) from which interest, if any, shall accrue, and the Interest Payment Dates on which such interest shall be payable;
(9) the rights, if any, to defer payments of interest on the Securities by extending the interest payment periods and the duration of such extension;
 
 (10) the period or periods within which, the Redemption Price(s) or Repayment Price(s) at which, and any other terms and conditions upon which the Securities of such series may be redeemed or repaid, in whole or in part, by the Company;
(11) the obligation, if any, of the Company to redeem, repay, or purchase any of the Securities of such series pursuant to any sinking fund, mandatory redemption, purchase obligation, or analogous provision at the option of a Holder thereof, and the period or periods within which, the Redemption Price(s) or Repayment Price(s) or other price or prices at which, and any other terms and conditions upon which the Securities of such series shall be redeemed, repaid, or purchased, in whole or in part, pursuant to such obligation;
(12) the issuance of the Securities of such series in whole or in part in global form and, if so, the identity of the Depositary for such global security and the terms and conditions, if any, upon which interests in the Securities represented by such global security may be exchanged, in whole or in part, for the individual Securities represented thereby (if other than as provided in Section 3.05);
(13) the denominations in which the Securities of such series will be issued (which may be any denomination as set forth in the terms of such Securities) if other than U.S. $1,000 or an integral multiple thereof;
(14) whether and under what circumstances additional amounts on the Securities of such series shall be payable in respect of any taxes, assessments, or other governmental charges withheld or deducted and, if so, whether the Company will have the option to redeem such Securities rather than pay such additional amounts;
(15) the basis upon which interest shall be calculated;
(16) if the Securities of such series are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary Security for a definitive Security of such series) only upon receipt of certain certificates or other documents or upon satisfaction of other conditions, then the form and terms of such certificates, documents, and/or conditions;
(17) the exchange or conversion of the Securities of that series, whether or not at the option of the Holders thereof, for or into new Securities of a different series or for or into any other securities which may include shares of Capital Stock of the Company or any Subsidiary of the Company or securities directly or indirectly convertible into or exchangeable for any such shares or securities of entities unaffiliated with the Company or any Subsidiary of the Company;

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(18) if other than U.S. dollars, the foreign or composite currency or currencies (each such currency a “Specified Currency”) in which the Securities of such series shall be denominated and in which payments of principal, premium, if any, interest, if any, or additional amounts, if any, payable with respect to such Securities shall or may be payable;
(19) if the principal, premium, if any, interest, if any, or additional amounts, if any, payable with respect to the Securities of such series are to be payable in any currency other than that in which the Securities are stated to be payable, whether at the election of the Company or of a Holder thereof, the period or periods within which, and the terms and conditions upon which, such election may be made;
 
 (20) if the amount of any payment of principal, premium, if any, interest, if any, or other sum payable with respect to the Securities of such series may be determined by reference to the relative value of one or more Specified Currencies, commodities, securities, or instruments, the level of one or more financial or non-financial indices, or any other designated factors or formulas, the manner in which such amounts shall be determined;
(21) the exchange of Securities of such series, at the option of the Holders thereof, for other Securities of the same series of the same aggregate principal amount of a different authorized kind or different authorized denomination or denominations, or both;
(22) the appointment by the Trustee of an Authenticating Agent in one or more places other than the Corporate Trust Office of the Trustee, with power to act on behalf of the Trustee, and subject to its direction, in the authentication and delivery of the Securities of such series;
(23) any trustees, depositaries, paying agents, transfer agents, exchange agents, conversion agents, registrars, or other agents with respect to the Securities of such series if other than the Trustee, Paying Agent and Security Registrar named herein;
(24) the portion of the principal amount of Securities of such series, if other than the principal amount thereof, that shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 5.02 or provable in bankruptcy pursuant to Section 5.04;
(25) any Event of Default with respect to the Securities of such series, if not set forth herein, or any modification of any Event of Default set forth herein with respect to such series;
(26) any covenant solely for the benefit of the Securities of such series;
(27) the inapplicability of Section 4.02 and Section 4.03 of this Indenture to the Securities of such series and if Section 4.03 is applicable, the covenants subject to Covenant Defeasance under Section 4.03; and
(28) any other terms of the securities of such series (which terms shall not be inconsistent with the provisions of this Indenture, but which may modify or delete any provision of this Indenture insofar as it applies to such series).
If all of the Securities issuable by or pursuant to any Board Resolution are not to be issued at one time, it shall not be necessary to deliver the Officers’ Certificate and Opinion of Counsel required 

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by Section 3.03 hereof at the time of issuance of each such Security, but such Officers’ Certificate and Opinion of Counsel shall be delivered at or before the time of issuance of the first such Security.
If any series of Securities shall be established by action taken pursuant to any Board Resolution, the execution by the officer or officers authorized by such Board Resolution of an Authentication Order (as defined in Section 3.03 below) with respect to the first Security of such series to be issued, and the delivery of such Authentication Order to the Trustee at or before the time of issuance of the first Security of such series, shall constitute a sufficient record of such action. Except as otherwise permitted by Section 3.03, if all of the Securities of any such series are not to be issued at one time, the Company shall deliver an Authentication Order with respect to each subsequent issuance of Securities of such series, but such Authentication Orders may be executed by any authorized officer or officers of the Company, whether or not such officer or officers would have been authorized to establish such series pursuant to the aforementioned Board Resolution.
Unless otherwise provided by or pursuant to the Board Resolution or supplemental indenture creating such series (i) a series may be reopened for issuances of additional Securities of such series, and (ii) all Securities of the same series shall be substantially identical, except for the initial Interest Payment Date, issue price, initial interest accrual date and the amount of the first interest payment.
The form of the Securities of each series shall be established in a supplemental indenture or by or pursuant to the Board Resolution creating such series. The Securities of each series shall be distinguished from the Securities of each other series in such manner as the Board of Directors or its authorized representative or representatives may determine.
Unless otherwise provided with respect to Securities of a particular series, the Securities of any series may only be issuable in registered form, without coupons.
Section 3.02    Denominations and Currency. The Securities of each series shall be issuable in such denominations and currency as shall be provided in the provisions of this Indenture or by or pursuant to the Board Resolution or supplemental indenture creating such series. In the absence of any such provisions with respect to the Securities of any series, the Securities of that series shall be issuable only in fully registered form in denominations of U.S. $1,000 and any integral multiple thereof.
Section 3.03    Execution, Authentication and Delivery, and Dating. The Securities shall be executed on behalf of the Company by the president, the chief executive officer, the chief financial officer, any vice president, the treasurer or any assistant treasurer and attested by the secretary or any one of its assistant secretaries, under its corporate seal. The signature of any of these officers on the Securities may be manual or facsimile. The seal of the Company, if set forth thereon, may be in the form of a facsimile thereof and may be impressed, affixed, imprinted, or otherwise reproduced on the Securities. Typographical and other minor errors or defects in any such reproduction of the seal or any such signature shall not affect the validity or enforceability of any Security that has been duly authenticated and delivered by the Trustee.
Unless otherwise provided in the form of Security for any series, all Securities shall be dated the date of their authentication.
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.

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At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities to the Trustee for authentication, together with a Company Order for authentication and delivery (such Order an “Authentication Order”) with respect to such Securities, and the Trustee shall, upon receipt of such Authentication Order, in accordance with procedures acceptable to the Trustee set forth in the Authentication Order, and subject to the provisions hereof, authenticate and deliver such Securities to such recipients as may be specified from time to time pursuant to such Authentication Order. The material terms of such Securities shall be determinable by reference to such Authentication Order and procedures. If provided for in such procedures, such Authentication Order may authorize authentication and delivery of such Securities pursuant to oral instructions from the Company or its duly authorized agent, which instructions shall be promptly confirmed in writing. 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 the provisions of Section 6.01 hereof) shall be fully protected in relying upon:
(1) an executed supplemental indenture, if any;
(2) an Officers’ Certificate, certifying as to the authorized form or forms and terms of such Securities; and
(3) an Opinion of Counsel, stating that:
(a) the form or forms and terms of such Securities have been established by and in conformity with the provisions of this Indenture; provided that if all such Securities are not to be issued at the same time, such Opinion of Counsel may state that such terms will be established in conformity with the provisions of this Indenture, subject to any conditions specified in such Opinion of Counsel; and
(b) 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, moratorium, reorganization, and other laws of general applicability relating to or affecting the enforcement of creditors’ rights and to general principles of equity;
provided, however, that if all Securities issuable by or pursuant to a Board Resolution or supplemental indenture are not to be originally issued at one time, it shall not be necessary to deliver the Officers’ Certificate or Opinion of Counsel otherwise required pursuant to this paragraph at or prior to the time of authentication of each such Security if such documents are delivered at or prior to the time of authentication upon original issuance of the first such Security to be issued. After the original issuance of the first such Security to be issued, any separate request by the Company that the Trustee authenticate such Securities for original issuance will be deemed to be a certification by the Company that it is in compliance with all conditions precedent provided for in this Indenture relating to the authentication and delivery of such Securities.
 
