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    Exhibit 10.29    
    

 
 
  STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE—NET
  (Do not use this form for Multi-Tenant Property)
  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION    
    

1.     Basic Provisions ("Basic Provisions")  

        1.1    Parties.    This Lease ("Lease"), dated for reference purposes
only, May 5, 2003, is made by and between Stoesser Enterprises, LLC ("Lessor") and  InterWave Communications International,
 LTD (Lessee"), (collectively the "Parties," or individually a  "Party").

        1.2    Premises.    That certain real property, including all improvements therein or to be provided by Lessor under the
terms of this Lease, and commonly known by the street address of 2495 Leghorn Street, Mountain View, located in the County of Santa
Clara, State of California, and generally described as (describe briefly the nature of the property) An
approximately 34,519 sq. ft. free-standing, single story R&D building ("Premises"). (See Paragraph 2 for further
provisions.) 

        1.3    Term.    Subject to paragraph 49 hereof, the term of this Lease shall commence  May 5, 2003 ("Commencement Date")and end April 30, 2006 ("Expiration Date"). The time between
the Commencement Date and the Expiration Date shall be referred to herein as the "Original Term". (See Paragraph 3 for further provisions.) 

        1.4    Early Possession.    Upon full written execution of this Lease ("Early Possession
Date"). (See Paragraphs 3.2 and 3.3 for further provisions.) 

        1.5    Base Rent    Subject to Paragraphs 4 and 52 below, $29,341.15 per
month ("Base Rent"), payable as follows: $25,550.20 shall be paid upon execution of this Lease as Base Rent for the period May 5,
2003-May 31, 2003, and $29,341.15 shall be paid on the first day of each month commencing June 1, 2003. There are provisions in this Lease for the Base Rent to be adjusted. 

        1.6    Base Rent Paid Upon Execution.    $25,555.20 as Base Rent for the
period May 5, 2003-May 31, 2003. 

        1.7    Security Deposit.    $ See Paragraph 50 below
("Security Deposit"). (See Paragraph 5 for further provisions.) 

        1.8    Permitted Use.    General office, research and development, light manufacturing, storage
of materials, and other ancillary legal uses     (See Paragraph 6 for further provisions.) 

        1.9    Insuring Party.    Lessor is the "Insuring Party" unless otherwise
stated herein. (See Paragraph 8 for further provisions.) 

        1.10    Real Estate Brokers.    The following real estate brokers (collectively, the
"Brokers") and brokerage relationships exist in this transaction and are consented to by the Parties: 

BT Commercial represents Lessor exclusively ("Lessor's Broker"): and 

Spallino & Associates represents Lessee exclusively ("Lessee's Broker"): (See Paragraph 15 for further provisions.) 

        1.11    Guarantor.    The obligations of the Lessee under this Lease are to be guaranteed by  N/A ("Guarantor"). (See paragraph 37 for further provisions.) 

        1.12    Addenda.    Attached hereto is a Furniture Rental Addendum and Exhibit A (Letter of Credit Form) all of
which constitute a part of this Lease. 

2.     Premises.  

        2.1    Letting.    Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at
the rental, and upon all of the terms, covenants and conditions set forth in this Lease. Lessor and Lessee agree that the rental stated herein is not subject to revision whether or not the actual
square footage is more or less than stated herein. 

        2.2    Condition.    Lessor shall deliver the Premises to Lessee clean and free of debris on the Commencement Date and
warrants to Lessee that the existing plumbing, fire sprinkler system, lighting, air conditioning, heating, and loading doors, if any, in the Premises, other than those constructed by Lessee, shall be
in good operating condition on the Commencement Date. If a non-compliance with said warranty exists as of the Commencement Date, Lessor shall, except as otherwise provided in this Lease,
promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify same at Lessor's expense. If Lessee does not give
Lessor written notice of a non-compliance with this warranty within ninety (90) days after the Commencement Date, correction of that non-compliance shall be the
obligation of Lessee at Lessees sole cost and expense. 

        2.3    Compliance with Covenants, Restrictions and Building Code.    Lessor warrants to Lessee that the improvements in
the Premises comply with all applicable covenants or restrictions of record and applicable building codes, regulations and ordinances 

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in
effect on the Commencement Date. Said warranty does not apply to the use to which Lessee will put the Premises or to any Alterations or Utility Installations (as defined in paragraph 7.3
(a)) made or to be made by Lessee. If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee
setting forth with specificity the nature and extent of such non-compliance, rectify the same at Lessor's expense. If Lessee does not give Lessor written notice of a
non-compliance with this warranty within six (6) months following the Commencement Date, correction of that non-compliance shall be the obligation of Lessee at Lessee's
sole cost and expense. 

        2.4    Acceptance of Premises.    Subject to Lessor's warranties in Sections 2.2 and 2.3, Lessee hereby acknowledges:
(a) that it has been advised by the Brokers to satisfy itself with respect to the condition of the Premises (including but not limited to the electrical and fire sprinkler systems, security,
environmental aspects, compliance with Applicable Law, as defined in paragraph 6.3) and the present and future suitability of the Premises for Lessee's intended use, (b) that Lessee has
made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to Lessee's occupancy of the Premises and/or the term of this
Lease, and (c) that neither Lessor, nor any of Lessor's agents, has made any oral or written representations or warranties with respect to the said matters other than as set forth in this
Lease. 

3.     Term.  

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

        3.2    Early Possession.    If Lessee totally or partially occupies the Premises prior to the Commencement Date, the
obligation to pay Base Rent shall be abated for the period of such early possession. All other terms of this Lease, however, (including but not limited to the obligations to pay Real Property Taxes
and insurance premiums and to maintain the Premises) shall be in effect during such period. Any such early possession shall not affect nor advance the Expiration Date of the Original Term. 

        3.3    Delay In Possession.    If for any reason Lessor cannot deliver possession of the Premises to Lessee as agreed
herein by the Early Possession Date, if one is specified in paragraph 1.4, or, if no Early Possession Date is specified, by the Commencement Date, Lessor shall not be subject to any liability
therefor, nor shall such failure affect the validity of this Lease, or the obligations of Lessee hereunder, or extend the term hereof, but in such case, Lessee shall not pay Base Rent and, except as
otherwise provided herein, not be obligated to pay any other rent or perform any other obligation of Lessee under the terms of this Lease, until Lessor delivers possession of the Premises to Lessee.
If possession of the Premises is not delivered to Lessee within sixty (60) days
after the Commencement Date, Lessee may at its option, by notice in writing to Lessor within ten (10) days thereafter, cancel this Lease, in which event the Parties shall be discharged from
all obligations hereunder; provided, however, that if such written notice by Lessee is not received by Lessor within said ten (10) day period, Lessee's right to cancel this Lease shall
terminate and be of no further force or effect. Except as may be otherwise provided, and regardless of when the term actually commences, if possession is not tendered to Lessee when required by this
Lease and Lessee does not terminate this Lease, as aforesaid the period free of the obligation to pay Base Rent, if any, that Lessee would otherwise have enjoyed shall run from the date of delivery of
possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts, changes or omissions of Lessee. 

4.     Rent.  

        4.1    Base Rent.    Lessee shall cause payment of Base Rent and other rent or charges as the same may be adjusted from
time to time, to be received by Lessor in lawful money of the United States, without offset or deduction, on or before the day on which it is due under the terms of this Lease. Base Rent and all other
rent and charges for any period during the term hereof which is for less than one (1) full calendar month shall be prorated based upon the actual number of days of the calendar month involved.
Payment of Base Rent and other charges shall be made to Lessor at its address stated herein or to such other persons or at such other addresses as Lessor may from time to time designate in writing to
Lessee. 

5.    Security Deposit.    Lessee shall deposit with Lessor upon execution hereof the Security Deposit set forth in
Paragraph 1.7 as security for Lessee's faithful performance of Lessee's obligations under this Lease. If Lessee fails to pay Base Rent or other rent or charges due hereunder, or otherwise
defaults under this Lease (as defined in Paragraph 13.1), Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or
compensate Lessor for any liability, cost, expense, loss or damage (including attorneys' fees) which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of said
Security Deposit, Lessee shall within ten (10) days after written request therefor deposit moneys with Lessor sufficient to restore said Security Deposit to the full amount required by this
Lease. Any time the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional moneys with Lessor sufficient to maintain the same ratio
between the Security Deposit and the Base Rent as those amounts are specified in the Basic Provisions. Lessor shall not be required to keep all or any part of the Security Deposit separate from its
general accounts. Lessor shall, at the expiration or earlier termination of the term hereof and after Lessee has vacated the premises, return to Lessee (or, at Lessor's option, to the last assignee,
if any, of Lessee's interest herein), that portion of the Security Deposit not used or applied by Lessor. Unless otherwise expressly agreed in writing by Lessor, no part of the Security Deposit shall
be considered to be held in trust, to bear interest or other increment for its use, or to be prepayment for any moneys to be paid by Lessee under this Lease. 

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6.     Use.  

        6.1    Use.    Lessee shall use and occupy the Premises only for the purposes set forth in Paragraph 1.8, or any
other use which is comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that creates waste or a nuisance, or that disturbs owners and/or
occupants of, or causes damage to, neighboring premises or properties. Lessor hereby agrees to not unreasonably withhold or delay its consent to any written request by Lessee, Lessee's assignees or
subtenants, and by prospective assignees or subtenants of the Lessee, its assignees and subtenants, for a modification of said
permitted purpose for which the Premises may be used or occupied, so long as the same will not impair the structural integrity of the improvements on the Premises, the mechanical or electrical systems
therein, is not significantly more burdensome to the Premises and the improvements thereon, and is otherwise permissible pursuant to this Paragraph 6. If Lessor elects to withhold such consent,
Lessor shall within five (5) business days give a written notification of same, which notice shall include an explanation of Lessor's reasonable objections to the change in use. 

        6.2    Hazardous Substances:    

        (a)   Reportable Uses Require Consent:    The term "Hazardous Substance"
as used in this Lease shall mean any product, substance, chemical, material or waste whose presence, nature, quantity and/or intensity of existence, use, manufacture, disposal, transportation, spill,
release or effect either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the
environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for liability of Lessor to any governmental agency or third party under any
applicable statute or common law theory. Hazardous Substance shall include, but not be limited to hydrocarbons, petroleum, gasoline, crude oil or any products, by-products or fractions
thereof. Lessee shall not engage in any activity in, on or about the Premises which constitutes a Reportable Use (as hereinafter defined) of Hazardous Substances without the express prior written
consent of Lessor and compliance in a timely manner (at Lessee's sole cost and expense) with all Applicable Law (as defined in paragraph 6.3). "Reportable
Use" shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal
of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority. Reportable Use
shall also include Lessee's being responsible for the presence in, on or about the Premises of a Hazardous Substance with respect to which any Applicable Law requires that a notice be given to persons
entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may, without Lessor's prior consent, but in compliance with all Applicable Law, use any ordinary and
customary materials reasonably required to be used by Lessee in the normal course of Lessee's business permitted on the Premises, so long as such use is not a Reportable Use and does not expose the
Premises or neighboring properties to any meaningful risk of contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may (but without any obligation to do so) condition
its consent to the use or presence of any Hazardous Substance, activity or storage tank by Lessee upon Lessee's giving Lessor such additional assurances as Lessor, in its reasonable discretion, deems
necessary to protect itself, the public, the Premises and the environment against damage, contamination or injury and/or liability therefrom or therefor, including, but not limited to, the
installation (and removal on or before Lease expiration or earlier termination) of reasonably necessary protective modifications to the Premises (such as concrete encasements). 

        (b)   Duty to Inform Lessor.    If lessee knows, or has reasonable cause to believe, that a Hazardous Substance, or a
condition involving or resulting from same, has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of
such fact to Lessor. Lessee shall also promptly give Lessor a copy of any material statement, report, notice, registration, application, permit, business plan, license, claim, action or proceeding
given to, or received from, any governmental authority or private party or persons entering or occupying the Premises, concerning the presence, spill, release, discharge of, or exposure to, any
Hazardous Substance or contamination in, on, or about the Premises, including but not limited to all such documents as may be involved in any Reportable Uses involving the Premises. 

        (c)   Indemnification.    Lessee shall indemnify, protect, defend and hold Lessor, its agents, employees, lenders and
ground Lessor, if any, and the Premises, harmless from and against any and all loss of rents and/or damages, liabilities, judgments, costs, claims, liens, expenses, penalties, permits and attorney's
and consultant's fees arising out of or involving any Hazardous Substance or storage tank brought onto the Premises by or for Lessee or under Lessee's control. Lessee's obligations under this
Paragraph 6 shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created by Lessee or any of its employees, agents,
contractors, licensees or invitees, and the cost of investigation (including consultant's and attorney's fees and testing), removal, remediation, restoration and/or abatement thereof, or any
contamination therein involved, and shall survive the expiration or earlier termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release
Lessee from its obligations under this Lease with respect to Hazardous Substances or storage tanks, unless specifically so agreed by Lessor in writing at the time of such agreement. 

        (d)   Lessor Representations.    To the knowledge of Lessor without inquiry, (i) no Hazardous Substances are
present on the Premises or the soil, surface water or groundwater thereof, (ii) no underground storage tanks or asbestos containing 

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building
materials are present on the Premises, and (iii) no action, proceeding, or claim is pending or threatened against the Premises concerning any Hazardous Substances. Lessor shall not be
indemnified from and shall indemnify, defend, protect and hold Lessee, its agents, officers, directors and shareholders, harmless from and against all claims, losses, costs, damages, liabilities
(including, without limitation, sums paid in settlement of claims), and expenses (including, without limitation, reasonable attorneys', experts' and consultants' fees, investigation and laboratory
fees and litigation expenses) arising out of or based upon the presence of any Hazardous Substances on, under, in or about the Premises, except to the extent the same actually results from Lessee's
release or emission of Hazardous Substances on or about the Premises in violation of Applicable Laws. 

        6.3    Lessee's Compliance with Law.    Except as otherwise provided in this Lease, Lessee, shall, at Lessee's sole cost
and expense, fully, diligently and in a timely manner, comply with all "Applicable Law," which term is used in this Lease to include all laws, rules,
regulations, ordinances, directives, covenants, easements and restrictions of record, permits, the requirements of any applicable fire insurance underwriter or rating bureau and the recommendations of
Lessor's engineers and/or consultants, relating in any manner to the Premises (including but not limited to matters pertaining to (i) industrial hygiene, (ii) environmental conditions
on, in, under or about the Premises, including soil and groundwater conditions, and (iii) the use, generation, manufacture, production, installation, maintenance, removal, transportation,
storage, spill release of any Hazardous Substance or storage tank), now in effect or which may hereafter come into effect, and whether or not reflecting a change in policy from any previously existing
policy. Lessee shall, within five (5) days after receipt of Lessor's written request, provide Lessor with copies of all documents and information, including, but not limited to, permits,
registrations, manifests, applications, reports and certificates, evidencing Lessee's compliance with any Applicable Law specified by Lessor, and shall immediately upon receipt, notify Lessor in
writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving failure by Lessee or the Premises to comply
with any Applicable Law. Lessee shall not be required to construct or to pay the cost of complying with any Applicable Laws requiring construction of improvements in the Premises which could be
capitalized under generally accepted accounting principles ("GAAP"), unless such compliance is necessitated solely because of Lessee's particular use of the Premises. 

        6.4    Inspection; Compliance.    Lessor and Lessor's Lender(s) (as defined in paragraph 8.3(a)) shall have the
right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of the Premises and for verifying compliance by
Lessee with this Lease and all Applicable Laws (as defined in paragraph 6.3), and to employ experts and/or consultants in connection therewith and/or to advise Lessor with respect to Lessee's
activities, including but not limited to the installation, operation, use, monitoring, maintenance, or removal of any Hazardous Substance or storage tank on or from the Premises. The costs and
expenses of any such inspections shall be paid by the party requesting same, unless a Breach of this Lease, or a contamination caused or materially contributed to by Lessee or any of its employees,
agents, contractors, licensees or invitees, is found to exist or be imminent, or unless the inspection is requested or ordered by a governmental authority as the result of any such existing or
imminent violation or contamination. In any such case, Lessee shall upon request reimburse Lessor or Lessor's Lender, as the case may be, for the costs and expenses of such inspections. 

7.     Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations.  

        7.1    Lessee's Obligations.    

        (a)   Except
as otherwise set forth in Paragraph 2.2 (Lessor's warranty as to condition), 2.3 (Lessor's warranty as to compliance with the covenants, etc.), 7.2
(Lessor's obligations to repair), 9 (damage and destruction), and 14 (condemnation), Lessee shall, at Lessee's sole cost and expense and at all times, keep the Premises and every part thereof in good
order, condition and repair, structural and non-structural (whether or not such portion of the Premises requiring repair, or the means of repairing the same, are reasonably or readily
accessible to Lessee, and whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements or the age of such portion of the Premises), including, without
limiting the generality of the foregoing, all equipment or facilities serving the Premises, such as plumbing, heating, air conditioning, ventilating, electrical, lighting facilities, boilers, fired or
unfired pressure vessels, fire sprinkler and/or standpipe and hose or other automatic fire extinguishing system, including fire alarm and/or smoke detection systems and equipment, fire hydrants,
fixtures, the non-structural components of all walls (interior and exterior), foundations, ceilings, roof, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking
lots, fences, retaining walls, signs, sidewalks and parkways located in, on, about, or adjacent to the Premises. Lessee shall not cause or permit any party on the Premises to cause any Hazardous
Substance to be spilled or released in, on, under or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee's expense, take all investigatory and/or
remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of, the Premises, the
elements surrounding same, or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance and/or storage tank brought onto the
Premises by or for Lessee or under its control. Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices. Lessee's obligations shall
include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair. 

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        (b)   Lessee
shall, at Lessee's sole cost and expense, procure and maintain contracts, with copies to Lessor, in customary form and substance for, and with contractors
specializing and experienced in the inspection, maintenance and service of the following equipment and improvements, if any, located on the Premises: (i) heating, air conditioning and
ventilation equipment, (ii) boiler, fired or unfired pressure vessels, (iii) fire sprinkler and/or standpipe and hose or other automatic fire extinguishing systems, including fire alarm
and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof covering and drain maintenance and (vi) asphalt and parking lot maintenance. 

        7.2    Lessor's Obligations.    Except for any repairs or maintenance necessitated by the acts or omissions of Lessee or
Lessee's employees, agents, contractors, licensees or invitees, Lessor shall perform any repair or maintenance (i) necessitated solely by the acts or omissions of Lessor or its agents,
employees or contractors, (ii) to the structural portions of foundation, walls, and roof of the Premises or (iii) which is treated as a "capital expenditure" under generally accepted
accounting principals ("GAAP"). Notwithstanding the foregoing, Lessee shall pay Lessor a portion of the expense for any repair or replacement to a nonstructural portion of the Premises which is
treated as a "capital expenditure" under GAAP as follows: the cost of such improvement shall be amortized over the useful life of the improvement in accordance with GAAP, and Lessee shall pay (at the
same time payments of Base Rent are due) the amortization payment for each month after such repair or replacement is completed until the earlier of the expiration of the Lease term or the end of the
term over which such costs were amortized. Except for the obligations of Lessor contained in this Paragraph 7.2 or in Paragraphs 2.2 (relating to condition of the Premises), 2.3 (relating to
compliance with covenants, restrictions and building code), 9 (relating to destruction of the Premises) and 14 (relating to condemnation of the Premises), it is intended by the Parties hereto that
Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, the improvements located thereon, or the equipment therein, whether structural or non-structural,
all of which obligations are intended to be that of the Lessee under Paragraph 7.1 hereof. It is the intention of the Parties that the terms of this Lease govern the respective obligations of
the Parties as to maintenance and repair of the Premises. Lessee and Lessor expressly waive the benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of
this Lease with respect to, or which affords Lessee the right to make repairs at the expense of Lessor or to terminate this Lease by reason of, any needed repairs. 

        7.3    Utility Installations; Trade Fixtures; Alterations.    

        (a)   Definitions; Consent Required.    The term "Utility Installations"
is used in this Lease to refer to all carpeting, window coverings, air lines, power panels, electrical distribution, security, fire protection systems, communication systems, lighting fixtures,
heating, ventilating, and air conditioning equipment, plumbing, and fencing in, on or about the Premises. The term "Trade Fixtures" shall mean Lessee's
machinery, furniture, personal property and equipment that can be removed without doing material damage to the Premises. The term "Alterations" shall mean
any modification of the improvements on the Premises from that which are provided by Lessor under the terms of this Lease, other than Utility Installations or Trade Fixtures, whether by addition or
deletion. "Lessee Owned Alterations and/or Utility Installations" are defined as Alterations and/or Utility Installations made by Lessee that are not yet
owned by Lessor as defined in paragraph 7.4(a). Lessee shall not make any Alterations or Utility Installations in, on, under or about the Premises without Lessor's prior written consent, which
consent shall not be unreasonably withheld or delayed. Lessee may, however, make non-structural Utility Installations and Alterations to the interior of the Premises (excluding the roof),
as long as they are not visible from the outside, do not involve puncturing, relocating or removing any existing Utility Installations or the roof or any walls, and the cost thereof for any single
project does not exceed $10,000.00 

        (b)   Consent.    Any Alterations or Utility Installations that Lessee shall desire to make and which require the
consent of the Lessor shall be presented to Lessor in written form with proposed detailed plans. All consents given by Lessor, whether by virtue of Paragraph 7.3(a) or by subsequent specific
consent, shall be deemed conditioned upon: (i) Lessee's acquiring all applicable permits required by governmental authorities, (ii) the furnishing of copies of such permits together with
a copy of the plans and specifications for the Alteration or Utility Installation to Lessor prior to commencement of the work thereon, and (iii) the compliance by Lessee with all conditions of
said permits in a prompt and expeditious manner. Any Alterations or Utility Installations by Lessee during the term of this Lease shall be done in a good and workmanlike manner, with good and
sufficient materials, and in compliance with all Applicable Law. Lessee shall promptly upon completion thereof furnish Lessor with as-built plans and specifications therefor. Lessor may
(but without obligation to do so) condition its consent to any requested Alteration or Utility Installation that costs $10,000 or more upon Lessee's providing Lessor with a lien and completion bond in
an amount equal to one and one-half times the estimated cost of such Alteration or Utility Installation. 

        (c)   Indemnification.    Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have
been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanics' or materialmen's lien against the Premises or any interest therein. Lessee shall
give Lessor not less than ten (10) days' notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of
non-responsibility in or on the Premises as provided by law. If Lessee shall, in good faith, contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense
defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof against the Lessor
or the Premises. If Lessor shall require, Lessee shall furnish to Lessor a surety bond satisfactory to Lessor in an amount equal to one and one-half times the amount of such contested lien
claim or demand, indemnifying Lessor against liability of the same, as required by law for the holding of the Premises free from the effect of such lien or claim. In 

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addition,
Lessor may require Lessee to pay Lessor's attorney's fees and costs in participating in such action if Lessor shall decide it is to its best interest to do so. 

        7.4    Ownership; Removal; Surrender; and Restoration.    

        (a)   Ownership.    Subject to Lessor's right to require their removal or become the owner thereof as hereinafter
provided in this Paragraph 7.4, all Alterations and Utility Additions made to the Premises by Lessee shall be the property of and owned by Lessee, but considered a part of the Premises. Unless
otherwise instructed per subparagraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or earlier termination of this Lease, become the property of Lessor
and remain upon and be surrendered by Lessee with the Premises. 

        (b)   Removal.    Unless otherwise agreed in writing, Lessor may require that any or all Lessee Owned Alterations or
Utility Installations be removed by the expiration or earlier termination of this Lease, notwithstanding their installation may have been consented to by Lessor. Lessor may require the removal at any
time of all or any part of any Lessee Owned Alterations or Utility
Installations made without the required consent of Lessor. Upon request, Lessor shall advise Lessee in writing whether it reserves the right to require Lessee to remove any Alterations or Utility
Installations from the Premises upon termination of the Lease. 

        (c)   Surrender/Restoration.    Lessee shall surrender the Premises by the end of the last day of the Lease term or any
earlier termination date, with all of the improvements, parts and surfaces thereof clean and free of debris and in good operating order, condition and state of repair, ordinary wear and tear excepted.  "Ordinary wear and
tear" shall not include any damage or deterioration that would have been prevented by good maintenance practice or by Lessee performing
all of its obligations under this Lease. Except as otherwise agreed or specified in writing by Lessor, the Premises, as surrendered, shall include the Utility Installations. The obligation of Lessee
shall include the repair of any damage occasioned by the installation, maintenance or removal of Lessee's Trade Fixtures, furnishings, equipment, and Alterations and/or Utility Installations, as well
as the removal of any storage tank installed by or for Lessee, and the removal, replacement, or remediation of any soil, material or ground water contaminated by Lessee, all as may then be required by
Applicable Law and/or good service practice. Lessee's Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee subject to its obligation to repair and restore the Premises per
this Lease. 

8.     Insurance; Indemnity.  

        8.1    Payment For Insurance.    Regardless of whether the Lessor or Lessee is the Insuring Party, Lessee shall pay for
all insurance required under this Paragraph 8 except to the extent of the commercially reasonable cost attributable to liability insurance carried by Lessor in excess of $1,000,000 per
occurrence. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be prorated to correspond to the Lease term. Payment shall be made by Lessee to Lessor within ten
(10) days following receipt of an invoice for any amount due. 

        8.2    Liability Insurance.    

        (a)   Carried by Lessee.    Lessee shall obtain and keep in force during the term of this a Commercial General
Liability policy of insurance protecting Lessee and Lessor (as an additional insured) against claims for bodily injury and property damage based upon, involving or arising out of the ownership, use,
occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per
occurrence with an "Additional Insured-Managers or Lessors of Premises" Endorsement and contain the "Amendment of the Pollution Exclusion" for damage caused by heat, smoke or fumes from a hostile
fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an "insured contract"
for the performance of Lessee's indemnity obligations under this Lease. The limits of said insurance required by this Lease or as carried by Lessee shall not, however, limit the liability of Lessee
nor relieve Lessee of any obligation hereunder. All insurance to be carried by Lessee shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be
considered excess insurance only. 

        (b)   Carried by Lessor.    In the event Lessor is the Insuring Party, Lessor shall also maintain liability insurance
described in Paragraph 8.2(a), above, in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein. 

        8.3    Property Insurance—Building, Improvements and Rental Value.    

        (a)   Building and Improvements.    The Insuring Party shall obtain and keep in force during the term of this Lease a
policy or policies in the name of Lessor, with loss payable to Lessor and to the holders of any mortgages, deeds of trust or ground leases on the Premises
("Lender(s)"), insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full replacement cost of the Premises, as the
same shall exist from time to time. If Lessor is the Insuring Party, however, Lessee Owned Alterations and Utility installations shall be insured by Lessee under Paragraph 8.4 rather than by
Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (including, at Lessor's option, the perils
of flood and/or earthquake), including coverage for any additional costs resulting from debris removal and reasonable amounts of coverage for the enforcement of any ordinance or law regulating the
reconstruction or replacement of any undamaged sections of the Premises required to be demolished or 

6

 

removed
by reason of the enforcement of any building, zoning, safety or land use laws as the result of a covered cause of loss. Said policy or policies shall also contain an agreed valuation provision
in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted
U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the deductible amount
shall not exceed $1,000 per occurrence, and Lessee shall be liable for such deductible amount in the event of an Insured Loss, as defined in Paragraph 9.1(c). 

