Document:

Exhibit 4.12

 

 

SYNTA PHARMACEUTICALS CORP.

 

Issuer

 

AND

 

[   ]   Trustee

 

INDENTURE

 

Dated as of [    ]

 

Subordinated Debt Securities

 

 

CROSS-REFERENCE TABLE (1)

 

	
Section of
 Trust Indenture Act
 of 1939, as Amended
	
 
	
Section of
 Indenture

	
 
	
 
	
 

	
310(a).
	
 
	
7.09

	
310(b).
	
 
	
7.08

	
 
	
 
	
7.10

	
 
	
 
	
 

	
310(c).
	
 
	
Inapplicable

	
311(a).
	
 
	
7.13(a)

	
311(b).
	
 
	
7.13(b)

	
311(c).
	
 
	
Inapplicable

	
312(a).
	
 
	
5.02(a)

	
312(b).
	
 
	
5.02(b)

	
312(c).
	
 
	
5.02(c)

	
313(a).
	
 
	
5.04(a)

	
313(b).
	
 
	
5.04(a)

	
313(c).
	
 
	
5.04(a)

	
 
	
 
	
5.04(b)

	
313(d).
	
 
	
5.04(b)

	
314(a).
	
 
	
5.03

	
314(b).
	
 
	
Inapplicable

	
314(c).
	
 
	
13.06

	
314(d).
	
 
	
Inapplicable

	
314(e).
	
 
	
13.06

	
314(f).
	
 
	
Inapplicable

	
315(a).
	
 
	
7.01(a)

	
 
	
 
	
7.02

	
315(b).
	
 
	
6.07

	
315(c).
	
 
	
7.01

	
315(d).
	
 
	
7.01(b)

	
 
	
 
	
7.01(c)

	
315(e).
	
 
	
6.07

	
316(a).
	
 
	
6.06

	
 
	
 
	
8.04

	
316(b).
	
 
	
6.04

	
316(c).
	
 
	
8.01

	
317(a).
	
 
	
6.02

	
317(b).
	
 
	
4.03

	
318(a).
	
 
	
13.08

 

(1) This Cross-Reference Table does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

 

i

 

TABLE OF CONTENTS (2)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
SECTION 1.01
    	
Definitions of Terms.
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    	
ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF   SECURITIES
    	
5
    
	
 
    	
 
    	
 
    
	
SECTION 2.01
    	
Designation and Terms of Securities.
    	
5
    
	
SECTION 2.02
    	
Form of Securities and   Trustee’s Certificate.
    	
7
    
	
SECTION 2.03
    	
Denominations: Provisions for   Payment.
    	
7
    
	
SECTION 2.04
    	
Execution and Authentications.
    	
9
    
	
SECTION 2.05
    	
Registration of Transfer and   Exchange.
    	
10
    
	
SECTION 2.06
    	
Temporary Securities.
    	
11
    
	
SECTION 2.07
    	
Mutilated, Destroyed, Lost or   Stolen Securities.
    	
11
    
	
SECTION 2.08
    	
Cancellation.
    	
12
    
	
SECTION 2.09
    	
Benefits of Indenture.
    	
12
    
	
SECTION 2.10
    	
Authenticating Agent.
    	
13
    
	
SECTION 2.11
    	
Global Securities
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    	
REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
    	
14
    
	
 
    	
 
    	
 
    
	
SECTION 3.01
    	
Redemption.
    	
14
    
	
SECTION 3.02
    	
Notice of Redemption.
    	
14
    
	
SECTION 3.03
    	
Payment Upon Redemption.
    	
16
    
	
SECTION 3.04
    	
Sinking Fund.
    	
16
    
	
SECTION 3.05
    	
Satisfaction of Sinking Fund   Payments with Securities.
    	
17
    
	
SECTION 3.06
    	
Redemption of Securities for   Sinking Fund.
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    	
COVENANTS
    	
17
    
	
SECTION 4.01
    	
Payment of Principal, Premium   and Interest.
    	
17
    
	
SECTION 4.02
    	
Maintenance of Office or Agency.
    	
17
    
	
SECTION 4.03
    	
Paying Agents.
    	
18
    
	
SECTION 4.04
    	
Appointment to Fill Vacancy in   Office of Trustee.
    	
19
    
	
SECTION 4.05
    	
Compliance with Consolidation   Provisions.
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    	
SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
    	
19
    
	
 
    	
 
    	
 
    
	
SECTION 5.01
    	
Company to Furnish Trustee Names   and Addresses of Securityholders.
    	
19
    
	
SECTION 5.02
    	
Preservation Of Information;   Communications With Securityholders.
    	
19
    
	
SECTION 5.03
    	
Reports by the Company.
    	
20
    
	
SECTION 5.04
    	
Reports by the Trustee.
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE VI
    	
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
    	
21
    
	
 
    	
 
    	
 
    
	
SECTION 6.01
    	
Events of Default.
    	
21
    

 

ii

 

	
SECTION 6.02
    	
Collection of Indebtedness and   Suits for Enforcement by Trustee.
    	
23
    
	
SECTION 6.03
    	
Application of Moneys Collected.
    	
24
    
	
SECTION 6.04
    	
Limitation on Suits.
    	
25
    
	
SECTION 6.05
    	
Rights and Remedies Cumulative;   Delay or Omission Not Waiver.
    	
26
    
	
SECTION 6.06
    	
Control by Securityholders.
    	
26
    
	
SECTION 6.07
    	
Undertaking to Pay Costs.
    	
27
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    	
CONCERNING THE TRUSTEE
    	
27
    
	
 
    	
 
    	
 
    
	
SECTION 7.01
    	
Certain Duties and   Responsibilities of Trustee.
    	
27
    
	
SECTION 7.02
    	
Certain Rights of Trustee.
    	
29
    
	
SECTION 7.03
    	
Trustee Not Responsible for   Recitals or Issuance of Securities.
    	
30
    
	
SECTION 7.04
    	
May Hold Securities.
    	
30
    
	
SECTION 7.05
    	
Moneys Held in Trust.
    	
30
    
	
SECTION 7.06
    	
Compensation and Reimbursement.
    	
30
    
	
SECTION 7.07
    	
Reliance on Officers’   Certificate.
    	
31
    
	
SECTION 7.08
    	
Disqualification; Conflicting   Interests.
    	
31
    
	
SECTION 7.09
    	
Corporate Trustee Required;   Eligibility.
    	
31
    
	
SECTION 7.10
    	
Resignation and Removal;   Appointment of Successor.
    	
32
    
	
SECTION 7.11
    	
Acceptance of Appointment By   Successor.
    	
33
    
	
SECTION 7.12
    	
Merger, Conversion,   Consolidation or Succession to Business.
    	
35
    
	
SECTION 7.13
    	
Preferential Collection of   Claims Against the Company.
    	
35
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII
    	
CONCERNING THE SECURITYHOLDERS
    	
35
    
	
 
    	
 
    	
 
    
	
SECTION 8.01
    	
Evidence of Action by   Securityholders.
    	
35
    
	
SECTION 8.02
    	
Proof of Execution by   Securityholders.
    	
36
    
	
SECTION 8.03
    	
Who May be Deemed Owners.
    	
36
    
	
SECTION 8.04
    	
Certain Securities Owned by   Company Disregarded.
    	
36
    
	
SECTION 8.05
    	
Actions Binding on Future   Securityholders.
    	
37
    
	
SECTION 8.06
    	
Purposes for Which Meetings   May Be Called.
    	
37
    
	
SECTION 8.07
    	
Call Notice and Place of   Meetings.
    	
37
    
	
SECTION 8.08
    	
Persons Entitled To Vote at   Meetings.
    	
38
    
	
SECTION 8.09
    	
Quorum; Action.
    	
38
    
	
SECTION 8.10
    	
Determination of Voting Rights;   Conduct and Adjournment of Meetings.
    	
38
    
	
SECTION 8.11
    	
Counting Votes and Recording   Action of Meetings.
    	
39
    
	
 
    	
 
    	
 
    
	
ARTICLE IX
    	
SUPPLEMENTAL INDENTURES
    	
40
    
	
 
    	
 
    	
 
    
	
SECTION 9.01
    	
Supplemental Indentures Without   the Consent of Securityholders.
    	
40
    
	
SECTION 9.02
    	
Supplemental Indentures With   Consent of Securityholders.
    	
41
    
	
SECTION 9.03
    	
Effect of Supplemental   Indentures.
    	
41
    
	
SECTION 9.04
    	
Securities Affected by   Supplemental Indentures.
    	
42
    
	
SECTION 9.05
    	
Execution of Supplemental   Indentures.
    	
42
    
	
 
    	
 
    	
 
    
	
ARTICLE X
    	
SUCCESSOR ENTITY
    	
42
    
	
 
    	
 
    	
 
    
	
SECTION 10.01
    	
Company May Consolidate,   Etc.
    	
42
    
	
SECTION 10.02
    	
Successor Entity Substituted.
    	
43
    
	
SECTION 10.03
    	
Evidence of Consolidation, Etc.   to Trustee.
    	
43
    
	
 
    	
 
    	
 
    
	
ARTICLE XI
    	
SATISFACTION AND DISCHARGE
    	
44
    

 

iii

 

	
SECTION 11.01
    	
Satisfaction and Discharge of   Indenture.
    	
44
    
	
SECTION 11.02
    	
Discharge of Obligations.
    	
44
    
	
SECTION 11.03
    	
Deposited Moneys to be Held in   Trust.
    	
45
    
	
SECTION 11.04
    	
Payment of Moneys Held by Paying   Agents.
    	
45
    
	
SECTION 11.05
    	
Repayment to Company.
    	
45
    
	
 
    	
 
    	
 
    
	
ARTICLE XII
    	
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
    	
45
    
	
 
    	
 
    	
 
    
	
SECTION 12.01
    	
No Recourse.
    	
45
    
	
 
    	
 
    	
 
    
	
ARTICLE XIII
    	
MISCELLANEOUS PROVISIONS
    	
46
    
	
 
    	
 
    	
 
    
	
SECTION 13.01
    	
Effect on Successors and   Assigns.
    	
46
    
	
SECTION 13.02
    	
Actions by Successor.
    	
46
    
	
SECTION 13.03
    	
Surrender of Company Powers.
    	
46
    
	
SECTION 13.04
    	
Notices.
    	
46
    
	
SECTION 13.05
    	
Governing Law.
    	
47
    
	
SECTION 13.06
    	
Treatment of Securities as Debt.
    	
47
    
	
SECTION 13.07
    	
Compliance Certificates and Opinions.
    	
47
    
	
SECTION 13.08
    	
Payments on Business Days.
    	
47
    
	
SECTION 13.09
    	
Conflict with Trust Indenture   Act.
    	
48
    
	
SECTION 13.10
    	
Counterparts.
    	
48
    
	
SECTION 13.11
    	
Separability.
    	
48
    
	
SECTION 13.12
    	
Assignment.
    	
48
    
	
 
    	
 
    	
 
    
	
ARTICLE XIV
    	
SUBORDINATION OF SECURITIES
    	
48
    
	
 
    	
 
    	
 
    
	
SECTION 14.01
    	
Subordination Terms.
    	
48
    

 

(2) This Table of Contents does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

 

iv

 

INDENTURE, dated as of [   ], by and between Synta Pharmaceuticals Corp., a Delaware corporation (the “Company”), and [   ], as trustee (the “Trustee”):

 

WHEREAS, for its lawful corporate purposes, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of subordinated debt securities (hereinafter referred to as the “Securities”), in an unlimited aggregate principal amount to be issued from time to time in one or more series as in this Indenture provided, as registered Securities without coupons, to be authenticated by the certificate of the Trustee;

 

WHEREAS, to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution of this Indenture; and

 

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

 

NOW, THEREFORE, in consideration of the premises and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit of the holders of Securities:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.01               Definitions of Terms.

 

The terms defined in this Section (except as in this Indenture otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section and shall include the plural as well as the singular.  All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939, as amended, or that are by reference in such Act defined in the Securities Act of 1933, as amended (except as herein otherwise expressly provided or unless the context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this instrument.

 

“Authenticating Agent” means an authenticating agent with respect to all or any of the series of Securities appointed with respect to all or any series of the Securities by the Trustee pursuant to Section 2.10.

 

“Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

“Board of Directors” means the Board of Directors of the Company or any duly authorized committee of such Board.

 

 

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

 

“Business Day” means, with respect to any series of Securities, any day other than a day on which Federal or State banking institutions in the Borough of Manhattan, the City and State of New York, are authorized or obligated by law, executive order or regulation to close.

 

“Certificate” means a certificate signed by the principal executive officer, the principal financial officer or the principal accounting officer of the Company. The Certificate need not comply with the provisions of Section 13.07.

 

“Commission” means the Securities and Exchange Commission.

 

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

 

“Corporate Trust Office” means the office of the Trustee at which, at any particular time, its corporate trust business shall be principally administered, which office at the date hereof is located at [ ], except that whenever a provision herein refers to an office or agency of the Trustee in the Borough of Manhattan, the City and State of New York, such office is located, at the date hereof, at [ ].

 

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

 

“Default” means an event which is, or after notice or lapse of time, or both, would constitute an Event of Default.

 

“Depositary” means, with respect to Securities of any series, for which the Company shall determine that such Securities will be issued as a Global Security, The Depository Trust Company, New York, New York, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, or other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant to either Section 2.01 or Section 2.11.

 

“Event of Default” means, with respect to Securities of a particular series, any event specified in Section 6.01, continued for the period of time, if any, therein designated.

 

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

 

“Global Security” means, with respect to any series of Securities, a Security executed by the Company and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with this Indenture, which shall be registered in the name of the Depositary or its nominee.

 

“Governmental Obligations” means securities that are (i) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (ii) obligations 

 

2

 

of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America that, in either case, are non-callable at the option of the issuer thereof, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to any such Governmental Obligation or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder of such depositary receipt; provided, however, that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.

 

“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.

 

“Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into in accordance with the terms hereof.

 

“Interest Payment Date,” when used with respect to any installment of interest on a Security of a particular series, means the date specified in such Security or in a Board Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment of interest with respect to Securities of that series is due and payable.

 

“Officers’ Certificate” means a certificate signed by the President or a Vice President and by the Chief Financial Officer, the Treasurer or an Assistant Treasurer or the Controller or an Assistant Controller or the Secretary or an Assistant Secretary of the Company that is delivered to the Trustee in accordance with the terms hereof. Certificate shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.

 

“Opinion of Counsel” means a written opinion of counsel, who may be counsel to the Company (and may include directors or employees of the Company) and which opinion is acceptable to the Trustee which acceptance shall not be unreasonably withheld.

 

“Outstanding”, when used with reference to Securities of any series, means, subject to the provisions of Section 8.04, as of any particular time, all Securities of that series theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been canceled; (b) Securities or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); provided, however, that if such Securities or portions of such Securities are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in Article III provided, or provision satisfactory to the Trustee shall have been 

 

3

 

made for giving such notice; and (c) Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant to the terms of Section 2.07.

 

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

 

“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 2.07 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.

 

“Responsible Officer,” when used with respect to the Trustee, means any officer of the Trustee, including any vice president, assistant vice president, secretary, assistant secretary, the treasurer, any assistant treasurer, the managing director or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.

 

“Securities” means the debt Securities authenticated and delivered under this Indenture.

 

“Security Register” has the meaning specified in Section 2.05.

 

“Security Registrar” has the meaning specified in Section 2.05.

 

“Securityholder,” “holder of Securities,” “registered holder,” or other similar term, means the Person or Persons in whose name or names a particular Security shall be registered in the Security Register.

 

“Subsidiary” means, with respect to any Person, (i) any corporation at least a majority of whose outstanding Voting Stock shall at the time be owned, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii) any general partnership, joint venture or similar entity, at least a majority of whose outstanding partnership or similar interests shall at the time be owned by such Person, or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited partnership of which such Person or any of its Subsidiaries is a general partner.

 

“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 such successor Trustee. The term “Trustee” as used with respect to a particular series of the Securities shall mean the trustee with respect to that series.

 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, subject to the provisions of Sections 9.01, 9.02, and 10.01, as in effect at the date of execution of this instrument; provided, however, that in the event the Trust Indenture Act is amended after such 

 

4

 

date, Trust Indenture Act means, to the extent required by such amendment, the Trust Indenture Act of 1939, as so amended, or any successor statute.

 

“Voting Stock,” as applied to any Person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such Person having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other than shares, interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.

 

ARTICLE II

 

ISSUE, DESCRIPTION, TERMS, EXECUTION, 
 REGISTRATION AND EXCHANGE OF SECURITIES

 

SECTION 2.01       Designation and Terms of Securities.

 

(a)                                  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 up to the aggregate principal amount of Securities of that series from time to time authorized by or pursuant to a Board Resolution of the Company or pursuant to one or more indentures supplemental hereto. Prior to the initial issuance of Securities of a given series, there shall be established in or pursuant to a Board Resolution of the Company, and set forth in an Officers’ Certificate of the Company, or established in one or more indentures supplemental hereto:

 

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

 

(2)                                  the aggregate principal amount of the Securities of such series initially to be issued and any limit upon the aggregate principal amount of the Securities of that 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 that series);

 

(3)                                  the currency or units based on or relating to currencies in which debt securities of such series are denominated and the currency or units in which principal or interest or both will or may be payable;

 

(4)                                  the date or dates on which the principal of the Securities of the series is payable and the place(s) of payment;

 

(5)                                  the rate or rates at which the Securities of the series shall bear interest or the manner of calculation of such rate or rates, if any;

 

(6)                                  the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest will be payable or the manner of determination of such Interest Payment Dates, the place(s) of payment, 

 

5

 

and the record date for the determination of holders to whom interest is payable on any such Interest Payment Dates or the method for determining such dates;

 

(7)                                  the right, if any, to extend the interest payment periods or to defer the payment of interest and the duration of such extension;

 

(8)                                  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 Company;

 

(9)                                  the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any sinking fund or analogous provisions (including payments made in cash in satisfaction of future sinking fund obligations) 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;

 

(10)                            whether or not the debt securities will be secured or unsecured, and the terms of any secured debt;

 

(11)                            the form of the Securities of the series including the form of the Certificate of Authentication for such series;

 

(12)                            if other than denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, the denominations in which the Securities of the series shall be issuable;

 

(13)                            any and all other terms with respect to such series (which terms shall not be inconsistent with the terms of this Indenture, as amended by any supplemental indenture) including any terms which may be required by or advisable under United States laws or regulations or advisable in connection with the marketing of Securities of that series;

 

(14)                            whether the Securities are issuable as a Global Security and, in such case, the identity of the Depositary for such series;

 

(15)                            whether the Securities will be convertible into shares of common stock or other securities of the Company and, if so, the terms and conditions upon which such Securities will be so convertible, including the conversion price and the conversion period;

 

(16)                            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 6.01;

 

(17)                            any additional or different Events of Default or restrictive covenants 

 

6

 

provided for with respect to the Securities of the series; and

 

(18)                            the subordination terms of the Securities of the series.

 

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 any such Board Resolution or in any indentures supplemental hereto.

 

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

 

Securities of any particular series may be issued at various times, with different dates on which the principal or any installment of principal is payable, with different rates of interest, if any, or different methods by which rates of interest may be determined, with different dates on which such interest may be payable and with different redemption dates.

 

SECTION 2.02               Form of Securities and Trustee’s Certificate.

 

The Securities of any series and the Trustee’s certificate of authentication to be borne by such Securities shall be substantially of the tenor and purport as set forth in one or more indentures supplemental hereto or as provided in a Board Resolution of the Company and as set forth in an Officers’ Certificate of the Company and the and may have such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which Securities of that series may be listed, or to conform to usage.

 

SECTION 2.03               Denominations: Provisions for Payment.

 

The Securities shall be issuable as registered Securities and in the denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section 2.01(a)(12). The Securities of a particular series shall bear interest payable on the dates and at the rate specified with respect to that series.  The principal of and the interest on the Securities of any series, as well as any premium thereon in case of redemption thereof prior to maturity, shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, the City and State of New York. Each Security shall be dated the date of its authentication.  Interest on the Securities shall be computed on the basis of a 360-day year composed of twelve 30-day months.

 

The interest installment on any Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall be paid to the Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment. In the event that any Security of a particular series or portion thereof is called for redemption and the redemption date 

 

7

 

is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on such Security will be paid upon presentation and surrender of such Security as provided in Section 3.03.

 

Any interest on any Security that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (herein called “Defaulted Interest”) shall forthwith cease to be payable to the registered holder on the relevant regular record date by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below:

 

(1)                                  The Company may make payment of any Defaulted Interest on Securities to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid, to each Securityholder at his or her 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 mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered on such special record date.

