Document:

Exhibit 4.1

 

HRPT PROPERTIES TRUST

 

(formerly known as Health and Retirement Properties Trust)

 

Third Amendment and Restatement of Declaration of Trust

 

October 9, 1986

As Amended and Restated on July 1, 1994

and Amended July 9, 1996

and Amended March 3, 1997

and Amended May 26, 1998

and Amended July 1, 1998

and Amended June 16, 2003

and Amended January 2, 2004

and Amended March 16, 2005

and Amended September 12, 2005

and Amended May 24, 2006

and Amended December 29, 2006

and Amended May 15, 2007

and Amended October 16, 2007

and Amended May 14, 2009

 

 

	
  ARTICLE I. THE TRUST; DEFINITIONS

  	
   

  	
  4

  
	
  1.1. Name

  	
   

  	
  4

  
	
  1.2. Places of Business

  	
   

  	
  4

  
	
  1.3. Nature of Trust

  	
   

  	
  4

  
	
  1.4. Definitions

  	
   

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE II. TRUSTEES

  	
   

  	
  8

  
	
  2.1. Number, Term of Office and Qualifications of Trustees

  	
   

  	
  8

  
	
  2.2. Compensation and Other Remuneration

  	
   

  	
  9

  
	
  2.3. Resignation, Removal and Death of Trustees

  	
   

  	
  9

  
	
  2.4. Vacancies

  	
   

  	
  10

  
	
  2.5. Successor and Additional Trustees

  	
   

  	
  10

  
	
  2.6. Actions by Trustees

  	
   

  	
  10

  
	
  2.7. Certification of Changes in Trustees

  	
   

  	
  11

  
	
  2.8. Committees

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE III. TRUSTEES’ POWERS

  	
   

  	
  11

  
	
  3.1. Power and Authority of Trustees

  	
   

  	
  11

  
	
  3.2. Specific Powers and Authority

  	
   

  	
  12

  
	
  3.3. Bylaws

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV. ADVISOR

  	
   

  	
  16

  
	
  4.1. Employment of Advisor

  	
   

  	
  16

  
	
  4.2. Term

  	
   

  	
  16

  
	
  4.3. Other Activities of Advisor

  	
   

  	
  16

  
	
  4.4. Advisor Compensation

  	
   

  	
  17

  
	
  4.5. Annual Total Operating Expenses

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE V. INVESTMENT POLICY AND
  POLICIES WITH RESPECT TO CERTAIN DISTRIBUTIONS TO SHAREHOLDERS

  	
   

  	
  18

  
	
  5.1. Statement of Policy

  	
   

  	
  18

  
	
  5.2. Prohibited Investments and Activities

  	
   

  	
  19

  
	
  5.3. Appraisals

  	
   

  	
  20

  
	
  5.4. Change in Investment Policies

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI. THE SHARES AND
  SHAREHOLDERS

  	
   

  	
  21

  
	
  6.1. Description of Shares

  	
   

  	
  21

  
	
  6.2. Certificates

  	
   

  	
  22

  
	
  6.3. Fractional Shares

  	
   

  	
  23

  
	
  6.4. Legal Ownership of Trust Estate

  	
   

  	
  23

  
	
  6.5. Shares Deemed Personal Property

  	
   

  	
  23

  
	
  6.6. Share Record; Issuance and Transferability of Shares

  	
   

  	
  23

  
	
  6.7. Dividends or Distributions to Shareholders

  	
   

  	
  24

  
	
  6.8. Transfer Agent, Dividend Disbursing Agent and Registrar

  	
   

  	
  24

  
	
  6.9. Shareholders’ Meetings

  	
   

  	
  24

  
	
  6.10. Proxies

  	
   

  	
  25

  
	
  6.11. [Reserved.]

  	
   

  	
  25

  

 

i

 

	
  6.12. Fixing Record Date

  	
   

  	
  25

  
	
  6.13. Notice to Shareholders

  	
   

  	
  25

  
	
  6.14.
  Shareholders’ Disclosure: Trustees’ Right to Refuse to Transfer Shares;
  Limitation on Holdings; Redemption of Shares

  	
   

  	
  26

  
	
  6.15. Special Voting Requirements for Certain Business Combinations

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII. LIABILITY OF TRUSTEES,
  SHAREHOLDERS, OFFICERS, EMPLOYEES AND AGENTS, AND OTHER MATTERS

  	
   

  	
  29

  
	
  7.1.
  Limitation of Liability of Shareholders, Trustees, Officers, Employees and
  Agents for Obligations of the Trust

  	
   

  	
  29

  
	
  7.2. Express Exculpatory Clauses and Instruments

  	
   

  	
  29

  
	
  7.3.
  Limitation of Liability of Trustees Officers Employees and Agents to the
  Trust and to Shareholders for Acts and Omissions

  	
   

  	
  30

  
	
  7.4. Indemnification and Reimbursement of Trustees, Officers, Employees
  and Agents

  	
   

  	
  30

  
	
  7.5. Certain Definitions

  	
   

  	
  31

  
	
  7.6. Indemnification and Reimbursement of Shareholders

  	
   

  	
  32

  
	
  7.7.
  Right of Trustees, Officers, Employees and Agents to Own Shares or Other Property
  and to Engage in Other Business

  	
   

  	
  32

  
	
  7.8. Transactions Between Trustees, Officers, Employees or Agents and
  the Trust

  	
   

  	
  32

  
	
  7.9. Independent Counsel

  	
   

  	
  34

  
	
  7.10. Persons Dealing with Trustees, Officers, Employees or Agents

  	
   

  	
  34

  
	
  7.11. Reliance

  	
   

  	
  34

  
	
  7.12. Indemnification of the Trust

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII. DURATION, AMENDMENT
  AND TERMINATION OF TRUST

  	
   

  	
  35

  
	
  8.1. Duration of Trust

  	
   

  	
  35

  
	
  8.2. Termination of Trust

  	
   

  	
  35

  
	
  8.3. Amendment Procedure

  	
   

  	
  35

  
	
  8.4. Amendments Effective

  	
   

  	
  36

  
	
  8.5. Transfer to Successor

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX. MISCELLANEOUS

  	
   

  	
  36

  
	
  9.1. Applicable Law

  	
   

  	
  36

  
	
  9.2. Index and Headings for Reference Only

  	
   

  	
  36

  
	
  9.3. Successors in Interest

  	
   

  	
  36

  
	
  9.4. Inspection of Records

  	
   

  	
  36

  
	
  9.5. Counterparts

  	
   

  	
  37

  
	
  9.6. Provisions of the Trust in Conflict with Law or Regulations:
  Severability

  	
   

  	
  37

  
	
  9.7. Certifications

  	
   

  	
  37

  

 

ii

 

THIRD AMENDMENT AND RESTATEMENT OF DECLARATION OF TRUST OF HRPT
PROPERTIES TRUST

 

(formerly known as Health and Retirement Properties Trust)

 

Dated October 9, 1986

As Amended and Restated on July 1, 1994

and as Amended July 9, 1996

and Amended March 3, 1997

and Amended May 26, 1998

and Amended July 1, 1998

and Amended June 16, 2003

and Amended January 2, 2004

and Amended March 16, 2005

and Amended September 12, 2005

and Amended May 24, 2006

and Amended on December 29, 2006

and Amended May 15, 2007

and Amended October 16, 2007

and Amended May 14, 2009

 

The Declaration of
Health and Rehabilitation Properties Trust (the “Trust”), as filed with the
Maryland Department of Assessments and Taxation on October 9, 1986 and as
amended on September 27, 1987, July 23, 1992, and July 30, 1993
(the “Declaration”), is hereby amended and restated as follows:

 

DECLARATION OF
TRUST made as of the date set forth above by the undersigned Trustees.

 

WITNESSETH:

 

WHEREAS, the
Trustees desire to create a trust for the principal purpose of investing in
real property and interests therein; and

 

WHEREAS, the
Trustees desire that such trust qualify as a “real estate investment trust”
under the REIT Provisions of the Internal Revenue Code, and under Title 8 of
the Corporations and Associations Article of the Annotated Code of
Maryland; and

 

WHEREAS, in
furtherance of such purpose the Trustees intend to acquire certain real
property and interests therein and to hold, manage and dispose of all such
property as Trustees in the manner hereinafter stated; and

 

WHEREAS, it is
proposed that the beneficial interest in the Trust be divided into transferable
Shares of Beneficial Interest, evidenced by certificates therefore, as
hereinafter provided;

 

NOW, THEREFORE, it
is hereby agreed and declared that the Trustees will hold any and all property
of every type and description which they are acquiring or may hereafter acquire
as 

 

3

 

Trustees,
together with the proceeds thereof, in trust, to manage and dispose of the same
for the benefit of the holders from time to time of the Shares of Beneficial
Interest being issued and to be issued hereunder in the manner and subject to
the stipulations contained herein.

 

ARTICLE I.

 

THE TRUST; DEFINITIONS

 

1.1.                              Name.  The name of
the Trust created by this Declaration of Trust shall be “HRPT Properties Trust”
and so far as may be practicable the Trustees shall conduct the Trust’s
activities, execute all documents and sue or be sued under that name, which
name (and the word “Trust” wherever used in this Declaration of Trust, except
where the context otherwise requires) shall refer to the Trustees collectively
but not individually or personally nor to the officers, agents, employees or
Shareholders of the Trust or of such Trustees. 
The Trustees may, at any time, without any action by the Shareholders,
amend the Declaration of Trust to change the name of the Trust.

 

1.2.                              Places of Business. 
The Trust shall maintain an office in Maryland at CT Corporation or such
other place in Maryland as the Trustees may determine from time to time. The
Resident Agent of the Trust at such office shall be The Corporation Trust
Incorporated, 32 South Street, Baltimore, Maryland, 21202. The Trust may change
such Resident Agent from time to time as the Trustees shall determine. The
Trust may have such other offices or places of business within or without the
State of Maryland as the Trustees may from time to time determine.

 

1.3.                              Nature of Trust. 
The Trust shall be a real estate investment trust within the meaning of
Title 8 of the Corporations and Associations Article of the Annotated Code
of Maryland. It is also intended that the Trust shall carry on a business as a “real
estate investment trust” as described in the REIT Provisions of the Internal
Revenue Code. The Trust is not intended to be, shall not be deemed to be, and
shall not be treated as a general partnership, limited partnership, joint
venture, corporation or joint stock company (but nothing herein shall preclude
the Trust from being treated for tax purposes as an association under the
Internal Revenue Code) nor shall the Trustees or Shareholders or any of them
for any purpose be, nor be deemed to be, nor be treated in any way whatsoever
to be, liable or responsible hereunder as partners or joint venturers. The
relationship of the Shareholders to the Trustees shall be solely that of
beneficiaries of the Trust in accordance with the rights conferred upon them by
this Declaration.

 

1.4.                              Definitions. 
The terms defined in this Section 1.4., wherever used in this
Declaration, shall, unless the context otherwise requires, have the respective
meanings hereinafter specified. Whenever the singular number is used in this
Declaration and when permitted by the context, the same shall include the
plural, and the masculine gender shall include the feminine and neuter genders,
and vice versa. Where applicable, calculations to be made pursuant to any such
definition shall be made in accordance with generally accepted accounting
principles as in effect from time to time except as otherwise provided in such
definition.

 

4

 

(a)                                  Advisor.  “Advisor”
shall mean the Person employed by the Trustees in accordance with the
provisions of Article IV.

 

(b)                                 Affiliate.  “Affiliate”
shall mean, as to any Person, (i) any other Person directly or indirectly
controlling, controlled by or under common control with such Person, (ii) any
other Person that owns beneficially, directly or indirectly, five percent (5%)
or more of the outstanding capital stock, shares or equity interests of such
Person, or (iii) any officer, director, employee, general partner or
trustee of such Person or of any Person controlling, controlled by or under
common control with such Person (excluding trustees who are not otherwise an
Affiliate of such Person).

 

(c)                                  Affiliated Trustee.  “Affiliated
Trustee” shall mean a Trustee who is not an Independent Trustee.

 

(d)                                 Annual Meeting of Shareholders.  “Annual
Meeting of Shareholders” shall mean the meeting described in the first sentence
of Section 6.9.

 

(e)                                  Annual Report.  “Annual
Report” shall have the meaning set forth in Section 6.11(a).

 

(f)                                    Average Invested Real Estate Assets.  “Average
Invested Real Estate Assets” for any period shall mean the average of the
aggregate book value of the consolidated assets of the Company invested,
directly or indirectly, in equity interests in, and loans secured by, real
estate and personal property associated with such real estate, before reserves
for depreciation or bad debt or other similar non-cash reserves, calculated by
taking the average of such values at the end of each month during such period.

 

(g)                                 Book Value. “Book Value” of an asset or assets shall
mean the value of such asset or assets of the Trust on the books of the Trust,
without deduction for depreciation or other asset valuation reserves and
without deduction for mortgages or other security interests to which such asset
or assets are subject, except that no asset shall be valued at more than its
fair market value as determined by or under procedures adopted by the Trustees,
and the underlying assets of a partnership, joint venture or other form of
indirect ownership, to the extent of the Trust’s interest therein, shall be
valued as if owned directly by the Trust.

 

(h)                                 Bylaws.  “Bylaws” shall
have the meaning set forth in Section 3.3.

 

(i)                                     Declaration.  “Declaration”
or “this Declaration” shall mean this Declaration of Trust, as amended,
restated or modified from time to time. References in this Declaration to “herein”
and “hereunder” shall be deemed to refer to this Declaration and shall not be
limited to the particular text, article or section in which such words appear.

 

(j)                                     [Intentionally left blank].

 

(k)                                  Independent Trustee.  “Independent
Trustee” shall mean a Trustee who, in his individual capacity, (i) is
neither an Affiliate of, nor has any material business or professional
relationship with, the Advisor or any other Person whom the Trustees may
pursuant to Section 6.14(c) hereof permit to purchase in excess of
9.8% of the Trust’s Shares (provided, however, 

 

5

 

that any Trustee
affiliated with an underwriter shall not cease to be an Independent Trustee
solely on the basis of such underwriter’s purchase of Shares in connection with
any public offering of the Trust’s Shares), and (ii) does not perform any
services for the Trust except as Trustee.

 

(l)                                     Internal Revenue Code.  “Internal
Revenue Code” shall mean the Internal Revenue Code of 1954, as now enacted or
hereafter amended, or successor statutes and applicable rules and
regulations thereunder.

 

(m)      Invested Assets.  “Invested
Assets” shall mean the Book Value of all the Real Estate Investments of the

 

(n)                                 Mortgage Loans.  “Mortgage
Loans” shall mean notes, debentures, bonds and other evidences of indebtedness
or obligations, whether negotiable or non-negotiable, and which are secured or
collateralized by Mortgages.

 

(o)                                 Mortgages.  “Mortgages” shall mean mortgages, deeds of trust or
other security interests in Real Property.

 

(p)                                 Net Assets.  “Net
Assets” shall mean the total assets (other than intangibles) at cost before
deducting depreciation or other non-cash reserves less total liabilities,
calculated at least quarterly on a basis consistently applied.

 

(q)                                 Net Income.  “Net
Income” for any period shall be calculated on the basis of the Trust’s audited
financial statements and shall mean total revenues applicable to such period,
less the expenses applicable to such period, other than additions to reserves
for depreciation or bad debts or other similar non-cash reserves.

 

(r)                                    Person.  “Person” shall
mean and include individuals, corporations, limited partnerships, general
partnerships, joint stock companies or associations, joint ventures,
associations, companies, trusts, banks, trust companies, land trusts, business
trusts and other entities and governments and agencies and political
subdivisions thereof.

 

(s)                                  Real Estate Investment.  “Real
Estate Investment” shall mean any direct or indirect investment in any interest
in Real Property or in any Mortgage Loan, or in any Person whose principal
purpose is to make any such investment.

 

(t)                                    Real Property.  “Real
Property” shall mean and include land leasehold interests (including but not
limited to interests of a lessor or lessee therein), rights and interests in
land, and in any buildings, structures, improvements, furnishings and fixtures
located on or used in connection with land or interests therein, but does not
include investments in Mortgages, Mortgage Loans or interests therein.

 

(u)                                 REIT.  “REIT” shall
mean a real estate investment trust as defined in the REIT Provisions of the
Internal Revenue Code.

 

6

 

(v)                                 REIT Provisions of the Internal Revenue
Code.  “REIT Provisions of the Internal Revenue Code”
shall mean Parts II and III of Subchapter M of Chapter 1 of Subtitle A of the
Internal Revenue Code or any successor provision.

 

(w)                               Securities.  “Securities”
shall mean any stock, shares, voting trust certificates, bonds, debentures,
notes or other evidences of indebtedness or in general any instruments commonly
known as “securities” or any certificates of interest, shares or participations
in, temporary or interim certificates for, receipts for, guarantees of, or
warrants, options or rights to subscribe to, purchase or acquire any of the
foregoing.

 

(x)                                   Shareholders.  “Shareholders”
shall mean as of any particular time all holders of record of outstanding
Shares at such time.

 

(y)                                 Shares.  “Shares” or,
as the context may require, “shares” shall mean the shares of beneficial
interest of the Trust as described in Section 6.1 hereof.

 

(z)                                   Total Assets.  “Total
Assets” shall mean the Book Value of all the assets of the Trust, as such Book
Value appears on the most recent quarterly balance sheet of the Trust.

 

(aa)                            Total Operating Expenses.  “Total
Operating Expenses” shall be calculated on the basis of the Trust’s annual
audited financial statements and shall mean the aggregate annual expenses
regarded as ordinary operating expenses (including any compensation payable to
the Advisor), exclusive of the following:

 

(i)                                     interest payments and any other cost of
borrowed money;

 

(ii)                                  taxes on income and taxes and assessments
on real property, if any, and all other taxes applicable to the Trust;

 

(iii)                               legal, auditing, accounting,
underwriting, brokerage, listing, reporting, registration and other fees, and
printing, engraving and other expenses and taxes incurred in connection with
the issuance, distribution, transfer, trading, registration and stock exchange
listing of the Trust’s securities, including transfer agent’s, registrar’s and
indenture trustee’s fees and charges;

 

(A)                              expenses of organizing, restructuring,
reorganizing or terminating the Trust, or of revising, amending, converting or
modifying the Trust’s organizational documents;

 

(B)                                Expenses directly connected with the
acquisition, disposition and ownership of real estate interests or other
property (including the costs of foreclosure, insurance premiums, legal
services, brokerage and sales commissions, maintenance, repair, improvement and
local management of property), other than expenses with respect thereto of
employees of the Advisor, to the extent that such expenses are to be borne by
the Advisor pursuant to the terms of the advisory contract;

 

(iv)                              non-cash provisions for depreciation,
depletion and amortization;

 

7

 

(v)                                 losses on the disposition of assets and
provisions for such losses; and

 

(vi)                              other extraordinary charges including,
without limitation, litigation costs.

 

(bb)                          Trust.  “Trust” shall
mean the Trust created by this Declaration.

 

(cc)                            Trustees.  “Trustees”
shall mean, as of any particular time, the original signatories hereto as long
as they hold office hereunder and additional and successor Trustees, and shall
not include the officers, employees or agents of the Trust or the Shareholders.
Nothing herein shall be deemed to preclude the Trustees from also serving as
officers, employees or agents of the Trust or owning Shares.

 

(dd)                          Trust Estate.  “Trust
Estate” shall mean as of any particular time any and all property, real,
personal or otherwise, tangible or intangible, which is transferred, conveyed
or paid to or purchased by the Trust or Trustees and all rents, income, profits
and gains therefrom and which at such time is owned or held by or for the Trust
or the Trustees.

 

ARTICLE II.

 

TRUSTEES

 

2.1.                              Number, Term of Office and Qualifications
of Trustees.  There shall be no fewer than three (3) nor
more than twelve (12) Trustees. The exact number of Trustees shall be five (5) until
changed by a two-thirds (2/3) vote of the Trustees or by an amendment of this
Declaration duly adopted by the Shareholders. The Board of Trustees shall be
classified into three groups, with two (2) Trustees in Group I, two (2) Trustees
in Group II, and one (1) Trustee in Group III. Each Trustee in Group I
shall serve for a term ending at the annual meeting of Shareholders in 1996;
each Trustee in Group II shall serve for a term ending at the annual meeting of
Shareholders in 1997; and the Trustee in Group III shall serve for a term
ending at the annual meeting of Shareholders in 1995. After the respective
terms of the groups indicated, each such group of Trustees shall be elected for
successive terms ending at the annual meeting of Shareholders held during the
third year after election.

 

The names and
business addresses of the current Trustees who will serve as Trustees until the
expiration of their respective terms and until their successors are elected and
qualify are as follows:

 

	
   

  	
   

  	
  Name

  	
   

  	
  Address

  
	
  Group I:

  	
   

  	
  Barry M. Portnoy

  	
   

  	
  Sullivan & Worcester

  
	
   

  	
   

  	
   

  	
   

  	
  One Post Office Square

  
	
   

  	
   

  	
   

  	
   

  	
  Boston, MA 02109

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  John L. Harrington

  	
   

  	
  990 Washington Street

  
	
   

  	
   

  	
   

  	
   

  	
  Suite 315

  
	
   

  	
   

  	
   

  	
   

  	
  Dedham, MA 02026

  

 

8

 

	
  Group II:

  	
   

  	
  Rev. Justinian

  	
   

  	
  St. Gabriel’s Parish

  
	
   

  	
   

  	
   

  	
   

  	
  Manning, C.P. Rectory

  
	
   

  	
   

  	
   

  	
   

  	
  139 Washington Street

  
	
   

  	
   

  	
   

  	
   

  	
  Brighton, MA 02135

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Gerard M. Martin

  	
   

  	
  M & P Partners Limited

  
	
   

  	
   

  	
   

  	
   

  	
  Partnership

  
	
   

  	
   

  	
   

  	
   

  	
  400 Centre Street

  
	
   

  	
   

  	
   

  	
   

  	
  Newton, MA 02158

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Group III:

  	
   

  	
  Arthur G. Koumantzelis

  	
   

  	
  Cumberland Farms, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  777 Dedham Street

  
	
   

  	
   

  	
   

  	
   

  	
  Canton, MA 02021-9118

  

 

The current
Trustees shall be the signatories hereto. No reduction in the number of
Trustees shall have the effect of removing any Trustee from office prior to the
expiration of term. Subject to the provisions of Section 2.3, each Trustee
shall hold office until the election and qualification of his successor. There
shall be no cumulative voting in the election of Trustees. A Trustee shall be
an individual at least twenty-one (21) years of age who is not under legal
disability. A majority of the Trustees shall at all times be persons who are
Independent Trustees; provided, however, that upon a failure to comply with
this requirement because of the resignation, removal or death of a Trustee who
is an Independent Trustee, such requirement shall not be applicable for a
period of ninety (90) days. Nominees to serve as Independent Trustees shall be
nominated by the then current Independent Trustees, if any. Unless otherwise
required by law, no Trustee shall be required to give bond, surety or security
in any jurisdiction for the performance of any duties or obligations hereunder.
The Trustees in their capacity as Trustees shall not be required to devote
their entire time to the business and affairs of the Trust.

 

2.2.                              Compensation and Other Remuneration. 
The Trustees shall be entitled to receive such reasonable compensation
for their services as Trustees as the Trustees may determine from time to time.
The Trustees and Trust officers shall be entitled to receive remuneration for
services rendered to the Trust in any other capacity. Subject to Sections 7.7
and 7.8, such services may include, without limitation, services as an officer
of the Trust, legal, accounting or other professional services, or services as
a broker, transfer agent or underwriter, whether performed by a Trustee or any
person affiliated with a Trustee.

 

2.3.                              Resignation, Removal and Death of
Trustees.  A Trustee may resign at any time by giving
written notice to the remaining Trustees at the principal office of the Trust.
Such resignation shall take effect on the date specified in such notice,
without need for prior accounting. A Trustee may be removed at any time with or
without cause by vote or consent of holders of Shares representing two-thirds
of the total votes authorized to be cast by Shares then outstanding and
entitled to vote thereon, or with cause by all remaining Trustees. A Trustee
judged incompetent or bankrupt, or for whom a guardian or conservator has been
appointed, shall be deemed to have resigned as of the date of such adjudication
or appointment. Upon the resignation or removal of any Trustee, or his
otherwise ceasing to be a Trustee, he shall execute and deliver such documents
as the remaining Trustees shall require for the conveyance of any

 

9

 

Trust property
held in his name, shall account to the remaining Trustees as they require for
all property which he holds as Trustee and shall thereupon be discharged as
Trustee. Upon the incapacity or death of any Trustee, his legal representative
shall perform the acts set forth in the preceding sentence and the discharge
mentioned therein shall run to such legal representative and to the
incapacitated Trustee or the estate of the deceased Trustee, as the case may
be.

 

2.4.                              Vacancies.  If any or all the Trustees cease to be
Trustees hereunder, whether by reason of resignation, removal, incapacity,
death or otherwise, such event shall not terminate the Trust or affect its
continuity. Until vacancies are filled, the remaining Trustee or Trustees (even
though fewer than three (3)) may exercise the powers of the Trustees hereunder.
Vacancies (including vacancies created by increases in number) may be filled by
the remaining Trustee or by a majority of the remaining Trustees (or a majority
of the remaining Independent Trustees, if any, if the vacant position was
formerly held by an Independent Trustee or is required to be held by an
Independent Trustee) or by vote of holders of Shares representing a majority of
the total number of votes authorized to be cast by Shares then outstanding and
entitled to vote thereon. If at any time there shall be no Trustees in office,
successor Trustees shall be elected by the Shareholders as provided in Section 6.9.
Any Trustee elected to fill a vacancy created by the resignation, removal or
death of a former Trustee shall hold office for the unexpired term of such
former Trustee.

 

2.5.                              Successor
and Additional Trustees.  The right,
title and interest of the Trustees in and to the Trust Estate shall also vest
in successor and additional Trustees upon their qualification, and they shall
thereupon have all the rights and obligations of Trustees hereunder. Such
right, title and interest shall vest in the Trustees whether or not
conveyancing documents have been executed and delivered pursuant to Section 2.3
or otherwise. Appropriate written evidence of the election and qualification of
successor and additional Trustees shall be filed with the records of the Trust
and in such other offices or places as the Trustees may deem necessary, appropriate
or desirable.

 

2.6.                              Actions
by Trustees.  The Trustees may act
with or without a meeting. A quorum for all meetings of the Trustees shall be a
majority of the Trustees; provided, however, that, whenever pursuant to Section 7.8
or otherwise the vote of a majority of a particular group of Trustees is
required at a meeting, a quorum for such meeting shall be a majority of the
Trustees which shall include a majority of such group. Unless specifically
provided otherwise in this Declaration, any action of the Trustees may be taken
at a meeting by vote of a majority of the Trustees present (a quorum being
present) or without a meeting by written consents of a majority of the
Trustees, which consents shall be filed with the records of meetings of the
Trustees. Any action or actions permitted to be taken by the Trustees in
connection with the business of the Trust may be taken pursuant to authority
granted by a meeting of the Trustees conducted by a telephone conference call,
and the transaction of Trust business represented thereby shall be of the same
authority and validity as if transacted at a meeting of the Trustees held in
person or by written consent. The minutes of any Trustees’ meeting held by
telephone shall be prepared in the same manner as a meeting of the Trustees
held in person. The acquisition or disposition of any investment (other than
investments in short-term investment Securities described in Section 5.1)
shall require the approval of a majority of Trustees, except as otherwise
provided in Section 7.8. Any agreement, deed, mortgage, lease or other
instrument or writing executed by one or more of 

 

10

 

the Trustees or by
any authorized Person shall be valid and binding upon the Trustees and upon the
Trust when authorized or ratified by action of the Trustees or as provided in
the Bylaws.

 

With
respect to the actions of the Trustees, Trustees who have, or are Affiliates of
Persons who have, any direct or indirect interest in or connection with any
matter being acted upon may be counted for all quorum purposes under this Section 2.6
and, subject to the provisions of Section 7.8, may vote on the matter as
to which they or their Affiliates have such interest or connection.

 

2.7.                              Certification
of Changes in Trustees.  No
alteration in the number of Trustees, no removal of a Trustee and no election
or appointment of any individual as Trustee (other than an individual who was
serving as a Trustee immediately prior to such election or appointment) shall become
effective unless and until there shall be delivered to the secretary of the
Trust an instrument in writing signed by a majority of the Trustees, certifying
to such alteration in the number of Trustees and/or to such removal of a
Trustee and/or naming the individual so elected or appointed as Trustee,
together with his written acceptance thereof and agreement to be bound thereby.

 

2.8.                              Committees.  The Trustees may appoint an audit committee
and such other standing committees as the Trustees determine. Each standing
committee shall consist of three or more members, provided, however, that the
Trustees may appoint a standing committee consisting of at least one Trustee
and two non- Trustees. Notwithstanding the foregoing, however, all members of
the audit committee shall be Independent Trustees. A majority of the members of
each other standing committee comprised solely of Trustees shall be Independent
Trustees; provided, however, that upon a failure to comply with this
requirement because of the resignation, removal or death of a Trustee who is an
Independent Trustee, such requirement shall not be applicable for a period of
ninety (90) days. Each committee shall have such powers, duties and obligations
as the Trustees may deem necessary or appropriate. The standing committees
shall report their activities periodically to the Trustees.

 

ARTICLE III.

 

TRUSTEES’ POWERS

 

3.1.                              Power
and Authority of Trustees.  The
Trustees, subject only to the specific limitations contained in this
Declaration, shall have, without further or other authorization, and free from
any power or control on the part of the Shareholders, full, absolute and
exclusive power, control and authority over the Trust Estate and over the
business and affairs of the Trust to the same extent as if the Trustees were
the sole owners thereof in their own right, and may do all such acts and things
as in their sole judgment and discretion are necessary for or incidental to or
desirable for the carrying out of or conducting the business of the Trust. Any
construction of this Declaration or any determination made in good faith by the
Trustees as to the purposes of the Trust or the existence of any power or
authority hereunder shall be conclusive. In construing the provisions of this
Declaration, the presumption shall be in favor of the grant of powers and
authority to the Trustees. The enumeration of any specific power or authority
herein shall not be construed as limiting the aforesaid powers or the general
powers or authority or any other specified power or authority conferred herein
upon the Trustees.

