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Exhibit 10.19    
    

[AMB Logo]

R&D Lease  

 AMB Lakeside Business Center

Sunnyvale, California  

 Headlands Realty Corporation,

a Maryland corporation,  

 as Landlord,  

 and  

 Omneon Video Networks, Inc.,

a Delaware corporation,  

 as Tenant  

  

Table of Contents  

	Section
 
	 	Page

	1.	 	Basic Provisions	 	1
	 	 	1.1	 	Parties	 	1
	 	 	1.2	 	Premises	 	1
	 	 	1.3	 	Term	 	1
	 	 	1.4	 	Base Rent	 	1
	 	 	1.5	 	Tenant's Share of Operating Expenses	 	1
	 	 	1.6	 	Tenant's Estimated Monthly Rent Payment	 	1
	 	 	1.7	 	Security Deposit	 	2
	 	 	1.8	 	Permitted Use	 	2
	 	 	1.9	 	Guarantor	 	2
	 	 	1.10	 	Addenda	 	2
	 	 	1.11	 	Exhibits	 	2
	 	 	1.12	 	Address for Rent Payments	 	2
	 	 	1.13	 	Brokers	 	2
	
2.	
 	

Premises and Common Areas	
 	

2
	 	 	2.1	 	Letting	 	2
	 	 	2.2	 	Common Areas—Definition	 	3
	 	 	2.3	 	Common Areas—Tenant's Rights	 	3
	 	 	2.4	 	Common Areas—Rules and Regulations	 	3
	 	 	2.5	 	Common Area Changes	 	3
	 	 	2.6	 	Parking	 	3
	
3.	
 	

Term	
 	

4
	 	 	3.1	 	Term	 	4
	 	 	3.2	 	Delay in Possession	 	4
	 	 	3.3	 	Commencement Date Certificate	 	4
	
4.	
 	

Rent	
 	

4
	 	 	4.1	 	Base Rent	 	4
	 	 	4.2	 	Operating Expenses	 	4
	
5.	
 	

Security Deposit	
 	

6
	
6.	
 	

Use	
 	

7
	 	 	6.1	 	Permitted Use	 	7
	 	 	6.2	 	Hazardous Substances	 	7
	 	 	6.3	 	Tenant's Compliance with Requirements	 	9
	 	 	6.4	 	Inspection; Compliance with Law	 	9
	 	 	6.5	 	Tenant Move-in Questionnaire	 	9
	
7.	
 	

Maintenance, Repairs, Trade Fixtures and Alterations	
 	

10
	 	 	7.1	 	Tenant's Obligations	 	10
	 	 	7.2	 	Landlord's Obligations	 	10
	 	 	7.3	 	Alterations	 	10
	 	 	7.4	 	Surrender/Restoration	 	11
	
8.	
 	

Insurance; Indemnity	
 	

11
	 	 	8.1	 	Payment of Premiums	 	11
	 	 	8.2	 	Tenant's Insurance	 	12
	 	 	8.3	 	Landlord's Insurance	 	12
	 	 	8.4	 	Waiver of Subrogation	 	13
	 	 	8.5	 	Indemnity	 	13

i

 

	 	 	8.6	 	Exemption of Landlord from Liability	 	13
	
9.	
 	

Damage or Destruction	
 	

13
	 	 	9.1	 	Termination Right	 	13
	 	 	9.2	 	Damage Caused by Tenant	 	14
	
10.	
 	

Real Property Taxes	
 	

14
	 	 	10.1	 	Payment of Real Property Taxes	 	14
	 	 	10.2	 	Real Property Tax Definition	 	14
	 	 	10.3	 	Additional Improvements	 	14
	 	 	10.4	 	Joint Assessment	 	15
	 	 	10.5	 	Tenant's Property Taxes	 	15
	
11.	
 	

Utilities	
 	

15
	
12.	
 	

Assignment and Subleasing	
 	

15
	 	 	12.1	 	Prohibition	 	15
	 	 	12.2	 	Request for Consent	 	15
	 	 	12.3	 	Criteria for Consent	 	16
	 	 	12.4	 	Effectiveness of Transfer and Continuing Obligations	 	16
	 	 	12.5	 	Recapture	 	17
	 	 	12.6	 	Transfer Premium	 	17
	 	 	12.7	 	Waiver	 	17
	 	 	12.8	 	Special Transfer Prohibitions	 	17
	 	 	12.9	 	Affiliates	 	18
	
13.	
 	

Default; Remedies	
 	

18
	 	 	13.1	 	Default	 	18
	 	 	13.2	 	Remedies	 	19
	 	 	13.3	 	Late Charges	 	21
	
14.	
 	

Condemnation	
 	

21
	
15.	
 	

Estoppel Certificate and Financial Statements	
 	

22
	 	 	15.1	 	Estoppel Certificate	 	22
	 	 	15.2	 	Financial Statement	 	22
	
16.	
 	

Additional Covenants and Provisions	
 	

22
	 	 	16.1	 	Severability	 	22
	 	 	16.2	 	Interest on Past-Due Obligations	 	22
	 	 	16.3	 	Time of Essence	 	22
	 	 	16.4	 	Landlord Liability	 	22
	 	 	16.5	 	No Prior or Other Agreements	 	22
	 	 	16.6	 	Notice Requirements	 	23
	 	 	16.7	 	Date of Notice	 	23
	 	 	16.8	 	Waivers	 	23
	 	 	16.9	 	Holdover	 	23
	 	 	16.10	 	Cumulative Remedies	 	24
	 	 	16.11	 	Binding Effect: Choice of Law	 	24
	 	 	16.12	 	Landlord	 	24
	 	 	16.13	 	Attorneys' Fees and Other Costs	 	24
	 	 	16.14	 	Landlord's Access; Showing Premises; Repairs	 	24
	 	 	16.15	 	Signs	 	24
	 	 	16.16	 	Termination; Merger	 	24
	 	 	16.17	 	Quiet Possession	 	25

ii

 

	 	 	16.18	 	Subordination; Attornment; Non-Disturbance	 	25
	 	 	16.19	 	Rules and Regulations	 	25
	 	 	16.20	 	Security Measures	 	26
	 	 	16.21	 	Reservations	 	26
	 	 	16.22	 	Conflict	 	26
	 	 	16.23	 	Offer	 	26
	 	 	16.24	 	Amendments	 	26
	 	 	16.25	 	Multiple Parties	 	26
	 	 	16.26	 	Authority	 	26
	 	 	16.27	 	Recordation	 	26
	 	 	16.28	 	Confidentiality	 	26
	 	 	16.29	 	Landlord Renovations	 	26
	 	 	16.30	 	Waiver of Jury Trial	 	27
	 	 	16.31	 	Backup Generator	 	27
	 	 	16.32	 	Roof Space Equipment	 	28

iii

 
 
 

Glossary    
    

        The following terms in the Lease are defined in the paragraphs opposite the terms. 

	Term
 
	 	Defined in Paragraph

	Addendum	 	Addendum 2
	Additional Rent	 	4.1
	Affiliates	 	12.9
	Alteration/Alterations	 	7.3
	Amortized Excess TI Costs	 	Ex. F
	Applicable Requirements	 	6.3
	Appointment Notice	 	Addendum 2
	Architect	 	Ex. F
	Base Rent	 	1.4
	Basic Provisions	 	1
	Brokers	 	1.13
	Building	 	1.2
	Building Standards	 	Ex. F
	Code	 	12.8
	Commencement Date	 	1.3
	Commencement Date Certificate	 	3.3
	Common Areas	 	2.2
	Condemnation	 	14
	Construction Documents	 	Ex. F
	Contractor	 	Ex. F
	Default	 	13.1
	Early Possession	 	Addendum 1
	Early Possession Date	 	1.3
	Equipment	 	16.32
	Equipment Area	 	16.31
	Excess Tenant Improvement Costs	 	Ex. F
	Expiration Date	 	1.3
	Extended Term	 	Addendum 2
	Fair Market Rental Rate	 	Addendum 2
	Final Preliminary Plans and Specifications	 	Ex. F
	Generator Equipment	 	16.31
	HVAC	 	4.2(a)(ix)
	Hazardous Substance	 	6.2(a)
	Landlord	 	1.1
	Landlord Entities	 	6.2(c)
	Landlord Response Period	 	12.2
	Landlord's Determination Notice	 	Addendum 2
	Lease	 	1.1
	Lenders	 	6.4
	Mortgage	 	16.18(a)
	Operating Expenses	 	4.2
	Option	 	Addendum 2
	Option Notice	 	Addendum 2
	Party/Parties	 	1.1
	Permitted Use	 	1.8
	Plans and Specifications	 	12.3

iv

 

	Premises	 	1.2
	Preliminary Plans and Specifications	 	Ex. F
	Prevailing Party	 	16.13
	Proposed Effective Date	 	12.2
	R&D Park	 	1.2
	Real Property Taxes	 	10.2
	Recorded Matters	 	7.3
	Renovations	 	16.29
	Rent	 	4.1
	Reportable Use	 	6.2
	Requesting Party	 	15.1
	Responding Party	 	15.1
	Roof Space	 	16.32
	Rules and Regulations	 	2.4, 16.19
	Second Response Period	 	12.2
	Subject Space	 	12.2
	Tenant	 	1.1
	Tenant Acts	 	9.2
	Tenant Improvement Allowance	 	Ex. F
	Tenant Improvement Costs	 	Ex. F
	Tenant Improvements	 	Ex. F
	Tenant Move-In Questionnaire	 	6.5
	Tenant's Broker	 	Addendum 2
	Tenant's Entities	 	6.2(c)
	Tenant's Notice	 	12.2
	Tenant's Share	 	1.5
	Term	 	1.3
	Transfer Premium	 	12.6
	Transferee	 	12.1
	Transferee Hazmat Certificate	 	12.4
	Transfers	 	12.1
	Utility Expenses	 	11

v

   AMB Property Corporation

R&D Lease  

1.     Basic Provisions ("Basic Provisions").  

        1.1    Parties.    This Lease  ("Lease") dated February 22, 2008, is made by and between Headlands Realty Corporation, a
Maryland corporation ("Landlord") and Omneon Video Networks, Inc., a Delaware corporation  ("Tenant") (collectively, the "Parties" or individually,
a "Party"). 

        1.2    Premises.    The premises  ("Premises")
, which are the subject of this Lease, are located in the R&D park commonly known as the AMB
Lakeside Business Center (the "R&D Park"). The Premises are: 

        All
of the building ("Building") identified on  Exhibit A, consisting of approximately
68,608 rentable square feet and commonly known as 1237-1239 East Arques Avenue, Sunnyvale,
California. 

If
the Premises are all of the Building, there shall, for purposes of this Lease, be no distinction between the words "Premises" or  "Building."
Tenant shall have nonexclusive rights to the Common Areas (as defined in Paragraph 2.2 below) but shall not have any rights to the
roof (except as set forth in Paragraph 16.32), exterior walls, or utility raceways of the Building or to any other buildings in the R&D Park. The R&D Park consists of the Premises, the
Building, the Common Areas, the land upon which they are located, and all other improvements within the boundaries of the R&D Park, which are identified on  Exhibit A. 

        1.3    Term.    The "Early Possession Date"  shall be February 15, 2008 if on such
date possession of the Premises is delivered to Tenant, or the first date after the Early Possession Date on which possession is
tendered to Tenant, as more particularly described in Addendum 1. The "Commencement Date" shall be
the one hundred twentieth (120th) day after the Early Possession Date. The Term shall begin on the Commencement Date and end on the day immediately preceding the fifth
(5th) anniversary of the Commencement Date ("Term"). The last day of the Term is referred
to as the Expiration Date ("Expiration Date"). 

        1.4    Base Rent.    Base Monthly Rent  ("Base Rent")
 shall be payable as follows: 

	Months
 
	 	Base Rent Rate/Month
	 	Monthly Base Rent

	0-2	 	$	0.00	 	$	0
	3-12	 	$	1.70	 	$	116,633.60
	13-24	 	$	1.75	 	$	120,064.00
	25-36	 	$	1.80	 	$	123,494.40
	37-48	 	$	1.86	 	$	127,610.88
	49-60	 	$	1.91	 	$	131,041.28

        1.5    Tenant's Share of Operating Expenses ("Tenant's
Share").    100% 

        1.6    Tenant's Estimated Monthly Rent Payment.    Following is the
estimated monthly Rent payment to Landlord pursuant to the provisions of this Lease. This estimate is made at the inception of the Lease and is subject to adjustment pursuant to the provisions of this
Lease. The Estimated Total 

1

 

Monthly
Payment, set forth below, shall be paid upon the execution of this Lease for the first month of the Lease Term. 

	(a)	 	Base Rent (Paragraph 4.1)	 	$	116,633.60
	(b)	 	Operating Expenses (Paragraph 4.2, excluding Real Property Taxes, Landlord Insurance, and HVAC)	 	$	8,233.00
	(c)	 	Landlord Insurance (Paragraph 8.3)	 	$	2,058.00
	(d)	 	Real Property Taxes (Paragraph 10)	 	$	13,722.00
	

 	
 	

Estimated Total Monthly Payment	
 	
$	

140,646.60

        1.7    Security Deposit.    $131,041.28. 

        1.8    Permitted Use ("Permitted Use").    General office,
administrative, research and development, shipping and receiving products and equipment incidental to the business of Tenant, but only to the extent permitted by the City in which the Premises are
located and all agencies and governmental authorities having jurisdiction of the Premises. 

        1.9    Guarantor.    N/A 

        1.10    Addenda.    Attached hereto are the following Addenda, all of
which constitute a part of this Lease: 

	(a)	 	Addendum 1: Early Possession and Inducement Recapture
	(b)	 	Addendum 2: Option to Extend

        1.11    Exhibits.    Attached hereto are the following Exhibits, all
of which constitute a part of this Lease: 

	Exhibit A:	 	Description of Premises and R&D Park.
	Exhibit B:	 	Commencement Date Certificate.
	Exhibit C:	 	Tenant Move-in and Lease Renewal Environmental Questionnaire
	Exhibit D:	 	Move Out Standards
	Exhibit E:	 	Rules and Regulations
	Exhibit F:	 	Tenant Improvements

        1.12    Address for Rent Payments.    All amounts payable by Tenant to
Landlord shall, until further notice from Landlord, be paid to Landlord at the following address: 

Headlands
Realty Corporation, a Maryland corporation

c/o AMB Property Corporation

P.O. Box 6156

Hicksville, NY 11802-6156 

        1.13    Brokers.    Tenant represents that it has not dealt with any
real estate brokers or agents other than Craig L. Fordyce and Michael L. Rosendin of Colliers International representing Landlord and Brian McCorduck of Cushman & Wakefield and Steve Levere of
Jones Lang LaSalle representing Tenant (collectively, the "Brokers"). The Brokers shall receive commissions pursuant to a
separate listing agreement with Landlord. 

2.     Premises and Common Areas.  

        2.1    Letting.    Landlord hereby leases to Tenant and Tenant hereby
leases from Landlord the Premises upon all of the terms, covenants, and conditions, set forth in this Lease. Any statement of square footage set forth in this Lease or that may have been used in
calculating Base Rent and/or Operating Expenses is an approximation which Landlord and Tenant agree is reasonable, and the Base 

2

 

Rent
and Tenant's Share based thereon is not subject to revision whether or not the actual square footage is more or less. Tenant accepts the Premises in its present "As-Is" condition,
state of repair and operating order, except that Landlord shall deliver the Premises to Tenant with all Building systems, excluding the HVAC system, in good condition and repair. The Building's HVAC
system shall be delivered in its present "AS-IS" condition, state or repair and operating order. 

        2.2    Common
Areas—Definition.    "Common Areas" are all areas and facilities outside the Premises and within the
exterior boundary line of the R&D Park and interior utility raceways within the Premises that are provided and designated by the Landlord from time to time for the general nonexclusive use of
Landlord, Tenant, and other tenants of the R&D Park and their respective employees, suppliers, shippers, tenants, contractors, and invitees. 

        2.3    Common Areas—Tenant's Rights.    Landlord hereby
grants to Tenant, for the benefit of Tenant and its employees, suppliers, shippers, contractors, customers, and invitees, during the term of this Lease, the nonexclusive right to use, in common with
others entitled to such use, the Common Areas as they exist from time to time, subject to any rights, powers, and privileges reserved by Landlord under the terms hereof or under the terms of any rules
and regulations or covenants, conditions, and restrictions governing the use of the R&D Park. 

        2.4    Common Areas—Rules and Regulations.    Landlord
shall have the exclusive control and management of the Common Areas and shall have the right, from time to time, to establish, modify, amend, and enforce reasonable Rules and Regulations with respect
thereto in accordance with Paragraph 16.19. 

        2.5    Common Area Changes.    Landlord shall have the right, in
Landlord's sole discretion, from time to time: 

        (a)   To
make changes to the Common Areas, including, without limitation, changes in the locations, size, shape, and number of driveways, entrances, parking spaces, parking
areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways, and utility raceways, provided that the changes to the parking spaces will be made in accordance
with Paragraph 2.6; 

        (b)   To
close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available; 

        (c)   To
add improvements to the Common Areas; 

        (d)   To
use the Common Areas while engaged in making additional improvements, repairs, or alterations to the R&D Park, or any portion thereof; and 

        (e)   To
do and perform such other acts and make such other changes in, to, or with respect to the Common Areas and R&D Park as Landlord may, in the exercise of sound business
judgment, deem to be appropriate. 

        2.6    Parking.    Tenant may use 247 undesignated vehicle parking
spaces, on an unreserved and unassigned basis, on those portions of the Common Areas designated by Landlord for such parking without additional charge. Landlord shall exercise reasonable efforts to
ensure that such spaces are available to Tenant for its use, but Landlord shall not be required to enforce Tenant's right to use the same. Tenant shall not use more parking spaces than such number.
Such parking spaces shall be used only for parking by vehicles no larger than full sized passenger automobiles or pick-up trucks and, subject to Applicable Requirements, Tenant and
Tenant's Representatives may park vehicles overnight. Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant or Tenant's employees, suppliers, shippers, customers or
invitees to be loaded, unloaded or parked in areas other than those designated by Landlord for such activities. If Tenant permits or allows any of the prohibited activities described herein, then
Landlord shall have the right, without notice, in addition to such other 

3

 

rights
and remedies that it may have, to remove or tow away the vehicle involved and charge the cost to Tenant, which cost shall be immediately payable as additional rent upon demand by Landlord.
Landlord may not reduce the number of parking spaces but may change the configuration of the parking areas at any time, and may assign reserved parking spaces to any tenant, in Landlord's sole
discretion. 

3.     Term.  

        3.1    Term.    The Commencement Date, Expiration Date, and Term of
this Lease are as specified in Paragraph 1.3. 

        3.2    Delay in Possession.    If for any reason the Early Possession
Date has not occurred on or before April 1, 2008, Tenant may terminate and cancel this Lease by written notice delivered to Landlord no later than April 10, 2008, which notice shall be
effective upon receipt. In the event of such termination, Landlord shall promptly pay to Tenant all amounts previously paid by Tenant to Landlord. Except as otherwise set forth in this
Paragraph 3.2, Landlord shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease or the obligations of Tenant hereunder. In such case, Tenant
shall not, except as otherwise provided herein, be obligated to pay Rent or perform any other obligation of Tenant under the terms of this Lease until Landlord delivers possession of the Premises to
Tenant. 

        3.3    Commencement Date Certificate.    Upon Landlord's delivery of
the Premises to Tenant, Landlord and Tenant shall execute and deliver to the other a completed certificate ("Commencement Date
Certificate") in the form attached hereto as Exhibit B. 

4.     Rent.  

        4.1    Base Rent.    Except as set forth in Paragraph 4.2
below, Tenant shall pay to Landlord Base Rent and other monetary obligations of Tenant to Landlord under the terms of this Lease (such other monetary obligations are herein referred to as  "Additional Rent")
 in lawful money of the United States, without offset or deduction, in advance on or before the first (1st) day of each
month of the Term; provided, however, Tenant shall not be obligated to pay Base Rent for the first two (2) full months of the Term. Base Rent and Additional Rent for any period during the Term
hereof which is for less than one full month shall be prorated based upon the actual number of days of the month involved. Payment of Base Rent and Additional Rent shall be made to Landlord at its
address stated herein or to such other persons or at such other addresses as Landlord may from time to time designate in writing to Tenant. Base Rent and Additional Rent are collectively referred to
as "Rent." All monetary obligations of Tenant to Landlord under the terms of this Lease are deemed to be Rent. Tenant shall pay one month's Base Rent
and Additional Rent upon Tenant's execution and delivery of this Lease, which amount shall be credited to the Base Rent and Additional Rent first coming due hereunder. 

        4.2    Operating Expenses.    In accordance with Addendum 1 to this
Lease, commencing on the earlier of the Commencement Date or the date Tenant first conducts its business upon the Premises and thereafter on the first (1st) day of each month during the
Term, Tenant shall pay to Landlord, in addition to the Base Rent, Tenant's Share of all Operating Expenses in accordance with the following provisions. 

        (a)   "Operating Expenses" are all costs incurred by Landlord relating to the ownership and/or operation of the R&D Park,
Building, and Premises including, but not limited to, the following: 

          (i)  Expenses
relating to the ownership, management, maintenance, repair, replacement and/or operation of the Common Areas within the R&D Park, including, without
limitation, parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, 

4

 

parkways,
driveways, rail spurs, landscaped areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs, and/or tenant directories. 

         (ii)  Water,
gas, electricity, telephone, and other utilities not paid for directly by tenants of the R&D Park. 

        (iii)  Trash
disposal, snow removal, janitorial, security and the management and administration of any and all portions of the R&D Park, including, without limitation, a
property management fee, accounting, auditing, billing, postage, salaries and benefits for clerical and supervisory employees, whether located at the R&D Park or off-site, payroll taxes
and legal and accounting costs and all fees, licenses and permits related to the operation and management of the R&D Park. 

        (iv)  Real
Property Taxes with respect to the R&D Park. 

         (v)  Premiums
and all applicable deductibles for the insurance policies maintained by Landlord under Paragraph 8 below;  provided, however, any deductibles for
earthquake insurance shall be amortized over the greater of the
remaining months in the Term or eighty four (84) months, and Tenant shall pay Tenant's Share of such monthly amortized amount as follows: the monthly amortization shall be the sum of
(a) the quotient obtained by dividing the amount of the deductible by the greater of the remaining months in the Term or eighty four (84) months, plus (b) interest on such amount
at a rate equal to the lesser of ten percent (10%) per annum or the maximum annual interest rate permitted by law. 

        (vi)  Environmental
monitoring and insurance programs with respect to the R&D Park. 

       (vii)  Monthly
amortization of capital improvements to any portion of the R&D Park which are not expensed by Landlord. The monthly amortization of any such capital
improvement shall be the sum of the (a) quotient obtained by dividing the cost of the capital improvement by the number of months of useful life of such improvement (as determined in accordance
with generally accepted accounting principles) plus (b) an amount equal to the cost of the capital improvement times 1/12 of the lesser of 10% or the maximum annual interest rate
permitted by law. 

      (viii)  Maintenance
of the R&D Park, including, but not limited to, painting, caulking, and repair and replacement of Building components, including, but not limited to, roof
membrane, elevators, and fire detection and sprinkler systems. 

        (ix)  Heating,
ventilating, and air conditioning systems ("HVAC") the costs for which are not the sole responsibility of
Tenant; provided, if any HVAC replacement is required, the provisions of clause (vii) above shall apply to the extent such replacement constitutes a capital improvement. 

        (b)   Intentionally
omitted. 

        (c)   The
inclusion of the improvements, facilities, and services set forth in Subparagraph 4.2(a) shall not impose any obligation upon Landlord either to have said
improvements or facilities or to provide those services. 

        (d)   Tenant
shall pay monthly in advance, on the same day that the Base Rent is due, Tenant's Share of the expenses set forth in Paragraph 1.6. Landlord shall deliver
to Tenant within 90 days after the expiration of each calendar year a reasonably detailed statement showing Tenant's Share of the actual expenses incurred during the preceding year. If Tenant's
estimated payments under this Paragraph 4(d) during the preceding year exceed Tenant's Share as indicated on said statement, Tenant shall be credited the amount of such overpayment against
Tenant's Share of expenses next becoming due. If Tenant's estimated payments under this Paragraph 4.2(d) during 

5

 

said
preceding year were less than Tenant's Share as indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 10 days after delivery by Landlord to Tenant
of said statement. At any time Landlord may adjust the amount of the estimated Tenant's Share of expenses to reflect Landlord's reasonable estimate of such expenses for the year, provided that prior
to the effective date of such adjustment, Landlord shall deliver to Tenant a reasonably detailed written explanation of such adjustment. 

        (e)   Notwithstanding
anything to the contrary contained herein, for purposes of this Lease, the term "Operating Expenses"
shall not include the following: (i) costs (including permit, license, and inspection fees) incurred in renovating, improving, decorating, painting, or redecorating vacant space within the R&D
Park; (ii) legal and auditing fees (other than those fees reasonably incurred in connection with the ownership and operation of all or any portion of the R&D Park); (iii) leasing
commissions, advertising expenses, and other costs incurred in connection with the original leasing of the R&D Park or future re-leasing of any portion of the R&D Park;
(iv) depreciation of the Building or any other improvements situated within the R&D Park; (v) any items for which Landlord is actually reimbursed by any person including insurers;
(vi) costs of repairs or other work necessitated by fire, windstorm or other casualty (provided any deductibles shall be an Operating Expense to the extent set forth in Section 4.2(a)
above) and/or costs of repair or other work necessitated by the exercise of the right of eminent domain to the extent insurance proceeds or a condemnation award, as applicable, is actually received by
Landlord for such purposes; provided, such costs of repairs or other work shall be paid by the parties in accordance with the provisions of Sections 7, 8 and 9 below; (vii) other than
any interest charges as expressly provided for in this Lease, any interest or payments on any financing for any portion of the R&D Park, interest and penalties incurred as a result of Landlord's late
payment of any invoice (provided that Tenant pays Tenant's Share of expenses to Landlord when due as set forth herein), and any bad debt loss, rent loss or reserves for same; (viii) any
payments under a ground lease or master lease; (ix) capital improvements not described in clause (a)(vii) above; (x) fines, interest and penalties due to late payments made by
Landlord; and (xi) the cost of investigating, removing or otherwise remediating Hazardous Substances not caused to be present by Tenant or any of Tenant's Entities (defined below). 

        (f)    After
delivery to Landlord of at least thirty (30) days' prior written notice, Tenant, at its sole cost and expense through any accountant designated by it, shall
have the right to examine and/or audit the books and records evidencing such expenses for the previous one (1) calendar year, during Landlord's
reasonable business hours but not more frequently than once during any calendar year. Tenant may not compensate any such accountant on a contingency fee basis. The results of any such audit (and any
negotiations between the parties related thereto) shall be maintained strictly confidential by Tenant, its lawyers and its accounting firm and shall not be disclosed, published or otherwise
disseminated to any other party other than to Landlord and its authorized agents, except as otherwise required by Applicable Requirements or court order. Landlord and Tenant each shall use its
commercially reasonable efforts to cooperate in such negotiations and to promptly resolve any discrepancies between Landlord and Tenant in the accounting of such expenses. If through such audit it is
determined that there is a discrepancy of more than five percent (5%) in the total of actual Operating Expenses, then Landlord shall reimburse Tenant for the reasonable accounting costs and expenses
incurred by Tenant in performing such audit, including Tenant's in-house or outside auditors or accountants, such costs and expenses not to exceed $2,500.00. Landlord and Tenant shall pay
or reimburse, within thirty (30) days following completion of such audit, the other for any underpayment or overpayment of Operating Expenses. 

5.    Security Deposit.    Tenant shall deposit with Landlord upon Tenant's execution hereof the Security Deposit set forth in
Paragraph 1.7 as security for Tenant's faithful performance of Tenant's obligations 

6

 

under
this Lease. If Tenant fails to pay Base Rent or Additional Rent or otherwise defaults under this Lease (as defined in Paragraph 13.1), Landlord may use the Security Deposit for the
payment of any amount due Landlord or to reimburse or compensate Landlord for any liability, cost, expense, loss, or damage (including attorneys' fees) which Landlord may suffer or incur by reason
thereof. Tenant shall on demand pay Landlord the amount so used or applied so as to restore the Security Deposit to the amount set forth in Paragraph 1.7. Landlord shall not be required to keep
all or any part of the Security Deposit separate from its general accounts. Landlord shall, at the expiration or earlier termination of the Term hereof and after Tenant has vacated the Premises,
return to Tenant that portion of the Security Deposit not used or applied by Landlord. No part of the Security Deposit shall be considered to be held in trust, to bear interest, or to be prepayment
for any monies to be paid by Tenant under this Lease. 

6.     Use.  

        6.1    Permitted Use.    Tenant shall use and occupy the Premises only
for the Permitted Use set forth in Paragraph 1.8. Tenant shall not commit any nuisance, permit the emission of any objectionable noise or odor, suffer any waste, make any use of the Premises
which is contrary to any law or ordinance, or which will invalidate or increase the premiums for any of Landlord's insurance. Tenant shall not service, maintain, or repair vehicles on the Premises,
Building, or Common Areas. Tenant shall not store foods, pallets, drums, or any other materials outside the Premises. Tenant's use is subject to, and at all times Tenant shall comply with any and all
Applicable Requirements, defined below, related to Tenant's specific use of the Premises. Landlord reserves to itself the right, from time to time, to grant, without
the consent of Tenant, such easements, rights and dedications that Landlord deems reasonably necessary, and to cause the recordation of parcel or subdivision maps and/or restrictions, so long as such
easements, rights, dedications, maps and restrictions, as applicable, do not materially and adversely interfere with Tenant's operations in the Premises. Tenant agrees to sign any documents reasonably
requested by Landlord to effectuate any such easements, rights, dedications, maps or restrictions. Tenant shall not initiate, submit an application for, or otherwise request, any land use approvals or
entitlements with respect to the Premises or any other portion of the R&D Park, including without limitation, any variance, conditional use permit or rezoning, without first obtaining Landlord's prior
written consent thereto, which consent may be given or withheld in Landlord's sole discretion. 

        6.2    Hazardous Substances.    

        (a)   Reportable Uses Require Consent.    The term, "Hazardous
Substance," as used in this Lease, shall mean any product, substance, chemical, material, or waste whose presence, nature, quantity, and/or intensity of existence, use,
manufacture, disposal, transportation, spill, release, or effect, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to
the public health, safety or welfare, the environment, or the Premises; (ii) regulated or monitored by any governmental authority; or (iii) a basis for potential liability of Landlord to
any governmental agency or third party under any applicable statute or common law theory. Hazardous Substance shall include, but not be limited to, hydrocarbons, petroleum, gasoline, crude oil, or any
products or byproducts thereof. Tenant shall not engage in any activity in or about the Premises which constitutes a Reportable Use (as hereinafter defined) of Hazardous Substances without the express
prior written consent of Landlord and compliance in a timely manner (at Tenant's sole cost and expense) with all Applicable Requirements (as defined in Paragraph 6.3).  "Reportable Use" shall
mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration, or business plan is required to be filed with,
any governmental authority, and (iii) the presence in, on, or about the Premises of a Hazardous Substance with respect to which any Applicable Requirements require that a notice be given to
persons entering or occupying the 

7

 

Premises
or neighboring properties. Notwithstanding the foregoing, Tenant may, without Landlord's prior consent, but upon notice to Landlord and in compliance with all Applicable Requirements, use any
ordinary and customary materials reasonably required to be used by Tenant in the normal course of the Permitted Use, so long as such use is not a Reportable Use and does not expose the Premises or
neighboring properties to any meaningful risk of contamination or damage, or expose Landlord to any liability therefor. In addition, Landlord may (but without any obligation to do so) condition its
consent to any Reportable Use of any Hazardous Substance by Tenant upon Tenant's giving Landlord such additional assurances as Landlord, in its reasonable discretion, deems necessary to protect
itself, the public, the Premises, and the environment against damage, contamination, injury, and/or liability therefor, including but not limited to the installation (and, at Landlord's option,
removal on or before Lease expiration or earlier termination) of reasonably necessary protective modifications to the Premises (such as concrete encasements) and/or the deposit of an additional
Security Deposit. 

        (b)   Duty to Inform Landlord.    If Tenant knows that a Hazardous Substance is located in, under, or about the
Premises or the Building, Tenant shall immediately give Landlord written notice thereof, together with a copy of any statement, report, notice, registration, application, permit, business plan,
license, claim, action, or proceeding given to, or received from, any governmental authority or private party concerning the presence, spill, release, discharge of, or exposure to such Hazardous
Substance. Tenant shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises (including, without limitation, through the plumbing or sanitary
sewer system). 

        (c)   Tenant Indemnification.    Except to the extent caused by the gross active or gross passive negligence or
willful misconduct of Landlord or any Landlord Entity (as defined below) Tenant shall indemnify, protect, defend, and hold Landlord, Landlord's affiliates, Lenders, and the officers, directors,
shareholders, partners, employees, managers, independent contractors, attorneys, and agents of the foregoing ("Landlord Entities") and the Premises
harmless from and against any and all damages, liabilities, judgments, costs, claims, liens, expenses, penalties, loss of permits, and attorneys' and consultants' fees arising out of or involving any
Hazardous Substance brought onto the Premises by or for Tenant or by any of Tenant's employees, agents, contractors, servants, visitors, suppliers, or invitees (such employees, agents, contractors,
servants, visitors, suppliers, and invitees as herein collectively referred to as "Tenant Entities"). Tenant's obligations under this
Paragraph 6.2(c) shall include, but not be limited to, the effects of any contamination or injury to person, property, or the environment created or suffered by Tenant, and the cost of
investigation (including consultants' and attorneys' fees and testing), removal, remediation, restoration and/or abatement thereof, or of any contamination therein involved. Tenant's obligations under
this Paragraph 6.2(c) shall survive the Expiration Date or earlier termination of this Lease. 

        (d)   Tenant's Exculpation.    Tenant shall neither be liable for nor otherwise obligated to Landlord under any
provision of this Lease with respect to (i) any claim, remediation obligation, investigation obligation, liability, cause of action, attorney's fees, consultants' cost, expense or damage
resulting from any Hazardous Substance present in, on or about the Premises, the Building or the R&D Park to the extent neither caused nor otherwise permitted, directly or indirectly, by Tenant or the
Tenant Entities; or (ii) the removal, investigation, monitoring or remediation of any Hazardous Substance present in, on or about the Premises, the Building or the R&D Park caused by any
source, including third parties other than Tenant and the Tenant Entities, as a result of or in connection with the acts or omissions of persons other than Tenant or the Tenant Entities;  provided, however, Tenant shall be fully liable for and otherwise obligated to Landlord under the provisions of this Lease for all liabilities, costs,
damages, penalties, claims, judgments, expenses (including without limitation, attorneys' and experts' fees and costs) and losses to the extent (A) Tenant or any of the Tenant Entities
exacerbates the conditions caused by such 

8

 

Hazardous
Substances, or (B) Tenant and/or the Tenant Entities allows or permits persons over which Tenant or any of the Tenant Entities has control and/or for which Tenant or any of the Tenant
Entities are legally responsible for, to cause such Hazardous Substances to be present in, on, under, through or about any portion of the Premises, the Building or the R&D Park, or does not take all
reasonably appropriate actions to prevent such persons over which Tenant or any of the Tenant Entities has control and/or for which Tenant or any of the Tenant Entities are legally responsible from
causing the presence of Hazardous Substances in, on, under, through or about any portion of the Premises, the Building or the R&D Park. 

        6.3    Tenant's Compliance with Requirements.    Tenant shall, at
Tenant's sole cost and expense, fully, diligently, and in a timely manner comply with all "Applicable Requirements," which term is used in this Lease to
mean all laws, rules, regulations, ordinances, directives, covenants, easements, and restrictions of record, permits, the requirements of any applicable fire insurance underwriter or rating bureau,
and the recommendations of Landlord's engineers and/or consultants, relating in any manner to the Premises (including but not limited to matters pertaining to (a) industrial hygiene,
(b) environmental conditions on, in, under, or about the Premises, including soil and groundwater conditions, and (c) the use, generation, manufacture, production, installation,
maintenance, removal, transportation, storage, spill, or release of any Hazardous Substance), now in effect or which may hereafter come into effect. Tenant shall, within 5 days after receipt of
Landlord's written request, provide Landlord with copies of all documents and information evidencing Tenant's compliance with any Applicable Requirements, and shall immediately upon receipt notify
Landlord in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint, or report pertaining to or involving failure by Tenant or the
Premises to comply with any Applicable Requirements. 

        6.4    Inspection; Compliance with Law.    In addition to Landlord's
environmental monitoring and insurance program, the cost of which is included in Operating Expenses, Landlord and the holders of any mortgages, deeds of trust, or ground leases on the Premises  ("Lenders") shall have the right to enter the Premises at any time in the case of an emergency, and
otherwise at reasonable times and after giving reasonable advance notice (not to exceed 24 hours), for the purpose of inspecting the condition of the Premises and for verifying compliance by
Tenant with this Lease and all Applicable Requirements. Landlord shall be entitled to employ experts and/or consultants in connection therewith to advise Landlord with respect to Tenant's
installation, operation, use, monitoring, maintenance, or removal of any Hazardous Substance on or from the Premises. The costs and expenses of any such inspections shall be paid by the party
requesting same unless a violation of Applicable Requirements by Tenant or a Tenant Entity exists or is imminent, or the inspection is requested or ordered by a governmental authority. Tenant shall
upon request reimburse Landlord or Landlord's Lender, as the case may be, for the costs and expenses of such inspections in the event of a violation of Applicable Requirements by Tenant or a Tenant
Entity is found to exist. 

        6.5    Tenant Move-in Questionnaire.    Prior to executing
this Lease, Tenant has completed, executed and delivered to Landlord Tenant's Move-in and Lease Renewal Environmental Questionnaire (the "Tenant Move-in
Questionnaire"), a copy of which is attached hereto as Exhibit C and incorporated herein by this reference. Tenant
covenants, represents and warrants to Landlord that the information on the Tenant Move-in Questionnaire is true and correct and accurately describes the use(s) of Hazardous Substances
which will be made and/or used on the Premises by Tenant. 