 

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

 

8

 

Unless otherwise set forth in a Board Resolution of the Company or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.01 hereof, the term “regular record date” as used in this Section with respect to a series of Securities with respect to any Interest Payment Date for such series shall mean either the fifteenth day of the month immediately preceding the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the first day of a month, or the last day of the month immediately preceding the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.

 

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

 

SECTION 2.04               Execution and Authentications.

 

The Securities shall be signed on behalf of the Company by its President, or one of its Vice Presidents, or its Treasurer, or one of its Assistant Treasurers, or its Secretary, or one of its Assistant Secretaries, under its corporate seal attested by its Secretary or one of its Assistant Secretaries. Signatures may be in the form of a manual or facsimile signature. The Company may use the facsimile signature of any Person who shall have been a President or Vice President thereof, or of any Person who shall have been a Treasurer or Assistant Treasurer thereof, or of any Person who shall have been a Secretary or Assistant Secretary thereof, notwithstanding the fact that at the time the Securities shall be authenticated and delivered or disposed of such Person shall have ceased to be the President or a Vice President, the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary, of the Company. The seal of the Company may be in the form of a facsimile of such seal and may be impressed, affixed, imprinted or otherwise reproduced on the Securities. The Securities may contain such notations, legends or endorsements required by law, stock exchange rule or usage. Each Security shall be dated the date of its authentication.

 

A Security shall not be valid or obligatory for any purpose and shall not be entitled to any benefit under this Indenture, in each case, until authenticated with a certificate of authentication manually signed by an authorized signatory of the Trustee, or by an Authenticating Agent. Such certificate shall be conclusive evidence, and the only evidence, that the Security so authenticated has been duly authenticated and delivered hereunder and that the Security is entitled to the benefits of this Indenture. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a written order of the Company for the authentication and delivery of such Securities, signed by its President or any Vice President and its Secretary or any Assistant Secretary, and the Trustee in accordance with such written order shall authenticate and deliver such Securities.

 

In authenticating such Securities and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to 

 

9

 

Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the form and terms thereof have been established in conformity with the provisions of this Indenture.

 

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 that is not reasonably acceptable to the Trustee.

 

SECTION 2.05               Registration of Transfer and Exchange.

 

(a)                                  Securities of any series may be exchanged upon presentation thereof at the office or agency of the Company designated for such purpose in the Borough of Manhattan, the City and State of New York, for other Securities of such series of authorized denominations, and for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section. In respect of any Securities so surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in exchange therefor the Security or Securities of the same series that the Securityholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.

 

(b)                                 The Company shall keep, or cause to be kept, at its office or agency designated for such purpose in the Borough of Manhattan, the City and State of New York, or such other location designated by the Company a register or registers (herein referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall register the Securities and the transfers of Securities as in this Article provided and which at all reasonable times shall be open for inspection by the Trustee. The registrar for the purpose of registering Securities and transfer of Securities as herein provided shall be appointed as authorized by Board Resolution (the “Security Registrar”).

 

Upon surrender for transfer of any Security at the office or agency of the Company designated for such purpose, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in the name of the transferee or transferees a new Security or Securities of the same series as the Security presented for a like aggregate principal amount.

 

All Securities presented or surrendered for exchange or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the Security Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar, duly executed by the registered holder or by such holder’s duly authorized attorney in writing.

 

(c)                                  No service charge shall be made for any exchange or registration of transfer of Securities, or issue of new Securities in case of partial redemption of any series, but the Company may require payment of a sum sufficient to cover any tax or 

 

10

 

other governmental charge in relation thereto, other than exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not involving any transfer.

 

(d)                                 The Company shall not be required (i) to issue, exchange or register the transfer of any Securities during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of less than all the Outstanding Securities of the same series and ending at the close of business on the day of such mailing, nor (ii) to register the transfer of or exchange any Securities of any series or portions thereof called for redemption. The provisions of this Section 2.05 are, with respect to any Global Security, subject to Section 2.11 hereof.

 

SECTION 2.06               Temporary Securities.

 

Pending the preparation of definitive Securities of any series, the Company may execute, and the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed or typewritten) of any authorized denomination. Such temporary Securities shall be substantially in the form of the definitive Securities in lieu of which they are issued, but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company. Every temporary Security of any series shall be executed by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive Securities of such series. Without unnecessary delay the Company will execute and will furnish definitive Securities of such series and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor (without charge to the holders), at the office or agency of the Company designated for the purpose in the Borough of Manhattan, the City and State of New York, and the Trustee shall authenticate and such office or agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities of such series, unless the Company advises the Trustee to the effect that definitive Securities need not be executed and furnished until further notice from the Company. Until so exchanged, the temporary Securities of such series shall be entitled to the same benefits under this Indenture as definitive Securities of such series authenticated and delivered hereunder.

 

SECTION 2.07               Mutilated, Destroyed, Lost or Stolen Securities.

 

In case any temporary or definitive Security shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company’s request the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the same series, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in substitution for the Security so destroyed, lost or stolen. In every case the applicant for a substituted Security shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicant’s Security and of the ownership thereof. The Trustee may authenticate any such substituted Security and deliver the same upon the written request or authorization of any officer of the Company. Upon the issuance of any substituted Security, the Company may require the 

 

11

 

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. In case any Security that has matured or is about to mature shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Security) if the applicant for such payment shall furnish to the Company and the Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction, loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the ownership thereof.

 

Every replacement Security issued pursuant to the provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of the same series duly issued hereunder. All Securities shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

 

SECTION 2.08               Cancellation.

 

All Securities surrendered for the purpose of payment, redemption, exchange or registration of transfer shall, if surrendered to the Company or any paying agent, be delivered to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall be issued in lieu thereof except as expressly required or permitted by any of the provisions of this Indenture. On request of the Company at the time of such surrender, the Trustee shall deliver to the Company canceled Securities held by the Trustee. In the absence of such request the Trustee may dispose of canceled Securities in accordance with its standard procedures and deliver a certificate of disposition to the Company. If the Company shall otherwise acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation.

 

SECTION 2.09               Benefits of Indenture.

 

Nothing in this Indenture or in the Securities, express or implied, shall give or be construed to give to any Person, other than the parties hereto and the holders of the Securities (and, with respect to the provisions of Article XIV, the holders of Senior Indebtedness, as defined in any supplement to this Indenture pursuant to Article XIV) any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the holders of the Securities (and, with respect to the provisions of Article XIV, the holders of Senior Indebtedness).

 

12

 

SECTION 2.10               Authenticating Agent.

 

So long as any of the Securities of any series remain Outstanding there may be an Authenticating Agent for any or all such series of Securities which the Trustee shall have the right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon exchange, transfer or partial redemption thereof, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. All references in this Indenture to the authentication of Securities by the Trustee shall be deemed to include authentication by an Authenticating Agent for such series. Each Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction under which it is organized or in which it is doing business to conduct a trust business, and that is otherwise authorized under such laws to conduct such business and is subject to supervision or examination by Federal or State authorities. If at any time any Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately.

 

Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time (and upon request by the Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant hereto.

 

SECTION 2.11               Global Securities

 

(a)                                  If the Company shall establish pursuant to Section 2.01 that some or all of the Securities of a particular series are to be issued as a Global Security, then the Company shall execute and the Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security that (i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, the Outstanding Securities of such series which are to be issued as a Global Security, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv) shall bear a legend substantially to the following effect: “Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred, in whole but not in part, only to another nominee of the Depositary or to a successor Depositary or to a nominee of such successor Depositary.”

 

(b)                                 Notwithstanding the provisions of Section 2.05, the Global Security of a series may be transferred, in whole but not in part and in the manner provided in Section 2.05, only to another nominee of the Depositary for such series, or to a successor Depositary for such series selected or approved by the Company or to a nominee 

 

13

 

of such successor Depositary.

 

(c)                                  If at any time the Depositary for a series of the Securities notifies the Company that it is unwilling or unable to continue as Depositary for such series or if at any time the Depositary for such series shall no longer be registered or in good standing under the Exchange Act, or other applicable statute or regulation, and a successor Depositary for such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such condition, as the case may be, this Section 2.11 shall no longer be applicable to the Securities of such series and the Company will execute, and subject to Section 2.05, the Trustee will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security. In addition, the Company may at any time determine that the Securities of any series shall no longer be represented by a Global Security and that the provisions of this Section 2.11 shall no longer apply to the Securities of such series. In such event the Company will execute and subject to Section 2.05, the Trustee, upon receipt of an Officers’ Certificate evidencing such determination by the Company, will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security. Upon the exchange of the Global Security for such Securities in definitive registered form without coupons, in authorized denominations, the Global Security shall be canceled by the Trustee. Such Securities in definitive registered form issued in exchange for the Global Security pursuant to this Section 2.11(c) shall be registered in such names and in such authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to the Depositary for delivery to the Persons in whose names such Securities are so registered.

 

ARTICLE III

 

REDEMPTION OF SECURITIES AND 
 SINKING FUND PROVISIONS

 

SECTION 3.01               Redemption.

 

The Company may redeem the Securities of any series issued hereunder on and after the dates and in accordance with the terms established for such series pursuant to Section 2.01 hereof.

 

SECTION 3.02               Notice of Redemption.

 

(a)                                  In case the Company shall desire to exercise such right to redeem all or, as the case may be, a portion of the Securities of any series in accordance with the right 

 

14

 

reserved so to do, the Company shall, or shall cause the Trustee to, give notice of such redemption to holders of the Securities of such series to be redeemed by mailing, first class postage prepaid, a notice of such redemption not less than 30 days and not more than 90 days before the date fixed for redemption of that series to such holders at their last addresses as they shall appear upon the Security Register unless a shorter period is specified in the Securities to be redeemed. Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any Security of any series designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Securities of such series or any other series. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers’ Certificate evidencing compliance with any such restriction.

 

Each such notice of redemption shall specify the date fixed for redemption and the redemption price at which Securities of that series are to be redeemed, and shall state that payment of the redemption price of such Securities to be redeemed will be made at the office or agency of the Company in the Borough of Manhattan, the City and State of New York, upon presentation and surrender of such Securities, that interest accrued to the date fixed for redemption will be paid as specified in said notice, that from and after said date interest will cease to accrue and that the redemption is for a sinking fund, if such is the case. If less than all the Securities of a series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in whole or in part shall specify the particular Securities to be so redeemed. In case any Security is to be redeemed in part only, the notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state that on and after the redemption date, upon surrender of such Security, a new Security or Securities of such series in principal amount equal to the unredeemed portion thereof will be issued.

 

(b)                                 If less than all the Securities of a series are to be redeemed, the Company shall give the Trustee at least 30 days’ notice in advance of the date fixed for redemption as to the aggregate principal amount of Securities of the series to be redeemed, and thereupon the Trustee shall select, by lot or in such other manner as it shall deem appropriate and fair in its discretion and that may provide for the selection of a portion or portions (equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount of such Securities of a denomination larger than $1,000, the Securities to be redeemed and shall thereafter promptly notify the Company in writing of the numbers of the Securities to be redeemed, in whole or in part. The Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by its President or any Vice President, instruct the Trustee or any paying agent to call all or any part of the Securities of a particular series for redemption and to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as the Trustee or such paying agent may deem advisable. In any case in which notice of redemption is to be given by 

 

15

 

the Trustee or any such paying agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as the case may be, such Security Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or such paying agent to give any notice by mail that may be required under the provisions of this Section.

 

SECTION 3.03               Payment Upon Redemption.

 

(a)                                  If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities of the series to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption and interest on such Securities or portions of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued interest with respect to any such Security or portion thereof. On presentation and surrender of such Securities on or after the date fixed for redemption at the place of payment specified in the notice, said Securities shall be paid and redeemed at the applicable redemption price for such series, together with interest accrued thereon to the date fixed for redemption (but if the date fixed for redemption is an interest payment date, the interest installment payable on such date shall be payable to the registered holder at the close of business on the applicable record date pursuant to Section 2.03).

 

(b)                                 Upon presentation of any Security of such series that is to be redeemed in part only, the Company shall execute and the Trustee shall authenticate and the office or agency where the Security is presented shall deliver to the holder thereof, at the expense of the Company, a new Security of the same series of authorized denominations in principal amount equal to the unredeemed portion of the Security so presented.

 

SECTION 3.04               Sinking Fund.

 

The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.01 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 3.05. 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.

 

16

 

SECTION 3.05               Satisfaction of Sinking Fund Payments with Securities.

 

The Company (i) may deliver Outstanding Securities of a series (other than any Securities previously called for redemption) and (ii) may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, 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 3.06               Redemption of Securities for Sinking Fund.

 

Not less than 45 days prior to each sinking fund payment date for any series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of the series, the portion thereof, if any, that is to be satisfied by delivering and crediting Securities of that series pursuant to Section 3.05 and the basis for such credit and will, together with such Officers’ Certificate, 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 3.02 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.02. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Section 3.03.

 

ARTICLE IV

 

COVENANTS

 

SECTION 4.01               Payment of Principal, Premium and Interest.

 

The Company will duly and punctually pay or cause to be paid the principal of (and premium, if any) and interest on the Securities of that series at the time and place and in the manner provided herein and established with respect to such Securities.

 

SECTION 4.02               Maintenance of Office or Agency.

 

So long as any series of the Securities remain Outstanding, the Company agrees to maintain an office or agency in the Borough of Manhattan, the City and State of New York, with respect to each such series and at such other location or locations as may be designated as provided in this Section 4.02, where (i) Securities of that series may be presented or surrendered for payment, (ii) Securities of that series may be presented as herein above authorized for registration of transfer and exchange, and (iii) notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be given or served, such designation to continue with respect to such office or agency until the Company shall, by written notice signed by its President or a Vice President and delivered to the trustee, designate some 

 

17

 

other office or agency for such purposes or any of them. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, notices and demands.

 

SECTION 4.03               Paying Agents.

 

(a)                                  If the Company shall appoint one or more paying agents for all or any series of the Securities, other than the Trustee, the Company will cause each such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section:

 

(1)                                  that it will hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the Securities of that series (whether such sums have been paid to it by the Company or by any other obligor of such Securities) in trust for the benefit of the Persons entitled thereto;

 

(2)                                  that it will give the Trustee notice of any failure by the Company (or by any other obligor of such Securities) to make any payment of the principal of (and premium, if any) or interest on the Securities of that series when the same shall be due and payable;

 

(3)                                  that it will, at any time during the continuance of any failure referred to in the preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent; and

 

(4)                                  that it will perform all other duties of paying agent as set forth in this Indenture.

 

(b)                                 If the Company shall act as its own paying agent with respect to any series of the Securities, it will on or before each due date of the principal of (and premium, if any) or interest on Securities of that series, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient with monies held by all other paying agents to pay such principal (and premium, if any) or interest so becoming due on Securities of that series until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or any failure (by it or any other obligor on such Securities) to take such action. Whenever the Company shall have one or more paying agents for any series of Securities, it will, prior to each due date of the principal of (and premium, if any) or interest on any Securities of that series, deposit with the paying agent a sum sufficient to pay the principal (an premium, if any) 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 Company will promptly notify the Trustee of this 

 

18

 

action or failure so to act.

 

(c)                                  Notwithstanding anything in this Section to the contrary, (i) the agreement to hold sums in trust as provided in this Section is subject to the provisions of Section 11.05, and (ii) the Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the same terms and conditions as those upon which such sums were held by the Company or such paying agent; and, upon such payment by any paying agent to the Trustee, such paying agent shall be released from all further liability with respect to such money.

 

SECTION 4.04               Appointment to Fill Vacancy in Office of Trustee.

 

The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee hereunder.

 

SECTION 4.05               Compliance with Consolidation Provisions.

 

The Company will not, while any of the Securities remain Outstanding, consolidate with or merge into any other Person, in either case where the Company is not the survivor of such transaction, or sell or convey all or substantially all of its property to any other company unless the provisions of Article X hereof are complied with.

 

ARTICLE V

 

SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

 

SECTION 5.01               Company to Furnish Trustee Names and Addresses of Securityholders.

 

If the Company is not the Security Register, the Company will furnish or use reasonable efforts to cause to be furnished to the Trustee (a) on each regular record date (as defined in Section 2.03) a list, in such form as the Trustee may reasonably require, of the names and addresses of the holders of each series of Securities as of such regular record date, provided that the Company shall not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect from the most recent list furnished to the Trustee by the Company and (b) at such other times as the Trustee may request in writing within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; provided, however, that, in either case, no such list need be furnished for any series for which the Trustee shall be the Security Registrar.

 

SECTION 5.02               Preservation Of Information; Communications With Securityholders.

 

(a)                                  The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Securities contained in the most recent list furnished to it as provided in Section 5.01 and as to the 

 

19

 

names and addresses of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity) and shall otherwise comply with Section 312(a) of the Trust Indenture Act.

 

(b)                                 The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt of a new list so furnished.

 

(c)                                  Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with respect to their rights under this Indenture or under the Securities.

 

SECTION 5.03               Reports by the Company.

 

(a)                                  The Company covenants and agrees to file with the Trustee, within 15 days after the Company is required to file the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) that the Company may be required to file with the Commission 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 such sections, then to file with the Trustee and the Commission, in accordance with the rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports that 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; provided, however, the Company shall not be required to deliver to the Trustee any materials for which the Company has sought and received confidential treatment by the Commission. The Company also shall comply with the other provisions of Section 314(a) of the Trust Indenture Act.

 

(b)                                 The Company covenants and agrees to file with the Trustee and the Commission, in accordance with the rules and regulations prescribed from to time by the Commission, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants provided for in this Indenture as may be required from time to time by such rules and regulations.

 

(c)                                  The Company covenants and agrees to transmit by mail, first class postage prepaid, or reputable over-night delivery service that provides for evidence of receipt, to the Securityholders, as their names and addresses appear upon 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 subsections (a) and (b) of this Section as may be required by rules and regulations prescribed from time to time by the Commission.

 

SECTION 5.04               Reports by the Trustee.

 

(a)                                  The Trustee shall transmit to holders as provided in Section 313 of the Trust 

 

20

 

Indenture Act such reports concerning the Trustee and its actions under this Indenture as may be required by Section 313 of the Trust Indenture Act at the times and in the manner provided by the Trust Indenture Act.

 

(b)                                 A copy of each such report shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company, with each stock exchange upon which any Securities are listed (if so listed) and, if required by Section 313 of the Trust Indenture Act, also with the Commission. The Company agrees to notify the Trustee when any Securities become listed on any stock exchange.

 

ARTICLE VI

 

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

 

SECTION 6.01               Events of Default.

 

(a)                                  Whenever used herein with respect to Securities of a particular series, “Event of Default” means any one or more of the following events that has occurred and is continuing:

 

(1)                                  the Company defaults in the payment of any installment of interest upon any of the Securities of that series, as and when the same shall become due and payable, and continuance of such default for a period of 90 days; provided, however, that a valid extension of an interest payment period by the Company in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of interest for this purpose;

 

(2)                                  the Company defaults in the payment of the principal of (or premium, if any, on) any of the Securities of that series as and when the same shall become due and payable whether at maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking or analogous fund established with respect to that series; provided, however, that a valid extension of the maturity of such Securities in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal or premium, if any;

 

(3)                                  the Company fails to observe or perform any other of its covenants or agreements with respect to that series contained in this Indenture or otherwise established with respect to that series of Securities pursuant to Section 2.01 hereof (other than a covenant or agreement that has been expressly included in this Indenture solely for the benefit of one or more series of Securities other than such series) for a period of 90 days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice is a “Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered or 

 

21

 

certified mail, or to the Company and the Trustee by the holders of not less than a majority in principal amount of the Securities of that series at the time Outstanding;

 

(4)                                  the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property or (iv) makes a general assignment for the benefit of its creditors; or

 

(5)                                  a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company for all or substantially all of its property, or (iii) orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 90 consecutive days.

 

(b)                                 In each and every such case, unless the principal of all the Securities of that series shall have already become due and payable, either the Trustee or the holders of not less than a majority in aggregate principal amount of the Securities of that series then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such Securityholders), may declare the principal (or, if any Securities of that series are discount securities, that portion of the principal amount as may be specified in the terms of that series pursuant to Section 2.01(a)(16)) of (and premium, if any, on) and accrued and unpaid interest, if any, on all the Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable. Notwithstanding the foregoing, the payment of such principal (or, if any Securities of that series are discount securities, that portion of the principal amount as may be specified in the terms of that series pursuant to Section 2.01(a)(16)) of (and premium, if any, on) and accrued and unpaid interest, if any, on the Securities of such series shall remain subordinated to the extent provided in Article XIV.