The Trustee shall not be required to authenticate such Securities if the issue thereof will adversely affect the Trustee’s own rights, duties, or immunities under the Securities and this Indenture.

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If the Company shall establish pursuant to Section 3.01 that Securities of a series may be issued in whole or in part in global form, then the Company shall execute, and the Trustee shall (in accordance with this Section 3.03 and the Authentication Order with respect to such series) authenticate and deliver, one or more Securities in global form that (i) shall represent and shall be denominated in an aggregate amount equal to the aggregate principal amount of the Outstanding Securities of such series to be represented by such one or more Securities in global form, (ii) shall be registered, in the name of the Depositary for such Security or Securities in global form, or in the name of a nominee of such Depositary, (iii) shall be delivered to such Depositary or pursuant to such Depositary’s instruction, and (iv) shall bear a legend substantially as follows: “Unless and until it is exchanged in whole or in part for Securities in certificated form, this Security 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, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.” Each Depositary designated pursuant to Section 3.01 for a Security in global form must, at the time of its designation and at all times while it serves as Depositary, be a clearing agency registered under the Securities Exchange Act of 1934 and any other applicable statute or regulation.
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 manual signature of an authorized officer, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder.
Section 3.04    Temporary Securities. Pending the preparation of definitive Securities of any series, the Company may execute, and, upon receipt of the documents required by Sections 2.02, 3.01 and 3.03 hereof, together with an Authentication Order, the Trustee shall authenticate and deliver, temporary Securities of such series that are printed, lithographed, typewritten, mimeographed, or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued in registered form, without coupons, 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. In the case of Securities of any series for which a temporary Security may be issued in global form, such temporary global security shall represent all of the Outstanding Securities of such series and tenor.
Except in the case of temporary Securities in global form, which shall be exchanged in accordance with the provisions thereof, if temporary Securities of any series are issued, the Company will cause definitive Securities of such series to be prepared without unreasonable delay. After the preparation of definitive Securities, the temporary Securities of such series shall be exchangeable, at the Corporate Trust Office of the Trustee, or at such other office or agency as may be maintained by the Company in a Place of Payment pursuant to Section 10.02 hereof, for definitive Securities of such series having identical terms and provisions, upon surrender of the temporary Securities of such series, at the Company’s own expense and without charge to the Holder; and 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 a like principal amount of definitive Securities of such series in authorized denominations containing identical terms and provisions. Unless otherwise specified as contemplated by Section 3.01 with respect to a temporary Security in global form, until so exchanged, the temporary Securities of such series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series.

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Section 3.05    Registration, Transfer and Exchange. With respect to the Securities of each series, the Trustee shall keep a register (herein sometimes referred to as the “Security Register”) which shall provide for the registration of Securities of such series, and for transfers of Securities of such series, in accordance with information to be provided to the Trustee by the Company, subject to such reasonable regulations as the Trustee may prescribe. Such register shall be in written form or in any other form capable of being converted into written form within a reasonable time. At all reasonable times the information contained in such register or registers shall be available for inspection at the Corporate Trust Office of the Trustee or at such other office or agency to be maintained by the Company pursuant to Section 10.02 hereof.
Upon due presentation for registration of transfer of any Security of any series at the Corporate Trust Office of the Trustee or at any other office or agency maintained by the Company with respect to that series pursuant to Section 10.02 hereof, 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 such series of any authorized denominations, of like aggregate principal amount, tenor, terms and Scheduled Maturity Date.
Any other provision of this Section 3.05 notwithstanding, unless and until it is exchanged in whole or in part for the individual Securities represented thereby, in definitive form, a Security in global form representing all or a portion of the Securities of a series may not be transferred except as a whole by the Depositary for such series to a nominee of such Depositary, or by a nominee of such Depositary to such Depositary or another nominee of such Depositary, or by such Depositary or any such nominee to a successor Depositary for such series or a nominee of such successor Depositary.
At the option of the Holder, Securities of any series may be exchanged for other Securities of such series of any authorized denominations, of like aggregate principal amount, tenor, terms and Scheduled Maturity Date, 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 Securityholder making the exchange is entitled to receive.
If at any time the Depositary for the Securities of a series represented by one or more Securities in global form notifies the Company that it is unwilling or unable to continue as Depositary for the Securities of such series, or if at any time the Depositary for the Securities of such series shall no longer be eligible under Section 3.03 hereof, the Company, by Company Order, shall appoint a successor Depositary with respect to the Securities of such series. If a successor Depositary for the Securities of such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, the Company’s election pursuant to Section 3.01 that such Securities be represented by one or more Securities in global form shall no longer be effective with respect to the Securities of such series and the Company will execute, and the Trustee, upon receipt of an Authentication Order for the authentication and delivery of definitive Securities of such series, will authenticate and deliver Securities of such series in definitive form, in authorized denominations, in an aggregate principal amount, and of like terms and tenor, equal to the principal amount of the Security or Securities in global form representing such series, in exchange for such Security or Securities in global form.
The Company may at any time and in its sole discretion and subject to the procedures of the Depositary determine that individual Securities of any series issued in global form shall no longer 

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be represented by such Security or Securities in global form. In such event the Company will execute, and the Trustee, upon receipt of an Authentication Order for the authentication and delivery of definitive Securities of such series and of the same terms and tenor, will authenticate and deliver Securities of such series in definitive form, in authorized denominations, and in aggregate principal amount equal to the principal amount of the Security or Securities in global form representing such series in exchange for such Security or Securities in global form.
If specified by the Company pursuant to Section 3.01 with respect to a series of Securities issued in global form, the Depositary for such series of Securities may surrender a Security in global form for such series of Securities in exchange in whole or in part for Securities of such series in definitive form and of like terms and tenor on such terms as are acceptable to the Company and such Depositary. Thereupon, the Company shall execute, and the Trustee upon receipt of an Authentication Order for the authentication and delivery of definitive Securities of such series, shall authenticate and deliver, without service charge:
(a) to each Person specified by such Depositary, a new definitive Security or Securities of the same series and of the same tenor and terms, in authorized denominations, in aggregate principal amount equal to and in exchange for such Person’s beneficial interest in the Security in global form; and
(b) to such Depositary, a new Security in global form in a denomination equal to the difference, if any, between the principal amount of the surrendered Security in global form and the aggregate principal amount of the definitive Securities delivered to Holders pursuant to clause (a) above.
Upon the exchange of a Security in global form for Securities in definitive form, such Security in global form shall be canceled by the Trustee or an agent of the Company or the Trustee. Securities issued in definitive form in exchange for a Security in global form pursuant to this Section 3.05 shall be registered in such names and in such authorized denominations as the Depositary for such Security in global form, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee or an agent of the Company or the Trustee in writing. The Trustee or such agent shall deliver such Securities to or as directed by the Persons in whose names such Securities are so registered or to the Depositary.
 
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 transfer or exchange.
Every Security presented or surrendered for registration of transfer, exchange, redemption or payment 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.

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Unless otherwise provided in the Security to be transferred or exchanged, no service charge shall be imposed for any registration of transfer or exchange of Securities, but the Company may (unless otherwise provided in such Security) require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Securities, other than exchanges pursuant to Section 3.04, 3.06, 9.06 and 11.07 hereof not involving any transfer.
The Company shall not be required to (i) issue, register the transfer of, or exchange any Security of any series during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Securities of such series selected for redemption under Section 11.03 and ending at the close of business on the date of such mailing, or (ii) 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, the portion thereof not to be redeemed.
Section 3.06    Mutilated, Destroyed, Lost and Stolen Securities. If (i) any mutilated Security is surrendered to the Trustee, or the Company and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and (ii) there is delivered to the Company and the Trustee such security or indemnity as may be required by them to save each 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 may in its discretion execute and upon request of the Company the Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Security, a new Security of like tenor, terms, series, Scheduled Maturity Date, and principal amount, bearing a number not contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.
Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.
Every new Security issued pursuant to this Section 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 the same series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.
Section 3.07    Payment of Interest; Interest Rights Preserved. Interest on any Security which is payable and is punctually paid or duly provided for on any Interest Payment Date shall, if so provided in such Security, 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 applicable Record Date, notwithstanding any transfer or exchange of such Security subsequent to such Record Date and prior to such Interest Payment Date (unless such Interest Payment Date is also the date of Maturity of such Security).
Any interest on any Security which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable 

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to the registered Holder on the applicable Record Date by virtue of having been such Holder; and, except as hereinafter provided, such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (a) or clause (b) below:
(a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names any such Securities (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to the Holder of each such Security at his address as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (b).
 
 (b) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.
Interest on Securities of any series that bear interest may be paid by mailing a check to the address of the Person entitled thereto at such address as shall appear in the Securities Register for such series or by such other means as may be specified in the form of such Security.
Subject to the foregoing provisions of this Section 3.07 and the provisions of Section 3.05 hereof, 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 3.08    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 any Security is registered on the applicable Record Date(s) as the owner of such Security for the purpose of receiving payment of principal, premium, if any, interest, if any (subject to Sections 3.05 and 3.07 hereof), and any additional amounts payable with respect to such Security, and 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.

