Document:

Form of Subordinated Indenture

 EXHIBIT 4.12 
  
 FORM OF INDENTURE TO BE ENTERED INTO 
 BETWEEN 
 THE COMPANY AND A TRUSTEE TO BE NAMED 
  
 NUVELO, INC. 
  
 INDENTURE 
  
 Dated as of             , 2004 
  
 U.S. BANK NATIONAL ASSOCIATION 
  
 Trustee 
  
 Subordinated Debt Securities 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE

	ARTICLE 1     DEFINITIONS AND INCORPORATION BY REFERENCE	  	1
			
	 Section 1.1
	  	Definitions	  	1
			
	 Section 1.2
	  	Other Definitions	  	6
			
	 Section 1.3
	  	Incorporation by Reference of Trust Indenture Act	  	7
			
	 Section 1.4
	  	Rules of Construction	  	7
		
	ARTICLE 2     THE SECURITIES	  	8
			
	 Section 2.1
	  	Issuable in Series	  	8
			
	 Section 2.2
	  	Establishment of Terms of Series of Securities	  	8
			
	 Section 2.3
	  	Execution and Authentication	  	10
			
	 Section 2.4
	  	Registrar and Paying Agent	  	11
			
	 Section 2.5
	  	Paying Agent to Hold Money in Trust	  	12
			
	 Section 2.6
	  	Securityholder Lists	  	12
			
	 Section 2.7
	  	Transfer and Exchange	  	12
			
	 Section 2.8
	  	Mutilated, Destroyed, Lost and Stolen Securities	  	13
			
	 Section 2.9
	  	Outstanding Securities	  	13
			
	 Section 2.10
	  	Treasury Securities	  	14
			
	 Section 2.11
	  	Temporary Securities	  	14
			
	 Section 2.12
	  	Cancellation	  	14
			
	 Section 2.13
	  	Defaulted Interest	  	15
			
	 Section 2.14
	  	Global Securities	  	15
			
	 Section 2.15
	  	CUSIP Numbers	  	16
		
	ARTICLE 3     REDEMPTION	  	16
			
	 Section 3.1
	  	Notice to Trustee	  	16
			
	 Section 3.2
	  	Selection of Securities to be Redeemed	  	17
			
	 Section 3.3
	  	Notice of Redemption	  	17
			
	 Section 3.4
	  	Effect of Notice of Redemption	  	17
			
	 Section 3.5
	  	Deposit of Redemption Price	  	18
			
	 Section 3.6
	  	Securities Redeemed in Part	  	18
		
	ARTICLE 4     COVENANTS	  	18
			
	 Section 4.1
	  	Payment of Principal and Interest	  	18
			
	 Section 4.2
	  	SEC Reports	  	18
			
	 Section 4.3
	  	Compliance Certificate	  	18

  

 i. 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

			
	 Section 4.4
	  	Corporate Existence	  	19
			
	 Section 4.5
	  	Taxes	  	19
		
	ARTICLE 5     SUCCESSORS	  	19
			
	 Section 5.1
	  	When Company May Merge, Etc.	  	19
			
	 Section 5.2
	  	Successor Corporation Substituted	  	19
		
	ARTICLE 6     DEFAULTS AND REMEDIES	  	20
			
	 Section 6.1
	  	Events of Default	  	20
			
	 Section 6.2
	  	Acceleration of Maturity; Rescission and Annulment	  	21
			
	 Section 6.3
	  	Collection of Indebtedness and Suits for Enforcement by Trustee	  	22
			
	 Section 6.4
	  	Trustee May File Proofs of Claim	  	23
			
	 Section 6.5
	  	Trustee May Enforce Claims Without Possession of Securities	  	23
			
	 Section 6.6
	  	Application of Money Collected	  	24
			
	 Section 6.7
	  	Limitation on Suits	  	24
			
	 Section 6.8
	  	Unconditional Right of Holders to Receive Principal and Interest	  	25
			
	 Section 6.9
	  	Restoration of Rights and Remedies	  	25
			
	 Section 6.10
	  	Rights and Remedies Cumulative	  	25
			
	 Section 6.11
	  	Delay or Omission Not Waiver	  	25
			
	 Section 6.12
	  	Control by Holders	  	25
			
	 Section 6.13
	  	Waiver of Past Defaults	  	26
			
	 Section 6.14
	  	Undertaking for Costs	  	26
		
	ARTICLE 7     TRUSTEE	  	26
			
	 Section 7.1
	  	Duties of Trustee	  	26
			
	 Section 7.2
	  	Rights of Trustee	  	28
			
	 Section 7.3
	  	Individual Rights of Trustee	  	28
			
	 Section 7.4
	  	Trustee’s Disclaimer	  	29
			
	 Section 7.5
	  	Notice of Defaults	  	29
			
	 Section 7.6
	  	Reports by Trustee to Holders	  	29
			
	 Section 7.7
	  	Compensation and Indemnity	  	29
			
	 Section 7.8
	  	Replacement of Trustee	  	30

  

 ii. 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

			
	 Section 7.9
	  	Successor Trustee by Merger, etc.	  	31
			
	 Section 7.10
	  	Eligibility; Disqualification	  	31
			
	 Section 7.11
	  	Preferential Collection of Claims Against Company	  	31
		
	ARTICLE 8     SATISFACTION AND DISCHARGE; DEFEASANCE	  	31
			
	 Section 8.1
	  	Satisfaction and Discharge of Indenture	  	31
			
	 Section 8.2
	  	Application of Trust Funds; Indemnification	  	32
			
	 Section 8.3
	  	Legal Defeasance of Securities of any Series	  	33
			
	 Section 8.4
	  	Covenant Defeasance	  	34
			
	 Section 8.5
	  	Repayment to Company	  	36
			
	 Section 8.6
	  	Reinstatement	  	36
		
	ARTICLE 9     AMENDMENTS AND WAIVERS	  	36
			
	 Section 9.1
	  	Without Consent of Holders	  	36
			
	 Section 9.2
	  	With Consent of Holders	  	37
			
	 Section 9.3
	  	Limitations	  	37
			
	 Section 9.4
	  	Compliance with Trust Indenture Act	  	38
			
	 Section 9.5
	  	Revocation and Effect of Consents	  	38
			
	 Section 9.6
	  	Notation on or Exchange of Securities	  	38
			
	 Section 9.7
	  	Trustee Protected	  	38
		
	ARTICLE 10     MISCELLANEOUS	  	39
			
	 Section 10.1
	  	Trust Indenture Act Controls	  	39
			
	 Section 10.2
	  	Notices	  	39
			
	 Section 10.3
	  	Communication by Holders with Other Holders	  	40
			
	 Section 10.4
	  	Certificate and Opinion as to Conditions Precedent	  	40
			
	 Section 10.5
	  	Statements Required in Certificate or Opinion	  	40
			
	 Section 10.6
	  	Rules by Trustee and Agents	  	40
			
	 Section 10.7
	  	Legal Holidays	  	41
			
	 Section 10.8
	  	No Recourse Against Others	  	41
			
	 Section 10.9
	  	Counterparts	  	41
			
	 Section 10.10
	  	Governing Laws	  	41
			
	 Section 10.11
	  	No Adverse Interpretation of Other Agreements	  	41

  

 iii. 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

			
	 Section 10.12
	  	Successors	  	41
			
	 Section 10.13
	  	Severability	  	41
			
	 Section 10.14
	  	Table of Contents, Headings, Etc.	  	42
			
	 Section 10.15
	  	Securities in a Foreign Currency or in ECU	  	42
			
	 Section 10.16
	  	Judgment Currency	  	42
		
	ARTICLE 11     SINKING FUNDS	  	43
			
	 Section 11.1
	  	Applicability of Article	  	43
			
	 Section 11.2
	  	Satisfaction of Sinking Fund Payments with Securities	  	43
			
	 Section 11.3
	  	Redemption of Securities for Sinking Fund	  	44
		
	ARTICLE 12     SUBORDINATION OF SECURITIES	  	44
			
	 Section 12.1
	  	Agreement of Subordination	  	44
			
	 Section 12.2
	  	Payments to Holders	  	45
			
	 Section 12.3
	  	Subrogation of Securities	  	47
			
	 Section 12.4
	  	Authorization to Effect Subordination	  	48
			
	 Section 12.5
	  	Notice to Trustee	  	48
			
	 Section 12.6
	  	Trustee’s Relation to Senior Indebtedness	  	49
			
	 Section 12.7
	  	No Impairment of Subordination	  	50
			
	 Section 12.8
	  	Article Applicable to Paying Agents	  	50
			
	 Section 12.9
	  	Senior Indebtedness Entitled to Rely	  	50

  

 iv. 

 NUVELO, INC. 
  
 Reconciliation and tie between Trust Indenture Act of 1939 and 
 Indenture, dated as of             , 2004 
  

			
	 Section 310(a) (1)
	  	7.10
	 (a) (2)
	  	7.10
	 (a) (3)
	  	Not Applicable
	 (a) (4)
	  	Not Applicable
	 (a) (5)
	  	7.10
	 (b)
	  	7.10
	 Section 311(a)
	  	7.11
	 (b)
	  	7.11
	 (c)
	  	Not Applicable
	 Section 312(a)
	  	2.6
	 (b)
	  	10.3
	 (c)
	  	10.3
	 Section 313(a)
	  	7.6
	 (b) (1)
	  	7.6
	 (b) (2)
	  	7.6
	 (c) (1)
	  	7.6
	 (d)
	  	7.6
	 Section 314(a)
	  	4.2, 10.5
	 (b)
	  	Not Applicable
	 (c) (1)
	  	10.4
	 (c) (2)
	  	10.4
	 (c) (3)
	  	Not Applicable
	 (d)
	  	Not Applicable
	 (e)
	  	10.5
	 (f)
	  	Not Applicable
	 Section 315(a)
	  	7.1
	 (b)
	  	7.5
	 (c)
	  	7.1
	 (d)
	  	7.1
	 (e)
	  	6.14
	 Section 316(a)
	  	2.10
	 (a) (1)(a)
	  	6.12
	 (a) (1)(b)
	  	6.13
	 (b)
	  	6.8
	 Section 317(a)(1)
	  	6.3
	 (a)(2)
	  	6.4
	 (b)
	  	2.5
	 Section 318(a)
	  	10.1

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

 v. 

 Indenture dated as of
                    , 2004 between Nuvelo, Inc., a Delaware corporation (“Company”), and U.S. Bank National Association, a national
banking association (“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 Securities issued under this Indenture. 
  
 ARTICLE 1 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 Section 1.1 Definitions. 
  
 “Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein,
to be paid by the Company in respect of certain taxes imposed on Holders specified therein and which are owing to such Holders. 
  
 “Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any
person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise. 
  
 “Agent” means any Registrar, Paying Agent, Service Agent or
authenticating agent. 
  
 “Authorized Newspaper” means a
newspaper in an official language of the country of publication customarily published at least once a day for at least five days in each calendar week and of general circulation in the place in connection with which the term is used. If it shall be
impractical to make any publication of any notice required hereby in an Authorized Newspaper, any publication or other notice in lieu thereof that is made or given by the Trustee shall constitute a sufficient publication of such notice. 

 
 “Bearer” means anyone in possession from time to time of a
Bearer Security. 
  
 “Bearer Security” means any
Security, including any interest coupon appertaining thereto, that does not provide for the identification of the Holder thereof. 
  
 “Board of Directors” means the Board of Directors of the Company or any duly authorized committee thereof. 
  
 “Board Resolution” means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate, and delivered to the Trustee.

  

 1. 

 “Business Day” means, unless otherwise provided by Board Resolution, Officers’ Certificate
or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal holiday in The City of New York or the City of San Francisco on which banking institutions are authorized or required by law, regulation or
executive order to close. 
  
 “Company” means the party
named as such above until a successor replaces it and thereafter means the successor. 
  
 “Company Order” means a written order signed in the name of the Company by two Officers, one of whom must be the Company’s chief executive officer, chief financial officer or principal accounting
officer. 
  
 “Company Request” means a written request
signed in the name of the Company by its Chairman of the Board, a President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 
  
 “Corporate Trust Office” means the office of the Trustee at which
at any particular time its corporate trust business shall be principally administered. 
  
 “Default” means any event which is, or after notice or passage of time would be, an Event of Default. 
  
 “Depository” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global
Securities, the person designated as Depository for such Series by the Company, which Depository shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such person, “Depository” as used with
respect to the Securities of any Series shall mean the Depository with respect to the Securities of such Series. 
  
 “Designated Senior Indebtedness” means any of our senior indebtedness that expressly provides that it is “designated senior
indebtedness” for purposes of this Indenture (provided that the instrument, agreement or other document creating or evidencing such Senior Indebtedness may place limitations and conditions on the right of such Senior Indebtedness to exercise
the rights of Designated Senior Indebtedness). 
  
 “Discount
Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2. 
  
 “Dollars” means the currency of The United States of America.

  
 “ECU” means the European Currency Unit as determined
by the Commission of the European Union. 
  

 2. 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Foreign Currency” means any currency or currency unit issued by a
government other than the government of The United States of America. 
  
 “Foreign Government Obligations” means with respect to Securities of any Series that are denominated in a Foreign Currency, (i) direct obligations of the government that issued or caused to be issued such currency for the payment
of which obligations its full faith and credit is pledged or (ii) obligations of a person controlled or supervised by or acting as an agency or instrumentality of such government the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by such government, which, in either case under clauses (i) or (ii), are not callable or redeemable at the option of the issuer thereof. 
  
 “Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form
established pursuant to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depository for such Series or its nominee, and registered in the name of such Depository or nominee. 
  
 “Holder” or “Securityholder” means a person in whose name
a Security is registered or the holder of a Bearer Security. 
  
 “indebtedness” means, with respect to any person, and without duplication, (a) all indebtedness, obligations and other liabilities (contingent or otherwise) of such person for borrowed money (including obligations of the Company
in respect of overdrafts, foreign exchange contracts, currency exchange agreements, interest rate protection agreements, and any loans or advances from banks, whether or not evidenced by notes or similar instruments) or evidenced by bonds,
debentures, notes or similar instruments (whether or not the recourse of the lender is to the whole of the assets of such person or to only a portion thereof) (other than any account payable or other accrued current liability or obligation incurred
in the ordinary course of business in connection with the obtaining of materials or services), (b) all reimbursement obligations and other liabilities (contingent or otherwise) of such person with respect to letters of credit, bank guarantees or
bankers’ acceptances, (c) all obligations and liabilities (contingent or otherwise) in respect of leases of such person required, in conformity with generally accepted accounting principles, to be accounted for as capitalized lease obligations
on the balance sheet of such person and all obligations and all other obligations and liabilities, contingent or otherwise, as lessee under leases for facility equipment (and related assets leased together with such equipment) and under any lease or
related document (including a purchase agreement, conditional sale or other title retention or synthetic lease agreement) in connection with the lease of real property or improvement thereon (or any personal property included as part of any such
lease) which provides that such Person is contractually obligated to purchase or cause a third party to purchase the leased property or pay an agreed upon residual value of the leased property, including the obligations under such lease or related
document to purchase or cause a third party to purchase such leased property (whether or not such lease transaction is characterized as an operating lease or a capitalized lease in accordance with GAAP) or pay an agreed upon residual value of the
leased property to the lessor; (d) all obligations of such person (contingent or otherwise) with respect to an interest rate or other swap, cap or collar agreement or other similar instrument or agreement or foreign currency hedge, exchange,
purchase or similar instrument or 

  

 3. 

 
agreement, (e) all direct or indirect guaranties or similar agreements by such person in respect of, and obligations or liabilities (contingent or otherwise)
of such person to purchase or otherwise acquire or otherwise assure a creditor against loss in respect of indebtedness, obligations or liabilities of another person of the kind described in clauses (a) through (d), (f) any indebtedness or other
obligations described in clauses (a) through (e) secured by any mortgage, pledge, lien or other encumbrance existing on property which is owned or held by such person, regardless of whether the indebtedness or other obligation secured thereby shall
have been assumed by such person and (g) any and all refinancings, replacements, deferrals, renewals, extensions and refundings of, or amendments, modifications or supplements to, any indebtedness, obligation or liability of the kind described in
clauses (a) through (f). 
  
 “Indenture” means this
Indenture as amended from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder. 
  
 “interest” with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity.

  
 “Maturity,” when used with respect to any Security
or installment of principal thereof, means the date on which the principal of such Security or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption, notice of option to elect repayment or otherwise. 
  
 “Officer” means the Chairman of the Board, any President, any Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company. 
  
 “Officers’ Certificate” means a certificate signed by two
Officers, one of whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer. 
  
 “Opinion of Counsel” means a written opinion of legal counsel who is acceptable to the Trustee. The counsel may be an employee of or counsel to
the Company. 
  
 “person” means any individual,
corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
  
 “principal” of a Security means the principal of the Security plus,
when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security. 
  
 “Representative” means the (a) indenture trustee or other trustee, agent or representative for any Senior Indebtedness or (b) with respect to
any Senior Indebtedness that does not have any such trustee, agent or other representative, (i) in the case of such Senior Indebtedness issued pursuant to an agreement providing for voting arrangements as among the holders or owners of such Senior
Indebtedness, any holder or owner of such Senior Indebtedness acting with the consent of the required persons necessary to bind such holders or owners of such Senior Indebtedness and (ii) in the case of all other such Senior Indebtedness, the holder
or owner of such Senior Indebtedness. 
  

 4. 

 “Responsible Officer” means any officer of the Trustee in its Corporate Trust Office and also
means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Securities” means the debentures, notes or other debt instruments
of the Company of any Series authenticated and delivered under this Indenture. 
  
 “Senior Indebtedness” means the principal, premium, if any, interest, including any interest accruing after bankruptcy, and rent or termination payment on or other amounts due on our current or future
Indebtedness, whether created, incurred, assumed, guaranteed or in effect guaranteed by us, including any deferrals, renewals, extensions, refundings, amendments, modifications or supplements to the above. However, Senior Indebtedness does not
include: (i) Indebtedness that expressly provides that it shall not be senior in right of payment to the Securities or expressly provides that it is on the same basis or junior to the Securities; (ii) our indebtedness to any of our majority-owned
subsidiaries; and (iii) the Securities. 
  
 “Series” or
“Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof. 
  
 “Stated Maturity” when used with respect to any Security or any installment of principal thereof or interest
thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable. 
  
 “Subsidiary” of any specified person means any corporation of which at least a majority of the outstanding stock
having by the terms thereof ordinary voting power for the election of directors of such corporation (irrespective of whether or not at the time stock of any other class or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency) is at the time directly or indirectly owned by such person, or by one or more other Subsidiaries, or by such person and one or more other Subsidiaries. 
  
 “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections
77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act
as so amended. 
  
 “Trustee” means the person named as
the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each person who is
then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series. 
  
 “U.S. Government Obligations” means securities which are (i) direct
obligations of The United States of America for the payment of which its full faith and credit is pledged or (ii) obligations of a person controlled or supervised by and acting as an agency or instrumentality of 

  

 5. 

 
The United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by The United States of America, and
which in the case of (i) and (ii) are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt. 
  
 Section 1.2 Other Definitions. 
  

			
	 TERM

	  	DEFINED IN
SECTION

	 “Bankruptcy Law”
	  	6.1
	 “Custodian”
	  	6.1
	 “Event of Default”
	  	6.1
	 “Journal”
	  	10.15
	 “Judgment Currency”
	  	10.16
	 “Legal Holiday”
	  	10.7
	 “mandatory sinking fund payment”
	  	11.1
	 “Market Exchange Rate”
	  	10.15
	 “New York Banking Day”
	  	10.16
	 “optional sinking fund payment”
	  	11.1
	 “Paying Agent”
	  	2.4
	 “Payment Blockage Notice”
	  	12.2
	 “Registrar”
	  	2.4
	 “Required Currency”
	  	10.16
	 “Service Agent”
	  	2.4
	 “successor person”
	  	5.1

  

 6. 

 Section 1.3 Incorporation by Reference of Trust Indenture Act. 
  
 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 and any successor obligor upon the Securities. 
  
 All
other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used herein as so defined. 
  
 Section 1.4 Rules of Construction. 
  
 Unless the context otherwise requires: 
  
 (a) a term has the meaning assigned to it;

  
 (b) an accounting term not otherwise
defined has the meaning assigned to it in accordance with generally accepted accounting principles; 
  
 (c) references to “generally accepted accounting principles” shall mean generally accepted accounting principles in
effect as of the time when and for the period as to which such accounting principles are to be applied; 
  
 (d) “or” is not exclusive; 
  
 (e) words in the singular include the plural, and in the plural include the singular; and 
  
 (f) provisions apply to successive events and
transactions. 
  

 7. 

 ARTICLE 2 
  

THE SECURITIES 
  
 Section 2.1 Issuable in Series. 
  
 The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in
one or more Series. All Securities of a Series shall be identical except as may be set forth in a Board Resolution, a supplemental indenture or an Officers’ Certificate detailing the adoption of the terms thereof pursuant to the authority
granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officers’ Certificate or supplemental indenture may provide for the method by which specified terms (such as interest
rate, maturity date, record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect of any matters, provided that all Series of Securities shall be equally and ratably entitled to the
benefits of the Indenture but all Securities issued hereunder shall be subordinate and junior in right of payment, to the extent and in the manner set forth in Article XII, to all Senior Indebtedness of the Company. 
  
 Section 2.2 Establishment of Terms of Series of Securities.

  
 At or prior to the issuance of any Securities within a
Series, the following shall be established (as to the Series generally, in the case of Subsection 2.2.1 and either as to such Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through 2.2.22) by a Board
Resolution, a supplemental indenture or an Officers’ Certificate pursuant to authority granted under a Board Resolution: 
  
 2.2.1 the title of the Series (which shall distinguish the Securities of that particular Series from the Securities of any other
Series); 
  
 2.2.2 the price or prices
(expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued; 
  
 2.2.3 any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under
this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6); 
  
 2.2.4 the date or dates on which the principal of the
Securities of the Series is payable; 
  
 2.2.5
the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the
Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such interest, if any, shall commence and be payable and any regular record date for the interest
payable on any interest payment date; 
  

 8. 

 2.2.6 the place or places where the principal of and interest, if any, on the
Securities of the Series shall be payable, or the method of such payment, if by wire transfer, mail or other means; 
  
 2.2.7 if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the
Securities of the Series may be redeemed, in whole or in part, at the option of the Company; 
  
 2.2.8 the obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or
analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part,
pursuant to such obligation; 
  
 2.2.9 the
dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations; 
  
 2.2.10 if other than denominations of $1,000 and any
integral multiple thereof, the denominations in which the Securities of the Series shall be issuable; 
  
 2.2.11 the forms of the Securities of the Series in bearer or fully registered form (and, if in fully registered form, whether the
Securities will be issuable as Global Securities); 
  
 2.2.12 if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;

  
 2.2.13 the currency of denomination of
the Securities of the Series, which may be Dollars or any Foreign Currency, including, but not limited to, the ECU, and if such currency of denomination is a composite currency other than the ECU, the agency or organization, if any, responsible for
overseeing such composite currency; 
  
 2.2.14
the designation of the currency, currencies or currency units in which payment of the principal of and interest, if any, on the Securities of the Series will be made; 
  
 2.2.15 if payments of principal of or interest, if any, on the Securities of the Series are to be
made in one or more currencies or currency units other than that or those in which such Securities are denominated, the manner in which the exchange rate with respect to such payments will be determined; 
  
 2.2.16 the manner in which the amounts of payment of
principal of or interest, if any, on the Securities of the Series will be determined, if such amounts may be determined by reference to an index based on a currency or currencies or by reference to a commodity, commodity index, stock exchange index
or financial index; 
  
 2.2.17 the
provisions, if any, relating to any security provided for the Securities of the Series; 
  

 9. 