 

(c)                                  At any time after the principal of the Securities of that series shall have been so declared due and payable, and before a judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the holders of a majority in aggregate principal amount of the Securities of that series then Outstanding hereunder (or, by action at a meeting of holders of the Securities of such series in accordance with Section 8.09, the holders of a majority in aggregate principal amount of the Securities of such series then Outstanding represented at such meeting), by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: (i) the Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of that series and the principal of (and premium, if any, on) any and all Securities of that series that shall have become due otherwise than by acceleration and (ii) any and all Events of Default under this Indenture with respect to such series, other than the nonpayment of 

 

22

 

principal of (and premium, if any, on) and accrued and unpaid interest, if any, on Securities of that series that shall have become due solely because of such acceleration, shall have been remedied, cured or waived as provided in Section 6.06.  No such rescission and annulment shall extend to or shall affect any subsequent default or impair any right consequent thereon.

 

(d)                                 In case the Trustee shall have proceeded to enforce any right with respect to Securities of that series under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case, subject to any determination in such proceedings, the Company, and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall continue as though no such proceedings had been taken.

 

SECTION 6.02               Collection of Indebtedness and Suits for Enforcement by Trustee.

 

(a)                                  The Company covenants that (1) in case it shall default in the payment of any installment of interest on any of the Securities of a series, or any payment required by any sinking or analogous fund established with respect to that series as and when the same shall have become due and payable, and such default shall have continued for a period of 90 Business Days, or (2) in case it shall default in the payment of the principal of (or premium, if any, on) any of the Securities of a series when the same shall have become due and payable, whether upon maturity of the Securities of a series or upon redemption or upon declaration or otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities of that series, the whole amount that then shall have been become due and payable on all such Securities for principal (and premium, if any) or interest, or both, as the case may be, with interest upon the overdue principal (and premium, if any) and (to the extent that payment of such interest is enforceable under applicable law) upon overdue installments of interest at the rate per annum expressed in the Securities of that series; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to the Trustee under Section 7.06.

 

(b)                                 If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or other obligor upon the Securities of that series and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or other obligor upon the Securities of that series, wherever situated.

 

(c)                                  In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial proceedings affected the 

 

23

 

Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings and take any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the Trustee and of the holders of Securities of such series allowed for the entire amount due and payable by the Company under this Indenture at the date of institution of such proceedings and for any additional amount that may become due and payable by the Company after such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and to distribute the same after the deduction of the amount payable to the Trustee under Section 7.06; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Securities of such series to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Securityholders, to pay to the Trustee any amount due it under Section 7.06.

 

(d)                                 All rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to Securities of that series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at any trial or other proceeding relative thereto, and any such suit or 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 payment to the Trustee of any amounts due under Section 7.06, be for the ratable benefit of the holders of the Securities of such series.

 

In case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

 

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

 

SECTION 6.03               Application of Moneys Collected.

 

Any moneys collected by the Trustee pursuant to this Article with respect to a particular series of Securities shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal (or premium, if any) or interest, upon presentation of the Securities of that series, and notation thereon the payment, if only partially paid, and upon surrender thereof if fully paid:

 

24

 

FIRST:                                                        To the payment of costs and expenses of collection and of all amounts payable to the Trustee under Section 7.06;

 

SECOND:                                         To the payment of all Senior Indebtedness of the Company if and to the extent required by Article XIV; and

 

THIRD:                                                    To the payment of the amounts then due and unpaid upon Securities of such series for principal (and premium, if any) and interest, 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 premium, if any) and interest, respectively.

 

SECTION 6.04               Limitation on Suits.

 

No holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless (i) such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof with respect to the Securities of such series specifying such Event of Default, as hereinbefore provided; (ii) the holders of not less than a majority in aggregate principal amount of the Securities of such series then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as trustee hereunder; (iii) such holder or holders shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby; and (iv) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity, shall have failed to institute any such action, suit or proceeding and (v) during such 60 day period, the holders of a majority in principal amount of the Securities of that series (or such amount as shall have acted at a meeting of the holders of Securities of such series pursuant to the provisions of this Indenture) do not give the Trustee a direction inconsistent with the request; provided, however, that no one or more of such holders may use this Indenture to prejudice the rights of another holder or to obtain preference or priority over another holder.

 

Notwithstanding anything contained herein to the contrary, any other provisions of this Indenture, the right of any holder of any Security to receive payment of the principal of (and premium, if any) and interest on such Security, as therein provided, on or after the respective due dates expressed in such Security (or in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Security hereunder it is expressly understood, intended and covenanted by the taker and holder of every Security of such series with every other such taker and holder and the Trustee, that no one or more holders of Securities of such series shall have any right in any manner whatsoever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such Securities, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all 

 

25

 

holders of Securities of such series. For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

 

SECTION 6.05               Rights and Remedies Cumulative; Delay or Omission Not Waiver.

 

(a)                                  Except as otherwise provided in Section 2.07, all powers and remedies given by this Article to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to such Securities.

 

(b)                                 No delay or omission of the Trustee or of any holder of any of the Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or on acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article or by law to the Trustee or the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.

 

SECTION 6.06               Control by Securityholders.

 

The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding, determined in accordance with Section 8.01, 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 such series; provided, however, that such direction shall not be in conflict with any rule of law or with this Indenture or be unduly prejudicial to the rights of holders of Securities of any other series at the time Outstanding determined in accordance with Section 8.01. Subject to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer or Officers of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability.

 

The holders either (a) through the written consent of not less than a majority in aggregate principal amount of the Securities of any series at the time Outstanding or (b) by action at a meeting of holders of the Securities of such series in accordance with Section 8.09, by the holders of a majority in aggregate principal amount of the Securities of such series then Outstanding represented at such meeting, may on behalf of the holders of all of the Securities of such series waive any past default in the performance of any of the covenants contained herein or established pursuant to Section 2.01 with respect to such series and its consequences, except a default in the payment of the principal of, or premium, if any, or interest on, any of the Securities of that series as and when the same shall become due by the terms of such Securities otherwise than by acceleration (unless such default has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been deposited with the Trustee (in accordance with Section 6.01(c)) and except in respect a provision hereof which, under 

 

26

 

Section 9.02, cannot be modified or amended without the consent of the holders of each Outstanding Security affected; provided however that this Section shall not limit the right of holders of Securities of a series to rescind and annul any acceleration as set forth in Section 6.01. Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the holders of the Securities of such series shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. The provisions which otherwise would be automatically deemed to be contained in this Indenture pursuant to Section 316(a)(1) of the Trust Indenture Act are hereby expressly excluded from this Indenture, except to the extent such provisions are expressly included herein.

 

SECTION 6.07               Undertaking to Pay Costs.

 

All parties to this Indenture agree, and each holder of any Securities 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 or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding more than 10% in aggregate principal amount of the Outstanding Securities of any series, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security of such series, on or after the respective due dates expressed in such Security or established pursuant to this Indenture.

 

ARTICLE VII

 

CONCERNING THE TRUSTEE

 

SECTION 7.01               Certain Duties and Responsibilities of Trustee.

 

(a)                                  The Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing of all Events of Default with respect to the Securities of that series that may have occurred, shall undertake to perform with respect to the Securities of such series such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants shall be read into this Indenture against the Trustee. In case an Event of Default with respect to the Securities of a series has occurred (that has not been cured or waived), the Trustee shall exercise with respect to Securities of that series 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.

 

(b)                                 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 

 

27

 

willful misconduct, except that:

 

(1)                                  prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing or waiving of all such Events of Default with respect to that series that may have occurred:

 

(i)                                     the duties and obligations of the Trustee shall with respect to the Securities of such series be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable with respect to the Securities of such series except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

(ii)                                  in the absence of bad faith on the part of the Trustee, the Trustee may with respect to the Securities of such series conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any 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 that 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 or not they conform to the requirement of this Indenture;

 

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

 

(3)                                  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 not less than a majority in principal amount of the Securities of any series at the time Outstanding 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 that series; and

 

(4)                                  None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it.

 

28

 

SECTION 7.02               Certain Rights of Trustee.

 

Except as otherwise provided in Section 7.01:

 

(a)                                  The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security 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, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company, by the President or any Vice President and by the Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer thereof (unless other evidence in respect thereof is specifically prescribed herein);

 

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

 

(d)                                 The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders, pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities that may be incurred therein or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect to a series of the Securities (that has not been cured or waived) to exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and to 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;

 

(e)                                  The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

 

(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, consent, order, approval, bond, security, or other papers or documents, unless requested in writing so to do by the holders of not less than a majority in principal amount of the Outstanding Securities of the particular series affected thereby (determined as provided in Section 8.04); provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security 

 

29

 

afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such costs, expenses or liabilities as a condition to so proceeding. The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand; and

 

(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.

 

SECTION 7.03               Trustee Not Responsible for Recitals or Issuance of Securities.

 

(a)                                  The recitals contained herein and in the Securities shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same.

 

(b)                                 The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities.

 

(c)                                  The Trustee shall not be accountable for the use or application by the Company of any of the Securities or of the proceeds of such Securities, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture or established pursuant to Section 2.01, or for the use or application of any moneys received by any paying agent other than the Trustee.

 

SECTION 7.04               May Hold Securities.

 

                The Trustee or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar.

 

SECTION 7.05               Moneys Held in Trust.

 

Subject to the provisions of Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but 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 moneys received by it hereunder except such as it may agree with the Company to pay thereon.

 

SECTION 7.06               Compensation and Reimbursement.

 

(a)                                  The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled to, such reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust), as the Company, and the Trustee may from time to time agree in writing, for all services rendered by it in the execution of the trusts hereby created and in the exercise and performance of any of the powers and duties hereunder of the 

 

30

 

Trustee, and, except as otherwise expressly provided herein, the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its negligence or bad faith. The Company also covenants to indemnify the Trustee (and its officers, agents, directors and employees) for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on the part of the Trustee and arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim of liability in the premises.

 

(b)                                 The obligations of the Company under this Section to compensate and indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior to that of the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Securities.

 

SECTION 7.07               Reliance on Officers’ Certificate.

 

Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate delivered to the Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture upon the faith thereof.

 

SECTION 7.08               Disqualification; Conflicting Interests.

 

If the Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

 

SECTION 7.09               Corporate Trustee Required; Eligibility.

 

There shall at all times be a Trustee with respect to the Securities issued hereunder which shall at all times be a corporation organized and doing business under the laws of the United States of America or any State or Territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the Commission, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least 50 million U.S. dollars ($50,000,000), and subject to supervision or examination by Federal, State, Territorial, or District of Columbia authority. If such corporation publishes reports of condition 

 

31

 

at least annually, pursuant to law or to the requirements of the aforesaid 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 Company may not, nor may any Person directly or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee.  In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 7.10.

 

SECTION 7.10               Resignation and Removal; Appointment of Successor.

 

(a)                                  The Trustee or any successor hereafter appointed, may at any time resign with respect to the Securities of one or more series by giving written notice thereof to the Company and by transmitting notice of resignation by mail, first class postage prepaid, to the Securityholders of such series, as their names and addresses appear upon the Security Register.  Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee with respect to Securities of such series by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee.  If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the mailing 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 Securities of such series, or any Securityholder of that series who has been a bona fide holder of a Security or Securities for at least six months may on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee.  Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

 

(b)                                 In case at any time any one of the following shall occur:

 

(1)                                  the Trustee shall fail to comply with the provisions of Section 7.08 after written request therefor by the Company or by any Securityholder who has been a bona fide holder of a Security or Securities for at least six months; or

 

(2)                                  the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09 and shall fail to resign after written request therefor by the Company or by any such Securityholder; or

 

(3)                                  the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, 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, the Company may remove the Trustee with respect to all Securities and appoint a successor 

 

32

 

trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, unless the Trustee’s duty to resign is stayed as provided herein, any Securityholder who has been a bona fide holder of a Security or Securities for at least six months may, on behalf of that holder and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

 

(c)                                  The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding may at any time remove the Trustee with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such series with the consent of the Company.

 

(d)                                 Any resignation or removal of the Trustee and appointment of a successor trustee with respect to the Securities of a series pursuant to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.11.

 

(e)                                  Any successor trustee appointed pursuant to this Section may be appointed with respect to the Securities of one or more series or all of such series, and at any time there shall be only one Trustee with respect to the Securities of any particular series.

 

SECTION 7.11               Acceptance of Appointment By Successor.

 

(a)                                  In case of the appointment hereunder of a successor trustee with respect to all Securities, every such successor trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor trustee all the rights, powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor trustee all property and money held by such retiring Trustee hereunder.

 

(b)                                 In case of the appointment hereunder of a successor trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor trustee all the rights, powers, trusts and duties of the retiring 

 

33

 

Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee relates, (2) shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust, 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 that no Trustee shall be responsible for any act or failure to act on the part of any other Trustee hereunder; 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, such retiring Trustee shall with respect to the Securities of that or those series to which the appointment of such successor trustee relates have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations vested in the Trustee under this Indenture, and each such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee relates; but, on request of the Company or any successor trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor trustee, to the extent contemplated by such supplemental indenture, the property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor trustee relates.

 

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

 

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

 

(e)                                  Upon acceptance of appointment by a successor trustee as provided in this Section, the Company shall transmit notice of the succession of such trustee hereunder by mail, first class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security Register. If the Company fails to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be transmitted at the expense of the Company.

 

34

 

SECTION 7.12               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 the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding. In case 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 7.13               Preferential Collection of Claims Against the Company.

 

The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.

 

ARTICLE VIII

 

CONCERNING THE SECURITYHOLDERS

 

SECTION 8.01               Evidence of Action by Securityholders.

 

Whenever in this Indenture it is provided that the holders of a majority or specified percentage in aggregate principal amount of the Securities of a particular series may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action the holders of such majority or specified percentage of that series have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders of Securities of that series in Person or by agent or proxy appointed in writing.

 

If the Company shall solicit from the Securityholders of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option, as evidenced by an Officers’ Certificate, fix in advance a record date for such series for the determination of Securityholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after the record date, but only the Securityholders of record at the close of business on the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of Outstanding Securities of that series have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the 

 

35

 

Outstanding Securities of that series shall be computed as of the record date; provided, however, that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date.

 

SECTION 8.02               Proof of Execution by Securityholders.

 

Subject to the provisions of Section 7.01, proof of the execution of any instrument by a Securityholder (such proof will not require notarization) or his agent or proxy and proof of the holding by any Person of any of the Securities shall be sufficient if made in the following manner:

 

(a)                                  The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the Trustee.

 

(b)                                 The ownership of Securities shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar thereof.

 

(c)                                  The Trustee may require such additional proof of any matter referred to in this Section as it shall deem necessary.

 

SECTION 8.03               Who May be Deemed Owners.

 

Prior to the due presentment for registration of transfer of any Security, the Company, the Trustee, any paying agent and any Security Registrar may deem and treat the Person in whose name such Security shall be registered upon the books of the Company as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Security Registrar) for the purpose of receiving payment of or on account of the principal of, premium, if any, and (subject to Section 2.03) interest on such Security and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary.

 

SECTION 8.04               Certain Securities Owned by Company Disregarded.

 

In determining whether the holders of the requisite aggregate principal amount of Securities of a particular series have concurred in any direction, consent of waiver under this Indenture, the Securities of that series that are owned by the Company or any other obligor on the Securities of that series or by any Person directly or indirectly controlling or controlled by or under common control with the Company or any other obligor on the Securities of that series shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Securities of such series that the Trustee actually knows are so owned shall be so disregarded. The Securities so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other 

 

36

 

obligor. In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.

 

SECTION 8.05               Actions Binding on Future Securityholders.

 

At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action, any holder of a Security of that series that is shown by the evidence to be included in the Securities the holders of which have consented to such action may, by filing written notice with the Trustee, and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such Security. Except as aforesaid any such action taken by the holder of any Security shall be conclusive and binding upon such holder and upon all future holders and owners of such Security, and of any Security issued in exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto is made upon such Security. Any action taken by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all the Securities of that series.

 

SECTION 8.06               Purposes for Which Meetings May Be Called.

 

A meeting of holders of any series of Securities may be called at any time and from time to time pursuant to this Article to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be made, given or taken by holders of such series of Securities.

 

Notwithstanding anything contained in this Article VIII, the Trustee may, during the pendency of a Default or an Event of Default, call a meeting of holders of any series of Securities in accordance with its standard practices.

 

SECTION 8.07               Call Notice and Place of Meetings.

 

(a)                                  The Trustee may at any time call a meeting of holders of any series of Securities for any purpose specified in Section 8.06 hereof, to be held at such time and at such place in The City of New York or Boston, Massachusetts. Notice of every meeting of holders of any series of Securities, setting forth the time and the place of such meeting, in general terms the action proposed to be taken at such meeting and the percentage of the principal amount of the Outstanding Securities of such series which shall constitute a quorum at such meeting, shall be given, in the manner provided in Section 13.04 hereof, not less than 21 nor more than 180 days prior to the date fixed for the meeting to holders of Outstanding Securities of such series.

 

(b)                                 In case at any time the Company, pursuant to a Board Resolution, or the holders of at least 10% in principal amount of the Outstanding Securities of any series shall have requested the Trustee to call a meeting of the holders of Securities of such series for any purpose specified in Section 8.06 hereof, by written request 

 

37

 

setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have made the first publication of the notice of such meeting within 21 days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as provided herein, then the Company or the holders of Securities of such series in the amount specified, as the case may be, may determine the time and the place in The City of New York or Boston, Massachusetts for such meeting and may call such meeting for such purposes by giving notice thereof as provided in paragraph (a) of this Section.

 

SECTION 8.08               Persons Entitled To Vote at Meetings.

 

To be entitled to vote at any meeting of holders of Securities of a given series, a Person shall be (a) a holder of one or more Outstanding Securities of such series or (b) a Person appointed by an instrument in writing as proxy for a holder or holders of one or more Outstanding Securities of such series by such holder or holders. The only Persons who shall be entitled to be present or to speak at any meeting of holders shall be the Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel and any representatives of the Company and its counsel.

 

SECTION 8.09       Quorum; Action.

 

The Persons entitled to vote a majority in aggregate principal amount of the Outstanding Securities of a given series shall constitute a quorum with respect to a meeting of holders of Outstanding Securities of such series. In the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the request of holders of Securities of such series, be dissolved. In any other case, the meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 8.07(a) hereof, except that such notice need be given only once and not less than five days prior to the date on which the meeting is scheduled to be reconvened.

 

At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid, any resolution and all matters (except as limited by the proviso to the first paragraph of Section 9.02 hereof) shall be effectively passed and decided if passed or decided by the Persons entitled to vote not less than a majority in aggregate principal amount of Outstanding Securities of a series represented and voting at such meeting with respect to a meeting of holders of Outstanding Securities of such series.

 

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

 

SECTION 8.10               Determination of Voting Rights; Conduct and Adjournment of Meetings.

 

(a)                                  Notwithstanding any other provisions of this Indenture, the Trustee may make 

 

38

 

such reasonable regulations as it may deem advisable for any meeting of holders of Securities in regard to proof of the holding of Securities and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate.

 

(b)                                 The Trustee shall, by an instrument in writing, appoint a temporary chairman (which may be the Trustee) of the meeting, unless the meeting shall have been called by the Company or by holders of Securities of a given series as provided in Section 8.07(b) hereof, in which case the Company or the holders of Securities of such series calling the meeting, as the case may be, shall in like manner appoint a temporary chairman.  A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in principal amount of the Outstanding Securities of such series represented at the meeting.

 

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

 

(d)                                 Any meeting of holders of Securities duly called pursuant to Section 8.07 hereof at which a quorum is present may be adjourned from time to time by Persons entitled to vote a majority in principal amount of the Outstanding Securities of the series in respect of which such meeting is being held represented at the meeting, and the meeting may be held as so adjourned without further notice.

 

SECTION 8.11               Counting Votes and Recording Action of Meetings.

 

The vote upon any resolution submitted to any meeting of holders of Securities of a given series shall be by written ballots on which shall be subscribed the signatures of the holders of Securities of such series or of their representatives by proxy and the principal amounts and serial numbers of the Outstanding Securities of such series held or represented by them.  The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting.  A record, at least in duplicate, of the proceedings of each meeting of holders of Securities of such series shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was given as provided in Section 8.07 hereof and, if applicable, Section 8.09 hereof. Each copy shall be signed and verified by the affidavits of 

 

39

 

the permanent chairman and secretary of the meeting and one such copy shall be delivered to the Company and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.  Any record so signed and verified shall be conclusive evidence of the matters therein stated.