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None of the Company, the Trustee, any Authenticating Agent, any Paying Agent, the Security Registrar, or any Co-Security Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Security in global form or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests and each of them may act or refrain from acting without liability on any information relating to such records provided by the Depositary.
 
Section 3.09    Cancellation. All Securities surrendered for payment, redemption, registration of transfer, exchange, or credit against a sinking or analogous fund shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and, if not already canceled, 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 all Securities so delivered shall be promptly canceled by the Trustee. Acquisition of such Securities by the Company shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation. No Security shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture. The Trustee shall dispose of all canceled Securities in accordance with its customary procedures and deliver a certificate of such disposition to the Company.
Section 3.10    Computation of Interest. Unless otherwise provided as contemplated in Section 3.01, interest on the Securities shall be calculated on the basis of a 360-day year of twelve 30-day months.
ARTICLE IV     
SATISFACTION AND DISCHARGE
Section 4.01    Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further effect with respect to any series of Securities (except as to any surviving rights of conversion or transfer or exchange of Securities of such series expressly provided for herein or in the form of Security for such series and obligations described as surviving below), and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture as to such series, when
(a) either
(i) all Securities of that series theretofore authenticated and delivered (other than (A) Securities of such series which have been destroyed, lost, or stolen and which have been replaced or paid as provided in Section 3.06, and (B) Securities of such series 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 4.07) have been delivered to the Trustee canceled or for cancellation; or
(ii) all such Securities of that series not theretofore delivered to the Trustee canceled or for cancellation
(A) have become due and payable, or
(B) will, in accordance with their Scheduled Maturity Date, become due and payable within one year, or
(C) 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, in any of the 

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cases described in subparagraphs (A), (B), or (C) above, the Company has irrevocably deposited or caused to be deposited with the Trustee, as trust funds in trust for the purpose, (x) an amount in money sufficient, (y) U.S. Government Obligations or Equivalent Government Securities which through the payment of interest and principal in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money sufficient, or (z) a combination of (x) and (y) sufficient, in the opinion with respect to (y) and (z) of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge the entire indebtedness on such Securities with respect to principal, premium, if any, and interest, if any, to the date of such deposit (in the case of Securities which have become due and payable), or to the Scheduled Maturity Date or Redemption Date, as the case may be; provided, however, that if such U.S. Government Obligations or Equivalent Government Securities are callable or redeemable at the option of the issuer thereof, the amount of such money, U.S. Government Obligations, and Equivalent Government Securities deposited with the Trustee must be sufficient to pay and discharge the entire indebtedness referred to above if such issuer elects to exercise such call or redemption provisions at any time prior to the Scheduled Maturity Date or Redemption Date, as the case may be, and the Company, but not the Trustee, shall be responsible for monitoring any such call or redemption provision; and
(b) the Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to the Securities of such series; and
(c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture with respect to the Securities of such series have been complied with.
Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of Securities, the obligations of the Company under paragraph (a) of this Section 4.01 and its obligations to the Trustee with respect to that series under Section 6.07 shall survive, and the obligations of the Trustee under Sections 4.05, 4.07 and 10.03 shall survive.
Section 4.02    Discharge and Defeasance. The provisions of this Section and Section 4.04 (insofar as relating to this Section) shall apply to the Securities of each series unless specifically otherwise provided in a Board Resolution or indenture supplemental hereto provided pursuant to Section 3.01. In addition to discharge 

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of this Indenture pursuant to Section 4.01, in the case of any series of Securities with respect to which the exact amount described in subparagraph (a) of Section 4.04 can be determined at the time of making the deposit referred to in such subparagraph (a), the Company shall be deemed to have paid and discharged the entire indebtedness on all the Securities of such a series as provided in this Section on and after the date the conditions set forth in Section 4.04 are satisfied, and the provisions of this Indenture with respect to the Securities of such series shall no longer be in effect (except as to (i) rights of registration of transfer and exchange of Securities of such series, (ii) substitution of mutilated, destroyed, lost or stolen Securities of such series, (iii) rights of Holders of Securities of such series to receive, solely from the trust fund described in subparagraph (a) of Section 4.04, payments of principal thereof, premium, if any, and interest, if any, thereon upon the original stated due dates or upon the Redemption Dates therefor (but not upon acceleration), and remaining rights of the Holders of Securities of such series to receive mandatory sinking fund payments, if any, (iv) the rights, obligations, duties and immunities of the Trustee hereunder, (v) this Section 4.02, Section 4.07, Section 10.02 and Section 10.03 and (vi) the rights of the Holders of Securities of such series as beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of them) (hereinafter called “Defeasance”), and the Trustee at the cost and expense of the Company, shall execute proper instruments acknowledging the same.
Section 4.03    Covenant Defeasance. The provisions of this Section and Section 4.04 (insofar as relating to this Section) shall apply to the Securities of each series unless specifically otherwise provided in a Board Resolution or indenture supplemental hereto provided pursuant to Section 3.01. In the case of any series of Securities with respect to which the exact amount described in subparagraph (a) of Section 4.04 can be determined at the time of making the deposit referred to in such subparagraph (a), (i) the Company shall be released from its obligations under any covenants specified in or pursuant to Section 3.01 as being subject to Covenant Defeasance with respect to such series (except as to (a) rights of registration of transfer and exchange of Securities of such series and rights under Section 4.07, Section 10.02 and Section 10.03, (b) substitution of mutilated, destroyed, lost or stolen Securities of such series, (c) rights of Holders of Securities of such series to receive, from the Company pursuant to Section 10.01, payments of principal thereof and interest, if any, thereon upon the original stated due dates or upon the Redemption Dates therefor (but not upon acceleration), and remaining rights of the Holders of Securities of such series to receive mandatory sinking fund payments, if any, (d) the rights, obligations, duties and immunities of the Trustee hereunder and (e) the rights of the Holders of Securities of such series as beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of them), and (ii) the occurrence of any event specified in Section 5.01(d) (with respect to any of the covenants specified in or pursuant to Section 3.01 as being subject to Covenant Defeasance with respect to such series) shall be deemed not to be or result in a default or an Event of Default, in each case with respect to the Outstanding Securities of such series as provided in this Section on and after the date the conditions set forth in Section 4.04 are satisfied (hereinafter called “Covenant Defeasance”), and the Trustee at the cost and expense of the Company, shall execute proper instruments acknowledging the same. For this purpose, such Covenant Defeasance means that the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant (to the extent so specified in the case of Section 5.01(d)), whether directly or indirectly by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document, but the remainder of this Indenture and the Securities of such series shall be unaffected thereby.
Section 4.04    Conditions To Defeasance Or Covenant Defeasance. The following shall be the conditions to application of either Section 4.02 or Section 4.03 to the Outstanding Securities:
(a) with reference to Section 4.02 or Section 4.03, the Company has irrevocably deposited or caused to be irrevocably deposited with the Trustee as funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of Securities of such series (i) money in an amount, or (ii) U.S. Government Obligations or Equivalent Government Securities which through the payment of interest and principal 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 (iii) a combination of (i) and (ii), sufficient, in the opinion (with respect to (ii) and (iii)) of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the 

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Trustee, to pay and discharge each installment of principal (including mandatory sinking fund payments) of, premium, if any, and interest on, the Outstanding Securities of such series on the dates such installments of interest, premium or principal are due, including upon redemption; provided, however, that if such U.S. Government Obligations and Equivalent Government Securities are callable or redeemable at the option of the issuer thereof, the amount of such money, U.S. Government Obligations, and/or Equivalent Government Securities deposited with the Trustee must be sufficient to pay and discharge the entire indebtedness referred to above if the issuer of any such U.S. Government Obligations or Equivalent Government Securities elects to exercise such call or redemption provisions at any time prior to the Scheduled Maturity Date or Redemption Date of such Securities, as the case may be. The Company, but not the Trustee, shall be responsible for monitoring any such call or redemption provision.
(b) in the case of Defeasance under Section 4.02, the Company has delivered to the Trustee an Opinion of Counsel based on the fact that (x) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (y) since the date hereof, there has been a change in the applicable United States federal income tax law, in either case to the effect that, and such opinion shall confirm that, the Holders of the Securities of such series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to federal income tax on the same amount and in the same manner and at the same times, as would have been the case if such deposit, Defeasance and discharge had not occurred;
(c) in the case of Covenant Defeasance under Section 4.03, the Company has delivered to the Trustee an Opinion of Counsel to the effect that, and such opinion shall confirm that, the Holders of the Securities of such series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and Covenant Defeasance and will be subject to federal income tax on the same amount and in the same manner and at the same times, as would have been the case if such deposit and Covenant Defeasance had not occurred;
(d) no Event of Default or event which, with notice or lapse of time or both, would become an Event of Default with respect to the Securities of such series shall have occurred and be continuing on the date of such deposit, after giving effect to such deposit or, in the case of a Defeasance under Section 4.02, no Event of Default specified in Section 5.01(e) or Section 5.01(f) shall have occurred, at any time during the period ending on the 91st day after the date of such deposit or, if longer, ending on the day following the expiration of the longest preference period applicable to the Company in respect of such deposit (it being understood that this condition shall not be deemed satisfied until the expiration of such period);
 