 2.2.18 if the holders of Securities of the Series may convert or exchange the
Securities into or for securities of the Issuer or of other entities or other property, the period or periods within which, the rate or rates at which and the terms and conditions upon which Securities of the Series may be converted or exchanged, in
whole or in part; 
  
 2.2.19 any addition
to or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section
6.2; 
  
 2.2.20 any addition to or change
in the covenants set forth in Articles IV or V which applies to Securities of the Series; 
  
 2.2.21 any other terms of the Securities of the Series (which terms shall not be inconsistent with the provisions of this
Indenture, except as permitted by Section 9.1, but which may modify or delete any provision of this Indenture insofar as it applies to such Series); and 
  
 2.2.22 any depositories, interest rate calculation agents, exchange rate calculation agents or other agents with respect to
Securities of such Series if other than those appointed herein. 
  
 All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture or
Officers’ Certificate referred to above, and the authorized principal amount of any Series may not be increased to provide for issuances of additional Securities of such Series, unless otherwise provided in such Board Resolution, supplemental
indenture or Officers’ Certificate. 
  
 Section 2.3
Execution and Authentication. 
  
 Two Officers shall sign the
Securities for the Company by manual or facsimile signature. 
  
 If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid. 
  
 A Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. The
signature shall be conclusive evidence that the Security has been authenticated under this Indenture. 
  
 The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of a Company Order. Such Company Order may authorize authentication and delivery pursuant to oral or electronic instructions from the Company or its duly
authorized agent or agents, which oral instructions shall be promptly confirmed in writing. Each Security shall be dated the date of its authentication unless otherwise provided by a Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate. 
  
 The aggregate principal amount of
Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board 

  

 10. 

 
Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section 2.2, except as provided in Section 2.8. 
  
 Prior to the issuance of Securities of any Series, the Trustee shall have
received and (subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officers’ Certificate establishing the form of the Securities of that Series or of Securities within that
Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officers’ Certificate complying with Section 10.4, and (c) an Opinion of Counsel complying with Section 10.4. 
  
 The Trustee shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not lawfully be taken; or (b) if the Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of
directors and/or vice-presidents shall determine that such action would expose the Trustee to personal liability to Holders of any then outstanding Series of Securities. 
  
 The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating
agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the
Company or an Affiliate. 
  
 Section 2.4 Registrar and Paying
Agent. 
  
 The Company shall maintain, with respect to each
Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.2, an office or agency where Securities of such Series may be presented or surrendered for payment (“Paying Agent”), where Securities
of such Series may be surrendered for registration of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served (“Service
Agent”). The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange. The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or
address, of each Registrar, Paying Agent or Service Agent. If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent or shall fail to furnish the Trustee with the name and address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.

  
 The Company may also from time to time designate one or more
co-registrars, additional paying agents or additional service agents 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 obligations to
maintain a Registrar, Paying Agent and Service Agent in each place so specified pursuant to Section 2.2 for Securities of any Series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission
and of any change in the name or address of any such co-registrar, additional paying agent or 

  

 11. 

 
additional service agent. The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent;
and the term “Service Agent” includes any additional service agent. 
  
 The Company hereby appoints the Trustee the initial Registrar, Paying Agent and Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be, is appointed prior to the time
Securities of that Series are first issued. 
  
 Section 2.5
Paying Agent to Hold Money in Trust. 
  
 The Company shall
require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of
principal of or interest on the Series of Securities, and will notify the Trustee of any default by the Company in making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the
Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money. If
the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent. 
  
 Section 2.6 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 of each Series of Securities and shall otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at
least ten days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each
Series of Securities. 
  
 Section 2.7 Transfer and Exchange.

  
 Where Securities of a Series are presented to the
Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such
transactions are met. To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable
upon exchanges pursuant to Sections 2.11, 3.6 or 9.6). 
  
 Neither
the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business fifteen days immediately preceding the mailing of a notice of redemption
of Securities of that Series selected for redemption and ending at the close of business on the day of such mailing, or 

  

 12. 

 
(b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part. 
  
 Section 2.8 Mutilated, Destroyed, Lost and Stolen Securities. 
  
 If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a
new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 
  
 If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of 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 request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a
number not contemporaneously outstanding. 
  
 In case any such
mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security. 
  
 Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
  
 Every new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall
constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that Series duly issued hereunder. 
  
 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

  
 Section 2.9 Outstanding Securities. 
  
 The 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, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not
outstanding. 
  

 13. 

 If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the Trustee receives
proof satisfactory to it that the replaced Security is held by a bona fide purchaser. 
  
 If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after
that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue. 
  
 A Security does not cease to be outstanding because the Company or an Affiliate holds the Security. 
  
 In determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the
principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2. 
  
 Section 2.10 Treasury Securities. 
  
 In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request,
demand, authorization, direction, notice, consent or waiver Securities of a Series owned by the Company or an Affiliate shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such
request, demand, authorization, direction, notice, consent or waiver only Securities of a Series that the Trustee knows are so owned shall be so disregarded. 
  
 Section 2.11 Temporary Securities. 
  
 Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order.
Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee upon
request shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities. Until so exchanged, temporary securities shall have the same rights under this Indenture as the definitive Securities.

  
 Section 2.12 Cancellation. 
  
 The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all Securities surrendered for transfer, exchange, payment,
replacement or cancellation and shall destroy such canceled Securities (subject to the record retention requirement of the Exchange Act) and deliver a certificate of such destruction to the Company, unless the Company otherwise directs. The Company
may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation. 
  

 14. 

 Section 2.13 Defaulted Interest. 
  
 If the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to
the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date. The Company shall fix the record date and payment date. At least 30 days before
the record date, the Company shall mail to the Trustee and to each Securityholder of the Series a notice that states the record date, the payment date and the amount of interest to be paid. The Company may pay defaulted interest in any other lawful
manner. 
  
 Section 2.14 Global Securities. 
  
 2.14.1 Terms of Securities. A Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depository for such Global
Security or Securities. 
  
 2.14.2
Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.7 of the Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.7 of the Indenture for Securities
registered in the names of Holders other than the Depository for such Security or its nominee only if (i) such Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global Security or if at any time such
Depository ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depository within 90 days of such event, (ii) the Company executes and delivers to the Trustee an
Officers’ Certificate to the effect that such Global Security shall be so exchangeable or (iii) an Event of Default with respect to the Securities represented by such Global Security shall have happened and be continuing. Any Global Security
that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depository shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security
with like tenor and terms. 
  
 Except as provided
in this Section 2.14.2, a Global Security may not be transferred except as a whole by the Depository with respect to such Global Security to a nominee of such Depository, by a nominee of such Depository to such Depository or another nominee of such
Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository. 
  
 2.14.3 Legend. Unless otherwise provided pursuant to Section 2.2, any Global Security issued hereunder shall bear a legend
in substantially the following form: 
  
 “This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depository or a nominee of the Depository. This Security is exchangeable for Securities registered in
the name of a person other than the Depository or its nominee only in the limited circumstances described in the Indenture, and may not be transferred except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository
to the Depository or another nominee of the Depository or by the 

  

 15. 

 
Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.” 
  
 2.14.4 Acts of Holders. The Depository, as a
Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture. 
  
 2.14.5 Payments. Notwithstanding the other
provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the principal of, premium, if any, and interest, if any, on any Global Security shall be made to the Holder thereof. 
  
 2.14.6 Consents, Declaration and Directions.
Except as provided in Section 2.14.5, the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as shall be specified in a written
statement of the Depositary with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture. 
  
 Section 2.15 CUSIP Numbers. 
  
 The Company in issuing the Securities may use “CUSIP” numbers (if
then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers. 
  
 ARTICLE 3 
  
 REDEMPTION 
  
 Section 3.1 Notice to Trustee. 
  
 The Company may, with respect to any Series of Securities, reserve the right
to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities. If a Series of
Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of the redemption date and
the principal amount of Series of Securities to be redeemed. The Company shall give the notice at least 45 days before the redemption date (or such shorter notice as may be acceptable to the Trustee). 
  

 16. 

 Section 3.2 Selection of Securities to be Redeemed. 
  
 Unless otherwise indicated for a particular Series by a Board Resolution, a
supplemental indenture or an Officers’ Certificate, if less than all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that the Trustee deems fair and appropriate.
The Trustee shall make the selection from Securities of the Series outstanding not previously called for redemption. The Trustee may select for redemption portions of the principal of Securities of the Series that have denominations larger than
$1,000. Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations pursuant to Section 2.2.10, the minimum
principal denomination for each Series and integral multiples thereof. Provisions of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series called for redemption. 
  
 Section 3.3 Notice of Redemption. 
  
 Unless otherwise indicated for a particular Series by Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate, at least 30 days but not more than 90 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder whose Securities are to be redeemed
and if any Bearer Securities are outstanding, publish on one occasion a notice in an Authorized Newspaper. 
  
 The notice shall identify the Securities of the Series to be redeemed and shall state: 
  
 (a) the redemption date; 
  
 (b) the redemption price; 
  
 (c) the name and address of the Paying Agent; 
  
 (d) that Securities of the Series called for
redemption must be surrendered to the Paying Agent to collect the redemption price; 
  
 (e) that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date; and

  
 (f) any other information as may be
required by the terms of the particular Series or the Securities of a Series being redeemed. 
  
 At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense. 
  
 Section 3.4 Effect of Notice of Redemption. 
  
 Once notice of redemption is mailed or published as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price. A notice of redemption may not be conditional. Upon surrender to the Paying 

  

 17. 

 
Agent, such Securities shall be paid at the redemption price plus accrued interest to the redemption date. 
  
 Section 3.5 Deposit of Redemption Price. 
  
 On or before the redemption date, the Company shall deposit with the Paying
Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date. 
  
 Section 3.6 Securities Redeemed in Part. 
  
 Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same
maturity equal in principal amount to the unredeemed portion of the Security surrendered. 
  
 ARTICLE 4 
  
 COVENANTS

  
 Section 4.1 Payment of Principal and Interest.

  
 The Company covenants and agrees for the benefit of the
Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture. 
  
 Section 4.2 SEC Reports. 
  
 The Company shall deliver to the Trustee after it files them with the SEC
copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the 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. The Company also shall comply with the other provisions of TIA Section 314(a). 
  
 Section 4.3 Compliance Certificate. 
  
 The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, an Officers’ Certificate stating that a
review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture
and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he may have
knowledge). 
  
 The Company will, so long as any of the Securities
are outstanding, deliver to the Trustee, forthwith upon becoming aware of any Default or Event of Default, an Officers’ 

  

 18. 

 
Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto. 
  
 Section 4.4 Corporate Existence. 
  
 Subject to Article V, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence and the rights (charter and statutory), licenses and franchises of the Company; provided, however, that the Company shall not be required to preserve any such right,
license or franchise, if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any
material respect to the Holders. 
  
 Section 4.5 Taxes.

  
 The Company shall pay prior to delinquency all taxes,
assessments and governmental levies, except as contested in good faith and by appropriate proceedings. 
  
 ARTICLE 5 
  
 SUCCESSORS 
  
 Section 5.1 When Company May
Merge, Etc. 
  
 The Company shall not consolidate with or
merge into, or convey, transfer or lease all or substantially all of its properties and assets to, any person (a “successor person”), and may not permit any person to merge into, or convey, transfer or lease its properties and assets
substantially as an entirety to, the Company, unless: 
  
 (a) the successor person (if any) is a corporation, partnership, trust or other entity organized and validly existing under the laws of any U.S. domestic jurisdiction and expressly assumes the Company’s obligations on the
Securities and under this Indenture and 
  
 (b) immediately after giving effect to the transaction, no Default or Event of Default, shall have occurred and be continuing. 
  
 The Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officers’ Certificate to the foregoing effect and
an Opinion of Counsel stating that the proposed transaction and such supplemental indenture comply with this Indenture. 
  
 Section 5.2 Successor Corporation Substituted. 
  
 Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in
accordance with Section 5.1, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other disposition 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 person has been named as the Company herein; 

  

 19. 

 
provided, however, that the predecessor Company in the case of a sale, lease, conveyance or other disposition shall not be released from the obligation to
pay the principal of and interest, if any, on the Securities. 
  
 ARTICLE 6 
  
 DEFAULTS AND REMEDIES

  
 Section 6.1 Events of Default. 
  
 “Event of Default,” wherever used herein with respect to
Securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental indenture or Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

  
 (a) default in the payment of any
interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of 90 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to
the expiration of such period of 90 days); or 
  
 (b) default in the payment of the principal of any Security of that Series at its Maturity; or 
  
 (c) default in the deposit of any sinking fund payment, when and as due in respect of any Security of that Series; or 

 
 (d) default in the performance or breach of any
covenant or warranty of the Company in this Indenture (other than a covenant or warranty that has been included in this Indenture solely for the benefit of Series of Securities other than that Series), which default continues uncured for a period of
90 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Securities of that Series a written notice
specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or 
  
 (e) the Company pursuant to or within the meaning of any Bankruptcy Law: 
  
 (i) commences a voluntary case, 
  
 (ii) consents to the entry of an order for relief
against it in an involuntary case, 
  
 (iii)
consents to the appointment of a Custodian of it or for all or substantially all of its property, 
  
 (iv) makes a general assignment for the benefit of its creditors, or 
  

 20. 

 (v) generally is unable to pay its debts as the same become due; or 
  
 (f) a court of competent jurisdiction enters an order
or decree under any Bankruptcy Law that: 
  
 (i) is for relief against the Company in an involuntary case, 
  
 (ii) appoints a Custodian for the Company or for all or substantially all of its property, or 
  
 (iii) orders the liquidation of the Company and the order or decree remains unstayed and in effect for 90 days; or 
  
 (g) any other Event of Default provided with respect
to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, in accordance with Section 2.2.19. 
  
 The term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors.
The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 
  
 Section 6.2 Acceleration of Maturity; Rescission and Annulment. 
  
 If an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than
an Event of Default referred to in Section 6.1(e) or (f) ) then in every such case the Trustee or the Holders of not less than 25% in principal amount of the outstanding Securities of that Series may declare the principal amount (or, if any
Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable.
If an Event of Default specified in Section 6.1(e) or (f) shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder. 
  
 At any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of a majority in principal amount of the outstanding Securities of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: 
  
 (a) the Company has paid or deposited with the
Trustee a sum sufficient to pay 
  
 (i)
all overdue interest, if any, on all Securities of that Series, 
  

 21. 

 (ii) the principal of any Securities of that Series which have become due
otherwise than by such declaration of acceleration and interest thereon at the rate or rates prescribed therefor in such Securities, 
  
 (iii) to the extent that payment of such interest is lawful, interest upon any overdue principal and overdue interest at the rate
or rates prescribed therefor in such Securities, and 
  
 (iv) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and 
  
 (b) all Events of Default with respect to Securities of that Series, other than the non-payment of
the principal of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13. 
  
 No such rescission shall affect any subsequent Default or impair any right consequent thereon. 
  
 Section 6.3 Collection of Indebtedness and Suits for Enforcement by
Trustee. 
  
 The Company covenants that if 
  
 (a) default is made in the payment of any interest on
any Security when such interest becomes due and payable and such default continues for a period of 90 days, or 
  
 (b) default is made in the payment of principal of any Security at the Maturity thereof, or 
  
 (c) default is made in the deposit of any sinking
fund payment when and as due by the terms of a Security, then, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and
interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal or any overdue interest, at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  
 If the Company fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company
or any other obligor upon such Securities and collect the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated. 
  
 If an Event of Default with respect to any Securities of any Series occurs
and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the 

  

 22. 

 
rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce
any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 
  
 Section 6.4 Trustee May File Proofs of Claim. 
  
 In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue
principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise, 
  
 (a) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to
file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of
the Holders allowed in such judicial proceeding, and 
  
 (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 other 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 to 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 7.7. 
  
 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 claim of any Holder in any such proceeding. 

 
 Section 6.5 Trustee May Enforce Claims Without Possession of
Securities. 
  
 All rights of action and claims under this
Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered. 
  

 23. 

 Section 6.6 Application of Money Collected. 
  
 Any money collected by the Trustee pursuant to this Article shall be applied
in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid
and upon surrender thereof if fully paid: 
  
 First: To the
payment of all amounts due the Trustee under Section 7.7; and 
  
 Second: To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind,
according to the amounts due and payable on such Securities for principal and interest, respectively; and 
  
 Third: To the Company. 
  
 Section 6.7 Limitation on Suits. 
  
 No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder, unless 
  
 (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities
of that Series; 
  
 (b) the Holders of not
less than 25% in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
  
 (c) such Holder or Holders have offered to the
Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request; 
  
 (d) the Trustee for 90 days after its receipt of such notice, request and offer of indemnity has failed to institute any such
proceeding; and 
  
 (e) no direction
inconsistent with such written request has been given to the Trustee during such 90-day period by the Holders of a majority in principal amount of the outstanding Securities of that Series; it being understood and intended that no one or more of
such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders. 
  

 24. 

 Section 6.8 Unconditional Right of Holders to Receive Principal and Interest. 
  
 Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption,
on the redemption date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 
  

Section 6.9 Restoration of Rights and Remedies. 
  
 If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted. 
  
 Section 6.10 Rights and Remedies Cumulative. 
  
 Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities
in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy. 
  
 Section 6.11 Delay or Omission Not Waiver. 
  
 No
delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be. 
  
 Section 6.12 Control by Holders. 
  
 The Holders of a majority in principal amount of the outstanding Securities
of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series,
provided that 
  
 (a) such direction shall
not be in conflict with any rule of law or with this Indenture, 
  

 25. 

 (b) the Trustee may take any other action deemed proper by the Trustee which is
not inconsistent with such direction, and 
  
 (c) subject to the provisions of Section 6.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so
directed would involve the Trustee in personal liability. 
  
 Section 6.13 Waiver of Past Defaults. 
  
 Subject
to Section 6.2, the Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past Default hereunder with respect to such Series
and its consequences, except a Default in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority in principal amount of the outstanding Securities of any Series may rescind an
acceleration and its consequences, including any related payment default that resulted from such acceleration). Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured,
for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon. 
  
 Section 6.14 Undertaking for Costs. 
  
 All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Stated Maturity
or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date). 
  
 ARTICLE 7 
  
 TRUSTEE 
  
 Section 7.1 Duties of Trustee.

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

 26. 

 (b) Except during the continuance of an Event of Default: 
  
 (i) The Trustee need perform only those duties that
are specifically set forth in this Indenture and no others. 
  
 (ii) 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 Officers’ Certificates or
Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officers’ Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be
furnished to the Trustee, the Trustee shall examine such Officers’ Certificates and Opinions of Counsel 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: 
  
 (i) This paragraph does not limit the effect of paragraph (b) of this Section. 
  
 (ii) The Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts. 
  
 (iii) The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to
Securities of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series. 
  
 (d) Every provision of this Indenture that in any way relates to the Trustee is subject to paragraph (a), (b) and (c) of this
Section. 
  
 (e) The Trustee may refuse to
perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability or expense. 
  
 (f) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the
Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
  
 (g) No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in
the performance of any of its duties, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk is not reasonably assured to it.

  
 (h) The Paying Agent, the Registrar
and any authenticating agent shall be entitled to the protections and immunities as are set forth in paragraphs (a), (b) and (c) of this Section with respect to the Trustee. 
  

 27. 

 Section 7.2 Rights of Trustee. 
  
 (a) The Trustee may rely on and shall be protected in acting or refraining from acting upon 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 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 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. No Depository shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depository. 
  
 (d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it
believes to be authorized or within its rights or powers. 
  
 (e) The Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by
it hereunder in good faith and in reliance thereon. 
  
 (f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders of Securities unless such Holders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. 
  
 In addition, the Trustee shall not be deemed to have knowledge of any Default or Event of Default except (1) any Event of Default occurring pursuant to
Sections 6.1(a)(1), 6.1(a)(2), 6.1(a)(3) and 4.1 hereof or (2) any Default or Event of Default of which the Trustee shall have received written notification in the manner set forth in this Indenture or a Responsible Officer of the Trustee shall have
obtained actual knowledge. Delivery of reports, information and documents to the Trustee under Section 4.2 is for informational purposes only and the information and the Trustee’s receipt of the foregoing shall not constitute constructive
notice of any information contained therein, or determinable from information contained therein including the Company’s compliance with any of their covenants thereunder (as to which the Trustee is entitled to rely exclusively on an
Officers’ Certificate). 
  
 Section 7.3 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 an Affiliate with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. The Trustee is also subject to
Sections 7.10 and 7.11. 
  

 28. 

 Section 7.4 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, and it shall not be responsible for any statement in the Securities other than its authentication. 
  
 Section 7.5 Notice of Defaults. 
  
 If a Default or Event of Default occurs and is continuing with respect to
the Securities of any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series and, if any Bearer Securities are outstanding, publish on one occasion in an
Authorized Newspaper, notice of a Default or Event of Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or Event of Default. Except in the case of a Default or Event of
Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as its corporate trust committee or a committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of Securityholders of that Series. 
  
 Section 7.6 Reports by Trustee to Holders. 
  
 Within 60 days after May 15 in each year, the Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an
Authorized Newspaper, a brief report dated as of such May 15, in accordance with, and to the extent required under, TIA Section 313. 
  
 A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each stock exchange on which the
Securities of that Series are listed. The Company shall promptly notify the Trustee when Securities of any Series are listed on any stock exchange. 
  
 Section 7.7 Compensation and Indemnity. 
  
 The Company shall pay to the Trustee from time to time reasonable compensation for its services. The Trustee’s compensation shall not be limited by
any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it. Such expenses shall include the reasonable compensation and expenses of the
Trustee’s agents and counsel. 
  
 The Company shall indemnify
the Trustee (including the cost of defending itself) against any loss, liability or expense incurred by it except as set forth in the next paragraph in the performance of its duties under this Indenture as Trustee or Agent. The Trustee shall notify
the Company promptly of any claim for which it may seek indemnity. The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of
such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be 

  

 29. 

 
unreasonably withheld. This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee. 
  
 The Company need not reimburse any expense or indemnify against any loss or
liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through negligence or bad faith. 
  
 To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or
property held or collected by the Trustee, except that held in trust to pay principal and interest on particular Securities of that Series. 
  
 When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(e) or (f) occurs, the expenses and the
compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law. 
  
 Section 7.8 Replacement of Trustee. 
  
 A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section. 
  
 The Trustee may
resign with respect to the Securities of one or more Series by so notifying the Company. The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and
the Company. The Company may remove the Trustee with respect to Securities of one or more Series if: 
  
 (a) the Trustee fails to comply with Section 7.10; 
  
 (b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect
to the Trustee under any Bankruptcy Law; 
  
 (c) a Custodian or public officer takes charge of the Trustee or its property; or 
  
 (d) the Trustee 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 a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee
appointed by the Company. 
  
 If a successor Trustee with respect
to the Securities of any one or more Series does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least 10% in principal amount of the Securities of the 

  

 30. 

 
applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee. 
  
 If the Trustee with respect to the Securities of any one or more Series fails
to comply with Section 7.10, any Securityholder of the applicable Series may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 A successor Trustee shall deliver a written acceptance of its appointment to
the retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.7, 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 with respect to each Series of Securities for which it is acting as Trustee under this Indenture. A successor Trustee
shall mail a notice of its succession to each Securityholder of each such Series and, if any Bearer Securities are outstanding, publish such notice on one occasion in an Authorized Newspaper. Notwithstanding replacement of the Trustee pursuant to
this Section 7.8, the Company’s obligations under Section 7.7 hereof shall continue for the benefit of the retiring trustee with respect to expenses and liabilities incurred by it prior to such replacement. 
  
 Section 7.9 Successor Trustee by Merger, etc. 
  
 If the Trustee consolidates with, merges or converts into, or transfers all
or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee. 
  

Section 7.10 Eligibility; Disqualification. 
  
 This Indenture shall always have a Trustee who satisfies the requirements of TIA Section 310(a) (1), (2) and (5). The Trustee shall always have a combined
capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA Section 310(b). 
  
 Section 7.11 Preferential Collection of Claims Against Company. 
  
 The Trustee is subject to TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated. 
  