        6.6    Landlord Indemnification.    With respect to only those
Hazardous Substances present on, in or under the R&D Park as of the date of this Lease (the "Existing Hazardous Substances"), Landlord agrees to indemnify, defend (with counsel reasonably acceptable
to Tenant) and hold Tenant harmless from and against any and all claims, judgments, damages, penalties, fines, liabilities, losses, suits, administrative proceedings and costs (including, but not
limited to, reasonable attorneys' and consultant fees and court costs), arising at any time during the Term of this Lease, to the extent arising from (1) any of the Existing Hazardous
Substances and/or (2) the removal, investigation, monitoring or 

9

 

remediation
of any of the Existing Hazardous Substances; provided, however, Landlord shall not indemnify, defend or hold Tenant harmless to the extent (x) Tenant or any of the Tenant Entities
contributes to or has contributed to the presence of such Existing Hazardous Substances or Tenant and/or any of the Tenant Entities exacerbates the conditions caused by such Existing Hazardous
Substances, or (y) Tenant and/or any of the Tenant Entities allows or permits persons over which Tenant or any of the Tenant Entities has control and/or for which Tenant or any of the Tenant
Entities are legally responsible for, to cause such Existing Hazardous Substances to be present in, on, under, through or about any portion of the Premises, the Building or the R&D Park, or does not
take all reasonably appropriate actions to prevent such persons over which Tenant or any of the Tenant Entities has control and/or for which Tenant or any of the Tenant Entities are legally
responsible from causing the presence of Existing Hazardous Substances in, on, under, through or about any portion of the Premises, the Building or the R&D Park. 

7.     Maintenance, Repairs, Trade Fixtures and Alterations.  

        7.1    Tenant's Obligations.    Subject to the provisions of
Paragraph 7.2 (Landlord's Obligations), Paragraph 9 (Damage or Destruction), and Paragraph 14 (Condemnation), Tenant shall, at Tenant's sole cost and expense and at all times,
keep the Premises and every part thereof in good order, condition, and repair (whether or not such portion of the Premises requiring repair, or the means of repairing the same, are reasonably or
readily accessible to Tenant and whether or not the need for such repairs occurs as a result of Tenant's use, any prior use, the elements, or the age of such portion of the Premises) including,
without limiting the generality of the foregoing, all equipment or facilities specifically serving the Premises, such as plumbing, heating, ventilating, air conditioning, electrical, lighting
facilities, boilers, fired or unfired pressure vessels, fire hose connectors if within the Premises, fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors,
plate glass, and skylights, but excluding any items which are the responsibility of Landlord pursuant to Paragraph 7.2 below. Tenant's obligations shall include restorations, replacements, or
renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition, and state of repair. Tenant shall also be solely responsible for the cost of all
repairs and replacements caused by the negligent acts or omissions or intentional misconduct by Tenant or Tenant's employees, contractors, agents, guests or invitees. If Tenant refuses or neglects to
perform its obligations under this paragraph to the reasonable satisfaction of Landlord, Landlord may, but without obligation to do so, at any time perform the same without Landlord having any
liability to Tenant for any loss or damage that may accrue to Tenant's Property or to Tenant's business by reason thereof. If Landlord performs any such obligations, Tenant shall pay to Landlord, as
Additional Rent, Landlord's costs and expenses incurred therefor. 

        7.2    Landlord's Obligations.    Subject to the provisions of
Paragraph 6 (Use), Paragraph 7.1 (Tenant's Obligations), Paragraph 9 (Damage or Destruction), and Paragraph 14 (Condemnation), Landlord, at its expense and not subject to
the reimbursement requirements of Paragraph 4.2, shall maintain and repair the roof structure, foundations and the structure of the exterior walls of the Building. Landlord, subject to
reimbursement pursuant to Paragraph 4.2, shall maintain and repair the Building roof membrane, Common Areas, and utility systems within the R&D Park which are outside of the Premises. 

        7.3    Alterations.    Tenant shall not install any signs, fixtures,
improvements, nor make or permit any other alterations or additions (individually, an "Alteration", and collectively, the  "Alterations") to
the Premises without the prior written consent of Landlord, except for any nonstructural Alteration that, on a per project basis,
costs less than Fifty Thousand Dollars ($50,000.00) and which does not affect the Building systems or the structural integrity or structural components of the Premises or the Building. In all events,
Tenant shall deliver at least ten (10) days prior notice to Landlord, from the date Tenant intends to commence construction, sufficient to enable Landlord to post a Notice of
Non-Responsibility 

10

 

and
Tenant shall obtain all permits or other governmental approvals prior to commencing any of such work and deliver a copy of same to Landlord. All Alterations shall be at Tenant's sole cost and
expense in accordance with plans and specifications which have been previously submitted to and approved in writing by Landlord, and shall be installed by a licensed, insured, and bonded contractor
(reasonably approved by Landlord) in compliance with all Applicable Requirements (including, but not limited to, the ADA), and all recorded matters  ("Recorded Matters") and rules and regulations of the R&D Park. In addition, all work with respect to
any Alterations must be done in a good and workmanlike manner. Landlord's approval of any plans, specifications or working drawings for Tenant's Alterations shall not create nor impose any
responsibility or liability on the part of Landlord for their completeness, design sufficiency, or compliance with any Applicable Requirements. At the time of approval, if requested to do so by Tenant
in writing at such time, Landlord will inform Tenant if Landlord requires Tenant to remove such Alteration upon termination or expiration of the Lease. In performing the work of any such Alterations,
Tenant shall have the work performed in such a manner as not to obstruct access to the R&D Park, or the Common Areas for any other tenant of the R&D Park, and as not to obstruct the business of
Landlord or other tenants in the R&D Park, or interfere with the labor force working in the R&D Park. As Additional Rent hereunder, Tenant shall reimburse Landlord, within ten (10) days after
demand, for actual legal, engineering, architectural, planning and other expenses incurred by Landlord in connection with Tenant's Alterations. If Tenant makes any Alterations, Tenant agrees to carry  "Builder's All
Risk" insurance, in an amount approved by Landlord and such other insurance as Landlord may require, it being understood and agreed that
all of such Alterations shall be insured by Tenant in accordance with the terms of this Lease immediately upon completion thereof. Tenant shall keep the Premises and the property on which the Premises
are situated free from any liens arising out of any work performed, materials furnished or obligations incurred by or on behalf of Tenant. Tenant shall, prior to construction of any and all
Alterations, cause its contractor(s) and/or major subcontractor(s) to provide insurance as reasonably required by Landlord, and Tenant shall provide such assurances to Landlord, including without
limitation, waivers of lien, surety company performance bonds as Landlord shall require to assure payment of the costs thereof to protect Landlord and the R&D Park from and against any loss from any
mechanic's, materialmen's or other liens. 

        7.4    Surrender/Restoration.    Tenant shall surrender the Premises
by the end of the last day of the Lease Term or any earlier termination date, clean and free of debris and in the condition originally received from Landlord, ordinary wear and tear excepted and in
accordance with the Move Out Standards set forth in Exhibit D to this Lease. Without limiting the generality of the above, Tenant shall remove
all personal property, trade fixtures, and floor bolts, patch all floors, and cause all lights to be in the condition delivered to Tenant. Tenant's obligation to remove Alterations on the expiration
or earlier termination of the Term shall be governed by the terms of Paragraph 7.3. Upon the expiration or earlier termination of the Term, Tenant shall not be required to remove those Tenant
Improvements (as defined in Exhibit F hereto) shown on the Final Preliminary Plans and Specifications (as defined in  Exhibit F hereto); provided,
however, Landlord shall have the right to require that Tenant remove any Tenant Improvements not shown on the Final
Preliminary Plans and Specifications; provided, further, in the event Tenant requests in writing, at the time Tenant delivers to Landlord for Landlord's approval the Final Plans and Specifications,
Construction Documents or any changes to the Construction Documents, that Landlord specify which of the Tenant Improvements shown therein Landlord shall require to be removed at the expiration or
earlier termination of the Term, Landlord agrees to so specify those Tenant Improvements shown therein which Landlord shall require to be removed. 

8.     Insurance; Indemnity.  

        8.1    Payment of Premiums and Deductibles.    The cost of the
premiums and all applicable deductibles, to the extent set forth in Paragraph 4.2, for the insurance policies maintained by Landlord under this Paragraph 8 shall be an Operating Expense
reimbursable pursuant to Paragraph 4.2 hereof. 

11

 

Premiums
for policy periods commencing prior to, or extending beyond, the term of this Lease shall be prorated to coincide with the corresponding Commencement Date and Expiration Date. 

        8.2    Tenant's Insurance.    

        (a)   At
its sole cost and expense, Tenant shall maintain in full force and effect during the Term of the Lease the following insurance coverages insuring against claims which
may arise from or in connection with the Tenant's operation and use of the Premises. 

          (i)  Commercial
General Liability insurance with minimum limits of $1,000,000 per occurrence and $3,000,000 general aggregate for bodily injury, personal injury, and
property damage. If required by Landlord, liquor liability coverage will be included. Such insurance shall be endorsed to include Landlord and Landlord Entities as additional insureds, shall be
primary and noncontributory with any Landlord insurance, and shall provide severability of interests between or among insureds. 

         (ii)  Workers'
Compensation insurance with statutory limits and Employers Liability with a $1,000,000 per accident limit for bodily injury or disease. 

        (iii)  Automobile
Liability insurance covering all owned, nonowned, and hired vehicles with a $1,000,000 per accident limit for bodily injury and property damage. 

        (iv)  Property
insurance against "all risks" at least as broad as the current ISO Special Form policy (and Tenant shall not be obligated to carry flood or earthquake coverage
provided Tenant agrees that Landlord shall not be liable for any damage or loss arising from flood or earthquake and Tenant waives and releases Landlord from all claims, losses, damages, liabilities,
judgments and costs arising from or related to Tenant's failure to carry such flood or earthquake coverage), for loss to any tenant improvements or betterments, floor and wall coverings, and business
personal property on a full insurable replacement cost basis with no coinsurance clause, and Business Income insurance covering at least six months of loss of income and continuing expense. 

        (b)   Tenant
shall deliver to Landlord certificates of all insurance reflecting evidence of required coverages prior to initial occupancy, and annually thereafter. 

        (c)   If,
in the opinion of Landlord's insurance advisor, the amount or scope of such coverage is deemed inadequate at any time during the Term, Tenant shall, within thirty
(30) days of receipt of Landlord's written notice regarding same, increase such coverage to such reasonable amounts or scope as Landlord's advisor deems adequate, provided that such additional
coverage shall be consistent with coverage customarily required to be carried for similar types of buildings within the vicinity of the R&D Park. 

        (d)   All
insurance required under Paragraph 8.2 (i) shall be issued by insurers licensed to do business in the state in which the Premises are located and which
are rated A:VII or better by Best's Key Rating Guide and (ii) shall be endorsed to provide at least 30-days prior notification of cancellation or material change in coverage to said
additional insureds. 

        8.3    Landlord's Insurance.    Landlord may, but shall not be
obligated to, maintain risk of direct physical loss property damage insurance coverage, including earthquake and flood, covering the buildings within the R&D Park, Commercial General Liability
insurance, and such other insurance in such amounts and covering such other liability or hazards as deemed appropriate by Landlord. The amount and scope of coverage of Landlord's insurance shall be
determined by Landlord from time to time in its sole discretion and shall be subject to such deductible amounts as Landlord may elect. Landlord shall have the right to reduce or terminate any
insurance or coverage. 

12

 

        8.4    Waiver of Subrogation.    To the extent permitted by law and
with permission of their insurance carriers, Landlord and Tenant each waive any right to recover against the other on account of any and all claims Landlord or Tenant may have against the other with
respect to property insurance actually carried, or required to be carried hereunder, to the extent of the proceeds realized from such insurance coverage. 

        8.5    Indemnity.    Except to the extent caused by the gross active
or gross passive negligence or willful misconduct of Landlord or Landlord's employees or agents, Tenant shall protect, defend, indemnify, and hold Landlord and Landlord Entities harmless from and
against any and all loss, claims, liability, or costs (including court costs and attorneys' fees) incurred by reason of: 

        (a)   any
damage to any property (including but not limited to property of any Landlord Entity) or death, bodily, or personal injury to any person occurring in or about the
Premises, the Building, or the R&D Park to the extent that such injury or damage shall be caused by or arise from any actual or alleged act, neglect, fault, omission or misconduct by or of Tenant, its
agents, servants, employees, invitees, contractors, suppliers, subtenants, or visitors; 

        (b)   the
conduct or management of any work or anything whatsoever done by the Tenant on or about the Premises or from transactions of the Tenant concerning the Premises; 

        (c)   Tenant's
failure to comply with any and all Applicable Requirements relating to the condition or use of the Premises or its occupancy; or 

        (d)   any
Default on the part of Tenant in the performance of any covenant or agreement to be performed pursuant to this Lease. 

        The
provisions of this Paragraph 8.5 shall, with respect to any claims or liability accruing prior to such termination, survive the Expiration Date or earlier termination of this
Lease. 

        8.6    Exemption of Landlord from Liability.    Except to the extent
caused by the gross active or gross passive negligence or willful misconduct of Landlord or Landlord's employees or agents, neither Landlord nor Landlord Entities shall be liable for and Tenant waives
any claims against Landlord and Landlord Entities for injury or damage to the person or the property of Tenant, Tenant's employees, contractors, invitees, customers or any other person in or about the
Premises, Building or R&D Park from any
cause whatsoever, including, but not limited to, damage or injury which is caused by or results from (i) fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction
or other defects of pipes, fire sprinklers, wires, appliances, plumbing, heating, ventilating, air conditioning or lighting fixtures or (ii) from the condition of the Premises, other portions
of the Building or R&D Park. Landlord shall not be liable for any damages arising from any act or neglect (passive or active) of any other tenants of Landlord or any subtenant or assignee of such
other tenants nor from the failure by Landlord to enforce the provisions of any other lease in the R&D Park. Notwithstanding Landlord's negligence (active or passive), gross negligence (active or
passive), or breach of this Lease, Landlord shall under no circumstances be liable for (a) injury to Tenant's business, for any loss of income or profit therefrom or any indirect, consequential
or punitive damages or (b) any damage to property or injury to persons arising from any act of God or war, violence or insurrection, including, but not limited to, those caused by earthquakes,
hurricanes, storms, drought, floods, acts of terrorism, and/or riots. 

9.     Damage or Destruction.  

        9.1    Termination Right.    If the Premises are damaged in whole or
in part by fire, the elements, or any other cause whatsoever, then Landlord shall restore the same to substantially the same condition existing immediately prior to such damage, unless the Lease is
terminated by Landlord or Tenant pursuant to this Paragraph 9.1. Tenant shall give Landlord immediate written notice of any damage to the Premises. Within sixty (60) days following such
damage, Landlord shall inform Tenant in writing of 

13

 

Landlord's
estimate of the time required to complete repairs to the Premises. Subject to the provisions of Paragraph 9.2, if the Premises or the Building shall be damaged to such an extent that
there is substantial interference for a period exceeding one hundred eighty (180) consecutive days with the conduct by Tenant of its business at the Premises, then either party, at any time
prior to commencement of repair of the Premises and following ten (10) days written notice to the other party, may terminate this Lease effective thirty (30) days after delivery of such
notice to the other party. Further, if any portion of the Premises is damaged and is not fully covered by the aggregate of insurance proceeds received by Landlord and any applicable deductible or if
the holder of any indebtedness secured by the Premises requires that the insurance proceeds be applied to such indebtedness, and Tenant does not voluntarily contribute any shortfall thereof to
Landlord, then Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within thirty (30) days after the date of notice to Tenant of any such
event. Additionally, if the repair of any such damage is not completed within one hundred eighty (180) days (regardless of the time estimated for completion of the repairs), Tenant shall have
the right to terminate this Lease by delivering written notice thereof to Landlord within thirty (30) days after the expiration of the 180-day period, with any such termination
effective thirty (30) days after delivery of the notice of termination, unless all such repairs are completed within such latter thirty (30) day period. Such termination shall not excuse
the performance by Tenant of those covenants which under the terms hereof survive termination. Rent shall be abated in proportion to the degree of interference during the period that there is such
substantial interference with the conduct of Tenant's business at the Premises. Abatement of rent and Tenant's right of termination pursuant to this provision shall be Tenant's sole remedy with
respect to any such damage regardless of the cause thereof. 

        9.2    Damage Caused by Tenant.    Tenant's termination rights under
Paragraph 9.1 shall not apply if the damage to the Premises or Building is the result of any act or omission of Tenant or of any of Tenant's agents, employees, customers, invitees, or
contractors. 

10.   Real Property Taxes.  

        10.1    Payment of Real Property Taxes.    Landlord shall pay the Real
Property Taxes due and payable during the term of this Lease and, except as otherwise provided in Paragraph 10.3, such payments shall be an Operating Expense reimbursable pursuant to
Paragraph 4.2. 

        10.2    Real Property Tax Definition.    As used herein, the term  "Real Property Taxes"
is any form of tax or assessment, general, special, ordinary, or extraordinary, imposed or levied upon (a) the R&D Park or
Building, (b) any interest of Landlord in the R&D Park or Building, (c) Landlord's right to rent or other income from the R&D Park or Building, and/or (d) Landlord's business of
leasing the Premises. Real Property Taxes include (a) any license fee, commercial rental tax, excise tax, improvement bond or bonds, levy, or tax; (b) any tax or charge which replaces or
is in addition to any of such above-described "Real Property Taxes," and (c) any fees, expenses, or costs (including attorneys' fees, expert
fees, and the like) incurred by Landlord in protesting or contesting any assessments levied or any tax rate. Real Property Taxes for tax years commencing prior to, or extending beyond, the term of
this Lease shall be prorated to coincide with the corresponding Commencement Date and Expiration Date. 

        10.3    Additional Improvements.    Operating Expenses shall not
include Real Property Taxes attributable to improvements placed upon the R&D Park by other tenants or by Landlord for the exclusive enjoyment of such other tenants. Tenant shall, however, pay to
Landlord at the time Operating Expenses are payable under Paragraph 4.2, the entirety of any increase in Real Property Taxes if assessed by reason of improvements placed upon the Premises by
Tenant or at Tenant's request. 

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        10.4    Joint Assessment.    If the Building is not separately
assessed, Real Property Taxes allocated to the Building shall be an equitable proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed. 

        10.5    Tenant's Property Taxes.    Tenant shall pay prior to
delinquency all taxes assessed against and levied upon Tenant's improvements, fixtures, furnishings, equipment, and all personal property of Tenant contained in the Premises or stored within the R&D
Park. 

11.    Utilities.    Tenant shall pay directly for all utilities and services supplied to the Premises, including but not limited to
electricity, telephone, security, gas, and cleaning of the Premises, together with any taxes thereon. For any such utility fees or services that are not billed or metered separately to Tenant,
including without limitation, water and sewer charges, and garbage and waste disposal (collectively, "Utility Expense"), Tenant
shall pay to Landlord Tenant's Share of Utility Expenses. Tenant shall also pay Tenant's Share of any assessments, charges, and fees included within any tax bill for the lot on which the Premises are
situated, including without limitation, entitlement fees, allocation unit fees, sewer use fees, and any other similar fees or charges. 

12.   Assignment and Subleasing.  

        12.1    Prohibition.    Tenant shall not, without the prior written
consent of Landlord, assign, mortgage, hypothecate, encumber, grant any license or concession, pledge or otherwise transfer this Lease or any interest herein, permit any assignment or other such
transfer of this Lease or any interest hereunder by operation of law, sublet the Premises or any part thereof, or permit the use of the Premises by any persons other than Tenant and Tenant's
Representatives (all of the foregoing are sometimes referred to collectively as "Transfers" and any person to whom any Transfer is made or sought to be
made is sometimes referred to as a "Transferee"). No consent to any Transfer shall constitute a waiver of the provisions of this
Section, and all subsequent Transfers may be made only with the prior written consent of Landlord, which consent shall not be unreasonably withheld, but which consent shall be subject to the
provisions of this Section. 

        12.2    Request for Consent.    If Tenant seeks to make a Transfer,
Tenant shall notify Landlord, in writing, and deliver to Landlord at least thirty (30) days (but not more than one hundred eighty (180) days) prior to the proposed commencement date of
the Transfer (the "Proposed Effective Date") the following information and documents (the "Tenant's
Notice"): (i) a description of the portion of the Premises to be transferred (the "Subject
Space"); (ii) all of the terms of the proposed Transfer including without limitation, the Proposed Effective Date, the name and address of the
proposed Transferee, and a copy of the existing or proposed assignment, sublease or other agreement governing the proposed Transfer; (iii) current financial statements of the proposed
Transferee certified by an officer, member, partner or owner thereof, and any such other information as Landlord may then reasonably require, including without limitation, audited financial statements
(if available) for the previous three (3) most recent consecutive fiscal years; (iv) the Plans and Specifications (defined below), if any; and (v) such other information as
Landlord may then reasonably require. Tenant shall give Landlord the Tenant's Notice by registered or certified mail addressed to Landlord at Landlord's Address specified in the Basic Lease
Information. Within thirty (30) days after Landlord's receipt of the Tenant's Notice (the "Landlord Response Period")
Landlord shall notify Tenant, in writing, of its determination with respect to such requested proposed Transfer and the election to recapture as set forth below. If Landlord does not elect to
recapture pursuant to the provisions hereof and Landlord does consent to the requested proposed Transfer, Tenant may thereafter assign its interests in and to this Lease or sublease all or a portion
of the Premises to the same party and on the same terms as set forth in the Tenant's Notice. If Landlord fails to respond to Tenant's Notice within Landlord's Response Period, then, after Tenant
delivers to Landlord ten (10) days written notice (the "Second Response Period") and Landlord fails to respond thereto
prior to the end of the Second Response Period, the proposed Transfer shall then be deemed approved by Landlord. 

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        12.3    Criteria for Consent.    Tenant acknowledges and agrees that,
among other circumstances for which Landlord could reasonably withhold consent to a proposed Transfer, it shall be reasonable for Landlord to withhold its consent where (a) a Default then
exists, (b) the use to be made of the Premises by the proposed Transferee is prohibited under this Lease or differs from the uses permitted under this Lease, (c) the proposed Transferee
or its business is subject to compliance with additional requirements of the
ADA beyond those requirements which are applicable to Tenant, unless the proposed Transferee shall (1) first deliver plans and specifications for complying with such additional requirements
(the "Plans and Specifications") and obtain Landlord's written consent thereto, and (2) comply with all Landlord's
conditions contained in such consent, (d) the proposed Transferee does not intend to occupy a substantial portion of the Premises assigned or sublet to it, (e) Landlord reasonably
disapproves of the proposed Transferee's business operating ability or creditworthiness of, or use proposed by, the proposed Transferee at the Premises, (f) the proposed Transferee is a
governmental agency or unit, (g) the proposed Transfer would violate any "exclusive" rights of any occupants in the R&D Park or cause Landlord to violate another agreement or obligation to
which Landlord is a party or otherwise subject, (h) Landlord otherwise determines that the proposed Transfer would have the effect of decreasing the value of the Building or the R&D Park, or
increasing the expenses associated with operating, maintaining and repairing the R&D Park, or (i) the proposed Transferee will use, store or handle Hazardous Materials (defined below) in or
about the Premises of a type, nature or quantity that could materially adversely affect the value of the Building or R&D Park. 

        12.4    Effectiveness of Transfer and Continuing Obligations.    Prior
to the date on which any permitted Transfer becomes effective, Tenant shall deliver to Landlord (i) a counterpart of the fully executed Transfer document, (ii) an executed Hazardous
Materials Disclosure Certificate substantially in the form of Exhibit C hereto (the "Transferee HazMat
Certificate"), and (iii) Landlord's form of Consent to Assignment or Consent to Sublease, as applicable, executed by Tenant and the Transferee in which each of Tenant
and the Transferee confirms its obligations pursuant to this Lease. Failure or refusal of a Transferee to execute any such consent instrument shall not release or discharge the Transferee from its
obligation to do so or from any liability as provided herein. The voluntary, involuntary or other surrender of this Lease by Tenant, or a mutual cancellation by Landlord and Tenant, shall not work a
merger, and any such surrender or cancellation shall, at the option of Landlord, either terminate all or any existing subleases or operate as an assignment to Landlord of any or all of such subleases.
Each permitted Transferee shall assume and be deemed to assume this Lease and shall be and remain liable jointly and severally with Tenant for payment of Rent (or with respect to a sublease, rent in
the amount set forth in the sublease) and for the due performance of, and compliance with all the terms, covenants, conditions and agreements herein contained on Tenant's part to be performed or
complied with, for that portion of the Term of this Lease on and following the date of such Transfer (and if a sublease, to the extent relating to the space so sublet). No Transfer shall affect the
continuing primary liability of Tenant (which, following assignment, shall be joint and several with the assignee), and Tenant shall not be released from performing any of the terms, covenants and
conditions of this Lease. An assignee of Tenant shall become directly liable to Landlord for all obligations of Tenant hereunder, but no Transfer by Tenant shall relieve Tenant of any obligations or
liability under this Lease whether occurring before or after such consent, assignment, subletting or other Transfer. The acceptance of any or all of the Rent by Landlord from any other person (whether
or not such person is an occupant of the Premises) shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any Transfer. If Tenant is a business entity, the
direct or indirect transfer of more than fifty percent (50%) of the ownership interest of the entity (whether in a single transaction or in the aggregate through more than one transaction) shall be
deemed a Transfer (provided, however, that (i) issuances (in the aggregate) by Tenant of equity accounting for forty-nine percent (49%) or less of the ownership interest of Tenant
shall not be taken into account in determining if a deemed Transfer has occurred and (ii) the initial public offering of Tenant's stock on a nationally recognized stock exchange shall not be
deemed a Transfer under this Lease) and shall be 

16

 

subject
to all the provisions hereof and in such event, it shall be a condition to Landlord's consent to such ownership change that such entities or persons acquiring such ownership interest assume,
as a primary obligor, all rights and obligations of Tenant under this Lease (and such entities and persons shall execute all documents reasonably required to effectuate such assumption). Any and all
options, first rights of refusal, tenant improvement allowances and other similar rights granted to Tenant in this Lease, if any, shall not be assignable by Tenant unless expressly authorized in
writing by Landlord (which shall be in Landlord's sole discretion). Any transfer made without Landlord's prior written consent, shall, at Landlord's option, be null, void and of no effect, and shall,
at Landlord's option, constitute a material default by Tenant of this Lease. As Additional Rent hereunder, Tenant shall pay to Landlord each time it requests a Transfer, an administrative fee in the
amount of one thousand dollars ($1,000) and, in addition, Tenant shall promptly reimburse Landlord for out of pocket legal and other reasonable expenses incurred by Landlord in connection with any
actual or proposed Transfer. 

        12.5    Recapture.    Landlord may recapture the Subject Space
described in the Tenant's Notice if, and only if, Tenant is seeking to sublet more than fifty percent (50%) of the Premises for a period equal to or greater than eighty percent (80%) of the remainder
of the Term, by giving written notice of recapture to Tenant; provided any such written notice to Tenant shall be given by Landlord within the time
periods provided for such written notice in Paragraph 12.2 of this Lease. If such written recapture notice is given, it shall serve to terminate this Lease with respect to the proposed Subject
Space, or, if the proposed Subject Space covers all the Premises, it shall serve to terminate the entire Term of this Lease, in either case, as of the Proposed Effective Date. However, no termination
of this Lease with respect to part or all of the Premises shall become effective without the prior written consent, where necessary, of the holder of each deed of trust encumbering the Premises or any
other portion of the R&D Park. If this Lease is terminated pursuant to the foregoing provisions with respect to less than the entire Premises, the Rent shall be adjusted on the basis of the proportion
of rentable square feet retained by Tenant to the rentable square feet originally demised and this Lease as so amended shall continue thereafter in full force and effect. Notwithstanding anything to
the contrary contained in this Lease, within ten (10) business days after Tenant's receipt of such written recapture notice, Tenant may deliver to Landlord a written withdrawal notice which
shall negate and void for all purposes Tenant's request for consent which shall be treated as never having been given. 

        12.6    Transfer Premium.    If Landlord consents to a Transfer, as a
condition thereto, Tenant shall pay to Landlord monthly, as Additional Rent, at the same time as the monthly installments of Rent are payable hereunder, fifty percent (50%) of any Transfer Premium.
The term "Transfer Premium" shall mean all rent, additional rent and other consideration payable by such Transferee which either initially or over the
term of the Transfer exceeds the Rent or pro rata portion of the Rent, as the case may be, for such space reserved in the Lease less all reasonable and actual legal fees and leasing commissions
incurred by Tenant in connection with such Transfer. 

        12.7    Waiver.    Notwithstanding any Transfer, or any indulgences,
waivers or extensions of time granted by Landlord to any Transferee, or failure by Landlord to take action against any Transferee, Tenant agrees that Landlord may, at its option, proceed against
Tenant without having taken action against or joined such Transferee, except that Tenant shall have the benefit of any indulgences, waivers and extensions of time granted to any such Transferee. 

        12.8    Special Transfer Prohibitions.    Notwithstanding anything set
forth above to the contrary, Tenant may not (a) sublet the Premises or assign this Lease to any person or entity in which Landlord owns an interest, directly or indirectly (by applying
constructive ownership rules set forth in Section 856(d)(5) of the Internal Revenue Code (the "Code"); or (b) sublet the Premises or
assign this Lease in any other manner which could cause any portion of the amounts received by Landlord pursuant to this Lease or any sublease to fail to qualify as "rents from real property" within
the meaning of Section 856(d) of the Code, or which could cause any other income received by Landlord to fail to qualify as income described in Section 856(c)(2) of the Code. 

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        12.9    Affiliates.    The assignment or subletting by Tenant of all
or any portion of this Lease or the Premises to (i) a parent or subsidiary of Tenant, or (ii) any person or entity which controls, is controlled by or under the common control with
Tenant, or (iii) any entity which purchases all or substantially all of the assets of Tenant, or (iv) any entity into which Tenant is merged or consolidated (all such persons or entities
described in clauses (i), (ii), (iii) and (iv) being sometimes herein referred to as "Affiliates") shall not be subject to
obtaining Landlord's prior consent and no Transfer Premium shall be payable, provided in all instances that: 

        (a)   any
such Affiliate was not formed as a subterfuge to avoid the obligations of this Article 12; 

        (b)   Tenant
gives Landlord prior notice of any such assignment or sublease to an Affiliate, except solely for those assignments or subleases in connection with which any
applicable law precludes Tenant's delivery to Landlord of prior notice of said assignment or sublease then, in all such instances, Tenant shall deliver to Landlord subsequent notice of said assignment
or sublease within ten (10) days following the first (1st) day on which Tenant is permitted by law to deliver notice of such assignment or sublease to Landlord; 

        (c)   the
successor of Tenant shall have, at the time of Transfer to an Affiliate, a tangible net worth and net assets, in the aggregate, computed in accordance with generally
accepted accounting principles (but excluding goodwill as an asset), which is sufficient to meet the obligations of Tenant under this Lease, as reasonably determined by Landlord; 

        (d)   any
such assignment or sublease shall be subject to all of the terms and provisions of this Lease, and such assignee or sublessee (i.e. any such Affiliate), other
than in the case of an Affiliate resulting from a merger or consolidation, shall assume, in a written document reasonably satisfactory to Landlord and delivered to Landlord upon or prior to the
effective date of such assignment or sublease, all the obligations of Tenant under this Lease; and 

        (e)   Tenant
and any guarantor shall remain fully liable for all obligations to be performed by Tenant under this Lease, except in the event of a merger. 

13.   Default; Remedies.  

        13.1    Default.    The occurrence of any one of the following events
shall constitute an event of default on the part of Tenant ("Default"): 

        (a)   The
abandonment of the Premises by Tenant (as defined in California Civil Code Section 1951.3); 

        (b)   Failure
to pay any installment of Base Rent, Additional Rent, or any other monies due and payable hereunder, said failure continuing for a period of 5 business days
after receipt of Landlord's written notice that such amount is due. Tenant agrees that any such written notice delivered by Landlord shall, to the fullest extent permitted by law, serve as the
statutorily required notice under applicable law to the extent Tenant fails to cure such failure to pay within such 5 business day period. In addition to the foregoing, Tenant agrees to notice and
service of notice as provided for in accordance with applicable statutory requirements; 

        (c)   A
general assignment by Tenant or any guarantor for the benefit of creditors; 

        (d)   The
filing of a voluntary petition of bankruptcy by Tenant or any guarantor; the filing of a voluntary petition for an arrangement; the filing of a petition, voluntary
or involuntary, for reorganization; or the filing of an involuntary petition by Tenant's creditors or guarantors; 

        (e)   Receivership,
attachment, or other judicial seizure of the Premises or all or substantially all of Tenant's assets on the Premises; 

18

 

        (f)    Failure
of Tenant to maintain insurance as required by Paragraph 8.2, provided Landlord has notified Tenant of a violation of Paragraph 8.2 and Tenant has
failed to cure such violation within 10 business days of such notice; 

        (g)   Any
breach by Tenant of its covenants under Paragraph 6.2 and such breach remains uncured for 10 business days following written notice from Landlord; 

        (h)   Failure
in the performance of any of Tenant's covenants, agreements, or obligations hereunder (except those failures specified as events of Default in other Paragraphs
of this Paragraph 13.1 which shall be governed by such other Paragraphs), which failure continues for 10 business days after written notice thereof from Landlord to Tenant; provided that, if
Tenant has exercised reasonable diligence to cure such failure and such failure cannot be cured within such 10 business-day period despite reasonable diligence, Tenant shall not be in
default under this subparagraph unless Tenant fails thereafter diligently and continuously to prosecute the cure to completion; 

        (i)    Any
transfer of a substantial portion of the assets of Tenant, or any incurrence of a material obligation by Tenant, unless such transfer or obligation is undertaken or
incurred in the ordinary course of Tenant's business, or in good faith for equivalent consideration, or with Landlord's consent; and 

        (j)    The
default of any guarantors of Tenant's obligations hereunder under any guaranty of this Lease, or the attempted repudiation or revocation of any such guaranty. 

        13.2    Remedies.    In the event of any Default by Tenant, Landlord
shall have any or all of the following remedies: 

        (a)   Termination.    In the event of any Default by Tenant, then in addition to any other remedies available to
Landlord at law or in equity and under this Lease, Landlord shall have the immediate option to terminate this Lease and all rights of Tenant hereunder by giving written notice of such intention to
terminate. In the event that Landlord shall elect to so terminate this Lease then Landlord may recover from Tenant: 

        (1)   the
worth at the time of award of any unpaid Rent and any other sums due and payable which have been earned at the time of such termination; plus 

        (2)   the
worth at the time of award of the amount by which the unpaid Rent and any other sums due and payable which would have been earned after termination until the time of
award exceeds the amount of such rental loss Tenant proves could have been reasonably avoided; plus 

        (3)   the
worth at the time of award of the amount by which the unpaid Rent and any other sums due and payable for the balance of the term of this Lease after the time of
award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus 

        (4)   any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in
the ordinary course would be
likely to result therefrom, including, without limitation, any costs or expenses incurred by Landlord (i) in retaking possession of the Premises; (ii) in maintaining, repairing,
preserving, restoring, replacing, cleaning, the Premises or any portion thereof, including such acts for reletting to a new lessee or lessees; (iii) for leasing commissions; or (iv) for
any other costs necessary or appropriate to relet the Premises; plus 

        (5)   such
reasonable attorneys' fees incurred by Landlord as a result of a Default, and costs in the event suit is filed by Landlord to enforce such remedy; and plus 

19

 

        (6)   at
Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law. As used in
subparagraphs (1) and (2) above, the "worth at the time of award" is computed by allowing interest at an annual rate equal to ten percent (10%) per annum or the maximum rate permitted by
law, whichever is less. As used in subparagraph (3) above, "the worth at the time of award" is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award, plus one percent (1%). Tenant waives redemption or relief from forfeiture under California Code of Civil Procedure Sections 1174 and 1179, or under any other
present or future law, in the event Tenant is evicted or Landlord takes possession of the Premises by reason of any Default of Tenant hereunder. 

        (b)   Continuation of Lease.    In the event of any Default by Tenant, then in addition to any other remedies
available to Landlord at law or in equity and under this Lease, Landlord shall have the remedy described in California Civil Code Section 1951.4 (Landlord may continue this Lease in effect
after Tenant's Default and abandonment and recover Rent as it becomes due, provided tenant has the right to sublet or assign, subject only to reasonable limitations). 

        (c)   Re-entry.    In the event of any Default by Tenant, Landlord shall also have the right, with or
without terminating this Lease, in compliance with applicable law, to re-enter the Premises and remove all persons and property from the Premises; such property may be removed and stored
in a public warehouse or elsewhere at the cost of and for the account of Tenant. 

        (d)   Reletting.    In the event of the abandonment of the Premises by Tenant or in the event that Landlord shall
elect to re-enter or shall take possession of the Premises pursuant to legal proceeding or pursuant to any notice provided by law, then if Landlord does not elect to terminate this Lease
as provided in Paragraph a, Landlord may from time to time, without terminating this Lease, relet the Premises or any part thereof for such term or terms and at such rental or rentals and upon
such other terms and conditions as Landlord in its sole discretion may deem advisable with the right to make alterations and repairs to the Premises. In the event that Landlord shall elect to so
relet, then rentals received by Landlord from such reletting shall be applied in the following order: (1) to
reasonable attorneys' fees incurred by Landlord as a result of a Default and costs in the event suit is filed by Landlord to enforce such remedies; (2) to the payment of any indebtedness other
than Rent due hereunder from Tenant to Landlord; (3) to the payment of any costs of such reletting; (4) to the payment of the costs of any alterations and repairs to the Premises;
(5) to the payment of Rent due and unpaid hereunder; and (6) the residue, if any, shall be held by Landlord and applied in payment of future Rent and other sums payable by Tenant
hereunder as the same may become due and payable hereunder. Should that portion of such rentals received from such reletting during any month, which is applied to the payment of Rent hereunder, be
less than the Rent payable during the month by Tenant hereunder, then Tenant shall pay such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. Tenant shall also pay to
Landlord, as soon as ascertained, any costs and expenses incurred by Landlord in such reletting or in making such alterations and repairs not covered by the rentals received from such reletting. 

        (e)   Termination.    No re-entry or taking of possession of the Premises by Landlord pursuant to this
Addendum shall be construed as an election to terminate this Lease unless a written notice of such intention is given to Tenant or unless the termination thereof is decreed by a court of competent
jurisdiction. Notwithstanding any reletting without termination by Landlord because of any Default by Tenant, Landlord may at any time after such reletting elect to terminate this Lease for any such
Default. 

        (f)    Cumulative Remedies.    The remedies herein provided are not exclusive and Landlord shall have any and all
other remedies provided herein or by law or in equity. 

20

 

        (g)   No Surrender.    No act or conduct of Landlord, whether consisting of the acceptance of the keys to the
Premises, or otherwise, shall be deemed to be or constitute an acceptance of the surrender of the Premises by Tenant prior to the expiration of the Term, and such acceptance by Landlord of surrender
by Tenant shall only flow from and must be evidenced by a written acknowledgment of acceptance of surrender signed by Landlord. The surrender of this Lease by Tenant, voluntarily or otherwise, shall
not work a merger unless Landlord elects in writing that such merger take place, but shall operate as an assignment to Landlord of any and all existing subleases, or Landlord may, at its option, elect
in writing to treat such surrender as a merger terminating Tenant's estate under this Lease, and thereupon Landlord may terminate any or all such subleases by notifying the sublessee of its election
so to do within five (5) days after such surrender. 

