Document:

exv10w3

Exhibit 10.3

FOIA CONFIDENTIAL TREATMENT REQUESTED

PORTIONS OF THIS EXHIBIT MARKED BY [**Redacted**] HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

WV3 Instrument Purchase Agreement 60151

Document No. 10329740

WorldView 3 Instrument Purchase Agreement

60151 by and Between

DigitalGlobe, Inc.

and

ITT Space Systems, LLC

	 	 	 
	Document Number

	 	 10329740
	Release Date:

	 	 Aug 24, 2010
	Issue/Revision

	 	 Initial Release
	Prepared by:

	 	 Jim McClelland
	Approved by:

	 	 Alison Alfers

RESTRICTION ON USE, PUBLICATION, OR DISCLOSURE OF PROPRIETARY INFORMATION

THIS AGREEMENT AND THE INFORMATION CONTAINED THEREIN ARE CONFIDENTIAL AND PROPRIETARY TO
DIGITALGLOBE AND ITT AND SHALL NOT BE PUBLISHED OR DISCLOSED TO ANY THIRD PARTY WITHOUT THE EXPRESS
WRITTEN CONSENT OF A DULY AUTHORIZED REPRESENTATIVE OF DIGITALGLOBE AND ITT.

DigitalGlobe Proprietary and Confidential

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WV3 Instrument Purchase Agreement 60151

Document No. 10329740

Instrument Purchase Agreement

Table of Contents

	 	 	 
	Terms and Conditions
	 
	 	 
	Exhibit 1

	 	Statement of Work for the WorldView-3 Instrument (“Statement of Work”)
	 
	 	 
	Exhibit 2

	 	Milestone Payment and Termination Liability Schedule
	 
	 	 
	Exhibit 3

	 	WorldView 3 Instrument Software License Agreement

	 	 	 	 	 
	1. DEFINITIONS AND CONSTRUCTION
	 	 	1	 
	1.1. Certain Definitions
	 	 	 1	 
	1.2. Other Terms
	 	 	 4	 
	1.3. Integration and Construction
	 	 	 4	 
	1.4. Headings
	 	 	 5	 
	2. SCOPE OF WORK
	 	 	5	 
	2.1. General
	 	 	 5	 
	2.2. Contractor Work Commencement
	 	 	 5	 
	3. CONTRACT PRICE
	 	 	5	 
	3.1. Contract Price
	 	 	 5	 
	3.2. Changes in Contract Price
	 	 	 5	 
	3.3. Taxes and Duties
	 	 	 6	 
	4. PAYMENT
	 	 	6	 
	4.1. Requests for Payment and Invoices
	 	 	 6	 
	4.2. Payment
	 	 	 7	 
	4.3. Disputed Amounts
	 	 	 8	 
	4.4. Set Off
	 	 	 8	 
	4.5. Late Payment
	 	 	 8	 
	5. ACCESS TO WORK
	 	 	8	 
	5.1. Facilities
	 	 	 8	 
	5.2. No Relief
	 	 	 9	 
	5.3. Workers Compensation and Employer’s Liability
	 	 	 9	 
	6. DELIVERY
	 	 	9	 
	7. RESERVED
	 	 	9	 
	8. TITLE AND RISK OF LOSS
	 	 	9	 
	9. EXCUSABLE DELAY
	 	 	10	 
	9.1. Excusable Delay Defined
	 	 	10	 
	9.2. Equitable Adjustments
	 	 	10	 
	10. RESERVED
	 	 	11	 
	11. CORRECTIVE MEASURES IN INSTRUMENT AND OTHER CONTRACT DELIVERABLES
	 	 	11	 
	11.1. Notice of Defects
	 	 	11	 
	11.2. Duty to Correct
	 	 	11	 

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	12. CHANGES IN SCOPE OF WORK
	 	 	12	 
	12.1. Changes Directed by Customer
	 	 	12	 
	12.2. Changes Requested by Customer
	 	 	13	 
	12.3. Changes Requested by Contractor
	 	 	13	 
	12.4. Pricing of Changes
	 	 	13	 
	12.5. Delays Caused by Customer
	 	 	14	 
	13. PERMITS AND LICENSES; COMPLIANCE WITH LAWS
	 	 	14	 
	13.1. United States Permits, Licenses, and Laws
	 	 	14	 
	13.2. Review of Applications
	 	 	14	 
	13.3. Violation of Law
	 	 	14	 
	14. SUBCONTRACTS
	 	 	15	 
	14.1. Subcontracts
	 	 	15	 
	14.2. No Privity of Contract
	 	 	15	 
	14.3. Assignment of Subcontracts
	 	 	15	 
	15. PERSONNEL AND KEY PERSONNEL
	 	 	15	 
	15.1. Personnel Qualifications
	 	 	15	 
	15.2. Key Personnel Positions
	 	 	15	 
	15.3. Assignment of Key Personnel
	 	 	16	 
	16. CONTRACTOR’S REPRESENTATIONS, COVENANTS, AND WARRANTIES
	 	 	16	 
	16.1. Organization; Good Standing and Qualification
	 	 	16	 
	16.2. Authorization
	 	 	16	 
	16.3. Contractor Warranties for Contract Deliverables
	 	 	17	 
	16.4. Remedies
	 	 	18	 
	17. CUSTOMER’S REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	19	 
	17.1. Organization; Good Standing and Qualification
	 	 	19	 
	17.2. Authorization
	 	 	19	 
	17.3. Third Party Intellectual Property
	 	 	19	 
	18. INTELLECTUAL PROPERTY RIGHTS
	 	 	20	 
	18.1. Contractor Furnished /
Developed Technology and Data
	 	 	20	 
	18.2. Customer Developed Technology and Data
	 	 	20	 
	18.3. Future Licenses
	 	 	20	 
	18.4. Contractor Intellectual Property Indemnity
	 	 	20	 
	18.5. Customer Intellectual Property Indemnity
	 	 	21	 
	18.6. Source Code Escrow
	 	 	21	 
	18.7. Software License
	 	 	22	 
	18.8. Intellectual Property Representation
	 	 	22	 
	19. INDEMNIFICATION
	 	 	22	 
	19.1. Contractor’s Indemnification
	 	 	22	 
	19.2. Customer’s Indemnification
	 	 	23	 
	19.3. Indemnification Procedures
	 	 	23	 
	19.4. Waiver of Subrogation
	 	 	24	 
	20. RESERVED
	 	 	24	 
	21. INSURANCE
	 	 	24	 
	21.1. General Obligations
	 	 	24	 
	21.2. Launch and In-Orbit Insurance
	 	 	25	 

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	22. DISPUTED RESOLUTION
	 	 	25	 
	22.1. Informal Dispute Resolution
	 	 	25	 
	22.2. Arbitration
	 	 	26	 
	23. LAUNCH SUPPORT AND LAUNCH
	 	 	27	 
	24. CUSTOMER’S RESPONSIBILITIES
	 	 	27	 
	25. FAILURE TO MAKE ADEQUATE PROGRESS
	 	 	27	 
	26. TERMINATION
	 	 	27	 
	26.1. Termination for Customer’s Convenience
	 	 	27	 
	26.2. Termination for Contractor’s Default
	 	 	28	 
	26.3. Termination for Excusable Delay
	 	 	29	 
	26.4. Termination for Right Expiration
	 	 	29	 
	26.5. Termination for Customer’s Default
	 	 	29	 
	26.6. Consequence of Termination; Invoice, Audit
	 	 	30	 
	26.7. Security Interests
	 	 	31	 
	27. GENERAL
	 	 	32	 
	27.1. Assignment
	 	 	32	 
	27.2. Entire Agreement
	 	 	32	 
	27.3. Amendments / Modifications
	 	 	33	 
	27.4. Severability
	 	 	33	 
	27.5. Applicable Law
	 	 	33	 
	27.6. Notices
	 	 	33	 
	27.7. Relationship of the Parties
	 	 	34	 
	27.8. Survival
	 	 	34	 
	27.9. No Third Party Beneficiaries
	 	 	34	 
	27.10. Consent and Approvals
	 	 	35	 
	27.11. No Waiver Remedies
	 	 	35	 
	27.12. Covenant of Good Faith
	 	 	35	 
	27.13. Limitation of Liability
	 	 	35	 
	27.14. Public Announcements
	 	 	35	 
	27.15. Non-Disclosure of Proprietary Information
	 	 	35	 
	27.16. Time Sensitive Delivery
	 	 	36	 

DigitalGlobe Proprietary and Confidential

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Document No. 10329740

WorldView 3 Instrument Purchase Agreement

This Instrument Purchase Agreement, including the Exhibits referenced in Article 2.1 and
incorporated herein, (collectively the “Agreement”) is made and entered into as of xx August 2010
with an Effective Date of Sept 1, 2010, by and between DigitalGlobe, Inc., a Delaware corporation
with its principal offices located at 1601 Dry Creek Drive, Suite 260, Longmont, Colorado 80503
(“Customer”), and ITT Space Systems, LLC., a Delaware corporation with its principal offices
located at 1447 St. Paul Street, Rochester, New York, 14621 (“Contractor”). As used in this
Agreement, “Party” means either Customer or Contractor, as appropriate, and “Parties” means
Customer and Contractor.

RECITALS

WHEREAS, Customer desires to procure one (1) remote sensing Instrument and related data,
documentation, and services as more specifically set forth in Exhibit 1 hereto;

WHEREAS, Contractor is in the business of providing instruments and related data, documentation,
and services on a commercial basis;

WHEREAS, Customer is willing to purchase the Instrument and other Work (as such terms are defined
in Section 1) per the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and
intending to be legally bound hereby, the Parties agree as follows:

1. Definitions and Construction

1.1. Certain Definitions

In this Agreement, the following terms shall have the meaning stated hereunder:

(a) “AFFILIATE” means, with respect to an entity, any other entity controlling or controlled
by or under common control with such entity.

(b) “AVAILABLE FOR SHIPMENT” means that the Instrument has successfully passed all in-plant
acceptance tests, has successfully undergone a Pre-Ship Review, including Customer sign-off, and
has been declared ready, by both the Customer and Contractor, to be shipped to the Space Segment
Integrator.

(c) “BUSINESS DAY” means any day other than the following: a Saturday, Sunday, and any other
day on which national banks are authorized to be closed in Colorado. Unless specified in this
Agreement as a “Business Day”, all references to “day” or “days” shall mean calendar days.

DigitalGlobe Proprietary and Confidential

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(d) “CONTRACT DELIVERABLE(S)” has the meaning set forth in Section 3 of Exhibit 1.

(e) “CONTRACT PRICE” means the firm fixed price set forth in Article 3.1.

(f) “CORRECTION PLAN” means a plan submitted by Contractor that details the means by which
Contractor shall correct a failure to make adequate progress toward completion of any Work under
this Agreement in accordance with Article 25.

(g) “CRITICAL DESIGN REVIEW” has the meaning set forth in Exhibit 1.

(h) “CFE” means Customer Furnished Equipment and is comprised of the items detailed in
Section 10 of Exhibit 1.

(i) “CUSTOMER PERSONNEL” means Customer employees, consultants or representatives, or
Customer’s consultants’ employees.

(j) “DATA AND DOCUMENTATION” means that data and documentation deliverable by Contractor
pursuant to the requirements of Exhibit 1.

(k) “DEFECT” means; (i) with respect to Deliverable Items, any nonconformance to or
failure to perform in accordance with the specifications and the interface control documents
(ICDs) set forth in this Agreement or applicable exhibits., (ii) with respect to Deliverable
Services, a failure to meet any requirement set forth in this Agreement; or (iii) any error,
omission, or inconsistency in Data and Documentation, including engineering reports, test plans,
test reports, specifications, and drawings, set forth in or required by this Agreement.

(l) “DELIVERABLE ITEM(S)” means any and all of the items listed as deliverable in the
Agreement or an applicable Exhibit

(m) “DELIVERABLE SERVICE(S)” means the services set forth in the Agreement or an applicable
Exhibit of Exhibit 1.

(n) “DELIVERY DATE(S)” means, with respect to any Deliverable Item, the delivery date set
forth in Exhibit 1.

(o) “DELIVERY SCHEDULE” means the schedule for Delivery of the Work as set forth in the
Agreement or an applicable Exhibit

(p) “DEMAND” means, in the context of Article 25, a demand made by Customer to Contractor
for Contractor to provide a Correction Plan in the event Contractor is failing to make adequate
progress in the performance of this Agreement.

(q) “EXCUSABLE DELAY” has the meaning set forth in Article 9.

(r) “EXHIBITS” means any and all exhibits, and any appendices thereto, to this Agreement,
which are attached hereto and incorporated herein.

(s) “FINAL ACCEPTANCE” of a Contract Deliverable has the meaning set forth in Exhibit 1.

(t) “FIRST MILESTONE PAYMENT” means the first Milestone Payment identified in Exhibit 2.

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(u) “INTERFACE CONTROL DOCUMENT(S)” or “ICD” means the technical specifications for the
interoperability between systems.

(v) “INSTRUMENT” means the remote sensing instrument system to be designed, developed and
constructed by Contractor and delivered to Customer as specifically set forth in Exhibit 1.

(w) “INSTRUMENT DELIVERY” means Initial Acceptance as defined in Exhibit 1.

(x) “INSTRUMENT FLIGHT SOFTWARE” means all software, firmware, and programmable device code,
developed and installed by Contractor in the Instrument to perform the house-keeping functions,
operate the instrument and communicate with the Satellite as more specifically set forth in
Exhibit 1.

(y) “INSTRUMENT PERFORMANCE SPECIFICATIONS” means the technical specifications set forth in
Exhibit 1.

(z) “INTELLECTUAL PROPERTY” means all algorithms, inventions, drawings technical data, works
of authorship, mask works, technical information, computer software designs, methods, concepts,
layouts, software, software codes, (in any form including source code and executable or object
code), works of authorship, inventions (whether or not patented or patentable), network
configurations and architectures, specifications, techniques, processes, data bases and data
collections, protocols, processes, technical data and documentation, and similar matter in which
an Intellectual Property Right may exist, which shall include, but not be limited to, technical
analyses and reports, test plans, all interfaces between units, test reports, parts lists,
anomaly reports and resolution, as built lists, and other program documentation, to review the
design, satisfy requests from the U.S. Government for information, prepare operational
documentation, to operate the Instrument following Launch, and to make repairs or modifications
as necessary.

(aa) “INTELLECTUAL PROPERTY RIGHTS” means all common law and statutory proprietary rights,
including patent, patent application, patent registration, copyright, trademark, service mark,
trade secret, mask work rights, moral rights, data rights and similar rights existing from time
to time under the intellectual property Laws of the United States, any state or foreign
jurisdiction or international treaty regime related to Intellectual Property.

(bb) “LAUNCH” means, with respect to the Satellite, including the Instrument, the
intentional ignition of any of the launch vehicle rocket motors.

(cc) “LAUNCH SUPPORT SERVICES” has the meaning set forth in Exhibit 1.

(dd) “LAW” OR “LAWS” means any laws, including rules, regulations, codes, injunctions,
judgments, orders, ordinances, decrees, rulings, and charges thereunder, of any federal, state,
local or municipal government of any country (and all agencies thereof) having jurisdiction over
any portion of the Work.

(ee) “LOSSES” means all losses, liabilities, damages, royalty payments and claims, and all
related costs and expenses (including reasonable legal fees and disbursements and costs of
investigation, expert fees, litigation, settlement, judgment, interest, and penalties).

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(ff) “MATERIAL ADVERSE EFFECT” means any material adverse change in (i) the legality,
validity, or enforceability of this Agreement or (ii) the ability of Customer or Contractor to
perform this Agreement.

(gg) “MILESTONE” means a portion of the definitive, measurable Work upon completion of which
a payment is to be made in accordance with Exhibit 2.

(hh) “MILESTONE CERTIFICATE” has the meaning set forth in Article 4.

(ii) “MILESTONE PAYMENT” means any of those payments listed as specific Milestone Payments
in Exhibit 2.

(jj) “PRELIMINARY DESIGN REVIEW” has the meaning assigned in Exhibit 1.

(kk) “PRE-SHIP REVIEW” shall have the meaning ascribed to it in Exhibit 1.

(ll) “SATELLITE” has the meaning set forth in Exhibit 1.

(mm) “SOFTWARE LICENSE” means the terms governing the use of the ITT software as specified
in the Software License Agreement (Exhibit 3).

(nn) “SPACE SEGMENT INTEGRATOR” or “SSI” means the party designated by DigitalGlobe
facilitating the placement of the Instrument into the Satellite. DigitalGlobe designates Ball
Aerospace and Technology Corporation as the SSI.

(oo) “TERMINATION LIABILITY AMOUNT(S)” means the amounts listed as Termination Liability
Amounts in Exhibit 2.

(pp) “WORK” means all design, development, construction, manufacturing, labor, services, and
acts by Contractor and its subcontractors, including, tests to be performed, and any and all
Contract Deliverables, including the Instrument, Instrument Flight Software, Data and
Documentation, training, and equipment, materials, articles, matters, services, and things to be
furnished and rights to be transferred under this Agreement, or any subcontract entered into by
Contractor, all as further described in Exhibit 1.

1.2. Other Terms

Other terms in this Agreement are defined in the context in which they are used and shall have
the meanings there indicated.

1.3. Integration and Construction

The documents listed below in this Article 1.3, including any Attachments, Schedules, and
Annexes referenced therein constitute this Agreement and shall be deemed to constitute one fully
integrated agreement between the Parties. In the event of any conflict or inconsistency among the
provisions of the various documents of this Agreement, such conflict or inconsistency shall be
resolved by giving a descending level of precedence to the documents in the order set forth below:

	 	(a)	 	Terms and Conditions of this Agreement

	 
	 	(b)	 	Exhibit 1: Statement of Work

	 
	 	(c)	 	Exhibit 2: Milestone Payment and Termination Liability Schedule

	 
	 	(d)	 	Exhibit 3: Software License Agreement

	 
	 	(e)	 	Exhibit 4: Non-disclosure Agreement

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1.4. Headings

The Article headings are for convenience of reference only and shall not be considered in
interpreting the text of this Agreement.

2. Scope of Work

2.1. General

(a) In accordance with the requirements of this Agreement, Contractor shall provide and
Customer shall purchase the Work.

(b) Contractor shall furnish and perform the Work in accordance with the provisions of this
Agreement and in the manner specified in the following documents:

	 	(1)	 	Exhibit 1: Statement of Work

	 
	 	(2)	 	Exhibit 2: Milestone Payment and Termination Liability Schedule

	 
	 	(3)	 	Exhibit 3: Software License Agreement

(c) Contract Line Items. The contract line items under the contract shall be:

	 	(1)	 	CLIN 1: Instrument

	 
	 	(2)	 	CLIN 2: Data and Documentation

	 
	 	(3)	 	CLIN 3: Services (to be executed under separate agreement)

2.2. Contractor Work Commencement

Contractor shall commence the Work in compliance with the requirements of this Agreement and
will use reasonable efforts to perform sufficient Work to maintain the Delivery Dates for the
Deliverable Items, Deliverable Data and Documentation, and Deliverable Services. Such Work shall be
comprised of the completion or provision, as the context indicates, of the items more specifically
described in Exhibit 1.

3. Contract Price

3.1. Contract Price

The total Contract Price for the Instrument, Data and Documentation, and all other Work
required to be provided by Contractor under this Agreement is the Firm-Fixed-Price (“FFP”) amount
set forth in Exhibit 2.

3.2. Changes in Contract Price

This is a FFP Agreement. Except as otherwise expressly provided in this Agreement, the
Contract Price is not subject to any escalation or to any adjustment or revision.

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3.3. Taxes and Duties

(a) Taxes: All taxes and similar assessments, levies, and government-imposed obligations
arising with respect to any Contract Deliverables and/or support services (except for
Contractor’s income or franchise taxes) shall be the obligation of and be paid by Customer
whether such taxes become due upon any payments under the Agreement or upon a future tax
assessment as a result of an audit, or other event or notification by the relevant tax authority.
For this purpose and unless otherwise indicated below, taxes shall mean and include any and all
taxes imposed by the U.S. and its states and localities, sales and use, value added (including
reverse charge value added tax), turnover, import duty, import Value Added Tax (“VAT”), property,
excise, privilege or other fees, duties or taxes assessed by the sale, ownership, or use of the
Contract Deliverable(s), support services, and any goods provided under this Agreement.

(b) Sales and Use Taxes: All applicable payments for sales and use taxes shall be collected
from Customer by Contractor and remitted to the appropriate taxing authority in the legally
defined time frame determined by said taxing authority. To the extent that Customer determines
that it is exempt from any sales and use tax(es), Customer shall provide the Contractor with the
applicable and executed exemption certificate.

(c) Sales Tax Exemption: Certain Contract Deliverables are tangible personal property and
may be subject to Sales and Use Tax unless a properly completed Resale or Sales Tax Exemption
Certificate is provided by Customer to Contractor. Customer agrees to reimburse Contractor for
tax, interest, and any penalty assessed by any taxing authority where the claim for exemption is
denied or where the non-recurring engineering services are taxable as sales.

(d) Licenses, Gross Receipts, Business and Occupation Taxes: Each Party will be responsible
for its own licenses, gross receipts (with the exception of any sales taxes referred to as gross
receipts), and business and occupation taxes.

(e) Property Taxes: Each Party will be responsible for property taxes due on property owned
by the respective Party with the exception of any assessed property that constitutes a Contract
Deliverable. Customer will be responsible for any property taxes on Contract Deliverables.

(f) Other Taxes: Each Party will be responsible for its own corporate income or franchise
taxes based upon income and/or net worth.

4. Payment

4.1. Requests for Payment and Invoices

(a) Customer shall make Milestone Payments, and any other required payments under this
Agreement to Contractor in accordance with this Article 4.1 and Exhibit 2 as applicable.

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(b) The Parties have agreed upon a payment and termination liability schedule set forth in
Exhibit 2. Customer shall pay Contractor upon successful completion of each
Milestone and submission of a corresponding invoice as described herein. Contractor shall
prepare and deliver to Customer an invoice accompanied by a milestone certificate in the form of
Annex I to Exhibit 2 hereto (the “Milestone Certificate”) and such reasonable and appropriate
supporting data requested by Customer. Subject to the foregoing, Customer shall sign each
Milestone Certificate to signify Customer’s agreement that the applicable Milestone has been
completed. A Milestone shall not be regarded as completed, and no payment shall be made, until
all the Work required under the particular Milestone has been completed and documented in
accordance with applicable specifications and procedures and all the relevant documentation and
training required under this Agreement for such Milestone has been provided to Customer’s
reasonable satisfaction. In the event that Customer does not agree that a Milestone has been
completed, Customer shall notify Contractor in writing within ten (10) Business Days of receipt
of the Milestone Certificate. If it is determined by Customer, in its sole discretion, that
Contractor has not completed the Milestone as specified in Exhibit 2, Customer may withhold the
payment in full. Said withholding of payment, to the extent it is disputed by Contractor, shall
be subject to the disputes process identified in Article 4.3 (Disputed Amounts).

(c) Contractor shall telefax, electronically mail, mail (overnight or return receipt
requested) or hand-deliver signed copies of each invoice and accompanying certificate and any
supporting data to:

	 	 	 
	 

	 	DigitalGlobe, Inc.
	Address:

	 	1601 Dry Creek Drive
	 

	 	Suite 260
	 

	 	Longmont, CO 80503
	Contact:

	 	Finance Department
	Fax:

	 	[**Redacted**]

4.2. Payment

(a) Subject to the provisions of Article 4.1, Customer shall make, in full, each Milestone
Payment within [**Redacted**], unless otherwise specified in Exhibit 2, after receipt of invoice.
Said Milestone Payment(s) shall be made via wire transfer or Electronic Funds Transfer to the
following bank account as applicable:

[**Redacted**]

(b) In the event of anticipated early completion by Contractor of a Milestone in advance of
such Milestone completion date as set forth in Exhibit 2, Contractor may invoice for Milestone(s)
completed in advance of the Milestone completion date so long as Contractor provides Customer
with no less than thirty (30) days prior notice of the anticipated completion date to allow
Customer time to arrange for payment of the applicable Milestone. Customer reserves the right to
limit early payments to no more than [**Redacted**] in advance of the then applicable payment
schedule.

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4.3. Disputed Amounts

(a) If Customer does not agree that the Milestone associated with an invoice has been
satisfactorily completed, Customer shall give written notice to Contractor within ten (10)
Business Days after receipt by Customer of a Milestone Certificate. Upon receipt of such notice,
and to the extent that Contractor disputes said notice, the Parties’ respective Program Managers
shall meet and use good faith efforts to resolve such disagreement.

(b) If the Parties’ Program Managers fail to resolve such disagreement within thirty (30)
days after receipt by Customer of the Milestone Certificate, each Party will designate a member
of their respective executive teams to meet to resolve the dispute within fifteen (15) days after
the aforementioned thirty (30) days. In the event the designees cannot resolve such disagreement,
the senior executive officers of the Parties shall meet to resolve the dispute.

(c) In the event the senior executive officers cannot resolve such dispute within fifteen
(15) days of the aforementioned fifteen (15) days (within 60 days of receipt of Milestone
Certificate), either Party may seek resolution of such dispute pursuant to Article 22.2. In any
event, such unresolved dispute shall be referred to arbitration pursuant to Article 22.2.

4.4. Set Off

In the event one Party has not paid the second Party any amount that is due and payable to the
second Party under this Agreement, such second Party shall have the right to set off the undisputed
amount against payments due under this Agreement to the first Party.

4.5. Late Payment

For any undisputed payment under this Agreement that is overdue, the Party entitled to such
payment shall also be entitled to [**Redacted**]. This remedy [**Redacted**]. Late payment charges
will be billed on a separate invoice.

5. Access to Work

5.1. Facilities

(a) Contractor shall provide Customer Personnel reasonable access to all Work (including
work-in-progress, documentation, and testing) at the facilities of Contractor and, its
subcontractors as set forth in Exhibit 1, during regular business hours, or such other times as
Work is being performed under this Agreement. Said access shall be subject to the procedures and
requirements of the Contractor or its subcontractors, as applicable, and shall not unreasonably
interfere with such Work. Customer’s access to Work shall be coordinated through the Contractor’s
program office.,

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(b) Customer Personnel visiting any facility of Contractor or a subcontractor (i) will abide
by Contractor’s security regulations and/or those of its subcontractors and any and all
applicable Laws of the jurisdiction in which a Contractor or subcontractor facility is located;
(ii) will abide by all applicable Laws and Articles under this Agreement regarding its use
of any information, including any confidential/proprietary information, received in connection
with the access provided hereunder only in the performance of this Agreement; and (iii) will not
remove any data, documents, materials, or other items from any facility of the Contractor or its
subcontractors (other than Data and Documentation and other documents delivered to Customer
Personnel for Customer’s use and with no requirement to return to Contractor) without the consent
of Contractor’s Program Manager. The Customer shall execute any standard non-disclosure agreement
that is necessary for access to a subcontractor’s facility.

5.2. No Relief

The inspection, examination, observation, agreement to or approval, waiver or deviation by
either Party with respect to any design, drawing, specification, or other documentation produced
under this Agreement shall not relieve the other Party from fulfilling its contractual obligations.
Nor will the above actions result in any liability being imposed on the other Party, unless and to
the extent such waiver, deviation, agreement, or approval specifically provides in writing for such
relief to either Party or such imposition of liability on either Party.

5.3. Workers Compensation and Employer’s Liability

Contractor and Customer shall maintain worker’s compensation and employer’s liability
insurance covering all employees of Contractor and Customer engaged in the performance of this
Agreement for claims arising under any applicable Worker’s Compensation and Occupational Disease
Acts. Contractor and Customer shall maintain certificates evidencing such insurance available for
review upon request.

6. Delivery

Contract Deliverables listed in Exhibit 1 shall be delivered by Contractor to the destinations
specified in Exhibit 1 on or before the dates (“Delivery Dates”) specified in said Exhibit.
Delivery Dates may be adjusted in accordance with this Agreement.

7. RESERVED

8. Title and Risk of Loss

Transfer of title to and risk of loss for the Instrument, as detailed in Section 3.1 of
Exhibit 1, shall pass to the Customer at the time of Launch, as defined in Article 1.1. Transfer
of title to and risk of loss for each of the Deliverable Items listed in Section 3.1 of Exhibit 1,
excluding the Instrument, shall pass to Customer at Final Acceptance as indicated in Section 3.1 of
Exhibit 1. Any title transferred under this Agreement shall be free and clear of all liens and
encumbrances of any kind. Contractor shall purchase insurance covering the period between
completion of the post-shipment Instrument testing at the SSI facility and launch under separate
agreement. Customer shall reimburse Contractor for the total costs of the required insurance.

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9. Excusable Delay

9.1. Excusable Delay Defined

(a) With respect to Contractor’s performance of its obligations under this Agreement, an
“Excusable Delay” shall be any delay in the performance of the Work due to any cause beyond
Contractor’s reasonable control including, but not limited to: war, outbreak of national
hostilities, invasion or sabotage, Government sovereign acts; fire, earthquake, flood, epidemic,
explosion, or quarantine restriction; strike or work slow down; freight embargoes; acts of God;
any subcontractor delay due to any of the foregoing events; provided written notice is given to
Customer, in writing, within ten (10) Business Days after Contractor shall have first learned of
the occurrence of such an event. Notwithstanding the foregoing, failure by Contractor to provide
such notice shall not prevent such an event from qualifying as an Excusable Delay provided
Customer’s Program Manager has actual notice of such event by means of publicly and commonly
available sources (i.e. national or global coverage of major natural disaster) prior to Customer
suffering any prejudice from Contractor’s failure to provide such notice. Such notice to be
provided by Contractor, as required by the preceding provisions, shall include a detailed
description of the portion of the Work known to be affected by such delay. In all cases,
Contractor shall use reasonable efforts to avoid or minimize and/or work around such delay
through the implementation of any work-around plans, alternate sources, or other means Contractor
may utilize or expect to utilize to minimize a delay in performance of the Work. Contractor shall
also provide Customer prompt written notice when the event constituting an Excusable Delay
appears to have ended. This Article 9, including reliance on Excusable Delay, is only applicable
to Contractor. Delays applicable to Customer are set forth in Article 12.5.

(b) In the event Customer disputes the Excusable Delay, Customer shall inform Contractor in
writing within ten (10) Business Days from the date of receipt of written notice of the event
constituting an Excusable Delay and, if the Parties have not resolved the dispute within ten (10)
Business Days of Contractor’s receipt of written notice from Customer, the dispute shall be
resolved pursuant to Article 22.

9.2. Equitable Adjustments

(a) In the event of an Excusable Delay under Article 9.1, there shall be an equitable
adjustment made to the Delivery Schedule and Delivery Dates as set forth in Exhibit 2, as well as
any interim schedule events set forth in Exhibit 1; provided, however, Contractor acknowledges
and agrees that the occurrence of an Excusable Delay shall not entitle Contractor to an increase
in the Contract Price.

(b) In the event of an adjustment in the Delivery Date of the Instrument due to an Excusable
Delay, there shall be an adjustment in the Delivery Date of the Instrument as well as interim
schedule events only to the extent such Delivery Date or schedule is impacted by the Excusable
Delay.

(c) Customer may terminate this Agreement pursuant to Article 26.3 when it becomes known
that the aggregate of Contractor’s Excusable Delays will exceed
[**Redacted**]. Any dispute between the Parties as to the aggregate of Excusable Delay shall
be subject to procedures set forth in Article 22.

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10. Reserved

11. Corrective Measures in Instrument and Other Contract Deliverables

11.1. Notice of Defects

(a) Customer shall notify Contractor within [**Redacted**] Business Days in writing when
Customer becomes aware of a Defect existing in any Contract Deliverable or component part
thereof. Said Defect shall be capable of being demonstrated to Contractor. In the event
Contractor disagrees with Customer or Customer Personnel as to the existence or nature of a
Defect, Contractor shall so advise Customer in writing. In such event, the Parties shall
negotiate in good faith to determine what Defect, if any, exists and any action required to
remedy such Defect. Except to the extent written waivers are made, Customer’s failure to notify
Contractor of any Defect shall not constitute a waiver of any rights of Customer or obligations
of Contractor under this Agreement with respect to any such Defects.

(b) Contractor shall advise Customer as soon as practicable by telephone or e-mail and
confirm in writing any event, circumstance, or development that materially threatens the quality
or performance of any Contract Deliverables, or threatens the Delivery Dates established
therefore.

(c) Without limiting the generality of the foregoing, if the data available from the
Instrument shows that the Instrument contains a Defect, Contractor shall promptly inform Customer
of such Defect.

11.2. Duty to Correct

(a) Without limiting the obligations of Contractor or the rights of Customer under this
Agreement, prior to Final Acceptance, Contractor shall, at its expense, promptly correct any
Defect related to any Contract Deliverable or component thereof that Contractor or Customer
discovers during the course of the Work. The duty to correct is not waived regardless of prior
payments, , and notwithstanding that a payment may have been made in respect thereof, and
regardless of prior reviews, inspections, approvals, or acceptances (with the exception of
waivers and deviations previously agreed-upon). This provision is subject to the right of
Contractor to have any items containing a Defect returned at Contractor’s expense to Contractor’s
facility for Contractor to verify and correct the Defect.

(b) Contractor shall fulfill the foregoing obligations at its own cost and expense,
including all costs arising from charges for packaging, shipping, insurance, taxes, and other
matters associated with the corrective measures, unless it is reasonably determined after
investigation that Customer directly caused the Defect in question, in which case Customer shall
pay all such costs.

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(c) If Contractor fails to correct any material Defect with respect to the Instrument prior
to Satellite Launch or with respect to any other Contract Deliverable within a reasonable
time after notification from Customer; and after the Parties have followed the provisions of
Article 11.1 above;, then, with the prior written consent of Contractor (said consent not to be
unreasonably withheld), Customer may, by separate contract or otherwise, correct or replace such
items or services and Contractor shall pay to Customer the reasonable cost of such correction or
replacement. In the event of any dispute regarding the above, Article 22.2 shall apply. The
amount payable by Contractor shall be verified at Contractor’s request by an internationally
recognized firm of accountants appointed by Contractor.

(d) Contractor may at its option, either correct the Defect or seek a waiver.
Notwithstanding anything herein to the contrary, in the event there is a total loss of the
Instrument(s) prior to Delivery such that the Delivery of the Instrument(s) would be delayed by
more than [**Redacted**], then Customer shall have the option of either requiring that Contractor
replace the Work up to the point of loss at Contractor’s sole expense or return to Customer all
payments made by Customer as of the date of the loss.

(e) This duty to correct does not apply to CFE.

12. Changes in Scope of Work

12.1. Changes Directed by Customer

(a) Subject to paragraphs (b), (c) and (d) below, Customer shall be entitled to direct
changes to the Instrument during the performance of this Agreement when any such changes are
necessary for the Instrument to [**Redacted**]. Any [**Redacted**] requiring a change to the
Instrument between or among these items must be demonstrated to be of such magnitude that a
failure to proceed with the change could be reasonably expected have a material effect on the
performance of the Instrument or the overall mission. The Parties will agree upon the scope,
implementation, and technical direction of any change prior to proceeding with said change.

(b) Any change directed by Customer as described in paragraph (a) above shall be submitted
in writing to Contractor. Contractor shall respond to such directed change in writing to Customer
within [**Redacted**] after such directed change and shall include in such response the details
of the impact of such change on the Contract Price, Delivery Schedule, Instrument Performance
Specifications, or other terms of this Agreement.

(c) Customer shall notify Contractor in writing, within [**Redacted**] after receipt of
Contractor’s response, whether or not Customer agrees with and accepts Contractor’s response. If
Customer agrees with and accepts Contractor’s response, Contractor shall proceed with the
performance of this Agreement as changed immediately upon the execution by both Parties of an
Amendment reflecting such changes.

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(d) If the Parties cannot agree on a reasonable price or revised Delivery Schedule,
Instrument Specifications, or other item, as occasioned by Customer’s directed change, and
Customer still desires the directed change, Customer shall direct Contractor to proceed with the
change and Customer shall pay Contractor’s proposed price and accept the revised Delivery
Schedule or Instrument Specifications or other item pending any decision to the contrary under
Article 22. Contractor shall proceed with the Work as changed and Customer
may dispute the reasonableness of the proposed price, revised Delivery Schedule, or
performance specification under Article 22. In the event it is determined pursuant to such
dispute resolution or by the Parties’ mutual written agreement that Customer is entitled to a
full or partial refund of amounts paid under this paragraph (d), Customer shall be entitled to
interest on such refunded amounts, such interest running from the date of payment by Customer to
the date of refund at the [**Redacted**].

12.2. Changes Requested by Customer

In the event Customer desires to change the scope of work, the Delivery Schedules, or any
other term of this Agreement, Customer shall submit a detailed description of the requested change
to Contractor. Contractor shall respond within [**Redacted**] Business Days, with its proposal for
adjustments to the Contract Price, Delivery Schedule, and any other term of this Agreement. Subject
to mutual agreement, the Contract Price, Delivery Schedule, and/or any other affected term of this
Agreement shall be modified to incorporate the mutually agreed upon change. If the Parties
establish and agree that an advance target price is sufficient to initiate Work on the Customer
requested change, the Contractor shall proceed with the Work as modified. In such circumstances,
the final determination of the price, schedule, and any other affected term will be agreed upon
on/before [**Redacted**] after any decision to proceed.

12.3. Changes Requested by Contractor

(a) Subject to paragraphs (b) and (c) below, Contractor may request, during the performance
of this Agreement, any change within the general scope of this Agreement, including any change
that will add or delete Work, affect the design of the Instrument, change the method of shipping
or packing, or the place or time of Delivery, or will affect any other requirement of this
Agreement.

(b) Any changes as described in paragraph (a) above requested by Contractor shall be
submitted in writing to Customer at [**Redacted**] prior to the proposed date of the change. If
such Contractor requested change causes an increase or decrease or other impact in the Contract
Price, Delivery Schedule, Instrument Specifications, or other terms of this Agreement, Contractor
shall submit, with such request, a written proposal identifying such change and the impact
thereof on the Contract Price, Delivery Schedule, Instrument Specifications, or other terms of
this Agreement.