 

ARTICLE IX

 

SUPPLEMENTAL INDENTURES

 

SECTION 9.01               Supplemental Indentures Without the Consent of Securityholders.

 

In addition to any supplemental indenture otherwise authorized by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect), without the consent of the Securityholders, for one or more of the following purposes:

 

(a)                                  cure any ambiguity, correct or supplement any provision herein which may be inconsistent with any other provision herein or which is otherwise defective, or make any other provisions with respect to matters or questions arising under this Indenture which the Company and the Trustee may deem necessary or desirable and which shall not be inconsistent with the provisions of this Indenture;

 

(b)                                 to comply with Article X;

 

(c)                                  to provide for uncertificated Securities in addition to or in place of certificated Securities;

 

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

 

(e)                                  to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of issue, authentication, and delivery of Securities, as herein set forth;

 

(f)                                    to make any change that does not adversely affect the rights of any Securityholder in any material respect;

 

(g)                                 to provide for the issuance of and establish the form and terms and conditions of the Securities of any series as provided in Section 2.01, to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or any series of Securities, or to add to the rights of the holders of any series of Securities; or

 

(h)                                 comply with the requirements of the Commission in order to effect or maintain 

 

40

 

the qualification of this Indenture under the Trust Indenture Act.

 

The Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

Any supplemental indenture authorized by the provisions of this Section may be executed by the Company and the Trustee without the consent of the holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.

 

SECTION 9.02               Supplemental Indentures With Consent of Securityholders.

 

With the written consent of the holders of at least a majority in aggregate principal amount of the Outstanding Securities of any series or by action at a meeting of holders of the Securities of such series in accordance with Section 8.09, by the holders of a majority in aggregate principal amount of the Securities of such series then Outstanding represented at such meeting, the Company, when authorized by Board Resolutions, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not covered by Section 9.01 the rights of the holders of the Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the holders of each Security then Outstanding and affected thereby, (i) extend the fixed maturity of any Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, (ii) reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture, or any consent or waiver, (iii) reduce the principal amount of discount securities payable upon acceleration of the maturity of any Securities of any series or (iv) make the principal of or premium or interest on any Security of a series payable in currency or currency units other than that stated in the Securities of such series.

 

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

 

SECTION 9.03               Effect of Supplemental Indentures.

 

Upon the execution of any supplemental indenture pursuant to the provisions of this Article or of Section 10.01, this Indenture shall, with respect to such series, be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Securities of the series affected thereby shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the 

 

41

 

terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

 

SECTION 9.04               Securities Affected by Supplemental Indentures.

 

Securities of any series affected by a supplemental indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article or of Section 10.01, may bear a notation in form approved by the Company, provided such form meets the requirements of any exchange upon which such series may be listed, as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new Securities of that series so modified as to conform, in the opinion of the Board of Directors of the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for the Securities of that series then Outstanding.

 

SECTION 9.05               Execution of Supplemental Indentures.

 

Upon the request of the Company, accompanied by its Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental indenture.  The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article is authorized or permitted by, and conforms to, the terms of this Article and that it is proper for the Trustee under the provisions of this Article to join in the execution thereof; provided, however, that such Opinion of Counsel need not be provided in connection with the execution of a supplemental indenture that establishes the terms of a series of Securities pursuant to Section 2.01 hereof.

 

Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class postage prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to the Securityholders of all series affected thereby as their names and addresses appear upon the Security Register. Any failure of the Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

 

ARTICLE X

 

SUCCESSOR ENTITY

 

SECTION 10.01             Company May Consolidate, Etc.

 

Nothing contained in this Indenture or in any of the Securities shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with the Company) or successive consolidations or mergers in which the Company or its 

 

42

 

successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor or successors as an entirety, or substantially as an entirety, to any other corporation (whether or not affiliated with the Company or its successor or successors) authorized to acquire and operate the same; provided, however, the Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction), sale, conveyance, transfer or other disposition, the due and punctual payment of the principal of (premium, if any) and interest on all of the Securities of all series in accordance with the terms of each series, according to their tenor and the due and punctual performance and observance of all the covenants and conditions of this Indenture with respect to each series or established with respect to such series pursuant to Section 2.01 to be kept or performed by the Company shall be expressly assumed, by supplemental indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect) satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such property.

 

SECTION 10.02             Successor Entity Substituted.

 

(a)                                  In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the principal of, premium, if any, and interest on all of the Securities of all series Outstanding and the due and punctual performance of all of the covenants and conditions of this Indenture or established with respect to each series of the Securities pursuant to Section 2.01 to be performed by the Company with respect to each series, such successor entity shall succeed to and be substituted for the Company with the same effect as if it had been named as the Company herein, and thereupon the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the Securities.

 

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

 

(c)                                  Nothing contained in this Article shall require any action by the Company in the case of a consolidation or merger of any Person into the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Company).

 

SECTION 10.03             Evidence of Consolidation, Etc. to Trustee.

 

The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or other disposition, and any such assumption, comply with the provisions of this Article.

 

43

 

ARTICLE XI

 

SATISFACTION AND DISCHARGE

 

SECTION 11.01             Satisfaction and Discharge of Indenture.

 

If at any time:  (a) the Company shall have delivered to the Trustee for cancellation all Securities of a series theretofore authenticated (other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.07) and Securities for whose payment money or Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company (and thereupon repaid to the Company or discharged from such trust, as provided in Section 11.05); or (b) all such Securities of a particular series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as trust funds the entire amount in moneys or Governmental Obligations sufficient or a combination thereof, sufficient (assuming that no tax liability will be imposed on the Trustee) in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon redemption all Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder with respect to such series by the Company then this Indenture shall thereupon cease to be of further effect with respect to such series except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall survive until the date of maturity or redemption date, as the case may be, and Sections 7.06 and 11.05, that shall survive to such date and thereafter, and the Trustee, on demand of the Company and at the cost and expense of the Company shall execute proper instruments acknowledging satisfaction of and discharging this Indenture with respect to such series.

 

SECTION 11.02             Discharge of Obligations.

 

If at any time all such Securities of a particular series not heretofore delivered to the Trustee for cancellation or that have not become due and payable as described in Section 11.01 shall have been paid by the Company by depositing irrevocably with the Trustee as trust funds moneys or an amount of Governmental Obligations sufficient to pay at maturity or upon redemption all such Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder by the Company with respect to such series, then after the date such moneys or Governmental Obligations, as the case may be, are deposited with the Trustee the obligations of the Company under this Indenture with respect to such series shall cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07, 4,01, 4.02, 4,03, 7.06, 7.10 and 11.05 hereof that shall survive until such Securities shall mature and be paid. Thereafter, Sections 7.06 and 11.05 shall survive.

 

44

 

SECTION 11.03             Deposited Moneys to be Held in Trust.

 

Subject to Section 11.05, all moneys or Governmental Obligations deposited with the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be available for payment as due, either directly or through any paying agent (including the Company acting as its own paying agent), to the holders of the particular series of Securities for the payment or redemption of which such moneys or Governmental Obligations have been deposited with the Trustee.

 

SECTION 11.04             Payment of Moneys Held by Paying Agents.

 

In connection with the satisfaction and discharge of this Indenture all moneys or Governmental Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys or Governmental Obligations.

 

SECTION 11.05             Repayment to Company.

 

Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then held by the Company, in trust for payment of principal of or premium or interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such Securities for two years after the date upon which the principal of (and premium, if any) or interest on such Securities shall have respectively become due and payable, shall be repaid to the Company or (if then held by the Company) shall be discharged from such trust in each case, promptly after the end of any such two-year period or, at the request of the Company, on a later date specified by the Company; and thereupon the paying agent and the Trustee shall be released from all further liability with respect to such moneys or Governmental Obligations, and the holder of any of the Securities entitled to receive such payment shall thereafter, as an unsecured general creditor, look only to the Company for the payment thereof.

 

ARTICLE XII

 

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

 

SECTION 12.01             No Recourse.

 

No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Company or of any predecessor or successor corporation, either directly or through the Company or any such predecessor or successor corporation, 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 this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors as such, of the Company or of any predecessor or successor corporation, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained 

 

45

 

in this Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Securities.

 

ARTICLE XIII

 

MISCELLANEOUS PROVISIONS

 

SECTION 13.01             Effect on Successors and Assigns.

 

All the covenants, stipulations, promises and agreements in this Indenture contained by or on behalf of the Company shall bind its successors and assigns, whether so expressed or not.

 

SECTION 13.02             Actions by Successor.

 

Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the corresponding board, committee or officer of any corporation that shall at the time be the lawful successor of the Company.

 

SECTION 13.03             Surrender of Company Powers.

 

The Company by instrument in writing executed by authority of its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the Company, and thereupon such power so surrendered shall terminate both as to the Company and as to any successor corporation.

 

SECTION 13.04             Notices.

 

Except as otherwise expressly provided herein any notice or demand that by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the holders of Securities to or on the Company may be given or served by being deposited first class postage prepaid in a post-office letterbox addressed (until another address is filed in writing by the Company with the Trustee), as follows:  [   ].  Any notice, election, request or demand by the Company or any Securityholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.  Any notice or communication to a holder shall be mailed by first-class mail to his address shown on the Security Register kept by the Security Registrar.  Failure to mail a notice or communication to a holder or any defect in such notice or communication shall not affect its sufficiency with respect to other holders.  If a notice or communication is mailed or sent in the manner provided above within the time prescribed, it is duly given as of the date it is mailed, whether or not the addressee receives it, except that notice to the Trustee or the Company shall only be effective upon receipt thereof by the Trustee or the Company, respectively. If the 

 

46

 

Company mails a notice or communication to holders of Securities, it shall mail a copy to the Trustee at the same time.

 

SECTION 13.05             Governing Law.

 

This Indenture and each Security shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State.

 

SECTION 13.06             Treatment of Securities as Debt.

 

It is intended that the Securities will be treated as indebtedness and not as equity for federal income tax purposes.  The provisions of this Indenture shall be interpreted to further this intention.

 

SECTION 13.07             Compliance Certificates and Opinions.

 

(a)                                  Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company, shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent 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 have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.

 

(b)                                 Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant in this Indenture shall include (1) a statement that the Person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; (3) a statement that, in the opinion of such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

 

SECTION 13.08             Payments on Business Days.

 

Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and as set forth in an Officers’ Certificate, or established in one or more indentures supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Security or the date of redemption of any Security shall not be a Business Day, then payment of interest or principal (and premium, if any) may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue for the period after such nominal date.

 

47

 

SECTION 13.09             Conflict with Trust Indenture Act.

 

If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control.

 

SECTION 13.10             Counterparts.

 

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

 

SECTION 13.11             Separability.

 

In case any one or more of the provisions contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

 

SECTION 13.12             Assignment.

 

The Company will have the right at all times to assign any of its rights or obligations under this Indenture to a direct or indirect wholly-owned Subsidiary of the Company, provided that, in the event of any such assignment, the Company, will remain liable for all such obligations. Subject to the foregoing, this Indenture is binding upon and inures to the benefit of the parties thereto and their respective successors and assigns. This Indenture may not otherwise be assigned by the parties thereto.

 

ARTICLE XIV

 

SUBORDINATION OF SECURITIES

 

SECTION 14.01             Subordination Terms.

 

The payment by the Company of the principal of, premium, if any, and interest on any series of Securities issued hereunder shall be subordinated to the extent set forth in an indenture supplemental hereto relating to the Securities of such series.

 

48

 

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

 

	
 
    	
SYNTA   PHARMACEUTICALS CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[                                                ],
    
	
 
    	
As   Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

49Exhibit 10.3

 

EXHIBIT 1

 

BASIC PROVISIONS

AND

LEASE REFERENCE DATA

 

	
Execution   Date:
    	
 
    	
June 9,   2011
    
	
 
    	
 
    	
 
    
	
TENANT
    	
 
    	
SYNTA   PHARMACEUTICALS CORP.
    
	
and   Original Address:
    	
 
    	
(name)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
a   Delaware corporation
    
	
 
    	
 
    	
(description   of business organization)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
125   Hartwell Avenue, Lexington, MA 02421
    
	
 
    	
 
    	
(Principal   place of business — original address)
    
	
 
    	
 
    	
 
    
	
LANDLORD
    	
 
    	
 
    
	
and   Original Address:
    	
 
    	
125   Hartwell Trust, under Declaration of Trust dated February 20, 1980 and   filed with the Middlesex South Registry District of the Land Court as   Document No. 600788, as amended; Mailing Address - c/o Lexington   Management Incorporated, 24 Hartwell Avenue, Lexington, MA 02421, Attention:   President.
    
	
 
    	
 
    	
 
    
	
BUILDING:
    	
 
    	
The   building in the Town of Lexington, Middlesex County, Massachusetts known as   and numbered 125 Hartwell Avenue.
    
	
 
    	
 
    	
 
    
	
PROPERTY:
    	
 
    	
The   Building and the land parcel on which it is located (including adjacent   sidewalks).
    
	
 
    	
 
    	
 
    
	
COMMENCEMENT   DATE:
    	
 
    	
See   Section 5
    
	
 
    	
 
    	
 
    
	
TERM:
    	
 
    	
The   period commencing on the Commencement Date and expiring on November 30,   2016, as the same may be extended as hereinafter provided.
    
	
 
    	
 
    	
 
    
	
PREMISES   DESCRIPTION AND AREA:
    	
 
    	

   The entire rentable area of the Building containing approximately 38,400   rentable square feet and substantially as shown on Exhibit 2, comprised   of the following: (i) effective as of and from and after   December 1, 2011, approximately 27,992 rentable square feet on the first   and second floors of the Building currently demised by Tenant under the   Existing Lease (as defined below)  (the “Existing
    

 

 

	
 
    	
 
    	
Premises”), and   (ii) effective as of and from and after the Commencement Date in respect   of the Expansion Premises, approximately 10,408 rentable square feet on the   first floor of the Building labeled on Exhibit 2 as the “Synta Expansion   Space” (the “Expansion Premises”), which was previously demised by Landlord   to IBS America, Inc. (“IBS”). For purposes hereof, the term “Premises”   as used herein shall mean (a) the Expansion Premises for the period   commencing on the Commencement Date in respect of the Expansion Premises and   ending on November 30, 2011, and (b) both the Expansion Premises   and the Existing Premises from and after December 1, 2011.
    
	
 
    	
 
    	
 
    
	
BUILDING   RENTABLE AREA:
    	
 
    	
38,400   square feet.
    
	
 
    	
 
    	
 
    
	
BASIC   RENT:
    	
 
    	
Commencement   Date in respect of the Expansion Premises — November 30, 2011: $0.00
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
December 1,   2011 – November 30, 2014: $844,800.00 per year (i.e., $70,400.00 per   month), which is based upon a Basic Rent rental rate of $22.00 per rentable   square foot of the Premises
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
December 1,   2014 – November 30, 2016: $883,200.00 per year (i.e., $73,600.00 per   month), which is based upon a Basic Rent rental rate of $23.00 per rentable   square foot of the Premises
    
	
 
    	
 
    	
 
    
	
PERMITTED   USES:
    	
 
    	
Office,   research and development (including, without limitation, use of a vivarium);   engineering, education and training of Tenant’s customers and employees;   light assembly and manufacturing; processing, packaging, marketing, sales and   all other uses or activities incidental or related thereto.
    
	
 
    	
 
    	
 
    
	
TENANT’S   PROPORTIONATE SHARE:
    	
 
    	

   For the period from the Commencement Date in respect of the Expansion   Premises through November 30, 2011, 27.10%; and 100.00% thereafter
    
	
 
    	
 
    	
 
    
	
BUILDING   EXPENSE BASE:
    	
 
    	
The   amount of Building Expenses (as hereinafter defined) for calendar year 2011.
    
	
 
    	
 
    	
 
    
	
BROKER:
    	
 
    	
Richards   Barry Joyce & Partners, LLC
    
	
 
    	
 
    	
 
    
	
LANDLORD’S   AGENT:
    	
 
    	
Lexington   Management Incorporated, 24 Hartwell Avenue, Lexington, MA 02421
    

 

2

 

LEASE

 

THIS INSTRUMENT IS A LEASE, dated as of the Execution Date stated in Exhibit 1, in which Landlord and Tenant are the parties named in said Exhibit, and which relates to space in the Building.  The parties to this instrument hereby agree with each other as follows:

 

1.                                       Reference Data.  All Exhibits attached to this Lease are hereby incorporated herein and made a part hereof.

 

2.                                      Lease of Premises.  Landlord hereby demises and leases to Tenant for the Term of this Lease and upon the terms and conditions hereinafter set forth, and Tenant hereby accepts from Landlord, the Premises described in Exhibit 1 and shown on Exhibit 2.  Excepted and excluded from the Premises are the ceiling, floor, perimeter walls and exterior windows, except the inner surfaces of each thereof, but the interior entry doors (and related interior glass and finish work) to the Premises are a part thereof; and Tenant agrees that Landlord shall have the right to place in the Premises (but in such manner so as to minimize interference with Tenant’s use of the Premises) utility lines, pipes, equipment and the like, in, over, upon and through the Premises, provided that such items are located in the central core of the Building, above ceiling surfaces, below floor surfaces and within perimeter walls, no reduction in square footage of the Premises shall result, and Landlord shall provide Tenant with reasonable advance notice of the foregoing.  Tenant shall install and maintain, as Landlord may reasonably require, proper access panels in any hung ceilings or walls as may be installed by Tenant in the Premises to afford access to any facilities above the ceiling or within or behind the walls.  Tenant shall have as appurtenant to the Premises the exclusive use, subject to the exercise by Landlord of its rights and the performance by Landlord of its obligations hereunder, of the lobby, restrooms and hallways of the Building and the walks leading to and from the Building and the parking lot and loading dock serving the Building; provided, however, that such exclusive use shall not entitle Tenant to improve, alter, modify or otherwise change such lobby, restrooms, hallways, walks, parking lot, loading dock or any other portion of the Property (other than the Premises, and then only if the applicable provisions of this Lease are complied with) without Landlord’s prior written consent.  Notwithstanding the number of parking spaces that shall be made available to Tenant hereunder, Landlord hereby makes no representation or warranty that such spaces will be sufficient to satisfy Tenant’s parking requirements in connection with Tenant’s use of the Premises.  Tenant shall have no other appurtenant rights or easements.

 

3.                                       Basic Rent.  Tenant agrees to pay to Landlord, commencing on the Commencement Date in respect of the Expansion Premises without offset, abatement (except as provided in Sections 13 and 20), deduction or demand, the Basic Rent set forth in Exhibit 1.  Such Basic Rent shall be payable in equal monthly installments, in advance, on the first day of each calendar month during the Term of this Lease, c/o Lexington Management Incorporated, 24 Hartwell Avenue, Lexington, MA 02421 or to such other address as Landlord shall from time to time designate by notice.  In the event that any installment of Basic Rent or Building Expense Escalation Charges is not paid within five (5) days after the same shall have become due, Tenant shall pay, in addition to 

 

3

 

any charges under Section 30, at Landlord’s request an administrative fee equal to 5% of the overdue payment.  Basic Rent for any partial month shall be prorated on a daily basis.

 

4.                                       Existing Lease.  Reference is hereby made to that certain Lease dated October 26, 1992, as amended (the “Existing Lease”) pursuant to which Landlord demises the Existing Premises to Tenant.  The parties hereby acknowledge and agree that the Existing Lease shall terminate and come to an end as of its currently scheduled expiration date of November 30, 2011 (the “Existing Lease Termination Date”), and until then (and notwithstanding anything to the contrary contained herein) the demise of the Existing Premises shall continue to be governed by the terms and provisions of the Existing Lease; provided, however, that the terms and provisions of this Lease (including, without limitation, Section 8 hereof) shall apply to any Tenant’s Work (as hereinafter defined) performed in the Existing Premises after the date hereof and prior to December 1, 2011.  Rent and other charges payable under the Existing Lease shall be apportioned as of the Existing Lease Termination Date.  As of and from and after December 1, 2011, the demise of the Existing Premises shall be governed by the terms and provisions of this Lease.  For the avoidance of doubt, it is understood and agreed that (i) only the Expansion Premises shall be demised under and pursuant to the terms and provisions of this Lease for the period commencing on the Commencement Date in respect of the Expansion Premises and ending on November 30, 2011, and (ii) as of and from and after December 1, 2011, the entire Premises shall be demised under and pursuant to the terms and provisions of this Lease.

 

5.                                       Commencement Date.  The Commencement Date of this Lease shall be (i) with respect to the Expansion Premises, the Execution Date set forth in Exhibit 1, and (ii) with respect to the Existing Premises, December 1, 2011.