        (b)   Rental Value.    The Insuring Party shall, in addition, obtain and keep in force during the term of this Lease a
policy or policies in the name of Lessor, with loss payable to Lessor and Lender(s), insuring the loss of the full rental and other charges payable by Lessee to Lessor under this Lease for one
(1) year (including all real estate taxes, insurance costs, and any scheduled rental increases). Said insurance shall provide that in the event the Lease is terminated by reason of an insured
loss, the period of indemnity for such coverage shall be extended beyond the date of the completion of repairs or replacement of the Premises, to provide for one full year's loss of rental revenues
from the date of any such loss. Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the
projected rental income, property taxes, insurance premium costs and other expenses, if any, otherwise payable by Lessee, for the next twelve (12) month period. Lessee shall be liable for any
deductible amount in the event of such loss. 

        (c)   Adjacent Premises.    If the Premises are part of a larger building, or if the Premises are part of a group of
buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings if said increase is caused
by Lessee's acts, omissions, use or occupancy of the Premises. 

        (d)   Tenant's Improvements.    If the Lessor is the Insuring Party, the Lessor shall not be required to insure Lessee
Owned Alterations and Utility Installations unless the item in question has become the property of Lessor under the terms of this Lease. If Lessee is the Insuring Party, the policy carried by Lessee
under this Paragraph 8.3 shall insure Lessee Owned Alterations and Utility Installations. 

        8.4    Lessee's Property Insurance.    Subject to the requirements of Paragraph 8.5, Lessee at its cost shall
either by separate policy or, at Lessor's option, by endorsement to a policy already carried, maintain insurance coverage on all of Lessee's personal property, Lessee Owned Alterations and Utility
Installations in, on or about the Premises similar in coverage to that carried by the Insuring Party under Paragraph 8.3. Such insurance shall be full replacement cost coverage with a
deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of personal property or the restoration of Lessee Owned Alterations
and Utility Installations. Lessee shall be the Insuring Party with respect to the insurance required by this Paragraph 8.4 and shall provide Lessor with written evidence that such insurance is
in force. 

        8.5    Insurance Policies.    Insurance required hereunder shall be in companies duly licensed to transact business in
the state where the Premises are located, and maintaining during the policy term a "General Policyholders Rating" of at least B+, V, or such other rating as may be required by a Lender having a lien
on the Premises, as set forth in the most current issue of "Best's Insurance Guide." Lessee shall not do or permit to be done anything which shall invalidate the insurance policies referred to in this
Paragraph 8. Lessee shall cause to be delivered to Lessor certified copies of policies of such insurance or certificates evidencing
the existence and amounts of such insurance with the insureds and loss payable clauses as required by this Lease. No such policy shall be cancelable or subject to modification except after thirty
(30) days prior written notice to Lessor. Lessee shall at least thirty (30) days prior to the expiration of such policies, furnish Lessor with evidence of renewals or "insurance binders"
evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. If the Insuring Party shall fail to
procure and maintain the insurance required to be carried by the Insuring Party under this Paragraph 8, the other Party may, but shall not be required to, procure and maintain the same, but at
Lessee's expense. 

        8.6    Waiver of Subrogation.    Notwithstanding anything to the contrary herein, Lessee and Lessor
("Waiving Party") each hereby release and relieve the other, and waive their entire right to recover damages (whether in contract or in tort) against the
other, regardless of the negligence or willful misconduct of the party so released, for loss of or damage to the Waiving Party's property arising out of or incident to the perils required to be
insured against under Paragraph 8. The effect of such releases and waivers of the right to recover damages shall not be limited by the amount of insurance carried or required, or by any
deductibles applicable thereto. 

        8.7    Indemnity.    Except for Lessor's negligence and/or breach of express warranties, Lessee shall indemnify,
protect, defend and hold harmless the Premises, Lessor and its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, costs,
liens, judgments, penalties, permits, attorney's and consultant's fees, expenses and/or liabilities arising out of, involving, or in dealing with, the occupancy of the Premises by Lessee, the conduct
of Lessee's business, any act, omission or neglect of Lessee, its agents, contractors, employees or invitees, and out of any Default or Breach by Lessee in the performance in a timely manner of any
obligation on Lessee's part to be performed under this Lease. The foregoing shall include, but not be limited to, the defense or pursuit of any claim or any action or proceeding involved 

7

 

therein,
and whether or not (in the case of claims made against Lessor) litigated and/or reduced to judgment, and whether well founded or not. In case any action or proceeding be brought against
Lessor by reason of any of the foregoing matters, Lessee upon notice from Lessor shall defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with
Lessee in such defense. Lessor need not have first paid any such claim in order to be so indemnified. 

        8.8    Exemption of Lessor from Liability.    Except to the extent of any gross negligence or willful misconduct of
Lessor, Lessor shall not be liable for injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of
pipes, fire sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises
or upon other portions of the building of which the Premises are a part, or from other sources or places, and regardless of whether the cause of such damage or injury or the means of repairing the
same is accessible or not. Lessor shall not be liable for any damages arising from any act or neglect of any other tenant of Lessor. Notwithstanding Lessor's negligence or breach of this Lease, Lessor
shall under no circumstances be liable for injury to Lessee's business or for any loss of income or profit therefrom. 

9.     Damage or Destruction.  

        9.1    Definitions.    

        (a)   "Premises Partial Damage" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned
Alterations and Utility Installations, the repair cost of which damage or destruction is less than 50% of the then Replacement Cost of the Premises immediately prior to such damage or destruction,
excluding from such calculation the value of the land and Lessee Owned Alterations and Utility Installations. 

        (b)   "Premises Total Destruction" shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and
Utility Installations, the repair cost of which damage or destruction is 50% or more of the then Replacement Cost of the Premises immediately prior to such damage or destruction, excluding from such
calculation the value of the land and Lessee Owned Alterations and Utility Installations. 

        (c)   "Insured Loss" shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and Utility
Installations, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved. 

        (d)   "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence
to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of applicable building codes, ordinances or laws, and without
deduction for depreciation. 

        (e)   "Hazardous Substance Condition" shall mean the occurrence or discovery of a condition involving the presence of, or a
contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises. 

        9.2    Partial Damage—Insured Loss.    If a Premises Partial Damage that is an Insured Loss occurs, then
Lessor shall, at Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall
continue in full force and effect. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party
shall promptly contribute the shortage in proceeds (except as to the deductible which is Lessee's responsibility) as and when required to complete said repairs. In the event, however, the shortage in
proceeds was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no
obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance
thereof, within ten (10) days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said ten
(10) day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If Lessor does not receive
such funds or assurance within said period, Lessor may nevertheless elect by written notice to Lessee within ten (10) days thereafter to make such restoration and repair as is commercially
reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and effect. If in such case Lessor does not so elect, then this Lease shall terminate sixty
(60) days following the occurrence of the damage or destruction. Unless otherwise agreed, Lessee shall in no event have any right to reimbursement from Lessor for any funds contributed by
Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3 rather than Paragraph 9.2, notwithstanding that
there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party. 

        9.3    Partial Damage—Uninsured Loss.    If a Premises Partial Damage that is not an Insured Loss occurs,
unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repair at Lessee's expense and this Lease shall continue in full force and effect, but subject to Lessor's
rights under Paragraph 13), Lessor may at Lessor's option, either: (i) repair such damage as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in
full force and effect, or 

8

 

(ii) give
written notice to Lessee within thirty (30) days after receipt by Lessor of knowledge of the occurrence of such damage of Lessor's desire to terminate this Lease as of the date
sixty (60) days following the giving of such notice. In the event Lessor elects to give such notice of Lessor's intention to terminate this Lease, Lessee shall have the right within ten
(10) days after the receipt of such notice to give written notice to Lessor of Lessee's commitment to pay for the repair of such damage totally at Lessee's expense and without reimbursement
from Lessor. Lessee shall provide Lessor with the required funds or satisfactory assurance thereof within thirty (30) days following Lessee's said commitment. In such event this Lease shall
continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible and the required funds are available. If Lessee does not give such notice and provide
the funds or assurance thereof within the times specified above, this Lease shall terminate as of the date specified in Lessor's notice of termination. In the event, however, that the damage or
destruction was caused by Lessee, Lessor shall have the right to recover Lessor's damages from Lessee except as released and waived in Paragraph 8.6. 

        9.4    Total Destruction.    Notwithstanding any other provision hereof, if a Premises Total Destruction occurs
(including any destruction required by any authorized public authority), this Lease shall terminate sixty (60) days following the date of such Premises Total Destruction, whether or not the
damage or destruction is an Insured Loss or was caused by a negligent or willful act of Lessee. In the event, however, that the damage or destruction was caused by Lessee, Lessor shall have the right
to recover Lessor's damages from Lessee except as released and waived in Paragraph 8.6. 

        9.5    Damage Near End of Term.    If at any time during the last six (6) months of the term of this Lease there
is damage for which the cost to repair exceeds one (1) month's Base Rent, whether or not an Insured Loss, Lessor may, at Lessor's option, terminate this Lease effective sixty (60) days
following the date of occurrence of such damage by giving written notice to Lessee of Lessor's election to do so within thirty (30) days after the date of occurrence of such damage. Provided,
however, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by, within twenty (20) days following the
occurrence of the damage, or before the expiration of the time provided in such option for its exercise, whichever is earlier ("Exercise Period"),
(i) exercising such option, and (ii) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs. If Lessee duly exercises such
option during said Exercise Period and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor's expense repair such damage as
soon as reasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and provide such funds or assurance during said Exercise Period, then Lessor
may at Lessor's option terminate this Lease as of the expiration of said sixty (60) day period following the occurrence of such damage by giving written notice to Lessee of Lessor's election to
do so within ten (10) days after the expiration of the Exercise Period, notwithstanding any term or provision in the grant of option to the contrary. 

        9.6    Abatement of Rent; Lessee's Remedies.    

        (a)   In
the event of damage described in Paragraph 9.2 (Partial Damage—Insured), whether or not Lessor or Lessee repairs or restores the Premises, the Base
Rent, Real Property Taxes, insurance premiums, and other charges, if any, payable by Lessee hereunder for the period during which such damage, its repair or the restoration continues (not to exceed
the period for which rental value insurance is required under Paragraph 8.3(b)), shall be abated in proportion to the degree to which Lessee's use of the Premises is impaired. Except for
abatement of Base Rent, Real Property Taxes, insurance premiums, and other charges, if any, as aforesaid, all other obligations of Lessee hereunder shall be performed by Lessee, and Lessee shall have
no claim against Lessor for any damage suffered by reason of any such repair or restoration. 

        (b)   If
Lessor shall be obligated to repair or restore the Premises under the provisions of this Paragraph 9 and shall not commence, in a substantial and meaningful
way, the repair or restoration of the Premises within ninety (90) days after such obligation shall accrue, Lessee may at any time prior to the commencement of such repair or restoration, give
written notice to Lessor and to any Lenders of which Lessee has actual notice of Lessee's election to terminate this Lease on a date not less than sixty (60) days following the giving of such
notice. If Lessee gives such notice to Lessor and such Lenders and such repair or restoration is not commenced within thirty (30) days after receipt of such notice, this Lease shall terminate
as of the date specified in said notice. If Lessor or a Lender commences the repair or restoration of the Premises within thirty (30) days after receipt of such notice, this Lease shall
continue in full force and effect. "Commence" as used in this Paragraph shall mean either the unconditional authorization of the preparation of the
required plans, or the beginning of the actual work on the Premises, whichever first occurs. 

        9.7    Hazardous Substance Conditions.    If a Hazardous Substance Condition occurs, unless Lessee is legally
responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by Applicable Law and this Lease shall continue in full force and effect, but subject to
Lessor's rights under Paragraph 13), Lessor may at Lessor's option either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at
Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to investigate and remediate such condition exceeds twelve (12) times
the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee within thirty (30) days after receipt by Lessor of knowledge of the occurrence of such Hazardous
Substance Condition of Lessor's desire to terminate this Lease as of the date sixty (60) days following the giving of such notice. In the event Lessor elects to give such notice of Lessor's
intention to terminate this Lease, Lessee shall have the right within ten (10) days after the receipt of such notice to give written notice to Lessor of Lessee's commitment to pay for the
investigation and remediation of 

9

 

such
Hazardous Substance Condition totally at Lessee's expense and without reimbursement from Lessor except to the extent of an amount equal to twelve (12) times the then monthly Base Rent or
$100,000, whichever is greater. Lessee shall provide Lessor with the funds required of Lessee or satisfactory assurance thereof within thirty (30) days following Lessee's said commitment. In
such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such investigation and remediation as soon as reasonably possible and the required funds are available.
If Lessee does not give such notice and provide the required funds or assurance thereof within the times specified above, this Lease shall terminate as of the date specified in Lessor's notice of
termination. If a Hazardous Substance Condition occurs for which Lessee is not legally responsible, there shall be abatement of Lessee's obligations under this Lease to the same extent as provided in
Paragraph 9.6(a) for a period of not to exceed twelve (12) months. 

        9.8    Termination—Advance Payments.    Upon termination of this Lease pursuant to this Paragraph 9,
an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee's Security
Deposit as has not been, or is not then required to be, used by Lessor under the terms of this Lease. 

        9.9    Lessee's Termination Right.    In the event of any damage or casualty covered under this Article 9, unless
Lessor has elected to terminate this Lease under a right to do so granted herein, Lessor shall, no later than (45) forty-five days following the date of such damage, provide to
Lessee the time reasonably estimated by Lessor's architect that it will take to restore the Premises (Estimated Restoration Period:"). In the event that the Estimated Restoration Period exceeds one
hundred and sixty (160) days, or if the restoration is not completed within thirty (30) days following the end of the Estimated Restoration Period, then, notwithstanding anything to the
contrary in this Lease, Lessee shall have the right to terminate this Lease by written notice delivered to Lessor no later than ten (10) days following receipt by Lessee of the architect's
estimate, or, in the event such restoration is not completed within thirty (30) days following the end of the Estimated Restoration Period, then no later than ten (10) days following the
end of such thirty (30) day period. 

        9.10    Waive Statutes.    Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to
or destruction of the Premises with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith. 

10.   Real Property Taxes.  

        10.1 

        (a)   Payment of Taxes.    Lessee shall pay the Real Property Taxes, as defined in Paragraph 10.2, applicable to
the Premises during the term of this Lease. Subject to Paragraph 10.1(b), all such payments shall be made at least ten (10) days prior to the delinquency date of the applicable
installment. Lessee shall promptly furnish Lessor with satisfactory evidence that such taxes have been paid. If any such taxes to be paid by Lessee shall cover any period of time prior to or after the
expiration or earlier termination of the term hereof, Lessee's share of such taxes shall be equitably prorated to cover only the period of time within the tax fiscal year this Lease is in effect, and
Lessor shall reimburse Lessee for any overpayment after such proration. If Lessee shall fail to pay any Real Property Taxes required by this Lease to be paid by Lessee, Lessor shall have the right to
pay the same, and Lessee shall reimburse Lessor therefor upon demand. Lessee shall not be required to pay any portion of any tax or assessment expense (i) in excess of the amount which would be
payable if such tax or assessment expense were paid in installments over the longest possible term, or (ii) attributable to gift, transfer or franchise taxes. 

        (b)   Advance Payment.    In order to ensure payment when due and before delinquency of any or all Real Property Taxes,
Lessor reserves the right, at Lessor's option, to estimate the current Real Property Taxes applicable to the Premises, and to require such current year's Real Property Taxes to be paid in advance to
Lessor by Lessee, either: (i) in a lump sum amount equal to the installment due, not earlier than twenty (20) days prior to the applicable delinquency date, or (ii) monthly in
advance with the payment of the Base Rent. If Lessor elects to require payment monthly in advance, the monthly payment shall be that equal monthly amount which, over the number of months remaining
before the month in which the applicable tax installment would become delinquent (and without interest thereon), would provide a fund large enough to fully discharge before delinquency the estimated
installment of taxes to be paid. When the actual amount of the applicable tax bill is known, the amount of such equal monthly advance payment shall be adjusted as required to provide the fund needed
to pay the applicable taxes before delinquency. If the amounts paid to Lessor by Lessee under the provisions of this Paragraph are insufficient to discharge the obligations of Lessee to pay such Real
Property Taxes as the same becomes due, Lessee shall pay to Lessor, upon Lessor's demand, such additional sums as are necessary to pay such obligations. All moneys paid to Lessor under this Paragraph
may be intermingled with other moneys of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance of the obligations of Lessee under this Lease, then any balance of
funds paid to Lessor under the provisions of this Paragraph may, subject to proration as provided in Paragraph 10.1(a), at the option of Lessor, be treated as an additional Security Deposit
under Paragraph 5. 

        10.2    Definition of "Real Property Taxes".    As used herein, the term of "Real Property
Taxes" shall include any form of real estate tax or assessment, general, special, ordinary or extraordinary, and any license fee, commercial rental tax, improvement 

10

 

bond
or bonds, levy or tax (other than inheritance, personal income or estate taxes) imposed upon the Premises by any authority having the direct or indirect power to fax, including any city, state or
federal government, or any school, agricultural, sanitary, fire, street, drainage or other improvement district thereof, levied against any legal or equitable interest of Lessor in the Premises or in
the real property of which the Premises are a part, Lessor's right to rent or other income therefrom, and/or Lessor's business of leasing the Premises. The term "Real Property
Taxes" shall also include any tax, fee, levy, assessment or charge, or any increase therein, imposed by reason of events occurring, or changes in applicable law taking effect,
during the term of this Lease, including but not limited to a change in the ownership of the Premises or in the improvements thereon, the execution of this Lease, or any modification, amendment or
transfer thereof, and whether or not contemplated by the Parties. 

        10.3    Joint Assessment.    If the Premises are not separately assessed, Lessee's liability shall be an equitable
proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be determined by Lessor from the respective valuations assigned
in the assessor's work sheets or such other information as may be reasonably available. Lessor's reasonable determination thereof, in good faith, shall be conclusive. 

        10.4    Personal Property Taxes.    Lessee shall pay prior to delinquency all taxes assessed against and levied upon
Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee contained in the Premises or elsewhere. When possible, Lessee shall cause
its Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee's said personal property shall be
assessed with Lessor's real property, Lessee shall pay Lessor the taxes attributable to Lessee within ten (10) days after receipt of a written statement setting forth the taxes applicable to
Lessee's property or, at Lessor's option, as provided in Paragraph 10.1(b). 

11.    Utilities.    Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and
services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered to Lessee, Lessee shall pay a reasonable proportion, to be determined by Lessor, of
all charges jointly metered with other premises. 

12.   Assignment and Subletting.  

        12.1    Lessor's Consent Required.    

        (a)   Lessee
shall not voluntarily or by operation of law sell all or substantially all of Lessor's assets or assign, transfer, mortgage or otherwise transfer or encumber
(collectively, "assignment") or sublet all or any part of Lessee's interest in this Lease or in the Premises without Lessor's prior written consent given
under and subject to the terms of Paragraph 36. 

        (b)   Lessee
may, without Lessor's prior written consent and without constituting an assignment for purposes of the Lease, sublet the Premises or assign the Lease to:
(i) a subsidiary, affiliate, division or corporation controlling, controlled by or under common control with Lessee; (ii) a successor corporation related to Lessee by merger,
consolidation, nonbankruptcy reorganization, or government action; or (iii) a purchaser of substantially all of Lessee's assets located in the Premises. A sale of Lessee's capital stock shall
not be deemed an assignment, subletting or other transfer of the Lease or the Premises requiring Lessor's consent. 

11

  

        (c)   An
assignment or subletting of Lessee's interest in this Lease without Lessor's specific prior written consent shall, at Lessor's option, be a Default curable after
notice per Paragraph 13.1(c), or a noncurable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unconsented to assignment or subletting as a noncurable
Breach, Lessor shall have the right to either: (i) terminate this Lease, or (ii) upon thirty (30) days written notice ("Lessor's Notice"), increase the monthly Base Rent to fair
market rental value or one hundred ten percent (110%) of the Base Rent then in effect, whichever is greater. Pending determination of the new fair market rental value, if disputed by Lessee, Lessee
shall pay the amount set forth in Lessor's Notice, with any overpayment credited against the next installment(s) of Base Rent coming due, and any underpayment for the period retroactively to the
effective date of the adjustment being due and payable immediately upon the determination thereof. Further, in the event of such Breach and market value adjustment, (i) the purchase price of
any option to purchase the Premises held by Lessee shall be subject to similar adjustment to the then fair market value (without the Lease being considered an encumbrance or any deduction for
depreciation or obsolescence, and considering the Premises at its highest and best use and in good condition), or one hundred ten percent (110%) of the price previously in effect, whichever is
greater, (ii) any index-oriented rental or price adjustment formulas contained in this Lease shall be adjusted to require that the base index be determined with reference to the index
applicable to the time of such adjustment, and (iii) any fixed rental adjustments scheduled during the remainder of the Lease term shall be increased in the same ratio as the new market rental
bears to the Base Rent in effect immediately prior to the market value adjustment. 

        (d)   Lessee's
remedy for any breach of this Paragraph 12.1 by Lessor shall be limited to compensatory damages and injunctive relief. 

        12.2    Terms and Conditions Applicable to Assignment and Subletting.    

        (a)   Regardless
of Lessor's consent, any assignment or subletting shall not: (i) be effective without the express written assumption by such assignee or sublessee of
the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Base Rent and other sums
due Lessor hereunder or for the performance of any other obligations to be performed by Lessee under this Lease. 

        (b)   Lessor
may accept any rent or performance of Lessee's obligations from any person other than Lessee pending approval or disapproval of an assignment. Neither a delay in
the approval or disapproval of such assignment nor the acceptance of any rent or performance shall constitute a waiver or estoppel of Lessor's right to exercise its remedies for the Default or Breach
by Lessee of any of the terms, covenants or conditions of this Lease. 

        (c)   The
consent of Lessor to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting by Lessee or to any subsequent or
successive assignment or subletting by the sublessee. However, Lessor may consent to subsequent sublettings and assignments of the sublease or any amendments or modifications thereto without notifying
Lessee or anyone else liable on the Lease or sublease and without obtaining their consent, and such action shall not relieve such persons from liability under this Lease or sublease. 

        (d)   In
the event of any Default or Breach of Lessee's obligations under this Lease, Lessor may proceed directly against Lessee, any Guarantors or any one else responsible
for the performance of the Lessee's obligations under this Lease, including the
sublessee, without first exhausting Lessor's remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor or Lessee. 

        (e)   Each
request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor's determination as to the financial and
operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any, together with
a non-refundable deposit of $1,000 as reasonable consideration for Lessor's considering and processing the request for consent. Lessee agrees to provide Lessor with such other or
additional information and/or documentation as may be reasonably requested by Lessor. 

        (f)    If
any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment or entering into such sublease, be deemed, for the benefit of Lessor, to
have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assignment or sublease,
other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented in writing. 

        (g)   The
occurrence of a transaction described in Paragraph 12.1(c) shall give Lessor the right (but not the obligation) to require that the Security Deposit be
increased to an amount equal to six (6) times the then monthly Base Rent, and Lessor may make the actual receipt by Lessor of the amount required to establish such Security Deposit a condition
to Lessor's consent to such transaction. 

        (h)   Lessor,
as a condition to giving its consent to any assignment or subletting, may require that the amount and adjustment structure of the rent payable under this Lease
be adjusted to what is then the market value and/or adjustment structure for property similar to the Premises as then constituted. 

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        (i)    If
Lessor consents to an assignment or subletting, then as a condition thereto which the parties hereby agree is reasonable, Lessee shall pay to Lessor fifty percent
(50%) of any "Transfer Premium," as that term is defined below, received by Lessee from the assignee or subtenant. "Transfer Premium" shall mean all rent,
additional rent or other consideration payable by such assignee or subtenant in connection with the Transfer in excess of the Rent payable by Lessee under this Lease (on a per rentable square foot
basis if less than all of the Premises is transferred), after deducting the reasonable expenses incurred by Lessee for any brokerage commissions in connection with the transfer. "Transfer Premium"
shall also include, but not be limited to, key money, bonus money or other cash consideration paid by the transferee to Lessee in connection with such transfer, and any payment in excess of fair
market value for services rendered by Lessee to or for the benefit of the transferee or for assets, fixtures, inventory, equipment, or furniture transferred by Lessee to the transferee in connection
with such transfer. 

        12.3    Additional Terms and Conditions Applicable to Subletting.    The following terms and conditions shall apply to
any subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein: 

        (a)   Lessee
hereby assigns and transfers to Lessor all of Lessee's interest in all rentals and income arising from any sublease of all or a portion of the Premises heretofore
or hereafter made by Lessee, and Lessor may collect such rent and income and apply same toward Lessee's obligations under this Lease; provided, however, that until a Breach (as defined in
Paragraph 13.1) shall occur in the performance of Lessee's obligations under this Lease, Lessee may, except as otherwise provided in this Lease,
receive, collect and enjoy the rents accruing under such sublease. Lessor shall not, by reason of this or any other assignment of such sublease to Lessor, nor by reason of the collection of the rents
from a sublessee, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee's obligations to such sublessee under such sublease. Lessee hereby irrevocably
authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee's obligations under this Lease, to pay to Lessor the
rents and other charges due and to become due under the sublease. Sublessee shall rely upon any such statement and request from Lessor and shall pay such rents and other charges to Lessor without any
obligation or right to inquire as to whether such Breach exists and notwithstanding any notice from or claim from Lessee to the contrary. Lessee shall have no right or claim against said sublessee,
or, until the Breach has been cured, against Lessor, for any such rents and other charges so paid by said sublessee to Lessor. 

        (b)   In
the event of a Breach by Lessee in the performance of its obligations under this Lease, Lessor, at its option and without any obligation to do so, may require any
sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such
sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any other prior Defaults or Breaches of such sublessor
under such sublease. 

        (c)   Any
matter or thing requiring the consent of the sublessor under a sublease shall also require the consent of Lessor herein. 

        (d)   No
sublessee shall further assign or sublet all or any part of the Premises without Lessor's prior written consent. 

        (e)   Lessor
shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace
period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. 

13.   Default; Breach; Remedies.  

        13.1    Default; Breach.    Lessor and Lessee agree that if an attorney is consulted by Lessor in connection with a
Lessee Default or Breach (as hereinafter defined), $350.00 is a reasonable minimum sum per such occurrence for legal services and costs in the preparation and service of a notice of Default, and that
Lessor may include the cost of such services and costs in said notice as rent due and payable to cure said Default. A "Default" is defined as a failure by
the Lessee to observe, comply with or perform any of the terms, covenants, conditions or rules applicable to Lessee under this Lease. A "Breach" is
defined as the occurrence of any one or more of the following Defaults, and, where a grace period for cure after notice is specified herein, the failure by Lessee to cure such Default prior to the
expiration of the applicable grace period, shall entitle Lessor to pursue the remedies set forth in Paragraphs 13.2 and/or 13.3: 

        (a)   The
abandonment of the Premises. 

        (b)   Except
as expressly otherwise provided in this Lease, the failure by Lessee to make any payment of Base Rent or any other monetary payment required to be made by Lessee
hereunder, whether to Lessor or to a third party, as and when due, the failure by Lessee to provide Lessor with reasonable evidence of insurance or surety bond required under this Lease, or the
failure of Lessee to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of five (5) days following written notice
thereof by or on behalf of Lessor to Lessee. 

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        (c)   Except
as expressly other otherwise provided in this Lease, the failure by Lessee to provide Lessor with reasonable written evidence (in duly executed original form, if
applicable) of (i) compliance with applicable law per Paragraph 6.3 where the failure to comply could result in material liability to Lessee or Lessor, (ii) the inspection,
maintenance and service contracts required under Paragraph 7.1(b), (iii) the recession of an unauthorized assignment or subletting per Paragraph 12.1(b), (iv) a Tenancy
Statement per Paragraphs 16 or 37, (v) the subordination or non-subordination of this Lease per Paragraph 30, (vi) the guaranty of the performance of Lessee's
obligations under this Lease if required under Paragraphs 1.11 and 37, (vii) the execution of any document requested under Paragraph 42 (easements), or (viii) any other
documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of fifteen (15) days following written
notice by or on behalf of Lessor to Lessee. 