 

11

 

3.2.                              Specific
Powers and Authority.  Subject only
to the express limitations contained in this Declaration and in addition to any
powers and authority conferred by this Declaration or which the Trustees may
have by virtue of any present or future statute or rule or law, the
Trustees without any action or consent by the Shareholders shall have and may
exercise at any time and from time to time the following powers and authorities
which may or may not be exercised by them in their sole judgment and discretion
and in such manner and upon such terms and conditions as they may from time to
time deem proper:

 

(a)                                  to
retain, invest and reinvest the capital or other funds of the Trust in, and to
acquire, purchase, or own, real or personal property of any kind, whether
tangible or intangible, wherever located in the world, and make commitments for
such investments, all without regard to whether any such property is authorized
by law for the investment of trust funds or produces or may produce income; to
possess and exercise all the rights, powers and privileges appertaining to the
ownership of the Trust Estate; and to increase the capital of the Trust at any
time by the issuance of any additional authorized Shares (subject to Section 5.2(e))
or other Securities of the Trust for such consideration as they deem advisable;

 

(b)                                 without
limitation of the powers set forth in paragraph (a) above, to invest in,
purchase or otherwise acquire for such consideration as they deem proper, in
cash or other property or through the issuance of shares or through the
issuance of notes, debentures, bonds or other obligations of the Trust, and to
hold for investment, the entire or any participating interests in any Mortgage
Loans or interest in Real Property, including ownership of, or participations
in the ownership of, or rights to acquire, equity interests in Real Property or
in Persons owning, developing, improving, operating or managing Real Property,
which interests may be acquired independently of or in connection with other
investment activities of the Trust and, in the latter case, may include rights
to receive additional payments based on gross income or rental or other income
from the Real Property or improvements thereon; to invest in loans secured by
the pledge or transfer of Mortgage Loans;

 

(c)                                  to
sell, rent, lease, hire, exchange, release, partition, assign, mortgage,
pledge, hypothecate, grant security interests in, encumber, negotiate, convey,
transfer or otherwise dispose of any and all the Trust Estate by deeds
(including deeds in lieu of foreclosure), trust deeds, assignments, bills of
sale, transfers, leases, mortgages, financing statements, security agreements
and other instruments for any of such purposes executed and delivered for and
on behalf of the Trust or the Trustees by one or more of the Trustees or by a
duly authorized officer, employee, agent or nominee of the Trust, provided that
no disposition of a Real Estate Investment shall be accomplished without the
approval of a majority of the Trustees;

 

(d)                                 to
issue Shares, bonds, debentures, notes or other evidences of indebtedness,
which may be secured or unsecured and may be subordinated to any indebtedness
of the Trust, to such Persons for such cash, property or other consideration
(including Securities issued or created by, or interests in, any Person) at
such time or times and on such terms as the Trustees may deem advisable and to
list any of the foregoing Securities issued by the Trust on any securities
exchange and to purchase or otherwise acquire, hold, cancel, reissue, sell and
transfer any of such Securities, and to cause the instruments evidencing such
Securities to bear an actual or facsimile imprint of the seal of the Trust (if
the Trustees shall have adopted such a seal) and to be signed by manual or
facsimile signature or signatures (and to issue such Securities, whether or 

 

12

 

not any Person
whose manual or facsimile signature shall be imprinted thereon shall have
ceased to occupy the office with respect to which such signature was
authorized), provided that, where only facsimile signatures for the Trust are
used, the instrument shall be countersigned manually by a transfer agent,
registrar or other authentication agent; and to issue any of such Securities of
different types in combinations or units with such restrictions on the separate
transferability thereof as the Trustees shall determine;

 

(e)                                  to
enter into leases of real and personal property as lessor or lessee and to
enter into contracts, obligations and other agreements for a term, and to
invest in obligations having a term, extending beyond the term of office of the
Trustees and beyond the possible termination of the Trust, or having a lesser
term;

 

(f)                                    to
borrow money and give negotiable or non negotiable instruments therefor; or
guarantee, indemnify or act as surety with respect to payment or performance of
obligations of third parties; to enter into other obligations on behalf of the
Trust; and to assign, convey, transfer, mortgage, subordinate, pledge, grant
security interest in, encumber or hypothecate the Trust Estate to secure any
indebtedness of the Trust or any other of the foregoing obligations of the
Trust;

 

(g)                                 to
lend money, whether secured or unsecured;

 

(h)                                 to
create reserve funds for any purpose;

 

(i)                                     to
incur and pay out of the Trust Estate any charges or expenses, and to disburse
any funds of the Trust, which charges, expenses or disbursements are, in the
opinion of the Trustees, necessary or incidental to or desirable for the
carrying out of any of the purposes of the Trust or conducting the business of
the Trust, including without limitation taxes and other governmental levies, charges
and assessments, of whatever kind or nature, imposed upon or against the
Trustees in connection with the Trust or the Trust Estate or upon or against
the Trust Estate or any part hereof, and for any of the purposes herein;

 

(j)                                     to
deposit funds of the Trust in banks, trust companies, savings and loan
associations and other depositories, whether or not such deposits will draw
interest, the same to be subject to withdrawal on such terms and in such manner
and by such Person or Persons (including any one or more Trustees or officers,
employees or agents, of the Trust) as the Trustees may determine;

 

(k)                                  to
possess and exercise all the rights, powers and privileges pertaining to the
ownership of all or any Mortgages or Securities issued or created by, or interests
in, any Person, forming part of the Trust Estate, to the same extent that an
individual might do so, and, without limiting the generality of the foregoing,
to vote or give any consent, request or notice, or waive any notice, either in
person or by proxy or power of attorney, with or without power of substitution,
to one or more Persons, which proxies and powers of attorney may be for
meetings or action generally or for any particular meeting or action, and may
include the exercise of discretionary powers;

 

13

 

(l)                                     to
cause to be organized or assist in organizing any Person under the laws of any
jurisdiction to acquire the Trust Estate or any part or parts thereof or to
carry on any business in which the Trust shall directly or indirectly have any
interest, and to sell, rent, lease, hire, convey, negotiate, assign, exchange
or transfer the Trust Estate or any part or parts thereof to or with any such
Person or any existing Person in exchange for the Securities thereof or
otherwise, and to merge or consolidate the Trust with or into any Person or
merge or consolidate any Person into the Trust, and to lend money to, subscribe
for the Securities of, and enter into any contracts with, any Person in which
the Trust holds or is about to acquire Securities or any other interest;

 

(m)                               to
enter into joint ventures, general or limited partnerships, participation or
agency arrangements and any other lawful combinations or associations, and to
act as a general or limited partner provided, however, that the Trustees may
not enter into any such joint venture or other association as aforesaid unless
it has first received from counsel an opinion to the effect that such joint
venture or other association as aforesaid will be treated for tax purposes as a
partnership;

 

(n)                                 to
elect, appoint, engage or employ such officers for the Trust as the Trustees
may determine, who may be removed or discharged at the discretion of the
Trustees, such officers to have such powers and duties, and to serve such
terms, as may be prescribed by the Trustees or by the Bylaws; to engage or
employ any Persons (including, subject to the provisions of Sections 7.7 and
7.8, any Trustee or officer, agent or employee of the Trust and any Person in
which any Trustee, officer or agent is directly or indirectly interested or
with which he is directly or indirectly connected) as agents, representatives,
employees, or independent contractors (including without limitation real estate
advisors, investment advisors, transfer agents, registrars, underwriters,
accountants, attorneys at law, real estate agents, managers, appraisers,
brokers, architects, engineers, construction managers, general contractors or
otherwise) in one or more capacities, and to pay compensation from the Trust
for services in as many capacities as such Person may be so engaged or
employed; and to delegate any of the powers and duties of the Trustees to any
one or more Trustees, agents, representatives, officers, employees, independent
contractors or other Persons; provided, however, that no such delegation shall
be made to an Affiliate of the Advisor, except with the approval of a majority
of the Independent Trustees;

 

(o)                                 to
determine or cause to be determined from time to time the value of all or any
part of the Trust Estate and of any services, Securities, property or other
consideration to be furnished to or acquired by the Trust, and from time to
time to revalue or cause to be revalued all or any part of the Trust Estate in
accordance with such appraisals or other information as are, in the Trustees’
sole judgment, necessary and/or satisfactory;

 

(p)                                 to
collect, sue for and receive all sums of money coming due to the Trust, and to
engage in, intervene in, prosecute, join, defend, compromise, abandon or
adjust, by arbitration or otherwise, any actions, suits, proceedings, disputes,
claims, controversies, demands or other litigation relating to the Trust, the
Trust Estate or the Trust’s affairs, to enter into agreements therefor, whether
or not any suit is commenced or claim accrued or asserted and, in advance of
any controversy, to enter into agreements regarding arbitration, adjudication
or settlement thereof;

 

14

 

(q)                                 to
renew, modify, release, compromise, extend, consolidate or cancel, in whole or
in part, any obligation to or of the Trust or participate in any reorganization
of obligors to the Trust;

 

(r)                                    to
self-insure or to purchase and pay for out of the Trust Estate insurance
contracts and policies, including contracts of indemnity, insuring the Trust
Estate against any and all risks and insuring the Trust and/or all or any of
the Trustees, the Shareholders, or the officers, employees or agents of the
Trust against any and all claims and liabilities of every nature asserted by
any Person arising by reason of any action alleged to have been taken or
omitted by the Trust or by the Trustees, Shareholders, officers, employees or
agents, whether or not the Trust would have the power to indemnify such Person
or Persons against any such claim or liability;

 

(s)                                  to
cause legal title to any of the Trust Estate to be held by and/or in the name
of the Trustees, or, except as prohibited by law, by and/or in the name of the
Trust or one or more of the Trustees or any other Person, on such terms, in
such manner and with such powers in such Person as the Trustees may determine,
and with or without disclosure that the Trust or Trustees are interested
therein;

 

(t)                                    to
adopt a fiscal year for the Trust, and from time to time to change such fiscal
year;

 

(u)                                 to
adopt and use a seal (but the use of a seal shall not be required for the
execution of instruments or obligations of the Trust;

 

(v)                                 to
the extent permitted by law, to indemnify or enter into agreements with respect
to indemnification with any Person with which the Trust has dealings, including
without limitation any broker/dealer, investment bank, investment advisor or
independent contractor, to such extent as the Trustees shall determine;

 

(w)                               to
confess judgment against the Trust;

 

(x)                                   to
discontinue the operations of the Trust;

 

(y)                                 to
repurchase or redeem Shares and other Securities issued by the Trust;

 

(z)                                   to
declare and pay dividends or distributions, consisting of cash, property or
Securities, to the holders of Shares of the Trust out of any funds legally
available therefor; and

 

(aa)                            to do
all other such acts and things as are incident to the foregoing, and to
exercise all powers which are necessary or useful to carry on the business of
the Trust and to carry out the provisions of this Declaration.

 

3.3.                              Bylaws.  The Trustees may make or adopt and from time
to time amend or repeal Bylaws (the “Bylaws”) not inconsistent with law or with
this Declaration, containing provisions relating to the business of the Trust
and the conduct of its affairs and in such Bylaws may define the duties of the
officers, employees and agents of the Trust.

 

15

 

ARTICLE IV.

 

ADVISOR

 

4.1.                              Employment
of Advisor.  The Trustees are responsible
for the general policies of the Trust and for the general supervision of the
business of the Trust conducted by all officers, agents, employees, advisors,
managers or independent contractors of the Trust. However, the Trustees are not
and shall not be required personally to conduct the business of the Trust, and,
consistent with their ultimate responsibility as stated above, the Trustees
shall have the power to appoint, employ or contract with any Person (including
one or more of themselves or any corporation, partnership, or trust in which
one or more of them may be directors, officers, stockholders, partners or
trustees) as the Trustees may deem necessary or proper for the transaction of
the business of the Trust. The Trustees may therefore employ or contract with
such Person (herein referred to as the “Advisor”) and, consistent with their
ultimate responsibility as set forth in this Section 4.1, the Trustees may
grant or delegate such authority to the Advisor as the Trustees may in their
sole discretion deem necessary or desirable without regard to whether such
authority is normally granted or delegated by trustees. The Advisor shall be
required to use its best efforts to supervise the operation of the Trust in a
manner consistent with the investment policies and objectives of the Trust.
Subject to the provisions of Sections 4.2 and 7.8 hereof, the Trustees shall
have the power to determine the terms and compensation of the Advisor or any
other Person whom they may employ or with whom they may contract for advisory
services. The Trustees may exercise broad discretion in allowing the Advisor to
administer and regulate the operations of the Trust, to act as agent for the
Trust, to execute documents on behalf of the Trustees and to make executive decisions
which conform to general policies and general principles previously established
by the Trustees.

 

4.2.                              Term.  The Trustees shall not enter into any
advisory contract with the Advisor unless such contract has an initial term of
not more than one year, provides for annual renewal or extension thereafter,
provides for termination thereof by the Trustees without cause at any time upon
sixty (60) days’ written notice by the Trustees, by affirmative vote or written
consent of a majority of the Independent Trustees, and provides for termination
thereof by the Advisor without cause at any time after the expiration of a
period specified in such contract (which period shall not be shorter than the
original term) without penalty upon sixty (60) days’ written notice by the
Advisor. In the event of the termination of an advisory contract, the
terminated Advisor shall be required to cooperate with the Trust and take all
reasonable steps requested to assist the Trustees in making an orderly
transition of the advisory function. It shall be the duty of the Trustees
annually to evaluate the performance of the Advisor, and the Independent
Trustees have a fiduciary duty to the Shareholders to supervise the
relationship of the Trust with the Advisor.

 

4.3.                              Other
Activities of Advisor.  The Advisor
shall not be required to administer the Trust as its sole and exclusive
function and may have other business interests and may engage in other
activities similar or in addition to those relating to the Trust, including the
rendering of advice or services of any kind to other investors or any other
Persons (including other REITs) and the management of other investments. The
Trustees may request the Advisor to engage in certain other activities which
complement the Trust’s investments, and the Advisor may receive compensation or
commissions therefor from the Trust or other Persons.

 

16

 

Neither
the Advisor nor (subject to any applicable provisions of Section 7.7) any
Affiliate of the Advisor shall be obligated to present any particular
investment opportunities to the Trust, even if such opportunities are of a
character such that, if presented to the Trust, they could be taken by the
Trust, and, subject to the foregoing, each of them shall be protected in taking
for its own account or recommending to others any such particular investment
opportunity.

 

Notwithstanding
the foregoing, the Advisor shall be required to use its best efforts to present
the Trust with a continuing and suitable program consistent with the investment
policies and objectives of the Trust and with investments which are
representative of, comparable with and on similar terms as investments being
made by Affiliates of the Advisor, or by the Advisor for its own account or for
the account of any Person for whom the Advisor is providing advisory services.
In addition, the Advisor shall be required to, upon the request of any Trustee,
promptly furnish the Trustees with such information on a confidential basis as
to any investments within the investment policies of the Trust made by
Affiliates of the Advisor or by the Advisor for its own account or for the
account of any Person for whom the Advisor is providing advisory services.

 

4.4.                              Advisor
Compensation.  The Trustees, including
a majority of the Independent Trustees, shall at least annually review
generally the performance of the Advisor in order to determine whether the
compensation which the Trust has contracted to pay to the Advisor is reasonable
in relation to the nature and quality of services performed and whether the
provisions of the advisory contract with the Advisor are being carried out.
Each such determination shall be based on such of the following and other
factors as the Trustees (including the Independent Trustees) deem appropriate
and shall be reflected in the minutes of the meetings of the Trustees:

 

(a)                                  the
size of the advisory fee in relation to the size, composition and profitability
of the portfolio of the Trust;

 

(b)                                 the
success of the Advisor in generating opportunities that meet the investment
objectives of the Trust;

 

(c)                                  the
rates charged to other REITs and to investors other than REITs by advisors
performing similar services;

 

(d)                                 additional
revenues realized by the Advisor and its Affiliates through their relationship
with the Trust, including loan administration, underwriting or brokerage
commissions and servicing, engineering, inspection and other fees, whether paid
by the Trust or by others with whom the Trust does business;

 

(e)                                  the
quality and extent of service and advice furnished by the Advisor;

 

(f)                                    the
performance of the investment portfolio of the Trust, including income,
conservation or appreciation of capital, frequency of problem investments and
competence in dealing with distress situations; and

 

(g)                                 the
quality of the portfolio of the Trust in relationship to any investments
generated by the Advisor for its own account.

 

17

 

4.5.                              Annual
Total Operating Expenses. Each advisory contract with an Advisor shall
provide that the Total Operating Expenses of the Trust shall not exceed in any
fiscal year the lower of:

 

(a)                                  the
greater of (i) two percent (2%) of the Average Invested Real Estate Assets
for such fiscal year or (ii) twenty-five percent (25%) of the Net Income
for such fiscal year (calculated before the deduction therefrom of such Total
Operating Expenses); or

 

(b)                                 the
lowest of any applicable operating expense limitations that may be imposed by
law or regulation in a state in which any securities of the Trust are or will
be qualified for sale or by a national securities exchange on which any
securities of the Trust are or may be listed, as such limitations may be
altered from time to time.

 

The
Independent Trustees shall at least annually determine whether the total fees
and expenses of the Trust are reasonable in light of the investment experience
of the Trust, its Net Assets, its Net Income and the fees and expenses of
comparable REITs. Each such determination shall be reflected in the minutes of
meetings of the Trustees.

 

Within
sixty (60) days after the end of any fiscal quarter of the Trust ending on or
after December 31, 1987 for which Total Operating Expenses (for the twelve
months then ended) exceed either of the expense limitations provided in
subparagraph (a) of this Section 4.5, the Trust shall send to the
Shareholders a written disclosure of such fact, together with an explanation of
the factors, if any, which the Trustees (including a majority of the
Independent Trustees) have concluded were sufficiently unanticipated, unusual
or nonrecurring to justify such higher Total Operating Expenses.

 

Each
advisory contract with the Advisor shall provide that in the event that the
Total Operating Expenses exceed any of the limitations provided in this Section 4.5,
then the Advisor shall refund to the Trust the amount by which the aggregate
annual Total Operating Expenses paid or incurred by the Trust exceed the
limitations herein provided; provided, however, that with respect to the
limitations provided in subparagraph (a) of this Section 4.5, only so
much of such excess need be refunded as the Trustees, including a majority of
the Independent Trustees, shall have found to be unjustified as provided above.

 

ARTICLE V.

 

INVESTMENT POLICY
AND POLICIES WITH RESPECT TO CERTAIN DISTRIBUTIONS TO SHAREHOLDERS

 

5.1.                              Statement
of Policy.  It shall be the general
objectives of the Trust (i) to provide current income for distribution to
Shareholders through investments in income-producing rehabilitation, health
care and related facilities and other real estate investments, (ii) to
provide Shareholders with the opportunity for additional returns through
participation in any increases in the operating revenues of investment
properties, (iii) to provide Shareholders with the opportunity to realize
income from investments in income-producing properties to be financed by the
issuance of additional Shares or debt, (iv) to provide Shareholders with
the opportunity to realize capital growth resulting from appreciation, if any,
in the residual value of investment 

 

18

 

properties and (v) to
preserve and protect Shareholders’ capital. These general objectives shall be
pursued in a manner consistent with the investment policies specified in the
remainder of this Section 5.1.

 

While
the Trustees are authorized pursuant to Article III to invest the Trust
Estate in a wide variety of investments, it shall be the policy of the Trustees
to invest the initial portion of the Trust Estate primarily in income-producing
rehabilitation, health care and related facilities including, without
limitation, acute care and rehabilitation hospitals, skilled nursing and
intermediate care facilities, retirement centers, congregate living facilities,
medical office buildings, health care related hotels, outpatient rehabilitation
centers, community re-entry/re-training facilities and facilities housing other
health care and related products and services.

 

The
Trust may make secured borrowings to make permitted additional Real Estate
Investments and secured or unsecured borrowings for normal working capital
needs, including the repair and maintenance of properties in which it has
invested, tenant improvements and leasing commissions. The Trust may make such
borrowings from third parties or, subject to approval by a majority of the
Independent Trustees, from Affiliates of the Advisor. Interest and other
financing charges or fees to be paid on loans from such Affiliates will not
exceed the interest and other financing charges or fees which would be charged
by third party financing institutions on comparable loans for the same purpose
in the same geographic area.

 

To the
extent that the Trust Estate has assets not otherwise invested in accordance
with this Section 5.1, it shall be the policy of the Trustees to invest
such assets in (i) U.S. government Securities; (ii) Securities of
U.S. government agencies; (iii) bankers’ acceptances; (iv) bank
certificates of deposit; (v) interest-bearing deposits in commercial
banks; (vi) participations in pools of mortgages or bonds and notes (such
as Federal Home Loan Mortgage Corporation participation sale certificates,
Government National Mortgage Association modified pass-through certificates and
Federal National Mortgage Association bonds and notes; (vii) bank
repurchase agreements covering the Securities of the United States or agencies
or instrumentalities thereof; and (viii) other short-term investments
consistent with the Trust’s intention to qualify as a REIT under the Internal
Revenue Code.

 

It
shall be the policy of the Trustees to make investments in such manner as to
comply with the requirements of the Internal Revenue Code with respect to the
composition of the investments and the derivation of the income of a real
estate investment trust as defined in the REIT Provisions of the Internal
Revenue Code; provided, however, that no Trustee, officer, employee or agent of
the Trust shall be liable for any act or omission resulting in the loss of tax
benefits under the Internal Revenue Code, except for that arising from his own
willful misfeasance, bad faith, gross negligence or reckless disregard of duty.

 

5.2.                              Prohibited
Investments and Activities.  The
Trustees shall not engage in any of the following investment practices or
activities:

 

(a)                                  investing
in any junior mortgage loan unless by appraisal or other method the Independent
Trustees determine that (a) capital invested in any such loan is
adequately secured on the basis of the equity of the borrower in the property
underlying such investment and the ability of the borrower to repay the
mortgage loan or (b) such loan is a financing device entered

 

19

 

into by the Trust
to establish the priority of its capital investment over the capital invested
by others investing with the Trust in a real estate project;

 

(b)                                 investing
in commodities or commodity futures contracts (other than interest rate
futures, when used solely for hedging purposes);

 

(c)                                  investing
more than 1% of the Trust’s total assets in real estate contracts of sale
unless such contracts of sale are in recordable form and appropriately recorded
in the chain of title;

 

(d)                                 [reserved];

 

(e)                                  granting
warrants or options to purchase shares of beneficial interest of the Trust
unless such warrants or options (i) are issued at an exercise price
greater than or equal to the fair market value of the shares of beneficial
interest of the Trust on the date of the grant and for consideration (including
services) that in the judgment of a majority of the Independent Trustees has a
market value at least equal to the value of the warrant or option on the date
of grant, (ii) are exercisable within ten years from the date of grant and
(iii) when aggregated with all other outstanding options and warrants are
less than 10% of the value of the outstanding shares of beneficial interest of
the Trust on the date of grant; provided that the terms of warrants or options
that are issued ratably to all holders of shares of beneficial interest or as
part of a financing arrangement need not meet the above restrictions;

 

(f)                                    holding
equity investments in unimproved, non-income producing real property, except
such properties as are currently undergoing development or are presently
intended to be developed within one year, together with mortgage loans on such
property (other than first mortgage development loans), aggregating to more
than 10% of the Trust’s assets;

 

(g)                                 engaging
in trading (as compared with investment activities), or engaging in the
underwriting of or distributing as agent of the Securities issued by others;

 

(h)                                 making
secured and unsecured borrowings which in the aggregate exceed 300% of the Net
Assets of the Trust, unless approved by a majority of the Independent Trustees,
and disclosed to shareholders;

 

(i)                                     undertaking
any activity that would disqualify the Trust as a real estate investment trust
under the provisions of the Code as long as a real estate investment trust is
accorded substantially the same treatment or benefits under the United States
tax laws from time to time in effect as under Sections 856-860 of the Code at
the date of adoption of the Trust’s Declaration of Trust; and

 

(j)                                     using
or applying land for farming, agriculture, horticulture or similar purposes in
violation of Section 8-302(b) of the Corporations and Associations Article of
the Annotated Code of Maryland.

 

5.3.                              Appraisals.  If the Trustees shall at any time purchase
Real Property, or interests therein, the consideration paid therefor shall
generally be based upon the fair market value thereof as determined by an
appraisal by a person who is not an Affiliate of the Trust or the 

 

20

 

Advisor and who
is, in the sole judgment of the Trustees, properly qualified to make such a
determination.

 

5.4.                              Change
in Investment Policies.  The
investment policies set out in this Article V may be changed by a vote of
a majority of the Trustees, including a majority of the Independent Trustees.

 

ARTICLE VI.

 

THE SHARES AND
SHAREHOLDERS

 

6.1.                              Description
of Shares.  The interest of the Shareholders shall be divided into 400,000,000
shares of beneficial interest which shall be known collectively as “Shares,”
all of which shall be validly issued, fully paid and non-assessable by the
Trust upon receipt of full consideration for which they have been issued or
without additional consideration if issued by way of share dividend or share
split.  There shall be two classes of
Shares:  50,000,000 shares of one such
class shall be known as “Preferred Shares” and 350,000,000 shares of the other
such class shall be known as “Common Shares,” each such class having $0.01 par
value per share.  Each holder of
Shares shall as a result thereof be deemed to have agreed to and be bound by
the terms of this Declaration. The Shares may be issued for such consideration
as the Trustees shall deem advisable. The Trustees are hereby expressly
authorized at any time, and from time to time, to provide for issuance of
Shares upon such terms and conditions and pursuant to such agreements as the
Trustees may determine. The Trustees are hereby expressly authorized at any
time, and from time to time, without Shareholder approval, to amend this
Declaration to increase or decrease the aggregate number of Shares or the
number of Shares of any class that the Trust has authority to issue.

 

The
Trustees are hereby expressly authorized at any time, and from time to time,
without Shareholder approval, to set (or change if such class has previously
been established) the par value, preferences, conversion or other rights,
voting powers, restrictions, limitations as to dividends, qualifications, or
terms, or conditions of redemption, of the Preferred Shares, and such Preferred
Shares may further be divided by the Trustees into classes or series.

 

Except
as otherwise determined by the Trustees with respect to any class or series of
Preferred Shares, the holders of Shares shall be entitled to the rights and powers
hereinafter set forth in this Section 6.1: The holders of Shares shall be
entitled to receive, when and as declared from time to time by the Trustees out
of any funds legally available for the purpose, such dividends or distributions
as may be declared from time to time by the Trustees. In the event of the
termination of the Trust pursuant to Section 8.1 or otherwise, or upon the
distribution of its assets, the assets of the Trust available for payment and
distribution to Shareholders shall be distributed ratably among the holders of
Shares at the time outstanding in accordance with Section 8.2. All Shares
shall have equal non-cumulative voting rights at the rate of one vote per
Share, and equal dividend, distribution, liquidation and other rights, and
shall have no preference, conversion, exchange, sinking fund or redemption
rights. Absent a contrary written agreement of the Trust authorized by the
Trustees, and notwithstanding any other determination by the Trustees with
respect to any class or series of Preferred Shares, no holder of Shares or
Preferred Shares shall be entitled as a matter of right to subscribe for or
purchase any part of any 

 

21

 

new or additional issue of Shares of any class
whatsoever of the Trust, or of securities convertible into any shares of any
class whatsoever of the Trust, whether now or hereafter authorized and whether
issued for cash or other consideration or by way of dividend.

 

Notwithstanding
any other provision of this Declaration, the Board of Trustees may cause the
outstanding Common Shares to be reverse split in order to meet listing
requirements of the principal securities exchange on which the Common Shares
are listed for trading or for any other purpose the Board of Trustees by
unanimous vote determines to be in the best interest of the Trust. A reverse
split may be accomplished by any lawful means, including by redeeming Shares
pro rata or issuing new Shares in exchange for outstanding Shares in a manner
so that the par value of the Common Shares are adjusted pro rata; e.g., if two outstanding Common Shares are exchanged for one
new Common Share, then the par value of the new Shares shall be two times the
current par value.

 

6.2.                              Certificates.  At the election of the Trust, ownership of
Shares may be evidenced by certificates in such form as the Trustees shall from
time to time approve, specifying the number of Shares of the applicable class
held by such Shareholder.  Subject to
Sections 6.6 and 6.14(c) hereof, such certificates shall be treated as
negotiable and title thereto and to the Shares represented thereby shall be
transferred by delivery thereof to the same extent in all respects as a stock
certificate, and the Shares represented thereby, of a Maryland business
corporation.  Unless otherwise determined
by the Trustees, such certificates shall be signed by the Chairman, if any, and
the President and shall be countersigned by a transfer agent, and registered by
a registrar if any, and such signatures may be facsimile signatures in
accordance with Section 3.2(d) hereof.  There shall be filed with each transfer agent
a copy of the form of certificate so approved by the Trustees, certified by the
Chairman, President, or Secretary, and such form shall continue to be used
unless and until the Trustees approve some other form.

 

In furtherance of the
provisions of Sections 6.1 and 6.14(c) hereof, each certificate evidencing
Shares shall contain a legend imprinted thereon to substantially the following
effect or such other legend as the Trustees may from time to time adopt:

 

REFERENCE IS MADE TO THE
DECLARATION OF TRUST OF THE TRUST FOR A STATEMENT OF ALL THE DESIGNATIONS,
PREFERENCES, LIMITATIONS, AND RELATIVE RIGHTS OF EACH CLASS OR SERIES OF
SHARES THAT THE TRUST IS AUTHORIZED TO ISSUE, THE VARIATIONS IN THE RELATIVE
RIGHTS AND PREFERENCES OF ANY PREFERRED OR SPECIAL CLASS OF SHARES IN
SERIES, TO THE EXTENT THEY HAVE BEEN FIXED AND DETERMINED, AND THE AUTHORITY OF
THE TRUSTEES TO FIX AND DETERMINE THE RELATIVE RIGHTS AND PREFERENCES OF
SUBSEQUENT SERIES.  ANY SUCH STATEMENT
SHALL BE FURNISHED WITHOUT CHARGE ON REQUEST TO THE TRUST AT ITS PRINCIPAL
PLACE OF BUSINESS OR REGISTERED OFFICE. 
IF NECESSARY TO EFFECT COMPLIANCE BY THE TRUST WITH REQUIREMENTS OF THE
INTERNAL REVENUE CODE RELATING TO REAL ESTATE INVESTMENT TRUSTS, THE SHARES
EVIDENCED BY THIS 

 

22

 

CERTIFICATE MAY BE
REDEEMED BY THE TRUST AND/OR THE TRANSFER THEREOF MAY BE PROHIBITED ALL
UPON THE TERMS AND CONDITIONS SET FORTH IN THE DECLARATION OF TRUST.  THE TRUST WILL FURNISH A COPY OF SUCH TERMS
AND CONDITIONS TO THE REGISTERED HOLDER OF THIS CERTIFICATE UPON REQUEST AND
WITHOUT CHARGE.

 

6.3.                              Fractional
Shares.  In connection with any
issuance of Shares, the Trustees may issue fractional Shares or may adopt
provisions for the issuance of scrip including without limitation, the time
within which any such scrip must be surrendered for exchange into full Shares
and the rights, if any, of holders of scrip upon the expiration of the time so
fixed, the rights, if any, to receive proportional distributions, and the
rights, if any, to redeem scrip for cash, or the Trustees may in their
discretion, or if they see fit at the option of, each holder, provide in lieu
of scrip for the adjustment of the fractions in cash. The provisions of Section 6.2
hereof relative to certificates for Shares shall apply so far as applicable to
such scrip, except that such scrip may in the discretion of the Trustees be
signed by a transfer agent alone.

 

6.4.                              Legal
Ownership of Trust Estate.  The legal
ownership of the Trust Estate and the right to conduct the business of the
Trust are vested exclusively in the Trustees (subject to Section 3.2(s)),
and the Shareholders shall have no interest therein (other than beneficial
interest in the Trust conferred by their Shares issued hereunder) and they
shall have no right to compel any partition, division, dividend or distribution
of the Trust or any of the Trust Estate.

 

6.5.                              Shares
Deemed Personal Property.  The Shares
shall be personal property and shall confer upon the holders thereof only the
interest and rights specifically set forth or provided for in this Declaration.
The death, insolvency or incapacity of a Shareholder shall not dissolve or
terminate the Trust or affect its continuity nor give his legal representative
any rights whatsoever, whether against or in respect of other Shareholders, the
Trustees or the Trust Estate or otherwise, except the sole right to demand and,
subject to the provisions of this Declaration, the Bylaws and any requirements
of law, to receive a new certificate for Shares registered in the name of such
legal representative, in exchange for the certificate held by such Shareholder.

 

6.6.                              Share
Record; Issuance and Transferability of Shares.  Records shall be kept by or on behalf of and
under the direction of the Trustees, which shall contain the names and
addresses of the Shareholders, the number of Shares held by them respectively,
and the numbers of the certificates representing the Shares, and in which there
shall be recorded all transfers of Shares. The Trust, the Trustees and the
officers, employees and agents of the Trust shall be entitled to deem the
Persons in whose names certificates are registered on the records of the Trust
to be the absolute owners of the Shares represented thereby for all purposes of
the Trust; but nothing herein shall be deemed to preclude the Trustees or
officers, employees or agents of the Trust from inquiring as to the actual
ownership of Shares. Until a transfer is duly effected on the records of the
Trust, the Trustees shall not be affected by any notice of such transfer,
either actual or constructive.

 

Shares
shall be transferable on the records of the Trust only by the record holder
thereof or by his agent thereunto duly authorized in writing upon delivery to
the Trustees or a transfer 

 

23

 

agent of the certificate or certificates therefor,
properly endorsed or accompanied by duly executed instruments of transfer and
accompanied by all necessary documentary stamps together with such evidence of
the genuineness of each such endorsement, execution or authorization and of
other matters as may reasonably be required by the Trustees or such transfer agent.
Upon such delivery, the transfer shall be recorded in the records of the Trust
and a new certificate for the Shares so transferred shall be issued to the
transferee and in case of a transfer of only a part of the Shares represented
by any certificate, a new certificate for the balance shall be issued to the
transferor. Any Person becoming entitled to any Shares in consequence of the
death of a Shareholder or otherwise by operation of law shall be recorded as
the holder of such Shares and shall receive a new certificate therefor but only
upon delivery to the Trustees or a transfer agent of instruments and other
evidence required by the Trustees or the transfer agent to demonstrate such
entitlement, the existing certificate for such Shares and such releases from
applicable governmental authorities as may be required by the Trustees or
transfer agent. In case of the loss, mutilation or destruction of any
certificate for shares, the Trustees may issue or cause to be issued a
replacement certificate on such terms and subject to such rules and
regulations as the Trustees may from time to time prescribe. Nothing in this
Declaration shall impose upon the Trustees or a transfer agent a duty, or limit
their rights, to inquire into adverse claims.

 

6.7.                              Dividends
or Distributions to Shareholders. 
Subject to Section 5.1, the Trustees may from time to time declare
and pay to Shareholders such dividends or distributions in cash, property or
assets of the Trust or Securities issued by the Trust, out of current or accumulated
income, capital, capital gains, principal, interest, surplus, proceeds from the
increase or financing or refinancing of Trust obligations, or from the sale of
portions of the Trust Estate or from any other source as the Trustees in their
discretion shall determine. Shareholders shall have no right to any dividend or
distribution unless and until declared by the Trustees. The Trustees shall
furnish the Shareholders with a statement in writing advising as to the source
of the funds so distributed not later than ninety (90) days after the close of
the fiscal year in which the distribution was made.