 ARTICLE 8 
  
 SATISFACTION AND DISCHARGE; DEFEASANCE 
  
 Section 8.1 Satisfaction and Discharge of Indenture. 
  
 This Indenture shall upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.1), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when 
  

 31. 

 (a) either 
  
 (i) all Securities theretofore authenticated and delivered (other than Securities that have been
destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or 
  
 (ii) all such Securities not theretofore delivered to the Trustee for cancellation 
  
 (1) have become due and payable, or 
  
 (2) will become due and payable at their Stated
Maturity within one year, or 
  
 (3) are
to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, or 
  
 (4) are deemed paid and discharged pursuant to
Section 8.3, as applicable; 
  
 and the Company, in the case of (1), (2) or (3)
above, has deposited or caused to be deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal and interest to the date of such deposit (in the case of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption date, as the case may be; 

 
 (b) the Company has paid or caused to be paid all
other sums payable hereunder by the Company; and 
  
 (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have
been complied with. 
  
 Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1, 8.2 and 8.5
shall survive. 
  
 Section 8.2 Application of Trust Funds;
Indemnification. 
  
 (a) Subject to
the provisions of Section 8.5, all money deposited with the Trustee pursuant to Section 8.1, all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received
by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and
this Indenture, to the 

  

 32. 

 
payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the persons
entitled thereto, of the principal and interest for whose payment such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Sections 8.3 or 8.4. 
  
 (b) The Company shall pay and shall indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations or Foreign Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest and principal received in respect of such obligations
other than any payable by or on behalf of Holders. 
  
 (c) The Trustee shall deliver or pay to the Company from time to time upon Company Request any U.S. Government Obligations or Foreign Government Obligations or money held by it as provided in Sections 8.3 or 8.4 which are then in
excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or Foreign Government Obligations or money were deposited or received. This provision shall not authorize the
sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture. 
  
 Section 8.3 Legal Defeasance of Securities of any Series. 
  

Unless this Section 8.3 is otherwise specified, pursuant to Section 2.2.21, to be inapplicable to Securities of any Series, the Company shall be deemed
to have paid and discharged the entire indebtedness on all the outstanding Securities of such Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof, and the provisions of this Indenture, as it relates to such
outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, at Company Request, execute proper instruments acknowledging the same), except as to: 
  
 (a) the rights of Holders of Securities of such
Series to receive, from the trust funds described in subparagraph (d) hereof, (i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Stated Maturity of such principal or
installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the
Securities of such Series; 
  
 (b) the
provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and 
  
 (c) the rights, powers, trust and immunities of the Trustee hereunder; 
  
 provided that, the following conditions shall have been satisfied: 
  
 (d) the Company shall have deposited or caused to be deposited irrevocably with the Trustee as trust funds in trust for the purpose
of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in 

  

 33. 

 
Dollars (or such other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations, or (ii) in the case of
Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof, in accordance with their terms, will
provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal (including mandatory sinking fund or analogous payments) of and interest, if any, on all the
Securities of such Series on the dates such installments of interest or principal are due; 
  
 (e) such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement
or instrument to which the Company is a party or by which it is bound; 
  
 (f) no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 91st day after such date;

  
 (g) the Company shall have delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this
Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income,
gain or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit,
defeasance and discharge had not occurred; 
  
 (h) the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other
creditors of the company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; 
  
 (i) such deposit shall not result in the trust arising from such deposit constituting an investment company (as defined in the
Investment Company Act of 1940, as amended), or such trust shall be qualified under such Act or exempt from regulation thereunder; and 
  
 (j) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with. 
  
 Section 8.4 Covenant Defeasance. 
  
 Unless this Section 8.4 is otherwise specified pursuant to Section 2.2.21 to be inapplicable to Securities of any Series, on and after the 91st day after
the date of the deposit 

  

 34. 

 
referred to in subparagraph (a) hereof, the Company may omit to comply with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.5,
4.6, and 5.1 as well as any additional covenants contained in a supplemental indenture hereto for a particular Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.2.21 (and the failure to
comply with any such covenants shall not constitute a Default or Event of Default under Section 6.1) and the occurrence of any event described in clause (e) of Section 6.1 shall not constitute a Default or Event of Default hereunder, with respect to
the Securities of such Series, provided that the following conditions shall have been satisfied: 
  
 (a) With reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in
Section 8.2(c) ) with the Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in
Dollars (or such other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency),
money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof, in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such
Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof
delivered to the Trustee, to pay principal and interest, if any, on and any mandatory sinking fund in respect of the Securities of such Series on the dates such installments of interest or principal are due; 
  
 (b) Such deposit will not result in a breach or
violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound; 
  
 (c) No Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date
of such deposit or during the period ending on the 91st day after such date; 
  
 (d) the Company shall have delivered to the Trustee an Opinion of Counsel confirming that Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a
result of such deposit and defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred; 
  
 (e) the Company shall have delivered to the Trustee
an Officers’ Certificate stating the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the Company or with the intent of defeating, hindering, delaying or
defrauding any other creditors of the Company; and 
  

 35. 

 (f) The Company shall have delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the defeasance contemplated by this Section have been complied with. 
  
 Section 8.5 Repayment to Company. 
  
 The Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal
and interest that remains unclaimed for two years or such other shorter period set forth in applicable escheat or abandoned or unclaimed property law. After that, Securityholders entitled to the money must look to the Company for payment as general
creditors unless an applicable abandoned property law designates another person. 
  
 Section 8.6 Reinstatement. 
  
 If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with Sections 8.1, 8.3 or 8.4, as the case may be, by reason of any legal proceeding or by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section
8.1, 8.3 or 8.4, as the case may be, until such time as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations in accordance with Section 8.1, 8.3 or 8.4, as the case may be; provided, however, that if the
Company makes any payment of principal of, premium, if any, or interest on any Securities because of reinstatement of its obligations, the Company shall be subrogated to the rights of the holders of such Securities to receive such payment from the
money or U.S. Government Obligations held by the Trustee or Paying Agent. 
  
 ARTICLE 9 
  
 AMENDMENTS
AND WAIVERS 
  
 Section 9.1 Without Consent of Holders.

  
 The Company and the Trustee may amend or supplement this
Indenture or the Securities of one or more Series without the consent of any Securityholder: 
  
 (a) to cure any ambiguity, defect or inconsistency; 
  
 (b) to comply with Article V; 
  
 (c) to provide for uncertificated Securities in addition to or in place of certificated Securities;

  
 (d) to make any change that does not
adversely affect the rights of any Securityholder in any material respect; 
  
 (e) to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture; 
  

 36. 

 (f) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Trustee; or 
  
 (g) to comply with
requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA. 
  
 Section 9.2 With Consent of Holders. 
  
 The Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of
the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each such Series. Except as provided in Section 6.13, the Holders of at
least a majority in principal amount of the outstanding Securities of each Series affected by such waiver by notice to the Trustee (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series)
may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series. 
  
 It shall not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed supplemental
indenture or waiver, but it shall be sufficient if such consent approves the substance thereof. After a supplemental indenture or waiver under this Section becomes effective, the Company shall mail to the Holders of Securities affected thereby and,
if any Bearer Securities affected thereby are outstanding, publish on one occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture or waiver. Any failure by the Company to mail or publish such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver. 
  
 Section 9.3 Limitations. 
  
 Without the consent of each Securityholder affected, an amendment or waiver may not: 
  
 (a) change the amount of Securities whose Holders must consent to an amendment, supplement or waiver;

  
 (b) reduce the rate of or extend the
time for payment of interest (including default interest) on any Security; 
  
 (c) reduce the principal or change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation; 
  
 (d) reduce the principal amount of Discount
Securities payable upon acceleration of the maturity thereof; 
  

 37. 

 (e) waive a Default or Event of Default in the payment of the principal of or
interest, if any, on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding Securities of such Series and a waiver of the payment default that
resulted from such acceleration); 
  
 (f)
make the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security; 
  
 (g) make any change in Sections 6.8, 6.13, 9.3, 10.15 or 10.16; or 
  
 (h) waive a redemption payment with respect to any Security or change any of the provisions with
respect to the redemption of any Securities. 
  
 Section 9.4
Compliance with Trust Indenture Act. 
  
 Every amendment to
this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect. 
  
 Section 9.5 Revocation and Effect of Consents. 
  
 Until an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent as
to his Security or portion of a Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective. 
  
 Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type
described in any of clauses (a) through (g) of Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder’s Security. 
  
 Section 9.6
Notation on or Exchange of Securities. 
  
 The Trustee may
place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated. The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that
Series that reflect the amendment or waiver. 
  
 Section 9.7
Trustee Protected. 
  
 In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully protected
in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is 

  

 38. 

 
authorized or permitted by this Indenture. The Trustee shall sign all supplemental indentures, except that the Trustee need not sign any supplemental
indenture that adversely affects its rights. 
  
 ARTICLE 10

  
 MISCELLANEOUS 
  
 Section 10.1 Trust Indenture Act Controls. 
  
 If any provision of this Indenture limits, qualifies, or conflicts with
another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control. 
  
 Section 10.2 Notices. 
  
 Any notice or communication by the Company or the Trustee to the other is duly given if in writing and delivered in person or mailed by first-class

  
 if to the Company: 
  
 Nuvelo, Inc. 
 675 Almanor Avenue 
 Sunnyvale, CA 94085

 Attention: General Counsel 
  
 if to the Trustee: 
  
 U.S. Bank National Association 
 60 Livingston
Avenue 
 St. Paul, MN 55107-2292 
 Attention: Frank Leslie 
  
 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 to a Securityholder shall be mailed by first-class mail to his address shown on the register kept by the Registrar and, if any
Bearer Securities are outstanding, published in an Authorized Newspaper. Failure to mail a notice or communication to a Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to other Securityholders of that
or any other Series. 
  
 If a notice or communication is mailed or
published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it. 
  
 If the Company mails a notice or communication to Securityholders, it shall mail a copy to the Trustee and each Agent at the same time. 
  

 39. 

 Section 10.3 Communication by Holders with Other Holders. 
  
 Securityholders of any Series may communicate pursuant to TIA Section 312(b)
with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA
Section 312(c). 
  
 Section 10.4 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: 
  
 (a) 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 
  
 (b) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with. 
  
 Section 10.5 Statements Required in Certificate or Opinion. 
  
 Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a) (4)) shall comply with the provisions of TIA Section 314(e) and shall include: 
  
 (a) a statement that the person making such certificate or opinion has read such covenant or
condition; 
  
 (b) a brief statement as to
the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (c) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (d) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with. 

 
 Section 10.6 Rules by Trustee and Agents. 
  
 The Trustee may make reasonable rules for action by or a meeting of
Securityholders of one or more Series. Any Agent may make reasonable rules and set reasonable requirements for its functions. 
  

 40. 

 Section 10.7 Legal Holidays. 
  
 Unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture for a particular Series,
a “Legal Holiday” is any day that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for
the intervening period. 
  
 Section 10.8 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. Each Securityholder by accepting
a Security waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities. 
  
 Section 10.9 Counterparts. 
  
 This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 Section 10.10 Governing Laws. 
  
 THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE,
WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF. 
  
 Section 10.11 No Adverse Interpretation of Other Agreements. 
  
 This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 

 
 Section 10.12 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 10.13 Severability. 
  
 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. 

 

 41. 

 Section 10.14 Table of Contents, Headings, Etc. 
  
 The Table of Contents, Cross Reference Table, and headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 
  
 Section 10.15 Securities in a Foreign Currency or in ECU. 

 
 Unless otherwise specified in a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified
percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in a coin or currency
other than Dollars (including ECUs), then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be that amount of Dollars that could be obtained for such amount at the
Market Exchange Rate at such time. For purposes of this Section 10.15, “Market Exchange Rate” shall mean the noon Dollar buying rate in New York City for cable transfers of that currency as published by the Federal Reserve Bank of New
York; provided, however, in the case of ECUs, Market Exchange Rate shall mean the rate of exchange determined by the Commission of the European Union (or any successor thereto) as published in the Official Journal of the European Union (such
publication or any successor publication, the “Journal”). If such Market Exchange Rate is not available for any reason with respect to such currency, the Trustee shall use, in its sole discretion and without liability on its part, such
quotation of the Federal Reserve Bank of New York or, in the case of ECUs, the rate of exchange as published in the Journal, as of the most recent available date, or quotations or, in the case of ECUs, rates of exchange from one or more major banks
in The City of New York or in the country of issue of the currency in question or, in the case of ECUs, in Luxembourg or such other quotations or, in the case of ECUs, rates of exchange as the Trustee, upon consultation with the Company, shall deem
appropriate. The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in currency other than Dollars in connection with any action taken by Holders of Securities
pursuant to the terms of this Indenture. 
  
 All decisions and
determinations of the Trustee regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole discretion and shall, in the absence of manifest error, be conclusive to the extent
permitted by law for all purposes and irrevocably binding upon the Company and all Holders. 
  
 Section 10.16 Judgment Currency. 
  
 The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the
principal of or interest or other amount on the Securities of any Series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at
which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency 

  

 42. 

 
with the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then, the rate of
exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final
unappealable judgment is entered and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not entered in
accordance with clause (a) ), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable
in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture. For purposes of the foregoing, “New York Banking Day” means any day except a Saturday,
Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to close. 
  
 ARTICLE 11 
  
 SINKING FUNDS 
  
 Section 11.1 Applicability of Article. 
  
 The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or required by any form of Security of such Series issued pursuant
to this Indenture. 
  
 The minimum amount of any sinking fund
payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an
“optional sinking fund payment.” If provided for by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.2. Each sinking fund payment shall be applied to
the redemption of Securities of any Series as provided for by the terms of the Securities of such Series. 
  
 Section 11.2 Satisfaction of Sinking Fund Payments with Securities. 
  
 The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series
to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption) and
(2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory
sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so 

  

 43. 

 
credited. Such Securities shall be received by the Trustee, together with an Officers’ Certificate with respect thereto, not later than 15 days prior to
the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly. If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the principal amount of Securities of such Series to be redeemed in
order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the
Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment
so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

  
 Section 11.3 Redemption of Securities for Sinking Fund.

  
 Not less than 45 days (unless otherwise indicated in the
Board Resolution, supplemental indenture hereto or Officers’ Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an
Officers’ Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company
shall thereupon be obligated to pay the amount therein specified. Not less than 30 days (unless otherwise indicated in the Board Resolution, Officers’ Certificate or supplemental indenture in respect of a particular Series of Securities) before
each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the name of and at the
expense of the Company in the manner provided in Section 3.3. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6. 
  
 ARTICLE 12 
  
 SUBORDINATION OF SECURITIES 
  
 Section 12.1 Agreement of Subordination. 
  
 The Company covenants and agrees, and each Holder of Securities issued
hereunder by his acceptance thereof likewise covenants and agrees, that all Securities shall be issued subject to the provisions of this Article XII; and each Person holding any Security, whether upon original issue or upon transfer, assignment or
exchange thereof, accepts and agrees to be bound by such provisions. 
  

 44. 

 The payment of the principal of, premium, if any, and interest on all Securities (including, but not
limited to, the redemption price with respect to the Securities called for redemption in accordance with Article 3 as provided in the Indenture) issued hereunder shall, to the extent and in the manner hereinafter set forth, be subordinated and
subject in right of payment to the prior payment in full of all Senior Indebtedness, whether outstanding at the date of this Indenture or thereafter incurred. 
  

No provision of this Article XII shall prevent the occurrence of any default or Event of Default hereunder. 
  
 Section 12.2 Payments to Holders. 
  
 No payment shall be made with respect to the principal of, or premium, if
any, or interest on the Securities (including, but not limited to, the redemption price with respect to the Securities to be called for redemption in accordance with Article III as provided in the Indenture), except payments and distributions made
by the Trustee as permitted by the first or second paragraph of Section 12.5, if: 
  
 (i) a default in the payment of principal, premium, interest, rent or other obligations due on any Senior Indebtedness occurs and
is continuing (or, in the case of Senior Indebtedness for which there is a period of grace, in the event of such a default that continues beyond the period of grace, if any, specified in the instrument or lease evidencing such Senior Indebtedness),
unless and until such default shall have been cured or waived or shall have ceased to exist; or 
  
 (ii) a default, other than a payment default, on a Designated Senior Indebtedness occurs and is continuing that then permits
holders of such Designated Senior Indebtedness to accelerate its maturity and the Trustee receives a notice of the default (a “Payment Blockage Notice”) from a Representative or the Company. 
  
 If the Trustee receives any Payment Blockage Notice pursuant to clause (ii)
above, no subsequent Payment Blockage Notice shall be effective for purposes of this Section unless and until (a) at least 365 days shall have elapsed since the initial effectiveness of the immediately prior Payment Blockage Notice, and (b) all
scheduled payments of principal, premium, if any, and interest on the Securities that have come due have been paid in full in cash. No nonpayment default that existed or was continuing on the date of delivery of any Payment Blockage Notice to the
Trustee shall be, or be made, the basis for a subsequent Payment Blockage Notice. 
  
 The Company may and shall resume payments on and distributions in respect of the Securities upon the earlier of: 
  
 (1) the date upon which the default is cured or waived or ceases to exist, or 
  
 (2) in the case of a default referred to in clause
(ii) above, 179 days pass after notice is received if the maturity of such Designated Senior Indebtedness has not been accelerated, unless this Article XII otherwise prohibits the payment or distribution at the time of such payment or distribution.

  

 45. 

 Upon any payment by the Company, or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to creditors upon any dissolution or winding-up or liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings, all amounts
due or to become due upon all Senior Indebtedness shall first be paid in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, or payment thereof in accordance with its terms provided for in cash or other payment
satisfactory to the holders of such Senior Indebtedness, before any payment is made on account of the principal of, premium, if any, or interest on the Securities (except payments made pursuant to Article VI from monies deposited with the Trustee
pursuant thereto prior to commencement of proceedings for such dissolution, winding-up, liquidation or reorganization); and upon any such dissolution or winding-up or liquidation or reorganization of the Company or bankruptcy, insolvency,
receivership or other proceeding, any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Holders of the Securities or the Trustee would be entitled, except
for the provision of this Article XII, shall (except as aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by the Holders of the Securities
or by the Trustee under this Indenture if received by them or it, directly to the holders of Senior Indebtedness (pro rata to such holders on the basis of the respective amounts of Senior Indebtedness held by such holders, or as otherwise required
by law or a court order) or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any Senior Indebtedness may have been issued, as their respective interests may
appear, to the extent necessary to pay all Senior Indebtedness in full, in cash or other payment satisfactory to the holders of such Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of Senior
Indebtedness, before any payment or distribution or provision therefor is made to the Holders of the Securities or to the Trustee. 
  
 For purposes of this Article XII, the words, “cash, property or securities” shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation provided for by a plan of reorganization or readjustment, the payment of which is subordinated at least to the extent provided in this Article XII with respect to the
Securities to the payment of all Senior Indebtedness which may at the time be outstanding; provided that (i) the Senior Indebtedness is assumed by the new corporation, if any, resulting from any reorganization or readjustment, and (ii) the rights of
the holders of Senior Indebtedness (other than leases which are not assumed by the Company or the new corporation, as the case may be) are not, without the consent of such holders, altered by such reorganization or readjustment. The consolidation of
the Company with, or the merger of the Company into, another corporation or the liquidation or dissolution of the Company following the conveyance or transfer of its property as an entirety, or substantially as an entirety, to another corporation
upon the terms and conditions provided for in Article V shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section 12.2 if such other corporation shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions stated in Article V. 
  
 In the event of the acceleration of the Securities because of an Event of Default, no payment or distribution shall be made to the Trustee or any Holder of Securities in respect of the principal of, premium, if any, or interest on the
Securities (including, but not limited to, the 

  

 46. 

 
redemption price with respect to the Securities called for redemption in accordance with Article 3 as provided in the Indenture), except payments and
distributions made by the Trustee as permitted by the first or second paragraph of Section 12.5, until all Senior Indebtedness has been paid in full in cash or other payment satisfactory to the holders of Senior Indebtedness or such acceleration is
rescinded in accordance with the terms of this Indenture. If payment of the Securities is accelerated because of an Event of Default, the Company shall promptly notify holders of Senior Indebtedness of the acceleration at the address set forth in
the notice from the Agent (or successor agent) to the Trustee as being the address to which the Trustee should send its notice pursuant to this Section 12.2, unless there are no payment obligations of the Company thereunder and all obligations
thereunder to extend credit have been terminated or expired. 
  
 In the event that, notwithstanding the foregoing provisions, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities (including, without limitation, by way of setoff or
otherwise), prohibited by the foregoing, shall be received by the Trustee or the Holders of the Securities before all Senior Indebtedness is paid in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, or provision
is made for such payment thereof in accordance with its terms in cash or other payment satisfactory to the holders of such Senior Indebtedness, such payment or distribution shall be held in trust for the benefit of and shall be paid over or
delivered to the holders of Senior Indebtedness or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any Senior Indebtedness may have been issued, as their
respective interests may appear, as calculated by the Company, for application to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to pay all Senior Indebtedness in full in cash or other payment satisfactory to the
holders of such Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of such Senior Indebtedness. 
  
 Nothing in this Section 12.2 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 7.7. This Section 12.2 shall be subject to
the further provisions of Section 12.5. 
  
 Section 12.3
Subrogation of Securities. 
  
 Subject to the payment in full
of all Senior Indebtedness, the rights of the Holders of the Securities shall be subrogated to the extent of the payments or distributions made to the holders of such Senior Indebtedness pursuant to the provisions of this Article XII (equally and
ratably with the holders of all indebtedness of the Company which by its express terms is subordinated to other indebtedness of the Company to substantially the same extent as the Securities are subordinated and is entitled to like rights of
subrogation) to the rights of the holders of Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company applicable to the Senior Indebtedness until the principal, premium, if any, and interest on the
Securities shall be paid in full; and, for the purposes of such subrogation, no payments or distributions to the holders of the Senior Indebtedness of any cash, property or securities to which the Holders of the Securities or the Trustee would be
entitled except for the provisions of this Article XII, and no payment over pursuant to the provisions of this Article XII, to or for the benefit of the holders of Senior Indebtedness by Holders of the Securities or the Trustee, shall, as between
the Company, its creditors other than holders of Senior Indebtedness, and the Holders of 

  

 47. 

 
the Securities, be deemed to be a payment by the Company to or on account of the Senior Indebtedness; and no payments or distributions of cash, property or
securities to or for the benefit of the Holders of the Securities pursuant to the subrogation provisions of this Article XII, which would otherwise have been paid to the holders of Senior Indebtedness shall be deemed to be a payment by the Company
to or for the account of the Securities. It is understood that the provisions of this Article XII are and are intended solely for the purposes of defining the relative rights of the Holders of the Securities, on the one hand, and the holders of the
Senior Indebtedness, on the other hand. 
  
 Nothing contained in
this Article XII or elsewhere in this Indenture or in the Securities is intended to or shall impair, as among the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Securities, the obligation of the Company,
which is absolute and unconditional, to pay to the Holders of the Securities the principal of (and premium, if any) and interest on the Securities as and when the same shall become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders of the Securities and creditors of the Company other than the holders of the Senior Indebtedness, nor shall anything herein or therein prevent the Trustee or the Holder of any Security from exercising
all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article XII of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon
the exercise of any such remedy. 
  
 Upon any payment or
distribution of assets of the Company referred to in this Article XII, the Trustee, subject to the provisions of Section 7.1, and the Holders of the Securities shall be entitled to rely upon any order or decree made by any court of competent
jurisdiction in which such bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are pending, or a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such payment or
distribution, delivered to the Trustee or to the Holders of the Securities, for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the
amount thereof or payable thereon and all other facts pertinent thereto or to this Article XII. 
  
 Section 12.4 Authorization to Effect Subordination. 
  