(c) Customer shall notify Contractor in writing, within [**Redacted**] after receipt of the
requested change proposal, whether or not Customer agrees with and accepts such change and the
price/schedule/performance or other impact thereof. If Customer agrees with and accepts
Contractor’s requested change and such impact thereof, Contractor shall proceed with the
performance of this Agreement as changed.

12.4. Pricing of Changes

When calculating the change in the Contract Price caused by changes in the Work pursuant to
this Article 12, such calculation shall be consistent with [**Redacted**].

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12.5. Delays Caused by Customer

(a) In the event Customer creates a delay by failure to act in a timely manner, or by an
action that in some way prevents or impedes Contractor from making progress, including, but not
limited to Customer’s failure to provide CFE and/or services in accordance with this Agreement’s
requirements, the Parties shall agree upon an equitable adjustment in the affected terms (including
price) of this Agreement under this clause to the extent of the schedule delay that Customer is
specifically responsible for causing.

(b) In the event Customer reasonably withholds acceptance and/or approvals, a delay shall not
be deemed to have been caused by Customer. In the event such withholding of acceptance and/or
approvals is unreasonable, a delay shall be deemed to have been caused by Customer to the extent,
but only to such extent, that such an act has caused the delay to the Delivery Schedule. This
Article 12.5 is the only remedy for Contractor for Customer-caused delays.

13. Permits and Licenses; Compliance with Laws

13.1. United States Permits, Licenses, and Laws

(a) Contractor shall, at its own expense, obtain all United States Government approvals,
permits, and licenses, including any required for export from or import into the United States,
as may be required for its performance of the Work.

(b) Contractor shall, at its expense, perform the Work in accordance with all applicable
Laws of the United States and the conditions of all applicable United States Government
approvals, permits, or licenses.

13.2. Review of Applications

(a) Contractor shall review with Customer any application relating to import or export that
Contractor makes to any government department, agency, or entity for any approval, permit,
license, or agreement, as may be required for performance of the Work, prior to submission of
such application. Contractor shall provide Customer a minimum of [**Redacted**] to review such
application prior to submission to such governmental entity, and Contractor shall in good faith
consider and accommodate any comments and proposed revisions made by Customer for incorporation
into such application.

(b) Customer shall reasonably cooperate with Contractor in Contractor’s efforts to procure
all such approvals, permits, licenses, and agreements.

13.3. Violation of Law

Customer shall not be responsible in any way for the consequences, direct or indirect, of any
violation by Contractor, its subcontractors, or their respective Affiliates or associates of any
U.S. Laws or Laws of any country whatsoever. Contractor shall not be responsible in any way
for the consequences, direct or indirect, of any violation by Customer, its subcontractors, or
their respective Affiliates or associates of any U.S. Laws or Laws of any country whatsoever.

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14. Subcontracts

14.1. Subcontracts

To the extent permitted under the relevant subcontract and subject to the subcontractor’s
written approval and Customer’s execution of any subcontractor-required non-disclosure agreement,
Contractor will provide, upon Customer’s reasonable request, copies of the technical content of the
subcontract.

14.2. No Privity of Contract

Nothing in this Agreement shall be construed as creating any contractual relationship between
Customer and any of Contractor’s subcontractors. Contractor is fully responsible to Customer for
the acts or omissions of its subcontractors and all persons used by Contractor or any of its
subcontractors in connection with performance of the Work. Except as provided for in Article 9, any
failure by any of Contractor’s subcontractors to meet their obligations to Contractor shall not
constitute a basis for Excusable Delay and shall not relieve Contractor from meeting any of its
obligations under this Agreement. Customer’s acknowledgment of any of Contractor’s subcontractors
shall not relieve Contractor from any obligations or responsibilities under this Agreement.

14.3. Assignment of Subcontracts

In accordance with Exhibit 1, Contractor shall make reasonable efforts in negotiating its
subcontracts to include an assignment clause that would enable the assignment of Contractor’s
subcontract(s) in the event of a properly executed termination under this Agreement. Upon said
termination of this Agreement and to the extent that Contractor has the legal and contractual right
under the subcontract to do so, upon Customer’s written request, Contractor shall promptly assign
said subcontract.

15. Personnel and Key Personnel

15.1. Personnel Qualifications

Contractor shall assign properly qualified and experienced personnel to the program
contemplated under this Agreement, and Contractor shall use reasonable efforts to retain such
personnel on Customer’s program for the duration of such program.

15.2. Key Personnel Positions

Contractor key personnel (“Key Personnel”) shall be the personnel set forth in Exhibit 1.

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15.3. Assignment of Key Personnel

(a) Contractor will assign individuals from within Contractor’s organization to the Key
Personnel positions to carry out the Work.

(b) Key Personnel will be familiar with programs similar to Customer’s program.

(c) Contractor’s initial assignment or reassignment of Key Personnel positions shall be as
set forth in Section 4.2 of Exhibit 1.

(d) Any objections that Customer may have with any of Contractor’s Key Personnel shall be
addressed as set forth in Section 4.2 of Exhibit 1.

16. Contractor’s Representations, Covenants, and Warranties

16.1. Organization; Good Standing and Qualification

Contractor represents that:

(a) it is a corporation duly organized, validly existing and in good standing under the Laws
of Delaware;

(b) it has all requisite power and authority to own and operate its material properties and
assets and to carry on its respective business as now conducted in all material respects; and

(c) it is duly qualified to transact business and is in good standing in each jurisdiction
in which the failure to so qualify would have a Material Adverse Effect.

16.2. Authorization

Contractor represents that:

(a) it has all requisite corporate power and authority to enter into this Agreement and to
carry out the transactions contemplated by this Agreement;

(b) the execution, delivery, and performance of this Agreement and the consummation of the
transactions contemplated by this Agreement have been duly authorized by the requisite corporate
action of Contractor and do not conflict with any other agreement or obligation to which it is a
party or which binds its assets; and

(c) this Agreement is a valid and binding obligation of Contractor, enforceable in
accordance with its terms, except Contractor makes no representation or warranty as to the
enforceability of remedies due to applicable bankruptcy, insolvency, moratorium, reorganization,
or similar laws relating to or affecting the enforcement of creditor’s rights or by reason of
general principles of equity.

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16.3. Contractor Warranties for Contract Deliverables

(a) Instrument (Pre-Launch): [**Redacted**], Contractor warrants that the Instrument
(excluding CFE) furnished under this Agreement shall comply with the requirements of
Exhibit 1 and be free from Defects (other than Defects waived in writing by the Customer).
If the Customer becomes aware of a Defect, Customer shall notify Contractor within [**Redacted**]
Business Days after discovery by Customer of the Defect. Except for Contractor’s obligations set
forth in paragraph (b) immediately below, the warranty herein shall immediately expire upon
Launch of the Satellite.

(b) Instrument(s) (Post-Launch): Immediately upon Launch, Contractor’s obligation to correct
any Defect in the Instrument(s) or components thereof (excluding CFE) is limited to using
reasonable efforts to correct any Defect in the Instrument if, and to the extent that, such
Defect may be corrected by transmitting Satellite commands and/or transmitting modifications in
the Instrument flight software in order to mitigate or eliminate the operational [**Redacted**]
following Instrument Final Acceptance.

(c) Other Contract Deliverables: With respect to all remaining Deliverable Items listed in
Section 3.1 of Exhibit 1, Contractor warrants that said Deliverable Items shall be free from
Defects (other than those Defects waived by Customer) for a period of [**Redacted**] following
the acceptance of the final version of the Deliverable Item.

(d) Services: Contractor warrants that it will perform all services related to the Work in
accordance with Contractor’s standards and practices for work similar in type, scope and
complexity of the Work.

(e) Data and Documentation: With respect to Data and Documentation, Contractor warrants that
said Data and Documentation shall be free from material errors or omissions related to the
operation of the Customer’s Instrument, for [**Redacted**] following acceptance of the final
version of the Deliverable Data and Documentation.

(f) Contractor’s obligations under this warranty are, at the Contractor’s sole discretion,
limited to inspection of the Contract Deliverable and repair or replacement of the Contract
Deliverable. It is understood that such a warranty repair does not renew the warranty term for
the Contract Deliverable. Notwithstanding the foregoing: (i) the warranty term for the Contract
Deliverable (or portion thereof) being repaired or replaced shall be tolled during the period of
such repair; and (ii) where a warranty repair involves a portion of the Contract Deliverable, and
the remaining portion of the Contract Deliverable cannot be effectively tested and or utilized
during the period of repair, then the warranty term for the remaining portion of the Contract
Deliverable shall be tolled during such period of repair. Contractor’s obligations hereunder are
expressly conditioned upon the following terms:

	 	(1)	 	In the event that the Contract Deliverable does not contain a Defect,
Customer shall reimburse Contractor for all reasonable expenses incurred during the
warranty determination.

	 
	 	(2)	 	This warranty does not apply to any portion of CFE or to any Contract
Deliverable or portion thereof that in any way has been repaired, altered, or
otherwise affected in any manner by any act of Customer or its subcontractor(s) so
as to affect the condition or performance of the Contract Deliverable or any
Contract Deliverable or portion of the Contract Deliverable that shall have been
subject to misuse, abuse, alteration, improper handling, improper testing or
installation by Customer or its subcontractors, whether by accident or other cause.

	 
	 	(3)	 	Before any Contract Deliverable is returned to the Contractor, Customer
shall obtain written authorization from the Contractor. Customer assumes the
responsibility for any/all unauthorized shipments. In the event that Contractor
repairs or replaces any part under this warranty, the cost of shipping the part
will be borne by the Contractor.

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(g) This warranty does not extend to any customers or clients of Customer.

(h) Contractor represents that the Government Furnished Equipment (GFE) set forth in Section
9.11 of the SOW and required for the testing or completion of the Deliverables will be available
to meet the Schedule. If any GFE is not available to meet the Schedule, Contractor agrees that
it will replace or find a suitable substitute for the GFE at no cost to Customer and no change to
the Schedule or the Contract Price.

16.4. Remedies

(a) Notwithstanding anything to the contrary herein, Customer shall have the right at any
time during the period of the warranties set forth in this Article 16 to require that any Work
not conforming in all material respects to this Agreement be promptly corrected or replaced at
Contractor’s expense with conforming Work. This is not a fix all failures warranty. This
warranty does not cover reimbursement for expenses for labor in gaining access to the instrument
to allow removal and installation of defective products.

(b) Contractor shall correct errors, including modifying code and making operational
modifications, in accordance with Article 11.2. Either Party shall in a timely manner provide the
other Party with access to engineering, software and operations support personnel, including
and/or involving such other Party’s subcontractors and vendors, where feasible, for the purpose
of resolving errors, problems, or issues relating to any Contract Deliverable to be delivered
pursuant to this Agreement. After lapse of the warranty period specified in Article 16.3 for the
duration of the operational life of the Instrument, the parties agree to enter into a time and
materials agreement for such services as the parties may agree upon after the date hereof.

(c) Under no circumstances, shall Contractor’s total liability under this warranty exceed
the price actually paid by Customer under this Agreement. Contractor’s warranties under this
agreement are solely limited to warranties identified above. Contractor disclaims all other
warranties, whether statutory or arising by operation of law, express or implied, including but
not limited to the warranties of merchantability and fitness for a particular purpose or any
other express or implied warranties.

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17. Customer’s Representations, Warranties and Covenants

17.1. Organization; Good Standing and Qualification

Customer represents that:

(a) it is duly organized, validly existing and in good standing under the Laws of the State
of Delaware;

(b) it has all requisite power and authority to own and operate its material properties and
assets and to carry on its respective business as now conducted in all material respects; and

(c) it is duly qualified to transact business and is in good standing in each jurisdiction
in which the failure to so qualify would have a Material Adverse Effect.

17.2. Authorization

Customer represents that:

(a) it has all requisite corporate power and authority to enter into this Agreement and to
carry out the transactions contemplated by this Agreement;

(b) the execution, delivery, and performance of this Agreement and the consummation of the
transactions contemplated by this Agreement have been duly authorized by the requisite corporate
action of Customer and do not conflict with any other agreement or obligation to which it is a
party or which binds its assets; and

(c) this Agreement is a valid and binding obligation of Customer, enforceable in accordance
with its terms, except Customer makes no representation or warranty as to the enforceability of
remedies due to applicable bankruptcy, insolvency, moratorium, reorganization, or similar laws
relating to or affecting the enforcement of creditor’s rights or by reason of general principles
of equity. Notwithstanding the foregoing, in the event of Customer’s bankruptcy, insolvency,
moratorium, reorganization, or equity proceeding, Customer shall use its best efforts to have
this Agreement confirmed according to its terms.

17.3. Third Party Intellectual Property

Customer represents and warrants that (i) it is either the owner of, or authorized to use and
incorporate, any Intellectual Property provided by Customer (or others on behalf of Customer); (ii)
Customer shall not require Contractor to pay any license fees or royalties for the use of any
Intellectual Property of Customer assuming the Intellectual Property was provided by the Customer
to the Contractor for the explicit purpose of accomplishing the Work as prescribed by this
Agreement; and (iii) Customer’s Intellectual Property and/or any modifications of Contractor’s
Intellectual Property by Customer (or any other entity, other than Contractor or its
subcontractors, acting on behalf of Customer) shall not infringe any Intellectual Property Right of
any third party. Customer is not aware of any claim to the contrary by any third party. This
warranty shall begin on the [**Redacted**]. In the event of a claim under this clause, Customer
shall use reasonable best efforts to secure an alternative source for the Intellectual Property or
to obtain a license from the party claiming infringement.

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18. Intellectual Property Rights

18.1. Contractor Furnished / Developed Technology and Data

Intellectual Property developed and/or furnished by Contractor and provided to Customer
pursuant to this Agreement shall be and remain the property of Contractor, or as applicable, its
subcontractor. Contractor hereby grants to the extent legally permitted to do so, a [**Redacted**]
license, without the [**Redacted**] for all of the Intellectual Property provided/developed by
Contractor pursuant to this Agreement for the purpose of developing, integrating, testing,
launching, operating, maintaining and repairing the Instrument and related ground command and
control, and image ordering, processing, and dissemination functions, designing “work-arounds” for
performance discrepancies, and designing, manufacturing, operating and maintaining ground stations
that communicate with the Satellite related to the program operations.

18.2. Customer Developed Technology and Data

Technology and data developed by Customer and provided to Contractor pursuant to this
Agreement shall be and remain the property of Customer. Contractor is granted a [**Redacted**]
license to [**Redacted**], for the purposes for which they were [**Redacted**] under this
Agreement. Such technology and data shall be marked with an appropriate legend which indicates that
it is licensed to Contractor for Contractor’s use so long as such use is associated with this
Agreement. The integration, modification etc. of Customer Intellectual Property shall in no way
diminish any of Customer’s rights thereto. The Statement of Work (Exhibit 1), and all Customer
specifications referenced therein, shall be the Intellectual Property of Customer.

18.3. Future Licenses

Should Contractor or Customer desire to use, for future applications outside the scope of this
Agreement, the technology and data which have been licensed hereunder, the Parties shall endeavor
to negotiate license agreements as appropriate for such future applications.

18.4. Contractor Intellectual Property Indemnity

(a) Contractor will defend at its expense any legal proceedings brought against Customer
and/or its officers, directors or employees, to the extent that it is based on a claim that the
design or use of any Contract Deliverable is a direct infringement of a [**Redacted**].
copyright, [**Redacted**] patent, or other Intellectual Property of a third party protected under
[**Redacted**] law, and will pay all damages and costs awarded by a court of final appeal
attributable to such a claim, provided that Customer (i) provides notice of a the claim promptly
to Contractor, (ii) gives sole control of the defense and settlement of same; (iii) provides to
Contractor all available information, assistance and authority to defend; (iv) has not settled
such proceedings without Contractor’s prior written consent. Should any Contract Deliverable or
portion thereof become, or in Contractor’s opinion be likely to become the subject of a claim of
infringement, Contractor shall, at its own expense and as Customer’s sole exclusive remedy, elect
to (i) obtain for Customer the right to use the Contract Deliverable as
contemplated herein, (ii) replace or modify the Contract Deliverable so that it becomes
non-infringing and still satisfies all other requirements.

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(b) Contractor shall have no liability for any infringement or claim which results from (i)
use of the Contract Deliverables in combination with any non-Contractor-provided equipment,
software or data, if such infringement would have been avoided by use of the Contract
Deliverables without such equipment, software, or data; (ii) Contractor’s compliance with designs
or hardware provided solely by Customer that when implemented results in such infringement.

18.5. Customer Intellectual Property Indemnity

(a) Customer will defend at its expense any legal proceedings brought against Contractor
and/or its officers, directors or employees, to the extent that it is based on a claim that the
design or use of any data, components, software and Intellectual Property furnished by Customer
to Contractor hereunder is a direct infringement of a [**Redacted**] copyright, [**Redacted**]
patent, or other Intellectual Property of a third party protected under [**Redacted**] law, and
will pay all damages and costs awarded by a court of final appeal attributable to such a claim,
provided that Contractor (i) provides notice of the claim promptly to Customer, (ii) gives sole
control of the defense and settlement of same; (iii) provides to Customer all available
information, assistance and authority to defend; (iv) has not settled such proceedings without
Customer’s prior written consent. Should any data, component, software or Intellectual Property
furnished by Customer to Contractor hereunder, or any portion thereof, become, or in Customer’s
opinion be likely to become the subject of a claim of infringement, Customer shall, at its own
expense and as Contractor’s sole exclusive remedy, elect to (i) obtain for Contractor the right
to use the data, components software or Intellectual Property furnished by Customer to Contractor
hereunder as contemplated herein, (ii) replace or modify the data, components, software or
Intellectual Property furnished by Customer to Contractor hereunder so that it becomes
non-infringing and still satisfies all other requirements.

(b) Customer shall have no liability for any infringement or claim which results from (i)
use of the CFE in combination with any non-Customer-provided equipment, software or data, if such
infringement would have been avoided by use of the CFE without such equipment, software, or data;
(ii) Customer’s compliance with designs or hardware provided solely by Contractor that when
implemented results in such infringement.

(c) The entire liability of either party with respect to infringement of any intellectual
property is set forth in the preceding provisions of this Article 18, and neither party shall
have any additional liability with respect to any alleged or proven infringement.

18.6. Source Code Escrow

Contractor agrees to place, or arrange to have placed in a software escrow account the source
code identified in Exhibit 1. The software escrow account will be established with a mutually
agreed upon institution naming Customer as beneficiary at Customer’s expense and under terms that
are mutually agreeable to both Parties. Customer Personnel, and consultants and
subcontractors who have executed an appropriate non-disclosure agreement, shall only use such
source code in support of the Contract Deliverables under this Agreement and such use shall be in
accordance with the terms and conditions of the licenses granted in this Agreement. The source code
shall be placed into the escrow account within twenty (20) Business Days after the shipment of a
Contract Deliverable and will remain in the Escrow Account for the operational life of the
Satellite in which the Instrument is installed.

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18.7. Software License

The Parties shall enter into a software license agreement (Exhibit 3) for the flight and
ground software.

18.8. Intellectual Property Representation

(a) Contractor represents and warrants that (i) it is either the owner of, or authorized to
use and incorporate, any Intellectual Property utilized or incorporated in any Contract
Deliverable or the manufacture of any Contract Deliverable or otherwise utilized in the
performance of the Work; (ii) Customer shall not be required to pay any license fees or royalties
apart from those included in the Contract Price to Contractor, any subcontractor or third party
for use of any Intellectual Property utilized or incorporated in any Contract Deliverable or the
manufacture of any Contract Deliverable or otherwise utilized in the performance of the Work; and
(iii) neither the Work nor any Intellectual Property utilized or incorporated in any Contract
Deliverable or the manufacture of any Contract Deliverable shall infringe any Intellectual
Property Right of any third party.

(b) Customer represents and warrants that (i) it is either the owner of, or authorized to
use and incorporate, any Intellectual Property to be furnished as CFE; (ii) Contractor shall not
be required to pay any license fees or royalties for use of any Intellectual Property utilized or
incorporated in any CFE; and (iii) no Intellectual Property utilized or incorporated in any CFE
shall infringe any Intellectual Property Right of any third party.

19. Indemnification

19.1. Contractor’s Indemnification

Subject to the indemnification procedures set forth in Article 19.3, Contractor shall
indemnify, defend, and hold harmless Customer and its Affiliates and their respective associates
from any and all Losses arising from, in connection with, or based on any claims made by third
parties (including Consultants and agents of Customer, Contractor, or any Subcontractor but not any
employee, officer, or director of Customer) regarding any of the following:

	 	(a)	 	injury to persons or death occurring before Instrument delivery and resulting
from any negligent act or omission of Contractor or its Subcontractors in the
performance of the Work;

	 
	 	(b)	 	damage to real or tangible personal property occurring before Instrument
delivery and resulting from any negligent act or omission of Contractor or its
Subcontractors in the performance of the Work;

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	 	(c)	 	any claims or occurrences Contractor is required to insure against pursuant to
Article 21 with the indemnification capped at the insurance limits specified in Article
21;

	 
	 	(d)	 	any claims made against Customer by any affiliate, consultant, or
Subcontractor for payment of work performed on products and services delivered to
Customer.

19.2. Customer’s Indemnification

Subject to the indemnification procedures set forth in Article 19.3, Customer shall indemnify,
defend, and hold harmless Contractor and its Affiliates and their respective associates from any
and all Losses arising from, in connection with, or based on any allegations made by third parties
(including Consultants and agents of Contractor, any Subcontractor, or Customer but not any
employee, officer, or director of Contractor) regarding any of the following:

	 	(a)	 	injury to persons or death occurring before Instrument delivery and resulting
from any negligent act or omission of Customer or its Subcontractors in the performance
of the Work;

	 
	 	(b)	 	damage to real or tangible personal property occurring before Instrument
delivery and resulting from any negligent act or omission of Customer or its
Subcontractors in the performance of the Work;

	 
	 	(c)	 	any claims or occurrences Customer is required to insure against pursuant to
Article 21 with the indemnification capped at the insurance limits specified in Article
21;

	 
	 	(d)	 	any claims made against Contractor by any affiliate, consultant, or
Subcontractor for payment of work performed on products and services delivered to
Contractor.

19.3. Indemnification Procedures

(a) Promptly after receipt by any entity entitled to indemnification under this Article 19
of notice of the commencement or threatened commencement of any civil, criminal, administrative,
or investigative reaction or proceeding involving a claim in respect of which the indemnified
Party will seek indemnification pursuant to this Article 19, the indemnified party shall notify
the indemnifying Party of such claim in writing. Failure to so notify the indemnifying Party
shall not relieve the indemnifying Party of its obligations under this Agreement except to the
extent it can demonstrate that it was prejudiced by such failure. Within 15 days following
receipt of written notice from the indemnified Party relating to any claim, but no later than 10
days before the date on which any response to a complaint or summons is due, the indemnifying
Party shall notify the indemnified Party in writing if the indemnifying Party elects to assume
control of the defense or settlement of that claim (a “Notice of Election”).

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(b) If the indemnifying Party delivers a Notice of Election relating to any claim within the
required notice period, so long as it is actively defending such claim, the indemnifying Party
shall be entitled to have sole control over the defense and settlement of such claim; provided
that (i) the indemnified Party shall be entitled to participate in the defense of such claim and
to employ counsel at its own expense to assist in the handling of such claim; (ii) where the
indemnified Party is so represented, the indemnifying Party shall
keep the indemnified Party’s counsel informed of each step in the handling of any such
claim; (iii) the indemnified Party shall provide, at the indemnifying Party’s request and
expense, such assistance and information as is available to the indemnified Party for the defense
and settlement of such claim; and (iv) the indemnifying Party shall obtain the prior written
approval of the indemnified Party before entering into any settlement of such claim or ceasing to
defend against such claim. After the indemnifying Party has delivered a Notice of Election
relating to any claim in accordance with the preceding paragraph, the indemnifying Party shall
not be liable to the indemnified Party for any legal expenses incurred by the indemnified Party
in connection with the defense of that claim. In addition, the indemnifying Party shall not be
required to indemnify the indemnified Party for any amount paid or payable by the indemnified
Party in the settlement of any claim for which the indemnifying Party has delivered a timely
Notice of Election if such amount was agreed to without the prior written consent of the
indemnifying Party.

(c) If the indemnifying Party does not deliver a Notice of Election relating to any claim
within the required notice period or fails to actively defend such claim, the indemnified Party
shall have the right to defend and/or settle the claim in such manner as it may deem appropriate,
at the cost and expense of the indemnifying Party. Provided that the indemnified Party acts in
good faith, it may settle such claim on any terms it considers appropriate under the
circumstances without in any way affecting its right to be indemnified hereunder. The
indemnifying Party shall promptly reimburse the indemnified Party for all such costs and
expenses.

19.4. Waiver of Subrogation

If a Party insures against any loss or damage it may suffer in respect of which it is required
to indemnify the other Party, its Affiliates and their respective associates pursuant to this
Article 19, it shall be a condition that the insuring Party arrange for the insurer to waive its
right of subrogation against such other Party and such other Party’s Affiliates and their
respective associates. Each Party shall be entitled to require proof from time to time that the
other Party has complied with its obligations under this Article 19.4. In the event a Party does
not comply with such obligations, the indemnities referred to in Articles 19.1, 19.2, and 19.3, as
applicable, shall extend to any claim that may be made by an insurer pursuant to an alleged right
of subrogation.

20. Reserved

21. Insurance

21.1. General Obligations

(a) Contractor represents that it has procured and will maintain insurance (“Ground
Insurance”) against all risks and loss or damage to the Instrument, and to any and all components
purchased for and intended to be integrated into the Instrument, in an amount not less than the
greater of (i) the replacement value of, or (ii) the amounts paid by Customer with
respect to, the Instrument and components. Contractor shall also maintain public liability
insurance, insurance of employees, and comprehensive automobile insurance, all in amounts
adequate for its potential liabilities under this Agreement. For the Instrument, such insurance
shall cover the period beginning at the effective date of this Agreement up to the moment of
Launch. In addition, Contractor shall require each of its subcontractors to provide and maintain
insurance in amounts for their respective potential liabilities. In addition, Contractor
represents that it has procured and will maintain at all times, from the effective date of this
Agreement through Launch, Ground Insurance for all other Work.

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(b) In the event of a loss under any of such policies, Customer shall be entitled to select
(i) to instruct Contractor to replace the Instrument, or (ii) payment of the proceeds under such
policies in an amount of the greater of (i) the replacement value of, or (ii) the amounts paid by
Customer with respect to, the Instrument and components

(c) Contractor shall provide a certificate of insurance certified by Contractor’s insurance
broker, evidencing such insurance coverage to Customer at Customer’s request.

(d) Contractor shall require its insurers to waive all rights of subrogation against
Customer. Customer shall be named as an additional insured under Contractor’s third-party
liability coverages, and as a loss payee as Customer’s interests may appear with respect to
property insurance.

21.2. Launch and In-Orbit Insurance

(a) Customer will be responsible for procuring launch insurance for the Satellite including
the Instrument. Customer will require its Insurers to waive all rights of subrogation against
Contractor. Contractor shall, at the written request of Customer, provide Customer with
reasonable assistance (such as providing required technical information) in Customer’s efforts to
procure launch insurance, and support at Customer’s meetings with insurers, if necessary.

22. Dispute Resolution

Any dispute, claim, or controversy (“Dispute”) between the Parties arising out of or relating
to this Agreement, including but not limited to any Dispute with respect to the interpretation,
performance, termination, or breach of this Agreement or any provision thereof shall be resolved as
provided in this Article 22. However, disputes as to payments pursuant to Article 4.3 shall be
resolved in accordance with the provisions of Articles 4.3 and 4.4.

22.1. Informal Dispute Resolution

Subject to the provisions of 22.2, prior to or concurrent with the initiation of formal
dispute resolution procedures, the Parties shall first attempt to resolve their Dispute informally,
in a timely and cost-effective manner, as follows:

(a) If, during the course of the Work, a Party believes it has a Dispute with the other
Party, the disputing Party shall give written notice thereof, which notice will describe the
Dispute and may recommend corrective action to be taken by the other Party. The Contractor
Program Manager shall promptly consult with the Customer Program Manager in an effort to
reach an agreement to resolve the Dispute.

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(b) In the event agreement cannot be reached within 10 days of receipt of written notice,
either Party may request the Dispute be escalated, and the respective positions of the Parties
shall be forwarded to an executive level higher than that under paragraph (a) above for
resolution of the Dispute.

(c) In the event agreement cannot be reached under paragraphs (a) or (b) above within a
total of 20 days after receipt of the written notice described in paragraph (a) above, either
Party may request the Dispute be escalated, and the respective positions of the Parties shall be
forwarded to the senior executive officer of each Party, and such executives shall meet during
such time to resolve the Dispute.

(d) In the event agreement cannot be reached under paragraphs (a), (b) or (c) above within a
total of 30 days after receipt of the written notice described in paragraph (a) above, either
Party may proceed with arbitration in accordance with Article 22.2.

22.2. Arbitration

(a) Any dispute or disagreement arising between the Parties in connection with the
interpretation of any Article or provision of this Agreement, or the compliance or non-compliance
therewith, or the validity or enforceability thereof, or any other dispute related to this
Agreement which is not settled to the mutual satisfaction of the Parties within thirty (30) days
(or such longer period as may be mutually agreed upon) from the date that either Party informs
the other, in writing, that such dispute or disagreement exists, shall be settled by arbitration
in accordance with the Rules of the American Arbitration Association, in effect on the date that
such notice is given. Arbitration shall be held in Denver, Colorado, U.S.A.

(b) The Party demanding arbitration of a controversy shall, in writing, specify the matter
to be submitted to arbitration and, simultaneously, choose and nominate a competent individual to
act as an arbitrator. Thereupon, within fifteen (15) days after receipt of such written notice,
the other Party shall, in writing, choose and nominate a second competent arbitrator. The two
arbitrators so chosen shall promptly select a third arbitrator, giving written notice to both
Parties of their choice and fixing a time and place at which both Parties may appear and be heard
with respect to the controversy at hand. In the event the two arbitrators fail to agree upon a
third arbitrator within a period of seven (7) days, or if, for any other reason, there is a lapse
in the naming of an arbitrator or arbitrators, or in the filling of a vacancy, or in the event of
failure or refusal of any arbitrator(s) to attend to or fulfill his or their duties, then upon
application by either Party to the controversy, an arbitrator or arbitrators shall be named by
the American Arbitration Association. The arbitration award made shall be final and binding upon
the Parties and judgment may be entered thereon, upon the application of either Party to any
court having jurisdiction. In no event may the arbitrators award any special, incidental,
indirect, consequential or punitive damages, including loss of profits or revenues, or
prejudgment interest.

(c) Each Party shall bear the cost of preparing and presenting its case. The cost of
arbitration, including the fees and expenses of the third arbitrator, will be shared equally by
the Parties unless the award otherwise provides.

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23. Launch Support and Launch

Contractor shall provide the Launch Support Services set forth in Exhibit 1.

24. Customer’s Responsibilities

(a) In addition to Customer’s responsibilities identified in this Agreement, Customer shall
also discharge those responsibilities, at no cost to Contractor or to Subcontractors, as set
forth in Exhibit 1 and below.

(b) Customer shall provide written notification to Contractor as early as practicable as to
the identity and nationality of its employees and Consultant(s) for whom access to Contractor’s
and Subcontractors’ facilities are required, and subsequent changes thereto, if any. It is
recognized that certain United States Government approvals may be required before such employees
and Consultant(s) have access to Work pursuant to the provisions of Article 5.

25. Failure to Make Adequate Progress

Notwithstanding Articles 20 and 26, if, at any time prior to Delivery of a Contract
Deliverable (but not thereafter), Contractor has failed to make adequate progress toward the
completion of such Contract Deliverable, including where such failure is due to the Contract
Deliverable or any component thereof being damaged or destroyed where such damage or destruction
does not constitute an Excusable Delay, such that Contractor, due to causes related to such
Contract Deliverable, will not be able to Deliver the Contract Deliverable by the applicable
Delivery Date (as such date may have been modified in accordance with this Agreement) for such
Contract Deliverable, then Customer shall be entitled to deliver to Contractor a Demand for
correction of the failure to make adequate progress. Such Demand shall state the details of the
failure. Within [**Redacted**] after receipt of the Demand, or such longer time as the Parties may
agree, Contractor shall submit to Customer a Correction Plan (in the level of detail feasible
within that timeframe) for achieving Delivery not later than the [**Redacted**] following the
originally scheduled Delivery Date. If such Correction Plan does not reasonably correct or offset
the effect of the failure so as to demonstrate that Delivery of the Contract Deliverable affected
thereby can be achieved within [**Redacted**] after the originally scheduled Delivery Date,
Customer may reject the Correction Plan, and Contractor shall revise the Correction Plan so as to
demonstrate that Delivery for the Contract Deliverable affected thereby can be achieved within
[**Redacted**] after the originally scheduled Delivery Date.

26. Termination

26.1. Termination for Customer’s Convenience

(a) Customer may, upon written notice to Contractor, terminate the Work in accordance with
the terms set forth below, and Contractor shall immediately cease Work in the manner and to the
extent specified below.

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(b) In the event of termination under this Article 26.1, and provided the termination is not
due to Contractor’s default under Article 26.2, Contractor shall be entitled to payment of an
amount equal to the Termination Liability Amount specified in Exhibit 2. The Customer shall pay
the above amount less the sum of all amounts previously received by Contractor in cash under this
Agreement. In no event shall the amounts payable pursuant to this Article 26.1 exceed the
Contract Price.

(c) If it is feasible for Contractor to use any items of terminated Work, it shall submit to
Customer an offer to acquire such items. If such offer is accepted by Customer, Contractor’s
termination invoice shall be credited with the agreed acquisition price.

26.2. Termination for Contractor’s Default

(a) Customer may terminate this Agreement upon service of written notice of default to
Contractor at any time after the occurrence of any of the following:

	 	(1)	 	Subject to any schedule adjustments pursuant to Article 9, Contractor
fails to meet any of the program Milestone events set forth in Exhibit 2 causing a
delay that could reasonably be expected to delay the Delivery Date of the
Instrument taking into consideration the grace period set forth in clause (2)
below.

	 
	 	(2)	 	The Instrument has not been delivered within [**Redacted**] of the
scheduled Delivery Date as set forth in Exhibit 2 and as may be extended in
accordance with this Agreement. Contractor commences a voluntary proceeding
concerning itself under any applicable bankruptcy, insolvency, reorganization,
adjustment of debt, relief of debtors, or similar law (“Insolvency Law”); or any
involuntary proceeding commences against Contractor under an Insolvency Law and the
petition has not been dismissed within [**Redacted**] after commencement of the
proceeding; or a receiver or custodian is appointed for or takes charge of all or a
substantial portion of the property of Contractor and such custodian or receiver
has not been dismissed or discharged within [**Redacted**]; or Contractor has taken
action toward the winding-up, dissolution, or liquidation of Contractor or its
business; or Contractor has been adjudicated insolvent or bankrupt or an order for
relief or any other order approving a case or proceeding under any Insolvency Law
has been entered; or Contractor has made a general assignment for the benefit of
creditors or becomes unable to pay its debts generally as they become due. Should
Contractor become a debtor in any bankruptcy proceeding, Contractor shall move to
assume or reject this Agreement within [**Redacted**] after the entry of any order
for relief; or

	 
	 	(3)	 	Contractor has purported to assign or transfer this Agreement in
violation of the provisions of Article 27.1 and Contractor fails to cure such
unauthorized purported assignment or transfer within thirty (30) days after
receiving written notice from Customer of the unauthorized purported assignment or
transfer.

(b) In the event Customer terminates this Agreement pursuant to paragraph (a), Contractor
shall be entitled to payment of an amount equal to the lesser of (i) the actual costs incurred
(subject to audit by a mutually agreeable third party) or (ii) the Termination Liability
Amount specified in Exhibit 2 minus [**Redacted**] , less the sum of all amounts already
received by Contractor in cash or cash equivalent under this Agreement.

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(c) If, after termination of this Agreement under the provisions of paragraph (a), it is
determined by arbitration, pursuant to Article 22, or admitted in writing by Customer, that
Contractor was not in default under the provisions of paragraph (a), or that any delay giving
rise to the default was excusable under the provisions of Article 9, such termination shall be
considered a Termination for Convenience by Customer and the provisions of Article 26.1 shall
apply.

26.3. Termination for Excusable Delay

(a) Customer may, upon written notice to Contractor, immediately terminate this Agreement,
if and when it becomes reasonably certain that the aggregate of Excusable Delays will exceed
[**Redacted**].

(b) In the event of termination under this Article 26.3, Contractor shall be entitled to the
lesser of (i) the actual costs incurred plus a profit equal to [**Redacted**] and (ii) the
Termination Liability Amount specified in Exhibit 2, in either case less the sum of all amounts
received by Contractor in cash or cash equivalents under this Agreement.

(c) In the event it is determined by arbitration pursuant to Article 22 or by written
agreement of the Parties that Customer wrongfully terminated this Agreement under this Article
26.3, such termination shall be considered a Termination for Convenience by Customer and the
provisions of Article 26.1 shall apply.

26.4. Expiration of Termination Right

Notwithstanding the foregoing, Customer’s right to terminate this Agreement pursuant to
Articles 26.1 through 26.3 shall expire upon Final Acceptance of the last Deliverable Item.