 

6.                                       Condition of the Premises.

 

(a)                                  Tenant acknowledges and agrees that it has had an opportunity to inspect the Premises and the Building and that it is taking and leasing the Premises “as-is”, without any obligation on the part of Landlord to prepare or construct the Premises for Tenant’s use or occupancy or to provide any allowance or contribution with respect thereto.  Tenant further acknowledges and agrees that Landlord has made no representation or warranty as to the condition of the Premises or the Building and that it is relying upon its own inspection of the Premises and the Building in entering into this Lease.  To the extent and insofar as there is any work required to prepare the Premises for Tenant’s occupancy (“Tenant’s Work”), the same shall be performed by Tenant at its sole cost and expense (subject to application of Landlord’s Contribution, as hereinafter defined) in accordance with plans and specifications therefor prepared by Tenant and approved by Landlord and otherwise in accordance with the terms and provisions of this Lease, including, without limitation, Section 8 hereof.

 

(b)                                 Notwithstanding the foregoing, provided that Tenant is not in default under this Lease and that there is no outstanding violation of law or lien affecting the Property by reason of Tenant’s Work, Landlord shall contribute up to $192,000.00 (i.e., $5.00 per square foot of rentable area of the Premises) (“Landlord’s Contribution”) towards the following costs (the “Costs”) incurred by Tenant to perform Tenant’s Work: costs of space planning, design, engineering, project management services and construction, and costs to install the Nitrogen Storage Tanks  (as 

 

4

 

hereinafter defined).  Landlord shall pay Landlord’s Contribution within forty-five (45) days after receipt from Tenant of evidence of the completion of Tenant’s Work (including, without limitation, an architect’s certificate of completion), a certificate of occupancy and copies of paid bills and invoices (and related lien waivers and such other documentation as Landlord shall reasonably request) detailing all of the Costs of Tenant’s Work.  Notwithstanding anything to the contrary herein contained, (i) up to $7,500.00 of Landlord’s Contribution may be applied by Tenant towards its costs to acquire IBS’s cubicle system currently in the Expansion Premises, (ii) in no event shall Tenant be entitled to Landlord’s Contribution if Tenant’s requisition therefor is submitted after November 30, 2012, and (iii) in no event shall Tenant be entitled to any unused portion of Landlord’s Contribution.

 

7.                                       Use.  Tenant agrees that it shall use and occupy the Premises during the Term only for Permitted Uses expressly described in Exhibit 1 and for no other purposes.  Tenant shall, in its use of the Premises, comply with the requirements of all applicable federal, state and local laws, ordinances, regulations and codes, and shall obtain (and keep in full force and effect) all required licenses and permits therefor.  Tenant shall not permit any use of the Premises which will make voidable any insurance on the Property, or on the contents of the Property, or which shall be contrary to any law or regulation from time to time established by the New England Fire Insurance Rating Association, or any similar body succeeding to its powers.  Tenant shall within ten (10) days after demand reimburse Landlord for all extra insurance premiums caused by Tenant’s use of the Premises other than for Permitted Uses.  If any governmental license or permit shall be required for the proper and lawful conduct of Tenant’s business, Tenant, at its expense, shall duly procure and thereafter maintain and comply with such license or permit and submit the same to inspection by Landlord.  To the extent necessary to obtain such license or permit, Landlord agrees to cooperate with Tenant at Tenant’s expense in procuring such license or permit.

 

8.                                       Installations and Alterations by Tenant.  Tenant shall make no alterations, additions or improvements (“Alterations”, which term shall include Tenant’s Work) in or to the Premises without Landlord’s prior written consent in each instance, which consent shall not be unreasonably withheld, conditioned or delayed.  Without limiting the foregoing, Landlord hereby agrees that Tenant shall have the right to convert the area of the Premises containing cubicles into offices, subject to the terms and provisions of this Section 8 and the other applicable provisions of this Lease.  Tenant shall submit to Landlord plans and specifications of the proposed Alterations at the time of its request for Landlord’s consent, and upon completion of such Alterations shall promptly deliver to Landlord “as-built” plans and specifications thereof certified as being true and correct by Tenant’s architect or engineer.  All Alterations shall conform to the plans and specifications approved by Landlord, and any deviations to such plans or specifications shall first be approved by Landlord.  All contractors performing Alterations shall be subject to Landlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that Landlord shall have the right to recommend that Tenant use contractors specified by Landlord to perform certain Alterations, but Tenant shall not be obligated to use such contractors (it being understood and agreed, however, that this proviso shall not be deemed to relieve Tenant of the obligation to obtain Landlord’s prior written approval of the contractors performing Alterations, as aforesaid).  Each such contractor(s) shall carry commercial general liability and property damage insurance, and such other insurance (including, without limitation, workmen’s compensation insurance covering the employees of all such contractor(s)), in such form, amounts 

 

5

 

and with such carriers as are reasonably acceptable to Landlord, and under which Landlord (and such other persons as Landlord may designate from time to time) are named as insureds.  Tenant shall pay to Landlord from time to time upon demand any and all costs and expenses incurred by Landlord in connection with the review and supervision of any Alterations (including, without limitation, the cost and expenses of Landlord’s architects and engineers).  Any such Alterations shall become part of the Premises and the property of Landlord, unless Landlord, at its election, requests Tenant to remove such Alterations at the expiration of the Term of this Lease, in which event Tenant shall remove the same and repair any damage caused by such removal.  Notwithstanding the foregoing to the contrary, (a) Landlord’s request to remove any Alterations at the expiration of this Lease must be made at the time Landlord consents to such Alterations if Tenant’s request for Landlord’s consent to such Alterations also contained a request for Landlord to make such election at that time, provided, however, that in no event shall Landlord request Tenant to remove, nor shall Tenant be required to remove, at the expiration of this Lease any internal walls or offices constructed by Tenant in the Expansion Premises as part of Tenant’s Work, and (b) unless otherwise agreed by Landlord and Tenant in writing, in no event shall articles of personal property, business fixtures, machinery, equipment or furniture owned or installed by Tenant become the property of Landlord (except that the Nitrogen Storage Tanks shall, if and to the extent provided in Section 40 below, remain in place and become the property of Landlord at the expiration of the Term of this Lease).  Tenant shall promptly remove or bond over any mechanic’s lien that may be filed against the Property based upon any such work in or to the Premises.  If Tenant shall make or cause to be made any Alterations to the Premises which shall result in an increase in the real estate taxes upon the Building, then Tenant shall pay the entire increase in such taxes attributable to such Alterations. Tenant shall cause all Alterations to be performed in a good and workmanlike manner and in compliance with all applicable laws.

 

9.                                       Assignment and Subletting.

 

(a)                                  Tenant covenants and agrees that whether voluntarily, involuntarily, by operation of law or otherwise, neither this Lease nor the term and estate hereby granted, nor any interest herein or therein, will be assigned, mortgaged, pledged, encumbered or otherwise transferred and that neither the Premises nor any part thereof will be encumbered in any manner by reason of any act or omission on the part of Tenant, or used or occupied, or permitted to be used or occupied, by anyone other than Tenant, or for any use or purpose other than a Permitted Use, or be sublet (which term, without limitation, shall include granting of concessions, licenses and the like) in whole or in part, or be offered or advertised for assignment or subletting, in each case without the prior written consent of Landlord which shall not be unreasonably withheld, conditioned or delayed if such assignee, subtenant or other occupant, in Landlord’s reasonable opinion, (i) is (and shall be) financially sound and of good reputation, (ii) shall use the Premises for the Permitted Uses or any biotechnology use acceptable to Landlord, (iii) is not already an occupant of the Building, and (iv) is not then in (and has not within the previous six (6) month period been in) negotiations with Landlord for or otherwise been shown space in the Building.

 

(b)                                 The provisions of paragraph (a) of this Section shall apply to a transfer (by one or more transfers) of a majority of the stock or partnership interests, or other evidences of ownership, of Tenant as if such transfer were an assignment  of this Lease; but such provisions shall not apply to (and Landlord’s consent shall not be required for) transactions (each, a “Permitted Transfer”) 

 

6

 

with an entity into or with which Tenant is merged or consolidated or to which all or substantially all of Tenant’s assets are transferred or to any entity which controls or is controlled by Tenant or is under common control with Tenant, provided that in any of such events (i) no default of Tenant then exists under this Lease, (ii) reasonable prior written notice thereof is given to Landlord, (iii) the successor to Tenant has a net worth computed in accordance with generally accepted accounting principles at least equal to the greater of (A) the net worth of Tenant immediately prior to such merger, consolidation or transfer, or (B) the net worth of Tenant herein named on the date of this Lease, (iv) proof satisfactory to Landlord of such net worth shall have been delivered to Landlord at least ten (10) days prior to the effective date of any such transaction, and (v) in the event of an assignment of this Lease, the assignee agrees directly with Landlord, by written instrument in form reasonably satisfactory to Landlord, to be bound by all the obligations of Tenant hereunder arising on and after the date of such assignment, including, without limitation, the provisions of this Section 9.

 

(c)                                  If this Lease be assigned, or if the Premises or any part thereof be sublet or occupied by anyone other than Tenant, Landlord may, at any time and from time to time, collect rent and other charges from the assignee, subtenant or occupant, and apply the net amount collected to the rent and other charges herein reserved, but no such, assignment, subletting, occupancy (or Landlord’s consent to any of the foregoing), collection or modification of any provisions of this Lease agreed to between Landlord and any assignee, or the listing of any name other than that of Tenant on the door of the Premises or on the exterior Building wall(s) or elsewhere, shall be deemed a waiver of this covenant, or the acceptance of the assignee, subtenant or occupant as a tenant or a release of the original named Tenant from the further performance by the original named Tenant hereunder.  No assignment or subletting hereunder nor Landlord’s consent thereto shall relieve Tenant from its obligations under this Lease and Tenant shall remain fully and primarily liable therefor.  No assignment, subletting or occupancy shall affect Permitted Uses.  Tenant hereby agrees to reimburse Landlord for the reasonable amount of any legal and other out-of-pocket expenses incurred by Landlord in connection with any request by Tenant for Landlord’s consent required under this Section 9, whether or not such consent is granted, or in connection with any transfer or assignment permitted by paragraph (b) above.  Without limiting any of the foregoing provisions of this Section 9, Landlord shall in all events, other than a Permitted Transfer, have the right to (i) terminate this Lease in its entirety in the event of any proposed assignment by Tenant of its interest in this Lease or any proposed subletting of the entire Premises for the remainder of the Term of this Lease, or (ii) terminate this Lease as to the proposed sublet space in the event of any proposed sublease of less than the entire Premises for the remainder of the Term of this Lease.  In the event that Landlord shall exercise its right pursuant to the preceding sentence, Landlord and Tenant shall enter into an amendment to this Lease, in commercially reasonable form prepared by and acceptable to Landlord, implementing clause (i) or (ii) above, as applicable.

 

(d)                                 In the event that Tenant assigns or transfers this Lease or subleases all or any part of the Premises, Tenant shall pay to Landlord (as additional rent) thirty-three percent (33%) of the Profits (as herein defined), if any, earned by Tenant in connection with such assignment, transfer or sublease, as and when received by Tenant.  For purposes hereof, “Profits” shall mean the excess, if any, of (i) the rent and additional rent (including, without limitation, payments on account of escalation) and other consideration received by Tenant on account of or in connection with the 

 

7

 

assignment, transfer or subletting in question over (ii) the rent and additional rent (including, without limitation, payments on account of escalation) payable by Tenant under this Lease in respect of the Premises or portion thereof in question (calculated on a square foot basis in the case of less than all of the Premises).  Profits shall be calculated on a gross basis as aforesaid, without regard to the costs and expenses incurred by Tenant in connection with the assignment, transfer or subletting in question or in connection with entering into this Lease or preparing the Premises for occupancy by Tenant or by any assignee or sublessee.

 

10.                                 Repairs and Maintenance by Landlord.  Landlord shall maintain, make all repairs to and when necessary replace the following items, in each case so that they are at all times in good working and efficient order and condition throughout the Term: (i) the roof and gutters of the Building, including the two (2) existing fifty (50) ton McQuay roof-top units that service the Premises other than Tenant’s laboratory areas (the “Main RTUs”), but specifically excluding any roof-top equipment serving the laboratory and/or other portions of the Premises installed prior to, on or after the date hereof by or on behalf of Tenant, which installation on or after the date hereof shall be subject to Landlord’s prior written consent and to the other provisions of Section 8 above; (ii) all bathrooms and bathroom exhaust fans in the Building; (iii) the footings, foundations and structural support elements and exterior cladding (including glazing) of the Building, except to the extent that Tenant’s roof-top or other equipment or Alterations requires additional structural support, in which event Tenant shall be responsible for same, including, without limitation, the costs thereof; (iv) the exterior windows of the Building (and framing thereto); (v) the heating, ventilation and air conditioning (“HVAC”), electrical and plumbing systems and related utility lines serving the Building, the Premises and the Property (specifically excluding any special or supplemental HVAC or other system and any related utility lines (including, without limitation, any system that is associated with the Nitrogen Storage Tanks and/or any of Tenant’s generators) installed prior to, on or after the date hereof by or on behalf of Tenant, which installation on or after the date hereof shall be subject to Landlord’s prior written consent and to the other provisions of Section 8 above); and (vi) the parking lot serving the Building and the lighting serving the same.  Landlord’s obligations under this Section 10 shall be subject to the provisions of Section 20.  Notwithstanding the foregoing, Landlord shall not be obligated to make repairs which Landlord has undertaken to make under this Lease unless Tenant has given notice to Landlord or Landlord otherwise has actual knowledge of the need to make such repairs.

 

11.                                 Repairs and Maintenance by Tenant.  Tenant shall keep and maintain all items excluded from Landlord’s maintenance and repair obligations under clauses (i), (iii) and (v) of Section 10 above and all portions of the Premises that are not Landlord’s obligation to maintain under Section 10 above (including, without limitation, the interior surface of the walls, ceilings and floors of the Premises, the internal wiring and plumbing (other than sanitary plumbing) for Tenant’s laboratory space and any Alterations installed in the Premises by or on behalf of Tenant) in a broom clean and orderly condition, free of accumulation of dirt, rubbish and other debris and otherwise in the same or better condition and repair as existed on the Commencement Date, reasonable wear and tear and damage by fire or other casualty excepted.  Without limiting the foregoing, Tenant shall, at its expense, contract with a reputable contractor approved in advance by Landlord to perform annual spring inspections throughout the Term of all roof-top equipment serving the laboratory and/or other portions of the Premises installed prior to, on or after the date hereof by or on behalf of Tenant.  Notwithstanding the provisions of Sections 10 and 20, but 

 

8

 

subject to the provisions of Section 15, Tenant shall be responsible up to the amount of Landlord’s commercially reasonable deductible (not to exceed $25,000.00) for the cost of repairs which may be made necessary by reason of damage to the Building caused by any act or neglect of Tenant or its agents, employees, contractors or invitees (including any damage by fire or any other casualty arising therefrom).

 

12.                                 Services, Utilities, Supplies and Facilities.

 

(a)                                  In addition to the repair and maintenance by Landlord as stated in Section 10 hereof, Landlord shall furnish the following services, utilities, supplies and facilities:

 

(i)                                     Access to the Premises twenty-four (24) hours a day, seven (7) days a week, subject to such security system (if any) as Tenant may install therein with Landlord’s prior written approval.

 

(ii)                                  HVAC for the comfortable use and occupancy of the Premises on Mondays through Fridays (except legal holidays) from 8:30 a.m. to 5:30 p.m., and at such additional times as may be requested by Tenant from time to time upon at least forty-eight (48) hours advance notice to Landlord.  Landlord’s cost of supplying such additional service shall by paid be Tenant upon receipt of invoices therefor from Landlord.

 

(iii)                               Wash all exterior windows on the inside and outside surfaces no less than two (2) times per year.

 

(iv)                              Hot and cold running water as supplied by the city or town or other supplier.  If the Tenant uses water for anything other than ordinary lavatory and drinking purposes, Landlord may install a water meter and thereby measure Tenant’s water consumption for all purposes.  In such event, Tenant shall pay the cost of the meter and the cost of the installation thereof and shall keep such meter and installation equipment in good working order and repair.  Tenant agrees to pay for the water consumed, as shown on said meter, together with the sewer charges based on such meter charges, as and when bills are rendered, and in default of making such payment, Landlord may pay such charges and collect the same from Tenant as an additional charge.

 

(v)                                 Electricity for the areas of the Building that are not part of the Premises and all walkway and parking area lighting.

 

(vi)                              Provision, installation, and replacement of all necessary light bulbs, tubes, lighting fixtures, and ballasts.

 

(vii)                           Keep all lawns and landscaped areas of the Property watered, fertilized and trimmed and shall provide for removal of snow and ice from, and sanding of, the sidewalks, parking lots, access driveways and walkways as necessitated by weather conditions and shall provide for parking lot lighting.  Landlord shall also provide for the removal of trash and other debris from the parking lot serving the Building.

 

(b)                                 Tenant shall arrange and pay for (i) any and all utility services (including, without limitation, electricity, gas, internet and telephone) necessary for Tenant’s use of the Premises, 

 

9

 

other than any utility services required to be provided by Landlord pursuant to Section 12(a) above, (ii) cleaning and janitorial services to all areas of the Building (including, without limitation, those services described on Exhibit 4), using a cleaning contractor(s) reasonably acceptable to Landlord, it being understood and agreed that Landlord shall have no obligation to provide any cleaning or janitorial services to the Premises or any other portion of the Building or to the parking lot serving the Building, and (iii) any security that it wishes to provide for the Premises or the Building so long as Landlord is provided access to such security, it being understood and agreed that Landlord shall have no obligation to provide any such security and may remove the existing card access system owned by Landlord serving the Building (Landlord hereby acknowledging and agreeing that the card access system currently used by Tenant is owned by Tenant and not by Landlord).  Without limiting the foregoing, Tenant shall contract directly with the electric utility provider to furnish electricity to the Premises, and the consumption of such electricity shall be measured by a separate meter which Tenant shall install and maintain in good order and repair.  Tenant shall pay all charges as reflected on such meter directly to the utility supplier.

 

13.                                 Interruption or Curtailment of Building Services.

 

(a)                                  Landlord shall have the right to interrupt, curtail, stop or suspend the operation of the Building’s plumbing and electrical systems and any other Building services or utilities in the case of emergency or accident, or for the purpose of making any repairs, alterations, or improvements to the Building or Premises, or in the case of force majeure or other event beyond Landlord’s reasonable control.  There shall be no diminution or abatement of rent or other charges hereunder, nor shall this Lease be affected or any of Tenant’s obligations hereunder reduced, by reason of, and Landlord shall have no responsibility or liability for, any such interruption, etc., except that Landlord shall exercise reasonable diligence to eliminate the cause of same.

 

(b)                                 Notwithstanding anything to the contrary in this Lease contained, if, due to Landlord’s failure to perform any repair or provide any service required to be performed or provided by Landlord under Section 10 or 12(a) of this Lease, the Premises or any portion thereof becomes untenantable for the Premises Untenantability Cure Period, as hereinafter defined (for purposes of this Section 13, the term “untenantable” shall mean that the continued operation in the ordinary course of Tenant’s business in the Premises has been materially adversely affected), then, provided that such untenantability and Landlord’s inability to cure such condition are not caused by the fault or neglect of Tenant or Tenant’s agents, employees, contractors or invitees, Basic Rent and Building Expense Escalation Charges shall be abated in proportion to such untenantability commencing on the day following the expiration of the Premises Untenantability Cure Period and continuing until the day such condition is corrected.  For the purposes hereof, the “Premises Untenantability Cure Period” shall be defined as five (5) consecutive business days after Landlord’s receipt of written notice from Tenant of the condition causing untenantability in the Premises, provided, however, that the Premises Untenantability Cure Period shall be twenty-one (21) consecutive days after Landlord’s receipt of written notice from Tenant of the condition causing untenantability in the Premises if either the condition was caused by force majeure or other event beyond Landlord’s reasonable control (other than the fault or neglect of Tenant or Tenant’s agents, employees, contractors or invitees) or Landlord is unable to cure such condition as the 

 

10

 

result of force majeure or other event beyond Landlord’s reasonable control (other than the fault or neglect of Tenant or Tenant’s agents, employees, contractors or invitees).