 Each Holder of a Security by the holder’s acceptance thereof authorizes and directs the Trustee on the holder’s behalf to take such action as
may be necessary or appropriate to effectuate the subordination as provided in this Article XII and appoints the Trustee to act as the holder’s attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of claim
or proof of debt in the form required in any proceeding referred to in Section 6.3 hereof at least 30 days before the expiration of the time to file such claim, the holders of any Senior Indebtedness or their representatives are hereby authorized to
file an appropriate claim for and on behalf of the Holders of the Securities. 
  
 Section 12.5 Notice to Trustee. 
  
 The Company shall give prompt written notice in the form of an Officers’ Certificate to a Responsible Officer of the Trustee and to any paying agent of any fact known to the Company which would prohibit the making of any payment of
monies to or by the Trustee or any paying 

  

 48. 

 
agent in respect of the Securities pursuant to the provisions of this Article XII. Notwithstanding the provisions of this Article XII or any other provision
of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any payment of monies to or by the Trustee in respect of the Securities pursuant to the provisions of this Article
XII, unless and until a Responsible Officer of the Trustee shall have received written notice thereof at the Corporate Trust Office from the Company (in the form of an Officers’ Certificate) or a Representative or a holder or holders of Senior
Indebtedness or from any trustee thereof; and before the receipt of any such written notice, the Trustee, subject to the provisions of Section 7.1, shall be entitled in all respects to assume that no such facts exist; provided that if on a date not
fewer than two Business Days prior to the date upon which by the terms hereof any such monies may become payable for any purpose (including, without limitation, the payment of the principal of, or premium, if any, or interest on any Security) the
Trustee shall not have received, with respect to such monies, the notice provided for in this Section 12.5, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such monies and
to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after such prior date. 
  
 Notwithstanding anything in this Article XII to the contrary, nothing shall prevent any payment by the Trustee to the
Holders of monies deposited with it pursuant to Section 8.1, and any such payment shall not be subject to the provisions of Section 12.1 or 12.2. 
  
 The Trustee, subject to the provisions of Section 7.1, shall be entitled to rely on the delivery to it of a written notice by a Representative or a person
representing himself to be a holder of Senior Indebtedness (or a trustee on behalf of such holder) to establish that such notice has been given by a Representative or a holder of Senior Indebtedness or a trustee on behalf of any such holder or
holders. In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article XII,
the Trustee may request such person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such person, the extent to which such person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such person under this Article XII, and if such evidence is not furnished the Trustee may defer any payment to such person pending judicial determination as to the right of such person to
receive such payment. 
  
 Section 12.6 Trustee’s Relation
to Senior Indebtedness. 
  
 The Trustee in its individual
capacity shall be entitled to all the rights set forth in this Article XII in respect of any Senior Indebtedness at any time held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in Section 7.11 or elsewhere in this
Indenture shall deprive the Trustee of any of its rights as such holder. 
  
 With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this Article XII, and no implied
covenants or obligations with respect to the holders of Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any 

  

 49. 

 
fiduciary duty to the holders of Senior Indebtedness and, subject to the provisions of Section 7.1, the Trustee shall not be liable to any holder of Senior
Indebtedness if it shall pay over or deliver to Holders of Securities, the Company or any other person money or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article XII or otherwise. 
  
 Section 12.7 No Impairment of Subordination. 
  
 No right of any present or future holder of any Senior Indebtedness to
enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by
the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof which any such holder may have or otherwise be charged with. 
  
 Section 12.8 Article Applicable to Paying Agents. 
  
 If at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting
hereunder, the term “Trustee” as used in this Article shall (unless the context otherwise requires) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such Paying
Agent were named in this Article in addition to or in place of the Trustee; provided, however, that the first paragraph of Section 12.5 shall not apply to the Company or any Affiliate of the Company if it or such Affiliate acts as Paying Agent.

  
 Section 12.9 Senior Indebtedness Entitled to Rely.

  
 The holders of Senior Indebtedness (including, without
limitation, Designated Senior Indebtedness) shall have the right to rely upon this Article XII, and no amendment or modification of the provisions contained herein shall diminish the rights of such holders unless such holders shall have agreed in
writing thereto. 
  

 50. 

 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the day and
year first above written. 
  

			
	 NUVELO, INC.

		
	 By: 
	 	 
	 	 	 Name:

	 	 	 Its:

	
	 U.S. BANK NATIONAL ASSOCIATION

		
	 By: 
	 	 
	 	 	 Name:

	 	 	 Its:

  

 51.Loan and Security Agreement

 Exhibit 4.2 
  
 LOAN AND SECURITY AGREEMENT 
  
 This Loan and Security Agreement (“Agreement”) is dated this 30th day of April, 2002, by and among HealthEssentials Solutions, Inc., a
Delaware corporation (“Borrower Agent” or “HealthEssentials”), NPPA of America, Inc., a Delaware corporation (“NPPA America”), NPPA National, LLC, a Texas limited liability company (“NPPA
National”), and such other Persons joined hereto as a Borrower from time to time (collectively referred to as “Borrowers” and each individually referred to as a “Borrower”), and Healthcare Business Credit
Corporation, a Delaware corporation as lender (“Lender”). 
  
 BACKGROUND 
  
 A Borrowers
have requested that Lender make available to them, on a joint and several basis, a Credit Facility in the maximum amount of $12,000,000 which will be secured by a first priority perfected security interest in the Accounts and other Collateral of
Borrowers. Lender is willing to make the Credit Facility available to Borrowers pursuant to the terms and provisions hereinafter set forth. 
  
 B The parties desire to set forth the terms and conditions of their relationship in writing. 
  
 NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 SECTION 1. DEFINITIONS AND INTERPRETATION 
  
 1.1. Terms Defined: As used in this Agreement, the following terms
have the following respective meanings: 
  
 “Account” means (a) the third party reimbursable portion of accounts receivable owing to a Borrower arising out of the delivery by such Borrower of medical, surgical, diagnostic or other professional or medical or dental
services and/or the supply of goods related to any of such services (whether such services are supplied by a Borrower or a third party), including all healthcare-insurance-receivables and all other rights to reimbursement under any agreements with
an Obligor, (b) all accounts, general intangibles, rights, remedies, guarantees, supporting obligations, letter of credit rights and security interests in respect of the foregoing, all rights of enforcement and collection, all books and records
evidencing or related to the foregoing, and all rights under this Agreement in respect of the foregoing, (c) all information and data compiled or derived by such Borrower in respect of such accounts receivable (other than any such information and
data subject to legal restrictions of patient confidentiality), and (d) all proceeds of any of the foregoing. 
  
 “Accounts Detail File” has the meaning set forth in Section 2.2(b) hereof. 
  
 “Acquisition” means that acquisition of all
of the issued and outstanding capital 

  

 
stock of Specialized and the outstanding membership interests of MAJJ by HealthEssentials pursuant to the terms and conditions of documentation acceptable to
Lender in its sole and absolute discretion. 
  
 “Advance(s)” means any monies advanced or credit extended, including without limitation the Loans to or for the benefit of Borrowers, or any of them by Lender, under the Credit Facility. 
  
 “Advance Rate” means 85% or such other
percentage(s) resulting from an adjustment pursuant to Section 2.1(e) below. 
  
 “Affiliate” means with respect to any Person (the “Specified Person”), (a) any Person which directly or indirectly controls, or is controlled by, or is under common control with, the
Specified Person, and (b) any director or officer (or, in the case of a Person which is not a corporation, any individual having analogous powers) of the Specified Person or of a Person who is an Affiliate of the Specified Person within the meaning
of the preceding clause (a). For purposes of the preceding sentence, “control” of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, or
direct or indirect ownership (beneficially or of record) of, or direct or indirect power to vote, 5% or more of the outstanding shares of any class of capital stock of such Person (or in the case of a Person that is not a corporation, 5% or more of
any class of equity interest). 
  
 “Authorized Officer” means any officer, manager, member and/or partner of a Borrower authorized by specific resolution of Borrower to request Loans as set forth in the incumbency certificate referred to in Section 4.1(d) of
this Agreement. 
  
 “Billing
Date” means (a) the last Business Day of the week in which goods or the services giving rise to the corresponding Account were rendered or provided in the case of out-patient services and (b) the earlier of the discharge date or the regular
monthly billing date for billing the respective Obligor, or if none, the last business day of a calendar month, in the case of inpatient services. 
  
 “Borrowing Base” means, at any date, an amount equal to the lesser of (a) the Revolving Loan Commitment, or (b) the
product of (i) the applicable Advance Rate then in effect, times (ii) the Estimated Net Value of all Eligible Accounts as of such date. 
  
 “Borrowing Base Deficiency” means, as of any date, the amount, if any, by which (a) the aggregate amount of all Advances
outstanding as of such date exceeds (b) the Borrowing Base as of such date. 
  
 “Borrowing Base Excess” means, as of any date, the amount, if any, by which (a) the Borrowing Base as of such date exceeds (b) the aggregate amount of all Advances outstanding as of such date.

  
 “Borrowing Base Report” has
the meaning set forth in Section 2.2(b) hereof. 
  
 “Business Day” means any day other than a Saturday, Sunday or any day on which banking institutions in Philadelphia, Pennsylvania or New York City, New York are 

  

 2 

 
permitted or required by law, executive order or governmental decree to remain closed or a day on which Lender is closed for business. 
  
 “CHAMPUS” means the Civilian Health and
Medical Program of the Uniformed Service, a part of TRICARE, a medical benefits program supervised by the U.S. Department of Defense. 
  
 “Closing” has the meaning set forth in Section 4.6 hereof. 
  
 “Closing Date” has the meaning set forth in Section 4.6 hereof. 
  
 “Collateral” has the meaning set forth in
Section 3.1 hereof. 
  
 “Collateral
Pledge Agreements” has the meaning set forth in Section 3.8 hereof. 
  
 “Collections” means with respect to any Account, all cash collections on such Account. 
  
 “Collection Account” has the meaning set forth in Section 2.7(a) hereof. 
  
 “Commercial Lockbox” means a lockbox in the
name of Lender (or a nominee of Lender) and maintained at the Lockbox Bank, or such other bank as is acceptable to Lender, to which Collections on all Accounts, other than Government Accounts, are sent. 
  
 “Commitment Fee” has the meaning set forth
in Section 2.8 hereof. 
  
 “Concentration
Limits” means the various financial tests, expressed as percentages of the then current ENV of all Eligible Accounts, described on Schedule 1 as in effect from time to time. 
  
 “Contract” means an agreement by which an
Obligor is obligated to pay for services rendered to patients of Borrower. 
  
 “Credit Facility” has the meaning set forth in Section 2.1(a) hereof. 
  
 “Debt Service Coverage Ratio” means the ratio of (a) the sum of (i) net income, plus (ii) interest expense, pins (iii)
depreciation and amortization expenses to (b) the sum of (i) cash interest expense, plus (ii) the current portion of long-term debt, plus (iii) the current portion of lease payments under capitalized leases, plus (iv) Scheduled Payments, plus (v)
Distributions, all as determined for Borrowers on a consolidated basis in accordance with generally accepted accounting principles consistently applied, on a rolling four quarter basis; provided, however, that such calculation for the fiscal quarter
ending June 30, 2002 shall be for the two (2) most recent quarterly periods ending on such date, on a cumulative, annualized basis and such calculation for the fiscal quarter ending September 30, 2002 shall be for the three (3) most recent fiscal
quarterly period ending on such date, on a cumulative, annualized basis. 
  
 “Default Rate” means 300 basis points above the interest rate otherwise applicable on the Loans. 
  

 3 

 “Defaulted Account” means an Account as to which (a) the initial ENV has
not been received in full as Collections within 150 days of the Billing Date, or (b) Lender reasonably deems uncollectible because of the bankruptcy or insolvency of the Obligor or any other reason. 
  
 “Depository Agreement(s)” means those
certain Depository Agreements entered into in connection with this Agreement among Borrowers, Lender and the Lockbox Bank, relating to the Commercial Lockbox and the Government Lockbox, as applicable. 
  
 “Distribution” means (a) dividends or other
distributions on capital stock or other equity interests of a Borrower; (b) the redemption, repurchase or acquisition of such stock or equity interests or of warrants, rights or other options to purchase such stock or equity interest; and (c) loans
and/or advances made to any Shareholders, members, managers, officers and/or Affiliates. 
  
 “Download Date” has the meaning set forth in Section 2.2(b) hereof. 
  
 “Eligible Account” means an Account of a
Borrower: 
  
 (a) which is a liability of an
Obligor which is (i) a commercial insurance company acceptable to Lender, organized under the laws of any jurisdiction in the United States, having its principal office in the United States, other than those listed on Schedule 1 as
ineligible, (ii) a Blue Cross/Blue Shield Plan other than those listed on Schedule 1 as ineligible, (iii) CHAMPUS, Medicare, Medicaid or Veteran’s Administration, or (iv) a HMO, PPO, or an institutional Obligor acceptable to Lender, or
any other type of obligor, not included in the categories of obligors listed in the foregoing clauses (i) - (iii), organized under the laws of any jurisdiction in the United States, having its principal office in the United States, and is listed on
Schedule 1 as an eligible Obligor, 
  
 (b) the
Obligor of which is not an Affiliate of Borrower, 
  
 (c) the Obligor of which has received a letter substantially in the form of Exhibit 4.2A, (in the case of all Accounts other than Government Accounts), or a letter substantially in the form of Exhibit 4.2B (in the case of all
Government Accounts), 
  
 (d) in an amount, as
relating to an individual patient, not less than $5 nor mote than $50,000, denominated and payable in dollars in the United States, 
  
 (e) as to which the representations and warranties of Section 5.21 hereof are true, 
  
 (f) which, if such Account is in the form of a cost report
receivable owing from any government agency, Lender has agreed to include it in the Borrowing Base, 
  
 (g) which (i) does not arise from the delivery of cosmetic surgery services and (ii) is not a workers’ compensation claim (unless
expressly approved by Lender) and (iii) does not arise from any services delivered for injury sustained in a motor vehicle accident (unless the Obligor on such Account is a type of Obligor permitted pursuant to clause (a) of this definition) 

  

 4 

 
and (iv) does not have an Obligor who is the individual patient or person who received the goods or services rendered, 
  
 (h) which is not outstanding more than (1) one hundred fifty
(150) days past the Billing Date in the case of Accounts that have been billed, and (ii) forty-five (45) days past the date the corresponding services and/or goods were provided in the case of all Accounts which have not been billed; provided
however that in the case of Government Accounts which have not been billed due to a Borrower not yet obtaining an appropriate provider identification number for the nurse practitioner providing the related services and/or goods, such Accounts are
not outstanding more than ninety (90) days past the date the corresponding services and/or goods; provided further that in no event may the Account be outstanding more than one hundred ninety-five (195) days past the date the
corresponding services and/or goods were provided, 
  
 (i) to the extent such Account does not include late charges or finance charges, 
  
 (j) the Account is from an Obligor for which fifty percent (50%) or more of the Accounts owing from such Obligor are outstanding more than
one hundred fifty (150) days past the Billing Date; and 
  
 (k) which complies with such other criteria and requirements as may be specified from time to time by Lender in its reasonable discretion. 
  
 “Estimated Net Value” or “ENV” means on any date of calculation with
respect to any Account an amount equal to the anticipated cash collections as calculated by Lender using the Value Track SystemTM (which system periodically adjusts such amount to reflect Lender’s evaluation of the performance of similar Accounts and to reflect payments received with respect thereto), except that if Lender determines that all Obligor
payments with respect to an Account have been made or if an Account has become a Defaulted Account, the ENV of such Account shall be zero. 
  
 “Event of Default” has the meaning set forth in Section 8.1 hereof. 
  
 “Expenses” has the meaning set forth in
Section 9.5 hereof. 
  
 “Funding
Date” has the meaning set forth in Section 2.2(a) hereof. 
  
 “GAAP” means generally accepted accounting principles, consistently applied. 
  
 “Government Accounts” means Accounts on which any federal or state governmental unit or any intermediary for federal or
state governmental unit is the Obligor. 
  
 “Government Lockbox” means a lockbox and/or deposit account in the name of Borrower(s) maintained at the Lockbox Bank, or such other bank as is acceptable to Lender, to which Collections on all Government Accounts are sent.

  
 “Hazardous Substances” means
any substances defined or designated as hazardous or toxic waste, hazardous or toxic material, hazardous or toxic substance or similar 

  

 5 

 
term, by any environmental statute, rule or regulation of any governmental entity presently in effect and applicable to such real property. 
  
 “Indebtedness” of a Person at a particular
date shall mean all liabilities and obligations of such Person including, without limitation, those which in accordance with GAAP would be classified upon a balance sheet as liabilities (except capital stock and surplus earned or otherwise) all
indebtedness, debt and other similar monetary obligations of such Person whether direct or guaranteed, and all premiums, if any, due at the required prepayment dates of such indebtedness, and all indebtedness secured by a lien on assets owned by
such Person, whether or not such indebtedness actually shall have been created, assumed or incurred by such Person. Any indebtedness of such Person resulting from the acquisition by such Person of any assets subject to any lien shall be deemed, for
the purposes hereof, to be the equivalent of the creation, assumption and incurring of the indebtedness secured thereby, whether or not actually so created, assumed or incurred. 
  
 “Initial Term” has the meaning set forth in Section 2.1(d). 
  
 “JCAHO” means the Joint Commission for
Accreditation of Healthcare Organizations, a nationally recognized organization providing accreditations to hospitals and other healthcare facilities, or any successor entity charged with performing its functions. 
  
 “LIBOR Rate” means an annual rate equal to
the annual rate in effect in the London Interbank market applicable to one (1) month deposits of U.S. dollars as reported in the Wall Street Journal on the second Business Day preceding the date of determination. If the Wall Street
Journal is not published on such Business Day or does not report such rate, such rate shall be reported by such other publication or source as Lender may reasonably select provided that Lender shall endeavor to promptly notify Borrower of such
other publication or source. 
  
 “Loan(s)” means collectively the Revolving Credit Loans and the Term Loan and each may also be referred to as a “Loan”. 
  
 “Loan Documents” means this Agreement, the Revolving Credit Note, the Term Note, Depository Agreements and all agreements
relating to the Government Lockbox and the Commercial Lockbox, all financing statements, Subordination Agreements, the Collateral Pledge Agreements, the Intellectual Property Security Agreement and any other agreements, instruments, documents and
certificates delivered in connection with this Agreement. 
  
 “Loan Request” has the meaning set forth in Section 2.2(c) hereof. 
  
 “Lockbox Bank” means PNC Bank, National Association or such other bank that is acceptable to Lender. 
  
 “MAJJ” means MAJJ Enterprises, LLC, a
Florida limited liability company. 
  
 “Material Adverse Effect” means (a) a material adverse effect upon the business, Property, prospects, the Collateral or financial condition of Borrowers or any of them or (b) a material impairment of the ability of any
Borrower to perform, or Lender to enforce, the Obligations, or on any of Lender’s rights hereunder. 
  

 6 

 “Maturity Date” has the meaning set forth in Section 2.1(d). 

 
 “Maximum Credit Limit” means an amount,
from time to time, equal to the Revolving Loan Commitment plus the outstanding principal amount of the Term Loan minus all principal payments scheduled or required to have been made, which have not yet been made with respect to the Term Loan as of
the date of determination, not to exceed at any time $12,000,000 in the aggregate. 
  
 “Obligations” means all now existing or hereafter arising debts, obligations, covenants, and duties of payment or
performance of every kind, matured or unmatured, direct or contingent, owing, arising, due, or payable to Lender, by or from Borrowers, or any of them, whether arising out of this Agreement or any other Loan Document or otherwise, including, without
limitation, all obligations to repay principal of and interest on all the Loans, and to pay interest, fees, costs, charges, expenses, professional fees, and all sums chargeable to Borrowers, or any of them, under the Loan Documents, whether or not
evidenced by any note or other instrument. 
  
 “Obligor” means the party primarily obligated to pay an Account. 
  
 “Person” means any individual, corporation, partnership, limited liability partnership, limited liability company,
association, trust, unincorporated organization, joint venture, court or government or political subdivision or agency thereof, or other entity. 
  
 “Permitted Liens” has the meaning set forth in Section 5.6. 
  
 “Pledgor” means each Shareholder of
HealthEssentials. 
  
 “Property”
means an interest of Borrower in any kind of property or asset, whether real, personal or mixed, or tangible or intangible. 
  
 “Revolving Credit Loan(s)” has the meaning set forth in Section 2.1(a). 
  
 “Revolving Credit Note” has the meaning set
forth in Section 2.1(b). 
  
 “Revolving
Loan Applicable Margin” means initially 5.0%. The Revolving Loan Applicable Margin shall be adjusted based upon the Debt Service Coverage Ratio as of the last day of the fiscal quarter then most recently ended for which the quarterly
financial statements have been delivered pursuant to Section 6.7, commencing with the audited financial statements of Borrowers for the fiscal year ending December 31, 2002: 
  

				
	 Debt Service Coverage Ratio

	  	Revolving Loan
Applicable Margin

	 
	 Less than 1.50 to 1
	  	5.00	%
	 Equal to or greater than 1.5 to 1 but less than or equal to 2.0 to 1
	  	4.75	%
	 Greater than 2.0 to 1
	  	4.50	%

  

 7 

 For purposes of the foregoing (i) the Debt Service Coverage Ratio shall be determined as of the end of
each fiscal quarter of Borrowers based on Borrowers’ financial statements delivered pursuant to Section 6.7 and (ii) each change in the Revolving Loan Applicable Margin resulting from a change in the Debt Service Coverage Ratio shall be
effective during the period commencing on and including the date of delivery to Lender of such financial statements indicating such change and ending on the day immediately preceding the effective date of the next such change; provided however that
the Debt Service Coverage Ratio shall be deemed to be less than 1.50 to 1 if (A) Borrowers fail to deliver the financial statements required to be delivered by it pursuant to Section 6.7 during the period from the expiration of the time for delivery
thereof until such financial statements are delivered or (B) an Event of Default (other than that caused by a failure to deliver financial statements as described in clause (A) above) or Unmatured Event of Default has occurred and is continuing, all
subject to the terms of Section 2.3(b). 
  
 “Revolving Loan Commitment” means an amount equal to $10,000,000. 
  
 “Scheduled Payments” RESERVED. 
  

“Securities” has the meaning set forth in Section 6.14 hereof. 
  
 “Shareholder” means, as applicable, a
shareholder, member or partner of each Borrower. 
  
 “Specialized” means Specialized Home Health Care Services of Central Florida, Inc., a Florida corporation. 
  
 “Subordinated Debt” means Indebtedness or other obligations of a Borrower that is subordinated to the Obligations of
Borrowers to Lender on terms and conditions that are satisfactory to Lender in its sole discretion. 
  
 “Subordination Agreement” means any and all Subordination Agreements, with respect to any and/or all of the Subordinated
Debt or lien priority with respect to the Collateral, including that certain Subordination Agreement dated as of even date herewith by and among Lender, Bruckmann, Rosser, Sherrill & Co., II, L.P. and HealthEssentials. 
  
 “Term Loan” has the meaning set forth in
Section 2.1(a). 
  
 “Term Loan Maturity
Date” means the earlier of           , 2002, the termination of the Credit Facility or the termination of this Agreement. 
  
 “Term Note” has the meaning set forth in
Section 2.1(c). 
  
 “Termination
Fee” has the meaning set forth in Section 2.3(c). 
  
 “Intellectual Property Security Agreement” means that certain Intellectual Property Security Agreement dated as of even date herewith from HealthEssentials to Lender, as may be amended or modified
from time to time. 
  

 8 

 “TRICARE” means the medical program for active duty members, qualified
family members, CHAMPUS eligible retirees and their family members and survivors, of all uniformed services. 
  
 “Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as in effect from time to time in
the State of New Jersey. 
  
 “Unmatured
Event of Default” means an event which with the passage of time, giving of notice or both, would become an Event of Default. 
  
 “Unused Line Fee” has the meaning set forth in Section 2.3(d). 
  
 “Value Track SystemTM” means the proprietary business system used by Lender to value and record the
status of Accounts. 
  