        (d)   A
Default by Lessee as to the terms, covenants, conditions or provisions of this Lease that are to be observed, complied with or performed by Lessee, other than those
described in subparagraphs (a), (b) or (c), where such Default continues for a period of thirty (30) days after written notice thereof by or on behalf of Lessor to Lessee; provided,
however, that if the nature of Lessee's Default is such that more than thirty (30) days are reasonably required for its cure, then it shall not be deemed to be a Breach of this Lease by Lessee
if Lessee commences such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion. 

        (e)   The
occurrence of any of the following events: (i) The making by Lessee of any general arrangement or assignment for the benefit of creditors;
(ii) Lessee's becoming a "debtor" as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within
sixty (60) days; (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease,
where possession is not restored to Lessee within thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the
Premises or of Lessee's interest in this Lease, where such seizure is not discharged within thirty (30) days; provided, however, in the event that any provision of this subparagraph
(e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions. 

        (f)    The
discovery by Lessor that any financial statement given to Lessor by Lessee or any Guarantor of Lessee's obligations hereunder was materially false. 

        (g)   If
the performance of Lessee's obligations under this Lease is guaranteed: (i) the death of a guarantor, (ii) the termination of a guarantor's liability
with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a guarantor's becoming insolvent or the subject of a bankruptcy filing, (iv) a guarantor's
refusal to honor the guaranty, or (v) a guarantor's breach of its guaranty obligation on an anticipatory breach basis, and Lessee's failure, within sixty (60) days following written
notice by or on behalf of Lessor to Lessee of any such event, to provide Lessor with written alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals
or exceeds the combined financial resources of Lessee and the guarantors that existed at the time of execution of this Lease. 

        13.2    Remedies.    If Lessee fails to perform any affirmative duty or obligation of Lessee under this Lease, within
the applicable time period as provided herein after written notice to Lessee (or in case of an emergency, without notice), Lessor may at its option
(but without obligation to do so), perform such duty or obligation on Lessee's behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental
licenses, permits or approvals. The costs and expenses of any such performance by Lessor shall be due and payable by Lessee to Lessor upon invoice therefor. If any check given to Lessor by Lessee
shall not be honored by the bank upon which it is drawn, Lessor, at its option, may require all future payments to be made under this Lease by Lessee to be made only by cashier's check for the next
twelve (12) months. In the event of a Breach of this Lease by Lessee, as defined in Paragraph 13.1, with or without further notice or demand, and without limiting Lessor in the exercise
of any right or remedy which Lessor may have by reason of such Breach, Lessor may: 

        (a)   Terminate
Lessee's right to possession of the Premises by any lawful means, in which case this Lease and the term hereof shall terminate and Lessee shall immediately
surrender possession of the Premises to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the worth at the time of the award of the unpaid rent which had been earned at
the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of
such rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the
time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment
proximately caused by the Lessee's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including but not limited to the
cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys' fees, and that portion of the leasing
commission paid by Lessor applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the prior sentence shall be computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). Efforts by Lessor to mitigate damages caused by Lessee's Default
or Breach of this Lease shall not waive Lessor's right to recover damages under this Paragraph. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor
shall have the right to 

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recover
in such proceeding the unpaid rent and damages as are recoverable therein, or Lessor may reserve therein the right to recover all or any part thereof in a separate suit for such rent and/or
damages. If a notice and grace period required under subparagraphs 13.1(b), (c) or (d) was not previously given, a notice to pay rent or quit, or to perform or quit, as the case may be,
given to Lessee under any statute authorizing the forfeiture of leases for unlawful detainer shall also constitute the applicable notice for grace period purposes required by subparagraphs 13.1(b),
(c) or (d). In such case, the applicable grace period under subparagraphs 13.1(b), (c) or (d) and under the unlawful detainer statute shall run concurrently after the one such
statutory notice, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor
to the remedies provided for in this Lease and/or by said statute. 

        (b)   Continue
the Lease and Lessee's right to possession in effect (in California under California Civil Code Section 1951.4) after Lessee's Breach and abandonment and
recover the rent as it becomes due, provided Lessee has the right to sublet or assign, subject only to reasonable limitations. See Paragraphs 12 and 36 for the limitations on assignment and subletting
which limitations Lessee and Lessor agree are reasonable. Acts of maintenance or preservation, efforts to relet the Premises, or the appointment of a receiver to protect the Lessor's interest under
the Lease, shall not constitute a termination of the Lessee's right to possession. 

        (c)   Pursue
any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the state wherein the Premises are located. 

        (d)   The
expiration or termination of this Lease and/or the termination of Lessee's right to possession shall not relieve Lessee from liability under any indemnity provisions
of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee's occupancy of the Premises. 

        13.3    Inducement Recapture in Event of Breach.    Any agreement by Lessor for free or abated rent or other charges
applicable to the Premises, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee's entering into this Lease, all of which
concessions are hereinafter referred to as "Inducement Provisions" shall be deemed conditioned upon Lessee's full and faithful performance of all of the
terms, covenants and conditions of this Lease to be performed or observed by Lessee during the term hereof as the same may be extended. Upon the occurrence of a Breach of this Lease by Lessee, as
defined in Paragraph 13.1, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further force or effect, and any rent, other charge, bonus, inducement
or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, and recoverable by Lessor, as additional rent
due under this Lease, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this Paragraph shall not
be deemed a waiver by Lessor of the provisions of this Paragraph unless specifically so stated in writing by Lessor at the time of such acceptance. 

        13.4    Late Charges.    Lessee hereby acknowledges that late payment by Lessee to Lessor of rent and other sums due
hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing
and accounting charges, and late charges which may be imposed upon Lessor by the terms of any ground lease, mortgage or trust deed covering the Premises. Accordingly, if any installment of rent or any
other sum due from Lessee shall not be received by Lessor or Lessor's designee within five (5) days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee
shall pay to Lessor a late charge equal to five percent (5%) of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will
incur by reason of late payment by Lessee. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee's Default or Breach with respect to such overdue amount, nor prevent
Lessor from exercising any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for three (3) consecutive
installments of Base Rent, then notwithstanding Paragraph 4.1 or any other provision of this Lease to the contrary, Base Rent shall, at Lessor's option become due and payable quarterly in
advance for the next year. If Lessee is delinquent in the payment of rent or any other charge and is subject to a late charge, Lessor agrees to waive the late charge if (i) Lessee has not been
delinquent in its payment of rent owed under the Lease during the six (6) month period preceding the rent delinquency in question and (ii) the rent due is paid within five
(5) days of Lessor's written notice to Lessee of the delinquent amount owed. 

        13.5    Breach by Lessor.    Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable
time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph 13.5, a reasonable time shall in no event be less than thirty (30) days after receipt by
Lessor, and by the holders of any ground lease, mortgage or deed of trust cover the Premises whose name and address shall have been furnished to Lessee in writing for such purpose, of written notice
specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor's obligation is such that more than thirty (30) days after such notice are
reasonably required for its performance, then Lessor shall not be in breach of this Lease if performance is commenced within such thirty (30) day period and thereafter diligently pursued to
completion. 

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14.    Condemnation.    If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of
the exercise of said power (all of which are herein called "condemnation"), this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession,
whichever first occurs. If more than ten percent (10%) of the floor area of the Premises, or more than twenty-five percent (25%) of the land area not occupied by any building, is taken by
condemnation, Lessee may, at Lessee's option, to be exercised in writing within ten (10) days after Lessor shall have given Lessee written notice of such taking (or in the absence of such
notice, within ten (10) days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not
terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in the
same proportion as the rentable floor area of the building located on the Premises. No reduction of Base Rent shall occur if the only portion of the Premises taken is land on which there is no
building. Any award for the taking of all or any part of the Premises under the power of eminent domain or any payment made under threat of the exercise of such power shall be the property of Lessor,
whether such award shall be made as compensation for diminution of value of the leasehold or for the taking of the fee, or as severance damages; provided, however, the Lessee shall be entitled to any
compensation, separately awarded to Lessee for Lessee's relocation expenses and/or loss of Lessee's Trade Fixtures. In the event that this Lease is not terminated by reason of such condemnation,
Lessor shall to the extent of its net severance damages received, over and above the legal and other expenses incurred by Lessor in the condemnation
matter, repair any damage to the Premises caused by such condemnation, except to the extent that Lessee has been reimbursed therefor by the condemning authority. Lessee shall be responsible for the
payment of any amount in excess of such net severance damages required to complete such repair. 

15.   Brokers' Fees.  

        15.1    The
Brokers named in Paragraph 1.10 are the procuring cause of this Lease. 

        15.2    Upon
execution of this Lease by both Parties, Lessor shall pay to said Brokers jointly, or in such separate shares as they may mutually designated in writing, a fee as
set forth in a separate written agreement between Lessor and said Brokers (or in the event there is no separate written agreement between Lessor and said Brokers, the sum of $  as per separate agreement)
for brokerage services rendered by said Brokers to Lessor in this transaction. 

        15.3    Unless
Lessor and Brokers have otherwise agreed in writing, Lessor further agrees that: (a) if Lessee exercises any option (as defined in Paragraph 39.1)
or any Option subsequently granted which is substantially similar to an Option granted to Lessee in this Lease or any option subsequently granted, or (b) if Lessee acquires any rights to the
Premises or other premises described in this Lease which are substantially similar to what Lessee would have acquired had an Option herein granted to Lessee been exercised, or (c) if Lessee
remains in possession of the Premises, with the consent of Lessor, after the expiration of the term of this Lease after having failed to exercise an Option, or (d) if said Brokers are the
procuring cause of any other lease or sale entered into between the Parties pertaining to the Premises and/or any adjacent property in which Lessor has an interest, or (e) if Base Rent is
increased, whether by agreement or operation of an escalation clause herein, then as to any of said transactions, Lessor shall pay said Brokers a fee in accordance with the schedule of said Brokers in
effect at the time of the execution of this Lease. 

        15.4    Any
buyer or transferee of Lessor's interest in this Lease, whether such transfer is by agreement or by operation of law, shall be deemed to have assumed Lessor's
obligation under this Paragraph 15. Each Broker shall be a third party beneficiary of the provisions of this Paragraph 15 to the extent of its interest in any commission arising from
this Lease and may enforce that right directly against Lessor and its successors. 

        15.5    Lessee
and Lessor each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder other than the Brokers, if any, named in
Paragraph 1.10) in connection with the negotiation of this Lease and/or the consummation of the transaction contemplated hereby, and that no broker or other person, firm or entity other than
said named Brokers is entitled to any commission or finder's fee in connection with said transaction. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless
from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party,
including any costs, expenses, and/or attorneys' fees reasonably incurred with respect thereto. 

        15.6    Lessor
and Lessee hereby consent to and approve all agency relationships, including any dual agencies, indicated in Paragraph 1.10. 

16.   Tenancy Statement.  

        16.1    Each
Party (as "Responding Party") shall within ten (10) days after written notice from the other Party (the
"Requesting Party") execute, acknowledge and deliver to the Requesting Party a statement in writing in a form similar to the then most current
"Tenancy Statement" form published by the American Industrial Real Estate Association, plus such additional information, confirmation and/or statements as
may be reasonably requested by the Requesting Party. 

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        16.2    If
Lessor desires to finance, refinance, or sell the Premises, any part thereof, or the building of which the Premises are a part, Lessee and all Guarantors of Lessee's
performance hereunder, shall deliver to any potential lender or purchaser designated by Lessor such financial statements of Lessee and such Guarantors as may be reasonably required by such lender or
purchaser, including but not limited to Lessee's financial statements for the past three (3) years. All such financial statements shall be received by Lessor and such lender or purchaser in
confidence and shall be used only for the purposes herein set forth. 

17.    Lessor's Liability.    The term "Lessor" as used herein shall mean the owner or
owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee's intended interest in the prior lease. In the event of a transfer of Lessor's title or
interest in the Premises or in this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor at the time of such transfer or
assignment. Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with
respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor provided the transferor assumes in writing such obligations. Subject to the foregoing, the
obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined. 

18.    Severability.    The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no
way affect the validity of any other provision hereof. 

19.    Interest on Past-Due Obligations.    Any monetary payment due Lessor hereunder, other than late charges, not
received by Lessor within thirty (30) days following the date on which it was due, shall bear interest from the date thirty-first (31st) day after it was due at the rate of ten percent (10%)
per annum, but not exceeding the maximum rate allowed by law, in addition to the potential late charge provided for in Paragraph 13.4. 

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

21.    Rent Defined.    All monetary obligations of Lessee to Lessor under the terms of this Lease are deemed to be rent. 

22.    No Prior or Other Agreements; Broker Disclaimer.    This Lease contains all agreements between the Parties with respect to any
matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is
relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the nature, quality and character of the
Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. 

23.   Notices.  

        23.1    All
notices required or permitted by this Lease shall be in writing and may be delivered in person (by hand or by messenger or courier service) or may be sent by
regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 23. The
addresses noted adjacent to a Party's signature on this Lease shall be that Party's address for delivery or mailing of notice purposes. Either Party may by written notice to the other specify a
different address for notice purposes, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for the purpose of mailing or delivering notices to
Lessee. A copy of all notices required or permitted to be given to Lessor hereunder shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time
hereafter designate by written notice to Lessee. 

        23.2    Any
notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery
date is shown, the postmark thereon. If sent by regular mail, the notice shall be deemed given three (3) business days after the same is addressed as required herein and mailed with postage
prepaid. Notices delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given one (1) business day after delivery of the same to the
United States Postal Service or courier. If notice is received on a Saturday or a Sunday or a legal holiday, it shall be deemed received on the next business day. 

24.    Waivers.    No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a
waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or any other term, covenant or condition hereof. Lessor's consent to, or approval
of, any such act shall not be deemed to render unnecessary the obtaining of Lessor's consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to
enforce the provision or provisions of this Lease requiring such consent. Regardless of Lessor's knowledge of a Default or Breach at the time of accepting rent, the acceptance of rent by Lessor shall
not be a waiver of any preceding Default or Breach by Lessee of any provision hereof, other than the failure of Lessee to pay the particular rent so accepted. Any payment given Lessor by Lessee may be
accepted by Lessor on account of monies or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or conditions
shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. 

17

 

25.    Recording.    Either Lessor or Lessee shall, upon request of the other, execute, acknowledge and deliver to the other a short
form memorandum of this Lease for recording purposes. The Party requesting recordation shall be responsible for payment of any fees or taxes applicable thereto. 

26.    No Right to Holdover.    Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or
earlier termination of this Lease. 

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

28.   Intentionally Omitted.  

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

30.   Subordination; Attornment; Non-Disturbance.  

        30.1    Subordination.    This Lease and any Option granted hereby shall be subject and subordinate to any ground lease,
mortgage, deed of trust, or other hypothecation or security device (collectively, "Security Device"), now or hereafter placed by Lessor upon the real
property of which the Premises are a part, to any and all advances made on the security thereof, and to all renewals, modifications, consolidations, replacements and extensions thereof. Lessee agrees
that the Lenders holding any such Security Device shall have no duty, liability or obligation to perform any of the obligations of Lessor under this Lease, but that in the event of Lessor's default
with respect to any such obligation, Lessee will give any Lender whose name and address have been furnished Lessee in writing for such purpose notice of Lessor's default and allow such Lender thirty
(30) days following receipt of such notice for the cure of said default before invoking any remedies Lessee may have by reason thereof. If any Lender shall elect to have this Lease and/or any
Option granted hereby superior to the lien of its Security Device and shall give written notice thereof to Lessee, this Lease and such Options shall be deemed prior to such Security Device,
notwithstanding the relative dates of the documentation or recordation thereof. 

        30.2    Attornment.    Subject to the non-disturbance provisions of Paragraph 30.3, Lessee agrees to
attorn to a Lender or any other party who acquires ownership of the Premises by reason of a foreclosure of a Security Device, and that in the event of such foreclosure, such new owner shall not:
(i) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership, (ii) be subject to any offsets or defenses which Lessee
might have against any prior lessor, or (iii) be bound by prepayment of more than one (1) month's rent. 

        30.3    Non-Disturbance.    With respect to Security Devices entered into by Lessor after the execution of
this Lease, Lessee's subordination of this Lease shall be subject to receiving written assurance (a "non-disturbance agreement") from the Lender that Lessee's possession and this Lease,
including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises, subject to such Lender's standard
terms and conditions. Lessor agrees to use commercially reasonable efforts to assist Lessee in obtaining a non-disturbance agreement from its existing lender. 

        30.4    Self-Executing.    The agreements contained in this Paragraph 30 shall be effective without
the execution of any further documents; provided, however, that upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of Premises, Lessee and Lessor shall
execute such further writings as may be reasonably required to separately document any such subordination or non-subordination, attornment and/or non-disturbance agreement as
is provided for herein. 

31.    Attorney's Fees.    If any party or Broker brings an action or proceeding to enforce the terms hereof or declare rights
hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorney's fees. Such fees may be awarded in the same suit or
recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term "Prevailing Party" shall include,
without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or
Broker of its claim or defense. The attorney's fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorney's fees reasonably
incurred. Lessor shall be entitled to attorney's fees, costs and expenses incurred in preparation and service of notices of Default and consultations in connection therewith, whether or not a legal
action is subsequently commenced in connection with such Default or resulting Breach. 

32.    Lessor's Access; Showing Premises; Repairs.    Lessor and Lessor's agents shall have the right to enter the Premises at any
time, in the case of an emergency, and otherwise at reasonable times for the purpose of showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs,
improvements or additions to the Premises or to the building of which they are a part, as Lessor may reasonably deem necessary. Lessor may at any time place on or about the Premises or Building any
ordinary "For Sale" signs and Lessor may at any time during the last one hundred twenty (120) days of the term hereof place on or about the Premises any ordinary "For Lease" signs. All such
activities of Lessor shall be without abatement of 

18

 

rent
or liability to Lessee. Lessor and Lessor's agents, except in the case of emergency, shall provide Lessee with twenty-four (24) hours' notice prior to entry of the Premises.
Any such entry by Lessor and Lessor's agents shall comply with all reasonable security measures of Lessee and shall not impair Lessee's operations more than reasonably necessary. 

33.    Auctions.    Lessee shall not conduct, nor permit to be conducted, either voluntarily or involuntarily, any auction upon the
Premises without first having obtained Lessor's prior written consent. Notwithstanding anything to the contrary in this Lease, Lessor shall not be obligated to exercise any standard of reasonableness
in determining whether to grant such consent. 

34.    Signs.    Lessee shall not place any sign upon the Premises, except that Lessee may, with Lessor's prior written consent,
install (but not on the roof) such signs as are reasonably required to advertise Lessee's own business. The installation of any sign on the Premises by or for Lessee shall be subject to the provisions
of Paragraph 7 (Maintenance, Repairs, Utility Installations, Trade Fixtures and Alterations). 

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

36.   Consents.  

        (a)    Except
for Paragraph 33 hereof (Auctions) or as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other
Party, such consent shall not be unreasonably withheld or delayed. Lessor's actual reasonable out-of-pocket costs and expenses (including but not limited to architects',
attorneys',
engineers' and other consultants' fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent pertaining to this Lease or the Premises, including but not limited
to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, practice or storage tank, shall be paid by Lessee to Lessor upon receipt of an invoice and supporting
documentation therefor. Lessor's consent to any act, assignment of this Lease or subletting of the Premises by Lessee shall not constitute an acknowledgment that no Default or Breach by Lessee of this
Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. 

        (b)   All
conditions to Lessor's consent authorized by this Lease are acknowledged by Lessee as being reasonable. The failure to specify herein any particular condition to
Lessor's consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent
is being given. 

37.   Guarantor.  

        37.1    If
there are to be any Guarantors of this Lease per Paragraph 1.11, the form of the guaranty to be executed by each such Guarantor shall be in the form most
recently published by the American Industrial Real Estate Association, and each such Guarantor shall have the same obligations as Lessee under this Lease, including but not limited to the obligation
to provide the Tenancy Statement and information required in Paragraph 16. 

        37.2    It
shall constitute a Default of the Lessee under this Lease if any such Guarantor fails or refuses, upon reasonable request by Lessor to give: (a) evidence of
the due execution of the guaranty called for by this Lease, including the authority of the Guarantor (and of the party signing on Guarantor's behalf) to obligate such Guarantor on said guaranty, and
including the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such guaranty, together with a certificate of incumbency showing the
signatures of the persons authorized to sign on its behalf, (b) current financial statements of Guarantor as may from time to time be requested by Lessor, (c) a Tenancy Statement, or
(d) written confirmation that the guaranty is still in effect. 

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

39.   Options.  

        39.1    Definition.    As used in this Paragraph 39, the word
"Option" has the following meaning: (a) the right to extend the term of this Lease or to renew this Lease or to extend or renew any lease that
Lessee has on other property of Lessor; (b) the right of first refusal to lease the Premises or the right of first offer to lease the Premises or the right of first refusal to lease other
property of Lessor or the right of first offer to lease other property of Lessor; (c) the right to purchase the Premises, or the right of first refusal to purchase the Premises, or the right of
first offer to purchase the Premises, or the right to purchase 

19

 

other
property of Lessor, or the right of first refusal to purchase other property of Lessor, or the right of first offer to purchase other property of Lessor. 

        39.2    Options Personal to Original Lessee.    Each Option granted to Lessee in this Lease is personal to the original
Lessee named in Paragraph 1.1 hereof as well as any successor to Lessee by virtue of a transaction described in Section 12.1(b) above (a "Permitted Assignee"), and cannot be voluntarily
or involuntarily assigned or exercised by any person or entity other than said parties while the original Lessee is in full and actual possession of the Premises and without the intention of
thereafter assigning or subletting. The Options, if any, herein granted to Lessee are not assignable to any party other than a Permitted Assignee, and no Option may be separated from this Lease in any
manner, by reservation or otherwise. 

        39.3    Multiple Options.    In the event that Lessee has any multiple Options to extend or renew this Lease, a later
option cannot be exercised unless the prior Options to extend or renew this Lease have been validly exercised. 

        39.4    Effect of Default on Options.    

        (a)   Lessee
shall have no right to exercise an Option, notwithstanding any provision in the grant of Option to the contrary: (i) during the period commencing with the
giving of any notice of Default under Paragraph 13.1 and continuing until the noticed Default is cured, or (ii) during the time Lessee is in Breach of this Lease, or (iii) in the
event that Lessor has given to Lessee three (3) or more notices of separate Defaults under Paragraph 13.1, whether or not the Defaults are cured, during the twelve (12) month
period immediately preceding the exercise of the Option. 

        (b)   The
period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee's inability to exercise any Option because of the
provisions of Paragraph 39.4(a). 

        (c)   All
rights of Lessee under the provisions of an Option shall terminate and be of no further force or effect, notwithstanding Lessee's due and timely exercise of the
Option, if, after such exercise and during the term of this Lease, (i) Lessor gives to Lessee three (3) or more notices of separate Defaults under Paragraph 13.1 during any twelve
(12) month period, whether or not the Defaults are cured, or (ii) if Lessee commits a Breach of this Lease. 

40.    Reasonable Expenditures.    Any expenditure by a party permitted or required under the Lease, for which such party is entitled
to demand and does demand reimbursement from the other party, shall be limited to the fair market value of the goods and services involved, shall be reasonably incurred and shall be substantiated by
documentary evidence available for inspection and review by the other party or its representative during normal business hours. 

41.    Security Measures.    Lessee hereby acknowledges that the rental payable to Lessor hereunder does not include the cost of guard
service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and
invitees and their property from the acts of third parties. 

42.    Reservations.    Lessor reserves the right, from time to time, to grant, without the consent or joinder of Lessee, such
easements, rights of way, utility raceways, and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights, dedications,
maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any such easement rights,
dedication, map or restrictions. 

43.    Performance Under Protest.    If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to
the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment "under protest" and such payment shall not be regarded as
a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of
said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay under the provisions of this Lease. 

44.    Authority.    If either Party hereto is a corporation, trust, or general or limited partnership, each individual executing this
Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. If Lessee is a corporation, trust or partnership, Lessee
shall, within thirty (30) days after request by Lessor, deliver to Lessor evidence satisfactory to Lessor of such authority. 

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

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

47.    Amendments.    This Lease may be modified only in writing, signed by the parties in interest at the time of the modification.
The Parties shall amend this Lease from time to time to reflect any adjustments that are made to the Base Rent or other rent payable under this Lease. As long as they do not materially change Lessee's
obligations hereunder, Lessee agrees to make such 

20

 

reasonable
non-monetary modifications to this Lease as may be reasonably required by an institutional insurance company or pension plan Lender in connection with the obtaining of normal
financing or refinancing of the property of which the Premises are a part. 

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

49.    Option to Renew:    Lessee shall have one (1) Option to extend the Term for a period of three (3) years beyond
the Expiration Date (the "Renewal Term"). The Option shall be subject to all of the terms and conditions stated in Section 39 above. The
Option must be exercised, if at all, by written notice (the "Election Notice") from Lessee to Lessor given not more than nine (9) months nor less
than six (6) months prior to the expiration of the initial Term. The Election Notice shall be irrevocable. If Lessee fails to exercise the Option in a timely manner as provided for above, the
Option shall be void. The Renewal Term shall be upon the same terms and conditions as the initial Term, except that the Base Rent shall be increased as provided in Section 52 below and Lessee
shall have no right or option to further extend the Term of this Lease. 

50.    Security Deposit:    The initial cash security deposit, to be held in accordance with the provisions of Paragraph 5
above, shall consist of cash in the amount of $29,341.15. 

        In
addition to the cash security deposit, Lessee shall deliver to Lessor prior to commencement of the Term of this Lease an unconditional, irrevocable standby letter of credit
("Letter of Credit") in the amount of $102,694 ("Letter of Credit Amount"). The Letter of Credit shall
reflect the form and content of Exhibit A and be issued by a solvent, nationally recognized bank that accepts
deposits, maintains accounts, has a local San Francisco Bay Area office that will negotiate a letter of credit, and the deposits of which are insured by the Federal Deposit Insurance Corporation.
Lessee shall pay all expenses, points, or fees incurred by Lessee in obtaining the Letter of Credit. The Letter of Credit shall expire not earlier than twelve (12) months after the date of
delivery thereof to Lessor and shall provide that same shall be automatically renewed for successive 12-month periods through a date which is not earlier than sixty (60) days after
the Lease Expiration Date, or any renewal or extension of this Lease, unless written notice of non-renewal has been given by the issuing bank to Lessor by registered or certified mail,
return receipt requested, no less than sixty (60) days prior to the expiration of the current period. If the issuing bank does not renew the Letter of Credit, and if Lessee does not deliver a
substitute Letter of Credit at least thirty (30) days prior to the expiration of the current period, then Lessor shall have the right to draw on the existing Letter of Credit. The provisions of
this Section 50 shall survive the expiration or earlier termination of this lease. In the event a Letter of Credit is not maintained, renewed, extended, replaced, or restored as required by
this Section 50, Lessor shall be entitled to draw one hundred percent (100%) of the Letter of Credit Amount. 

Lessee
may, from time to time, replace any existing Letter of Credit with a new Letter of Credit if the new Letter of Credit: (i) becomes effective at least thirty (30) days before
expiration of the Letter of Credit that it replaces; (ii) is in the required Letter of Credit Amount; (iii) is issued by a bank acceptable to Lessor; and (d) Otherwise complies
with the requirements of this Section 50. 