 (e) such Defeasance or Covenant Defeasance will not cause the Trustee to have a conflicting interest within the meaning of the TIA, assuming all Securities of a series were in default within the meaning of the TIA;
(f) such Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any agreement or instrument to which the Company is a party or by which it is bound;

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(g) such Defeasance or Covenant Defeasance will not result in the trust arising from such deposit constituting an investment company within the meaning of the Investment Company Act of 1940, as amended, unless the trust is registered under such Act or exempt from registration;
(h) if the Securities of such series are to be redeemed prior to their Stated Maturity Date (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; and
(i) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for herein relating to such Defeasance or Covenant Defeasance, as the case may be, have been complied with.
Section 4.05    Application of Trust Money; Excess Funds. All money and U.S. Government Obligations or Equivalent Government Securities (including the proceeds thereof) deposited with the Trustee pursuant to Section 4.01 or Section 4.04 hereof shall be held in trust and applied by it, in accordance with the provisions of this Indenture and of the series of Securities in respect of which it was deposited, 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, premium, if any, and interest, if any, for whose payment such money has been deposited with the Trustee; but such money need not be segregated from other funds except to the extent required by law.
The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or U.S. Government Obligations or Equivalent Government Securities deposited pursuant to Section 4.01 or Section 4.04 hereof 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 the Outstanding Securities.
Anything in this Article 4 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. Governmental Obligations or Equivalent Government Securities held by it as provided in Section 4.01 or Section 4.04 which, in the opinion of a nationally recognized investment bank, appraisal firm or firm of independent public accountants, expressed in a written certification thereof delivered to the Trustee, (which may be the opinion delivered under Section 4.01 or Section 4.04, as applicable), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent satisfaction and discharge, Covenant Defeasance or Defeasance of the applicable series. 
Section 4.06    Paying Agent to Repay Moneys Held. Upon the satisfaction and discharge of this Indenture, all moneys then held by any Paying Agent of the Securities (other than the Trustee) shall, upon demand of the Company, be repaid to it or paid to the Trustee, and thereupon such Paying Agent shall be released from all further liability with respect to such moneys.
Section 4.07    Return of Unclaimed Amounts. Any amounts deposited with or paid to the Trustee or any Paying Agent or then held by the Company, in trust for payment of the principal of, premium, if any, or interest, if any, on the Securities and not applied but remaining unclaimed by the Holders of such Securities for two years after the date upon which the principal of, premium, if any, or interest, if any, on such Securities, as the case may be, shall have become due and payable, shall be repaid to the Company by the Trustee on Company Request or (if then held by the Company) shall be discharged from such trust; and the Holder of any of such Securities shall thereafter look only to the Company for any payment which such Holder may be entitled to collect (until such time as such unclaimed amounts shall escheat, if at all, to the State of New York) 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. Notwithstanding the foregoing, the Trustee or Paying Agent, before being required 

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to make any such repayment, may at the expense of the Company cause to be published once a week for two successive weeks (in each case on any day of the week) in a newspaper printed in the English language and customarily published at least once a day at least five days in each calendar week and of general circulation in the Borough of Manhattan, in the City and State of New York, a notice that said amounts have not been so applied and that after a date named therein any unclaimed balance of said amounts then remaining will be promptly returned to the Company.
ARTICLE V     
REMEDIES
Section 5.01    Events of Default. “Event of Default”, wherever used herein, means with respect to any series of Securities 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), unless such event is either inapplicable to a particular series or it is specifically deleted or modified in the manner contemplated by Section 3.01:
(a) default in the payment of any interest on any Security of such series when it becomes due and payable, and continuance of such default for a period of 30 days; or
(b) default in the payment of the principal amount of (or premium, if any, on) any Security of such series as and when the same shall become due, either at Maturity, upon redemption, by declaration, or otherwise; or
(c) default in the payment of any sinking or purchase fund or analogous obligation when the same becomes due by the terms of the Securities of such series and continuance of such default for a period of 30 days; or
(d) default in the performance or breach of any covenant or warranty of the Company in this Indenture in respect of the Securities of such series (other than a covenant or warranty in respect of the Securities of such series a default in the performance of which or the breach of which is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a period of 60 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 the principal amount of the Outstanding Securities of such 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” hereunder; or
(e) the entry of an order for relief against the Company under the Federal Bankruptcy Act by a court having jurisdiction in the premises or a decree or order by a court having jurisdiction in the premises adjudging the Company a bankrupt or insolvent under any other applicable Federal or State law, or the entry of a decree or order approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under the Federal Bankruptcy Code or any other applicable Federal or State law, or appointing a 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 unstayed and in effect for a period of 90 consecutive days; or
(f) the consent by the Company to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under 

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the Federal Bankruptcy Code or any other applicable Federal or State law, or the consent by it to the filing of any such petition or to the appointment of a 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 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
(g) any other Event of Default provided for with respect to the Securities of such series in accordance with Section 3.01.
A default under any indebtedness of the Company other than the Securities will not constitute an Event of Default under this Indenture, and a default under one series of Securities will not constitute a default under any other series of Securities. The Trustee shall not be charged with knowledge of an Event of Default unless a Responsible Officer at the Corporate Trust Office has actual knowledge thereof.
Section 5.02    Acceleration of Maturity; Rescission, and Annulment. If any Event of Default described in Section 5.01 above (other than Event of Default described in Section 5.01(e) and Section 5.01(f)) shall have occurred and be continuing with respect to any series, then and in each and every such case, unless the principal of all the Securities of such series shall have already become due and payable, either the Trustee or the Holders of not less than 51% in aggregate principal amount of the Securities of such series then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by Holders), may declare the principal amount (or, if the Securities of such series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) of all the Securities of such series and any and all accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, any provision of this Indenture or the Securities of such series to the contrary notwithstanding. If an Event of Default specified in Section 5.01(e) or Section 5.01(f) occurs, the principal amount of the Securities of such series and any and all accrued interest thereon shall immediately become and be due and payable without any declaration or other act on the party of the Trustee or any Holder. No declaration of acceleration by the Trustee with respect to any series of Securities shall constitute a declaration of acceleration by the Trustee with respect to any other series of Securities, and no declaration of acceleration by the Holders of at least 51% in aggregate principal amount of the Outstanding Securities of any series shall constitute a declaration of acceleration or other action by any of the Holders of any other series of Securities, in each case whether or not the Event of Default on which such declaration is based shall have occurred and be continuing with respect to more than one series of Securities, and whether or not any Holders of the Securities of any such affected series shall also be Holders of Securities of any other such affected series.
At any time after such a declaration of acceleration has been made with respect to the Securities of any series and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of not less than a majority of the aggregate principal amount of the Outstanding Securities of such series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to such series of Securities, other than the nonpayment of the principal of the Securities of such series which have become due solely by such acceleration, have been cured or waived as provided in Section 5.13, if such cure or waiver does not conflict with any judgment or decree set forth in Section 5.01(e) and Section 5.01(f) and if all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel have been paid.
 
No such rescission shall affect any subsequent default or impair any right consequent thereon.

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Section 5.03    Collection of Indebtedness and Suits for Enforcement by Trustee. The Company covenants that if:
(a) default is made in the payment of any installment of interest on any Security of any series when such interest becomes due and payable, or
(b) default is made in the payment of the principal of (or premium, if any, on) any Security at the Maturity thereof, or
(c) default is made in the payment of any sinking or purchase fund or analogous obligation when the same becomes due by the terms of the Securities of any series, and
(d) any such default continues for any period of grace provided in relation to such default pursuant to Section 5.01,
then, with respect to the Securities of such series, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holder of any such Security (or the Holders of any such series in the case of clause (c) above), the whole amount then due and payable on any such Security (or on the Securities of any such series in the case of clause (c) above) for principal (and premium, if any) and interest, if any, with interest (to the extent that payment of such interest shall be legally enforceable) upon the overdue principal (and premium, if any) and upon overdue installments of interest, if any, at such rate or rates as may be prescribed therefor by the terms of any such Security (or of Securities of any such series in the case of clause (c) above); and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and all other amounts due the Trustee under Section 6.07.
If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and may enforce the same against the Company or any other obligor upon the Securities of such series and collect the money adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.
If an Event of Default with respect to any series of Securities 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 5.04    Trustee May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition, or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceedings or otherwise,

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(a) to file and prove a claim for the whole amount of principal (or, with respect to Original Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities), premium, if any, and interest, if any, owing and unpaid in respect of the Securities, and to file such other papers or documents as may be necessary and advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements, and advances of the Trustee, its agents and counsel, and all other amounts due the Trustee under Section 6.07) and of the Securityholders allowed in such judicial proceedings, and
(b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any receiver, assignee, trustee, liquidator, sequestrator (or other similar official) in any such judicial proceeding is hereby authorized by each Securityholder 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 Securityholders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee and its agent and counsel, and any other amounts due the Trustee under Section 6.07 hereof.
Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder in any such proceeding.
Section 5.05    Trustee May Enforce Claims Without Possession of Securities. All rights of action and claims under this Indenture or the Securities of any series may be prosecuted and enforced by the Trustee without the possession of any of the Securities of such series or the production thereof in any 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 the reasonable compensation, expenses, disbursements and advances of the Trustee and its agents and counsel, be for the ratable benefit of the Holders of the Securities, of the series in respect of which such judgment has been recovered.
 