26.5. Termination for Customer’s Default

(a) Contractor may stop Work or terminate this Agreement in whole or in part upon service of
written notice of default to Customer at any time after the occurrence of any of the following:

	 	(1)	 	Customer fails to make any undisputed milestone or other payment when
due (including any grace periods) and fails to cure such breach within
[**Redacted**] following receipt of notice from Contractor, or

	 
	 	(2)	 	Customer commences a voluntary proceeding concerning itself under any
applicable bankruptcy, insolvency, reorganization, adjustment of debt, relief of
debtors or similar law (“Insolvency Law”); or any involuntary proceeding commences
against Customer under an Insolvency Law and the petition has not been dismissed
within [**Redacted**] after commencement of the proceeding; or a receiver or
custodian is appointed for or takes charge of all or a substantial portion of the
property of Customer and such custodian or receiver has not been dismissed or
discharged within [**Redacted**]; or Customer has taken action
toward the winding-up, dissolution, or liquidation of Customer or its business; or
Customer has been adjudicated insolvent or bankrupt or an order for relief or any
other order approving a case or proceeding under any Insolvency Law has been
entered; or Customer has made a general assignment for the benefit of creditors or
becomes unable to pay its debts generally as they become due. Should Customer become
a debtor in any bankruptcy proceeding, Customer shall move to assume or reject this
Agreement within [**Redacted**] after the entry of any order for relief; or

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	 	(3)	 	Customer has purported to assign or transfer this Agreement in
violation of the provisions of Article 27.1 and Customer fails to cure such
unauthorized assignment or transfer within [**Redacted**] after receiving written
notice from Contractor of such unauthorized purported assignment or transfer by
Customer.

(b) Except as specified in this Agreement, Contractor shall not have the right to terminate
or suspend this Agreement.

26.6. Consequence of Termination; Invoice, Audit

(a) Upon receipt of a notice of termination, as provided in this Article 26, Contractor
shall take the following actions:

	 	(1)	 	stop Work under this Agreement on the date and to the extent specified
in the notice of termination, except those services that are specifically intended
to be provided in connection with a termination of this Agreement;

	 
	 	(2)	 	withhold delivery of any of the items to be supplied hereunder until
Contractor has received full payment under this Article 26;

	 
	 	(3)	 	place no further orders or subcontracts for materials, services, or
facilities to the extent they relate to the performance of the Work terminated;

	 
	 	(4)	 	terminate orders and subcontracts to the extent they relate to the
performance of the Work terminated;

	 
	 	(5)	 	settle all outstanding liabilities and all claims arising out of such
termination of orders and subcontracts for materials, services, or facilities; and

	 
	 	(6)	 	take such action as may be reasonably necessary, or as Customer may
direct, for the protection and preservation of the property related to this
Agreement that is in the possession of Contractor or any subcontractor and in which
Customer has or may acquire an interest.

(b) Upon termination of this Agreement in accordance with this Article 26, with regard to
any amounts payable by Customer to Contractor hereunder, Contractor shall submit an invoice to
Customer within [**Redacted**] after the termination date, which invoice shall specify the amount
due to Contractor from Customer pursuant to this Article 26. By notice in writing received by
Contractor no later than [**Redacted**] after receipt of Contractor’s invoice pursuant to this
Article 26, Customer may dispute the amount specified in said invoice. In the event Customer does
not so notify Contractor that it disputes the amount in Contractor’s
invoice within [**Redacted**] after receipt thereof, Customer shall be deemed to have
accepted such invoice.

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(c) Contractor shall be entitled to payment by Customer of undisputed amounts in such
invoice within [**Redacted**] after Customer’s receipt of the invoice, and with respect to
disputed interest amounts, [**Redacted**] after the resolution of such dispute. Payment of such
amount by any Financing Entity on behalf of Customer shall relieve Customer from its obligation
to make such payment. In the event Customer terminates this Agreement as provided in this Article
26, Contractor, if requested in writing by Customer, shall assign to Customer or its designee,
such Subcontracts as requested by Customer, to the extent permitted by such Subcontracts.

(d) Upon completion of all payments in accordance with this Article 26, Customer may require
Contractor to transfer to Customer in the manner and to the extent directed by Customer, title to
and possession of any items (of which title would have passed) and assign licenses and
subcontracts (to the extent they would have been assigned per the Agreement) comprising all or
any part of the Work terminated (including all Work-in-progress, parts and materials, and all
inventories and associated warranties), and Contractor shall, upon direction of Customer, protect
and preserve property at Customer’s expense in the possession of Contractor or its Subcontractors
in which Customer has an interest and shall facilitate access to and possession by Customer of
items comprising all or part of the Work terminated. Alternatively, Customer may request
Contractor to make a reasonable, good faith effort to sell such items and to remit any sales
proceeds to Customer less a deduction for costs of disposition reasonably incurred by Contractor
for such efforts. To the extent Contractor’s compliance with this paragraph (d) requires
governmental approvals and Contractor cannot, with the exercise of commercially reasonable
efforts, procure such approvals, Contractor shall be excused from performing its obligations
under this paragraph (d).

(e) Payment of the amount payable by Customer to Contractor pursuant to paragraph (d) above
shall constitute a total discharge of Customer’s liabilities to Contractor for termination
pursuant to this Article 26.

(f) The amounts payable by Contractor under paragraph (d) above shall be verified at
Customer’s request and expense by an internationally recognized firm of accountants appointed by
Customer for that purpose subject to approval of Contractor.

26.7. Security Interests

In the event Contractor becomes insolvent or bankrupt and is unable to provide adequate
assurance of performance acceptable to Customer, Customer shall have the right to take possession
of the Deliverables and/or the components thereof, and shall have a perfected security interest to
the extent of payments by Customer to Contractor. [**Redacted**].

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27. General

27.1. Assignment

(a) This Agreement can be collaterally assigned, pledged or encumbered to any financial
institution for making loans or otherwise extending credit to either Party. Neither Party may
assign any rights or obligations hereunder without the prior express written consent of the
other, except: (i) to a third party pursuant to a merger, sale of stock or all or substantially
all assets, (ii) to a subsidiary, or other corporate reorganization in which all or substantially
all of the assets associated with this Agreement is transferred, or (iii) the involuntary
transfer as a result of this Agreement being taken by a financial institution following the
default and declaration of default by the financial institution of material obligations under the
financing or refinancing arrangement of the Party. Any purported assignment, transfer or
subcontract shall be void and ineffective without such written consent; such permission will not
be unreasonably withheld. Subject to the above restrictions on assignment, this Agreement shall
inure to the benefit of and bind the successors and assigns of the Parties.

(b) Customer shall not, without the prior written approval of Contractor, assign, mortgage,
charge, or encumber this Agreement or any part thereof, or merge with or into or sell all or
substantially all its assets to any other entity (except to its parent company or a wholly-owned
direct or indirect subsidiary company of Customer, or any person or entity acquiring all or
substantially all the assets of Customer (through merger, stock or asset acquisition,
recapitalization, or reorganization) where such merger, acquisition, recapitalization, or
reorganization adversely affects Contractor’s rights under this Agreement); provided, however,
Contractor shall provide its approval, if in Contractor’s reasonable judgment, Contractor’s
rights under this Agreement are not and would not be adversely affected thereby.

(c) The assigning Party shall reimburse the other Party for all reasonable expenses incurred
by the other Party (and invoiced in reasonable detail) in obtaining advice from its external
financial and legal advisors relating to the assigning Party’s proposed assignment or transfer.

(d) This Agreement shall be binding on the Parties and their successors and permitted
assigns. Assignment of this Agreement shall not relieve the assigning Party of any of its
obligations nor confer upon the assigning Party any rights except as provided in this Agreement.

27.2. Entire Agreement

This Agreement, including the Exhibits attached hereto, constitutes the entire understanding
and agreement between the Parties regarding the Work and all obligations set forth herein and
supersedes all prior and contemporaneous communications, negotiations, and other agreements either
written or oral unless expressly incorporated by reference into this Agreement.

DigitalGlobe Proprietary and Confidential

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27.3. Amendments / Modifications

This Agreement, including any and all of its Schedules, Attachments, Annexes, Exhibits and
Appendices thereto, may not be amended, modified, supplemented, or otherwise altered except by a
written instrument of subsequent date signed by an officer of Contractor, or another person
designated in writing by any such officer to sign such an instrument and a senior vice president of
Customer, or another person designated in writing by any such Customer senior vice president to
sign such an instrument.

27.4. Severability

In the event any one or more of the provisions of this Agreement shall for any reason be held
to be invalid or unenforceable, the remaining provisions of this Agreement shall be unimpaired and
the invalid or unenforceable provision shall be replaced by a mutually acceptable provision, which,
being valid and enforceable, comes closest to the intention of the Parties with respect to the
overall Agreement and the invalid or unenforceable provision.

27.5. Applicable Law

Except as provided in Article 22, this Agreement and performance under it shall be governed
by, construed, and enforced in accordance with the laws of the State of Colorado, without regard to
conflict of laws or provisions thereof.

27.6. Notices

(a) All notices, requests, demands, and determinations under this Agreement, including any
required under Article 27.1 (Assignment), (other than routine operational communications), shall
be in writing and shall be deemed duly given (i) when delivered by hand, (ii) two (2) Business
Days after being given to an express courier with a reliable system for tracking delivery, or
(iii) when sent by facsimile (confirmed by the specific individual to whom the facsimile is
transmitted) with a copy sent by another means specified in this Article 27.6, and addressed as
follows:

	 	 	 
	Customer:

	 	DigitalGlobe, Inc.
	 

	 	1601 Dry Creek Drive
	 

	 	Suite 260
	 

	 	Longmont, Colorado 80503
	 

	 	Tel: [**Redacted**]
	 

	 	Fax: [**Redacted**]
	 

	 	Attn.: [**Redacted**]
	 
	 	 
	Contractor:

	 	ITT Space Systems Division
	 

	 	1447 St. Paul Street
	 

	 	P.O. Box 60488
	 

	 	Rochester, NY 14606-0488
	 

	 	Tel: [**Redacted**]
	 

	 	Fax: [**Redacted**]
	 

	 	Attention: [**Redacted**]

(b) A Party may from time to time change its address or designee for notification purposes
by giving the other Party prior written notice of the new address or designee and the date upon
which it will be effective.

DigitalGlobe Proprietary and Confidential

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27.7. Relationship of the Parties

Both Parties are independent contractors under this Agreement. Nothing contained in this
Agreement is intended nor is to be construed so as to constitute Contractor and Customer as
partners, agents or joint ventures with respect to this Agreement. Neither Party shall have any
express or implied right or authority to assume or create any obligations on behalf of or in the
name of the other Party or to bind the other Party to any contract, agreement, or undertaking with
any third party.

27.8. Survival

The following Articles, and the provisions contained therein, shall be deemed to survive the
termination (for any reason) or expiration of this Agreement, and, accordingly, such Articles shall
remain applicable and enforceable in accordance with their terms:

	 	(a)	 	Article 1 (Definitions and Construction);

	 
	 	(b)	 	Article 8 (Title and Risk of Loss);

	 
	 	(c)	 	Article 9 (Excusable Delay);

	 
	 	(d)	 	Article 16.3 (Contractor’s Warranties for Contract Deliverables);

	 
	 	(e)	 	Article 18 (Intellectual Property Rights);

	 
	 	(f)	 	Article 19 (Indemnification);

	 
	 	(g)	 	Article 20 (Liquidated Damages for Late Delivery);

	 
	 	(h)	 	Article 22 (Dispute Resolution);

	 
	 	(i)	 	Article 26 (Termination);

	 
	 	(j)	 	Article 27 (General);

	 
	 	(k)	 	Exhibit 3 (Worldview 3 Instrument Software License Agreement)

27.9. No Third Party Beneficiaries

This Agreement is entered into solely between, and may be enforced only by, Customer and
Contractor and their permitted assigns. This Agreement shall not create any rights in third
parties, including suppliers and customers of either Party or create any obligations of a Party to
any such third parties.

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WV3 Instrument Purchase Agreement 60151

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27.10. Consent and Approvals

Except where expressly provided as being in the sole discretion of a Party, where agreement,
approval, acceptance, consent, or similar action by either Party is required under this Agreement,
such action shall not be unreasonably delayed or withheld. An approval or consent given by a Party
under this Agreement shall not relieve the other Party from responsibility for complying with the
requirements of this Agreement, nor shall it be construed as a waiver of any rights under this
Agreement, except as and to the extent otherwise expressly provided in such approval or consent.

27.11. No Waiver Remedies

No failure or delay by any Party in exercising any right, power or privilege under this
Agreement will operate as a waiver of such right, power or privilege. A single or partial exercise
of any right, power or privilege will not preclude the exercise of any other or further right,
power or privilege. The rights and remedies in the Agreement are cumulative and not exclusive of
any rights and remedies provided by law.

27.12. Covenant of Good Faith

Each Party agrees that, in respective dealings with the other Party under or in connection
with this Agreement, it shall act in good faith.

27.13. Limitation of Liability

Notwithstanding any other provision in this Agreement to the contrary: (1) in no event shall
either party be liable to the other party or any other person or entity for any special, exemplary,
indirect, incidental, consequential, or punitive damages of any kind or nature whatsoever
(including without limitation, lost revenues, profits, savings, business) or loss of records or
data, even if such party has been informed in advance of the possibility of such damages;
[**Redacted**] arising out of, or resulting from this Agreement’s performance or non-performance or
breach thereof, and (3) at the time liability attaches to Contractor, in no event shall
[**Redacted**] by the Contractor.

27.14. Public Announcements.

Neither Party, nor any of their officers, directors, employees, agents or representatives
shall make any disclosure except as may be required by law or purposes of financing, or public
announcement with respect to the transaction contemplated by this Agreement without prior written
approval of the other Party.

27.15. Non-Disclosure of Proprietary Information (Exhibit 4)

The Parties have entered into a standard nondisclosure agreement governing the use, protection
and disclosure of confidential and proprietary information.

DigitalGlobe Proprietary and Confidential

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27.16. Time Sensitive Delivery.

The timely delivery of the instruments under this Agreement directly impacts the timely
completion of Customer’s project. Failure to deliver in strict compliance with the terms of this
Agreement will cause Customer losses related to the project and other contractors requiring these
instruments to complete this project. Thus, time is of the essence under this Agreement.

IN WITNESS WHEREOF, this Agreement has been executed on behalf of Customer and Contractor by
persons authorized to act on their behalf.

DigitalGlobe, Inc. ITT Space Systems. LLC

	 	 	 	 	 	 	 
	BY:

	 	/s/ Yancey Spruill
 

	 	 	 	[**Redacted**] 
	 
	 	 	 	 	 	 
	SIGNATURE: Yancey Spruill	 	 	 	[**Redacted**]
	 
	 	 	 	 	 	 
	TITLE:

	 	Executive Vice President &

Chief Financial Officer
	 	 	 	[**Redacted**]
	 
	 	 	 	 	 	 
	[**Redacted**]	 	 	 	[**Redacted**]

DigitalGlobe Proprietary and Confidential

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36

 

	 	 	 
	

FOIA CONFIDENTIAL TREATMENT REQUESTED
	 	WV3 Instrument Statement of Work

Doc Number 10329744

PORTIONS OF THIS EXHIBIT MARKED BY [**Redacted**] HAVE BEEN OMITTED PURSUANT TO A

REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

EXHIBIT 1 to Agreement 60151

Statement of Work

for the

WorldView 3 Instrument

	 	 	 	 	 
	 

	 	Document Number
	 	 10329744
	 

	 	Release Date:
	 	 August 26, 2010
	 

	 	Issue/Revision
	 	 Initial Release
	 

	 	Prepared by:
	 	 Jim McClelland
	 

	 	Approved by:
	 	 Steve Linn

RESTRICTION ON USE, PUBLICATION, OR DISCLOSURE OF PROPRIETARY INFORMATION

This document contains information proprietary and confidential to DigitalGlobe Incorporated, to
its subsidiaries, or to a third party to whom DigitalGlobe Incorporated may have a legal obligation
to protect such information from unauthorized disclosure, use or duplication. Any disclosure, use
or duplication of this document or of any of the information contained herein for other than the
specific purpose for which it was disclosed is expressly prohibited, except as DigitalGlobe
Incorporated may otherwise agree to in writing. This document may only be used for the purpose for
which it is provided. All copies of this document are the sole property of DigitalGlobe and will be
returned promptly upon request.

 

 

 

	 	 	 
	

	 	WV3 Instrument Statement of Work

Doc Number 10329744

Table Of Contents

	 	 	 	 	 
	REVISIONS
	 	 	III	 
	1.0 INTRODUCTION
	 	 	1	 
	1.1 Definitions
	 	 	 1	 
	1.2 Program Overview
	 	 	 2	 
	1.3 System Description
	 	 	 2	 
	2.0 DOCUMENTS
	 	 	3	 
	2.1 Applicable Documents
	 	 	 3	 
	2.2 Reference Documents
	 	 	 3	 
	3.0 CONTRACT DELIVERABLES
	 	 	5	 
	3.1 Deliverable Items
	 	 	 5	 
	3.2 Deliverable Data Items
	 	 	 5	 
	3.3 Deliverable Services
	 	 	 5	 
	4.0 PROGRAM MANAGEMENT
	 	 	6	 
	4.1 Program Philosophy
	 	 	 6	 
	4.2 Program Management Structure (CDIL PM-1)
	 	 	 6	 
	4.3 DigitalGlobe Management
	 	 	 6	 
	4.4 Master Program Schedule (CDIL PM-2)
	 	 	 7	 
	4.5 Meetings & Reviews
	 	 	 9	 
	4.6 Documentation Management
	 	 	11	 
	4.7 Action Item List (CDIL PM-7)
	 	 	12	 
	4.8 Financial Management
	 	 	13	 
	4.9 Contract Change Control
	 	 	13	 
	4.10 Risk Management Report (CDIL PM-9)
	 	 	13	 
	4.11 DigitalGlobe On-Site Representatives
	 	 	14	 
	5.0 DESIGN
	 	 	15	 
	5.1 General
	 	 	15	 
	5.2 Design Reviews
	 	 	15	 
	5.3 Design Data
	 	 	15	 
	5.4 Documentation
	 	 	20	 
	6.0 PRODUCT ASSURANCE
	 	 	21	 
	6.1 Product Assurance Plan (CDIL QA-1)
	 	 	21	 
	6.2 Parts, Materials, and Processes
	 	 	21	 
	6.3 As-Built Configurations and Conformance
	 	 	22	 
	6.4 Product Assurance Reviews (CDIL QA-7)
	 	 	23	 
	6.5 Contamination Control Plan (CDIL QA-8)
	 	 	23	 
	6.6 Failure Reports (CDIL QA-9)
	 	 	23	 
	7.0 PROCUREMENT
	 	 	24	 
	7.1 General
	 	 	24	 
	7.2 Reviews
	 	 	24	 
	7.3 Program Subcontract Status Report (CDIL PT-1)
	 	 	24	 
	7.4 Subcontract Flow-downs
	 	 	24	 
	7.5 Test Connectors and Connector Savers
	 	 	24	 

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	8.0 PRODUCTION ACTIVITIES
	 	 	26	 
	8.1 General
	 	 	26	 
	8.2 Production Process
	 	 	26	 
	8.3 Access
	 	 	26	 
	8.4 Production Documentation
	 	 	26	 
	9.0 INTEGRATION AND TEST ACTIVITIES
	 	 	27	 
	9.1 General
	 	 	27	 
	9.2 Component / Subsystem Level Testing
	 	 	27	 
	9.3 Integration and Test
	 	 	27	 
	9.4 Post-Shipment Instrument Testing
	 	 	28	 
	9.5 Supporting Documents
	 	 	28	 
	9.6 System Test Plans (CDIL PT-5)
	 	 	29	 
	9.7 System Test Reports (CDIL PT-6)
	 	 	29	 
	9.8 End-Item Data Package Reviews
	 	 	29	 
	9.9 Test Reviews
	 	 	29	 
	9.10 Un-Interruptible Power Supply
	 	 	29	 
	9.11 Government Furnished Equipment
	 	 	29	 
	10.0 CUSTOMER FURNISHED EQUIPMENT
	 	 	30	 
	[**Redacted**]
	 	 	30	 
	[**redacted**]
	 	 	30	 
	[**redacted**]
	 	 	30	 
	[**redacted**]
	 	 	30	 
	11.0 STORAGE AND DELIVERY
	 	 	31	 
	11.1 General
	 	 	31	 
	11.2 Pre-Ship Review
	 	 	31	 
	11.3 Pre-Shipment Storage
	 	 	31	 
	11.4 Pre-Shipment Retest
	 	 	31	 
	11.5 Shipping and Delivery
	 	 	32	 
	12.0 SPACECRAFT SYSTEM INTEGRATION AND TEST
	 	 	32	 
	13.0 LAUNCH AND MISSION SUPPORT
	 	 	33	 
	13.1 Training
	 	 	33	 
	13.2 Command and Telemetry Handbook (CDIL LM-2)
	 	 	33	 
	13.3 Procedure Development Support
	 	 	33	 
	13.4 Commissioning Plan Development Support
	 	 	33	 
	13.5 Anomaly Preparations
	 	 	33	 
	13.6 Mission Operations Support [**Redacted**]
	 	 	34	 
	13.7 Software Test Bench
	 	 	34	 
	14.0 RESERVED
	 	 	35	 
	15.0 FACILITIES
	 	 	35	 
	ATTACHMENT 1: CONTRACT DATA ITEMS LIST
	 	 	1	 
	ATTACHMENT 2: CUSTOMER FURNISHED EQUIPMENT
	 	 	1	 

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	 	WV3 Instrument Statement of Work

Doc Number 10329744

Revisions

	 	 	 	 	 	 	 	 	 
	REV 0.1
	Page	 	Paragraph	 	Description	 	Was	 	Is
	All

	 	 	 	Incorporate previous changes to Statement of Work —[**Redacted**]	 	 	 	 
	All

	 	 	 	Updates as negotiated to establish the WV3 Baseline SOW	 	 	 	 

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	 	WV3 Instrument Statement of Work

Doc Number 10329744

1.0 Introduction

The Statement of Work defines those tasks to be performed by the WorldView-3 (WV3) Instrument
Contractor (Contractor), in defining, designing, producing, testing, verifying, and preparing for
launch, a WorldView-3 Instrument required to achieve the schedule provided herein. This document
also defines the scope of work required from DigitalGlobe (Customer), the Space Segment Integrator
(SSI), and associated subcontractors in order for the Contractor to execute this contract
successfully.

Associate contractors under contract to DigitalGlobe will provide the WorldView Spacecraft Bus,
Satellite Integration, and the Launch Vehicle Segment.

1.1 Definitions

In this Statement of Work, the following terms shall have the meaning stated hereunder:

	 	 	 
	Agreement

	 	Instrument Purchase Agreement 60151
	 
	 	 
	Authorization To 

Proceed (ATP)

	 	Effective date of work commencement per the Agreement
and this SOW
	 
	 	 
	Delivery

	 	Delivery of a WV3 Instrument is defined as delivery
to the Space Segment Integrator such that the WV3
Instrument is available for integration with the
Spacecraft Bus and is known to meet specified
requirements.
	 
	 	 
	 

	 	Delivery of a WV3 Instrument occurs upon the later of:

	 	1.	 	Post-shipment functional testing of the flight
hardware at the SSI facility, completion of related
data analysis, and post-shipment test data review

	 
	 	2.	 	Submittal by Contractor and acceptance by
DigitalGlobe of all supporting documentation to
demonstrate compliance with this Statement of Work
including all Applicable Documents and Interface
Control Documents.

	 	 	 
	 

	 	Delivery of a WV3 Instrument analytical model, such
as a thermal model or a finite element model (FEM),
is defined as delivery to the Space Segment
Integrator such that the model can be used for
satellite-level analysis. Delivery of an analytical
model will be complete after verification by the SSI
of the model’s usability.
	 
	 	 	 
	Final Acceptance

	 	Occurs following Initial Acceptance upon submittal
and acceptance by DigitalGlobe of all outstanding
Deliverable Data Items and requirements verification
documentation.

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	 	WV3 Instrument Statement of Work

Doc Number 10329744

	 	 	 
	Initial Acceptance

	 	Occurs upon the later of:

	 	1.	 	Completion of the post-shipment Instrument testing
at the SSI facility, related data analysis, and
post-shipment test data review

	 
	 	2.	 	Delivery by Contractor and Acceptance by
DigitalGlobe of all Instrument requirements
verification documentation

	 	 	 
	Satellite

	 	The complete space-borne infrastructure required to
perform the mission of providing [**Redacted**]
imagery of the Earth. The Satellite consists of the
WV3 Instrument and the Spacecraft Bus.
	 
	 	 
	Sensor Subsystem

(SSS)

	 	That part of the Instrument that [**Redacted**]
	 
	 	 
	Space Segment 

Integrator (SSI)

	 	The SSI is the integrating contractor for the
WorldView 3 satellite system. The SSI has
responsibility for the design, fabrication, test, and
launch support, of the WorldView 3 satellite. The SSI
provides integrating services to define spacecraft
bus, launch, and operating interfaces and
environments as well as satellite integration
interfaces and environments for the WV3 Instrument.
	 
	 	 
	Spacecraft Bus

	 	The Bus is that part of the Satellite that provides
the support infrastructure so the Instrument can
function.
	 
	 	 
	Telescope Support 

Electronics

	 	The Telescope Support Electronics (TSE) are the
electronics required to [**Redacted**].
	 
	 	 
	Optical Telescope 

Unit (OTU)

	 	That part of the Instrument that collects light
photons [**Redacted**] and [**Redacted**]
	 
	 	 
	WV3 Instrument

	 	The Instrument is the part of the Satellite comprised
of the OTU and Sensor Subsystem as previously
defined. The Instrument also includes the thermal
control system provided by Contractor.

1.2 Program Overview

Under this Statement of Work, DigitalGlobe will procure one (1) WorldView-3 Instrument including
intra-unit cables, as well as brackets for mounting the cables to the spacecraft bus. The
Instrument shall be compatible with the spacecraft bus supplied by the Space Segment Integrator.
The Instrument will be substantially similar to the WV2 Instrument supplied by the Contractor to
DigitalGlobe for the NextView program.

1.3 System Description

[**redacted**] defines the major assemblies, subsystems and units/functions of the Instrument
and shows how they are allocated between the Instrument and the Satellite. [**Redacted**]

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	 	WV3 Instrument Statement of Work

Doc Number 10329744

2.0 Documents

This Statement-of-Work identifies applicable and reference documents. These documents provide
detailed requirements regarding Instrument performance, interfaces, and/or standardized design,
fabrication, and testing processes/procedures. The Contractor and DigitalGlobe will perform the
defined work according to the standardized processes/procedures to the extent specified herein.

In the event of any conflict between documents, the following order of precedence shall prevail: a)
Agreement Terms & Conditions; b) Statement of Work; c) Instrument Specification; d) Applicable
documents.

2.1 Applicable Documents

The documents listed below shall apply to the extent referenced herein and form a part of this
Statement of Work. Revision “MAR” denotes latest Mutually Agreed upon Revision.

DigitalGlobe Produced Documents

	 	 	 	 	 
	APP-DGI-1

	 	WorldView-3 Instrument Specification
	 	[**Redacted**]
	 
	 	 	 	 
	APP-DGI-2

	 	Risk Management Plan for WorldView

Development
	 	[**Redacted**]

Contractor Produced Documents

	 	 	 	 	 
	APP-CON-1

	 	NextView Product Assurance (& Supplier Product Assurance) Plan
	 	[**Redacted**]
	 
	 	 	 	 
	APP-CON-2

	 	Selection and Approval of Parts and Materials and Processes
	 	[**Redacted**]
	 
	 	 	 	 
	APP-CON-3

	 	Responsibilities for Control of Critical Life Items
	 	[**Redacted**]
	 
	 	 	 	 
	APP-CON-4

	 	Contractor Electrical, Electronic, and Electromechanical (EEE) Parts Selection
	 	[**Redacted**]

Satellite Integrator Produced Documents

	 	 	 	 	 
	APP-SSI-1

	 	WV3 Instrument to Spacecraft Interface Control Document
	 	[**Redacted**]

Government Produced Documents

	 	 	 	 	 
	APP-GOV-1

	 	TBS
	 	 

2.2 Reference Documents

The documents listed below are identified for reference only.

DigitalGlobe Produced Documents

	 	 	 	 	 
	REF-DGI-1

	 	TBS
	 	 

Contractor Produced Documents

	 	 	 	 	 
	REF-CON-1

	 	TBS
	 	 

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	 	WV3 Instrument Statement of Work

Doc Number 10329744

Satellite Integrator Produced Documents

	 	 	 	 	 
	REF-SSI-1

	 	WV3 Instrument Integration and Test ICD
	 	[**Redacted**]

Government Produced Documents

	 	 	 	 	 
	REF-GOV-1

	 	Preliminary Design Review
	 	[**Redacted**]
	 

	 	(http://pbma.nasa.gov/docs/public/pbma/general/1215-1.pdf)	 	 
	 

	 	also available as	 	 
	 

	 	NASA Public Lesson Learned Entry: 0655	 	 
	 

	 	(http://www.nasa.gov/offices/oce/llis/0655.html)	 	 
	 
	 	 	 	 
	REF-GOV-2

	 	Critical Design Review for Unmanned Missions
	 	[**Redacted**]
	 

	 	(http://pbma.nasa.gov/docs/public/pbma/general/1215-3.pdf)	 	 
	 

	 	also available as	 	 
	 

	 	NASA Public Lessons Learned Entry: 0657	 	 
	 

	 	(http://www.nasa.gov/offices/oce/llis/0657.html)	 	 
	 
	 	 	 	 
	REF-GOV-3

	 	Pre-Ship Review
	 	[**Redacted**]
	 

	 	(http://klabs.org/DEI/References/design_guidelines/design_series/1215-5.pdf)	 	 
	 

	 	also available as	 	 
	 

	 	NASA Public Lessons Learned Entry: 0668	 	 
	 

	 	(http://www.nasa.gov/offices/oce/llis/0668.html)	 	 

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	 	WV3 Instrument Statement of Work

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3.0 Contract Deliverables

3.1 Deliverable Items

	 	a.	 	One (1) WorldView-3 Instrument, including intra-unit cables and brackets for
mounting cables to the spacecraft bus, meeting the requirements of the WorldView-3
Instrument Specification and Engineering Change Proposals (ECP’s) executed as part of
the Agreement.

	 
	 	 	 	Delivery Flight Unit: [**Redacted**]

	 
	 	 	 	Note: Delivery occurs per definition in paragraph 1.1

	 
	 	b.	 	Any Engineering Model Units produced in performance of this contract

	 
	 	 	 	Delivery: Final Acceptance of [**Redacted**]

	 
	 	c.	 	Connectors, pins and sockets, with spares, insertion/extraction tools and
crimping data, as defined in Section 7.5

	 
	 	 	 	Delivery: [**Redacted**]

3.2 Deliverable Data Items

Reference Attachment 1: Contractor Data Items List (CDIL). Unless otherwise noted herein, all final
deliveries of Deliverable Data Items are due at Instrument Pre-Ship Review.

3.3 Deliverable Services

Deliverable services include labor required to support the engineering and management activities
necessary to achieve the Instrument schedule including, but not limited to, the following:

	 	a.	 	Satellite Test and Integration Support

	 
	 	b.	 	On-orbit satellite Commissioning support

	 
	 	c.	 	On-orbit satellite Calibration and Validation support

	 
	 	d.	 	On-call Troubleshooting support

The above services will be contracted separately [**Redacted**]. DigitalGlobe and Contractor agree
that any Deliverable Services are not included in the Firm, Fixed Price of the Agreement.

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4.0 Program Management

4.1 Program Philosophy

Emphasis throughout all phases and functions of the project shall be to produce a reliable
Instrument that meets the performance requirements on the contracted schedule. [**Redacted**].

4.2 Program Management Structure (CDIL PM-1)

A diagram illustrating the Program Management Structure (CDIL PM-1) shall be provided to
DigitalGlobe. This diagram(s) shall indicate job titles and names of the program management team.
The diagram shall be updated and submitted to DigitalGlobe when any personnel changes represented
in the diagram take place.

A dedicated Program Manager shall be appointed by the Contractor prior to the start of the
contract. The Program Manager shall lead all of the Contractor’s activities under the contract.

The Program Manager shall coordinate changes to contract conditions, price, timescale,
deliverables, services or performance levels, unless a specific alternate has been appointed to
deal with any of these matters. All changes to the contract documents shall require the written
agreement of the Contractor contracts representative.

The Contractor shall appoint individual points of contact for each of the following:

	 	a.	 	Program overall technical management (Instrument System Engineer)

	 
	 	b.	 	Program Product Assurance

	 
	 	c.	 	Program Integration and Test management

	 
	 	d.	 	Optical Telescope Unit (OTU) IPT lead

	 
	 	e.	 	Sensor subsystem lead engineer

	 
	 	f.	 	Focal Plane Unit (FPU) IPT lead

	 
	 	g.	 	Digital Processing Unit (DPU) IPT lead

	 
	 	h.	 	Power Supply Unit (PSU) IPT lead

These individuals are key personnel and, if performing to customer expectations, shall remain
unchanged for the duration of the program. In the event that the Contractor determines that
replacement of key personnel is necessary, the Contractor will notify DigitalGlobe as soon as
possible prior to the impending change. If DigitalGlobe, in good faith, objects to the
qualifications of key personnel, after being notified thereof, then Contractor agrees to discuss
such objections with DigitalGlobe and resolve such concerns on a mutually agreeable basis,
including selecting alternative personnel.

4.3 DigitalGlobe Management

DigitalGlobe will appoint a Program Manager who as an individual shall act as DigitalGlobe’s
primary point of contact on all program management matters. As required, according to the activity
and phase of the contract, he may nominate specific individuals to interface directly with the
Contractor.

The DigitalGlobe Program Manager shall coordinate changes to contract conditions, price, timescale,
deliverables, services or performance levels, unless a specific alternate has been
appointed to deal with any of these matters. All changes to the contract documents shall require
the written agreement of the DigitalGlobe contracts representative.

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DigitalGlobe will also appoint a responsible individual(s) to be a single point of contact for each
of the following.

[**Redacted**]

The Contractor shall permit direct engineering interactions between these DigitalGlobe individuals
and their Contractor counterparts.

4.4 Master Program Schedule (CDIL PM-2)

The Contractor shall develop maintain, and provide a Master Program Schedule (MPS) for the entire
program including hardware, software, analyses, data item deliverables, and subcontractor
activities for all phases of the program including design, integration, test, and shipment through
final acceptance.

4.4.1 General

The MPS shall consist of a computer supported dependency network, each element of which shall
represent a single program event. Each event shall be attributed a start and finish date. The
network must clearly show the interdependency in terms of both time and function amongst the
events.

The MPS shall be the major management tool for planning, monitoring and controlling the program, in
terms of:

	 	a.	 	Planning the program, monitoring progress, documenting actual activity
accomplishment and actual durations.

	 
	 	b.	 	Predicting future progress.

	 
	 	c.	 	Identification of significant milestones e.g. review meeting.

	 
	 	d.	 	Identification of the time critical path.

4.4.2 Required Software

The Contractor shall create and maintain the network using Microsoft Project (Version 2003). The
Contractor shall update and provide monthly a high level “wishbone” schedule consisting of key
events for individual components and showing the project flow and dependencies leading to
Instrument deliveries. Schedules of a detailed nature shall be provided electronically on a
monthly basis. A hardcopy shall also be provided on request.

4.4.3 MPS Construction

4.4.3.1 Content

The network shall be constructed against the following major classifications:

	 	a.	 	Deliverable hardware down to unit level, including major subcontract activities.

	 
	 	b.	 	Software development and test activities.

	 
	 	c.	 	New or modified facilities required to support the deliverables.

	 
	 	d.	 	Other events/items required to support the production of the deliverables or
services. e.g. test aids, test software prototypes, etc.

	 
	 	e.	 	Customer Furnished Equipment required from DigitalGlobe.

	 
	 	f.	 	Deliverable Data Items

	 
	 	g.	 	Payment Milestones

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Individual items in each class shall be considered to consist of a number of generic events. These
events shall typically consist of such activities as:

	 	a.	 	Plan

	 
	 	b.	 	Design & develop

	 
	 	c.	 	Manufacture

	 
	 	d.	 	Assemble

	 
	 	e.	 	Integrate

	 
	 	f.	 	Test

	 
	 	g.	 	Deliver

	 
	 	h.	 	Reviews

However steps may be omitted or added given unit specific circumstances by mutual consent of the
parties.

4.4.3.2 Unique Identifiers

The MPS shall include a unique identifying number for each task. This will more easily allow
DigitalGlobe to combine certain tasks into a DigitalGlobe Master Schedule. Unique identifiers will
not be deleted, reused, or re-assigned to other tasks.

4.4.4 Reports

All MPS events and milestones shall be coded to support both Gantt and Network views. All events
and milestones shall be coded to permit a variety of sort options to be exercised without program
modification. Both GANTT and network form shall be supported.

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4.5 Meetings & Reviews

	 
	The Contractor shall support the meetings and reviews listed in the following paragraphs.

4.5.1 Weekly Status Telecon

The Contractor Program Manager and other appropriate personnel shall support a weekly
meeting/telecon with the DigitalGlobe Program Manager to review program status including schedule,
technical, action items, and subcontracts.

4.5.2 Program Management Reviews (CDIL PM-3)

The Contractor shall provide a monthly Program Management Review (PMR) and shall include all
aspects of the program. The PMR shall include the following at a minimum:

	 	a.	 	Accomplishments since last review and action item status

	 
	 	b.	 	System technical status and progress, risk list updates, and residual risk
assessment

	 
	 	c.	 	Program status including forthcoming events and activities

	 
	 	d.	 	Performance and quality assurance status

	 
	 	e.	 	Program schedule status including payment milestones

	 
	 	f.	 	Subcontractor status

	 
	 	g.	 	Contract status and issues

4.5.3 Program Reviews

4.5.3.1 List of Reviews

The Contractor shall conduct formal reviews at the following program milestones, at major
component, subsystem, and Instrument level. The Contractor shall prepare charts, viewgraphs,
analysis results, trade study results, etc. in the quantity and quality typical of aerospace
industry reviews.

	 	a.	 	System Requirements Review (SRR)

	 
	 	b.	 	As-Built WV2 Design and Performance Review (DPR)

	 
	 	c.	 	Delta Preliminary Design Review (PDR)

	 
	 	d.	 	Delta Critical Design Review (CDR)

	 
	 	e.	 	Manufacturing Readiness Review (MRR)

	 
	 	f.	 	Test Readiness Review (TRR)

	 
	 	g.	 	Test Data Review

	 
	 	h.	 	Component / Subsystem End Item Data Package Review (DPR)

	 
	 	i.	 	Pre-Ship Review (PSR)

	 
	 	j.	 	Post-Shipment Test Data Review

DigitalGlobe shall be invited to attend each review. Contractor shall provide at least two weeks
advance notice for design reviews and Instrument-level test reviews to allow for travel planning.
Contractor shall provide at least three business days advance notice for component-level test
readiness reviews. A data package of the review material shall be provided at each review.