 

6.8.                              Transfer
Agent, Dividend Disbursing Agent and Registrar.  The Trustees shall have power to employ one
or more transfer agents, dividend disbursing agents and registrars (including
the Advisor or its Affiliates) and to authorize them on behalf of the Trust to
keep records to hold and to disburse any dividends or distributions and to have
and perform, in respect of all original issues and transfers of Shares,
dividends and distributions and reports and communications to Shareholders, the
powers and duties usually had and performed by transfer agents, dividend
disbursing agents and registrars of a Maryland business corporation.

 

6.9.                              Shareholders’
Meetings.  There shall be an annual
meeting of the Shareholders, at such time and place as shall be determined by
or in the manner prescribed in the Bylaws, at which the Trustees shall be
elected and any other proper business may be conducted. The Annual Meeting of Shareholders
shall be held no fewer than 30 days after delivery to the Shareholders of the
Annual Report and within six (6) months after the end of each fiscal year,
commencing with the fiscal year ending December 31, 1986. Special meetings
of Shareholders may be called by the chief executive officer of the Trust or by
a majority of the Trustees or of the Independent Trustees and shall be called
by the chief executive officer of the Trust upon the written request of
Shareholders holding in the aggregate not less than ten percent (10%) of the
total votes authorized to be cast by the outstanding Shares of the Trust
entitled to vote at such meeting in the 

 

24

 

manner provided in
the Bylaws. If there shall be no Trustees, the officers of the Trust shall
promptly call a special meeting of the Shareholders entitled to vote for the
election of successor Trustees. Notice of any special meeting shall state the
purposes of the meeting.

 

The
holders of Shares entitled to vote at the meeting representing a majority of
the total number of votes authorized to be cast by Shares then outstanding and
entitled to vote on any question present in person or by proxy shall constitute
a quorum at any such meeting for action on such question. Any meeting may be
adjourned from time to time by a majority of the votes properly cast upon the
question, without regard to class, whether or not a quorum is present, and,
except as otherwise provided in the Bylaws, the meeting may be reconvened without
further notice. At any reconvened session of the meeting at which there shall
be a quorum, any business may be transacted at the meeting as originally
noticed.

 

Except
as otherwise clearly indicated in this Declaration or the Bylaws, whenever any
action is to be taken by the Shareholders, it shall be authorized by the
affirmative vote of the holders of Shares representing a majority of the total
number of votes authorized to be cast by shares then outstanding and entitled
to vote thereon. At all elections of Trustees, voting by Shareholders shall be
conducted under the non-cumulative method and the election of Trustees shall be
by the affirmative vote of the holders of Shares representing a majority of the
total number of votes authorized to be cast by shares then outstanding and
entitled to vote thereon.

 

Whenever
Shareholders are required or permitted to take any action (unless a vote at a
meeting is specifically required as in Sections 8.1, 8.3 and 8.5), such action
may be taken without a meeting by written consents setting forth the action so
taken, signed by the holders of a majority (or such higher percentage as may be
specified elsewhere in this Declaration) of the total number of votes
authorized to be cast by shares then outstanding and entitled to vote thereon.

 

6.10.                        Proxies.  Whenever the vote or consent of a Shareholder
entitled to vote is required or permitted under this Declaration, such vote or
consent may be given either directly by such Shareholder or by a proxy in the
form prescribed in, and subject to the provisions of, the Bylaws. The Trustees
may solicit such proxies from the Shareholders or any of them entitled to vote
in any matter requiring or permitting the Shareholders’ vote or consent.

 

6.11.                        [Reserved.]

 

6.12.                        Fixing
Record Date.  The Bylaws may provide
for fixing or, in the absence of such provision, the Trustees may fix, in
advance, a date as the record date for determining the Shareholders entitled to
notice of or to vote at any meeting of Shareholders or to express consent to
any proposal without a meeting or for the purpose of determining Shareholders
entitled to receive payment of any dividend or distribution (whether before or
after termination of the Trust) or any Annual Report or other communication
from the Trustees, or for any other purpose. The record date so fixed shall be
not less than ten (10) days nor more than sixty (60) days prior to the
date of the meeting or event for the purposes of which it is fixed.

 

6.13.                        Notice
to Shareholders.  Any notice of
meeting or other notice, communication or report to any Shareholder shall be
deemed duly delivered to such Shareholder when such notice, 

 

25

 

communication or
report is deposited, with postage thereon prepaid, in the United States mail,
addressed to such Shareholder at his address as it appears on the records of
the Trust or is delivered in person to such Shareholder.

 

6.14.                        Shareholders’
Disclosure: Trustees’ Right to Refuse to Transfer Shares; Limitation on
Holdings; Redemption of Shares.

 

(a)                                  The
Shareholders shall upon demand disclose to the Trustees in writing such
information with respect to direct and indirect ownership of the Shares as the
Trustees deem necessary or appropriate to comply with the REIT provisions of the
Internal Revenue Code or to comply with the requirements of any taxing
authority or governmental agency.

 

(b)                                 Whenever
in good faith the Trustees deem it reasonably necessary to protect the status
of the Trust as a REIT they may require a statement or affidavit from each
Shareholder or proposed transferee of Shares setting forth the number of Shares
already owned, directly or indirectly, by him and any related Person specified
in the form prescribed by the Trustees for that purpose. If, in the opinion of
the Trustees, which shall be binding upon any proposed transferee of Shares,
any proposed transfer would jeopardize the status of the Trust as a REIT, the
Trustees shall have the right, but not the duty, to refuse to permit such
transfer.

 

(c)                                  The
Trustees, by notice to the holder thereof, may purchase any or all Shares that
have been transferred pursuant to a transfer which, in the opinion of the
Trustees, would jeopardize the status of the Trust as a REIT. Without limiting
the generality of the foregoing, as a condition to the transfer and/or
registration of transfer of any Shares which could result in direct or indirect
ownership (as hereafter defined) of Shares representing more than 9.8% in value
of the total Shares outstanding (the “Excess Shares”) becoming concentrated in
the hands of one owner other than an Excepted Person, such potential owner
shall file with the Trust the statement or affidavit described in subsection (b) of
this Section 6.14 no later than the fifteenth day prior to any transfer, registration
of transfer or transaction which, if consummated, would result in such
ownership. The Trustees shall have the power

 

(i)                                     by
lot or other means deemed equitable by them to call for the purchase from the
beneficial owner or the Shareholder of such Excess Shares, and (ii) to
refuse to transfer or issue Shares to any Person whose acquisition of such
Shares would, in the opinion of the Trustees, result in the direct or indirect
beneficial ownership of any Excess Shares by a person other than any of the
Excepted Persons. The purchase price for any Excess Shares shall be equal to
the fair market value of the Shares reflected in the closing sale price for the
Shares, if then listed on a national securities exchange, or such price for the
Shares on the principal exchange if then listed on more than one national
securities exchange, or if the Shares are not then listed on a national
securities exchange, the latest bid quotation for the Shares if then traded
over-the-counter, on the last trading day immediately preceding the day on
which notices of such acquisition are sent, or, if no such closing sales prices
or quotations are available, then the purchase price shall be equal to the net
asset value of such Shares as determined by the Trustees in accordance with the
provisions of applicable law. Prompt payment of the purchase price shall be
made in cash by the Trust in such manner as may be determined by the Trustees.
From and after the date fixed for purchase by the Trustees, and so long as
payment of the purchase price for the Shares to be so redeemed shall have been
made or duly provided for, the holder of any 

 

26

 

Excess Shares so
called for purchase shall cease to be entitled to distributions, voting rights
and other benefits with respect to such Shares, excepting only the right to
payment of the purchase price fixed as aforesaid. Any transfer of Shares,
options, warrants or other securities convertible into Shares that would create
a direct or indirect beneficial owner of Excess Shares other than any of the
Excepted Persons shall be deemed void ab initio and the intended transferee
shall be deemed never to have an interest therein. If the foregoing provision
is determined to be void or invalid by virtue of any legal decision, statute, rule or
regulation, then the transferee of such Shares, options, warrants or other
securities convertible into Shares shall be deemed, at the option of the Trust,
to have acted as agent on behalf of the Trust in acquiring such Shares and to
hold such Shares on behalf of the Trust.

 

The
following persons are “Excepted Persons”: (i) the Advisor, (ii) persons
to whom the Advisor’s Share ownership is attributed or whose Share ownership is
attributed to the Advisor, or (iii) other persons approved by the
Trustees, at their option and in their sole discretion, provided only that such
approval shall not be granted to any person whose ownership of more than 9.8%
in value of the total Shares outstanding would result, directly, indirectly or
as a result of attribution of ownership, in termination of the status of the
Trust as a REIT.

 

(d)                                 Notwithstanding
any other provision in this Declaration of Trust or the Bylaws, the foregoing
provision may not be amended or repealed without the affirmative vote of 75% of
the Shares entitled to vote.

 

(e)                                  Notwithstanding
any other provision of this Declaration of Trust to the contrary, any purported
acquisition of Shares of the Trust (whether such purported acquisition results
from the direct or indirect acquisition or ownership (as hereafter defined) of
Shares) which would result in the disqualification of the Trust as a REIT shall
be null and void. Any such Shares may be treated by the Trustees in the manner
prescribed for Excess Shares in subsection (c) of this Section 6.14.

 

(f)                                    Nothing
contained in this Section 6.14 or in any other provision of this
Declaration of Trust shall limit the authority of the Trustees to take such
other action as they deem necessary or advisable to protect the Trust and the interests
of the Shareholders by preservation of the Trust’s status as a REIT.

 

(g)                                 If
any provision of this Section 6.14 or any application of any such
provision is determined to be invalid by any federal or state court having
jurisdiction over the issues, the validity of the remaining provision shall not
be affected and other applications of such provision shall be affected only to
the extent necessary to comply with the determination of such court. To the
extent this Section 6.14 may be inconsistent with any other provision of
this Declaration of Trust, this Section 6.14 shall be controlling.

 

(h)                                 It
shall be the policy of the Trustees to consult with the appropriate officials
of any stock exchange on which the relevant Shares of the Trust are listed as
far as reasonably possible in advance of the final exercise (at any time when
the Shares are listed on such exchange) of any powers granted by subsections (b) or
(c) of this Section 6.14.

 

27

 

(i)                                     For
purposes of this Declaration of Trust, Shares not owned directly shall be
deemed to be owned indirectly by a person if that person or a group of which he
is a member would be the beneficial owner of such Shares, as defined as of September 1,
1986 in Rule 13d-3 under the Securities Exchange Act of 1934 and/or would
be considered to own such Shares by reason of the attribution rules of Section 544
or Section 856(d)(5) of the Internal Revenue Code.

 

(j)                                     The
Trustees may, in their sole discretion, adopt, amend or repeal Bylaws providing
additional alternative measures to enforce the ownership limitations set forth
in paragraphs (b) and (c) above, including, without limitation,
alternative powers to those set forth in paragraph (c)(i) above.

 

6.15.                        Special
Voting Requirements for Certain Business Combinations.

 

(a)                                  The
affirmative vote of the holders of not less than 75% of the Shares then
outstanding and entitled to vote thereon shall be required for the approval or
authorization of any “Business Combination” (as hereinafter defined) of the
Trust with any “Related Person” (as hereinafter defined). However, such 75%
voting requirement shall not be applicable if: (1) the Board of Trustees
by unanimous vote or written consent shall have expressly approved in advance
the acquisition of the outstanding Shares of the Trust that caused the Related
Person to become a Related Person or shall have approved the Business
Combination prior to the Related Person involved in the Business Combination
having become a Related Person; or (2) the Business Combination is solely
between the Trust and another limited partnership, partnership, trust or
corporation, 100% of the voting securities of which is owned directly or
indirectly by the Trust.

 

(b)                                 For
purposes of this Section 6.15:

 

(i)                                     The
term “Business Combination” shall mean (a) any merger or consolidation of
the Trust with or into a Related Person, (b) any sale, lease, exchange,
transfer or other disposition, including without limitation a mortgage or any
other security device, of all or any “Substantial Part” (as hereinafter
defined) of the assets of the Trust (including without limitation any voting
securities of a subsidiary) to a Related Person, (c) any merger or
consolidation of a Related Person with or into the Trust, (d) any sale, lease,
exchange, transfer or other disposition of assets of a Related Person to the
Trust having a book value equal to more than 10% of the Invested Assets of the
Trust as of the end of the Trust’s most recent fiscal year ending prior to the
time the determination is made, (e) the issuance of any Securities (other
than by way of pro rata distribution to all Shareholders) of the Trust to a
Related Person, and (f) any agreement, contract or other arrangement
providing for any of the transactions described in this definition of Business
Combination.

 

(ii)                                  The
term “Related Person” shall mean and include any individual, corporation,
partnership, limited partnership or other person or entity other than the
Advisor or any wholly owned subsidiary of the Advisor which, together with its “affiliates”
and “associates” (as defined as of September 1, 1986, in Rule 12b-2
under the Securities Exchange Act of (iii) “beneficially owns” (as defined
as of September 1, 1986, in Rule 13d-3 under the Securities Exchange
Act of 1934) in the aggregate 10% or more of the outstanding Shares of the
Trust.

 

28

 

(iii)                               The
term “Substantial Part” shall mean an amount equal to more than 10% of the
Invested Assets of the Trust as of the end of its most recent fiscal year
ending prior to the time the determination is being made.

 

(iv)                              Without
limitation, any Shares that any Related Person has the right to acquire
pursuant to any agreement, or upon exercise of conversion rights, warrants or
options, or otherwise, shall be deemed beneficially owned by the Related
Person.

 

(c)                                  The
Trust elects not to be governed by the provisions of Subtitle 6 of Title 3 of
the Corporations and Associations Article of the Annotated Code of
Maryland, and the provisions of subparagraphs (a) and (b) of this Section 6.15
shall be in substitution for and to the exclusion of said Subtitle 6 of Title
3.

 

(d)                                 Except
as otherwise provided in this Section 6.15, the Trust may effect any
merger or consolidation in accordance with applicable law.

 

ARTICLE VII.

 

LIABILITY OF
TRUSTEES, SHAREHOLDERS, OFFICERS, EMPLOYEES AND AGENTS, AND OTHER MATTERS

 

7.1.                              Limitation
of Liability of Shareholders, Trustees, Officers, Employees and Agents for
Obligations of the Trust.  The
Trustees and the officers, employees and agents (including the Advisor) of the
Trust, in incurring any debts, liabilities or obligations or in taking or
omitting any other actions for or in connection with the Trust, are, and shall
be deemed to be, acting as trustees, officers, employees or agents of the Trust
and not in their own individual capacities. Except as otherwise provided in
Sections 7.3 hereof with respect to liability of Trustees or officers, agents
or employees of the Trust to the Trust or to Shareholders, no Shareholder,
Trustee or officer, employee or agent (including the Advisor) of the Trust
shall be liable for any debt, claim, demand, judgment decree, liability or
obligation of any kind (in tort, contract or otherwise) of, against or with
respect to the Trust or arising out of any action taken or omitted for or on
behalf of the Trust, and the Trust shall be solely liable therefor and resort
shall be had solely to the Trust Estate for the payment or performance thereof,
and no Shareholder, Trustee or officer, employee or agent (including the
Advisor) of the Trust shall be subject to any personal liability whatsoever, in
tort, contract or otherwise, to any other Person or Persons in connection with
the Trust Estate or the affairs of the Trust (or any actions taken or omitted
for or on behalf of the Trust), and all such other Persons shall look solely to
the Trust Estate for satisfaction of claims of any nature arising in connection
with the Trust Estate or the affairs of the Trust (or any action taken or omitted
for or on behalf of the Trust).

 

7.2.                              Express
Exculpatory Clauses and Instruments. 
Any written instrument creating an obligation of the Trust shall include
a reference to this Declaration and provide that neither the Shareholders nor
the Trustees nor any officers, employees or agents (including the Advisor) of
the Trust shall be liable thereunder and that all Persons shall look solely to
the Trust Estate for the payment of any claim thereunder or for the performance
thereof; however, the omission of such provision from any such instrument shall
not render the Shareholders, any Trustee, or any officer, employee or agent
(including the Advisor) of the Trust liable nor shall the Shareholders,

 

29

 

any Trustee or any
officer, employee or agent (including the Advisor) of the Trust be liable to
any one for such omission.

 

7.3.                              Limitation of Liability of Trustees
Officers Employees and Agents to the Trust and to Shareholders for Acts and
Omissions.  (a)  No Independent Trustee or officer,
employee or agent of the Trust shall have any greater duties than those
established by this Declaration of Trust or, in cases as to which such duties
are not so established, than those of the directors, officers, employees and
agents of a Maryland business corporation in effect from time to time. No
Independent Trustee, officer, employee or agent of the Trust shall be liable to
the Trust, Shareholders or to any other Person for any act or omission except
for his own willful misfeasance, bad faith, gross negligence or reckless
disregard of duty.

 

(b)                                 No Affiliated Trustee shall have
liability to the Trust, Shareholders or any other Person for any loss suffered
by the Trust which arises out of any action or inaction of such Affiliated
Trustee if such Affiliated Trustee in good faith had determined that such
course of conduct was in the best interest of the Trust and if such course of
conduct did not constitute negligence or misconduct of such Affiliated Trustee.

 

7.4.                              Indemnification and Reimbursement of
Trustees, Officers, Employees and Agents.

 

(a)                                  Except as otherwise provided in paragraph
(b) of this Section 7.4, any Person made a party to any action, suit
or proceeding or against whom a claim or liability is asserted by reason of the
fact that he, his testator or intestate was or is a Independent Trustee,
officer, employee or agent of the Trust shall be indemnified and held harmless
by the Trust against judgments, fines, amounts paid on account thereof (whether
in settlement or otherwise) and reasonable expenses, including attorneys’ fees,
actually and reasonably incurred by him in connection with the defense of such
action, suit, proceeding, claim or alleged liability or in connection with any
appeal therein, whether or not the same proceeds to judgment or is settled or
otherwise brought to a conclusion; provided, however, that no such Person shall
be so indemnified or reimbursed for any claim, obligation or liability which
shall have been adjudicated to have arisen out of or been based upon his
willful misfeasance, bad faith, gross negligence or reckless disregard of duty;
and provided, further, that such Person gives prompt notice thereof, executes
such documents and takes such action as will permit the Trust to conduct the
defense or settlement thereof and cooperates therein. In the event of a
settlement approved by the Trustees of any such claim, alleged liability,
action, suit or proceeding, indemnification and reimbursement shall be provided
except as to such matters covered by the settlement which the Trust is advised
by its counsel would, if adjudicated, likely be adjudicated to have arisen out
of or been based upon such Person’s willful misfeasance, bad faith, gross
negligence or reckless disregard of duty. Such rights of indemnification and
reimbursement shall be satisfied only out of the Trust Estate. The rights
accruing to any Person under these provisions shall not exclude any other right
to which he may be lawfully entitled, nor shall anything contained herein restrict
such Person’s right to contribution as may be available under applicable law.
The Trustees may make advance payments in connection with indemnification under
this Section 7.4, provided that the indemnified Person shall have given a
written undertaking to reimburse the Trust in the event it is subsequently
determined that he is not entitled to such indemnification. Any action taken by
or conduct on the part of an Independent Trustee, officer, employee or agent of
the Trust in 

 

30

 

conformity with or
in good faith reliance upon the provisions of this Declaration (including
without limitation any provision in Article VII hereof) shall not
constitute willful misfeasance, bad faith, gross negligence or reckless
disregard of duty.

 

(b)                                 Each Affiliated Trustee and any
Affiliates (as defined in Section 7.5 hereof) of such Affiliated Trustee
shall be indemnified by the Trust against any losses, judgments, liabilities,
expenses and amounts paid in settlement of any claims sustained by them in
connection with any action or inaction of such Affiliated Trustee or Affiliate
if such Affiliated Trustee or Affiliate, in good faith, determined that such
course of conduct was in the best interest of the Trust and if such conduct did
not constitute negligence or misconduct on the part of such Affiliated Trustee
or Affiliate. Notwithstanding the foregoing, Affiliated Trustees and their
Affiliates and any person acting for the Trust as a broker/dealer shall not be
indemnified for any losses, liabilities or expenses arising from or out of an
alleged violation of federal or state securities laws unless (i) there has
been a successful adjudication on the merits of each count involving alleged
securities law violations as to the particular indemnitee, or (ii) such
claims have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to the particular indemnitee or (iii) a court of competent
jurisdiction approves a settlement of the claim against the particular
indemnitee. In any claim for indemnification for federal or state securities
law violations, the party seeking indemnification shall place before the court
the position of the Securities and Exchange Commission and the Massachusetts
Securities Division (and any other state securities commissioner or
administrator who may so require) with respect to the issue of indemnification
for securities law violations. The Trust shall not incur the cost of that
portion of any insurance, other than public liability insurance, which insures
any party against any liability the indemnification of which is prohibited by
this Section 7.4(b). The provision of advances from Trust funds to the
Affiliated Trustees and any Affiliates for legal expenses and other costs incurred
as a result of any legal action initiated against the Affiliated Trustees by
Shareholders of the Trust is prohibited.

 

(c)                                  Notwithstanding anything herein to the
contrary, and to the fullest extent permitted by Maryland statutory or
decisional law, as amended or interpreted, no Trustee or officer of the Trust
shall be personally liable to the Trust or its shareholders for money damages.
No amendment of this Declaration or repeal of any of its provisions shall limit
or eliminate the limitation on liability provided to Trustees and officers
hereunder with respect to any act or omission occurring prior to such amendment
or repeal.

 

7.5.                              Certain Definitions. 
For the purposes of Section 7.4(b) hereof, the term “Affiliate,”
when used in connection with the term “Affiliated Trustee,” shall mean any
person performing services on behalf of the Trust who (i) directly or
indirectly controls, is controlled by, or is under common control with such
Affiliated Trustee; (ii) owns or controls ten percent (10%) or more of the
outstanding voting securities of such Affiliated Trustee; (iii) is an
officer, director, partner or trustee of such Affiliated Trustee; or (iv) is
a company for which such Affiliated Trustee acts as an officer, director,
partner or trustee. For the purposes of the above definition, the terms “control,”
“controlling,” “controlled by,” and “under common control with” refer to the
possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of a Person, whether through the ownership of
voting securities, by contract, or otherwise.

 

31

 

7.6.                              Indemnification and Reimbursement of
Shareholders.  Any Shareholder made a party to any action,
suit or proceeding or against him a claim or liabilities asserted by reason of
the fact that he, his testate or intestate was or is a Shareholder shall be
indemnified and held harmless by the Trust against judgments, fines, amounts
paid on account thereof (whether in settlement or otherwise) and reasonable
expenses, including attorneys’ fees, actually and reasonably incurred by him in
connection with the defense of such action, suit, proceeding, claim or alleged
liability or in connection with any appeal therein, whether or not the same
proceeds to judgment or is settled or otherwise brought to a conclusion;
provided however, that such Shareholder gives prompt notice thereof, executes
such documents and takes such action as will permit the Trust to conduct the
defense or settlement thereof and cooperates therein. In the event that the
assets of the Trust Estate are insufficient to satisfy the Trust’s indemnity
obligations hereunder, each Shareholder shall be entitled to such
indemnification pro rata from the Trust Estate.

 

7.7.                              Right of Trustees, Officers, Employees
and Agents to Own Shares or Other Property and to Engage in Other Business. 
Any Trustee or officer, employee or agent of the Trust may acquire, own,
hold and dispose of Shares in the Trust, for his individual account, and may
exercise all rights of a Shareholder to the same extent and in the same manner
as if he were not a Trustee or officer, employee or agent of the Trust. Any
Trustee or officer, employee or agent of the Trust may, in his personal
capacity or in the capacity of trustee, officer, director, stockholder,
partner, member, advisor or employee of any Person or otherwise, have business
interests and engage in business activities similar to or in addition to those
relating to the Trust, which interests and activities may be similar to and
competitive with those of the Trust and may include the acquisition,
syndication, holding, management, development, operation or disposition, for
his own account, or for the account of such Person or others, of interests in
Mortgages, interests in Real Property, or interests in Persons engaged in the
real estate business. Each Trustee, officer, employee and agent of the Trust
shall be free of any obligation to present to the Trust any investment
opportunity which comes to him in any capacity other than solely as Trustee,
officer, employee or agent of the Trust even if such opportunity is of a
character which, if presented to the Trust, could be taken by the Trust.
Subject to the provisions of Article IV and Section 7.8, any Trustee
or officer, employee or agent of the Trust may be interested as trustee,
officer, director, stockholder, partner, member, advisor or employee of, or
otherwise have a direct or indirect interest in, any Person who may be engaged
to render advice or services to the Trust, and may receive compensation from
such Person as well as compensation as Trustee, officer, employee or agent or
otherwise hereunder. None of these activities shall be deemed to conflict with
his duties and powers as Trustee or officer, employee or agent of the Trust.

 

7.8.                              Transactions Between Trustees, Officers,
Employees or Agents and the Trust.  Except as
otherwise provided by this Declaration, and in the absence of fraud, a
contract, act or other transaction between the Trust and any other Person in
which the Trust is interested, shall be valid, and no Trustee or officer,
employee or agent of the Trust shall have any liability as a result of entering
into any such contract, act or transaction, even though (a) one or more of
the Trustees or officers, employees or agents of the Trust are directly or
indirectly interested in or connected with or are trustees, partners,
directors, employees, officers or agents of such other Person, or (b) one
or more of the Trustees or officers, employees or agents of the Trust
individually or jointly with others, is a party or are parties to, or are
directly or indirectly interested in or connected with, such contract, act or
transaction; provided that in each such case (i) such interest or 

 

32

 

connection is
disclosed or known to the Trustees and thereafter the Trustees authorize or
ratify such contract, act or other transaction by affirmative vote of a
majority of the Trustees who are not so interested or (ii) such interest
or connection is disclosed or known to the Shareholders, and thereafter such
contract, act or transaction is approved by Shareholders holding a majority of
the Shares then outstanding and entitled to vote thereon.

 

Notwithstanding
any other provision of this Declaration, the Trust shall not engage in a
transaction with (a) any Trustee, officer, employee or agent of the Trust
(acting in his individual capacity), (b) any director, trustee, partner,
officer, employee or agent (acting in his individual capacity) of the Advisor
or any other investment advisor of the Trust, (c) the Advisor or any other
investment advisor of the Trust or (d) an Affiliate of any of the
foregoing, except to the extent that such transaction has, after disclosure of
such affiliation, been approved or ratified by the affirmative vote of a
majority of the Trustees including a majority of the Independent Trustees (or,
if the transaction is with a Person other than the Advisor or its Affiliates, a
majority of the Trustees not having any interest in such transaction and not
Affiliates of any party to the transaction) after a determination by them that
to the extent applicable:

 

(A)                              such transaction is fair and reasonable
to the Trust and the Shareholders;

 

(B)                                based upon an appraisal by a qualified
independent real estate appraiser, such qualification to be determined in each
instance by a majority of the Independent Trustees who shall, in each case,
have been approved by a majority of the Independent Trustees (or, if the
transaction is with a Person other than the Advisor its Affiliates, a majority
of the Trustees not having any interest in such transaction and not Affiliates
of any party to the transaction), the total consideration is not in excess of
the appraised value of the interest in Real Property being acquired, if an
acquisition is involved, or not less than the appraised value of the interest
in Real Property being disposed of, if a disposition is involved; and

 

(C)                                if such transaction involves payment by
the Trust for services rendered to the Trust by a Person in a capacity other
than that of Advisor, Trustee or Trust officer, (1) the compensation is
not in excess of the compensation, if any, paid to such Person by any other
Person who is not an Affiliate of such Person, for any comparable services in
the same geographic area, and (2) the compensation is not greater than the
charges for comparable services generally available in the same geographic area
from other Persons who are competent and not affiliated with any of the parties
involved.

 

This Section 7.8
shall not prevent any sale of Shares issued by the Trust for the public
offering thereof in accordance with a registration statement filed with the
Securities and Exchange Commission under the Securities Act of 1933. The
Trustees are not restricted by this Section 7.8 from forming a
corporation, partnership, trust or other business association owned by any
Trustee, officer, employee or agent or by their nominees for the purpose of
holding title to property of the Trust or managing property of the Trust,
provided that the Trustees make a determination that the creation of such
entity for such purpose is in the best interest of the Trust.

 

33

 

7.9.                              Independent Counsel. 
In the event of a dispute between the Trust and the Advisor or its
Affiliates, or should it be necessary for the Trust to prepare and negotiate
contracts and agreements between the Trust and the Advisor or its Affiliates
which in the good faith judgment of a majority of the Independent Trustees
require the advice or assistance of separate counsel or accountants from that
of the Advisor or its Affiliates, the Trust will retain such separate counsel
or accountants for such matters, the choice of which shall be made by a
majority of the Independent Trustees.

 

7.10.                        Persons Dealing with Trustees, Officers,
Employees or Agents.  Any act of the Trustees or of the officers,
employees or agents of the Trust purporting to be done in their capacity as
such, shall, as to any Persons dealing with such Trustees, officers, employees
or agents, be conclusively deemed to be within the purposes of this Trust and
within the powers of such Trustees or officers, employees or agents. No Person
dealing with the Trustees or any of them or with the officers, employees or
agents of the Trust shall be bound to see to the application of any funds or
property passing into their hands or control. The receipt of the Trustees or
any of them, or of authorized officers, employees or agents of the Trust, for
moneys or other consideration, shall be binding upon the Trust.

 

7.11.                        Reliance.  The Trustees
and the officers, employees and agents of the Trust may consult with counsel
(which may be a firm in which one or more of the Trustees or the officers, employees
or agents of the Trust is or are members) and the advice or opinion of such
counsel shall be full and complete personal protection to all the Trustees and
the officers, employees and agents of the Trust in respect of any action taken
or suffered by them in good faith and in reliance on or in accordance with such
advice or opinion. In discharging their duties, Trustees or officers, employees
or agents of the Trust, when acting in good faith, may rely upon financial
statements of the Trust represented to them to fairly present the financial
position or results of operations of the Trust by the chief financial officer
of the Trust or the officer of the Trust having charge of its books of account,
or stated in a written report by an independent certified public accountant
fairly to present the financial position or results of operations of the Trust.
The Trustees and the officers, employees and agents of the Trust may rely, and
shall be personally protected in acting, upon any instrument or other document
believed by them to be genuine.

 

7.12.                        Indemnification of the Trust. 
Each shareholder will indemnify and hold harmless the Trust from and
against all costs, expenses, penalties, fines and other amounts, including,
without limitation, attorneys’ and other professional fees, whether third party
or internal, arising from such shareholder’s violation of any provision of this
Declaration or the Bylaws, including, without limitation, Section 6.14,
and shall pay such sums to the Trust upon demand, together with interest on
such amounts, which interest will accrue at the lesser of 15% per annum and the
maximum amount permitted by law, from the date such costs or the like are
incurred until the receipt of repayment by the Trust.  Nothing in this Section shall create or
increase the liability of any shareholders, trustees, officers, employees or
agents of the Trust for actions taken on behalf of the Trust.

 

34

 

ARTICLE VIII.

 

DURATION,
AMENDMENT AND TERMINATION OF TRUST

 

8.1.                              Duration of Trust. 
The duration of the Trust shall be perpetual; provided, however, the
Trust may be terminated at any time by the affirmative vote at a meeting of
Shareholders of the holders of Shares representing two-thirds of the total
number of Shares then outstanding and entitled to vote thereon.

 

8.2.                              Termination of Trust.

 

(a)                                  Upon the termination of the Trust:

 

(i)                                     the Trust shall carry on no business
except for the purpose of winding up its affairs;

 

(ii)                                  the Trustees shall proceed to wind up the
affairs of the Trust and all the powers of the Trustees under this Declaration
shall continue until the affairs of the Trust shall have been wound up,
including the power to fulfill or discharge the contracts of the Trust, collect
its assets, sell, convey, assign, exchange, transfer or otherwise dispose of
all or any part of the remaining Trust Estate to one or more persons at public
or private sale (for consideration which may consist in whole or in part of
cash, Securities or other property of any kind), discharge or pay its
liabilities, and do all other acts appropriate to liquidate its business; and

 

(iii)                               after paying or adequately providing for
the payment of all liabilities, and upon receipt of such releases, indemnities
and refunding agreements, as they deem necessary for their protection, the
Trustees may distribute the remaining Trust Estate (in cash or in kind or
partly each) among the Shareholders according to their respective rights.

 

(b)                                 After termination of the Trust and
distribution of the Trust Estate to the Shareholders as herein provided, the
Trustees shall execute and lodge among the records of the Trust an instrument
in writing setting forth the fact of such termination and such distribution, a
copy of which instrument shall be filed with the Maryland Department of
Assessments and Taxation, and the Trustees shall thereupon be discharged from
all further liabilities and duties hereunder and the rights and interests of
all Shareholders shall thereupon cease.