Lessor
shall hold the Letter of Credit as security for the performance of Lessee's obligations under this Lease. If Lessee defaults on any provision of this Lease, Lessor may, without prejudice to any
other remedy it has, draw on that portion of the Letter of Credit necessary to: (i) pay any Rent or other sum in default; (ii) pay or reimburse Lessor for any amount that Lessor may
spend or become obligated to spend in exercising Lessor's rights under Article; or (iii) compensate Lessor for any expense, loss, or damage that Lessor may suffer because of Lessee's default
including without limitation loss of future Rent. Any amount of the Letter of Credit that is drawn on by Lessor but not applied by Lessor shall be held by Lessor as a security deposit  ("Letter of Credit Security
Deposit"), which may be applied by Lessor for the purposes described in this Section. 

If
Lessor draws on any portion of the Letter of Credit, Lessee shall, within five (5) business days after demand by Lessor, either (i) deposit cash with Lessor in an amount that, when
added to the amount remaining under the Letter of Credit and the amount of any Letter of Credit Security Deposit, shall equal the Letter of Credit Amount then required under this Section 50
(ii) deliver written documentation executed by the issuing bank confirming that the Letter of Credit has been reinstated to the Letter of Credit Amount then required under this
Section 50. If Lessor applies any portion of the Letter of Credit Security Deposit, Lessee shall, within five (5) business days after demand by Lessor, deposit cash with Lessor in an
amount sufficient to restore the Letter of Credit Security Deposit to the amount then required under this Section 50. 

If
Lessor transfers its interest in the Premises, Lessor shall transfer or assign the Letter of Credit and any Letter of Credit Security Deposit to Lessor's transferee and thereupon be relieved of
further responsibility with respect to the Letter of Credit or the Letter of Credit Security Deposit. Lessor shall pay any and all costs or fees charged in connection with the Letter of Credit that
arise due solely to: (i) Lessor's sale or transfer of all or a portion of the Building or Project, such as the cost of transferring the Letter of Credit; or (ii) the addition, deletion,
or modification of any beneficiaries under the Letter of Credit. Lessee may not assign, mortgage, or encumber the Letter of Credit or the Letter of Credit Security Deposit without the written consent
of Lessor; any attempt to do so shall be void and shall not be binding on Lessor. Lessee hereby agrees to cooperate, at its expense, 

21

 

with
Lessor to promptly execute and deliver to Lessor any and all modifications, amendments, and replacements of the Letter of Credit, as Lessor may reasonably request to carry out the terms and
conditions of this Section 50. 

Notwithstanding
anything to the contrary contained herein, Lessee shall provide to Lessor the Letter of Credit Amount by cash or check on or before the Commencement Date in lieu of providing the
Letter of Credit on or before the Commencement Date, and no later than June 5, 2003, Lessee shall deliver to Lessor the Letter of Credit as required hereunder, and within two
(2) business days following receipt of the Letter of Credit Lessor shall return to Lessee the initial Letter of Credit Amount that was paid by Lessee to Lessor by cash or check. 

51.    Parking:    Lessee agrees that Lessor and any tenant of the property located at 2440 Leghorn Street shall have the right to use
the Premise's parking lot on Sundays. 

	52.
	Base Rent Adjustment:    The monthly Base Rent payable hereunder shall be equal to: 

	May 1, 2003 through April 30, 2004	 	$	29,341.15
	

May 1, 2004 through April 30, 2005	
 	
$	

30,221.39
	

May 1, 2005 through April 30, 2006	
 	
$	

31,128.03
	
If the term is extended:	
 	
 	

 
	

May 1, 2006 through April 30, 2007	
 	
$	

32,061.87
	

May 1, 2007 through April 30, 2008	
 	
$	

33,023.72
	

May 1, 2008 through April 30, 2009	
 	
$	

34,014.43

53.    Signage Removal:    Lessor shall, at Lessee's request, remove the existing building signage and repair any damage caused by
such removal, provided that Lessee agrees that it shall reimburse Lessor for fifty percent (50%) of the costs for such removal and repair, with Lessee's contribution not to exceed nine hundred and
fifty dollars ($950.00). Such reimbursement shall be paid to Lessor by Lessee no later than thirty (30) days following Lessee's receipt of an invoice reasonably detailing the costs of such
work. 

LESSOR
AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE
PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES. 

IF
THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR YOUR ATTORNEY'S REVIEW AND APPROVAL. FURTHER, EXPERTS SHOULD BE CONSULTED TO EVALUATE THE CONDITION OF THE PROPERTY FOR THE POSSIBLE PRESENCE
OF ASBESTOS, UNDERGROUND STORAGE TANKS OR HAZARDOUS SUBSTANCES. NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY THE REAL ESTATE BROKERS OR THEIR
CONTRACTORS, AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES; THE PARTIES SHALL RELY SOLELY UPON THE ADVICE OF
THEIR OWN COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE. IF THE SUBJECT PROPERTY IS IN A STATE OTHER THAN CALIFORNIA, AN ATTORNEY FROM THE STATE WHERE THE PROPERTY IS LOCATED SHOULD BE
CONSULTED. 

22

 

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

	

Executed at:	
 	

    
	
 	

 	
 	

Executed at:	
 	

    

	

on:	
 	

    
	
 	

 	
 	

on:	
 	

    

	
By LESSOR:	
 	

 	
 	

By LESSEE:
	

STOESSER ENTERPRISES, L.L.C.

A California limited liability company	
 	

 	
 	

INTERWAVE COMMUNICATIONS INTERNATIONAL, LTD

A

	

By:	
 	

    
	
 	

 	
 	

By:	
 	

    

	

Name Printed:	
 	

    
	
 	

 	
 	

Name Printed:	
 	

    

	

Its:	
 	

    
	
 	

 	
 	

Title:	
 	

    

	

By:	
 	

    
	
 	

 	
 	

By:	
 	

    

	

Name Printed:	
 	

    
	
 	

 	
 	

Name Printed:	
 	

    

	

Title:	
 	

    
	
 	

 	
 	

Title:	
 	

    

	

Address:	
 	
3250 Brickway Blvd.
	
 	

 	
 	

Address:	
 	

    

	

 	
 	

Santa Rosa, CA 95403
	
 	

 	
 	

 	
 	

    

	

 	
 	

 	
 	

 	
 	

Telephone:	
 	

    

	

 	
 	

 	
 	

 	
 	

Facsimile:	
 	

    

	

Telephone:	
 	
(707) 303-3035
	
 	

 	
 	

 	
 	

 
	

Facsimile:	
 	

    
	
 	

 	
 	

 	
 	

 

	 	 	Initials	 	    

	

 	
 	

 	
 	

    

23

  

 
 

FURNITURE RENTAL ADDENDUM    
    

        This FURNITURE RENTAL ADDENDUM is attached to and is an integral part of that certain Lease dated May 5, 2003 by and between Stoesser Enterprises, LLC as
Lessor and InterWave Communications International, LTD, as Lessee. Capitalized terms used herein without definition will have the same meanings as in the Lease. 

        In
connection with the Lease, Lessee now desires to lease from Lessor and Lessor desires to lease to Lessee, the furniture located on the Premises and more particularly described on
Attachment One attached hereto and incorporated herein (the "Furniture"). 

        1.     Rental of Furniture.    Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, for the Term of
Lease, the Furniture on the terms and conditions contained herein. The Base Rent payable under the Lease shall cover the rental of the Furniture. 

        2.     "AS IS" Condition; No Warranties; No Liability.    Lessor shall deliver the Furniture to Lessee AS IS and Lessee
agrees that it takes possession of the Furniture without relying on any representation or warranty by Lessor as to the condition of the Furniture. Lessee acknowledges that neither Lessor nor its
agents have made any representations or warranties, express or implied, as to the suitability or fitness of the Furniture for the conduct of Lessee's business or for any other purpose. In no event
shall Lessor have any liability, nor shall Lessee have any remedy against Lessor, for any liability, claim, loss, damage or expense caused directly or indirectly by the Furniture or any deficiency or
defect thereof or the maintenance or repair thereof. 

        3.     No Ownership; Right of Inspection.    This Lease constitutes a lease or bailment of the Furniture described
herein and not a sale or the creation of a security interest. Lessee shall not have, or at any time acquire, any right, title or interest in the Furniture except the right to possession and use as
provided for in this Lease. Lessor shall at all times be the sole owner of the Furniture. Lessor shall have the right to place and maintain on the exterior or interior of each item of Furniture an
inscription identifying Lessor's ownership of the Furniture. Lessee shall not remove, obscure, deface or obliterate the inscription or permit any other person to do so. Lessee hereby grants Lessor's
the right to enter the Premises at all reasonable times, but no more than once every six (6) months for the purpose of inspecting, maintaining, and/or making repairs, replacements, alterations,
or additions to the Furniture or for the purposes of posting notices of non-responsibility for alterations, additions, or repairs, or for the purpose of showing the Furniture to
prospective purchasers or lessees without any liability to Lessee for any loss of occupation or quiet enjoyment of the Furniture or Premises. This Section in no way affects the maintenance obligations
of the parties hereto. 

        4.     Lessee's Rights and Obligations.  

        4.1   Lessee's Rights.    Lessee shall be entitled to the use, possession and control of the Furniture during the term of
the Lease, provided
Lessee is not in default of any provision of this Lease (beyond applicable notice and cure periods), and subject to any security interest Lessor may have given or may give to any third party. 

        4.2   Lessee's Obligations.    Lessee shall use the Furniture in a reasonably careful and proper manner and shall not
permit any Furniture to be used in violation of any applicable federal, state, or local statute, law, ordinance, rule, or regulation relating to the possession, use or maintenance of the Furniture.
Lessee shall use only authorized service providers to reconfigure, reassemble, disassemble, repair and maintain Furniture. Lessee agrees to reimburse Lessor for all damage to the Furniture arising
from misuse or negligent acts by Lessee, its employees and its agents, but excluding normal wear and tear. If any Furniture covered by this Lease is damaged, lost, stolen or destroyed, or if any
Furniture is damaged as a result of its use, maintenance or possession, Lessee shall promptly notify Lessor of the occurrence and shall file all necessary reports, including those required by law and
those required by insurers of the Furniture. Lessee represents and warrants 

1

 

that
the Furniture will be used for business purposes consistent with all use requirements and restrictions under the Lease. 

        5.     Ordinary Expenses; Maintenance.    Lessee shall be responsible for all ordinary expenses in connection with the
use of the Furniture during the term of this Lease. Lessee, at its sole cost and expense, shall keep the Furniture in good condition and repair, ordinary wear and tear excepted. Furniture Rent shall
not be prorated or abated while any item of Furniture is being serviced or repaired. Lessor shall not be under any liability or obligation in any manner to provide service, maintenance, repairs or
parts for the Furniture. At the reasonable request of Lessor, Lessee shall furnish all proof of maintenance. 

        6.     Alteration; Modifications; Parts.    Other than in conformity with the manufacturer's warranty and/or functional
improvements, Lessee may alter or modify the Furniture only with the prior written consent of Lessor. Any part installed in connection with warranty or maintenance service or which cannot be removed
without damaging the Furniture shall become the property of Lessor. 

        7.     Quiet Enjoyment.    Lessor represents that it has full power and authority to enter into and perform this Lease.
So long as Lessee is not in default in the performance of its covenants and agreements in this Lease, Lessee's quiet and peaceable enjoyment of the Furniture shall not be disturbed or interfered with
by Lessor, or by any person claiming by, through, or under Lessor. 

        8.     Casualty Insurance; Loss or Damage.    Lessee shall maintain, at its own expense, property damage insurance
relating to the Furniture, insuring against such risks as are customarily insured against on the type of furniture leased hereunder by businesses in which Lessee is engaged in such amount, in such
form, and with insurers satisfactory to Lessor; provided, however, that the amount of insurance against damage or loss shall not be less than the full replacement value of the Furniture. The property
damage policy shall name Lessor as sole loss payee and shall contain a clause requiring the insurer to give Lessor at least thirty (30) days' prior written notice of any alteration in the terms
or cancellation of the policy. Lessee shall furnish to Lessor an insurance certificate (and, if requested by Lessor, a copy of the applicable policy) or other evidence reasonably satisfactory to
Lessor that the required insurance is in effect; provided, however, that Lessor shall have no duty to ascertain the existence of or to examine the insurance policy to advise Lessee if the insurance
coverage does not comply with the requirements of this Section. If Lessee fails to insure the Furniture as required, Lessor shall have the right but not the obligation to obtain such insurance, and
the cost of such insurance shall be for the account of Lessee due with the next installment of Base Rent. Lessee consents to Lessor's release, upon its failure to obtain appropriate insurance
coverage, of any and all information necessary to obtain insurance with respect to the Furniture or Lessor's interest therein. 

        Until
the Furniture is returned to and received by Lessor as provided in this Section, Lessee shall bear the entire risk of theft or destruction of, or damage to, the Furniture
including, without limitation, any condemnation, seizure, or requisition of title or use ("Casualty Loss"). No Casualty Loss shall relieve Lessee from its obligations to pay Furniture Rent except as
provided in clause (b) and to the extent set forth in this Section. When any Casualty Loss occurs, Lessee shall promptly notify Lessor and, at the option of Lessee, shall promptly
(a) place such Furniture in good repair and working order or replace such Furniture; or (b) pay Lessor an amount equal to the full replacement value of such Furniture and all other
amounts (including Furniture Rent payable through the date of payment of the full replacement value but excluding Furniture Rent payable thereafter) payable by Lessee hereunder, together with a late
charge on such amounts at a rate per annum as reasonably determined by Lessor from the due date of any unpaid installments of Furniture Rent through the date of payment of such amounts, whereupon
Lessor shall transfer to Lessee, without recourse or warranty (express or implied), all of Lessor's interest, if any, in and to such Furniture on an "AS IS WHERE IS" basis. The proceeds of any
insurance payable with respect to the Furniture shall be applied, at the option of Lessor, either towards (i) repair or replacement of the Furniture or (ii) payment of any of Lessee's
obligations 

2

 

hereunder.
Lessee hereby appoints Lessor as Lessee's attorney-in-fact to make claim for, receive payment of, and execute and endorse all documents, checks or drafts issued with
respect to any Casualty Loss under any insurance policy relating to the Furniture. 

        9.     Encumbrances or Liens; Notice.    Lessee shall not pledge, encumber, create a security interest in, or permit
any lien to become effective on any Furniture throughout the Term of this Lease. Lessee shall promptly notify Lessor of any liens, charges, or other encumbrances with respect to the Furniture of which
Lessee has knowledge. Lessee shall promptly pay or satisfy any obligation from which any lien or encumbrance arises caused by Lessee, and shall otherwise keep the Furniture and all right, title, and
interest free and clear of all liens, charges, and encumbrances caused by Lessee. 

        10.   Indemnification.    Lessee shall indemnify Lessor and its successors and assigns against, and hold Lessor and
its successors and assigns harmless from, any and all claims, actions, damages, obligations, liabilities, reasonable legal fees and all costs and expenses arising out of this Lease including, without
limitation, the loss of or damage to the Furniture for any cause, the delivery, lease, possession, maintenance, repair, condition, use or surrender of the Furniture, or arising by operation of law,
except that Lessee shall not be liable for any claims, actions, damages, obligations, and costs and expenses arising out of or resulting from the negligence or willful misconduct of Lessor or its
successors or assigns. 

        11.   Surrender.    Upon the termination of this Lease, Lessee shall at once surrender and deliver up the Furniture
to Lessor, except for Furniture that has suffered a Casualty Loss and as a result is not required to be repaired. At the time of such return to Lessor, the Furniture shall be in good condition and
repair, ordinary wear and tear excepted. 

        12.   Remedies.    In addition to other remedies contained in the Lease, upon the occurrence of any one or more
Events of Default, Lessor shall have the right, in its sole discretion, to exercise any one or more of the following remedies: 

        (a)   In
compliance with applicable law take possession of any or all items of Furniture, wherever located, without demand, notice, court order, or other process of law, and
without liability for entry to the Premises, for damage to Lessee's property, or otherwise except for liability or damages caused by Lessor's gross negligence or willful misconduct; 

        (b)   Lease,
sell, or otherwise dispose of the Furniture in a commercially reasonable manner, with or without notice and on public or private bid. 

        13.   Warranty Assignment.    Lessor shall assign to Lessee all manufacturer, dealer, or supplier warranties
applicable to the Furniture to enable Lessee to obtain any warranty service available for the Furniture. Lessor appoints Lessee as Lessor's attorney-in-fact for the purpose of
enforcing any warranty. Any enforcement by Lessee shall be at the expense of Lessee and shall in no way render Lessor responsible to Lessee for the performance of any of the warranties. 

        14.   Waivers.    To the extent permitted by applicable law, Lessee hereby waives any and all rights and remedies
conferred upon a lessee by Section 10508 through 10522 of the California Commercial Code. To the extent permitted by applicable law, Lessee also hereby waives any rights now or hereafter
conferred by statute or otherwise which may require Lessor to sell, lease, or otherwise use any Furniture in mitigation of Lessee's damages or which may otherwise limit or modify any of Lessor's
rights or remedies hereunder. Any action by Lessee against Lessor for any default by Lessor under this Lease shall be commenced within one year after any such cause of action accrues. 

3

 
ATTACHMENT ONE

FURNITURE LIST

SEE ATTACHED  

4

 
 

EXHIBIT A
  
  LETTER OF CREDIT FORM    
    

[Issuing Bank]

IRREVOCABLE LETTER OF CREDIT  

	Stoesser Enterprises, LLC

2630 Fayette Drive

Mountain View, CA 94040	 	Letter of Credit No.             

Date: [May]     , 2003

Ladies
and Gentlemen: 

        At
the request and for the account of InterWave Communications International, LTD, whose address is 2495 Leghorn Street, Mountain View, CA 94043, we hereby establish our
Irrevocable Letter of Credit in favor of Stoesser Enterprises, LLC, as Beneficiary, in the amount of One Hundred Two Thousand Six Hundred Ninety Four and NO/100 United States Dollars (US$102,694.00),
available with us at our above-specified office by payment of Beneficiary's draft(s) drawn on us at sight, in the form of Exhibit A (which forms
an integral part of this Irrevocable Letter of Credit) attached hereto, with the instructions in brackets therein complied with. "Beneficiary" as used in this Irrevocable Letter of Credit shall mean
Stoesser Enterprises, LLC, or any person who becomes a beneficiary hereof pursuant to a transfer accomplished under the provisions of this Irrevocable Letter of Credit. 

        Each
draft must be accompanied by (1) the original of this Letter of Credit for our endorsement on this Letter of Credit of our payment of such draft, and (2) a signed and
dated statement worded in either of the formats I or II below: 

I.

"I
am an authorized officer or authorized representative of the Beneficiary of [Issuing Bank] Letter of Credit number
            ("Beneficiary"). I hereby certify under penalty of perjury that InterWave Communications International, LTD, has (i) failed to timely perform
or observe an obligation under the Lease by and between InterWave Communications International, LTD, as the Lessee and Stoesser Enterprises, LLC as the Lessor, dated May 5, 2003, with
respect to those certain Premises located at 2495 Leghorn Street, Mountain View, California, as more particularly described in the Lease, as such Lease may have been amended, restated or replaced from
time to time, and (ii) Beneficiary is now entitled to draw on [Issuing Bank] Letter of Credit No.
                        ." 

or 

II.    : 

"I
am an authorized officer or authorized representative of the Beneficiary of [Issuing Bank] Letter of Credit number
            ("Beneficiary"). I hereby certify under penalty of perjury that less than thirty (30) days remains prior to the expiration of [Issuing
Bank]Letter of Credit No.              (the "Letter of Credit"), and (i) Beneficiary has received a non-renewal notice under the Letter
of Credit and (ii) InterWave Communications International, LTD, has not provided Beneficiary with a substitute letter of credit or cash as permitted for a replacement of the Letter of
Credit as provided for in the Lease by and between InterWave Communications International, LTD, as the Lessee and Stoesser Enterprises, LLC as the Lessor, dated May 5, 2003 with respect
to those certain Premises located at 2495 Leghorn Street in the City of Mountain, California that are more particularly described in the Lease, as such Lease may have been amended, restated or
replaced from time to time." 

        We
agree that we will not inquire as to the accuracy of any statement worded as quoted in I or II above presented to us under this Letter of Credit. We also agree that, with respect to
our obligation to pay a drawing which conforms to the requirements of this Letter of Credit, such obligation will not, 

except
that any such obligation may be altered by any law or regulation or court order, be affected by any dispute between the Applicant and the Beneficiary regarding the content or accuracy of any
statement presented with such drawing. 

        Partial
and multiple drawings are permitted under this Letter of Credit. 

        Each
draft must be marked "Drawn under [Issuing Bank] Letter of Credit No.             ." 

        Except
as stated in this Letter of Credit, our undertaking in this Letter of Credit is not subject to any condition or qualification. Our obligation under this Letter of Credit will be
our individual obligation in no way contingent upon reimbursement with respect thereto. 

        If
any instructions accompanying a drawing under this Letter of Credit request that payment is to be made by transfer to an account with us or at another bank, we and/or such other bank
may rely on an account number specified in such instructions even if the number identifies a person or entity different from the intended payee. 

        This
Letter of Credit is transferable one or more times, but in each instance to a single transferee and only in the full amount available to be drawn under the Letter of Credit at the
time of such transfer. Any such transfer may be effected only through ourselves and only upon presentation to us at our above-specified office of a duly executed instrument of transfer in the format
attached hereto as Exhibit B (which forms an integral part of this Irrevocable Letter of Credit), together with the original of this Letter of
Credit. Any transfer of this Letter of Credit may not change the place of expiration of this Letter of Credit from our above-specified office. Each transfer shall be evidenced by our endorsement on
the reverse of the original of this Letter of Credit, and we shall deliver the original of this Letter of Credit so endorsed to the transferee. All charges in connection with any transfer shall be for
the account of InterWave Communications International, LTD. 

This
Letter of Credit expires at our above office on [May]     , 2004, but shall be automatically extended, without written amendment, to
[May]      in each succeeding calendar year up to and including, but not beyond, [May]
    . 2009, unless we have sent written notice to Beneficiary at the address above (or at such other address specified in a duly executed instrument of transfer)
by
registered mail or express courier that we elect not to renew this Letter of Credit beyond the date specified in such notice, which date will be a yet-to-occur
[May]      on or before [May]     , 2009 and be at least thirty
(30) calendar days after the date we send you such notice. 

        This
Letter of Credit is subject to the Uniform Customs and Practice For Documentary Credits (1993 Revision), International Chamber of Commerce Publication No. 500, and engages us
in accordance therewith. 

	

 	
 	

 	
 	

Very truly yours
	

 	
 	

 	
 	
[Issuing Bank]
	

 	
 	

BY:	
 	

    
 (AUTHORIZED SIGNATURE)

	 	 	Exhibit A

[Issuing Bank]

Letter of Credit No.                     
	    

	

 	
 	

 	
 	

 	
 	

 	
 	

 
	    
	 	,  CALIFORNIA	 	[insert date]
	 	 	 	 

	

 	
 	

 	
 	

 	
 	

 
	AT SIGHT PAY TO THE ORDER OF	 	[insert Beneficiary name]
	 	US$	 	[insert amount in numbers]

	

[insert amount in words]
	
 	

U.S. DOLLARS	
 	

 

	

 	
 	

 	
 	

 
	DRAWN UNDER [Issuing Bank] LETTER OF CREDIT NO.	 	
	 	 

THIS SIGHT DRAFT IS ACCOMPANIED BY THE ORIGINAL LETTER OF CREDIT AND WRITTEN CERTIFICATION OF AN OFFICER OF BENEFICIARY AS REQUIRED BY THE LETTER OF
CREDIT.

	TO:	 	[Issuing Bank]	 	 	 	[insert Beneficiary name]
	 	 
	ADDRESS:	 	    
	 	 	 	 	 	 
	 	 	    
	 	 	 	[insert signature]
	 	 
	 	 	 	 	 	 	AUTHORIZED SIGNATURE	 	 
	 	 	
	 	 	 	 	 	 
	    

	

[insert Beneficiary name and insert signature on the back of the draft as an endorsement]

	 	 	Exhibit B

[Issuing Bank]

Letter of Credit No.                     
	    

	
 	
 	

Date:                             

	[Issuing Bank]	 	 
	    
	 	 
	    
	 	 
	    
	 	 

Subject:
Your Letter of Credit No.                              

Ladies
and Gentlemen: 

        For
value received, we hereby irrevocably assign and transfer all our rights under the above-captioned Letter of Credit, as heretofore and hereafter amended, extended or increased, to: 

	 	 	    
[insert name of transferee]	 	 
	

 	
 	

    
	
 	

 
	

 	
 	

    
 [insert address]	
 	

 

        By
this transfer, all of our rights in the Letter of Credit are transferred to the transferee, and the transferee shall have sole rights as beneficiary under the Letter of Credit,
including sole rights relating to any amendments, whether increases or extensions or other amendments, and whether now existing or hereafter made. You are hereby irrevocably instructed to advise
future amendment(s) of the Letter of Credit to the transferee without our consent or notice to us. 

        Enclosed
are the original Letter of Credit and the original of all amendments to this date. Please notify the transferee of this transfer and of the terms and conditions of the Letter of
Credit as transferred. this transfer will not become effective until the transferee is so notified. 

	 	 	Very truly yours,
	

 	
 	
[insert name of transferor]
	

 	
 	

By:	
 	

    

	 	 	Name:	 	    

	 	 	Title:	 	    

QuickLinks

Exhibit 10.29

STANDARD INDUSTRIAL/COMMERCIAL SINGLE–TENANT LEASE—NET

FURNITURE RENTAL ADDENDUM

EXHIBIT A LETTER OF CREDIT FORMQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.3    
    

 
 
 

SILICON GRAPHICS, INC.
  
  51/4% Senior Convertible Notes due 2004
  
  
    INDENTURE
  
  Dated as of September 1, 1997
  
  
    STATE STREET BANK AND TRUST
COMPANY OF CALIFORNIA,
  N.A., TRUSTEE    

 
 

SILICON GRAPHICS, INC.
  
  Reconciliation and tie between
  Trust Indenture Act of 1939 and
  Indenture, dated as of September 1, 1997    

	Trust Indenture

Act Section
	 	Indenture Section

	§310(a)(1)	 	7.10
	        (a)(2)	 	7.10
	        (a)(3)	 	Not Applicable
	        (a)(4)	 	Not Applicable
	        (b)	 	7.06, 7.08
	§311(a)	 	7.11
	        (b)	 	7.11
	        (c)	 	Not Applicable
	§312(a)	 	2.05, 2.14
	        (b)	 	2.14(b), 11.03
	        (c)	 	2.14(c), 11.03
	§313(a)	 	7.12(a)
	        (b)	 	7.12(a)
	        (c)	 	7.12(a)
	        (d)	 	7.12(b)
	§314(a)	 	4.02
	        (b)	 	Not Applicable
	        (c)(1)	 	11.04
	        (c)(2)	 	11.04
	        (c)(3)	 	Not Applicable
	        (d)	 	Not Applicable
	        (e)	 	11.04
	        (f)	 	Not Applicable
	§315(a)	 	7.01
	        (b)	 	7.05, 7.12(a)
	        (c)	 	7.01
	        (d)	 	6.11
	§316(a)(1)(A)	 	6.02
	        (a)(1)(B)	 	6.04
	        (a)(2)	 	Not Applicable
	        (b)	 	6.07
	        (c)	 	Not Applicable
	§317(a)(1)	 	6.08
	        (a)(2)	 	6.09
	        (b)	 	3.03
	§318(a)	 	11.1

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

 
 
 

TABLE OF CONTENTS1    
    

	 
	 	 
	 	PAGE

	ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE
	

Section 1.01.	
 	