DigitalGlobe will prepare Launch and Mission Readiness Reviews. The Contractor shall provide
inputs for preparation of these reviews on a time and materials basis. The purpose of the reviews
is to establish that all launch processing activities have been successfully completed and that all
mission support facilities are in place, have been tested successfully, and are capable of
supporting the mission.

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4.5.3.2 Content of Reviews

	 	a.	 	Design Reviews shall include that information and documentation typical of
aerospace industry reviews, such as:

	 	1.	 	Instrument mechanical configuration including stowed and deployed
and [**Redacted**]

	 
	 	2.	 	Instrument electrical/electronic design

	 
	 	3.	 	Instrument software design

	 
	 	4.	 	Instrument optical design and prescription

	 
	 	5.	 	Instrument Operating Modes

	 
	 	6.	 	Fault Detection and Safing

	 
	 	7.	 	Budgets, measured performance, and Margins relative to
specifications as outlined in Section 5.3.6, System Budgets

The reviews should be conducted for the Instrument as a system. If necessary, the reviews
may be conducted separately for the Sensor Subsystem and the Telescope and will cover
subsystem and system level issues. These reviews shall focus on integrating the diverse
performance, functional, and operational aspects of the Instrument program including system
level budgets. A data package of the review material shall be provided three business days
prior to each review.

Specific analyses and detailed designs shall be reviewed in less formal but more detailed
desktop reviews emphasizing electronic data transfer and coordination.

	 	b.	 	Test Readiness Reviews (TRR’s) shall include that information and documentation
typical of aerospace industry reviews, such as:

[**Redacted**]

	 	c.	 	The test program Data Reviews will contain information and documentation typical
of aerospace industry reviews such as:

	 	1.	 	Test data review

	 
	 	2.	 	Review of [**Redacted**]

	 
	 	3.	 	Review of [**Redacted**].

	 
	 	4.	 	Instrument configuration review

	 
	 	5.	 	Review of integration and test activities for the upcoming program
phase.

4.5.4 Component/Subsystem Design Review Listing (CDIL PM-4)

The Contractor shall prepare a summary listing of all planned component (box level) and subsystem
design reviews. This listing shall include the Contractor provided and subcontractor provided
hardware. This listing shall define the meeting format and required attendance. The
Contractor shall provide a minimum of 10 days advance notice to DigitalGlobe for the following
major reviews:

	 	a.	 	System, Subsystem, and Component PDRs

	 
	 	b.	 	System, Subsystem, and Component CDRs

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DigitalGlobe attendance and participation shall be allowed, but not required at all reviews. The
review activity will not be repeated if DigitalGlobe fails to attend.

4.5.5 Component/Subsystem Test Readiness / Data Review Listing (CDIL PM-5)

The Contractor shall prepare a summary listing of all planned component (box level) and subsystem
qualification and acceptance test reviews. This listing shall include the Contractor provided and
subcontractor provided hardware. This listing shall define the meeting format and required
attendance. The Contractor shall inform DigitalGlobe of upcoming reviews in a timely manner.

DigitalGlobe attendance and participation shall be allowed, but not required at all reviews. The
review activity will not be repeated if DigitalGlobe fails to attend.

4.5.6 DigitalGlobe Meetings

DigitalGlobe will arrange separate contracts for the:

	 	a.	 	Spacecraft Bus and Satellite Integration

	 
	 	b.	 	Launch and mission insurance

A series of technical interchange and review meetings will be held with these contractors jointly
and separately, as required. The Contractor shall provide representation at these meetings as
needed to resolve interface issues. Costs associated with attendance of the meetings for segments
as indicated in (a) above shall be at the Contractor’s expense.

In the case of the insurance (b), the Contractor will provide inputs to formal presentations and
support meetings to be held at the DigitalGlobe facility and up to two meetings in London. Costs
associated with item (b) shall be on a time and materials basis. DigitalGlobe will be responsible
for responses to action items using information made available or provided by the Contractor during
the course of the program.

4.6 Documentation Management

4.6.1 General

DigitalGlobe will have access rights to all program technical data that Contractor generates and
all subcontractor data to which Contractor has legal and contractual rights. Program technical data
may include design reviews, reports, drawings, analyses, certification logs, build logs,
procedures, and test data generated by the Contractor or its subcontractors in support of the
program. Access rights to deliverable data shall be granted without restriction. Access rights to
all other data shall not be unreasonably withheld by Contractor subject to proprietary and security
restrictions. The Contractor shall ensure that necessary contractual clauses are incorporated in
contracts with their subcontractors to permit this access.

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4.6.2 Objective

The Contractor shall establish a control and monitoring program relating to all deliverable
documentation and test data for the complete program. The program shall account for the following:

	 	a.	 	Preparation, review, and formal release as required.

	 
	 	b.	 	Changes.

	 
	 	c.	 	Storage, backup, and retrieval.

	 
	 	d.	 	Distribution.

	 
	 	e.	 	DigitalGlobe access to all Contractor documentation prepared on the project

	 
	 	f.	 	Long term storage for the purpose of through-life product support (through the
operational life of the last flight unit)

4.6.3 Documentation Listing (CDIL PM-6)

The Contractor shall develop and maintain a Documentation Listing that identifies all deliverable
reports, analyses, drawings, software items, etc., that are developed on the project per the CDIL.
The Documentation Listing shall include a naming convention that uniquely identifies the documents
for electronic access where applicable. The List shall also indicate the Contractor document
number, meaningful document title, latest revision number and date, planned completion date, and
status information. The documentation listing shall be updated and provided quarterly until start
of Sensor Subsystem (SSS) integration or telescope environmental testing, and monthly thereafter.

4.6.4 Documentation Delivery

The Contractor shall deliver documents electronically where possible. The Contractor shall deliver
documents in native formats where possible (e.g. Microsoft Word, Excel, etc.), as opposed to PDF.
DigitalGlobe will identify the delivery location, such as a Microsoft Office SharePoint Server
(MOSS) internet site, and provide Contractor with username and password-controlled access.
Documents shall be submitted or made available to DigitalGlobe according to the dates indicated in
the list provided in Attachment 1.

Contractor shall provide Engineering Reports based on analysis or similarity at the delta-CDR. If
Contractor uses classified documentation for requirements verification, the Contractor will either
re-write the documentation in an unclassified form, or deliver the documentation in a classified
manner.

4.7 Action Item List (CDIL PM-7)

The Contractor shall maintain an Action Item List indicating all significant action items,
including those of the Contractor as well as those of other organizations that relate to
interactions with the Contractor. The Action Item List will be developed and maintained in a
format that allows sorting by subsystem, originating party, receiving party, originating date, and
closing date. The Contractor shall be responsible for ensuring closure of those items relating to
the Contractor interactions and interfaces.

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4.8 Financial Management

Contractor shall define a standard set of formats for reporting program financial payment and
billing status and shall submit them on a monthly basis. This shall consist of the following:

4.8.1 Historical Record of Payments (CDIL PM-8)

The Contractor shall create and maintain a record of the individual payments invoiced and made,
updated on a monthly basis. This record shall be cross-referenced to the payment schedule
incorporated in the contract. Payments made in support of contract amendments shall be
appropriately identified and cross-referenced to the payment schedule incorporated in the
amendment. Payment information will include invoice number and date. Invoices and payments
associated with time and materials task orders shall be recorded separately and updated monthly.

4.8.2 Payments Forecast (CDIL PM-8)

The Contractor shall create and maintain a forecast of the future invoices, cross-referenced to the
payment schedule incorporated in the contract. Payment milestone forecasts shall be consistent with
program progress reported on the Master Program Schedule. Future invoices relating to time and
material task orders shall be separately forecast on a monthly basis.

NOTE: Record of Payments and Payment Forecast are delivered as a single CDIL item.

4.9 Contract Change Control

Contract changes are considered to be of three types only:

	 	a.	 	Contract Amendments

	 	b.	 	Waivers: A written authorization granted after contract award to accept an item,
that during production, or after having been submitted for inspection or acceptance, is
found to depart from contract or specified configuration requirements. Waivers are
intended only as one-time departures from an established configuration for specified
items or lots and are not intended to be repeatedly used in place of formal engineering
changes.

	 	c.	 	Deviations: A written authorization, granted after contract award and prior to
the manufacture of the item, to depart from a particular performance or design
requirement of a contract, specification, or referenced document, for a specific number
of units or a specified period of time. Deviations are intended only as one-time
departures from an established configuration for specified items or lots and are not
intended to be repeatedly used in place of formal engineering changes.

The Contractor shall devise a system to control, monitor, and notify DigitalGlobe of these changes.
The control system shall include provision for:

	 	a.	 	A unique numbering scheme to track the changes through to completion.

	 	b.	 	Impact upon contract obligation: — price, performance and delivery schedule, with
specific identification of the item(s) of hardware, software or documentation affected.

	 	c.	 	Notification of timescale for acceptance or rejection for each change, typically
ten business days. Notification timescale will be extended by mutual agreement.

4.10 Risk Management Report (CDIL PM-9)

Contractor shall supply an initial Risk Management Report (CDIL PM-9) covering the system elements
to be provided by this SOW. The Risk Management Report shall be in accordance with the Risk
Management Plan. The Risk Management Report shall be updated and provided monthly.

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The Contractor shall perform and maintain a comprehensive risk management and mitigation program.
Risks and mitigation analyses shall include risks to the Contractor’s schedule, system performance,
requirements, and other risks that may impact the system. The Contractor’s risk management report
shall be updated and delivered monthly and reviewed at all Program Management Reviews.

4.11 DigitalGlobe On-Site Representatives

The Contractor shall support on-site Customer representatives with insight into Contractor
activities. The Contractor shall provide the representatives full insight, on a non-interference
basis, into all areas in which work is being performed, for both the prime and its subcontractors.
This insight includes, but is not limited to, design and technical activities, development and
production processes, and quality functions. In a collaborative manner, both the Contractor and
representatives will utilize the Contractor’s existing documentation and processes to fulfill the
requirements of this clause. The Contractor shall maintain full accountability and responsibility
for the integrity of processes used to develop a quality product that meets the contract
requirements.

The on-site representatives will conduct surveillance activities in a manner that will not unduly
delay any work performed by the Contractor. On-site representatives shall be governed by all
applicable environmental, safety, and security requirements and standards of conduct. Additionally,
on-site representatives shall have access to flight hardware on an escorted basis only.

This clause applies throughout the entire period of performance.

Individuals conducting on-site surveillance do not have authority to provide direction that:

	 	1.	 	Constitutes an assignment of additional work outside this Statement of Work

	 
	 	2.	 	Constitutes a change as defined in the changes clause

	 
	 	3.	 	Causes a change in total price, or change in schedule

	 
	 	4.	 	Changes any of the expressed terms, conditions, or specifications of the contract

	 
	 	5.	 	Interferes with the Contractor’s rights to perform the terms and conditions of
the contract.

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5.0 Design

The following sections identify the Contractor responsibilities regarding design reviews, analyses,
and documentation.

5.1 General

The Contractor shall design the Instrument and associated Ground Support Equipment (GSE), exclusive
of the items defined in Section 10.0, Customer Furnished Equipment, in accordance with the
applicable documents. Design activities shall be featured in the Master Program Schedule.

5.2 Design Reviews

The Contractor shall conduct design reviews of the Instrument as described in para 4.5.3.2.a:

	 	a.	 	System Requirements Review (CDIL D-1)

	 
	 	b.	 	Delta Preliminary Design Review (CDIL D-2), for new components only

	 
	 	c.	 	Delta Critical Design Review (CDIL D-3), scope limited to changes from WV2

5.3 Design Data

The Contractor shall provide the Instrument design, test, and verification data outlined in the
following paragraphs.

5.3.1 Requirements Verification Plan (CDIL D-4)

The Contractor shall develop and maintain an Instrument Requirements Verification Plan. The plan
will address the verification approach for each system level requirement in the Instrument
Specification to include verification method (e.g. test, analysis, etc.), verification level (e.g.
component, subsystem, system), and documentation approach. DigitalGlobe approval is required for
the verification plan. The Contractor will provide the initial plan at CDR.

5.3.2 Instrument Level Requirements Verification / Compliance Matrix (CDIL D-5)

The Contractor shall develop and maintain a Requirements Verification/Compliance Matrix (RVCM)
including the following information for the Instrument Specification:

	 	a.	 	Specification paragraph

	 
	 	b.	 	Paragraph title

	 
	 	c.	 	Summary description of requirement

	 
	 	d.	 	Column indicating status of compliance

	 
	 	e.	 	Summary description of budgeted and measured performance, including margin

	 
	 	f.	 	Verification Level [**Redacted**]

	 
	 	g.	 	Verification Point [**Redacted**]

	 
	 	h.	 	Verification Method [**Redacted**]

	 
	 	i.	 	Verification Source Document indicating applicable paragraph, test sheet, etc.

	 
	 	j.	 	Comments, if required.

	 
	 	k.	 	Other information at the Contractor’s option

The Contractor shall update the RVCM at CDR, and monthly beginning at the first component
Acceptance Test Procedure through Instrument Final Acceptance.

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5.3.3 Component / Subsystem Specifications (CDIL D-6)

The Contractor shall flow down requirements from the Instrument Specification to appropriate
subsystem and/or component specifications. The Contractor shall deliver component / subsystem
specifications at the time of the associated CDR, at each major revision, and finally at the
associated End Item Data Package Review.

5.3.4 Component / Subsystem Level RVCM (CDIL D-7)

The Contractor shall develop a Requirements Verification/Compliance Matrix for each component /
subsystem based on the results of 5.3.3. The Contractor will provide the initial component /
subsystem RVCM at CDR. The Contractor shall use the Component Level RVCM as an input into the
component / subsystem level performance test procedures. The Contractor shall document compliance
to the component / subsystem specifications at the associated End Item Data Package Review.

5.3.5 Drawings (CDIL D-8)

A complete file of Contractor drawings prepared in performance of this contract shall be maintained
on file at the Contractor’s facility in electronic and hardcopy form, where appropriate. Access to
the drawings shall be provided when requested. A complete set of top-level drawings, typically
assembly drawings, shall be delivered at CDR. Final as-built drawings shall be provided at the
associated End Item Data Package Review or Pre-Ship Review, as appropriate.

5.3.6 System Budgets (CDIL D-9)

The Contractor shall provide the following system budgets, measured performance, and margins
relative to specifications with the nominal update frequency as defined in the table.
[**Redacted**]

The Customer will be responsible for providing performance information required to update the
budgets for any of the Customer Furnished Equipment.

5.3.7 Subsystem Description Documents (CDIL D-10)

The Contractor shall prepare Subsystem Description Documents for each Instrument subsystem and for
the electrical interfaces to the Spacecraft Bus.

The Subsystem Description Documents will include as a minimum:

	 	a.	 	Subsystem Overview including a detailed block diagram

	 
	 	b.	 	Functionality and major performance characteristics of each Subsystem Component

	 
	 	c.	 	Redundancy, to include

	 
	 	 	 	[**Redacted**]

	 
	 	d.	 	[**Redacted**]

	 
	 	e.	 	[**Redacted**]

	 
	 	f.	 	[**Redacted**]

	 
	 	g.	 	Subsystem schematic including power, power returns, commands, and telemetry.
This schematic shall be updated to reflect Engineering Change Orders.
h. Expected nominal operating methods and telemetry limits, to include

	 
	 	 	 	[**Redacted**]

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	 	i.	 	Operational constraints, to include

	 
	 	 	 	[**Redacted**]

	 
	 	j.	 	Fault Protection, to include

	 
	 	 	 	[**Redacted**]

	 
	 	k.	 	Interfaces between subsystem components

	 
	 	l.	 	Major interfaces with other subsystems

	 
	 	m.	 	Non-operational constraints, to include

	 	1.	 	Storage environment such as temperature, humidity, etc.

	 
	 	2.	 	Special packaging or environments (e.g. nitrogen purge)

	 
	 	3.	 	Re-test requirements

The Subsystem Description Documents shall be delivered at CDR + 6 months and again at Pre-Ship
Review with all changes documented. The subsystem schematic (item g.) shall be updated as required
throughout the program to reflect Engineering Change Orders.

5.3.8 Analyses, models, and reports

The Contractor shall perform the analyses and provide the models listed below. Contractor shall
provide updated analyses and models when changes significantly invalidate previous results.

	 	a.	 	Structural analyses, reports, and model (CDIL D-11)

	 
	 	 	 	Contractor shall create a detailed structural model, perform structural analysis, and report
results including a [**Redacted**]. The structural model shall be provided in a format
defined by DigitalGlobe and the SSI. The structural model will be provided to SSI for
satellite-level analyses.

	 
	 	b.	 	Thermal analyses, reports, and model (CDIL D-12)

	 
	 	 	 	Contractor shall create a detailed thermal model, perform thermal analysis, and report
results including a [**Redacted**]. Contractor shall create and provide a thermal model
[**Redacted**]. The SSI will produce an integrated satellite-level thermal model.

	 
	 	 	 	The Contractor shall correlate the Contractor’s thermal model [**Redacted**]. The Contractor
shall provide an updated, correlated thermal model.

	 
	 	c.	 	System Level FMECA (CDIL D-13).

	 
	 	 	 	The System Level Failure Modes and Effects and Criticality Analysis (FMECA) [**Redacted**].

	 
	 	d.	 	Reliability analysis, reports, and model (CDIL D-14)

	 
	 	 	 	Contractor shall create a detailed reliability model [**Redacted**].

	 
	 	e.	 	Optical analyses, reports, and models (CDIL D-15)

	 
	 	 	 	The Contractor shall perform detailed optical analyses, create optical models of the
Instrument, and report performance data. The Contractor shall provide [**Redacted**].

	 
	 	 	 	The camera model shall include all data necessary to know [**Redacted**].

	 
	 	 	 	The Contractor shall provide a design optical prescription at CDR. [**Redacted**]

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5.3.9 Interface Control Documents 

The Contractor shall support preparation, development and maintenance of the WV3 Instrument to
Spacecraft ICD by providing the necessary review and input to the SSI. Changes will be discussed
between the affected parties to determine the most cost and schedule efficient manner to implement
the change. If applicable, any impact will be covered under the Changes provision of the
Agreement.

5.3.9.1 WV3 Instrument to Spacecraft ICD Verification Plan (CDIL D-16)

The Contractor shall develop and maintain an ICD Verification Plan for the Contractor side of the
WV3 Instrument to Spacecraft ICD Verification Plan. DigitalGlobe approval is required for the
verification plan. The Contractor shall provide the initial plan at CDR.

5.3.9.2 WV3 Instrument to Spacecraft ICD RVCM (CDIL D-17)

The Contractor shall develop and maintain an ICD Requirements Verification / Compliance Matrix for
the Contractor side of the WV3 Instrument to Spacecraft ICD. The Contractor will provide the
initial ICD RVCM at CDR. The Contractor shall verify the Contractor side of the WV3 Instrument to
Spacecraft ICD according to the Verification Plan and update the ICD RVCM periodically to reflect
the verification progress. The final ICD RVCM shall be provided at Pre-Ship Review.

5.3.9.3 WV3 Instrument Integration and Test ICD

The Contractor shall support preparation, development and maintenance of the WV3 Instrument
Integration and Test ICD by providing the necessary review and input to the SSI.

5.3.10 Critical Items list (CDIL D-18)

The Critical Items List shall summarize all known single point failures on the Instrument and any
special efforts required to mitigate risk associated with them. Critical Items List shall also
contain any items requiring special handling due to a high potential of damage, mission
criticality, or safety concerns.

5.3.11 Component Heritage Summary (CDIL D-19)

The Component Heritage Summary will consist of a listing of all Instrument units by subsystem
summarizing:

	 	a.	 	Unit name

	 
	 	b.	 	Development / qualification history (e.g. engineering model, qual, protoflight)

	 
	 	c.	 	Previous flight heritage

	 
	 	d.	 	Modifications to previous uses

	 
	 	e.	 	Any significant known anomalies on flight units

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5.3.12 Engineering Reports and Data (CDIL D-20)

The Contractor shall prepare and maintain a complete file of all relevant Engineering Reports,
analyses, test data and test reports at the Contractor facility in electronic and hardcopy form,
where appropriate. The Contractor shall include the cognizant DigitalGlobe Subsystem Engineer on
the distribution list of all completed Contractor Engineering Reports. The Contractor shall
deliver all Engineering Reports, analyses, test data and test reports and other documentation used
for requirements verification, even if the documentation was developed for another program.
Electronic transfer to DigitalGlobe will constitute delivery and shall occur within five business
days of the document release date.

“Relevant” ERs in this context refers to all documents containing design information, analyses,
test data, etc. that affect the performance and/or operations of the Instrument. It does not
include documents that contain Contractor proprietary cost data.

5.3.13 Flight/Ground Software Source Code

The Contractor shall deliver flight and ground software source code and operating manuals as noted
in following paragraphs. The software provided shall be subject to the licensing constraints
documented in the Software License Agreement (Exhibit 3 of the Agreement).

5.3.13.1 Flight Software Code (CDIL D-21)

The Contractor shall deliver a copy of the source code for flight software, firmware, and
programmable devices as noted below. The source code shall be delivered to and held in a Software
Escrow Account with a mutually agreed upon institution naming DigitalGlobe as beneficiary at
DigitalGlobe’s expense. The source code shall include the following at a minimum:

[**Redacted**].

5.3.13.2 Decompression Source Code (CDIL D-22)

The Contractor shall deliver a copy of the packet parser and decompression source code and
executable to DigitalGlobe on compatible electronic media. The decompression software shall be
capable of running on a [**Redacted**] platform using the [**Redacted**] operating system. The
packet parser and decompression software shall be licensed as set forth in the Software License
Agreement..

5.3.13.3 Decompressor User’s Manual (CDIL D-23)

The Contractor shall deliver a User’s Manual for the packet parser and decompression source code
and executable. The User’s Manual shall include sufficient information to compile, link, and
execute the decompression software. The User’s Manual shall include nominal information for
trouble-shooting compilation and run time errors.

5.3.13.4 Compressor Executable (CDIL D-24)

The Contractor shall deliver a copy of the compressor executable using a C programming language
simulation to DigitalGlobe on compatible electronic media. The compression software shall be
capable of running on up to three platforms/operating systems specified by DigitalGlobe
(e.g. Dell/Windows, HP/Linux). The compression software shall be licensed as set forth in the
Software License Agreement.

5.3.13.5 Compressor User’s Manual (CDIL D-25)

The Contractor shall deliver a User’s Manual for the compressor executable. The User’s Manual shall
include sufficient information to install and operate the compression software. The User’s Manual
shall include nominal information for trouble-shooting run time errors.

5.3.14 Composite Grounding Design (CDIL D-26)

[**Redacted**].

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5.3.15 Line of Sight Prediction Models (CDIL D-27)

Contractor shall supply Line of Sight (LOS) prediction models for thermal and mechanical
sensitivities.

Contractor shall supply a LOS Thermal Prediction Model. This model shall [**Redacted**].

The Contractor shall provide a set of [**Redacted**].

5.3.16 Use of Relays (CDIL D-28)

The Contractor shall inform DigitalGlobe of known relays and their function in the design.
DigitalGlobe shall be informed of additions to the relay list as information becomes available. In
a timely fashion DigitalGlobe will then in turn verify the number of anticipated relay actuation
cycles for the given function based upon operations analysis and convey this value to the
contractor so as to aid in their analysis.

5.3.17 Radiometric Calibration Data (CDIL D-29)

The Contractor shall collect and provide radiometric calibration data for all operational modes.
The calibration data shall be collected for [**Redacted**].

5.3.18 Spectral Performance Data (CDIL D-30)

The Contractor shall provide spectral performance data for detectors, filters, and the Instrument
to include, but not be limited to, [**Redacted**].

5.3.19 Timing Table Development

The Contractor shall develop optimized timing tables for all operating modes of the Instrument.

5.4 Documentation

The requirements of previous sections generate documents relating to the Design function. These
documents are summarized in Attachment 1 of this Statement of Work.

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6.0 Product Assurance

The following paragraphs outline the Contractor obligations relating to Product Assurance.

6.1 Product Assurance Plan (CDIL QA-1)

The Contractor and its subcontractors shall have an established quality control system that meets
the requirements of the established Contractor Product Assurance Plan and Supplier Product
Assurance Plan. Subcontractors will modify their existing product assurance programs to meet the
requirements of the Contractor Product Assurance Plan.

The Contractor shall implement the following special provisions to the WV3 Product Assurance (&
Supplier Product Assurance) Plan. These provisions shall also extend to the Contractor’s
Subcontractors.

	 	a.	 	The selection of parts shall follow [**Redacted**].

	 
	 	b.	 	Any part that cannot be screened to bring it up to the [**Redacted**] must have
DigitalGlobe signature approval prior to requisition.

	 
	 	c.	 	The parts program minimum level shall be at the [**Redacted**].

	 
	 	d.	 	Any part that has a [**Redacted**] shall only be used after [**Redacted**].

The Contractor Product Assurance Plan shall include mandatory inspection points (MIPs) for
[**Redacted**], for both Contractor and Supplier produced hardware. A Contractor Quality Assurance
representative shall perform these MIPs at the Contractor supplier facility.

The Contractor shall ensure that supplier product assurance plans meet Contractor and Customer
requirements.

6.1.1 Materials Review Board

The Contractor shall establish a Materials Review Board (MRB) to address the development,
manufacture, procurement, test, and implementation of parts, materials, and processes used on the
program. A DigitalGlobe representative shall be invited to MRB meetings when convened.
Notification may be via email. DigitalGlobe attendance is not a requirement of holding MRB
meetings.

6.2 Parts, Materials, and Processes

The following sections outline Contractor obligations regarding parts, materials, and processes.

6.2.1 Electrical, Electronic, and Electromechanical (EEE) Parts Selection

The Contractor shall select EEE parts via its [**Redacted**]. The Contractor shall notify
DigitalGlobe to resolve cooperatively any part need that affects the Instrument system
specification or contractual requirements. The Contractor shall notify DigitalGlobe when an EEE
component in plastic packaging is selected for use in the deliverable hardware.

[**Redacted**]

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6.2.2 EEE Parts Listing (CDIL QA-2)

The contractor shall prepare, maintain, and deliver an EEE Parts Listing for all Instrument
hardware, except for CFE. This listing shall identify all EEE parts intended to be used, supplier
and/or industry designations, contractor specifications and revisions, manufacturer/supplier,
package type, finish, indication of acceptance for prohibited materials, reliability level,
qualification rationale, key performance parameters or ratings for each part (including TID and SEE
tolerance, temperature limits, life limitations, and others as required), and indications of
Customer approval for use of nonstandard items. The contractor’s internal process and format for
EEE Parts Listing may be utilized.

Prior to parts procurement or allocation from Contractor stores, Contractor shall review all parts
and verify compliance with Contractor and Customer requirements. Parts procured prior to
verification are procured “at risk” by Contractor and/or vendors. All deviations from the planned
parts list shall be reviewed by Contractor. The EEE Parts List shall be reviewed and updated by
Contractor as necessary. The EEE Parts List shall be updated and provided to DigitalGlobe at the
following, as a minimum:

	 	a.	 	Prior to component/box parts procurement

	 
	 	b.	 	Prior to component/box manufacturing readiness review

	 
	 	c.	 	Prior to component/box level Test Readiness Review

	 
	 	d.	 	Final as-built at component/box EIDP review

	 
	 	e.	 	At SSS or Instrument Test Readiness Review

	 
	 	f.	 	Final as-built at Instrument PSR

The Contractor’s quality organization shall inspect the list at each update and verify conformance
to Contractor’s and Customer’s requirements.

6.2.3 Material Identification and Usage Listing (CDIL QA-3)

The contractor shall prepare, maintain, and deliver a Material Identification and Usage Listing
(MIUL). This listing shall identify all non-EEE parts, materials and manufacturing processes
intended to be utilized, supplier and/or industry designations, contractor specifications,
manufacturer/supplier, finish, indication of acceptance for prohibited materials, key performance
parameters or ratings for each M&P [**Redacted**], and indications of Customer approval for use of
nonstandard items. The contractor’s internal process and format for the MIUL may be utilized. The
Contractor shall update the MIUL until product delivery to account for any design or manufacturing
changes. The Contractor shall deliver the initial MIUL at PDR and the final MIUL for each component
at the associated EIDP review.

6.3 As-Built Configurations and Conformance

6.3.1 As-Built Configured Article List (CDIL QA-4)

The Contractor and its subcontractors shall maintain as-built configured article lists for each
component / subsystem throughout the production program. At the conclusion of integration, the
information shall be used to generate the preliminary As-built Configured Article List. After test
and modification (if any) the List shall be finalized and presented.

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6.3.2 Certificate of Conformance (CDIL QA-5)

The Contractor shall prepare a Certificate of Conformance, signed by Product Assurance and Program
Management. The certificate will detail the conformance (and exceptions) to the SOWs,
specifications and other contractual documents for the delivered article. The Contractor shall
provide the Certificate to the Customer at the Post-Shipment Test Data Review.

6.3.3 End-Item Data Package (CDIL QA-6)

The Contractor shall assemble and provide an End-Item Data Package (EIDP) for each component /
subsystem. The EIDP shall include all Contractor EIDP required data. The EIDP shall also include
the following:

	 	a.	 	Requirements verification documentation

	 
	 	b.	 	Anomaly reports with final disposition

	 
	 	c.	 	Build photos, appropriately labeled

6.4 Product Assurance Reviews (CDIL QA-7)

The Product Assurance Plan shall include a program for the periodic audit, typically quarterly, of
portions of the Contractor’s Product Assurance System in each of the areas listed below. The
Program Product Assurance engineer, or equivalent Contractor quality organization representative,
shall conduct these audits and confirm compliance to requirements. The Contractor shall inform
DigitalGlobe of the audit results. This requirement may be satisfied with existing [**Redacted**],
or equivalent audits.

	 	a.	 	Reliability

	 
	 	b.	 	Parts Procurement

	 
	 	c.	 	Materials and Processes

	 
	 	d.	 	Non-Conforming Material Control

	 
	 	e.	 	Configuration Management

	 
	 	f.	 	Safety

6.5 Contamination Control Plan (CDIL QA-8)

The Contractor shall prepare and maintain a Contamination Control Plan capable of maintaining the
cleanliness of the delivered hardware in accordance with the WV3 Instrument specifications.

6.6 Failure Reports (CDIL QA-9)

The Contractor shall provide detailed failure reports of hardware and software anomalies and
failures. Contractor shall report, as a minimum, at the component / subsystem level beginning at
proto-qualification, qualification, or acceptance testing.

The Contractor shall conduct Failure Review Board (FRB) meetings as necessary. The purpose of the
FRB is to address anomalies or failures, identify root cause, and develop a path forward. The FRB
shall address anomalies and failures on this program as well as programs using the same parts,
materials, or processes. The FRB shall ensure corrective action identified by the FRB is indeed
implemented. A DigitalGlobe representative shall be invited to FRB meetings when convened.
Notification may be via email.

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7.0 Procurement

The following sections provide the Contractors obligations regarding procurement.

7.1 General

The Contractor shall be responsible for the work associated with the procurement of all material
and subcontracts required to provide the deliverable items, except for items identified in Section
10.0, Customer Furnished Equipment. Procurement activities shall be featured in the Master Program
Schedule. The Contractor shall procure equipment and services according to the Contractor Product
Assurance Plan and other applicable Contractor procedures. Major subcontract status shall be
included in the monthly Program Management Reviews and Master Program Schedule updates.

7.2 Reviews

Contractor shall establish a series of reviews with each subcontractor. Contractor shall include a
schedule of these reviews in the Review Listings required by paragraph 4.5.3 and 4.5.4. The reviews
will generally be held at the subcontractor facility and DigitalGlobe personnel may attend, at
their option, with advance notice to the Contractor.

7.3 Program Subcontract Status Report (CDIL PT-1)

The Contractor shall prepare a Program Subcontract Status Report (PSSR) for the program. The PSSR
will contain critical status information on each major subcontract (larger than $1M) relative to:

	 	a.	 	Design and development

	 
	 	b.	 	Procurement and Production

	 
	 	c.	 	Assembly

	 
	 	d.	 	Integration

	 
	 	e.	 	Test, including any anomalies

	 
	 	f.	 	Delivery schedule

	 
	 	g.	 	Reviews

7.4 Subcontract Flow-downs

[**Redacted**].

7.4.1 Assignment Clause

[**Redacted**].

7.4.2 Access

[**Redacted**].

7.5 Test Connectors and Connector Savers

Contractor shall procure and deliver to DigitalGlobe [**Redacted**].

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7.5.1 Test Connector Set

[**Redacted**]

7.5.1.1 Box Connectors

[**Redacted**]

7.5.1.2 Cable Connectors

[**Redacted**]

7.5.2 Spares

[**Redacted**]

7.5.3 Pins and Sockets

[**Redacted**]

7.5.4 Insertion/Extraction Tools

[**Redacted**]

7.5.5 Crimper Information

[**Redacted**]

7.5.6 Quality

[**Redacted**]

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8.0 Production Activities

8.1 General

The Contractor shall appoint a Production engineer responsible for ensuring that the Contractor’s
production capabilities match the requirements of the program. With the support of the Program QA
engineer, he shall ensure that the production facilities comply with the Product Assurance
requirements.

The Contractor shall be responsible for the work associated with the production of the deliverable
items, except for the items identified in Section 10.0, Customer Furnished Equipment. The
Contractor shall be responsible for the production activities associated with integrating the CFE
items as defined in Section 10.0.

Production activities shall be featured in the Master Program Schedule.

8.2 Production Process

The Contractor shall produce the deliverable hardware according to applicable Contractor
standardized procedures. As a minimum, standardized Contractor procedures shall be followed for
the following topics:

[**Redacted**]

8.3 Access

With adequate advance notice and subject to security requirements, the production manager shall
arrange access for the DigitalGlobe staff to the Contractor manufacturing areas where manufacturing
activities associated with the program are taking place.

8.4 Production Documentation

The Contractor shall document the as-built configuration using production orders and Certification
Logs. These logs shall be available on-site for DigitalGlobe review.

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9.0 Integration and Test Activities

The following paragraphs describe the Contractor responsibilities in regards to Sensor Subsystem,
Instrument, and Satellite Integration and Test (I&T) activities.

9.1 General

Integration and test activities fall into the categories shown below.

	 	a.	 	Component / Subsystem level testing

	 
	 	b.	 	Instrument Integration & Test

	 
	 	c.	 	Integration of the Instrument into the Satellite [**Redacted**]

	 
	 	d.	 	Satellite Level Test [**Redacted**]

The Contractor shall provide engineering and management support for the above activities. The
Integration and Test Manager shall be responsible to ensure that the Contractor’s integration and
test capabilities match the requirements of the program. The Contractor shall accomplish the work
associated with items a-b above for all the Contractor supplied hardware/software.

Test reports shall consist of narrative descriptions of test observations and discrepancies, as
well as quantitative verification of test objectives.

9.2 Component / Subsystem Level Testing

Contractor shall perform all component / subsystem level testing per environmental design and test
specifications and the component / subsystem level Requirements Verification and Compliance Matrix.

Contractor should perform appropriate parts / board-level analyses to ensure that part-level or
board level limits are not exceeded during component / subsystem level testing. This analysis
should be done for particularly sensitive parts [**Redacted**].

Contractor should consider appropriate [**Redacted**].

9.3 Integration and Test

The following paragraphs describe Contractor responsibilities for Instrument I&T activities.

9.3.1 Instrument Integration and Test Plan (CDIL PT-2)

The Contractor shall develop and maintain an Instrument Integration and Test Plan. The test plan
will include all integration and test activities up through final acceptance.

The Instrument Integration and Test Plan shall:

[**Redacted**]

9.3.2 [**Redacted**]

[**Redacted**].

9.3.3 [**Redacted**]

[**Redacted**].

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9.3.4 [**Redacted**]

[**Redacted**].

9.3.5 [**Redacted**]

[**Redacted**].

9.3.6 [**Redacted**]

[**Redacted**].

9.3.7 [**Redacted**]

[**Redacted**].

9.4 Post-Shipment Instrument Testing

The Contractor shall ship the Instrument to the SSI facility. The Contractor shall perform
post-shipment functional testing to verify the Instrument survived shipment without damage.

SSI shall provide:

[**Redacted**].

9.5 Supporting Documents

The Contractor shall produce as a minimum the following support documents:

	 	a.	 	Test Plans

Contractor shall produce all necessary component, subsystem, and instrument level test plans.
Each plan shall include a detailed test description explaining the “what, how, and why” of
each test including test set-up, test objectives, requirements planned to be verified, and a
listing of test cases to be executed. The test description will also highlight
[**Redacted**]. Test plans shall be available for DigitalGlobe review. Test Plans shall be
provided no later than [**Redacted**] before the applicable Test Readiness Review (TRR).

	 	b.	 	Test Procedures

Contractor shall produce all necessary component, subsystem, and instrument level test and
integration procedures. Each procedure should include a detailed test description explaining
the “what, how, and why” of each test. The test description should also highlight
[**Redacted**]. Test procedures will be available for DigitalGlobe review prior to the test.

	 	c.	 	Test Reports

Contractor shall produce all necessary component, subsystem, and instrument level test
reports. Each report shall include detailed descriptions of test observations and
discrepancies as well as quantitative verification of test objectives. Test reports will be
available for DigitalGlobe review after the test. Test reports used for requirements
verification shall be provided to DigitalGlobe.