 

8.3.                              Amendment Procedure. 
This Declaration may be amended (except that the provisions governing
the personal liability of the Shareholders, Trustees and of the officers,
employees and agents of the Trust and the prohibition of assessments upon
Shareholders may not be amended in any respect that could increase the personal
liability of such Shareholders, Trustees or officers, employees and agents of
the Trust) at a meeting of Shareholders by holders of Shares representing a
majority (or, with respect to amendments of Article V, amendments to the
provisions of Section 8.1, amendments to this Section 8.3 that would
reduce the percentage vote required to approve any amendments to this
Declaration, and with respect to amendments inconsistent with Sections 2.1,
6.14 and 6.15, seventy-five percent (75%)) of the total number of votes
authorized to be cast in respect of Shares then outstanding and entitled to
vote thereon.  The approval of a majority
of the Trustees (including a majority of the Independent Trustees) 

 

35

 

shall also be
required for any such amendment. 
Two-thirds (2/3)
of the Trustees may, after fifteen (15) days written notice to the
Shareholders, also amend this Declaration without the vote or consent of
Shareholders if in good faith they deem it necessary to conform this
Declaration to the requirements of the REIT Provisions of the Internal Revenue
Code, but the Trustees shall not be liable for failing to do so.  Actions by the Trustees pursuant to Section 1.1,
Section 6.1, or Section 9.6(a) that result in an amendment to
this Declaration shall be effected without the vote or consent of Shareholders.

 

8.4.                              Amendments Effective. 
Any amendment pursuant to any Section of this Declaration shall not
become effective until it is duly filed with the Maryland Department of
Assessments and Taxation.

 

8.5.                              Transfer to Successor. 
The Trustees, with the approval of a majority of the Trustees (including
a majority of the Independent Trustees) and the affirmative vote, at a meeting
approving a plan for this purpose, of the holders of Shares representing a
majority of all votes cast at a meeting at which a quorum is present, may (a) cause
the organization of a limited partnership, partnership, corporation,
association, trust or other organization to take over the Trust Estate and
carry on the affairs of the Trust, (b) merge the Trust into, or sell,
convey and transfer the Trust Estate to, any such limited partnership,
partnership, corporation, association, trust or organization in exchange for
Securities thereof, or beneficial interests therein, and the assumption by such
transferee of the liabilities of the Trust and (c) thereupon terminate
this Declaration and deliver such shares, Securities or beneficial interests
among the Shareholders in accordance with such plan.

 

ARTICLE IX.

 

MISCELLANEOUS

 

9.1.                              Applicable Law. 
This Declaration is executed and acknowledged by the Trustees with
reference to the statutes and laws of the State of Maryland, and the rights of
all parties and the construction and effect of every provision hereof shall be
subject to and construed according to the statutes and laws of such State.

 

9.2.                              Index and Headings for Reference Only. 
The index and headings preceding the text, articles and sections hereof
have been inserted for convenience and reference only and shall not be
construed to affect the meaning, construction or effect of this Declaration.

 

9.3.                              Successors in Interest. 
This Declaration and the Bylaws shall be binding upon and inure to the
benefit of the undersigned Trustees and their successors, assigns, heirs,
distributees and legal representatives, and every Shareholder and his
successors, assigns, heirs, distributees and legal representatives.

 

9.4.                              Inspection of Records. 
Trust records shall be available for inspection by Shareholders at the
same time and in the same manner and to the extent that comparable records of a
Maryland business corporation would be available for inspection by shareholders
under the laws of the State of Maryland. Except as specifically provided for in
this Declaration or in Title 8 of the Annotated Code of Maryland, Shareholders
shall have no greater right than shareholders 

 

36

 

of a Maryland
business corporation to require financial or other information from the Trust,
Trustees or officers of the Trust. Any Federal or state securities
administrator or the Maryland Department of Assessments and Taxation shall have
the right, at reasonable times during business hours and for proper purposes,
to inspect the books and records of the Trust.

 

9.5.                              Counterparts. 
This Declaration may be simultaneously executed in several counterparts,
each of which when so executed shall be deemed to be an original, and such
counterparts together shall constitute one and the same instrument, which shall
be sufficiently evidenced by any such original counterpart.

 

9.6.                              Provisions of the Trust in Conflict with
Law or Regulations: Severability.

 

(a)                                  The provisions of this Declaration are
severable, and if the Trustees shall determine, with the advice of counsel,
that any one or more of such provisions (the “Conflicting Provisions”) are in
conflict with the REIT Provisions of the Internal Revenue Code, the Conflicting
Provisions shall be deemed never to have constituted a part of the Declaration;
provided, however, that such determination by the Trustees shall not affect or
impair any of the remaining provisions of this Declaration or render invalid or
improper any action taken or omitted (including but not limited to the election
of Trustees) prior to such determination. An amendment in recordable form
signed by a majority of the Trustees setting forth any such determination and
reciting that it was duly adopted by the Trustees, or a copy of this
Declaration, with the Conflicting Provisions removed pursuant to such a
determination, in recordable form, signed by a majority of the Trustees, shall
be conclusive evidence of such determination when filed with the Maryland
Department of Assessments and Taxation. The Trustees shall not be liable for
failure to make any determination under this Section 9.6(a). Nothing in
this Section 9.6(a) shall in any way limit or affect the right of the
Trustees to amend this Declaration as provided in Section 8.3.

 

(b)                                 If any provision of this Declaration
shall be held invalid or unenforceable, such invalidity or unenforceability
shall attach only to such provision and shall not in any manner affect or
render invalid or unenforceable any other provision of this Declaration, and
this Declaration shall be carried out as if any such invalid or unenforceable
provision were not contained herein.

 

9.7.                              Certifications. 
The following certifications shall be final and conclusive as to any
Persons dealing with the Trust:

 

(a)                                  a certification of a vacancy among the
Trustees by reason of resignation, removal, increase in the number of Trustees,
incapacity, death or otherwise, when made in writing by a majority of the
remaining Trustees;

 

(b)                                 a certification as to the individuals
holding office as Trustees or officers at any particular time, when made in
writing by the secretary of the Trust;

 

(c)                                  a certification that a copy of this
Declaration or of the Bylaws is a true and correct copy thereof as then in
force, when made in writing by the secretary of the Trust;

 

(d)                                 the certifications referred to in
Sections 2.7, 8.4 and 9.6(a); and

 

37

 

(e)                                  a certification as to any actions by
Trustees, other than the above, when made in writing by the secretary of the
Trust or by any Trustee.

 

38Exhibit 4.18

 

HRPT PROPERTIES TRUST

 

TO

 

Trustee

 

Indenture

 

Dated as of
            ,
20   

 

Senior Subordinated Debt Securities

 

 

Table of Contents

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE
  ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
  1

  
	
  SECTION 1.01.
  DEFINITIONS

  	
  1

  
	
  SECTION 1.02.
  COMPLIANCE CERTIFICATES AND OPINIONS

  	
  9

  
	
  SECTION 1.03.
  FORM OF DOCUMENTS DELIVERED TO TRUSTEE

  	
  9

  
	
  SECTION 1.04.
  ACTS OF HOLDERS

  	
  10

  
	
  SECTION 1.05.
  NOTICES, ETC

  	
  11

  
	
  SECTION 1.06.
  NOTICE TO HOLDERS; WAIVER

  	
  12

  
	
  SECTION 1.07.
  EFFECT OF HEADINGS AND TABLE OF CONTENTS

  	
  13

  
	
  SECTION 1.08.
  SUCCESSORS AND ASSIGNS

  	
  13

  
	
  SECTION 1.09.
  SEPARABILITY CLAUSE

  	
  13

  
	
  SECTION 1.10.
  BENEFITS OF INDENTURE

  	
  13

  
	
  SECTION 1.11.
  GOVERNING LAW

  	
  13

  
	
  SECTION 1.12.
  LEGAL HOLIDAYS

  	
  13

  
	
  SECTION 1.13.
  NO PERSONAL LIABILITY

  	
  13

  
	
  ARTICLE
  TWO SECURITIES FORMS

  	
  14

  
	
  SECTION 2.01.
  FORMS OF SECURITIES

  	
  14

  
	
  SECTION 2.02.
  FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION

  	
  14

  
	
  SECTION 2.03.
  SECURITIES ISSUABLE IN GLOBAL FORM

  	
  14

  
	
  ARTICLE
  THREE THE SECURITIES

  	
  15

  
	
  SECTION 3.01.
  AMOUNT UNLIMITED; ISSUABLE IN SERIES

  	
  15

  
	
  SECTION 3.02.
  DENOMINATIONS

  	
  19

  
	
  SECTION 3.03.
  EXECUTION, AUTHENTICATION, DELIVERY AND DATING

  	
  19

  
	
  SECTION 3.04.
  TEMPORARY SECURITIES

  	
  21

  
	
  SECTION 3.05.
  REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE

  	
  23

  
	
  SECTION 3.06.
  MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES

  	
  26

  
	
  SECTION 3.07.
  PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED

  	
  28

  
	
  SECTION 3.08.
  PERSONS DEEMED OWNERS

  	
  29

  
	
  SECTION 3.09.
  CANCELLATION

  	
  30

  
	
  SECTION 3.10.
  COMPUTATION OF INTEREST

  	
  30

  
	
  ARTICLE
  FOUR SATISFACTION AND DISCHARGE

  	
  31

  
	
  SECTION 4.01.
  SATISFACTION AND DISCHARGE OF INDENTURE

  	
  31

  
	
  SECTION 4.02.
  APPLICATION OF TRUST FUNDS

  	
  32

  
	
  ARTICLE
  FIVE REMEDIES

  	
  32

  
	
  SECTION 5.01.
  EVENTS OF DEFAULT

  	
  32

  
	
  SECTION 5.02.
  ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT

  	
  34

  
	
  SECTION 5.03.
  COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE

  	
  35

  
	
  SECTION 5.04.
  TRUSTEE MAY FILE PROOFS OF CLAIM

  	
  36

  
	
  SECTION 5.05.
  TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES OR COUPONS

  	
  36

  

 

i

 

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  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 5.06.
  APPLICATION OF MONEY COLLECTED

  	
   

  	
  37

  
	
  SECTION 5.07.
  LIMITATION ON SUITS

  	
   

  	
  37

  
	
  SECTION 5.08.
  UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM, IF ANY,
  INTEREST AND ADDITIONAL AMOUNTS

  	
   

  	
  37

  
	
  SECTION 5.09.
  RESTORATION OF RIGHTS AND REMEDIES

  	
   

  	
  38

  
	
  SECTION 5.10.
  RIGHTS AND REMEDIES CUMULATIVE

  	
   

  	
  38

  
	
  SECTION 5.11.
  DELAY OR OMISSION NOT WAIVER

  	
   

  	
  38

  
	
  SECTION 5.12.
  CONTROL BY HOLDERS OF SECURITIES

  	
   

  	
  38

  
	
  SECTION 5.13.
  WAIVER OF PAST DEFAULTS

  	
   

  	
  39

  
	
  SECTION 5.14.
  WAIVER OF USURY, STAY OR EXTENSION LAWS

  	
   

  	
  39

  
	
  SECTION 5.15.
  UNDERTAKING FOR COSTS

  	
   

  	
  39

  
	
  ARTICLE
  SIX THE TRUSTEE

  	
   

  	
  39

  
	
  SECTION 6.01.
  NOTICE OF DEFAULTS

  	
   

  	
  39

  
	
  SECTION 6.02.
  CERTAIN RIGHTS OF TRUSTEE

  	
   

  	
  40

  
	
  SECTION 6.03.
  NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES

  	
   

  	
  41

  
	
  SECTION 6.04.
  MAY HOLD SECURITIES

  	
   

  	
  41

  
	
  SECTION 6.05.
  MONEY HELD IN TRUST

  	
   

  	
  41

  
	
  SECTION 6.06.
  COMPENSATION AND REIMBURSEMENT

  	
   

  	
  41

  
	
  SECTION 6.07.
  CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING INTERESTS

  	
   

  	
  42

  
	
  SECTION 6.08.
  RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR

  	
   

  	
  42

  
	
  SECTION 6.09.
  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR

  	
   

  	
  44

  
	
  SECTION 6.10.
  MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS

  	
   

  	
  45

  
	
  SECTION 6.11.
  APPOINTMENT OF AUTHENTICATION AGENT

  	
   

  	
  45

  
	
  ARTICLE
  SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
   

  	
  47

  
	
  SECTION 7.01.
  DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS

  	
   

  	
  47

  
	
  SECTION 7.02.
  REPORTS BY TRUSTEE

  	
   

  	
  47

  
	
  SECTION 7.03.
  REPORTS BY COMPANY

  	
   

  	
  47

  
	
  SECTION 7.04.
  COMPANY TO FURNISH TO TRUSTEE NAMES AND ADDRESSES OF HOLDERS

  	
   

  	
  47

  
	
  ARTICLE
  EIGHT CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE

  	
   

  	
  48

  
	
  SECTION 8.01.
  CONSOLIDATIONS AND MERGERS OF COMPANY AND SALES, LEASES AND CONVEYANCES
  PERMITTED SUBJECT TO CERTAIN CONDITIONS

  	
   

  	
  48

  
	
  SECTION 8.02.
  RIGHTS AND DUTIES OF SUCCESSOR CORPORATION

  	
   

  	
  48

  
	
  SECTION 8.03.
  OFFICERS’ CERTIFICATE AND OPINION OF COUNSEL

  	
   

  	
  49

  
	
  ARTICLE
  NINE SUPPLEMENTAL INDENTURES

  	
   

  	
  49

  
	
  SECTION 9.01.
  SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS

  	
   

  	
  49

  

 

ii

 

Table of Contents

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 9.02.
  SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS

  	
   

  	
  50

  
	
  SECTION 9.03.
  EXECUTION OF SUPPLEMENTAL INDENTURES

  	
   

  	
  51

  
	
  SECTION 9.04.
  EFFECT OF SUPPLEMENTAL INDENTURES

  	
   

  	
  52

  
	
  SECTION 9.05.
  CONFORMITY WITH TRUST INDENTURE ACT

  	
   

  	
  52

  
	
  SECTION 9.06.
  REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES

  	
   

  	
  52

  
	
  ARTICLE
  TEN COVENANTS

  	
   

  	
  52

  
	
  SECTION 10.01.
  PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, INTEREST AND ADDITIONAL AMOUNTS

  	
   

  	
  52

  
	
  SECTION 10.02.
  MAINTENANCE OF OFFICE OR AGENCY

  	
   

  	
  52

  
	
  SECTION 10.03.
  MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST

  	
   

  	
  54

  
	
  SECTION 10.04.
  EXISTENCE

  	
   

  	
  55

  
	
  SECTION 10.05.
  PROVISION OF FINANCIAL INFORMATION

  	
   

  	
  55

  
	
  SECTION 10.06.
  STATEMENT AS TO COMPLIANCE

  	
   

  	
  56

  
	
  SECTION 10.07.
  ADDITIONAL AMOUNTS

  	
   

  	
  56

  
	
  SECTION 10.08.
  WAIVER OF CERTAIN COVENANTS

  	
   

  	
  57

  
	
  ARTICLE
  ELEVEN REDEMPTION OF SECURITIES

  	
   

  	
  57

  
	
  SECTION 11.01.
  APPLICABILITY OF ARTICLE

  	
   

  	
  57

  
	
  SECTION 11.02.
  ELECTION TO REDEEM; NOTICE TO TRUSTEE

  	
   

  	
  57

  
	
  SECTION 11.03.
  SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED

  	
   

  	
  58

  
	
  SECTION 11.04.
  NOTICE OF REDEMPTION

  	
   

  	
  58

  
	
  SECTION 11.05.
  DEPOSIT OF REDEMPTION PRICE

  	
   

  	
  59

  
	
  SECTION 11.06.
  SECURITIES PAYABLE ON REDEMPTION DATE

  	
   

  	
  60

  
	
  SECTION 11.07.
  SECURITIES REDEEMED IN PART

  	
   

  	
  60

  
	
  ARTICLE
  TWELVE SINKING FUNDS

  	
   

  	
  61

  
	
  SECTION 12.01.
  APPLICABILITY OF ARTICLE

  	
   

  	
  61

  
	
  SECTION 12.02.
  SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES

  	
   

  	
  61

  
	
  SECTION 12.03.
  REDEMPTION OF SECURITIES FOR SINKING FUND

  	
   

  	
  61

  
	
  ARTICLE
  THIRTEEN REPAYMENT AT THE OPTION OF HOLDERS

  	
   

  	
  62

  
	
  SECTION 13.01.
  APPLICABILITY OF ARTICLE

  	
   

  	
  62

  
	
  SECTION 13.02.
  REPAYMENT OF SECURITIES

  	
   

  	
  62

  
	
  SECTION 13.03.
  EXERCISE OF OPTION

  	
   

  	
  62

  
	
  SECTION 13.04.
  WHEN SECURITIES PRESENTED FOR REPAYMENT BECOME DUE AND PAYABLE

  	
   

  	
  63

  
	
  SECTION 13.05.
  SECURITIES REPAID IN PART

  	
   

  	
  64

  
	
  ARTICLE
  FOURTEEN DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  	
  64

  
	
  SECTION 14.01.
  APPLICABILITY OF ARTICLE; COMPANY’S OPTION TO EFFECT DEFEASANCE OR COVENANT
  DEFEASANCE

  	
   

  	
  64

  
	
  SECTION 14.02.
  DEFEASANCE AND DISCHARGE

  	
   

  	
  64

  
	
  SECTION 14.03.
  COVENANT DEFEASANCE

  	
   

  	
  65

  

 

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Table of Contents

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  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 14.04.
  CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE

  	
   

  	
  65

  
	
  SECTION 14.05.
  DEPOSITED MONEY AND GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST; OTHER
  MISCELLANEOUS PROVISIONS

  	
   

  	
  67

  
	
  ARTICLE
  FIFTEEN MEETINGS OF HOLDERS OF SECURITIES

  	
   

  	
  68

  
	
  SECTION 15.01.
  PURPOSES FOR WHICH MEETINGS MAY BE CALLED

  	
   

  	
  68

  
	
  SECTION 15.02.
  CALL, NOTICE AND PLACE OF MEETINGS

  	
   

  	
  68

  
	
  SECTION 15.03.
  PERSONS ENTITLED TO VOTE AT MEETINGS

  	
   

  	
  68

  
	
  SECTION 15.04.
  QUORUM; ACTION

  	
   

  	
  69

  
	
  SECTION 15.05.
  DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF MEETINGS

  	
   

  	
  70

  
	
  SECTION 15.06.
  COUNTING VOTES AND RECORDING ACTION OF MEETINGS

  	
   

  	
  70

  

 

iv

 

INDENTURE,
dated as of               ,
20   , between HRPT PROPERTIES TRUST, a Maryland real estate
investment trust (hereinafter called the “Company”), having its principal
office at 400 Centre Street, Newton, Massachusetts 02158 and,                             ,
a                 ,
as Trustee hereunder (hereinafter called the “Trustee”), having its initial
Corporate Trust Office at                                         .

 

RECITALS OF THE COMPANY

 

The
Company deems it necessary to issue from time to time for lawful purposes its
unsecured debt securities (hereinafter called the “Securities”) evidencing its
unsecured indebtedness, and has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of the Securities,
unlimited as to principal amount, to bear interest at the rates or formulas, to
mature at such times and to have such other provisions as shall be fixed as
hereinafter provided.

 

This
Indenture is subject to the provisions of the Trust Indenture Act of 1939, as
amended, that are deemed to be incorporated into this Indenture by such Act,
and shall, to the extent applicable, be governed by such provisions.

 

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

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE ONE

DEFINITIONS AND
OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 1.01.  Definitions. For all purposes of this
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

 

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

 

(2)           all other terms used
herein which are defined in the TIA, either directly or by reference therein,
have the meanings assigned to them therein, and the terms “cash transaction”
and “self-liquidating paper”, as used in TIA Section 311, shall have the
meanings assigned to them in the rules of the Commission adopted under the
TIA;

 

(3)           all accounting terms
not otherwise defined herein have the meanings assigned to them in accordance
with GAAP; and

 

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

 

 

Certain
terms, used principally in Article Three, Article Five, Article Six
and Article Ten, are defined in those Articles.

 

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

 

“Additional
Amounts” means any additional amounts which are required by a Security or by or
pursuant to a Board Resolution, under circumstances specified therein, to be
paid by the Company in respect of certain taxes imposed on certain Holders and
which are owing to such Holders.

 

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

 

“Authenticating
Agent” means any authenticating agent appointed by the Trustee pursuant to Section 611.

 

“Authorized
Newspaper” means a newspaper, printed in the English language or in an official
language of the country of publication, customarily published on each Business
Day, whether or not \published on Saturdays, Sundays or holidays, and of
general circulation in each place in connection with which the term is used or
in the financial community of each such place. Whenever successive publications
are required to be made in Authorized Newspapers, the successive publications
may be made in the same or in different Authorized Newspapers in the same city
meeting the foregoing requirements and in each case on any Business Day.

 

“Bankruptcy
Law” has the meaning specified in Section 501.

 

“Bearer
Security” means any Security established pursuant to Section 201 which is
payable to bearer.

 

“Board”
means the board of trustees of the Company or any committee of that board duly
authorized to act hereunder.

 

“Board
Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board and
to be in full force and effect on the date of such certification, and delivered
to the Trustee.

 

“Business
Day”, when used with respect to any Place of Payment or any other particular
location referred to in this Indenture or in the Securities, means, unless
otherwise specified with respect to any Securities pursuant to Section 301,
any day, other than a Saturday or Sunday, that is neither a legal holiday nor a
day on which banking institutions in that Place of Payment or particular
location are authorized or required by law, regulation or executive order to
close.

 

“CEDEL”
means CEDEL Bank, S.A., or its successor.

 

2

 

“Commission”
means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, or, if at any time after
execution of this instrument such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties on such date.

 

“Common
Depositary” has the meaning specified in Section 304.

 

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

 

“Company
Request” and “Company Order” mean, respectively, a written request or order
signed in the name of the Company by the President or a Vice President, and by
its Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary,
of the Company, and delivered to the Trustee.

 

“Conversion
Event” means the cessation of use of (i) a Foreign Currency both by the
government of the country which issued such currency and for the settlement of
transactions by a central bank or other public institution of or within the
international banking community, (ii) the ECU both within the European
Monetary System and for the settlement of transactions by public institutions
of or within the European Communities or (iii) any currency unit (or
composite currency) other than the ECU for the purposes for which it was
established.

 

“Corporate
Trust Office” means the office of the Trustee at which, at any particular time,
its corporate trust business shall be principally administered, which office at
the date hereof is located at                .

 

“corporation”
includes corporations, associations, companies and business trusts.

 

“coupon”
means any interest coupon appertaining to a Bearer Security.

 

“Custodian”
has the meaning specified in Section 501.

 

“Declaration”
has the meaning specified in Section 113.

 

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

 

“Dollar”
or “$” means a dollar or other equivalent unit in such coin or currency of the
United States of America as at the time shall be legal tender for the payment
of public and private debts.

 

“DTC”
means The Depository Trust Company, or any successor thereto.

 

“ECU”
means the European Currency Unit as defined and revised from time to time by
the Council of the European Communities.

 

“Euroclear”
means Morgan Guaranty Trust Company of New York, Brussels Office, or its
successor as operator of the Euroclear System.

 

3

 

“European
Communities” means the European Economic Community, the European Coal and Steel
Community and the European Atomic Energy Community.

 

“European
Monetary System” means the European Monetary System established by the
Resolution of December 5, 1978 of the Council of the European Communities.

 

“Event
of Default” has the meaning specified in Article Five.

 

“Exchange
Date” has the meaning specified in Section 304.

 

“Foreign
Currency” means any currency, currency unit or composite currency, including,
without limitation, the ECU, issued by the government of one or more countries
other than the United States of America or by any recognized confederation or
association of such governments.

 

“Funds
from Operations” for any period means the consolidated net income of the
Company and its Subsidiaries for such period without giving effect to
depreciation and amortization, gains or losses from extraordinary items, gains
or losses on sales of real estate, gains or losses on investments in marketable
securities and any provision/benefit for income taxes for such period, plus
funds from operations of unconsolidated joint ventures, all determined on a
consistent basis in accordance with GAAP.

 

“GAAP”
means generally accepted accounting principles in effect from time to time as
used in the United States applied on a consistent basis.

 

“Government
Obligations” means securities which are (i) direct obligations of the
United States of America or the government which issued the Foreign Currency in
which the Securities of a particular series are payable, for the payment of
which its full faith and credit is pledged or (ii) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America or such government which issued the Foreign Currency
in which the Securities of such series are payable, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America or such other government, 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 or trust company as custodian
with respect to any such Government Obligation or a specific payment of
interest on or principal of any such Government Obligation held by such
custodian for the account of the holder of a depository receipt; provided that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the Government Obligation or
the specific payment of interest on or principal of the Government Obligation
evidenced by such depository receipt.

 

“Holder”
means, in the case of a Registered Security, the Person in whose name a
Security is registered in the Security Register and, in the case of a Bearer
Security, the bearer thereof and, when used with respect to any coupon, shall
mean the bearer thereof.

 

“Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof, and shall include the terms
of particular series of 

 

4

 

Securities established as contemplated by Section 301;
provided, however, that, if at any time more than one Person is acting as
Trustee under this instrument, “Indenture” shall mean, with respect to any one
or more series of Securities for which such Person is Trustee, this instrument
as originally executed or as it may from time to time be supplemented or
amended by one or more applicable provisions hereof and shall include the terms
of the or those particular series of Securities for which such Person is
Trustee established as contemplated by Section 301, exclusive, however, of
any provisions or terms which relate solely to other series of Securities for
which such Person is Trustee, regardless of when such terms or provisions were
adopted, and exclusive of any provisions or terms adopted by means of one or
more indentures supplemental hereto executed and delivered after such Person
had become such Trustee but to which such Person, as such Trustee, was not a
party.

 

“Indexed
Security” means a Security the terms of which provide that the principal amount
thereof payable at Stated Maturity may be more or less than the principal face
amount thereof at original issuance.

 

“interest”,
when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, shall mean interest payable after
Maturity, and, when used with respect to a Security which provides for the
payment of Additional Amounts pursuant to Section 1007, includes such
Additional Amounts.

 

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

 

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

 

“Officers’
Certificate” means a certificate signed by the President or a Vice President
and by the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
Secretary of the Company, and delivered to the Trustee.

 

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

 

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

 

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

 

(i)            Securities
theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

 

(ii)           Securities, or
portions thereof, for whose payment or redemption or 

 

5

 

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

 

(iii)          Securities, except
to the extent provided in Sections 1402 and 1403, with respect to which the
Company has effected defeasance and/or covenant defeasance as provided in Article Fourteen;

 

(iv)          Securities which
have been paid pursuant to Section 306 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have
been presented to the Trustee proof satisfactory to it that such Securities are
held by a bona fide purchaser in whose hands such Securities are valid
obligations of the Company; and

 

(v)           Securities converted
into Common Shares, Preferred Shares or other securities of the Company
pursuant to or in accordance with this Indenture if the terms of such
Securities provide for convertibility pursuant to Section 301;

 

provided,
however, that in determining whether the Holders of the requisite principal
amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or are present at
a meeting of Holders for quorum purposes, and for the purpose of making the calculations
required by TIA Section 313, (i) the principal amount of an Original
Issue Discount Security that may be counted in making such determination or
calculation and that shall be deemed to be Outstanding for such purpose shall
be equal to the amount of principal thereof that would be (or shall have been
declared to be) due and payable, at the time of such determination, upon a
declaration of acceleration of the maturity thereof pursuant to Section 502,
(ii) the principal amount of any Security denominated in a Foreign
Currency that may be counted in making such determination or calculation and
that shall be deemed Outstanding for such purpose shall be equal to the Dollar
equivalent, determined pursuant to Section 301 as of the date such
Security is originally issued by the Company, of the principal amount (or, in
the case of an Original Issue Discount Security, the Dollar equivalent as of
such date of original issuance of the amount determined as provided in clause (i) above)
of such Security, (iii) the principal amount of any Indexed Security that may
be counted in making such determination or calculation and that shall be deemed
outstanding for such purpose shall be equal to the principal face amount of
such Indexed Security at original issuance, unless otherwise provided with
respect to such Security pursuant to Section 301, and (iv) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be
protected in making such calculation or in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which the Trustee knows to be so owned shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as Outstanding if
the pledge establishes to the satisfaction of the Trustee the pledgee’s right
so to act with respect to such Securities and that the pledgee is 

 

6

 

not
the Company or any other obligor upon the Securities or any Affiliate of the
Company or of such other obligor.

 

“Paying
Agent” means any Person authorized by the Company to pay the principal of (and
premium, if any) or interest on any Securities or coupons on behalf of the
Company.

 

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

 

“Place
of Payment”, when used with respect to the Securities of or within any series,
means the place or places where the principal of (and premium, if any) and
interest on such Securities are payable as specified as contemplated by
Sections 301 and 1002.

 

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

 

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

 

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

 

“Registered
Security” shall mean any Security established pursuant to Section 201
which is registered in the Security Register.

 

“Regular
Record Date” for the interest payable on any Interest Payment Date on the
Registered Securities of or within any series means the date specified for that
purpose as contemplated by Section 301, whether or not a Business Day.

 

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

 

“Responsible
Officer”, when used with respect to the Trustee, means the chairman or
vice-chairman of the board of directors, the chairman or vice-chairman of the
executive committee of the board of directors, the president, any vice
president (whether or not designated by a number or a word or words added
before or after the title “vice president”), the secretary, any assistant
secretary, the treasurer, any assistant treasurer, the cashier, any assistant
cashier, any trust officer, the controller or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of such
officer’s knowledge and familiarity with the particular subject.

 

7

 

“Security”
has the meaning stated in the first recital of this Indenture and, more
particularly, means any Security or Securities authenticated and delivered
under this Indenture; provided, however, that, if at any time there is more
than one Person acting as Trustee under this Indenture, “Securities” with
respect to the Indenture as to which such Person is Trustee shall have the meaning
stated in the first recital of this Indenture and shall more particularly mean
Securities authenticated and delivered under this Indenture, exclusive,
however, of Securities of any series as to which such Person is not Trustee.

 

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

 

“Significant
Subsidiary” means any Subsidiary which is a “significant subsidiary” (as
defined in Article I, Rule 1-02 of Regulation S-X, promulgated under
the Securities Act of 1933, as amended) of the Company.

 

“Special
Record Date” for the payment of any Defaulted Interest on the Registered
Securities of or within any series means a date fixed by the Trustee pursuant
to Section 307.

 

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

 

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

 

“Trust
Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as amended and
as in force at the date as of which this Indenture was executed, except as
provided in Section 905.

 

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

 

“United
States” means, unless otherwise specified with respect to any Securities
pursuant to Section 301, the United States of America (including the
states and the District of Columbia), its territories, its possessions and
other areas subject to its jurisdiction.

 

“United
States person” means, unless otherwise specified with respect to any Securities
pursuant to Section 301, an individual who is a citizen or resident of the
United States, a corporation, partnership or other entity created organized in
or under the laws of the United

 

8

 

States or an estate or trust the income of which is
subject to United States federal income taxation regardless of its source.

 

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

 

SECTION 1.02.  Compliance Certificates and Opinions. Upon
any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the Trustee
an Officers’ Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate
or opinion need be furnished.

 

Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (including certificates delivered pursuant to Section 1006)
shall include:

 

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

 

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

 

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

 

(4)                                  a statement as to whether, in the opinion
of each such individual, such condition or covenant has been complied with.

 

SECTION 1.03.  Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by or covered by
an opinion of any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may
certify or give an opinion as to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

 

Any
certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon an Opinion of Counsel, or a certificate of or
representations by counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the opinion, certificate or representations
with respect to the matters upon which his certificate or opinion is 

 

9

 

based are erroneous. Any such Opinion of Counsel,
certificate or representations may be based, insofar as it relates to factual
matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company or any Subsidiary stating that the information as to
such factual matters is in the possession of the Company or such Subsidiary,
unless such counsel knows that the certificate or opinion or representations as
to such matters are erroneous.

 

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

 

SECTION 1.04.  Acts of Holders. (a) Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders of the Outstanding
Securities of all series or one or more series, as the case may be, may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agents duly appointed in writing.
If Securities of a series are issuable as Bearer Securities, any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders of Securities of
such series may, alternatively, be embodied in and evidenced by the record of
Holders of Securities of such series voting in favor thereof, either in person
or by proxies duly appointed in writing, at any meeting of Holders of
Securities of such series duly called and held in accordance with the
provisions of Article Fifteen, or a combination of such instruments and
any such record. Except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments or record or both
are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments and any such record (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or instruments or so voting at any
such meeting. Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any Person of a Security, shall
be sufficient for any purpose of this Indenture and conclusive in favor of the
Trustee and the Company and any agent of the Trustee or the Company, if made in
the manner provided in this Section. The record of any meeting of Holders of
Securities shall be proved in the manner provided in Section 1506.