Definitions	
 	

1
	Section 1.02.	 	Other Definitions	 	5
	Section 1.03.	 	Incorporation by Reference of TIA	 	5
	Section 1.04.	 	Rules of Construction	 	5
	
ARTICLE 2

THE SECURITIES
	

Section 2.01.	
 	

Form and Dating	
 	

5
	Section 2.02.	 	Execution and Authentication	 	6
	Section 2.03.	 	Registrar, Paying Agent and Conversion Agent	 	6
	Section 2.04.	 	Paying Agent to Hold Money and Securities in Trust	 	6
	Section 2.05.	 	Securityholder Lists	 	7
	Section 2.06.	 	Exchange and Registration of Transfer of Securities; Depositary	 	7
	Section 2.07.	 	Replacement Securities	 	8
	Section 2.08.	 	Outstanding Securities; Determinations of Holders' Action	 	9
	Section 2.09.	 	Temporary Securities	 	9
	Section 2.10.	 	Cancellation	 	10
	Section 2.11.	 	Persons Deemed Owners	 	10
	Section 2.12.	 	Payment of Interest; Interest Rights Preserved	 	10
	Section 2.13.	 	Computation of Interest	 	11
	Section 2.14.	 	Preservation of Information; Communications to Holders	 	11
	
ARTICLE 3

REDEMPTION
	

Section 3.01.	
 	

Right to Redeem; Notices to Trustee	
 	

11
	Section 3.02.	 	Selection of Securities to be Redeemed	 	12
	Section 3.03.	 	Notice of Redemption	 	12
	Section 3.04.	 	Effect of Notice of Redemption	 	12
	Section 3.05.	 	Deposit of Redemption Price	 	13
	Section 3.06.	 	Securities Redeemed in Part	 	13
	Section 3.07.	 	Conversion Arrangement on Call for Redemption	 	13
	Section 3.08.	 	Redemption at Option of the Holder upon a Fundamental Change	 	14
	
ARTICLE 4

COVENANTS
	

Section 4.01.	
 	

Payment of Securities	
 	

16
	Section 4.02.	 	SEC Reports	 	16
	Section 4.03.	 	Compliance Certificate	 	16
	Section 4.04.	 	Further Instruments and Acts	 	16
	Section 4.05.	 	Maintenance of Office or Agency	 	16

	1
	This
Table of Contents shall not, for any purpose, be deemed to be part of the Indenture. 

i

 

	ARTICLE 5

SUCCESSOR CORPORATION
	

Section 5.01.	
 	

When Company May Merge or Transfer Assets	
 	

17
	
ARTICLE 6

DEFAULTS AND REMEDIES
	

Section 6.01.	
 	

Events of Default	
 	

18
	Section 6.02.	 	Acceleration	 	18
	Section 6.03.	 	Other Remedies	 	19
	Section 6.04.	 	Waiver of Past Defaults	 	19
	Section 6.05.	 	Control by Majority	 	19
	Section 6.06.	 	Limitation on Suits	 	19
	Section 6.07.	 	Rights of Holders to Receive Payment	 	19
	Section 6.08.	 	Collection Suit by Trustee	 	20
	Section 6.09.	 	Trustee May File Proofs of Claim	 	20
	Section 6.10.	 	Priorities	 	20
	Section 6.11.	 	Undertaking for Costs	 	21
	Section 6.12.	 	Waiver of Stay, Extension or Usury Laws	 	21
	
ARTICLE 7

TRUSTEE
	

Section 7.01.	
 	

Duties of Trustee	
 	

21
	Section 7.02.	 	Rights of Trustee	 	22
	Section 7.03.	 	Individual Rights of Trustee	 	22
	Section 7.04.	 	Trustee's Disclaimer	 	22
	Section 7.05.	 	Notice of Defaults	 	22
	Section 7.06.	 	Disqualification; Conflicting Interests	 	22
	Section 7.07.	 	Compensation and Indemnity	 	22
	Section 7.08.	 	Replacement of Trustee	 	23
	Section 7.09.	 	Successor Trustee by Merger	 	23
	Section 7.10.	 	Eligibility; Disqualification	 	23
	Section 7.11.	 	Preferential Collection of Claims Against Company	 	24
	Section 7.12.	 	Reports by Trustee	 	24
	
ARTICLE 8

DISCHARGE OF INDENTURE
	

Section 8.01.	
 	

Discharge of Liability on Securities	
 	

24
	Section 8.02.	 	Repayment to the Company	 	24
	
ARTICLE 9

AMENDMENTS
	

Section 9.01.	
 	

Without Consent of Holders	
 	

24
	Section 9.02.	 	With Consent of Holders	 	25
	Section 9.03.	 	Compliance with TIA	 	25
	Section 9.04.	 	Revocation and Effect of Consents, Waivers and Actions	 	25
	Section 9.05.	 	Notation on or Exchange of Securities	 	25
	Section 9.06.	 	Trustee to Sign Supplemental Indentures	 	26
	Section 9.07.	 	Effect of Supplemental Indentures	 	26

ii

 

	ARTICLE 10

CONVERSION
	

Section 10.01.	
 	

Conversion Privilege	
 	

26
	Section 10.02.	 	Conversion Procedure	 	26
	Section 10.03.	 	Fractional Shares	 	27
	Section 10.04.	 	Taxes on Conversion	 	27
	Section 10.05.	 	Company to Provide Stock	 	27
	Section 10.06.	 	Adjustment for Change in Capital Stock	 	28
	Section 10.07.	 	Adjustment for Rights Issue	 	28
	Section 10.08.	 	Adjustment for Other Distributions	 	28
	Section 10.09.	 	When Adjustment May be Deferred	 	31
	Section 10.10.	 	When no Adjustment Required	 	31
	Section 10.11.	 	Notice of Adjustment	 	31
	Section 10.12.	 	Voluntary Decrease	 	31
	Section 10.13.	 	Notice of Certain Transactions	 	32
	Section 10.14.	 	Effect of Reclassification, Consolidation, Merger or Sale	 	32
	Section 10.15.	 	Company Determination Final	 	32
	Section 10.16.	 	Trustee's Adjustment Disclaimer	 	33
	Section 10.17.	 	Simultaneous Adjustments	 	33
	Section 10.18.	 	Successive Adjustments	 	33
	Section 10.19.	 	Rights Issued in Respect of Common Stock Issued Upon Conversion	 	33
	Section 10.20.	 	General Considerations	 	34
	
ARTICLE 11

MISCELLANEOUS
	

Section 11.01.	
 	

Conflict with TIA	
 	

34
	Section 11.02.	 	Notices	 	34
	Section 11.03.	 	Communication by Holders with other Holders	 	35
	Section 11.04.	 	Certificate and Opinion as to Conditions Precedent	 	35
	Section 11.05.	 	Statements Required in Certificate or Opinion	 	35
	Section 11.06.	 	Separability Clause	 	35
	Section 11.07.	 	Rules by Trustee, Paying Agent, Conversion Agent and Registrar	 	35
	Section 11.08.	 	Legal Holidays	 	35
	Section 11.09.	 	Governing Law	 	35
	Section 11.10.	 	No Recourse Against Others	 	35
	Section 11.11.	 	Successors	 	36
	Section 11.12.	 	Multiple Originals	 	36
	

EXHIBIT A —Form of Security	
 	

A-1

iii

        INDENTURE, dated as of September 1, 1997, between SILICON GRAPHICS, INC., a Delaware corporation (the "Company"), and STATE STREET BANK AND TRUST COMPANY OF CALIFORNIA,
N.A., a national banking association organized and existing under the laws of the United States of America (the "Trustee"). 

        Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company's 51/4% Senior Convertible Notes due
2004 (the "Securities"): 

 
 

ARTICLE 1
  DEFINITIONS AND INCORPORATION BY REFERENCE    

        Section 1.01.    Definitions.    

        "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 or cause the direction of 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. 

        "Applicable
Price" means (i) in the event of a Fundamental Change in which the holders of the Common Stock receive only cash, the amount of cash received by the holder of one
share of Common Stock and (ii) in the event of any other Fundamental Change, the average of the last reported sales price for the Common Stock (determined as set forth in the definition of
Current Market Price) during the ten Trading Days prior to the record date for the determination of the holders of Common Stock entitled to receive cash, securities, property or other assets in
connection with such Fundamental Change, or, if there is no such record date, the date upon which the holders of Common Stock shall have the right to receive such cash, securities, property or other
assets in connection with a Fundamental Change. 

        "Board
of Directors" means either the board of directors of the Company or any duly authorized committee of such board. 

        "Business
Day" means each day of the year on which banking institutions are not required or authorized to close in The City of New York or at the principal corporate trust office of the
Trustee. 

        "Closing
Price" means with respect to any securities on any day the closing sale price regular way on such day or, in case no such sale takes place on such day, the average of the
reported closing bid and asked prices, regular way, in each case on the New York Stock Exchange, or, if such security is not listed or admitted to trading on such Exchange, on the principal national
security exchange or quotation system on which such security is quoted or listed or admitted to trading, or, if not quoted or listed or admitted to trading on any national securities exchange or
quotation system, the average of the closing bid and asked prices of such security on the over-the-counter market on the day in question as reported by the National Quotation
Bureau Incorporated, or a similar generally accepted reporting service, or if not so available, in such manner as furnished by any New York Stock Exchange member firm selected from time to time by the
Board of Directors for that purpose, or a price determined in good faith by the Board of Directors or, to the extent permitted by applicable law, a duly authorized committee thereof, whose
determination shall be conclusive. 

        "Common
Stock" means any stock of any class of the Company which has no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company and which is not subject to redemption by the Company. Subject to the provisions of Section 10.14, however, shares issuable on conversion of the
Securities shall include only shares of Common Stock, par value $.001 per share, of the Company as it exists on the date of this Indenture or shares of any class or classes resulting from any
reclassification or reclassifications thereof and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or
winding up of the Company and which are not subject to redemption by the Company; provided that if at any time there shall be more than one such 

 

resulting
class, the shares of each such class then so issuable shall be substantially in the proportion which the total number of shares of such class resulting from all such reclassifications bears
to the total number of shares of all such classes resulting from all such reclassifications. 

        "Company"
means the party named as the "Company" in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or successors. 

        "Company
Request" or "Company Order" means a written request or order signed in the name of the Company by its Chairman of the Board, a Vice Chairman, its President, a Senior Vice
President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 

        "Conversion
Price" has the meaning specified in Section 10.01. 

        "Current
Market Price" per share of Common Stock at any date shall be the average of the last reported sale prices for the ten consecutive Trading Days preceding the day before the
record date with respect to any distribution, issuance or other event requiring such computation. The last reported sale price for each day shall be (i) the last reported sale price of Common
Stock on the New York Stock Exchange, or, if such security is not listed or admitted to trading on such Exchange, on the principal national security exchange on which such security is listed, or on
the Nasdaq National Market or any similar system of automated dissemination of quotations of securities prices then in common use, if so quoted, or (ii) if not quoted as described in
clause (i), the mean between the high bid and low asked quotations for Common Stock as reported by the National Quotation Bureau Incorporated if at least two securities dealers have inserted
both bid and asked quotations for the Common Stock on at least 5 of the 10 preceding days, or (iii) if the Common Stock is listed or admitted for trading on any national securities exchange,
the last sale price, or the closing bid price if no sale occurred, of the Common Stock on the principal securities exchange on which the Common Stock is listed. If the Common Stock is quoted on a
national securities or central market system, in lieu of a market or quotation system described above, the last reported sale price shall be determined in the manner set forth in clause (ii) of
the preceding sentence if bid and asked quotations are reported but actual transactions are not, and in the manner set forth in clause (iii) of the preceding sentence if actual transactions are
reported. If none of the conditions set forth above is met, the last reported sale price of Common Stock on any day or the average of such last reported sale prices for any period shall be the fair
market value of the Common Stock as determined by a member firm of the New York Stock Exchange, Inc. selected by the Company. 

        "Custodian"
means State Street Bank and Trust Company of California, N.A., as custodian with respect to any Global Security, or any successor. 

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

        "Defaulted
Interest" has the meaning specified in Section 2.12. 

        "Depositary"
means, with respect to the Securities issuable or issued in whole or in part in global form, the person specified in Section 2.06 as the Depositary with respect to
the Securities, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and thereafter, "Depositary" shall mean or include such successor. 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 

        "Fundamental
Change" means the occurrence of any transaction or event in connection with which all or substantially all the Common Stock shall be exchanged for, converted into, acquired
for or 

2

 

constitute
solely the right to receive (whether by means of an exchange offer, liquidation, tender offer, consolidation, merger, combination, reclassification, recapitalization or otherwise)
consideration which is not all or substantially all common stock listed (or, upon consummation of such transaction or event, will be listed) on a United States national securities exchange or approved
for quotation in the Nasdaq National Market or any similar system of automated dissemination of quotations of securities prices. 

        "Global
Security" means a Security that is registered in the Security Register in the name of the Depository or a nominee thereof. 

        "Holder"
or "Securityholder" means a Person in whose name a Security is registered on the Registrar's books. 

        "Indenture"
means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof. 

        "Interest
Payment Date" means the Stated Maturity of an installment of interest on the Securities. 

        "Interest
Period" shall have the meaning set forth in Section 10.02. 

        "Maturity"
when used with respect to any Security, means the date on which the principal of such Security becomes due and payable as therein or herein provided, whether at the Stated
Maturity or by declaration of acceleration, call for redemption, redemption upon a Fundamental Change or otherwise. 

        "Officer"
means the Chairman of the Board, any Vice Chairman, the President, any Senior Vice President, any Vice President, the Treasurer or the Secretary or any Assistant Treasurer or
Assistant Secretary of the Company. 

        "Officers'
Certificate" means a written certificate containing the information specified in Sections 11.04 and 11.05, signed in the name of the Company by its Chairman of the Board, a
Vice Chairman, its President, a Senior Vice President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 

        "Opinion
of Counsel" means a written opinion containing the information specified in Sections 11.04 and 11.05, from legal counsel who is acceptable to the Trustee. The counsel may be an
employee of, or counsel to, the Company or the Trustee. 

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

        "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 2.06 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security. 

        "Reference
Market Price" shall initially mean $18.33 and in the event of any adjustment to the Conversion Price pursuant to Article 10, the Reference Market Price shall be
adjusted to equal the initial Reference Market Price multiplied by a fraction the numerator of which is the Conversion Price specified in the form of Security attached as Exhibit A hereto
(without regard to any adjustment thereto) and the denominator of which is the Conversion Price following such adjustment. 

        "Redemption
Date" shall mean a date specified for redemption of the Securities (other than redemption upon a Fundamental Change at the option of the Securityholder) in accordance with
the terms of the Securities and Section 3.01 of this Indenture. 

        "Redemption
Price" shall have the meaning set forth in paragraph 5 of the Securities. 

3

 

        "Regular
Record Date" for the interest payable on any Interest Payment Date means the February 15 or August 15 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. 

        "Rights
Agreement" means that certain Amended and Restated Preferred Shares Rights Agreement, dated as of May 6, 1992, between the Company and State Street Bank and Trust Company
of California, N.A., as successor rights agent thereunder, as amended from time to time. 

        "Rights"
shall mean "Rights" as such term is defined in the Rights Agreement. 

        "SEC"
means the Securities and Exchange Commission. 

        "Securities"
means any of the Company's 51/4% Senior Convertible Notes due 2004, as amended or supplemented from time to time, issued under this Indenture. 

        "Securities
Act" means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 

        "Securityholder"
or "Holder" means a person in whose name a Security is registered on the Registrar's books. 

        "Security
Register" has the meaning specified in Section 2.05. 

        "Special
Record Date" for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 2.12. 

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

        "Subsidiary"
means a corporation of which a majority of the capital stock (which for purposes of this definition means any and all shares, interests, rights to purchase, warrants,
options, participations or other equivalents of or interests in (however designated) stock issued by such corporation) having voting power under ordinary circumstances to elect a majority of the board
of directors of such corporation is owned directly or indirectly by (i) the Company, (ii) the Company and one or more Subsidiaries or (iii) one or more Subsidiaries. 

        "TIA"
means the Trust Indenture Act of 1939 as in effect on the date of this Indenture, except as provided in Section 9.03. 

        "Trading
Day" means a day during which trading in securities generally occurs on the New York Stock Exchange or, if the applicable security is not listed on the New York Stock Exchange,
on the principal other national or regional securities exchange on which the applicable security is then listed or, if the applicable security is not listed on a national or regional securities
exchange, on the Nasdaq National Market or, if the applicable security is not quoted on the Nasdaq National Market, on the principal other market on which the applicable security is then traded. 

        "Trust
Officer" means any officer of the Trustee assigned by the Trustee to administer its corporate trust matters. 

        "Trustee"
means the party named as the "Trustee" in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent, such successor or successors. 

4

 

        Section 1.02.    Other Definitions.    

	Term
 
	 	Defined in

Section

	"Bankruptcy Law"	 	6.01
	"Company Notice"	 	3.08(b)
	"Conversion Agent"	 	2.03
	"Event of Default"	 	6.01
	"Fundamental Change Repurchase Date"	 	3.08(a)
	"Fundamental Change Redemption Notice"	 	3.08(c)
	"Fundamental Change Redemption Price"	 	3.08(a)
	"Legal Holiday"	 	11.08
	"Notice of Default"	 	6.01
	"Paying Agent"	 	2.03
	"Registrar"	 	2.03

        Section 1.03.    Incorporation by Reference of TIA.    Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings: 

        "Commission"
means the SEC. 

        "Indenture
Securities" means the Securities. 

        "Indenture
Security Holder" means a Securityholder. 

        "Indenture
to be Qualified" means this Indenture. 

        "Indenture
Trustee" or "Institutional Trustee" means the Trustee. 

        "Obligor"
on the indenture securities means the Company. 

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

        Section 1.04.    Rules of Construction.    Unless the context otherwise requires: 

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

        (2)   an
accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles as in effect from time to time; 

        (3)   "or"
is not exclusive; 

        (4)   "including"
means including, without limitation; and 

        (5)   words
in the singular include the plural, and words in the plural include the singular. 

 
 

ARTICLE 2
  THE SECURITIES    

        Section 2.01.    Form and Dating.    The Securities and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A, which is a part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange rule or usage (provided
that any such notation, legend or endorsement required by usage is in a form acceptable to the Company). The Company shall provide any such notations, legends or endorsements to the Trustee in
writing. Each Security shall be dated the date of its authentication. 

5

 

        Section 2.02.    Execution and Authentication.    The Securities shall be executed on behalf of the Company by
its Chairman of the Board, one of its Vice Chairman, its President, one of its Senior Vice Presidents or one of its Vice Presidents, under its corporate seal reproduced thereon and attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these officers on the Securities may be manual or facsimile. 

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

        No
Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication
substantially in the form provided for herein 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. 

        The
Trustee shall authenticate and deliver Securities for original issue in an aggregate principal amount of up to $234,500,000 upon a Company Order without any further action by the
Company. The aggregate principal amount of Securities outstanding at any time may not exceed the amount set forth in the foregoing sentence, subject to the proviso set forth therein, except as
provided in Section 2.07. 

        Section 2.03.    Registrar, Paying Agent and Conversion Agent.    The Company shall maintain an office or
agency where Securities may be presented for registration of transfer or for exchange ("Registrar"), an office or agency where Securities may be presented for purchase or payment ("Paying Agent") and
an office or agency where Securities may be presented for conversion ("Conversion Agent"). The Registrar shall keep a register (the "Security Register") of the Securities and of their transfer and
exchange. The Company may have one or more co-registrars, one or more additional paying agents and one or more additional conversion agents. The term Paying Agent includes any additional
paying agent. The term Conversion Agent includes any additional conversion agent. 

        The
Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent, Conversion Agent or co-registrar (if not the Trustee). The agreement shall
implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of any such agent. If the Company fails to maintain a Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07. The Company or any Subsidiary or an
Affiliate of either of them may act as Paying Agent, Registrar, Conversion Agent or co-registrar. 

        The
Company initially appoints the Trustee as Registrar, Conversion Agent and Paying Agent in connection with the Securities. 

        Section 2.04.    Paying Agent to Hold Money and Securities in Trust.    Except as otherwise provided herein,
prior to or on each due date of payments in respect of any Security, the Company shall deposit with the Paying Agent a sum of money or securities sufficient to make such payments when so becoming due.
The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Securityholders or the Trustee all money and
securities held by the Paying Agent for the making of payments in respect of the Securities and shall notify the Trustee of any default by the Company in making any such payment. At any time during
the continuance of any such default, the Paying Agent shall, upon the written request of the Trustee, forthwith pay to the Trustee all money and securities so held in trust. If the Company, a
Subsidiary or an Affiliate of either of them acts as Paying Agent, it shall segregate the money and securities held by it as Paying Agent and hold it as a separate trust fund. The Company at any time
may require a Paying Agent to pay all money and securities held by it to the Trustee and to account for 

6

 

any
funds and securities disbursed by it. Upon doing so, the Paying Agent shall have no further liability for the money or securities. 

        Section 2.05.    Securityholder Lists.    The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of Securityholders. If the Trustee is not the Registrar, the Company shall cause to be furnished to the Trustee at least
semiannually on February 15 and August 15 a listing of Holders dated within 15 days of the date on which the list is furnished and at such other times as the Trustee may request
in writing a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders. 

        Section 2.06.    Exchange and Registration of Transfer of Securities; Depositary.    Upon surrender for
registration of transfer of any Security at any office or agency of the Company designated as Registrar or co-registrar pursuant to Section 2.03 and satisfaction of the requirements
for such transfer set forth in this Section 2.06, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more
new Securities of any authorized denominations and of a like aggregate principal amount. 

        Securities
may be exchanged for a like aggregate principal amount of Securities of other authorized denominations. Securities to be exchanged shall be surrendered at any office or agency
to be maintained by the Company designated as Registrar or co-registrar pursuant to Section 2.03 and the Company shall execute and register and the Trustee shall authenticate and
deliver in exchange therefor the Security or Securities which the Securityholder making the exchange shall be entitled to receive, bearing registration numbers not contemporaneously outstanding. 

        All
Securities presented for registration of transfer or for exchange, purchase, redemption, conversion or payment shall (if so required by the Company, the Trustee, the Registrar or any
co-registrar) be duly endorsed by, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company and the Trustee, duly executed by the Holder or his attorney duly authorized in writing. 

        No
service charge shall be charged to the Securityholder for any exchange or registration of transfer of Securities, but the Company may require payment of a sum sufficient to cover any
tax, assessments or other governmental charges that may be imposed in connection therewith. 

        None
of the Company, the Trustee, the Registrar or any co-registrar shall be required to exchange or register a transfer of (a) any Securities for a period of
15 days next preceding any selection of Securities to be redeemed or (b) any Securities or portions thereof selected or called for redemption or (c) any Securities or portion
thereof surrendered for conversion or (d) any Securities or portion thereof surrendered for redemption (and not withdrawn) pursuant to Section 3.08. 

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

        The
provisions of Clauses (1), (2), (3), (4) and (5) below shall apply only to Global Securities: 

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

        (2)   Notwithstanding
any other provision in this Indenture, no Global Security may be exchanged in whole or in part for Securities registered, and no transfer of a Global
Security in whole or in party may be registered, in the name of any Person other than the Depositary for such Global Security or a nominee thereof unless (A) such Depositary (i) has
notified the Company 

7

 

that
it is unwilling or unable to continue as Depositary for such Global Security or (ii) has ceased to be a clearing agency registered under the Exchange Act, or (B) there shall have
occurred and be continuing an Event of Default with respect to such Global Security. 

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

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

        (5)   The
Depositary or its nominee, as registered own of a Global Security, shall be the Holder of such Global Security for all purposes under the Indenture and the
Securities, and owners of beneficial interests in a Global Security shall hold such interests pursuant to the applicable procedures. Accordingly, any such owner's beneficial interest in a Global
Security will be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its agent members and such owners of beneficial
interests in a Global Security will not be considered the owners or holders thereof. 

        The
Depositary shall be a clearing agency registered under the Exchange Act. The Company initially appoints The Depository Trust Company to act as Depositary with respect to the
Securities in global form. Initially, the Global Security shall be issued to the Depositary, registered in the name of Cede & Co., as the nominee of the Depositary, and deposited with the
Trustee as custodian for Cede & Co. 

        If
at any time the Depositary for the Global Security notifies the Company that it is unwilling or unable to continue as Depositary for such Global Security, the Company may appoint a
successor Depositary with respect to such Security. If a successor Depositary for the Global Security is not appointed by the Company within 90 days after the Company receives such notice, the
Company will execute, and the Trustee, upon receipt of a Company Order for authentication and delivery of Securities, will authenticate and deliver, Securities in definitive form, in an aggregate
principal amount equal to the principal amount of the Global Security, in exchange for the such Security in the global form. 

        Section 2.07.    Replacement Securities.    If (a) any mutilated Security is surrendered to the Trustee,
or (b) the Company and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company and the Trustee such security
or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon its written request the Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of any such destroyed, lost or stolen Security, a
new Security of like tenor and principal amount, bearing a number not contemporaneously outstanding. 

        In
case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, or is about to be redeemed by the Company pursuant to Article 3
hereof, the Company in its discretion may, instead of issuing a new Security, pay or redeem such Security, as the case may be. 

        Upon
the issuance of any new Securities 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 

8

 

relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 

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

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

        Section 2.08.    Outstanding Securities; Determinations of Holders' Action.    Securities outstanding at any
time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation and those described in this Section 2.08 as not outstanding. A
Security does not cease to be outstanding because the Company or an Affiliate thereof holds the Security; provided, however, that in determining whether the Holders of the requisite principal amount
of Securities have given or concurred in any request, demand, authorization, direction, notice,. consent or waiver hereunder, Securities owned by the Company or any other obligor upon the Securities
or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to be outstanding, except that, in determining whether the Trustee shall be protected 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. Subject to the foregoing, only Securities
outstanding at the time of such determination shall be considered in any such determination (including, without limitation, determinations pursuant to Articles 6 and 9). 

        If
a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a bona
fide purchaser. 

        If
the Paying Agent holds, in accordance with this Indenture, on a Redemption Date, on a Fundamental Change Repurchase Date or on Stated Maturity, money or securities, if permitted
hereunder, sufficient to pay Securities payable on that date, then on and after that date such Securities shall cease to be outstanding and interest on such Securities shall cease to accrue; 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. 

        If
a Security is converted in accordance with Article 10, then from and after such conversion such Security shall cease to be outstanding and interest shall cease to accrue on
such Security. 

        Section 2.09.    Temporary Securities.    Pending the preparation of definitive Securities, 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 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. 

        If
temporary Securities are issued, the Company will cause definitive Securities to be prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at the office or agency of the Company designated for such purpose pursuant to
Section 2.03, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Securities of authorized denominations. Until so exchanged the temporary Securities shall in all respects be entitled to the same benefits under
this Indenture as definitive Securities. 

9

 

        Section 2.10.    Cancellation.    All Securities surrendered for payment, conversion, redemption or,
registration of transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall be promptly canceled by it. The Company may at any time deliver
to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be
promptly canceled by the Trustee. The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation or that any Holder has converted pursuant to
Article 10. No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture. All canceled
Securities held by the Trustee shall be destroyed by the Trustee and evidence of their destruction delivered to the Company unless the Company directs by Company Order that the Trustee deliver
canceled Securities to the Company. 

        Section 2.11.    Persons Deemed Owners.    Prior to due presentment of a Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment
of principal amount, premium, if any, interest, Redemption Price and Fundamental Change Redemption Price in respect thereof, for the purpose of conversion and for all other purposes whatsoever,
whether or not such Security be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee shall be affected by notice to the contrary. 

        Section 2.12.    Payment of Interest; Interest Rights Preserved.    Interest on any Security which is payable,
and is punctually paid or duly provided for, on any Interest Payment Date shall 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. 