        (h)   Notice Provisions.    Tenant agrees that any notice given by Landlord pursuant to Paragraph 13.1 of the
Lease shall satisfy the requirements for notice under California Code of Civil Procedure Section 1161, and Landlord shall not be required to give any additional notice in order to be entitled
to commence an unlawful detainer proceeding. Should Landlord prepare any notice to Tenant for failure to pay rent, additional rent or perform any other obligation under the Lease, Tenant shall pay to
Landlord, without any further notice from Landlord, the additional sum of $75.00 which the parties hereby agree
represents a fair and reasonable estimate of the costs Landlord will incur by reason of preparing such notice. 

        13.3    Late Charges.    Tenant hereby acknowledges that late payment
by Tenant to Landlord of Rent and other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such
costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of Rent or other sum due from Tenant shall not be received by Landlord or Landlord's designee
within 4 days after such amount shall be due, then, without any requirement for notice to Tenant, Tenant shall pay to Landlord a late charge equal to 5% of such overdue amount. The parties
hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in
no event constitute a waiver of Tenant's Default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder, provided that,
Landlord will not impose any late fee upon the first late payment of Rent, if any, during each 12 month period following the Commencement Date unless Tenant fails to make the applicable payment
within five (5) business days after written notice of such delinquency is given by Landlord. In addition, should Landlord be unable to negotiate any payment made by Tenant on the first attempt
by Landlord and without any notice to Tenant, Tenant shall pay to Landlord a fee of $50.00 per item which the parties hereby agree represents a fair and reasonable estimate of the costs Landlord will
incur by reason of Landlord's inability to negotiate such item(s). 

14.    Condemnation.    If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat
of exercise of said power (all of which are herein called "Condemnation"), this Lease shall terminate as to the part so taken as
of the date the condemning authority takes title or possession, whichever first occurs. If more than 10% of the floor area of the Premises, or more than 25% of the portion of the Common Areas
designated for Tenant's parking, is taken by condemnation, Tenant may, at Tenant's option, to be exercised in writing within 10 days after Landlord shall have given Tenant written notice of
such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken possession), terminate this Lease as of the date the condemning authority takes
such possession. If Tenant does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the
Base Rent shall be reduced in the same proportion as the rentable floor area of the Premises taken bears to the total rentable floor area of the Premises. No reduction of Base Rent shall occur if the
condemnation does not apply to any portion of the Premises. Any award 

21

 

for
the taking of all or any part of the Premises under the power of eminent domain or any payment made under threat of the exercise of such power shall be the property of Landlord; provided, however,
that Tenant shall be entitled to any compensation, separately awarded to Tenant, for Tenant's relocation expenses and/or loss of Tenant's trade fixtures. In the event that this Lease is not terminated
by reason of such condemnation, Landlord shall to the extent of its net severance damages in the condemnation matter, repair any damage to the Premises caused by such condemnation authority. 

15.   Estoppel Certificate and Financial Statements.  

        15.1    Estoppel Certificate.    Each party (herein referred to as  "Responding Party")
shall within 10 days after written notice from the other Party (the "Requesting
Party") execute, acknowledge, and deliver to the Requesting Party, to the extent it can truthfully do so, an estoppel certificate in a form reasonably acceptable to Landlord,
or any of Landlord's lenders or any prospective purchasers of the Premises or the R&D Park as the case may be, plus such additional information, confirmation, and statements as be reasonably requested
by the Requesting Party. Should Tenant fail to deliver an executed and acknowledged estoppel certificate to Landlord as prescribed herein, Tenant hereby authorizes Landlord to act as Tenant's
attorney-in-fact in executing such estoppel certificate. 

        15.2    Financial Statement.    If Landlord desires to finance,
refinance, or sell the Building, R&D Park, or any part thereof, Tenant and all Guarantors shall deliver to any potential lender or purchaser designated by Landlord such financial statements of Tenant
and such Guarantors as may be reasonably required by such lender or purchaser, including but not limited to Tenant's financial statements for the past 3 years. All such financial statements
shall be received by Landlord and such lender or purchaser in confidence and shall be used only for the purposes herein set forth. 

16.   Additional Covenants and Provisions.  

        16.1    Severability.    The invalidity of any provision of this
Lease, as determined by a court of competent jurisdiction, shall not affect the validity of any other provision hereof. 

        16.2    Interest on Past-Due
Obligations.    Any monetary payment due Landlord hereunder not received by Landlord within 10 days following the date on which it was
due shall bear interest from the date due at 12% per annum, but not exceeding the maximum rate allowed by law in addition to the late charge provided for in Paragraph 13.3. 

        16.3    Time of Essence.    Time is of the essence with respect to the
performance of all obligations to be performed or observed by the Parties under this Lease. 

        16.4    Landlord Liability.    Tenant, its successors, and assigns
shall not assert nor seek to enforce any claim for breach of this Lease against any of Landlord's assets other than Landlord's interest in the R&D Park. Tenant agrees to look solely to such interest
for the satisfaction of any liability or claim against Landlord under this Lease. In no event whatsoever shall Landlord (which term shall include, without
limitation, any general or limited partner, trustees, beneficiaries, officers, directors, or stockholders of Landlord) ever be personally liable for any such liability. 

        16.5    Entire Agreement.    It is understood and acknowledged that
there are no oral agreements between the parties hereto affecting this Lease and this Lease supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements and
understandings, if any, between the parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease.
This Lease and any side letter or separate agreement executed by Landlord and Tenant in connection with this Lease and dated of even date herewith contain all of the terms, covenants, conditions,
warranties and agreements of the parties relating in any manner to the rental, use and occupancy of the Premises, shall be considered to be the only agreement between the parties hereto and their
representatives and agents, and none of the terms, 

22

 

covenants,
conditions or provisions of this Lease can be modified, deleted or added to except in writing signed by the parties hereto. All negotiations and oral agreements acceptable to both parties
have been merged into and are included herein. There are no other representations or warranties between the parties, and all reliance with respect to representations is based totally upon the
representations and agreements contained in this Lease. The parties acknowledge that (i) each party and/or its counsel have reviewed and revised this Lease, and (ii) no rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall be employed in the interpretation or enforcement of this Lease or any amendments or exhibits to this
Lease or any document executed and delivered by either party in connection with this Lease. 

        16.6    Notice Requirements.    All notices required or permitted by
this Lease shall be in writing and may be delivered in person (by hand, messenger, or courier service) or may be sent by certified or registered mail or U.S. Postal Service Express Mail, with postage
prepaid, or by facsimile transmission during normal business hours, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 16.6. The addresses noted adjacent
to a Party's signature on this Lease shall be that Party's address for delivery or mailing of notice purposes. Either Party may by written notice to the other specify a different address for notice
purposes, except that upon Tenant's taking possessing of the Premises, the Premises shall constitute Tenant's address for the purpose of mailing or delivering notices to Tenant. A copy of all notices
required or permitted to be given to Landlord hereunder shall be concurrently transmitted to such party or parties at such addresses as Landlord may from time to time hereafter designate by written
notice to Tenant. 

        16.7    Date of Notice.    Any notice sent by registered or certified
mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. Notices delivered by United States
Express Mail or an overnight courier that guarantees next day delivery shall be deemed given 24 hours after delivery of the same to the United States Postal Service or courier. If any notice is
transmitted by facsimile transmission or similar means, the same shall be deemed served or delivered upon telephone or facsimile confirmation of receipt of the transmission thereof, provided a copy is
also delivered via hand or overnight delivery or certified mail. If notice is received on a Saturday, Sunday, or legal holiday, it shall be deemed received on the next business day. 

        16.8    Waivers.    No waiver by Landlord of a Default by Tenant shall
be deemed a waiver of any other term, covenant, or condition hereof, or of any subsequent Default by Tenant of the same or any other term, covenant, or condition hereof. In addition the acceptance by
Landlord of any rent or other payment after it is due, whether or not a notice of default has been served or any action (including, without limitation, an unlawful detainer action) has been filed by
Landlord thereon, shall not be deemed a waiver of Landlord's rights to proceed on any notice of default or action which has been filed against Tenant based upon Tenant's breach of the Lease. 

        16.9    Holdover.    Tenant has no right to retain possession of the
Premises or any part thereof beyond the expiration or earlier termination of this Lease. If Tenant holds over with the consent of Landlord: (a) the Base Rent payable shall be increased to 150%
of the Base Rent applicable during the month immediately preceding such expiration or earlier termination; (b) Tenant's right to possession shall terminate on 30 days notice from
Landlord; and (c) all other terms and conditions of this Lease shall continue to apply. Nothing contained herein shall be construed as a consent by Landlord to any holding over by Tenant.
Tenant shall indemnify, defend, and hold Landlord harmless from and against any and all claims, demands, actions, losses, damages, obligations, costs, and expenses, including, without limitation,
attorneys' fees incurred or suffered by Landlord by reason of Tenant's failure to surrender the Premises on the expiration or earlier termination of this Lease in accordance with the provisions of
this Lease. 

23

 

        16.10    Cumulative Remedies.    No remedy or election hereunder shall
be deemed exclusive but shall, wherever possible, be cumulative with all other remedies in law or in equity. 

        16.11    Binding Effect: Choice of Law.    This Lease shall be binding
upon the Parties, their personal representatives, successors, and assigns, and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto
concerning this Lease shall be initiated in the county in which the Premises are located. 

        16.12    Landlord.    The covenants and obligations contained in this
Lease on the part of Landlord are binding on Landlord, its successors, and assigns only during their respective period of ownership of an interest in the Building. In the event of any transfer or
transfers of such title to the Building, Landlord (and, in the case of any subsequent transfers or conveyances, the then grantor) shall be concurrently freed and relieved from and after the date of
such transfer or conveyance, without any further instrument or agreement, of all liability with respect to the performance of any covenants or obligations on the part of Landlord contained in this
Lease thereafter to be performed, provided that the transferee, successor or assignee has agreed in writing to assume all liabilities and obligations of the Landlord under this Lease first arising or
accruing after the date of transfer. 

        16.13    Attorneys' Fees and Other Costs.    If any Party brings an
action or proceeding to enforce the terms hereof or declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding shall be entitled to reasonable attorneys' fees. The
term "Prevailing Party" shall include, without limitation, a Party who substantially obtains or defeats the relief sought. Landlord shall be entitled to
attorneys' fees, costs, and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in
connection with such Default or resulting breach. Tenant shall reimburse Landlord on demand for all reasonable legal, engineering, and other professional services expenses incurred by Landlord in
connection with all requests by Tenant or any lender of Tenant for consent, waiver or approval of any kind. 

        16.14    Landlord's Access; Showing Premises; Repairs.    Landlord and
Landlord's agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times upon reasonable notice for the purpose of showing the same to
prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements, or additions to the Premises or to the Building, as Landlord may reasonably deem necessary. Landlord
may at any time place on or about the Premises or Building any ordinary "For Sale" signs, and Landlord may at any time during the last 180 days of the term hereof place on or about the Premises
any ordinary "For Lease" signs. All such activities of Landlord shall be without abatement of rent or liability to Tenant. 

        16.15    Signs.    Tenant shall not place any signs at or upon the
exterior of the Premises or the Building, except that Tenant may, with Landlord's prior written consent, install (but not on the roof) such signs as are reasonably required to advertise Tenant's own
business so long as such signs are in a location designated by Landlord and comply with sign ordinances and the signage criteria established for the R&D Park by Landlord. Within ten (10) days
following approval of the signage criteria by applicable governmental authorities, Landlord shall deliver to Tenant the signage criteria for the R&D Park. 

        16.16    Termination; Merger.    Unless specifically stated otherwise
in writing by Landlord, the voluntary or other surrender of this Lease by Tenant, the mutual termination or cancellation hereof, or a termination hereof by Landlord for Default by Tenant, shall
automatically terminate any sublease or lesser estate in the Premises; provided, however, Landlord shall, in the event of any such surrender, termination, or cancellation, have the option to continue
any one or all of any existing subtenancies. Landlord's failure within 10 days following any such event to make a written election to the contrary by written notice to the holder of any such
lesser interest shall constitute Landlord's election to have such event constitute the termination of such interest. 

24

 

        16.17    Quiet Possession.    Upon payment by Tenant of the Base Rent
and Additional Rent for the Premises and the performance of all of the covenants, conditions, and provisions on Tenant's part to be observed
and performed under this Lease, Tenant shall have quiet possession of the Premises for the entire term hereof, subject to all of the provisions of this Lease. 

        16.18    Subordination; Attornment; Non-Disturbance.    

        (a)   Subordination.    This Lease shall be subject and subordinate to any ground lease, mortgage, deed of trust, or
other hypothecation or mortgage (collectively, "Mortgage") now or hereafter placed by Landlord upon the real property of which
the Premises are a part, to any and all advances made on the security thereof, and to all renewals, modifications, consolidations, replacements, and extensions thereof. Tenant agrees that any person
holding any Mortgage shall have no duty, liability, or obligation to perform any of the obligations of Landlord under this Lease. In the event of Landlord's default with respect to any such
obligation, Tenant will give any Lender, whose name and address have previously been furnished in writing to Tenant, notice of a default by Landlord. Tenant may not exercise any remedies for default
by Landlord unless and until Landlord and the Lender shall have received written notice of such default and a reasonable time (not less than 90 days) shall thereafter have elapsed without the
default having been cured. If any Lender shall elect to have this Lease superior to the lien of its Mortgage and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such
Mortgage. The provisions of a Mortgage relating to the disposition of condemnation and insurance proceeds shall prevail over any contrary provisions contained in this Lease. 

        (b)   Attornment.    Subject to the nondisturbance provisions of subparagraph (c) of this
Paragraph 16.18, Tenant agrees to attorn to a Lender or any other party who acquires ownership of the Premises by reason of a foreclosure of a Mortgage. In the event of such foreclosure, such
new owner shall not: (i) be liable for any act or omission of any prior landlord or with respect to events occurring prior to acquisition of ownership, (ii) be subject to any offsets or
defenses which Tenant might have against any prior Landlord, or (iii) be liable for security deposits or be bound by prepayment of more than one month's rent. 

        (c)   Non-Disturbance.    With respect to any Mortgage entered into by Landlord after the execution of
this Lease, Tenant's subordination of this Lease shall be subject to receiving assurance (a "nondisturbance agreement") from the
Mortgage holder that Tenant's possession and this Lease will not be disturbed so long as Tenant is not in default and attorns to the record owner of the Premises. Landlord hereby discloses to Tenant
that, as of the date of this Lease, no Mortgage encumbers the R&D Park. 

        (d)   Self-Executing.    The agreements contained in this Paragraph 16.18 shall be effective
without the execution of any further documents; provided, however, that upon written request from Landlord or a Lender in connection with a sale, financing, or refinancing of Premises, Tenant and
Landlord shall execute such further writings as may be reasonably required to separately document any such subordination or nonsubordination, attornment, and/or nondisturbance agreement, as is
provided for herein. Landlord is hereby irrevocably vested with full power to subordinate this Lease to a Mortgage. 

        16.19    Rules and Regulations.    Tenant agrees that it will abide
by, and to cause its employees, suppliers, shippers, customers, tenants, contractors, and invitees to abide by, all reasonable rules and regulations  ("Rules and Regulations") which Landlord may make from time to time for the management, safety, care,
and cleanliness of the Common Areas, the parking and unloading of vehicles, and the preservation of good order, as well as for the convenience of other occupants or tenants of the Building and the R&D
Park and their invitees. The current Rules and Regulations are attached hereto as Exhibit E. Landlord shall not be
responsible to Tenant for the noncompliance with said Rules and Regulations by other tenants of the R&D Park. 

25

 

        16.20    Security Measures.    Tenant acknowledges that the rental
payable to Landlord hereunder does not include the cost of guard service or other security measures. Landlord has no obligations to provide same. Tenant assumes all responsibility for the protection
of the Premises, Tenant, its agents, and invitees and their property from the acts of third parties. 

        16.21    Reservations.    Landlord reserves the right to grant such
easements that Landlord deems necessary and to cause the recordation of parcel maps, so long as such easements and maps do not unreasonably interfere with the use of the Premises by Tenant. Tenant
agrees to sign any documents reasonably requested by Landlord to effectuate any such easements or maps. Tenant further agrees that Landlord may at any time following the execution of this Lease,
either directly or through Landlord's agents, identify Tenant's name in any marketing materials relating to the Building or Landlord's portfolio and/or make press releases or other announcements
regarding the leasing of the Premises by Tenant, and Tenant hereby waives any and all claims in connection therewith. 

        16.22    Conflict.    Any conflict between the printed provisions of
this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions. 

        16.23    Offer.    Preparation of this Lease by either Landlord or
Tenant or Landlord's agent or Tenant's agent and submission of same to Tenant or Landlord shall not be deemed an offer to lease. This Lease is not intended to be binding until executed and delivered
by all Parties hereto. 

        16.24    Amendments.    This Lease may be modified only in writing,
signed by the parties in interest at the time of the modification. 

        16.25    Multiple Parties.    Except as otherwise expressly provided
herein, if more than one person or entity is named herein as Tenant, the obligations of such persons shall be the joint and several responsibility of all persons or entities named herein as such
Tenant. 

        16.26    Authority.    Each person signing on behalf of Landlord or
Tenant warrants and represents that she or he is authorized to execute and deliver this Lease and to make it a binding obligation of Landlord or Tenant. 

        16.27    Recordation.    Tenant shall not record this Lease or a short
form memorandum hereof. 

        16.28    Confidentiality.    Tenant acknowledges that the content of
this Lease and any related documents are confidential information. Tenant shall keep and maintain such confidential information strictly confidential and shall not disclose such confidential
information to any person or entity other than Tenant's financial, legal and space planning consultants. 

        16.29    Landlord Renovations.    Tenant acknowledges that Landlord
may from time to time, at Landlord's sole option, renovate, improve, develop, alter, or modify (collectively, the "Renovations")
portions of the Building, Premises, Common Areas and the R&D Park, including without limitation, systems and equipment, roof, and structural portions of the same. In connection with such Renovations,
Landlord may, among other things, erect scaffolding or other necessary structures in the Building, limit or eliminate access to portions of the R&D Park, including portions of the Common Areas, or
perform work in the Building, which work may create noise, dust or leave debris in the Building. Tenant hereby agrees that such Renovations and Landlord's actions in connection with such Renovations
shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no responsibility, or for any reason be liable to Tenant, for any direct
or indirect injury to or interference with Tenant's business arising from the Renovations, nor shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or
any part of the Premises or of Tenant's Property, Alterations or improvements resulting from the Renovations or Landlord's actions in connection with such Renovations, or for any inconvenience or
annoyance occasioned by such Renovations or Landlord's actions in connection with such Renovations, provided that Landlord has used reasonable commercial efforts to avoid interfering with Tenant's
conduct of its business. 

26

 

        16.30    WAIVER OF JURY TRIAL.    TO THE EXTENT PERMITTED BY LAW, THE
PARTIES HERETO SHALL AND THEY HEREBY DO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF
OR IN ANY WAY RELATED TO THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR
OCCUPANCY OF THE PREMISES, THE BUILDING OR THE PARK, AND/OR ANY CLAIM OF INJURY, LOSS OR DAMAGE. 

        16.31    Backup Generator.    Tenant shall have the right (but only to
the extent permitted by the City of Sunnyvale and all agencies and governmental authorities having jurisdiction thereof), at Tenant's sole cost and expense, to construct, maintain and operate an
enclosed equipment area (the "Equipment Area"), in a location outside of the Building designated by Landlord, to house equipment
exclusively serving the Premises, including an emergency generator, UPS battery systems and related appurtenances (collectively, the "Generator
Equipment") subject to the following: 

        (a)   The
precise location, size and configuration of the Equipment Area shall 

          (i)  be
subject to Landlord's prior written approval, not to be unreasonably withheld and 

         (ii)  promote
the safety, aesthetics and efficiency of the Generator Equipment; provided, all of the Generator Equipment and any maintenance or modifications thereto or
placement thereof, and all utilities used in connection therewith shall be at Tenant's sole cost and expense, contained visually within a fully enclosed area, installed and operated to Landlord's
reasonable specifications, and installed, maintained, operated and removed in accordance with the terms of the Lease, all Applicable Requirements and all Recorded Matters, and the prior rights of any
other tenant or occupant in the R&D Park. 

        (b)   Tenant
shall, at its sole cost and expense, obtain all licenses and permits necessary to install and operate the Generator Equipment within the Equipment Area prior to
installing or performing any work with respect to the Generator Equipment or Equipment Area. Tenant shall obtain Landlord's prior written consent before making any modifications to the Equipment Area. 

        (c)   No
additional Base Rent shall be paid by Tenant for use of the Equipment Area or Generator Equipment; provided, Tenant shall be solely responsible to pay for all
utilities, including without limitation electricity, used in connection with the Generator Equipment or Equipment Area. 

        (d)   The
Generator Equipment shall remain the property of Tenant and Tenant shall remove the Generator Equipment upon the expiration or earlier termination of the Lease.
Tenant shall restore the Equipment Area and any other portion of the Building or R&D Park affected by the Generator Equipment to its original condition upon the removal of the Generator Equipment,
excepting ordinary wear and tear. Tenant shall promptly repair any damage to the Building and the R&D Park caused by Tenant or the use, operation, installation, repair, maintenance, alteration or
removal of the Generator Equipment. In connection with the removal of the Generator Equipment and when required by any federal, state, or local regulatory authority, Tenant shall perform, at its sole
expense, an environmental site assessment acceptable to Landlord to determine the extent, if any, of contamination of the
Premises and R&D Park and shall, at its sole expense, clean up, remove, and remediate all Hazardous Substances in, on, under or about the Premises or the R&D Park that may have been caused by the
Generator Equipment. 

        (e)   Tenant
may not assign, lease, rent, sublet or otherwise transfer any of its interest in the Equipment Area or the Generator Equipment except together with the remainder
of all of the Premises as more particularly set forth in Section 12 of the Lease. 

27

 

        (f)    Each
of the other provisions of this Lease shall be applicable to the Equipment Area and the use of the Generator Equipment by Tenant, including without limitation,
Sections 6, 7 and 8 of the Lease. 

        (g)   Anything
to the contrary contained herein notwithstanding, if, during the Term, as such Term may be extended, Landlord, in its reasonable judgment, believes that the
Generator Equipment poses a human health or environmental hazard that cannot be remediated or has not been remediated within ten (10) days after Tenant has been notified thereof, then Tenant
shall immediately cease all operation of the Generator Equipment and Tenant shall remove all of the Generator Equipment within thirty (30) days thereafter. To the best of Tenant's knowledge,
Tenant represents to Landlord that the use of the Generator Equipment will not pose a human health or environmental hazard. 

        (h)   Tenant
shall not use the Generator Equipment, the Equipment Area or any other portion of the Project in any way which interferes with the use of the R&D Park by
Landlord, or other tenants or licensees of Landlord or any other occupant of the R&D Park. Such interference shall be deemed a material breach by the Tenant under the Lease, and Tenant shall, within
five (5) days of written notice from Landlord, be responsible for terminating said interference. In the event any such interference does not cease within five (5) days of Landlord's
written notice, Tenant acknowledges that continuing interference may cause irreparable injury and, Tenant shall immediately cease all operation of the Generator Equipment and Tenant shall remove all
of the Generator Equipment within thirty (30) days thereafter. 

        (i)    Tenant
shall be responsible for insuring the Generator Equipment pursuant to Section 8 of the Lease and Landlord shall have no responsibility therefor. 

        (j)    Tenant
shall indemnify, defend (by counsel reasonably acceptable to Landlord) and hold harmless Landlord and all of Landlord's Entities from any and all claims, demands,
liabilities, damages, judgments, costs and expenses (including reasonable attorneys' fees) any of such Landlord's Entities
may suffer or incur arising out of or related to the installation, use, operation, maintenance, replacement and/or removal of the Generator Equipment or any portion thereof. 

        (k)   If
requested by Landlord, Tenant shall obtain for the benefit of Landlord a separate policy of environmental insurance to provide coverage against any and all damage to
property or injury or death to persons as a result of the Generator Equipment, and Tenant shall provide written evidence of such coverage within ten (10) days after request by Landlord. 

        (l)    Tenant
shall maintain all reports, inventory and other records, test results, permits and all other data and information required under applicable law for the
installation, use and operation of the Generator Equipment, and upon request of Landlord, shall provide a copy of all such reports, records, test results and other information without cost or expense
to Landlord. 

        16.32    Roof Space Equipment.    Tenant shall have the right (but
only to the extent permitted by the City of Sunnyvale and all agencies and governmental authorities having jurisdiction thereof), at Tenant's sole cost and expense, to install, operate and maintain
(including roof access for such maintenance purposes) satellite or wireless communication equipment along with any necessary cables (collectively, the  "Equipment") on a
portion of the roof of the Building to be designated by Landlord  ("Roof Space") for the Term of the Lease. The location and size of the
Equipment shall be subject to
Landlord's written approval, not to unreasonably withheld and which best promotes the safety, aesthetics and efficiency of the Equipment; provided, all of the Equipment and any modifications thereto
or placement thereof shall be (i) at Tenant's sole cost and expense, (ii) contained visually within the roof screen, (iii) installed and operated to Landlord's reasonable
specifications, and (iv) installed, maintained, operated and removed in accordance with all Recorded Matters and Applicable Requirements. Landlord shall cooperate reasonably with Tenant to
modify the roof screen placement 

28

 

(subject
to all Applicable Requirements and Recorded Matters) if required for signal quality and other reasonable considerations; provided, the cost of all such modifications shall be the
responsibility of Tenant. All modifications to the Building, including the Roof Space, if any, shall be reasonably approved by Landlord in writing prior to commencement of any work with respect to the
Equipment. No additional rent shall be paid by Tenant for use of the Roof Space and operation of the Equipment. The Equipment shall remain the property of Tenant and Tenant shall remove the Equipment
upon the expiration or earlier termination of the Lease. Tenant shall restore the Roof Space and any other portion of the Buildings affected by the Equipment to its original condition, excepting
ordinary wear and tear. Tenant may not assign, lease, rent, sublet or otherwise transfer any of its interest in the Roof Space or the Equipment. Each of the other provisions of this Lease shall be
applicable to the Equipment and the use of the Roof Space by Tenant. The Equipment shall comply with all-non-interference rules of the Federal Communications Commission. If
applicable, Tenant shall provide to Landlord a copy of (i) the Federal Communications Commission (or other agency) grant which has awarded frequencies to Tenant and (ii) a list of
Tenant's frequencies. Anything to the contrary contained herein notwithstanding, if, during the Lease Term, as such Term may be extended, Landlord, in its reasonable judgment, believes that the
Equipment poses a human health or environmental hazard that cannot be remediated or has not been remediated within ten (10) days after Tenant has been notified thereof, then Tenant shall
immediately cease all operations of the Equipment and Tenant shall remove all of the Equipment within thirty (30) days thereafter. To the best of Tenant's knowledge, Tenant represents to
Landlord that the Equipment shall not emit or project any electro-magnetic fields which pose a human health or environmental hazard. In addition, Tenant shall be responsible for insuring the Equipment
and Landlord shall have no responsibility therefor. Tenant shall indemnify, defend (by counsel reasonably acceptable to Landlord) and hold harmless Landlord from any and all claims, demands, losses,
liabilities, damages, judgments, costs and expenses (including reasonable attorneys' fees) Landlord may suffer or incur arising out of or related to the installation, use, operation, maintenance,
replacement and/or removal of the Equipment or any portion thereof or any roof access for purposes of maintaining the Equipment. 

///signature page follows///  

29

 

///continued from previous page///  

        The parties hereto have executed this Lease at the place and on the dates specified below their respective signatures. 

	LANDLORD	 	TENANT
	

Headlands Realty Corporation,

a Maryland Corporation	
 	

Omneon Video Networks, Inc.,

a Delaware corporation
	

By:	

// ILLEGIBLE
	
 	

By:	

/s/ Joseph Kennedy

	Its:	Sr. Vice President
	 	Its:	CEO

	Date:	2/27/08
	 	Date:	2/26/08

	

 	

 	
 	

By:	

/s/ Johnathan Turk

	 	 	 	Its:	VP, Operations

	 	 	 	Date:	2/26/08

	
Landlord's Address:	
 	
Tenant's Address:
	

Headlands Realty Corporation,

a Maryland Corporation

c/o AMB Property Corporation

Pier 1, Bay 1

San Francisco, California 94111	
 	
After the Commencement Date

The Premises Address

 
 Prior to the Commencement Date
	
With a copy to:	
 	

 	

 
	

Headlands Realty Corporation,

a Maryland Corporation

c/o AMB Property Corporation

1360 Willow Road, Suite 100

Menlo Park, California 94025	
 	

 	

 

If
Tenant is a CORPORATION, the authorized officers must sign on behalf of the corporation and indicate the capacity in which they are signing. The Lease must be executed by the chairman of the board,
president or vice-president, and the secretary, assistant secretary, chief financial officer or any assistant treasurer, unless the bylaws or a resolution of the board of directors shall
otherwise provide, in which event, the bylaws or a certified copy of the resolution, as the case may be, must be attached to this Lease. 

30

   Exhibit A

Description of Premises and R&D Park  

        This exhibit, entitled "Premises", is and shall constitute Exhibit A to that certain Lease Agreement dated
February 22, 2008 (the "Lease"), by and between Headlands Realty Corporation, a Maryland Corporation  ("Landlord") and Omneon Video Networks, Inc., a Delaware corporation ("Tenant") for the leasing
of certain premises commonly known as 1237-1239 East Arques Avenue, Sunnyvale, California (the "Premises").

        The
Premises consist of the rentable square footage of space specified in the Basic Lease Information and has the address specified in the Basic Lease Information. The Premises are a
part of and are contained in the Building specified in the Basic Lease Information. If set forth below (or attached), the cross-hatched area depicts the Premises within the R&D Park: 

[ADD
DESCRIPTION OF R&D PARK] 

  

A-1

   Exhibit B

Commencement Date Certificate  

	Landlord:	 	Headlands Realty Corporation, a Maryland Corporation
	

Tenant:	
 	

Omneon Video Networks, Inc., a Delaware corporation
	

Lease Date:	
 	

February 22, 2008
	

Premises:	
 	

1237-1239 East Arques Avenue, Sunnyvale, California

Tenant
hereby accepts the Premises as being in the condition required under the Lease.

The Commencement Date of the Lease is                          ,
             .

The Expiration Date of the Lease is                          ,
             . 

	 LANDLORD	 	TENANT
	

Headlands Realty Corporation,

a Maryland Corporation	
 	

Omneon Video Networks, Inc.,

a Delaware corporation
	

By:	
 	

[ILLEGIBLE]
	
 	

By:	
 	

    

	Its:	 	Sr. Vice President
	 	Its:	 	    

	Date:	 	2/28/08
	 	Date:	 	    

	

 	
 	

 	
 	

By:	
 	

    

	 	 	 	 	Its:	 	    

	 	 	 	 	Date:	 	    

	
Landlord's Address:	
 	
Tenant's Address:
	Headlands Realty Corporation, a Maryland Corporation

c/o AMB Property Corporation

Pier 1, Bay 1

San Francisco, California 94111	 	
After the Commencement Date

The Premises Address
	
With a copy to:	
 	
Prior to the Commencement Date
	Headlands Realty Corporation, a Maryland Corporation

c/o AMB Property Corporation

1360 Willow Road, Suite 100

Menlo Park, California 94025	 	 	 	 

If
Tenant is a CORPORATION, the authorized officers must sign on behalf of the corporation and indicate the capacity in which they are signing. The document must be executed by the chairman of the
board, president or vice-president, and the secretary, assistant secretary, chief financial officer or any assistant treasurer, unless the bylaws or a resolution of the board of directors
shall otherwise provide, in which event, the bylaws or a certified copy of the resolution, as the case may be, must be attached to this document. 

B-1

   Exhibit C

Tenant Move-in and Lease Renewal Environmental Questionnaire

for Commercial and Industrial Properties  

Property Name:    AMB Lakeside Business Center 

Premises Address:    1237-1239 East Arques Avenue, Sunnyvale, California 

Exhibit C to the Lease Dated February 22, 2008 

Between  

Headlands Realty Corporation, a Maryland Corporation
 ("Landlord")  

 and  

Omneon Video Networks, Inc., a Delaware corporation
 ("Tenant")  

Instructions: The following questionnaire is to be completed by the Tenant Representative with knowledge of the planned/existing operations for the
specified building/location. A copy of the completed form must be attached to all new leases and renewals, and forwarded to the Owner's Risk Management Department. Please print clearly and attach
additional sheets as necessary.

	1.0
	Process Information

Describe
planned use (new Lease) or existing operations (lease renewal), and include brief description of manufacturing processes employed. 

Corporate
Headquaters facility; Finance; customer support; executive offices; R&D software development; product test labs; sales & marketing; MFG process; configure assembled product to
customers' spec; ship products to customers 

	2.0
	Hazardous Materials

Are
hazardous materials used or stored? If so, continue with the next question. If not, go to Section 3.0. 

	2.1
	Are any of the following materials handled on the property? 

Yes
ý        No o 

(A material is handled if it is used, generated, processed, produced, packaged, treated, stored, emitted, discharged, or disposed.) If so, complete this section. If this question is not applicable,
skip this section and go on to Section 5.0. 

	o Explosives	 	o Fuels	 	o Oils
	ý Solvents	 	o Oxidizers	 	o Organics/Inorganics
	ý Acids	 	o Bases	 	o Pesticides
	o Gases	 	o PCBs	 	o Radioactive Materials
	o Other (please specify)	 	 	 	 

C-1

 

	2.2
	If any of the groups of materials checked in Section 2.1, please list the specific material(s), use(s), and quantity of each
chemical used or stored on the site in the Table below. If convenient, you may substitute a chemical inventory and list the uses of each of the chemicals in each category separately. 

	Material
 
	 	Physical State (Solid, Liquid, or Gas)
	 	Usage
	 	Container Size
	 	Number of Containers
	 	Total Quantity

	Alcohol—IPA	 	liquid	 	PCB Cleaning	 	1 QT	 	2	 	 1/2 Gal
	Acetone	 	liquid	 	Cleaning	 	1 QT	 	2	 	 1/2 Gal
	Rosin Flux	 	liquid	 	PCB Repair	 	125 ml	 	2	 	250 ml

	2.3
	Describe the planned storage area location(s) for these materials. Please include site maps and drawings as appropriate. 

Flamables
cabinet in re-work area 

	3.0
	Hazardous Wastes

Are
hazardous wastes generated? 

Yes
o        No ý 

If
yes, continue with the next question. If not, skip this section and go to Section 4.0. 

	3.1
	Are any of the following wastes generated, handled, or disposed of (where applicable) on the property? 

	o Hazardous wastes	 	o Industrial Wastewater
	o Waste oils	 	o PCBs
	o Air emissions	 	o Sludges
	o Regulated Wastes	 	o Other (please specify)

	3.2
	List and quantify the materials identified in Question 3-1 of this section. Attach separate pages as necessary. 

	Waste Generated
 
	 	RCRA listed Waste?
	 	Source
	 	Approximate Monthly Quantity
	 	Waste Characterization
	 	Disposition

	    	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 	 	 

	3.3
	Please include name, location, and permit number (e.g. EPA ID No.) for transporter and disposal facility, if applicable). Attach
separate pages as necessary. 

	Transporter/Disposal Facility Name
 
	 	Facility Location
	 	Transporter (T) or Disposal (D) Facility
	 	Permit Number

	    	 	 	 	 	 	 
	    	 	 	 	 	 	 
	    	 	 	 	 	 	 
	    	 	 	 	 	 	 

C-2

 

	3.4
	Are pollution controls or monitoring employed in the process to prevent or minimize the release of wastes into the environment? 

Yes
o        No o 

If
so, please describe. 

	

	 
	

	 
	

	4.0
	USTS/ASTS

	4.1
	Are underground storage tanks (USTs), aboveground storage tanks (ASTs), or associated pipelines used for the storage of petroleum
products, chemicals, or liquid wastes present on site (lease renewals) or required for planned operations (new tenants)? 

Yes
o        No ý 

If
not, continue with section 5.0. If yes, please describe capacity, contents, age, type of the USTs or ASTs, as well any associated leak detection / spill prevention measures. Please attach
additional pages if necessary. 

	Capacity
 
	 	Contents
	 	Year Installed
	 	Type (Steel, Fiberglass, etc)
	 	Associated Leak

Detection / Spill

Prevention Measures*

	    	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 
	    	 	 	 	 	 	 	 	 

	*
	Note:
The following are examples of leak detection / spill prevention measures: 

	Integrity testing	 	Inventory reconciliation	 	Leak detection system
	Overfill spill protection	 	Secondary containment	 	Cathodic protection

	4.2
	Please provide copies of written tank integrity test results and/or monitoring documentation, if available.

	4.3
	Is the UST/AST registered and permitted with the appropriate regulatory agencies? 

Yes
o        No ý 

If
so, please attach a copy of the required permits. 

	4.4
	If this Questionnaire is being completed for a lease renewal, and if any of the USTs/ASTs have leaked, please state the substance
released, the media(s) impacted (e.g., soil, water, asphalt, etc.), the actions taken, and all remedial responses to the incident. 

	

	 
	

	 
	

C-3

 

	4.5
	If this Questionnaire is being completed for a lease renewal, have USTs/ASTs been removed from the property? 

Yes
o        No ý 

If
yes, please provide any official closure letters or reports and supporting documentation (e.g., analytical test results, remediation report results, etc.). 

	4.6
	For Lease renewals, are there any above or below ground pipelines on site used to transfer chemicals or wastes? 

Yes
o        No o 

For
new tenants, are installations of this type required for the planned operations? 

Yes
o        No ý 

If
yes to either question, please describe. 

	

	 
	

	 
	

	5.0
	Asbestos Containing Building Materials

Please
be advised that this property participates in an Asbestos Operations and Maintenance Program, and that an asbestos survey may have been performed at the Property. If provided, please review the
information that identifies the locations of known asbestos containing material or presumed asbestos containing material. All personnel and appropriate subcontractors should be notified of the
presence of
these materials, and informed not to disturb these materials. Any activity that involves the disturbance or removal of these materials must be done by an appropriately trained individual/contractor. 

	6.0
	Regulatory

	6.1
	For Lease Renewals, are there any past, current, or pending regulatory actions by federal, state, or local environmental agencies
alleging noncompliance with regulations? 

Yes
o        No o 

If
so, please describe. 

	

	 
	

	 
	

	6.2
	For lease renewals, are there any past, current, or pending lawsuits or administrative proceedings for alleged environmental damages
involving the property, you, or any owner or tenant of the property? 

Yes
o        No o 

If
so, please describe. 

	

	 
	

	 
	

C-4

 

	6.3
	Does the operation have or require a National Pollutant Discharge Elimination System (NPDES) or equivalent permit? 

Yes
o        No ý 

If
so, please attach a copy of this permit. 