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9.5.1 SSS and Instrument Level Test Matrix. (CDIL PT-3)

The Contractor shall produce and provide a Sensor Subsystem and Instrument Level Test Matrix. The
test matrix for each deliverable will identify which Instrument Level Test procedures or portions
of those procedures will be accomplished at each test phase. [**Redacted**]. The Instrument Level
Test phases typically include:

[**Redacted**]

9.5.2 Calibration and Validation Plan Inputs (CDIL PT-4).

The Contractor shall provide pertinent information to support Instrument Calibration and Validation

[**Redacted**].

9.6 System Test Plans (CDIL PT-5)

The Contractor shall produce test plans for each SSS and Instrument Level Test (see paragraph
9.5.1). The Contractor shall provide the test plans no later than 25 working days before the
applicable test readiness review. DigitalGlobe shall have approval over SSS and Instrument level
test plans.

9.7 System Test Reports (CDIL PT-6)

[**Redacted**]

9.8 End-Item Data Package Reviews

The Contractor shall schedule an informal review of the End-Item Data Package [**Redacted**]. The
review shall include the following topics as a minimum:

[**Redacted**]

9.9 Test Reviews

The status of the Instrument shall be reviewed during the test phases of the program as listed
below. The Contractor shall produce a data package of review material for each review.

[**Redacted**]

9.10 Un-Interruptible Power Supply

[**Redacted**].

9.11 Government Furnished Equipment

The contractor shall ensure that any required Government Furnished Equipment (or suitable
alternative equipment) is available as needed to support ITT’s part, assembly, component,
subsystem, and system test activities.

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10.0 Customer Furnished Equipment

The following paragraphs identify Customer Furnished Equipment (CFE) which are also summarized in
Attachment 2.

10.1 [**Redacted**]

[**Redacted**]

10.2 [**Redacted**]

[**Redacted**]

10.3 [**Redacted**]

[**Redacted**]

10.4 [**Redacted**]

[**Redacted**].

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11.0 Storage and Delivery

11.1 General

The Contractor shall be responsible for storage, if required, and delivery of the Instrument, in
accordance with the following paragraphs.

11.2 Pre-Ship Review

The Contractor shall conduct a Pre-Ship Review after completion of all testing and all Test Data
Reviews for each Instrument. The Contract shall conduct the PSR in accordance with typical
aerospace industry practice. As a reference, the Contractor should refer to [**Redacted**] for
content, entry criteria, and exit criteria. The PSR will not be considered complete until the
following take place:

	 	•	 	All major outstanding actions from other reviews shall be closed

	 
	 	•	 	All requirements verification documentation shall be complete, delivered, and accepted
by the Customer

	 
	 	•	 	All CDIL items pertaining to the hardware being shipped shall be complete, delivered,
and accepted by the Customer

	 
	 	•	 	All major action items noted at the PSR shall be closed

11.3 Pre-Shipment Storage

In the event that a deliverable Instrument is completed prior to the contractually scheduled
delivery date, the Contractor shall provide, at its cost, suitable environmentally controlled
storage including temperature and humidity monitoring and recording.

If shipment is delayed due to DigitalGlobe beyond the contractually scheduled delivery date and the
deliverable Instrument is complete, the Instrument shall be placed in storage at DigitalGlobe’s
expense.

11.4 Pre-Shipment Retest

Subject to the length of the storage period, appropriate maintenance and power up of those units
sensitive to inactivity shall be undertaken at the Contractor’s discretion. Any items exhibiting
signs of deterioration shall be subject to appropriate follow up action according to the
circumstances. All instances shall be reported to DigitalGlobe.

A thorough re-test is required should the storage exceed [**Redacted**]. Details shall be provided
in the test requirements document. Appropriate follow up action shall be taken, according to the
circumstances, should any problems be detected.

The re-test costs shall be at the Contractor’s expense if delay and retest were caused by
Contractor. The re-test costs shall be at DigitalGlobe’s expense if delay and retest were caused by
DigitalGlobe.

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11.5 Shipping and Delivery

[**Redacted**]. Shipment is the Contractor responsibility. Initial Acceptance by DigitalGlobe
will occur as defined in Section 1.1 Definitions.

12.0 Spacecraft System Integration and Test

The Contractor shall provide on-going support to the spacecraft integration and test activity.
Support shall include participation in program status meetings, test data review, answering sensor
operational questions, and participating in troubleshooting and debug activities as required.

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13.0 Launch and Mission Support

The Contractor shall assist with launch and mission preparation and on-orbit commissioning by
providing the engineering services defined in the following paragraphs.

13.1 Training

13.1.1 Training Materials (CDIL LM-1)

The Contractor shall develop a training package for each Instrument subsystem. The training
package will be based on the Subsystem Description Documents (Paragraph 5.3.7) and include the same
minimum information.

The training packages will be delivered on both paper and electronic media.

13.1.2 Training Sessions

For each subsystem, the cognizant Contractor subsystem engineer shall present the training
materials from paragraph 13.1.1 at DigitalGlobe’s facility in Longmont, CO. DigitalGlobe will
provide the conference room and necessary projectors to support the presentation. DigitalGlobe
reserves the right to videotape the training sessions for the purpose of training future
DigitalGlobe personnel.

13.2 Command and Telemetry Handbook (CDIL LM-2)

The Contractor shall prepare a Command and Telemetry Handbook (C&TH). This document shall provide
a definitive listing of all Instrument telemetry and commands with a full description for each.
This shall include technical details of the telemetry data structures e.g. word, sub frame, bit
numbers etc. and the range, resolution and units of analog measurement, calibration data.

13.3 Procedure Development Support

DigitalGlobe will generate the on-orbit procedures for the Instrument. The Contractor shall
understand the DigitalGlobe Concept-of-Operations and assist the procedure development. The
Contractor shall review DigitalGlobe developed procedures for technical, operational, and safety
concerns. [**Redacted**].

13.4 Commissioning Plan Development Support

The Customer will generate the commissioning plan for the Satellite, including the Instrument. The
Contractor shall assist the commissioning plan development. This includes assisting with the
definition of the nominal sequence of events, required prerequisites, allowed out-of-sequence
events, and required technical support for each event. The Contractor shall review the Customer
commissioning plan for technical, operational, and safety concerns. [**Redacted**]

13.5 Anomaly Preparations

The Customer will generate anomaly resolution flow-charts. The Contractor shall assist with the
anomaly flow-chart development including defining the probable anomalies and proper recovery
actions/sequences. The Contractor shall review Customer anomaly resolution flow-charts for
technical, operational, and safety concerns. This task will be on a time and materials basis.

DigitalGlobe Proprietary and Confidential

Use or disclosure of data is subject to the restriction on the title page of this document.

 

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13.6 Mission Operations Support [**Redacted**]

For all subparagraphs in this Section, the Contractor shall, at Customer’s request, review on-orbit
telemetry for:

	 	a.	 	The actual sequence of events against those planned and to provide comments and
explanations for any deviations.

	 
	 	b.	 	Subsystem operating parameters and compare them with the pre-flight or expected
values. Anomalies or values outside of established pre-launch criteria of the Contractor
controlled parameters shall be investigated by the Contractor, including re-measurement,
if required.

[**Redacted**]

13.6.1 Reserved

13.6.2 Satellite Commissioning

The Contractor shall support satellite commissioning. The Contractor shall provide engineering
staff as required to support subsystem initialization and checkout until the satellite is
commissioned. Barring anomalies, commissioning activities will nominally occur between
[**Redacted**] and [**Redacted**] hours [**Redacted**] through [**Redacted**]. Commissioning
activities will require approximately [**Redacted**] days.

The Contractor shall provide off-hour, on-call engineering support during commissioning. A
30-minute or less call-back response is required.

13.6.3 Validation and Calibration Support

The Contractor shall provide engineering staff as required to support subsystem validation and
calibration. Barring anomalies, validation and calibration activities will nominally occur between
[**Redacted**] and [**Redacted**] hours [**Redacted**] through [**Redacted**]. Cal-Val activities
will require approximately [**Redacted**] days after the commissioning activities (13.6.2) are
complete.

13.6.4 On-Going Support

The Contractor shall provide on-going technical support to the mission for [**Redacted**] after
launch. A one-day or less callback response is required. The Contractor should plan for a level of
effort labor equivalent to [**Redacted**] for [**Redacted**] months.

13.7 Software Test Bench

The Contractor shall maintain a test bench suitable for the development and troubleshooting of the
Instrument computer Flight Software. The bench will include at a minimum:

[**Redacted**].

DigitalGlobe Proprietary and Confidential

Use or disclosure of data is subject to the restriction on the title page of this document.

 

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	 	WV3 Instrument Statement of Work

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14.0 Reserved

15.0 Facilities

The Contractor shall provide all facilities necessary to perform the scope of this SOW.

DigitalGlobe Proprietary and Confidential

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35

 

			
	 	 	 
	
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Doc Number 10329744

Attachment 1: Contract Data Items List

	 	 	 	 	 	 	 	 	 	 	 
	Data	 	 	 	SOW	 	 	 	 	 	 
	Item	 	Title	 	Ref	 	Initial	 	Updates	 	Final
	Program Management
	PM-1
	 	Program Management Structure	 	4.2	 	[**Redacted**]	 	As req’d	 	 
	PM-2
	 	Master Program Schedule	 	4.4	 	[**Redacted**]	 	monthly	 	 
	PM-3
	 	Program Management Reviews	 	4.5.2	 	[**Redacted**]	 	monthly	 	 
	PM-4
	 	Component/Subsystem Design Review Listing	 	4.5.4	 	[**Redacted**]	 	As req’d	 	 
	PM-5
	 	Component/Subsystem Test Readiness / Data Review Listing	 	4.5.5	 	[**Redacted**]	 	As req’d	 	 
	PM-6
	 	Documentation Listing	 	4.6.3	 	[**Redacted**]	 	As req’d	 	 
	PM-7
	 	Action Item List	 	4.7	 	[**Redacted**]	 	As req’d	 	 
	PM-8
	 	Historical / Forecast Payments	 	4.8.1 4.8.2	 	[**Redacted**]	 	monthly	 	 
	PM-9
	 	Risk Management Report	 	4.10	 	[**Redacted**]	 	monthly	 	 
	Design
	D-1
	 	System Requirements Review	 	5.2.a	 	[**Redacted**]	 	 	 	 
	D-2
	 	SSS PDR Data Package Telescope PDR Data Package	 	5.2.b	 	[**Redacted**]	 	 	 	 
	D-3
	 	SSS CDR Data Package Telescope CDR Data Package	 	5.2.c	 	[**Redacted**]	 	 	 	 
	D-4
	 	Requirements Verification Plan	 	5.3.1	 	[**Redacted**]	 	 	 	 
	D-5
	 	Instrument Level Requirements Verification/Compliance Matrix	 	5.3.2	 	[**Redacted**]	 	As noted	 	 
	D-6
	 	Component / Subsystem Specifications	 	5.3.3	 	[**Redacted**]	 	CDR	 	 
	D-7
	 	Component / Subsystem Level RVCM	 	5.3.4	 	[**Redacted**]	 	As reqd	 	 
	D-8
	 	Drawings	 	5.3.5	 	[**Redacted**]	 	with EOs	 	 

DigitalGlobe Proprietary and Confidential

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	 	WV3 Instrument Statement of Work

Doc Number 10329744

	 	 	 	 	 	 	 	 	 	 	 
	Data	 	 	 	SOW	 	 	 	 	 	 
	Item	 	Title	 	Ref	 	Initial	 	Updates	 	Final
	D-9
	 	System Budgets	 	5.3.6	 	[**Redacted**]	 	per schedule	 	 
	D-10
	 	Subsystem Description Documents	 	5.3.7	 	[**Redacted**]	 	PSR	 	 
	D-11
	 	Structural Analysis and Model	 	5.3.8.a	 	[**Redacted**]	 	As req’d	 	 
	D-12
	 	Thermal Analysis and Model	 	5.3.8.b	 	[**Redacted**]	 	 	 	 
	D-13
	 	Failure Modes and Effects and Criticality Analysis	 	5.3.8.c	 	[**Redacted**]	 	 	 	 
	D-14
	 	Reliability Analysis and Model	 	5.3.8.d	 	[**Redacted**]	 	 	 	 
	D-15
	 	Optical Analyses and Model	 	5.3.8.e	 	[**Redacted**]	 	 	 	 
	D-16
	 	Instrument to Spacecraft ICD Verification Plan	 	5.3.9.1	 	[**Redacted**]	 	 	 	 
	D-17
	 	Instrument to Spacecraft ICD RVCM	 	5.3.9.2	 	[**Redacted**]	 	 	 	 
	D-18
	 	Critical Items List	 	5.3.10	 	[**Redacted**]	 	 	 	 
	D-19
	 	Component Heritage Summary	 	5.3.11	 	[**Redacted**]	 	 	 	 
	D-20
	 	Engineering Reports and Data	 	5.3.12	 	[**Redacted**]	 	 	 	 
	D-21
	 	Flight Software Code	 	5.3.13.1	 	[**Redacted**]	 	As req’d	 	 
	D-22
	 	Decompression Source Code and Executable	 	.5.3.13.2	 	[**Redacted**]	 	As revised	 	 
	D-23
	 	Decompressor User’s Manual	 	5.3.13.3	 	[**Redacted**]	 	As revised	 	 
	D-24
	 	Compressor Executable	 	5.3.13.4	 	[**Redacted**]	 	As revised	 	 
	D-25
	 	Compressor User’s Manual	 	5.3.13.5	 	[**Redacted**]	 	As revised	 	 
	D-26
	 	Composite Grounding Design	 	5.3.14	 	[**Redacted**]	 	As req’d	 	 
	D-27
	 	LOS Prediction Models	 	5.3.15	 	[**Redacted**]	 	As req’d	 	 
	D-28
	 	Use of Relays	 	5.3.16	 	[**Redacted**]	 	As req’d	 	 
	D-29
	 	Radiometric Calibration Data	 	5.3.17	 	[**Redacted**]	 	 	 	 
	D-30
	 	Spectral Performance Data	 	5.3.18	 	[**Redacted**]	 	As req’d when data
is collected	 	 

DigitalGlobe Proprietary and Confidential

Use or disclosure of data is subject to the restriction on the title page of this document.

 

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Doc Number 10329744

	 	 	 	 	 	 	 	 	 	 	 
	Data	 	 	 	SOW	 	 	 	 	 	 
	Item	 	Title	 	Ref	 	Initial	 	Updates	 	Final
	Product Assurance
	QA-1
	 	Product Assurance Plan & Supplier Product Assurance Plan	 	6.1	 	[**Redacted**]	 	As req’d	 	 
	QA-2
	 	EEE Parts Listing	 	6.2.2	 	[**Redacted**]	 	See 6.2.2	 	See 6.2.2
	QA-3
	 	Material Identification and Usage Listing	 	6.2.3	 	[**Redacted**]	 	As req’d	 	Component EIDP review
	QA-4
	 	As built configured article list	 	6.3.1	 	[**Redacted**]	 	 	 	 
	QA-5
	 	Certificate of Conformance	 	6.3.2	 	[**Redacted**]	 	 	 	 
	QA-6
	 	End Item Data Package	 	6.3.3	 	[**Redacted**]	 	 	 	 
	QA-7
	 	Audit Results	 	6.4	 	[**Redacted**]	 	 	 	 
	QA-8
	 	Contamination Control Plan	 	6.5	 	[**Redacted**]	 	As req’d	 	 
	QA-9
	 	Failure Reports	 	6.6	 	[**Redacted**]	 	As req’d	 	 
	Procurement, Production & Test
	PT-1
	 	Program Subcontract Status Report	 	7.3	 	[**Redacted**]	 	monthly	 	 
	PT-2
	 	Instrument Integration and Test Plan	 	9.3.1	 	[**Redacted**]	 	As reqd	 	 
	PT-3
	 	Instrument Level Test Matrix	 	9.5.1	 	[**Redacted**]	 	As req’d	 	 
	PT-4
	 	Calibration / Validation Plan Inputs	 	9.5.2	 	[**Redacted**]	 	As req’d	 	 
	PT-5
	 	System Test Plans	 	9.6	 	[**Redacted**]	 	25 work days prior to TRR	 	TRR
	PT-6
	 	System Test Reports	 	9.6	 	[**Redacted**]	 	 	 	 
	PT-7
	 	SSS Environmental TRR Data Package	 	9.9.a	 	[**Redacted**]	 	 	 	TRR
	PT-8
	 	SSS Environmental Test Data Review Data Package	 	9.9.b	 	[**Redacted**]	 	 	 	 
	PT-9
	 	Telescope Environmental TRR Data Package	 	9.9.c	 	[**Redacted**]	 	 	 	TRR
	PT-10
	 	Telescope Environmental Test Data Review Data Package	 	9.9.d	 	[**Redacted**]	 	 	 	 

DigitalGlobe Proprietary and Confidential

Use or disclosure of data is subject to the restriction on the title page of this document.

 

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Doc Number 10329744

	 	 	 	 	 	 	 	 	 	 	 
	Data	 	 	 	SOW	 	 	 	 	 	 
	Item	 	Title	 	Ref	 	Initial	 	Updates	 	Final
	PT-11
	 	Pre-Ship Review Data Package	 	9.9.e	 	[**Redacted**]	 	 	 	PSR
	PT-12
	 	Post-Shipment Test Data Review Data Package	 	9.9.f	 	[**Redacted**]	 	 	 	 
	Launch and Mission
	LM-1
	 	Training Materials	 	13.1.1	 	[**Redacted**]	 	As revised	 	 
	LM-2
	 	Command &Telemetry Handbook	 	13.2	 	[**Redacted**]	 	As revised	 	 

ATP is Authorization To Proceed. For instance, ATP +1m is 1 month after ATP.

DigitalGlobe Proprietary and Confidential

Use or disclosure of data is subject to the restriction on the title page of this document.

 

Attch 1 - 4

 

			
	 	 	 
	
	 	WV3 Instrument Statement of Work

Doc Number 10329744

Attachment 2: Customer Furnished Equipment

	 	 	 	 	 	 	 
	Item	 	Title	 	SOW Ref	 	Delivery Date
	CFE-1
	 	[**Redacted**]	 	10.1	 	[**Redacted**]
	CFE-2
	 	[**Redacted**]	 	10.2	 	[**Redacted**]
	CFE-3
	 	[**Redacted**]	 	10.3	 	[**Redacted**]
	CFE-4
	 	[**Redacted**]	 	10.4	 	[**Redacted**]

DigitalGlobe Proprietary and Confidential

Use or disclosure of data is subject to the restriction on the title page of this document.

 

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	 	WV3 Instrument Statement of Work

Doc Number 10329744

DigitalGlobe Proprietary and Confidential

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	 	Exhibit 2 — Milestone Payment and Termination Liability Schedule
Doc Number: 10330612

FOIA CONFIDENTIAL TREATMENT REQUESTED

PORTIONS OF THIS EXHIBIT MARKED BY [**Redacted**] HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

	 	 	 	 	 	 	 	 	 	 	 	 	 
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	 	Exhibit 2 — Milestone Payment and Termination Liability Schedule
Doc Number: 10330612

	 	 	 	 	 	 	 	 	 	 	 	 	 
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	 	Exhibit 2 — Milestone Payment and Termination Liability Schedule
Doc Number: 10330612

	 	 	 	 	 	 	 	 	 	 	 	 	 
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	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	 	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	 
	 	 	 	 	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 

DigitalGlobe Proprietary and Confidential

Use or disclosure of data is subject to the restriction on the title page of this document.

 

3

 

			
	 	 	 
	
	 	Exhibit 2 — Milestone Payment and Termination Liability Schedule
Doc Number: 10330612

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total for	 	Termination
	EDC Month	 	Finish Dates	 	P S - UID	 	Name	 	Amount	 	Month	 	Liability
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	 	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	[**Redacted**]
	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]	 	[**Redacted**]
	 
	 	 	 	 	 	[**Redacted**]	 	[**Redacted**]	 	 	 	 
	 
	 	 	 	 	 	 	 	Total:	 	$126,500,000	 	 

DigitalGlobe Proprietary and Confidential

Use or disclosure of data is subject to the restriction on the title page of this document.

 

4

 

FOIA CONFIDENTIAL TREATMENT REQUESTED

PORTIONS OF THIS EXHIBIT MARKED BY [**Redacted**] HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Exhibit 3 to Agreement #60151

Document Number 10329748

Exhibit 3 to Agreement # 60151

WORLDVIEW 3 INSTRUMENT SOFTWARE LICENSE AGREEMENT

THIS LICENSE AGREEMENT (“License”) made this xxth day of August, 2010 (“Effective Date”) by
and between ITT Space Systems, LLC, having an office at 1447 St. Paul Street, Rochester, New York,
14621 (hereinafter called “Contractor”) and DigitalGlobe, Inc., having an office at 1601 Dry Creek
Drive, Suite 260, Longmont, Colorado 80503 (hereinafter called “Customer”). As used in this
License Agreement, “Party” means either Customer or Contractor as appropriate, and “Parties” means
Customer and Contractor.

WHEREAS, Contractor has developed flight and ground computer software and source code that is
required to support the WorldView 3 (“WV3”) Instrument being built by Contractor under the
Instrument Purchase Agreement #60151 (the “Agreement”); and

WHEREAS, Contractor is willing to grant Customer a license to use the WV3 INSTRUMENT FLIGHT
SOFTWARE and Customer desires to be granted a license to use the WV3 INSTRUMENT FLIGHT SOFTWARE and
Source Code for its use in association with [**Redacted**] WV3 Instrument, which it is purchasing
under the Agreement; and

WHEREAS, the Parties desire to set forth the rights granted with respect to the WV3 INSTRUMENT
FLIGHT SOFTWARE and Instrument Ground Operations Software.

NOW THEREFORE, for good and valuable consideration set forth in the Agreement, and in
consideration of the mutual terms and conditions herein contained, the Parties agree as follows:

	1.	 	Description of Licensed Materials

The licensed materials consist of Contractor’s WV3 Instrument and Instrument Ground Operations
Software, including the software as hosted on the WV3 Instrument, as well as any
Contractor-provided Ground Operations Software such as but not limited to the Decompression
Software. Licensed materials are:

[**Redacted**]

	2.	 	Right to Use

Subject to the terms, conditions and limitations of this License, Contractor hereby grants to
Customer and Customer hereby accepts a [**Redacted**] license to use:

	 	(a)	 	the Flight Software in the WV3 Instrument; and

	 
	 	(b)	 	the Ground Software in the ground processing equipment used for the WV3 Satellite at
any Customer facility, any US government-owned ground station, and any facility that
supports Customer’s Direct Access Program.

 

 

 

Exhibit 3 to Agreement #60151

Document Number 10329748

Customer shall have no right [**Redacted**] to Software or Source Code or [**Redacted**] with
other computer [**Redacted**] other than as needed to support the operations of the WorldView 3
Instrument, . Customer expressly agrees that it shall not use the [**Redacted**] contained in
the Software or the Source Code except for the purposes and uses authorized by this License.

	3.	 	Confidentiality

The Software and Source Code are valuable assets to Contractor and are Contractor’s confidential
and proprietary information. The Non-Disclosure Agreement that the Parties entered into
pursuant to Article 27.15 of the Agreement will govern the obligations of the Parties with
respect to the treatment of the confidential Software and Source Code. The period limiting the
use and disclosure of the Software and Source Code is extended to [**Redacted**] after the the
WorldView 3 Satellite is no longer in operation..

The provisions of this clause (3. Confidentiality) shall survive the completion and/or
termination of this License and/or the Agreement.

	4.	 	Copying and Modifications

	 	(a)	 	Customer may make copies of the Software in machine-readable form and Source Code in
support of its own use of the Software and Source Code as permitted by this License
Agreement, provided all copyright notices and confidential/proprietary markings are
maintained and reproduced.

	 	(b)	 	Customer may not remove, must reproduce and include all copyright notices and
confidential/proprietary notices of Contractor on any copy of all or any portion of the
Software. All copies shall be subject to the terms and conditions of this License.

	 	(c)	 	Customer may distribute the Software or the Source Code only to a third party (the
“Sublicense”) engaged by Customer to support the WV-3 Satellite and ground processing
associated with the WV-3 Satellite, including; a. U.S. government-owned ground stations and
b. ground stations associated with Customer’s Direct Access Program, provided that (1)
Sublicensee agree to be bound by all obligations, restrictions, and limitations set forth
in the License Agreement: provided, however, that such Sublicensee shall have no right to
further sublicense or distribute the Software or the Source Code to any other third party;
and (2) Customer notifies Contractor of the identities of such Sublicensees.

	 	(d)	 	In the event that the Flight Source Code is released to Customer pursuant to the terms
of the Escrow account, Customer may make modifications to the Flight Software after the WV3
Instrument has been launched. Such modifications may correct defects in the Flight
Software, or may provide software [**Redacted**]condition s, which occur, or may represent
enhancements as warranted to improve [**Redacted**] operations. If requested by
Contractor, Customer shall provide to Contractor a report of the modifications, which may
be a copy of the modified Software or Source Code, as applicable, or a list of the changes.

	 	(e)	 	Customer may use the Ground Software or Source Code, including [**Redacted**], at any
time to develop ground operations software, including ground operations software in support
of: a. U.S. government-owned ground station(s) and/or b. Customer’s Direct Access Program,
for the WV3 Instrument being built for Customer by Contractor.

Page 2 of 4

CONFIDENTIAL AND PROPRIETARY

 

 

 

Exhibit 3 to Agreement #60151

Document Number 10329748

	5.	 	Ownership

Customer agrees that [**Redacted**] of the Software or the Source Code or any copyright rights
therein. Title to and ownership of the Software and the Source Code furnished to Customer and
all copyright rights herein are, and shall at all times remain, the property [**Redacted**].

Customer shall retain sole title or ownership to any enhancements made to the Software in
accordance with Section 4 of this License.

	6.	 	Transfer of Rights

Customer shall not sell, assign or otherwise transfer its right to use the Software or Source
Code to a third party except upon the conditions identified in Article 27.1 (Assignment) of the
Agreement.

	7.	 	Consideration

The Software and the Source Code are furnished in association with the delivery by Contractor of
certain equipment and services under the Agreement. No separate consideration is provided for
the rights granted hereunder, and accordingly this license shall be royalty free.

	8.	 	Terms and Termination

	 	(a)	 	This License Agreement shall extend for the duration of WV3 Satellite development,
launch, and on-orbit operations and shall be extended for an additional term only upon
mutual written agreement by the Parties. However, in the event that Customer procures and
then launches additional WorldView Instruments, upon mutual written agreement of the
Parties, this License shall be extended for the development, launch, and on-orbit
operations of such Instruments being built for Customer by Contractor.

	 	(b)	 	Contractor shall be entitled to terminate Customer’s rights under this License
Agreement in the event Customer is in material breach of any of the terms and conditions of
this License. In the event of termination of this License for any reason, Customer shall,
except to the extent Software has been incorporated into satellites already launched by
Customer or in operational elements of Customer ground system, promptly either return the
Software and Source Code to Contractor, or at the request of Contractor, destroy the
Software and Source Code and all copies, including the archived copy referenced in Section
4(a) above, and certify in writing to Contractor that such has been done, and Customer
shall make no further use of the Software or Source Code.

	9.	 	Proprietary Rights

The Software and the Source Code are valuable assets of Contractor and are Contractor’s
proprietary and confidential information. Customer agrees not to attempt to reverse engineer,
recompile, disassemble or rewrite the Software or the Source Code or any portion thereof except
as permitted by the terms of this License.

Page 3 of 4

CONFIDENTIAL AND PROPRIETARY

 

 

 

Exhibit 3 to Agreement #60151

Document Number 10329748

	10.	 	Export Control

If the Software or the Source Code is exported outside the United States, Customer has the sole
responsibility and obligation to obtain all necessary consents, licenses and/or approvals which
may be required in connection therewith.

	11.	 	Construction

This License has been negotiated by the respective Parties hereto and the language of this
License shall not be construed for or against any Party as a result of the Party having drafted
this License.

	12.	 	Entire Agreement

This License constitutes the entire understanding of the Parties with respect to the subject
matter of this License and supersedes all prior contemporaneous agreements or understandings.
By signing this License each Party represents to the other that it has the authority to sign and
that this License is enforceable against it in accordance with its terms.

IN WITNESS WHEREOF, the Parties have signed this License on the date set forth below:

	 	 	 	 	 	 	 	 	 
	DIGITALGLOBE, INC.	 	 	 	ITT SPACE SYSTEMS, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	BY:

	 	/s/ Yancey Spruill
 

	 	 	 	[**Redacted**]
	 	 
	 	 	SIGNATURE: Yancey Spruill	 	 	 	[**Redacted**]	 	 
	 	 	TITLE: Executive Vice President & 

Chief Financial Officer
	 	 	 	[**Redacted**]	 	 
	 
	 	 	 	 	 	 	 	 
	[**Redacted**]	 	 	 	[**Redacted**]	 	 

Page 4 of 4

CONFIDENTIAL AND PROPRIETARYexv4w4

EXHIBIT 4.4

 

LEGACY RESERVES LP

AND

LEGACY RESERVES FINANCE CORPORATION,

as Issuers,

AND

[____________________],

as Trustee

 

INDENTURE

DATED AS OF ________ __, 20__

 

SENIOR DEBT SECURITIES

 

 

LEGACY RESERVES LP

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939, AS AMENDED,

AND INDENTURE, DATED AS OF ________ __, 20__

	 	 	 	 	 
	TRUST INDENTURE ACT SECTION	 	INDENTURE SECTION
	Section 310(a)(1)
	 	 	6.9
	(a)(2)
	 	 	6.9
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(a)(5)
	 	 	6.9
	(b)
	 	 	6.8
	 
	 	 	 	 
	Section 311
	 	 	6.13
	 
	 	 	 	 
	Section 312(a)
	 	 	7.1, 7.2(a)
	(b)
	 	 	7.2(b)
	(c)
	 	 	7.2(c)
	 
	 	 	 	 
	Section 313(a)
	 	 	7.3
	(b)
	 	 	*
	(c)
	 	 	*
	(d)
	 	 	7.3
	 
	 	 	 	 
	Section 314(a)
	 	 	7.4
	(a)(4)
	 	 	10.5
	(b)
	 	Not Applicable
	(c)(1)
	 	 	1.3
	(c)(2)
	 	 	1.3
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	 	1.3
	 
	 	 	 	 
	Section 315(a)
	 	 	6.1(a)
	(b)
	 	 	6.2
	(c)
	 	 	6.1(b)
	(d)
	 	 	6.1(c)
	(d)(1)
	 	 	6.1(a)(1)
	(d)(2)
	 	 	6.1(c)(2)
	(d)(3)
	 	 	6.1(c)(3)
	(e)
	 	 	5.14
	 
	 	 	 	 
	Section 316(a)
	 	 	1.1, 1.2
	(a)(1)(A)
	 	 	5.2, 5.12
	(a)(1)(B)
	 	 	5.13
	(a)(2)
	 	Not Applicable
	(b)
	 	 	5.8
	(c)
	 	 	1.5(f)

 

	 	 	 	 	 
	TRUST INDENTURE ACT SECTION	 	INDENTURE SECTION
	Section 317(a)(1)
	 	 	5.3
	(a)(2)
	 	 	5.4
	(b)
	 	 	10.3
	 
	 	 	 	 
	Section 318(a)
	 	 	1.8

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

 

			
	*	 	Deemed included pursuant to Section 318(c) of the Trust Indenture Act

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Incorporation by Reference of Trust Indenture Act
	 	 	8	 
	Section 1.3. Compliance Certificates and Opinions
	 	 	8	 
	Section 1.4. Form of Documents Delivered to Trustee
	 	 	9	 
	Section 1.5. Acts of Holders; Record Dates
	 	 	9	 
	Section 1.6. Notices, Etc., to Trustee, Issuers and Guarantors
	 	 	10	 
	Section 1.7. Notice to Holders; Waiver
	 	 	11	 
	Section 1.8. Conflict with Trust Indenture Act
	 	 	12	 
	Section 1.9. Effect of Headings and Table of Contents
	 	 	12	 
	Section 1.10. Successors and Assigns
	 	 	12	 
	Section 1.11. Separability Clause
	 	 	12	 
	Section 1.12. Benefits of Indenture
	 	 	12	 
	Section 1.13. Force Majeure
	 	 	12	 
	Section 1.14. Waiver of Jury Trial
	 	 	12	 
	Section 1.15. Governing Law
	 	 	13	 
	Section 1.16. Legal Holidays
	 	 	13	 
	Section 1.17. Securities in a Composite Currency, Currency Unit or Foreign Currency
	 	 	13	 
	Section 1.18. Payment in Required Currency; Judgment Currency
	 	 	13	 
	Section 1.19. Language of Notices, Etc.
	 	 	14	 
	Section 1.20. Incorporators, Unitholders, Stockholders, Partners, Officers and Directors of
the Issuers and the Guarantors Exempt from Individual Liability
	 	 	14	 
	 
	 	 	 	 
	ARTICLE TWO SECURITY FORMS
	 	 	14	 
	Section 2.1. Forms Generally
	 	 	14	 
	Section 2.2. Form of Face of Security
	 	 	15	 
	Section 2.3. Form of Reverse of Security
	 	 	17	 
	Section 2.4. Global Securities
	 	 	22	 
	Section 2.5. Form of Trustee’s Certificate of Authentication
	 	 	23	 
	 
	 	 	 	 
	ARTICLE THREE THE SECURITIES
	 	 	23	 
	Section 3.1. Amount Unlimited; Issuable in Series
	 	 	23	 
	Section 3.2. Denominations
	 	 	25	 
	Section 3.3. Execution, Authentication, Delivery and Dating
	 	 	26	 
	Section 3.4. Temporary Securities
	 	 	27	 
	Section 3.5. Registration, Registration of Transfer and Exchange
	 	 	28	 
	Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	30	 
	Section 3.7. Payment of Interest; Interest Rights Preserved
	 	 	31	 
	Section 3.8. Persons Deemed Owners
	 	 	31	 
	Section 3.9. Cancellation
	 	 	32	 
	Section 3.10. Computation of Interest
	 	 	32	 
	Section 3.11. CUSIP or CINS Numbers
	 	 	32	 
	 
	 	 	 	 
	ARTICLE FOUR SATISFACTION AND DISCHARGE
	 	 	32	 
	Section 4.1. Satisfaction and Discharge of Indenture
	 	 	32	 
	Section 4.2. Application of Trust Money
	 	 	33	 

 i 

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE FIVE REMEDIES
	 	 	34	 
	Section 5.1. Events of Default
	 	 	34	 
	Section 5.2. Acceleration of Maturity; Rescission and Annulment
	 	 	35	 
	Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	36	 
	Section 5.4. Trustee May File Proofs of Claim
	 	 	36	 
	Section 5.5. Trustee May Enforce Claims Without Possession of Securities
	 	 	37	 
	Section 5.6. Application of Money Collected
	 	 	37	 
	Section 5.7. Limitation on Suits
	 	 	37	 
	Section 5.8. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	38	 
	Section 5.9. Restoration of Rights and Remedies
	 	 	38	 
	Section 5.10. Rights and Remedies Cumulative
	 	 	38	 
	Section 5.11. Delay or Omission Not Waiver
	 	 	39	 
	Section 5.12. Control by Holders
	 	 	39	 
	Section 5.13. Waiver of Past Defaults
	 	 	39	 
	Section 5.14. Undertaking for Costs
	 	 	39	 
	Section 5.15. Waiver of Stay, Extension or Usury Laws
	 	 	40	 
	 
	 	 	 	 
	ARTICLE SIX THE TRUSTEE
	 	 	40	 
	Section 6.1. Certain Duties and Responsibilities
	 	 	40	 
	Section 6.2. Notice of Defaults
	 	 	41	 
	Section 6.3. Certain Rights of Trustee
	 	 	41	 
	Section 6.4. Not Responsible for Recitals or Issuance of Securities
	 	 	43	 
	Section 6.5. May Hold Securities
	 	 	43	 
	Section 6.6. Money Held in Trust
	 	 	43	 
	Section 6.7. Compensation and Reimbursement
	 	 	43	 
	Section 6.8. Disqualification; Conflicting Interests
	 	 	44	 
	Section 6.9. Corporate Trustee Required; Eligibility
	 	 	44	 
	Section 6.10. Resignation and Removal; Appointment of Successor
	 	 	44	 
	Section 6.11. Acceptance of Appointment by Successor
	 	 	45	 
	Section 6.12. Merger, Conversion, Consolidation or Succession to Business
	 	 	46	 
	Section 6.13. Preferential Collection of Claims Against Issuers
	 	 	47	 
	Section 6.14. Appointment of Authenticating Agent
	 	 	47	 
	 
	 	 	 	 
	ARTICLE SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	48	 
	Section 7.1. Issuers to Furnish Trustee Names and Addresses of Holders
	 	 	48	 
	Section 7.2. Preservation of Information; Communications to Holders
	 	 	49	 
	Section 7.3. Reports by Trustee
	 	 	50	 
	Section 7.4. Reports by Company
	 	 	50	 
	 
	 	 	 	 
	ARTICLE EIGHT CONSOLIDATION, AMALGAMATION, MERGER AND SALE
	 	 	51	 
	Section 8.1. Issuers May Consolidate, Etc., Only on Certain Terms
	 	 	51	 
	Section 8.2. Successor Substituted
	 	 	51	 
	 
	 	 	 	 
	ARTICLE NINE AMENDMENT, SUPPLEMENT AND WAIVER
	 	 	52	 
	Section 9.1. Without Consent of Holders
	 	 	52	 
	Section 9.2. With Consent of Holders
	 	 	53	 
	Section 9.3. Execution of Amendments and Supplemental Indentures
	 	 	54	 
	Section 9.4. Effect of Amendments and Supplemental Indentures
	 	 	55	 
	Section 9.5. Conformity with Trust Indenture Act
	 	 	55	 
	Section 9.6. Reference in Securities to Amendments or Supplemental Indentures
	 	 	55	 

 ii 

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE TEN COVENANTS
	 	 	55	 
	Section 10.1. Payment of Principal, Premium and Interest
	 	 	55	 
	Section 10.2. Maintenance of Office or Agency
	 	 	55	 
	Section 10.3. Money for Securities Payments to Be Held in Trust
	 	 	56	 
	Section 10.4. Existence
	 	 	57	 
	Section 10.5. Statement by Officers as to Default
	 	 	57	 
	 
	 	 	 	 
	ARTICLE ELEVEN REDEMPTION OF SECURITIES
	 	 	57	 
	Section 11.1. Applicability of Article
	 	 	57	 
	Section 11.2. Election to Redeem; Notice to Trustee
	 	 	58	 
	Section 11.3. Selection by Trustee of Securities to Be Redeemed
	 	 	58	 
	Section 11.4. Notice of Redemption
	 	 	58	 
	Section 11.5. Deposit of Redemption Price
	 	 	59	 
	Section 11.6. Securities Payable on Redemption Date
	 	 	59	 
	Section 11.7. Securities Redeemed in Part
	 	 	59	 
	 
	 	 	 	 
	ARTICLE TWELVE SINKING FUNDS
	 	 	60	 
	Section 12.1. Applicability of Article
	 	 	60	 
	Section 12.2. Satisfaction of Sinking Fund Payments with Securities
	 	 	60	 
	Section 12.3. Redemption of Securities for Sinking Fund
	 	 	60	 
	 
	 	 	 	 
	ARTICLE THIRTEEN DEFEASANCE
	 	 	60	 
	Section 13.1. Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	60	 
	Section 13.2. Legal Defeasance and Discharge
	 	 	61	 
	Section 13.3. Covenant Defeasance
	 	 	61	 
	Section 13.4. Conditions to Legal or Covenant Defeasance
	 	 	62	 
	Section 13.5. Deposited Money and U.S. Government Obligations to be Held in Trust, Other
Miscellaneous Provisions
	 	 	63	 
	Section 13.6. Reinstatement
	 	 	63	 
	 
	 	 	 	 
	ARTICLE FOURTEEN GUARANTEE OF SECURITIES
	 	 	64	 
	Section 14.1. Securities Guarantee
	 	 	64	 
	Section 14.2. Limitation on Guarantor Liability
	 	 	65	 
	Section 14.3. Execution and Delivery of Securities Guarantee Notation
	 	 	65	 

NOTE: This table of contents shall not, for any purpose, be deemed to be a part of the
Indenture.

 iii 

 

PARTIES

     INDENTURE, dated as of ____________, 20__, among LEGACY RESERVES LP, a limited partnership
duly organized and existing under the laws of the State of Delaware (herein called the “Company”),
LEGACY RESERVES FINANCE CORPORATION, a Delaware corporation (“Finance Corp.,” and together with
the Company, the “Issuers”), the Guarantors (as defined hereinafter) and [____________________], a
[____________], as trustee (the “Trustee”).