        Any
interest on any Security which is payable, but is not punctually paid or dully provided for, on any Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease
to be payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided
in Clause (a) or (b) below: 

        (a)   The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities (or their respective Predecessor Securities) are registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit 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 be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the
receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause
notice of proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder at his address as it appears in the Security
Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Securities (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall
no longer be payable pursuant to the following Clause (b). 

10

 

        (b)   The
Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or market on which
the Securities may be listed, and upon such notice as may be required by such exchange or market, 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, 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. 

        In
the case of any Security which is converted after any Regular Record Date on or prior to the close of business on the next succeeding Interest Payment Date (other than any Security
whose Maturity is prior to such Interest Payment Date), interest whose Stated Maturity is on such Interest Payment Date shall be payable on such Interest Payment Date notwithstanding such conversion,
and such interest (whether or not punctually paid or dully provided for) shall be paid to the Person whose name that Security (or one or more Predecessor Securities) is registered at the close of
business on such Regular Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security which is converted, interest whose Stated Maturity is
after the date of conversion of such Security shall not be payable. 

        Section 2.13.    Computation of Interest.    Interest on the Securities shall be computed on the basis of a
360-day year of twelve 30-day months. 

        Section 2.14.    Preservation of Information; Communications to Holders.    

        (a)   The
Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the
Trustee as provided in Section 2.05 and the names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as
provided in Section 2.05 upon receipt of a new list so furnished. 

        (b)   The
rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Securities, and the corresponding right and duties
of the Trustee, shall be as provided in the TIA. 

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

 
 

ARTICLE 3
  REDEMPTION    

        Section 3.01.    Right to Redeem; Notices to Trustee.    The Company, at its option, may redeem the Securities
in accordance with the provisions of paragraph 5 of the Securities. If the Company elects to redeem Securities pursuant to paragraph 5 of the Securities, it shall notify the Trustee in
writing of the Redemption Date, the principal amount of Securities to be redeemed, the Redemption Price, and the amount of accrued interest to, but excluding, the Redemption Date. 

        The
Company shall give the notice to the Trustee provided for in this Section 3.01 (i) in the case of any redemption of fewer than all of the Securities, at least
45 days before the Redemption Date and (ii) in the case of a redemption of all of the Securities, no later than the Company is required to give notice to the Holders pursuant to
Section 3.03, in each case unless a shorter notice shall be satisfactory to the Trustee. 

11

 

        Section 3.02.    Selection of Securities to be Redeemed.    If less than all the Securities are to be redeemed,
the Trustee shall select the Securities to be redeemed pro rata or by lot or by a method the Trustee considers fair and appropriate (as long as such method is not prohibited by the rules of any stock
exchange or automated quotation system on which the Securities are then listed). The Trustee shall make the selection at least 35 days, but not more than 60 days, before the Redemption
Date from outstanding Securities not previously called for redemption. The Trustee may select for redemption portions of the principal amount of Securities that have denominations larger than $1,000.
Securities and portions of them the Trustee selects shall be in principal amounts of $1,000 or a multiple of $1,000. Provisions of this Indenture that apply to Securities called for redemption also
apply to portions of Securities called for redemption. The Trustee shall notify the Company promptly of the Securities or portions of Securities to be redeemed. 

        If
any Security selected for partial redemption is converted in part before termination of the conversion right with respect to the portion of the Security so selected, the converted
portion of such Security shall be deemed (so far as may be) to be the portion selected for redemption. Securities which have been converted during a selection of Securities to be redeemed may be
treated by the Trustee as outstanding for the purpose of such selection. 

        Section 3.03.    Notice of Redemption.    At least 30 days but not more than 60 days before a
Redemption Date, the Company shall mail a notice of redemption by first-class mail, postage prepaid, to each Holder of Securities to be redeemed. 

        The
notice shall identify the Securities to be redeemed and shall state: 

        (1)   the
Redemption Date; 

        (2)   the
Redemption Price, together with the amount of accrued interest to, but excluding, the Redemption Date; 

        (3)   the
Conversion Price; 

        (4)   the
name and address of the Paying Agent and Conversion Agent, 

        (5)   that
Securities called for redemption may be converted at any time before the close of business on the last Trading Day prior to the Redemption Date; 

        (6)   that
Holders who want to convert Securities must satisfy the requirements set forth in paragraph 7 of the Securities; 

        (7)   that
Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price and accrued interest to, but excluding, the Redemption
Date; 

        (8)   if
fewer than all the outstanding Securities are to be redeemed, the certificate number and principal amounts of the particular Securities to be redeemed; and 

        (9)   that
interest on Securities called for redemption will cease to accrue on and after the Redemption Date. 

        At
the Company's request, the Trustee shall give the notice of redemption in the Company's name and at the Company's expense. 

        Section 3.04.    Effect of Notice of Redemption.    Once notice of redemption is given, Securities called for
redemption become due and payable on the Redemption Date and at the Redemption Price, together with accrued interest to, but excluding, the Redemption Date, stated in the notice except for Securities
which are converted in accordance with the terms of this Indenture. 

12

 

        Upon
the later of the Redemption Date or the date such Securities are surrendered to the Paying Agent, such Securities shall be paid at the Redemption Price, together with accrued
interest to, but excluding, the Redemption Date, stated in the notice. 

        Section 3.05.    Deposit of Redemption Price.    Prior to or on the Redemption Date, the Company shall deposit
with the Paying Agent (or if the Company or a Subsidiary or an Affiliate of either of them is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the Redemption Price and
accrued interest to, but excluding, the Redemption Date of all Securities to be redeemed on that date other than Securities or portions of Securities called for redemption which prior thereto have
been delivered by the Company to the Trustee for cancellation or have been converted; provided that if such payment is made on the Redemption Date it must be received by the Trustee or Paying Agent,
as the case may be, by 10:00 a.m. New York City time, on such Redemption Date. The Paying Agent shall as promptly as practicable return to the Company any money, with interest, if any, thereon
(subject to the provisions of Section 7.01(f)), not required for that purpose because of conversion of Securities. If such money is then held by the Company in trust and is not required for
such purpose it shall be discharged from such trust. 

        Section 3.06.    Securities Redeemed in Part.    Upon surrender of a Security that is redeemed in part, the
Company shall execute and the Trustee shall authenticate and deliver to the Holder a new Security in an authorized denomination equal in principal amount to the unredeemed portion of the Security
surrendered. 

        Section 3.07.    Conversion Arrangement on Call for Redemption.    In connection with any redemption of
Securities, the Company may arrange for the purchase and conversion of any Securities called for redemption by an agreement with one or more investment bankers or other purchasers to purchase such
Securities by paying to the Paying Agent in trust for the Securityholders, on or before the close of business on the Redemption Date, an amount that, together with any amounts deposited with the
Paying Agent by the Company for the redemption of the Securities, is not less than the Redemption Price, together with interest, if any, accrued to the Redemption Date, of such Securities.
Notwithstanding anything to the contrary contained in this Article 3, the obligation of the Company to pay the Redemption Price of such Securities, including all accrued interest, shall be
deemed to be satisfied and discharged to the extent such amount is so paid by such purchasers. If such an agreement is entered into, any Securities not duly surrendered for conversion by the Holders
thereof may, at the option of the Company, be deemed, to the fullest extent permitted by law, acquired by such purchasers
from such Holders and (notwithstanding anything to the contrary contained in Article 10) surrendered by such purchasers for conversion, all immediately prior to the close of business on the
Redemption Date, subject to payment of the above amount as aforesaid. The Paying Agent shall hold and pay to the Holders whose Securities are selected for redemption any such amount paid to it in the
same manner as it would moneys deposited with it by the Company for the redemption of Securities. Without the Paying Agent's prior written consent, no arrangement between the Company and such
purchasers for the purchase and conversion of any Securities shall increase or otherwise affect any of the powers, duties, responsibilities or obligations of the Paying Agent as set forth in this
Indenture, and the Company agrees to indemnify the Paying Agent from, and hold it harmless against, any loss, liability or expense arising out of or in connection with any such arrangement for the
purchase and conversion of any Securities between the Company and such purchasers, including the costs and expenses incurred by the Paying Agent in the defense of any claim or liability arising out of
or in connection with the exercise or performance of any of its powers, duties, responsibilities or obligations under this Indenture. 

13

  

        Section 3.08.    Redemption at Option of the Holder upon a Fundamental Change.    (a) If a Fundamental
Change shall occur at any time prior to September 1, 2004, each Holder of Securities shall have the right, at such Holder's option, to require the Company to redeem such Holder's Securities on
the date (the "Fundamental Change Repurchase Date") (or if such date is not a Business Day, the next succeeding Business Day) that is 45 days after the date of the Company's notice of such
Fundamental Change. The Securities will be redeemable in part in multiples of $1,000 of principal amount. Such repayment shall be made at the following prices (the "Fundamental Change Redemption
Price") (expressed as percentages of the principal amount) in the event of a Fundamental Change Repurchase Date occurring during the 12-month period beginning September 1: 

	Year
	 	Percentage
	 	Year
	 	Percentage

	1997	 	105.25%	 	2001	 	102.25%
	1998	 	104.50    	 	2002	 	101.50    
	1999	 	103.75    	 	2003	 	100.75    
	2000	 	103.00    	 	 	 	 

and
100% at September 1, 2004; provided that if the Applicable Price with respect to the Fundamental Change is less than the Reference Market Price, the Company shall redeem such Securities at
a price equal to the foregoing redemption price multiplied by the fraction obtained by dividing the Applicable Price by the Reference Market Price. In each case, the Company shall also pay to such
Holders accrued interest to, but excluding, the Fundamental Change Repurchase Date on the redeemed
Securities; provided that if such Fundamental Change Repurchase Date is an Interest Payment Date, then the interest payable on such date shall be paid to the Holder of the Security on the next
preceding the Regular Record Date. 

        (b)   On
or before the tenth day after the occurrence of a Fundamental Change, the Company, or, at its written request (which must be received by the Trustee at least five
Business Days prior to the date the Trustee is requested to give notice as described below), the Trustee in the name of and at the expense of the Company, shall mail or cause to be mailed to all
Holders of record on the date of the Fundamental Change a notice (the "Company Notice") of the occurrence of such Fundamental Change and of the redemption right at the option of the Holders arising as
a result thereof. Such notice shall be mailed in the manner and with the effect set forth in Section 3.03. The Company shall also deliver a copy of the Company Notice to the Trustee at such
time as it is mailed to the Holders. 

        Each
Company Notice shall specify the circumstances constituting the Fundamental Change, the Fundamental Change Repurchase Date, the Fundamental Change Redemption Price at which the
Company shall be obligated to redeem the Securities, the amount of interest accrued on each Security to, but excluding, the Fundamental Change Repurchase Date, the latest time by which the Holder must
exercise the redemption right (the "Fundamental Change Expiration Time"), that the Holder shall have the right to withdraw any Notes prior to the Fundamental Change Expiration Time, a description of
the procedure which a Holder must follow to exercise such redemption right and to withdraw any surrendered Notes and the place or places where the Holder is to surrender such Holder's Securities. 

        No
failure of the Company to give the foregoing notices and no defect therein shall limit the Holders' redemption rights or affect the validity of the proceedings for the repurchase of
the Securities pursuant to this Section 3.08. 

        (c)   For
a Security to be so redeemed at the option of the Holder, the Paying Agent must receive such Security with the form entitled "Option to Elect Redemption Upon a
Fundamental Change" on the reverse thereof duly completed (a "Fundamental Change Redemption Notice"), together with such Security duly endorsed for transfer, on or before the 30th day after the date
of such Company Notice (or if such 30th day is not a Business Day, the immediately preceding Business Day). All questions as 

14

 

to
the validity, eligibility (including time of receipt) and acceptance of any Security for redemption shall be determined by the Company, whose determination shall be final and binding. 

        (d)   Upon
receipt by the Company of the Fundamental Change Redemption Notice specified in Section 3.08(c), the Holder of the Security in respect of which such
Fundamental Change Redemption Notice was given shall (unless such Fundamental Change Redemption Notice is withdrawn as specified in the following two paragraphs) thereafter be entitled to receive
solely the Fundamental Change Redemption Price, together with accrued interest to, but excluding, the Fundamental Change Repurchase Date, with respect to such Security. Such Fundamental Change
Redemption Price together with accrued interest to, but excluding, the Fundamental Change Repurchase Date, shall be paid to such Holder promptly following the Fundamental Change Repurchase Date.
Securities in respect of which a Fundamental Change Redemption Notice has been given by the Holder thereof may not be converted into shares of Common Stock on or after the date of the delivery of such
Fundamental Change Redemption Notice, unless such Fundamental Change Redemption Notice has first been validly withdrawn as specified in the following two paragraphs. 

        A
Fundamental Change Redemption Notice may be withdrawn by the Holder by means of a written notice of withdrawal delivered to the office of the Paying Agent at any time prior to the
close of business on the Fundamental Change Repurchase Date to which it relates specifying: 

        (1)   the
certificate number of the Security in respect of which such notice of withdrawal is being submitted, 

        (2)   the
principal amount of the Security with respect to which such notice of withdrawal is being submitted, and 

        (3)   the
principal amount, if any, of such Security which remains subject to the original Fundamental Change Redemption Notice and which has been or will be delivered for
purchase by the Company. 

        There
shall be no redemption pursuant to Section 3.08 if there has occurred prior to, on or after, as the case may be, the giving, by the Holders of such Securities, of the
required Fundamental Change Redemption Notice and is continuing an Event of Default (other than a default in the payment of the Fundamental Change Redemption Price, together with accrued interest to,
but excluding, the Fundamental Change Repurchase Date, with respect to such Securities). 

        (e)   On
or before the Fundamental Change Repurchase Date the Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary or an
Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.04) an amount of money and/or securities, if permitted hereunder,
sufficient to pay the aggregate Fundamental Change Redemption Price, together with accrued interest to, but excluding, the Fundamental Change Repurchase Date, of all the Securities or portions thereof
which are to be redeemed as of such Fundamental Change Repurchase Date; provided that if such payment is made on the Fundamental Change Repurchase Date it must be received by the Trustee or Paying
Agent, as the case may be, by 10:00 a.m. New York City time, on such Fundamental Change Repurchase Date. 

        (f)    Any
Security that is to be redeemed upon a Fundamental Change only in part shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder's attorney duly authorized in
writing) and the Company shall execute and, upon the Company's written direction to the Trustee, the Trustee shall authenticate and deliver to the Holder of such Security, without service charge, a
new Security or Securities, of any authorized denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the Security
so surrendered which is not redeemed. 

15

 

        (g)   In
connection with any offer to redeem Securities under Section 3.08 hereof, the Company shall (i) comply with Rule 13e-4 (which term,
as used herein, includes any successor provision thereto) under the Exchange Act, if applicable, (ii) file, if applicable, the related Schedule 13E-4 (or any successor
schedule, form or report) under the Exchange Act and (iii) otherwise comply with all Federal and state securities laws so as to permit the rights and obligations under Section 3.08 to be
exercised in the time and in the manner specified in Section 3.08. 

        (h)   The
Trustee and the Paying Agent shall return to the Company any cash that remains unclaimed as provided in paragraph 11 of the Securities, together with interest
or dividends, if any (subject to the provisions of Section 7.01(f)), thereon, held by them for the payment of a Fundamental Change Redemption Price, together with accrued interest to, but
excluding, the Fundamental Change Repurchase Date; provided, however, that to the extent that the aggregate amount of cash deposited by the Company pursuant to Section 3.08 exceeds the
aggregate Fundamental Change Redemption Price, together with accrued interest to, but excluding, the Fundamental Change Repurchase Date, of the Securities or portions thereof which the Company is
obligated to purchase as of the Fundamental Change Repurchase Date then promptly after the Business Day following the Fundamental Change Repurchase Date the Trustee and the Paying Agent shall return
any such excess to the Company together with interest or dividends, if any, thereon. 

 
 

ARTICLE 4
  COVENANTS    

        Section 4.01.    Payment of Securities.    The Company shall promptly make all payments in respect of the
Securities on the dates and in the manner provided in the Securities or pursuant to this Indenture. The principal amount, premium, if any, accrued interest, Redemption Price and Fundamental Change
Redemption Price shall be considered paid on the applicable date due if on such date the Trustee or
the Paying Agent holds on or before 10:00 a.m. New York City time on such date, in accordance with this Indenture, money or securities, if permitted hereunder, sufficient to pay all such amount
then due. 

        The
Company shall pay interest at the rate set forth in paragraph I of the Securities and it shall pay interest on overdue interest at the same rate compounded semiannually (to
the extent that the payment of such interest shall be legally enforceable), which interest on overdue interest shall accrue from the date such amounts became overdue. 

        Section 4.02.    SEC Reports.    The Company shall file with the Trustee, within 15 days after it files
such annual and quarterly reports, information, documents and other reports with the SEC, copies of its annual report and of the information, documents and other reports (or copies of such portions of
any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. 

        Section 4.03.    Compliance Certificate.    The Company shall deliver to the Trustee within 120 days
after the end of each fiscal year of the Company (beginning with the fiscal year ending on June 30, 1998) an Officers' Certificate stating whether or not the signers know of any Default that
occurred during such period. If they do, such Officers' Certificate shall describe the Default and its status. 

        Section 4.04.    Further Instruments and Acts.    Upon request of the Trustee, the Company will execute and
deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture. 

        Section 4.05.    Maintenance of Office or Agency.    The Company will maintain in the Borough of Manhattan, The
City of New York, an office or agency where Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of transfer, exchange, redemption or conversion
and where notices and demands to or upon the Company in respect of the 

16

 

Securities
and this Indenture may be served. The office of State Street Bank and Trust Company, N.A., an Affiliate of the Trustee, at 61 Broadway, Concourse Level, Corporate Trust Window, New York,
New York 10006, shall be such office or agency for all of the aforesaid purposes unless the Company shall maintain some other office or agency for such purposes and shall give prompt written notice to
the Trustee of the location, and any change in the location, of such other 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 address of the Trustee set forth in Section 12.02. 

        The
Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, The City of New York, for such purposes. 

 
 

ARTICLE 5
  SUCCESSOR CORPORATION    

        Section 5.01.    When Company May Merge or Transfer Assets.    The Company shall not consolidate with or merge
with or into any other Person (other than in a merger or consolidation in which the Company is the surviving Person) or convey, transfer or lease its properties and assets substantially as an entirety
to any Person, unless: 

        (a)   the
Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance, transfer or lease the
properties and assets of the Company substantially as an entirety (i) shall be a corporation, partnership or trust organized and validly existing under the laws of the United States or any
State thereof or the District of Columbia and (ii) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all
of the obligations of the Company under the Securities and this Indenture; 

        (b)   immediately
after giving effect to such transaction, no Default shall have occurred and be continuing; and 

        (c)   the
Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or
lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture, comply with this Article and that all conditions precedent herein provided for
relating to such transaction have been satisfied. 

        The
successor Person formed by such consolidation or into which the Company is merged or the successor Person to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor had been named as the Company herein; and thereafter, except in
the case of (i) a lease of its properties and assets substantially as an entirety and (ii) obligations the Company may have under a supplemental indenture pursuant to
Section 10.14, the Company shall be discharged from all obligations and covenants under this Indenture and the Securities. 

17

 
 
 

ARTICLE 6
  DEFAULTS AND REMEDIES    

        Section 6.01.    Events of Default.    An "Event of Default" occurs if: 

        (1)   the
Company defaults in the payment of the principal amount of, premium, if any, Redemption Price or Fundamental Change Redemption Price on any Security when the same
becomes due and payable at its Stated Maturity, upon redemption, upon declaration or otherwise; 

        (2)   the
Company defaults in the payment of any installment of interest upon any of the Securities as and when the same shall become due and payable, and continuance of such
default for 30 days; 

        (3)   the
Company fails to comply with any of its agreements in the Securities or this Indenture (other than those referred to in clause (1) or (2) above) and
such failure continues for 60 days after receipt by the Company of a Notice of Default; 

        (4)   a
decree or order by a court having jurisdiction in the premises shall have been entered adjudging the Company a bankrupt or insolvent, or approving as properly filed a
petition seeking reorganization of the Company under any Bankruptcy Law, and such decree or order shall have continued undischarged and unstayed for a period of 60 consecutive days; or a decree or
order of a court having jurisdiction in the premises of the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of the Company or of its property, or for the
winding-up or liquidation of its affairs, shall have been entered, and such decree or order shall have remained in force undischarged and unstayed of a period of 60 consecutive days; or 

        (5)   the
Company shall institute proceedings to be adjudicated a voluntary bankrupt, or shall consent to the filing of a bankruptcy proceeding against it, or shall
file a petition or answer or consent seeking reorganization under any Bankruptcy Law, or shall consent to the filing of any such petition, or shall consent to the appointment of a receiver or
liquidator or trustee or assignee in bankruptcy or insolvency of it or of its property or shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its
debts generally as they become due. 

        "Bankruptcy
Law" means Title 11, United States Code, or any similar Federal or state law for the relief of debtors. 

        A
Default under clause (3) above is not an Event of Default until the Trustee notifies the Company, or the Holders of at least 25% in aggregate principal amount of the Securities
at the time outstanding notify the Company and the Trustee, of the Default and the Company does not cure such Default (and such Default is not waived) within the time specified in clause (3)
above after actual receipt of such notice (a "Notice of Default"). Any such notice must specify the Default, demand that it be remedied and state that such notice is a Notice of Default. 

        Section 6.02.    Acceleration.    If an Event of Default (other than an Event of Default specified in
Section 6.01(4) or (5)) occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding by
notice to the Company and the Trustee, may declare the principal amount and premium, if any, on all the Securities and the interest accrued thereon to be immediately due and payable. Upon such a
declaration, such principal amount, premium, if any, and interest accrued thereon shall be due and payable immediately. If an Event of Default specified in Section 6.01(4) or (5) occurs
and is continuing, the principal amount and premium, if any, on all the Securities and the interest accrued thereon shall become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Securityholders. The Holders of a majority in aggregate principal amount of the Securities at the time outstanding, by notice to the Trustee (and without notice to
any other Securityholder) may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and 

18

 

if
all existing Events of Default have been cured or waived except nonpayment of the principal amount, premium, if any, and interest accrued thereon that has become due solely as a result of
acceleration and if all amounts due to the Trustee under Section 7.07 have been paid. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 

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

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

        Section 6.04.    Waiver of Past Defaults.    The Holders of a majority in aggregate principal amount of the
Securities at the time outstanding, by notice to the Trustee (and without notice to any other Securityholder), may waive an existing Default and its consequences except (1) an Event of Default
described in Section 6.01(1) or 6.01(2), (2) a Default in respect of a provision that under Section 9.02 cannot be amended without the consent of each Securityholder affected or
(3) a Default that constitutes a failure to convert any Security in accordance with the terms of Article 10. When a Default is waived, it is deemed cured, but no such waiver shall extend
to any subsequent or other Default or impair any consequent right. 

        Section 6.05.    Control by Majority.    The Holders of a majority in aggregate principal amount of the
Securities at the time outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the
Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or that the Trustee determines in good faith is unduly prejudicial to the rights of other
Securityholders or would involve the Trustee in personal liability unless the Trustee is offered indemnity satisfactory to it. 

        Section 6.06.    Limitation on Suits.    A Securityholder may not pursue any remedy with respect to this
Indenture or the Securities unless: 

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

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

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

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

        (5)   the
Holders of a majority in aggregate principal amount of the Securities at the time outstanding do not give the Trustee a direction inconsistent with the request
during such 60-day period. 

        A
Securityholder may not use this Indenture to prejudice the rights of any other Securityholder or to obtain a preference or priority over any other Securityholder. 

        Section 6.07.    Rights of Holders to Receive Payment.    Notwithstanding any other provision of this
Indenture, the right of any Holder to receive payment of the principal amount, premium, if any, 

19

 

accrued
interest, Redemption Price or Fundamental Change Redemption Price in respect of the Securities held by such Holder, on or after the respective due dates expressed in the Securities or any
Redemption Date or Fundamental Change Repurchase Date, as the case may be, and to convert the Securities in accordance with Article 10, or to bring suit for the enforcement of any such payment
on or after such respective dates or the right to convert, shall not be impaired or affected adversely without the consent of each such Holder. 

        Section 6.08.    Collection Suit by Trustee.    If an Event of Default described in Section 6.01(1) or
6.01(2) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount owing with respect to the Securities and
the amounts provided for in Section 7.07. 

        Section 6.09.    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 amount, premium, if any, accrued interest, Redemption Price or Fundamental Change Redemption
Price in respect of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company
for the payment of any such amount) shall be entitled and empowered, by intervention in such proceeding or otherwise, 

        (a)   to
file and prove a claim for the whole amount of the principal amount, premium, if any, accrued interest, Redemption Price or Fundamental Change Redemption Price 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 

        (b)   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 similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07. 

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

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

        First:
to the Trustee for amounts due under Section 7.07; 

        Second:
to Securityholders for amounts due and unpaid on the Securities for the principal amount, premium, if any, accrued interest, Redemption Price or
Fundamental Change Redemption Price, as the case may be, ratably, without preference or priority of any kind, according to such amounts due and payable on the Securities; and 

        Third:
the balance, if any, to the Company. 

20

 

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

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

        Section 6.12.    Waiver of Stay, Extension or Usury Laws.    The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or other law wherever
enacted, now or at any time hereafter in force, which would prohibit or forgive the Company from paying all or any portion of the principal amount, premium, if any, accrued interest, Redemption Price
or Fundamental Change Redemption Price in respect of Securities as contemplated herein, or 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 laws and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been enacted. 

 
 

ARTICLE 7
  TRUSTEE    

        Section 7.01.    Duties of Trustee.    (a) If an Event of Default has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in its exercise as a prudent man would exercise or use under the circumstances in
the conduct of his own affairs. 

        (b)   Except
during the continuance of an Event of Default: 

        (1)   the
Trustee need perform only those duties that are specifically set forth in this Indenture and no others; and 

        (2)   in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee shall examine the certificates and opinions to determine whether or not
they conform to the requirements of this Indenture. 

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

        (1)   this
paragraph (c) does not limit the effect of paragraph (b) of this Section 7.01; 

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

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

21

 

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

        (e)   The
Trustee may refuse to perform any duty or exercise any right or power or extend or risk its own funds or otherwise incur any financial liability unless it receives
indemnity satisfactory to it against any loss, liability or expense. 

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

        Section 7.02.    Rights of Trustee.    (a) The Trustee may rely on any document believed by it to be
genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document. 

        (b)   Before
the Trustee acts or refrains from acting, it may require a Company Order, an Officers' Certificate or an Opinion of Counsel. The Trustee shall not be liable for
any action it takes or omits to take in good faith in reliance on such Company Order, Officers' Certificate or Opinion of Counsel. 

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

        (d)   Subject
to the provisions of Section 7.01(c), the Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be
authorized or within its rights or powers. 

        Section 7.03.    Individual Rights of Trustee.    The Trustee in its individual or any other capacity may
become the owner or pledgee of Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar, Conversion
Agent or co-registrar may do the same with the like rights. However, the Trustee must comply with Section 7.10. 

        Section 7.04.    Trustee's Disclaimer.    The Trustee makes no representation as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Company's use of the proceeds from the Securities, it shall not be responsible for any statement in the Prospectus for the
Securities or in the Indenture or the Securities (other than its certificate of authentication), the acts of an prior Trustee hereunder, or the determination as to which beneficial owners are entitled
to receive any notices hereunder. 

        Section 7.05.    Notice of Defaults.    If a Default occurs and is continuing and if it is known to the
Trustee, the Trustee shall give to each Securityholder notice of the Default within 90 days after it occurs. Except in the case of a Default described in Section 6.01(1) or 6.01(2), the
Trustee may withhold the notice if and so long as a committee of its Trust Officers in good faith determines that withholding the notice is in the interests of Securityholders. The Trustee shall not
give notice of a Default pursuant to Section 6.01(3) until at least sixty (60) days have passed since its occurrence. 