	6.4
	For Lease renewals, have there been any complaints from the surrounding community regarding facility operations? 

Yes
o        No o 

Have
there been any worker complaints or regulatory investigations regarding hazardous material exposure at the facility? 

Yes
o        No o 

If
so, please describe status and any corrective actions taken. Please attach additional pages as necessary. 

	

	 
	

	 
	

	6.5
	Has a Hazardous Materials Business Plan been developed for the site? 

Yes
o        No ý 

If
so, please attach a copy. 

	6.6
	Are any environmental documentation, chemical inventory, or management plan required by the local Fire Department or Health Department? 

Yes
o        No ý 

If
so, please attach a copy. 

Certification  

I
am familiar with the real property described in this questionnaire. By signing below, I represent and warrant that the answers to the above questions are complete and accurate to the best of my
knowledge. I also understand that the Owner will rely on the completeness and accuracy of my answers in assessing any environmental liability risk associated with the property. 

	 	 	Signature:	 	/s/  JOSEPH KENNEDY      

	 	 	Name:	 	Joseph Kennedy

	 	 	Title:	 	CEO

	 	 	Date:	 	2/26/08

	 	 	Telephone:	 	 
	 	 	 	 	

Please forward the completed questionnaire to:  

Mr. Steve
Campbell

AMB Property, L.P.

Pier 1, Bay 1

San Francisco, CA 94111 

C-5

   Exhibit D

Move Out Standards  

        This "Move Out Standards" (Exhibit D) is dated February 22, 2008, for the reference purposes only
and is made between Headlands Realty Corporation, a Maryland Corporation ("Landlord"), and Omneon Video Networks, Inc., a
Delaware corporation ("Tenant"), to be a part of that certain Standard Industrial Lease (the  "Lease") concerning a
portion of the Property more commonly known as 1237-1239 East Arques Avenue, Sunnyvale,
California (the "Premises"). Landlord and Tenant agree that the Lease is hereby modified and supplemented as follows: 

        At
the expiration or earlier termination of this Lease, and in addition to any other provisions of the Lease regarding surrender of the Premises, Tenant shall surrender the Premises in
the same condition as they were upon delivery of possession thereto under the Lease, reasonable wear and tear excepted, and shall deliver all keys to Landlord. Before surrendering the Premises, Tenant
shall remove all of its personal property and trade fixtures and such alterations or additions to the Premises made by Tenant as may be specified for removal by Landlord. If Tenant fails to remove its
personal property, fixtures or alterations or additions upon the expiration or earlier termination of the Lease, the same shall be deemed abandoned and shall become the property of Landlord. Tenant
shall be liable to Landlord for all costs and damages incurred by Landlord in removing, storing or selling such property, fixtures, alterations or additions and in restoring the Premises to the
condition required pursuant to the Lease. 

        Notwithstanding
anything to the contrary in the Lease, Tenant shall surrender the Premises, at the time of the expiration or earlier termination of the Lease, in a condition that shall
include, but is not limited to, the following: 

	

1.	
 	

Lights:	
 	

Office and warehouse lights will be fully operational with all bulbs functioning.
	

2.	
 	

Dock Levelers & Roll-Up Doors:	
 	

Should be in good working condition.
	

3.	
 	

Dock Seals:	
 	

Free of tears and broken backboards repaired.
	

4.	
 	

Warehouse Floor:	
 	

Free of stains and swept with no racking bolts and other protrusions left in the floor. Cracks should be repaired with an epoxy or polymer.
	

5.	
 	

Tenant-Installed Equipment & Wiring:	
 	

Removed and space returned to original condition when originally leased. (Remove air lines, junction boxes, conduit, etc.)
	

6.	
 	

Walls:	
 	

Sheetrock (drywall) damage should be patched and fire-taped so that there are no holes in either office or warehouse.
	

7.	
 	

Roof:	
 	

Any tenant-installed equipment must be removed and roof penetrations properly repaired by licensed roofing contractor. Active leaks must be fixed and latest landlord maintenance and repairs recommendation must have been followed.
	

8.	
 	

Signs:	
 	

All exterior signs must be removed and holes patched and paint touched up as necessary. All window signs should likewise be removed.

D-1

 

	

9.	
 	

Heating & Air Conditioning System:	
 	

A written report from a licensed HVAC contractor

within the last three months stating that all evaporative coolers and HVAC systems are operational and in good and safe operating condition.
	

10.	
 	

Overall Cleanliness:	
 	

Clean windows, sanitize bathroom(s), vacuum carpet and remove any and all debris from office and warehouse. Remove all pallets and debris from exterior of Premises.
	

11.	
 	

Upon Completion:	
 	

Contact Landlord's property manager to coordinate date of turning off power, turning in keys, and obtain final Landlord inspection of Premises which, in turn, will facilitate refund of security deposit.

D-2

   Exhibit E

Rules & Regulations  

        This Exhibit (Exhibit E) is dated February 22, 2008, for the reference purposes only and is made
between Headlands Realty Corporation, a Maryland Corporation ("Landlord"), and Omneon Video Networks, Inc., a Delaware corporation  ("Tenant"), to be a part of that certain Standard Industrial Lease (the
"Lease") concerning a portion of the Property more commonly known as 1237-1239 East Arques Avenue, Sunnyvale, California (the  "Premises").
The terms, conditions and provisions of this Exhibit E are hereby incorporated into
and are made a part of the Lease. Any capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms as set forth in the Lease. 

        1.     No advertisement, picture or sign of any sort shall be displayed on or outside the Premises or the Building without the
prior written consent of Landlord. Landlord shall have the right to remove any such unapproved item without notice and at Tenant's expense. 

        2.     Tenant shall not regularly park motor vehicles in designated parking areas after the conclusion of normal daily business
activity. 

        3.     Tenant shall not use any method of heating or air conditioning other than that supplied by Landlord without the prior
written consent of Landlord. 

        4.     All window coverings installed by Tenant and visible from the outside of the Building require the prior written approval
of Landlord. 

        5.     Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or substance or any flammable or
combustible materials on or around the Premises, the Building or the Park. 

        6.     Tenant shall not alter any lock or install any new locks or bolts on any exterior door or electrical room door at the
Premises without the prior consent of Landlord, and as to any interior doors, the locks and bolts of which Tenant alters, Tenant shall provide Landlord with a copy of all keys necessary to open such
locks and bolts. 

        7.     Tenant agrees not to make any duplicate keys without the prior consent of Landlord. 

        8.     Tenant shall park motor vehicles in those general parking areas as designated by Landlord except for loading and
unloading. During those periods of loading and unloading, Tenant shall not unreasonably interfere with traffic flow within the Park and loading and unloading areas of other Tenants. 

        9.     Tenant shall not disturb, solicit or canvas any occupant of the Building or Park and shall cooperate to prevent same. 

        10.   No person shall go on the roof without Landlord's permission, except those individuals identified by Tenant and approved
by Landlord in advance. 

        11.   Business machines and mechanical equipment belonging to Tenant which cause noise or vibration that may be transmitted to
the structure of the Building, to such a degree as to be objectionable to Landlord or other Tenants, shall be placed and maintained by Tenant, at Tenant's expense, on vibration eliminators or other
devices sufficient to eliminate noise or vibration. 

        12.   All goods, including material used to store goods, delivered to the Premises of Tenant shall be immediately moved into
the Premises and shall not be left in parking or receiving areas overnight without the prior written consent of Landlord. 

        13.   Tractor trailers which must be unhooked or parked with dolly wheels beyond the concrete loading areas must use steel
plates or wood blocks under the dolly wheels to prevent damage to the 

E-1

 

asphalt
paving surfaces. No parking or storing of such trailers will be permitted in the auto parking areas of the Park or on streets adjacent thereto. 

        14.   Forklifts which operate on asphalt paving areas shall not have solid rubber tires and shall only use tires that do not
damage the asphalt. 

        15.   Tenant is responsible for the storage and removal of all trash and refuse. All such trash and refuse shall be contained
in suitable receptacles stored behind screened enclosures at locations approved by Landlord. 

        16.   Tenant shall not store or permit the storage or placement of goods, or merchandise or pallets or equipment of any sort
outside of the Premises nor in or around the Building, the Park or any of the Common Areas of the foregoing. No displays or sales of merchandise shall be allowed in the parking lots or other Common
Areas. 

        17.   Tenant shall not permit any animals, including, but not limited to, any household pets, to be brought or kept in or about
the Premises, the Building, the Park or any of the Common Areas of the foregoing. 

        18.   Tenant shall not permit any motor vehicles to be washed on any portion of the Premises or in the Common Areas of the
Park, nor shall Tenant permit mechanical work or maintenance of motor vehicles to be performed on any portion of the Premises or in the Common Areas of the Park. 

E-2

   Exhibit F

Tenant Improvements  

This
exhibit, entitled "Tenant Improvements", is and shall constitute Exhibit F to that certain Lease Agreement dated February 22, 2008
(the "Lease"), by and between Headlands Realty Corporation, a Maryland Corporation  ("Landlord"), and Omneon Video Networks, Inc., a Delaware corporation
("Tenant"), for the leasing of certain premises located at 1237-1239 East Arques Avenue,
Sunnyvale, California (the "Premises"). The terms, conditions and provisions of this  Exhibit B are hereby
incorporated into and are made a part of the Lease. Any capitalized terms used herein and not otherwise defined herein shall
have the meaning ascribed to such terms as set forth in the Lease: 

1.    Tenant To Construct Tenant Improvements.    Subject to
the provisions below, Tenant shall be solely responsible for the planning, construction and completion of the interior tenant improvements ("Tenant
Improvements") to the Premises in accordance with the terms and conditions of this Exhibit F. The
Tenant Improvements shall not include any (i) of Tenant's personal property, furniture, trade fixtures, cabling, furnishings, equipment or similar items or costs related thereto (except as set
forth in Section 5 below with respect to cabling) or (ii) relocation costs. 

2.    Tenant Improvement Plans.    

        A.    Preliminary Plans and
Specifications.    Promptly after execution of the Lease, Tenant shall retain a licensed and insured architect  ("Architect") to prepare preliminary working architectural and engineering plans and specifications  ("Preliminary Plans and
Specifications") for the Tenant Improvements. Tenant shall deliver the
Preliminary Plans and Specifications to Landlord. The Preliminary Plans and Specifications shall be in sufficient detail to show locations, types and requirements for all heat loads, people loads,
floor loads, power and plumbing, regular and special HVAC needs, telephone communications, telephone and electrical outlets, lighting, lighting fixtures and related power, and electrical and telephone
switches. Landlord shall reasonably approve or disapprove the Preliminary Plans and Specifications within five (5) days after Landlord receives the Preliminary Plans and Specifications and, if
disapproved, Landlord shall return the Preliminary Plans and Specifications to Tenant, who shall make all necessary revisions within ten (10) days after Tenant's receipt thereof. This procedure
shall be repeated until Landlord approves the Preliminary Plans and Specifications. The approved Preliminary Plans and Specifications, as modified, shall be deemed the "Final
Preliminary Plans and Specifications".  

        B.    Final Plans and
Specifications.    After the Final Preliminary Plans and Specifications are approved by Landlord and are deemed to be the Final Preliminary
Plans and Specifications, Tenant shall cause the Architect to prepare in twenty (20) days following Landlord's approval of the Final Preliminary Plans and Specifications the final working
architectural and engineering plans, specifications and drawings, ("Final Plans and Specifications") for
the Tenant Improvements. Tenant shall then deliver the Final Plans and Specifications to Landlord. Landlord shall reasonably approve or disapprove the Final Plans and Specifications within five
(5) days after Landlord receives the Final Plans and Specifications and, if disapproved, Landlord shall return the Final Plans and Specifications to Tenant who shall make all necessary
revisions within ten (10) days after Tenant's receipt thereof. This procedure shall be repeated until Landlord approves, in writing, the Final Plans and Specifications. The approved Final Plans
and Specifications, as modified, shall be deemed the "Construction Documents".  

        C.    Miscellaneous.    All
deliveries of the Preliminary Plans and Specifications, the Final Preliminary Plans and Specifications, the Final Plans and Specifications, and the Construction Documents shall be delivered by
messenger service, by personal hand delivery or by overnight parcel service. While Landlord has the right to approve the Preliminary Plans and Specifications, the Final Preliminary Plans and
Specifications, the Final Plans and Specifications, and the Construction Documents, Landlord's interest in doing so is to protect the Premises, the Building and Landlord's interest. Accordingly,
Tenant shall not rely upon Landlord's approvals and Landlord shall not be the guarantor of, nor 

F-1

 

responsible
for, the adequacy and correctness or accuracy of the Preliminary Plans and Specifications, the Final Preliminary Plans and Specifications, the Final Plans and Specifications, and the
Construction Documents, or the compliance thereof with Applicable Requirements, and Landlord shall incur no liability of any kind by reason of granting such approvals. 

        D.    Building Standard Work.    The
Construction Documents shall provide that the Tenant Improvements to be constructed in accordance therewith must be at least equal, in quality, to Landlord's building standard materials, quantities
and procedures then in use by Landlord ("Building Standards"), and shall consist of improvements which are generic in nature. 

        E.    Construction Agreements.    Tenant
hereby covenants and agrees that a provision shall be included in each and every agreement made with the Architect and the Contractor with respect to the Tenant Improvements specifying that Landlord
shall be a third party beneficiary thereof, including without limitation, a third party beneficiary of all covenants, representations, indemnities and warranties made by the Architect and/or
Contractor. 

3.    Permits.    Tenant at its sole cost and expense
(subject to the provisions of Paragraph 5 below) shall obtain all governmental approvals of the Construction Documents to the full extent necessary for the issuance of a building permit for the
Tenant Improvements based upon such Construction Documents. Tenant at its sole cost and expense shall also cause to be obtained all other necessary approvals and permits from all governmental agencies
having jurisdiction or authority for the construction and installation of the Tenant Improvements in accordance with the approved Construction Documents. Tenant at its sole cost and expense (subject
to the provisions of Paragraph 5 below) shall undertake all steps necessary to insure that the construction of the Tenant Improvements is accomplished in strict compliance with all Applicable
Requirements relating to the construction of the Tenant Improvements and the requirements and standards of any insurance underwriting board, inspection bureau or insurance carrier insuring the
Premises and/or the Building. 

4.    Construction.    

        A.    Tenant shall be solely responsible for the construction, installation and completion of the Tenant Improvements in
accordance with the Construction Documents approved by Landlord and is solely responsible for the payment of all amounts when payable in connection therewith without any cost or expense to Landlord,
except for Landlord's obligation to contribute the Tenant Improvement Allowance in accordance with the provisions of Paragraph 5 below. Tenant shall diligently proceed with the construction,
installation and completion of the Tenant Improvements in accordance with the Construction Documents and the completion schedule reasonably approved by Landlord. No material changes shall be made to
the Construction Documents and the completion schedule approved by Landlord without Landlord's prior written consent, which consent shall not be unreasonably withheld or delayed. 

        B.    Tenant at its sole cost and expense (subject to the provisions of Paragraph 5 below) shall employ a licensed,
insured and bonded general contractor ("Contractor") to construct the Tenant Improvements in accordance with the Construction Documents. The
construction contracts between Tenant and the Contractor and between the Contractor and subcontractors shall be subject to Landlord's prior written approval, which approval shall not be unreasonably
withheld or delayed. Proof that the Contractor is licensed in California, is bonded as required under California law, and has the insurance specified in  Exhibit F-1, attached hereto and
incorporated herein by this reference, shall be provided to Landlord at the time that Tenant
requests approval of the Contractor from Landlord. Tenant shall comply with or cause the Contractor to comply with all other terms and provisions of  Exhibit F-1. 

F-2

 

        C.    Prior to the commencement of the construction and installation of the Tenant Improvements, Tenant shall provide the
following to Landlord, all of which shall be to Landlord's reasonable satisfaction: 

          (i)  An
estimated budget and cost breakdown for the Tenant Improvements. 

         (ii)  Estimated
completion schedule for the Tenant Improvements. 

        (iii)  Copies
of all required approvals and permits from governmental agencies having jurisdiction or authority for the construction and installation of the Tenant
Improvements; provided, however, if prior to commencement of the construction and installation of Tenant Improvements Tenant has not received the electrical, plumbing or mechanical permits, Tenant
shall only be required to provide Landlord with evidence that Tenant has made application therefor, and, upon receipt by Tenant of such permits, Tenant shall promptly provide Landlord with copies
thereof. 

        (iv)  Evidence
of Tenant's procurement of insurance required to be obtained pursuant to the provisions of Paragraphs 4.B and 4.G. 

        D.    Landlord shall at all reasonable times have a right to inspect the Tenant Improvements (provided Landlord does not
materially interfere with the work being performed by the Contractor or its subcontractors) and Tenant shall immediately cease work upon written notice from Landlord if the Tenant Improvements are not
in compliance with the Construction Documents approved by Landlord. If Landlord shall give notice of faulty construction or any other deviation from the Construction Documents, Tenant shall cause the
Contractor to make corrections promptly. However, neither the privilege herein granted to Landlord to make such inspections, nor the making of such inspections by Landlord, shall operate as a waiver
of any rights of Landlord to require good and workmanlike construction and improvements constructed in accordance with the Construction Documents. 

        E.    Subject to Landlord complying with its obligations in Paragraph 5 below, Tenant shall pay and discharge promptly
and fully all claims for labor done and materials and services furnished in connection with the Tenant Improvements. The Tenant Improvements shall not be commenced until five (5) business days
after Landlord has received notice from Tenant stating the date the construction of the Tenant Improvements is to commence so that Landlord can post and record any appropriate Notice of
Non-responsibility. 

        F.     Tenant acknowledges and agrees that the agreements and covenants of Tenant in Sections 8 of the Lease shall be
fully applicable to Tenant's construction of the Tenant Improvements. 

        G.    Tenant shall maintain, and cause to be maintained, during the construction of the Tenant Improvements, at its sole cost
and expense, insurance of the types and in the amounts specified in Exhibit B-1 and in Section 8 of the Lease, together with
builders' risk insurance for the amount of the completed value of the Tenant Improvements on an all-risk non-reporting form covering all improvements under construction,
including building materials, and other insurance in amounts and against such risks as the Landlord shall reasonably require in connection with the Tenant Improvements. 

        H.    No materials, equipment or fixtures shall be delivered to or installed upon the Premises pursuant to any agreement by
which another party has a security interest or rights to remove or repossess such items, without the prior written consent of Landlord, which consent shall not be unreasonably withheld. 

        I.     Landlord reserves the right to establish reasonable rules and regulations for the use of the Building during the course of
construction of the Tenant Improvements, including, but not limited to, construction parking, storage of materials, hours of work, use of elevators, and clean-up of construction related
debris. 

F-3

 

        J.     Upon completion of the Tenant Improvements, Tenant shall deliver to Landlord the following, all of which shall be to
Landlord's reasonable satisfaction: 

          (i)  Any
certificates required for occupancy, including a permanent and complete Certificate of Occupancy issued by the City of Sunnyvale. 

         (ii)  A
Certificate of Completion signed by the Architect who prepared the Construction Documents, reasonably approved by Landlord. 

        (iii)  A
cost breakdown itemizing all expenses for the Tenant Improvements, together with invoices and receipts for the same or other evidence of payment. 

        (iv)  Final
and unconditional mechanic's lien waivers for all the Tenant Improvements. 

         (v)  A
Notice of Completion for execution by Landlord, which certificate once executed by Landlord shall be recorded by Tenant in the official records of the county of where
the Premises are located, and Tenant shall then deliver to Landlord a true and correct copy of the recorded Notice of Completion. 

        (vi)  A
true and complete copy of all as-built plans and drawings for the Tenant Improvements. 

5.    Tenant Improvement Allowance.    

        A.    Subject to Tenant's compliance with the provisions of this  Exhibit F, Landlord shall provide to Tenant an allowance in the amount of
$28.00 per rentable square footage of the Premises for a total of One
Million Nine Hundred Twenty One Thousand Twenty Four and 00/100 dollars and ($1,921,024) (the "Tenant Improvement Allowance") to construct and install
only the Tenant Improvements. The Tenant Improvement Allowance shall be used to design, prepare, plan, obtain the approval of, construct and install the Tenant Improvements and for no other purpose;
provided, Landlord agrees that Tenant may utilize up to an amount equal to Sixty Eight Thousand Six Hundred Eight Dollars ($68,608.00) of the Tenant Improvement Allowance for the costs of purchasing
and installing cabling in the Premises (and Tenant shall provide Landlord with written invoices from independent vendors marked 'paid' in order to obtain reimbursement of such costs). Except as
otherwise expressly provided herein, Landlord shall have no obligation to contribute the Tenant Improvement Allowance unless and until the Construction Documents have been approved by Landlord and
Tenant has complied with all requirements set forth in Paragraph 4.C. of this Exhibit B. In addition to the foregoing, Landlord shall have
no obligation to disburse all or any portion of the Tenant Improvement Allowance to Tenant unless Tenant makes a progress payment request pursuant to the terms and conditions of Section 5.B.
below prior to that date which is six (6) months after the Commencement Date (as such term is defined in the Basic Provisions of the Lease). The costs to be paid out of the Tenant Improvement
Allowance shall include all reasonable costs and expenses associated with the design, preparation, approval, planning, construction and installation of the Tenant Improvements (the  "Tenant Improvement
Costs"), including all of the following: 

          (i)  All
costs of the Preliminary Plans and Specifications, the Final Plans and Specifications, and the Construction Documents, and engineering costs associated with
completion of the State of California energy utilization calculations under Title 24 legislation: 

         (ii)  All
costs of obtaining building permits and other necessary authorizations from local governmental authorities; 

        (iii)  All
costs of interior design and finish schedule plans and specifications including as-built drawings, if applicable; 

        (iv)  All
direct and indirect costs of procuring, constructing and installing the Tenant Improvements in the Premises, including, but not limited to, the construction fee for
overhead and profit and the cost of all on-site supervisory and administrative staff, office, equipment and 

F-4

 

temporary
services rendered by the Contractor in connection with the construction of the Tenant Improvements; provided, however, that the construction fee for overhead and profit, the cost of all
on-site supervisory and administrative staff, office, equipment and temporary services shall not exceed amounts which are reasonable and customary for such items in the local construction
industry; 

         (v)  All
fees payable to the Architect and any engineer if they are required to redesign any portion of the Tenant Improvements following Tenant's and Landlord's approval of
the Construction Documents; 

        (vi)  Utility
connection fees; 

       (vii)  Inspection
fees and filing fees payable to local governmental authorities, if any; and 

      (viii)  All
costs of all permanently affixed equipment and non-trade fixtures provided for in the Construction Documents, including the cost of installation. 

The
Tenant Improvement Allowance shall be the maximum contribution by Landlord for the Tenant Improvement Costs, and the disbursement of the Tenant Improvement Allowance is subject to the terms
contained hereinbelow. 

        B.    Subject to Section 5.A. above, Landlord will make payments to Tenant from the Tenant Improvement Allowance to
reimburse Tenant for Tenant Improvement Costs paid or incurred by Tenant. All payments of the Tenant Improvement Allowance shall be by progress payments not more frequently than once per month and
only after satisfaction of the following conditions precedent: (a) receipt by Landlord of conditional mechanics' lien releases for the work completed and to be paid by said progress payment,
conditioned only on the payment of the sums set forth in the mechanics' lien release, executed by the Contractor and all subcontractors, labor suppliers and materialmen; (b) receipt by Landlord
of unconditional mechanics' lien releases from the Contractor and all subcontractors, labor suppliers and materialmen for all work other than that being paid by the current progress payment previously
completed by the Contractor, subcontractors, labor suppliers and materialmen and for which Tenant has received funds from the Tenant Improvement Allowance to pay for such work; (c) receipt by
Landlord of any and all documentation reasonably required by Landlord detailing the work that has been completed and the materials and supplies used as of the date of Tenant's request for the progress
payment, including, without limitation, invoices, bills, or statements for the work completed and the materials and supplies used; and (d) completion by Landlord or Landlord's agents of any
inspections of the work completed and materials and supplies used as deemed reasonably necessary by Landlord. Tenant Improvement Allowance progress payments shall be paid to Tenant within fourteen
(14) days from the satisfaction of the conditions set forth in the immediately preceding sentence. The preceding notwithstanding, all Tenant Improvement Costs paid or incurred by Tenant prior
to Landlord's approval of the Construction Documents in connection with the design and planning of the Tenant Improvements by Architect shall be paid from the Tenant Improvement Allowance, without any
retention, within fourteen (14) days following Landlord's receipt of invoices, bills or statements from Architect evidencing such costs. Notwithstanding the foregoing to the contrary, Landlord
shall be entitled to withhold and retain five percent (5%) of the Tenant Improvement Allowance or of any Tenant Improvement Allowance progress payment until the lien-free expiration of the
time for filing of any mechanics' liens claimed or which might be filed on account of any work ordered by Tenant or the Contractor or any subcontractor in connection with the construction and
installation of the Tenant Improvements. 

        C.    Landlord shall not be obligated to pay any Tenant Improvement Allowance progress payment or the Tenant Improvement
Allowance retention if on the date Tenant is entitled to receive the Tenant Improvement Allowance progress payment or the Tenant Improvement Allowance retention a Default 

F-5

 

by
Tenant of this Lease exists. Such payments shall resume upon Tenant curing any such Default within the time periods which may be provided for in the Lease. 

        D.    Should the total cost of constructing the Tenant Improvements be less than the Tenant Improvement Allowance, the Tenant
Improvement Allowance shall be automatically reduced to the amount equal to said actual cost. 

        E.    The term "Excess Tenant Improvement Costs" as used herein shall mean and
refer to the aggregate of the amount by which the actual Tenant Improvement Costs exceed the Tenant Improvement Allowance. A portion of the Excess Tenant Improvement Costs up to a maximum amount equal
to five dollars ($5.00) per rentable square footage of the Premises for a total of Three Hundred Forty Three Thousand Forty dollars ($343,040) shall be paid by Landlord in the same manner as the
Tenant Improvement Allowance and such Excess Tenant Improvement Costs will then be amortized over the initial term of the Lease at the rate of ten percent (10%) per annum and such amortized amount
(including interest charges) shall be paid by Tenant to Landlord with, and as part of, the Base Rent for the Premises in accordance with the provisions and requirements of Section 4 of the
Lease (the "Amortized Excess TI Costs"). Within two (2) weeks after the Tenant Improvements have been substantially
completed and the actual Tenant Improvement Costs are known, the parties shall execute and deliver a written amendment to the Lease, in the form acceptable to the parties, wherein there shall be
specified, inter alia, the amount of the Base Rent payable by Tenant during the initial term of the Lease after taking into account the amount of the
Amortized Excess TI Costs. Tenant shall promptly pay any and all Excess Tenant Improvement Costs in excess of the principal amount of the Amortized Excess TI Costs. 

6.    Termination.    If the Lease is terminated prior to
the date on which the Tenant Improvements are completed, for any reason due to the default of Tenant hereunder, in addition to any other remedies available to Landlord under the Lease, Tenant shall
pay to Landlord as Additional Rent under the Lease, within five (5) days of receipt of a statement therefor, any and all costs incurred by Landlord and not reimbursed or otherwise paid by
Tenant through the date of termination in connection with the Tenant Improvements to the extent planned, installed and/or constructed as of such date of termination, including, but not limited to, any
costs related to the removal of all or any portion of the Tenant Improvements and restoration costs related thereto. Subject to the provisions of Paragraph 7.4 of the Lease, upon the expiration
or earlier termination of the Lease, Tenant shall not be required to remove the Tenant Improvements it being the intention of the parties that the Tenant Improvements are to be considered incorporated
into the Building. 

7.    T8 Light Fixtures.    If Tenant removes any existing
T8 light fixtures from the Premises, Tenant agrees that such light fixtures are the property of Landlord and shall be returned to Landlord in good condition promptly upon their removal. 

8.    Lease Provisions; Conflict.    The terms and
provisions of the Lease, insofar as they are applicable, in whole or in part, to this Exhibit F, are hereby incorporated herein by reference. In
the event of any conflict between the terms of the Lease and this Exhibit F, the terms of this  Exhibit F shall prevail. Any amounts payable by
Tenant to Landlord hereunder shall be deemed to be Additional Rent under the Lease and, upon any
default in the payment of same, Landlord shall have all rights and remedies available to it as provided for in the Lease. 

F-6

   Exhibit F-1

Construction Insurance Requirements  

        Before commencing work, the contractor shall procure and maintain at its sole cost and expense until completion and final acceptance of the work, at least the
following minimum levels of insurance. 

        A.    Workers' Compensation in statutory amounts and Employers Liability Insurance in the minimum amounts of $100,000 each
accident for bodily injury by accident and $100,000 each employee for bodily injury by disease with a $500,000 policy limit, covering each and every worker used in connection with the contract work. 

        B.    Comprehensive General Liability Insurance on an occurrence basis including, but not limited to, protection for
Premises/Operations Liability, Broad Form Contractual Liability, Owner's and Contractor's Protective, and Products/Completed Operations Liability*, in the following minimum limits of liability. 

	Bodily Injury, Property Damage, and Personal Injury Liability	 	$
$	2,000,000/each occurrence

3,000,000/aggregate

	*
	Products/Completed
Operations Liability Insurance is to be provided for a period of at least one (1) year after completion of work. 

        Coverage
should include protection for Explosion, Collapse and Underground Damage. 

        C.    Comprehensive Automobile Liability Insurance with the following minimum limits of liability. 

	Bodily Injury and Property Damage Liability	 	$
$	1,000,000/each occurrence

2,000,000/aggregate

        This
insurance will apply to all owned, non-owned or hired automobiles to be used by the Contractor in the completion of the work. 

        D.    Umbrella Liability Insurance in a minimum amount of three million dollars ($3,000,000), providing excess coverage on a
following-form basis over the Employer's Liability limit in Paragraph A and the liability coverages outlined in Paragraphs B and C. 

        E.    Equipment and Installation coverages in the broadest form available covering Contractor's tools and equipment and material
not accepted by Tenant. Tenant will provide Builders Risk Insurance on all accepted and installed materials. 

        All
policies of insurance, duplicates thereof or certificates evidencing coverage shall be delivered to Landlord prior to commencement of any work and shall name Landlord, and its
partners and lenders as additional insureds as their interests may appear. All insurance policies shall (1) be issued by a company or companies licensed to be business in the state of
California, (2) provide that no cancellation, non-renewal or material modification shall be effective without thirty (30) days prior written notice provided to Landlord,
(3) provide no deductible greater than $15,000 per occurrence, (4) contain a waiver to subrogation clause in favor of Landlord, and its partners and lenders, and (5) comply with
the requirements of Section 8 of the Lease to the extent such requirements are applicable. 

F-1-1

   Addendum 1

Early Possession  

        This Early Possession Addendum is a part of the Lease dated February, 2008, by and between Headlands Realty Corporation, a Maryland Corporation  ("Landlord") and Omneon Video Networks, Inc., a Delaware corporation  ("Tenant") for the premises commonly known as
1237-1239 East Argues Avenue, Sunnyvale, California.
 

        Early Possession.    Tenant may possess the Premises on the Early Possession Date (as defined in Section 1 of this
Lease), even though the Early Possession Date is prior to the Commencement Date of the Lease ("Early
Possession"), so long as Landlord and Tenant have fully executed and delivered this Lease, Tenant has paid the Security Deposit
and all advance Rent due under the Lease and Tenant has delivered to Landlord all required insurance certificates. The obligation to pay Base Rent shall be abated for the Early Possession Period and
the obligation to pay Tenant's Share of Operating Expenses shall be abated to the extent set forth in the next succeeding sentence. Notwithstanding anything to the contrary herein, Tenant shall not be
obligated to pay Tenant's Share of Operating Expenses until the earlier of (i) the Commencement Date and (ii) the date Tenant first conducts its business upon the Premises. All other
terms of this Lease, other than those related to the payment of Base Rent and Tenant's Share of Operating Expenses, including, but not limited to, the obligation to carry the insurance required by
Paragraph 8 of the Lease, shall be in effect during the Early Possession Period. Such Early Possession shall not change the Expiration Date of the Original Term. 

Addendum 1-1

   Addendum 2

Option to Extend  

        This Addendum (the "Addendum") is incorporated as a part of that certain Lease Agreement
dated February 22, 2008 (the "Lease"), by and between Headlands Realty Corporation, a Maryland
Corporation ("Landlord"), and Omneon Video Networks, Inc., a Delaware
corporation ("Tenant"), for the leasing of those certain premises commonly known
as 1237-1239 East Arques Avenue, Sunnyvale, California, as more particularly described in Exhibit A to the Lease (the  "Premises")
. Any capitalized terms used herein and not otherwise defined herein shall have the meaning
ascribed to such terms as set forth in the Lease. 

        1.    Grant of Extension Option.    Subject to the provisions,
limitations and conditions set forth in Paragraph 5 below, Tenant shall have an Option ("Option") to extend the initial term of the Lease for
five (5) years (the "Extended Term").

        2.    Tenant's Option Notice.    Tenant shall have the right to
deliver written notice to Landlord of its intent to exercise this Option (the "Option Notice"). If
Landlord does not receive the Option Notice from Tenant on a date which is neither more than twelve (12) months nor less than nine (9) months prior to the end of the initial term of the
Lease, all rights under this Option shall automatically terminate and shall be of no further force or effect. Upon the proper exercise of this Option, subject to the provisions, limitations and
conditions set forth in Paragraph 5 below, the initial term of the Lease shall be extended for the Extended Term. 

        3.    Establishing the Initial Monthly Base Rent for the Extended
Term.    The initial monthly Base Rent for the Extended Term shall be equal to ninety five percent (95%) of the then Fair Market Rental Rate,
as hereinafter defined. As used herein, the "Fair Market Rental Rate" payable by Tenant for the Extended Term shall mean the Base Rent for the highest
and best use permitted by Applicable Requirements for comparable space at which non-equity tenants, as of the commencement of the lease term for the Extended Term, will be leasing
non-sublease, non-equity, unencumbered space comparable in size, location and quality to the Premises for a comparable term, which comparable space is located in the Building
and in other comparable first-class buildings in the vicinity of the Building, taking into consideration the condition and value of existing tenant improvements in the Premises. The Fair Market Rental
Rate shall include the periodic rental increases that would be included for space leased for the period of the Extended Term. Within thirty (30) days following Landlord's receipt of the Option
Notice, Landlord shall inform Tenant in writing of Landlord's determination of the Fair Market Rental Rate for the Premises for the Extended Term ("Landlord's Determination
Notice"). Within ten (10) business days following Tenant's receipt of Landlord's Determination Notice, Tenant shall elect one of the following: (i) Tenant shall
deliver to
Landlord a written notice rescinding Tenant's Option Notice and, thereafter, Tenant shall have no further right or ability to extend the Term of the Lease, and this Addendum shall be of no further
force or effect, (ii) Tenant shall inform Landlord in writing of the appointment by Tenant of a broker meeting the qualifications described below ("Appointment
Notice") or (iii) Tenant shall accept in writing Landlord's determination of the Fair Market Rental Rate and the initial monthly Base Rent for the Extended Term.
Tenant's failure to deliver written notice of (i), (ii) or (iii) above shall conclusively be deemed Tenant's election to rescind Tenant's Option Notice. 

        In
the event Tenant timely delivers the Appointment Notice, then within ten (10) business days of receipt by Landlord of the Appointment Notice, Landlord shall appoint a competent
and impartial commercial real estate broker (hereinafter "broker") with at least five (5) years' full-time commercial real estate brokerage experience in the geographical area of
the Premises to set the Fair Market Rental Rate for the Extended Term. If either Landlord or Tenant does not appoint a broker within ten (10) business days after the other party has given
notice of the name of its broker, the single broker appointed shall be the sole broker and shall set the Fair Market Rental Rate for the Extended Term. The two (2) brokers appointed by Landlord
and Tenant shall meet promptly and attempt to set the Fair Market Rental Rate. In addition, if either of the first two (2) brokers fails to submit their opinion of 

Addendum 2-1

 

the
Fair Market Rental Rate within the time frames set forth below, then the single Fair Market Rental Rate submitted shall automatically be utilized to set the initial monthly Base Rent for the
Extended Term and shall be binding upon Landlord and Tenant. If the two (2) brokers are unable to agree within ten (10) business days after the Landlord appoints its broker, they shall
attempt to select a third broker, meeting the qualifications stated in this paragraph within ten (10) business days after the last day the two (2) brokers are given to set the Fair
Market Rental Rate. If the two (2) brokers are unable to agree on the third broker, either Landlord or Tenant by giving ten (10) business days' written notice to the other party, can
apply to the Presiding Judge of the Superior Court of the county in which the Premises is located for the selection of a third broker who meets the qualifications stated in this paragraph. Landlord
and Tenant each shall bear the costs of their respective brokers and each shall bear one-half (1/2) of the cost of appointing the third broker and of paying the third
broker's fee. The third broker, however selected, shall be a person who has not previously acted in any capacity for either Landlord or Tenant. Within fifteen (15) business days after the
selection of the third broker, the third broker shall select one of the two Fair Market Rental Rates submitted by the first two brokers to set the Fair Market Rental Rate for the Extended Term. The
determination of the Fair Market Rental Rate by the third broker shall be binding upon Landlord and Tenant. 

        In
no event shall the monthly Base Rent for any period of the Extended Term be less than the highest monthly Base Rent charged during the initial term of the Lease. Upon determination of
the initial monthly Base Rent for the Extended Term in accordance with the terms outlined above, Landlord and Tenant shall immediately execute, at Landlord's sole option, either the standard lease
agreement then in use by Landlord, or an amendment to this Lease. Such new lease agreement or amendment, as the case may be, shall set forth among other things, the initial monthly Base Rent for the
Extended Term and the actual commencement date and expiration date of the Extended Term. Tenant shall have no other right to extend the term of the Lease under this Addendum unless Landlord and Tenant
otherwise agree in writing. 

        4.    Condition of Premises and Brokerage Commissions for the Extended
Term.    If Tenant timely and properly exercises this Option, in strict accordance with the terms contained herein: (1) Tenant shall
accept the Premises in its then "As-Is" condition and, accordingly, Landlord shall not be required to perform any additional improvements to the Premises; and (2) Tenant hereby
agrees that it will be solely responsible for any and all brokerage commissions and finder's fees payable to any broker now or hereafter procured or hired by Tenant or who otherwise claims a
commission ("Tenant's Broker") in connection with the Option. Tenant hereby further agrees that Landlord shall in no event or circumstance be
responsible for the payment of any such commissions and fees to Tenant's Broker, and Tenant shall indemnify, defend and hold Landlord free and harmless against any liability, claim, judgment, or
damages with respect thereto, including attorneys' fees and costs. 