 

(c)                                  Notwithstanding anything to the contrary in this Lease contained, if, due to Landlord’s failure to perform any repair or provide any service required to be performed or provided by Landlord under Section 10 or 12(a) of this Lease, the Premises or any material portion thereof becomes untenantable, and if (i) such untenantability continues for thirty (30) consecutive days (or forty-five (45) consecutive days if such failure was caused by force majeure or other event beyond Landlord’s reasonable control (other than the fault or neglect of Tenant or Tenant’s agents, employees, contractors or invitees)) after Landlord’s receipt of written notice of such condition from Tenant, and (ii) such untenantability and Landlord’s inability to cure such condition are not caused by the fault or neglect of Tenant or Tenant’s agents, employees, contractors or invitees, then Tenant shall have the right to terminate this Lease exercisable by giving Landlord a written termination notice.  Upon the giving of such notice, this Lease shall terminate as of the date which is thirty (30) days after Landlord’s receipt thereof, unless Landlord shall have cured such condition on or before such thirtieth (30th) day.

 

(d)                                 The provisions of Sections 13(b) and (c) above shall not apply in the event of untenantability caused by fire or other casualty or taking (see Section 20).

 

14.                                 Building Expenses.

 

(a)                                  Definitions.  For the purposes of this Section 14, the following terms shall have the following respective meanings:

 

(i)                                     Year:  Each calendar year in which any part of the Term of this Lease shall fall.

 

(ii)                                  Operating Costs:  The aggregate of all costs and expenses incurred by Landlord with respect to the administration, repair, maintenance, replacement, alteration, improvement, operation, management, cleaning and servicing of the Building and Property, including, without limitation, the following: Any and all costs and expenses incurred by Landlord for administrative and management services (including, without limitation, reasonable management fees not to exceed five percent (5%) of gross revenues from the Property for the period in question), sewer use and water charges, performance of Landlord’s obligations under Sections 10 and 12(a), insurance, payroll and benefits of maintenance and management staff, pest control services, the cost of capital replacements, and the cost of new (i.e., as opposed to replacement) capital improvements which are intended in good faith or 

 

11

 

reasonably designed to achieve a reasonably corresponding deduction in energy or other operating costs or which are required by any law not in effect on the date of this Lease (provided, however, that the cost of all capital expenditures, both for replacements and new improvements, shall be amortized over their useful life in accordance with generally accepted accounting principles, together with market interest on the unamortized balance, and only the annual amortized portion of such capital expenditures (to the extent of actual savings in Operating Costs in the case of new (i.e., as opposed to replacement) capital improvements which are intended in good faith or reasonably designed to achieve a reasonably corresponding deduction in energy or other operating costs) shall be included in Operating Costs for each Year); but there shall be excluded from Operating Costs (A) Taxes (i.e., “Taxes” as hereinafter defined in subclause (iii) of this Section 14(a) as well as income, estate, franchise, succession, inheritance, use, occupancy, gross receipts, rental, capital gains or profit taxes shall not be included in the definition of “Operating Costs” but shall be accounted for separately pursuant to the definition of “Taxes”); (B) special services rendered to other tenants; (C) costs incurred in connection with Landlord’s preparation, negotiation and/or enforcement of leases; (D) financing and refinancing costs, and interest, points, fees, amortization, principal and other costs payable, in respect of any mortgage or other financing or debt placed upon the Property; (E) interest or penalties for any late payments by Landlord; (F) compensation paid to any Building employee to the extent the same is not fairly allocable to the work or service provided by such employee to the Property and salaries, expenses, fringe benefits and other compensation for executives above the level of building manager; (G) leasing and brokerage fees and commissions, advertising and promotional expenses, tenant improvement costs, build out allowances, moving expenses, assumption of rent under existing leases and other concessions incurred in connection with leasing space in the Building; (H) depreciation and capital expenditures (except as set forth above); (I) costs to acquire artwork or sculptures; (J) expenses for which Landlord is reimbursed by warranty, insurance, any tenant (other than through the operating cost escalation provisions of leases with tenants) or any third party (Landlord hereby agreeing to use commercially reasonable efforts to seek to obtain such reimbursement if Landlord determines, acting in good faith, that reasonable grounds exist therefor); (K) ground rent, if Landlord’s interest in the Property is derived from a ground lease; (L) costs associated with the removal of hazardous materials or substances from the Property not placed there by Tenant or its agents, employees or contractors (other than those customarily handled and disposed of incident to the normal or routine operation, maintenance or repair of the Property, such as cleaning materials); (M) the cost of correcting defects (latent or otherwise) in the construction of the Building, except that conditions (not occasioned by construction defects) resulting from ordinary wear and tear shall not be deemed defects for purposes hereof; (N) costs resulting from the gross negligence or willful misconduct of Landlord or its agents or employees (provided, however, that if Landlord or its agents or employees acted with negligence [but not with gross negligence or willful misconduct] and such negligent act resulted in Landlord having incurred costs in addition to the costs that would have been incurred if Landlord had not acted with negligence, then such additional costs shall also be excluded from Operating Costs); (O) costs related to the sale of the Property; (P) general corporate overhead and costs directly and solely related to the maintenance and operation of the entity that constitutes Landlord, such as accounting fees incurred solely for the purpose of reporting Landlord’s financial condition; and (Q) any cost or expense representing sums paid to an entity related to Landlord in excess of competitive charges which would be paid in the absence of such relationship.  Notwithstanding anything to the contrary herein contained, if, during any portion of Year 2011 or any succeeding Year, less than the entire rentable area of the Building is occupied, then those Operating Costs for such Year which vary with occupancy shall be reasonably extrapolated by Landlord to reflect what such Operating Costs would have been if the entire rentable area of the Building had been occupied for the entire Year.

 

12

 

(iii)                               Taxes:  The real estate taxes and other taxes, levies and assessments imposed upon the Building and the Property and upon any personal property of Landlord used in the operation thereof; betterment assessments apportioned over the longest payment period permitted by law (including interest thereon); charges, fees and assessments for police, fire or other governmental services or purported benefits to the Building; service or user payments in lieu of taxes; and any and all other taxes, levies, betterments, assessments and charges arising from the ownership, leasing, operating, use or occupancy of the Building or based upon rentals derived therefrom, which are or shall be imposed by National, State, Municipal or other authorities having jurisdiction.  As of the Execution Date, Taxes shall not include any income, estate, franchise, succession, inheritance, use, occupancy, gross receipts, rental, capital gains or profit tax, provided, however, that any tax, excise, fee, levy, charge or assessment, however described, that may in the future be levied or assessed as a substitute for or in addition to (in whole or in part) any tax, levy or assessment which would otherwise constitute Taxes, whether or not now customary or in the contemplation of the parties on the Execution Date of this Lease, shall constitute Taxes, but only to the extent calculated as if the Building and the Property were the only real estate owned by Landlord.  Taxes shall also include reasonable expenses of tax abatement or other proceedings contesting assessments or levies.  Although Taxes in Massachusetts are payable on the basis of a July 1 - June 30 fiscal/tax year, for the purposes of this Section 14, Taxes shall be computed on a calendar year basis, based upon the sum of one-half (1/2) the Taxes payable in respect of one fiscal/tax year, plus one-half (1/2) the Taxes payable in respect of the next fiscal/tax year.  (For example, Taxes for 2011 would be 1/2 the Taxes in respect of the 2011 fiscal/tax year, plus 1/2 the Taxes in respect of the 2012 fiscal/tax year.)

 

(iv)                              Building Expenses:  The sum of Operating Costs plus Taxes.

 

(v)                                 Building Expense Base:  The amount set forth on Exhibit 1.

 

(vi)                              Building Expense Escalation Charges:  Charges payable by Tenant under Section 14(b) below.

 

(vii)                           Tenant’s Proportionate Share:  The fraction or percentage set forth on Exhibit 1, being the rentable area of the Premises divided by the Building Rentable Area.

 

(b)                                     Tenant’s Payments.

 

(i)                                     If in any Year Building Expenses shall exceed the Building Expense Base, Tenant shall pay to Landlord, as additional rent, a Building Expense Escalation Charge in an amount equal to the product of (i) such excess Building Expenses multiplied by (ii) Tenant’s Proportionate Share, such amount to be apportioned for any Year in which the Commencement Date occurs or the Term of this Lease ends.

 

(ii)                                  Estimated payments by Tenant on account of amounts due hereunder shall be made monthly in advance on the first day of each month during the Term.  The monthly 

 

13

 

amount so to be paid to Landlord shall be sufficient to provide Landlord by the end of each Year a sum equal to Tenant’s required payments, as reasonably estimated by Landlord from time to time during each Year, on account of Building Expense Escalation Charges for such Year.  Such estimate shall be based on the actual Building Expenses for the prior year.  Landlord shall have the right from time to time during the course of the Year to adjust the amount of Tenant’s estimated payments based upon most recent data with respect to Building Expenses then available (e.g. Landlord’s receipt of a new Tax bill).  After the end of each Year, Landlord shall submit to Tenant a reasonably detailed accounting of Building Expenses for such Year, and Landlord shall certify to the accuracy thereof.  If estimated payments previously made for such Year by Tenant exceed Tenant’s required payment on account thereof for such Year, according to such statement, Landlord shall either promptly refund such overpayment or credit such overpayment against Tenant’s future obligations on account of Building Expense Escalation Charges; but, if the required payments on account thereof for such Year are greater than the estimated payments (if any) previously made on account thereof for such Year, Tenant shall make payment to Landlord within thirty (30) days after receipt of an invoice from Landlord.  Landlord shall have the same rights and remedies for nonpayment by Tenant of any payments due on account of Building Expense Escalation Charges as Landlord has hereunder for the failure of Tenant to pay Basic Rent.  Landlord’s and Tenant’s obligations with respect to adjusting Building Expense Escalation Charges for the Year in which the Term of this Lease ends shall survive the expiration or sooner termination of this Lease.  In no event shall Tenant be entitled to receive a refund or credit if in any Year Building Expenses are less than the Building Expense Base.

 

15.                                 Waiver of Subrogation.  Landlord and Tenant shall each cause all policies of fire, extended coverage, and other physical damage insurance covering the Premises, the Building, and any property therein to contain a clause or endorsement denying the insurer any rights of subrogation against the other party.  Notwithstanding any provisions of this Lease to the contrary, Landlord and Tenant respectively waive all claims and rights to recover against the other for injury or loss due to hazards covered by insurance containing said clause or endorsement carried (or required hereunder to be carried) by each such party.

 

16.                                 Tenant’s Indemnity.

 

(a)                                  Subject to Section 15, Tenant agrees to defend, indemnify and save harmless Landlord, Landlord’s Agent (identified on Exhibit 1) and any mortgagee or ground lessor of which Tenant is given notice from and against all loss, liability, damage, costs, expenses and claims of whatever nature arising: (i) from any accident, injury or damage whatsoever to any person, or to the property of any person, in or about the Premises, except to the extent caused by the negligence or willful misconduct of Landlord or its agents, employees or contractors; or (ii) from any accident, injury or damage to persons or property occurring outside of the Premises but in or about the Building or on the Property, to the extent such accident, damage or injury results from the negligence or willful misconduct of Tenant or Tenant’s agents, employees, invitees or contractors.

 

(b)                                 Subject to Section 15 hereof, Landlord agrees to defend, indemnify and save harmless Tenant from and against all loss, liability, damage, costs, expenses and claims of 

 

14

 

whatever nature arising from any accident, injury or damage to persons or property occurring in or about the Property, to the extent such accident, damage or injury results from the negligence or willful misconduct of Landlord or its agents, employees, invitees or contractors.

 

(c)                                  The provisions of this Section 16 shall survive the expiration or sooner termination of the Term of this Lease.

 

17.                                 Public Liability Insurance.

 

(a)                                  Tenant agrees to maintain throughout the Term of this Lease a policy of commercial general public liability and property damage insurance in such form, amounts and with carriers reasonably acceptable to Landlord, and under which Landlord and Landlord’s Agent (and such other persons as Landlord may designate by notice to Tenant from time to time) and Tenant are named as insureds.  Each such policy shall be noncancelable and non-amendable with respect to Landlord, Landlord’s Agent and Landlord’s said designees without thirty (30) days’ prior notice to Landlord, Landlord’s Agent and its designees; and a duplicate original or certificate thereof shall be delivered to Landlord, Landlord’s Agent and its designees.

 

(b)                                 Landlord shall maintain at all times during the Term of this Lease reasonable amounts of liability insurance covering the Building and the Property.  Landlord’s liability insurance is currently $1,000,000 per occurrence.

 

18.                                 Tenant’s Risk.  Tenant agrees to use and occupy the Premises at Tenant’s own risk.  Tenant shall maintain insurance in respect of its personal property, business fixtures and leasehold improvements in an amount equal to 100% of the replacement cost thereof, and Landlord shall have no responsibility or liability for any loss of or damage to any of the same, except to the extent, but subject to Section 15 hereof, arising from the negligence or willful misconduct of Landlord or its agents, employees or contractors or breach of this Lease by Landlord (provided that Landlord shall bear such responsibility only for ordinary office property, as hereinafter defined), or for any inconvenience, annoyance, interruption or injury to business arising from Landlord’s making any repairs or changes which Landlord is permitted by this Lease, or required by law, to make in or to any portion of the Premises or other sections of the Building or Property.  For purposes hereof, “ordinary office property” shall mean such property as is customarily found in office facilities comparable to Tenant’s Premises in the greater Boston area and shall exclude property of a rare or exotic nature, money, securities, works of art and the like.  Tenant agrees that Landlord shall not be responsible or liable to Tenant, or to those claiming by, through or under Tenant, for any loss or damage that may be occasioned by or through the acts or omissions of persons occupying adjoining premises or any part of the premises adjacent to or connecting with the Premises or any part of the Building or Property.

 

19.                                 Landlord’s Access Rights.  Landlord shall have the right to enter the Premises at all reasonable hours after reasonable prior notice to Tenant (except in an emergency or for normal maintenance or cleaning operations) for the purpose of inspecting or making repairs to the same, and to show the Premises to prospective or existing mortgagees, purchasers or, during the last twelve (12) months of the Term of this Lease, tenants of any part of the Property.

 

15

 

20.                                 Fire, Eminent Domain, Etc.

 

(a)                                  If the Premises shall incur minor damage by reason of fire or other casualty or by reason of a taking by eminent domain, Landlord will restore the Premises or (in the case of a taking) what may remain thereof (excluding any alterations and improvements installed in the Premises by or at the expense of Tenant) to substantially their condition prior to the fire or other casualty or taking for Tenant’s use and occupancy as speedily as possible to the extent of the available insurance proceeds or condemnation award, as the case may be, and subject to zoning laws and building codes then in existence.  If in Landlord’s bona fide business judgment the damage or taking is not minor (meaning that Landlord in its bona fide business judgment determines that the Premises or (in the case of a taking) what may remain thereof cannot be restored to the condition required by the preceding sentence within two hundred seventy (270) days after the occurrence of the damage or taking), or the insurance proceeds or condemnation award is inadequate to perform the required restoration work, Landlord shall have the right to terminate this Lease by giving written notice to Tenant within sixty (60) days after the occurrence of such damage or taking.  If the Premises are rendered untenantable by the damage or taking (for purposes of this Section 20, the term “untenantable” shall mean that the continued operation in the ordinary course of Tenant’s business in the Premises has been materially adversely affected by such damage or taking), Tenant shall not be liable to pay Basic Rent or Building Expense Escalation Charges (or a proportionate part thereof, as appropriate) if and to the extent and for as long as the Premises remain untenantable.  If and to the extent the Premises are tenantable, Tenant must continue to pay Basic Rent and Building Expense Escalation Charges.  Landlord shall have and hereby reserves and excepts, and Tenant hereby grants and assigns to Landlord, all rights to recover for damages to the Property and the leasehold interest hereby created, and to compensation accrued or hereafter to accrue by reason of such fire, casualty or taking.  Nothing contained herein shall be construed to prevent Tenant from prosecuting in any eminent domain proceedings a claim for the value of any of Tenant’s personal property, business fixtures, machinery, equipment and furniture owned or installed by Tenant, and moving expenses, provided that such award shall not reduce the amount of Landlord’s own proceeds awarded by the taking authority.  Landlord shall maintain a policy of property insurance covering the Building against perils insured under a policy of so-called all risk insurance to provide for 100% replacement of damaged portions of the Building in the event of fire or other casualty and, upon Tenant’s request, shall provide Tenant with evidence that such insurance is in effect, which evidence may be in the form of a certificate of insurance.  Landlord’s insurance shall not cover Tenant’s property, furniture, furnishings or equipment, rare or exotic items Tenant keeps in the Premises or alterations and improvements installed by or at the expense of Tenant.

 

(b)                                 If the Premises are damaged by fire or other casualty (other than as a result of Tenant’s gross negligence or willful misconduct) or taking to such an extent so as to render the Premises untenantable, Landlord shall notify Tenant (the “Damage Notice”) in writing within sixty (60) days of the occurrence of the damage as to whether the repair of such damage is reasonably likely to be substantially completed by Landlord within two hundred seventy (270) days after the occurrence of such damage (Landlord hereby agreeing to submit to Tenant with the Damage Notice an estimate of an architect, engineer or contractor as to the length of time necessary to substantially complete the repair of such damage, such estimated repair period being hereinafter referred to as the “Estimated Repair Period”).  If the damage to the Premises or any 

 

16

 

portion thereof shall materially adversely interfere with the conduct of Tenant’s business in the Premises in the ordinary course as reasonably determined by Tenant, and the Estimated Repair Period is in excess of two hundred seventy (270) days after the occurrence of such damage, then Tenant may, by written notice to Landlord within fifteen (15) days after the giving of the Damage Notice to Tenant, terminate this Lease as of the date of occurrence of such damage.  If the Estimated Repair Period is less than two hundred seventy (270) days after the occurrence of such damage, Tenant shall not have the right to terminate this Lease on account of such damage except as otherwise provided in Section 20(c) below and Landlord shall use commercially reasonable and diligent efforts to restore such damage within the Estimated Repair Period.

 

(c)                                  If Tenant shall not terminate this Lease pursuant to Section 20(b) above, and if the Premises are damaged by fire or other casualty (other than as a result of Tenant’s gross negligence or willful misconduct) or taking to such an extent so as to render the Premises untenantable, and if Landlord shall fail to substantially complete the repairs necessary to put the Premises or, in the case of a taking, what may remain thereof into the condition required by the first sentence of Section 20(a) above within the greater of the Estimated Repair Period or two hundred seventy (270) days after the date of such fire or other casualty or taking (the greater of such time periods, the “Restoration Period”) for any reason other than the fault or neglect of Tenant or its agents, employees or contractors, Tenant may terminate this Lease by giving Landlord written notice as follows:

 

(i)                                     Said notice shall be given after the Restoration Period.

 

(ii)                                  Said notice shall set forth an effective date of termination which is not earlier than thirty (30) days after Landlord receives said notice.

 

(iii)                               If said repairs are substantially complete on or before the effective termination date set forth in said notice (which date shall be extended by the length of any delays caused by Tenant or Tenant’s agents, employees or contractors), said notice shall have no further force and effect.

 

(iv)                              If said repairs are not substantially complete on or before the effective termination date set forth in said notice (which date shall be extended by the length of any delays caused by Tenant or Tenant’s agents, employees or contractors), this Lease shall terminate as of said effective date.

 

21.                                Tenant’s Default.

 

(a)                                  Tenant shall be in default under this Lease in the event that Tenant (i) shall fail to make any payment of money (including, without limitation, Basic Rent and Building Expense Escalation Charges) when it is due hereunder and such failure shall continue for ten (10) days after notice from Landlord to Tenant, or (ii) shall fail or neglect to perform or observe any other covenant or obligation under this Lease and Tenant shall fail to remedy the same within thirty (30) days after notice from Landlord to Tenant specifying such failure or neglect, or if such failure is of such a nature that Tenant cannot reasonably remedy the same within such 30 day period, Tenant shall fail to commence promptly to remedy the same and to prosecute such remedy to completion 

 

17

 

with diligence and continuity, or (iii) shall commence reorganization, bankruptcy or insolvency proceedings or, in case any such proceedings are brought against Tenant, if the same are not dismissed within sixty (60) days or if any assignment shall be made of Tenant’s property for the benefit of creditors.  Notwithstanding the foregoing, in the event of a failure or neglect of the type described in clause (ii) above which creates an emergency situation in the Premises, Tenant shall use commercially reasonable efforts to cure such failure or neglect as soon as reasonably practicable under the circumstances, but in no event shall Tenant be deemed in default under this Lease pursuant to said clause (ii) unless and until the expiration of the cure periods provided therein.  If Tenant shall be in default under this Lease, Landlord shall have all rights and remedies as are available at law or in equity.  Such remedies shall include, without limitation, the right to evict Tenant, take exclusive possession of the Premises, continue to collect Basic Rent, Building Expense Escalation Charges and other charges, terminate this Lease by notice, entry or otherwise, obtain a judgment for all damages that might flow from a breach or termination of this Lease, re-let the Premises or any part thereof  and make any repairs or alterations to the Premises.  Tenant shall pay Landlord’s costs of enforcing this Lease after a default by Tenant beyond the expiration of applicable cure periods hereunder, including, without limitation, reasonable attorneys’ fees and costs.