        Section 7.06.    Disqualification; Conflicting Interests.    If the Trustee has or shall acquire any
conflicting interest within the meaning of the TIA, it shall either eliminate such conflicting interest or resign, to the extent and in the manner provided by, and subject to the provisions of the TIA
and this Indenture. 

        Section 7.07.    Compensation and Indemnity.    The Company agrees: 

        (a)   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); 

        (b)   to
reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of
this Indenture 

22

 

(including
the reasonable compensation and the expense, advances and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence
or bad faith; and 

        (c)   to
indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of this trust, including the 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. 

        To
secure the Company's payment obligations in this Section 7.07, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee,
except that held in trust to pay the principal amount, premium, if any, accrued interest, Redemption Price or Fundamental Change Redemption Price, as the case may be, on particular Securities. 

        The
Company's payment obligations pursuant to this Section 7.07 shall survive the discharge of this Indenture. When the Trustee incurs expenses after the occurrence of a Default
specified in Section 6.01(4) or (5), the expenses are intended to constitute expenses of administration under any Bankruptcy Law. 

        Section 7.08.    Replacement of Trustee.    The Trustee may resign by so notifying the Company; provided,
however, no such resignation shall be effective until a successor Trustee has accepted its appointment pursuant to this Section 7.08. The Holders of a majority in aggregate principal amount of
the Securities at the time outstanding may remove the Trustee by so notifying the Trustee and may appoint a successor Trustee. The Company shall remove the Trustee if: 

        (1)   the
Trustee fails to comply with, or ceases to be eligible under, Section 7.10; 

        (2)   the
Trustee is adjudged bankrupt or insolvent; 

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

        (4)   the
Trustee otherwise becomes incapable of acting. 

        If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint, by resolution of its Board of Directors, a
successor Trustee. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07. 

        If
a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of a majority in
aggregate principal amount of the Securities at the time outstanding may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

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

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

        Section 7.10.    Eligibility; Disqualification.    The Trustee (or if a Trustee is a member of a bank holding
company, its bank holding company) shall have a combined capital and surplus of at least 

23

 

$50,000,000
as set forth in its most recent published annual report of conditions. 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 7.11.    Preferential Collection of Claims Against Company.    If and when the Trustee shall be or
become a creditor of the Company (or any other obligor upon the Securities), the Trustee shall be subject to the provisions of the TIA regarding the collection of claims against the Company (or any
such other obligor). 

        Section 7.12.    Reports by Trustee.    

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

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

 
 

ARTICLE 8
  DISCHARGE OF INDENTURE    

        Section 8.01.    Discharge of Liability on Securities.    When (i) the Company delivers to the Trustee
all outstanding Securities (other than Securities replaced pursuant to Section 2.07) for cancellation or (ii) all outstanding Securities have become due and payable and the Company
deposits with the Trustee cash and/or securities, as, permitted by the terms hereof, sufficient to pay at Stated Maturity the principal amount of all outstanding Securities (other than Securities
replaced pursuant to Section 2.07), and if in either case the Company pays all other sums payable hereunder by the Company, then this Indenture shall, subject to Section 7.07, cease to
be of further effect. The Trustee shall join in the execution of a document prepared by the Company acknowledging satisfaction and discharge of this Indenture on demand of the Company accompanied by
an Officers' Certificate and Opinion of Counsel and at the cost and expense of the Company. 

        Section 8.02.    Repayment to the Company.    The Trustee and the Paying Agent shall return to the Company upon
written request any money or securities held by them for the payment of any amount with respect to the Securities that remains unclaimed for two years, provided, however, that the Trustee or such
Paying Agent, before being required to make any such return, shall at the expense of the Company cause to be published once in a newspaper of general circulation in The City of New York or mail to
each such Holder notice that such money or securities remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication or
mailing, any unclaimed money or securities then remaining will be returned to the Company. After return to the Company, Holders entitled to the money or securities must look to the Company for payment
as general creditors unless an applicable abandoned property law designates another person. 

 
 

ARTICLE 9
  AMENDMENTS    

        Section 9.01.    Without Consent of Holders.    The Company and the Trustee may amend this Indenture or the
Securities without the consent of any Securityholder: 

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

        (2)   to
comply with Article 5 or Section 10.14; 

24

 

        (3)   to
provide for uncertificated Securities in addition to certificated Securities so long as such uncertificated Securities are in registered form for purposes of the
Internal Revenue Code of 1986, as amended; 

        (4)   to
make any change that does not adversely affect the right of any Securityholder; or 

        (5)   to
make any change to comply with the TIA, or any amendment thereto, or to comply with any requirement of the SEC in connection with the qualification, if any, of the
Indenture under the TIA. 

        Section 9.02.    With Consent of Holders.    With the written consent of the Holders of at least a majority in
aggregate principal amount of the Securities at the time outstanding, the Company and the Trustee may amend this Indenture or the Securities. However, without the consent of each Securityholder
affected, an amendment or supplement to this Indenture or the Securities may not: 

        (1)   make
any change to the manner or rate of accrual in connection with interest, reduce the rate of interest referred to in paragraph 1 of the Securities or extend
the time for payment of interest on any Security; 

        (2)   reduce
the principal amount or extend the Stated Maturity of any Security; 

        (3)   reduce
the Redemption Price or Fundamental Change Redemption Price of any Security; 

        (4)   make
any Security payable in money or securities other than that stated in the Security; 

        (5)   make
any change in Section 6.04, Section 6.07 or this Section 9.02, except to increase any such percentage; 

        (6)   make
any change that adversely affects the right to convert any Security; or 

        (7)   make
any change that adversely affects the right to require the Company to redeem the Securities upon a Fundamental Change in accordance with the terms thereof and this
Indenture; 

and
no such amendment or supplement to this Indenture may reduce the aforesaid percentage of Securities whose Holders must consent to any such amendment or supplemental indenture, without the comment
of the Holders of all the Securities then outstanding. 

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

        After
an amendment under this Section 9.02 becomes effective, the Company shall mail to each Holder a notice briefly describing the amendment. 

        Section 9.03.    Compliance with TIA.    Every supplemental indenture executed pursuant to this Article shall
comply with the TIA as then in effect. 

        Section 9.04.    Revocation and Effect of Consents, Waivers and Actions.    Until an amendment, supplemental
indenture, waiver or other action becomes effective, a consent to it or any other action by a Holder of a Security hereunder is a continuing consent by the Holder and every subsequent Holder of that
Security or portion of the Security that evidences the same obligation as the consenting Holder's Security, even if notation of the consent, waiver or action is not made on the Security. However, any
such Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder's Security or portion of the Security if the Trustee receives the notice or revocation before the date the
amendment, supplemental indenture, waiver or action becomes effective. After an amendment, supplemental indenture, waiver or action becomes effective, it shall bind every Securityholder. 

        Section 9.05.    Notation on or Exchange of Securities.    Securities authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall if required by the 

25

 

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 so modified as to conform, in
the opinion of the Trustee and the Board of Directors, 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. 

        Section 9.06.    Trustee to Sign Supplemental Indentures.    The Trustee shall sign any supplemental indenture
authorized pursuant to this Article 9 if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign
such supplemental indenture. In signing such supplemental indenture the Trustee shall be entitled to receive, and (subject to the provisions of Section 7.01) shall be fully protected in relying
upon, an Officers' Certificate and an Opinion of Counsel stating that such supplemental indenture is authorized or permitted by this Indenture. 

        Section 9.07.    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 shall be bound thereby. 

 
 

ARTICLE 10
  CONVERSION    

        Section 10.01.    Conversion Privilege.    A Holder of a Security may convert such Security into Common Stock
at any time during the period stated in paragraph 7 of the Securities. The conversion price per share of Common Stock (the "Conversion Price") shall be that set forth in paragraph 7 in
the Securities, subject to adjustment as herein set forth. 

        A
Holder may convert a portion of the principal amount of a Security if the portion is $1,000 or a multiple of $1,000. Provisions of this Indenture that apply to conversion of all of a
Security also apply to conversion of a portion of a Security. 

        Section 10.02.    Conversion Procedure.    To convert a Security a Holder must satisfy the requirements in
paragraph 7 of the Securities. The date on which the Holder satisfies all those requirements is the conversion date (the "Conversion Date"). Securities surrendered for conversion during the
period from the close of business on any Regular Record Date to the close of business on the Trading Day immediately prior to the next succeeding Interest Payment Date (the "Interest Period") shall
(except in the case of Securities or portions thereof which have been called for redemption on a Redemption Date within such Interest Period) be accompanied by payment in New York Clearing House funds
or other funds acceptable to the Company of an amount equal to the interest payable on such Interest Payment Date on the principal amount of Securities being surrendered for conversion. Subject to the
provisions of Section 3.07 relating to the payment of Defaulted Interest by the Company, the interest payment with respect to a Security surrendered for conversion during the Interest Period
(except in the case of Securities or portions thereof which have been called for redemption on a Redemption Date within the Interest Period) shall be payable on such Interest Payment Date to the
Holder of such Securities at the close of business on such Regular Record Date notwithstanding the conversion of such Securities during such Interest Period. 

26

  

        As soon as practicable after the Conversion Date, the Company shall deliver to the Holder, through the Conversion Agent, a certificate for the number of full shares of Common Stock
issuable upon the conversion and cash in lieu of any fractional share determined pursuant to Section 10.03. The person in whose name the certificate is registered shall be treated as a
stockholder of record on and after the Conversion Date; provided, however, that no surrender of a Security on any date when the stock transfer books of the Company shall be closed shall be effective
to constitute the person or persons entitled to receive the shares of Common Stock upon such conversion as the record holder or holders of such shares of Common Stock on such date, but such surrender
shall be effective to constitute the person or persons entitled to receive such shares of Common Stock as the record holder or holders thereof for all purposes at the close of business on the next
succeeding day on which such stock transfer books are open; such conversion shall be at the Conversion Price in effect on the date that such Security shall have been surrendered for conversion, as if
the stock transfer books of the Company had not been closed. Upon conversion of a Security, such person shall no longer be a Holder of such Security. 

        No
payment or adjustment will be made for dividends on or other distribution with respect to any Common Stock except as provided in this Article 10. 

        If
the Holder converts more than one Security at the same time, the number of shares of Common Stock issuable upon the conversion shall be based on the total principal amount of the
Securities converted. 

        Upon
surrender of a Security that is converted in part, the Company shall execute, and the Trustee shall authenticate and deliver to the Holder, a new Security in an authorized
denomination equal in principal amount to the unconverted portion of the Security surrendered. 

        If
the last day on which a Security may be converted is a Legal Holiday in a place where a Conversion Agent is located, the Security may be surrendered to that Conversion Agent on the
next succeeding day that it is not a Legal Holiday. 

        Section 10.03.    Fractional Shares.    The Company will not issue a fractional share of Common Stock upon
conversion of a Security. Instead, the Company will deliver cash for the current market value of the fractional share. The current market value of a fractional share shall be determined to the nearest
1/10,000th of a share by multiplying the last reported sale price (determined as set forth in the definition of Current Market Price), on the last Trading Day prior to the Conversion Date, of a full
share by the fractional amount and rounding the product to the nearest whole cent. 

        Section 10.04.    Taxes on Conversion.    If a Holder converts a Security, the Company shall pay any
documentary, stamp or similar issue or transfer tax due on the issue of shares of Common Stock upon the conversion. However, the Holder shall pay any such tax which is due because the Holder requests
the shares to be issued in a name other than the Holder's name. The Conversion Agent may refuse to deliver the certificates representing the Common Stock being issued in a name other than the Holder's
name until the Conversion Agent receives a sum sufficient to pay any tax which will be due because the shares are to be issued in a name other than the Holder's name. Nothing herein shall preclude any
tax withholding required by law or regulations. 

        Section 10.05.    Company to Provide Stock.    The Company shall, prior to issuance of any Securities
hereunder, and from time to time as may be necessary, reserve out of its authorized but unissued Common Stock a sufficient number of shares of Common Stock to permit the conversion of the Securities. 

        All
shares of Common Stock delivered upon conversion of the Securities shall be newly issued shares or treasury shares, shall be duly and validly issued and fully paid and nonassessable
and shall be free from preemptive rights and free of any lien or adverse claim. 

27

 

        The
Company will endeavor promptly to comply with all Federal and state securities laws regulating the offer and delivery of shares of Common Stock upon conversion of Securities, if any,
and will endeavor promptly, if permitted by the rules of such exchange, over-the-counter market or other market, to list or cause to have quoted such shares of Common Stock on
each national securities exchange or in the over-the-counter market or such other market on which the Common Stock is then listed or quoted. 

        Section 10.06.    Adjustment for Change in Capital Stock.    In case the Company shall (i) pay a
dividend, or make a distribution, in shares of its Common Stock, on its Common Stock, (ii) subdivide its outstanding Common Stock into a greater number of shares, or (iii) combine its
outstanding Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior thereto shall be adjusted so that the holder of any Security thereafter surrendered for
conversion shall be entitled to receive the number of shares of Common Stock of the Company which he would have owned or have been entitled to receive after the happening of any of the events
described above had such Security been converted immediately prior to the happening of such event. If any dividend or distribution of the type described in clause (i) above is not so paid or
made, the Conversion Price shall again be adjusted to the Conversion Price which would then be in effect if such dividend or distribution had not been declared. An adjustment made pursuant to this
Section 10.06 shall become. effective immediately after the record date in the case of a dividend and shall become effective immediately after the effective date in the case of subdivision or
combination. 

        Section 10.07.    Adjustment for Rights Issue.    In case the Company shall issue rights or warrants to all
holders of its Common Stock entitling them (for a period expiring within 45 days after the record date mentioned below) to subscribe for or purchase Common Stock at a price per share less than
the Current Market Price per share of Common Stock at the record date for the determination of stockholders entitled to receive such rights or warrants, the Conversion Price in effect immediately
prior thereto shall be adjusted so that the same shall equal the Conversion Price determined by multiplying the Conversion Price in effect immediately prior to the date of issuance of such rights or
warrants by a fraction of which the numerator shall be the number of shares of Common Stock outstanding on the date of issuance of such rights or warrants plus the number of shares which the aggregate
offering price of the total number of shares so offered would purchase at such Current Market Price, and of which the denominator shall be the number of shares of Common Stock outstanding on the date
of issuance of such rights or warrants plus the number of additional shares of Common Stock offered for subscription or purchase. Such adjustment shall be made successively whenever any such rights or
warrants are issued, and shall become effective immediately after the opening of business on the day following the record date for the determination of the stockholders entitled to receive such rights
or warrants. To the extent that shares of Common Stock are not delivered after the expiration of such rights or warrants, the Conversion Price shall be readjusted to the Conversion Price which would
then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of only the number of shares of Common Stock actually delivered. If such
rights or warrants are not so issued, the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such record date for the determination of stockholders
entitled to receive such rights' or warrants had not been fixed. In determining whether any rights or warrants entitle the holders to subscribe for or purchase shares of Common Stock at less than
such. Current Market Price, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received by the Company for such rights
or warrants, the value of such consideration, if other than cash, to be determined by the Board of Directors. 

        Section 10.08.    Adjustment for Other Distributions.    (a) In case the Company shall distribute to
all holders of its Common Stock (excluding any distribution in connection with the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary) any shares of any class of
capital 

28

 

stock
of the Company (other than Common Stock) or evidences of its indebtedness or assets (other than cash) or rights or warrants to subscribe for or purchase any of its securities (excluding those
referred to in Section 10.07 hereof) (any of the foregoing hereinafter in this Section 10.08(a) called the "Distributed Securities"), then, in each case, the Conversion Price shall be
adjusted so that the same shall equal the Conversion Price determined by multiplying the Conversion Price in effect immediately prior to the date of such distribution by a fraction of which the
numerator shall be the Current Market Price per share of the Common Stock on the record date mentioned below less the fair market value on such record date (as determined by the Board of Directors of
the Company, whose determination shall be conclusive, and described in a certificate filed with the Trustee) of the Distributed Securities so distributed applicable to one share of Common Stock, and
the denominator shall be the Current Market Price per share of the Common Stock on such record date. Such adjustment shall become effective immediately after the record date for the determination of
stockholders entitled to receive such distribution. Notwithstanding the foregoing, in the event the then fair market value (as so determined) of the portion of the Distributed Securities so
distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price of the Common Stock on the relevant record date, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Securityholder shall have the right to receive upon conversion the amount of Distributed Securities such Holder would have received had such Holder converted each
Security on such record date. In the event that such distribution is not so paid or made, the Conversion Price shall again be adjusted to the Conversion Price which would then be in effect if such
distribution had not been declared. If the Board of Director determines the fair market value of any distribution for purposes of this Section 10.08(a) by reference to the actual or when issued
trading market for any securities, it must in doing so consider the prices in such market over the same period used in computing the Current Market Price of the Common Stock. 

        Notwithstanding
the foregoing provisions of this Section 10.08(a), no adjustment shall be made thereunder for any distribution of Distributed Securities if the Company makes
proper provision so that each Holder of a Security who converts such Security (or any portion thereof) after the record date for such distribution shall be entitled to receive upon such conversion, in
addition to the shares of Common Stock issuable upon such conversion, the amount and kind of Distributed Securities that such Holder would have been entitled to receive if such Holder had, immediately
prior to such record date, converted such Security into Common Stock, provided that, with respect to any Distributed Securities that are convertible, exchangeable or exercisable, the foregoing
provision shall only apply to the extent (and so long as) the Distributed Securities receivable upon conversion of such Security would be convertible, exchangeable or exercisable, as applicable,
without any loss of rights or privileges for a period of at least 60 days following conversion of such Security. 

        (b)   In
case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock cash (excluding (x) any quarterly cash dividend on the Common
Stock to the extent the aggregate cash dividend per share of Common Stock in any fiscal quarter does not exceed the greater of (A) the amount per share of Common Stock of the next preceding
quarterly cash dividend on the Common Stock to the extent such preceding quarterly dividend did not require any adjustment of the Conversion Price pursuant to this Section 10.08(b) (as adjusted
to reflect subdivisions or combinations of the Common Stock), and (B) 3.75% of the average of the last reported sales prices of the Common Stock (determined as provided in the definition of
Current Market Price) during the ten Trading Days next preceding the date of declaration of such dividend and (y) any dividend or distribution in connection with the liquidation, dissolution or
winding up of the Company, whether voluntary or involuntary), then, in such case, unless the Company elects to reserve such cash for distribution to the holders of the Securities upon the conversion
of the Securities so that any such holder converting Securities will receive upon such conversion, in addition to the shares of Common Stock to which such holder is entitled, the amount of cash which
such holder would have received if such holder had, immediately prior to the record date for such distribution of cash, converted its Securities into 

29

 

Common
Stock, the Conversion Price shall be decreased so that the same shall equal the Conversion Price determined by multiplying the Conversion Price in effect immediately prior to the record date by
a fraction of which the numerator shall be the Current Market Price of the Common Stock on the record date less the amount of cash so distributed (and not excluded as provided above) applicable to one
share of Common Stock, and the denominator shall be such Current Market Price of the Common Stock, such decrease to be effective immediately prior to the opening of business on the day following the
record date; provided, however, that in the event the portion of the cash so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price of the Common
Stock on the record date, in lieu of the foregoing adjustment, adequate provision shall be made so that each Securityholder shall have the right to receive upon conversion the amount of cash such
holder would have received had such holder converted each Security on the record date. If such dividend or distribution is not so paid or made, the Conversion Price shall again be adjusted to be the
Conversion Price which would then be in effect if such dividend or distribution had not been declared. If any adjustment is required to be made as set forth in this Section 10.08(b) as a result
of a distribution that is a quarterly dividend, such adjustment shall be based upon the amount by which such distribution exceeds the amount of the quarterly cash dividend permitted to be excluded
pursuant hereto. If an adjustment is required to be made as set forth in this Section 10.08(b) above as a result of a distribution that is not a quarterly dividend, such adjustment shall be
based upon the full amount of the distribution. 

        (c)   In
case a tender or exchange offer made by the Company or any Subsidiary of the Company for all or any portion of the Common Stock shall expire and such tender or
exchange offer shall involve the payment by the Company or such Subsidiary of consideration per share of Common Stock having a fair market value (as. determined by the Board of Directors or, to the
extent permitted by applicable law, a duly authorized committee thereof, whose determination shall be conclusive, and described in a resolution of the Board of Directors or such duly authorized
committee thereof, as the case may be, at the last time (the "Expiration Time") tenders or exchanges may be made pursuant to such tender or exchange offer (as it shall have been amended)) that exceeds
the Current Market Price of the Common Stock on the Trading Day next succeeding the Expiration Time, the Conversion Price shall be decreased so that the same shall equal the Conversion Price
determined by multiplying the Conversion Price in effect immediately prior to the Expiration Time by a fraction of which the numerator shall be the number of shares of Common Stock outstanding
(including any tendered or exchanged shares) on the Expiration Time multiplied by the Current Market Price of the Common Stock on the Trading Day next succeeding the Expiration Time, and the
denominator shall be the sum of (x) the fair market value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the acceptance (up to any maximum specified
in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the shares deemed so accepted up to any such maximum, being
referred to as the "Purchased Shares") and (y) the product of the number of shares of Common Stock outstanding (less any Purchased Shares) on the Expiration Time and the Current Market Price of
the Common Stock on the Trading Day next succeeding the Expiration Time, such decrease to become effective immediately prior to the opening of business on the day following the Expiration Time. In the
event that the Company is obligated to purchase shares pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or
all such purchases are rescinded, the Conversion Price shall again be adjusted to be the Conversion Price which would then be effect if such tender or exchange offer had not been made. 

        (d)   In
case of a tender or exchange offer made by a Person other than the Company or any Subsidiary for an amount which increases the offeror's ownership of Common Stock to
more than 25% of the Common Stock outstanding and shall involve the payment by such person of consideration per share of Common Stock having a fair market value (as determined by the Board of
Directors, whose determination shall be conclusive, and described in a resolution of the Board of Directors) at the last 

30

 

time
(the "Offer Expiration Time") tenders or exchanges may be made pursuant to such tender or exchange offer (as it shall have been amended) that exceeds the Current Market Price of the Common Stock
on the Trading Day next succeeding the Offer Expiration Time, and in which, as of the Offer Expiration Time the Board of Directors is not recommending rejection of the offer, the Conversion Price
shall be decreased so that the same shall equal the Conversion Price determined by multiplying the Conversion Price in effect immediately prior to the Offer Expiration Time by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding (including any tendered or exchanged shares) on the Offer Expiration Time multiplied by the Current Market Price of the Common Stock
on the Trading Day next succeeding the Offer Expiration Time, and the denominator shall be the sum of (x) the fair market value (determined as aforesaid) of the aggregate consideration payable
to stockholders based on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Offer
Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the "Accepted Purchased Shares") and (y) the product of the number of shares of Common Stock
outstanding (less any Accepted Purchased Shares) on the Offer Expiration Time and the Current Market Price of the Common Stock on the Trading Day next succeeding the Expiration Time, such decrease to
become effective immediately prior to the opening of business on the day following the Offer Expiration Time. In the event that such Person is obligated to purchase shares pursuant to any such tender
or exchange offer, but such Person is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Price shall again be adjusted to be
the Conversion Price which would then be in effect if such tender or exchange offer had not been made. Notwithstanding the foregoing, the adjustment described in this Section 10.08(d) shall not
be made if, as of the Offer Expiration Time, the offering documents with respect to such offer disclose a plan or intention to cause the Company to engage in any transaction described in
Article 5. 

        Section 10.09.    When Adjustment May be Deferred.    No adjustment in the Conversion Price need be made unless
the adjustment would require an increase or decrease of at least 1% in the Conversion Price. Any adjustments that are not made shall be carried forward and taken into account in any subsequent
adjustment. 

        All
calculations under this Article 10 shall be made to the nearest cent or to the nearest 1/10,000th of a share, as the case may be. 

        Section 10.10.    When no Adjustment Required.    No adjustment need be made for rights to purchase Common
Stock pursuant to a Company plan for reinvestment of dividends or interest. 

        No
adjustment need be made for a change in the par value or no par value of the Common Stock. 

        To
the extent the Securities become convertible into cash, assets, property or securities (other than capital stock of the Company), no adjustment need be made thereafter as to the cash,
assets, property or such securities. Interest will not accrue on the cash. 

        Section 10.11.    Notice of Adjustment.    Whenever the Conversion Price is adjusted, the Company shall
promptly mail to Securityholders a notice of the adjustment. The Company shall file with the Trustee and the Conversion Agent such notice. The certificate shall, absent manifest error, be conclusive
evidence that the adjustment is correct. Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with respect to any such certificate except to exhibit the same to any
Holder desiring inspection thereof. 

        Section 10.12.    Voluntary Decrease.    The Company may make such decreases in the Conversion Price, in
addition to those required by Sections 10.06, 10.07 and 10.08, as the Board of Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase
Common Stock resulting from any dividend or distribution of stock (or rights to acquire stock) or from any event treated as such for income tax purposes. To the extent permitted by applicable 

31

 

law,
the Company from time to time may decrease the Conversion Price by any amount for any period of time if the period is at least 20 days, the decrease is irrevocable during the period and
the Board of Directors shall have made a determination that such decrease would be in the best interests of the Company, which determination shall be conclusive. Whenever the Conversion Price is so
decreased, the Company shall mail to Securityholders and file with the Trustee and the Conversion Agent a notice of the decrease. The Company shall mail the notice at least 15 days before the
date the decreased Conversion Price takes effect. The notice shall state the decreased Conversion Price and the period it will be in effect. 

        Section 10.13.    Notice of Certain Transactions.    If: 

        (1)   the
Company makes any distribution or dividend that would require an adjustment in the Conversion Price pursuant to Section 10.06, 10.07 or 10.08; or 

        (2)   the
Company takes any action that would require a supplemental indenture pursuant to Section 10.14; or 

        (3)   there
is a liquidation or dissolution of the Company; 

then
the Company shall mail to Securityholders and file with the Trustee and the Conversion Agent a notice stating the proposed record date for a dividend or distribution or the proposed effective
date of a subdivision, combination, reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up. The Company shall file and mail the notice at least
15 days before such date. Failure to file or mail the notice or any defect in it shall not affect the validity of the transaction. 

        Section 10.14.    Effect of Reclassification, Consolidation, Merger or Sale.    If any of the following events
occur, namely (i) any reclassification or change of outstanding shares of Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value,
or as a result of a subdivision or combination), (ii) any consolidation, merger or combination of the Company with another corporation as a result of which holders of Common Stock shall be
entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock, or (iii) any sale or conveyance of the properties and
assets of the Company as, or substantially as, an entirety to any other corporation as a result of which holders of Common Stock shall be entitled to receive stock, securities or other property or
assets (including cash) with respect to or in exchange for such Common Stock, then the Company or the successor or purchasing corporation, as the case may be, shall execute with the Trustee a
supplemental indenture providing that each Security shall be convertible into the kind and amount of shares of stock and other securities or property or assets (including cash) receivable upon such
reclassification, change, consolidation, merger, combination, sale or conveyance by a holder of a number of shares of Common Stock issuable upon conversion of such Securities immediately prior to such
reclassification, change, consolidation, merger, combination, sale or conveyance. Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Article. 

        The
Company shall cause notice of the execution of such supplemental indenture to be mailed to each holder of Securities at his address appearing on the Security register provided for in
Section 2.03 of this Indenture. 

        The
above provisions of this Section shall similarly apply to successive reclassifications, consolidations, mergers, combinations, and sales. 