        5.    Limitations On, and Conditions To, Extension Option.    This
Option is personal to Tenant and its Affiliate and may not be assigned, voluntarily or involuntarily, separate from or as part of the Lease. At Landlord's option, all rights of Tenant and its
Affiliate under this Option shall terminate and be of no force or effect if any of the following individual events occur or any combination thereof occur with respect to Tenant or its Affiliate:
(1) such party has been in default at any time during the initial term of the Lease, or is in default of any provision of the Lease on the date Landlord receives the Option Notice; and/or
(2) such party has assigned its rights and obligations under all or part of the Lease or such party has subleased all or part of the Premises; and/or (3) such party's financial condition
is unacceptable to Landlord at the time the Option Notice is delivered to Landlord; and/or (4) such party has failed to exercise properly this Option in a timely manner in strict accordance
with the provisions of this Addendum; and/or (5) such party no longer has possession of all or any part of the Premises under the Lease, or if the Lease has been terminated earlier, pursuant to
the terms and provisions of the Lease. 

        6.    Time is of the Essence.    Time is of the essence with respect
to each and every time period described in this Addendum. 

Addendum 2-2

QuickLinks

Exhibit 10.19

GlossaryExhibit 4.8

 

BUNGE LIMITED FINANCE
CORP.,

as Issuer

 

BUNGE LIMITED,

as Guarantor

 

AND

 

[                    ],

 

as Trustee

 

[        ]%
Senior Notes Due [        ]

 

INDENTURE

 

Dated as of
[        ]

 

 

 

	
  TABLE OF CONTENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
   

  	
   

  
	
  Definitions and
  Incorporation by Reference

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01. Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.02. Incorporation by Reference of
  Trust Indenture Act

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 1.03. Rules of Construction

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
   

  
	
  The Notes

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01. Form, Dating and Terms

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 2.02. Execution and Authentication

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 2.03. Registrar and Paying Agent

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 2.04. Paying Agent to Hold Money in
  Trust

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 2.05. Noteholder Lists

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 2.06. Transfer and Exchange

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 2.07. Mutilated, Destroyed, Lost or
  Stolen Notes

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 2.08. Outstanding Notes

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 2.09. Temporary Notes

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 2.10. Cancellation

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 2.11. Payment of Interest; Defaulted
  Interest

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 2.12. Computation of Interest

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 2.13. CUSIP and ISIN Numbers

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 2.14. Tax Treatment

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  	
   

  	
   

  
	
  Covenants

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01. Payment of Notes

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 3.02. Limitation and Restrictions on
  Activities of the Company

  	
   

  	
  22

  

 

i

 

	
   

  	
   

  	
   

  
	
  Section 3.03. Limitation on Liens

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 3.04. Limitation on Sale-Leaseback
  Transactions

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 3.05. Exclusion from Limitations

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 3.06. Maintenance of Office or Agency

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 3.07. Corporate Existence

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 3.08. Maintenance of Properties;
  Insurance

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.09. Payment of Taxes and Other Claims

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.10. Payments for Consent

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.11. Compliance Certificate

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.12. Further Instruments and Acts

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.13. Statement by Officers as to
  Default

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 3.14. Notice of Change in Bermuda Law,
  Debt Ratings

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 3.15. Offer to Repurchase Upon Change
  of Control

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
   

  
	
  Successor Guarantor

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01.
  Consolidation, Merger, Amalgamation and Sale of Assets by the Guarantor

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
   

  
	
  Optional Redemption of Notes

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01.
  Optional Redemption by the Company

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 5.02.
  Applicability of Article

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 5.03. Election to Redeem; Notice to Trustee

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 5.04.
  Selection by Trustee of Notes to Be Redeemed

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 5.05.
  Notice of Redemption

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 5.06.
  Deposit of Redemption Price

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 5.07.
  Notes Payable on Redemption Date

  	
   

  	
  32

  

 

ii

 

	
   

  	
   

  	
   

  
	
  Section 5.08.
  Notes Redeemed in Part

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
   

  
	
  Defaults and Remedies

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01.
  Events of Default

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 6.02.
  Acceleration

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section 6.03.
  Other Remedies

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section 6.04.
  Waiver of Past Defaults

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section 6.05.
  Control by Majority

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 6.06.
  Limitation on Suits

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 6.07.
  Rights of Holders to Receive Payment

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 6.08.
  Collection Suit by Trustee

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section 6.09.
  Trustee May File Proofs of Claim

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section 6.10.
  Priorities

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section 6.11.
  Undertaking for Costs

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
   

  
	
  Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01.
  Duties of Trustee

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  Section 7.02.
  Rights of Trustee

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  Section 7.03.
  Individual Rights of Trustee

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 7.04.
  Trustee’s Disclaimer

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 7.05.
  Notice of Defaults

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 7.06.
  Report by Trustee to Holders

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 7.07.
  Compensation and Indemnity

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 7.08.
  Replacement of Trustee

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
  Section 7.09.
  Successor Trustee by Merger

  	
   

  	
  42

  
	
   

  	
   

  	
   

  
	
  Section 7.10.
  Eligibility; Disqualification

  	
   

  	
  42

  

 

iii

 

	
   

  	
   

  	
   

  
	
  Section 7.11.
  Preferential Collection of Claims Against Company

  	
   

  	
  42

  
	
   

  	
   

  	
   

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

  	
   

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
   

  
	
  Discharge of Indenture; Defeasance

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01.
  Discharge of Liability on Notes; Defeasance

  	
   

  	
  43

  
	
   

  	
   

  	
   

  
	
  Section 8.02.
  Conditions to Defeasance

  	
   

  	
  44

  
	
   

  	
   

  	
   

  
	
  Section 8.03.
  Application of Trust Money

  	
   

  	
  45

  
	
   

  	
   

  	
   

  
	
  Section 8.04.
  Repayment to Company

  	
   

  	
  45

  
	
   

  	
   

  	
   

  
	
  Section 8.05.
  Indemnity for U.S. Government Securities

  	
   

  	
  46

  
	
   

  	
   

  	
   

  
	
  Section 8.06.
  Reinstatement

  	
   

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  	
   

  
	
  Amendments

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01.
  Without Consent of Holders

  	
   

  	
  46

  
	
   

  	
   

  	
   

  
	
  Section 9.02.
  With Consent of Holders

  	
   

  	
  47

  
	
   

  	
   

  	
   

  
	
  Section 9.03.
  Compliance with Trust Indenture Act

  	
   

  	
  48

  
	
   

  	
   

  	
   

  
	
  Section 9.04.
  Revocation and Effect of Consents and Waivers

  	
   

  	
  48

  
	
   

  	
   

  	
   

  
	
  Section 9.05.
  Notation on or Exchange of Notes

  	
   

  	
  48

  
	
   

  	
   

  	
   

  
	
  Section 9.06.
  Trustee to Sign Amendments

  	
   

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
   

  
	
  Guarantee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01.
  Guarantee

  	
   

  	
  49

  
	
   

  	
   

  	
   

  
	
  Section 10.02.
  No Subrogation

  	
   

  	
  50

  
	
   

  	
   

  	
   

  
	
  Section 10.03.
  Consideration

  	
   

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
   

  	
   

  
	
  Miscellaneous

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.01.
  Trust Indenture Act Controls

  	
   

  	
  50

  
	
   

  	
   

  	
   

  
	
  Section 11.02.
  Notices

  	
   

  	
  51

  

 

iv

 

	
   

  	
   

  	
   

  
	
  Section 11.03.
  Communication by Holders with Other Holders

  	
   

  	
  52

  
	
   

  	
   

  	
   

  
	
  Section 11.04.
  Certificate and Opinion as to Conditions Precedent

  	
   

  	
  53

  
	
   

  	
   

  	
   

  
	
  Section 11.05.
  Statements Required in Certificate or Opinion

  	
   

  	
  53

  
	
   

  	
   

  	
   

  
	
  Section 11.06.
  When Notes Disregarded

  	
   

  	
  53

  
	
   

  	
   

  	
   

  
	
  Section 11.07.
  Rules by Trustee, Paying Agent and Registrar

  	
   

  	
  53

  
	
   

  	
   

  	
   

  
	
  Section 11.08.
  Legal Holidays

  	
   

  	
  53

  
	
   

  	
   

  	
   

  
	
  Section 11.09.
  GOVERNING LAW

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 11.10.
  No Recourse Against Others

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 11.11.
  Successors

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 11.12.
  Consent to Jurisdiction

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 11.13.
  Appointment for Agent for Service of Process

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 11.14.
  Waiver of Immunities

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 11.15.
  Additional Amounts

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  Section 11.16.
  Judgment Currency

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  Section 11.17.
  No Bankruptcy Petition Against the Company; Liability of the Company

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  Section 11.18.
  Multiple Originals

  	
   

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 11.19.
  Qualification of Indenture

  	
   

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 11.20.
  Table of Contents; Headings

  	
   

  	
  56

  

 

	
  EXHIBIT A

  	
  Form of the
  Initial Note and Subsequent Note

  
	
  SCHEDULE 1.1

  	
  Designated Obligors and
  Material Subsidiaries

  
	
  SCHEDULE 3.4

  	
  Existing Liens

  

 

 

v

 

CROSS-REFERENCE
TABLE

 

	
  Trust
  Indenture

  	
   

  	
   

  
	
  Act
  Section

  	
   

  	
  Indenture

  
	
  310

  	
  (a)

  	
  (1)

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.10.

  
	
   

  	
  (a)

  	
  (2)

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.10.

  
	
   

  	
  (a)

  	
  (3)

  	
   

  	
   

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (a)

  	
  (4)

  	
   

  	
   

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.08., Section 7.10.

  
	
   

  	
  (c)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.11.

  
	
   

  	
  (b)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.11.

  
	
   

  	
  (c)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 2.05.

  
	
   

  	
  (b)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 11.03.

  
	
   

  	
  (c)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 11.03.

  
	
  313

  	
  (a)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 11.06.

  
	
   

  	
  (b)

  	
  (1)

  	
   

  	
   

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
  (2)

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.06.

  
	
   

  	
  (c)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.06.

  
	
   

  	
  (d)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.06.

  
	
  314

  	
  (a)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 3.10., Section 11.02.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 11.05.

  
	
   

  	
  (b)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
  (1)

  	
   

  	
   

  	
   

  	
   

  	
  Section 11.04.

  
	
   

  	
  (c)

  	
  (2)

  	
   

  	
   

  	
   

  	
   

  	
  Section 11.04.

  
	
   

  	
  (c)

  	
  (3)

  	
   

  	
   

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 11.05.

  
	
  315

  	
  (a)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.01.

  
	
   

  	
  (b)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.05., Section 11.02.

  
	
   

  	
  (c)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.01.

  
	
   

  	
  (d)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 7.01.

  
	
   

  	
  (e)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 6.11.

  
	
  316

  	
  (a)

  	
  (last sentence)

  	
   

  	
   

  	
   

  	
  Section 11.06.

  
	
   

  	
  (a)

  	
  (1)(A)

  	
   

  	
   

  	
   

  	
  Section 6.05.

  
	
   

  	
  (a)

  	
  (1)(B)

  	
   

  	
   

  	
   

  	
  Section 6.04.

  
	
   

  	
  (a)

  	
  (2)

  	
   

  	
   

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 6.08.

  
	
  317

  	
  (a)

  	
  (1)

  	
   

  	
   

  	
   

  	
   

  	
  Section 6.08.

  
	
   

  	
  (a)

  	
  (2)

  	
   

  	
   

  	
   

  	
   

  	
  Section 6.09.

  
	
   

  	
  (b)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 2.04.

  
	
  318

  	
  (a)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Section 11.01.

  
									

 

N.A. means Not
Applicable.

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

 

i

 

INDENTURE dated as of
[        ], among BUNGE  LIMITED FINANCE CORP., a Delaware corporation
(the “Company”), as issuer, BUNGE LIMITED, a
company formed under the laws of Bermuda with limited liability (the “Guarantor”), as guarantor, and
[        ] (the “Trustee”),
as trustee.

 

Each party agrees as
follows for the benefit of the other parties and for the equal and ratable
benefit of the Holders of (i) the Company’s
[        ]% Senior Notes Due
[            ]
issued on the date hereof and the guarantees thereof by the Guarantor (the “Initial Notes”) and (ii) if and when issued, additional
[      ]% Senior Notes Due
[        ] which may be offered during
the Subsequent Issuance Period and the guarantees thereof by the Guarantor (the
“Subsequent Notes” and together with the
Initial Notes, the “Notes”).

 

ARTICLE
1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01. 
Definitions.

 

“Affiliate” means, with respect to any specified
Person, any other Person, directly or indirectly, controlling or controlled by
or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any Person
means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing; provided, however, that the existence of a
management contract by the Company or an Affiliate of the Company to manage
another entity shall not be deemed to be control.

 

“Agent Member”
has the meaning ascribed to it in Section 2.01(d)(iii) hereof.

 

“Attributable Indebtedness” means, when used with respect to any
Sale-Leaseback Transaction, as at the time of determination, the present value
(discounted at the rate of interest set forth in or implicit in the terms of
the lease) of the total obligations of the lessee for rental payments (other
than amounts required to be paid on account of property taxes, maintenance,
repairs, insurance, assessments, utilities, operating and labor costs and other
items that do not constitute payments for property rights) during the remaining
term of the lease included in such Sale-Leaseback Transaction (including any period
for which such lease has been extended).

 

“Authenticating Agent” has the meaning ascribed to it in Section 2.02
hereof.

 

“Below
Investment Grade Rating Event” means the Notes are rated below an
Investment Grade Rating by both Rating Agencies on any date from the date of
the public notice of an event that would, if consummated, result in a Change of
Control until the end of the sixty (60) day period following public notice of
the occurrence of the Change of Control, which sixty (60) day period shall be extended
so long as the rating of the Notes is under publicly announced consideration
for possible downgrade by both of the Rating Agencies.

 

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

 

 

“Bunge Master Trust” means the trust created pursuant to the
Pooling Agreement, a beneficial interest in the assets of which the Company has
acquired through the Series 2002-1 VFC.

 

“Business Day” means a day other than a Saturday,
Sunday or other day on which commercial banking institutions are authorized or
required by law to close in The City of New York, New York.

 

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

 

“Change of
Control” means the occurrence of any of the following:

 

(1)           the Guarantor becomes aware (by way
of a report or any other filing pursuant to Section 13(d) of the
Exchange Act, proxy, vote, written notice or otherwise) of the acquisition by
any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of
the Exchange Act, or any successor provision), including any group acting for
the purpose of acquiring, holding or disposing of securities (within the
meaning of Rule 13d-5(b)(1) under the Exchange Act), in a single
transaction or in a related series of transactions, by way of merger,
consolidation or other business combination, of 50% or more of the total voting
power of the Voting Stock of the Guarantor then outstanding;

 

(2)           the sale, lease or transfer, in one
or a series of related transactions, of all or substantially all of the assets
of the Guarantor and its Subsidiaries, taken as a whole, to any Person that is
not a Subsidiary of the Guarantor; or

 

(3)           the first day on which a majority of
the members of the Guarantor’s Board of Directors are not Continuing Directors.

 

“Change of
Control Offer” has the meaning ascribed to it in Section 3.15
hereof.

 

“Change of
Control Payment” has the meaning ascribed to it in Section 3.15
hereof.

 

“Change of
Control Payment Date” has the meaning ascribed to it in Section 3.15
hereof.

 

“Change of
Control Triggering Event” means the occurrence of both a Change of
Control and a Below Investment Grade Rating Event.

 

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

 

“Company”
means Bunge Limited Finance Corp. or its successor.

 

“Company
Order” has the meaning ascribed to it in Section 2.02 hereof.

 

 

2

 

“Consolidated
Net Tangible Assets” means, at any date of determination, the total
amount of assets of the Guarantor and its consolidated Subsidiaries after
deducting therefrom:

 

(1)           all current liabilities (excluding
any current liabilities that by their terms are extendable or renewable at the
option of the obligor thereon to a time more than 12 months after the time as
of which the amount thereof is being computed);

 

(2)           total prepaid expenses and deferred
charges; and

 

(3)           all goodwill, trade names,
trademarks, patents, licenses, copyrights and other intangible assets, all as
set forth, or on a pro forma basis would be set forth, on the consolidated
balance sheet of the Guarantor and its consolidated Subsidiaries for its most
recently completed fiscal quarter, prepared in accordance with U.S. GAAP.

 

“Continuing
Directors” means, as of any date of determination, any member of the
Board of Directors of the Guarantor who (1) was a member of such Board of
Directors on the date of the issuance of the Initial Notes; or (2) was
nominated for election, appointed or elected to such Board of Directors with
the approval of a majority of the Continuing Directors who were members of such
Board of Directors at the time of such nomination or election (either by a
specific vote or by approval of the Guarantor’s proxy statement in which such
member was named as a nominee for election as a director).

 

“Corporate
Trust Office” has the meaning ascribed to it in Section 3.05
hereof.

 

“covenant
defeasance option” has the meaning ascribed to it in Section 8.01(b) hereof.

 

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

 

“Defaulted
Interest” has the meaning ascribed to it in Section 2.11
hereof.

 

“Definitive
Notes” means certificated Notes.

 

“Designated
Obligor” means the Guarantor and the Subsidiaries of the Guarantor
set forth on Schedule 1.1 hereto and any other Subsidiary designated by the Guarantor
from time to time, and each of their successors.

 

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

 

“Equity
Interests” means Capital Stock and all warrants, options or other
rights to acquire Capital Stock, but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock.

 

“Event of
Default” has the meaning ascribed to it in Section 6.01 hereof.

 

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

 

3

 

“Fair Market
Value” means, with respect to any property, the sale value of such
property that would be realized in an arms-length sale at such time between an
informed and willing buyer, and an informed and willing seller, under no
compulsion to buy or sell, respectively.

 

“Fiscal Year”
means the fiscal year of the Company ending on December 31 of each year.

 

“Global Note”
has the meaning ascribed to it in Section 2.01(a) hereof.

 

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

 

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

 

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

 

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

 

“Guarantee”
means any guarantee of payment of the Notes and any other obligations of the
Company by the Guarantor pursuant to the terms of this Indenture.

 

“Guarantor”
means Bunge Limited.

 

“Guaranty”
means the Sixth Amended and Restated Guaranty, dated as of June 11, 2007,
by the Guarantor to Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.,
JPMorgan Chase Bank, N.A. and the Master Trust Trustee, as the same may be
amended, supplemented or otherwise modified from time to time in accordance
with its terms, subject to Section 3.02(f) hereof.

 

“Hedge
Agreements” means all interest rate swaps, caps or collar agreements
or similar arrangements dealing with interest rates or currency exchange rates
or the exchange of nominal interest obligations, either generally or under
specific contingencies.

 

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

 

“Indebtedness”
means, as to any Person, without duplication, (a) all obligations of such
Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments, (c) all obligations
of such Person to pay the deferred purchase 

 

4

 

price of property,
except trade accounts payable arising in the ordinary course of business, (d) all
obligations of such Person as lessee which are capitalized in accordance with
U.S. GAAP, (e) all obligations of such Person created or arising under any
conditional sales or other title retention agreement with respect to any
property acquired by such Person (including without limitation, obligations
under any such agreement which provides that the rights and remedies of the
seller or lender thereunder in the event of default are limited to repossession
or sale of such property), (f) all obligations of such Person with respect
to letters of credit and similar instruments, including without limitation
obligations under reimbursement agreements, (g) all Indebtedness of others
secured by (or for which the holder of such Indebtedness has existing right,
contingent or otherwise, to be secured by) a Lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person, (h) all net
obligations of such Person in respect of equity derivatives and Hedge
Agreements and (i) all guarantees of such Person (other than guarantees of
obligations of direct or indirect Subsidiaries of such Person).

 

“Indenture”
means this Indenture, as amended or supplemented from time to time in accordance
with its terms.

 

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

 

“Investment
Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB- (or the equivalent) by S&P, or an
equivalent rating by any other Rating Agency.

 

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

 

“legal
defeasance option” has the meaning ascribed to it in Section 8.01(b) hereof.

 

“Legal
Holiday” has the meaning ascribed to it in Section 11.08
hereof.

 

“Lien”
means any mortgage, lien, security interest, pledge, charge or other
encumbrance.

 

“Master Trust
Transaction Documents” means the collective reference to the Pooling
Agreement, the Series 2002-1 Supplement, the Series 2002-1 VFC, the
Sale Agreement, the Servicing Agreement and the Guaranty.

 

“Master Trust
Trustee” means The Bank of New York, as trustee under, and for the
purposes of, the Master Trust Transaction Documents, and any successor thereto.

 

“Material
Adverse Effect” means a material adverse effect, or any development
involving a prospective material adverse effect, in the condition, financial or
otherwise, or in the earnings, business or operations of the Guarantor and its
consolidated Subsidiaries taken as a whole.

 

“Material
Subsidiary” means, at any time, any Subsidiary of the Guarantor
which at such time is a “Significant Subsidiary” under Regulation S-X of the
Exchange Act.  The Material Subsidiaries
as of the date hereof are set forth on Schedule 1.1 hereto.

 

5

 

“Moody’s”
means Moody’s Investors Service, Inc. and any successor to its rating
agency business.

 

“Note
Register” means the register of Notes, maintained by the Registrar,
pursuant to Section 2.03 hereof.

 

“Notes”
means the collective reference to the Initial Notes and the Subsequent Notes.

 

“Obligations”
has the meaning ascribed to it in Section 10.01 hereof.

 

“Officer”
means the Chairman of the Board of Directors, the Chief Executive Officer, the
President, the Chief Financial Officer, any Vice President, the Treasurer, the
Controller or the Secretary of the Company or the Guarantor, as applicable.

 

“Officer’s
Certificate” means a certificate signed by an Officer or
attorney-in-fact of the Company or the Guarantor, as applicable.

 

“Opinion of
Counsel” means a written opinion from legal counsel, which counsel
may be an employee of or counsel to the Company, who shall be acceptable to the
Trustee.  The form and substance of such
Opinion of Counsel shall likewise be acceptable to the Trustee.

 

“Pari Passu
Indebtedness” means Indebtedness for borrowed money, the proceeds of
which are used to purchase interests in the Series 2002-1 VFC and/or
refinance Indebtedness originally used for such purpose, and Indebtedness
incurred in connection with Hedge Agreements, in each case which ranks not
greater than pari passu (in priority of payment) with the Notes.

 

“Paying Agent”
means the Person (including the Company, the Guarantor or any Subsidiary)
authorized by the Company to pay the principal of (or premium, if any) or
interest, if any, on any Notes on behalf of the Company.

 

“Permitted
Indebtedness” means (a) Indebtedness of the Company under the
Notes and (b) Pari Passu Indebtedness.

 

“Permitted
Liens” means:

 

(1)           Liens for current taxes, assessments
or other governmental charges which are not delinquent or remain payable
without any penalty, or the validity of which is contested in good faith by
appropriate proceedings upon stay of execution of the enforcement thereof or
upon posting a bond in connection therewith;

 

(2)           any Lien pursuant to any order or
attachment or similar legal process arising in connection with court
proceedings; provided that the execution or other enforcement thereof is
effectively stayed or a sufficient bond had been posted and the claims secured
thereby are being contested at the time in good faith by appropriate
proceedings;

 

(3)           any Liens securing bonds posted with
respect to and in compliance with clauses (1) and (2) above;

 

6

 

(4)           any Liens securing the claims of
mechanics, laborers, workmen, repairmen, materialmen, suppliers, carriers,
warehousemen, landlords, or vendors or other claims provided for by mandatory
provisions of law which are not yet due and delinquent, or are being contested
in good faith by appropriate proceedings;

 

(5)           any Lien on any Restricted Property
securing Indebtedness incurred or assumed solely for the purpose of financing
all or any part of the cost of constructing or acquiring such Restricted
Property, which Lien attaches to such Restricted Property concurrently with or
within 120 days after construction, acquisition or completion of a series of
related acquisitions thereof;

 

(6)           Liens existing immediately prior to
the execution and delivery of this Indenture (and listed on Schedule 3.4
hereto);

 

(7)           Liens to secure bonds posted in order
to obtain stays of judgments, attachments or orders, the existence of which
bonds would not otherwise constitute an Event of Default;

 

(8)           Liens on Restricted Property existing
prior to the acquisition of such Restricted Property or the acquisition of any
Subsidiary that is the owner of such Restricted Property or arising as a result
of contractual commitments to grant a Lien relating to such Restricted Property
or such Subsidiary existing prior to such acquisition;

 

(9)           Liens created by a Restricted
Subsidiary in favor of the Company, the Guarantor or a Subsidiary;

 

(10)         Liens on any accounts receivable from
or invoices to export customers (including, but not limited to, Subsidiaries)
and the proceeds thereof;

 

(11)         Liens on rights under contracts to
sell, purchase or receive commodities to or from export customers (including,
but not limited to, Subsidiaries) and the proceeds thereof;

 

(12)         Liens on cash deposited as collateral
in connection with financings where Liens are permitted under clause (10) and
(11) of this definition;

 

(13)         Liens extending, renewing or replacing,
in whole or in part Liens permitted pursuant to (i) clauses (1) through
(5) and (7) through (12), so long as the principal amount of the
Indebtedness secured by such Lien does not exceed its original principal amount
and (ii) in the case of clause (6), so long as the principal amount of the
Indebtedness secured by such Lien does not exceed the principal amount thereof
outstanding immediately prior to the execution and delivery of the Indenture;

 

(14)         minor survey exceptions or minor
encumbrances, easements or reservations, or rights of others for rights-of-way,
utilities and other similar purposes, or zoning or other restrictions as to the
use of real properties that constitute Restricted Property, which are necessary
for the conduct of the activities of the Guarantor or any Restricted Subsidiary
or which customarily exist on properties of corporations engaged in similar
activities and similarly situated and which do not in any event materially
impair their use in the operation of the business of the Guarantor or any
Restricted Subsidiary;

 

7

 

(15)         Liens on accounts receivable and other
related assets arising in connection with transfers thereof to the extent that
such transfers are treated as sales of financial assets under FASB Statement No. 140,
as in effect from time to time; and

 

(16)         Liens on intercompany loans made to the
Guarantor or its Subsidiaries or on any notes or other instruments representing
an interest in such intercompany loans in each case as set forth in the Master
Trust Transaction Documents.

 

For purposes of this
definition above, (A) the phrases “accounts receivable from or invoices to
export customers” and “contracts to sell, purchase or receive commodities to
(from) export customers” shall refer to invoices or accounts receivable derived
from the sale of, or contracts to sell, purchase or receive wheat, soybeans or
other commodities or products derived from the processing of wheat, soybeans or
other commodities, by or to the Guarantor or a Restricted Subsidiary that have
been or are to be exported from the country of origin whether or not such sale
is made by a Restricted Subsidiary or to any of its Subsidiaries; and (B) property
of a party to a corporate reorganization which is not the Guarantor or a
Restricted Subsidiary shall be deemed to be or have been “acquired” by the
Guarantor or such Restricted Subsidiary as part of such corporate
reorganization even if the Guarantor or such Restricted Subsidiary, as the case
may be, is not the surviving or continuing entity.

 

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

 

“Pooling
Agreement” means the Fifth Amended and Restated Pooling Agreement,
dated as of June 28, 2004, among Bunge Funding, Inc., Bunge
Management Services, Inc., as servicer, and The Bank of New York, in its
capacity as Master Trust Trustee, as amended, modified or supplemented from
time to time in accordance with its terms, subject to Section 3.02(f) hereof.

 

“Principal
Trust Office” means the Corporate Trust Office or such other trust
office or agency as may be designated by the Trustee in writing to the Company
from time to time.  The initial Principal
Trust Office shall be the office of the Trustee to which notices are to be sent
as set forth in Section 11.02 hereof.

 

“Property”
means any property, whether presently owned or hereafter acquired, including
any asset, revenue, or right to receive income or any other property, whether
tangible or intangible, real or personal.

 

“Rating
Agencies” means Moody’s and S&P or if Moody’s or S&P, or
both, cease to rate the Notes or fails to make a rating of the Notes publicly
available, a nationally recognized statistical rating agency or agencies, as
the case may be, selected by Bunge Limited which shall be substituted for Moody’s
or S&P, or both of them, as the case may be.

 

“Redemption
Date” means, with respect to any redemption of Notes, the date of
redemption with respect thereto.

 

 

8

 

“Redemption
Price” has the meaning ascribed to it under the section entitled “Optional
Redemption by the Company” on the reverse side of the Notes, the forms of which
are attached as Exhibits A and B hereto.

 

“Registrar”
has the meaning ascribed to it in Section 2.03 hereof.

 

“Representatives
to the Underwriters” means
[        ] and
[        ].

 

“Restricted
Property” means any building, mine, structure or other facility
(together with the land on which it is erected and fixtures comprising a part
thereof) and inventories now owned or hereafter acquired by the Guarantor or
any Subsidiary and used for oilseed or grain origination, processing,
transportation or storage, mining or fertilizer refining or storage.

 

“Restricted
Subsidiary” means (a) any Subsidiary that has been designated
by the Guarantor as eligible for intercompany loans to be made by the master
trust under the Master Trust Transaction Documents, (b) any other
Subsidiary which is a “significant subsidiary” under Regulation S-X under the
Securities Act, or (c) any other Subsidiary that owns or leases any
Restricted Property the aggregate Fair Market Value of which, as determined by
the Board of Directors of the Guarantor, exceeds three percent of Consolidated
Net Tangible Assets.  Notwithstanding the
foregoing, Fertilizantes Fosfatados S.A.-Fostertil shall not be deemed a
Restricted Subsidiary of the Guarantor for the purpose of the covenants
described under Section 3.02 and Section 3.03.

 

“Sale-Leaseback
Transaction” means the sale or transfer by the Guarantor or any
Restricted Subsidiary of any Restricted Property to a Person (other than the
Guarantor or a Restricted Subsidiary) and the taking back by the Guarantor or
any Restricted Subsidiary, as the case may be, of a lease of such Restricted
Property.

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. and any successor to its rating agency
business.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

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

 

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

 

“Series 2002-1
Supplement” means the Fourth Amended and Restated Series 2002-1
Supplement to the Pooling Agreement, dated as of February 15, 2008, among
the Company, Bunge Funding, Inc., Bunge Management Services, Inc. and
the Master Trust Trustee, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms, subject to Section 3.02(f) hereof.

 

“Series 2002-1 VFC”
means the interest in the Bunge Master Trust created and authorized pursuant to
a supplement to the Pooling Agreement that is designated as the “Series 2002-1
VFC Certificate” in which the Company will acquire a beneficial interest with
the net proceeds of the Notes and other Permitted Indebtedness.

 

 

9

 

“Servicing Agreement”
means the Third Amended and Restated Servicing Agreement, dated as of December 23,
2003 among Bunge Funding, Inc., Bunge Management Services, Inc., as
the servicer, and The Bank of New York, in its capacity as the Master Trust
Trustee, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with its terms, subject to Section 3.02(f) hereof.

 

“Special
Interest Payment Date” has the meaning ascribed to it in Section 2.11
hereof.

 

“Special
Record Date” has the meaning ascribed to it in Section 2.11
hereof.

 

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

 

“Subsequent Issuance Period” shall mean the
period commencing on the date hereof and ending on
[        ].

 

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

 

“Subsidiary”
means any corporation, limited liability company or other business entity of
which the requisite number of shares of stock or other equity ownership
interests having ordinary voting power (without regard to the occurrence of any
contingency) to elect a majority of the directors, managers or trustees
thereof, or any partnership of which more than 50% of the partners’ equity
interests (considering all partners’ equity interests as a single class) is, in
each case, at the time owned or controlled, directly or indirectly, by a
Person, one or more of the Subsidiaries of such Person, or combination thereof.

 

“Successor
Guarantor” has the meaning ascribed to it in Section 4.01
hereof.

 

“Trust
Indenture Act” means the U.S. Trust Indenture Act of 1939, as in
effect on the date of this Indenture.

 

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

 

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

 

“Underwriters”
means, collectively, [        ] and
[        ].

 

10

 

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

 

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

 

“Voting Stock”
of any Person as of any date means the Capital Stock of such Person that is at
the time entitled to vote in the election of the Board of Directors of such
Person.

 

Section 1.02.  Incorporation by Reference
of Trust Indenture Act. This Indenture is subject to the mandatory
provisions of the Trust Indenture Act which are incorporated by reference in
and made a part of this Indenture.  The
following Trust Indenture Act terms have the following meanings:

 

“Commission” means the
SEC.

 

“indenture securities”
means the Notes.

 

“indenture security
holder” means a Noteholder.

 

“indenture to be
qualified” means this Indenture.

 

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

 

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

 

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

 

Section 1.03.  Rules of Construction. 
Unless the context otherwise requires:

 

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

 

 

11

 

 

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

 

(3)                                  “or” is not exclusive;

 

(4)                                  “including” means including without
limitation;

 

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

 

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

 

ARTICLE 2

THE NOTES

 

Section 2.01. 
Form, Dating and Terms.  (a)  The Initial Notes are being offered
and sold by the Company pursuant to an Underwriting Agreement, dated
[        ] among the Company, the
Guarantor and Representatives to the Underwriters.

 

Initial Notes offered and
sold to the Underwriters will be issued on the Issue Date in the form of a
permanent global Note, without interest coupons, substantially in the form of Exhibit A
hereto, which is hereby incorporated by reference and made a part of this
Indenture, including appropriate legends as set forth in Section 2.01(c) hereof
(the “Global Note”), deposited with the
Trustee, as custodian for DTC, duly executed by the Company and authenticated
by the Trustee as hereinafter provided. 
The Global Note may be represented by more than one certificate, if so
required by DTC’s rules regarding the maximum principal amount to be
represented by a single certificate.  The
aggregate principal amount of the Global Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for DTC or its nominee, as hereinafter provided.

 

Except as described in
the succeeding two sentences, the principal of and premium, if any, and
interest on the Notes shall be payable at the office or agency of the Company
maintained for such purpose in The City of New York, or at such other office or
agency of the Company as may be maintained for such purpose pursuant to Section 2.03
hereof; provided, however, that, at the option of the Company, each installment
of interest may be paid by check mailed to addresses of the Persons entitled
thereto as such addresses shall appear on the Note Register.  Payments in respect of Notes represented by a
Global Note (including principal, premium and interest) will be made by wire
transfer of immediately available funds to the accounts specified by DTC.  Payments in respect of Notes represented by
Definitive Notes (including principal, premium, if any, and interest) held by a
Holder of at least U.S.$1,000,000 aggregate principal amount of Notes
represented by Definitive Notes will be made by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 15 days
immediately preceding the relevant due date for payment (or such other date as
the Trustee may accept in its discretion).

 

 

12

 

 

Any Subsequent Notes
shall be in the form of Exhibit A hereto.

 

The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage, in addition to those set forth on Exhibit A hereto and in Section 2.01(c) hereof.  The Company and the Trustee shall approve the
forms of the Notes and any notation, endorsement or legend on them.  Each Note shall be dated the date of its
authentication.  The terms of the Notes
set forth in Exhibit A hereto are part of the terms of this Indenture and,
to the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to be bound by such terms.

 

The Notes shall be
subject to repurchase by the Company pursuant to a Change of Control Offer as
provided in Section 3.15 hereof. 
The Notes shall not be redeemable, other than as provided in Article V.

 

(b)                                 Denominations. 
The Notes shall be issuable only in fully registered form, without
coupons, and only in denominations of U.S.$1,000 and any integral multiple
thereof.

 

(c)                                  Legends.  Each of the
Global Notes, whether or not an Initial Note, shall bear the following legend
on the face thereof:

 

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

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR’S NOMINEE.”

 

(d)                                 Book-Entry Provisions.  (i) This
Section 2.01(d) shall apply only to Global Notes deposited with the
Trustee, as custodian for DTC.

 

(ii)                                  Each Global
Note initially shall (A) be registered in the name of DTC or the nominee
of DTC, (B) be delivered to the Trustee as custodian for DTC and (C) bear
legends as set forth in Section 2.01(c) hereof.

 

(iii)                               Members of, or
participants in, DTC (“Agent Members”)
shall have no rights under this Indenture with respect to any Global Note held
on their behalf by DTC or by the Trustee as the custodian of DTC or under such
Global Note, and DTC may be treated by the Company, the Trustee and any agent
of the Company or the Trustee as the

 

 

13

 

absolute owner of such Global Note for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by DTC or impair, as between DTC and its Agent Members,
the operation of customary practices of DTC governing the exercise of the
rights of a Holder of a beneficial interest in any Global Note.

 

(iv)                              In connection
with any transfer of a portion of the beneficial interest in a Global Note
pursuant to Section 2.01(e) hereof to beneficial owners who are
required to hold Definitive Notes, the Securities Custodian shall reflect on
its books and records the date and a decrease in the principal amount of such
Global Note in an amount equal to the principal amount of the beneficial
interest in the Global Note to be transferred, and the Company shall execute,
and the Trustee shall authenticate and deliver, one or more Definitive Notes of
like tenor and amount.

 

(v)                                 In connection
with the transfer of an entire Global Note to beneficial owners pursuant to Section 2.01(e) hereof,
such Global Note shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall authenticate
and deliver, to each beneficial owner identified by DTC in exchange for its
beneficial interest in such Global Note, an equal aggregate principal amount of
Definitive Notes of authorized denominations.

 

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

 

(e)                                  Definitive Notes.

 

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

 

(ii)                                  In connection
with the exchange of a portion of a Definitive Note for a beneficial interest
in a Global Note, the Trustee shall cancel such Definitive Note, and the 

 

14

 

 

Company shall execute, and the Trustee shall authenticate and deliver,
to the transferring Holder a new Definitive Note representing the principal
amount not so transferred.

 

Section 2.02. 
Execution and Authentication.  One Officer shall execute the Notes, on
behalf of the Company, by manual or facsimile signature.  If an Officer whose signature is on a Note no
longer holds that office at the time the Trustee authenticates the Note, the
Note shall be valid nevertheless.

 

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

 

The Trustee shall
authenticate and make available for delivery: (1) at any time and from
time to time after the execution and delivery of this Indenture, the Initial
Notes for original issue on the Issue Date initially in an aggregate principal
amount of U.S. $1,000,000,000; and (2) at any time during the Subsequent
Issuance Period, if and when issued, the Subsequent Notes, in each case upon a
written order of the Company signed by two Officers or by an Officer and an
Assistant Treasurer or an Assistant Secretary of the Company (the “Company Order”).  Such
Company Order shall specify the amount of the Notes to be authenticated and the
date on which the original issue of Notes is to be authenticated and whether
the Notes are to be Initial Notes or Subsequent Notes.  The aggregate principal amount of Notes which
may be authenticated and delivered under this Indenture is initially limited to
U.S. $1,000,000,000 outstanding (plus any Subsequent Notes), except for Notes
authenticated and delivered upon registration or transfer of, or in exchange
for, or in lieu of, other Notes of the same class pursuant to Section 2.06,
Section 2.07, Section 2.09, Section 5.08 or Section 9.05
hereof.  All Notes issued on the Issue
Date and all Subsequent Notes shall be identical in all respects other than
issue dates, the date from which interest accrues and any changes relating
thereto.  Unless otherwise provided in
this Indenture, the Initial Notes and any Subsequent Notes will be treated as a
single class of securities under this Indenture.  Without limiting the generality of the
foregoing sentence, unless otherwise provided in this Indenture, all Notes
issued under this Indenture shall vote and consent together on all matters as
one class and no Notes will have the right to vote or consent as a separate
class on any matter.  Notwithstanding any
provision to the contrary contained in this Indenture, the Company shall not
issue any Subsequent Notes after the Subsequent Issuance Period.