 

(b)                                 The fact and date of the execution by any
Person of any such instrument or writing may be proved by the affidavit of a
witness of such execution or by a certificate of a notary public or other
officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof. Where such execution is by a signer acting in a capacity other than
his individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority. The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other reasonable manner which the Trustee deems
sufficient.

 

(c)                                  The ownership of Registered Securities
shall be proved by the Security Register.

 

(d)                                 The ownership of Bearer Securities may be
proved by the production of such Bearer Securities or by a certificate executed,
as depositary, by any trust company, bank, banker or other depositary, wherever
situated, if such certificate shall be deemed by the Trustee to be 

 

10

 

satisfactory,
showing that at the date therein mentioned such Person had on deposit with such
depositary, or exhibited to it, the Bearer Securities therein described; or
such facts may be proved by the certificate or affidavit of the Person holding
such Bearer Securities, if such certificate or affidavit is deemed by the
Trustee to be satisfactory. The Trustee and the Company may assume that such
ownership of any Bearer Security continues until (1) another certificate
or affidavit bearing a later date issued in respect of the same Bearer Security
is produced, or (2) such Bearer Security is produced to the Trustee by
some other Person, or (3) such Bearer Security is surrendered in exchange
for a Registered Security, or such Bearer Security is no longer Outstanding.
The ownership of Bearer Securities may also be proved in any other manner which
the Trustee deems sufficient.

 

(e)                                  If the Company shall solicit from the
Holders of Registered Securities any request, demand, authorization, direction,
notice, consent, waiver or other Act, the Company may, at its option, in or
pursuant to a Board Resolution, fix in advance a record date for the
determination of Holders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act, but the Company shall have no
obligation to do so. Notwithstanding TIA Section 316(c), such record date
shall be the record date specified in or pursuant to such Board Resolution,
which shall be a date not earlier than the date 30 days prior to the first
solicitation of Holders generally in connection therewith and not later than
the date such solicitation is completed. 
If such a record date is fixed, such request,  demand, authorization, direction, notice,
consent, waiver or other Act may be given before or after such record date, but
only the Holders of record at the close of business on such record date shall
be deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of Outstanding Securities have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other Act, and for that purpose the Outstanding Securities shall be
computed as of such record date; provided that no such authorization, agreement
or consent by the Holders on such record date shall be deemed effective unless
it shall become effective pursuant to the provisions of this Indenture not
later than eleven months after the record date.

 

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

 

SECTION 1.05.  Notices, etc., to Trustee and Company. Any
request, demand, authorization, direction, notice, consent, waiver or Act of
Holders or other document provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with,

 

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

 

(2)                                  the Company by the Trustee or by any
Holder shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if in writing and mailed, first 

 

11

 

class postage
prepaid, to the Company addressed to it at the address of its principal office
specified in the first paragraph of this Indenture or at any other address
previously furnished in writing to the Trustee by the Company.

 

SECTION 1.06.  Notice to Holders; Waiver. Where this
Indenture provides for notice of any event to Holders of Registered Securities
by the Company or the Trustee, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid, to each such Holder affected by such event, at his address as
it appears in the Security Register, not later than the latest date, and not
earlier than the earliest date, prescribed for the giving of such notice. In
any case where notice to Holders of Registered Securities is given by mail,
neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders of Registered Securities or the sufficiency of
any notice to Holders of Bearer Securities given as provided herein. Any notice
mailed to a Registered Holder in the manner herein prescribed shall be
conclusively deemed to have been received by such Holder, whether or not such
Holder actually receives such notice.

 

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

 

Except
as otherwise expressly provided herein or otherwise specified with respect to
any Securities pursuant to Section 301, where this Indenture provides for
notice to Holders of Bearer Securities of any event, such notice shall be
sufficiently given if published in an Authorized Newspaper in The City of New
York and in such other city or cities as may be specified in such Securities on
a Business Day, such publication to be not later than the latest                      9 <PAGE> date, and
not earlier than the earliest date, prescribed for the giving of such notice.
Any such notice shall be deemed to have been given on the date of such
publication or, if published more than once, on the date of the first such
publication.

 

If by
reason of the suspension of publication of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities as provided above, then
such notification to Holders of Bearer Securities as shall be given with the
approval of the Trustee shall constitute sufficient notice to such Holders for
every purpose hereunder. Neither the failure to give notice by publication to
any particular Holder of Bearer Securities as provided above, nor any defect in
any notice so published, shall affect the sufficiency of such notice with
respect to other Holders of Bearer Securities or the sufficiency of any notice
to Holders of Registered Securities given as provided herein.

 

Any
request, demand, authorization, direction, notice, consent or waiver required
or permitted under this Indenture shall be in the English language, except that
any published notice may be in an official language of the country of
publication.

 

Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such 

 

12

 

waiver shall be the equivalent of such notice. Waivers
of notice by Holders shall be filed with the Trustee, but such filing shall not
be a condition precedent to the validity of any action taken in reliance upon such
waiver.

 

SECTION 1.07.  Effect of Headings and Table of Contents. The
Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

 

SECTION 1.08.  Successors and Assigns.  All covenants and agreements in this
Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

 

SECTION 1.09.  Separability Clause. In case any provision in
this Indenture or in any Security or coupon shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

SECTION 1.10.  Benefits of Indenture. Nothing in this
Indenture or in the Securities or coupons, express or implied, shall give to
any Person, other than the parties hereto, any Security Registrar, any Paying
Agent, any Authenticating Agent and their successors hereunder and the Holders
any benefit or any legal or equitable right, remedy or claim under this
Indenture.

 

SECTION 1.11.  Governing Law. This Indenture and the
Securities and coupons shall be governed by and construed in accordance with
the law of The Commonwealth of Massachusetts. This Indenture is subject to the
provisions of the TIA that are required to be part of this Indenture and shall,
to the extent applicable, be governed by such provisions.

 

SECTION 1.12.  Legal Holidays. In any case where any
Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment
date, Stated Maturity or Maturity of any Security shall not be a Business Day
at any Place of Payment, then (notwithstanding any other provision of this
Indenture or any Security or coupon other than a provision in the Securities of
any series which specifically states that such provision shall apply in lieu
hereof), payment of interest or any Additional Amounts or principal (and
premium, if any) or sinking fund payment need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on the Interest
Payment Date, Redemption Date, Repayment Date or sinking fund payment date, or
at the Stated Maturity or Maturity; provided that no interest shall accrue on
the amount so payable for the period from and after such Interest Payment Date,
Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or
Maturity, as the case may be.

 

SECTION 1.13. 
No Personal Liability. THE AMENDED AND RESTATED DECLARATION OF TRUST OF
THE COMPANY, DATED JULY 1, 1994, A COPY OF WHICH, TOGETHER WITH ALL AMENDMENTS
AND SUPPLEMENTS THERETO, IS DULY FILED IN THE OFFICE OF THE STATE DEPARTMENT OF
ASSESSMENTS AND TAXATION OF MARYLAND, PROVIDES THAT THE NAME “HRPT PROPERTIES
TRUST” REFERS TO THE TRUSTEES UNDER THE DECLARATION OF TRUST, AS SO AMENDED AND
SUPPLEMENTED, COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND
THAT NO TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF THE COMPANY 

 

13

 

SHALL BE HELD TO ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY
OBLIGATION OF, OR CLAIM AGAINST, THE COMPANY. 
ALL PERSONS DEALING WITH THE COMPANY IN ANY WAY SHALL LOOK ONLY TO THE
ASSETS OF THE COMPANY FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY
OBLIGATION.

 

ARTICLE TWO

SECURITIES FORMS

 

SECTION 2.01.  Forms of Securities. The Registered
Securities, if any, of each series and the Bearer Securities, if any, of each
series and related coupons shall be in substantially the forms as shall be
established in one or more indentures supplemental hereto or approved from time
to time by or pursuant to a Board Resolution in accordance with Section 301,
shall have such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture or any indenture
supplemental hereto, and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements placed thereon
as the Company may deem appropriate and as are not inconsistent with the
provisions of this Indenture, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or
regulation of any securities exchange on which the Securities may be listed, or
to conform to usage.

 

Unless
otherwise specified as contemplated by Section 301, Bearer Securities
shall have interest coupons attached.

 

The
definitive Securities and coupons shall be printed, lithographed or engraved or
produced by any combination of these methods on a steel engraved border or
steel engraved borders or may be produced in any other manner, all as
determined by the officers of the Company executing such Securities or coupons,
as evidenced by their execution of such Securities or coupons.

 

SECTION 2.02.  Form of Trustee’s Certificate of
Authentication. Subject to Section 611, the Trustee’s certificate of
authentication shall be in substantially the following form:

 

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

 

	
   

  	
   

  
	
  as Trustee

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
  Authorized Officer

  	
   

  
			

 

SECTION 2.03.  Securities Issuable in Global Form. If
Securities of or within a series are issuable in global form, as specified in
and as contemplated by Section 301, then, notwithstanding clause (8) of
Section 301 and the provisions of Section 302, any such Security
shall represent such of the Outstanding Securities of such series as shall be
specified therein and may provide that it shall represent the aggregate amount
of Outstanding Securities of such series 

 

14

 

from time to time
endorsed thereon and that the aggregate amount of Outstanding Securities of
such series represented thereby may from time to time be increased or decreased
to reflect exchanges. Any endorsement of a Security in global form to reflect
the amount, or any increase or decrease in the amount, of Outstanding
Securities represented thereby shall be made by the Trustee in such manner and
upon instructions given by such Person or Persons as shall be specified therein
or in the Company Order to be delivered to the Trustee pursuant to Section 303
or 304. Subject to the provisions of Section 303 and, if applicable, Section 304,
the Trustee shall deliver and redeliver any Security in permanent form in the
manner and upon instructions given by the Person or Persons specified therein
or in the applicable Company Order. If a Company Order pursuant to Section 303
or 304 has been, or simultaneously is, delivered, any instructions by the
Company with respect to endorsement or delivery or redelivery of a Security in
global form shall be in writing but need not comply with Section 102 and
need not be accompanied by an Opinion of Counsel.

 

The
provisions of the last sentence of Section 303 shall apply to any Security
represented by a Security in global form if such Security was never issued and
sold by the Company and the Company delivers to the Trustee the Security in
global form together with written instructions (which need not comply with Section 102
and need not be accompanied by an Opinion of Counsel) with regard to the
reduction in the principal amount of Securities represented thereby, together
with the written statement contemplated by the last sentence of Section 303.

 

Notwithstanding
the provisions of Section 307, 
unless otherwise specified as contemplated by Section 301, payment
of principal of and any premium and interest on any Security in permanent
global form shall be made to the Person or Persons specified therein.

 

Notwithstanding
the provisions of Section 308 and except as provided in the preceding
paragraph, the Company, the Trustee and any agent of the Company and the
Trustee shall treat as the Holder of such principal amount of Outstanding
Securities represented by a permanent global Security (i) in the case of a
permanent global Security in registered form, the Holder of such permanent
global Security in registered form or (ii) in the case of a permanent
global Security in bearer form, Euroclear or CEDEL.

 

ARTICLE THREE

THE SECURITIES

 

SECTION 3.01.  Amount Unlimited;  Issuable in Series. The aggregate principal
amount of Securities which may be authenticated and delivered under this
Indenture is unlimited.

 

The
Securities may be issued in one or more series. There shall be established in
one or more Board Resolutions or pursuant to authority granted by one or more
Board Resolutions and, subject to Section 303, set forth, or determined in
the manner provided, in an Officers’ Certificate,  or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series, any or
all of the following, as applicable (each of which (except for the matters set
forth in clauses (1), (2) and (14) below), if so provided, may be
determined from time to time by the Company with respect to unissued Securities
of the series when issued from time to time):

 

15

 

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

 

(2)                                  any limit upon the aggregate principal
amount of the Securities of the series that may be authenticated and delivered
under this Indenture (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 304, 305, 306, 906, 1107 or
1305);

 

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

 

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

 

(5)                                  the place or places where the principal
of, any premium and interest on and any Additional Amounts payable in respect
of, Securities of the series shall be payable, any Registered Securities of the
series may be surrendered for registration of transfer, exchange or conversion
and notices or demands to or upon the Company in respect of the Securities of
the series and this Indenture may be served;

 

(6)                                  the period or periods within which or the
date or dates on which, the price or prices at which, and other terms and
conditions upon which Securities of the series may be redeemed, in whole or in
part, at the option of the Company, if the Company is to have the option;

 

(7)                                  the obligation, if any, of the Company to
redeem, repay or purchase Securities of the series pursuant to any sinking fund
or

 

(8)                                  analogous provision or at the option of a
Holder thereof, and the period or periods within which or the date or dates on
which, the price or prices at which, and other terms and conditions upon which
Securities of the series shall be redeemed, repaid or purchased, in whole or in
part, pursuant to such obligation;

 

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

 

(10)                            if other than Dollars, the Foreign
Currency or Currencies in which payment of the principal of (and premium, if
any), interest, if any, on, and Additional Amounts, if any, on the Securities
of the series shall be payable, in which the Securities of the series shall be
redeemed or purchased or in which the Securities of the series shall be
denominated; if other than the principal amount thereof, the portion of the
principal amount of Securities of the series that shall be payable upon declaration
of acceleration of the Maturity thereof pursuant to Section 

 

16

 

502 or, if
applicable, the portion of the principal amount of Securities of the series
that is convertible in accordance with the provisions of this Indenture, or the
method by which such portion shall be determined;

 

(11)                            whether the amount of payments of
principal of (and premium, if any) or interest, if any, on the Securities of
the series may be determined with reference to an index, formula or other
method (which index, formula or method may be based, without limitation, on one
or more currencies,  currency units,
composite currencies, commodities, equity indices or other indices), and the
manner in which such amounts shall be determined;

 

(12)                            whether the principal of (and premium, if
any) or interest, if any on or Additional Amounts, if any, on the Securities of
the series are to be payable, at the election of the Company or a Holder
thereof, in a currency or currencies, currency unit or units or composite
currency or currencies other than that in which such Securities are denominated
or stated to be payable, the period or periods within which, and the terms and
conditions upon which, such election may be made, and the time and manner of,
and identity of the exchange rate agent with responsibility for determining the
exchange rate between the currency or currencies, currency unit or units or
composite currency or currencies in which such Securities are denominated or
stated to be payable and the currency or currencies, currency unit or units or
composite currency or currencies in which such Securities are to be paid;

 

(13)                            provisions, if any, granting special
rights to the Holders of Securities of the series upon the occurrence of such
events as may be specified;

 

(14)                            any deletions from, modifications of or
additions to the Events of Default or covenants of the Company set forth in
this Indenture with respect to Securities of the series (whether or not such
Events of Default or covenants are consistent with the Events of Default or
covenants set forth herein);

 

(15)                            whether Securities of the series are to
be issuable as Registered Securities, Bearer Securities (with or without
coupons) or both, any restrictions applicable to the offer, sale or delivery of
Bearer Securities and the terms upon which Bearer Securities of the series may
be exchanged for Registered Securities of the series and vice versa (if
permitted by applicable laws and regulations), whether any Securities of the series
are to be issuable initially in temporary global form and whether any
Securities of the series are to be issuable in permanent global form with or
without coupons and, if so, whether beneficial owners of interests in any such
permanent global Security may exchange such interests for Securities of such
series and of like tenor of any authorized form and denomination and the
circumstances under which any such exchanges may occur, if other than in the
manner provided in Section 305, and, if Registered Securities of the
series are to be issuable as a global Security, the identity of the depositary
for such series;

 

(16)                            the date as of which any Bearer
Securities of the series and any temporary global Security representing
Outstanding Securities of the series shall be dated if other than the date of
original issuance of the first Security of the series to be issued;

 

(17)                            the Person to whom any interest on any
Registered Security of the series shall be payable, if other than the Person in
whose name that Security (or one or more 

 

17

 

Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, the manner in which, or the Person to whom, any interest on
any Bearer Security of the series shall be payable, if otherwise than upon
presentation and surrender of the coupons appertaining thereto as they
severally mature, and the extent to which, or the manner in which, any interest
payable on a temporary global Security on an Interest Payment Date will be paid
if other than in the manner provided in Section 304;

 

(18)                            the applicability, if any, of Sections
1402 and/or 1403 to the Securities of the series and any provisions in
modification of, in addition to or in lieu of any of the provisions of Article Fourteen;

 

(19)                            if the Securities of such series are to
be issuable in definitive form (whether upon original issue or upon exchange of
a temporary Security of such series) only upon receipt of certain certificates
or other documents or satisfaction of other conditions, then the form and/or
terms of such certificates,  documents or
conditions;

 

(20)                            if the Securities of the series are to be
issued upon the exercise of warrants, the time, manner and place for such
Securities to be authenticated and delivered;

 

(21)                            whether and under what circumstances the
Company will pay Additional Amounts as contemplated by Section 1007 on the
Securities of the series to any Holder who is not a United States person
(including any modification to the definition of such term) in respect of any
tax, assessment or governmental charge and, if so, whether the Company will
have the option to redeem such Securities rather than pay such Additional
Amounts (and the terms of any such option);

 

(22)                            the obligation, if any, of the Company to
permit the conversion of the Securities of such series into Common Shares or
Preferred Shares of the Company or other securities, as the case may be, and
the terms and conditions upon which such conversion shall be effected
(including, without limitation, the initial conversion price or rate, the
conversion period, any adjustment of the applicable conversion price and any
requirements relative to the reservation of such shares for purposes of
conversion);

 

(23)                            the terms and conditions, if any, upon
which payment of the Securities of such series shall be subordinated to the
Securities of another series or other indebtedness of the Company (including,
without limitation, indebtedness which ranks senior to such Securities; restrictions
on payments to Holders of such Securities while a default with respect to such
senior indebtedness is continuing; restrictions, if any, on payments to the
Holders of such Securities following an Event of Default; and any requirements
for Holders of such Securities to remit certain payments to the holders of such
senior indebtedness);

 

(24)                            if the Securities of the series are to be
guaranteed, the term and conditions of such guarantee;

 

(25)                            if other than the Trustee, the identity
of each Security Registrar and/or Paying Agent for the series; and

 

18

 

(26)                            any other terms of the series (which
terms shall not be inconsistent with the provisions of this Indenture).

 

All
Securities of any one series and the coupons appertaining to any Bearer
Securities of such series shall be substantially identical except, in the case
of Registered Securities, as to denominations and except as may otherwise be
provided in or pursuant to the Board Resolution establishing the series
(subject to Section 303) and set forth in an Officers’ Certificate or in
any indenture supplemental hereto. All Securities of any one series need not be
issued at the same time and, unless otherwise provided, a series may be
reopened, without the consent of the Holders, for issuances of additional
Securities of such series.

 

If any
of the terms of the Securities of any series are established by action taken
pursuant to one or more Board Resolutions, a copy of an appropriate record of
such action(s) shall be certified by the Secretary or an Assistant
Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers’ Certificate setting forth the terms of the Securities
of such series.

 

SECTION 3.02.  Denominations. The Securities of each series
shall be issuable in such denominations as shall be specified as contemplated
by Section 301. With respect to Securities of any series denominated in
Dollars, in the absence of any such provisions, the Registered Securities of
such series, other than Registered Securities issued in global form (which may
be of any denomination), shall be issuable in denominations of $1,000 and any
integral multiple thereof.

 

SECTION 3.03.  Execution, Authentication, Delivery and
Dating.  The Securities and any coupons
appertaining thereto shall be executed on behalf of the Company by its President
or one of its Vice Presidents, under its seal reproduced thereon, and attested
by its Secretary or one of its Assistant Secretaries. The signature of any of
these officers on the Securities and coupons may be manual or facsimile
signatures of the present or any future such authorized officer and may be
imprinted or otherwise reproduced on the Securities.

 

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

 

At any
time and from time to time after the execution and delivery of this Indenture,
the Company may deliver Securities of any series, together with any coupon
appertaining thereto, executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Securities; provided, however, that,
in connection with its original issuance, no Bearer Security shall be mailed or
otherwise delivered to any location in the United States; and provided further
that, unless otherwise specified with respect to any series of Securities
pursuant to Section 301, a Bearer Security may be delivered in connection
with its original issuance only if the Person entitled to receive such Bearer
Security shall have furnished a certificate in the form set forth in Exhibit A-1
to this Indenture or such 

 

19

 

other certificate as may be specified with respect to
any series of Securities pursuant to Section 301, dated no earlier than 15
days prior to the earlier of the date on which such Bearer Security is
delivered and the date on which any temporary Security first becomes
exchangeable for such Bearer Security in accordance with the terms of such
temporary Security and this Indenture. If any Security shall be represented by
a permanent global Bearer Security, then, for purposes of this Section and
Section 304, the notation of a beneficial owner’s interest therein upon
original issuance of such Security or upon exchange of a portion of a temporary
global Security shall be deemed to be delivery in connection with its original
issuance of such beneficial owner’s interest in such permanent global Security.
Except as permitted by Section 306, the Trustee shall not authenticate and
deliver any Bearer Security unless all appurtenant coupons for interest then
matured have been detached and cancelled. 
If all the Securities of any series are not to be issued at one time and
if the Board Resolution or supplemental indenture establishing such series
shall so permit, such Company Order may set forth procedures acceptable to the
Trustee for the issuance of such Securities and determining the terms of
particular Securities of such series, such as interest rate or formula,
maturity date, date of issuance and date from which interest shall accrue. In
authenticating such Securities,  and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to TIA
Sections 315(a) through 315(d)) shall be fully protected in relying upon,

 

(i)                                     an Opinion of Counsel stating that

 

(A)                              the form or forms of such Securities and
any coupons have been established in conformity with the provisions of this
Indenture;

 

(B)                                the terms of such Securities and any
coupons have been established in conformity with the provisions of this
Indenture; and

 

(C)                                such Securities,  together with any coupons appertaining
thereto, when completed by appropriate insertions and executed and delivered by
the Company to the Trustee for authentication in accordance with this
Indenture, authenticated and delivered by the Trustee in accordance with this
Indenture and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute legal, valid and binding
obligations of the Company, enforceable in accordance with their terms, subject
to applicable bankruptcy, insolvency, reorganization and other similar laws of
general applicability relating to or affecting the enforcement of creditors’
rights generally and to general equitable principles; and

 

(ii)                                  an Officers’  Certificate stating that all conditions
precedent provided for in this Indenture relating to the issuance of the
Securities have been complied with and that, to the best of the knowledge of
the signers of such certificate, no Event of Default with respect to any of the
Securities shall have occurred and be continuing.

 

If
such form or terms have been so established, the Trustee shall not be required
to authenticate such Securities if the issue of such Securities pursuant to
this Indenture will affect the Trustee’s 

 

20

 

own
rights, duties, obligations or immunities under the Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the
Trustee.

 

Notwithstanding
the provisions of Section 301 and of the preceding paragraph, if all the
Securities of any series are not to be issued at one time, it shall not be
necessary to deliver an Officers’ Certificate otherwise required pursuant to Section 301
or a Company Order, or an Opinion of Counsel or an Officers’ Certificate
otherwise required pursuant to the preceding paragraph at the time of issuance
of each Security of such series, but such order, opinion and certificates, with
appropriate modifications to cover such future issuances, shall be delivered at
or before the time of issuance of the first Security of such series.

 

Each
Registered Security shall be dated the date of its athentication and each
Bearer Security shall be dated as of the date specified a contemplated by Section 301.

 

No
Security or coupon shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security or
Security to which such coupon appertains a certificate of authentication
substantially in the form provided for herein duly executed by the Trustee by
manual signature of an authorized officer, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture. Notwithstanding the foregoing, if any Security
shall have been authenticated and delivered hereunder but never issued and sold
by the Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 309 together with a written statement
(which need not comply with Section 102 and need not be accompanied by an
Opinion of Counsel) stating that such Security has never been issued and sold
by the Company, for all purposes of this Indenture such Security shall be
deemed never to have been authenticated and delivered hereunder and shall never
be entitled to the benefits of this Indenture.

 

SECTION 3.04.  Temporary Securities. (a) Pending the
preparation of definitive Securities of any series, the Company may execute,
and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities which are printed, lithographed, 
typewritten,  mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Securities in lieu of which they are issued, in registered
form, or, if authorized, in bearer form with one or more coupons or without
coupons, and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities. In the case of
Securities of any series, such temporary Securities may be in global form.

 

Except
in the case of temporary Securities in global form (which shall be exchanged in
accordance with Section 304(b) or as otherwise provided in or
pursuant to a Board Resolution), if temporary Securities of any series are
issued, the Company will cause definitive Securities of that series to be
prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be
exchangeable for definitive Securities of such series upon surrender of the
temporary Securities of such series at the office or agency of the Company in a
Place of Payment for that series, without charge to the Holder. Upon surrender
for cancellation of any one or more temporary Securities of any series
(accompanied by any non-matured coupons appertaining thereto), the Company
shall execute 

 

21

 

and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Securities of the same
series of authorized denominations; provided, however, that no definitive
Bearer Security shall be delivered in exchange for a temporary Registered
Security; and provided further that a definitive Bearer Security shall be
delivered in exchange for a temporary Bearer Security only in compliance with
the conditions set forth in Section 303. 
Until so exchanged, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities of such series.

 

(b)                                 Unless otherwise provided in or pursuant
to a Board Resolution,  this Section 304(b) shall
govern the exchange of temporary Securities issued in global form other than
through the facilities of DTC. If any such temporary Security is issued in
global form, then such temporary global Security shall, unless otherwise
provided therein, be delivered to the London office of a depositary or common
depositary (the “Common Depositary”), for the benefit of Euroclear and CEDEL,
for credit to the respective accounts of the beneficial owners of such
Securities (or to such other accounts as they may direct).

 

Without
unnecessary delay but in any event not later than the date specified in, or
determined pursuant to the terms of, any such temporary global Security (the “Exchange
Date”), the Company shall deliver to the Trustee definitive Securities, in
aggregate principal amount equal to the principal amount of such temporary
global Security, executed by the Company. On or after the Exchange Date, such
temporary global Security shall be surrendered by the Common Depositary to the
Trustee, as the Company’s agent for such purpose, to be exchanged, in whole or
from time to time in part, for definitive Securities without charge, and the
Trustee shall authenticate and deliver, in exchange for each portion of such
temporary global Security, an equal aggregate principal amount of definitive
Securities of the same series of authorized denominations and of like tenor as
the portion of such temporary global Security to be exchanged. The definitive
Securities to be delivered in exchange for any such temporary global Security shall
be in bearer form, registered form, permanent global bearer form or permanent
global registered form, or any combination thereof, as specified as
contemplated by Section 301, and, if any combination thereof is so
specified, as requested by the beneficial owner thereof; provided, however,
that, unless otherwise specified in such temporary global Security, upon such
presentation by the Common Depositary, such temporary global Security is
accompanied by a certificate dated the Exchange Date or a subsequent date and
signed by Euroclear as to the portion of such temporary global Security held
for its account then to be exchanged and a certificate dated the Exchange Date
or a subsequent date and signed by CEDEL as to the portion of such temporary
global Security held for its account then to be exchanged, each in the form set
forth in Exhibit A-2 to this Indenture or in such other form as may be
established pursuant to Section 301; and provided further that definitive
Bearer Securities shall be delivered in exchange for a portion of a temporary
global Security only in compliance with the requirements of Section 303.

 

Unless
otherwise specified in such temporary global Security, the interest of a
beneficial owner of Securities of a series in a temporary global Security shall
be exchanged for definitive Securities of the same series and of like tenor
following the Exchange Date when the account holder instructs Euroclear or
CEDEL, as the case may be, to request such exchange on his behalf and delivers
to Euroclear or CEDEL, as the case may be, a certificate in the form set forth
in Exhibit A-1 to this Indenture (or in such other forms as may be
established pursuant to 

 

22

 

Section 301), dated no earlier than 15 days prior
to the Exchange Date, copies of which certificate shall be available from the
offices of Euroclear and CEDEL, the Trustee, any Authenticating Agent appointed
for such series of Securities and each Paying Agent. Unless otherwise specified
in such temporary global Security, any such exchange shall be made free of
charge to the beneficial owners of such temporary global Security, except that
a Person receiving definitive Securities must bear the cost of insurance,
postage, transportation and the like unless such Person takes delivery of such
definitive Securities in person at the offices of Euroclear or CEDEL.
Definitive Securities in bearer form to be delivered in exchange for any
portion of a temporary global Security shall be delivered only outside the
United States.

 

Until
exchanged in full as hereinabove provided, the temporary Securities of any
series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of the same series and of like tenor
authenticated and delivered hereunder, except that, unless otherwise specified
as contemplated by Section 301, interest payable on a temporary global
Security on an Interest Payment Date for Securities of such series occurring
prior to the applicable Exchange Date shall be payable to Euroclear and CEDEL
on such Interest Payment Date upon delivery by Euroclear and CEDEL to the
Trustee of a certificate or certificates in the form set forth in Exhibit A-2
to this Indenture (or in such other forms as may be established pursuant to Section 301),
for credit without further interest on or after such Interest Payment Date to
the respective accounts of persons who are the beneficial owners of such
temporary global Security on such Interest Payment Date and who have each
delivered to Euroclear or CEDEL, as the case may be, a certificate dated no
earlier than 15 days prior to the Interest Payment Date occurring prior to such
Exchange Date in the form set forth as Exhibit A-1 to this Indenture (or
in such other forms as may be established pursuant to Section 301).
Notwithstanding anything to the contrary herein contained, the certifications
made pursuant to this paragraph shall satisfy the certification requirements of
the preceding two paragraphs of this Section 304 (b) and of the third
paragraph of Section 303 of this Indenture and the interests of the
Persons who are the beneficial owners of a temporary global Security with
respect to which such certification was made will be exchanged for definitive
Securities of the same series and of like tenor on the Exchange Date or the
date of certification if such date occurs after the Exchange Date, without
further act or deed by such beneficial owners. Except as otherwise provided in
this paragraph, no payments of principal or interest owing with respect to a
beneficial interest in a temporary global Security will be made unless and
until such interest in such temporary global Security shall have been exchanged
for an interest in a definitive Security. Any interest so received by Euroclear
and CEDEL and not paid as herein provided shall be returned to the Trustee
prior to the expiration of two years after such Interest Payment Date in order
to be repaid to the Company.

 

SECTION 3.05.  Registration, 
Registration of Transfer and Exchange. The Company shall cause to be
kept at the Corporate Trust Office of the Trustee or in any office or agency of
the Company in a Place of Payment a register for each series of Securities (the
registers maintained in such office or in any such office or agency of the
Company in a Place of Payment being herein sometimes referred to collectively
as the “Security Register”) in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration of Registered
Securities and of transfers of Registered Securities. The Security Register
shall be in written form or any other form capable of being converted into
written form within a reasonable time. The Trustee, at its Corporate Trust
Office, is hereby initially appointed “Security Registrar” 

 

23

 

for the purpose of
registering Registered Securities and transfers of Registered Securities on
such Security Register as herein provided. 
In the event that the Trustee shall cease to be Security Registrar, it
shall have the right to examine the Security Register at all reasonable times.

 

Subject
to the provisions of this Section 305, upon surrender for registration of
transfer of any Registered Security of any series at any office or agency of
the Company in a Place of Payment for that series, the Company shall execute,
and the Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Registered Securities of the same
series, of any authorized denominations and of a like aggregate principal
amount, bearing a number not contemporaneously outstanding, and containing
identical terms and provisions.

 

Subject
to the provisions of this Section 305, at the option of the Holder,
Registered Securities of any series may be exchanged for other Registered
Securities of the same series, of any authorized denomination or denominations
and of a like aggregate principal amount, containing identical terms and
provisions, upon surrender of the Registered Securities to be exchanged at any
such office or agency. Whenever any such Registered Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Registered Securities which the Holder making the
exchange is entitled to receive. Unless otherwise specified with respect to any
series of Securities as contemplated by Section 301, Bearer Securities may
not be issued in exchange for Registered Securities.