Section 5.06    Application of Money Collected. Any money collected by the Trustee with respect to a series of Securities pursuant to this Article 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 on account of principal, premium, if any, or interest, if any, upon presentation of the Securities of such series 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 6.07 hereof.
Second: To the payment of the amounts then due and unpaid upon the Securities of that series for principal, premium, if any, interest, if any, and additional amounts, if any, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind.
Section 5.07    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 or trustee, or for any other remedy hereunder, unless
(a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to Securities of such series;

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(b) the Holders of not less than 51% in principal amount of the Outstanding Securities of such 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;
(c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request;
(d) the Trustee for 60 days after its receipt of such notice, request, and offer of indemnity has failed to institute any such proceeding; and
(e) 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 such series; it being understood and intended that no one or more Holders of Securities of such series shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Securities of such series, or to obtain or to seek to obtain priority or preference over any other such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and proportionate benefit of all the Holders of all Securities of such series.
 
Section 5.08    Unconditional Right of Securityholders 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, premium, if any, and (subject to Section 3.07) interest, if any, (and additional amounts, if any) on such Security on or after the respective payment dates expressed in such Security (or, in the case of redemption or repayment, on the Redemption Date or Repayment Date, as the case may be) and to institute suit for the enforcement of any such payment on or after such respective date, and such right shall not be impaired or affected without the consent of such Holder.
Section 5.09    Restoration of Rights and Remedies. If the Trustee or any Securityholder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, then and in every such case the Company, the Trustee and the Securityholders shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Securityholders shall continue as though no such proceeding had been instituted.
Section 5.10    Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Trustee or to the Securityholders is intended to be exclusive of any other right or remedy, and every right or 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 5.11    Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Security 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 or by law to the Trustee or to the Securityholders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Securityholders, as the case may be.
Section 5.12    Control by Securityholders. The Holders of 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

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(a) the Trustee shall have the right to decline to follow any such direction if the Trustee, being advised by counsel, determines that the action so directed may not lawfully be taken or would conflict with this Indenture or if the Trustee in good faith shall, by a Responsible Officer, determine that the proceedings so directed would involve it in personal liability or be unjustly prejudicial to the Holders not taking part in such direction, and
(b) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.
 
Section 5.13    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 not theretofore cured:
(a) in the payment of principal, premium, if any, or interest, if any, on any Security of such series, or in the payment of any sinking or purchase fund or analogous obligation with respect to the Securities of such series, or
(b) in respect of a covenant or provision in this Indenture which, under Article Nine hereof, cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series.
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 5.14    Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Security by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder or group of Securityholders holding in the aggregate more than 10% in principal amount of the Outstanding Securities of any series to which the suit relates, or to any suit instituted by any Securityholder for the enforcement of the payment of principal, premium, if any, or interest, if any, on any Security on or after the respective payment dates expressed in such Security (or, in the case of redemption or repayment, on or after the Redemption Date or Repayment Date).
Section 5.15    Waiver of 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 stay or extension law (other than any bankruptcy 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 VI     
THE TRUSTEE
Section 6.01    Certain Duties and Responsibilities of Trustee.

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(a) Except during the continuance of an Event of Default with respect to any series of Securities,
(i) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture with respect to the Securities of such series, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and
(ii) in the absence of bad faith on its part, the Trustee may, with respect to Securities of such series, conclusively rely upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform on their face to the requirements of this Indenture (but need not confirm or investigate the accuracy of calculations or other facts stated therein).
(b) If an Event of Default with respect to any series of Securities actually known to a Responsible Officer of the Trustee has occurred and is continuing, the Trustee shall exercise, with respect to the Securities of such series, such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his own affairs.
(c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that
(i) this Subsection shall not be construed to limit the effect of Subsection (a) of this Section;
(ii) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;
(iii) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of not less than a majority in principal amount of the Outstanding Securities of any series relating to the time, method, and place of conducting any proceeding for any remedy available to the Trustee with respect to the Securities of such series, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such series; and
(iv) 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.
(d) 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 6.02    Notice of Defaults. Within 90 days after receipt of notice of the occurrence of any default hereunder with respect to Securities of any series, the Trustee shall transmit by mail to all Securityholders of such series, as their names and addresses appear in the Security Register, notice of such default hereunder known 

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to the Trustee, unless such default shall have been cured or waived; provided, however, that, except in the case of a default in the payment of the principal, premium, if any, or interest, if any, on any Security of such series or in the payment of any sinking or purchase fund installment or analogous obligation with respect to Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interests of the Securityholders of such series and; provided, further, that, in the case of any default of the character specified in Section 5.01(d) with respect to Securities of such series, no such notice to Securityholders of such series shall be given until at least 60 days after the occurrence thereof. For the purpose of this Section, the term “default”, with respect to Securities of any series, 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.
Section 6.03    Certain Rights of Trustee. Except as otherwise provided in Section 6.01 above:
(a) the Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;
(b) any request, direction or order of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;
(c) 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 Officers’ Certificate or Opinion of Counsel or both, and shall not be liable for any action it takes or omits to take in good faith reliance on such certificate or opinion;
(d) the Trustee may consult with counsel of its selection and the advice or opinion of such counsel as to matters of law shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;
(e) 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 Securityholders pursuant to this Indenture, unless such Securityholders shall have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction;
(f) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture 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; and
(g) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible 

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for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.
Section 6.04    Not Responsible for Recitals or Issuance of Securities. The recitals contained herein and in the Securities, except the certificates of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities. The Trustee shall not be accountable for the use or application by the Company of Securities or the proceeds thereof.
Section 6.05    May Hold Securities. The Trustee or any Paying Agent, Security Registrar, or other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 6.08 and 6.13 hereof, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Paying Agent, Security Registrar, or such other agent.
Section 6.06    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 6.07    Compensation and Reimbursement. The Company covenants and agrees
(a) to pay the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);
(b) 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 reasonable expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith; and
(c) to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of this trust, including the reasonable 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.
Without prejudice to any other rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 5.01(e) and Section 5.01(f) above, such expenses (including the reasonable charges and expenses of its counsel) and compensation for such services are intended to constitute expenses of administration under any applicable Federal or State bankruptcy, insolvency, reorganization, or other similar law.
The Trustee shall have a lien prior to the Securities upon all property and funds held or collected by it as such for any amount owing to it or any predecessor Trustee pursuant to this Section 6.07, except with respect to funds held in trust for the benefit of the Holders of particular Securities.
The provisions of this Section shall survive the satisfaction and discharge of this Indenture.
Section 6.08    Disqualification; Conflicting Interests. If the Trustee has or shall acquire any conflicting interest within the meaning of the Trust Indenture Act, it shall either eliminate such interest or resign as Trustee with respect to one or more series of Securities, to the extent and in the manner provided by, 

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and subject to the provisions of, the Trust Indenture Act and this Indenture. To the extent permitted by such Trust Indenture 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.
Section 6.09    Corporate Trustee Required; Eligibility. There shall at all times be a Trustee hereunder with respect to each series of Securities that shall be a corporation organized and doing business under the laws of the United States of America or of any State or Territory thereof or of the District of Columbia, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000, and subject to supervision or examination by Federal or State authority and having its principal office and place of business in the City of New York, if there be such a corporation having its principal office and place of business in said City and willing to act as Trustee on customary and usual terms. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee with respect to any series of Securities shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.
Section 6.10    Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee under Section 6.11.
(b) The Trustee may resign with respect to any one or more series of Securities at any time by giving at least 60 days’ written notice thereof to the Company. If an instrument of acceptance by a successor Trustee 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.
(c) The Trustee may be removed with respect to any series of Securities at any time by Act of the Holders of 66 2/3% in principal amount of the Outstanding Securities of that series, delivered to the Trustee and to the Company.
(d) If at any time:
(i) the Trustee shall fail to comply with Section 6.08 above with respect to any series of Securities after written request therefor by the Company or by any Securityholder who has been a bona fide Holder of a Security of that series for at least six months, or
(ii) the Trustee shall cease to be eligible under Section 6.09 above with respect to any series of Securities and shall fail to resign after written request therefor by the Company or by any such Securityholder, or
(iii) the Trustee shall become incapable of acting with respect to any series of Securities, or
(iv) the Trustee 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 may remove the Trustee, with respect to the series or, in the case of clause (iv), with respect to all series, or (B) subject to Section 5.14, any Securityholder who has 

36

been a bona fide Holder of a Security of such series for at least 6 months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee with respect to the series or, in the case of clause (iv), with respect to all series.

