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<br />slWivAy seenring the samo7 and each of theln, are re-
<br />quired to bo clone or performed, ;111,1 will not make or
<br />stiffer to bo m;,de any default therein, or in any coveu;_uut,
<br />eondition or stipulation therein eonta llpd. If till, ('om-
<br />l)nny shall fail to keop this covenant, till, 'Trustees may,
<br />and upon Be inpust of the holder or linlllers of one m
<br />more of the notes secured herl,by, and upon being pro -
<br />vided with adequate funds for such purpose, and indem-
<br />nified to their• satisfaction, shall, without In jndice to
<br />the rights arising- by reason of such dofault, make such
<br />pad r�_ents, and cause to be performed, so far as they laR--
<br />fully Cal), any such: covenants as to which the Company
<br />,liall be in default, and _ill amounts dins paid, with iutcr-
<br />est thereon at the rate of six 1wi. contnm per annum,
<br />sh:_�I1 be a charge Upon the Ill outgmgnil property
<br />Mount to the notes hereby seeun d, at"! Ina - also he
<br />fortllwitli stied for and rceovered of the Company in an
<br />appropriate action for that purpose.
<br />SEC 1.0. They Anyany (mmmnts al"I agrees that there
<br />shali ucver be issued or o!itstalidiu,, ally of the nnderl�-
<br />in; bonds, except the $627,000, par value, thereof noW out -
<br />standing.
<br />Sm. 11. The Company covenants that it gill not de-
<br />clare or pay any dividends on z1, i - or its ea pi to l stock
<br />nnless, after providing for the pn. neul of such proposed
<br />dividend, the surplus earnings reuminiil o1, hall(] o\-er
<br />and ahovo all interest charges, ol_,cratin mplow.s (iii -
<br />chidin g in sueli operating expenses tav s, ius"r;l we and
<br />a. reasonable expenditure to provido for rep ;sirs, 11mi_u-
<br />terat1co and reumals), (Upreciation, amortization of bond
<br />and note discount, if such amulizatilm shall have beau
<br />required by any -'golieral or order of the 11)ailro pi
<br />Commission of the State of California, and all other
<br />HJ
<br />charges AMelt by lam- or by order of the Railroad Coinruis-
<br />sio, of the State of California are required to be deducted
<br />i1, onler to ascertain the net profits of the corporation
<br />applicable to the payncont of dh idends, sha1.1, ns ascer-
<br />tained and (Wifiod to by a ebartered accountant ap-
<br />proved b*- the Trust C -, outpan. be at least double the com-
<br />bined annual lute +rest charge mi (1) the notes then out -
<br />standing snider this Indenture, and (2) all other indebt-
<br />edness secured 1, *- a lien or liens prior to the lien of this
<br />Indenture upon till or any part of the mortgaged prop-
<br />erty.
<br />ARTICLE III.
<br />_All or any of tile notes issued hereunder and secured
<br />Im -eby may he redeemed by the Company on April 1 -,
<br />1915, or on October 1, Wq at 101 per cenhun of
<br />the principal, and accrued interest, or on any inter-
<br />est dnY thereafter at par, and accrued interest. If
<br />the Conipany shall elect to re(lcenu any of the notes
<br />hereunder it shall notify the 'Trust Company at least
<br />thirty- -five days prior to the interest data o1, -which it is
<br />proposed to redeem said notes, of tile, ag-g-re "ate principal
<br />amount of dotes Mich the ('onnpnn.- desires to redoeni.
<br />If it is desired to rodeenl less than till, whole issue, the
<br />Trust Company shall theroupon draw hr lot <I number of
<br />notes Njuivalent to the amount specified. and shall certify
<br />to the ( "omp;nt'- the runnbo rs of the note; so drawn aml
<br />tl!e nauwes and addresses of any re istered hoblers there-
<br />of. 11' all or ally of the notes to he redeeIuod helow,• to
<br />re'istered holders, the Company shall give thiit.- days'
<br />notice in writing, by mail, to such registered holders that
<br />said notes are Balled for payment o1, the nest interest day
<br />thcrcan,r If tdl or any- of the notes to he re-
<br />
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