RECITALS OF THE ISSUERS:

     The Issuers have duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of the Issuers’ unsecured senior debentures, notes or other
evidences of indebtedness (herein called the “Securities”), which may be guaranteed by the
Guarantors, to be issued in one or more series as provided in this Indenture.

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

     This Indenture is subject to the provisions of the Trust Indenture Act (as defined herein)
that are required to be a part of this Indenture and, to the extent applicable, shall be governed
by such provisions.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.1. Definitions.

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

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

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

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

     (d) the words “Article” and “Section” refer to an Article and Section, respectively, of
this Indenture;

     (e) the word “includes” and its derivatives means “includes, but is not limited to” and
corresponding derivative definitions; and

 

 

     (f) references to any officer of any partnership or limited liability company that does
not have officers but is managed or controlled, directly or indirectly, by an entity that
does have officers, shall be deemed to be references to the officers of such managing or
controlling entity.

     Certain terms, used principally in Article Six, are defined in that Article.

     “Act,” when used with respect to any Holder, has the meaning specified in Section 1.5.

     “Additional Defeasible Provision” means a covenant or other provision that is (a) made part of
this Indenture pursuant to an indenture supplemental hereto, a Board Resolution or an Officer’s
Certificate delivered pursuant to Section 3.1, and (b) pursuant to the terms set forth in such
supplemental indenture, Board Resolution or Officer’s Certificate, made subject to the provisions
of Article Thirteen.

     “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
purposes of this definition, “control,” as used with respect to any Person, means 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, by agreement or otherwise. For
purposes of this definition, the terms “controlling,” “controlled by” and “under common control
with” have correlative meanings.

     “Authenticating Agent” means any Person authorized by the Trustee to act on behalf of the
Trustee to authenticate Securities.

     “Banking Day” means, in respect of any city, any date on which commercial banks are open for
business in that city.

     “Bankruptcy Law” means any applicable Federal or State bankruptcy, insolvency, reorganization
or other similar law.

     “Board of Directors” means:

     (a) with respect to a corporation, the board of directors of the corporation or any committee
thereof duly authorized to act on behalf of such board;

     (b) with respect to a partnership, the Board of Directors of the general partner of the
partnership;

     (c) with respect to a limited liability company, the managing member or members or any
controlling committee of managers or members thereof or any board or committee serving a similar
management function; and

     (d) with respect to any other Person, the individual or board or committee of such Person
serving a management function similar to those described in clauses (a), (b) or (c) of this
definition.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company, Finance Corp. or a Guarantor, the principal financial officer of the
Company, Finance Corp. or a Guarantor, any other authorized officer of the Company, Finance Corp.
or a Guarantor, or a person duly authorized by any of them, in each case as applicable, to have
been duly adopted by the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee. Where any provision of this Indenture refers to
action to be taken pursuant to a Board Resolution (including the establishment of any series of the
Securities and the forms and terms thereof), such action may be taken by any committee, officer or
employee of the Company, Finance Corp.

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or a Guarantor, as applicable, authorized to take such action by the Board of Directors, as
evidenced by a Board Resolution.

     “Business Day,” when used with respect to any Place of Payment or other location, means,
except as otherwise provided as contemplated by Section 3.1 with respect to any series of
Securities, each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking
institutions and trust companies in that Place of Payment or other location are authorized or
obligated by law, executive order or regulation to close.

     “CINS” means CUSIP International Numbering System.

     “Code” means the United States Internal Revenue Code of 1986, as amended.

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

     “Corporate Trust Office” means the office of the Trustee at the address specified in Section
3.5 or such other address as to which the Trustee may give notice to the Issuers.

     “corporation,” when used in reference to the Trustee or any prospective Trustee, shall include
any corporation, company, association, partnership, limited partnership, limited liability company,
joint-stock company, trust or other entity, in each case, satisfying the requirements of Section
310(a)(1) of the Trust Indenture Act.

     “Covenant Defeasance” has the meaning specified in Section 13.3.

     “CUSIP” means the Committee on Uniform Security Identification Procedures.

     “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

     “Debt” means any obligation created or assumed by any Person for the repayment of money
borrowed and any purchase money obligation created or assumed by such Person and any guarantee of
the foregoing.

     “Default” means, with respect to a series of Securities, any event that is, or after notice or
lapse of time or both would be, an Event of Default.

     “Defaulted Interest” has the meaning specified in Section 3.7.

     “Definitive Security” means a security other than a Global Security or a temporary Security.

     “Depositary” 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, a clearing agency registered under the
Exchange Act that is designated to act as Depositary for such Securities as contemplated by Section
3.1, until a successor Depositary shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter shall mean or include each Person which is a Depositary hereunder,
and if at any time there is more than one such Person, shall be a collective reference to such
Persons.

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     “Dollar” or “$” means the coin or currency of the United States of America, which at the time
of payment is legal tender for the payment of public and private debts.

     “Event of Default” has the meaning specified in Section 5.1.

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

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

     “Foreign Currency” means a currency used by the government of a country other than the United
States of America.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time, including those set forth in (1) the Financial Accounting Standards Board
Accounting Standards Codification and any related Accounting Standards Updates by the Financial
Accounting Standards Board, (2) such other statements by such other entity as are approved by a
significant segment of the accounting profession and (3) the rules and regulations of the SEC
governing the inclusion of financial statements in periodic reports required to be filed pursuant
to Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting
bulletins and similar written statements from the accounting staff of the SEC. All computations
based on GAAP contained in the Indenture shall be computed in conformity with GAAP.

     “Global Security” means a Security in global form that evidences all or part of a series of
Securities and is authenticated and delivered to, and registered in the name of, the Depositary for
the Securities of such series or its nominee.

     “Guaranteed Securities” has the meaning specified in Section 14.1.

     “Guarantor” means each Person that becomes a guarantor of any Securities pursuant to the
applicable provisions of this Indenture.

     “Holder” means a Person in whose name a Security is registered in the Security Register.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more amendments or indentures supplemental hereto entered into
pursuant to the applicable provisions hereof, including, for all purposes of this instrument, and
any such amendment or supplemental indenture, the provisions of the Trust Indenture Act that are
deemed to be part of and govern this instrument and any such amendment or supplemental indenture,
respectively. The term “Indenture” also shall include the terms of particular series of Securities
established as contemplated by Section 3.1.

     “interest,” when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

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

4

 

     “Issuer Request” or “Issuer Order” means, in the case of the Issuers, a written request or
order signed in the name of each of the Issuers by its Chairman of the Board, its Chief Executive
Officer, its Chief Financial Officer, its President, any of its Vice Presidents or any other duly
authorized officer of the respective Issuer or any person duly authorized by any of them, and
delivered to the Trustee and, in the case of a Guarantor, a written request or order signed in the
name of such Guarantor by its Chairman of the Board, its Chief Executive Officer, its President,
any of its Vice Presidents or any other duly authorized officer of such Guarantor or any person
duly authorized by any of them, and delivered to the Trustee.

     “Issuers” means the Company and Finance Corp.

     “Judgment Currency” has the meaning specified in Section 1.18.

     “Legal Defeasance” has the meaning specified in Section 13.2.

     “mandatory sinking fund payment” has the meaning specified in Section 12.1.

     “Market Exchange Rate” has the meaning specified in Section 1.17.

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

     “Notice of Default” means a written notice of the kind specified in Section 5.1(c) or Section
5.1(d).

     “Officer’s Certificate” means, in the case of the Issuers, a certificate signed by the
Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the President, any
Vice President or any other duly authorized officer of each of the Issuers, or a person duly
authorized by any of them, and delivered to the Trustee and, in the case of a Guarantor, a
certificate signed by the Chairman of the Board, the Chief Executive Officer, the President, any
Vice President or any other duly authorized officer of such Guarantor, or a person duly authorized
by any of them, and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel
for the any of the Issuers or a Guarantor, as the case may be, and who shall be reasonably
acceptable to the Trustee.

     “optional sinking fund payment” has the meaning specified in Section 12.1.

     “Original Issue Discount Security” means any Security which provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.2.

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

     (a) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

     (b) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than an Issuer) in trust
or

5

 

set aside and segregated in trust by the Issuers (if an Issuer shall act as its own
Paying Agent) for the Holders of such Securities; provided, however, that, if such
Securities are to be redeemed, notice of such redemption has been duly given pursuant to
this Indenture or provision therefor satisfactory to the Trustee has been made; and

     (c) Securities which have been paid pursuant to Section 3.6 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held by a
protected purchaser in whose hands such Securities are valid obligations of the Issuers;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, (i) the principal amount of an Original Issue Discount Security that shall be
deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable
as of the date of such determination upon acceleration of the Maturity thereof on such date
pursuant to Section 5.2, (ii) the principal amount of a Security denominated in one or more
currencies or currency units other than U.S. dollars shall be the U.S. dollar equivalent of such
currencies or currency units, determined in the manner provided as contemplated by Section 3.1 on
the date of original issuance of such Security or by Section 1.17, if not otherwise so provided
pursuant to Section 3.1, of the principal amount (or, in the case of an Original Issue Discount
Security, the U.S. dollar equivalent (as so determined) on the date of original issuance of such
Security of the amount determined as provided in clause (i) above) of such Security, and (iii)
Securities owned by an Issuer, any Guarantor or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Securities which
the Trustee knows to be so owned shall be so disregarded. Securities so owned as described in
clause (iii) of the immediately preceding sentence which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right to act with respect to such Securities and that the pledgee is not an Issuer, a Guarantor or
any other obligor upon the Securities or any Affiliate of the Company or of such other obligor.

     “Paying Agent” means any Person authorized by the Issuers to pay the principal of and any
premium or interest on any Securities on behalf of the Issuers.

     “Periodic Offering” means an offering of Securities of a series from time to time, the
specific terms of which Securities, including, without limitation, the rate or rates of interest or
formula for determining the rate or rates of interest thereon, if any, the Stated Maturity or
Stated Maturities thereof, the original issue date or dates thereof, the redemption provisions, if
any, with respect thereto, and any other terms specified as contemplated by Section 3.1 with
respect thereto, are to be determined by the Company upon the issuance of such Securities.

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

     “Place of Payment,” when used with respect to the Securities of any series, means, unless
otherwise specifically provided for with respect to such series as contemplated by Section 3.1, the
office or agency of the Issuers and such other place or places where, subject to the provisions of
Section 10.2, the principal of and any premium and interest on the Securities of that series are
payable as contemplated by Section 3.1.

6

 

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 3.6 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

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

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

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 3.1.

     “Required Currency” has the meaning specified in Section 1.18.

     “Responsible Officer,” when used with respect to the Trustee, means any officer within the
Corporate Trust Office of the Trustee (or any successor group of the Trustee) or any other officer
of the Trustee customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject.

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

     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.

     “Securities Guarantee” means each guarantee of the obligations of the Issuers under this
Indenture and the Securities by a Guarantor in accordance with the provisions hereof.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
3.5.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.7.

     “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.

     “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.

7

 

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as in force at the
date as of which this instrument was executed, except as provided in Section 9.5; provided,
however, that if the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act”
means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended.

     “U.S. Person” shall have the meaning assigned to such term in Section 7701(a)(30) of the Code.

     “U.S. Government Obligations” means securities which are (a) direct obligations of the United
States for the payment of which its full faith and credit is pledged, or (b) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of the United States,
the payment of which is unconditionally guaranteed as a full faith and credit obligation by the
United States, and which are not callable or redeemable at the option of the issuer thereof.

     “Vice President,” when used with respect to an Issuer, the Guarantor or the Trustee, means any
vice president, regardless of whether designated by a number or a word or words added before or
after the title “vice president.”

Section 1.2. Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the Trust Indenture Act, the provision is
incorporated by reference in and made a part of this Indenture. The following Trust Indenture Act
terms used in this Indenture have the following meanings:

“commission” means the SEC.

“indenture securities” means the Securities.

“indenture security holder” means a Holder.

“indenture to be qualified” means this Indenture.

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

“obligor” on the indenture securities means the Issuers, the Guarantor (if
applicable) or any other obligor on the indenture securities.

     All terms used in this Indenture that are defined by the Trust Indenture Act, defined by a
Trust Indenture Act reference to another statute or defined by an SEC rule under the Trust
Indenture Act have the meanings so assigned to them.

Section 1.3. Compliance Certificates and Opinions.

     Upon any application or request by the Issuers or a Guarantor to the Trustee to take any
action under any provision of this Indenture, the Issuers or such Guarantor, as the case may be,
shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with and an
Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically
required by any provision of this Indenture relating to such particular application or
request, no additional certificate or opinion need be furnished except as required under Section
314(c) of the Trust Indenture Act.

8

 

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (except for certificates provided for in Section 10.5) shall include:

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

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

     (c) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether such covenant or condition has been complied with; and

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

Section 1.4. Form of Documents Delivered to Trustee.

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

     Any certificate or opinion of an officer of an Issuer or a Guarantor may be based, insofar as
it relates to legal matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows or, in the exercise of reasonable care, should know that the certificate
or opinion or representations with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of an Issuer or a Guarantor, as the case may be, stating that the information with respect
to such factual matters is in the possession of the respective Issuer or the Guarantor, as the case
may be, unless such counsel knows that the certificate or opinion or representations with respect
to such matters are erroneous.

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

Section 1.5. Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may be embodied in and
evidenced by
one or more instruments of substantially similar tenor signed (either physically or by
means of a facsimile or an electronic transmission, provided that such electronic
transmission is transmitted through the facilities of a Depositary) by such Holders in
person or by agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are
delivered to the Trustee and, where it is hereby expressly required, to the Issuers or the
Guarantors. Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing such
instrument or instruments. Proof of execution of any such instrument or

9

 

of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and (subject
to Section 315 of the Trust Indenture Act) conclusive in favor of the Trustee, the Issuers
and, if applicable, the Guarantors, if made in the manner provided in this Section.

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

     (c) The ownership, principal amount and serial numbers of Securities held by any
Person, and the date of commencement of such Person’s holding of same, shall be proved by
the Security Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act
of the Holder of any Security shall bind every future Holder of the same Security and the
Holder of every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by
the Trustee, the Issuers or, if applicable, the Guarantors in reliance thereon, regardless
of whether notation of such action is made upon such Security.

     (e) Without limiting the foregoing, a Holder entitled to give or take any action
hereunder with regard to any particular Security may do so with regard to all or any part of
the principal amount of such Security or by one or more duly appointed agents each of which
may do so pursuant to such appointment with regard to all or any different part of such
principal amount.

     (f) The Issuers may set any day as the record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other Act provided or permitted
by this Indenture to be given or taken by Holders of Securities of such series, but the
Issuers shall have no obligation to do so. With regard to any record date set pursuant to
this paragraph, the Holders of Outstanding Securities of the relevant series on such record
date (or their duly appointed agents), and only such Persons, shall be entitled to give or
take the relevant action, regardless of whether such Holders remain Holders after such
record date.

Section 1.6. Notices, Etc., to Trustee, Issuers and Guarantors.

     (a) Any notice, request, demand, authorization, direction, consent, waiver or other
communication by the Issuers, any of the Guarantors or the Trustee to the others is duly
given if in writing and delivered in person or mailed by first class mail, postage prepaid,
facsimile or overnight air courier guaranteeing next day delivery, to the others’ address:

If to the Issuers and/or any Guarantor:

Legacy Reserves LP

303 W. Wall Street, Suite 1400

Midland, Texas 79701

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Facsimile: [__________]

Attention: [__________]

with a copy to:

Andrews Kurth LLP

600 Travis, Suite 4200

Houston, Texas 77002

Telephone: (713) 220-4200

Facsimile: (713) 220-4285

Attention: Gislar Donnenberg

If to the Trustee:

[__________]

[__________]

[__________]

Telephone: [__________]

Facsimile: [__________]

Attention: [__________]

     (b) The Issuers, the Guarantors or the Trustee, by notice to the others, may designate
additional or different addresses for subsequent notices or communications.

     (c) All notices and communications (other than those sent to Holders, unless mailed in
the manner herein prescribed) shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; three Business Days after being deposited in the
mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and the next
Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.

Section 1.7. Notice to Holders; Waiver.

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

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

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

11

 

Section 1.8. Conflict with Trust Indenture Act.

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

Section 1.9.
Effect of Headings and Table of Contents.

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

Section 1.10. Successors and Assigns.

     All covenants and agreements in this Indenture by each of the Issuers and the Guarantors shall
bind their respective successors and assigns, whether so expressed or not.

Section 1.11. Separability Clause.

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

Section 1.12. Benefits of Indenture.

     Nothing in this Indenture or in the Securities or, if applicable, the Securities Guarantee,
express or implied, shall give to any Person, other than the parties hereto and their successors
hereunder and the Holders any benefit or any legal or equitable right, remedy or claim under this
Indenture.

Section 1.13. Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including strikes, work stoppages, accidents, acts of war or terrorism,
civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions,
loss or malfunctions of utilities, communications or computer (software and hardware) services; it
being understood that the Trustee shall use reasonable efforts that are consistent with accepted
practices in the banking industry to resume performance as soon as practicable under the
circumstances.

Section 1.14. Waiver of Jury Trial.

     EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS INDENTURE.

12

 

Section 1.15. Governing Law.

     THIS INDENTURE, THE SECURITIES AND THE SECURITIES GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

Section 1.16. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date or other date of Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities or, if applicable, the Securities Guarantee (other
than a provision of the Securities of any series or, if applicable, the Securities Guarantee that
specifically states that such provision shall apply in lieu of this Section 1.16)) payment of
interest or principal and any premium need not be made at such Place of Payment on such date, but
may be made on the next succeeding Business Day at such Place of Payment with the same force and
effect as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, and
if payment is so made, no interest shall accrue for the period from and after such Interest Payment
Date, Redemption Date or Stated Maturity, as the case may be.

Section 1.17. Securities in a Composite Currency, Currency Unit or Foreign Currency.

     Unless otherwise specified in a Board Resolution, Officer’s Certificate or indenture
supplemental hereto delivered pursuant to Section 3.1 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 affected series which are denominated in a coin, currency or currencies other than Dollars
(including, but not limited to, any composite currency, currency units or Foreign Currency), 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. For purposes of this Section 1.17, the term “Market Exchange
Rate” shall mean the noon Dollar buying rate in The City of New York for cable transfers of such
currency or currencies as published by the Federal Reserve Bank of New York, as of the most recent
available date. If such Market Exchange Rate is not so available for any reason with respect to
such currency, such quotation of the Federal Reserve Bank of New York as of the most recent
available date, or quotations or 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, which for purposes of Euros shall be
Brussels, Belgium, or such other quotations or rates of exchange as appropriate shall be used. The
provisions of this paragraph shall apply in determining the equivalent principal amount in respect
of Securities of a series denominated in a currency other than Dollars in connection with any
action taken by Holders of Securities pursuant to the terms of this Indenture.

     In no event will the Trustee have any duty or liability regarding the Market Exchange Rate or
any alternative determination provided for in the preceding paragraph.

Section 1.18. Payment in Required Currency; Judgment Currency.

     Each of the Issuers and the Guarantors 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 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 Required

13

 

Currency could be purchased in The City of New York with the
Judgment Currency on the day on which final unappealable judgment is entered, unless such day is
not a Banking Day, then, to the extent permitted by applicable law, the rate of exchange used shall
be the rate at which in accordance with normal banking procedures the Required Currency could be
purchased in The City of New York with the Judgment Currency on the Banking Day next 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, or
any recovery pursuant to any judgment (regardless of whether entered in accordance with subclause
(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.

Section 1.19. Language of Notices, Etc.

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

Section 1.20. Incorporators, Unitholders, Stockholders, Partners, Officers and Directors of the
Issuers and the Guarantors Exempt from Individual Liability.

     No recourse under or upon any obligation, covenant or agreement of or contained in this
Indenture or of or contained in any Security or, if applicable, the Securities Guarantee, or for
any claim based thereon or otherwise in respect thereof, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator, unitholder, stockholder,
member, officer, manager, employee, partner or director, as such, past, present or future, of an
Issuer, any Guarantor or any successor Person, either directly or through an Issuer, any Guarantor
or any successor Person, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a part of the
consideration for, the execution of this Indenture and the issue of the Securities.

ARTICLE TWO

SECURITY FORMS

Section 2.1. Forms Generally.

     The Securities of each series and, if applicable, the notation thereon relating to the
Securities Guarantee, shall be in substantially the form set forth in this Article Two, or in such
other form or forms as shall be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities and, if applicable,
any notation of the Securities Guarantee, as evidenced by their execution thereof.

14

 

     The definitive Securities shall be printed, lithographed or engraved on steel engraved borders
or may be produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution thereof. If the form of Securities of any series is
established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by an authorized officer or other authorized person on behalf of each of
the Issuers and delivered to the Trustee at or prior to the delivery of the Issuer Order
contemplated by Section 3.3 for the authentication and delivery of such Securities.

     The forms of Global Securities of any series shall have such provisions and legends as are
customary for Securities of such series in global form, including without limitation any legend
required by the Depositary for the Securities of such series.

Section 2.2. Form of Face of Security.

[If the Security is an Original Issue Discount Security and is not “publicly offered” within the
meaning of Treasury Regulations Section 1.1275-1(h), insert—FOR PURPOSES OF SECTION 1275 OF THE
UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, THIS SECURITY WAS ISSUED WITH ORIGINAL
ISSUE DISCOUNT, THE AMOUNT OF THE ORIGINAL ISSUE DISCOUNT IS [. . . . . . . .% OF ITS PRINCIPAL
AMOUNT] [$. . . . PER $1,000 OF PRINCIPAL AMOUNT], THE ISSUE DATE IS . . . . . ., 20. . . AND, THE
YIELD TO MATURITY IS . . . . . . . . , COMPOUNDED [SEMIANNUALLY OR OTHER PROPER PERIOD].

[In the alternative instead of providing such legend, insert the following legend—FOR PURPOSES OF
SECTION 1275 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED THIS SECURITY WAS
ISSUED WITH ORIGINAL ISSUE DISCOUNT, AND. . . . . . . [THE NAME OR TITLE AND ADDRESS OR TELEPHONE
NUMBER OF A REPRESENTATIVE OF THE COMPANY] WILL, BEGINNING NO LATER THAN 10 DAYS AFTER THE ISSUE
DATE, PROMPTLY MAKE AVAILABLE TO HOLDERS THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, THE
YIELD TO MATURITY AND ANY OTHER INFORMATION REQUIRED BY APPLICABLE TREASURY REGULATIONS.]

[Insert any other legend required by the Code or the regulations thereunder.]

[If a Global Security,—insert legend required by Section 2.4 of the Indenture] [If applicable,
insert —UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION, TO THE ISSUERS OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

15

 

LEGACY RESERVES LP

LEGACY RESERVES FINANCE CORPORATION

[TITLE OF SECURITY]

			
	 	 	 
	No . . . . . .
	 	U.S. $. . . . . .

[CUSIP No. ]

LEGACY RESERVES LP, a limited partnership duly organized and existing under the laws of the State
of Delaware (herein called the “Company,” which term includes any successor or resulting Person
under the Indenture hereinafter referred to), and LEGACY RESERVES FINANCE CORPORATION, a [Delaware]
corporation (herein called “Finance Corp.,” which term includes any successor or resulting Person
under the Indenture hereinafter referred to, and together with the Company, the “Issuers”), for
value received, hereby promise to pay to .. . . . . . . . . . . . . . . . . . . . . . ., or
registered assigns, the principal sum of . . . . United States Dollars on . . . . . [If the Security is to
bear interest prior to Maturity, insert—, and to pay interest thereon from . . . . . . . . . . or
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on . . . . . . and . . . . . . in each year, commencing . . . . . ., at the rate of . . . . % per annum, until the principal hereof is paid or made available for payment [if applicable,
insert—, and at the rate of ___% per annum on any overdue principal and premium and on any
installment of interest (to the extent that the payment of such interest shall be legally
enforceable)]. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be the . . . . or . . . . (regardless of whether a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Securities of this series not less than 10 days prior
to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities of this series may be
listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture].

[If the Security is not to bear interest prior to Maturity, insert—The principal of this Security
shall not bear interest except in the case of a default in payment of principal upon acceleration,
upon redemption or at Stated Maturity and in such case the overdue principal of this Security shall
bear interest at the rate of . . . .% per annum (to the extent that the payment of such interest
shall be legally enforceable), which shall accrue from the date of such default in payment to the
date payment of such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue principal that is not so
paid on demand shall bear interest at the rate of . . . . % per annum (to the extent that the
payment of such interest shall be legally enforceable), which shall accrue from the date of such
demand for payment to the date payment of such interest has been made or duly provided for, and
such interest shall also be payable on demand.]

[If a Global Security, insert—Payment of the principal of (and premium, if any) and [if
applicable, insert—any such] interest on this Security will be made by transfer of immediately
available funds to a bank account in ___________ designated by the Holder in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and
private debts [state other currency].]

16

 

[If a Definitive Security, insert—Payment of the principal of (and premium, if any) and [if
applicable, insert—any such] interest on this Security will be made at the office or agency of the
Issuers maintained for that purpose in _______________, in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts] [state other currency] [or subject to any laws or regulations applicable thereto and to the
right of the Issuers (as provided in the Indenture) to rescind the designation of any such Paying
Agent, at the [main] offices of ________________ in _____________, or at such other offices or
agencies as the Issuers may designate, by [United States Dollar] [state other currency] check drawn
on, or transfer to a [United States Dollar] account maintained by the payee with, a bank in The
City of New York (so long as the applicable Paying Agency has received proper transfer instructions
in writing at least ___ days prior to the payment date)] [if applicable, insert—; provided,
however, that payment of interest may be made at the option of the Issuers by [United States
Dollar] [state other currency] check mailed to the addresses of the Persons entitled thereto as
such addresses shall appear in the Security Register] [or by transfer to a [United States Dollar]
[state other currency] account maintained by the payee with a bank in The City of New York [state
other Place of Payment] (so long as the applicable Paying Agent has received proper transfer
instructions in writing by the record date prior to the applicable Interest Payment Date)].]

Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, each of the Issuers has caused this instrument to be duly executed.

     Dated:

	 	 	 	 	 	 	 

	 	 	LEGACY RESERVES LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	LEGACY RESERVES FINANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

Section 2.3. Form of Reverse of Security.

This Security is one of a duly authorized issue of senior securities of the Issuers (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
______, 20__ (herein called the “Indenture”), between the Issuers, the Guarantors, if any, and
[____________________], as Trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Issuers, the Guarantors, if any, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. As provided in the Indenture, the Securities may be issued in one or more series, which
different series may be issued in

17

 

various aggregate principal amounts, may mature at different
times, may bear interest, if any, at different rates, may be subject to different redemption
provisions, if any, may be subject to different sinking, purchase or analogous funds, if any, may
be subject to different covenants and Events of Default and may otherwise vary as in the Indenture
provided or permitted. This Security is one of the series designated on the face hereof [, limited
in aggregate principal amount to $ . . . . . . . . . . ].

This security is the general, unsecured, senior obligation of the Issuers [if applicable,
insert—and is guaranteed pursuant to a guarantee (the “Securities Guarantee”) by [insert name of
each Guarantor] (the “Guarantors”). The Securities Guarantee is the general, unsecured, senior
obligation of each Guarantor].

[If applicable, insert—The Securities of this series are subject to redemption upon not less than ... days’ notice by mail, [if applicable, insert, —(1) on . . . . . . . . . . . . . . in any year
commencing with the year . . . . and ending with the year . . . . through operation of the sinking
fund for this series at a Redemption Price equal to 100% of the principal amount, and (2) ] at any
time [on or after . . . . . . . . . ., 20. . . ], as a whole or in part, at the election of the
Issuers, at the following Redemption Prices (expressed as percentages of the principal amount): If
redeemed [on or before . . . . . . . . . . . . . . . , . . . . . %, and if redeemed] during the
12-month period beginning . . . . . . . . of the years indicated,

	 	 	 	 	 	 	 

	Year
	 	Redemption Price
	 	Year
	 	Redemption Price

and thereafter at a Redemption Price equal to . . . . . % of the principal amount, together in the
case of any such redemption [if applicable, insert—(whether through operation of the sinking fund
or otherwise)] with accrued interest to the Redemption Date, but interest installments the Stated
Maturity of which is on or prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close of business on the
relevant record dates referred to on the face hereof, all as provided in the Indenture.]

[If applicable, insert—The Securities of this series are subject to redemption upon not less
than... nor more than ... days’ notice by mail, (1) on . . . . . . . . in any year commencing with
the year . . . . and ending with the year . . . . through operation of the sinking fund for this
series at the Redemption Prices for redemption through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below, and (2) at anytime [on or after . . . . . . . . . . ], as a whole or in part, at the election of the Issuers, at the Redemption
Prices for redemption otherwise than through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below: If redeemed during the 12-month
period beginning . . . . . . . . . . . . . . of the years indicated,

18

 

	 	 	 	 	 

	Year
	 	Redemption Price For

 Redemption Through

 Operation of the
Sinking Fund
	 	Redemption Price for

 Redemption
Otherwise Than
 Through
Operation of the Sinking Fund

and thereafter at a Redemption Price equal to . . . . % of the principal amount, together in the
case of any such redemption (whether through operation of the sinking fund or otherwise) with
accrued interest to the Redemption Date, but interest installments the Stated Maturity of which is
on or prior to such Redemption Date will be payable to the Holders of such Securities, or one or
more Predecessor Securities, of record at the close of business on the relevant record dates
referred to on the face hereof, all as provided in the Indenture.]

[If applicable, insert—Notwithstanding the foregoing, the Issuers may not, prior to . . . . . . . . . ., redeem any Securities of this series as contemplated by [clause (2) of] the preceding
paragraph as a part of, or in anticipation of, any refunding operation by the application, directly
or indirectly, of moneys borrowed having an interest cost to the Issuers (calculated in accordance
with generally accepted financial practice) of less than . . . .% per annum.]

[If applicable, insert—The sinking fund for this series provides for the redemption on . . . . . .
.. . . . . . in each year beginning with the year . . . . and ending with the year . . . . of [not
less than] $ . . . . . . . . . . . . [ (“mandatory sinking fund”) and not more than $ . . . . . . . . . . . . ] aggregate principal amount of Securities of this series. [Securities of this series
acquired or redeemed by the Issuers otherwise than through [mandatory] sinking fund payments may be
credited against subsequent [mandatory] sinking fund payments otherwise required to be made [If
applicable, insert— in the inverse order in which they become due].]

[If the Securities are subject to redemption in part of any kind, insert—In the event of
redemption of this Security in part only, a new Security or Securities of this series and of like
tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.]

[If applicable, insert—The Securities of this series are not redeemable prior to Stated Maturity.]

[If the Security is not an Original Issue Discount Security,—If an Event of Default with respect
to Securities of this series shall occur and be continuing, the principal of the Securities of this
series may be declared due and payable in the manner and with the effect provided in the
Indenture.]

[If the Security is an Original Issue Discount Security,—If an Event of Default with respect to
Securities of this series shall occur and be continuing, an amount of principal of the Securities
of this series may be declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to —insert formula for determining the amount. Upon
payment (i) of the amount of principal so declared due and payable and (ii) of interest on any
overdue principal and overdue interest (in each case to the extent that the payment of such
interest shall be legally enforceable), all of the Issuers’ obligations

19

 

in respect of the payment
of the principal of and interest, if any, on the Securities of this series shall terminate.]

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuers [If applicable, insert—and the
Guarantors] and the rights of the Holders of the Securities of each series to be affected under the
Indenture at any time by the Issuers [If applicable, insert—and the Guarantors] and the Trustee
with the consent of the Holders of a majority in aggregate principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of the Securities of
each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Issuers [If applicable, insert—and the Guarantors] with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, regardless of whether
notation of such consent or waiver is made upon this Security.

No reference herein to the Indenture and no provision of this Security or of the Indenture shall
alter or impair the obligation of the Issuers, which is absolute and unconditional, to pay the
principal of (and premium, if any) and interest on this Security at the times, place(s) and rate,
and in the coin or currency, herein prescribed.

[If a Global Security, insert—This Global Security or portion hereof may not be exchanged for
Definitive Securities of this series except in the limited circumstances provided in the Indenture.
The holders of beneficial interests in this Global Security will not be entitled to receive
physical delivery of Definitive Securities except as described in the Indenture and will not be
considered the Holders thereof for any purpose under the Indenture.]

[If a Definitive Security, insert—As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registerable in the Security Register, upon
surrender of this Security for registration of transfer at the office or agency of the Issuers in
[if applicable, insert—any place where the principal of and any premium and interest on this
Security are payable] [if applicable, insert—The City of New York [, or, subject to any laws or
regulations applicable thereto and to the right of the Issuers (limited as provided in the
Indenture) to rescind the designation of any such transfer agent, at the [main] offices of
_______________ in ________________ or at such other offices or agencies as the Issuers may
designate]], duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Issuers and the Security Registrar duly executed by, the Holder hereof or such
Holder’s attorney duly authorized in writing, and thereupon one or more new Securities of this
series and of like tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.]

The Securities of this series are issuable only in registered form without coupons in denominations
of U.S. $ . . . . . . . . and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

No service charge shall be made for any such registration of transfer or exchange, but the Issuers
may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

20

 

Prior to due presentment of this Security for registration of transfer, the Issuers, [If
applicable, insert—any Guarantor,] the Trustee and any agent of an Issuer [If applicable,
insert—, a Guarantor] or the Trustee may treat the Person in whose name this Security is
registered as the owner hereof for all purposes, regardless of whether this Security be overdue,
and none of the Issuers, [If applicable, insert—the Guarantors,] the Trustee nor any such agent
shall be affected by notice to the contrary.

No recourse under or upon any obligation, covenant or agreement of or contained in the Indenture or
of or contained in any Security, [If applicable, insert—, or the Securities Guarantee,] or for any
claim based thereon or otherwise in respect thereof, or because of the creation of any indebtedness
represented thereby, shall be had against any director, officer, employee, incorporator, unitholder
or stockholder, member, manager or partner, as such, past, present or future, of an Issuer [If
applicable, insert—or any Guarantor] or of any successor Person, either directly or through an
Issuer [If applicable, insert—or any Guarantor] or any successor Person, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment, penalty or
otherwise; it being expressly understood that all such liability is hereby expressly waived and
released by the acceptance hereof and as a condition of, and as part of the consideration for, the
Securities and the execution of the Indenture.

The Indenture provides that the Issuers [If applicable, insert—and the Guarantors] (a) will be
discharged from any and all obligations in respect of the Securities (except for certain
obligations described in the Indenture), or (b) need not comply with certain restrictive covenants
of the Indenture, in each case if an Issuer [If applicable, insert—or a Guarantor] deposits, in
trust, with the Trustee money or U.S. Government Obligations (or a combination thereof) which
through the payment of interest thereon and principal thereof in accordance with their terms will
provide money, in an amount sufficient to pay all the principal of and interest on the Securities,
but such money need not be segregated from other funds except to the extent required by law.