 

The Trustee may appoint
an agent (the “Authenticating Agent”) reasonably
acceptable to the Company to authenticate the Notes.  Unless limited by the terms of such
appointment, any such Authenticating Agent may authenticate Notes whenever the
Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by the
Authenticating Agent.  An Authenticating
Agent has the same rights as a Paying Agent to deal with Holders or an
Affiliate of the Company.

 

Section 2.03. 
Registrar and Paying Agent.  The Company shall cause to be kept a register
for the Notes (the “Note Register”)
in which, subject to such reasonable regulations as the Company may prescribe,
the Company shall provide for the registration of the Notes and of all
transfers and exchanges with respect thereto. 
The Note Register shall be maintained by the Trustee or such other
Person (including the Company or the Guarantor) appointed by the

 

 

15

 

 

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

 

The Company shall enter
into an appropriate agency agreement with any Registrar and Paying Agent that
is not a party to this Indenture, which shall incorporate the terms of the
Trust Indenture Act.  The agreement shall
implement the provisions of this Indenture that relate to such agent.  The Company shall notify the Trustee of the
name and address of each such agent.  If
the Company fails to maintain a Registrar or Paying Agent, the Trustee shall
act as such and shall be entitled to appropriate compensation therefor pursuant
to Section 7.07 hereof.  The Company,
the Guarantor or any Subsidiary of the Company or the Guarantor may act as
Paying Agent, Registrar, co registrar or transfer agent.

 

The Company initially
appoints DTC to act as depository with respect to the Global Notes.  The Trustee is authorized to enter into a
letter of representations with DTC in the form provided to the Trustee by the
Company and to act in accordance with such letter.

 

The Company initially
appoints the Trustee as Registrar and Paying Agent for the Notes.

 

Section 2.04. 
Paying Agent to Hold Money in Trust.  By at least 10:00 a.m. (New York City
time) on the date on which any principal of and premium, if any, or interest on
any Note is due and payable, the Company shall deposit with the Paying Agent a
sum sufficient to pay such principal, premium, if any, or interest when
due.  The Company shall require each
Paying Agent (other than the Trustee) to agree in writing that such Paying
Agent shall hold in trust for the benefit of Noteholders or the Trustee all
money held by such Paying Agent for the payment of principal of and premium, if
any, or interest on the Notes and shall notify the Trustee in writing of any
default by the Company or the Guarantor in making any such payment.  If the Company, the Guarantor or a Subsidiary
of the Company or the Guarantor acts as Paying Agent, it shall segregate the
money held by it as Paying Agent and hold it as a separate trust fund.  The Company at any time may require a Paying
Agent (other than the Trustee) to pay all money held by it to the Trustee and
to account for any funds disbursed by such Paying Agent.  Upon complying with this Section 2.04,
the Paying Agent (if other than the Company or a Subsidiary of the Company or
the Guarantor) shall have no further liability for the money delivered to the
Trustee.  Upon any bankruptcy,
reorganization or similar proceeding with respect to the Company, the Trustee
shall serve as Paying Agent for the Notes.

 

Section 2.05. 
Noteholder Lists.  The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Noteholders and shall otherwise comply with Trust
Indenture Act, Section 312(a).  If
the Trustee is not the Registrar, or to the extent otherwise required under the
Trust Indenture Act, the Company, on its own behalf and on behalf of the
Guarantor, shall furnish to the Trustee, in writing at least seven Business
Days before each interest payment date and at such other times as the Trustee
may request in writing, a list in such form and as of such date as the Trustee
may 

 

 

16

 

 

reasonably require of the names and addresses of Noteholders and the
Company shall otherwise comply with Trust Indenture Act, Section 312(a).

 

Section 2.06. 
Transfer and Exchange.

 

(a)                                  The Registrar shall retain copies of all
letters, notices and other written communications received pursuant to Section 2.01
hereof or this Section 2.06.  The
Company shall have the right to inspect and make copies of all such letters,
notices or other written communications at any reasonable time upon the giving
of reasonable prior written notice to the Registrar.

 

(b)                                 Obligations with Respect to Transfers and
Exchanges of Notes.

 

(i)                                     To permit
registrations of transfers and exchanges, the Company shall, subject to the
other terms and conditions of this Article 2, execute and the Trustee
shall authenticate Definitive Notes and Global Notes at the Registrar’s or
co-registrar’s request.

 

(ii)                                  No service
charge shall be made to a Holder for any registration of transfer or exchange,
but the Company or the Guarantor may require from a Holder payment of a sum
sufficient to cover any transfer tax, assessments, or similar governmental
charge payable in connection therewith (other than any such transfer taxes,
assessments or similar governmental charges payable upon exchange or transfer
pursuant to Section 3.15 and Section 9.05 hereof).

 

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

 

(iv)                              Prior to the
due presentation for registration of transfer of any Note, the Company, the
Trustee, the Paying Agent, the Registrar or any co-registrar may deem and treat
the person in whose name a Note is registered as the absolute owner of such
Note for the purpose of receiving payment of principal of and premium, if any,
and interest on such Note and for all other purposes whatsoever, whether or not
such Note is overdue, and none of the Company, the Trustee, the Paying Agent,
the Registrar or any co registrar shall be affected by notice to the contrary.

 

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

 

(vi)                              All Global
Notes shall be registered in the name of DTC, or a nominee thereof, and all
transfers of beneficial ownership interests therein will be made in accordance
with the rules of DTC.  No investor
or other party purchasing, selling or otherwise transferring beneficial
ownership interests in Global Notes shall receive, hold or deliver any
certificate representing the same.  The
Company, the Guarantor and the 

 

17

 

 

Trustee shall have no responsibility or liability for transfers of
beneficial ownership interests in any Global Note.

 

(c)                                  No Obligation of the Trustee.

 

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

 

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

 

Section 2.07. 
Mutilated, Destroyed, Lost or Stolen Notes.  If a mutilated Note is surrendered to the
Registrar or if the Holder of a Note claims that the Note has been lost,
destroyed or wrongfully taken, the Company shall issue and the Trustee shall
authenticate a replacement Note if the requirements of Section 8-405 of
the New York Uniform Commercial Code are met and the Holder satisfies any other
reasonable requirements of the Trustee. 
If required by the Trustee or the Company, such Holder shall furnish an
indemnity bond sufficient in the judgment of the Company and the Trustee to
protect the Company, the Trustee, the Paying Agent, the Registrar and any
co-registrar from any loss which any of them may suffer if a Note is replaced,
and, in the absence of notice to the Company, the Guarantor or the Trustee that
such Note has been acquired by a bona fide purchaser, the Company shall execute
and upon Company Order the Trustee shall authenticate and make available for
delivery, in exchange for any such mutilated Note or in lieu of any such
destroyed, lost or stolen Note, a new Note of like tenor and principal amount,
bearing a number not contemporaneously outstanding.

 

 

18

 

 

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

 

Upon the issuance of any
new Note under this Section 2.07, the Company may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) in connection therewith.

 

Every new Note issued
pursuant to this Section 2.07 in lieu of any mutilated, destroyed, lost or
stolen Note shall constitute an original additional contractual obligation of
the Company, the Guarantor (if applicable) and any other obligor upon the
Notes, whether or not the mutilated, destroyed, lost or stolen Note shall be at
any time enforceable by anyone, and shall be entitled to all benefits of this
Indenture equally and proportionately with any and all other Notes duly issued
hereunder.

 

The provisions of this Section 2.07
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 Notes.

 

Section 2.08. 
Outstanding Notes.  Notes outstanding at any time are all Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation and those described in this Section 2.08 as not
outstanding.  A Note ceases to be
outstanding in the event the Company holds the Note, provided, however, that (i) for
purposes of determining which are outstanding for consent or voting purposes
hereunder, Notes shall cease to be outstanding in the event the Company or an
Affiliate of the Company holds the Note and (ii) in determining whether
the Trustee shall be protected in making a determination whether the Holders of
the requisite principal amount of outstanding Notes are present at a meeting of
Holders of Notes for quorum purposes or have consented to or voted in favor of
any request, demand, authorization, direction, notice, consent, waiver,
amendment or modification hereunder, or relying upon any such quorum, consent
or vote, only Notes which a Trust Officer of the Trustee actually knows to be
held by the Company or an Affiliate of the Company shall not be considered
outstanding.

 

If a Note is replaced
pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced
Note is held by a bona fide purchaser.

 

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

 

Section 2.09. 
Temporary Notes.  Until Definitive Notes are ready for
delivery, the Company may prepare and the Trustee shall authenticate temporary
Notes.  Temporary Notes 

 

 

19

 

 

shall be substantially in the form of Definitive Notes but may have
variations that the Company considers appropriate for temporary Notes.  Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate Definitive Notes.  After the preparation of Definitive Notes,
the temporary Notes shall be exchangeable for Definitive Notes upon surrender
of the temporary Notes at any office or agency maintained by the Company for
that purpose and such exchange shall be without charge to the Holder.  Upon surrender for cancellation of any one or
more temporary Notes, the Company shall execute, and the Trustee shall
authenticate and make available for delivery in exchange therefor, one or more
Definitive Notes representing an equal principal amount of Notes.  Until so exchanged, the Holder of temporary
Notes shall in all respects be entitled to the same benefits under this
Indenture as a holder of Definitive Notes.

 

Section 2.10. 
Cancellation.  The Company at any time may deliver Notes to
the Trustee for cancellation.  The
Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment.  The Trustee, and no one else, shall cancel
and destroy all Notes surrendered for registration of transfer, exchange,
payment or cancellation, in its customary manner.  The Company may not issue new Notes to
replace Notes it has paid or delivered to the Trustee for cancellation for any
reason other than in connection with a transfer or exchange.

 

Section 2.11. 
Payment of Interest; Defaulted Interest. 
Interest on any Note which is payable, and is punctually paid or duly
provided for, on any interest payment date shall be paid to the Person in whose
name such Note (or one or more predecessor Notes) is registered at the close of
business on the regular record date for such interest at the office or agency
of the Company maintained for such purpose pursuant to Section 2.03
hereof.

 

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

 

(a)                                  The Company may elect to make payment of
any Defaulted Interest to the Persons in whose names the Notes (or their
respective predecessor Notes) are registered at the close of business on a
Special Record Date (as defined below) for the payment of such Defaulted
Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date (not less than 30 days after such notice) of the proposed payment
(the “Special Interest Payment Date”), and at
the same time the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to
be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this clause provided. 
Thereupon the Trustee shall fix a record date (the “Special
Record Date”) for the payment of such Defaulted Interest which shall
be not more than 15 days and not less than 10 days prior to the Special
Interest Payment Date and not less than 10 days after the receipt by the
Trustee of the notice of the proposed payment. 
The Trustee

 

 

20

 

shall promptly notify the Company of such Special
Record Date, and in the name and at the expense of the Company, shall cause
notice of the proposed payment of such Defaulted Interest and the Special
Record Date and Special Interest Payment Date therefor to be given in the
manner provided for in Section 11.02 hereof, not less than 10 days prior
to such Special Record Date.  Notice of
the proposed payment of such Defaulted Interest and the Special Record Date and
Special Interest Payment Date therefor having been so given, such Defaulted
Interest shall be paid on the Special Interest Payment Date to the Persons in
whose names the Notes (or their respective predecessor Notes) 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 the Notes may be listed, and
upon such notice as may be required by such exchange, if, after notice given by
the Company to the Trustee of the proposed payment pursuant to this clause,
such manner of payment shall be deemed practicable by the Trustee.

 

Subject to the foregoing
provisions of this Section 2.11, each Note delivered under this Indenture
upon registration of, transfer of or in exchange for or in lieu of any other
Note shall carry the rights to interest accrued and unpaid, and to accrue,
which were carried by such other Note.

 

Section 2.12. 
Computation of Interest.  Interest on the Notes shall be computed on
the basis of a 360-day year of twelve 30-day months.

 

Section 2.13. 
CUSIP and ISIN Numbers.  The Company in issuing the Notes may use “CUSIP”
and “ISIN” numbers (if then generally in use) and, if so, the Trustee shall use
“CUSIP” and “ISIN” numbers in notices of redemption as a convenience to
Holders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Notes or as contained in any notice of a redemption and that reliance
may be placed only on the other identification numbers printed on the Notes,
and any such redemption shall not be affected by any defect in or omission of
such CUSIP or ISIN numbers.  The Company
shall promptly notify the Trustee of any change in the CUSIP and ISIN numbers.

 

Section 2.14. 
Tax Treatment.  The Company and the Holders intend, and will
take all actions consistent with the intention, that the Notes be treated as indebtedness
for all federal, state, local, and foreign income and franchise tax
purposes.  The Company, by entering into
this Indenture, and each Holder, by its acceptance of its Note, agree to treat
the Notes as indebtedness for federal, state, local and foreign income and
franchise tax purposes.

 

ARTICLE 3

COVENANTS

 

Section 3.01. 
Payment of Notes.  The Company shall promptly pay the principal
of and premium, if any, and interest on the Notes on the dates and in the
manner provided in the Notes and in this Indenture.  Principal and interest shall be considered
paid on the date due if on such date the Trustee or the Paying Agent holds in
accordance with this Indenture money sufficient to 

 

 

21

 

pay all principal and interest then due and the Trustee or the Paying
Agent, as the case may be, is not prohibited from paying such money to the
Noteholders on that date.

 

The Company shall pay
interest on overdue principal and premium, if any, at the rate specified therefor
in the Notes, and it shall pay interest on overdue installments of interest at
the same rate to the extent lawful.

 

Notwithstanding anything
to the contrary contained in this Indenture and subject to Section 11.15,
the Company may, to the extent it is required to do so by law, deduct or
withhold income or other taxes imposed by the United States of America (or any
political subdivision thereof) from principal or interest payments hereunder.

 

Section 3.02. 
Limitation and Restrictions on Activities of the
Company.  (a) The Company
shall not engage in any business or enterprise or enter into any transaction or
agreement other than in connection with (i) the issuance and sale of the
Notes, (ii) the incurrence of other Permitted Indebtedness, (iii) the
entering into of Hedge Agreements relating to the Notes or the other Permitted
Indebtedness having a notional amount not exceeding the aggregate principal
amount of the Notes and such other Permitted Indebtedness then outstanding and (iv) the
use of the net proceeds from the issuance of the Notes or the other Permitted
Indebtedness to either increase its investment in the Series 2002-1 VFC,
repay Permitted Indebtedness outstanding from time to time or pay expenses
incurred in connection with such Permitted Indebtedness.

 

(b)                                 The Company shall not acquire or own any
subsidiary or other assets or property (either real or personal), except for (i) the
Series 2002-1 VFC, (ii) Hedge Agreements, and (iii) instruments
evidencing the interests in the foregoing.

 

(c)                                  The Company shall not create, incur,
assume or suffer to exist any Indebtedness other than Permitted Indebtedness.

 

(d)                                 The Company shall not create, assume,
incur or suffer to exist any Lien upon or with respect to any of its Property;
provided, however, it being understood, for the avoidance of doubt, that the
Company shall not create, incur, assume or suffer to exist any Lien including
Liens which would otherwise constitute a Permitted Lien in the case of the
Guarantor or any Restricted Subsidiaries.

 

(e)                                  The Company shall not enter into any
consolidation, merger, amalgamation, joint venture, syndicate or other form of
combination with any Person, and shall not sell, lease, convey or otherwise
dispose of any of its assets or receivables, including, without limitation, the
Series 2002-1 VFC or any interest in the Series 2002-1 VFC.

 

(f)                                    The Company shall not amend, supplement,
waive or modify, or consent to any amendment, supplement, waiver or
modification of, any Master Trust Transaction Document except in accordance
with the provisions of this Section 3.02(f).  Any provision of any Master Trust Transaction
Document may be amended, waived, supplemented, restated, discharged or
terminated without the consent of the Holders so long as in each case, the
Trustee shall have received prior notice thereof together with copies of any
documentation related thereto; provided that such amendment, waiver, supplement
or restatement does not (i) render the Series 2002-1 VFC subordinate
in payment to any other Series under the Bunge Master Trust or otherwise
adversely discriminate against the Series 2002-1 VFC relative to any other
Series under the 

 

 

22

 

 

Bunge Master Trust, (ii) reduce in any manner the
amount of, or delay the timing of, distributions which are required to be made
on or in respect of the Series 2002-1 VFC, (iii) change the
definition of, the manner of calculating, or in any way the amount of, the
interest of the Company in the assets of the Bunge Master Trust, (iv) change
the definition of “Eligible Loans” or, to the extent used in such definition,
other defined terms used in such definition, (v) result in a Default or
Event of Default, or (vi) terminate the Bunge Master Trust with respect to
less than all of the then outstanding Series issued by the Bunge Master
Trust; and provided, further, that, the Bunge Master Trust may be terminated at
any time with respect to all Series then outstanding without the consent
of the Holders.  Any amendment, waiver,
supplement or restatement of a Master Trust Transaction Document (including any
exhibit thereto) of the type described in clauses (i), (ii), (iii), (iv), (v) or
(vi) of this Section 3.02(f) shall require the written consent
of the Holders of at least a majority in principal amount of the Notes then
outstanding (including, without limitation, consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Notes).

 

Section 3.03. 
Limitation on Liens.  The Guarantor shall not, and shall not permit
any Restricted Subsidiary to, create, assume, incur or suffer to exist any
Lien, other than a Permitted Lien, upon or with respect to any of its
Restricted Property or the shares of stock or Indebtedness of any Restricted
Subsidiary to secure any Indebtedness incurred or guaranteed by the Guarantor
or any Restricted Subsidiary (other than the Notes), unless all of the
outstanding Notes and the Guarantee are secured equally and ratably with, or
prior to, such Indebtedness for so long as such Indebtedness shall be so
secured.

 

Section 3.04. 
Limitation on Sale-Leaseback Transactions.  The Guarantor shall not, and shall not permit
any Restricted Subsidiary to, enter into any Sale-Leaseback Transaction unless:

 

(a)                                  the Sale-Leaseback Transaction occurs within
six months from the date of the acquisition of the Restricted Property
subject  thereto or the date of the
completion of construction or commencement of full operations of such
Restricted Property, whichever is later; or

 

(b)                                 the Sale-Leaseback Transaction is between
the Guarantor and a Restricted Subsidiary of the Guarantor, or between
Restricted Subsidiaries of the Guarantor; or

 

(c)                                  the Sale-Leaseback Transaction involves a
lease for a period, including renewals, of not more than three years; or

 

(d)                                 the Sale-Leaseback Transaction
constitutes a Permitted Lien for the purposes of Section 3.03 hereof; or

 

(e)                                  the Guarantor or such Restricted
Subsidiary, within a one year period after such Sale-Leaseback Transaction, (i) applies
or causes to be applied an amount not less than the Attributable Indebtedness
from such Sale-Leaseback Transaction to the prepayment, repayment, redemption,
reduction or retirement of any Indebtedness of the Guarantor or any Subsidiary
having a maturity of more than one year that is not subordinated to the Notes
or the Guarantee or (ii) enters into a bona fide commitment to expend an
amount not less than the Attributable 

 

23

 

 

Indebtedness for such Sale-Leaseback Transaction
during such one-year period to the acquisition, construction or development of
other similar Property.

 

Section 3.05. 
Exclusion from Limitations.  Notwithstanding Sections 3.03 and 3.04
hereof, the Guarantor may, and may permit any Restricted Subsidiary to, create,
assume, incur or suffer to exist any Lien (other than a Permitted Lien) upon
any Restricted Property to secure Indebtedness incurred or guaranteed by the
Guarantor or any Restricted Subsidiary (other than the Notes) or effect any
Sale-Leaseback Transaction of a Restricted Property that is not excepted by Section 3.04(a),
(b), (c), (d) or (e) hereof, without equally and ratably securing the
Notes or the Guarantee provided that, after giving effect thereto, the
aggregate principal amount of outstanding Indebtedness (other than the Notes)
secured by Liens (other than Permitted Liens) upon Restricted Property plus the
Attributable Indebtedness from Sale-Leaseback Transactions of Restricted
Property not so excepted, do not exceed 15% of the Consolidated Net Tangible
Assets.

 

Section 3.06. 
Maintenance of Office or Agency.  The Company will maintain in The City of New
York, an office or agency where the Notes may be presented or surrendered for
payment, where, if applicable, the Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served.  The office or agency (the “Corporate Trust Office”) used by the Trustee in The City of
New York as its office or agency for receiving securities, as the same may from
time to time be designated by the Trustee, shall be such office or agency of
the Company, unless the Company shall designate and maintain some other office
or agency for one or more of such purposes. 
The Company will give prompt written notice to the Trustee of any change
in the location of any such office or agency. 
If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

 

The Company may also from
time to time designate one or more other offices or agencies (in or outside of
The City of New York) where the Notes may be presented or surrendered for any
or all such purposes and may from time to time rescind any such designation;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in The
City of New York for such purposes.  The
Company will give prompt written notice to the Trustee of any such designation
or rescission and any change in the location of any such other office or
agency.

 

Section 3.07. 
Corporate Existence.  Subject to Article 4 hereof, each of the
Company and the Guarantor will do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its corporate existence and
take all reasonable action to maintain its corporate rights (charter and
statutory), licenses, privileges and franchises; provided, however, that the
Company and the Guarantor shall not be required to preserve any such right,
license, privilege or franchise if the Board of Directors of the Company or the
Guarantor, as applicable, shall determine that the preservation thereof is no
longer desirable in the conduct of its business and that the loss thereof is
not, and will not be, disadvantageous in any material respect to the Holders;
and provided further, the Guarantor may amalgamate or merge in accordance with 

 

24

 

 

Section 4.01 hereof.

 

Section 3.08. 
Maintenance of Properties; Insurance.  The Guarantor shall, and shall cause each of
its Subsidiaries to, keep all property useful and necessary in its business in
good working order and condition, except where failure to do so would not have
a Material Adverse Effect; and the Guarantor shall maintain with financially
sound and reputable insurance companies insurance on all its property in at
least such amounts and against at least such risks as are customary for the
Guarantor’s type of business.

 

Section 3.09. 
Payment of Taxes and Other Claims.  Each of the Company and the Guarantor shall
pay, discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all federal income and other material taxes,
assessments and similar governmental charges imposed on it, except where (i) the
amount or validity thereof is currently being contested in good faith by
appropriate proceedings and reserves to the extent required by U.S. GAAP with
respect thereto have been provided on the books of the Company or the Guarantor
or (ii) the nonpayment of such federal income and other material taxes,
assessments and claims in the aggregate could not reasonably be expected to
have a Material Adverse Effect.

 

Section 3.10. 
Payments for Consent.  Neither the Company, the Guarantor nor any
Subsidiaries of the Company or the Guarantor will, directly or indirectly, pay
or cause to be paid any consideration, whether by way of interest, fees or
otherwise, to any Holder of any Notes for or as an inducement to any consent,
waiver or amendment of any of the terms or provisions of this Indenture or the
Notes unless such consideration is offered to be paid or is paid to all Holders
of the Notes that consent, waive or agree to amend in the time frame set forth
in the solicitation documents relating to such consent, waiver or agreement.

 

Section 3.11. 
Compliance Certificate.  The Company and the Guarantor shall deliver
to the Trustee within 120 days after the end of each Fiscal Year of the Company
and the Guarantor a certificate signed by the principal executive officer,
principal financial officer or principal accounting officer of the Company and
the Guarantor, respectively, stating that in the course of the performance by the
signer of his or her duties as an officer of the Company and the Guarantor he
or she would normally have knowledge of any Default or Event of Default and
whether or not the signer knows of any Default or Event of Default that
occurred during such period.  If he or
she does, the certificate shall describe the Default or Event of Default, its
status and what action the Company is taking or proposes to take with respect
thereto.  The Company also shall comply
with Trust Indenture Act, Section 314(a)(4).

 

Section 3.12. 
Further Instruments and Acts.  Upon request of the Trustee, the Company will
execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of
this Indenture.

 

Section 3.13. 
Statement by Officers as to Default.  The Company shall deliver to the Trustee, as
soon as possible and in any event within 10 days after the Company becomes
aware of the occurrence of any Event of Default or an event which, with notice
or the lapse of time or both, would constitute an Event of Default, an Officer’s
Certificate setting forth the details of such Event of Default or default and
the action which the Company proposes to take with respect 

 

25

 

 

thereto.

 

Section 3.14. 
Notice of Change in Bermuda Law, Debt Ratings.  The Guarantor shall give notice to the
Trustee promptly after becoming aware of (i) any changes in taxes, duties
or other fees of Bermuda or any political subdivision or taxing authority
thereof or any change in any laws of Bermuda, in each case, that may affect any
payment due under this Indenture, (ii) any change in such Guarantor’s
public or private debt ratings by a “nationally recognized statistical rating
organization,” as such term is defined by the SEC for purposes of Rule 436(g)(2) under
the Securities Act, and (iii) any development or event which has had, or
which the Guarantor in its good faith judgment believes will have, a Material
Adverse Effect; provided that the Trustee shall have no responsibilities or
duties with respect to any such notice. 
Delivery of any such notice to the Trustee is for informational purposes
only and the Trustee’s receipt of such notice shall not constitute constructive
notice of any information contained therein or determinable from information
contained therein, including the Company’s compliance with any of its covenants
hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s
Certificates).

 

Section 3.15. 
Offer to Repurchase Upon Change of Control.  (a)  If a Change of Control Triggering
Event occurs, unless the Company has previously or concurrently irrevocably
exercised its right to redeem all the outstanding Notes as described under Section 5.05
hereof without such redemption being subject to any conditions precedent, the
Company shall make an offer to purchase all of the Notes pursuant to the offer
described below (the “Change of Control Offer”)
at a price in cash (the “Change of Control Payment”)
equal to 101% of the aggregate principal amount thereof plus accrued and unpaid
interest, if any, to, but excluding, the date of purchase, subject to the right
of Holders of the Notes of record on the relevant record date to receive
interest due on the relevant interest payment date.  Within 60 days following any Change of
Control Triggering Event, the Company shall send notice of such Change of
Control Offer by first-class mail, with a copy to the Trustee, to each Holder
of Notes to the address of such Holder appearing in the security register or
otherwise in accordance with the procedures of DTC with a copy to the Trustee,
with the following information:

 

(i)                                     that a Change
of Control Offer is being made pursuant to this Section 3.15 and that all
Notes properly tendered pursuant to such Change of Control Offer will be
accepted for payment by the Company;

 

(ii)                                  the date of the
Change of Control Triggering Event;

 

(iii)                               the date, which
will be no earlier than 30 days nor later than 60 days from the date such notice
is mailed, by which the Company must purchase the Notes (the “Change of Control Payment Date”);

 

(iv)                              the price that
the Company must pay for the Notes it is obligated to purchase;

 

(v)                                 the name and
address of the Trustee;

 

(vi)                              that any Note
not properly tendered will remain outstanding and continue to accrue interest;

 

 

26

 

 

(vii)                           that unless the
Company defaults in the payment of the Change of Control Payment, all Notes
accepted for payment pursuant to the Change of Control Offer will cease to
accrue interest on the Change of Control Payment Date;

 

(viii)                        that Holders
electing to have any Notes purchased pursuant to a Change of Control Offer will
be required to surrender such Notes, with the form entitled “Option of Holder
to Elect Purchase” on the reverse of such Notes completed, to the paying agent
specified in the notice at the address specified in the notice prior to the
close of business on the third Business Day preceding the Change of Control
Payment Date;

 

(ix)                                that Holders
shall be entitled to withdraw their tendered Notes and their election to
require the Company to purchase such Notes; provided that the paying agent
receives, not later than the close of business on the 30th day following the
date of the Change of Control notice, a telegram, telex, facsimile transmission
or letter setting forth the name of the Holder of the Notes, the principal
amount of Notes tendered for purchase, and a statement that such Holder is
withdrawing its tendered Notes and its election to have such Notes purchased;

 

(x)                                   that if the
Company is repurchasing less than all of the Notes, the Holders of the
remaining Notes will be issued new Notes and such new Notes will be equal in
principal amount to the unpurchased portion of the Notes surrendered.  The unpurchased portion of the Notes must be
equal to $1,000 or an integral multiple of $1,000 in excess thereof; and

 

(xi)                                the other
instructions, as determined by the Company, consistent with this Section 3.15,
that a Holder must follow.

 

The notice, if mailed in
a manner herein provided, shall be conclusively presumed to have been given,
whether or not the Holder receives such notice. 
If (a) the notice is mailed in a manner herein provided and (b) any
Holder fails to receive such notice or a Holder receives such notice but it is
defective, such Holder’s failure to receive such notice or such defect shall
not affect the validity of the proceedings for the purchase of the Notes as to
all other Holders that properly received such notice without defect.  The Company shall comply with all federal and
state securities laws, including, specifically, Rule 13e-4, if applicable,
under the Exchange Act, and any related Schedule 13E-4 required to be submitted
under that rule, to the extent such laws or regulations are applicable in
connection with the repurchase of Notes pursuant to a Change of Control
Offer.  To the extent that the provisions
of any securities laws or regulations conflict with the provisions of this Section 3.15,
the Company shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached its obligations under this Section 3.15
by virtue thereof.

 

(b)                                 On the Change of Control Payment Date,
the Company shall, to the extent permitted by law,

 

(i)                                     accept for
payment all Notes issued by it or portions thereof properly tendered pursuant
to the Change of Control Offer,

 

 

27

 

 

(ii)                                  deposit with
the Paying Agent an amount equal to the aggregate Change of Control Payment in
respect of all Notes or portions thereof so tendered, and

 

(iii)                               deliver, or
cause to be delivered, to the Trustee for cancellation the Notes so accepted
together with an Officer’s Certificate to the Trustee stating the aggregate
principle amount of such Notes or portions thereof that have been tendered to,
and purchased by, the Company.

 

(c)                                  The Company shall not be required to make
a Change of Control Offer following a Change of Control Triggering Event if a
third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Section 3.15
applicable to a Change of Control Offer made by the Company and purchases all
Notes validly tendered and not withdrawn under such Change of Control
Offer.  Notwithstanding anything to the
contrary herein, a Change of Control Offer may be made in advance of a Change
of Control Triggering Event, conditional upon such Change of Control Triggering
Event, if a definitive agreement is in place for the Change of Control at the
time of making of the Change of Control Offer.

 

(d)                                 Other than as specifically provided in
this Section 3.15, any purchase pursuant to this Section 3.15 shall
be made pursuant to the provisions of Section 5.04, 5.06 and 5.08 hereof.

 

(e)                                  Notwithstanding any provision to the
contrary in this Indenture, the Company shall not purchase any Notes if there
has occurred and is continuing an Event of Default, unless such Event of
Default results from the Company’s failure to pay the Change of Control Payment
following the occurrence of a Change of Control Triggering Event.

 

ARTICLE 4

SUCCESSOR GUARANTOR

 

Section 4.01. 
Consolidation, Merger, Amalgamation and Sale of
Assets by the Guarantor or the Company.  The Guarantor shall not, and shall not cause
or permit any Subsidiary to, consolidate with or merge or amalgamate with or
into, or sell, lease, or convey all or substantially all its assets to, any
Person, unless:

 

(a)                                  in the case of the Guarantor:

 

(i)                                     the resulting,
surviving or transferee Person (the “Successor
Guarantor”) shall be either the Guarantor or a Person organized
under the laws of Bermuda, the United States of America, any State thereof or
the District of Columbia, any full member state of the European Union, Canada,
Australia or Switzerland, and the Successor Guarantor (if not the Guarantor)
shall expressly assume, by supplemental indenture, executed and delivered to
the Trustee, all the obligations of the Guarantor under the Guarantee and this
Indenture; and

 

(ii)                                  immediately
after giving effect to such transaction, no Event of Default or event which
with notice or lapse of time would be an Event of Default has occurred and is
continuing; or

 

 

28

 

 

(b)                                 in the case of any Subsidiary of the
Guarantor (other than the Company):

 

(i)                                     such
transaction is a merger or amalgamation of such Subsidiary with or into, or a
consolidation of such Subsidiary with, the Guarantor (so long as the Guarantor
is the surviving, continuing or resulting entity) or another Subsidiary of the
Guarantor or the sale or other disposition by such Subsidiary of all or
substantially all of its property to the Guarantor or another Subsidiary of the
Guarantor; or

 

(ii)                                  such
transaction is the merger or amalgamation of such Subsidiary with or into, the
consolidation of such Subsidiary with, or the sale or other disposition by such
Subsidiary of all or substantially all of its property to, another Person
(provided that such Person is not an Affiliate of such Subsidiary), so long as
immediately prior to, and after giving effect to such transaction, no Default
or Event of Default exists or would exist.

 

For purposes of this Section 4.01,
the sale, lease, conveyance, assignment, transfer, or other disposition of all
or substantially all of the properties and assets of one or more Subsidiaries
of the Guarantor, which properties and assets, if held by the Guarantor instead
of such Subsidiaries, would constitute all or substantially all of the
properties and assets of the Guarantor on a consolidated basis, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Guarantor.

 

If the Guarantor engages
in one of the transactions described above and complies with the conditions
listed above, the Successor Guarantor will succeed to, and be substituted for,
and may exercise every right and power of, the Guarantor under this Indenture,
but, in the case of a lease of all or substantially all its assets, the
Guarantor will not be released from the obligation to pay the principal of and
premium, if any, and interest on the Notes.

 

In the event that the
Guarantor consolidates with or merges or amalgamates with or into, or sells,
leases or conveys all or substantially all of its assets to, another Person
subject to the terms of this Section 4.01 (a “Transfer”)
and the Successor Guarantor is a Person organized under the laws of a 

 

 

29

 

 

member state of
the European Union, Canada, Australia or Switzerland, then the Guarantor and
the Successor Guarantor shall, as a condition to such Transfer, (A) enter
into a supplemental indenture with the Trustee providing for full,
unconditional and irrevocable indemnification of the Holders of the Notes and
the Trustee against any tax or duty of whatever nature (other than a net income
tax) which is incurred or otherwise suffered by such Holders and the Trustee
with respect to the Notes and which would not have been incurred or otherwise
suffered in the absence of such Transfer; and (B) deliver to the Trustee,
for the benefit of the Holders of the Notes, legal opinions of independent
legal counsel in New York and the applicable member state of the European
Union, Canada, Australia or Switzerland the laws of which the successor or
continuing company is organized under, as applicable, to the effect that the
Obligations of the Successor Guarantor with respect to the Guarantee, as the
case may be, are legal, valid, binding and enforceable in accordance with their
terms.

 

ARTICLE 5

OPTIONAL REDEMPTION OF NOTES

 

Section 5.01. 
Optional Redemption by the Company.  The Notes may be redeemed at any time as a
whole or from time to time in part, subject to the conditions and at the
Redemption Prices specified in the form of Notes set forth in Exhibit A
hereto, which are hereby incorporated by reference and made a part of this
Indenture, together with accrued and unpaid interest to the Redemption Date.

 

Section 5.02. 
Applicability of Article.  Redemption of Notes at the election of the
Company or otherwise, as permitted or required by any provision of this
Indenture, shall be made in accordance with such provision and this Article 5.

 

Section 5.03. 
Election to Redeem; Notice to Trustee.  The election of the
Company to redeem any Notes pursuant to Section 5.01 hereof shall be
evidenced by a resolution of the Board of Directors of the Company.  In case of any redemption at the election of
the Company, the Company shall, upon not later than the earlier of the date
that is 30 days prior to the Redemption Date fixed by the Company or the date
on which notice is given to the Holders (except as provided in Section 5.05
hereof or unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee of such Redemption Date and of the principal amount of Notes to be
redeemed and shall deliver to the Trustee such documentation and records as
shall enable the Trustee to select the Notes to be redeemed pursuant to Section 5.04
hereof.

 

Section 5.04. 
Selection by Trustee of Notes to Be Redeemed.  If less than all the Notes are to be redeemed
at any time pursuant to an optional redemption, the particular Notes to be
redeemed shall be selected not more than 60 days prior to the Redemption Date
by the Trustee, from the outstanding Notes not previously called for
redemption, in compliance with the requirements of the principal securities
exchange, if any, on which such Notes are listed, or, if such Notes are not so
listed, on a pro rata basis, by lot or by such other method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of portions of the principal of the Notes; provided, however, that
no such partial redemption shall reduce the portion of the principal amount of
a Note not redeemed to less than U.S. $1,000.

 

 

30

 

The Trustee shall
promptly notify the Company in writing of the Notes selected for redemption
and, in the case of any Notes 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
redemption of Notes shall relate, in the case of any Note redeemed or to be
redeemed only in part, to the portion of the principal amount of such Note
which has been or is to be redeemed.

 

Section 5.05. 
Notice of Redemption.  Notice of redemption shall be given in the
manner provided for in Section 11.02 hereof not less than 30 nor more than
60 days prior to the Redemption Date, to each Holder of Notes to be
redeemed.  The Trustee shall give notice
of redemption in the Company’s name and at the Company’s expense; provided,
however, that the Company shall deliver to the Trustee, at least 15 days prior
to the date the notice of redemption is to be given (unless a shorter period
shall be acceptable to the Trustee), an Officer’s Certificate requesting that
the Trustee give such notice and setting forth the information to be stated in
such notice as provided in the following items.

 

All notices of redemption
shall state:

 

(1)           the Redemption Date,

 

(2)           the Redemption Price and the amount
of accrued interest to the Redemption Date payable as provided in Section 5.07
hereof, if any,

 

(3)           if less than all outstanding Notes
are to be redeemed, the identification of the particular Notes (or portion
thereof) to be redeemed, as well as the aggregate principal amount of Notes to
be redeemed and the aggregate principal amount of Notes to be outstanding after
such partial redemption,

 

(4)           in case any Note is to be redeemed in
part only, the notice which relates to such Note shall state that on and after
the Redemption Date, upon surrender of such Note, the Holder will receive,
without charge, a new Note or Notes of authorized denominations for the
principal amount thereof remaining unredeemed,

 

(5)           that on the Redemption Date the
Redemption Price (and accrued interest, if any, to the Redemption Date payable
as provided in Section 5.07 hereof) will become due and payable upon each
such Note, or the portion thereof, to be redeemed, and, unless the Company
defaults in making the redemption payment, that interest on Notes called for
redemption (or the portion thereof) will cease to accrue on and after said
date,

 

(6)           the place or places where such Notes
are to be surrendered for payment of the Redemption Price and accrued interest,
if any,

 

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

 

(8)           that Notes called for redemption must
be surrendered to the Paying Agent to collect the Redemption Price, and

 

31

 

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

 

Section 5.06. 
Deposit of Redemption Price.  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 2.04
hereof) an amount of money sufficient to pay the Redemption Price of, and
accrued interest on, all the Notes which are to be redeemed on that date.