 1.2. Matters of
Construction: The terms “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision. Any pronoun used shall be
deemed to cover all genders. Wherever appropriate in the context, terms used herein in the singular also include the plural and vice versa. All references to statutes and related regulations shall include any amendments of same and any successor
statutes and regulations. Unless otherwise provided, all references to any instruments or agreements to which Lender is a party, including, without limitation, references to any of the Loan Documents, shall include any and all modifications or
amendments thereto and any and all extensions or renewals thereof. 
  
 1.3. Accounting Principles: Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the
purposes of this Agreement, this shall be done in accordance with GAAP, to the extent applicable, except as otherwise expressly provided in this Agreement. 
  
 SECTION 2. THE LOANS 
  
 2.1. Credit Facility - Description: 
  
 (a) Subject to the terms and conditions of this Agreement, Lender hereby establishes for the joint and several benefit of Borrowers, a
credit facility (“Credit Facility”) which shall include Advances which may be extended by Lender to or for the benefit of Borrowers from time to time hereunder in the form of revolving credit loans (“Revolving Credit
Loans”), and at Closing in the form of a term loan (“Term Loan”). The aggregate outstanding amount of all Advances, shall not at any time exceed the Maximum Credit Limit and the aggregate outstanding amount of all Revolving
Credit Loans shall not, at any time, exceed the Borrowing Base. In no event shall the initial principal amount of any Revolving Credit Loan be less than $25,000. Subject to such limitation, the outstanding balance of all Revolving Credit Loans may
fluctuate from time to lime, to be reduced by repayments made by Borrowers, to be increased by future Revolving Credit Loans which may be made by Lender. If the aggregate outstanding amount of all Revolving Credit Loans exceeds the Borrowing Base,
or if the aggregate outstanding amount of all Advances (whether in the form of a Term Loan, Revolving 

  

 9 

 
Credit Loans or otherwise), exceeds the Maximum Credit Limit, Borrowers shall immediately repay such excess in full. Lender has the right at any time, and
from time to time, in its reasonable discretion (but without any obligation) to set aside reasonable reserves against the Borrowing Base in such amounts as it may deem appropriate. The Obligations of Borrowers under the Credit Facility and this
Agreement are joint and several and shall at all times be absolute and unconditional. 
  
 (b) At Closing, Borrowers shall execute and deliver a promissory note to Lender in the principal amount of the Revolving Loan Commitment
(as may be amended, modified or replaced from time to time, the “Revolving Credit Note”). The Revolving Credit Note shall evidence Borrowers joint and several, absolute and unconditional obligation to repay Lender for all Loans made by
Lender under the Credit Facility, with interest as herein and therein provided. Each and every Revolving Credit Loan under the Credit Facility shall be deemed evidenced by the Revolving Credit Note, which is deemed incorporated herein by reference
and made a part hereof. The Revolving Credit Note shall be substantially in the form set forth in Exhibit 2.1(b) attached hereto and made a part hereof. 
  

(c) Upon the closing of the Acquisition, the joinder of Specialized and MAJJ as joint and several co-Borrowers hereunder (pursuant to
documentation acceptable to Lender in its sole and absolute discretion) and subject to the terms of this Agreement, Lender shall make available to Borrowers the Term Loan in the principal amount of $2,000,000. Subject to the provisions of Section
2.5(f), the Term Loan shall be repaid in full together with all accrued interest fees, costs and Expenses on or before the Term Loan Maturity Date. At Closing, Borrowers shall execute and deliver a promissory note to Lender in the principal face
amount of $2,000,000 (as may be amended, modified or replaced from time to time, the “Term Note”). The Term Note shall evidence Borrowers’ joint and several and absolute and unconditional obligation to repay the Term Loan to
Lender and the Term Note is hereby deemed incorporated herein by reference and made a part hereof. The Term Note shall be substantially in the form set forth in Exhibit 2.1(c) attached hereto and made a part hereof. 
  
 (d) The term (“Initial Term”) of the Credit
Facility shall expire on           , 2007. All Revolving Credit Loans shall be repaid on or before the earlier of the last day of the Initial Term or upon termination of the Credit Facility or
termination of this Agreement (“Maturity Date”). After the Maturity Date no further Revolving Credit Loans shall be available from Lender. 
  
 (e) From time to time, upon not less than three (3) Business Days notice to Borrowers, Lender may adjust the Advance Rate in order to
reflect, in Lender’s reasonable judgment, the experience with Borrowers (including by way of illustration, to adjust for any known or potential offsets by Medicare or Medicaid) or the aggregate amount or percentage of the Collections with
respect to the Accounts. 
  
 2.2. Funding Procedures:

  
 (a) Subject to the terms and conditions of
this Agreement and so long as no Event of Default or Unmatured Event of Default has occurred hereunder, Lender will make Revolving Credit Loans to Borrowers once a week, on a specified Business Day of each week 

  

 10 

 
(such day to be mutually agreeable to Borrowers and Lender) or on such other day of the week as Borrowers may request (such day is referred to herein as the
“Funding Date”, whether or not Borrowers have requested a Revolving Credit Loan to be made on such date). 
  
 (b) Not later than 11:00 A.M. (Eastern Time) three (3) Business Days prior to each Funding Date (“Download Date”),
Borrowers will deliver to Lender the computer file data associated with the Accounts, which shall include without limitation, the information (including changes in the Obligor reimbursement rates and changes in federal or state laws or regulations
affecting payment for medical services), required by Lender to enable Lender to process and value the outstanding Accounts of Borrowers on Lender’s Value Track SystemTM, as well as bill and collect such Accounts following an Event of Default (“Accounts Detail File”). Upon completion of the processing of the
data with respect to such Accounts, Lender will prepare and deliver to Borrowers by no later than 5:00 p.m. (Eastern Time) on the first Business Day following the Download Date (or if such Accounts Detail File is not delivered until after 11:00 A.M.
(Eastern Time) on the Download Date, the second Business Day following the Download Date), a report regarding the Borrowing Base then in effect, which shall be substantially in the form of Exhibit 2.2(b) (“Borrowing Base
Report”). 
  
 (c) On the Funding Date,
Borrowers will sign and return the Borrowing Base Report to Lender. If Borrowers are requesting that a Revolving Credit Loan be made on such Funding Date, Borrowers shall also deliver to Lender, concurrently with the Borrowing Base Report, a written
request for such Loan substantially in the form of Exhibit 2.2(c) (a “Loan Request”). The Borrowing Base Report and Loan Request may be delivered via telecopy and Borrowers acknowledge that Lenders may rely on Borrowers
signatures by facsimile, which shall be legally binding upon Borrowers. 
  
 (d) Subject to the terms and conditions of this Agreement, if the Borrowing Base Report and Loan Request are delivered to Lender before 11:00 A.M. on the Funding Date, Lender will advance on the Funding Date (or the
next Business Day if the Borrowing Base Report and Loan Request are delivered after 11:00 A.M. (Eastern Time)) to Borrowers a Revolving Credit Loan in the amount equal to the lesser of (i) the amount of the Revolving Credit Loan requested by
Borrowers in the Loan Request, or (ii) the Borrowing Base Excess as of such date. Any Advances made by Lender hereunder (other than the Term Loan) shall be treated for all purposes as, and shall accrue interest at the same rate applicable to,
Revolving Credit Loans. 
  
 (e) Lender’s
determination of the Estimated Net Value of the Eligible Accounts and other amounts to be determined or calculated under this Agreement shall, in the absence of manifest error, be binding and conclusive. 
  
 2.3. Interest and Fees: 
  
 (a) Each Revolving Credit Loan shall bear interest on the
outstanding principal amount thereof from the date made until such Revolving Credit Loan is paid in full, at a rate per annum equal to the LIBOR Rate plus the Revolving Loan Applicable Margin. Interest shall accrue on the outstanding balance of the
Term Loan at a per annum rate equal to the 

  

 11 

 
LIBOR Rate plus 9.0%. The interest rate on all amounts outstanding under the Credit Facility shall be adjusted weekly based on the LIBOR Rate as of each
Funding Date. 
  
 (b) If any Event of Default
shall occur and be continuing, the rate of interest applicable to each Loan then outstanding shall be the Default Rate. The Default Rate shall apply from the date of the Event of Default until the date such Event of Default is waived, and interest
accruing at the Default Rate shall be payable upon demand. 
  
 (c) Should the Credit Facility be terminated for any reason prior to the last day of the Initial Term, in addition to repayment of all such Obligations (including, without limitation, accrued and unpaid interest,
fees, costs and Expenses) then outstanding and termination of Lender’s commitment hereunder, Borrowers shall unconditionally be obligated to pay at the time of such termination and/or prepayment, a fee (“Termination Fee”) in an
amount equal to the following percentage of the Revolving Loan Commitment 3.0%, if such early termination occurs on or prior to the first anniversary -of the Closing Date, 2.0% if such early termination occurs after the first anniversary of the
Closing Date, but on or prior to the second anniversary of the Closing Date, and l.0%, if such early termination occurs after the second anniversary of the Closing Date but prior to the Maturity Date. Each Borrower acknowledges that the Termination
Fee is an estimate of Lender’s damages in the event of early termination and is not a penalty. In the event of termination of the Credit Facility, all of the Obligations shall be immediately due and payable upon the termination date stated in
any notice of termination. All undertakings, agreements, covenants, warranties and representations of Borrowers contained in the Loan Documents shall survive any such termination, and Lender shall retain its liens in the Collateral and all of its
rights and remedies under the Loan Documents notwithstanding such termination until Borrowers have paid the Obligations to Lender, in full, in immediately available funds, together with the applicable Termination Fee, if any. Notwithstanding the
payment in full of the Obligations, Lender shall not be required to terminate its security interests in the Collateral unless, with respect to any loss or damage Lender may incur as a result of dishonored checks or other items of payment received by
Lender from Borrowers or any Obligor and applied to the Obligations, Lender shall, at its option, (i) have received a written agreement executed by Borrowers and by any Person whose loans or other advances to Borrowers are used in whole or in part
to satisfy the Obligations, indemnifying Lender from any such loss or damage; or (ii) have retained such monetary reserves and security interests on the Collateral for such period of lime as Lender, in its reasonable discretion, may deem necessary
to protect Lender from any such loss or damage. 
  
 (d) Borrower shall unconditionally pay to Lender a fee (“Unused Line Fee”) equal to three-eighths of one percent (.375%) per annum of the unused portion of the Credit Facility. The unused portion of the Credit Facility shall be
the difference between the Revolving Loan Commitment and the average daily outstanding balance of the Revolving Credit Loans during each month (or portion thereof), which fees shall be calculated and payable monthly, in arrears, and shall be due and
payable on the first Funding Date of each calendar month. 
  
 2.4.
Additional Interest Provisions: 
  
 (a)
Calculation of Interest: Interest on the Loans shall be based on a year of three hundred sixty (360) days and charged for the actual number of days elapsed. 
  

 12 

 (b) Continuation of Interest Charges: All contractual rates of interest chargeable
on outstanding Loans shall continue to accrue and be paid even after default, maturity, acceleration, judgment, bankruptcy, insolvency proceedings of any kind or the happening of any event or occurrence similar or dissimilar. 
  
 (c) Applicable Interest Limitations: In no
contingency or event whatsoever shall the aggregate of all amounts deemed interest hereunder and charged or collected pursuant to the terms of this Agreement exceed the highest rate permissible under any law which a court of competent jurisdiction
shall, in a final determination, deem applicable hereto. In the event that such court determines Lender has charged or received interest hereunder in excess of the highest applicable rate, Lender shall, in its sole discretion, apply and set off such
excess interest received by Lender against other Obligations due or to become due and such rate shall automatically be reduced to the maximum rate permitted by such law. 
  
 2.5. Payments: 
  
 (a) All accrued interest on the Revolving Credit Loans shall be due and payable weekly on the Funding Date, all accrued interest on the
Term Loan shall be due and payable monthly on the first Business Day of each calendar month and any Unused Line Fees shall be due and payable monthly on the first Funding Date of each month with respect to Unused Line Fees which accrued during the
prior month. 
  
 (b) If at any time the aggregate
principal amount of all Revolving Credit Loans outstanding exceeds the Borrowing Base then in effect, or, the aggregate of all Loans exceeds the Maximum Credit Limit, Borrowers shall immediately make such principal prepayments (subject to the terms
of Sections 2.3(c) and 2.3(d)) of the Revolving Credit Loans or the Term Loan (in the inverse order of maturity), as applicable, as is necessary to eliminate such excess. 
  
 (c) The entire principal balance of all of the Advances, together with all unpaid accrued interest thereon
and the Termination Fee, if any, any unpaid and Unused Line Fees, shall be due and payable on the Maturity Date. 
  
 (d) Subject to the terms of Sections 2.3(c) and 2.3(d) above, Borrowers may prepay the principal of the Revolving Credit Loans on any
Funding Date by giving Lender written notice of the proposed prepayment two Business Days prior to such Funding Date. 
  
 (e) Borrowers may prepay the Term Loan at any time without penalty or premium by giving Lender written notice of the proposed prepayment
five (5) Business Days prior to such prepayment. Borrowers authorize Lender to apply funds in the Collection Account to the applicable principal and interest payments due and payable under the Term Loan which have not been received by Lender, as of
the first Funding Date of the month in which such payment is due. 
  
 (f) If Borrower sells any of the Collateral or if any of the Collateral is lost or destroyed or taken by condemnation, Borrower shall pay to Lender, unless otherwise agreed to by Lender, or as otherwise expressly
authorized by this Agreement, as and when received by 

  

 13 

 
Borrower and as a mandatory prepayment of the outstanding Loans, until paid and satisfied in full, a sum equal to the proceeds (including insurance proceeds)
received by Borrower from such sale, loss or destruction. Any such prepayment (other than from the sale of Accounts) shall be applied first to the Term Loan, in the inverse order of maturity and then to the Revolving Credit Loans. 
  
 (g) All payments and prepayments shall be applied first to
any unpaid interest and fees and thereafter to the principal of the Loans and to other amounts due Lender, in the order provided in Section 2.7(f) hereof. Except as otherwise provided herein, all payments of principal, interest, fees, or other
amounts payable by Borrowers hereunder shall be remitted to Lender in immediately available funds not later than 11:00 a.m. (Eastern Time) on the day due. Whenever any payment is stated as due on a day which is not a Business Day, the maturity of
such payment shall be extended to the next succeeding Business Day and interest shall continue to accrue during such extension. 
  
 2.6. Use of Proceeds: The extensions of credit under and proceeds of the Credit Facility shall be used to repay certain existing indebtedness of
Borrowers and for working capital and general corporate purposes. 
  
 2.7. Lockboxes and Collections: 
  
 (a) Borrowers will enter into lockbox agreements in respect of the Government Lockbox and Commercial Lockbox in such form and with the Lockbox Bank or such other bank as is acceptable to Lender. Borrowers shall instruct the bank maintaining
the Government Lockbox and the Commercial Lockbox to initiate, or accept an initiation from Lender which effectuates, a daily transfer of all available funds to an account of Lender to be designated by Lender (the “Collection
Account”). 
  
 (b) Borrowers will cause
all Collections with respect to all of the Accounts, other than Government Accounts, to be sent directly to the Commercial Lockbox, and will cause all Collections with respect to all of the Government Accounts to be sent directly to the Government
Lockbox (which may be effectuated by electronic transfer directly to the Government Lockbox). In the event that a Borrower receives any Collections that should have been sent to the Commercial Lockbox or the Government Lockbox, such Borrower will,
promptly upon receipt and in any event within one Business Day of receipt, forward such Collections directly to the Commercial Lockbox or Government Lockbox, as applicable, in the form received, and if requested by Lender, promptly notify Lender of
such event. Until so forwarded, such Collections not generated from Government Accounts shall be held in trust for the benefit of Lender. 
  
 (c) No Borrower shall withdraw any amounts from the accounts into which the Collections remitted to the Commercial Lockbox are deposited
nor shall any Borrower change the procedures under the agreements governing the Commercial Lockbox and related accounts. 
  
 (d) Borrowers will cooperate with Lender in the identification and reconciliation on a weekly basis of all amounts received in the
Commercial Lockbox and the 

  

 14 

 
Government Lockbox. If more than five percent (5%) of the Collections since the most recent Funding Date is not identified or reconciled to the satisfaction
of Lender within ten (10) Business Days of receipt, Lender shall not be obligated to make further Loans until such amount is identified or is reconciled to the reasonable satisfaction of Lender, as the case may be. In addition, if any such amount
cannot be identified or reconciled to the satisfaction of Lender, Lender may utilize its own staff or, if it deems necessary, engage an outside auditor, in either case at Borrowers’ expense (which in the case of Lender’s own staff shall be
in accordance with Lender’s then prevailing customary charges (plus expenses), to make such examination and report as may be necessary to identify and reconcile such amount. 
  
 (e) No Borrower will send to or deposit in the Commercial Lockbox or the Government Lockbox any funds other
than payments made with respect to Accounts. 
  
 (f) Prior to the occurrence of an Event of Default, on each Funding Date, Lender shall cause all Collections which have been deposited in the Collection Account since the last Funding Date to be disbursed in the following order of priority:

  
 (i) to Lender, any costs and expenses of
Lender required to be paid or reimbursed by Borrowers under this Agreement or under any of the other Loan Documents; 
  
 (ii) to Lender, an amount equal to the unpaid accrued interest on the aggregate outstanding Advances as of such Funding Date; 

 
 (iii) to Lender, an amount equal to any unpaid accrued
Non-use Fees, and Unused Line Fees which are then due and payable as of such Funding Date; 
  
 (iv) to Lender, the amount of any Borrowing Base Deficiency, if any; 
  
 (v) to Lender, the amount of any Term Loan payments which are then due and payable and then to the aggregate
outstanding amount of the Revolving Credit Loans and any and all other fees due and payable hereunder in such order as Lender may determine in its discretion, and 
  
 (vi) subject to Section 2.3(c) and 2.3(d), to Lender, the amount of any prepayment of principal of which
Borrowers have given notice to Lender in accordance with Section 2.5(d) hereof. 
  
 In addition, promptly upon request of Borrowers, so long as no Event of Default shall have occurred, Lender shall disburse to Borrowers the amount, if any, by which the collected balance in the Collection Account
exceeds the aggregate outstanding principal amount of the Advances and all interest and other amounts that will be payable on the next Funding Date. Following the occurrence of an Event of Default, Lender may apply all Collections to Borrowers’
Obligations in such order as Lender may in its sole discretion determine. 
  
 2.8. Fees: As of the Closing, Lender shall have fully earned a non-refundable commitment fee (“Commitment Fee”) equal to $180,000 (it being acknowledged that Lender has previously received
$25,000 of the Commitment Fee). Borrowers shall pay $135,000 of the Commitment Fee to Lender on the Closing Date and the remaining $20,000 balance of the 

  

 15 

 
Commitment Fee on the earlier of the Term Loan Maturity Date or the repayment or refinancing of the Term Loan. 
  
 SECTION 3. COLLATERAL 
  
 3.1. Description: To secure the payment, promptly when due, and the
punctual performance, of all of the Obligations, each Borrower assigns to Lender, and grants to it a security interest in all of its right, title and interest in and to the following property of such Borrower (collectively, the
“Collateral”); 
  
 (a)
Accounts, Contract Rights, Etc. - All now owned and hereafter acquired, created, or arising accounts (including, without limitation, the Accounts), accounts receivable, notes receivable, contract rights, intellectual property, chattel paper,
documents (including documents of title), supporting obligations, letter of credit rights, commercial tort claims, instruments and letters of credit; 
  
 (b) Inventory - All now owned or hereafter acquired, created or arising inventory of every nature and kind, wherever located;

  
 (c) General Intangibles - All now
owned and hereafter acquired, created or arising general intangibles of every kind and description, including, but not limited, to all existing and future payment intangibles, customer lists, telephone lists and directories, choses in action, loans,
claims, books, records, patents and patent applications, copyrights, trademarks, tradenames, tradestyles, trademark applications, blueprints, drawings, designs and plans, trade secrets, contracts, contract rights, distributorship agreements,
licenses, license agreements, formulae, tax and any other types of refunds, rights (if any) to or in employee or other pension, retirement or similar plans and any assets thereof (to the extent permitted by applicable law and subject always to the
rights of the beneficiaries thereof), or any portion thereof, including, without limitation, refunds for overpayments, distributions upon termination, reversion of any surplus assets or otherwise, returned and unearned insurance premiums, rights and
claims under insurance policies including without limitation, credit insurance and key man life insurance policies, and computer information, software, records and data; 
  
 (d) Equipment - All now owned and hereafter acquired equipment, including, without limitation,
machinery, vehicles, furniture, leasehold improvements and fixtures, wherever located, and all replacements, parts, accessories, accessions, substitutions and additions thereto; 
  
 (e) Deposit Accounts and Other Property - All now existing and hereafter acquired or arising deposit
accounts, Commercial Lockboxes, Governmental Lockboxes, Collection Accounts, investment accounts, commercial paper, investment securities, investment property (including, without limitation, all of HealthEssential’s right, title and interest in
and to the capital stock of NPPA America and all of NPAA America’s right, title and interest in and to the membership interests of NPPA National), and certificates of deposit, of every nature, wherever located, and all funds received thereby,
deposited therein or associated therewith and all documents and records associated therewith; 
  

 16 

 (f) Property in Lender’s Possession - All Property, now or hereafter in
Lender’s possession; 
  
 (g) Other
Property - All other personal Property of Borrower not described above whether now existing or hereafter acquired; and 
  
 (h) Proceeds - The collections and proceeds (including, without limitation, insurance proceeds), whether cash or non-cash, of all
of the foregoing. 
  
 3.2. Lien Documents: At Closing and
thereafter as Lender deems necessary, each Borrower shall execute (if required) and deliver to Lender, or shall have executed (if required) and delivered (all in form and substance reasonably satisfactory to Lender): 
  
 (a) Financing Statements - Financing statements
pursuant to the UCC, which Lender may file in the jurisdiction where Borrower is organized and in any jurisdiction where any Collateral is or may be located and in any other jurisdiction that Lender deems appropriate; and 
  
 (b) Other Agreements - Any other agreements,
documents, instruments and writings, including, without limitation, security agreements, deposit account control agreements, deeds of trust and assignment agreements, reasonably required by Lender to evidence, perfect or protect Lender’s liens
and security interest in the Collateral or as Lender may reasonably request from time to time, including, without limitation, a waiver agreement from each landlord with respect to any real property of Borrower, in form and substance satisfactory to
Lender. 
  
 3.3. Other Actions: 
  
 (a) In addition to the foregoing,. each Borrower shall do
anything further that may be lawfully and reasonably required by Lender to perfect Lender’s security interests and to effectuate the intentions and objectives of this Agreement, including, but not limited to, the execution (if required) and
delivery of continuation statements, amendments to financing statements, security agreements, contracts and any other documents required hereunder. At Lender’s request, each Borrower shall also immediately deliver (with execution by such
Borrower of all necessary documents or forms to reflect Lender’s security interest therein) to Lender, all items for which Lender must or may receive possession to obtain a perfected security interest. 
  
 (b) Lender is hereby authorized to file financing statements
naming Borrower as debtor, in accordance with the Uniform Commercial Code as adopted in the State of New Jersey, and if necessary, to the extent applicable, to otherwise file financing statements without Borrower’s signature if permitted by
law. Borrower hereby authorizes Lender to file all financing statements and amendments to financing statements describing the Collateral in any filing office as Lender, in its sole discretion may determine, including financing statements listing
“All Assets” in the Collateral description therein as well as language indication that the acquisition by a third party of any right, title or interest in or to the Collateral without Lender’s consent shall be a violation of
Lender’s rights. Borrower agrees to comply with the requirements of all federal and state laws and requests of Lender in order for Lender to have and maintain a valid and 

  

 17 

 
perfected first security interest in the Collateral including, without limitation, executing and causing any other person to execute such documents as Lender
may require to obtain Control (as defined in the UCC) over all deposit accounts, electronic chattel paper, letter-of-credit rights and investment property. 
  