Except as otherwise defined herein, all terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

[If a Definitive Security, insert as a separate page—

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

____________________________________________________

(Please Print or Type Name and Address of Assignee)

the within instrument of [____________________] and does hereby irrevocably constitute and appoint
___________________ Attorney to transfer said instrument on the books of the within-named Issuers,
with full power of substitution in the premises.

Please Insert Social Security or Other Identifying Number of Assignee:

	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated: 
	 
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

(Signature)
	 	 

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within instrument in every particular, without alteration or enlargement or any change
whatsoever.]

[If a Security to which Article Fourteen has been made applicable, insert the following Form of
Notation on such Security relating to the Securities Guarantee—

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Each of the Guarantors (which term includes any successor Person in such capacity under the
Indenture), has fully, unconditionally and absolutely guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture, the due and punctual payment of the
principal of, and premium, if any, and interest on the Securities of this series and all other
amounts due and payable under the Indenture and the Securities of this series by the Issuers.

The obligations of the Guarantors to the Holders of Securities of this series and to the Trustee
pursuant to the Securities Guarantee and the Indenture are expressly set forth in Article Fourteen
of the Indenture and reference is hereby made to the Indenture for the precise terms of the
Securities Guarantee.

	 	 	 	 	 	 	 

	 	 	Guarantors:	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF EACH GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	]	 
	 

	 	 	 	 

	 	 

Section 2.4. Global Securities.

     Every Global Security authenticated and delivered 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 A DEPOSITARY OR A NOMINEE THEREOF.
THIS SECURITY
MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN
THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH
TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.

EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN
EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

     If Securities of a series are issuable in whole or in part in the form of one or more Global
Securities, as specified as contemplated by Section 3.1, then, notwithstanding clause (i) of
Section 3.1 and the provisions of Section 3.2, any Global Security shall represent such of the
Outstanding Securities of such series as shall be specified therein and may provide that it shall
represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and
that the aggregate amount of Outstanding Securities represented thereby may from time to time be
reduced or increased, as the case may be, to reflect exchanges. Any endorsement of a Global
Security to reflect the amount, or any reduction or increase in the amount, of Outstanding
Securities represented thereby shall be made in such manner and upon instructions given by such
Person or Persons as shall be specified therein or in an Issuer Order. Subject to the provisions
of Section 3.3, Section 3.4 and Section 3.5, the Trustee shall deliver and redeliver any Global
Security in the manner and upon instructions given by the Person or Persons specified therein or in
the applicable Issuer Order. Any instructions by the Issuers with respect to endorsement or
delivery or redelivery of a Global Security shall be in an Issuer Order.

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     The provisions of the last sentence of Section 3.3 shall apply to any Security represented by
a Global Security if such Security was never issued and sold by the Issuers and the Issuers deliver
to the Trustee the Global Security together with an Issuer Order with regard to the reduction or
increase, as the case may be, in the principal amount of Securities represented thereby, together
with the written statement contemplated by the last sentence of Section 3.3.

Section 2.5. Form of Trustee’s Certificate of Authentication.

     The Trustee’s certificate(s) of authentication shall be in substantially the following form:

This is one of the Securities of the series designated [insert title of applicable
series] referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 

	 

	 	[_________________________], as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Officer
	 	 

ARTICLE THREE

THE SECURITIES

Section 3.1. Amount Unlimited; 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. There shall be established in or pursuant
to a Board Resolution, and set forth, or determined in the manner provided, in an Officer’s
Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of
Securities of any series:

     (a) the title of the Securities of the series (which shall distinguish the Securities
of the series from all other Securities and which may be part of a series of Securities
previously issued);

     (b) any limit upon the aggregate principal amount of the Securities of the series that
may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 3.4, Section 3.5, Section 3.6, Section 9.6 or
Section 11.7 and except for any Securities which, pursuant to Section 3.3, are deemed never
to have been authenticated and delivered hereunder);

     (c) the Person to whom any interest on a Security of the series shall be payable, if
other than the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest;

     (d) the date or dates on which the principal of the Securities of the series is payable
or the method of determination thereof;

     (e) the rate or rates at which the Securities of the series shall bear interest, if
any, or the formula, method or provision pursuant to which such rate or rates are
determined, the date or

23

 

dates from which such interest shall accrue or the method of
determination thereof, the Interest Payment Dates on which such interest shall be payable
and the Regular Record Date for the interest payable on any Interest Payment Date;

     (f) the place or places where, subject to the provisions of Section 10.2, the principal
of and any premium and interest on Securities of the series shall be payable, Securities of
the series may be surrendered for registration of transfer, Securities of the series may be
surrendered for exchange, and notices and demands to or upon the Issuers in respect of the
Securities of the series and this Indenture may be served;

     (g) the period or periods within which, the price or prices at which and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in part, at the
option of the Issuers;

     (h) the obligation, if any, of the Issuers to redeem or purchase 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;

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

     (j) whether payment of principal of and premium, if any, and interest, if any, on the
Securities of the series shall be without deduction for taxes, assessments or governmental
charges paid by Holders of the series;

     (k) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 5.2;

     (l) if the amount of payments of principal of and any premium or interest on the
Securities of the series may be determined with reference to an index, the manner in which
such amounts shall be determined;

     (m) if and as applicable, that the Securities of the series shall be issuable in whole
or in part in the form of one or more Global Securities and, in such case, the Depositary or
Depositaries for such Global Security or Global Securities and any circumstances other than
those set forth in Section 3.5 in which any such Global Security may be transferred to, and
registered and exchanged for Securities registered in the name of, a Person other than the
Depositary for such Global Security or a nominee thereof and in which any such transfer may
be registered;

     (n) any deletions from, modifications of or additions to the Events of Default set
forth in Section 5.1 or the covenants of the Issuers set forth in Article Ten with respect
to the Securities of such series;

     (o) whether and under what circumstances the Issuers will pay additional amounts on the
Securities of the series held by a Person who is not a U.S. Person in respect of any tax,
assessment or governmental charge withheld or deducted and, if so, whether the Issuers will
have the option to redeem the Securities of the series rather than pay such additional
amounts;

24

 

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

     (q) if the Securities of the series are to be convertible into or exchangeable for any
other security or property of the Issuers, including, without limitation, securities of
another Person held by the Issuers or their Affiliates and, if so, the terms thereof;

     (r) if other than as provided in Section 13.2 and Section 13.3, the means of Legal
Defeasance or Covenant Defeasance as may be specified for the Securities of the series;

     (s) if other than the Trustee, the identity of the initial Security Registrar and any
initial Paying Agent;

     (t) whether the Securities of the series will be guaranteed pursuant to the Securities
Guarantee set forth in Article Fourteen, any modifications to the terms of Article Fourteen
applicable to the Securities of such series and the applicability of any other guarantees;
and

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

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 3.3) set forth, or determined in the manner provided, in the Officer’s
Certificate referred to above or in any such indenture supplemental hereto.

     All Securities of any one series need not be issued at the same time and, unless otherwise
provided, a series may be reopened, without the consent of the Holders, for increases in the
aggregate principal amount of such series of Securities and issuances of additional Securities of
such series or for the establishment of additional terms with respect to the Securities of such
series.

     If any of the terms of the series are established by action taken by or pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by an authorized
officer or other authorized person on behalf of each of the Issuers and, if applicable, the
Guarantors and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate
setting forth, or providing the manner for determining, the terms of the series.

     With respect to Securities of a series subject to a Periodic Offering, such Board Resolution
or Officer’s Certificate may provide general terms for Securities of such series and provide either
that the specific terms of particular Securities of such series shall be specified in an Issuer
Order or that such terms shall be determined by the Issuers and, if applicable, the Guarantors or
one or more agents thereof designated in an Officer’s Certificate, in accordance with an Issuer
Order.

Section 3.2. Denominations.

     The Securities of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 3.1. In the absence of any such
provisions with respect to the Securities of any series, the Securities of such series shall be
issuable in denominations of $1,000 and any integral multiple thereof.

25

 

Section 3.3. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of each of the Issuers by its Chairman of the
Board, its Chief Executive Officer, its President, its Chief Financial Officer or any of its Vice
Presidents and need not be attested. The signature of any of these officers on the Securities may
be manual or facsimile. Any notation of Securities Guarantee endorsed on the Securities shall be
executed on behalf of the applicable Guarantor by its Chairman of the Board, its Chief Executive
Officer, its President, its Chief Financial Officer or any of its Vice Presidents and need not be
attested. The signature of any of these officers on any notation of the Securities Guarantee may
be manual or facsimile.

     Securities and any notation of a Securities Guarantee bearing the manual or facsimile
signatures of individuals who were at any time the proper officers of the Company, Finance Corp. or
a Guarantor, as the case may be, shall bind the Company, Finance Corp. or such Guarantor, as the
case may be, notwithstanding that such individuals or any of them have ceased to hold such offices
prior to the authentication and delivery of such Securities or did not hold such offices at the
date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Issuers may deliver Securities of any series executed by the Issuers to the Trustee for
authentication, together with an Issuer Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Issuer Order shall authenticate and deliver such
Securities; provided, however, that in the case of Securities offered in a Periodic Offering, the
Trustee shall authenticate and deliver such Securities from time to time in accordance with such
other procedures (including, without limitation, the receipt by the Trustee of written instructions
from the Issuers) acceptable to the Trustee as may be specified by or pursuant to an Issuer Order
delivered to the Trustee prior to the time of the first authentication of Securities of such
series. If the forms or terms of the Securities of the series have been established in or pursuant
to one or more Board Resolutions as permitted by Section 2.1 and Section 3.1, in authenticating
such Securities, and accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be fully protected in relying on such Board Resolution and shall
be entitled to receive such documents as it may reasonably request. The Trustee shall also be
entitled to receive, and (subject to Section 6.1) shall be fully protected in relying upon, an
Officer’s Certificate pursuant to Section 3.1 and complying with Section 1.3 and an Opinion of
Counsel complying with Section 1.3 stating:

     (a) if the form or forms of such Securities has been established by or pursuant to a
Board Resolution as permitted by Section 2.1, that each such form has been established in
conformity with the provisions of this Indenture;

     (b) if the terms of such Securities have been, or in the case of Securities of a series
offered in a Periodic Offering will be, established by or pursuant to a Board Resolution as
permitted by Section 3.1, that such terms have been, or in the case of Securities of a
series offered in a Periodic Offering will be, established in conformity with the provisions
of this Indenture, subject, in the case of Securities of a series offered in a Periodic
Offering, to any conditions specified in such Opinion of Counsel; and

     (c) that such Securities when authenticated and delivered by the Trustee and issued by
the Issuers in the manner and subject to any conditions and assumptions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of the Issuers
and, if applicable, the Subsidiary Guarantee will constitute valid and legally binding
obligations of the Guarantors, enforceable in accordance with their respective terms,
subject to the following limitations: (i) bankruptcy, insolvency, moratorium,
reorganization, liquidation, fraudulent conveyance or transfer and other similar laws of
general applicability relating to or affecting the

26

 

enforcement of creditors’ rights, or to
general equity principles, (ii) the availability of equitable remedies being subject to the
discretion of the court to which application therefor is made; and (iii) such other usual
and customary matters as shall be specified in such Opinion of Counsel.

The Trustee shall not be required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the
Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the
Trustee.

     Notwithstanding the provisions of Section 3.1 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officer’s
Certificate otherwise required pursuant to Section 3.1 or the Issuer Order and Opinion of
Counsel otherwise required pursuant to such preceding paragraph at or prior to the time of
authentication of each Security of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to be issued.

     With respect to Securities of a series offered in a Periodic Offering, the Trustee may rely,
as to the authorization by the Issuers of any of such Securities, on the form or forms and terms
thereof and the legality, validity, binding effect and enforceability thereof, upon the Opinion of
Counsel and the other documents delivered pursuant to Section 2.1 and Section 3.1 and this Section,
as applicable, in connection with the first authentication of Securities of such series.

     Each Security shall be dated the date of its authentication.

     No Security nor any related Securities Guarantee shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein executed by the Trustee
by manual signature of an authorized officer, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly authenticated and
delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder but never issued
and sold by the Issuers, and the Issuers shall deliver such Security to the Trustee for
cancellation as provided in Section 3.9, for all purposes of this Indenture such Security shall be
deemed never to have been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

Section 3.4. Temporary Securities.

     Pending the preparation of Definitive Securities of any series, the Issuers may execute, and
upon Issuer Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the Definitive Securities in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their execution of such
Securities.

     If temporary Securities of any series are issued, the Issuers will cause Definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of Definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
Definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Issuers in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series the
Issuers shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of Definitive Securities of the same series and

27

 

tenor of authorized denominations.
Until so exchanged the temporary Securities of any series shall in all respects be entitled to the
same benefits under this Indenture as Definitive Securities of such series.

Section 3.5. Registration, Registration of Transfer and Exchange.

     The Issuers shall cause to be kept at the office or agency of the Issuers in a Place of
Payment required by Section 10.2 a register (the register maintained in such office being herein
sometimes referred
to as the “Security Register”) in which, subject to such reasonable regulations as the Issuers
may prescribe, the Issuers shall provide for the registration of Securities and of transfers of
Securities. The Trustee is hereby appointed as the initial “Security Registrar” for the purpose of
registering Securities and transfers of Securities as herein provided, and its Corporate Trust
Office, which, at the date hereof, is located at [____________________], is the initial office or
agency where the Securities Register will be maintained. The Issuers may at any time replace such
Security Registrar, change such office or agency or act as its own Security Registrar. The Issuers
will give prompt written notice to the Trustee of any change of the Security Registrar or of the
location of such office or agency.

     Upon surrender for registration of transfer of any Security of any series at the office or
agency maintained pursuant to Section 10.2 for such purpose, the Issuers and, if applicable, the
Guarantors shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities, with a notation of the Securities
Guarantee, if applicable, executed by the Guarantors, of the same series and tenor, of any
authorized denominations and of a like tenor and aggregate principal amount.

     At the option of the Holder, Securities of any series (except a Global Security) may be
exchanged for other Securities of the same series and tenor, of any authorized denominations and of
a like aggregate principal amount, upon surrender of the Securities to be exchanged at such office
or agency. Whenever any Securities are so surrendered for exchange, the Issuers and, if
applicable, the Guarantors shall execute and the Trustee shall authenticate and deliver, the
Securities, with a notation of the Securities Guarantee, if applicable, executed by the Guarantors,
which the Holder making the exchange is entitled to receive.

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

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

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Issuers may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 3.4, Section 9.6 or Section 11.7 not involving
any transfer.

     The Issuers shall not be required (a) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 11.3 and ending at the close of business on the day of such mailing, or (b) to
register the transfer of or exchange any Security so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part.

28

 

     Notwithstanding any other provisions of this Indenture and except as otherwise specified with
respect to any particular series of Securities as contemplated by Section 3.1, a Global Security
representing all or a portion of the Securities of a series may not be transferred, except as a
whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such
Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any
such nominee to a successor Depositary for such series or a nominee of such successor Depositary.
Every Security
authenticated and delivered upon registration of, transfer of, or in exchange for or in lieu
of, a Global Security shall be a Global Security except as provided in the two paragraphs
immediately following.

     If at any time the Depositary for any Securities of a series represented by one or more Global
Securities notifies the Issuers that it is unwilling or unable to continue as Depositary for such
Securities or if at any time the Depositary for such Securities shall no longer be eligible to
continue as Depositary under Section 3.1 or ceases to be a clearing agency registered under the
Exchange Act, the Issuers shall appoint a successor Depositary with respect to such Securities. If
a successor Depositary for such Securities is not appointed by the Issuers within 90 days after the
Issuer receives such notice or becomes aware of such ineligibility, the Issuers’ election pursuant
to Section 3.1 that such Securities be represented by one or more Global Securities shall no longer
be effective and the Issuers and, if applicable, the Guarantors will execute and the Trustee, upon
receipt of an Issuer Order for the authentication and delivery of Definitive Securities of such
series, will authenticate and deliver, Securities, with a notation of the Securities Guarantee, if
applicable, executed by the Guarantors, of such series in definitive registered form without
coupons, in any authorized denominations, in an aggregate principal amount equal to the principal
amount of the Global Security or Securities representing such Securities in exchange for such
Global Security or Securities registered in the names of such Persons as the Depositary shall
direct.

     If specified by the Issuers pursuant to Section 3.1 with respect to Securities represented by
a Global Security, the Depositary for such Global Security may surrender such Global Security in
exchange in whole or in part for Securities of the same series and tenor in definitive registered
form on such terms as are acceptable to the Issuers , the Trustee and such Depositary. Thereupon,
the Issuers and, if applicable, the Guarantors shall execute, and the Trustee, upon receipt of an
Issuer Order for the authentication and delivery of Securities in definitive registered form, shall
authenticate and deliver, without service charge:

     (i) to the Person specified by such Depositary a new Security or Securities, with a
notation of the Securities Guarantee, if applicable, executed by the Guarantors, of the same
series and tenor, of any authorized denominations as requested by such Person, in an
aggregate principal amount equal to and in exchange for such Person’s beneficial interest in
the Global Security; and

     (ii) to such Depositary a new Global Security, with a notation of the Securities
Guarantee, if applicable, executed by the Guarantors, in a denomination equal to the
difference, if any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of Securities authenticated and delivered pursuant to clause (i)
above.

     Every Person who takes or holds any beneficial interest in a Global Security agrees that:

     (A) the Issuers, the Guarantors (if applicable) and the Trustee may deal with the
Depositary as sole owner of the Global Security and as the authorized representative of such
Person;

     (B) such Person’s rights in the Global Security shall be exercised only through the
Depositary and shall be limited to those established by law and agreement between such
Person and the Depositary and/or direct and indirect participants of the Depositary;

29

 

     (C) the Depositary and its participants make book-entry transfers of beneficial
ownership among, and receive and transmit distributions of the principal of (and premium, if
any) and interest on the Global Securities to, such Persons in accordance with their own
procedures; and

     (D) none of the Issuers, the Guarantors (if applicable), the Trustee, nor any agent of
any of them will have any responsibility or liability for any aspect of the records relating
to or payments made on account of beneficial ownership interests of a Global Security or for
maintaining, supervising or reviewing any records relating to such beneficial ownership
interests.

Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security is surrendered to the Trustee, together with such security or
indemnity as may be required by the Issuers, the Guarantors (if applicable) and the Trustee to save
each of them and any agent of any of them harmless, then, in the absence of notice to the Issuers
or the Trustee that such Security has been acquired by a protected purchaser, the Issuers and, if
applicable, the Guarantors shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security, with a notation of the Securities Guarantee, if applicable, executed by
the Guarantors, 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 Issuers, the Guarantors (if applicable) and the Trustee (a)
evidence to their satisfaction of the destruction, loss or theft of any Security and (b) such
security or indemnity as may be required by them to save each of them and any agent of any of them
harmless, then, in the absence of notice to the Issuers or the Trustee that such Security has been
acquired by a protected purchaser, the Issuers and, if applicable, the Guarantors shall execute and
the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security,
a new Security, with a notation of the Securities Guarantee, if applicable, executed by the
Guarantors, 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 Issuers in their discretion may, instead of issuing a new Security, pay
such Security (without surrender thereof save in the case of a mutilated Security).

     Upon the issuance of any new Security under this Section, the Issuers 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
Issuers and, if applicable, the Guarantors, regardless of whether 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.

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Section 3.7. Payment of Interest; Interest Rights Preserved.

     Except as otherwise provided as contemplated by Section 3.1 with respect to any series of
Securities, interest on any Security that is payable, and is punctually paid or duly provided for,
on any
Interest Payment Date shall be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest.

     Any interest on any Security of any series that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith
cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Issuers, at their election in each case, as
provided in clause (a) or (b) below:

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

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

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

Section 3.8. Persons Deemed Owners.

     Except as otherwise provided as contemplated by Section 3.1 with respect to any series of
Securities, prior to due presentment of a Security for registration of transfer, the Issuers, the
Trustee and, if applicable, the Guarantors and any agent thereof may treat the Person in whose name
such Security is

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registered as the owner of such Security for the purpose of receiving payment of
principal of, and any premium and (subject to Section 3.5 and Section 3.7) any interest on, such
Security and for all other
purposes whatsoever, regardless of whether such Security be overdue, and none of the Issuers,
the Trustee nor, if applicable, the Guarantors nor any agent of any of them shall be affected by
notice to the contrary.

     No holder of any beneficial interest in any Global Security held on its behalf by a Depositary
shall have any rights under this Indenture with respect to such Global Security, and such
Depositary may be treated by the Issuers, the Trustee, and, if applicable, the Guarantors and any
agent thereof as the owner of such Global Security for all purposes whatsoever.

Section 3.9. Cancellation.

     All Securities surrendered for payment, redemption, purchase, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall be promptly canceled by it. The Issuers
may at any time deliver to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Issuers may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Issuers have not issued and sold, and all Securities
so delivered shall be promptly canceled by the Trustee. No Securities shall be authenticated in
lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of in
accordance with its customary practices, and the Trustee shall thereafter deliver to the Issuers a
certificate with respect to such disposition from time to time upon written request.

Section 3.10. Computation of Interest.

     Except as otherwise specified as contemplated by Section 3.1 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.

Section 3.11. CUSIP or CINS Numbers.

     The Issuers in issuing the Securities may use CUSIP or CINS numbers (if then generally in use,
and in addition to the other identification numbers printed on the Securities), and, if so, the
Trustee shall use CUSIP or CINS numbers in notices of redemption as a convenience to Holders;
provided, however, that any such notice may state that no representation is made as to the
correctness of such CUSIP or CINS 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 identification numbers
printed on the Securities, and any such redemption shall not be affected by any defect in or
omission of such CUSIP or CINS numbers.

ARTICLE FOUR

SATISFACTION AND DISCHARGE

Section 4.1. Satisfaction and Discharge of Indenture.

     This Indenture shall cease to be of further effect and will be discharged with respect to the
Securities of any series (except as to any surviving rights of registration of transfer or exchange
of Securities and certain rights of the Trustee, in each case, herein expressly provided for), and
the Trustee, upon Issuer Request and at the expense of the Issuers, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture with respect to such
Securities, when:

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(a) either:

     (i) all such Securities theretofore authenticated and delivered (other than (A)
such Securities which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 3.6, and (B) such Securities for the payment
of which money or U.S. Government Obligations have theretofore been deposited in
trust or segregated and held in trust by the Issuers and thereafter repaid to the
Company or discharged from such trust, as provided in Section 10.3) have been
delivered to the Trustee for cancellation; or

     (ii) all such Securities not theretofore delivered to the Trustee for
cancellation:

     (A) have become due and payable; or

     (B) will become due and payable at their Stated Maturity within one
year; or

     (C) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Issuers,

and the Issuers, in the case of (ii)(A), (B) or (C) above, has deposited or caused
to be deposited with the Trustee as trust funds or U.S. Government Obligations in
trust for such purpose an amount sufficient to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal (and premium, if any) and interest to the date of such
deposit (in the case of Securities which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be, together with instructions
from the Issuers irrevocably directing the Trustee to apply such funds to the
payment thereof at maturity or redemption, as the case may be;

     (b) the Issuers have paid or caused to be paid all other sums payable hereunder by the
Issuers with respect to such Securities; and

     (c) the Issuers have delivered to the Trustee an Officer’s Certificate and an Opinion
of Counsel, which, taken together, state that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture with respect to such Securities
have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture with respect to the Securities of
any series, (x) the obligations of the Issuers to the Trustee under Section 6.7, the obligations of
the Trustee to any Authenticating Agent under Section 6.14 and the right of the Trustee to resign
under Section 6.10 shall survive, and (y) if money shall have been deposited with the Trustee
pursuant to clause (a) of this Section, the obligations of the Issuers and the Trustee under
Section 3.5, Section 3.6, Section 4.2, Section 6.6, Section 10.2, the last paragraph of Section
10.3 and Section 13.6 shall survive.

Section 4.2. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 10.3, all money deposited with the
Trustee pursuant to Section 4.1 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent

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(including either of the Issuers acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and interest for the
payment of which such money has been deposited with the Trustee.

ARTICLE FIVE

REMEDIES

Section 5.1. Events of Default.

     “Event of Default,” wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

     (a) default in the payment of any interest upon any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 days; or

     (b) default in the payment of the principal of (or premium, if any, on) any Security of
that series at its Maturity; or

     (c) default in the performance, or breach, of any covenant set forth in Article Ten in
this Indenture (other than a covenant a default in the performance of which or the breach of
which is elsewhere in this Section specifically dealt with or which has expressly been
included in this Indenture solely for the benefit of series of Securities other than that
series), and continuance of such default or breach for a period of 90 days after there has
been given, by registered or certified mail, to the Issuers by the Trustee or to the Issuers
and the Trustee by the Holders of at least 25% in aggregate 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

     (d) default in the performance, or breach, of any covenant in this Indenture (other
than a covenant in Article Ten or any other covenant a default in the performance of which
or the breach of which is elsewhere in this Section specifically dealt with or which has
expressly been included in this Indenture solely for the benefit of series of Securities
other than that series), and continuance of such default or breach for a period of 180 days
after there has been given, by registered or certified mail, to the Issuers by the Trustee
or to the Issuers and the Trustee by the Holders of at least 25% in aggregate 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) either of the Issuers or any Guarantor pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of any 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, or (iv) makes a general assignment for
the benefit of its creditors; or

     (f) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (i) is for relief against either of the Issuers or any Guarantor in an involuntary
case, (ii) appoints a Custodian of either of the Issuers or any Guarantor or for all or
substantially all of the property of either of the Issuers or any Guarantor, or (iii) orders
the liquidation of either of the

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Issuers or any Guarantor; and the order or decree remains
unstayed and in effect for 60 consecutive days; or

     (g)
default in the deposit of any sinking fund payment when due; or

     (h) the failure of any Securities Guarantee required with respect to Securities of that
series to be in full force and effect, except as provided in this Indenture or the terms of
such Securities; or

     (i) any other Event of Default provided with respect to Securities of that series in
accordance with Section 3.1.

Section 5.2. 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, then in every such case the Trustee or the Holders of 25% in aggregate principal
amount of the Outstanding Securities of that series may declare the principal amount (or, if the
Securities of that series are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms of that series) and all accrued and unpaid interest of all
of the Securities of that series to be due and payable immediately, by a notice in writing to the
Issuers (and to the Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable. Notwithstanding the
foregoing, if an Event of Default specified in Section 5.1(e) or Section 5.1(f) occurs, the
Securities of any series at the time Outstanding shall be due and payable immediately without
further action or notice.

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

     (a) the Issuers or, if applicable, one or more of the Guarantors has paid or deposited
with the Trustee a sum sufficient to pay:

     (i) all overdue interest on all Securities of that series;

     (ii) the principal of (and premium, if any, on) any Securities of that series
which have become due otherwise than by such declaration of acceleration and any
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
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 5.13.

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

Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Issuers covenant that if:

     (a) default is made in the payment of any installment of interest on any Security when
such interest becomes due and payable and such default continues for a period of 30 days; or

     (b) default is made in the payment of the principal of (or premium, if any, on) any
Security at the Maturity thereof,

the Issuers 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 any premium
and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and any premium and on 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 Issuers fail 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 Issuers or, if applicable, the Guarantors or any other obligor upon
such Securities and collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Issuers or, if applicable, the Guarantors or any other obligor upon
such Securities, wherever situated.

     If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

Section 5.4. 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
either of the Issuers or, if applicable, any Guarantor or any other obligor upon the Securities,
its property or its 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 Issuers or, if applicable, the Guarantors
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 premium, if any)
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

36

 

     (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, if 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 6.7.

     No provision of this Indenture 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, compromise,
arrangement, adjustment or composition affecting the Securities or, if applicable, the Securities
Guarantee 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; provided, however, that the Trustee may, on behalf of
the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member
of a creditors’ or other similar committee.

Section 5.5. 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.

Section 5.6. Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article Five 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 any premium 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 6.7;

     SECOND: To the payment of the amounts then due and unpaid for principal of and any
premium 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 any premium and interest,
respectively; and

          THIRD: The balance, if any, to the Issuers.

Section 5.7. 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 (including, if applicable, the Securities
Guarantee), 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;

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     (b) the Holders of not less than 25% in aggregate 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
satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in
compliance with such request;

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

     (e) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in aggregate 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 whatsoever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain
priority or preference over any other of such Holders or to enforce any right under this Indenture,
except in the manner herein provided and for the equal and ratable benefit of all such Holders.

Section 5.8. Unconditional Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium and interest on such Security on the Stated Maturity or Maturities expressed in such
Security (or, in the case of redemption or offer by the Issuers to purchase the Securities as
required by this Indenture, on the Redemption Date or purchase date, as applicable) and to
institute suit for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

Section 5.9. 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 Issuers, the Guarantors, 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 5.10. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 3.6, 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.

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Section 5.11. Delay or Omission Not Waiver.

     To the fullest extent permitted by applicable law, 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 Five 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 5.12. Control by Holders.

     The Holders of a majority in aggregate 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, however, that:

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

     (b) the Trustee may take any other action deemed proper by the Trustee that 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 determine that the
direction would expose the Trustee to personal liability.

Section 5.13. Waiver of Past Defaults.

     By written notice to the Issuers and the Trustee, the Holders of a majority in aggregate
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) a continuing default in the payment of the principal of or any premium or interest
on any Security of such series; or

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

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

Section 5.14. Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Security by such Holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in
any suit for the enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party
litigant, other than the Trustee, 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

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provisions of this Section 5.14 shall
not apply to any suit instituted by the Issuers, 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 aggregate
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 premium, if any) or interest on
any Security on or after the Stated Maturity or Maturities expressed in such Security (or, in the
case of redemption or offer by the Issuers to purchase the Securities as required by this
Indenture, on or after the Redemption Date or purchase date, as applicable).

Section 5.15. Waiver of Stay, Extension or Usury Laws.

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

ARTICLE SIX

THE TRUSTEE

Section 6.1. Certain Duties and Responsibilities.

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

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

     (ii) in the absence of bad faith on its part, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but in the case of any such
certificates or opinions which by any provision hereof are specifically required to
be furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether they conform to the requirements of this Indenture.

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

     (c) No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or its own bad
faith or willful misconduct, except that:

     (i) this Subsection shall not be construed to limit the effect of Subsection
(a) of this Section;

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

     (iii) the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders of a majority in aggregate principal amount of the Outstanding Securities of
any series, given pursuant to Section 5.12, 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; and

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

     (d) Regardless of whether therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording protection to
the Trustee shall be subject to the provisions of this Section.

Section 6.2. Notice of Defaults.

     Within 90 days after the occurrence of any Default hereunder with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders of Securities of such series, as
their names and addresses appear in the Security Register, notice of such Default hereunder known
to the Trustee, unless such Default shall have been cured or waived; provided, however, that,
except in the case of a Default in the payment of the principal of or any premium or interest on
any Security of such series or in the payment of any sinking fund installment with respect to
Securities of such series, the Trustee may withhold from Holders of Securities notice of any
continuing Default or Event of Default if a Responsible Officer of the Trustee in good faith
determines that the withholding of such notice is in the interest of the Holders of Securities of
such series; and, provided, further, that in the case of any Default of the character specified in
Section 5.1(c) with respect to Securities of such series, no such notice to Holders shall be given
until at least 60 days after the occurrence thereof and that in the case of any Default of the
character specified in Section 5.1(d) with respect to Securities of such series, no such notice to
Holders shall be given until at least 90 days after the occurrence thereof.

Section 6.3. Certain Rights of Trustee.

     Subject to the provisions of Section 6.1:

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

     (b) any request or direction of the Issuers or a Guarantor mentioned herein shall be
sufficiently evidenced by an Issuer Request or Issuer Order and any resolution of the Board
of Directors of the Issuers or a Guarantor may be sufficiently evidenced by a Board
Resolution;

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

     (d) 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 from liability in respect
of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon;

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

     (f) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Issuers, personally or by agent or attorney;

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

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

     (i) the Trustee shall be entitled to the rights and protections afforded to the Trustee
pursuant to this Article Six in acting as a Paying Agent or Security Registrar hereunder;

     (j) the Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a Default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the Securities and this
Indenture; and

     (k) anything in this Indenture notwithstanding, in no event shall the Trustee be liable
for any special, indirect, punitive, incidental or consequential loss or damage of any kind
whatsoever (including but not limited to loss of profit), even if the Issuers have been
advised as to the likelihood of such loss or damage and regardless of the form of action.

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Section 6.4. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities and the notations of the Subsidiary
Guarantee, except the Trustee’s certificates of authentication, shall be taken as the statements of
the Issuers or, if applicable, the Guarantors, and neither the Trustee nor any Authenticating Agent
assumes any responsibility for their correctness. Neither the Trustee nor any Authenticating Agent
makes any representations as to the validity or sufficiency of this Indenture or of the Securities
or the Subsidiary Guarantee, if any. The Trustee or any Authenticating Agent shall not be
accountable for the use or application by the Issuers of Securities or the proceeds thereof.

Section 6.5. May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of either of the Issuers or, if applicable, any Guarantor, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections 310(b) and 311 of
the Trust Indenture Act and Section 6.8, Section 6.9 and Section 6.13, may otherwise deal with the
Issuers or, if applicable, the Guarantors with the same rights it would have if it were not
Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent.

Section 6.6. Money Held in Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Issuers or, if applicable,
one or more of the Guarantors.

Section 6.7. Compensation and Reimbursement.

     The Issuers agree:

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

     (b) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and

     (c) to indemnify each of the Trustee and its officers, directors, agents and employees
for, and to hold it and them harmless against, any loss, liability or expense incurred
without negligence, bad faith or willful misconduct on its or their part, arising out of or
in connection with the acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending itself or themselves against any claim or
liability in connection with the exercise or performance of any of its or their powers or
duties hereunder.

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

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     Without limiting any rights available to the Trustee under applicable law, when the Trustee
incurs expenses or renders services in connection with an Event of Default specified in Section
5.1(e) or Section 5.1(f), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services of the Trustee are intended to constitute expenses
of administration under any applicable Bankruptcy Law.

     The provisions of this Section 6.7 shall survive the resignation or removal of the Trustee and
the termination or satisfaction and discharge of this Indenture and the Legal Defeasance of the
Securities.

Section 6.8. Disqualification; Conflicting Interests.

     Reference is made to Section 310(b) of the Trust Indenture Act. There shall be excluded from
the operation of Section 310(b)(1) of the Trust Indenture Act this Indenture with respect to the
Securities of more than one series.

Section 6.9. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States of America, any State thereof or the District of
Columbia, authorized under such laws to exercise corporate trust powers, having a combined capital
and surplus required by the Trust Indenture Act, subject to supervision or examination by Federal
or State authority. If such corporation publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. The
Trustee shall not be an obligor upon the Securities or an Affiliate thereof. If at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in this Article Six.

Section 6.10. Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 6.11.

     (b) The Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Issuers. If the instrument of acceptance of
appointment by a successor Trustee required by Section 6.11 shall not have been delivered to
the Trustee within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

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

     (d) If at any time:

     (i) the Trustee shall fail to comply with Section 310(b) of the Trust Indenture
Act after written request therefor by the Issuers or by any Holder who has been a
bona fide Holder of a Security for at least six months; or

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     (ii) the Trustee shall cease to be eligible under Section 6.9 and shall fail to
resign after written request therefor by the Issuers or by any such Holder; or

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

then, in any such case, (A) the Issuers, by their respective Board Resolutions, may remove
the Trustee with respect to all Securities, or (B) subject to Section 5.14, any Holder who
has been a bona fide Holder of a Security for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a successor
Trustee or Trustees.

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the Securities
of one or more series, the Issuers, by their respective Board Resolutions, shall promptly
appoint a successor Trustee or Trustees with respect to the Securities of that or those
series (it being understood that any such successor Trustee may be appointed with respect to
the Securities of one or more or all of such series and that at any time there shall be only
one Trustee with respect to the Securities of any particular series), and the Issuers and
the successor Trustee shall comply with the applicable requirements of Section 6.11. If,
within one year after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee with respect to the Securities of any series shall be appointed
by Act of the Holders of a majority in aggregate principal amount of the Outstanding
Securities of such series delivered to the Issuers and the retiring Trustee, the successor
Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of Section 6.11, become the successor Trustee with respect
to the Securities of such series and to that extent supersede the successor Trustee
appointed by the Issuers. If no successor Trustee with respect to the Securities of any
series shall have been so appointed by the Issuers or the Holders and accepted appointment
in the manner required by Section 6.11, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

     (f) The Issuers shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a successor Trustee
with respect to the Securities of any series to all Holders of Securities of such series in
the manner provided in Section 1.7. Each notice shall include the name of the successor
Trustee with respect to the Securities of such series and the address of its Corporate Trust
Office.

Section 6.11. Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, the successor Trustee so appointed shall execute, acknowledge and deliver to the
Issuers, the Guarantors (if applicable) and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring Trustee shall
become effective and such successor Trustee, without any further act, deed or conveyance,
shall become vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of
an Issuer, any Guarantor (if applicable) or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument transferring
to such successor Trustee

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all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property and money
held by such retiring Trustee hereunder, subject nevertheless to its lien under Section 6.7.

     (b) In case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Issuers, the Guarantors (if applicable),
the retiring Trustee and each successor Trustee with respect to the Securities of one or
more series shall execute and deliver an indenture supplemental hereto wherein each
successor Trustee shall accept such appointment and which (i) shall contain such provisions
as shall be necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (ii) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series as to which the retiring Trustee is not retiring
shall continue to be vested in the retiring Trustee, and (iii) shall add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees
of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other such
Trustee; and upon the execution and delivery of such supplemental indenture the resignation
or removal of the retiring Trustee shall become effective to the extent provided therein and
each such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such successor Trustee
relates; but, on request of an Issuer, any Guarantor (if applicable) or any successor
Trustee, such retiring Trustee, upon payment of its charges, shall execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee with respect to the Securities of the series to which the appointment of
such successor relates and shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder with respect to the
Securities of such series, subject nevertheless to its lien under Section 6.7.