(e) If the Trustee shall resign, be removed or become incapable of acting with respect to any series of Securities, or if a vacancy shall occur in the office of Trustee with respect to any series of Securities for any cause, the Company shall promptly appoint a successor Trustee for that series of Securities. If, within one year after such resignation, removal or incapacity, or the occurrence of such vacancy, a successor Trustee with respect to such series of Securities shall be appointed by Act of the Holders of 66 2/3% 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, become the successor Trustee with respect to such series and supersede the successor Trustee appointed by the Company with respect to such series. If no successor Trustee with respect to such series shall have been so appointed by the Company or the Securityholders of such series and accepted appointment in the manner hereinafter provided, any Securityholder who has been a bona fide Holder of a Security of that 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 such series.
(f) The Company shall give notice of each resignation and each removal of the Trustee with respect to any series and each appointment of a successor Trustee with respect to any series by mailing written notice of such event by first-class mail, postage prepaid, to the Holders of Securities of that series as their names and addresses appear in the Security Register. Each notice shall include the name of the successor Trustee and the address of its principal Corporate Trust Office.
Section 6.11    Acceptance of Appointment by Successor. Every successor Trustee appointed hereunder with respect to all series of Securities shall execute, acknowledge and deliver to the Company and to the predecessor Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the predecessor 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 predecessor Trustee with respect to any such series; but, on request of the Company or the successor Trustee, such predecessor Trustee shall, upon payment of its reasonable charges, if any, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the predecessor Trustee, and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such predecessor 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 predecessor Trustee and each successor Trustee with respect to the Securities of any applicable series shall execute and deliver an indenture supplemental hereto which (1) shall contain such provisions as shall be deemed necessary or desirable to transfer and to conform to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the predecessor Trustee with respect to the Securities of any series as to which the appointment of such successor Trustee relates and (2) if the predecessor 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 predecessor Trustee with respect to the Securities of any series as to which the predecessor Trustee is not being succeeded shall continue to be vested in the predecessor Trustee, and (3) shall add to or change any of the provisions of this 

37

Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust 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; and, 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.
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 with respect to any series of Securities shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible with respect to that series under this Article.
Notwithstanding replacement of the Trustee pursuant to this Section, the Company’s obligations under Section 6.07 hereof shall continue for the benefit of the retiring Trustee.
Section 6.12    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 of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be otherwise qualified and eligible under this Article, 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 Trustee by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.
Section 6.13    Preferential Collection of Claims Against Company. If and when the Trustee shall be or shall become a creditor, of the Company (or of 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 against any such other obligor, as the case may be).
Section 6.14    Appointment of Authenticating Agent. At any time when any of the Securities remain Outstanding the Trustee, with the approval of the Company, 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 exchange, registration of transfer or partial redemption thereof or pursuant to Section 3.06, 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 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 

38

or the District of Columbia, authorized under such laws to act as an 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, 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, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section.
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 the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible under this Section, 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, if other than the Company, 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, if other than the Company, 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, the Trustee, with the approval of the Company, may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail written notice of such appointment by first-class mail, postage prepaid, to all Holders of Securities of the series with respect to which such Authenticating Agent will serve, as their names and addresses appear in the Security Register. 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 originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.
The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section.
If an appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an alternate 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.
 

39

	
					
	 
	 
	 
	 
	 

	                                         , as Trustee

	 
	 
	 

	By:
	 
	 
	 
	 

	 
	 
	As Authenticating Agent:
	 
	 

	 
	 
	 

	By:
	 
	 
	 
	 

	 
	 
	Authorized Officer:
	 
	 

ARTICLE VII     
SECURITYHOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 7.01    Company to Furnish Trustee Names and Addresses of Securityholders. The Company will furnish or cause to be furnished to the Trustee:
(a) semiannually, not more than 15 days after January 1 and July 1 in each year, in such form as the Trustee may reasonably require, a list of the names and addresses of the Holders of Securities of each series as of such date, and
(b) at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished, provided that if the Trustee shall be the Security Registrar for such series, such list shall not be required to be furnished.
Section 7.02    Preservation of Information; Communications to Securityholders.
(a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders of Securities contained in the most recent list furnished to the Trustee as provided in Section 7.01 and the names and addresses of Holders of Securities received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.01 upon receipt of a new list so furnished.
(b) If three or more Holders of Securities of any series (hereinafter referred to as “applicants”) apply in writing to the Trustee, and furnish to the Trustee reasonable proof that each such applicant has owned a Security of such series for a period of at least six months preceding the date of such application, and such application states that the applicants desire to communicate with other Holders of Securities of such series or with the Holders of all Securities with respect to their rights under this Indenture or under such Securities and is accompanied by a copy of the form of proxy or other communication which such applicants propose to transmit, then the Trustee shall, within five Business Days after the receipt of such application, at its election, either:
(i) afford such applicants access to the information preserved at the time by the Trustee in accordance with Section 7.02(a), or
(ii) inform such applicants as to the approximate number of Holders of Securities of such series or all Securities, as the case may be, whose names and addresses appear in the information preserved at the time by the Trustee in accordance with Section 7.02(a), and as to the approximate 

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cost of mailing to such Securityholders the form of proxy or other communication, if any, specified in such application.
If the Trustee shall elect not to afford such applicants access to such information, the Trustee shall, upon the written request of such applicants, mail to each Holder of a Security of such series or to all Securityholders, as the case may be, whose names and addresses appear in the information preserved at the time by the Trustee in accordance with Section 7.02(a), a copy of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of mailing, unless within five days after such tender, the Trustee shall mail to such applicants and file with the Commission, together with a copy of the material to be mailed, a written statement to the effect that, in the opinion of the Trustee, such mailing would be contrary to the best interests of the Holders of Securities of such series or all Securityholders, as the case may be, or would be in violation of applicable law. Such written statement shall specify the basis of such opinion. If the Commission, after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an order refusing to sustain any of such objections or if, after the entry of an order sustaining one or more of such objections, the Commission shall find, after notice and opportunity for hearing, that all the objections so sustained have been met and shall enter an order so declaring, the Trustee shall mail copies of such material to all Securityholders of such series or all Securityholders, as the case may be, with reasonable promptness after the entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved of any obligation or duty to such applicants respecting their application.
 
(c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the Holders of Securities in accordance with Section 7.02(b), regardless of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under Section 7.02(b).
Section 7.03    Reports by Trustee.
(a) 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 June 1 following the date of this Indenture, deliver to each Holder, as provided in Trust Indenture Act Section 313(c), a brief report dated as of such June 1, which complies with the provisions of such Section 313(a).
(b) 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 as required by Trust Indenture Act Section 313(d). The Company will promptly notify the Trustee when any Securities are listed on any stock exchange.
Section 7.04    Reports by Company. The Company will:
(a) file with the Trustee, within 30 days after the Company is required to file the same with the Commission, copies of the annual reports and of the information, documents and other reports 

41

(or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934; or, if the Company is not required to file information, documents or reports pursuant to either of said Sections, then it will file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Securities Exchange Act of 1934 in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations;
(b) file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and
(c) transmit by mail to all Securityholders, as their names and addresses appear in the Security Register, within 30 days after the filing thereof with the Trustee, such summaries of any information, documents and reports required to be filed by the Company pursuant to paragraphs (a) and (b) of this Section as may be required by rules and regulations prescribed from time to time by the Commission. 
ARTICLE VIII     
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
Section 8.01    Company May Consolidate, etc., Only on Certain Terms. The Company shall not consolidate with or merge into any other corporation or convey or transfer all or substantially all of its properties and assets and the properties and assets of the Subsidiaries, taken as a whole, to any Person, unless;
(a) either the Company shall be the continuing corporation, or the corporation formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer all or substantially all of the properties and assets of the Company and the Subsidiaries, taken as a whole, shall be a corporation organized and existing under the laws of the United States of America or any State or the District of Columbia, 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, premium, if any, and interest, if any, on all the Securities and the performance of every covenant of this Indenture on the part of the Company to be performed or observed;
(b) immediately after giving effect to such transaction, no Event of Default, or event which, after notice or lapse of time, or both, would become an Event of Default, shall have happened and be continuing; and
(c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect that any such consolidation, merger, conveyance or transfer and any assumption permitted or required by this Article complies with the provisions of this Article.
Section 8.02    Successor Corporation Substituted. Upon any consolidation or merger, or any conveyance or transfer of all or substantially all of the properties and assets of the Company in accordance with Section 8.01, 