 

If
(but only if) permitted by the applicable Board Resolution and (subject to Section 303)
set forth in the applicable Officers’ Certificate, or in any indenture
supplemental hereto, delivered as contemplated by Section 301, at the
option of the Holder, Bearer Securities of any series may be exchanged for
Registered Securities of the same series of any authorized denominations and of
a like aggregate principal amount and tenor, upon surrender of the Bearer
Securities to be exchanged at any such office or agency, with all unmatured
coupons and all matured coupons in default thereto appertaining. If the Holder
of a Bearer Security is unable to produce any such unmatured coupon or coupons
or matured coupon or coupons in default, any such permitted exchange may be
effected if the Bearer Securities are accompanied by payment in funds
acceptable to the Company in an amount equal to the face amount of such missing
coupon or coupons, or the surrender of such missing coupon or coupons may be
waived by the Company and the Trustee if there is furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless. If thereafter the Holder of such Security shall surrender to
any Paying Agent any such missing coupon in respect of which such a payment
shall have been made, such Holder shall be entitled to receive the amount of
such payment; provided, however, that, except as otherwise provided in Section 1002,
interest represented by coupons shall be payable only upon presentation and
surrender of those coupons at an office or agency located outside the United
States. Notwithstanding the foregoing, in case a Bearer Security of any series
is surrendered at any such office or agency in a permitted exchange for a
Registered Security of the same series and like tenor after the close of
business at such office or agency on (i) any Regular Record Date and
before the opening of business at such office or agency on the relevant
Interest Payment Date, or (ii) any Special Record Date and before the
opening of business at such office or agency on the related proposed date for
payment of Defaulted Interest, such Bearer Security shall be surrendered
without the coupon relating to such Interest Payment Date or proposed date for
payment, as the case may be, and interest or 

 

24

 

Defaulted Interest, as the case may be, will not be
payable on such Interest Payment Date or proposed date for payment, as the case
may be, in respect of the Registered Security issued in exchange for such
Bearer Security, but will be payable only to the Holder of such coupon when due
in accordance with the provisions of this Indenture. Whenever any Bearer
Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.

 

Notwithstanding
the foregoing, except as otherwise specified as contemplated by Section 301,
any permanent global Security shall be exchangeable only as provided in this
paragraph. If the depositary for any permanent global Security is DTC, then,
unless the terms of such global Security expressly permit such global Security
to be exchanged in whole or in part for definitive Securities, a global
Security may be transferred, in whole but not in part, only to a nominee of
DTC, or by a nominee of DTC to DTC, or to a successor to DTC for such global
Security selected or approved by the Company or to a nominee of such successor
to DTC. If at any time DTC notifies the Company that it is unwilling or unable
to continue as depositary for the applicable global Security or Securities or
if at any time DTC ceases to be a clearing agency registered under the
Securities Exchange Act of 1934, as amended, if so required by applicable law
or regulation, the Company shall appoint a successor depositary with respect to
such global Security or Securities. If (x) a successor depositary for such
global Security or Securities is not appointed by the Company within 90 days
after the Company receives such notice or becomes aware of such unwillingness,
inability or ineligibility, (y) an Event of Default has occurred and is
continuing and the beneficial owners representing a majority in principal
amount of the applicable series of Securities represented by such global
Security or Securities advise DTC to cease acting as depositary for such global
Security or Securities or (z) the Company, in its sole discretion,
determines at any time that all Outstanding Securities (but not less than all)
of any series issued or issuable in the form of one or more global Securities
shall no longer be represented by such global Security or Securities, then the
Company shall execute, and the Trustee shall authenticate and deliver,
definitive Securities of like series, rank, tenor and terms in definitive form
in an aggregate principal amount equal to the principal amount of such global
Security or Securities. If any beneficial owner of an interest in a permanent
global Security is otherwise entitled to exchange such interest for Securities
of such series and of like tenor and principal amount of another authorized
form and denomination, as specified as contemplated by Section 301 and
provided that any applicable notice provided in the permanent global Security
shall have been given, then without unnecessary delay but in any event no later
than the earliest date on which such interest may be so exchanged, the Company
shall execute, and the Trustee shall authenticate and deliver, definitive
Securities in aggregate principal amount equal to the principal amount of such
beneficial owner’s interest in such permanent global Security.

 

On or
after the earliest date on which such interests may be so exchanged, such
permanent global Security shall be surrendered for exchange by DTC or such
other depositary as shall be specified in the Company Order with respect
thereto to the Trustee, as the Company’s agent for such purpose; provided,
however, that no such exchanges may occur during a period beginning at the
opening of business 15 days before any selection of Securities to be redeemed
and ending on the relevant Redemption Date if the Security for which exchange
is requested may be among those selected for redemption; and provided further
that no Bearer Security delivered in exchange for a portion of a permanent
global Security shall be mailed or otherwise delivered to any location in the
United States. If a Registered Security is issued in exchange for any portion 

 

25

 

of a permanent global Security after the close of
business at the office or agency where such exchange occurs on (i) any
Regular Record Date and before the opening of business at such office or agency
on the relevant Interest Payment Date, or (ii) any Special Record Date and
before the opening of business at such office or agency on the related proposed
date for payment of Defaulted Interest, interest or Defaulted Interest, as the
case may be, will not be payable on such Interest Payment Date or proposed date
for payment, as the case may be, in respect of such Registered Security, but
will be payable on such Interest Payment Date or proposed date for payment, as
the case may be, only to the Person to whom interest in respect of such portion
or such permanent global Security is payable in accordance with the provisions
of this Indenture.

 

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

 

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

 

No
service charge shall be made for any registration of transfer or exchange of
Securities, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Securities, other than exchanges
pursuant to Section 304, 906, 1107 or 1305 not involving any transfer.

 

The
Company or the Trustee, as applicable, shall not be required (i) to issue,
register the transfer of or exchange any Security if such Security may be among
those selected for redemption during a period beginning at the opening of
business 15 days before selection of the Securities to be redeemed under Section 1103
and ending at the close of business on (A) if such Securities are issuable
only as Registered Securities, the day of the mailing of the relevant notice of
redemption and (B) if such Securities are issuable as Bearer Securities,
the day of the first publication of the relevant notice of redemption or, if
such Securities are also issuable as Registered Securities and there is no
publication, the mailing of the relevant notice of redemption, or (ii) to
register the transfer of or exchange any Registered Security so selected for
redemption in whole or in part, except, in the case of any Registered Security
to be redeemed in part, the portion thereof not to be redeemed, or (iii) to
exchange any Bearer Security so selected for redemption except that such a
Bearer Security may be exchanged for a Registered Security of that series and
of like tenor;  provided that such
Registered Security shall be simultaneously surrendered for redemption, or (iv) to
issue, register the transfer of or exchange any Security which has been
surrendered for repayment at the option of the Holder, except that portion, if
any, of such Security which is not to be so repaid.

 

SECTION 3.06.  Mutilated, Destroyed, Lost and Stolen
Securities. If any mutilated Security or a Security with a mutilated coupon
appertaining to it is surrendered to the Trustee or the Company, together with,
in proper cases, such security or indemnity as may be required by the Company
or the Trustee to save each of them or any agent of either of them harmless,
the 

 

26

 

Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
new Security of the same series and principal amount, containing identical
terms and provisions and bearing a number not contemporaneously outstanding,
with coupons corresponding to the coupons, if any, appertaining to the
surrendered Security.

 

If
there shall be delivered to the Company and to the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security or coupon,
and (ii) such security or indemnity as may be required by them to save each
of them and any agent of either of them harmless, then, in the absence of
written notice to the Company or the Trustee that such Security or coupon has
been acquired by a bona fide purchaser, the Company shall execute and upon its
request the Trustee shall authenticate and deliver, in lieu of any such
destroyed, lost or stolen Security or in exchange for the Security to which a
destroyed, lost or stolen coupon appertains (with all appurtenant coupons not
destroyed, lost or stolen), a new Security of the same series and principal
amount, containing identical terms and provisions and bearing a number not
contemporaneously outstanding, with coupons corresponding to the coupons, if
any, appertaining to such destroyed, lost or stolen Security or to the Security
to which such destroyed, lost or stolen coupon appertains.

 

Notwithstanding
the provisions of the previous two paragraphs, in case any such mutilated,
destroyed, lost or stolen Security or coupon has become or is about to become
due and payable, the Company in its discretion may, instead of issuing a new
Security, with coupons corresponding to the coupons, if any, appertaining to
such destroyed, lost or stolen Security or to the Security to which such
destroyed, lost or stolen coupon appertains, pay such Security or coupon;
provided, however, that payment of principal of (and premium, if any), any
interest on and any Additional Amounts with respect to, Bearer Securities
shall, except as otherwise provided in Section 1002, be payable only at an
office or agency located outside the United States and, unless otherwise
specified as contemplated by Section 301, any interest on Bearer Securities
shall be payable only upon presentation and surrender of the coupons
appertaining thereto.

 

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

 

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

 

The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities or coupons.

 

27

 

SECTION 3.07.  Payment of Interest; Interest Rights
Preserved. Except as otherwise specified with respect to a series of Securities
in accordance with the provisions of Section 301, interest on any
Registered Security that is payable, and is punctually paid or duly provided
for, on any Interest Payment Date shall be paid to the Person in whose name
that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest at the office or
agency of the Company maintained for such purpose pursuant to Section 1002;
provided, however, that each installment of interest on any Registered Security
may at the Company’s option be paid by (i) mailing a check for such
interest, payable to or upon the written order of the Person entitled thereto
pursuant to Section 308, to the address of such Person as it appears on
the Security Register or (ii) transfer to an account maintained by the payee
located inside the United States.

 

Unless
otherwise provided as contemplated by Section 301 with respect to the
Securities of any series, payment of interest may be made, in the case of a
Bearer Security, by transfer to an account maintained by the payee with a bank
located outside the United States.

 

Unless
otherwise provided as contemplated by Section 301, every permanent global
Security will provide that interest, if any, payable on any Interest Payment
Date will be paid to DTC, Euroclear and/or CEDEL, as the case may be, with
respect to that portion of such permanent global Security held for its account
by Cede & Co. or the Common Depositary, as the case may be, for the
purpose of permitting such party to credit the interest received by it in
respect of such permanent global Security to the accounts of the beneficial
owners thereof.

 

In
case a Bearer Security of any series is surrendered in exchange for a
Registered Security of such series after the close of business (at an office or
agency in a Place of Payment for such series) on any Regular Record Date and
before the opening of business (at such office or agency) on the next
succeeding Interest Payment Date, such Bearer Security shall be surrendered
without the coupon relating to such Interest Payment Date and interest will not
be payable on such Interest Payment Date in respect of the Registered Security
issued in exchange for such Bearer Security, but will be payable only to the
Holder of such coupon when due in accordance with the provisions of this
Indenture.

 

Except
as otherwise specified with respect to a series of Securities in accordance
with the provisions of Section 301, any interest on any Registered
Security of any series that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the registered Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in clause (1) or (2) below:

 

(1)                                  The Company may elect to make payment of
any Defaulted Interest to the Persons in whose names the Registered Securities
of such series (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each
Registered Security of such series and the date of the proposed payment (which
shall not be less than 20 days after such notice is received by the Trustee),
and at the same time the Company shall deposit with the Trustee an amount of
money in the currency or currencies, currency unit or units

 

28

 

or composite
currency or currencies in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities
of such series) 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 on or prior to the date of the proposed payment, such money
when deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this clause provided. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest which
shall not be more than 15 days and not less than 10 days prior to the date of
the proposed payment and not less than 10 days after the receipt by the Trustee
of the notice of the proposed payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest and
the Special Record Date therefor to be mailed, first-class postage prepaid, to
each Holder of Registered Securities of such series at his address as it
appears in the Security Register not less than 10 days prior to such Special
Record Date. The Trustee may, in its discretion, in the name and at the expense
of the Company, cause a similar notice to be published at least once in an
Authorized Newspaper in each Place of Payment, but such publications shall not
be a condition precedent to the establishment of such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been mailed as aforesaid, such Defaulted Interest
shall be paid to the Persons in whose names the Registered Securities of such
series (or their respective Predecessor Securities) are registered at the close
of business on such Special Record Date and shall no longer payable pursuant to
the following clause (2). In case a Bearer Security of any series is
surrendered for transfer or exchange at the office or agency in a Place of
Payment for such series after the close of business at such office or agency on
any Special Record Date and before the opening of business at such office or
agency on the related proposed date for payment of Defaulted Interest, such
Bearer Security shall be surrendered without the coupon relating to such
proposed date of payment and Defaulted Interest will not be payable on such
proposed date of payment in respect of the Registered Security issued in exchange
for such Bearer Security, but will be payable only to the Holder of such coupon
when due in accordance with the provisions of this Indenture.

 

(2)                                  The Company may make payment of any
Defaulted Interest on the Registered Securities of any series in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which such Securities may be listed, and upon such notice as may be required
by such exchange, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee.

 

Subject
to the foregoing provisions of this Section and Section 305, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

 

SECTION 3.08.  Persons Deemed Owners. Prior to due
presentment of a Registered Security for registration of transfer, the Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name such Registered Security is registered as the owner of such Security
for the purpose of receiving payment of principal of (and premium, if any), and
(subject to Sections 305 and 307) interest on, such Registered Security and for
all other 

 

29

 

purposes
whatsoever, whether or not such Registered Security is overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

 

Title
to any Bearer Security and any coupons appertaining thereto shall pass by
delivery. The Company, the Trustee and any agent of the Company or the Trustee
may treat the Holder of any Bearer Security and the Holder of any coupon as the
absolute owner of such Security or coupon for the purpose of receiving payment
thereof or on account thereof and for all other purposes whatsoever, whether or
not such Security or coupon is overdue, and neither the Company, the Trustee
nor any agent of the Company or the Trustee shall be affected by notice to the
contrary.

 

None
of the Company, the Trustee, any Paying Agent or the Security Registrar will
have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests of a Security in
global form or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interests.

 

Notwithstanding
the foregoing, with respect to any global Security, 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 any depositary, as a Holder, with respect to such global Security
or impair, as between such depositary and owners of beneficial interests in
such global Security, the operation of customary practices governing the
exercise of the rights of such depositary (or its nominee) as Holder of such
global Security.

 

SECTION 3.09.  Cancellation. 
All Securities and coupons surrendered for payment, redemption,
repayment at the option of the Holder, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person
other than the Trustee, be delivered to the Trustee, and any such Securities
and coupons and Securities and coupons surrendered directly to the Trustee for
any such purpose shall be promptly cancelled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. If the Company shall so
acquire any of the Securities, however, such acquisition shall not operate as a
redemption or satisfaction of the indebtedness represented by such Securities
unless and until the same are surrendered to the Trustee for cancellation.  No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Indenture. Cancelled Securities and
coupons held by the Trustee shall be destroyed by the Trustee and the Trustee
shall deliver a certificate of such destruction to the Company, unless by a
Company Order the Company directs their return to it.

 

SECTION 3.10.  Computation of Interest. Except as otherwise
specified as contemplated by Section 301 with respect to Securities of any
series, interest on the Securities of each series shall be computed on the
basis of a 360-day year consisting of twelve 30-day months.

 

30

 

ARTICLE FOUR

SATISFACTION AND
DISCHARGE

 

SECTION 4.01.  Satisfaction and Discharge of Indenture. This
Indenture shall upon Company Request cease to be of further effect with respect
to any series of Securities specified in such Company Request (except as to any
surviving rights of registration of transfer or exchange of Securities of such
series herein expressly provided for and any right to receive Additional
Amounts, as provided in Section 1007), and the Trustee, upon receipt of a
Company Order, and at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture as to
such series when

 

(1)                                  either

 

(A)                              all Securities of such series theretofore
authenticated and delivered and all coupons, if any, appertaining thereto
(other than (i) coupons appertaining to Bearer Securities surrendered for
exchange for Registered Securities and maturing after such exchange, whose
surrender is not required or has been waived as provided in Section 305, (ii) Securities
and coupons of such series which have been destroyed, lost or stolen and which
have been replaced or paid as provided in Section 306, (iii) coupons
appertaining to Securities called for redemption and maturing after the
relevant Redemption Date, whose surrender has been waived as provided in Section 1106,
and (iv) Securities and coupons of such series for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 1003) have been delivered to the Trustee for
cancellation; or

 

(B)                                all Securities of such series and, in the
case of (i) or (ii) below, any coupons appertaining thereto,  not theretofore delivered to the Trustee for
cancellation

 

(i)                                     have become due and payable, or

 

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

 

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

 

and the Company, in the
case of (i), (ii) or (iii) above, has irrevocably deposited or caused
to be deposited with the Trustee as funds in trust for such purpose an amount
in the currency or currencies, currency unit or units or composite currency or
currencies in which the Securities of such series are payable, sufficient to
pay and discharge the entire indebtedness on such Securities and such coupons
not 

 

31

 

theretofore delivered to
the Trustee for cancellation, for principal (and premium, if any) and
interest,  and any Additional Amounts
with respect thereto, to the date of such deposit (in the case of Securities
which have become due and payable) or to the Stated Maturity or Redemption
Date, as the case may be;

 

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

 

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

 

The
obligations of the Company to the Trustee and any predecessor Trustee under Section 606,
the obligations of the Company to any Authenticating Agent under Section 611
and, if money shall have been deposited with and held by the Trustee pursuant
to subclause (B) of clause (1) of this Section, the obligations of the Trustee
under Section 402 and the last paragraph of Section 1003 shall
survive the satisfaction and discharge of this Indenture.

 

SECTION 4.02.  Application of Trust Funds. Subject to the
provisions of the last paragraph of Section 1003, all money deposited with
the Trustee pursuant to Section 401 shall be held in trust and applied by
it, in accordance with the provisions of the Securities, the coupons and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any), and any interest and Additional Amounts for whose payment such money has
been deposited with or received by the Trustee, but such money need not be
segregated from other funds except to the extent required by law.

 

ARTICLE FIVE

REMEDIES

 

SECTION 5.01.  Events of Default. “Event of Default”,
wherever used herein with respect to any particular series of Securities, means
any one of the following events (whatever the reason for such Event of Default
and whether or not it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

 

(1)                                  default in the payment of any interest
upon or any Additional Amounts payable in respect of any Security of that
series or of any coupon appertaining thereto, when such interest, Additional
Amounts or coupon becomes due and payable, and continuance of such default for
a period o 30 days; or

 

(2)                                  default in the payment of the principal
of (or premium, if any, on) any Security of that series when it becomes due and
payable at its Maturity; or

 

(3)                                  default in the deposit of any sinking
fund payment, when and as due by the terms of any Security of that series; or

 

32

 

(4)                                  default in the performance of, or breach
of, any covenant of the Company in this Indenture (other than a covenant a default
in whose performance or whose breach is elsewhere in this Section specifically
dealt with or which has been expressly included in this Indenture solely for
the benefit of a series of Securities other than that series), and continuance
of such default or breach for a period of 60 days after there has been given,
by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least a majority in principal
amount of the Outstanding Securities of that series a written notice specifying
such default or breach and requiring it to be remedied and stating that such
notice is a “Notice of Default” hereunder; or

 

(5)                                  a default under any bond, debenture, note
or other evidence of indebtedness of the Company, or under any mortgage,
indenture or other instrument of the Company (including a default with respect
to Securities of any series other than that series) under which there may be
issued or by which there may be secured any indebtedness of the Company (or by
any Subsidiary, the repayment of which the Company has guaranteed or for which
the Company is directly responsible or liable as obligor or guarantor), whether
such indebtedness now exists or shall hereafter be created, which default shall
constitute a failure to pay an aggregate principal amount exceeding $25,000,000
of such indebtedness when due and payable after the expiration of any
applicable grace period with respect thereto and shall have resulted in such
indebtedness in an aggregate principal amount exceeding $25,000,000 becoming or
being declared due and payable prior to the date on which it would otherwise
have become due and payable, without such indebtedness having been discharged,
or such acceleration having been rescinded or annulled, within a period of 10
days after there shall have been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at
least a majority in principal amount of the Outstanding Securities of that
series a written notice specifying such default and requiring the Company to
cause such indebtedness to be discharged or cause such acceleration to be
rescinded or annulled and stating that such notice is a “Notice of Default”
hereunder; or

 

(6)                                  the Company or any Significant Subsidiary
pursuant to or within the meaning of any Bankruptcy Law:

 

(A)                              commences a voluntary case,

 

(B)                                consents to the entry of an order for
relief against it in an involuntary case,

 

(C)                                consents to the appointment of a
Custodian of it or for all or substantially all of its property, or

 

(D)                               makes a general assignment for the
benefit of its creditors; or

 

(7)                                  a court of competent jurisdiction enters
an order or decree under any Bankruptcy Law that:

 

(A)                               is for relief against the Company or any
Significant Subsidiary in an involuntary case,

 

33

 

(B)                                appoints a Custodian of the Company or
any Significant Subsidiary or for all or substantially all of either of its
property, or

 

(C)                                orders the liquidation of the Company or
any Significant Subsidiary, and the order or decree remains unstayed and in
effect for 90 days; or

 

(8)                                  any other Event of Default provided with
respect to Securities of that series.

 

As
used in this Section 501, the term “Bankruptcy Law” means Title 11, U.S.
Code or any similar Federal or State law for the relief of debtors and the term
“Custodian” means any receiver, trustee, assignee, liquidator or other similar
official under any Bankruptcy Law.

 

SECTION 5.02.  Acceleration of Maturity; Rescission and
Annulment. If an Event of Default with respect to Securities of any series at
the time Outstanding occurs and is continuing (other than an Event of Default
described in Section 501(6) or 501(7)), then and in every such case
the Trustee or the Holders of not less than a majority in principal amount of
the Outstanding Securities of that series may declare the principal (or, if any
Securities are Original Issue Discount Securities or Indexed Securities, such
portion of the principal as may be specified in the terms thereof) of all the
Securities of that series to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by the Holders), and upon
any such declaration such principal or specified portion thereof shall become
immediately due and payable. If an Event of Default described in Section 501(6) or
501(7) with respect to any series of Securities at the time outstanding
occurs, the principal amount of all of the Securities of that series (or, in the
case of any such Original Issue Discount Securities or Indexed Securities, such
portion of the principal as may be specified in the terms thereof) will
automatically, and without any action by the Trustee or any Holder thereof,
become immediately due and payable.

 

At any
time after such a declaration of acceleration with respect to Securities of any
series has been made and before a judgment or decree for payment of the money
due has been obtained by the Trustee as hereinafter in this Article provided,
the Holders of a majority in principal amount of the Outstanding Securities of
that series, by written notice to the Company and the Trustee, may rescind and
annul such declaration and its consequences if:

 

(1)                                  the Company has paid or deposited with
the Trustee a sum sufficient to pay in the currency, currency unit or composite
currency in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such
series):

 

(A)                              all overdue installments of interest on
and any Additional Amounts payable in respect of all Outstanding Securities of
that series and any related coupons,

 

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

 

34

 

(C)                                to the extent that payment of such
interest is lawful, interest upon overdue installments of interest and any
Additional Amounts at the rate or rates borne by or provided for in such
Securities, and

 

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

 

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

 

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

 

SECTION 5.03.  Collection of Indebtedness and Suits for
Enforcement by Trustee. The Company covenants that if:

 

(1)                                  default is made in the payment of any
installment of interest or Additional Amounts, if any, on any Security of any
series and any related coupon when such interest or Additional Amount becomes
due and payable and such default continues for a period of 30 days, or

 

(2)                                  default is made in the payment of the
principal of (or premium, if any, on) any Security of any series at its
Maturity, then the Company will, upon demand of the Trustee, pay to the
Trustee, for the benefit of the Holders of such Securities of such series and
coupons, the whole amount then due and payable on such Securities and coupons
for principal (and premium, if any) and interest and Additional Amounts
thereon, with interest upon any overdue principal (and premium, if any) and, to
the extent that payment of such interest shall be legally enforceable, upon any
overdue installments of interest or Additional Amounts thereon, if any, at the
rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

 

If the
Company fails to pay such amounts forthwith upon such demand, the Trustee, in
its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the sums so due and unpaid, and may prosecute
such proceeding to judgment or final decree, and may enforce the same against
the Company or any other obligor upon such Securities of such series and
collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Company or any other obligor upon such Securities
of such series, wherever situated.

 

If an
Event of Default with respect to Securities of any series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders of Securities of such series and any
related coupons by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, 

 

35

 

whether for the specific enforcement of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy.

 

SECTION 5.04.  Trustee May File Proofs of Claim. In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization,  arrangement,  adjustment, 
composition or other judicial proceeding relative to the Company or any
other obligor upon the Securities or the property of the Company or of such
other obligor or their creditors, the Trustee (irrespective of whether the
principal of the Securities of any series shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether
the Trustee shall have made any demand on the Company for the payment of
overdue principal of, or premium, if any, or interest on, the Securities) shall
be entitled and empowered, by intervention in such proceeding or otherwise:

 

(i)                                     to file and prove a claim for the whole
amount, or such lesser amount as may be provided for in the Securities of such
series, of principal (and premium, if any) and interest and Additional Amount,
if any, owing and unpaid in respect of the Securities and to file such 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 of the Holders allowed in such judicial proceeding, and

 

(ii)                                  to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the
same;

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator (or other
similar official) in any such judicial proceeding is hereby authorized by each
Holder of Securities of such series and coupons to make such payments to the
Trustee, and in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it
for the reasonable compensation, expenses, disbursements and advances of the
Trustee and any predecessor Trustee, their agents and counsel, and any other
amounts due the Trustee or any predecessor Trustee under Section 606.

 

Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder of a Security or coupon
any plan of reorganization, arrangement, adjustment or composition affecting
the Securities or coupons or the rights of any Holder thereof, or to authorize
the Trustee to vote in respect of the claim of any Holder of a Security or
coupon in any such proceeding.

 

SECTION 5.05.  Trustee May Enforce Claims Without
Possession of Securities or Coupons. All rights of action and claims under this
Indenture or any of the Securities or coupons may be prosecuted and enforced by
the Trustee without the possession of any of the Securities or coupons or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders of
Securities and coupons in respect of which such judgment has been recovered.

 

36

 

SECTION 5.06.  Application of Money Collected.  Any money collected by the Trustee pursuant
to this Article shall be applied in the following order, at the date or
dates fixed by the Trustee and, in case of the distribution of such money on
account of principal (or premium, if any) or interest and any Additional
Amounts, upon presentation of the Securities or coupons, or both, as the case
may be, and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:

 

FIRST: To the payment of all amounts due to the Trustee and any
predecessor Trustee under Section 606;

 

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

 

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

 

SECTION 5.07.  Limitation on Suits. No Holder of any
Security of any series or any related coupon shall have any right to institute
any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

 

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

 

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

 

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

 

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

 

(5)                                  no direction inconsistent with such
written request has been given to the Trustee during such 60-day period by the
Holders of a majority in principal amount of the Outstanding Securities of that
series; it being understood and intended that no one or more of such Holders
shall have any right in any manner whatever by virtue of, or by availing of,
any provision of this Indenture to affect, disturb or prejudice the rights of
any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all such Holders.

 

SECTION 5.08.  Unconditional Right of Holders to Receive
Principal, Premium, if any, Interest and Additional Amounts. Notwithstanding
any other provision in this Indenture, the 

 

37

 

Holder of any
Security or coupon shall have the right which is absolute and unconditional to
receive payment of the principal of (and premium, if any) and (subject to
Sections 305 and 307) interest on, and any Additional Amounts in respect of,
such Security or payment of such coupon on the respective due dates expressed
in such Security or coupon (or, in the case of redemption, on the Redemption
Date) and to institute suit for the enforcement of any such payment, and such
rights shall not be impaired without the consent of such Holder.

 

SECTION 5.09.  Restoration of Rights and Remedies. If the
Trustee or any Holder of a Security or coupon has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case the Company, the
Trustee and the Holders of Securities and coupons shall, subject to any
determination in such proceeding, be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been
instituted.

 

SECTION 5.10.  Rights and Remedies Cumulative.  Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities
or coupons in the last paragraph of Section 306, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders of Securities or
coupons is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

 

SECTION 5.11.  Delay or Omission Not Waiver. No delay or
omission of the Trustee or of any Holder of any Security or coupon to exercise
any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by
law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders of
Securities or coupons, as the case may be.

 

SECTION 5.12.  Control by Holders of Securities. The Holders
of not less than a majority in principal amount of the Outstanding Securities
of any series shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee with respect to the Securities of
such series; provided that

 

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

 

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

 

(3)                                  the Trustee need not take any action
which might expose it to personal liability or be unduly prejudicial to the
Holders of Securities of such series not joining therein.

 

38

 

SECTION 5.13.  Waiver of Past Defaults. The Holders of not
less than a majority in principal amount of the Outstanding Securities of any
series may on behalf of the Holders of all the Securities of such series and
any related coupons waive any past default hereunder with respect to such
series and its consequences, except a default

 

(1)           in the payment of
the principal of (or premium, if any) or interest on or Additional Amounts
payable in respect of any Security of such series or any related coupons, or

 

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

 

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

 

SECTION 5.14.  Waiver of Usury, Stay or Extension Laws. The
Company covenants (to the extent that it may lawfully do so) that it will not
at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any usury, stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

 

SECTION 5.15.  Undertaking for Costs. All parties to this
Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section shall
not apply to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than a majority in
principal amount of the Outstanding Securities, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of (or premium,
if any) or interest on any Security on or after the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date).

 

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 6.01.  Notice of Defaults. Within 90 days after the
occurrence of any default hereunder with respect to the Securities of any
series, the Trustee shall transmit in the manner and to the extent provided in
TIA Section 313(c), notice of such default hereunder known to the 

 

39

 

Trustee, unless
such default shall have been cured or waived; provided, however, that, except
in the case of a default in the payment of the principal of (or premium, if
any) or interest on or any Additional Amounts or sinking fund installment with
respect to the Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as Responsible Officers of the Trustee
in good faith determine that the withholding of such notice is in the interest
of the Holders of the Securities and coupons of such series; and provided
further that in the case of any default or breach of the character specified in
Section 501(4) with respect to the Securities and coupons of such
series, no such notice to Holders shall be given until at least 60 days after
the occurrence thereof.  For the purpose
of this Section, the term “default” means any event which is, or after notice
or lapse of time or both would become, an Event of Default with respect to the
Securities of such series.

 

SECTION 6.02.  Certain Rights of Trustee. Subject to the
provisions of TIA Section 315(a) through 315(d):

 

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

 

(2)           any request or
direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or Company Order (other than delivery of any Security, together
with any coupons appertaining thereto, to the Trustee for authentication and
delivery pursuant to Section 303 which shall be sufficiently evidenced as
provided therein) and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;

 

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

 

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

 

(5)           the Trustee shall be
under no obligation to exercise any of the rights or powers vested in it by
this Indenture at the request or direction of any of the Holders of Securities
of any series or any related coupons pursuant to this Indenture, unless such Holders
shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction;

 

(6)           the Trustee shall
not be bound to make any investigation  into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, coupon or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or 

 

40

 

investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney;

 

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

 

(8)           the Trustee shall
not be liable for any action taken, suffered or omitted by it in good faith and
reasonably believed by it to be authorized or within the discretion or rights
or powers conferred upon it by this Indenture.

 

The
Trustee shall not be required to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers.

 

SECTION 6.03.  Not Responsible for Recitals or Issuance of
Securities. The recitals contained herein and in the Securities, except the
Trustee’s certificate of authentication, and in any coupons shall be taken as
the statements of the Company, and neither the Trustee nor any Authenticating
Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities
and  perform  its 
obligations  hereunder.  Neither the Trustee nor the Authenticating
Agent shall be accountable for the use or application by the Company of
Securities or the proceeds thereof.

 

SECTION 6.04.  May Hold Securities. The Trustee, any
Paying Agent, Security Registrar, Authenticating Agent or any other agent of
the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities and coupons and, subject to TIA Sections 310(b) and
311, may otherwise deal with the Company with the same rights it would have if
it were not Trustee, Paying Agent, Security Registrar, Authenticating Agent or
such other agent.

 

SECTION 6.05.  Money Held in Trust. Money held by the
Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for
interest on any money received by it hereunder except as otherwise agreed with
the Company.

 

SECTION 6.06.  Compensation and Reimbursement. The Company
agrees:

 

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

 

(2)           except as
otherwise  expressly  provided herein, to reimburse each of the
Trustee and any predecessor Trustee upon its request for all reasonable
expenses,  disbursements and advances
incurred or made by the Trustee in accordance with any provision of this
Indenture (including the reasonable compensation and the expenses and
disbursements of its agents and 

 

41

 

counsel), except
any such expense, disbursement or advance as may be attributable to its
negligence or bad faith; and

 

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

 

When
the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 501(6) or Section 501(7), the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

 

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

 

The
provisions of this Section shall survive the termination of this
Indenture.

 

SECTION 6.07.  Corporate 
Trustee  Required;  Eligibility; Conflicting Interests. There
shall at all times be a Trustee hereunder which shall be eligible to act as
Trustee under TIA Section 310(a)(1) and shall have a combined capital
and surplus of at least $50,000,000. If such corporation publishes reports of
condition at least annually, pursuant to law or the requirements of Federal,
state, Territorial or District of Columbia supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section,
it shall resign immediately in the manner and with the effect hereinafter
specified in this Article.

 

SECTION 6.08.  Resignation 
and Removal;  Appointment  of Successor. (a) No resignation or
removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article shall become effective until the acceptance of appointment by
the successor Trustee in accordance with the applicable requirements of Section 609.