 3.4. Searches: Lender shall, prior to or at Closing, and thereafter as Lender may reasonably request from time to time, at Borrowers’ expense,
obtain the following searches (the results of which are to be consistent with the warranties made by Borrowers in this Agreement): 
  
 (a) UCC Searches: With respect to each Borrower, UCC searches with the Secretary of State and local filing office of each state
where such Borrower maintains its chief executive office, a place of business, or assets; 
  
 (b) Judgments, Etc.: Judgment, federal tax lien and corporate tax lien searches against each Borrower, in all applicable filing
offices of each state searched under subparagraph (a) above. 
  
 3.5. Good Standing Certificates: Borrowers shall, prior to or at Closing and at its expense, obtain and deliver to Lender good standing or equivalent certificates showing each Borrower to be in good standing in its state of
incorporation or organization and authorized to transact business as a foreign corporation in each other state or foreign country in which it is doing and presently intends to do business for which such Borrower’s failure to be so qualified
might have Material Adverse Effect. 
  
 3.6. Filing Security
Agreement: A carbon, photographic or other reproduction or other copy of this Agreement or of a financing statement is sufficient as and may be filed in lieu of a financing statement. 
  
 3.7. Power of Attorney: Each of the officers of Lender is hereby irrevocably made, constituted and appointed the true
and lawful attorney for each Borrower (without requiring any of them to act as such) with full power of substitution to do the following (such power to be deemed coupled with an interest): (a) endorse the name of such Borrower upon any and all
checks, drafts, money orders and other instruments for the payment of monies that are payable to such Borrower and constitute collections on the Collateral; (b) execute in the name of such Borrower any financing statements, schedules, assignments,
instruments, documents and statements that such Borrower is obligated to give Lender hereunder or is necessary to perfect Lender’s security interest or lien in the Collateral; (c) to verify validity, amount or any other matter relating to the
Collateral by mail, telephone, telecopy or otherwise; and (d) do such other and further acts and deeds in the name of such Borrower that Lender may reasonably deem necessary or desirable to enforce its right with respect to any Collateral.

  
 3.8. Collateral Pledge Agreement: Borrowers shall cause
to be executed collateral pledge agreements in favor of Lender (each a “Collateral Pledge Agreement”) in form and substance satisfactory to Lender, pursuant to which (a) each Pledgor shall pledge its right, title and interest in and to the
capital stock of HealthEssentials, (b) HealthEssentials shall pledge its right, title and interest in and to the capital stock of NPPA America and (c) NPPA America shall pledge its right, title and interest in and to the membership interests of NPPA
National. 
  

 18 

 SECTION 4. CLOSING AND CONDITIONS PRECEDENT TO ADVANCES 
  
 Closing under this Agreement and the making of each Loan are subject to the
following conditions precedent (all documents to be in form and substance satisfactory to Lender and Lender’s counsel): 
  
 4.1. Resolutions, Opinions, and Other Documents: Prior to the Closing, Borrowers shall have delivered to Lender the following: 
  
 (a) this Agreement, the Revolving Credit Note and the Term
Note, all properly executed; 
  
 (b) each
document and agreement required to be executed under any provision of this Agreement or any of the other Loan Documents; 
  
 (c) certified copies of (i) resolutions of each Borrower’s board of directors, general partners, members or managers, as applicable,
authorizing the execution of this Agreement, the Revolving Credit Note, the Term Note and each document required to be delivered by any Section hereof and (ii) each Borrower’s Articles of Incorporation and By-laws, Certificate of Organization
and Operating Agreement or partnership agreement, as applicable; 
  
 (d) incumbency certificates identifying all Authorized Officers of each Borrower, with specimen signatures; 
  
 (e) a written opinion of Borrowers’ independent counsel addressed to Lender in the form attached hereto as Exhibit 4.1, which
shall include without limitation, an opinion that Lender has a perfected security interest in the Collateral; 
  
 (f) payment by Borrowers of all Expenses associated with the Credit Facility incurred to the Closing Date and the Commitment Fee;

  
 (g) the Lockbox Agreements required pursuant
to Section 2.7 hereof; 
  
 (h) Uniform Commercial
Code, judgment, federal and state tax lien searches pursuant to Section 3.4 above; 
  
 (i) an initial borrowing base certificate dated the Closing Date evidencing that after giving effect to the initial Advance hereunder and
payment (or consideration, without deferral) of all closing costs, fees and Expenses required hereunder and all accounts payable and other current obligations as of that lime that are past their respective due dates, Borrowers have Borrowing Base
Excess in an amount equal to at least $500,000 as of the Closing Date; 
  
 (j) payoff letter and Lender shall have received releases from all Persons having a security interest or other interest in the Collateral, together with all UCC-3 terminations or partial releases necessary to
terminate such Persons’ interests in the Collateral; 
  
 (k) Lender shall have received copies of each of the accreditations, licenses, certifications required by Section 5.3 below, and all Contracts requested by Lender; 
  

 19 

 (l) projections, forecast of financial operations and budget for calendar year 2003;

  
 (m) the fully executed Subordination
Agreements; 
  
 (n) the fully executed Pledge
Agreements; 
  
 (o) Borrowers’ consolidated
financial statements as of the most recent month end prior to the Closing Date; 
  
 (p) Borrower’s audited financial statements for the fiscal year ending December 31, 2000; 
  
 (q) Landlord Waivers with respect to the locations of
Borrowers’ chief executive office and each other location where any books and records may be kept, 
  
 (r) INTENTIONALLY OMITTED; 
  
 (s) INTENTIONALLY OMITTED; 
  
 (t) criminal background checks on management of Borrowers; 
  
 (u) evidence of Property and Casualty Insurance (on Acord Form 27) naming Lender as Lender Loss Payable;

  
 (v) all other documents, information and
reports reasonably required and/or requested to be executed and/or delivered by Borrowers under any provision of this Agreement or any of the Loan Documents; and 
  
 (w) payment of all fees and Expenses (including attorney’s fees). 
  
 4.2. Additional Preconditions to Loans: Lender’s obligation to
make the Term Loan and the initial Revolving Credit Loan and each subsequent Revolving Credit Loan shall be subject to the satisfaction of each of the following conditions: 
  
 (a) After giving effect to each such Revolving Credit Loan: 
  
 (i) the aggregate principal amount of all Revolving Credit
Loans outstanding shall not exceed the Borrowing Base then in effect and the aggregate amount of all Loans outstanding shall not exceed the Maximum Credit Limit; 
  
 (ii) the ENV of all Eligible Accounts shall not exceed any of the Concentration Limits; and 
  
 (iii) the amount of outstanding Advances supported by the
ENV of all Eligible Accounts included in the Borrowing Base which have not been billed shall at no time exceed an amount equal to fifty percent (50%) of outstanding Advances supported by the ENV of all Eligible Accounts included in the Borrowing
Base which have been billed; provided that 

  

 20 

 
Eligible Accounts comprised of Government Accounts which have not been billed due to a Borrower not yet obtaining an appropriate provider identification
number for the nurse practitioner providing the related services and/or goods shall at no time, in the aggregate, exceed an amount equal to thirty-five percent (35%) of outstanding Advances supported by the ENV of all Eligible Accounts included in
the Borrowing Base which have been billed. 
  
 (b) All representations and warranties of Borrowers shall be deemed reaffirmed as of the making of such Loan and shall be true both before and after giving effect to such Loan, and no Event of Default or Unmatured Event of Default shall
have occurred and be continuing, Borrowers shall be in compliance with this Agreement and the other Loan Documents, and Borrowers shall have certified such matters to Lender. 
  
 (c) Each Borrower shall have signed and delivered to Lender notices, in the form of Exhibit 4.2A,
directing the Obligors (other than Obligors with respect to Government Accounts) to make payment to the Commercial Lockbox; and, in the form of Exhibit 4.2B, directing the Obligors with respect to Government Accounts to make payment to the
Government Lockbox. 
  
 (d) Borrowers shall have
taken all actions necessary to permit Lender to record all of the Eligible Accounts in Lender’s Value Track SystemTM. 
  
 (e) The lockbox arrangements required by Section 2.7 hereof shall be in effect, and the amounts received in the lockboxes shall have been
identified or reconciled to Lender’s satisfaction, as required by Section 2.7(d) hereof. 
  
 (f) Borrowers shall have taken such other actions, including the delivery of documents and opinions as Lender may reasonably request.

  
 4.3. Absence of Certain Events: As of the Closing Date
and prior to each Loan, no Event of Default or Unmatured Event of Default hereunder shall have occurred and be continuing. 
  
 4.4. Compliance with this Agreement: Borrowers shall have performed and complied with all agreements, covenants and conditions contained herein
including, without limitation, the provisions of Sections 6 and 7 hereof, which are required to be performed or complied with by Borrowers before or at the Closing Date and as of the date of each Advance. 
  
 4.5. Closing Certificate: Lender shall have received a certificate
dated the Closing Date and signed by the chief financial officer of Borrowers certifying that (a) all of the conditions specified in this Section 4 have been fulfilled, (b) there has not occurred any material adverse change in the operations,
conditions (financial or otherwise) and projections (financial or otherwise) of Borrowers since the January 31, 2002 balance sheet and income statement of Borrowers or from any additional information provided to Lender, and (c) the information
provided to Lender concerning Borrowers, their financial conditions, projections and liabilities contain no material omission or inaccuracy. 
  

 21 

 4.6. Closing: Subject to the conditions of this Section 4, the Credit Facility shall be made
available on the date (“Closing Date”) this Agreement is executed and all of the conditions contained in Section 4.1 hereof are completed (“Closing”). 
  
 4.7. Non-Waiver of Rights: By completing the Closing hereunder, or by making Advances hereunder, Lender does not
thereby waive a breach of any warranty, representation or covenant made by Borrowers hereunder or under any agreement, document, or instrument delivered to Lender or otherwise referred to herein, and any claims and rights of Lender resulting from
any breach or misrepresentation by Borrowers are specifically reserved by Lender. 
  
 SECTION 5. REPRESENTATIONS AND WARRANTIES 
  
 To induce Lender to complete the Closing and make the Loans under the Credit Facility to Borrowers, Borrowers warrant and represent to Lender that: 
  
 5.1. Organization and Validity: 
  
 (a) Each Borrower is duly organized as either a corporation or limited liability company and validly
existing under the laws of its state of incorporation or formation, is duly qualified, is validly existing and in good standing and has lawful power and authority to engage in the business it conducts in each state and other jurisdiction where the
nature and extent of its business requires qualification, except where the failure to so qualify would not have a Material Adverse Effect. A list of the jurisdiction in which each Borrower is organized as well as a list of all states and other
jurisdictions where each Borrower is qualified to do business is attached hereto as Schedule 2 and made a part hereof. 
  
 (b) The making and performance of this Agreement and related agreements, and each document required by any Section hereof will not violate
any law, government rule or regulation, or the charter, minutes, partnership agreement, operating agreement or bylaw provisions of any Borrower violate or result in a default (immediately or with the passage of time) under any contract, agreement or
instrument to which Borrower is a party, or by which a Borrower is bound. No Borrower is in violation of nor has knowingly caused any Person to violate any term of any agreement or instrument to which it or such Person is a party or by which it may
be bound or of its charter, minutes, partnership agreement, operating agreement or bylaws, which violation could have a Material Adverse Effect. 
  
 (c) Each Borrower has all requisite power and authority to enter into and perform this Agreement and the other Loan Documents and to incur
the obligations herein provided for, and has taken all proper and necessary corporate action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents. 
  
 (d) This Agreement, the Revolving Credit Note, the Term Note
and the other Loan Documents required to be executed and delivered by Borrower hereunder, when delivered, will be valid and binding upon all Borrowers a party thereto and enforceable in accordance with their respective terms. 
  
 5.2. Places of Business: Each Borrower’s chief executive office
and the only other places of business of each such Borrower are located at the corresponding addresses set forth on 

  

 22 

 
Schedule 2. Except as disclosed on Schedule 2: (i) no Borrower has been organized in any other jurisdiction nor changed any location in the
last five years, (ii) no Borrower has changed its name in the last five years, and (iii) during such period no Borrower used, nor does any Borrower now use, any fictitious or trade name. 
  
 5.3. Operation of Facilities: Each Borrower owns or leases and operates facilities to provide health care services
and (a) maintains Medicare and Medicaid provider status and is the holder of the provider identification numbers identified on Schedule 2 hereto, all of which are current and valid and such Borrower has not allowed, permitted, authorized or
caused any other Person to use any such provider identification number, and (b) has obtained all material licenses, accreditations, certificates of need and approvals of governmental authorities and all other Persons necessary for such Borrower to
own its assets, to carry on its business, to execute, deliver and perform the Loan Documents, and to receive payments from the Obligors and, if organized as a not-for-profit entity, has and maintains its status, if any, as an organization exempt
from federal taxation under Section 501(c)(3) of the Internal Revenue Code. No Borrower has been notified by any such governmental authority or other person during the immediately preceding 24 month period that such party has rescinded or not
renewed, or intends to rescind or not renew, any such license or approval. 
  
 5.4. Pending Litigation: There are no judgments or judicial or administrative orders, proceedings or investigations (civil or criminal) pending, or to the knowledge of any Borrower, threatened, against any
Borrower in any court or before any governmental authority or arbitration board or tribunal, other than as set forth on Schedule 2 hereto, none of which, if adversely determined would have a Material Adverse Effect. No Borrower is in default
with respect to any order of any court, governmental authority, regulatory agency or arbitration board or tribunal. No Shareholder or executive officer of any Borrower has been indicted or convicted in connection with or is engaging in any criminal
conduct, or is currently subject to any lawsuit or proceeding or under investigation in connection with any anti-racketeering or other conduct or activity. 
  
 5.5. Medicaid and Medicare Cost Reporting: The Medicaid and Medicare cost reports of each facility and of the home office of each Borrower for all
cost reporting periods have been submitted when and as required to (i) as to Medicaid, the state agency, or other HCFA-designated agent or agent of such state agency, charged with such responsibility or (ii) as to Medicare, the Medicare intermediary
or other HCFA-designated agent charged with such responsibility. No cost report indicates and no audit has resulted in any determination that any Borrower was overpaid for Medicaid and Medicare by $100,000 or more in any of the most recent three
fiscal years covered by such audit. 
  
 5.6. Title to
Collateral: Each Borrower has good and marketable title to all the Collateral it respectively purports to own, free from liens, claims and encumbrances, except those of Lender and those listed on Schedule 2 hereto (“Permitted
Liens”). 
  
 5.7. Governmental Consent. Neither the
nature of any Borrower or of any Borrower’s business or Property, nor any relationship between any Borrower and any other Person, nor any circumstance affecting any Borrower in connection with the issuance or delivery of the Revolving Credit
Note, or the Term Note is such as to require a consent, approval or authorization of, or filing, registration or qualification with, any governmental authority on the 

  

 23 

 
part of any such Borrower in connection with the execution and delivery of this Agreement or the issuance or delivery of the Revolving Credit Note or other
Loan Documents. 
  
 5.8. Taxes: All tax returns required to
be filed by Borrowers, or any of them, in any jurisdiction have in fact been filed, and all taxes, assessments, fees and other governmental charges upon Borrowers, or any of them, or upon any of their respective Property, income or franchises, which
are shown to be due and payable on such returns have been paid, except for those taxes being contested in good faith with due diligence by appropriate proceedings. No Borrower is aware of any proposed additional tax assessment or tax to be assessed
against or applicable to any Borrower that might have a Material Adverse Effect. 
  
 5.9. Financial Statements: Borrowers’ annual audited consolidated and consolidating balance sheet as of December 31, 2000, accompanied by reports thereon from Borrowers’ independent certified public
accountants, and the monthly consolidated balance sheet as of January 31, 2002 and the related income statements and statements of cash flows as of such dates (complete copies of which have been delivered to Lender), have been prepared in accordance
with GAAP and present fairly, accurately and completely the financial position of Borrowers as of such dates and the results of their operations for such periods. The fiscal year for each Borrower currently ends on the date set forth on Schedule
2 hereto. Each Borrower’s federal tax identification number is as set forth on Schedule 2 hereto. 
  
 5.10. Full Disclosure: Neither the financial statements referred to in Section 5.9, nor this Agreement or related agreements and documents or any
written statement furnished by any Borrower to Lender in connection with the negotiation of the Credit Facility and contained in any financial statements or documents relating to any Borrower contain any untrue statement of a material fact or omit a
material fact necessary to make the statements contained therein or herein not misleading. 
  
 5.11. Guarantees, Contracts, etc: 
  
 (a) No Borrower owns nor holds equity or long term debt investments in, has any outstanding advances to, or serves as guarantor, surety or accommodation maker for the obligations of, or has any outstanding borrowings
from or other Indebtedness owing to, any Person except as described in Schedule 2 hereto. 
  
 (b) No Borrower is a party to any contract or agreement, or subject to any charter or other corporate restriction, which would be
reasonably likely to cause a Material Adverse Effect. 
  
 (c) Except as otherwise specifically provided in this Agreement, no Borrower has agreed or consented to cause or permit any of the Collateral whether now owned or hereafter acquired to be subject in the future (upon the happening of a
contingency or otherwise) to a lien or encumbrance not permitted by this Agreement. 
  
 5.12. Compliance with Laws: 
  
 (a) No Borrower is in violation of, has received written notice that it is in violation of, or has knowingly caused any Person to violate, any applicable statute, regulation or 

  

 24 

 
ordinance of the United States of America, or of any state, city, town, municipality, county or of any other jurisdiction, or of any agency, or department
thereof, (including without limitation, environmental laws and regulations), which may materially and adversely affect its business, financial condition, Property or prospects. 
  
 (b) Each Borrower is current with all reports and documents required to be filed with any state or federal
securities commission (if any) or similar agency and is in full compliance in all material respects with all applicable rules and regulations of such commissions. 
  
 5.13. Other Associations: No Borrower is engaged in nor has an interest in any joint venture or partnership with any
other Person or has any Subsidiaries or Affiliates, except as described on Schedule 2 hereto. 
  
 5.14. Environmental Matters: Except as disclosed on Schedule 2 hereto, no Borrower has knowledge: 
  
 (a) of the presence of any Hazardous Substances on any of
the real property where any Borrower conducts operations or has its personal property, or 
  
 (b) of any on-site spills, releases, discharges, disposal or storage of Hazardous Substances that have occurred or are presently occurring
on any of such real property or where any Collateral is located, or 
  
 (c) of any spills, releases, discharges or disposal of Hazardous Substances that have occurred, are presently occurring on any other real property as a result of the conduct, action or activities of any Borrower.

  
 5.15. Capital Stock and Equity Interests: The
authorized and outstanding shares of capital stock and other equity interests of each Borrower is as set forth on Schedule 2 hereto. All of the capital stock and equity interests of each Borrower have been duly and validly authorized and
issued and is fully paid and non-assessable and have been sold and delivered to the holders thereof in compliance with, or under valid exemption from, all Federal and state laws and the rules and regulations of all regulatory bodies thereof
governing the sale and delivery of securities. Except for the rights and obligations set forth in Schedule 2, there are no subscriptions, warrants, options, calls, commitments, rights or agreements by which any Borrower or any of the
Shareholders of any Borrower is bound relating to the issuance, transfer, voting or redemption of shares of its capital stock, membership units or any pre-emptive rights held by any Person with respect to the shares of capital stock or membership
units of any such Borrower. Except as set forth in Schedule 2, no Borrower has issued any securities convertible into or exchangeable for shares of its capital stock or membership units or any options, warrants or other rights to acquire such
shares or membership units or securities convertible into or exchangeable for such shares. 
  
 5.16. Lockboxes: The Government Lockbox and the Commercial Lockbox are the only lockbox accounts maintained by Borrowers, and each Obligor of an Eligible Account has been directed by the notice attached as
Exhibit 4.2A to this Agreement, and is required to, remit all payments with respect to such Account for deposit in the Commercial Lockbox (other than the 

  

 25 

 
Obligors of Government Accounts which have been directed by the notice attached as Exhibit 4.2B to this Agreement to remit all payments with respect
to such Accounts for deposit in the Government Lockbox). 
  
 5.17.
Borrowing Base Reports: Each Borrowing Base Report signed by Borrowers, on behalf of Borrowers, contains and will contain an accurate summary of all Eligible Accounts of Borrowers contained in the Borrowing Base as of its date. 
  
 5.18. Security Interest: Each Borrower has granted to Lender a valid,
perfected first priority and only security interest in the Accounts and the other Collateral subject to no other liens, claims or encumbrances, other than Permitted Liens. 
  
 5.19. Accounts: 
  
 (a) No Borrower has done nor shall do anything to interfere with the collection of the Accounts and no Borrower shall amend or waive the
terms or conditions of any Account or any related Contract in any material adverse manner without Lender’s prior written consent (which consent shall not be unreasonably withheld or delayed). 
  
 (b) Each Borrower has made and will continue to make all
payments to Obligors necessary to prevent any Obligor from offsetting any earlier overpayment to such Borrower against any amounts such Obligor owes on an Account. 
  
 5.20. Pension Plans: Each pension or profit sharing plan, if any, to which any Borrower is a party has been and will
be funded in accordance with the obligations of such Borrower(s) set forth in such plan. 
  
 5.21. Representations and Warranties for each man: As of each date that Borrowers shall request any Loan, each Borrower shall be deemed to make, with respect to each Eligible Account included in the Borrowing
Base, each of the following representations and warranties: 
  
 (a) Such Account satisfies each of the conditions of an Eligible Account. 
  
 (b) All information relating to such Account that have been delivered to Lender are true and correct in all material respects. With
respect to each such Account that has been billed, the corresponding Borrower has delivered to the Obligor all requested supporting claim documents and all information set forth in the bill and supporting claim documents is true, complete and
correct in all material respects. 
  
 (c) There
is no lien or adverse claim in favor of any third party, nor any filing against any Borrower, as debtor, covering or purporting to cover any interest in such Account. 
  
 (d) Such Account is (i) payable in an amount not less than its Estimated Net Value by the Obligor identified
by Borrowers as being obligated to do so, and is recognized as such by the Obligor, (ii) the legally enforceable obligation of such Obligor, and (iii) an account receivable or general intangible within the meaning of the UCC of the state in which
the corresponding Borrower has its chief executive office, or is a right to payment under a policy of insurance or proceeds thereof, and is not evidenced by any instrument or chattel paper. There is 

  

 26 

 
no payor other than the Obligor identified by Borrowers as the payor primarily liable on such Account. 
  
 (e) No such Account (i) requires the approval of any third
person for such Account to be assigned to Lender hereunder, (ii) is subject to any legal action, proceeding or investigation (pending or threatened), dispute, set-off, counterclaim, defense, abatement, suspension, deferment, deductible, reduction or
termination by the Obligor, or (iii) is past, or within 180 days of, the statutory limit for collection applicable to the Obligor. 
  
 (f) Such Borrower does not have any guaranty of, letter of credit support for, or collateral security for, such Account, other than any
such guaranty, letter of credit or collateral security as has been assigned to Lender. 
  
 (g) The services constituting the basis of such Account (i) were medically necessary for the patient and (ii) at the time such services
were rendered, were fully covered by the insurance policy or Contract obligating the applicable Obligor to make payment with respect to such Account (and the corresponding Borrower has verified such determination), and (iii) the patient received
such services in the ordinary course of such Borrower’s business. 
  
 (h) The fees and charges charged for the services constituting the basis for such Account were when rendered and are currently consistent with (i) the usual, customary and reasonable fees charged by Borrowers or (ii)
pursuant to negotiated fee contracts, or imposed fee schedules, with or by the applicable Obligors. 
  
 (i) The Obligor with respect to such Account is located in the United States, and is (i) a party which in the ordinary course of its
business or activities agrees to pay for healthcare services received by individuals, including, commercial insurance companies and non-profit insurance companies issuing health, or other types of insurance, employers or unions, self-insured
healthcare organizations, preferred provider organizations, and health insured, prepaid maintenance organizations, (ii) a state, an agency or instrumentality of a state or a political subdivision of a’ state, or (iii) the United States or an
agency or instrumentality of the United States. 
  