 

(b)                                 Upon the termination of this Lease under the provisions of this Section 21, Tenant shall pay to Landlord the Basic Rent and other charges payable by Tenant to Landlord up to the time of such termination, shall continue to be liable for any preceding default hereunder and, in addition, shall pay to Landlord as damages, at the election of Landlord, either:

 

(i)                                     the amount by which, at the time of the termination of this Lease (or at any time thereafter if Landlord shall have initially elected damages under clause (ii) below), (A) the aggregate of the Basic Rent and other charges projected over the period commencing with such termination and ending on the expiration date of the Term, exceeds (B) the aggregate projected rental value of the Premises for such period; or

 

(ii)                                  amounts equal to the Basic Rent and other charges which would have been payable by Tenant had this Lease not been so terminated, payable upon the due dates therefor specified herein following such termination and until the expiration date of the Term, provided, however, if Landlord shall re-let the Premises during such period, Landlord shall credit Tenant with the net rents received by Landlord from such re-letting, such net rents to be determined by first deducting from the gross rents as and when received by Landlord from such re-letting the expenses incurred or paid by Landlord in terminating this Lease, as well as the expenses of re-letting, including altering and preparing the Premises for new tenants, brokers’ commissions, and all other similar and dissimilar expenses properly chargeable against the Premises and the rental therefrom, it being understood that any such re-letting may be for a period equal to or shorter or longer than the remaining Term of this Lease; and provided, further, that (A) in no event shall Tenant be entitled to receive any excess of such net rents over the sums payable by Tenant to Landlord hereunder, and (B) in no event shall Tenant be entitled in any suit for the collection of damages pursuant to this clause (ii) to a credit in respect of any net rents from a re-letting except to the extent that such net rents are actually received by Landlord prior to the commencement of such suit.  If the Premises or any part thereof should be re-let in combination with other space, then 

 

18

 

proper apportionment on a square foot area basis shall be made of the rent received from such re-letting and of the expenses of re-letting.

 

(c)                                  Suit or suits for the recovery of such damages, or any installments thereof, may be brought by Landlord from time to time at its election, and nothing contained herein shall be deemed to require Landlord to postpone suit until the date when the Term of this Lease would have expired if it had not been terminated hereunder.

 

(d)                                 Nothing herein contained shall be construed as limiting or precluding the recovery by Landlord against Tenant of any sums or damages to which, in addition to the damages particularly provided above, Landlord may lawfully be entitled by reason of any default hereunder on the part of Tenant.

 

(e)                                  Notwithstanding anything to the contrary herein contained, in no event shall any of the officers, trustees, directors, partners, beneficiaries, stockholders or other principals or representatives (and the like) of Tenant, disclosed or undisclosed, ever be personally liable for any judgment or other liability or for the payment of any monetary obligation to Landlord.  In no event shall Tenant ever be liable to Landlord for any lost profits or indirect or consequential damages suffered by Landlord from whatever cause; provided, however, that the provisions of this sentence shall not be deemed to limit Landlord’s damages recoverable from Tenant under this Section 21 or Tenant’s liability under Section 31 hereof.

 

22.                                 Landlord’s Default.  Landlord shall be in default under this Lease in the event that Landlord shall have failed to perform any of its obligations hereunder and Landlord shall fail to remedy the same within thirty (30) days after receipt of notice of such failure from Tenant, or if such failure is of such a nature that Landlord cannot reasonably remedy the same within such thirty (30) day period, Landlord shall have failed to commence promptly to remedy the same and to prosecute such remedy to completion with diligence and continuity.  Notwithstanding the foregoing, in the event such failure creates an emergency situation in the Premises or a condition in the Premises that materially adversely affects the continued operation in the ordinary course of Tenant’s business in the Premises, Landlord shall use commercially reasonable efforts to cure such failure as soon as reasonably practicable under the circumstances, but in no event shall Landlord be deemed in default under this Lease unless and until the expiration of the cure periods provided in the preceding sentence.  In no event shall Tenant have the right to terminate or cancel this Lease or to withhold or abate rent or to set-off any claim or damages against rent as a result of any default or breach by Landlord of any of its covenants, obligations, representations, warranties or promises hereunder, except as may otherwise be expressly set forth in this Lease.  Landlord shall pay Tenant’s costs of enforcing this Lease after a default by Landlord beyond the expiration of applicable cure periods hereunder, including, without limitation, reasonable attorneys’ fees and costs.

 

23.                                Landlord’s Liability.

 

(a)                                 Notwithstanding anything to the contrary herein contained, Tenant specifically agrees to look solely to Landlord’s then interest in the Property at the time owned for recovery of any judgment from Landlord; it being specifically agreed that in no event shall Landlord (original 

 

19

 

or successor), or any of the officers, trustees, directors, partners, beneficiaries, stockholders or other principals or representatives (and the like), disclosed or undisclosed, thereof ever be personally liable for any such judgment or other liability or for the payment of any monetary obligation to Tenant.  In no event shall Landlord (original or successor) or any such officers, etc., as aforesaid, ever be liable to Tenant for any lost profits or indirect or consequential damages suffered by Tenant from whatever cause.

 

(b)                                 With respect to any services or utilities to be furnished by Landlord to Tenant or any other obligations to be performed by Landlord under this Lease, Landlord shall in no event be liable for failure to furnish or perform the same when prevented from doing so by reason of force majeure, or for any cause beyond Landlord’s reasonable control, or for any cause due to any act or neglect of Tenant or Tenant’s agents, employees or contractors or any person claiming by, through or under Tenant, but the foregoing shall not affect Tenant’s abatement and termination rights set forth in Sections 13 and 20 hereof.

 

(c)                                  In the event of any transfer of Landlord’s interest in the Property, the party  making such transfer shall be entirely freed and relieved from the performance and observance of all covenants and obligations hereunder arising from and after the date of such transfer, provided that the transferee has assumed the obligation to perform and observe all such covenants and obligations, Tenant agreeing to look solely to the holder of the Landlord’s interest in this Lease from time to time, subject to the limitations set forth in paragraph (a) above.

 

24.                                 Rules and Regulations.  Tenant shall abide by rules and regulations from time to established by Landlord, provided such rules and regulations are reasonable, non-discriminatory, applied uniformly to and made for the benefit of all other tenants, cause no material cost or expenditure for Tenant, and do not deprive Tenant of any of the material benefits and rights provided for by this Lease.  Landlord shall not be liable to Tenant for violation of the same by any other tenant or occupant of the Building, or persons having business with them.  The current rules and regulations are attached to this Lease as Exhibit 5.  In the event that there shall be a conflict between such rules and regulations and the provisions of this Lease, the provisions of this Lease shall control.

 

25.                                 Notices.  Whenever, by the terms of this Lease, notices, requests, consents and approvals shall or may be given either to Landlord or to Tenant, they shall be in writing and shall be delivered in hand or sent by nationally recognized overnight courier service or by express, registered or certified mail, postage prepaid:

 

If intended for Landlord, addressed to Landlord at Landlord’s Original Address as stated in Exhibit 1 (or to such other address or addresses as may from time to time hereafter be designated by Landlord by like notice) ), with a simultaneous copy to Goulston & Storrs, P.C., 400 Atlantic Avenue, Boston, MA 02110, Attention: Robert J. Mack, Esq.

 

If intended for Tenant, addressed to Tenant at Tenant’s Original Address as stated in Exhibit 1 (or to such other address or addresses as may from time to time hereafter be designated by Tenant by like notice).

 

20

 

All such notices shall be effective (i) when hand-delivered, (ii) if sent by overnight courier, one (1) business day after being delivered to said overnight courier, or (iii) if mailed, two (2) business days after being deposited in the United States Mail within the Continental United States or upon receipt if sooner.

 

26.                                Headings.  The Section and paragraph headings throughout this Lease are for convenience and reference only, and shall not be used to construe this Lease.

 

27.                                 Rights of Mortgagee or Ground Lessor.  Tenant acknowledges and agrees that this Lease shall be subject and subordinate to any mortgage or ground lease from time to time encumbering the Premises, whether executed and delivered prior to or subsequent to the date of this Lease, if the holder of such mortgage or ground lease shall so elect.  If this Lease is subordinate to any mortgage or ground lease and the holder thereof (or successor) shall succeed to the interest of Landlord, at the election of such holder (or successor) Tenant shall attorn to such holder and this Lease shall continue in full force and effect between such holder (or successor) and Tenant.  Tenant agrees to execute such instruments of subordination or attornment in confirmation of the foregoing agreement as such holder (or successor) may reasonably request.  Notwithstanding anything to the contrary in this Section 27 contained, if any future mortgagee or ground lessor shall elect to make this Lease subject and subordinate to its mortgage or ground lease as aforesaid, then the herein provided subordination and attornment shall be effective only if such mortgagee or ground lessor, as the case may be, agrees, by a written instrument in the customary form of such mortgagee or ground lessor with such commercially reasonable changes thereto as Tenant and such mortgagee or ground lessor may agree to (a “Non-Disturbance Agreement”), that, as long as Tenant shall not be in terminable default of the obligation on its part to be kept and performed under the terms of this Lease, this Lease will be recognized and Tenant’s possession hereunder will not be disturbed by any default under, or termination and/or foreclosure of, such mortgage or ground lease, as the case may be.  In addition, Landlord shall use commercially reasonable efforts to provide a Non-Disturbance Agreement to Tenant from the holder of the existing mortgage on the Property.

 

28.                                 Estoppel Certificate.  Either party shall at any time and from time to time within ten (10) days of the other party’s request execute and deliver an estoppel certificate affirming this Lease, indicating whether there are any defaults hereunder, and addressing such other matters as the requesting party, its lender(s) or prospective purchaser(s) or investors may reasonably require.

 

29.                                 Recording.  Tenant agrees not to record this Lease, but each party hereto agrees, on the request of the other, to execute a so-called notice of lease in form recordable under and otherwise complying with applicable law and reasonably satisfactory to the parties hereto and their respective counsel.  In no event shall such document set forth the rent or other charges payable by Tenant under this Lease; and any such document shall expressly state that it is executed pursuant to the provisions contained in this Lease and is not intended to vary the terms and conditions of this Lease.

 

21

 

30.                                 Remedying Defaults.

 

(a)                                  Landlord shall have the right, but not the obligation, to pay such sums or take such action as may be necessary or appropriate by reason of a default by Tenant in the performance of any of the provisions of this Lease if the default remains uncured after the expiration of applicable notice and cure periods hereunder (except that no such notice or cure periods shall be required in an emergency), and in such event, Tenant agrees to reimburse Landlord within ten (10) days after demand for all reasonable costs and expenses so incurred by Landlord, together with interest thereon at a rate equal to 12% per annum, as an additional charge.  Any payment of Basic Rent, Building Expense Escalation Charges or other sums payable hereunder not paid within five (5) days after the same shall have become due shall bear interest at the rate as aforesaid from the date thereof and shall be payable within ten (10) days after demand by Landlord, as an additional charge.

 

(b)                                 If (i) Landlord shall fail to make any repair or perform any service required to be made or performed by Landlord under Section 10 or 12(a) of this Lease, and such failure if not corrected is reasonably likely to materially adversely affect the continued operation in the ordinary course of Tenant’s business in the Premises, and (ii) either (x) Tenant shall be unable to contact Landlord within a reasonable period of time after the onset of such situation (which “reasonable period of time” shall be dictated by the type of situation which has occurred), or (y) Landlord shall fail to remedy the situation within a reasonable period of time (as defined above) after being contacted by Tenant or Tenant is otherwise instructed by Landlord to make the repair or provide the service itself, then Tenant may, but shall not be obligated to, perform such repair or provide such service on Landlord’s behalf.  If Tenant exercises such right, Landlord shall reimburse Tenant for the reasonable costs and expenses incurred by Tenant in making such repair or providing such service, and any sum so reimbursed by Landlord to Tenant may be included in Operating Costs to the extent the cost of the repair or service would have been included in Operating Costs if the repair or service were performed or provided by Landlord itself.

 

31.                                 Holding Over.  Any holding over by Tenant after the expiration or sooner termination of the Term of this Lease shall be treated as a daily tenancy at sufferance at a rate equal to one and one-half (1.5) times the sum of (i) Basic Rent then in effect plus (ii) Building Expense Escalation Charges and all other charges herein provided for (prorated on a daily basis).  Tenant shall also pay to Landlord all damages, direct and/or indirect (including, without limitation, the loss of a tenant and of rental income), sustained by reason of any such holding over.  Otherwise, such holding over shall be on the terms and conditions set forth in this Lease as far as applicable.

 

32.                                 Surrender of Premises.

 

(a)                                  Upon the expiration or earlier termination of the Term of this Lease, Tenant shall peaceably quit and surrender to Landlord the Premises in neat and clean condition and in the same or better order, condition and repair as on the Commencement Date, together with (i) all of the equipment and other personal property owned by Landlord and described on Exhibit 6 (collectively, “Landlord’s Property”), (ii) any and all alterations, additions and improvements in the Premises as of the date hereof (except for Tenant’s secured document storage system in the Existing Premises which Tenant shall remove upon the expiration or earlier termination of the Term of this Lease and repair any damage to the Premises or the Building caused by such installation or removal), and (iii) except as hereinafter provided, all Alterations to the Premises, 

 

22

 

and otherwise in the same condition as Tenant is required to maintain the Premises under Section 11 above, excepting only reasonable wear and tear and damage by fire or other casualty.  Tenant shall remove all of Tenant’s personal property, business fixtures, machinery, equipment and furniture (except that the Nitrogen Storage Tanks shall, if and to the extent provided in Section 40 below, remain in place and become the property of Landlord at the expiration of the Term of this Lease) and, if and to the extent specified by Landlord in accordance with Section 8 above (but not otherwise), all Alterations made by Tenant; and Tenant shall repair any damages to the Premises or the Building caused by such installation or removal (it being understood and agreed that Tenant shall only be required to use reasonable efforts to paint or match existing finishes when patching holes).

 

(b)                                 Without limiting the foregoing, to the extent that chemical, biological or radioactive substances have been used in the Premises or any equipment, fixtures or property therein (including, but not limited to, Landlord’s Property), then the Premises and/or such equipment, fixtures or property, as applicable, shall be decommissioned by Tenant in accordance with all applicable laws, rules and regulations and with the standards set forth in Exhibit 7 (the “Decommissioning Standards”) upon surrender of the Premises to Landlord.

 

33.                                 Hazardous Material.  Tenant shall not use, release, generate, transport, handle, store or dispose of any oil, hazardous or toxic materials, hazardous or toxic wastes or biological, medical, pharmaceutical or radioactive wastes or materials as regulated in, under or pursuant to any applicable laws, rules or regulations relating to the environment or the protection of human health (collectively, “hazardous materials”) in or about the Property, except those materials which are customarily used in the ordinary course of Tenant’s business and then only in compliance with all applicable laws, rules and regulations, and industry standards and manufacturers’ specifications and recommendations therefor.  If the transportation, storage, handling, release, generation, use or disposal of any hazardous materials anywhere on the Property in connection with the Tenant’s use of the Premises results in (x) contamination or claim of contamination of soil, surface or ground water, air or building materials or (y) loss or damage to person(s) or property, then Tenant agrees to respond in accordance with the following paragraph:

 

Tenant agrees (i) to notify Landlord as soon as practicable upon Tenant’s obtaining knowledge of such contamination, claim of contamination, loss or damage, (ii) after consultation with and approval by Landlord (not to be unreasonably withheld or delayed), to clean up the contamination in compliance with all applicable statutes, regulations, rules and standards and, unless otherwise approved by Landlord in writing (which approval may be granted or withheld in Landlord’s sole discretion), without implementation of any activity and use limitation or other environmental deed restriction, and (iii) to indemnify, defend and hold Landlord and its agents harmless from and against any claims, obligations, suits, causes of action, costs and fees, including reasonable attorneys’ fees, arising from or connected with any such contamination, claim of contamination, loss or damage.  This provision shall survive the expiration or termination of this Lease.  No consent or approval of Landlord shall in any way be construed as imposing upon Landlord any liability for the means, methods, or manner of removal, containment or other compliance with applicable law for and with respect to the foregoing.

 

23

 

Tenant shall notify Landlord as soon as practicable upon Tenant’s receipt of any inquiry, notice or threat to give notice by any governmental authority or any other third party with respect to any hazardous materials in or about the Property.  If any governmental agency shall ever require testing to ascertain whether or not there has been any release or that there exists the threat of any release of hazardous materials as a result of the act or omission of Tenant (or anyone claiming by, through or under Tenant), its (or their) agents, employees or contractors, then the reasonable costs thereof shall be paid by Tenant.  In addition, Tenant shall execute affidavits, representations and the like from time to time at Landlord’s reasonable request (which request shall only be made for a legitimate business purpose, including, without limitation, if Landlord has a reasonable belief that hazardous materials have contaminated or caused damage to the Premises) concerning Tenant’s best knowledge and belief regarding the presence of hazardous materials on the Premises.

 

34.                                 Brokerage.  The parties warrant and represent that neither has dealt with any broker in connection with the consummation of this Lease other than the Broker(s) listed in Exhibit 1.  Each party (“Indemnitor”) shall defend, indemnify and hold harmless the other party for the Indemnitor’s breach of the foregoing warranty and representation.

 

35.                                 Governing Law.  This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.

 

36.                                 Covenant of Quiet Enjoyment.  Tenant, subject to the terms and provisions of this Lease and to the mortgages and/or ground leases to which this Lease is subject and subordinate as hereinabove set forth, on payment of the Basic Rent and all other sums payable hereunder, and observing, keeping and performing all of the other terms and provisions of this Lease on Tenant’s part to be observed, kept and performed, shall lawfully, peaceably and quietly have, hold, occupy and enjoy the Premises during the Term hereof, without hindrance or ejection by any person lawfully claiming under Landlord to have title to the Premises superior to Tenant; the foregoing covenant of quiet enjoyment is in lieu of any other covenant, express or implied.

 

37.                                 Signage.

 

(a)                                  No signage shall be installed by Tenant without Landlord’s prior written consent (not to be unreasonably withheld, conditioned or delayed).  Notwithstanding the foregoing, Tenant may continue to keep and maintain Tenant’s signage that exists on the Property as of the Commencement Date.  For so long as Tenant continues to maintain such signage, Tenant shall, at its expense, maintain such signage in good order and condition (Tenant hereby assuming all risk and liability with respect thereto) and remove such signage no later than the expiration or sooner termination of the Term of this Lease.

 

(b)                                 Landlord shall, at its expense, use commercially reasonable efforts to obtaining the necessary governmental permits and approvals to, and, upon receipt thereof shall, modify the existing monument sign at the entrance to the Property to indicate that Tenant is the sole tenant of the Building.  Any additional changes to such signage shall be at Tenant’s cost and expense.

 

24

 

38.                                 Tenant’s Option to Extend the Term of Lease.

 

(a)                                  On the conditions, which conditions Landlord may waive, at its election, by written notice to Tenant at any time, that Tenant is not in default of its covenants and obligations under this Lease beyond the expiration of applicable cure periods hereunder and that Synta Pharmaceuticals Corp. itself is occupying at least fifty percent (50%) of the Premises then demised to Tenant both as of the time of option exercise and as of the commencement of the hereinafter described additional terms, Tenant shall have the option to extend the Term of this Lease for two (2) consecutive additional five (5) year terms, the first such additional term commencing as of the day following the expiration date of the initial Term of this Lease, and the second such additional term commencing as of the day following the expiration date of the first such additional term.  Tenant may exercise each such option to extend by giving Landlord written notice on or before the date nine (9) months prior to the expiration date of the then current Term of this Lease.  Upon the timely giving of such notice, the Term of this Lease shall be deemed extended for the additional term in question upon all of the terms and conditions of this Lease in effect immediately preceding the commencement of such additional term, except that (i) the Basic Rent payable during each such additional term shall be as hereinafter set forth, (ii) the Building Expense Base during the first such additional term shall be the Building Expenses for calendar year 2016 and the Building Expense Base during the second such additional term shall be the Building Expenses for calendar year 2021, and (iii) Landlord shall have no obligation to reconstruct or renovate the Premises for Tenant’s occupancy during such additional term or to provide any allowance or contribution with respect thereto.  If Tenant fails to give timely notice, as aforesaid, Tenant shall have no further right to extend the Term of this Lease, time being of the essence of this Section 38(a).