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the successor corporation formed by such consolidation or into which the Company is merged or the Person to which such conveyance or transfer 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 corporation had been named as the Company herein and the Company shall thereupon be released from all obligations hereunder and under the Securities. Such successor corporation thereupon may cause to be signed and may issue 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 corporation, 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, and any Securities which such successor corporation thereafter shall cause to be signed and delivered to the Trustee for that purpose. All of 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 or conveyance such changes in phraseology and form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.
ARTICLE IX     
SUPPLEMENTAL INDENTURES
Section 9.01    Supplemental Indentures Without Consent of Securityholders. Without the consent of the Holders of any Securities, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as in force at the date of execution thereof), in form satisfactory to the Trustee, for any of the following purposes:
(a) to evidence the succession of another corporation to the Company, or successive successions, and the assumption by any such successor of the covenants, agreements and obligations of the Company pursuant to Article 8 hereof; or
(b) to add to the covenants of the Company such further covenants, restrictions or conditions for the protection of the Holders of the Securities of any or all series as the Company and the Trustee shall consider to be for the protection of the Holders of the Securities of any or all series or to surrender any right or power herein conferred upon the Company (and if such covenants or the surrender of such right or power are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included or such surrenders are expressly being made solely for the benefit of one or more specified series); or
(c) to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein or in any supplemental indenture, or to make any other provisions with respect to matters or questions arising under this Indenture that do not adversely affect the interests of the Holders of Securities of any series in any material respect; or
(d) to add to this Indenture such provisions as may be expressly permitted by the Trust Indenture Act, excluding, however, the provisions referred to in Section 316(a)(2) of the Trust Indenture Act as in effect at the date as of which this instrument is executed or any corresponding provision in any similar federal statute hereafter enacted; or

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(e) to add guarantors or co-obligors with respect to any series of Securities; or
(f) to secure any series of Securities; or
(g) to establish any form of Security, as provided in Article 2 hereof, and to provide for the issuance of any series of Securities, as provided in Article 3 hereof, and to set forth the terms thereof, and/or to add to the rights of the Holders of the Securities of any series; or
(h) to evidence and provide for the acceptance of appointment by another corporation as a successor Trustee hereunder with respect to one or more series of Securities 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 Section 6.11 hereof; or
 
(i) to add any additional Events of Default in respect of the Securities of any or all series (and if such additional Events of Default are to be in respect of less than all series of Securities, stating that such Events of Default are expressly being included solely for the benefit of one or more specified series); or
(j) to comply with the requirements of the Commission in connection with the qualification of this Indenture under the Trust Indenture Act; or
(k) to make any change in any series of Securities that does not adversely affect in any material respect the interests of the Holders of such Securities.
Section 9.02    Supplemental Indentures With Consent of Securityholders. With the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series affected by such supplemental indenture or indentures, by Act of said Holders delivered to the Company and the Trustee, the Company and the Trustee may from time to time and at any time 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 any supplemental indenture or of modifying in any manner the rights of the Holders of the Securities of each 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:
(a) change the Scheduled Maturity Date or the stated payment date of any payment of premium or interest payable on any Security, or reduce the principal amount thereof, or any amount of interest or premium payable thereon, or
(b) change the method of computing the amount of principal of any Security or any interest payable thereon on any date, or change any Place of Payment where, or the coin or currency in which, any Security or any payment of premium or interest thereon is payable, or
(c) impair the right to institute suit for the enforcement of any payment described in clauses (a) or (b) on or after the same shall become due and payable, whether at Maturity or, in the case of redemption or repayment, on or after the Redemption Date or the Repayment Date, as the case may be; or
(d) change or waive the redemption or repayment provisions of any series;

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(e) 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
(f) modify any of the provisions of this Section or Section 5.13, 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, or the deletion of this proviso, in accordance with the requirements of Sections 6.11 and 9.01(h); or
 
(g) adversely affect the ranking or priority of any series;
(h) release any guarantor or co-obligor from any of its obligations under its Guarantee of the Securities or this Indenture, except in compliance with the terms of this Indenture; or
(i) waive any Event of Default pursuant to Section 5.01(a), Section 5.01(b) or Section 5.01(c) hereof with respect to such Security.
A supplemental indenture that changes or eliminates any covenant or other provision of this Indenture that has expressly been included solely for the benefit of one or more particular series of Securities, or that modifies the rights of the Holders of Securities of such series with respect to such covenant or 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 Securityholders under this Section 9.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.
Section 9.03    Execution of Supplemental Indentures. Upon request of the Company and upon filing with the Trustee of evidence of an Act of Securityholders as aforementioned, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, powers, trusts, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture. In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 6.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture.
Section 9.04    Effect of Supplemental Indentures. Upon the execution of any supplemental indenture under this Article, this Indenture shall be and be deemed to be modified and amended in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and the respective rights, limitation of rights, duties, powers, trusts and immunities under this Indenture of the Trustee, the Company, and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be determined, exercised and enforced thereunder to the extent provided therein.
Section 9.05    Conformity With Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect.
Section 9.06    Reference in Securities to Supplemental Indentures. Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article 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 

45

indenture. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities.
ARTICLE X     
COVENANTS
Section 10.01    Payment of Principal, Premium and Interest. With respect to each series of Securities, the Company will duly and punctually pay or cause to be paid the principal, premium, if any, and interest, if any, on such Securities in accordance with their terms and this Indenture, and will duly comply with all the other terms, agreements and conditions contained in the Indenture for the benefit of the Securities of such series.
Section 10.02    Maintenance of Office or Agency. So long as any of the Securities remain outstanding, the Company will maintain an office or agency in each Place of Payment where Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and of any change in the location, of such office or agency. If at any time the Company shall fail to maintain such 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 its agent to receive all such presentations, surrenders, notices and demands.
Section 10.03    Money or Security Payments to Be Held in Trust. If the Company shall at any time act as its own Paying Agent for any series of Securities, it will, on or before each due date of the principal, premium, if any, or interest, if any, on any of the Securities of such series, segregate and hold in trust for the benefit of the Holders of the Securities of such series a sum sufficient to pay such principal, premium, or interest so becoming due until such sums shall be paid to such Holders of such Securities 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, premium, if any, or interest, if any, on any Securities of such series, deposit with a Paying Agent a sum sufficient to pay such principal, premium, or interest so becoming due, such sum to be held in trust for the benefit of the Holders of the Securities entitled to the same 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 other than the Trustee for any series of Securities 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, that such Paying Agent will
(a) hold all sums held by it for the payment of principal, premium, if any, or interest, if any, on Securities of such series in trust for the benefit of the Holders of the Securities entitled thereto until such sums shall be paid to such Holders of such Securities or otherwise disposed of as herein provided;
(b) give the Trustee notice of any default by the Company (or any other obligor upon the Securities of such series) in the making of any such payment of principal, premium, if any, or interest, if any, on the Securities of such series; and
(c) at any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

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The Company may, at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture with respect to any series of Securities 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 in respect of each and every series of Securities as to which it seeks to discharge this Indenture or, if for any other purpose, all sums so held in trust by the Company in respect of all Securities, 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.
 
Section 10.04    Certificate to Trustee. The Company will deliver to the Trustee within 120 days after the end of each fiscal year, an Officers’ Certificate, one of whose signatories shall be the Company’s principal executive, accounting or financial officer, stating that in the course of the performance by the signers of their duties as officers of the Company they would normally have knowledge of any default by the Company in the performance of any of its covenants, conditions or agreements contained herein (without regard to any period of grace or requirement of notice provided hereunder), stating whether or not they have knowledge of any such default and, if so, specifying each such default of which the signers have knowledge and the nature thereof.
Section 10.05    Corporate Existence. Subject to Article 8, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence.
ARTICLE XI     
REDEMPTION OF SECURITIES
Section 11.01    Applicability of Article. The Company may reserve the right to redeem and pay before the Scheduled Maturity Date all or any part of the Securities of any series, either by optional redemption, sinking or purchase fund or analogous obligation or otherwise, by provision therefor in the form of Security for such series established and approved pursuant to Section 2.02 and 2.03 or as otherwise provided in Section 3.01, and on such terms as are specified in such form or in the indenture supplemental hereto with respect to Securities of such series as provided in Section 3.01. Redemption of Securities of any series shall be made in accordance with the terms of such Securities and, to the extent that this Article does not conflict with such terms, the succeeding Sections of this Article.
Section 11.02    Election to Redeem; Notice to Trustee. In case of any redemption at the election of the Company, the Company shall, at least 60 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee) notify the Trustee in writing of such Redemption Date and of the principal amount of Securities of such series 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 Officers’ Certificate evidencing compliance with such restriction or condition.
Section 11.03     Selection by Trustee of Securities to be Redeemed. If fewer than all the Securities of any series are to be redeemed, 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, which may include provision for the selection for redemption of portions of the principal of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series. Unless otherwise provided in the terms of a particular series of Securities, the portions of the principal of Securities so selected for partial redemption shall be equal to the minimum authorized denomination of the Securities of such series, or an integral multiple thereof, and the principal amount which remains outstanding shall not be less than the minimum authorized denomination for Securities of such series.