        If
this Section applies, neither Section 10.06, 10.07 nor 10.08 applies. 

        Section 10.15.    Company Determination Final.    Any determination that the Company or the Board of Directors
must make pursuant to Section 10.03, 10.06, 10.07, 10.08, 10.09, 10.10, 10.14 or 10.17 is conclusive. 

32

 

        Section 10.16.    Trustee's Adjustment Disclaimer.    The Trustee has no duty to determine when an adjustment
under this Article 10 should be made, how it should be made or what it should be. The Trustee has no duty to determine whether a supplemental indenture under Section 10.14 need be
entered into or whether any provisions of any supplemental indenture are correct. The Trustee shall not be accountable for and makes no representation as to the validity or value of any securities or
assets issued upon conversion of Securities. The Trustee shall not be responsible for the Company's failure to comply with this Article 10. Each Conversion Agent shall have the same protection
under this Section 10.16 as the Trustee. 

        Section 10.17.    Simultaneous Adjustments.    In the event that this Article 10 requires adjustments to
the Conversion Price under more than one of Sections 10.06, 10.07, 10.08(a) or 10.08(b), and the record dates for the distributions giving rise to such adjustments shall occur on the same date, then
such adjustments shall be made by applying, first, the provisions of Section 10.08(a), second, the provisions of Section 10.08(b), third the provisions of Section 10.06 and,
fourth, the provisions of Section 10.07. 

        Section 10.18.    Successive Adjustments.    After an adjustment to the. Conversion Price under this
Article 10, any subsequent event requiring an adjustment under this Article 10 shall cause an adjustment to the Conversion Price as so adjusted. 

        Section 10.19.    Rights Issued in Respect of Common Stock Issued Upon Conversion.    Each share of Common
Stock issued upon conversion of Securities pursuant to this Article 10 shall be entitled to receive the appropriate number of Rights, if any, and the certificates representing the Common Stock
issued upon such conversion shall bear such legends, if any, in each case as provided by and subject to the terms of the Rights Agreement as in effect at the time of such conversion. If the Rights are
separated from the Common Stock in accordance with the provisions of the Rights Agreement such that the Holders of Securities would thereafter not be entitled to receive any such Rights in respect to
the Common Stock issuable upon conversion of such Securities, the Conversion Price will be adjusted as provided in Section 10.08(a) on the separation date; provided that if such Rights expire,
terminate or are redeemed by the Company, the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such separation had not occurred. In lieu of any such
adjustment, the Company may amend the Rights Agreement to provide that upon conversion of the Securities the Holders will receive, in addition to the Common Stock issuable upon such conversion, the
Rights which would have attached to such shares of Common Stock if the Rights had not become separated from the Common Stock pursuant to the provisions of the Rights Agreement. 

        Rights
or warrants distributed by the Company to all holders of Common Stock entitling the holders thereof to subscribe for or purchase shares of the Company's capital stock (either
initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events ("Trigger Event"): 

        (i)    are
deemed to be transferred with such shares of Common Stock, 

        (ii)   are
not exercisable, and 

        (iii)  are
also issued in respect of future issuances of Common Stock, 

shall
not be deemed distributed for purposes of Section 10.08(a) until the occurrence of the earliest Trigger Event. In addition, in the event of any distribution of rights or warrants, or any
Trigger Event with respect thereto, that shall have resulted in an adjustment to the Conversion Price under Section 10.08(a), (1) in the case of any such rights or warrants which shall
all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Price shall be readjusted upon such final redemption or repurchase to give effect to such distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder of Common Stock with respect to such rights or
warrants (assuming such holder 

33

 

had
retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase, and (2) in the case of any such rights or warrants all of which shall
have expired without exercise by any holder thereof, the Conversion Price shall be readjusted as if such issuance had not occurred. 

        Section 10.20.    General Considerations.    Whenever successive adjustments to the Conversion Price are called
for pursuant to this Article 10, such adjustments shall be made to the Current Market Price as may be necessary or appropriate to effectuate the intent of this Article and to avoid unjust or
inequitable results as determined in good faith by the Board of Directors. 

 
 

ARTICLE 11
  MISCELLANEOUS    

        Section 11.01.    Conflict with TIA.    If any provision hereof limits, qualifies or conflicts with a provision
of the TIA that is required under the TIA to be a part of and govern this Indenture, the latter provision shall control. If any provision of this Indenture modifies or excludes any provision of the
TIA that may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or excluded, as the case may be. 

        Section 11.02.    Notices.    Any request, demand, authorization, notice, waiver, consent or communication
shall be in writing and delivered in person or mailed by first class mail, postage prepaid, addressed as follows or transmitted by facsimile transmission (confirmed by overnight courier) to the
following facsimile numbers: 

        if
to the Company: 

Silicon
Graphics, Inc.

2011 North Shoreline Boulevard

P.O. Box 7311

Mountain View, California 94309-7311

Attn: Director, Corporate Legal Services

Telephone Number: (415) 960-1980

Facsimile Number:    (415) 969-6289 

        if
to the Trustee: 

State
Street Bank and Trust Company of California, N.A

725 South Figueroa Street

Suite 3100

Los Angeles, California 90017

Attention: Corporate Trust Department

Telephone Number: (213) 362-7369

Telefax Number:    (213) 362-7357 

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

        Any
notice or communication given to a Securityholder shall be mailed to the Securityholder, by first class mail, postage prepaid, at the Securityholder's address as it appears on the
registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. 

        Failure
to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not received by the addressee. 

34

 

        If
the Company mails a notice or communication to the Securityholders, it shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion Agent or co-registrar. 

        Section 11.03.    Communication by Holders with other Holders.    Securityholders may communicate pursuant to
TIA Section 312(b) with other Securityholders with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar, the Paying Agent, the Conversion
Agent and anyone else shall have the protection of TIA Section 312(c). 

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

        (1)   an
Officers' Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action
have been complied with; and 

        (2)   an
Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with. 

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

        (1)   a
statement that each person making such Officers' Certificate or Opinion of Counsel has read such covenant or condition; 

        (2)   a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such Officers' Certificate or Opinion
of Counsel are based; 

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

        (4)   a
statement that, in the opinion of such person, such covenant or condition has been complied with. 

        Section 11.06.    Separability Clause.    In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

        Section 11.07.    Rules by Trustee, Paying Agent, Conversion Agent and Registrar.    The Trustee may make
reasonable rules for action by or a meeting of Securityholders. The Registrar, Conversion Agent and the Paying Agent may make reasonable rules for their functions. 

        Section 11.08.    Legal Holidays.    A "Legal Holiday" is any day other than a Business Day. If any specified
date (including a date for giving notice) is a Legal Holiday, the action shall be taken on the next succeeding day that is not a Legal Holiday, and, to the extent applicable, no interest, if any,
shall accrue for the intervening period. 

        Section 11.09.    Governing Law.    THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS INDENTURE AND THE
SECURITIES. 

        Section 11.10.    No Recourse Against Others.    A director, officer, employee or stockholder, as such, of the
Company shall not have any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Securityholder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Securities. 

35

 

        Section 11.11.    Successors.    All agreements of the Company in this Indenture and the Securities shall bind
its successor. All agreements of the Trustee in this Indenture shall bind its successor. 

        Section 11.12.    Multiple Originals.    The parties may sign any number of copies of this Indenture. Each
signed copy shall be an original, but all of them together represent the same agreement. One signed copy is enough to prove this Indenture. 

36

        IN
WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Indenture on behalf of the respective parties hereto as of the date first written above. 

	 	 	SILICON GRAPHICS, INC.
	

 	

 	

By:	

 	

/s/ William Kelly
 Title:
	

Attest:	

 	

 	

 	

 
	

/s/ Sandra Escher
 Title:	

 	

 	

 	

 
	

[SEAL]	
 	

 	
 	

 
	

 	
 	

STATE STREET BANK AND TRUST

    COMPANY OF CALIFORNIA, N.A.
	

 	

 	

By:	

 	

    
 Title:    Assistant Vice President

        IN
WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Indenture on behalf of the respective parties hereto as of the date first written above. 

	 	 	SILICON GRAPHICS, INC.
	

 	

 	

By:	

 	

    
 Title:
	

Attest:	

 	

 	

 	

 
	

    
 Title:	

 	

 	

 	

 
	

[SEAL]	
 	

 	
 	

 
	

 	
 	

STATE STREET BANK AND TRUST

    COMPANY OF CALIFORNIA, N.A.
	

 	

 	

By:	

 	

    Illegible
 Title:    Assistant Vice President

  

 
 

EXHIBIT A
  
  [FORM OF FACE OF SECURITY]    

[FORM
OF LEGEND FOR GLOBAL SECURITY: 

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

SILICON GRAPHICS, INC.

51/4% SENIOR CONVERTIBLE NOTE DUE 2004 

	No.	 	$
	

 	
 	

CUSIP

        Silicon
Graphics, Inc., a Delaware corporation, promises to pay to                          or registered assigns, the
principal amount of
                         Dollars ($            ) on
September 1, 2004 and to pay interest thereon from September 4, 1997 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on March 1 and September 1 in each year, commencing March 1, 1998, at the rate of
51/4% per annum until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will,
as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest, which shall be the February 15 or August 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange or other
market on which the Securities may be listed, and upon such notice as may be required by such exchange or market, all as more fully provided in said Indenture. Payment of the principal of (and
premium, if any) and interest on this Security will be made at the Corporate Trust Office or the office or agency of the Company maintained for that purposes in the Borough of Manhattan, The City of
New York, New York in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of
the Company payment of interest may be made by check mailed to the address o f or by wire transfer to the account of, the Person entitled thereto as such address shall appear in the Security Register. 

        Additional
provisions of this Security are set forth on the other side of this Security. 

A-1

 

        IN
WITNESS WHEREOF, Silicon Graphics, Inc. has caused this instrument to be duly executed under its corporate seal. 

	 	 	 	 	SILICON GRAPHICS, INC.
	

 	

 	

 	

 	

By:	

 	

    
 Title:
	

[SEAL]	

 	

 	

 	

 
	

Attest:	
 	

    
	
 	

 	
 	

 
	

Dated:	
 	

 	
 	

 
	

TRUSTEE'S CERTIFICATE OF AUTHENTICATION	
 	

 	
 	

 
	

This is one of the Securities referred to in the within mentioned Indenture.	
 	

 	
 	

 
	

STATE STREET BANK AND TRUST COMPANY

    OF CALIFORNIA, N.A as Trustee,	
 	

 	
 	

 
	

By:	
 	

    
 Authorized Signatory	
 	

 	
 	

 

A-2

 
 
 

[FORM OF REVERSE SIDE OF SECURITY]    

SILICON
GRAPHICS, INC.

51/4% SENIOR CONVERTIBLE NOTE DUE 2004 

1.     Interest  

        This Security shall bear interest at 51/4% per annum in the manner set forth in the Indenture and the face of this Security. In the event that
principal hereof or any portion of such principal is not paid when due (whether upon acceleration pursuant to Section 6.02 of the Indenture, upon the date set for payment of the Redemption
Price pursuant to paragraph 5 hereof, upon the date set for payment of a Fundamental Change Redemption Price pursuant to paragraph 6 hereof or upon the Stated Maturity of this Security),
then in each such case the overdue amount shall bear interest at the rate of 51/4% per annum, compounded semiannually (to the extent that the payment of such interest shall be legally
enforceable), which interest shall accrue from the date such overdue amount was due to the date payment of such amount, including interest thereon, has been made or duly provided for. All such
interest shall be payable on demand. 

2.     Method of Payment  

        Subject to the terms and conditions of the Indenture, the Company will make payments in respect of the Securities to the persons who are registered Holders of
Securities at the close of business on the Redemption Date, Fundamental Change Repurchase Date or Stated Maturity, as the case may be. Holders must surrender Securities to a Paying Agent to collect
such payments in respect of the Securities. The Company will pay cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts.
However, the Company may make such cash payments by check mailed to the address of, or by wire transfer to the account of, the person entitled to such payment. 

3.     Paying Agent, Conversion Agent and Registrar  

        Initially, State Street Bank and Trust Company of California, N.A., a national banking association (the "Trustee"), will act as Paying Agent, Conversion Agent and
Registrar. The Company may appoint and change any Paying Agent, Conversion Agent, Registrar or co-registrar without notice,
other than notice to the Trustee. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion Agent, Registrar or co-registrar. 

4.     Indenture  

        The Company issued the Securities under an Indenture dated as of September 1, 1997 (the "Indenture"), between the Company and the Trustee. Capitalized
terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and Securityholders are referred to the Indenture for a
statement of those terms. 

        The
Securities are general unsecured obligations of the Company limited to $234,609,000 aggregate principal amount (subject to Sections 2.02 and 2.07 of the Indenture). 

5.     Redemption at the Option of the Company  

        Prior to September 7, 2000, the Securities will not be redeemable at the option of the Company. Beginning on September 7, 2000, the Company may
redeem the Securities for cash as a whole at any time, or from time to time in part, upon not less than 30 days' nor more than 60 days' notice at the following prices (the "Redemption
Price") (expressed as percentages of the principal amount), together with accrued and unpaid interest to, but excluding, the Redemption Date, except that on or after 

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September 7,
2000 and prior to September 7, 2002, the Securities will not be redeemable at the option of the Company unless the Closing Price of the Common Stock shall have exceeded 140%
of the Conversion Price then in effect for 20 Trading Days within a period of 30 consecutive Trading Days ending within five Trading Days prior to the notice of redemption. 

        If
redeemed during the 12-month period beginning September 1 (beginning September 7, 2000 and ending on August 31, 2001, in the case of the first such
period): 

	Year
 
	 	Redemption Price

	2000	 	103.00%
	2001	 	102.25    
	2002	 	101.50    
	2003	 	100.75    

and
100% at September 1, 2004; provided that if such Redemption Date is an Interest Payment Date, then the interest payable on such date shall be paid to the Holder of the Security on the next
preceding Regular Record Date. No Securities may be redeemed by the Company if an Event of Default with respect to the payment of interest on the Securities has occurred and is continuing. 

        No
sinking fund is provided for the Securities. 

        Notice
of redemption at the option of the Company will be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of Securities to be
redeemed at the Holder's registered address. If money sufficient to pay the Redemption Price, together with accrued interest to, but excluding, the Redemption Date, of all Securities (or portions
thereof) to be redeemed on the Redemption Date is deposited with the Paying Agent prior to or on the Redemption Date, on and after such date interest ceases to accrue on such Securities or portions
thereof Securities in denominations larger than $1,000 of principal amount may be redeemed in part but only in multiples of $1,000 of principal amount. 

6.     Redemption at the Option of the Holder Upon a Fundamental Change  

        (a)   At
the option of the Holder and subject to the terms and conditions of the Indenture, the Company shall become obligated to redeem the Securities held by such Holder on
the date (the "Fundamental Change Repurchase Date") (or if such date is not a Business Day, the next succeeding Business Day) that is 45 days after the date of the Company's notice of such
Fundamental Change (as defined in the Indenture) occurring on or prior to September 1, 2004 at the following prices (expressed as percentages of the principal amount) in the event of a
Fundamental Change Repurchase Date occurring during the 12-month period beginning September 1: 

	Year
 
	 	Percentage
	 	Year
 
	 	Percentage

	1997	 	105.25%	 	2001	 	102.25%
	1998	 	104.50    	 	2002	 	101.50    
	1999	 	103.75    	 	2003	 	100.75    
	2000	 	103.00    	 	 	 	 

and
100% at September 1, 2004; provided in each case that if the Applicable Price (as defined in the Indenture) is less than the Reference Market Price (as defined in the Indenture), the
Company shall redeem such Securities at a price equal to the foregoing repayment price multiplied by the fraction obtained by dividing the Applicable Price by the Reference Market Price. In each case,
the Company shall also pay accrued interest, if any, on such Securities to, but excluding, the Fundamental Change Repurchase Date; provided that if such Fundamental Change Repurchase Date is an
Interest Payment Date, then the interest payable on such date shall be paid to the Holder of the Security on the next preceding Regular Record Date. Securities in denominations larger than $1,000 of
principal amount 

A-4

 

may
be redeemed in part in connection with a Fundamental Change, but only in multiples of $1,000 of principal amount. 

        (b)   Holders
have the right to withdraw any Fundamental Change Redemption Notice by delivering to the Paying Agent a written notice of withdrawal in accordance with the
provisions of the Indenture. 

        (c)   If
cash sufficient to pay the Fundamental Change Redemption Price, together with accrued interest to, but excluding, the Fundamental Change Repurchase Date, of all
Securities or portions thereof to be purchased as of the Fundamental Change Repurchase Date is deposited with the Paying Agent on or prior to the Fundamental Change Repurchase Date, interest ceases to
accrue on such Securities (or portions thereof) on and after the Fundamental Change Repurchase Date, and the Holder thereof shall have no other rights as such (other than the right to receive the
Fundamental Change Redemption Price, together with accrued interest to, but excluding, the Fundamental Change Repurchase Date, upon surrender of such Security). 

7.     Conversion  

        Subject to the next two succeeding sentences, a Holder of a Security may convert it into Common Stock of the Company at any time after issuance and before the
close of business on September 1, 2004. If the Security is called for redemption, the Holder may convert it at any time before the close of the last Trading Day prior to the Redemption Date. In
the event the Security is surrendered during the period from the close of business on any Regular Record Date next preceding any Interest Payment Date to the close of business on the Trading Day
immediately preceding the next succeeding Interest Payment Date (except in the case of Security to be redeemed within such period), such Securities must be accompanied by payment in New York Clearing
House funds or other funds acceptable to the Company of an amount equal to the interest payable on such Interest Payment Date on the principal amount of this Security then being converted. Subject to
the aforesaid requirement for payment and, in the case of a conversion after the Regular Record Date next preceding any Interest Payment Date and on or before such Interest Payment Date, to the right
of the Holder of this Security (or any Predecessor Security) of record at such Regular Record Date to receive an installment of interest payable on such Interest Payment Date (except in the case of
Securities whose Maturity is prior to such Interest Payment Date), no payment or adjustment is to be made on conversion for interest accrued hereon or for dividends on the Common Stock issued on
conversion. A Security in respect of which a
Holder has delivered a notice of exercise of the option to redeem such Security in the event of a Fundamental Change may be converted only if the notice of exercise is withdrawn in accordance with the
terms of the Indenture. 

        The
initial Conversion Price is $36.25 per share of Common Stock, subject to adjustment in certain events described in the Indenture. The Company will deliver cash or a check in lieu of
any fractional share of Common Stock. 

        To
convert a Security a Holder must (1) complete and manually sign the conversion notice on the back of the Security (or complete and manually sign a facsimile of such notice) and
deliver such notice to the Conversion Agent, (2) surrender the Security to a Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the Conversion
Agent, the Company or the Trustee and (4) pay any transfer or similar tax, if required. 

        A
Holder may convert a portion of a Security if the principal amount of such portion is $1,000 or a multiple of $1,000. No payment or adjustment will be made for dividends on the Common
Stock except as provided in the Indenture. 

        The
Conversion Price is subject to adjustment as provided in the Indenture. In addition, in the case of (i) any reclassification of the Common Stock, or (ii) a
consolidation or merger involving the 

A-5

 

Company
or a sale or conveyance to another corporation of the property and assets of the Company as an entirety (or substantially as an entirety), in each case as a result of which holders of Common
Stock shall be entitled to receive stock, securities, other property or assets (including cash) with respect to or in exchange for such Common Stock, as set forth in the Indenture, or upon certain
distributions described in the Indenture, the right to convert a Security into Common Stock may be changed; as set forth in the Indenture, into a right to convert it into securities, cash or other
assets of the Company or another person. 

8.     Conversion Arrangement on Call for Redemption  

        Any Securities called for redemption, unless surrendered for conversion before the close of business on the last Trading Day prior to the Redemption Date, may be
deemed to be purchased from the Holders of such Securities at an amount not less than the Redemption Price, together with accrued interest to, but excluding the Redemption Date, by one or more
investment bankers or other purchasers who may agree with the Company to purchase such Securities from the Holders, to convert them into Common Stock of the Company and to make payment for such
Securities to the Trustee in trust for such Holders. 

9.     Denominations; Transfer; Exchange  

        The Securities are in registered form, without coupons, in denominations of $1,000 of principal amount and multiples of $1,000. A Holder may transfer or exchange
Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required
by law or permitted by the Indenture. The Registrar need not transfer or exchange any Securities selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or any Securities in respect of which a Fundamental Change Redemption Notice has been given and not withdrawn (except, in the case of a Security to be purchased in part,
the portion of the Security not to be purchased) or any Securities for a period of 15 days before a selection of Securities to be redeemed. 

10.   Persons Deemed Owners  

        The registered Holder of this Security may be treated as the owner of this Security for all purposes. 

11.   Unclaimed Money or Securities  

        The Trustee and the Paying Agent shall return to the Company upon written request any money or securities held by them for the payment of any amount with respect
to the Securities that remains unclaimed for two years, provided, however, that the Trustee or such Paying Agent, before being required to make any such return, shall at the expense of the Company
cause to be published once in a newspaper of general circulation in The City of New York or mail to each such Holder notice that such money or securities remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication or mailing, any unclaimed money or securities then remaining will be returned to the Company. After
return to the Company, Holders entitled to the money or securities must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person. 

12.   Amendment; Waiver  

        Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended with the written consent of the Holders of at
least a majority in aggregate principal amount 

A-6

 

of
the Securities at the time outstanding and (ii) certain defaults or noncompliance with certain provisions may be waived with the written consent of the Holders of a majority in aggregate
principal amount of the Securities at the time outstanding. Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the Company and the Trustee may amend
the Indenture or the Securities to cure any ambiguity, defect or inconsistency, or to comply with Article 5 or Section 10.14 of the Indenture, to provide for uncertificated Securities in
addition to or in place of certificated Securities or to make any change that does not adversely affect the rights of any Securityholder or to comply with any requirement of the SEC in connection with
the qualification of the Indenture under the TIA. 

13.   Defaults and Remedies  

        Under the Indenture, Events of Default include (i) default in payment of the principal amount, Redemption Price or Fundamental Change Redemption Price, as
the case may be, in respect of the Securities when the same becomes due and payable; (ii) default for 30 days in the payment of any installment of interest on the Securities;
(iii) failure by the Company to comply with other agreements in the Indenture or the Securities, subject to notice and lapse of time; and (iv) certain events of bankruptcy or insolvency.
If an Event of Default occurs and is continuing, the Trustee, or the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding, may, declare all the Securities to
be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in the Securities being declared due and payable immediately upon the occurrence of
such Events of Default. 

        Securityholders
may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives
reasonable indemnity or security. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities at the time outstanding may direct the Trustee in its exercise
of any trust or power. The Trustee may withhold from Securityholders notice of any continuing Default (except a Default in payment of amounts specified in clause (i) or (ii) above) if it
determines that withholding notice is in their interests. 

14.   Trustee Dealings with the Company  

        The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or
its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 

15.   No Recourse Against Others  

        A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver
and release are part of the consideration for the issue of the Securities. 

16.   Authentication  

        This Security shall not be valid until an authorized officer of the Trustee manually signs the Trustee's Certificate of Authentication on the other side of this
Security. 

A-7

 

17.   Abbreviations  

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

18.   Governing Law  

        THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS SECURITY 

        The
Company will furnish to any Securityholder upon written request and without charge a copy of the Indenture which has in it the text of this Security in larger type. Requests may be
made to: 

Silicon
Graphics, Inc.

2011 North Shoreline Boulevard

P.O. Box 7311

Mountain View, California 94309-7311

Attn: Director, Corporate Legal Services 

A-8

 
 
 

[FORM OF CONVERSION NOTICE]    
    

CONVERSION NOTICE

To:
Silicon Graphics, Inc. 

        The
undersigned registered holder of this Security hereby irrevocably exercises the option to convert this Security, or portion hereof (which is $1,000 principal amount or a multiple
thereof) below designated, into shares of Common Stock of Silicon Graphics, Inc. in accordance with the terms of the Indenture referred to in this Security, and directs that the shares issuable
and deliverable upon such conversion, together with any check in payment for fractional shares and any Securities representing any unconverted principal amount hereof, be issued and delivered to the
registered holder hereof unless a different name has been indicated below. If shares or any portion of this Security not converted are to be issued in the name of a person other than the undersigned,
the undersigned will pay all transfer taxes payable with respect thereto. 

	

Dated:	
 	

    
	
 	

 
	

 	
 	

 	
 	

    

	

 	
 	

 	
 	

    
 Signature(s)

A-9

 

	Fill in for registration of shares if to be delivered, and Securities if to be issued other than to and in the name of the registered holder:	 	 
	

    
 (Name)	
 	

 
	

    
 (Street Address)	
 	

 
	

    
 (City, State and zip code)	
 	

 
	

Please print name and address	
 	

 
	

 	
 	

principal amount to be converted

(if less than all):
	

 	
 	

$            ,000
	

 	
 	

    
 Social Security or Other

Taxpayer Identification Number

A-10

 
 
 

[FORM OF OPTION TO ELECT REDEMPTION
  
  UPON A FUNDAMENTAL CHANGE]    
    

To:
Silicon Graphics, Inc. 

        The
undersigned registered holder of this Security hereby acknowledges receipt of a notice from Silicon Graphics, Inc. (the "Company") as to the occurrence of a Fundamental Change
with respect to the Company and requests and instructs the Company to redeem this Security, or the portion hereof (which is $1,000 principal amount or a multiple thereof) below designated, in
accordance with the terms of the Indenture referred to in this Security. 

	

Dated:	
 	

    
	
 	

 
	

 	
 	

 	
 	

    

	

 	
 	

 	
 	

    
 Signature(s)
	

 	
 	

 	
 	

principal amount to be redeemed

(if less than all):
	

 	
 	

 	
 	

$            ,000
	

 	
 	

 	
 	

    
 Social Security or Other

Taxpayer Identification Number

A-11

 
 
 

[FORM OF ASSIGNMENT]    
    

For
value received                          hereby sell(s), assign(s) and transfer(s) unto 

	    
 (Please insert social security or other taxpayer identification number of assignee.)

the
within Security and hereby irrevocably constitutes and appoints                          attorney to transfer the said
Security on the books of the Company, with full power of
substitution in the premises. 

	

Dated:	
 	

    
	
 	

 
	

 	
 	

 	
 	

    

	

 	
 	

 	
 	

    
 Signature(s)
	

 	
 	

 	
 	

Signature(s) must be guaranteed by a commercial bank or trust company or a member firm of a major stock exchange.
	

 	
 	

 	
 	

    
 Signature Guarantee

NOTICE:
The above signatures of the holder(s) hereof must correspond with the name as written upon the face of the Security in every particular without alteration or enlargement or any change
whatever. 

A-12

QuickLinks

Exhibit 4.3

INDENTURE

SILICON GRAPHICS, INC. Reconciliation and tie between Trust Indenture Act of 1939 and Indenture, dated as of September 1, 1997

TABLE OF CONTENTS1

ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE

ARTICLE 2 THE SECURITIES

ARTICLE 3 REDEMPTION

ARTICLE 4 COVENANTS

ARTICLE 5 SUCCESSOR CORPORATION

ARTICLE 6 DEFAULTS AND REMEDIES

ARTICLE 7 TRUSTEE

ARTICLE 8 DISCHARGE OF INDENTURE

ARTICLE 9 AMENDMENTS

ARTICLE 10 CONVERSION

ARTICLE 11 MISCELLANEOUS

EXHIBIT A [FORM OF FACE OF SECURITY]

[FORM OF REVERSE SIDE OF SECURITY]

[FORM OF CONVERSION NOTICE]

[FORM OF OPTION TO ELECT REDEMPTION UPON A FUNDAMENTAL CHANGE]

[FORM OF ASSIGNMENT]

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