 

Section 5.07. 
Notes Payable on Redemption Date.  Notice of redemption having been given as
aforesaid, the Notes to be redeemed shall, on the Redemption Date, become due
and payable at the Redemption Price therein specified (together with accrued
interest, if any, to the Redemption Date), and from and after such date (unless
the Company shall default in the payment of the Redemption Price and accrued
interest) such Notes shall cease to bear interest.  Upon surrender of any such Note for
redemption in accordance with said notice, such Note shall be paid by the
Company at the Redemption Price, together with accrued interest, if any, to the
Redemption Date (subject to the rights of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date).

 

If any Note called for
redemption shall not be so paid upon surrender thereof for redemption, the
principal and premium, if any, shall, until paid, bear interest from the
Redemption Date at the rate borne by the Notes.

 

Section 5.08. 
Notes Redeemed in Part.  Any Note which is to be redeemed only in part
(pursuant to the provisions of this Article 5) shall be surrendered at the
office or agency of the Company maintained for such purpose pursuant to Section 3.06
hereof (with, if the Company or the Trustee so requires, due endorsement by, or
a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such Note at the
expense of the Company, a new Note or Notes, of any authorized denomination as
requested by such Holder, in an aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Note so
surrendered, provided that each such new Note will be in a principal amount of
U.S.$1,000 or integral multiple thereof. 
Notwithstanding the foregoing, DTC shall select the Notes for redemption
if evidenced by a Global Note according to DTC’s stated procedures therefor.

 

ARTICLE
6

DEFAULTS AND REMEDIES

 

Section 6.01. 
Events of Default.  An “Event of Default”
occurs if:

 

(1)           the Company defaults in any payment
of interest on any Note when the same becomes due and payable, and such default
continues for a period of 30 days;

 

(2)           the Company defaults in the payment
of the principal or premium, if any, on any Note when the same becomes due and
payable at its Stated Maturity, upon optional redemption, upon declaration of
acceleration or otherwise;

 

32

 

(3)           the Company or the Guarantor defaults
in the performance of or a breach by the Company or the Guarantor of any other
covenant or agreement in this Indenture or under the Notes (other than those
referred to in (1) or (2) above) and such default continues for 60
days after written notice from the Trustee or the Holders of at least 25% in
principal amount of the outstanding Notes;

 

(4)           the Company, the Guarantor or any
Subsidiary shall (i) default in making any payment of any principal of any
indebtedness for borrowed money, including obligations evidenced by any
mortgage, indenture, bond, debenture, note, guarantee or other similar
instruments to which it is a party on the scheduled or original due date with
respect thereto; or (ii) default in making any payment of any interest on
any such indebtedness beyond the period of grace, if any, provided in the
instrument or agreement under which such indebtedness was created; or (iii) default
in the observance or performance of any other agreement or condition relating
to any such indebtedness or contained in any instrument or agreement
evidencing, securing or relating thereto, the effect of which default or
condition is to cause, or to permit the holder or beneficiary of such
indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to
cause, with the giving of notice if required, such indebtedness to become due
prior to its stated maturity or (in the case of any such indebtedness
constituting a guarantee) to become payable and such acceleration has not been
cured within 15 days after notice of acceleration; provided, that a default,
event or condition described in clause (i), (ii) or (iii) of this
paragraph (4) shall not at any time constitute an Event of Default unless,
at such time, one or more defaults, events or conditions of the type described
in clauses (i), (ii) and (iii) of this paragraph (4) shall have
occurred and be continuing with respect to such indebtedness in an amount
exceeding U.S. $50,000,000;

 

(5)           (i) the Company, the Guarantor,
a Designated Obligor or any Material Subsidiary shall commence any case,
proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it bankrupt or insolvent,
or seeking reorganization, arrangement, adjustment, winding up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar
official for it or for all or any substantial part of its assets, or the
Company, the Guarantor, a Designated Obligor or any Material Subsidiary shall
make a general assignment for the benefit of its creditors; or (ii) there
shall be commenced against the Company, the Guarantor, a Designated Obligor or
any Material Subsidiary any case, proceeding or other action of a nature
referred to in clause (i) above that (A) results in the entry of an
order for relief or any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of 60 days; or (iii) there
shall be commenced against the Company, the Guarantor, a Designated Obligor or
any Material Subsidiary any case, proceeding or other action seeking issuance
of a warrant of attachment, execution, distraint or similar process against all
or any substantial part of its assets that results in the entry of an order for
any such relief that shall not have been vacated, discharged, or stayed or
bonded pending appeal within 60 days from the entry thereof; or (iv) the
Company, the Guarantor, a Designated Obligor or any Material Subsidiary shall
take any action in furtherance of, or indicating its consent to, approval of,
or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above;
or (v) the Company, the Guarantor, a Designated Obligor or any Material 

 

33

 

Subsidiary shall
generally not, or shall be unable to, or shall admit in writing its inability
to, pay its debts as they become due.

 

The foregoing will
constitute Events of Default whatever the reason for any such Event of Default
and whether it is voluntary or involuntary or is effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body.

 

The Company shall deliver
to the Trustee, within 10 days after the occurrence thereof, written notice in
the form of an Officer’s Certificate of any Default or Event of Default under
clauses (3), (4) or (5) of this Section 6.01, which such notice
shall contain the status thereof and a description of the action being taken or
proposed to be taken by the Company in respect thereof.

 

Section 6.02. 
Acceleration.  (a) If an Event of Default occurs and is
continuing, the Trustee by written notice to the Company, or the Holders of at
least 25% in outstanding principal amount of the Notes by written notice to the
Company and the Trustee, may, and the Trustee at the request of such Holders
shall, declare the principal of and premium, if any, and accrued and unpaid
interest on all the Notes to be due and payable.  Upon such a declaration, such principal,
premium, if any, and accrued and unpaid interest shall be immediately due and
payable.  If an Event of Default
described in paragraph (5) of Section 6.01 hereof occurs and is
continuing, then in each and every such case, the principal amount of the
Notes, the premium, if any, and all accrued and unpaid interest shall be
immediately due and payable without any declaration or other act on the part of
the Trustee or the Holders.

 

(b)           In
the event the principal of and premium, if any, and accrued and unpaid interest
on the Notes becomes due and payable pursuant to section 6.02(a) hereof,
the Trustee shall instruct the Company, and the Company shall instruct the
Master Trust Trustee, to declare due and payable the principal and accrued
interest in respect of the intercompany loans that had been made using the net
proceeds from the sale of the Notes invested in the Series 2002-1 VFC.

 

Section 6.03. 
Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of principal of and premium, if any, or interest on the Notes or to enforce the
performance of any provision of the Notes or this Indenture.

 

The Trustee may maintain
a proceeding even if it does not possess any of the Notes or does not produce
any of them in the proceeding.  A delay
or omission by the Trustee or any Noteholder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default.  No remedy is exclusive of any other remedy.  All available remedies are cumulative.

 

Section 6.04. 
Waiver of Past Defaults.  The Holders of a majority in aggregate
principal amount of the outstanding Notes by notice to the Trustee may (a) waive,
by their consent (including, without limitation consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Notes), an existing
Default or Event of Default and its consequences except (i) a Default or
Event of Default in the payment of the principal of and premium, if any,

 

34

 

or interest on a Note or (ii) a Default or Event of Default in
respect of a provision that under Section 9.02 hereof cannot be amended
without the consent of each Noteholder affected and (b) rescind any such
acceleration with respect to the Notes and its consequences if (1) rescission
would not conflict with any judgment or decree of a court of competent
jurisdiction and (2) all existing Events of Default, other than the
nonpayment of the principal of and premium, if any, and interest on the Notes
that have become due solely by such declaration of acceleration, have been
cured or waived.  When a Default or Event
of Default is waived, it is deemed cured, but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any consequent
right.

 

Section 6.05. 
Control by Majority.  The Holders of a majority in principal amount
of the outstanding Notes may direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or of exercising any trust
or power conferred on the Trustee. 
However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture or, subject to Section 7.01 and Section 7.02
hereof, that the Trustee determines is unduly prejudicial to the rights of
other Noteholders or would involve the Trustee in personal liability; provided,
however, that the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction.  Prior to taking any action hereunder, the Trustee
shall be entitled to indemnification satisfactory to it in its sole discretion
against all losses and expenses caused by taking or not taking such action.

 

Section 6.06. 
Limitation on Suits.  Subject to Section 6.07 hereof, a
Noteholder may not pursue any remedy with respect to this Indenture or the
Notes unless:

 

(1)           the Holder gives to the Trustee
written notice stating that an Event of Default is continuing;

 

(2)           the Holders of at least 25% in
outstanding principal amount of the Notes make a request to the Trustee to
pursue the remedy;

 

(3)           such Holder or Holders offer to the
Trustee reasonable security or indemnity satisfactory to the Trustee against
any loss, liability or expense;

 

(4)           the Trustee does not comply with the
request within 60 days after receipt of the request and the offer of security
or indemnity; and

 

(5)           the Holders of a majority in
principal amount of the Notes do not give the Trustee a direction that, in the
opinion of the Trustee, is inconsistent with such request during such 60-day
period.

 

A Noteholder may not use
this Indenture to prejudice the rights of another Noteholder or to obtain a
preference or priority over another Noteholder.

 

Section 6.07. 
Rights of Holders to Receive Payment.  Notwithstanding any other provision of this
Indenture (including, without limitation, Section 6.06 hereof), the right
of any Holder to receive payment of principal of and  premium, if any, or interest on the Notes
held by such Holder, on or after the respective due dates expressed in the
Notes (including in connection with a Change of Control Offer), or to bring
suit for the enforcement of any such payment on or

 

35

 

after such respective dates, shall not be impaired or affected without
the consent of such Holder.

 

Section 6.08. 
Collection Suit by Trustee.  If an Event of Default specified in Section 6.01
(1) or (2) hereof occurs and is continuing, the Trustee may recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount then due and owing (together with interest on any unpaid
interest to the extent lawful) and the amounts provided for in Section 6.07
hereof.

 

Section 6.09. 
Trustee May File Proofs of Claim.  The Trustee may file such proofs of claim and
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel)
and the Noteholders allowed in any judicial proceedings relative to the
Company, the Guarantor, any of the Subsidiaries or their respective creditors
or properties and, unless prohibited by law or applicable regulations, may be
entitled and empowered to participate as a member of any official committee of
creditors appointed in such matter and, may vote on behalf of the Holders in
any election of a trustee in bankruptcy or other Person performing similar
functions, and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.07
hereof.

 

Section 6.10. 
Priorities.  If the Trustee collects any money or property
pursuant to this Article 6, it shall pay out the money or property in the
following order:

 

FIRST:  to the Trustee for amounts due under Section 7.07
hereof;

 

SECOND:  to Noteholders for amounts due and unpaid on
the Notes for principal  and premium, if
any, and interest, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Notes for principal and
interest, respectively; and

 

THIRD:  to the Company.

 

The Trustee may fix a
record date and payment date for any payment to Noteholders pursuant to this Section 6.10.
 At least 15 days before such record
date, the Company shall mail to each Noteholder and the Trustee a notice that
states the record date, the payment date and amount to be paid.

 

Section 6.11. 
Undertaking for Costs.  In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court in its discretion may require
the filing by any party litigant in the suit of an undertaking to pay the costs
of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys’ fees and expenses, against any party litigant
in the suit, having due regard to the merits and good faith of the claims or
defenses made by the party litigant.  This
Section 6.11 does not apply to a suit by the Trustee, a suit by the
Company, a suit by a Holder pursuant to Section 6.07 hereof or a suit by
Holders of more than 10% in outstanding principal amount of the Notes.

 

36

 

ARTICLE
7

TRUSTEE

 

Section 7.01. 
Duties of Trustee.  (a) If an Event of Default has occurred
and is continuing, the Trustee shall exercise the rights and powers vested in
it by this Indenture and use the same degree of care and skill in their exercise
as a prudent Person would exercise or use under the circumstances in the
conduct of such Person’s own affairs; provided that if an Event of Default
occurs and is continuing, the Trustee will be under no obligation to exercise
any of the rights or powers under this Indenture at the request or direction of
any of the Holders unless such Holders have offered to the Trustee indemnity or
security reasonably satisfactory to it against loss, liability or expense.

 

Except during the
continuance of an Event of Default:

 

(1)           the Trustee undertakes to perform
such duties and only such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

 

(2)           in the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of this
Indenture.  However, in the case of any
such certificates or opinions which by any provisions hereof are specifically
required to be furnished to the Trustee, the Trustee shall examine such
certificates and opinions to determine whether or not they conform to the requirements
of this Indenture (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein).

 

(b)           The
Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

 

(1)           this paragraph does not limit the
effect of the second paragraph of Section 7.01(a);

 

(2)           the Trustee shall not be liable for
any error of judgment made in good faith by a Trust Officer unless it is proved
that the Trustee was negligent in ascertaining the pertinent facts; and

 

(3)           the Trustee shall not be liable with
respect to any action it takes or omits to take in good faith in accordance
with a direction received by it pursuant to Section 6.05 hereof.

 

(c)           Every
provision of this Indenture that in any way relates to the Trustee is subject
to paragraphs Section 7.01(a) and (b) hereof.

 

(d)           The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company.

 

(e)           Money
held in trust by the Trustee need not be segregated from other funds except to
the extent required by law.

 

37

 

(f)            No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers, if it shall
have reasonable grounds to believe that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

(g)           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 7.01 and to the provisions of the Trust Indenture Act.

 

(h)           Unless
otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Company shall be sufficient if signed by an
Officer of the Company.

 

(i)            The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders unless such Holders shall have offered to the Trustee security or
indemnity reasonably satisfactory to it against the costs, expenses (including
reasonable attorneys’ fees and expenses) and liabilities that might be incurred
by it in compliance with such request or direction.

 

Section 7.02. 
Rights of Trustee.  Subject to Section 7.01 hereof:

 

(a)           The
Trustee may conclusively rely on any document (whether in its original or
facsimile form) reasonably believed by it to be genuine and to have been signed
or presented by the proper person.  The
Trustee need not investigate any fact or matter stated in the document.  The Trustee shall receive and retain
financial reports and statements of the Company as provided herein, but shall
have no duty to review or analyze such reports or statements to determine
compliance under covenants or other obligations of the Company;

 

(b)           Before
the Trustee acts or refrains from acting, it may require an Officer’s
Certificate and/or an Opinion of Counsel. 
The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on an Officer’s Certificate or Opinion of Counsel;

 

(c)           The
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent appointed with due care;

 

(d)           The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers,
provided however, that the Trustee’s conduct does not constitute willful
misconduct or negligence;

 

(e)           The
Trustee may consult with counsel of its selection, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes
shall be full and complete authorization and protection from liability in
respect to any action taken, omitted or suffered by it hereunder in good faith
and in accordance with the advice or opinion of such counsel;

 

(f)            The
Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Trust Officer of the Trustee has actual knowledge thereof or unless
written notice of any 

 

38

 

event which is in fact such a default is received by the Trustee at the
Principal Trust Office of the Trustee, and such notice references the Notes and
this Indenture;

 

(g)           The
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder
(including Registrar and Paying Agent), and each agent, custodian and other Person
employed to act hereunder; and

 

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

 

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

 

(j)            The
Trustee’s rights, powers, indemnities, immunities and protections from
liability and its rights to compensation and indemnification in connection with
the performance of its duties under this Indenture shall extend to (1) the
Trustee, whether serving in any other capacity hereunder, including without
limitation, in the capacity of Paying Agent or Registrar and (2) the
Trustee’s officers, directors, agents, counsel and employees.  Such immunities and protections and rights to
indemnification, together with the Trustee’s right to compensation, shall
survive the Trustee’s resignation or removal, the discharge of this Indenture
and final payment of the Notes.

 

(k)           The
Trustee shall have no responsibility for any information in any offering
document or other disclosure material distributed with respect to any series of
Notes, and the Trustee shall have no responsibility for compliance with any
state or federal securities laws in connection with the Notes, other than the
filing of any documents required to be filed by an indenture trustee pursuant
to the Trust Indenture Act or otherwise required in this Indenture.

 

(l)            Notwithstanding
anything else herein contained, whenever any provision of this Indenture
indicates that any confirmation of a condition or event is qualified by the
words “to the knowledge of” or “known to” the Trustee or other words of similar
meaning, said words shall mean and refer to the current awareness of one or
more Trust Officers who are located at the Principal Trust Office of the
Trustee or who are otherwise responsible for administering the trusts created
under this Indenture

 

Section 7.03. 
Individual Rights of Trustee.  The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
the Company or its Affiliates with the same rights it would have if it were not
Trustee.  Any Paying Agent, Registrar,
co-registrar or co-paying agent may do the same with like rights.  However, the Trustee must comply with Section 7.10
and Section 7.11 hereof.  In
addition, the Trustee shall be permitted to engage in transactions with the
Company; provided, however, that if the Trustee acquires any conflicting
interest the Trustee must (i) eliminate such conflict within 90 days of
acquiring such conflicting interest, (ii) apply to the Commission for
permission to continue 

 

39

 

acting as Trustee or (iii) resign.

 

Section 7.04. 
Trustee’s Disclaimer.  The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the
Notes, shall not be accountable for the Company’s use of the proceeds from the
Notes, shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee and shall not be
responsible for any statement of the Company in this Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Trustee’s certificate of authentication.

 

Section 7.05. 
Notice of Defaults.  If a Default or Event of Default occurs and
is continuing and if a Trust Officer has actual knowledge thereof, the Trustee
shall mail to each Noteholder at the address set forth in the Note Register
notice of the Default or Event of Default within 90 days after it occurs.  Except in the case of a Default or Event of
Default in payment of principal of and premium, if any, or interest on any Note
(including payments pursuant to the optional redemption or required repurchase
provisions of such Note, if any), the Trustee may withhold the notice if and so
long as the Trustee’s Board of Directors or an executive committee thereof or a
trust committee of its directors and/or officers in good faith determines that
withholding the notice is in the interests of Noteholders.

 

Section 7.06. 
Report by Trustee to Holders.  Within 60 days after each
[        ] beginning with the
[        ] following the date of this
Indenture, and in any event prior to
[        ] in each year, the Trustee
shall mail to each Noteholder a brief report dated as of such
[        ] that complies with Trust
Indenture Act, Section 313(a), but only if required under such
Section.  The Trustee also shall comply
with Trust Indenture Act, Section 313(b). 
The Trustee shall also transmit by mail all reports required by Trust
Indenture Act, Section 313(c).

 

A copy of each report at
the time of its mailing to Noteholders shall be filed with the SEC and each
stock exchange (if any) on which the Notes are listed.  The Company agrees to notify promptly the
Trustee whenever the Notes become listed on any stock exchange and of any delisting
thereof.

 

Section 7.07. 
Compensation and Indemnity.  The Company shall pay to the Trustee such
compensation for its acceptance of this Indenture and for its services
hereunder as Trustee, Paying Agent, Registrar and in all other capacities in
which it is serving hereunder as the Company and the Trustee shall from time to
time agree in writing.  The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust.  The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred or made by it, including costs of collection, costs of preparing and
reviewing reports, certificates and other documents, costs of preparation and
mailing of notices to Noteholders and reasonable costs of counsel retained by
the Trustee, in addition to the compensation for its services.  Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Trustee’s agents,
counsel, accountants and experts.  The
Company shall indemnify the Trustee, and any predecessor Trustee and their
respective officers, directors, employees, counsel and agents, against any and
all loss, liability, damages, claims or expense (including reasonable attorneys’
fees and expenses) incurred by it without negligence or willful misconduct on
its part in connection with the administration of this trust or the performance
of its duties hereunder,

 

40

 

including the costs and expenses of enforcing this Indenture (including
this Section 7.07) and of defending itself against any claims (whether
asserted by any Noteholder, the Company or otherwise).  The Trustee shall notify the Company promptly
of any claim for which it may seek indemnity. 
Failure by the Trustee to so notify the Company shall not relieve the
Company of its obligations hereunder. 
The Company shall defend the claim and the Trustee may have separate
counsel and the Company shall pay the fees and expenses of such counsel,
provided that the Company shall not be required to pay such fees and expenses
if it assumes the obligation for defending the Trustee, and, in the reasonable
judgment of the Trustee, there is no conflict of interest between the Company
and the Trustee in connection with such action and there is no defense that
could not be adequately raised if the Company assumes such obligation.  The Company need not reimburse any expense or
indemnify against any loss, liability or expense incurred by the Trustee
through the Trustee’s own willful misconduct, negligence or bad faith.

 

To secure the Company’s
payment obligations in this Section 7.07, the Trustee shall have a lien
prior to the Notes on all money or property held or collected by the Trustee
other than money or property held in trust to pay principal of and premium, if
any, and interest on particular Notes. 
Such lien shall survive the satisfaction and discharge of this
Indenture.  The Trustee’s right to
receive payment of any amounts due under this Section 7.07 shall not be
subordinate to any other liability or Indebtedness of the Company.

 

The Company’s payment
obligations pursuant to this Section 7.07 shall survive the discharge of
this Indenture.  When the Trustee incurs
expenses after the occurrence of a Default specified in Section 6.01(5) hereof
with respect to the Company, the expenses are intended to constitute expenses
of administration under any bankruptcy law.

 

Section 7.08. 
Replacement of Trustee.  The Trustee may resign at any time by so
notifying the Company.  The Holders of a
majority in principal amount of the Notes may remove the Trustee by so
notifying the Trustee and may appoint a successor Trustee.  The Company shall remove the Trustee if:

 

(1)           the Trustee fails to comply with Section 7.10
hereof;

 

(2)           the Trustee is adjudged bankrupt or
insolvent;

 

(3)           a receiver or other public officer
takes charge of the Trustee or its property; or

 

(4)           the Trustee otherwise becomes
incapable of acting.

 

If the Trustee resigns or
is removed by the Company or by the Holders of a majority in principal amount
of the Notes and such Holders do not reasonably promptly appoint a successor
Trustee, or if a vacancy exists in the office of the Trustee for any reason
(the Trustee in such event being referred to herein as the retiring Trustee),
the Company shall promptly appoint a successor Trustee.

 

A successor Trustee shall
deliver a written acceptance of its appointment to the retiring Trustee and to
the Company.  Thereupon the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture.  The successor Trustee shall
mail a notice of its succession to

 

41

 

Noteholders.  The retiring Trustee shall promptly transfer
all property held by it as Trustee to the successor Trustee, subject to the
lien provided for in Section 7.07 hereof.

 

If a successor Trustee
does not take office within 60 days after the retiring Trustee resigns or is
removed, the retiring Trustee or the Holders of 10% in principal amount of the
Notes may petition, at the Company’s expense, any court of competent
jurisdiction for the appointment of a successor Trustee.

 

If the Trustee fails to
comply with Section 7.10 hereof, any Noteholder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

Notwithstanding the
replacement of the Trustee pursuant to this Section 7.08, the Company’s
obligations under Section 7.07 hereof shall continue for the benefit of
the retiring Trustee.

 

Section 7.09. 
Successor Trustee by Merger.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust
business or assets to, another corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be
the successor Trustee.

 

In case at the time such
successor or successors by merger, conversion, consolidation or transfer of
assets to the Trustee shall succeed to the trusts created by this Indenture,
any of the Notes shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any
predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to
the Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the Trustee.

 

Section 7.10. 
Eligibility; Disqualification.  The Trustee shall at all times satisfy the
requirements of Trust Indenture Act, Section 310(a).  The Trustee shall have a combined capital and
surplus of at least U.S. $50,000,000 as set forth in its most recent filed
annual report of condition.  The Trustee
shall comply with Trust Indenture Act, Section 310(b); provided, however,
that there shall be excluded from the operation of Trust Indenture Act, Section 310(b)(1) any
indenture or indentures under which other securities or certificates of
interest or participation in other securities of the Company are outstanding if
the requirements for such exclusion set forth in Trust Indenture Act, Section 310(b)(1) are
met.

 

Section 7.11. 
Preferential Collection of Claims Against Company.  The Trustee shall comply with Trust Indenture
Act, Section 311(a), excluding any creditor relationship listed in Trust
Indenture Act, Section 311(b).  A
Trustee who has resigned or been removed shall be subject to Trust Indenture
Act, Section 311(a) to the extent indicated.

 

Section 7.12. 
Trustee’s Application for Instruction from the
Company.  Any application by
the Trustee for written instructions from the Company may, at the option of the
Trustee, set forth in writing any action proposed to be taken or omitted by the
Trustee under this Indenture and the date on and/or after which such action
shall be taken or such omission shall be effective.  The Trustee shall not be liable for any
action taken by, or omission of, the Trustee in accordance 

 

42

 

with a proposal included in such application on or after the date
specified in such application (which date shall not be less than three Business
Days after the date any officer of the Company actually receives such
application, unless any such officer shall have consented in writing to any
earlier date) unless prior to taking any such action (or the effective date in
the case of an omission), the Trustee shall have received written instructions
in response to such application specifying the action to be taken or omitted.

 

ARTICLE
8

DISCHARGE OF INDENTURE; DEFEASANCE

 

Section 8.01. 
Discharge of Liability on Notes; Defeasance.  (a) Subject to Section 8.01(b) hereof,
when (i)(x) the Company delivers to the Trustee all outstanding Notes
(other than Notes replaced pursuant to Section 2.07 hereof) for
cancellation or (y) all outstanding Notes not theretofore delivered for
cancellation have become due and payable, whether at maturity or upon
redemption or will become due and payable within one year or are to be called
for redemption within one year under arrangements satisfactory to the Trustee
for the giving of notice of redemption by the Trustee in the name and at the
expense of the Company and the Company or the Guarantor irrevocably deposits or
causes to be deposited with the Trustee as trust funds in trust solely for the
benefit of the Holders money in U.S. dollars, non-callable U.S. Government
Securities, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest to pay and discharge the
entire indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation for principal and premium, if any, and accrued interest to the
date of maturity or redemption, (ii) no Default or Event of Default shall
have occurred and be continuing on the date of such deposit or shall occur as a
result of such deposit and such deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Company or the Guarantor is a party or by which the Company or the Guarantor is
bound; (iii) the Company or the Guarantor has paid or caused to be paid
all sums payable by it under this Indenture and the Notes; and (iv) the
Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of such Notes at
maturity or the Redemption Date, as the case may be, then the Trustee shall
acknowledge satisfaction and discharge of this Indenture on demand of the
Company (accompanied by an Officer’s Certificate and an Opinion of Counsel
stating that all conditions precedent specified herein relating to the
satisfaction and discharge of this Indenture have been complied with) and at
the cost and expense of the Company.

 

(b)           Subject
to Section 8.01(c) and Section 8.02 hereof, the Company at any
time may terminate (i) all its obligations under the Notes and this
Indenture (“legal defeasance option”), and
after giving effect to such legal defeasance, any omission to comply with such
obligations shall no longer constitute a Default or Event of Default or (ii) its
obligations under, Section 3.02, Section 3.03, Section 3.05, Section 3.08,
Section 3.09 and Section 3.15 hereof, and the Company may omit to
comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or by reason of
any reference in any such covenant to any other provision herein or in any
other document, and the operation of Section 6.01(3) (only with
respect to the covenants terminated pursuant to this Section 8.01(b)(ii)),
Section 6.01(4) and Section 6.01(5) hereof, and the events
specified in such Sections shall no longer constitute an Event of Default
(clause (ii) being referred to as the “covenant
defeasance 

 

43

 

option”), but except as specified above, the remainder of
this Indenture and the Notes shall be unaffected thereby.  The Company may exercise its legal defeasance
option notwithstanding its prior exercise of its covenant defeasance option. If
the Company exercises its covenant defeasance option, the Company may elect to
have the Guarantee terminate.

 

If the Company exercises
its legal defeasance option, payment of the Notes may not be accelerated
because of an Event of Default, and the Guarantee shall terminate.  If the Company exercises its covenant
defeasance option, payment of the Notes may not be accelerated because of an
Event of Default specified in Section 6.01(3) (only with respect to
the covenants terminated pursuant to Section 8.01(b)(ii) above), Section 6.01(4) and
Section 6.01(5) hereof.

 

Upon satisfaction of the
conditions set forth herein and upon request of the Company, the Trustee shall
acknowledge in writing the discharge of those obligations that the Company terminates.

 

(c)           Notwithstanding
the provisions of Section 8.01(a) and (b) hereof, the Company’s
obligations in Section 2.02, Section 2.03, Section 2.04, Section 2.05,
Section 2.06, Section 2.07, Section 2.08, Section 2.09, Section 2.10,
Section 3.01, Section 3.06, Section 3.07, Section 3.10, Section 3.11,
Section 3.12, Section 3.13, Section 3.14, Section 3.15, Section 6.07,
Section 7.07, Section 7.08 hereof and in this Article 8 shall
survive until the Notes have been paid in full. 
Thereafter, the Company’s obligations in Section 7.07, Section 8.04
and Section 8.05 hereof shall survive.

 

Section 8.02. 
Conditions to Defeasance.  The Company may exercise its legal defeasance
option or its covenant defeasance option only if:

 

(1)           the Company irrevocably deposits in
trust with the Trustee for the benefit of the Holders money in U.S. dollars or
U.S. Government Securities or a combination thereof for the payment of
principal of and premium, if any, and interest on the Notes to maturity or
redemption, as the case may be;

 

(2)           the Company delivers to the Trustee a
certificate from a firm of independent accountants expressing their opinion
that the payments of principal and interest when due and without reinvestment
on the deposited U.S. Government Securities plus any deposited money without
investment will provide cash at such times and in such amounts as will be
sufficient to pay principal and interest when due on all the Notes to maturity;

 

(3)           no Default or Event of Default shall
have occurred and be continuing on the date of such deposit or, with respect to
certain bankruptcy or insolvency Events of Default, on the 91st day after such
date of deposit;

 

(4)           such legal defeasance or covenant
defeasance shall not result in a breach or violation of, or constitute a Default
under, this Indenture or any other material agreement or instrument to which
the Company, the Guarantor or any of its Subsidiaries is a party or by which
the Company, the Guarantor or any of its Subsidiaries is bound;

 

(5)           the Company shall have delivered to
the Trustee an Opinion of Counsel (subject to customary assumptions and
exclusions) to the effect that (A) the Notes and (B) assuming no

 

44

 

intervening
bankruptcy of the Company between the date of deposit and the 91st day
following the deposit and that no Holder of the Notes is an insider of the
Company, after the 91st day following the deposit, the trust funds will not be
subject to the effect of any applicable bankruptcy, insolvency, reorganization
or similar laws affecting creditors’ right generally;

 

(6)           the deposit does not constitute a
default under any other agreement binding on the Company;

 

(7)           the Company delivers to the Trustee
an Opinion of Counsel (subject to customary assumptions and exclusions) to the
effect that the trust resulting from the deposit does not constitute, or is
qualified as, a regulated investment company under the U.S. Investment Company
Act of 1940, as amended;

 

(8)           in the case of the legal defeasance
option, the Company shall have delivered to the Trustee an Opinion of Counsel
(subject to customary assumptions and exclusions) in the United States stating
that (i) the Company has received from, or there has been published by,
the U.S. Internal Revenue Service a ruling, or (ii) since the date of this
Indenture there has been a change in the applicable federal income tax law, in
either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Noteholders will not recognize income, gain or loss for
federal income tax purposes as a result of such defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such legal defeasance had not occurred;

 

(9)           in the case of the covenant
defeasance option, the Company shall have delivered to the Trustee an Opinion
of Counsel (subject to customary assumptions and exclusions) in the United
States to the effect that the Noteholders will not recognize income, gain or
loss for federal income tax purposes as a result of such deposit and covenant
defeasance and will be subject to federal income tax on the same amount, in the
same manner and at the same times as would have been the case if such deposit
and covenant defeasance had not occurred; and

 

(10)         the Company delivers to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent to the defeasance and discharge of the Notes and this
Indenture as contemplated by this Article 8 have been complied with.

 

Section 8.03. 
Application of Trust Money.  The Trustee shall hold in trust money or U.S.
Government Securities deposited with it pursuant to this Article 8.  It shall apply the deposited money and the
money from U.S. Government Securities through the Paying Agent and in
accordance with this Indenture to the payment of principal of and premium, if
any, and interest on the Notes.

 

Section 8.04. 
Repayment to Company.  The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money or securities
held by them upon payment of all the obligations under this Indenture.

 

Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal of and
premium, if any, or interest on the Notes that remains unclaimed for two years,
and, thereafter, Noteholders entitled to the money must look to the Company for
payment as general creditors.

 

45

 

Section 8.05. 
Indemnity for U.S. Government Securities.  The Company shall pay and shall indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against
deposited U.S. Government Securities or the principal and interest received on
such U.S. Government Securities.

 

Section 8.06. 
Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Securities in accordance with this Article 8
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the obligations of the Company under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred
pursuant to this Article 8 until such time as the Trustee or Paying Agent
is permitted to apply all such money or U.S. Government Securities in
accordance with this Article 8; provided, however, that, if the Company
has made any payment of interest on or principal of any Notes because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money or U.S.
Government Securities held by the Trustee or Paying Agent.

 

The Trustee’s rights
under this Article 8 shall survive termination of this Indenture and the
resignation or removal of the Trustee.

 

ARTICLE
9

AMENDMENTS

 

Section 9.01. 
Without Consent of Holders.  The Company, the Guarantor and the Trustee
may amend this Indenture or the Notes without notice to or consent of any
Noteholder:

 

(1)           to cure any ambiguity, omission,
defect or inconsistency;

 

(2)           to comply with Article 4 in
respect of the assumption by a Successor Guarantor or Successor Issuer of the
respective obligation of the Guarantor or the Company under this Indenture;

 

(3)           to provide for uncertificated Notes
in addition to or in place of certificated Notes; provided, however, that the
uncertificated Notes are issued in registered form for purposes of Section 163(f) of
the Code or in a manner such that the uncertificated Notes are described in Section 163(f)(2)(B) of
the Code;

 

(4)           to add guarantees with respect to the
Notes;

 

(5)           to secure the Notes;

 

(6)           to add to the covenants of the Company
or the Guarantor for the benefit of the Holders or to surrender any right or
power herein conferred upon the Company or the Guarantor;

 

(7)           to make any change that does not
adversely affect the interests of any Noteholder;

 

(8)           to provide for the issuance of any
Subsequent Notes; or

 

46

 

(9)           to comply with any requirement of the
SEC in connection with the qualification of this Indenture under the Trust
Indenture Act.

 

After an amendment under
this Section 9.01 becomes effective, the Company shall mail to Noteholders
a notice briefly describing such amendment. 
The failure to give such notice to all Noteholders at the address set
forth in the Note Register, or any defect therein, shall not impair or affect
the validity of an amendment under this Section 9.01.

 

Section 9.02. 
With Consent of Holders.  The Company, the Guarantor and the Trustee
may amend this Indenture or the Notes without notice to any Noteholder but with
the written consent of the Holders of at least a majority in principal amount
of the Notes then outstanding (including, without limitation, consents obtained
in connection with a purchase of, or tender offer or exchange offer for,
Notes).  However, without the consent of
each Noteholder affected, an amendment may not:

 

(1)           reduce the percentage in principal
amount of outstanding Notes whose Holders must consent to an amendment of this
Indenture or the Notes;

 

(2)           reduce the percentage in principal amount
of outstanding Notes whose Holders must consent to an amendment of provisions
of the Master Trust Transaction Documents pursuant to Section 3.02(f) hereof;

 

(3)           reduce the stated rate of or extend
the stated time for payment of interest on any Note;

 

(4)           reduce the principal of, or extend
the Stated Maturity of, any Note;

 

(5)           reduce the premium payable upon the
redemption of any Note as described above under Article 5 hereof or any
similar provision, whether through an amendment to or waiver of Article 5
hereof, a definition or otherwise;

 

(6)           make any Note payable in money other
than that stated in the Note;

 

(7)           impair the right of any Holder to
receive payment of principal of and premium, if any, and interest on such
Holder’s Notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder’s Notes;

 

(8)           make any change to the amendment
provisions which require each Holder’s consent or to the waiver provisions; or

 

(9)           release the Guarantor or modify the
Guarantee other than in accordance with the provisions of this Indenture.

 

It shall not be necessary
for the consent of the Holders under this Section 9.02 to approve the
particular form of any proposed amendment, but it shall be sufficient if such
consent approves the substance thereof.

 

After an amendment under
this Section 9.02 becomes effective, the Company shall mail to Noteholders
a notice briefly describing such amendment. 
The failure to give such notice to all

 

47

 

Noteholders, or
any defect therein, shall not impair or affect the validity of an amendment
under this Section 9.02.

 

Section 9.03. 
Compliance with Trust Indenture Act.  Every amendment to this Indenture or the
Notes shall comply with the Trust Indenture Act as then in effect.

 

Section 9.04. 
Revocation and Effect of Consents and Waivers.  A consent to an amendment or a waiver by a
Holder of a Note shall bind the Holder and every subsequent Holder of that Note
or portion of the Note that evidences the same debt as the consenting Holder’s
Note, even if notation of the consent or waiver is not made on the Note.  However, any such Holder or subsequent Holder
may revoke the consent or waiver as to such Holder’s Note or portion of the
Note if the Trustee receives the notice of revocation before the date the
amendment or waiver becomes effective or otherwise in accordance with any
related solicitation documents.  After an
amendment or waiver becomes effective, it shall bind every Noteholder.  An amendment or waiver shall become effective
upon receipt by the Trustee of the requisite number of written consents under Section 9.01
or 9.02 hereof, as applicable.

 

The Company may, but
shall not be obligated to, fix a record date for the purpose of determining the
Noteholders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture.  If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were
Noteholders at such record date (or their duly designated proxies), and only
those Persons, shall be entitled to give such consent or to revoke any consent
previously given or to take any such action, whether or not such Persons
continue to be Holders after such record date. 
No such consent shall become valid or effective more than 120 days after
such record date.

 

Section 9.05. 
Notation on or Exchange of Notes.  If an amendment changes the terms of a Note,
the Trustee may require the Holder of the Note to deliver it to the
Trustee.  The Trustee may place an
appropriate notation on the Note regarding the changed terms and return it to
the Holder.  Alternatively, if the
Company or the Trustee so determines, the Company in exchange for the Note
shall issue and the Trustee shall authenticate a new Note that reflects the
changed terms.  Failure to make the
appropriate notation or to issue a new Note shall not affect the validity of
such amendment.

 

Section 9.06. 
Trustee to Sign Amendments.  The Trustee shall sign any amendment
authorized pursuant to this Article 9 if the amendment does not affect the
rights, duties, protections, privileges, indemnities, powers, liabilities or
immunities of the Trustee.  If it does,
the Trustee may but need not sign it.  In
signing such amendment the Trustee shall be entitled to receive indemnity
reasonably satisfactory to it and shall be provided with, and (subject to
Sections 7.01 and 7.02 hereof), shall be fully protected in relying upon an
Officer’s Certificate and an Opinion of Counsel stating that such amendment is
authorized or permitted by this Indenture, that it conforms to the applicable
requirements of the Trust Indenture Act and that such amendment is the legal,
valid and binding obligation of the Company and any Guarantors, enforceable
against them in accordance with its terms, subject to customary exceptions and
complies with the provisions hereof (including Section 9.03 hereof).