 (j) The insurance policy or Contract obligating an Obligor to make payment (i) does not prohibit the transfer of such payment obligation from the patient to the corresponding Borrower and cu) is and was in full force and effect and
applicable to the patient at the time the services constituting the basis for such Account were performed. 
  
 (k) The representations and warranties made by Borrowers in the Loan Documents and all financial or other information delivered to Lender
with respect to Borrowers and such Account do not contain any untrue statement of material fact or omit to state a material fact necessary to make the statement made not misleading. 
  
 (l) If requested by Lender, a copy of each related Contract to which each Borrower is a party has been
delivered to Lender unless any such Borrower shall have, prior to the related Funding Date, certified in an Officer’s Certificate that such delivery is prohibited by the terms of the Contract or by law, and the circumstances of such
prohibition. 
  

 27 

 (m) If such Account has not been billed, the services giving rise to such Account have
been properly recorded in the corresponding Borrower’s accounting system. 
  
 (n) Such Account has an Estimated Net Value which, when added to the Estimated Net Value of all other Accounts owing by the same Obligor
and which constitute Eligible Accounts hereunder, does not exceed any applicable Concentration Limit. 
  
 (o) Neither such Account nor the related Contract contravenes any laws, rules or regulations applicable thereto (including, without
limitation, laws, rules and regulations relating to usury, consumer protection, truth-in-lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy) and no party to such related Contract
is in violation of any such law, rule or regulation in connection with such Contract. 
  
 (p) As of the applicable Funding Date, to the best of Borrowers’ knowledge, no Obligor on such Account is bankrupt, insolvent, or is
unable to make payment of its obligations when due, and no other fact exists which would cause any Borrower reasonably to expect that the amount billed to the related Obligor for such Account will not be paid in full when due. 
  
 5.22. Interrelatedness of Borrowers: The business operations of each
Borrower are interrelated and complement one another, and such companies have a common business purpose, with intercompany bookkeeping and accounting adjustments used to separate their respective Properties, liabilities and transactions. To permit
their uninterrupted and continuous operation, such companies now require and will from time to time hereafter require funds for general business purposes. The proceeds of Advances under the Credit Facility will directly or indirectly benefit each
Borrower hereunder severally and jointly, regardless of which Borrower requests or receives part or all of the proceeds of such Loan. 
  
 5.23. Commercial Tort Claims: Borrower has no commercial tort claims except as shown on Schedule 2 hereto. 
  
 5.24. Letter of Credit Rights: Borrower has no letter of credit rights
except as shown on Schedule 2 hereto. 
  
 5.25.
Intellectual Property: All trademarks, service marks, patents or copyrights which Borrower uses, plans to use or has a right to use are shown on Schedule 2 attached hereto and made part hereof and Borrower is the sole owner of such
Property except to the extent any other Person has claims or rights in such Property, as such claims and rights are shown on Schedule 2. No Borrower is in violation of any rights of any other Person with respect to such Property. Except as
shown on Schedule 2 attached hereto and made part hereof, (i) no Borrower requires any copyrights, patents, trademarks or other intellectual property, or any license(s) to use any patents, trademarks or other intellectual property in order to
provide services to its customers or to bill Obligors and collect therefrom, in the ordinary course of business; and (ii) Lender will not require any copyrights, patents, trademarks or other intellectual property or any licenses to use the same in
order to provide such services or bill and collect the Accounts, after the occurrence of an Event of Default. 
  

 28 

 SECTION 6. BORROWER’S AFFIRMATIVE COVENANTS 
  
 Each Borrower covenants that until all of Borrowers’ Obligations to
Lender are paid and satisfied in full and the Credit Facility has been terminated: 
  
 6.1. Payment of Taxes and Claims: Each Borrower shall pay, before they become delinquent, all taxes, assessments and governmental charges or levies imposed upon it or upon such Borrower’s Property, except
for those being contested in good faith with due diligence by appropriate proceedings and for which appropriate reserves have been maintained under GAAP. 
  
 6.2. Maintenance of Insurance, Financial Records and Corporate Existence: 
  
 (a) Property Insurance - Borrowers shall maintain or cause to be maintained insurance on their
Property against fire, flood, casualty and such other hazards in such amounts, with such deductibles and with such insurers as are customarily used by companies operating in the same industry as Borrowers. The policies of all such casualty insurance
shall contain standard Lender Loss Payable and additional insured clauses issued in favor of Lender pursuant to which all losses thereunder shall be paid to Lender as Lender’s interests may appear. Such policies shall expressly provide that the
requisite insurance cannot be altered or canceled without thirty (30) days prior written notice to Lender and shall insure Lender notwithstanding the act or neglect of the insured. At or prior to Closing, Borrowers shall furnish Lender with
insurance certificates certified as true and correct and being in full force and effect as of the Closing Date or such other evidence of insurance as Lender may require. In the event Borrowers fail to procure or cause to be procured any such
insurance or to timely pay or cause to be paid the premium(s) on any such insurance, Lender may do so for Borrowers, but Borrowers shall continue to be liable for the same. Borrowers hereby appoint Lender as their attorney-in-fact, exercisable at
Lender’s option, to endorse any check which may be payable to any Borrower in order to collect the proceeds of such insurance. 
  
 (b) Public Liability and Business Interruption Insurance - Borrowers shall maintain, and shall deliver to Lender upon Lender’s
request evidence of public liability and business interruption insurance in such amounts as is customary for companies in the same or similar businesses located in the same or similar area. 
  
 (c) Financial Records - Borrowers shall keep current
and accurate books of records and accounts in which full and correct entries will be made of all of its business transactions, and will reflect in its financial statements adequate accruals and appropriations to reserves, all in accordance with
GAAP. No Borrower shall change its respective fiscal year end date without the prior written notice to Lender. 
  
 (d) Existence and Rights - Each Borrower shall do (or cause to be done) all things necessary to preserve and keep in full force and
effect its legal existence, good standing, rights and franchises. 
  
 (e) Compliance with Laws - Each Borrower shall be in compliance with any and all laws, ordinances, governmental rules and regulations, and court or administrative orders or decrees to which it is subject,
whether federal, state or local, (including without limitation 

  

 29 

 
environmental or environmental-related laws, statutes, ordinances, rules, regulations and notices), and shall obtain and maintain any and all licenses,
permits, franchises, certificates of need or other governmental authorizations necessary to the ownership of its Property or to the conduct of its businesses, which violation or failure to obtain may materially adversely affect the business,
Property, financial conditions or prospects of such Borrower, the Collateral, or Lender’s rights with respect to the Collateral. 
  
 6.3. Business Conducted: Each Borrower shall continue in the business presently operated by it using its best efforts to maintain its customers. No
Borrower shall engage, directly or indirectly, in any material respect in any line of business substantially different from the businesses conducted by it immediately prior to the Closing Date. 
  
 6.4. Litigation: Borrowers shall give prompt notice to Lender of any
litigation claiming in excess of $50,000 from Borrowers, or any of them, or which may otherwise have a Material Adverse Effect. 
  
 6.5. Taxes: Borrowers shall pay all taxes (other than taxes based upon or measured by Lender’s income or revenues), if any, in connection with
the Loans and/or the recording of any financing statements or other Loan Documents. The Obligations of Borrowers under this section shall survive the payment of Borrowers’ Obligations under this Agreement and the termination of this Agreement.

  
 6.6. Financial Covenants: Borrowers shall maintain at
all times a Debt Service Coverage Ratio of at least 1.10 to I for the fiscal quarter ending June 30, 2002, 1.20 to 1 for the fiscal quarter ending September 30, 2002 and 1.25 to 1 for each fiscal quarter thereafter, as reflected and computed from
their financial statements. 
  
 6.7. Financial and Business
Information: Borrowers shall deliver to Lender the following (all to be in form and substance satisfactory to Lender): 
  
 (a) Financial Statements and Collateral Reports: 
  
 (i) as soon as available but in any event, within one hundred twenty days (120) after the end of each fiscal
year of Borrowers, deliver audited financial statements of Borrowers for such year which present fairly Borrowers’ financial condition including the balance sheet of Borrowers as at the end of such fiscal year and a statement of cash flows and
income statement for such fiscal year, all on a consolidated and consolidating basis, setting forth in the consolidated statements in comparative form, the corresponding figures as at the end of and for the previous fiscal year, all in reasonable
detail, including all supporting schedules, and audited by independent public accountants of recognized standing, selected by Borrowers and reasonably satisfactory to Lender, and prepared in accordance with GAAP, provided, however, Borrowers shall
provide such audited financial statements for the fiscal year ending December 31, 2001 on or after June 15, 2002; 
  
 (ii) as soon as available but in any event within forty-five (45) days after the end of each fiscal quarter and each fiscal year, deliver
to Lender Borrowers’ internally prepared quarterly consolidated and consolidating financial statements along with year to date 

  

 30 

 
information, including balance sheet, income statement and statements of cash flows with respect to the periods measured; 
  
 (iii) promptly upon request, deliver such other information
concerning Borrowers as Lender may from time to time request, including Medicare and Medicaid cost reports and audits, annual reports, security law filings and reports to any security holders; and 
  
 (iv) at least thirty (30) days prior to the last day of each
fiscal year annual consolidated and consolidating projections for Borrowers, including balance sheet income statements and statements of cash flow and Borrowing Base Availability projections, all prepared on a monthly basis; 
  
 (v) contemporaneously with delivery of the annual financial
statements referred to in clause (i) above, a good standing certificate from each Borrower’s jurisdiction of organization evidencing that such Borrower remains in good standing in, and continues to be organized under the laws of, such
jurisdiction; 
  
 (vi) and such other data,
reports, statements and information (financial or otherwise), as Lender may reasonably request. 
  
 (b) Notice of Event of Default - promptly upon becoming aware of the existence of any condition or event which constitutes a
default or an Event of Default or Unmatured Event of Default under this Agreement, a written notice specifying the nature and period of existence thereof and what action Borrowers are taking (and propose to take) with respect thereto; 
  
 (c) Notice of Claimed Default - promptly upon receipt
by any Borrower, notice of default, oral or written, given to such Borrower by any creditor for borrowed money in excess of $50,000. 
  
 6.8. Officers’ Certificates: Along with the set of financial statements delivered to Lender at the end of each fiscal quarter and fiscal year
pursuant to Section 6.7(a) hereof, deliver to Lender a certificate (in the form of Exhibit 6.8 attached hereto and made a part hereof) from the chief financial officer of Borrowers setting forth: 
  
 (a) Covenant Compliance - the information (including
detailed calculations) required in order to establish whether Borrowers are in compliance with the requirements of Sections 6.6 as of the end of the period covered by the financial statements then being furnished (and any exhibits appended thereto)
under Section 6.7; and 
  
 (b) Event of
Default - that the signer in his capacity as an officer, manager and/or member of Borrowers has reviewed the relevant terms of this Agreement, and has made (or caused to be made under his supervision) a review of the transactions and conditions
of Borrowers from the beginning of the accounting period covered by the financial statements being delivered therewith to the date of the certificate, and that such review has not disclosed the existence during such period of any condition or event
which constitutes an Event of Default or Unmatured Event of Default or if any such condition or event existed or exists, specifying the 

  

 31 

 
nature and period of existence thereof and what action Borrowers have taken or propose to take with respect thereto. 
  
 6.9. Inspection: Borrowers will permit any of Lender’s officers
or other representatives to visit and inspect any Borrower’s location(s) or where any Collateral is kept during regular business hours to examine and audit all of such Borrower’s books of account, records, reports and other papers, to make
copies and extracts therefrom and to discuss its affairs, finances and accounts with its officers, employees and independent certified public accountants and attorneys. Borrowers shall pay to Lender all reasonable fees based on standard rates for
such inspections, currently at the rate of $800 per day, per person (plus out-of-pocket expenses). 
  
 6.10. Tax Returns and Reports: At Lender’s request from time to time, Borrowers shall promptly furnish Lender with copies of the annual
federal and state income tax returns of Borrowers. 
  
 6.11.
Material Adverse Developments: Each Borrower agree that immediately upon it or any of its officers becoming aware of any development or other information which would reasonably be expected to have a Material Adverse Effect, it shall give to
Lender telephonic or facsimile notice specifying the nature of such development or information and such anticipated effect. In addition, such verbal communication shall be confirmed by written notice thereof to Lender on the next Business Day after
such verbal notice is given. 
  
 6.12. Places of Business:
Each Borrower shall give thirty (30) days prior written notice to Lender of any changes in (a) its jurisdiction of organization and (b) the location of any of its chief executive office or any other places of business, or the establishment of any
new, and (c) the discontinuance of any existing place of business. 
  
 6.13. Notice of Action: Each Borrower will promptly notify Lender in the event of any legal action, dispute, setoff, counterclaim, defense or reduction that is or may be asserted by an Obligor with respect to any Account that may
have a material adverse effect on the collectibility of such Account or all Accounts collectively. 
  
 6.14. Verification of Information: At the request of Lender, Borrowers will promptly provide and verify the accuracy of information concerning
Borrowers and their Affiliates of the type provided to Lender in connection with Lender’s decision to enter into this Agreement and such other information concerning Borrowers and their Affiliates as Lender may reasonably request in connection
with any offering documents with respect to the contemplated securitization of, and sale of securities backed by, the Eligible Accounts (the “Securities”), including, without limitation, all information necessary to
provide full and complete disclosure of all material facts pertaining to an investment in the Securities in compliance with federal and state securities and blue sky laws, and such information may be published in such offering documents and relied
upon by Lender and any party arranging the offering of such Securities by Lender or its assignee. Such information will be true and complete in all material respects and will not omit to state a material fact necessary to make the statements
contained in such information, in light of the circumstances under which they were made, not misleading. 
  

 32 

 6.15. Value Track SystemTM: Borrowers shall permit Lender to interface its Value Track System~ to Borrowers’ data files and will assist
Lender in completing and maintaining such interface such that the interface can interpret, track and reconcile the Accounts Detail File provided by Borrowers. 
  

6.16. Commercial Tort Claim: Borrowers shall provide written notice to Lender of any commercial tort claim to which a Borrower is or becomes a
party or which otherwise inures to the benefit of a Borrower. Such notice shall contain a sufficient description of the commercial tort claim including the parties, the court in which the claim was commenced (if applicable), the docket number
assigned to the case (if applicable), and a detailed explanation of the events giving rise to such claim. Borrowers shall grant Lender a security interest in such commercial tort claim to secure payment of the Obligations. Borrowers shall execute
and deliver such instruments, documents and agreements as Lender may require in order to obtain and perfect such security interest including, without limitation, a security agreement or amendment to this Agreement all in form and substance
satisfactory to Lender. Each Borrower authorizes Lender to file (without such Borrower’s signature) financing statements or amendments to existing financing statements as Lender deems necessary to perfect the security interest. 
  
 SECTION 7. BORROWER’S NEGATIVE COVENANTS 
  
 Each Borrower covenants that until all of Borrowers’ Obligations to
Lender are paid and satisfied in full and the Credit Facility has been terminated, that: 
  
 7.1. Merger, Consolidation, Dissolution or Liquidation: 
  
 (a) No Borrower shall sell, lease, license, transfer or otherwise dispose of its Property other than to another Borrower or with respect
to Property sold in the ordinary course or ordinary operation of such Borrower’s business, without Lender’s prior written consent (which consent shall not be unreasonably withheld or delayed). 
  
 (b) No Borrower shall merge or consolidate with, or acquire,
any other Person or commence a dissolution or liquidation, other than through a merger with another Borrower, without Lender’s prior written consent (which consent shall not be unreasonably withheld or delayed). 
  
 7.2. Liens and Encumbrances: No Borrower shall: (i) execute a negative
pledge agreement with any Person covering any of the Collateral, or (ii) cause or permit or agree or consent to cause or permit in the future (upon the happening of a contingency or otherwise) the Collateral, whether now owned or hereafter acquired,
to be subject to any lien, claim or encumbrance other than those of Lender. 
  
 7.3. Negative Pledge: No Borrower shall pledge, grant or permit any lien to exist on the common stock or membership units of its Subsidiaries and Affiliates. 
  
 7.4. Transactions With Affiliates or Subsidiaries: 
  
 (a) No Borrower shall enter into any transaction with any
subsidiary or other Affiliate (other than another Borrower) including, without limitation, the purchase, sale, lease or 

  

 33 

 
exchange of Property, or the loaning, capitalization or giving of funds to any such Affiliate or any subsidiary, unless (i) such subsidiary or Affiliate is
engaged in a business substantially related to the business conducted by such Borrower and (ii) the transaction is in the ordinary course of and pursuant to the reasonable requirements of such Borrower’s business and upon terms substantially
the same and no less favorable to such Borrower as it would obtain in a comparable arm’s-length transactions with any Person not an Affiliate or a subsidiary and (iii) such transaction is not prohibited hereunder. 
  
 (b) Subject in any event to the limitations of Section
7.4(a) above, except with the prior written consent of Lender, which consent shall not be unreasonably withheld, no Borrower shall create or acquire any subsidiary unless such subsidiary engages in a business substantially related to the business of
such Borrower as conducted immediately prior to the Closing Date, and if required by Lender, such subsidiary becomes a Borrower hereunder. 
  
 7.5. Guarantees: Except as set forth on Schedule 2 hereto and excepting the endorsement in the ordinary course of business of negotiable
instruments for deposit or collection, no Borrower shall become or be liable, directly or indirectly, primary or secondary, matured or contingent, in any manner, whether as guarantor, surety, accommodation maker, or otherwise, for the existing or
future indebtedness of any kind of any other Person. 
  
 7.6.
Indebtedness: Without Lender’s prior written consent, no Borrower shall create, incur, assume or suffer to exist any Indebtedness except with respect to (a) Indebtedness to Lender and (b) Indebtedness specifically identified on
Schedule 2 hereto. 
  
 7.7. Loans to Other Persons:
No Borrower shall make or be permitted to have outstanding any loans, advances or extensions of credit to any Person (other than another Borrower). 
  
 7.8. Change in Ownership: No Borrower shall permit its current Shareholders to at any time own, legally or beneficially, less than 100% of the
aggregate voting interest of all classes of capital stock or equity interests of such Borrower entitled to vote generally. 
  
 7.9. Subordinated Debt Payments: No Borrower shall make any payment in contravention of the terms and conditions of the Subordination Agreements.

  
 7.10. Distributions: Borrowers shall not, following an
Event of Default or Unmatured Event of Default, declare or pay or make any forms of Distributions to its Shareholders, their successors or assigns, nor may any Borrower declare or pay or make any forms of Distributions if, after giving effect to
such Distributions, an Event of Default or Unmatured Event of Default will result. 
  
 SECTION 8. DEFAULT 
  
 8.1. Events of Default: Each of the following events shall constitute an event of default (“Event of Default”) and Lender shall thereupon have the option to declare the Obligations immediately due and payable, all without
demand, notice, presentment or protest or further action of any kind (it also being understood that the occurrence of any of the events or 

  

 34 

 
conditions set forth in subparagraphs (j), (k), (l) or (r) shall automatically cause an acceleration of the Obligations): 
  
 (a) Payments - if Borrowers fail to make any payment
of principal or interest on the date when such payment is due and payable and such failure continues for a period of one (1) Business Day; provided however, that the one (1) Business Day grace period shall not be applicable if such payments are due
and payable due to maturity, acceleration or demand, whether following an Event of Default or otherwise; or 
  
 (b) Other Charges - if Borrowers fail to pay any other charges, fees, Expenses or other monetary obligations owing to Lender,
arising out of or incurred in connection with this Agreement on the date when such payment is due and payable, whether upon maturity, acceleration, demand or otherwise and such failure continues for a period of five (5) Business Days after the
earlier of a Borrower becoming aware of such failure or a Borrower receiving written notice of such failure; provided however, that the five (5) Business Day grace period shall not be applicable if such payments are due and payable due to maturity,
acceleration or demand, whether following an Event of Default, or otherwise; or 
  
 (c) Particular Covenant Defaults - if any Borrower fails to perform, comply with or observe any covenant or undertaking contained
in this Agreement not otherwise described in this Section 8.1, and such failure continues for a period of five (5) Business Days after the earlier of a Borrower becoming aware of such failure or a Borrower receiving written notice of such failure;
or 
  
 (d) Financial Information - if any
statement, report, financial statement, or certificate made or delivered by a Borrower or any of their officers, employees or agents, to Lender is not true and correct, in all material respects, when made; or 
  
 (e) Uninsured Loss - if there shall occur any
uninsured damage to or loss, theft, or destruction in excess of $50,000 with respect to any portion of any Borrower’s Property; or 
  
 (f) Warranties or Representations - if any warranty, representation or other statement by or on behalf of Borrowers, or any of
them, contained in or pursuant to this Agreement, or in any document, agreement or instrument furnished in compliance with, relating to, or in reference to this Agreement, is false, erroneous, or misleading in any material respect when made; or

  
 (g) Agreements with Others - if
Borrowers, or any of them, shall default beyond any grace period under any agreement with any creditor for borrowed money and (i) such default consists of the failure to pay any principal, premium or interest with respect to such indebtedness or
(ii) such default consists of the failure to perform any covenant or agreement with respect to such indebtedness, if the effect of such default is to cause or permit Borrowers’, or any of their obligations which are the subject thereof to
become due prior to its maturity date or prior to its regularly scheduled date of payment; 
  

 35 

 (h) Other Agreements with Lender - if Borrowers, or any of them, breach or violate
the terms of, or if a default or an event of default, occurs under, any other existing or future agreement (related or unrelated) between or among Borrowers, or any of them and Lender, including without limitation, any lease agreements or finance
agreements with any affiliate of Lender; or 
  
 (i) Judgments - if any final judgment for the payment of money in excess of $50,000 which is not fully and unconditionally covered by insurance or an appeal bond, or for which Borrowers have not established a cash or cash equivalent
reserve in the amount of such judgment, shall be rendered; 
  
 (j) Assignment for Benefit of Creditors, etc. - if Borrowers, or any of them, make or propose an assignment for the benefit of creditors generally, offers a composition or extension to creditors, or makes or
sends notice of an intended bulk sale of any business or assets now or hereafter owned or conducted by any Borrower which might materially and adversely affect such Borrower; or 
  
 (k) Bankruptcy, Dissolution, etc. - upon the commencement of any action for the dissolution or
liquidation of Borrowers, or any of them, or the commencement of any proceeding to avoid any transaction entered into by Borrowers, or any of them, or the commencement of any case or proceeding for reorganization or liquidation of Borrowers’,
or any of their debts under the Bankruptcy Code or any other state or federal law, now or hereafter enacted for the relief of debtors, whether instituted by or against any Borrower; provided, however, that Borrowers shall have forty-five (45) days
to obtain the dismissal or discharge of involuntary proceedings filed against a Borrower, it being understood that during such forty-five (45) day period, Lender shall be not obligated to make Advances hereunder and Lender may seek adequate
protection in any bankruptcy proceeding; or 
  
 (l) Receiver - upon the appointment of a receiver, liquidator, custodian, trustee or similar official or fiduciary for Borrowers, or any of them, or for any of any Borrower’s Property; or 
  
 (m) Execution Process, Seizure, etc. - the issuance
of any execution or distraint process against any Borrower, or any Property of any Borrower is seized by any governmental entity, federal, state or local; or 
  

(n) Termination of Business - if Borrowers, or any of them, cease any material portion of their business operations as presently
conducted; or 
  
 (o) Pension Benefits,
etc. - if Borrowers fail to comply with ERJSA, so that grounds exist to permit the appointment of a trustee under ERISA to administer Borrowers’ employee plans or to allow the Pension Benefit Guaranty Corporation to institute proceedings to
appoint a trustee to administer such plan(s), or to permit the entry of a Lien to secure any deficiency or claim; or 
  
 (p) Investigations - any indication or evidence received by Lender that reasonably leads it to believe Borrowers, or any of them,
may have directly or indirectly been 

  

 36 

 
engaged in any type of activity which would be reasonably likely to result in the forfeiture of any Property of Borrowers, or any of them, to any
governmental entity, federal, state or local; or 
  
 (q) Material Adverse Events - 
  
 (i) Lender reasonably determines that an event which adversely affects the collectibility of a material portion of the Accounts has occurred; or 
  
 (ii) a material adverse change occurs in the business or condition of Borrowers, or any of them; or 
  
 (r) Lockbox Instructions - any instruction or
agreement regarding the Commercial Lockbox or the Government Lockbox or the bank accounts related thereto is amended or terminated without the written consent of Lender, or if any Borrower fails, within one Business Day of receipt, to forward
Collections it receives with respect to any Accounts to the Commercial Lockbox or the Government Lockbox, as the case may be. 
  