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

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

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

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article Six, without the execution
or filing of any paper or any further act on the part of any of the parties hereto. As soon as
practicable, the successor Trustee shall mail a notice of its succession to the Issuers and the
Holders of the Securities then Outstanding. In case

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any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and deliver the
Securities so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

Section 6.13. Preferential Collection of Claims Against Issuers.

     Reference is made to Section 311 of the Trust Indenture Act. For purposes of Section 311(b)
of the Trust Indenture Act:

     (a) the term “cash transaction” means any transaction in which full payment for goods
or securities sold is made within seven days after delivery of the goods or securities in
currency or in checks or other orders drawn upon banks or bankers and payable upon demand;

     (b) the term “self-liquidating paper” means any draft, bill of exchange, acceptance or
obligation which is made, drawn, negotiated or incurred by an Issuer or, if applicable, any
Guarantor for the purpose of financing the purchase, processing, manufacturing, shipment,
storage or sale of goods, wares or merchandise and which is secured by documents evidencing
title to, possession of, or a lien upon, the goods, wares or merchandise or the receivables
or proceeds arising from the sale of the goods, wares or merchandise previously constituting
the security, provided the security is received by the Trustee simultaneously with the
creation of the creditor relationship with such Issuer or, if applicable, such Guarantor
arising from the making, drawing, negotiating or incurring of the draft, bill of exchange,
acceptance or obligation.

Section 6.14. Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 3.6, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Issuers and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia, authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000
and subject to supervision or examination by Federal or State authority. If such Authenticating
Agent publishes reports of condition at least annually, pursuant to law or to the requirements of
said supervising or examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all of the corporate agency or corporate trust business of an Authenticating Agent,
shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without

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the execution or filing of any paper or any further act on the part of
the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Issuers and, if applicable, the Guarantors. The Trustee for any series of Securities
may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to
such Authenticating Agent and to the Issuers and, if applicable, the Guarantors. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be qualified and eligible in accordance with the provisions of this Section,
the Trustee for such series may appoint a successor Authenticating Agent which shall be acceptable
to the Issuers and, if applicable, the Guarantors and shall mail written notice of such appointment
by first-class mail, postage prepaid, to all Holders of Securities of the series with respect to
which such Authenticating Agent will serve, as their names and addresses appear in the Security
Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall
become vested with all the rights, powers and duties of its predecessor hereunder, with like effect
as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

     Except with respect to an Authenticating Agent appointed at the request of the Issuers or, if
applicable, the Guarantors, the Trustee agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section 6.14, and the Trustee shall be
entitled to be reimbursed by the Issuers or, if applicable, the Guarantors for such payments,
subject to the provisions of Section 6.7.

     If an appointment with respect to one or more series is made pursuant to this Section 6.14,
the Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate
of authentication, an alternate certificate of authentication in the following form:

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

	 	 	 	 	 	 	 

	 

	 	[___________________], as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

As Authenticating Agent
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Officer
	 	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 7.1. Issuers to Furnish Trustee Names and Addresses of Holders.

     The Issuers will furnish or cause to be furnished to the Trustee:

     (a) semi-annually, not more than 5 days after each Regular Record Date for a series of
Securities, a list for such series of Securities, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders of Securities of such series as of such
Regular Record Date; and

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

     provided, however, that if and so long as the Trustee shall be the Security Registrar, no such
list need be furnished with respect to such series of Securities.

Section 7.2. Preservation of Information; Communications to Holders.

     (a) The Trustee shall preserve, with respect to each series of Securities, in as
current a form as is reasonably practicable, the names and addresses of Holders contained in
the most recent list furnished to the Trustee as provided in Section 7.1 or the names and
addresses of Holders received by the Trustee in its capacity as Security Registrar. The
Trustee may destroy any list furnished to it as provided in Section 7.1 upon receipt of a
new list so furnished.

     (b) If three or more Holders (herein referred to as “applicants”) apply in writing to
the Trustee, and furnish to the Trustee reasonable proof that each such applicant has owned
a Security for a period of at least six months preceding the date of such application, and
such application states that the applicants desire to communicate with other Holders with
respect to their rights under this Indenture or under the Securities and is accompanied by a
copy of the form of proxy or other communication which such applicants propose to transmit,
then the Trustee shall, within five business days after the receipt of such application, at
its election, either:

     (i) afford such applicants access to the information preserved at the time by
the Trustee in accordance with Section 7.2(a); or

     (ii) inform such applicants as to the approximate number of Holders whose names
and addresses appear in the information preserved at the time by the Trustee in
accordance with Section 7.2(a), and as to the approximate cost of mailing to such
Holders the form of proxy or other communication, if any, specified in such
application.

     If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants, mail to
each Holder whose name and address appear in the information preserved at the time
by the Trustee in accordance with Section 7.2(a) a copy of the form of proxy or
other communication
which is specified in such request, with reasonable promptness after a tender to the
Trustee of the material to be mailed and of payment, or provision for the payment,
of the reasonable expenses of mailing, unless within five days after such tender the
Trustee shall mail to such applicants and file with the SEC, together with a copy of
the material to be mailed, a written statement to the effect that, in the opinion of
the Trustee, such mailing would be contrary to the best interest of the Holders or
would be in violation of applicable law. Such written statement shall specify the
basis of such opinion. If the SEC, after opportunity for a hearing upon the
objections specified in the written statement so filed, shall enter an order
refusing to sustain any of such objections or if, after the entry of an order
sustaining one or more of such objections, the SEC shall find, after notice and
opportunity for hearing, that all the objections so sustained have been met and
shall enter an order so declaring, the Trustee shall mail copies of such material to
all such Holders with reasonable promptness after the entry of such order and the
renewal of such tender; otherwise the Trustee shall be relieved of any obligation or
duty to such applicants respecting their application.

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     (c) Every Holder of Securities, by receiving and holding the same, agrees with the
Issuers, the Guarantors (if applicable) and the Trustee that none of the Issuers, the
Guarantors (if applicable) nor the Trustee nor any agent of any of them shall be held
accountable by reason of the disclosure of any such information as to the names and
addresses of the Holders in accordance with Section 7.2(b), regardless of the source from
which such information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under Section 7.2(b).

Section 7.3. Reports by Trustee.

     Any Trustee’s report required pursuant to Section 313(a) of the Trust Indenture Act shall be
dated as of May 15, and shall be transmitted within 60 days after May 15 of each year (but in all
events at intervals of not more than 12 months), commencing with the year 20__, by mail to all
Holders, as their names and addresses appear in the Security Register. A copy of each such report
shall, at the time of such transmission to Holders, be filed by the Trustee with each stock
exchange upon which any Securities are listed, and with the SEC. The Issuers will notify the
Trustee when any Securities are listed on any stock exchange.

Section 7.4. Reports by Company.

     The Company shall:

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

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

     (c) transmit by mail to all Holders, as their names and addresses appear in the
Security Register, within 30 days after the filing thereof with the Trustee, such summaries
of any information, documents and reports required to be filed by the Company pursuant to
clauses (a) and (b) of this Section as may be required by rules and regulations prescribed
from time to time by the SEC.

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ARTICLE EIGHT

CONSOLIDATION, AMALGAMATION, MERGER AND SALE

Section 8.1. Issuers May Consolidate, Etc., Only on Certain Terms.

     Neither of the Issuers shall convert into, or consolidate, amalgamate or merge with or into
any other Person or sell, assign, transfer, convey, lease or otherwise dispose of all or
substantially all of its properties and assets on a consolidated basis to any other Person unless:

     (a) either: (i) such Issuer is the surviving Person; or (ii) the Person formed by or
surviving any such consolidation, amalgamation or merger or resulting from such conversion
(if other than such Issuer) or to which such sale, assignment, transfer, conveyance, lease
or other disposition has been made is a corporation, limited liability company or limited
partnership, in the case of the Company (and a corporation, in the case of Finance Corp. for
so long as the Company is not a corporation), organized or existing under the laws of the
United States, any State thereof or the District of Columbia;

     (b) the Person formed by or surviving any such conversion, consolidation, amalgamation
or merger (if other than such Issuer) or the Person to which such sale, assignment,
transfer, conveyance, lease or other disposition has been made assumes by an indenture
supplemental hereto, executed and delivered to the Trustee, the due and punctual payment of
the principal of (and premium, if any) and interest on all the Securities and the
performance of every covenant of this Indenture on the part of such Issuer to be performed
or observed;

     (c) immediately after giving effect to such transaction, no Event of Default, and no
event which, after notice or lapse of time or both, would become an Event of Default, shall
have occurred and be continuing; and

     (d) the Issuers have delivered to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that such consolidation, amalgamation, merger, conveyance, sale,
assignment, transfer, lease or other disposition and such supplemental indenture comply with
this Article Eight and that all conditions precedent herein provided for relating to such
transaction have been complied with.

Section 8.2. Successor Substituted.

     Upon any consolidation, amalgamation or merger of an Issuer with or into any other Person or
any sale, assignment, transfer, conveyance, lease or other disposition of all or substantially all
of its properties and assets and, if applicable, the Guarantors on a consolidated basis in
accordance with Section 8.1, the successor or resulting Person formed by or resulting upon such
consolidation, amalgamation or merger (if other than such Issuer) or to which such sale,
assignment, transfer, conveyance, lease or other disposition is made shall succeed to, and be
substituted for, and may exercise every right and power of, such Issuer under this Indenture with
the same effect as if such successor Person had been named herein as the respective Issuer party to
this Indenture, and thereafter, except in the case of a lease, the predecessor entity and, if
applicable, each of the Guarantors shall be relieved of all obligations and covenants under this
Indenture and the Securities.

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ARTICLE NINE

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.1. Without Consent of Holders.

     The Issuers, the Guarantors, if any, and the Trustee may amend or supplement this Indenture,
the Securities Guarantee or the Securities without the consent of any holder of a Security:

     (a) to cure any ambiguity or defect or to correct or supplement any provision herein
that may be inconsistent with any other provision herein; or

     (b) to evidence the succession of another Person to either of the Issuers and the
assumption by any such successor of the covenants of such predecessor Issuer herein and, to
the extent applicable, of the Securities; or

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

     (d) to add a Securities Guarantee and cause any Person to become a Guarantor, and/or to
evidence the succession of another Person to a Guarantor and the assumption by any such
successor of the Securities Guarantee of such Guarantor herein and, to the extent
applicable, endorsed upon any Securities of any series; or

     (e) to secure the Securities of any series; or

     (f) to add to the covenants of the Issuers such further covenants, restrictions,
conditions or provisions as the Issuers shall consider to be appropriate for the benefit of
the Holders of all or any series of Securities (and if such covenants, restrictions,
conditions or provisions are to be for the benefit of less than all series of Securities,
stating that such covenants are expressly being included solely for the benefit of such
series), to make the occurrence, or the occurrence and continuance, of a Default in any such
additional covenants, restrictions, conditions or provisions an Event of Default permitting
the enforcement of all or any of the several remedies provided in
this Indenture as herein set forth, or to surrender any right or power herein conferred
upon the Issuers; provided, that in respect of any such additional covenant, restriction,
condition or provision such amendment or supplemental indenture may provide for a particular
period of grace after default (which period may be shorter or longer than that allowed in
the case of other defaults), may provide for an immediate enforcement upon such an Event of
Default, may limit the remedies available to the Trustee upon such an Event of Default or
may limit the right of the Holders of a majority in aggregate principal amount of the
Securities of such series to waive such an Event of Default; or

     (g) to make any change to any provision of this Indenture that does not adversely
affect the rights or interests of any Holder of Securities; or

     (h) to provide for the issuance of additional Securities in accordance with the
provisions set forth in this Indenture; or

     (i) to add any additional Defaults or Events of Default in respect of all or any series
of Securities; or

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     (j) to add to, change or eliminate any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the issuance of Securities in bearer
form, registrable or not registrable as to principal, and with or without interest coupons;
or

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

     (l) to establish the form or terms of Securities of any series as permitted by Section
2.1 and Section 3.1, including to reopen any series of any Securities as permitted under
Section 3.1; or

     (m) 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, pursuant to the
requirements of Section 6.11(b); or

     (n) to conform the text of this Indenture (and/or any supplemental indenture) or any
Securities issued thereunder to any provision of a description of such text or Securities
appearing in a prospectus, prospectus supplement, offering memorandum or offering circular
relating to the sale thereof to the extent that such provision was intended by the Issuers
to be a verbatim recitation of a provision of this Indenture (and/or any supplemental
indenture) or any Securities issued thereunder, with such intention being evidenced by an
Officer’s Certificate; or

     (o) to modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under the Trust Indenture
Act or under any similar federal statute subsequently enacted, and to add to this Indenture
such other provisions as may be expressly required under the Trust Indenture Act.

Section 9.2. With Consent of Holders.

     The Issuers, the Guarantors, if any, and the Trustee may amend or supplement this Indenture,
the Securities Guarantee and the Securities with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of each series of Securities affected by
such amendment or supplemental indenture, with each such series voting as a separate class
(including, without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Securities) and, subject to Section 5.8 and Section 5.13 hereof, any
existing Default or Event of Default or compliance with any provision of this Indenture, the
Securities Guarantee or the Securities may be waived with respect to each series of Securities with
the consent of the Holders of a majority in aggregate principal amount of the Outstanding
Securities of such series voting as a separate class (including consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Securities).

     It is not necessary for the consent of the Holders of Securities under this Section 9.2 to
approve the particular form of any proposed amendment, supplement or waiver, but it is sufficient
if such consent approves the substance of the proposed amendment, supplement or waiver.

     After an amendment, supplement or waiver under this Section 9.2 becomes effective, the Issuers
will mail to the Holders of Securities affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Issuers to mail such notice, or any defect therein, will
not, however, in any way impair or affect the validity of any such amendment, supplemental
indenture or

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waiver. Notwithstanding anything contained herein to the contrary, without the
consent of each Holder affected, an amendment, supplement or waiver under this Section 9.2 may not
(with respect to any Securities held by a non-consenting Holder):

     (a) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 5.2, or change the
coin or currency in which any Security or any premium or the interest thereon is payable, or
impair the right to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date); or

     (b) reduce the percentage in aggregate principal amount of the Outstanding Securities
of any series, the consent of the Holders of which is required for any such amendment or
supplemental indenture, or the consent of the Holders of which is required for any waiver of
compliance with certain provisions of this Indenture or certain defaults hereunder and their
consequences provided for in this Indenture; or

     (c) modify any of the provisions of Section 5.8 or Section 5.13; or

     (d) waive a redemption payment with respect to any Security; provided, however, that
any purchase or repurchase of Securities shall not be deemed a redemption of the Securities;
or

     (e) release any Guarantor from any of its obligations under its Securities Guarantee or
this Indenture, except in accordance with the terms of this Indenture (as amended or
supplemented); or

     (f) make any change in the foregoing amendment and waiver provisions, except to
increase any percentage provided for therein or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby.

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

Section 9.3. Execution of Amendments and Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any amendment or supplemental
indenture permitted by this Article or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of such amendment or
supplemental indenture is authorized or permitted by this Indenture.

     Upon the request of the Issuers accompanied by respective Board Resolutions authorizing the
execution of any such amendment or supplemental indenture, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the Holders of Securities as aforesaid, and
upon receipt by the Trustee of the documents described in Section 6.3 hereof, the Trustee will join
with the

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Issuers and the Guarantors in the execution of such amendment or supplemental indenture
unless such amendment or supplemental indenture directly affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but will not be obligated to, enter into such amendment or supplemental Indenture.

Section 9.4. Effect of Amendments and Supplemental Indentures.

     Upon the execution of any amendment or supplemental indenture under this Article Nine, this
Indenture shall be modified in accordance therewith, and such amendment or supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.

Section 9.5. Conformity with Trust Indenture Act.

     Every amendment or supplemental indenture executed pursuant to this Article Nine shall conform
to the requirements of the Trust Indenture Act as then in effect.

Section 9.6. Reference in Securities to Amendments or Supplemental Indentures.

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

ARTICLE TEN

COVENANTS

Section 10.1. Payment of Principal, Premium and Interest.

     The Issuers, for the benefit of each series of Securities, will duly and punctually pay the
principal of and any premium and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.

Section 10.2. Maintenance of Office or Agency.

     The Issuers will maintain in the United States an office or agency (which may be an office of
the Trustee or Security Registrar or agent of the Trustee or Security Registrar) where Securities
of each series may be presented or surrendered for payment and surrendered for registration of
transfer or exchange and where notices and demands to or upon the Issuers in respect of the
Securities of that series and this Indenture may be served. The Issuers will give prompt written
notice to the Trustee of the location, and any change in the location, of such office or agency.
If at any time the Issuers shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee.

     The Issuers may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may

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from time to time rescind such designations. The Issuers will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency.

     Except as otherwise specified with respect to a series of Securities as contemplated by
Section 3.1, the Issuers hereby initially designates the Corporate Trust Office of the Trustee as
the Issuers’ office or agency for each such purpose for each series of Securities. The Trustee
shall initially serve as Paying Agent. In the event the Issuers make any payment in any currency
in which the Trustee is unable to pay, and notwithstanding anything herein to the contrary, the
Issuers will appoint a Paying Agent other than the Trustee to make such payment and the Trustee
will have no obligations with respect to such payment and will incur no liability with respect to
the failure by the Issuers or such other Paying Agent to make, or cause to be made, such payment.

Section 10.3. Money for Securities Payments to Be Held in Trust.

     If the Issuers shall at any time act as their own Paying Agent, with respect to any series of
Securities, it will, on or before each due date of the principal of or any premium or interest on
any of the Securities of that series, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal and any premium and interest so becoming due
until such sums shall be
paid to such Persons or otherwise disposed of as herein provided and will promptly notify the
Trustee of its action or failure so to act.

     Whenever the Issuers shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of or any premium or interest on any Securities of
that series, deposit with a Paying Agent a sum sufficient to pay the principal and any premium or
interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest, and (unless such Paying Agent is the Trustee) the Issuers will
promptly notify the Trustee of its action or failure so to act. For purposes of this Section 10.3,
should a due date for principal of or any premium or interest on, or sinking fund payment with
respect to any series of Securities not be on a Business Day, such payment shall be due on the next
Business Day without any interest for the period from the due date until such Business Day.

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

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

     (b) give the Trustee notice of any Default by the Issuers (or any other obligor upon
the Securities of that series) in the making of any payment of principal or any premium or
interest on the Securities of that series; and

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

     The Issuers and, if applicable, the Guarantors may at any time, for the purpose of obtaining
the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Issuer Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the Issuers or
such Paying
Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were
held by the Issuers or

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such Paying Agent; and, upon such payment by any Paying Agent to the
Trustee, such Paying Agent shall be released from all further liability with respect to such money.

     Subject to any applicable escheat or abandoned property laws, any money deposited with the
Trustee or any Paying Agent, or then held by the Issuers, in trust for the payment of the principal
of or any premium or interest on any Security of any series and remaining unclaimed for one year
after such principal, premium or interest has become due and payable shall be paid to the Company
on Issuer Request, or (if then held by the Issuers) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Issuers as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Issuers cause to be published once, in The New York Times and
The Wall Street Journal (national edition), notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid to the Company.

Section 10.4. Existence.

     Subject to Article Eight, the Issuers and, if any Securities of a series to which Article
Fourteen has been made applicable are Outstanding, each Guarantor will do or cause to be done all
things necessary to preserve and keep in full force and effect its existence, rights (charter and
statutory) and franchises; provided, however, that each Issuer and, if applicable, each Guarantor
shall not be required to preserve any such right or franchise if its Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct of the business of
such Issuer or such Guarantor, as the case may be.

Section 10.5. Statement by Officers as to Default.

     Annually, within 120 days after the close of each fiscal year beginning with the first fiscal
year during which one or more series of Securities are Outstanding, each of the Issuers and, if any
Securities of a series to which Article Fourteen has been made applicable are Outstanding, each
Guarantor will deliver to the Trustee a brief certificate (which need not include the statements
set forth in Section 1.3) from the principal executive officer, principal financial officer or
principal accounting officer of such Issuer and, if applicable, such Guarantor, stating that a
review of the activities of the Issuers during such year and of performance under this Indenture
has been made, and as to his or her knowledge of such Issuer’s or such Guarantor’s, as the case
may be, compliance (without regard to any period of grace or requirement of notice provided herein)
with all conditions and covenants under this Indenture and, if such Issuer or such Guarantor, as
the case may be, shall be in Default, specifying all such Defaults and the nature and status
thereof of which such officer has knowledge.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

Section 11.1. Applicability of Article.

     Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 3.1
for Securities of any series) in accordance with this Article Eleven.

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Section 11.2. Election to Redeem; Notice to Trustee.

     The election of the Issuers to redeem any Securities shall be evidenced by respective Board
Resolutions. In case of any redemption at the election of the Issuers of less than all the
Securities of any series, the Issuers shall, at least 15 days prior to the last date for the giving
of notice of such redemption (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee of such Redemption Date and of the principal amount of Securities of such series to be
redeemed and, if applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities (a) prior to the expiration of any restriction on such redemption provided
in the terms of such Securities or elsewhere in this Indenture or (b) pursuant to an election of
the Issuers that is subject to a condition specified in the terms of the
Securities of the series to be redeemed, the Issuers shall furnish the Trustee with an
Officer’s Certificate evidencing compliance with such restriction or condition.

Section 11.3. Selection by Trustee of Securities to Be Redeemed.

     If less than all the Securities of any series are to be redeemed (unless all of the Securities
of such series and of a specified tenor are to be redeemed), the particular Securities to be
redeemed shall be selected not more than 45 days prior to the Redemption Date by the Trustee, from
the Outstanding Securities of such series not previously called for redemption, by such method as
the Trustee shall deem fair and appropriate and which may provide for the selection for redemption
of portions (equal to the minimum authorized denomination for Securities of that series or any
integral multiple thereof) of the principal amount of Securities of such series of a denomination
larger than the minimum authorized denomination for Securities of that series.

     The Trustee shall promptly notify the Issuers in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed. If the Securities of any series to be redeemed consist of Securities
having different dates on which the principal is payable or different rates of interest, or
different methods by which interest may be determined or have any other different tenor or terms,
then the Issuers may, by written notice to the Trustee, direct that the Securities of such series
to be redeemed shall be selected from among the groups of such Securities having specified tenor or
terms and the Trustee shall thereafter select the particular Securities to be redeemed in the
manner set forth in the preceding paragraph from among the group of such Securities so specified.

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

Section 11.4. Notice of Redemption.

     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at such Holder’s address appearing in the Security Register.

     All notices of redemption shall state:

     (a) the Redemption Date;

     (b) the Redemption Price, or if not then ascertainable, the manner of calculation
thereof;

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     (c) if less than all the Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amounts) of the
particular Securities to be redeemed;

     (d) that on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon will cease to
accrue on and after said date;

     (e) the place or places where such Securities are to be surrendered for payment of the
Redemption Price; and

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

Notice of redemption of Securities to be redeemed at the election of the Issuers shall be given by
the Issuers or, at the Issuers’ request, by the Trustee in the name and at the expense of the
Issuers.

Section 11.5. Deposit of Redemption Price.

     Prior to any Redemption Date, the Issuers shall deposit with the Trustee or with a Paying
Agent (or, if either of the Issuers are acting as a Paying Agent, segregate and hold in trust as
provided in Section 10.3) an amount of money sufficient to pay the Redemption Price of, and (except
if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date.

Section 11.6. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Issuers shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Issuers
at the Redemption Price, together with accrued interest to the Redemption Date; provided, however,
that unless otherwise specified with respect to Securities of any series as contemplated in Section
3.1, installments of interest the Stated Maturity of which is on or prior to the Redemption Date
shall be payable to the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant record dates according to their terms
and the provisions of Section 3.7.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in the Security.

Section 11.7. Securities Redeemed in Part.

     Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Issuers or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Issuers and the Trustee duly executed by, the
Holder thereof or such Holder’s attorney duly authorized in writing), and the Issuers shall
execute, and the Trustee shall authenticate and deliver to the Holder of such Security without
service charge, a new Security or Securities of the same series and tenor, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered.

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ARTICLE TWELVE

SINKING FUNDS

Section 12.1. Applicability of Article.

     The provisions of this Article Twelve shall be applicable to any sinking fund for the
retirement of Securities of a series except as otherwise specified as contemplated by Section 3.1
for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
such minimum amount provided for by the terms of Securities of any 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 12.2.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

Section 12.2. Satisfaction of Sinking Fund Payments with Securities.

     The Issuers (a) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (b) may apply as a credit Securities of a series which have been
redeemed either at the election of the Issuers pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series; provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such purpose by the
Trustee at the Redemption 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.

Section 12.3. Redemption of Securities for Sinking Fund.

     Not less than 45 days prior to each sinking fund payment date for any series of Securities
(unless a shorter period shall be satisfactory to the Trustee), the Issuers will deliver to the
Trustee an Officer’s Certificate specifying the amount of the next ensuing 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 Securities of that series pursuant to Section 12.2 and stating the basis
for such credit and that such Securities have not been previously so credited, and will also
deliver to the Trustee any Securities to be so delivered. Not less than 30 days 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 11.3 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Issuers in the manner provided in
Section 11.4. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Section 11.6 and Section 11.7.

ARTICLE THIRTEEN

DEFEASANCE

Section 13.1. Option to Effect Legal Defeasance or Covenant Defeasance.

     The Issuers may, at the option of each of their Board of Directors evidenced by respective
Board Resolutions, and at any time, elect to have either Section 13.2 or Section 13.3 hereof be
applied to all

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Outstanding Securities of any series upon compliance with the conditions set forth
below in this Article Thirteen.

Section 13.2. Legal Defeasance and Discharge.

     Upon the Issuers’ exercise under Section 13.1 hereof of the option applicable to this Section
13.2, each of the Issuers and each of the Guarantors will, subject to the satisfaction of the
conditions set forth in Section 13.4 hereof, be deemed to have been discharged from their
obligations with respect to all Outstanding Securities of such series (including the Securities
Guarantee) on the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that the Issuers and the Guarantors will be
deemed to have paid and discharged the entire Debt represented by the Outstanding Securities of
such series (including the Securities Guarantee), which will thereafter be deemed to be
“outstanding” only for the purposes of Section 13.5 hereof and the other sections of this Indenture
referred to in clauses (a) and (b) below, and to have satisfied all their other obligations under
such Securities, the Securities Guarantee and this Indenture (and the Trustee, on demand of and at
the expense of the Issuers, shall execute proper instruments acknowledging the same), except for
the following provisions which will survive until otherwise terminated or discharged hereunder:

     (a) the rights of Holders of Outstanding Securities of such series to receive payments
in respect of the principal of, or interest or premium, if any, on, such Securities when
such payments are due from the trust referred to in Section 13.4 hereof;

     (b) the Issuers’ obligations with respect to such Securities under Section 3.4, Section
3.5, Section 3.6, Section 10.2 and Section 10.3 hereof;

     (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Issuers’ and the Guarantors’ obligations in connection therewith; and

     (d) this Article Thirteen.

     Subject to compliance with this Article Thirteen, the Issuers may exercise their option under
this Section 13.2 notwithstanding the prior exercise of their option under Section 13.3 hereof with
respect to the same series of Securities.

Section 13.3. Covenant Defeasance.

     Upon the Issuers’ exercise under Section 13.1 hereof of the option applicable to this Section
13.3, each of the Issuers and each of the Guarantors will, subject to the satisfaction of the
conditions set forth in Section 13.4 hereof, be released from each of their obligations respecting
the Securities of such series under the covenants contained in Section 8.1 and Section 10.4 hereof
as well as any Additional Defeasible Provisions (such release and termination hereinafter referred
to as “Covenant Defeasance”), and the Securities of such series will thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders
(and the consequences of any thereof) in connection with such covenants, but will continue to be
deemed “outstanding” for all other purposes hereunder (it being understood that such Securities
will not be deemed outstanding for accounting purposes to the extent permitted by GAAP). For this
purpose, Covenant Defeasance means that, with respect to the Outstanding Securities of such series
and the Securities Guarantee, the Issuers and the Guarantors may fail to comply with and will have
no liability in respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein or in any other

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document and such failure to comply will not constitute a Default or an Event of Default under
Section 5.1 hereof, but, except as specified above, the remainder of this Indenture and such
Securities and Securities Guarantee will be unaffected thereby. In addition, upon the Issuers’
exercise under Section 13.1 hereof of the option applicable to this Section 13.3 hereof, subject to
the satisfaction of the conditions set forth in Section 13.4 hereof, any Event of Default that
constitutes an Additional Defeasible Provision will no longer constitute an Event of Default.

Section 13.4. Conditions to Legal or Covenant Defeasance.

     In order to exercise either Legal Defeasance or Covenant Defeasance with respect to any series
of Securities under either Section 13.2 or Section 13.3 hereof:

     (a) the Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Securities of such series, cash in U.S. dollars, non-callable U.S.
Government Obligations, or a combination of cash in U.S. dollars and non-callable U.S.
Government Obligations, in such amounts as will be sufficient, in the opinion of a
nationally recognized investment bank, appraisal firm, or firm of independent public
accountants, to pay the principal of, and interest and premium, if any, on, the Outstanding
Securities of such series on the stated date for payment thereof or on the applicable
redemption date, as the case may be, and the Issuers must specify whether the Securities are
being defeased to such stated date for payment or to a particular redemption date;

     (b) in the case of an election under Section 13.2 hereof, the Issuers must deliver to
the Trustee an Opinion of Counsel stating that:

     (i) the Issuers have received from, or there has been published by, the
Internal Revenue Service a ruling; or

     (ii) since the Issue Date, 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 will
state that, the Holders of the Outstanding Securities of such series will not
recognize income, gain or loss for federal income tax purposes as a result of such
Legal Defeasance and will be
subject to federal income tax on the same amounts, in the same manner and at the
same times as would have been the case if such Legal Defeasance had not occurred;

     (c) in the case of an election under Section 13.3 hereof, the Issuers must deliver to
the Trustee an Opinion of Counsel stating that the Holders of the Outstanding Securities of
such series will not recognize income, gain or loss for federal income tax purposes as a
result of such Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such
Covenant Defeasance had not occurred;

     (d) no Default or Event of Default respecting such series of Securities shall have
occurred and be continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit);

     (e) the deposit must not result in a breach or violation of, or constitute a default
under, any other instrument to which either Issuer or any Guarantor is a party or by which
either Issuer or any Guarantor is bound;

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     (f) such Legal Defeasance or Covenant Defeasance must not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture) to which either Issuer or any of its Subsidiaries is a party or by
which either Issuer or any of its Subsidiaries is bound;

     (g) the Issuers must deliver to the Trustee an Officer’s Certificate stating that the
deposit was not made by the Issuers with the intent of preferring the Holders of Securities
of such series over the other creditors of the Issuers with the intent of defeating,
hindering, delaying or defrauding any other creditors of the Issuers or others;

     (h) the Issuers must deliver to the Trustee an Officer’s Certificate stating that all
conditions precedent set forth in clauses (a) through (f) of this Section 13.4 have been
complied with; and

     (i) the Issuers must deliver to the Trustee an Opinion of Counsel (which Opinion of
Counsel may be subject to customary assumptions, qualifications and exclusions) stating that
all conditions precedent set forth in clauses (b), (c) and (f) of this Section 13.4 have
been complied with.

Section 13.5. Deposited Money and U.S. Government Obligations to be Held in Trust, Other
Miscellaneous Provisions.

     Subject to the last paragraph of Section 10.3 hereof, all money and non-callable U.S.
Government Obligations (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 13.5, the “Trustee”) pursuant to
Section 13.4 hereof in respect of the Outstanding Securities of any series will be held in trust
and applied by the Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent (including either of the
Issuers acting as a Paying Agent) as the Trustee may determine, to the Holders of such Securities
of all sums due and to become due thereon in respect of principal, premium, if any, and interest,
but such money need not be segregated from other funds except to the extent required by law.

     The Issuers will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable U.S. Government Obligations deposited pursuant to
Section 13.4 hereof or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of such Outstanding
Securities.

     Notwithstanding anything in this Article Thirteen to the contrary, the Trustee will deliver or
pay to the Issuers from time to time upon the request of the Issuers any money or non-callable U.S.
Government Obligations held by it as provided in Section 13.4 hereof which, in the opinion of a
nationally recognized investment bank, appraisal firm or firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee (which may be the opinion
delivered under Section 13.4(a) hereof), are in excess of the amount thereof that would then be
required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

Section 13.6. Reinstatement .

     If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable
U.S. Government Obligations in accordance with Section 4.1, Section 13.2 or Section 13.3 hereof
with respect to the Securities of any series, as the case may be, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Issuers’

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and the Guarantors’ obligations under this Indenture and such
Securities and the Securities Guarantee will be revived and reinstated as though no deposit had
occurred pursuant to Section 4.1, Section 13.2 or Section 13.3 hereof until such time as the
Trustee or Paying Agent is permitted to apply all such money or non-callable U.S. Government
Obligations in accordance with Section 4.1, Section 13.2 or Section 13.3 hereof, as the case may
be; provided, however, that, if the Issuers make any payment of principal of or premium, if any, or
interest on any such Security following the reinstatement of its obligations, the Issuers will be
subrogated to the rights of the Holders of such Securities to receive such payment from the money
or non-callable U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE FOURTEEN

GUARANTEE OF SECURITIES

Section 14.1. Securities Guarantee.

     (a) Subject to the other provisions of this Article Fourteen, each of the Guarantors
hereby fully and unconditionally and jointly and severally guarantees to each Holder of a
Security of each series to which this Article Fourteen has been made applicable as provided
in Section 3.1(t) (the Securities of such series being referred to herein as the “Guaranteed
Securities”) (which Security has been authenticated and delivered by the Trustee), and to
the Trustee and its successors and assigns, irrespective of the validity and enforceability
of this Indenture, the Guaranteed Securities, or the obligations of the Issuers hereunder or
thereunder, that:

     (i) the principal of and premium, if any, and interest on the Guaranteed
Securities will be promptly paid in full when due, whether at Stated Maturity, or by
acceleration, redemption or otherwise, and interest on the overdue principal of and
interest on the Guaranteed Securities, if any, if lawful, and all other obligations
of the Issuers to the Holders of Guaranteed Securities, or the Trustee hereunder or
thereunder,
will be promptly paid in full or performed, all in accordance with the terms
hereof and thereof; and

     (ii) in case of any extension of time of payment or renewal of any Guaranteed
Securities or any of such other obligations, that same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal,
whether at Stated Maturity, by acceleration or otherwise.

Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee
of collection.

     (b) To the extent permissible under applicable law, the obligations of the Guarantors
under this Securities Guarantee are unconditional, irrespective of the validity, regularity
or enforceability of the Guaranteed Securities or this Indenture, the absence of any action
to enforce the same, any waiver or consent by any Holder of the Guaranteed Securities with
respect to any provisions hereof or thereof, the recovery of any judgment against the
Issuers, any action to enforce the same or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor. To the extent
permitted by applicable law, each Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy of either of
the Issuers, any right to require a proceeding first against either of the Issuers, protest,
notice and all demands whatsoever and covenants that this

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Securities Guarantee will not be
discharged except by complete performance of the obligations contained in the Guaranteed
Securities and this Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to the
Issuers, the Guarantors or any custodian, trustee, liquidator or other similar official
acting in relation to either the Issuers or the Guarantors, any amount paid by either to the
Trustee or such Holder, this Securities Guarantee, to the extent theretofore discharged,
will be reinstated in full force and effect.

     (d) Each Guarantor agrees that it will not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until payment in
full of all obligations guaranteed hereby. Each Guarantor further agrees that, to the
extent permitted by applicable law, as between the Guarantors, on the one hand, and the
Holders of Guaranteed Securities and the Trustee, on the other hand, (i) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article Five hereof for the
purposes of this Securities Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations guaranteed hereby,
and (ii) in the event of any declaration of acceleration of such obligations as provided in
Article Five hereof, such obligations (regardless of whether due and payable) will forthwith
become due and payable by the Guarantors for the purpose of this Securities Guarantee. The
Guarantors will have the right to seek contribution from any non-paying Guarantor so long as
the exercise of such right does not impair the rights of the Holders under the Securities
Guarantee.

Section 14.2. Limitation on Guarantor Liability.

     Each Guarantor and, by its acceptance of Guaranteed Securities, each Holder thereof, hereby
confirm that it is the intention of all such parties that the Securities Guarantee of such
Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal or
State law to the extent applicable to any Securities Guarantee. To effectuate the foregoing
intention, to the extent permitted under applicable law, the Holders and each Guarantor hereby
irrevocably agree that the obligations of such Guarantor will be limited to the maximum amount that
will, after giving effect to such maximum amount and all other contingent and fixed liabilities of
such Guarantor that are relevant under such laws, and after giving effect to any collections from,
rights to receive contribution from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under this Article Fourteen, result in the
obligations of such Guarantor under its Securities Guarantee not constituting a fraudulent transfer
or conveyance.

Section 14.3. Execution and Delivery of Securities Guarantee Notation.

     To evidence its Securities Guarantee set forth in Section 14.1 hereof, each Guarantor hereby
agrees that a notation of such Securities Guarantee substantially in the form set forth in Section
2.3 or established in or pursuant to a Board Resolution or in an indenture supplemental hereto, in
accordance with the provisions of Section 2.1, will be endorsed by an officer of such Guarantor on
each Guaranteed Security authenticated and delivered by the Trustee and that this Indenture or a
supplement to this Indenture will be executed on behalf of such Guarantor by one of its officers.

     Each Guarantor hereby agrees that its Securities Guarantee set forth in Section 14.1 hereof
will remain in full force and effect notwithstanding any failure to endorse on each Guaranteed
Security a notation of such Securities Guarantee.

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     The delivery of any Guaranteed Security by the Trustee, after the authentication thereof
hereunder, will constitute due delivery of the Securities Guarantee of such Guaranteed Security set
forth in this Indenture on behalf of the Guarantors.

* * *

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

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

	 	 	 	 	 	 	 

	 	 	LEGACY RESERVES LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	LEGACY RESERVES FINANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	[____________________]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:

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