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The Trustee shall promptly notify the Company in writing of the Securities selected for redemption and, in the case of any Security selected for partial redemption, the principal amount thereof to be redeemed.
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 Security redeemed or to be redeemed only in part, to the portion of the principal of such Security which has been or is to be redeemed.
Section 11.04    Notice of Redemption. Notice of redemption shall be given by first-class mail, postage prepaid, mailed not fewer than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, at such Holder’s address appearing in the Security Register on the applicable Record Date.
All notices of redemption shall state:
(1) the Redemption Date;
(2) the Redemption Price, or if not then ascertainable, the manner of calculation thereof;
(3) if fewer than all Outstanding Securities of any series are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Securities to be redeemed, from the Holder to whom the notice is given and that on and after the date fixed for redemption, upon surrender of such Security, a new Security or Securities of the same series in the aggregate principal amount equal to the unredeemed portion thereof will be issued in accordance with Section 11.07;
(4) that on the Redemption Date the Redemption Price will become due and payable upon each such Security, and that interest, if any, thereon shall cease to accrue from and after said date;
 
 (5) the place where such Securities are to be surrendered for payment of the Redemption Price, which shall be the office or agency maintained by the Company in the Place of Payment pursuant to Section 10.02 hereof; and
(6) that the redemption is on account of a sinking or purchase fund, or other analogous obligation, if that be 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, made at least five business days prior to the date on which notice is to be given, by the Trustee in the name and at the expense of the Company.
Section 11.05    Deposit of Redemption Price. On or prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.03) an amount of money, in immediately available funds, sufficient to pay the Redemption Price of all the Securities which are to be redeemed on that date.
Section 11.06    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) such Securities shall cease to bear interest. Upon surrender of such Securities for redemption in accordance with the notice, such Securities shall be paid by the Company at the Redemption 

48

Price. Any installment of interest due and payable on or prior to the Redemption Date shall be payable to the Holders of such Securities registered as such on the relevant Record Date according to the terms and the provisions of Section 3.07 above; unless, with respect to an Interest Payment Date that falls on a Redemption Date, such Securities provide that interest due on such date is to be paid to the Person to whom principal is payable.
If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid, bear interest from the Redemption Date at the rate borne by the Security, or as otherwise provided in such Security.
Section 11.07    Securities Redeemed in Part. Any Security that is to be redeemed only in part shall be surrendered at the office or agency maintained by the Company in the Place of Payment pursuant to Section 10.02 hereof with respect to that series (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 and at the expense of the Company, a new Security or Securities of the same series, tenor, terms and Scheduled Maturity Date, of any authorized denomination as requested by such Holders in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered.
Section 11.08    Provisions with Respect to any Sinking Funds. Unless the form or terms of any series of Securities shall provide otherwise, in lieu of making all or any part of any mandatory sinking fund payment with respect to such series of Securities in cash, the Company may at its option (a) deliver to the Trustee for cancellation any Securities of such series theretofore acquired by the Company, or (b) receive credit for any Securities of such series (not previously so credited) acquired or redeemed by the Company (other than through operation of a mandatory sinking fund) and theretofore delivered to the Trustee for cancellation, and if it does so then (i) Securities so delivered or credited shall be credited at the applicable sinking fund Redemption Price with respect to Securities of such series, and (ii) on or before the 60th day next preceding each sinking fund Redemption Date with respect to such series of Securities, the Company will deliver to the Trustee (A) an Officers’ Certificate specifying the portions of such sinking fund payment to be satisfied by payment of cash and by the delivery or credit of Securities of such series acquired or redeemed by the Company, and (B) such Securities, to the extent not previously surrendered. Such Officers’ Certificate shall also state the basis for any such credit and that the Securities for which the Company elects to receive credit have not been previously so credited and were not acquired by the Company through operation of the mandatory sinking fund, if any, provided with respect to such Securities and shall also state that no Event of Default with respect to Securities of such series has occurred and is continuing. All Securities so delivered to the Trustee shall be canceled by the Trustee and no Securities shall be authenticated in lieu thereof.
If the sinking fund payment or payments (mandatory or optional) with respect to any series of Securities made in cash plus any unused balance of any preceding sinking fund payments with respect to Securities of such series made in cash shall exceed $50,000 (or a lesser sum if the Company shall so request), unless otherwise provided by the terms of such series of Securities, that cash shall be applied by the Trustee on the sinking fund Redemption Date with respect to Securities of such series next following the date of such payment to the redemption of Securities of such series at the applicable sinking fund Redemption Price with respect to Securities of such series, together with accrued interest, if any, to the date fixed for redemption, with the effect provided in Section 11.06. The Trustee shall select, in the manner provided in Section 11.03, for redemption on such sinking fund Redemption Date a sufficient principal amount of Securities of such series to utilize that cash and shall thereupon cause notice of redemption of the Securities of such series for the sinking fund to be given in the manner provided in Section 11.04 (and with the effect provided in Section 11.06) for the redemption of Securities in part at the option of the Company. Any sinking fund moneys not so applied or allocated by the Trustee to the redemption of Securities of such series shall be added to the next cash sinking fund payment with respect to Securities of such series received by the 

49

Trustee and, together with such payment, shall be applied in accordance with the provisions of this Section 11.08. Any and all sinking fund moneys with respect to Securities of any series held by the Trustee at the Maturity of Securities of such series, and not held for the payment or redemption of particular Securities of such series, shall be applied by the Trustee, together with other moneys, if necessary, to be deposited sufficient for the purpose, to the payment of the principal of the Securities of such series at Maturity.
On or before each sinking fund Redemption Date provided with respect to Securities of any series, the Company shall pay to the Trustee in cash a sum equal to all accrued interest, if any, to the date fixed for redemption on Securities to be redeemed on such sinking fund Redemption Date pursuant to this Section 11.08.
 
The Trustee shall not redeem any Securities with sinking fund moneys or give any notice of redemption of Securities by operation of the applicable sinking fund during the continuance of a default in payment of interest on Securities of such series or of any Event of Default with respect to such series, except that if the notice of redemption of any Securities shall theretofore have been mailed in accordance with the provisions hereof, the Trustee shall redeem such Securities if cash sufficient for that purpose shall be deposited with the Trustee for that purpose in accordance with the terms of this Article 11. Except as aforesaid, any moneys in the sinking fund with respect to Securities of any series at the time when any such default or Event of Default with respect to such series shall occur, and any moneys thereafter paid into such sinking fund shall, during the continuance of such default or Event of Default with respect to such series, be held as security for the payment of all Securities of such series; provided, however, that in case such default or Event of Default with respect to such series shall have been cured or waived as provided herein, such moneys shall thereafter be applied on the next sinking fund payment date on which such moneys may be applied pursuant to the provisions of this Section 11.08.
ARTICLE XII     
REPAYMENT AT OPTION OF HOLDERS
Section 12.01    Applicability of Article. Repayment of Securities of any series before their Scheduled Maturity Date 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 3.01 for Securities of any series) in accordance with this Article.
Section 12.02    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, together with interest thereon accrued to the Repayment Date specified in the terms of such Securities. On or before the Repayment Date, the Company 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 10.03) an amount of money, in immediately available funds, sufficient to pay the Repayment Price of all the Securities which are to be repaid on such date.
Section 12.03    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, 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 30 days nor later than 15 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 

50

of $1,000 unless otherwise specified in the terms of such Security, 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, exercise of the repayment option by the Holder shall be irrevocable unless waived by the Company.
Section 12.04     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 and as provided by 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) interest on such Securities or the portions thereof, as the case may be, shall cease to accrue.
Section 12.05    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, tenor, terms and Scheduled Maturity Date, 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.
(signature page follows)
 

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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and their respective corporate seals to be hereunto affixed and attested; all as of the day and year first above written.
 
	
			
	 
	 
	 

	SMARTFINANCIAL, INC.

	 
	 

	By:
	 
	 

	Name:
	 
	 

	Title:
	 
	 

 
	
			
	 
	 
	 

	Attest:
	 
	 

	 
	 

	By:
	 
	 

	Name:
	 
	 

	Title:
	 
	 

 
	
			
	 
	 
	 

	                                         , TRUSTEE

	By:
	 
	 

	Name:
	 
	 

	Title:
	 
	 

 
	
			
	 
	 
	 

	Attest:
	 
	 

	 
	 

	By:
	 
	 

	Name:
	 
	 

	Title:
	 
	 

52

	
			
	 
	 
	 

	State of
	 
	 

	 
	 
	ss.:

	County of
	 
	 

On the      day of             , 201[-]   before me personally came                      to me known, who, being by me duly sworn, did depose and say that he resides at                     ; that he is of                     , one of the parties described in and which executed the above instrument; that he knows the corporate seal of said corporation; that the seal affixed to that instrument is such corporate seal; that it was affixed by authority of the board of directors of said corporation; and that he signed his name thereto by like authority.
 
	
	
	 

	Name

	 

	 

	Notary Public

	
			
	 
	 
	 

	State of
	 
	 

	 
	 
	ss.:

	County of
	 
	 

On the      day of             , 201[-]   before me personally came                     , to me known, who, being by me duly sworn, did depose and say that he resides at                     ; that he is the                      of SmartFinancial, Inc., one of the parties described in and which executed the above instrument; that he knows the corporate seal of said corporation; that the seal affixed to that instrument is such corporate seal; that it was affixed by authority of the board of directors of said corporation; and that he signed his name thereto by like authority.

	
	
	 

	Name

	 

	 

	Notary Public

53

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