 

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

 

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

 

42

 

(d)           If at any time:

 

(1)           the Trustee shall
fail to comply with the provisions of TIA Section 310(b) after
written request therefor by the Company or by any Holder of a Security who has
been a bona fide Holder of a Security for at least six months, or

 

(2)           the Trustee shall
cease to be eligible under Section 607(a) and shall fail to resign
after written request therefor by the Company or by any Holder of a Security
who has been a bona fide Holder of a Security for at least six months, or

 

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

 

then,
in any such case, (i) the Company by or pursuant to a Board Resolution may
remove the Trustee and appoint a successor Trustee with respect to all
Securities, or (ii) subject to TIA Section 315(e), any Holder of a
Security who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

 

(e)           If the Trustee shall resign, be
removed or become incapable of acting, or if a vacancy shall occur in the
office of Trustee for any reason with respect to the Securities of one or more
series, the Company, by or pursuant to a Board Resolution, shall promptly
appoint a successor Trustee or Trustees with respect to the Securities of that
or those series (it being understood that any such successor Trustee may be
appointed with respect to the Securities of one or more or all of such series
and that at any time there shall be only one Trustee with respect to the
Securities of any particular series). 
If, within one year after such resignation, removal or incapability, or
the occurrence of such vacancy, a successor Trustee with respect to the
Securities of any series shall be appointed by Act of the Holders of a majority
in principal amount of the Outstanding Securities of such series delivered to
the Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment, become the successor Trustee
with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with
respect to the Securities of any series shall have been so appointed by the
Company or the Holders of Securities and accepted appointment in the manner
hereinafter provided any Holder of a Security who has been a bona fide Holder
of a Security of such series for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor Trustee with respect to Securities of such
series.

 

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

 

43

 

SECTION 6.09.
 Acceptance of Appointment by Successor. (a) In
case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee shall execute, acknowledge and deliver
to the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, upon request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all
the rights, powers and trusts of the retiring Trustee, and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder, subject nevertheless to its claim, if any,
provided for in Section 606.

 

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

 

(c)           Upon request of any such successor
Trustee, the Company shall execute any and all instruments for more fully and
certainly vesting in, and confirming to such successor Trustee all such rights,
powers and trusts referred to in paragraph (a) or (b) of this
Section, as the case may be.

 

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

 

44

 

SECTION 6.10.  Merger, Conversion, Consolidation or
Succession to Business. Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder; provided such corporation shall be otherwise qualified and eligible
under this Article, without the execution or filing of any paper or any further
act on the part of any of the parties hereto. In case any Securities or coupons
shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
or coupons so authenticated with the same effect as if such successor Trustee
had itself authenticated such Securities or coupons. In case any Securities or
coupons shall not have been authenticated by such predecessor Trustee, any such
successor Trustee may authenticate and deliver such Securities or coupons, in
either its own name or that of its predecessor Trustee, with the full force and
effect which this Indenture provides for the certificate of authentication of
the Trustee.

 

SECTION 6.11.  Appointment of Authentication Agent. At any
time when any of the Securities remain Outstanding, the Trustee may appoint an
Authenticating Agent or Agents with respect to one or more series of Securities
which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon exchange, registration of transfer or
partial redemption or repayment thereof, and Securities so authenticated shall
be entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee hereunder. Any such appointment
shall be evidenced by an instrument in writing signed by a Responsible Officer
of the Trustee, a copy of which instrument shall be promptly furnished to the
Company. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Company and, except as may
other wise be provided pursuant to Section 301, shall at all times be a
bank or trust company or corporation organized and doing business and in good
standing under the laws of the United States of America or of any State or the
District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by federal or state authorities. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or the requirements of the aforesaid supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. In case at any
time an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

 

Any
corporation into which an Authenticating Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger,  conversion or  consolidation 
to which such Authenticating Agent shall be a party, or any corporation
succeeding to the corporate agency or corporate trust business of an Authenticating
Agent, shall continue to be an Authenticating Agent, provided such corporation
shall be otherwise eligible 

 

45

 

under this Section, without the execution or filing of
any paper or further act on the part of the Trustee or the Authenticating
Agent.

 

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

 

The
Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation including reimbursement of its reasonable expenses for its
services under this Section.

 

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

 

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

 

 

	
   

  	
   

  
	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  As Authenticating Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer

  	
   

  

 

46

 

ARTICLE SEVEN

 

HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND COMPANY

 

SECTION 7.01.  Disclosure of Names and Addresses of Holders.
Every Holder of Securities or coupons, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the
Trustee nor any Authenticating Agent nor any Paying Agent nor any Security
Registrar shall be held accountable by reason of the disclosure of any
information as to the names and addresses of the Holders of Securities in
accordance with TIA Section 312, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under TIA Section 312(b).

 

SECTION 7.02.  Reports by Trustee. Within 60 days after May 15
of each year commencing with the first May 15 after the first issuance of
Securities pursuant to this Indenture, the Trustee shall transmit by mail to
all Holders of Securities as provided in TIA Section 313(c) a brief
report dated as of such May 15 if required by TIA Section 313(a).

 

SECTION 7.03.  Reports by Company. The Company will:

 

(1)           file with the
Trustee, within 15 days after the Company is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which
the Company may be required to file with the Commission pursuant to Section 13
or Section 15(d) of the Securities Exchange Act of 1934; or, if the
Company is not required to file information, documents or reports pursuant to
either of such Sections, then it will file with the Trustee and the Commission,
in accordance with rules and regulations prescribed from time to time by
the Commission, such of the supplementary and periodic information, documents
and reports which may be required pursuant to Section 13 of the Securities
Exchange Act of 1934 in respect of a security listed and registered on a
national securities exchange as may be prescribed from time to time in such rules and
regulations;

 

(2)           file with the
Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information,
documents and reports with respect to compliance by the Company with the
conditions and covenants of this Indenture as may be required from time to time
by such rules and regulations; and

 

(3)           transmit by mail to
the Holders of Securities, within 30 days after the filing thereof with the
Trustee, in the manner and to the extent provided in TIA Section 313(c),
such summaries of any information, documents and reports required to be filed
by the Company pursuant to paragraphs (1) and (2) of this section as
may be required by rules and regulations 
prescribed from time to time by the Commission.

 

SECTION 7.04.  Company to Furnish to Trustee Names and
Addresses of Holders. The Company will furnish or cause to be furnished to the
Trustee:

 

47

 

(a)           semi-annually, not later than 25 days
after the Regular Record Date for interest for each series of Securities, a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Registered Securities of such series as of such
Regular Record Date, or if there is no Regular Record Date for interest for
such series of Securities, semiannually, upon such dates as are set forth in
the Board Resolution or indenture supplemental hereto authorizing such series,
and

 

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

 

provided,
however, that, so long as the Trustee is the Security Registrar, no such list
shall be required to be furnished.

 

ARTICLE EIGHT

 

CONSOLIDATION,
MERGER, SALE, LEASE OR CONVEYANCE

 

SECTION 8.01.  Consolidations and Mergers of Company and
Sales, Leases and Conveyances Permitted Subject to Certain Conditions. The
Company may consolidate with, or sell, lease or convey all or substantially all
of its assets to, or merge with or into any other corporation; provided that in
any such case, (i) either the Company shall be the continuing corporation,
or the successor corporation shall be a corporation organized and existing
under the laws of the United States or a State thereof and such successor
corporation shall expressly assume the due and punctual payment of the
principal of (and premium, if any) and any interest (including all Additional
Amounts, if any, payable pursuant to Section 1007) on all of the
Securities, according to their tenor, and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be
performed by the Company by supplemental indenture, complying with Article Nine
hereof, satisfactory to the Trustee, executed and delivered to the Trustee by
such corporation and (ii) immediately 
after giving effect to such 
transaction  and treating any
indebtedness which becomes an obligation of the Company or any Subsidiary as a
result thereof as having been incurred by the Company or such Subsidiary at the
time of such transaction, no Event of Default, and no event which, after notice
or the lapse of time, or both, would become an Event of Default, shall have
occurred and be continuing.

 

SECTION 8.02.  Rights and Duties of Successor Corporation.
In case of any such consolidation, merger, sale, lease or conveyance and upon
any such assumption by the successor corporation, such successor corporation
shall succeed to and be substituted for the Company, with the same effect as if
it had been named herein as the party of the first part, and the predecessor
corporation, except in the event of a lease, shall be relieved of any further
obligation under this Indenture and the Securities. Such successor corporation
thereupon may cause to be signed, and may issue either in its own name or in
the name of the Company, any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of such successor corporation, instead of the
Company, and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver any
Securities which previously shall have been

 

48

 

signed and
delivered by the officers of the Company to the Trustee for authentication, and
any Securities which such successor corporation thereafter shall cause to be
signed and delivered to the Trustee for that purpose. All the Securities so
issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities theretofore or thereafter issued in accordance with
the terms of this Indenture as though all of such Securities had been issued at
the date of the execution hereof.

 

In
case of any such consolidation, merger, sale, lease or conveyance, such changes
in phraseology and form (but not in substance) may be made in the Securities
thereafter to be issued as may be appropriate.

 

SECTION 8.03.  Officers’ Certificate and Opinion of Counsel.
Any consolidation, merger, sale, lease or conveyance permitted under Section 801
is also subject to the condition that the Trustee receive an Officers’
Certificate and an Opinion of Counsel to the effect that any such
consolidation, merger, sale, lease or conveyance, and the assumption of the
Company’s obligations under this Indenture by any successor corporation,
complies with the provisions of this Article and that all conditions
precedent herein provided for relating to such transaction have been complied
with.

 

ARTICLE NINE

 

SUPPLEMENTAL
INDENTURES

 

SECTION 9.01.  Supplemental Indentures Without Consent of
Holders. Without the consent of any Holders of Securities or coupons, the
Company, when authorized by or pursuant to a Board Resolution, and the Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the
following purposes:

 

(1)           to evidence the
succession of another Person to the Company and the assumption by any such
successor of the covenants of the Company herein and in the Securities
contained; or

 

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

 

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

 

49

 

principal amount
of that or those series of Securities to which such additional Events of
Default apply to waive such default; or

 

(4)           to add to or change
any of the provisions of this Indenture to provide that Bearer Securities may
be registrable as to principal, to change or eliminate any restrictions on the
payment of principal of or any premium or interest on Bearer Securities, to
permit Bearer Securities to be issued in exchange for Registered Securities, to
permit Bearer Securities to be issued in exchange for Bearer Securities of
other authorized denominations or to permit or facilitate the issuance of
Securities in uncertificated form; provided, that any such action shall not
adversely affect the interests of the Holders of Securities of any series or
any related coupons in any material respect; or

 

(5)           to change or
eliminate any of the provisions of this Indenture; provided that any such
change or elimination shall become effective only when there is no Security
Outstanding of any series created prior to the execution of such supplemental
indenture which is entitled to the benefit of such provision; or

 

(6)           to secure the
Securities; or

 

(7)           to establish the
form or terms of Securities of any series and any related coupons as permitted
by Sections 201 and 301, including the provisions and procedures relating to
Securities convertible into Common Shares or Preferred Shares of the Company,
as the case may be; or

 

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

 

(9)           to cure any
ambiguity, to correct or supplement any provision herein which may be defective
or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture
which shall not be inconsistent with the provisions of this Indenture; provided
such provisions shall not adversely affect the interests of the Holders of
Securities of any series or any related coupons in any material respect; or

 

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

 

SECTION 9.02.  Supplemental Indentures with Consent of
Holders.  With the consent of the Holders
of not less than a majority in principal amount of all Outstanding Securities
affected by such supplemental indenture, by Act of said Holders delivered to
the Company and the Trustee, the Company, when authorized by or pursuant to a
Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or 

 

50

 

of modifying in
any manner the rights of the Holders of Securities and any related coupons
under this Indenture; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Security affected
thereby:

 

(1)           change the Stated
Maturity of the principal of (or premium, if any, on) or any installment of
principal of or interest on, any Security; or reduce the principal amount
thereof or the rate or amount of interest thereon or any Additional Amounts
payable in respect thereof, or any premium payable upon the redemption thereof,
or change any obligation of the Company to pay Additional Amounts pursuant to Section 1007
(except as contemplated by Section 801(i) and permitted by Section 901(1)),
or reduce the amount of the principal of an Original Issue Discount Security
that would be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502 or the amount thereof provable in
bankruptcy pursuant to Section 504, or adversely affect any right of
repayment at the option of the Holder of any Security, or change any Place of
Payment where, or the currency or currencies, currency unit or units or
composite currency or currencies in which, any Security or any premium or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption or repayment at the option of the Holder, on or after
the Redemption Date or the Repayment Date, as the case may be), or

 

(2)           reduce the
percentage in principal amount of the Outstanding Securities of any series, the
consent of whose Holders is required for any such supplemental indenture, or
the consent of whose Holders is required for any waiver with respect to such series
(or compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences) provided for in this Indenture, or reduce the
requirements of Section 1504 for quorum or voting, or

 

(3)           modify any of the
provisions of this Section, Section 513 or Section 1008, except to
increase the required percentage to effect such action or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Outstanding Security affected thereby.

 

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

 

A
supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the
rights of the Holders of Securities of such series with respect to such
covenant or other provision, shall be deemed not to affect the rights under
this Indenture of the Holders of Securities of any other series.

 

SECTION 9.03.  Execution of Supplemental Indentures.  In executing, or accepting the additional
trusts created by, any supplemental indenture permitted by this Article or
the modification thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The 

 

51

 

Trustee may, but
shall not be obligated to, enter into any such supplemental indenture which
affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

 

SECTION 9.04.  Effect of Supplemental Indentures. Upon the
execution of any supplemental indenture under this Article, this Indenture
shall be modified in accordance therewith and such supplemental indenture shall
form a part of this Indenture for all purposes; and every Holder of Securities
theretofore or thereafter authenticated and delivered hereunder and of any
coupon appertaining thereto shall be bound thereby.

 

SECTION 9.05.  Conformity with Trust Indenture Act. Every
supplemental indenture executed pursuant to this Article shall conform to
the requirements of the Trust Indenture Act as then in effect.

 

SECTION 9.06.  Reference in Securities to Supplemental Indentures.
Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall, if
required by the Trustee, bear a notation in form approved by the Trustee as to
any matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.

 

ARTICLE TEN

 

COVENANTS

 

SECTION 10.01.  Payment of Principal, Premium, if any,
Interest and Additional Amounts. The Company covenants and agrees for the benefit
of the Holders of each series of Securities that it will duly and punctually
pay the principal of (and premium, if any) and interest on and any Additional
Amounts payable in respect of the Securities of that series in accordance with
the terms of such series of Securities, any coupons appertaining thereto and
this Indenture. Unless otherwise specified as contemplated by Section 301
with respect to any series of Securities, any interest due on and any
Additional Amounts payable in respect of Bearer Securities on or before
Maturity, other than Additional Amounts, if any, payable as provided in Section 1007
in respect of principal of (or premium, if any, on) such a Security, shall be
payable only upon presentation and surrender of the several coupons for such
interest installments as are evidenced thereby as they severally mature. Unless
otherwise specified with respect to Securities of any series pursuant to Section 301,
at the option of the Company, all payments of principal may be paid by check to
the registered Holder of the Registered Security or other person entitled
thereto against surrender of such Security.

 

SECTION 10.02.  Maintenance of Office or Agency. If
Securities of a series are issuable only as Registered Securities, the Company
shall maintain in each Place of Payment for any series of Securities an office
or agency where Securities of that series may be presented or surrendered for
payment or conversion, where Securities of that series may be surrendered for
registration of transfer or exchange, and where notices and demands to or upon
the Company in respect of the Securities of that series and this Indenture may
be served. If Securities of a series 

 

52

 

are issuable as
Bearer Securities, the Company will maintain: (A) in the Borough of
Manhattan, The City of New York, an office or agency where any Registered
Securities of that series may be presented or surrendered for payment or
conversion, where any Registered Securities of that series may be surrendered
for registration of transfer, where Securities of that series may be
surrendered for exchange, where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served and
where Bearer Securities of that series and related coupons may be presented or
surrendered for payment or conversion in the circumstances described in the
following paragraph (and not otherwise); (B) subject to any laws or
regulations applicable thereto, in a Place of Payment for that series which is
located outside the United States, an office or agency where Securities of that
series and related coupons may be presented and surrendered for payment
(including payment of any Additional Amounts payable on Securities of that series
pursuant to Section 1007) or conversion; provided, however, that if the
Securities of that series are listed on the Luxembourg Stock Exchange or any
other stock exchange located outside the United States and such stock exchange
shall so require, the Company will maintain a Paying Agent for the Securities
of that series in Luxembourg or any other required city located outside the
United States, as the case may be, so long as the Securities of that series are
listed on such exchange; and (C) subject to any laws or regulations
applicable thereto, in a Place of Payment for that series located outside the
United States an office or agency where any Registered Securities of that
series may be surrendered for registration of transfer, where Securities of that
series may be surrendered for exchange and where notices and demands to or upon
the Company in respect of the Securities of that series and this Indenture may
be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of each 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, except that Bearer Securities of that
series and the related coupons may be presented and surrendered for payment
(including payment of any Additional Amounts payable on Bearer Securities of
that series pursuant to Section 1007) or conversion at the offices
specified in the Security in London, England, and the Company hereby appoints
the same as its agent to receive such respective presentations, surrenders,
notices and demands, and the Company hereby appoints the Trustee its agent to
receive all such presentations, surrenders, notices and demands.

 

Unless
otherwise specified with respect to any Securities pursuant to Section 301,
no payment of principal, premium or interest on or Additional Amounts in
respect of Bearer Securities shall be made at any office or agency of the
Company in the United States or by check mailed to any address in the United
States or by transfer to an account maintained with a bank located in the
United States; provided, however, that, if the Securities of a series are
payable in Dollars, payment of principal of and any premium and interest on any
Bearer Security (including any Additional Amounts payable on Securities of such
series pursuant to Section 1007) shall be made at the office of the
Company’s Paying Agent in the City of Boston, if (but only if) payment in
Dollars of the full amount of such principal, premium, interest or Additional
Amounts, as the case may be, at all offices or agencies outside the United States
maintained for such purpose by the Company in accordance with this Indenture,
is illegal or effectively precluded by exchange controls or other similar
restrictions.

 

53

 

The
Company may from time to time designate one or more other offices or agencies
where the Securities of one or more series may be presented or surrendered for
any or all of such purposes, and may from time to time rescind 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 accordance with the requirements set forth above for Securities of
any series for such purposes. The Company will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency. Unless otherwise specified with
respect to any Securities pursuant to Section 301 with respect to a series
of Securities, the Company hereby designates as a Place of Payment for each
series of Securities the office or agency of the Company in the City of Boston,
and initially appoints the Trustee at its Corporate Trust Office as Paying
Agent in such city and as its agent to receive all such presentations,
surrenders, notices and demands.

 

Unless
otherwise specified with respect to any Securities pursuant to Section 302,
if and so long as the Securities of any series (i) are denominated in a
Foreign Currency or (ii) may be payable in a Foreign Currency or so long
as it is required under any other provision of this Indenture, then the Company
will maintain with respect to each such series of Securities, or as so
required, at least one exchange rate agent.

 

SECTION 10.03.  Money for Securities Payments to Be Held in
Trust. If the Company shall at any time act as its own Paying Agent with
respect to any series of any Securities and any related coupons, it will, by no
later than 11:00 am (Boston time) on each due date of the principal of (and
premium, if any), or interest on or Additional Amounts in respect of, any of
the Securities of that series, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum in the currency or currencies, currency unit
or units or composite currency or currencies in which the Securities of such
series are payable (except as otherwise specified pursuant to Section 301
for the Securities of such series) sufficient to pay the principal (and
premium, if any) or interest or Additional Amounts so becoming due until such
sums shall be paid to such Persons or otherwise disposed of as herein provided,
and will promptly notify the Trustee of its action or failure so to act.

 

Whenever
the Company shall have one or more Paying Agents for any series of Securities
and any related coupons, it will, on or before each due date of the principal
of (and premium, if any), or interest on or Additional Amounts in respect of,
any Securities of that series, deposit with a Paying Agent a sum (in the
currency or currencies, currency unit or units or composite currency or
currencies described in the preceding paragraph) sufficient to pay the
principal (and premium, if any) or interest or Additional Amounts, so becoming
due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest or Additional Amounts and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of
its action or failure so to act.

 

The
Company will cause each Paying Agent other than the Trustee to execute and
deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying
Agent will

 

54

 

(1)           hold all sums held
by it for the payment of principal of (and premium, if any) or interest on
Securities in trust for the benefit of the Persons entitled thereto until such
sums shall be paid to such Persons or otherwise disposed of as herein provided;

 

(2)           give the Trustee
notice of any default by the Company (or any other obligor upon the Securities)
in the making of any such payment of principal (and premium, if any) or
interest; and

 

(3)           at any time during
the continuance of any such default, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

 

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

 

Except
as otherwise provided in the Securities of any series, any money deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of (and premium, if any) or interest on, or any
Additional Amounts in respect of, any Security of any series and remaining
unclaimed for two years after such principal (and premium, if any), interest or
Additional Amounts has become due and payable shall be paid to the Company upon
Company Request or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment of such principal of (and
premium, if any) or interest on, or any Additional Amounts in respect of, such
Security, without interest thereon, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however, that the Trustee
or such Paying Agent, before being required to make any such repayment, may at
the expense of the Company cause to be published once, in an Authorized
Newspaper, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

 

SECTION 10.04.  Existence. Subject to Article Eight, the
Company will do or cause to be done all things necessary to preserve and keep
in full force and effect its existence, rights (declaration and statutory) and
franchises; provided, however, that the Company shall not be required to
preserve any right or franchise if the Board shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company.

 

SECTION 10.05.  Provision of Financial Information. Whether
or not the Company is subject to Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended, the Company will, to the extent
permitted under the Securities Exchange Act of 1934, as amended, file with the
Commission the annual reports, quarterly reports and other documents which the
Company would have been required to file with the Commission pursuant to such Section 13
or 15(d) (the 

 

55

 

“Financial
Statements”) if the Company were so subject, such documents to be filed with
the Commission on or prior to the respective dates (the “Required Filing Dates”)
by which the Company would have been required so to file such documents if the
Company were so subject.

 

The
Company will also in any event (x) within 15 days of each Required Filing
Date (i) transmit by mail to all Holders, as their names and addresses
appear in the Security Register, without cost to such Holders copies of the
annual reports and quarterly reports which the Company would have been required
to file with the Commission pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended, if the Company were subject to
such Sections, and (ii) file with the Trustee copies of the annual
reports, quarterly reports and other documents which the Company would have
been required to file with the Commission pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934, as amended, if the Company were subject to
such Sections and (y) if filing such documents by the Company with the
Commission is not permitted under the Securities Exchange Act of 1934, as
amended, promptly upon written request and payment of the reasonable cost of
duplication and delivery, supply copies of such documents to any prospective Holder.

 

SECTION 10.06.  Statement as to Compliance. The Company will
deliver to the Trustee, within 120 days after the end of each fiscal year, a
brief certificate from the principal executive officer, principal financial
officer or principal accounting officer as to his or her knowledge of the
Company’s compliance with all conditions and covenants under this Indenture
and, in the event of any noncompliance, specifying such noncompliance and the
nature and status thereof. For purposes of this Section 1006, such
compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.

 

SECTION 10.07.  Additional Amounts. If any Securities of a
series provide for the payment of Additional Amounts, the Company will pay to
the Holder of any Security of such series or any coupon appertaining thereto
Additional Amounts as may be specified as contemplated by Section 301.
Whenever in this Indenture there is mentioned, in any context except in the
case of Section 502(1), the payment of the principal of or any premium or
interest on, or in respect of, any Security of any series or payment of any
related coupon or the net proceeds received on the sale or exchange of any
Security of any series, such mention shall be deemed to include mention of the
payment of Additional Amounts provided by the terms of such series established
pursuant to Section 301 to the extent that, in such context, Additional
Amounts are, were or would be payable in respect thereof pursuant to such terms
and express mention of the payment of Additional Amounts (if applicable) in any
provisions hereof shall not be construed as excluding Additional Amounts in
those provisions hereof where such express mention is not made.

 

Except
as otherwise specified as contemplated by Section 301, if the Securities
of a series provide for the payment of Additional Amounts, at least 20 days
prior to the first Interest Payment Date with respect to that series of
Securities (or if the Securities of that series will not bear interest prior to
Maturity, the first day on which a payment of principal and any premium is
made), and at least 10 days prior to each date of payment of principal and any
premium or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers’ Certificate, the Company will
furnish the Trustee and the Company’s principal Paying Agent or Paying Agents,
if other than the Trustee, with an Officers’ Certificate instructing the 

 

56

 

Trustee and such Paying Agent or Paying Agents whether
such payment of principal of and any premium or interest on the Securities of
that series shall be made to Holders of Securities of that series or any
related coupons who are not United States persons without withholding for or on
account of any tax, assessment or other governmental charge described in the
Securities of the series. If any such withholding shall be required, then such
Officers’ Certificate shall specify by country the amount, if any, required to
be withheld on such payments to such Holders of Securities of that series or
related coupons and the Company will pay to the Trustee or such Paying Agent
the Additional Amounts required by the terms of such Securities. In the event
that the Trustee or any Paying Agent, as the case may be, shall not so receive
the above-mentioned certificate, then the Trustee or such Paying Agent shall be
entitled (i) to assume that no such withholding or deduction is required
with respect to any payment of principal or interest with respect to any
Securities of a series or related coupons until it shall have received a
certificate advising otherwise and (ii) to make all payments of principal
and interest with respect to the Securities of a series or related coupons
without withholding or deductions until otherwise advised. The Company
covenants to indemnify the Trustee and any Paying Agent for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them or in reliance on any Officers’
Certificate furnished pursuant to this Section or in reliance on the
Company’s not furnishing such an Officers’ Certificate.

 

SECTION 10.08.  Waiver of Certain Covenants. The Company may
omit in any particular instance to comply with any term, provision or condition
set forth in Sections 1004 or 1005, if before or after the time for such
compliance the Holders of at least a majority in principal amount of all
outstanding Securities of such series, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such
covenant or condition, but no such waiver shall extend to or affect such covenant
or condition except to the extent so expressly waived, and, until such waiver
shall become effective, the obligations of the Company and the duties of the
Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

 

ARTICLE ELEVEN

 

REDEMPTION OF
SECURITIES

 

SECTION 11.01.  Applicability of Article. Securities of any
series which are redeemable before their Stated Maturity shall be redeemable in
accordance with their terms and (except as otherwise specified as contemplated
by Section 301 for Securities of any series) in accordance with this
Article.

 

SECTION 11.02.  Election to Redeem; Notice to Trustee. The
election of the Company to redeem any Securities shall be evidenced by or
pursuant to a Board Resolution. In case of any redemption at the election of
the Company of less than all of the Securities of any series, the Company
shall, at least 45 days prior to the giving of the notice of redemption in Section 1104
(unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date and of the principal amount of Securities of
such series to be redeemed. In the case of any redemption of Securities prior
to the expiration of any restriction on such redemption 

 

57

 

provided in the
terms of such Securities or elsewhere in this Indenture, the Company shall
furnish the Trustee with an Officers’ Certificate evidencing compliance with
such restriction.

 

SECTION 11.03.  Selection by Trustee of Securities to Be
Redeemed. If less than all the Securities of any series issued on the same day
with the same terms are to be redeemed, the particular Securities to be
redeemed shall be selected not more than 60 days prior to the Redemption Date
by the Trustee, from the Outstanding Securities of such series issued on such
date with the same terms not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of portions (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series.

 

The
Trustee shall promptly notify the Company and the Security Registrar (if other
than itself) in writing of the Securities selected for redemption and, in the
case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

 

For
all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case
of any Security redeemed or to be redeemed only in part, to the portion of the
principal amount of such Security which has been or is to be redeemed.

 

SECTION 11.04.  Notice of Redemption. Notice of redemption
shall be given in the manner provided in Section 106 and as may be further
specified in an indenture supplemental hereto, not less than 30 days nor more
than 60 days prior to the Redemption Date, unless a shorter period is specified
by the terms of such series established pursuant to Section 301, to each
Holder of Securities to be redeemed, but failure to give such notice in the
manner herein provided to the Holder of any Security designated for redemption
as a whole or in part, or any defect in the notice to any such Holder, shall
not affect the validity of the proceedings for the redemption of any other such
Security or portion thereof.

 

Any
notice that is mailed to the Holders of Registered Securities in the manner
herein provided shall be conclusively presumed to have been duly given, whether
or not such Holders receive such notice.

 

All
notices of redemption shall state:

 

(1)           the Redemption Date,

 

(2)           the Redemption
Price, accrued interest to the Redemption Date payable as provided in Section 1106,
if any, and Additional Amounts, if any,

 

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

 

(4)           in case any Security
is to be redeemed in part only, the notice which relates to such Security shall
state that on and after the Redemption Date, upon surrender of such

 

58

 

Security, the
holder will receive, without charge, a new Security or Securities of authorized
denominations for the principal amount thereof remaining unredeemed,

 

(5)           that on the
Redemption Date the Redemption Price and accrued interest to the Redemption
Date payable as provided in Section 1106, if any, will become due and
payable upon each such Security, or the portion thereof, to be redeemed and, if
applicable, that interest thereon shall cease to accrue on and after said date,

 

(6)           the Place or Places of
Payment where such Securities, together in the case of Bearer Securities with
all coupons appertaining thereto, if any, maturing after the Redemption Date,
are to be surrendered for payment of the Redemption Price and accrued interest,
if any, or for conversion,

 

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

 

(8)           that unless
otherwise specified in such notice, Bearer Securities of any series, if any,
surrendered for redemption must be accompanied by all coupons maturing
subsequent to the Redemption Date or the amount of any such missing coupon or
coupons will be deducted from the Redemption Price, unless security or
indemnity satisfactory to the Company, the Trustee for such series and any
Paying Agent is furnished,

 

(9)           if Bearer Securities
of any series are to be redeemed and any Registered Securities of such series
are not to be redeemed, and if such Bearer Securities may be exchanged for
Registered Securities not subject to redemption on this Redemption Date
pursuant to Section 305 or otherwise, the last date, as determined by the
Company, on which such exchanges may be made,

 

(10)         the CUSIP number of
such Security, if any, and

 

(11)         if applicable, that a
Holder of Securities who desires to convert Securities for redemption must satisfy
the requirements for conversion contained in such Securities, the then existing
conversion price or rate, and the date and time when the option to convert
shall expire.  Notice of redemption of
Securities to be redeemed shall be given by the Company or, at the Company’s
request, by the Trustee in the name and at the expense of the Company.

 

SECTION 11.05.  Deposit of Redemption Price. On or prior to
11:00 am (Boston time) on 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, which it may not do in the case of a sinking fund payment under Article Twelve,
segregate and hold in trust as provided in Section 1003) an amount of
money in the currency or currencies, currency unit or units or composite
currency or currencies in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities
of such series) sufficient to pay on the Redemption Date the Redemption Price
of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, all the Securities or portions thereof which are to be
redeemed on that date.

 

59

 

SECTION 11.06.  Securities Payable on Redemption Date. Notice
of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified in the currency or currencies, currency unit or units or
composite currency or currencies in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the
Securities of such series) (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
Securities shall, if the same were interest-bearing, cease to bear interest and
the coupons for such interest appertaining to any Bearer Securities so to be
redeemed, except to the extent provided below, shall be void. Upon surrender of
any such Security for redemption in accordance with said notice, together with
all coupons, if any, appertaining thereto maturing after the Redemption Date,
such Security shall be paid by the Company at the Redemption Price, together
with accrued interest, if any, to the Redemption Date; provided, however, that
installments of interest on Bearer Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable only at an office or agency
located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of coupons for such interest; and provided further
that, except as otherwise provided with respect to Securities convertible into
Common Shares or Preferred Shares of the Company, installments of interest on
Registered Securities whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section 307.

 

If any
Bearer Security surrendered for redemption shall not be accompanied by all
appurtenant coupons maturing after the Redemption Date, such Security may be
paid after deducting from the Redemption Price an amount equal to the face
amount of all such missing coupons, or the surrender of such missing coupon or
coupons may be waived by the Company and the Trustee if there be furnished to
them such security or indemnity as they may require to save each of them and
any Paying Agent harmless. If thereafter the Holder of such Security shall
surrender to the Trustee or any Paying Agent any such missing coupon in respect
of which a deduction shall have been made from the Redemption Price, such
Holder shall be entitled to receive the amount so deducted; provided, however,
that interest represented by coupons shall be payable only at an office or
agency located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of those coupons.

 

If any
Security 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 Security.

 

SECTION 11.07.  Securities Redeemed in Part. Any Registered
Security which is to be redeemed only in part (pursuant to the provisions of
this Article or of Article Twelve) shall be surrendered at a Place of
Payment therefor (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing) and the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security without service charge
a new Security or Securities of the same series, of any authorized

 

60

 

denomination as
requested by such Holder in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered.