 

(b)                                 The Basic Rent payable during each such additional term shall be based upon ninety-five percent (95%) of the Fair Market Rental Value, as defined in Section 39(a) below, as of the commencement of such additional term, of the Premises then demised to Tenant; provided, however, that in no event shall the sum of the Basic Rent and Building Expense Escalation Charges to be payable for any year during such additional term be less than the sum of Basic Rent and Building Expense Escalation Charges which were payable for the twelve (12) month period immediately preceding the commencement of such additional term.

 

(c)                                  Tenant shall have no further option to extend the Term of this Lease other than the two (2) additional five (5) year terms herein provided.

 

(d)                                 Notwithstanding the fact that upon Tenant’s exercise of the herein option(s) to extend the Term of this Lease such extension(s) shall be self-executing, as aforesaid, the parties shall promptly execute a lease amendment reflecting the applicable additional term after Tenant exercises the option in question and the Basic Rent payable in respect of such additional term has been determined.  The execution of such lease amendment shall not be deemed to waive any of the conditions to Tenant’s exercise of its rights under Section 38(a), unless otherwise specifically provided in such lease amendment.

 

39.                                                                                                                                      Definition of Fair Market Rental Value.  For the purposes of this Lease:

 

(a)                                  “Fair Market Rental Value” shall be computed as of the date in question at the then current annual rental charge (i.e., the sum of Basic Rent plus escalation and other charges), 

 

25

 

including provisions for subsequent increases and other adjustments, for leases and agreements to lease then currently being negotiated or executed for comparable space located in commercial buildings aged and equipped comparably with the Building located within a two (2) mile radius of the Building.  In determining Fair Market Rental Value, the following factors, among others, shall be taken into account and given effect: size, condition and location of premises, lease term, condition of building, tenant incentives and inducements, amenities and services provided by the landlord, and the applicable Building Expense Base for the additional term set forth above.

 

(b)                                 After Landlord’s receipt of Tenant’s notice to extend (if Tenant shall timely exercise such right), Landlord shall designate Fair Market Rental Value and Landlord shall furnish data in support of such designation.  If Tenant, acting in good faith, disagrees with Landlord’s designation of such Fair Market Rental Value, Tenant shall have the right, by written notice given within thirty (30) days after Tenant has been notified of Landlord’s designation, to submit such Fair Market Rental Value to arbitration.  If Tenant fails to timely exercise such right, Tenant shall be deemed to have accepted Landlord’s designation of Fair Market Rental Value for the additional term in question.  If Tenant timely exercises such right, Fair Market Rental Value shall be submitted to arbitration as follows: Fair Market Rental Value shall be determined by impartial arbitrators, one to be chosen by Landlord, one to be chosen by Tenant, and a third to be selected, if necessary, as below provided.  The unanimous written decision of the two first chosen, without selection and participation of a third arbitrator, or otherwise, the written decision of a majority of three arbitrators chosen and selected as aforesaid, shall be conclusive and binding upon Landlord and Tenant.  Landlord and Tenant shall each notify the other of its chosen arbitrator within fifteen (15) days following the call for arbitration and, unless such two arbitrators shall have reached a unanimous decision within thirty (30) days after their designation, they shall so notify the President of the Boston Bar Association (or such organization as may succeed to said Boston Bar Association) and request him or her to select an impartial third arbitrator, to determine Fair Market Rental Value as herein defined.  Each arbitrator shall be an experienced real estate broker dealing with like types of properties.  Such third arbitrator and the first two chosen shall, subject to commercial arbitration rules of the American Arbitration Association, hear the parties and their evidence and render their decision within thirty (30) days following the conclusion of such hearing and notify Landlord and Tenant thereof.  Landlord and Tenant shall bear the expense of the third arbitrator (if any) equally.  The decision of the arbitrators shall be final and binding on the parties and judgment thereon may be entered in the Superior court having jurisdiction over the Premises; and the parties consent to the jurisdiction of such court and further agree that any process or notice of motion or other application to the court or a judge thereof may be served outside the Commonwealth of Massachusetts by registered mail or by personal service, provided a reasonable time for appearance is allowed.  If the dispute between the parties as to a Fair Market Rental Value has not been resolved before the commencement of Tenant’s obligation to pay rent based upon such Fair Market Rental Value, then Tenant shall pay Basic Rent and other charges under the Lease in respect of the premises in question based upon the Fair Market Rental Value designated by Landlord until either the agreement of the parties as to the Fair Market Rental Value, or the decision of the arbitrators, as the case may be, at which time Tenant shall pay any underpayment of rent and other charges to Landlord, or Landlord shall refund any overpayment of rent and other charges to Tenant.

 

26

 

40.                                 Nitrogen Storage.  Tenant shall have the right to purchase and install, at its sole cost and expense, two (2) 1,500 liter nitrogen storage tanks (the “Nitrogen Storage Tanks”) on a concrete pad outside of the Building substantially in the location shown on Exhibit 3, which concrete pad shall be constructed by Tenant.  The size, design, screening and installation of or for the Nitrogen Storage Tanks and the concrete pad shall be subject to Landlord’s prior written approval.  In addition, the work required to install the Nitrogen Storage Tanks and the concrete pad shall be performed by Tenant in accordance with plans and specifications therefor (including plans and specifications detailing the method of connection of the Nitrogen Storage Tanks to the Premises) prepared by Tenant and approved by Landlord and otherwise in accordance with the terms and provisions of this Lease (including, without limitation, Section 8 hereof).  Without limiting the foregoing, Tenant shall provide to Landlord (i) an engineering report verifying that the Nitrogen Storage Tanks (including the installation thereof and emissions therefrom) complies and will comply with all applicable legal requirements, (ii) copies of any licenses and permits for the use of such Nitrogen Storage Tanks, and (iii) specifications for the Nitrogen Storage Tanks themselves.  Tenant hereby assumes all risk associated with the use of the Nitrogen Storage Tanks and the concrete pad and Tenant shall, at its sole cost and expense, maintain and repair such Nitrogen Storage Tanks and concrete pad in good order and condition throughout the Term of this Lease, reasonable wear and tear and damage by fire or other casualty excepted.  Tenant shall not be obligated to remove the Nitrogen Storage Tanks or concrete pad at the end of the Term of this Lease unless the Nitrogen Storage Tanks are not owned by Tenant on an unencumbered basis at the end of the Term, in which event Tenant shall remove the Nitrogen Storage Tanks and concrete pad at the end of the Term and restore the portion of the Property where the Nitrogen Storage Tanks and concrete pad were located to the condition it was in prior to the installation thereof, reasonable wear and tear excepted.  Tenant acknowledges and agrees that Landlord has made no representation or warranty as to the condition of the Property and that it is accepting the applicable portion thereof in “as-is” condition.  Tenant’s indemnification and insurance obligations set forth in this Lease (as well as the provisions of Section 33 above) shall also apply to the use and operation of the Nitrogen Storage Tanks and the portion of the Property where it is located.

 

41.                                 Miscellaneous.  This Lease shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, subject to the provisions of this Lease.  No consent or waiver, express or implied, by Landlord or Tenant to or of any breach of any agreement or duty to the other shall be construed as a consent or waiver to or of any other breach of the same or any other agreement or duty.  If any provision of this Lease or portion of such provision or the application thereof to any person or circumstance is for any reason held invalid, the remainder of this Lease (or the remainder of such provision) and the application thereof to other persons or circumstances shall not be affected thereby.  This Lease contains all of the agreements of the parties with respect to the subject matter thereof, supersedes all prior dealings between the parties with respect such subject matter and may be amended only by instruments in writing executed by the parties hereto.  This Lease may be signed in any number of counterparts, all of which together shall constitute one instrument; and may be signed by faxed copies, which shall be deemed to be originals.

 

42.                                 Parties’ Authority.  Each of Tenant and Landlord hereby represents and warrants to the other that (i) it has the full right, power and authority to enter into this Lease upon the terms and conditions herein set forth, (ii) each of the persons signing this Lease on its behalf has the requisite authority to bind it by his/her signature, and (iii) the Lease, upon the full execution and 

 

27

 

delivery thereof, shall constitute its legal and binding obligations enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  Tenant hereby further represents and warrants to Landlord that it is duly and validly organized and existing and in good standing in the State of Delaware and qualified to do business in the Commonwealth of Massachusetts.

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed, under seal, by persons hereunto duly authorized, as of the Execution Date stated in Exhibit 1.

 

	
LANDLORD:
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
SYNTA PHARMACEUTICALS CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Steven Colangelo
    	
By:
    	
/s/   Keith Ehrlich
    
	
Steven   Colangelo, as Trustee of
    	
 
    	
Name:   Keith Ehrlich
    
	
125   Hartwell Trust and not
    	
 
    	
Title:   CFO
    
	
individually
    	
 
    	
Hereunto   Duly Authorized
    

 

28

 

EXHIBIT 2

 

PLANS SHOWING LOCATION OF PREMISES

 

29

 

EXHIBIT 3

 

PLAN SHOWING LOCATION OF EXTERIOR PAD

FOR NITROGEN STORAGE TANKS

 

30

 

EXHIBIT 4

 

CLEANING SECIFICATIONS

 

A.                                    OFFICE AREAS:

 

Daily  (Monday through Friday, inclusive, holiday excepted):

 

1.                                  Empty and clean all waste receptacles and ash trays and remove waste material from the premises; wash receptacles as necessary.

 

2.                                  Sweep and dust mop all uncarpeted areas using a dust treated mop.

 

3.                                  Vacuum all rugs and carpeted areas.

 

4.                                  Hand dust and wipe clean with treated cloths all horizontal surfaces, including furniture, office equipment, window sills, chair rails, convector tops, door ledges, base boards, and grill work, within normal reach.

 

5.                                  Wash clean all water fountains and adjacent floor areas.

 

6.                                  Upon completion of cleaning, all lights will be turned off and all doors locked, leaving the premises in an orderly condition.

 

Weekly:

 

1.                                  Brush and hand dust all carpet edges or other areas non-accessible to vacuum attachments.

 

2.                                  Remove all finger marks from private door entrances, light switches and doorways.

 

3.                                  Dust all ventilating, air conditioning, louvers and grills.

 

Every Month or When Needed:

 

1.                                  All resilient tile floors to be washed or cleaned with dry system cleaner.

 

Quarterly:

 

1.                                  Dusting of accessible surfaces not reached by daily cleaning.

 

2.                                  Move and vacuum clean underneath all furniture that can reasonably be moved.

 

31

 

3.                                  Clean inside of all windows as needed.  Clean outside of all windows weather permitting.

 

B.                                          LAVATORIES:

 

Daily  (Monday through Friday, inclusive, holiday excepted):

 

1.                                       Sweep and wash floors.

 

2.                                       Wash and polish all mirrors, powder shelves, bright work, flushometers, piping and toilet seat hinges.

 

3.                                       Wash both sides of all toilet seats.

 

4.                                       Wash all basins, bowls and urinals.

 

5.                                       Dust all partitions, tile walls, dispensers and receptacles.

 

6.                                       Dust and clean all powder room fixtures.

 

7.                                       Empty and clean paper towel and sanitary disposal receptacles.

 

8.                                       Remove waste paper and refuse from the premises.

 

9.                                       Refill tissue holders, soap dispensers, towel dispenser, sanitary dispensers, materials to be furnished by Landlord.

 

Monthly:

 

1.                                       Machine scrub lavatory floors.

 

2.                                       Wash all partitions and tile walls in lavatories.

 

32

 

EXHIBIT 5

 

RULES AND REGULATIONS

 

Tenant shall comply with the following Rules and Regulations and with such other reasonable Rules and Regulations as Landlord may promulgate for the Building and the Property:

 

(1)                                  The sidewalks, entrances, driveways, stairways and halls shall not be obstructed or encumbered by any tenant or used for any purpose other than for ingress to and egress from the leased premises and for delivery of merchandise and equipment in a prompt and efficient manner using loading docks and passageways designated for such delivery by Landlord.  There shall not be used in any space, either by any tenant or by jobbers or others in the delivery or receipt of merchandise, any hand trucks, except those equipped with rubber tires and sideguards.

 

(2)                                  The water and wash closets and plumbing fixtures shall not be used for any purposes other than those for which they were designed or constructed and no sweepings, rubbish, rags, acids or other substances shall be deposited therein, and the expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the tenant who, or whose agents, employees or visitors, shall have caused it.

 

(3)                                  No carpet, rug or other article shall be hung or shaken out of any window of the Building; and no tenant shall sweep or throw or permit to be swept or thrown from the leased premises any dirt or other substances out of the doors or windows or stairways of the Building and no tenant shall use, keep or permit to be used or kept any foul or noxious gas or substance in its leased premises or permit or suffer its leased premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the Building by reason of noise, odors and/or vibrations, or interfere in any way with other tenants or those having business therein, nor shall any animals or birds be kept in or about the Building.

 

(4)                                  No awnings or other projections shall be attached to the outside walls of the Building without the prior written consent of Landlord.

 

(5)                                  No sign, advertisement, notice or other lettering shall be exhibited, inscribed, painted or affixed by any tenant on any part of the outside of the leased premises or the Building or on the inside of the leased premises if the same is visible from the outside of the leased premises without the prior written consent of Landlord.  In the event of the violation of the foregoing by any tenant, Landlord may remove same without any liability, and may charge the expense incurred by such removal to the tenant(s) violating this rule.

 

(6)                                  No tenant shall mark, paint, drill into, or in any way deface any part of the leased premises or the Building of which they form a part.  No boring, cutting or stringing of wires shall be permitted, except with the prior written consent of Landlord, and as Landlord may direct.  No tenant shall lay linoleum, or other similar floor covering, so that the same shall come in direct contact with the floor of the leased premises, and, if linoleum or other similar floor covering is desired to be used, an interlining of builder’s deadening felt shall be first affixed to the floor, by a 

 

33

 

paste or other material, soluble in water, the use of cement or other similar adhesive material being expressly prohibited.

 

(7)                                  No additional locks or bolts of any kind shall be placed upon any of the doors or windows by any tenant, nor shall any changes be made in existing locks or mechanism thereof.  Each tenant must, upon the termination of its tenancy, restore to Landlord all keys of stores, offices and electrical rooms, either furnished to, or otherwise procured by, such tenant, and in the event of the loss of any keys, so furnished, such tenant shall pay to Landlord the cost thereof.

 

(8)                                  Freight, furniture, business equipment, merchandise and bulky matter of any description shall be delivered to and removed from the leased premises only on loading dock(s) in the rear of the leased premises.

 

(9)                                  Canvassing, soliciting and peddling in the Building and the Property is prohibited and each tenant shall cooperate to prevent the same.

 

(10)                            Landlord shall have the right to prohibit any advertising by any tenant which, in Landlord’s opinion, tends to impair the reputation of the Building or its desirability as a building for offices and research and development, and upon written notice from Landlord, such tenant shall refrain from or discontinue such advertising.

 

(11)                            No tenant shall bring or permit to be brought or kept in or on the leased premises, any inflammable, combustible or explosive fluid, material, chemical or substance, without the prior written consent of Landlord, which consent will not be unreasonably withheld or delayed, or cause or permit any odors, of cooking or other processes, or any unusual or other objectionable odors, to permeate in or emanate from the leased premises.

 

34

 

EXHIBIT 6

 

LIST OF LANDLORD’S PROPERTY

 

12) Laboratory 217 — (5) Fume Hoods, (1) six foot BioSafety Cabinet, (1) Scottsman Ice Machine, (2) Cold Rooms, (1) Warm Room, and over 300’ linear feet of epoxy top Laboratory Benches with integral desks.  Lab and desk chairs included.

 

13) Wash 219 — (1) American Sterilizer Autoclave, and (1) Better Built Glassware Washer.

 

16) Equipment 233 — Fluid Solutions Reverse Osmosis DeIonization Pure Water System, Electro Steam Generator for Autoclave.

 

17) Electric 232 — Kohler Standby Generator Transfer Switch connected to a Kohler 80 kW, Natural Gas Fired Generator.

 

18) IT 231 — Telephone System including integrated Voicemail System.

 

31) Lunch 251 — (5) rectangular dining tables, (2) round dining tables, (32) dining chairs, refrigerator, dishwasher, (2) microwaves, 16 linear feet of cabinet space and 8 feet of upper cabinet space.

 

32) Lab 254 — 90 linear feet of bench space, (1) 4’ Fume Hood

 

33) Lab 252 — 30 linear feet of bench space, (1) 4’ Baker BioSafety Cabinet.

 

34) Lab 256 — 60 linear feet of bench space, (1) 4’ Fume Hood.

 

36) Facility Wide — Safety Equipment such as (20) Fire Extinguisher, Fire Blankets, Safety Showers and Eye Wash Stations.  Standby power outlets distributed throughout major laboratory areas, connections for equipment alarms connected to central station monitoring, and perimeter alarm system independent of card access system also covered by central station monitoring.

 

The above items are based upon the architectural floor plan numbering scheme attached hereto.

 

35

 

FLOOR PLAN

 

36

 

EXHIBIT 7

 

DECOMMISSIONING STANDARDS

 

Standards for Decommissioning of Space at 125 Hartwell Avenue

 

Section 1 - Purpose

 

The purpose of decommissioning of space is to make safe the decommissioned space and to provide assurances of proper cleaning and decontamination of said space for the next occupant. The purpose of setting forth actions taken with respect to decontamination of space is to document the actions taken and to allow the owner or the next occupant to make their own judgment with respect to the sufficiency of such actions.

 

Section 2 - Activities & Schedule

 

The following are the specific actions to be taken with respect to the decommissioning of said space.

 

Chemicals - (Removal & Disposal)

 

·                                          All hazardous or toxic chemicals are to be removed from the space before the expiration or earlier termination of the Lease or other mutually agreed deadline except for any cleaning materials under the control of the landlord’s or tenant’s cleaning contractor.

 

·                                          The decommissioner shall hire a licensed contractor to pack, remove, and transport to a new location all usable chemicals.  Process and/or results are to be documented.

 

·                                          The decommissioner shall hire a licensed contractor to pack, remove, and transport for proper disposal all unusable chemicals.  Process and/or results are to be documented.

 

·                                          The decommissioner shall hire a licensed contractor to remove and dispose properly all limestone chips in the Wastewater Neutralization Tank.  The contractor will clean the tank and replace with fresh limestone.  Process and/or results are to be documented.

 

Biological Materials - (Removal & Disposal)

 

·                                          All biological materials will be removed from the space before the expiration or earlier termination of the Lease or other mutually agreed deadline.

 

·                                          The decommissioner shall hire a licensed contractor to pack, remove, and transport to a new location all usable biological materials.  Process and/or results are to be documented.

 

37

 

·                                          The decommissioner shall hire a licensed contractor to pack, remove, and transport for proper disposal all unusable biological materials.  Process and/or results are to be documented.

 

·                                          Decontamination of Storage Equipment and Work Surfaces detailed below.

 

Radioactive Materials - Disposition

 

·                                          The decommissioner shall hire a licensed contractor to perform wipe tests and provide count results to the extent required by applicable law.

 

·                                          Wipe tests will be performed prior to the expiration or earlier termination of the Lease or other mutually agreed deadline.  Process and/or results are to be documented.

 

Equipment -

 

·                                          All Equipment listed on Exhibit 6 will be decontaminated prior to the expiration or earlier termination of the Lease or other mutually agreed deadline.

 

·                                          Chemical Fume Hoods will be steam cleaned using an organic peroxide vapor on the outside and inside of the cabinet by a licensed contractor.  Note:  Steam cleaning will be performed to all exposed surfaces. No ductwork or elements above the suspended ceiling will be treated.  Each Fume Hood will have attached a decontamination sheet signed by the contractor.  Process and/or results are to be documented.

 

·                                          Biological Safety Cabinets will be decontaminated by a licensed contractor using paraformaldehyde gas and post-treatment cleaning.  No ductwork or elements above the suspended ceiling will be treated. Process and/or results are to be documented.

 

·                                          Warm and Cold Room Interiors and Door Fronts will be steam cleaned using an organic peroxide vapor.  Process and/or results are to be documented.

 

General Laboratory Space

 

·                                          The decommissioner shall hire a licensed contractor to wipe down all Laboratory Floors and Countertops with a 10% bleach solution or equivalent.  Process and/or results are to be documented.

 

·                                          All Laboratory space to be wiped down prior to the expiration or earlier termination of the Lease or other mutually agreed deadline.

 

38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}]]