 8.2. Cure: Nothing contained in this Agreement or the Loan Documents shall be deemed to compel Lender to accept a cure of any Event of Default
hereunder. 
  
 8.3. Rights and Remedies on Default:

  
 (a) In addition to all other rights, options
and remedies granted or available to Lender under this Agreement or the Loan Documents, or otherwise available at law or in equity, upon or at any time after the occurrence and during the continuance of an Event of Default or Unmatured Event of
Default, Lender may, in its discretion, withhold or cease making Advances under the Credit Facility. 
  
 (b) In addition to all other rights, options and remedies granted or available to Lender under this Agreement or the Loan Documents (each
of which is also then exercisable by Lender), Lender may, in its discretion, upon or at any time after the occurrence of an Event of Default, terminate the Credit Facility. 
  
 (c) In addition to all other rights, options and remedies granted or available to Lender under this
Agreement or the Loan Documents (each of which is also then exercisable by Lender), Lender may, upon or at any time after the occurrence of an Event of Default, exercise all rights under the UCC and any other applicable law or in equity, and under
all Loan Documents permitted to be exercised after the occurrence of an Event of Default, including the following rights and remedies (which list is given by way of example and is not intended to be an exhaustive list of all such rights and
remedies): 
  
 (i) Subject to all applicable laws
and regulations governing payment of Medicare and Medicaid receivables, the right to “take possession” of the Collateral, and notify all Obligors of Lender’s security interest in the Collateral and require payment under the Accounts
to be made directly to Lender and Lender may, in its own name or in the name of the applicable Borrower, exercise all rights of a secured party with respect to the Collateral. and collect, sue for and receive payment on all Accounts, and settle,
compromise and adjust the same on any terms as may be satisfactory to Lender, in its sole and absolute discretion for any reason 

  

 37 

 
or without reason and Lender may do all of the foregoing with or without judicial process (including without limitation notifying the United States postal
authorities to redirect mail addressed to Borrowers, or any of them, to an address designated by Lender); or 
  
 (ii) Require Borrowers at Borrowers’ expense, to assemble all or any part of the Collateral and make it available to Lender at any
place designated by Lender, which may include providing Lender or any entity designated by Lender with access (either remote or direct) to Borrowers’ information system for purposes of monitoring, posting payments and rebilling Accounts to the
extent deemed desirable by Lender in its sole discretion; or 
  
 (iii) The right to reduce or modify the Revolving Loan Commitment, Borrowing Base or any portion thereof or the Advance Rates or to modify the terms and conditions upon which Lender may be willing to consider making
Advances under the Credit Facility or to take additional reserves in the Borrowing Base for any reason. 
  
 (d) Borrowers hereby agree that a notice received by them at least ten (10) days before the time of any intended public sale or of the
time after which any private sale or other disposition of the Collateral is to be made, shall be deemed to be reasonable notice of such sale or other disposition. If permitted by applicable law, any Collateral which threatens to speedily decline in
value or which is sold on a recognized market may be sold immediately by Lender without prior notice to Borrowers. Each Borrower covenants and agrees not to interfere with or impose any obstacle to Lender’s exercise of its rights and remedies
with respect to the Collateral. 
  
 8.4. Nature of
Remedies: All rights and remedies granted Lender hereunder and under the Loan Documents, or otherwise available at law or in equity, shall be deemed concurrent and cumulative, and not alternative remedies, and Lender may proceed with any number
of remedies at the same time until all Obligations are satisfied in full. The exercise of any one right or remedy shall not be deemed a waiver or release of any other right or remedy, and Lender, upon or at any time after the occurrence of an Event
of Default, may proceed against Borrowers, or any of them, at any time, under any agreement, with any available remedy and in any order. 
  
 8.5. Lender’s Right to Terminate the Credit Facility: Lender shall be entitled to terminate the Credit Facility and upon such termination,
Borrowers shall immediately repay all of the Obligations if a material change occurs in the marketplace for the delivery or financing of healthcare services which causes a material adverse change in the business or prospects of Lender or any of its
Affiliates, or any event occurs which results in the early amortization or termination of commitments made to Lender for the financing of Accounts. 
  
 8.6. Set-Off: If any bank account or other Property held by or with Lender, or any Affiliate of Lender, or any participant is attached or otherwise
liened or levied upon by any third party, Lender (and such participant) shall have and be deemed to have, without notice to Borrowers, the immediate right of set-off and may apply the funds or other amounts or property thus set off against any of
Borrowers’ Obligations hereunder. 
  

 38 

 SECTION 9. MISCELLANEOUS 
  
 9.1. GOVERNING LAW: THIS AGREEMENT, AND ALL RELATED AGREEMENTS AND DOCUMENTS, SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF NEW JERSEY. THE PROVISIONS OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND ALL OTHER AGREEMENTS AND DOCUMENTS REFERRED TO HEREIN ARE TO BE DEEMED SEVERABLE, AND THE INVALIDITY OR UNENFORCEABILITY
OF ANY PROVISION SHALL NOT AFFECT OR IMPAIR THE REMAINING PROVISIONS WHICH SHALL CONTINUE IN FULL FORCE AND EFFECT. 
  
 9.2. Integrated Agreement: The Revolving Credit Note, the Term Note, the other Loan Documents, all related agreements, and this Agreement shall be
construed as integrated and complementary of each other, and as augmenting and not restricting Lender’s rights and remedies. If, after applying the foregoing, an inconsistency still exists, the provisions of this Agreement shall constitute an
amendment thereto and shall control. 
  
 9.3. Waiver and
Indemnity: 
  
 (a) No omission or delay by
Lender in exercising any tight or power under this Agreement or any related agreements and documents will impair such right or power or be construed to be a waiver of any default, or Event of Default or an acquiescence therein, and any single or
partial exercise of any such right or power will not preclude other or further exercise thereof or the exercise of any other tight, and as to any Borrower no waiver will be valid unless in writing and signed by Lender and then only to the extent
specified. 
  
 (b) Each Borrower releases and
shall indemnify, defend and hold harmless Lender, and its respective officers, employees and agents, of and from any claims, demands, liabilities, obligations, judgments, injuries, losses, damages and costs and expenses (including, without
limitation, reasonable legal fees) resulting from (i) acts or conduct of a Borrower under, pursuant or related to this Agreement and the other Loan Documents, (ii) any Borrower’s breach, or alleged breach, or violation of any representation,
warranty, covenant or undertaking contained in this Agreement or the other Loan Documents, and (iii) any Borrower’s failure, or alleged failure, to comply with any or all laws, statutes, ordinances, governmental rules, regulations or standards,
whether federal, state or local, or court or administrative orders or decrees (including without limitation environmental laws, etc.), and all, costs, expenses, fines, penalties or other damages resulting therefrom, unless resulting from acts or
conduct of Lender constituting willful misconduct or gross negligence. 
  
 (c) Lender shall not be liable for, and Borrowers hereby agree that Lender’s liability in the event of a breach by Lender of this Agreement shall be limited to Borrowers’ direct damages suffered and shall
not extend to, any consequential or incidental damages. In the event Borrowers bring suit against Lender in connection with the transactions contemplated hereunder, and Lender is found not to be liable, Borrowers shall indemnify and hold Lender
harmless from all costs and expenses, including attorneys’ fees, incurred by Lender in connection with such suit. 
  
 9.4. Time: Whenever Borrowers, or any of them, shall be required to make any payment, or perform any act, on a day which is not a Business Day,
such payment may be made, 

  

 39 

 
or such act may be performed, on the next succeeding Business Day. Time is of the essence in Borrowers’ performance under all provisions of this
Agreement and all related agreements and documents. 
  
 9.5.
Expenses of Lender: 
  
 (a) At Closing and
from time to time thereafter, Borrowers will pay all reasonable expenses of Lender on demand (including, without limitation, search costs, audit fees, appraisal fees, and the fees and expenses of legal counsel for Lender) relating to this Agreement,
and all related agreements and documents, including, without limitation, expenses incurred in the analysis, negotiation, preparation, dosing, administration and enforcement of this Agreement and the other Loan Documents, the enforcement, protection
and defense of the rights of Lender in and to the Loans and Collateral or otherwise hereunder, and any reasonable expenses relating to extensions, amendments, waivers or consents pursuant to the provisions hereof, or any related agreements and
documents or relating to agreements with other creditors, or termination of this Agreement (collectively, the “Expenses”). Any Expenses not paid upon demand by Lender shall bear interest at the highest per annum rate
of interest applicable to the Loans. 
  
 (b) In
addition, at any lime following the date of this Agreement, Borrowers effect any changes which results in a change in the format or sequence of Borrowers’ data, Borrowers shall pay to Lender its reasonable charge for implementing such changes
as are necessary to accommodate the changes in the format or sequence of the data such that the Value Track SystemTM is capable of importing such data, including an hourly fee of $100. 
  
 9.6. Confidentiality: Except as provided in Section 9.18 hereof or to the extent required by law or applicable
regulations, Borrowers and Lender agree to maintain the confidentiality of this Agreement and not to disclose the contents hereof or provide a copy hereof to any third party, except (i) accountants, lawyers and financial advisers of the parties who
are informed of and agree to be bound by this Section 9.6, and (ii) that copies hereof may be provided to any assignee or participant (or potential assignee or participant) of Lender’s interests herein, any investors or prospective investors
who acquire or may acquire Securities backed by Accounts and any parties which facilitate the issuance of such Securities, including rating agencies, guarantors and insurers. 
  
 9.7. Notices: 
  
 (a) Any notices or consents required or permitted by this Agreement shall be in writing and shall be deemed given if delivered in person
or if sent by telecopy or by nationally recognized overnight courier, or via first class, Certified or Registered mail, postage prepaid, to the address of such party set forth on the signature pages hereof, unless such address is changed by written
notice hereunder. 
  
 (b) Any notice sent by
Lender or Borrowers, or any of them, by any of the above methods shall be deemed to be given when so received. 
  

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 (c) Lender shall be fully entitled to rely upon any facsimile transmission or other
writing purported to be sent by any Authorized Officer (whether requesting an Advance or otherwise) as being genuine and authorized. 
  
 9.8. Headings: The headings of any paragraph or Section of this Agreement are for convenience only and shall not be used to interpret any provision
of this Agreement. 
  
 9.9. Survival: All warranties,
representations, and covenants made by any or all Borrowers and/herein, or in any agreement referred to herein or on any certificate, document or other instrument delivered by it or on its behalf under this Agreement, shall be considered to have
been relied upon by Lender, and shall survive the delivery to Lender of the Revolving Credit Note, regardless of any investigation made by Lender or on its behalf. All statements in any such certificate or other instrument prepared and/or delivered
for the benefit of Lender shall constitute warranties and representations by Borrowers hereunder. Except as otherwise expressly provided herein, all covenants made by any or all Borrowers hereunder or under any other agreement or instrument shall be
deemed continuing until all Obligations are satisfied in full. 
  
 9.10. Successors and Assigns: This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties. No Borrower may transfer, assign or delegate any of its duties or obligations
hereunder. 
  
 9.11. Duplicate Originals: Two or more
duplicate originals of this Agreement may be signed by the parties, each of which shall be an original but all of which together shall constitute one and the same instrument. This Agreement may be executed in counterparts, all of which counterparts
taken together shall constitute one completed fully executed document. 
  
 9.12. Modification: No modification hereof or any agreement referred to herein shall be binding or enforceable unless in writing and signed by Borrowers and Lender. 
  
 9.13. Signatories: Each individual signatory hereto represents and warrants that he is duly authorized to execute
this Agreement on behalf of his principal and that he executes the Agreement in such capacity and not as a party. 
  
 9.14. Third Parties: No rights are intended to be created hereunder, or under any related agreements or documents for the benefit of any third
party donee, creditor or incidental beneficiary of any Borrower. Nothing contained in this Agreement shall be construed as a delegation to Lender of any Borrower’s duty of performance, including, without limitation, such Borrower’s duties
under any account or contract with any other Person. 
  
 9.15.
Waivers: 
  
 (a) Borrowers each hereby
irrevocably, unconditionally and fully subordinate in favor of Lender, any and all rights they or any of them, may have at any time (whether arising directly or indirectly, by operation of law or contract) to assert or receive payment on any claim
against each other or any of them, on account of payments made under this Agreement, including without limitation, any and all rights of subrogation, reimbursement, exoneration, contribution or indemnity. Each Borrower waives any event or
circumstances which might constitute a legal or equitable defense of, or discharge of, such Borrower. Furthermore, each Borrower agrees that if 

  

 41 

 
any payment on the Obligations is recovered from or repaid by Lender in whole or in part in any bankruptcy, insolvency or similar proceeding instituted by or
against any Borrower, the remaining Borrowers and/shall be obligated to the same extent as if the recovered or repaid payment had never been originally made on such Obligation. Each Borrower consents and agrees that Lender shall be under no
obligation to marshal any assets or Collateral in favor of such Borrower or against or in payment of any or all of the Obligations. 
  
 (b) Each Borrower hereby consents and agrees that Lender, at any time or from time to time in its discretion may: (i) settle, compromise
or grant releases for liabilities of other Borrowers, and/or any other Person or Persons liable for any Obligations, (ii) exchange, release, surrender, sell subordinate or compromise any Collateral of any party now or hereafter securing any of the
Obligations, and (iii) following an Event of Default, apply any and all payments received at anytime against the Obligations in any order as Lender may determine; all of the foregoing in such manner and upon such terms as Lender may see fit, without
notice to or further consent from such Borrower who hereby agrees and shall remain bound upon this Agreement notwithstanding any such action on Lender’s part. 
  
 (c) The liability of each Borrower hereunder is absolute and unconditional and shall not be reduced,
impaired or affected in any way by reason of (i) any failure to obtain, retain or preserve, or the lack of prior enforcement of, any rights against any Person or Persons (including other Borrowers), or in any Property, (ii) the invalidity or
unenforceability of any Obligations or rights in any Collateral, (iii) any delay in making demand upon other Borrowers or any delay in enforcing, or any failure to enforce, any rights against other Borrowers or in any Collateral even if such rights
are thereby lost, (iv) any failure, neglect or omission to obtain, perfect or retain any lien upon, protect, exercise rights against, or realize on, any Property of any Borrower, or any other party securing the Obligations, (v) the existence or
non-existence of any defenses which may be available to the other Borrowers with respect to the Obligations, or (vi) the commencement of any bankruptcy, reorganization, liquidation, dissolution or receivership proceeding or case filed by or against
any of Borrowers. 
  
 9.16. CONSENT TO JURISDICTION: EACH
BORROWER AND LENDER HEREBY IRREVOCABLY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN THE STATE OF NEW JERSEY IN ANY AND ALL ACTIONS AND PROCEEDINGS WHETHER ARISING HEREUNDER OR UNDER ANY OTHER AGREEMENT OR UNDERTAKING.
BORROWERS WAIVE ANY OBJECTION TO IMPROPER VENUE AND FORUM NON-CONVENIENS TO PROCEEDINGS IN ANY SUCH COURT AND ALL RIGHTS TO TRANSFER FOR ANY REASON. EACH BORROWER IRREVOCABLY AGREES TO SERVICE OF PROCESS BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED
TO THE ADDRESS OF THE APPROPRIATE PARTY SET FORTH HEREIN. 
  
 9.17. WAIVER OF JURY TRIAL: EACH BORROWER AND LENDER HEREBY WAIVE ANY AND ALL RIGHTS IT MAY HAVE TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION COMMENCED BY OR AGAINST LENDER WITH RESPECT TO RIGHTS AND OBLIGATIONS OF THE PARTIES
HERETO OR UNDER THE LOAN DOCUMENTS, WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE. 
  

 42 

 9.18. Publication: Borrowers grant Lender the right to publish and/or advertise information to the
effect that this transaction has closed, which information may include, without limit, (i) the names of Borrowers and Lender, (ii) the size of the transaction and (iii) those items of information commonly included within a “tombstone
advertisement” of the type customarily published in financial or business periodicals. 
  
 9.19. Discharge of Taxes, Borrower’s Obligations, Etc.: Lender, in its sole discretion, shall have the right at any time, and from time to time, with prior notice to Borrowers, if Borrowers fail to do. so
five (5) Business Days after requested in writing to do so by Lender, to: (a) pay for the performance of any of Borrowers’ obligations hereunder, and (b) discharge taxes or liens, at any time levied or placed on any of Borrowers’ Property
in violation of this Agreement unless Borrowers are in good faith with due diligence by appropriate proceedings contesting such taxes or liens. Expenses and advances shall be deemed Advances hereunder and shall be deemed Advances hereunder and shall
bear interest at the highest rate applied to the Loans until reimbursed to Lender. Such payments and advances made by Lender shall not be construed as a waiver by Lender of an Event of Default under this Agreement. 
  
 9.20. Injunctive Relief: The parties acknowledge and agree that, in
the event of a breach or threatened breach of any party’s obligations hereunder, may have no adequate remedy in money damages and, accordingly, shall be entitled to an injunction (including without limitation, a temporary restraining order,
preliminary injunction, writ of attachment, or order compelling an audit) against such breach or threatened breach, including without limitation, maintaining the cash management and collection procedure described herein. However, no specification in
this Agreement of a specific legal or equitable remedy shall be construed as a waiver or prohibition against any other legal or equitable remedies in the event of a breach or threatened breach of any provision of this Agreement. 
  
 SECTION 10. SPECIAL INTER-BORROWER PROVISIONS 
  
 10.1. Certain Borrower Acknowledgments and Agreements. 
  
 (a) Each Borrower acknowledges that it will enjoy significant
benefits from the business conducted by the other Borrowers because of, inter alia, their consolidated ability to bargain with other Persons including without limitation their ability to receive the Credit Facility on favorable terms
granted by this Agreement and other Loan Documents which would not have been available to an individual Borrower acting alone. Each Borrower has determined that it is in its best interest to procure the Credit Facility which each Borrower may
utilize directly and which receive the credit support of the other Borrowers as contemplated by this Agreement and the other Loan Documents. 
  
 (b) Lender has advised Borrowers that it is unwilling to enter into this Agreement and the other Loan Documents and make available the
Credit Facility extended hereby to any Borrower unless each Borrower agrees, among other things, to be jointly and severally liable for the due and proper payment of the Obligations of each other Borrower under this Agreement and other Loan
Documents. Each Borrower has determined that it is in its best interest and in pursuit of its purposes that it so induce Lender to extend credit pursuant to this Agreement and the other documents executed in connection herewith (i) because of the

  

 43 

 
desirability to each Borrower of the Credit Facility, the interest rates and the modes of borrowing available hereunder, (ii) because each Borrower may
engage in transactions jointly with other Borrowers and (iii) because each Borrower may require, from time to time, access to funds under this Agreement for the purposes herein set forth. 
  
 (c) Each Borrower has determined that it has and, after
giving effect to the transactions contemplated by this Agreement and the other Loan Documents (including, without limitation, the inter-Borrower arrangement set forth in this Section 10.1) will have, assets having a fair saleable value in excess of
the amount required to pay its probable liability on its existing Indebtedness as they fall due for payment and that the sum of its debts is not and will not then be greater than all of its Property at a fair valuation, that such Borrower has, and
will have, access to adequate capital for the conduct of its business and the ability to pay its debts from time to lime incurred in connection therewith as such debts mature and that the value of the benefits to be derived by such Borrower from the
access to funds under this Agreement (including, without limitation, the inter-Borrower arrangement set forth in this Section 10.1) is reasonably equivalent to the obligations undertaken pursuant hereto. 
  
 (d) Borrower Agent (on behalf of each Borrower) shall
maintain records specifying (a) all Obligations incurred by each Borrower, (b) the date of such incurrence, (c) the date and amount of any payments made in respect of such Obligations and (d) all inter-Borrower obligations pursuant to this Section
10. Borrower Agent shall make copies of such records available to Lender, upon request. 
  
 10.2. Maximum Amount Of Joint and Several Liability: To the extent that applicable law otherwise would render the full amount of the joint and several obligations of any Borrower hereunder and under the other
Loan Documents invalid or unenforceable, such Borrower’s obligations hereunder and under the other Loan Documents shall be limited to the maximum amount which does not result in such invalidity or unenforceability, provided, however, that each
Borrower’s obligations hereunder and under the other Loan Documents shall be presumptively valid and enforceable to their fullest extent in accordance with the terms hereof or thereof, as if this Section 10.2 were not a part of this Agreement.

  
 10.3. Authorization of Borrower Agent by Borrowers.

  
 (a) Each of Borrowers hereby irrevocably
authorizes Borrower Agent to give notices, make requests, make payments, receive payments and notices, give receipts and execute agreements, make agreements or take any other action whatever on behalf of such Borrower under and with respect to any
Loan Document and each Borrower shall be bound thereby. This authorization is coupled with an interest and shall be irrevocable, and Lender may rely on any notice, request, information supplied by Borrower Agent, every document executed by Borrower
Agent every agreement made by Borrower Agent or other action taken Borrower Agent in respect of Borrowers or any thereof as if the same were supplied, made or taken by any or all Borrowers. Without limiting the generality of the foregoing, the
failure of one or more Borrowers to join in the execution of any writing in connection herewith shall not, unless the context dearly requires, relieve any such Borrower from obligations in respect of such writing. 
  

 44 

 (b) Borrowers acknowledge that the credit provided hereunder is on terms more favorable
than any Borrower acting alone would receive and that each Borrower benefits directly and indirectly from all Advances hereunder. Each of the other Borrowers, shall be jointly and severally liable for all Obligations, regardless of, inter alia,
which Borrower requested (or received the proceeds of) a particular Advance. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 45 

 IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and year
first above written. 
  

									
	 Address for notices to Borrowers:
	 	 	 	Borrowers:
			
	 	 	 	 	HEALTHESSENTIALS SOLUTIONS, INC.
			
	 9721 Ormsby Station Road
 Louisville, KY 40223
	 	 	 	 
	 	 	 	 By:
	 	/s/    MICHAEL R. BARR        
	 Attn:
	 	 	 	 	 	 Name:
	 	Michael R. Barr
	 Fax:
	 	 	 	 	 	 Title:
	 	CEO
			
	 	 	 	 	NPPA OF AMERICA, INC.
					
	 	 	 	 	 	 	 By:
	 	/s/    MICHAEL R. BARR        
	 	 	 	 	 	 	 Name:
	 	Michael R. Barr
	 	 	 	 	 	 	 Title:
	 	CEO

  

									
	 	 	 	 	NPPA NATIONAL, LLC
	 	 	 	 	 By:
	 	NPPA OF AMERICA, INC., its sole member
					
	 	 	 	 	 	 	By:	 	/s/    MICHAEL R. BARR        
	 	 	 	 	 	 	 Name:
	 	Michael R. Barr
	 	 	 	 	 	 	 Title:
	 	CEO
			
	 	 	 	 	Lender:
			
	 Address for notices:
	 	 	 	HEALTHCARE BUSINESS CREDIT CORPORATION
			
	 Healthcare Business Credit Corporation
	 	 	 	 
	 305 Fellowship Road, Suite 300
	 	 	 	By:	 	/s/    STACY L. ALLEN        
	 Mount Laurel, NJ 08054
	 	 	 	 Name:
	 	Stacy L. Allen
	 Attn:
	 	 Bernard J. Lajeunesse, President
	 	 	 	 Title:
	 	Vice President
	 Fax:
	 	 856-222-0568
	 	 	 	 	 	 

  

 S-1

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