 

48

 

ARTICLE
10

GUARANTEE

 

Section 10.01. 
Guarantee.  The Guarantor hereby fully, unconditionally
and irrevocably guarantees, as primary obligor and not merely as surety, to
each Holder of the Notes and the Trustee the full and punctual payment when
due, whether at maturity, by acceleration, by redemption or otherwise, of the
principal of and premium, if any, and interest on the Notes and all other
obligations of the Company under this Indenture, including, without limitation,
the obligations of the Company under Section 7.07 hereof (all the
foregoing being hereinafter collectively called the “Obligations”).  The Guarantor further agrees (to the extent
permitted by law) that the Obligations may be extended or renewed, in whole or
in part, without notice or further assent from it, and that it will remain
bound under this Article 10 notwithstanding any extension or renewal of
any Obligation.

 

The Guarantor waives
presentation to, demand of payment from and protest to the Company of any of
the Obligations and also waives notice of protest for nonpayment.  The Guarantor waives notice of any default
under the Notes or the Obligations.  The
obligations of the Guarantor hereunder shall not be affected by (a) the
failure of the Trustee or any Holder to assert any claim or demand or to
enforce any right or remedy against the Company or any other person under this
Indenture, the Notes or any other agreement or otherwise; (b) any
extension or renewal of any thereof; (c) any rescission, waiver, amendment
or modification of any of the terms or provisions of this Indenture, the Notes
or any other agreement; (d) the release of any security held by any Holder
or the Trustee for the Obligations or any of them; or (e) any change in
the ownership of the Company.

 

The Guarantor further
agrees that the Guarantee herein constitutes a guarantee of payment when due
(and not a guarantee of collection) and waives any right to require that any
resort be had by any Holder or the Trustee to any security held for payment of
the Obligations.

 

The obligations of the
Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason (other than payment of the Obligations
in full), including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense of setoff, counterclaim,
recoupment or termination whatsoever or by reason of the invalidity, illegality
or unenforceability of the Obligations or otherwise.  Without limiting the generality of the
foregoing, the obligations of the Guarantor herein shall not be discharged or
impaired or otherwise affected by the failure of any Holder to assert any claim
or demand or to enforce any remedy under this Indenture, the Notes or any other
agreement, by any waiver or modification of any thereof, by any default,
failure or delay, willful or otherwise, in the performance of the Obligations,
or by any other act or thing or omission or delay to do any other act or thing
which may or might in any manner or to any extent vary the risk of the
Guarantor or would otherwise operate as a discharge of the Guarantor as a
matter of law or equity.

 

The Guarantor further
agrees that the Guarantee herein shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
principal of and premium, if any, or interest on any of the Obligations is
rescinded or must otherwise be restored by any Holder upon the bankruptcy or
reorganization of the Company or otherwise.

 

49

 

In furtherance of the
foregoing and not in limitation of any other right which any Holder has at law
or in equity against the Guarantor by virtue hereof, upon the failure of the
Company to pay any of the Obligations when and as the same shall become due,
whether at maturity, by acceleration, by redemption or otherwise, the Guarantor
hereby promises to and will, upon receipt of written demand by the Trustee,
forthwith pay, or cause to be paid, in cash, to the Holders an amount equal to
the sum of (i) the unpaid amount of such Obligations then due and owing
and (ii) accrued and unpaid interest on such Obligations then due and
owing (but only to the extent not prohibited by law).

 

The Guarantor further
agrees that, as between the Guarantor, on the one hand, and the Holders, on the
other hand, (x) the maturity of the Obligations guaranteed hereby may be
accelerated as provided in this Indenture for the purposes of the Guarantee
herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Obligations guaranteed hereby and (y) in
the event of any such declaration of acceleration of such Obligations, such
Obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantor for the purposes of this Guarantee.

 

The Guarantor also agrees
to pay any and all reasonable costs and expenses (including reasonable
attorneys’ fees) incurred by the Trustee or the Holders in enforcing any rights
under this Section.

 

Section 10.02. 
No Subrogation.  Notwithstanding any payment or payments made
by the Guarantor hereunder, the Guarantor shall not be entitled to be
subrogated to any of the rights of the Trustee or any Holder against the
Company or any collateral security or guarantee or right of offset held by the
Trustee or any Holder for the payment of the Obligations, nor shall the
Guarantor seek or be entitled to seek any contribution or reimbursement from
the Company in respect of payments made by the Guarantor hereunder, until all
amounts owing to the Trustee and the Holders, as well as the holders of any
other Permitted Indebtedness, by the Company on account of the Obligations are
paid in full.  If any amount shall be
paid to the Guarantor on account of such subrogation rights at any time when
all of the Obligations shall not have been paid in full, such amount shall be
held by the Guarantor in trust for the Trustee and the Holders, segregated from
other funds of the Guarantor, and shall, forthwith upon receipt by the
Guarantor, be turned over to the Trustee in the exact form received by the
Guarantor (duly indorsed by the Guarantor to the Trustee, if required), to be
applied against the Obligations.

 

Section 10.03. 
Consideration.  The Guarantor has received, or will receive,
direct or indirect benefits from the making of the Guarantee.

 

ARTICLE
11

MISCELLANEOUS

 

Section 11.01. 
Trust Indenture Act Controls.  If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required to be included
in this Indenture by the Trust Indenture Act, the provision required by the
Trust Indenture Act shall control.  The
Guarantor in addition to performing its obligations under the Guarantee shall
perform such other obligations as may be imposed upon it with respect to this
Indenture under the Trust Indenture Act.

 

50

 

Section 11.02. 
Notices. 
Any notice or communication shall be in writing and (a) delivered
in person, (b) sent by a recognized overnight delivery service (with
charges prepaid), or (c) sent by telecopy if the sender on the same day
sends a confirming copy of such notice by a recognized overnight delivery
service (charges prepaid), addressed as follows:

 

51

 

	
   

  	
  If to the Company:

  
	
   

  	
  Bunge Limited Finance
  Corp.

  
	
   

  	
  11720 Borman Drive

  
	
   

  	
  St. Louis, Missouri
  63146

  
	
   

  	
  Attention: John Gilsinn

  
	
   

  	
  Telephone No: (314)
  292-2314

  
	
   

  	
  Telecopy: (314)
  292-4314

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Hunter Smith

  
	
   

  	
  Telecopy: (914)
  684-3283

  
	
   

  	
   

  
	
   

  	
  If to the Guarantor:

  
	
   

  	
   

  
	
   

  	
  Bunge Limited

  
	
   

  	
  50 Main Street

  
	
   

  	
  White Plains, New York
  10606

  
	
   

  	
  Attention: Hunter Smith

  
	
   

  	
  Telephone: (914)
  684-3440

  
	
   

  	
  Telecopy: (914)
  684-3283

  
	
   

  	
   

  
	
   

  	
  if to the Trustee:

  
	
   

  	
   

  
	
   

  	
  [

  	
   

  	
  ]

  
	
   

  	
  [

  	
   

  	
  ]

  
	
   

  	
  [

  	
   

  	
  ]

  
	
   

  	
  [

  	
   

  	
  ]

  
	
   

  	
  Attention:

  	
  [

  	
   

  	
  ]

  
	
   

  	
  Telephone:

  	
  [

  	
   

  	
  ]

  
	
   

  	
  Telecopy:

  	
  [

  	
   

  	
  ]

  
						

 

 

The Company or the
Trustee by notice to the other may designate additional or different addresses
for subsequent notices or communications.

 

Any notice or
communication mailed to a registered Noteholder shall be mailed to the Noteholder
at the Noteholder’s address as it appears on the registration books of the
Registrar and shall be sufficiently given if so mailed within the time
prescribed.

 

Failure to mail a notice
or communication to a Noteholder or any defect in it shall not affect its
sufficiency with respect to other Noteholders. 
If a notice or communication is sent in the manner provided above, it is
duly given, whether or not the addressee receives it, except that notices to
the Trustee shall be effective only upon receipt.

 

Section 11.03.  Communication by Holders
with Other Holders. 
Noteholders may communicate pursuant to Trust Indenture Act, Section 312(b) with
other Noteholders with respect to their rights under this Indenture or the
Notes.  The Company, the Trustee, the Registrar

 

52

 

 

and anyone else
shall have the protection of Trust Indenture Act, Section 312(c).

 

Section 11.04.  Certificate and Opinion as
to Conditions Precedent.  Upon
any request or application by the Company to the Trustee to take or refrain
from taking any action under this Indenture, the Company shall furnish to the
Trustee:

 

(1)                                  an Officer’s Certificate in form and
substance reasonably satisfactory to the Trustee stating that, in the opinion
of the signer, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

 

(2)                                  an Opinion of Counsel in form and
substance reasonably satisfactory to the Trustee stating that, in the opinion
of such counsel, all such conditions precedent have been complied with.

 

Section 11.05.  Statements Required in
Certificate or Opinion.  Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

 

(1)                                  a statement that the individual making
such certificate or opinion has read such covenant or condition;

 

(2)                                  a brief statement as to the nature and
scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;

 

(3)                                  a statement that, in the opinion of such
individual, he has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and

 

(4)                                  a statement as to whether or not, in the
opinion of such individual, such covenant or condition has been complied with.

 

In giving such Opinion of
Counsel, counsel may rely as to factual matters on an Officer’s Certificate or
on certificates of public officials.

 

Section 11.06.  When Notes Disregarded.  In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by the Company or by an Affiliate of the Company shall be
disregarded and deemed not to be outstanding, except that, for the purpose of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes which a Trust Officer of the Trustee
actually knows are so owned shall be so disregarded.  Also, subject to the foregoing, only Notes
outstanding at the time shall be considered in any such determination.

 

Section 11.07.  Rules by Trustee,
Paying Agent and Registrar. 
The Trustee may make reasonable rules for action by, or a meeting
of, Noteholders.  The Registrar and the
Paying Agent may make reasonable rules for their functions.

 

Section 11.08.  Legal Holidays.  A “Legal Holiday” is a Saturday, a Sunday or
other day on which commercial banking institutions are authorized or required
to be closed in New York, 

 

53

 

 

New York or
Hamilton, Bermuda.  If a payment date is
a Legal Holiday, payment shall be made on the next succeeding day that is not a
Legal Holiday, and no interest shall accrue for the intervening period.  If a regular record date is a Legal Holiday,
the record date shall not be affected.

 

Section 11.09.  GOVERNING LAW.  THIS INDENTURE AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

Section 11.10.  No Recourse Against
Others.  An incorporator,
director, officer, employee, affiliate or stockholder of the Company or the
Guarantor, solely by reason of this status, shall not have any liability for
any obligations of the Company under the Notes, this Indenture or the Guarantee
or for any claim based on, in respect of or by reason of such obligations or
their creation.  By accepting a Note,
each Noteholder shall waive and release all such liability.  The waiver and release shall be part of the
consideration for the issue of the Notes.

 

Section 11.11.  Successors.  All agreements of the Company in this
Indenture and the Notes shall bind their respective successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

 

Section 11.12.  Consent to Jurisdiction.  The Guarantor irrevocably submits to the
non-exclusive jurisdiction of any New York state or U.S. federal court sitting
in the Borough of Manhattan, The City of New York, in any action or proceeding
relating to its obligations, liabilities or any other matter arising out of or
in connection with this Indenture or the Notes. 
The Guarantor hereby irrevocably agrees that all claims in respect of
any such action or proceeding may be heard and determined in such New York
state or U.S. federal court.  The
Guarantor also hereby irrevocably waives, to the fullest extent permitted by
law, any objection to venue or the defense of an inconvenient forum to the
maintenance of any such action or proceeding in any such court.

 

Section 11.13.  Appointment for Agent for
Service of Process.  The
Guarantor hereby (i) irrevocably designates and appoints its Chief
Financial Officer (from time to time) at its principal executive offices at 50
Main Street, White Plains, New York 10606 (the “Authorized Agent”), as its
agent upon which process may be served in any suit, action or proceeding
described in the first sentence of Section 11.12 hereof and represents and
warrants that the Authorized Agent has accepted such designation and (ii) agrees
that service of process upon the Authorized Agent and written notice of said
service to the Guarantor mailed or delivered to its Secretary at its registered
office at 2 Church Street, Hamilton, Bermuda, shall be deemed in every respect
effective service of process upon the Guarantor in any such suit or
proceeding.  The Guarantor further agrees
to take any and all action, including the execution and filing of any and all
such documents and instruments, as may be necessary to continue such
designation and appointment of the Authorized Agent in full force and effect so
long as any of the Notes shall be outstanding.

 

Section 11.14.  Waiver of Immunities.  To the extent that the Guarantor or any of
its properties, assets or revenues may have or may hereafter become entitled
to, or have attributed to them, any right of immunity, on the grounds of
sovereignty, from any legal action, suit or 

 

54

 

 

proceeding, from
set-off or counterclaim, from the jurisdiction of any court, from service of
process, from attachment upon or prior to judgment, or from attachment in aid
of execution of judgment, or from execution of judgment, or other legal process
or proceeding for the giving of any relief or for the enforcement of any
judgment, in any jurisdiction in which proceedings may at any time be
commenced, with respect to its obligations, liabilities or any other matter
under or arising out of or in connection with this Indenture or the Notes, the
Guarantor hereby irrevocably and unconditionally, to the extent permitted by
applicable law, waives and agrees not to plead or claim any such immunity and
consents to such relief and enforcement.

 

Section 11.15.  Additional Amounts.  In the event that payments are required to be
made by the Guarantor pursuant to its obligations under the Guarantee, the
Guarantor will pay to the Holder of any Note additional amounts as may be
necessary so that every net payment made by the Guarantor of the principal of
and premium, if any, and interest on such Note, after deducting or withholding
for or on account of any present or future tax, duty, assessment or other
similar governmental charge duly imposed by Bermuda, will not be less than the
amount provided in that Note to be then due and payable.  The Guarantor will not be required, however,
to make any payment of additional amounts for or on account of any such tax
imposed by reason of the Holder having some connection with Bermuda, other than
its participation as a Holder under this Indenture.

 

Section 11.16.  Judgment Currency.  If for the purposes of obtaining judgment in
any court it is necessary to convert a sum due hereunder into any currency
other than U.S. dollars, the parties hereto agree, to the fullest extent
permitted by law, that the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee or any Holder, as the
case may be, could purchase U.S. dollars with such other currency in New York
City on the Business Day preceding that on which final judgment is given.  The obligation of the Guarantor with respect
to any sum due from it to the Trustee or any Holder shall, notwithstanding any
judgment in a currency other than U.S. dollars, be discharged only if and to
the extent that on the first Business Day following receipt by the Trustee or
such Holder, as the case may be, of any sum adjudged to be so due in such other
currency, the Trustee or such Holder may in accordance with normal banking
procedures purchase U.S. dollars with such other currency.  If the U.S. dollars so purchased are less
than the sum originally due to the Trustee or such Holder hereunder, the
Guarantor agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify the Trustee or such Holder against such loss.  If the U.S. dollars so purchased are greater
than the sum originally due to the Trustee or such Holder hereunder, the
Trustee or such Holder, as the case may be, agrees to pay to the Guarantor an
amount equal to the excess of the U.S. dollars so purchased over the sum
originally due to the Trustee or such Holder hereunder.

 

Section 11.17.  No Bankruptcy Petition
Against the Company; Liability of the Company.  Each of the Noteholders and the Trustee
hereby covenants and agrees that, prior to the date which is one year and one
day after the payment in full of the last maturing Note and all other 

 

55

 

 

Indebtedness of
the Company ranking equal with or junior to the Notes in right of payment, it
will not institute against, or join with or assist any other Person in
instituting against, the Company, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any applicable
insolvency laws.

 

Notwithstanding any other
provision hereof, the sole remedy of any Noteholder, the Trustee or any other
Person against the Company in respect of any obligation, covenant,
representation, warranty or agreement of the Company under or related to this
Indenture or the Notes shall be against the assets of the Company.  Neither the Trustee, nor any Noteholder nor
any other Person shall have any claim against the Company to the extent that
such assets are insufficient to meet such obligations, covenant,
representation, warranty or agreement (the difference being referred to herein
as a “shortfall”) and all claims in respect
of the shortfall shall be extinguished; provided, however, that the provisions
of this Section 11.17 apply solely to the obligations of the Company and
shall not extinguish such shortfall or otherwise restrict such Person’s rights
or remedies against the Guarantor for purposes of the obligations of the
Guarantor to any Person under the Guarantee.

 

The provisions of this Section 11.17
shall survive the termination of this Indenture and the resignation or removal
of the Trustee.

 

Section 11.18.  Multiple Originals.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.  One signed copy is enough to prove this
Indenture.

 

Section 11.19.  Qualification of Indenture.  The Company shall qualify this Indenture
under the Trust Indenture Act and shall pay all reasonable costs and expenses
(including attorneys’ fees and expenses for the Company, the Trustee and the
Holders) incurred in connection therewith, including, but not limited to, costs
and expenses of qualification of this Indenture and the Notes and printing this
Indenture and the Notes.  The Trustee
shall be entitled to receive from the Company any such Officer’s Certificates,
Opinions of Counsel or other documentation as it may reasonably request in
connection with any such qualification of this Indenture under the Trust Indenture
Act.

 

Section 11.20.  Table of Contents;
Headings.  The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

 

 

56

 

 

IN WITNESS WHEREOF, the
parties have caused this Indenture to be duly executed as of the date first
written above.

 

	
   

  	
  BUNGE LIMITED FINANCE CORP., as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUNGE LIMITED, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [

  	
   

  	
  ],

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

 

57

EXHIBIT A

 

[FORM OF FACE
OF INITIAL NOTE AND SUBSEQUENT NOTE]

 

[Depository
Legend, if applicable]

 

	
  No. [          ]

  	
   

  	
  Principal Amount
  U.S. $[       ], as revised by the
  Schedule of Increases and Decreases in Global Note attached hereto  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CUSIP NO. [          ]

  	
   

  
	
   

  	
   

  	
  ISIN:
  [          ]

  	
   

  

 

 

 

[      ]%
Senior Notes Due [          ]

 

Bunge Limited Finance Corp., a Delaware corporation,
promises to pay to [      ], or registered
assigns, the principal sum of U.S.$ [      ], as
revised by the Schedule of Increases and Decreases in Note attached hereto, on
[      ].

 

Interest Payment Dates:
[      ] and
[      ]

 

Record Dates: [      ]
and [      ]

 

Additional provisions of this Note are set forth on
the reverse side hereof.

 

 

A-1

 

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

 

	
   

  	
  BUNGE LIMITED FINANCE CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

	
  TRUSTEE’S CERTIFICATE
  OF

  	
   

  
	
  AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  [                                                         ],

  	
   

  
	
  as Trustee, certifies
  that this is one of

  	
   

  
	
  the Notes referred to
  in the Indenture.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
  Date:                                ,
  20

  	
   

  
			

 

 

A-2

 

[FORM OF
REVERSE SIDE OF INITIAL NOTE AND SUBSEQUENT NOTE]

 

[      ]%
Senior Note Due
[              ]

 

1.                                       General

 

Bunge Limited Finance
Corp., a Delaware corporation (such partnership, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the “Company”), issued the Notes under an Indenture, dated as of
[      ], among the Company, the Guarantor and
the Trustee (as such Indenture may be amended or supplemented from time to time
in accordance with the terms thereof, the “Indenture”).  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the U.S.
Trust Indenture Act of 1939 as in effect on the date of the Indenture (the “Trust Indenture Act”). 
Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture.  The
Notes are subject to all such terms, and Noteholders are referred to the
Indenture and the Trust Indenture Act for a statement of those terms.

 

The Notes are general
unsecured senior obligations of the Company, including (a) U.S.
$[      ] in aggregate principal amount of Notes
being offered on the Issue Date (subject to Section 2.07 of the Indenture)
and (b) any Subsequent Notes.  The
Notes rank equally with all other unsecured and unsubordinated indebtedness of
the Company.  This Note is one of the
[Initial Notes] [Subsequent Notes] referred to in the Indenture.

 

The Company may from time
to time during the Subsequent Issuance Period, without the consent of existing
Holders, create and issue Subsequent Notes having the same terms and conditions
as the Initial Notes in all respects, except for the Issue Date, issue price
and first payment of interest thereon. 
Subsequent Notes issued in this manner will be consolidated with and
will form a single class with the previously outstanding Notes.

 

Except as otherwise
provided in the Indenture, the Initial Notes and any Subsequent Notes will be
treated as a single class of securities under the Indenture.  The Indenture includes various covenants that
limit the ability of the Company, among other things, to engage in any business
or transaction, acquire assets or subsidiaries, incur Indebtedness or Liens or
enter into any consolidations, mergers, amalgamations or sales of assets. In addition,
the Indenture imposes certain limitations on, among other things, (i) the
incurrence of Liens by the Guarantor or any Restricted Subsidiary, (ii) Sale-Leaseback
Transactions by the Guarantor or any Restricted Subsidiary and (iii) consolidations,
mergers, amalgamations and sales of assets of the Guarantor, the Company or any
Subsidiary.

 

To guarantee the due and
punctual payment of the principal of and premium, if any, and interest on the
Notes and all other amounts payable by the Company under the Indenture and the
Notes when and as the same shall be due and payable, whether at maturity, by
acceleration or otherwise, according to the terms of the Notes and the
Indenture, the Guarantor has unconditionally guaranteed such obligations
pursuant to the terms of the Indenture. 
The Guarantee is an unsecured and unsubordinated obligation of the
Guarantor and ranks equally with all other unsecured and unsubordinated
indebtedness and obligations of the Guarantor.

 

 

A-3

 

2.                                       Interest

 

The Company promises to
pay interest on the principal amount of this Note at the rate per annum shown
above.

 

The Company will pay
interest semi-annually on [      ] and
[      ] of each year commencing
[      ]. 
Interest on the Notes will accrue from the most recent date to which
interest has been paid on the Notes or, if no interest has been paid, from
[      ]. 
The Company shall pay interest on overdue principal or premium, if any,
plus interest on such interest to the extent lawful, at the rate borne by the
Notes to the extent lawful.  Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

 

3.                                       Method of Payment

 

By at least 10:00 a.m.
(New York City time) on the date on which any principal of and premium, if any,
or interest on any Note is due and payable, the Company shall irrevocably
deposit with the Trustee or the Paying Agent money sufficient to pay such
principal, premium, if any, and/or interest. 
The Company will pay interest (except Defaulted Interest) to the Persons
who are registered Holders of Notes at the close of business on the
[      ] or
[      ] next preceding the interest payment date
even if Notes are cancelled, repurchased or redeemed after the record date and
on or before the interest payment date. 
Holders must surrender Notes to a Paying Agent to collect principal
payments.  The Company will pay
principal, premium, if any, and interest in money of the United States that at
the time of payment is legal tender for payment of public and private
debts.  Except as described in the
succeeding two sentences, the principal of and premium, if any, and interest on
the Notes shall be payable at the office or agency of the Company maintained
for such purpose in The City of New York, or at such other office or agency of
the Company as may be maintained for such purpose pursuant to Section 2.03
of the Indenture; provided, however, that, at the
option of the Company, each installment of interest may be paid by check mailed
to addresses of the Persons entitled thereto as such addresses shall appear on
the Note Register.  Payments in respect
of Notes represented by a Global Note (including principal, premium, if any,
and interest) will be made by wire transfer of immediately available funds to
the account specified by The Depository Trust Company.  Payments in respect of Notes represented by
Definitive Notes (including principal, premium, if any, and interest) held by a
Holder of at least U.S.$1,000,000 aggregate principal amount of Notes will be
made by wire transfer to a U.S. dollar account maintained by the payee with a
bank in the United States if such Holder elects payment by wire transfer by
giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 15 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept in
its discretion).

 

4.                                       Paying Agent and Registrar

 

Initially,
[                ]
(the “Trustee”), will act as Trustee, Paying
Agent and Registrar.  The Company may
appoint and change any Paying Agent, Registrar or co-registrar without notice
to any Noteholder.  The Company, the
Guarantor or any Subsidiary may act as Paying Agent, Registrar or co-registrar.

 

 

A-4

 

5.                                       Optional Redemption by the Company

 

The Notes will be
redeemable at the option of the Company, in whole at any time or in part from
time to time, on at least 30 days but not more than 60 days’ prior notice
mailed to the registered address of each Holder of Notes to be so redeemed, at
a redemption price equal to (a) the greater of (i) 100% of their
principal amount to be redeemed or (ii) the sum of the present values of
the remaining scheduled payments of principal and interest thereon from the
date of redemption to the date of maturity (except for currently accrued but
unpaid interest) discounted to the date of redemption, on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months), at the applicable
Treasury Yield (as defined below), plus [      ]
basis points (such greater amount, the “Redemption Price”),
plus (b) accrued and unpaid interest, if any, to the date of redemption.

 

For purposes of
determining the Redemption Price, the following definitions are applicable:

 

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

 

“Comparable
Treasury Price” means, with respect to any redemption date, (a) the
bid price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) at 4:00 P.M. on the third business day preceding such
redemption date, as set forth on “Telerate Page 500” (or such other page as
may replace Telerate Page 500), or (b) if such page (or any
successor page) is not displayed or does not contain such bid prices at such
time (i) the average of the Reference Treasury Dealer Quotations or (ii) if
the Trustee is unable to obtain at least four such Reference Treasury Dealers
Quotations, the average of all Reference Treasury Dealer Quotations obtained by
the Trustee.

 

“Independent
Investment Banker” means any of
[      ] or
[      ], or, if all such firms are unwilling or
unable to select the applicable Comparable Treasury Issue, an independent
investment banking institution of national standing appointed by the Trustee
and reasonably acceptable to the Company.

 

“Reference
Treasury Dealer” means [      ] and
[      ], and two other primary U.S. Government
securities dealer in New York City selected by the Independent Investment
Banker (each, a “Primary Treasury Dealer”); provided however, that if any of
the foregoing shall cease to be a Primary Treasury Dealer, the Company will
substitute another Primary Treasury Dealer.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any redemption date for the Notes, an average, as
determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue for the Notes (expressed in each case as a percentage of its
principal amount) quoted in writing to the Trustee by such Reference Treasury
Dealer at 5:00 p.m. on the third business day preceding such redemption
date.

 

 

A-5

 

“Treasury
Yield” means, with respect to any redemption date applicable to the
Notes, the rate per annum equal to the semi-annual equivalent yield to maturity
(computed as of the third Business Day immediately preceding such redemption
date) of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the
applicable Comparable Treasury Price for such redemption date.

 

In the case of any
partial redemption, selection of the Notes for redemption will be made by the Trustee
in compliance with the requirements of the principal national securities
exchange, if any, on which the Notes are listed or, if the Notes are not
listed, then on a pro rata basis, by lot or by such other method as the Trustee
in its sole discretion shall deem to be fair and appropriate, although no Notes
of U.S. $1,000 in original principal amount or less will be redeemed in
part.  If any Note is to be redeemed in
part only, the notice of redemption relating to such Note shall state the
portion of the principal amount thereof to be redeemed.  A new Note in principal amount equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Note. 
On and after the redemption date, interest will cease to accrue on Notes
or portions thereof called for redemption as long as the Company has deposited
with the Paying Agent funds in satisfaction of the applicable Redemption Price
pursuant to the Indenture.

 

6.                                       Offers to Repurchase

 

Upon the occurrence of a
Change of Control Triggering Event, the Company shall make an offer (a “Change of Control Offer”) to each Holder to repurchase all
or any part (equal to $1,000 or an integral multiple of $1,000 thereof) of each
Holder’s Notes at a purchase price equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest thereon, if any, to, but
excluding, the date of purchase (the “Change of Control Payment”).  The Change of Control Offer shall be made in
accordance with Section 3.15 of the Indenture.

 

7.                                       Additional Amounts

 

The Company will, subject
to certain limitations set forth in the Indenture, pay to the Holder of any
Note additional amounts as necessary so that every net payment made by the
Company of the principal of and premium, if any, and interest on such Note,
after deducting or withholding for or on account of any present or future tax,
duty, assessment or other similar governmental charge duly imposed by the
United States, will not be less than the amount provided in such Note to be
then due and payable.  In addition, the
Guarantor will, subject to certain limitations set forth in the Indenture, pay
to the Holder of any Note additional amounts as necessary so that every net
payment made by the Guarantor of principal of and premium, if any, and interest
on such Note, after deducting or withholding for or on account of any present
or future tax, duty, fee, assessment or other governmental charge imposed on
that Holder by Bermuda, will not be less than the amount provided in such Note
to be then due and payable.

 

8.                                       Denominations; Transfer; Exchange

 

The Notes are in
registered form without coupons in denominations of principal amount of U.S.
$1,000 and whole multiples of U.S. $1,000. 
A Holder may transfer or exchange Notes in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to 

 

 

A-6

 

furnish
appropriate endorsements or transfer documents and to pay any taxes and fees
required by law or permitted by the Indenture. 
The Registrar need not register the transfer of or exchange (i) any
Notes selected for redemption (except, in the case of a Note to be redeemed in
part, the portion of the Note not to be redeemed) for a period beginning 15
days before the mailing of a notice of Notes to be redeemed and ending on the
date of such mailing or (ii) any Notes for a period beginning 15 days
before an interest payment date and ending on such interest payment date.

 

9.                                       Persons Deemed Owners

 

The registered Holder of
this Note may be treated as the owner of it for all purposes.

 

10.                                 Unclaimed Money

 

If money for the payment
of principal or interest remains unclaimed for two years, the Trustee or Paying
Agent shall pay the money back to the Company at its request unless an
abandoned property law designates another Person.  After any such payment, Holders entitled to
the money must look only to the Company and not to the Trustee for payment.

 

11.                                 Defeasance

 

Subject to certain
conditions set forth in the Indenture, the Company at any time may terminate
some or all of its obligations under the Notes and the Indenture if the Company
deposits with the Trustee money or U.S. Government Securities for the payment
of principal and interest on the Notes to redemption or maturity, as the case
may be.

 

12.                                 Amendment, Waiver

 

The Indenture or the
Notes may be amended with the written consent of the Holders of at least a
majority in principal amount of the then outstanding Notes; provided, however, that the consent of each Noteholder
affected is required to (i) reduce the amount of Notes whose Holders must
consent to an amendment of the Indenture, the Notes or specified provisions of
the Master Trust Transaction Documents, (ii) reduce the stated rate or
extend the stated time for payment of interest on a Note, (iii) reduce the
principal of or extend the Stated Maturity of a Note, (iv) reduce the
premium payable upon redemption of a Note, (v) make any Note payable in
money other than that stated herein, (vi) impair the right of a Holder to
receive payment under the Note or institute suit for the enforcement of such
payment, (vii) make any change to the amendment provisions which require
each Holder’s consent or the waiver provisions, or (viii) release the
Guarantor or modify the Guarantee.

 

Subject to certain
exceptions set forth in the Indenture, without the consent of any Noteholder,
the Company and the Trustee may amend the Indenture or the Notes to cure any
ambiguity, omission, defect or inconsistency, or to comply with Article 4
of the Indenture, or to provide for uncertificated Notes in addition to or in
place of certificated Notes, or to add guarantees with respect to the Notes, or
to secure the Notes, or to add additional covenants of the Company, the
Guarantor or any Subsidiary, or surrender rights and powers conferred on the
Company, the Guarantor or any Subsidiary, issue Subsequent Notes, or to comply
with any 

 

 

A-7

 

requirement of the
SEC in connection with qualifying the Indenture under the Trust Indenture Act,
or to make any change that does not adversely affect the rights of any
Noteholder.

 

Subject to certain
exceptions set forth in the Indenture, any default (other than with respect to
nonpayment or in respect of a provision that cannot be amended without the
written consent of each Noteholder affected) or noncompliance with any
provision may be waived with the written consent of the Holders of a majority
in principal amount of the then outstanding Notes.

 

13.                                 Defaults and Remedies

 

Under the Indenture,
Events of Default include (1) default for 30 days in payment of interest
or additional interest when due on the Notes; (2) default in payment of
principal of or premium, if any, on the Notes at Stated Maturity, upon optional
redemption, upon declaration or otherwise; (3)  the failure by the Company
or the Guarantor to comply for 60 days after written notice with its other
agreements contained in the Indenture or under the Notes (other than those
referred to in (1) or (2) above); (4) the failure of the
Company, the Guarantor or any Subsidiary (a) to pay the principal of any
indebtedness for borrowed money, including obligations evidenced by any
mortgage, indenture, bond, debenture, note, guarantee or other similar
instruments, on the scheduled or original date due; (b) to pay interest on
any such indebtedness beyond any provided grace period; or (c) to observe
or perform any agreement or condition relating to such indebtedness, the effect
of which is to cause such indebtedness to become due prior to its stated
maturity and such acceleration has not been cured within 15 days after notice
of acceleration; provided that an event described in clause (a), (b) or (c) above
shall not constitute an Event of Default unless, at such time, one or more
events of the type described in clauses (a), (b) or (c) shall have
occurred or be continuing with respect to indebtedness in an amount exceeding
U.S. $50,000,000; or (5) certain events of bankruptcy, insolvency or
reorganization of the Company, the Guarantor, a Designated Obligor or any
Material Subsidiary (the “bankruptcy events”).  However, a default under clause (3) will
not constitute an Event of Default until the Trustee or the Holders of at least
25% in principal amount of the outstanding Notes notify the Company or the
Guarantor, as the case may be, of the default and the Company or the Guarantor,
as the case may be, does not cure such default within the time specified in
clause (3) hereof after receipt of such notice.

 

If an Event of Default other
than a bankruptcy event occurs and is continuing, the Trustee or the Holders of
at least 25% in principal amount of the Notes may declare all the Notes by
written notice to the Company to be due and payable immediately.  If an Event of Default in connection with a
bankruptcy event occurs and is continuing, the principal amount of the Notes,
the premium, if any, and all accrued and unpaid interest shall be immediately
due and payable without any action or other act on the part of the Trustee or
the Holders.

 

Noteholders may not
enforce the Indenture or the Notes except as provided in the Indenture.  The Trustee may refuse to enforce the
Indenture or the Notes unless it receives reasonable indemnity or security.  Subject to certain limitations, Holders of a
majority in principal amount of the Notes may direct the Trustee in its
exercise of any trust or power.  The
Trustee may withhold from Noteholders notice of any continuing Default or Event
of Default 

 

 

A-8

 

(except a Default
or Event of Default in payment of principal or interest) if it determines that
withholding notice is in their interest.

 

14.                                 Trustee Dealings with the Company

 

Subject to certain
limitations set forth in the Indenture, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with and collect obligations owed to it by the Company or
its Affiliates and may otherwise deal with the Company or its Affiliates with
the same rights it would have if it were not Trustee.

 

15.                                 No Recourse Against Others

 

An incorporator,
director, officer, employee, affiliate or stockholder of each of the Company or
the Guarantor, solely by reason of this status, shall not have any liability
for any obligations of the Company under the Notes, the Indenture or the
Guarantee or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Note, each Noteholder waives and releases all such liability.  The waiver and release are part of the
consideration for the issue of the Notes.

 

16.                                 No Petition

 

By its acquisition of
this Note, each Holder hereof agrees that neither it nor the Trustee on its
behalf may commence, or join with any other person in the commencement of, a
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding
with respect to the Company under any applicable insolvency laws until one year
and one date after the Notes and all other Indebtedness of the Company ranking
equal with or junior to the Notes in right of payment, including all interest
and premium thereon, if any, are paid in full.

 

17.                                 Authentication

 

This Note shall not be
valid until an authorized signatory of the Trustee (or an authenticating agent
acting on its behalf) manually signs the certificate of authentication
appearing on this Note.

 

18.                                 Abbreviations

 

Customary abbreviations
may be used in the name of a Noteholder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entirety), JT TEN (=joint
tenants with rights of survivorship and not as tenants in common), CUST
(=custodian) and U/G/M/A (=Uniform Gift to Minors Act).

 

19.                                 CUSIP Numbers

 

Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures the Company has caused CUSIP numbers to be printed on the Notes and
has directed the Trustee to use CUSIP numbers in notices of redemption as a
convenience to Noteholders.  No
representation is made as to the accuracy of such numbers either as printed on 

 

 

A-9

 

the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

 

20.                                 Governing Law

 

This Note shall be governed
by, and construed in accordance with, the laws of the State of New York.

 

The Company will furnish
to any Noteholder upon written request and without charge to the Noteholder a
copy of the Indenture.  Requests may be
made to:

 

Bunge Limited
Finance Corp.

11720 Borman Drive

St. Louis, Missouri 63146

Attention: John Gilsinn

Telephone No: (314)
292-2314

Telecopy: (314)
292-4314

 

 

A-10

 

 

ASSIGNMENT FORM

 

To assign this Note, fill
in the form below:

 

I or we assign and
transfer this Note to

 

 

	
   

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

  	
   

  

 

	
   

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

  	
   

  

 

	
  and irrevocably
  appoint

  	
  agent to
  transfer this Note on the books of the Company.  The agent may substitute another to 

  

act for him.

 

	
   

  
	
  Date:

  	
   

  	
   Your
  Signature

  	
   

  

 

	
  Signature
  Guarantee:

  	
   

  

(Signature must be
guaranteed)

 

 

	
  Sign exactly as
  your name appears on the other side of this Note.

  

 

The signature(s) should
be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

 

A-11

 

[TO BE ATTACHED TO
NOTES]

SCHEDULE OF
INCREASES OR DECREASES IN NOTE

 

The following
increases or decreases in this Note have been made:

 

	
  Date of
  Exchange

  	
   

  	
  Amount of
  decrease in

  Principal Amount of this

  Note

  	
   

  	
  Amount of
  increase in

  Principal Amount of this

  Note

  	
   

  	
  Principal
  Amount of this

  Note following such

  decrease or increase

  	
   

  	
  Signature
  of authorized

  signatory of Trustee or

  Securities Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-12

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 3.15 of the Indenture, check the box
below:

 

[   ] Section 3.15

 

If you want to elect to have only part of this Note
purchased by the Issuer pursuant to Section 3.15 of the Indenture, state
the amount you elect to have purchased:

 

	
  $

  	
   

  	
   

  

 

	
  Date:

  	
   

  	
   

  

 

 

	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name appears on

  
	
   

  	
  the face of this Note)

  
	
   

  	
   

  
	
   

  	
  Tax Identification No.:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
						

 

*
Participant in a recognized Signature Guarantee Medallion Program (or other  signature guarantor
acceptable to the Trustee).

 

A-13

 

SCHEDULE 1.1

 

[Material
Subsidiaries]

 

A-14

 

SCHEDULE
3.4

 

 

[Existing Liens]

 

A-15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]