 

ARTICLE TWELVE

 

SINKING FUNDS

 

SECTION 12.01.  Applicability of Article. The provisions of
this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 301
for Securities of such series.

 

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

 

SECTION 12.02.  Satisfaction of Sinking Fund Payments with
Securities. The Company may, in satisfaction of all or any part of any
mandatory sinking fund payment with respect to the Securities of a series, (1) deliver
Outstanding Securities of such series (other than any previously called for
redemption) together in the case of any Bearer Securities of such series with
all unmatured coupons appertaining thereto and (2) apply as a credit
Securities of such series which have been redeemed either at the election of
the Company pursuant to the terms of such Securities or through the application
of permitted optional sinking fund payments pursuant to the terms of such
Securities, as provided for by the terms of such Securities, or which have
otherwise been acquired by the Company; provided that such Securities so
delivered or applied as a credit have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at
the applicable Redemption Price specified in such Securities for redemption
through operation of the sinking fund and the amount of such mandatory sinking
fund payment shall be reduced accordingly.

 

SECTION 12.03.  Redemption of Securities for Sinking Fund.
Not less than 60 days prior to each sinking fund payment date for Securities of
any series, the Company will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing mandatory sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash in the currency or currencies,
currency unit or units or composite currency or currencies in which the
Securities of such series are payable (except as otherwise specified pursuant
to Section 301 for the Securities of such series) and the portion thereof,
if any, which is to be satisfied by delivering and crediting Securities of that
series pursuant to Section 1202, and the optional amount, if any, to be
added in cash to the next ensuing mandatory sinking fund payment, and will also
deliver to the Trustee any Securities to be so delivered and credited. If such
Officers’ Certificate shall specify an optional amount to be added in cash to
the next ensuing mandatory sinking fund payment, the Company shall thereupon be
obligated to pay the amount therein specified. Not less than 30 days before
each such sinking

 

61

 

fund payment date
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 1103 and cause notice of
the redemption thereof to be given in the name of and at the expense of the
Company in the manner provided in Section 1104. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 1106 and 1107.

 

ARTICLE THIRTEEN

 

REPAYMENT AT THE
OPTION OF HOLDERS

 

SECTION 13.01.  Applicability of Article.  Repayment of Securities of any series before their
Stated Maturity at the option of Holders thereof shall be made in accordance
with the terms of such Securities, if any, and (except as otherwise specified
by the terms of such series established pursuant to Section 301) in
accordance with this Article.

 

SECTION 13.02.  Repayment of Securities. Securities of any
series subject to repayment in whole or in part at the option of the Holders
thereof will, unless otherwise provided in the terms of such Securities, be
repaid at a price equal to the principal amount thereof, together with
interest, if any, thereon accrued to the Repayment Date specified in or
pursuant to the terms of such Securities. The Company covenants that on or
before the Repayment Date it will deposit with the Trustee or with a Paying Agent
(or, if the Company is acting as its own Paying Agent, segregate and hold in
trust as provided in Section 1003) an amount of money in the currency or
currencies, currency unit or units or composite currency or currencies in which
the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series) sufficient to
pay the principal (or, if so provided by the terms of the Securities of any
series, a percentage of the principal) of, and (except if the Repayment Date
shall be an Interest Payment Date) accrued interest on, all the Securities or
portions thereof, as the case may be, to be repaid on such date.

 

SECTION 13.03.  Exercise of Option. Securities of any series
subject to repayment at the option of the Holders thereof will contain an “Option
to Elect Repayment” form on the reverse of such Securities. In order for any
Security to be repaid at the option of the Holder, the Trustee must receive at
the Place of Payment therefor specified in the terms of such Security (or at
such other place or places of which the Company shall from time to time notify
the Holders of such Securities) not earlier than 60 days nor later than 30 days
prior to the Repayment Date (1) the Security so providing for such repayment
together with the “Option to Elect Repayment” form on the reverse thereof duly
completed by the Holder or by the Holder’s attorney duly authorized in writing
or (2) a telegram, telex, facsimile transmission or a letter from a member
of a national securities exchange, or the National Association of Securities
Dealers, Inc. (“NASD”), or a commercial bank or trust company in the
United States setting forth the name of the Holder of the Security, the
principal amount of the Security, the principal amount of the Security to be
repaid, the CUSIP number, if any, or a description of the tenor and terms of
the Security, a statement that the option to elect repayment is being exercised
thereby and a guarantee that the Security to be repaid, together with the duly
completed form entitled “Option to Elect Repayment” on the reverse of the
Security, will be received by the Trustee not later than the fifth Business Day
after the date of such telegram, telex, facsimile transmission or letter;
provided, however, that such telegram, telex, facsimile transmission or letter
shall only be effective if such

 

62

 

Security and form
duly completed are received by the Trustee by such fifth Business Day. If less
than the entire principal amount of such Security is to be repaid in accordance
with the terms of such Security, the principal amount of such Security to be
repaid, in increments of the minimum denomination for Securities of such
series, and the denomination or denominations of the Security or Securities to
be issued to the Holder for the portion of the principal amount of such
Security surrendered that is not to be repaid, must be specified. The principal
amount of any security providing for repayment at the option of the Holder
thereof may not be repaid in part if, following such repayment, the unpaid
principal amount of such Security would be less than the minimum authorized
denomination of Securities of the series of which such Security to be repaid is
a part. Except as otherwise may be provided by the terms of any Security
providing for repayment at the option of the Holder thereof, exercise of the
repayment option by the Holder shall be irrevocable unless waived by the
Company.

 

SECTION 13.04.  When Securities Presented for Repayment
Become Due and Payable. If Securities of any series providing for repayment at
the option of the Holders thereof shall have been surrendered as provided in
this Article and as provided by or pursuant to the terms of such
Securities, such Securities or the portions thereof, as the case may be, to be
repaid shall become due and payable and shall be paid by the Company on the
Repayment Date therein specified, and on and after such Repayment Date (unless
the Company shall default in the payment of such Securities on such Repayment
Date) such Securities shall, if the same were interest-bearing, cease to bear
interest and the coupons for such interest appertaining to any Bearer
Securities so to be repaid, except to the extent provided below, shall be void.
Upon surrender of any such Security for repayment in accordance with such
provisions, together with all coupons, if any, appertaining thereto maturing
after the Repayment Date, the principal amount of such Security so to be repaid
shall be paid by the Company, together with accrued interest, if any, to the
Repayment Date; provided, however, that coupons whose Stated Maturity is on or
prior to the Repayment Date shall be payable only at an office or agency
located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified pursuant to Section 301, only upon
presentation and surrender of such coupons; and provided further that, in the
case of Registered Securities, installments of interest, if any, whose Stated
Maturity is on or prior to the Repayment Date shall be payable (but without
interest thereon, unless the Company shall default in the payment thereof) to
the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant Record Dates
according to their terms and the provisions of Section 307.

 

If any
Bearer Security surrendered for repayment shall not be accompanied by all
appurtenant coupons maturing after the Repayment Date, such Security may be
paid after deducting from the amount payable therefor as provided in Section 1302
an amount equal to the face amount of all such missing coupons, or the
surrender of such missing coupon or coupons may be waived by the Company and
the Trustee if there be furnished to them such security or indemnity as they
may require to save each of them and any Paying Agent harmless. If thereafter
the Holder of such Security shall surrender to the Trustee or any Paying Agent
any such missing coupon in respect of which a deduction shall have been made as
provided in the preceding sentence, such Holder shall be entitled to receive
the amount so deducted; provided, however, that interest represented by coupons
shall be payable only at an office or agency located outside the United States
(except as otherwise provided in Section 1002) and, unless otherwise
specified as contemplated by Section 301, only upon presentation and
surrender of those coupons.

 

63

 

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

 

SECTION 13.05.  Securities Repaid in Part. Upon surrender of
any Registered Security which is to be repaid in part only, the Company shall execute
and the Trustee shall authenticate and deliver to the Holder of such Security,
without service charge and at the expense of the Company, a new Registered
Security or Securities of the same series, of any authorized denomination
specified by the Holder, in an aggregate principal amount equal to and in
exchange for the portion of the principal of such Security so surrendered which
is not to be repaid.

 

ARTICLE FOURTEEN

 

DEFEASANCE AND
COVENANT DEFEASANCE

 

SECTION 14.01.  Applicability of Article; Company’s Option to
Effect Defeasance or Covenant Defeasance. If, pursuant to Section 301,
provision is made for either or both of (a) defeasance of the Securities
of or within a series under Section 1402 or (b) covenant defeasance of the
Securities of or within a series under Section 1403, then the provisions
of such Section or Sections, as the case may be, together with the other
provisions of this Article (with such modifications thereto as may be
specified pursuant to Section 301 with respect to any Securities), shall
be applicable to such Securities and any coupons appertaining thereto, and the
Company may at its option by Board Resolution, at any time, with respect to
such Securities and any coupons appertaining thereto, elect to have Section 1402
(if applicable) or Section 1403 (if applicable) be applied to such
Outstanding Securities and any coupons appertaining thereto upon compliance
with the conditions set forth below in this Article.

 

SECTION 14.02.  Defeasance and Discharge. Upon the Company’s
exercise of the above option applicable to this Section with respect to
any Securities of or within a series, the Company shall be deemed to have been
discharged from its obligations with respect to such Outstanding Securities and
any coupons appertaining thereto on the date the conditions set forth in Section 1404
are satisfied (hereinafter, “defeasance”). 
For this purpose, such defeasance means that the Company shall be deemed
to have paid and discharged the entire indebtedness represented by such
Outstanding Securities and any coupons appertaining thereto, which shall
thereafter be deemed to be “Outstanding” only for the purposes of Section 1405
and the other Sections of this Indenture referred to in clauses (A) and (B) below,
and to have satisfied all of its other obligations under such Securities and
any coupons appertaining thereto and this Indenture insofar as such Securities
and any coupons appertaining thereto are concerned (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), except for the following which shall survive until otherwise terminated
or discharged hereunder: (A) the rights of Holders of such Outstanding
Securities and any coupons appertaining thereto to receive, solely from the
trust fund described in Section 1404 and as more fully set forth in such
Section, payments in respect of the principal of (and premium, if any) and
interest, if any, on such Securities and any coupons appertaining thereto when
such payments are due, (B) the Company’s obligations with respect to such
Securities under Sections 305, 306, 1002 and 1003

 

64

 

and with respect
to the payment of Additional Amounts, if any, on such Securities as
contemplated by Section 1007, (C) the rights, powers, trusts, duties
and immunities of the Trustee hereunder and (D) this Article Fourteen.
Subject to compliance with this Article Fourteen, the Company may exercise
its option under this Section notwithstanding the prior exercise of its
option under Section 1403 with respect to such Securities and any coupons
appertaining thereto.

 

SECTION 14.03.  Covenant Defeasance. Upon the Company’s
exercise of the above option applicable to this Section with respect to
any Securities of or within a series, the Company shall be released from its
obligations under Sections 1004 and 1005 and, if specified pursuant to Section 301,
its obligations under any other covenant, with respect to such Outstanding
Securities and any coupons appertaining thereto on and after the date the
conditions set forth in Section 1404 are satisfied (hereinafter, “covenant
defeasance”), and such Securities and any coupons appertaining thereto shall
thereafter be deemed to be not “Outstanding” for the purposes of any direction,
waiver, consent or declaration or Act of Holders (and the consequences of any
thereof) in connection with Sections 1004 and 1005 or such other covenant, but
shall continue to be deemed “Outstanding” for all other purposes hereunder. For
this purpose, such covenant defeasance means that, with respect to such
Outstanding Securities and any coupons appertaining thereto, 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 Section or such other
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such Section or such other covenant or by reason of
reference in any such Section or such other covenant to any other
provision herein or in any other document and such omission to comply shall not
constitute a default or an Event of Default under Section 501(4) or
501(9) or otherwise, as the case may be, but except as specified above,
the remainder of this Indenture and such Securities and any coupons appertaining
thereto shall be unaffected thereby.

 

SECTION 14.04.  Conditions to Defeasance or Covenant
Defeasance.  The following shall be the
conditions to application of Section 1402 or Section 1403 to any
Outstanding Securities of or within a series and any coupons appertaining
thereto:

 

(a)           The Company shall irrevocably have
deposited or caused to be deposited with the Trustee (or another trustee
satisfying the requirements of Section 607 who shall agree to comply with
the provisions of this Article Fourteen applicable to it) as trust funds
in trust for the purpose of making the following payments, specifically pledged
as security for, and dedicated solely to, the benefit of the Holders of such
Securities and any coupons appertaining thereto, (1) an amount in such
currency, currencies or currency unit in which such Securities and any coupons
appertaining thereto are then specified as payable at Stated Maturity) which
through the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than one day before the due
date of any payment of principal of (and premium, if any) and interest, if any,
on such Securities and any coupons appertaining thereto, or (2) Government
Obligations applicable to such Securities and coupons appertaining thereto
(determined on the basis of the currency, currencies or currency unit in which
such Securities and coupons appertaining thereto are then specified as payable
at Stated Maturity) which through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not
later than one day before the due date of any payment of principal of (and
premium, if any) and interest, if any, on such Securities and any coupons
appertaining thereto,

 

65

 

money in an
amount, or (3) a combination thereof in an amount, sufficient, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge, and which shall be applied by the Trustee (or other qualifying
trustee) to pay and discharge, (i) the principal of (and premium, if any)
and interest, if any, on such Outstanding Securities and any coupons
appertaining thereto on the Stated Maturity of such principal or installment of
principal or interest and (ii) any mandatory sinking fund payments or
analogous payments applicable to such Outstanding Securities and any coupons
appertaining thereto on the day on which such payments are due and payable in
accordance with the terms of this Indenture and of such Securities and any
coupons appertaining thereto.

 

(b)           Such 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 is a party or by which it is bound.

 

(c)           No Event of Default or event which
with notice or lapse of time or both would become an Event of Default with respect
to such Securities and any coupons appertaining thereto shall have occurred and
be continuing on the date of such deposit or, insofar as Sections 501(6) and
501(7) are concerned, at any time during the period ending on the 91st day
after the date of such deposit (it being understood that this condition shall
not be deemed satisfied until the expiration of such period).

 

(d)           In the case of an election under Section 1402,
the Company shall have delivered to the Trustee an Opinion of Counsel stating
that (i) the Company has received from, or there has been published by,
the Internal Revenue Service a ruling, or (ii) since the date of execution 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 shall
confirm that, the Holders of such Outstanding Securities and any coupons
appertaining thereto 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 defeasance had not occurred.

 

(e)           In the case of an election under Section 1403,
the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Holders of such Outstanding Securities and any coupons
appertaining thereto will not recognize income, gain or loss for Federal income
tax purposes as a result of such covenant 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 covenant defeasance had not occurred.

 

(f)            The Company shall have delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent to the defeasance under Section 1402 or the
covenant defeasance under Section 1403 (as the case may be) have been
complied with and an Opinion of Counsel to the effect that either (i) as a
result of a deposit pursuant to subsection (a) above and the related
exercise of the Company’s option under Section 1402 or Section 1403
(as the case may be), registration is not required under the Investment Company
Act of 1940, as amended, by the Company, with respect to the trust funds
representing

 

66

 

such deposit or by
the Trustee for such trust funds or (ii) all necessary registrations under
said Act have been effected.

 

(g)           Notwithstanding any other provisions
of this Section, such defeasance or covenant defeasance shall be effected in
compliance with any additional or substitute terms, conditions or limitations
which may be imposed on the Company in connection therewith pursuant to Section 301.

 

SECTION 14.05.  Deposited Money and Government Obligations to
Be Held in Trust; Other Miscellaneous Provisions. Subject to the provisions of
the last paragraph of Section 1003, all money and Government Obligations
(or other property as may be provided pursuant to Section 301) (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 1405, the “Trustee”) pursuant to
Section 1404 in respect of any Outstanding Securities of any series and
any coupons appertaining thereto shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and any coupons
appertaining thereto and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent)
as the Trustee may determine, to the Holders of such Securities and any coupons
appertaining thereto of all sums due and to become due thereon in respect of
principal (and premium, if any) and interest and Additional Amounts, if any,
but such money need not be segregated from other funds except to the extent
required by law.

 

Unless
otherwise specified with respect to any Security pursuant to Section 301,
if, after a deposit referred to in Section 1404(a) has been made, (a) the
Holder of a Security in respect of which such deposit was made is entitled to,
and does, elect pursuant to Section 301 or the terms of such Security to
receive payment in a currency or currency unit other than that in which the
deposit pursuant to Section 1404(a) has been made in respect of such
Security, or (b) a Conversion Event occurs in respect of the currency or
currency unit in which the deposit pursuant to Section 1404(a) has
been made, the indebtedness represented by such Security and any coupons appertaining
thereto shall be deemed to have been, and will be, fully discharged and
satisfied through the payment of the principal of (and premium, if any), and
interest, if any, on such Security as the same becomes due out of the proceeds
yielded by converting (from time to time as specified below in the case of any
such election) the amount or other property deposited in respect of such
Security into the currency or currency unit in which such Security becomes
payable as a result of such election or Conversion Event based on the
applicable market exchange rate for such currency or currency unit in effect on
the second Business Day prior to each payment date, in the case of such an
election, or, the applicable market exchange rate in effect for such currency or
currency unit (as nearly as feasible), in the case of such Conversion Event.

 

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

 

67

 

Anything
in this Article to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or
Government Obligations (or other property and any proceeds therefrom) held by it
as provided in Section 1404 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount
thereof which would then be required to be deposited to effect a defeasance or
covenant defeasance, as applicable, in accordance with this Article.

 

ARTICLE FIFTEEN

 

MEETINGS OF
HOLDERS OF SECURITIES

 

SECTION 15.01.  Purposes for Which Meetings May Be
Called. A meeting of Holders of Securities of any series may be called at any
time and from time to time pursuant to this Article to make, give or take
any request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be made, given or taken by Holders of
Securities of such series.

 

SECTION 15.02.  Call, Notice and Place of Meetings. (a) The
Trustee may at any time call a meeting of Holders of Securities of any series
for any purpose specified in Section 1501, to be held at such time and at
such place in the City of Boston, or in London as the Trustee shall determine.
Notice of every meeting of Holders of Securities of any series, setting forth
the time and the place of such meeting and in general terms the action proposed
to be taken at such meeting, shall be given, in the manner provided in Section 106,
not less than 21 nor more than 180 days prior to the date fixed for the
meeting.

 

(b)           In case at any time the Company,
pursuant to a Board Resolution, or the Holders of at least 25% in principal
amount of the Outstanding Securities of any series shall have requested the
Trustee to call a meeting of the Holders of Securities of such series for any
purpose specified in Section 1501, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have made the first publication of the notice of such meeting
within 21 days after receipt of such request or shall not thereafter proceed to
cause the meeting to be held as provided herein, then the Company or the
Holders of Securities of such series in the amount above specified, as the case
may be, may determine the time and the place in the City of Boston, or in
London for such meeting and may call such meeting for such purposes by giving
notice thereof as provided in subsection (a) of this Section.

 

SECTION 15.03.  Persons Entitled to Vote at Meetings. To be
entitled to vote at any meeting of Holders of Securities of any series, a
Person shall be (1) a Holder of one or more Outstanding Securities of such
series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by
such Holder or Holders. The only Persons who shall be entitled to be present or
to speak at any meeting of Holders of Securities of any series shall be the
Persons entitled to vote at such meeting and their counsel, any representatives
of the Trustee and its counsel and any representatives of the Company and its
counsel.

 

68

 

SECTION 15.04. 
Quorum; Action. The Persons entitled to vote a majority in principal
amount of the Outstanding Securities of a series shall constitute a quorum for
a meeting of Holders of Securities of such series; provided, however, that if
any action is to be taken at such meeting with respect to a consent or waiver
which this Indenture expressly provides may be given by the Holders of not less
than a specified percentage in principal amount of the Outstanding Securities
of a series, the Persons entitled to vote such specified percentage in
principal amount of the Outstanding Securities of such series shall constitute
a quorum. In the absence of a quorum within 30 minutes after the time appointed
for any such meeting, the meeting shall, if convened at the request of Holders
of Securities of such series, be dissolved. In any other case the meeting may
be adjourned for a period of not less than 10 days determined by the chairman
of the meeting prior to the adjournment of such meeting. In the absence of a quorum
at any such adjourned meeting, such adjourned meeting may be further adjourned
for a period of not less than 10 days as determined by the chairman of the
meeting prior to the adjournment of such adjourned meeting. Notice of the
reconvening of any adjourned meeting shall be given as provided in Section 1502(a),
except that such notice need be given only once not less than five days prior
to the date on which the meeting is scheduled to be reconvened. Notice of the
reconvening of any adjourned meeting shall state expressly the percentage, as
provided above, of the principal amount of the Outstanding Securities of such
series which shall constitute a quorum.

 

Except as limited by the proviso to Section 902,
any resolution presented to a meeting or adjourned meeting duly reconvened at
which a quorum is present as aforesaid may be adopted by the affirmative vote
of the Holders of a majority in principal amount of the Outstanding Securities
of that series; provided, however, that, except as limited by the proviso to Section 902,
any resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action which this Indenture expressly provides
may be made, given or taken by Holders of a specified percentage, which is less
than a majority, in principal amount of the Outstanding Securities of a series
may be adopted at a meeting or an adjourned meeting duly reconvened and at
which a quorum is present as aforesaid by the affirmative vote of the Holders
of such specified percentage in principal amount of the Outstanding Securities
of that series.

 

Any resolution passed or decision taken at any meeting
of Holders of Securities of any series duly held in accordance with this Section shall
be binding on all the Holders of Securities of such series and the related
coupons, whether or not present or represented at the meeting.

 

Notwithstanding the foregoing provisions of this Section 1504,
if any action is to be taken at a meeting of Holders of Securities of any
series with respect to any request, demand, authorization, direction, notice,
consent, waiver or other action that this Indenture expressly provides may be
made, given or taken by the Holders of a specified percentage in principal
amount of all Outstanding Securities affected thereby, or of the Holders of
such series and one or more additional series:

 

(i)      there
shall be no minimum quorum requirement for such meeting; and

 

(ii)     the
principal amount of the Outstanding Securities of such series that vote
in favor of such request, demand,
authorization, direction, notice, consent, waiver or other action shall be
taken into account in determining whether such request, demand, authorization,

 

69

 

direction, notice, consent, waiver or other action has been made, given
or taken under this Indenture.

 

SECTION 15.05. 
Determination of Voting Rights; Conduct and Adjournment of Meetings. (a) Notwithstanding
any provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Securities
of a series in regard to proof of the holding of Securities of such series and
of the appointment of proxies and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates
and other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem appropriate. Except as otherwise
permitted or required by any such regulations, the holding of Securities shall
be proved in the manner specified in Section 104 and the appointment of
any proxy shall be proved in the manner specified in Section 104 or by
having the signature of the Person executing the proxy witnessed or guaranteed
by any trust company, bank or banker authorized by Section 104 to certify
to the holding of Bearer Securities. Such regulations may provide that written
instruments appointing proxies, regular on their face, may be presumed valid
and genuine without the proof specified in Section 104 or other proof.

 

(b)           The
Trustee shall, by an instrument in writing appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders
of Securities as provided in Section 1502(b), in which case the Company or
the Holders of Securities of the series calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities
of such series represented at the meeting.

 

(c)           At
any meeting each Holder of a Security of such series or proxy shall be entitled
to one vote for each $1,000 principal amount of the Outstanding Securities of
such series held or represented by him; provided, however, that no vote shall
be cast or counted at any meeting in respect of any Security challenged as not
Outstanding and ruled by the chairman of the meeting to be not Outstanding. The
chairman of the meeting shall have no right to vote, except as a Holder of a
Security of such series or proxy.

 

(d)           Any
meeting of Holders of Securities of any series duly called pursuant to Section 1502
at which a quorum is present may be adjourned from time to time by Persons
entitled to vote a majority in principal amount of the Outstanding Securities
of such series represented at the meeting, and the meeting may be held as so
adjourned without further notice.

 

SECTION 15.06. 
Counting Votes and Recording Action of Meetings.  The vote upon any resolution submitted to any
meeting of Holders of Securities of any series shall be by written ballots on
which shall be subscribed the signatures of the Holders of Securities of such
series or of their representatives by proxy and the principal amounts and
serial numbers of the Outstanding Securities of such series held or represented
by them. The permanent chairman of the meeting shall appoint two inspectors of
votes who shall count all votes cast at the meeting for or against any
resolution and who shall make and file with the secretary of the meeting their
verified written reports in duplicate of all votes cast at the meeting. A
record, at least in duplicate, of the proceedings of each meeting of Holders of
Securities of any Series shall be

 

70

 

prepared by the secretary of the meeting and there shall be attached to
said record the original reports of the inspectors of votes on any vote by
ballot taken thereat and affidavits by one or more persons having knowledge of
the fact, setting forth a copy of the notice of the meeting and showing that
said notice was given as provided in Section 1502 and, if applicable, Section 1504.
Each copy shall be signed and verified by the affidavits of the permanent
chairman and secretary of the meeting and one such copy shall be delivered to
the Company and another to the Trustee to be preserved by the Trustee, the
latter to have attached thereto the ballots voted at the meeting. Any record so
signed and verified shall be conclusive evidence of the matters therein stated.

 

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

 

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

 

	
   

  	
   

  	
  HRPT PROPERTIES TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  [SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  [SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

71

 

	
  [COMMONWEALTH/STATE] OF

  	
  )

  
	
   

  	
  ) ss:

  
	
  COUNTY OF

  	
  )

  

 

On the                       
day of                             ,
20    , before me personally came                                             ,
to me known, who, being by me duly sworn, did depose and say that he/she is the
                            
of HRPT PROPERTIES TRUST, one of the persons described in and which executed
the foregoing instrument; that he/she knows the seal of said trust; that the
seal affixed to said instrument is such seal; that it was so affixed by
authority of the Board of said trust, and that he/she signed his/her name
thereto by like authority.

 

	
  [Notarial Seal]

  
	
   

  
	
   

  	
   

  
	
  Notary Public

  
	
  COMMISSION EXPIRES

  

 

	
  [COMMONWEALTH/STATE] OF

  	
  )

  
	
   

  	
  ) ss:

  
	
  COUNTY OF

  	
  )

  

 

On the             
day of                           ,
20    , before me personally came                                 ,
to me known, who, being by me duly sworn, did depose and say that he/she is a                                   
of                                   ,
one of the persons described in and which executed the foregoing instrument;
that he/she knows the seal of said corporation; that the seal affixed to said
instrument is such seal; that it was so affixed by authority of the Board of
Directors of said corporation, and that he/she signed his/her name thereto by
likely authority.

 

	
  [Notarial Seal]

  
	
   

  
	
   

  	
   

  
	
  Notary Public

  
	
  COMMISSION EXPIRES

  

 

72

 

EXHIBIT
A

 

FORMS
OF CERTIFICATION

 

EXHIBIT
A-1

 

FORM OF
CERTIFICATE TO BE GIVEN BY PERSON ENTITLED

TO RECEIVE BEARER SECURITY OR TO OBTAIN INTEREST

PAYABLE PRIOR TO THE EXCHANGE DATE

 

[Insert title or sufficient description of Securities
to be delivered]

 

This is to certify that, as of the date hereof, and
except as set forth below, the above-captioned Securities held by you for our
account (i) are owned by person(s) that are not citizens or residents
of the United States, domestic partnerships, domestic corporations or any
estate or trust the income of which is subject to United States federal income
taxation regardless of its source (“United States person(s)”), (ii) are
owned by United States person(s) that are (a) foreign branches of
United States financial institutions (financial institutions, as defined in
United States Treasury Regulations Section 2.165-12(c)(1)(v) are
herein referred to as “financial institutions”) purchasing for their own
account or for resale, or (b) United States person(s) who acquired
the Securities through foreign branches of United States financial institutions
and who hold the Securities through such United States financial institutions
on the date hereof (and in either case (a) or (b), each such United States
financial institutions hereby agrees, on its own behalf or through its agent,
that you may advise HRPT Properties Trust or its agent that such financial
institutions will comply with the requirements of Section 165(j)(3)(A), (B) or
(C) of the United States Internal Revenue Code of 1986, as amended, and
the regulations thereunder), or (iii) are owned by United States or
foreign financial institution(s) for purposes of resale during the
restricted period (as defined in United States Treasury Regulations Section 1.163-5(c)(1)(i)(D)(7),
and, in addition, if the owner is a United States or foreign financial
institutions described in clause (iii) above (whether or not also
described in clause (i) or (ii)), this is to further certify that such
financial institutions has not acquired the Securities for purposes of resale
directly or indirectly to a United States person or to a person within the
United States or its possessions.

 

As used herein, “United States” means the United
States of America (including the States and the District of Columbia);  and its “possessions” include Puerto Rico,
the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern
Mariana Islands.

 

We undertake to advise you promptly by tested telex on
or prior to the date on which you intend to submit your certification relating
to the above-captioned Securities held by you for our account in accordance
with your Operating Procedures if any applicable statement herein is not
correct on such date, and in the absence of any such notification it may be
assumed that this certification applies as of such date.

 

This certificate excepts and does not relate to
(U.S.$)                               
of such interest in the above-captioned Securities in respect of which we are
not able to certify and as to which we understand an exchange for an interest
in a Permanent Global Security or an exchange for 

 

A1-1

 

and delivery of definitive Securities (or, if
relevant, collection of any interest) cannot be made until we do so certify.

 

We understand that this certificate may be required in
connection with certain tax legislation in the United States. If administrative
or legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

 

Dated:                                     ,
20   

[To be dated no earlier
than the 15th day prior

to (i) the Exchange
Date or (ii) the relevant

Interest Payment Date
occurring prior to the

Exchange Date, as applicable]

 

 

[Name of Person Making
Certification]

(Authorized Signatory)

Name:

Title:

 

A1-2

 

EXHIBIT
A-2

 

FORM OF
CERTIFICATE TO BE GIVEN BY EUROCLEAR

AND CEDEL S.A. IN CONNECTION WITH THE EXCHANGE OF

A PORTION OF A TEMPORARY GLOBAL SECURITY OR TO

OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE

 

CERTIFICATE

 

[Insert title or sufficient description of Securities
to be delivered]

 

This is to certify that, based solely on written
certifications that we have received in writing, by tested telex or by
electronic transmission from each of the persons appearing in our records as
persons entitled to a portion of the principal amount set forth below (our “Member
Organizations”) substantially in the form attached hereto, as of the date
hereof, [U.S.$) principal amount of the above-captioned Securities (i) is
owned by person(s) that are not citizens or residents of the United
States, domestic partnerships, domestic corporations or any estate or trust the
income of which is subject to United States Federal income taxation regardless
of its source (“United States person(s)”), (ii) is owned by United States
person(s) that are (a) foreign branches of United States financial
institutions (financial institutions, as defined in U.S. Treasury Regulations Section 1.165-
12(c)(1)(v) are herein referred to as “financial institutions”) purchasing
for their own account or for resale, or (b) United States person(s) who
acquired the Securities through foreign branches of United States financial
institutions and who hold the Securities through such United States financial
institutions on the date hereof (and in either case (a) or (b), each such
financial institutions will comply with the requirements of Section 165(j)(3)(A),
(B) or (C) of the Internal Revenue Code of 1986, as amended, and the
regulations thereunder), or (iii) is owned by United States or foreign
financial institution(s) for purposes of resale during the restricted
period (as defined in United States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)),
and, to the further effect, that financial institutions described in clause (iii) above
(whether or not also described in clause (i) or (ii)) have certified that
they have not acquired the Securities for purposes of resale directly or
indirectly to a United States person or to a person within the United States or
its possessions.

 

As used herein, “United States” means the United
States of America (including the States and the District of Columbia);  and its “possessions” include Puerto Rico,
the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern
Mariana Islands.

 

We further certify that (i) we are not making
available herewith for exchange (or, if relevant, collection of any interest)
any portion of the temporary global Security representing the above-captioned
Securities excepted in the above-referenced certificates of Member
Organizations and (ii) as of the date hereof we have not received any
notification from any of our Member Organizations to the effect that the
statements made by such Member Organizations with respect to any portion of the
part submitted herewith for exchange (or, if relevant, collection of any
interest) are no longer true and cannot be relied upon as of the date hereof.

 

A2-1

 

We understand that this certification is required in
connection with certain tax legislation in the United States. If administrative
or legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

 

Dated:                                     ,
20   

[To be dated no earlier
than the Exchange Date

or the relevant Interest
Payment Date occurring

prior to the Exchange
Date, as applicable]

 

[Morgan Guaranty
Trust Company

New York, Brussels
Office,]

as Operator of the
Euroclear System

[Cedel S.A.]

 

A2-2

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