Document:

Exhibit 10.24

 

AMENDED AND RESTATED TRUST AGREEMENT

 

among

 

 

GKK CAPITAL LP,

as Depositor

 

 

JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION,

as Property Trustee

 

 

CHASE BANK USA, NATIONAL ASSOCIATION,

as Delaware Trustee

 

and

 

THE ADMINISTRATIVE TRUSTEES NAMED HEREIN,

as Administrative Trustees

 

 

Dated as of January 27, 2006

 

 

GRAMERCY CAPITAL TRUST III

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  DEFINED TERMS

  	
  1

  
	
   

  	
   

  
	
  SECTION 1.1.

  	
  Definitions

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II

  	
  THE TRUST

  	
  11

  
	
   

  	
   

  
	
  SECTION 2.1.

  	
  Name

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 2.2.

  	
  Office of the Delaware Trustee; Office of the Trust

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 2.3.

  	
  Initial Contribution of Trust Property; Fees, Costs
  and Expenses

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 2.4.

  	
  Purposes of Trust

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 2.5.

  	
  Authorization to Enter into Certain Transactions

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 2.6.

  	
  Assets of Trust

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 2.7.

  	
  Title to Trust Property

  	
  15

  
	
   

  	
   

  
	
  ARTICLE III

  	
  PAYMENT ACCOUNT; PAYING AGENTS

  	
  15

  
	
   

  	
   

  
	
  SECTION 3.1.

  	
  Payment Account

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 3.2.

  	
  Appointment of Paying Agents

  	
  15

  
	
   

  	
   

  
	
  ARTICLE IV

  	
  DISTRIBUTIONS; REDEMPTION

  	
  16

  
	
   

  	
   

  
	
  SECTION 4.1.

  	
  Distributions

  	
  16

  
	
   

  	
   

  	
   

  
	
  SECTION 4.2.

  	
  Redemption

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 4.3.

  	
  Subordination of Common Securities

  	
  20

  
	
   

  	
   

  	
   

  
	
  SECTION 4.4.

  	
  Payment Procedures

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 4.5.

  	
  Withholding Tax

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 4.6.

  	
  Tax Returns and Other Reports

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 4.7.

  	
  Payment of Taxes, Duties, Etc. of the Trust

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 4.8.

  	
  Payments under Indenture or Pursuant to Direct
  Actions

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 4.9.

  	
  Exchanges

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 4.10.

  	
  Calculation Agent

  	
  23

  
	
   

  	
   

  	
   

  
	
  SECTION 4.11.

  	
  Certain Accounting Matters

  	
  23

  
	
   

  	
   

  
	
  ARTICLE V

  	
  SECURITIES

  	
  24

  
	
   

  	
   

  
	
  SECTION 5.1.

  	
  Initial Ownership

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 5.2.

  	
  Authorized Trust Securities

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 5.3

  	
  Issuance of the Common Securities; Subscription and
  Purchase of Notes

  	
  25

  
				

i

 

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 5.4.

  	
  The Securities Certificates

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 5.5.

  	
  Rights of Holders

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 5.6.

  	
  Book-Entry Preferred Securities

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 5.7.

  	
  Registration of Transfer and Exchange of Preferred
  Securities Certificates

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 5.8.

  	
  Mutilated, Destroyed, Lost or Stolen Securities
  Certificates

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 5.9.

  	
  Persons Deemed Holders

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 5.10.

  	
  Cancellation

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 5.11.

  	
  Ownership of Common Securities by Depositor

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 5.12.

  	
  Restricted Legends

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 5.13.

  	
  Form of Certificate of Authentication

  	
  33

  
	
   

  	
   

  
	
  ARTICLE VI

  	
  MEETINGS; VOTING; ACTS OF HOLDERS

  	
  34

  
	
   

  	
   

  
	
  SECTION 6.1.

  	
  Notice of Meetings

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 6.2.

  	
  Meetings of Holders of the Preferred Securities

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 6.3.

  	
  Voting Rights

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 6.4.

  	
  Proxies, Etc

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 6.5.

  	
  Holder Action by Written Consent

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 6.6.

  	
  Record Date for Voting and Other Purposes

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 6.7.

  	
  Acts of Holders

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 6.8.

  	
  Inspection of Records

  	
  36

  
	
   

  	
   

  	
   

  
	
  SECTION 6.9.

  	
  Limitations on Voting Rights

  	
  36

  
	
   

  	
   

  	
   

  
	
  SECTION 6.10.

  	
  Acceleration of Maturity; Rescission of Annulment;
  Waivers of Past Defaults

  	
  37

  
	
   

  	
   

  
	
  ARTICLE VII

  	
  REPRESENTATIONS AND WARRANTIES

  	
  39

  
	
   

  	
   

  
	
  SECTION 7.1.

  	
  Representations and Warranties of the Property
  Trustee and the Delaware Trustee

  	
  39

  
	
   

  	
   

  	
   

  
	
  SECTION 7.2.

  	
  Representations and Warranties of Depositor

  	
  40

  
	
   

  	
   

  
	
  ARTICLE VIII

  	
  THE TRUSTEES

  	
  41

  
	
   

  	
   

  
	
  SECTION 8.1.

  	
  Number of Trustees

  	
  41

  
	
   

  	
   

  	
   

  
	
  SECTION 8.2.

  	
  Property Trustee Required

  	
  42

  
	
   

  	
   

  	
   

  
	
  SECTION 8.3.

  	
  Delaware Trustee Required

  	
  42

  
				

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 8.4.

  	
  Appointment of Administrative Trustees

  	
  43

  
	
   

  	
   

  	
   

  
	
  SECTION 8.5.

  	
  Duties and Responsibilities of the Trustees

  	
  43

  
	
   

  	
   

  	
   

  
	
  SECTION 8.6.

  	
  Notices of Defaults and Extensions

  	
  44

  
	
   

  	
   

  	
   

  
	
  SECTION 8.7.

  	
  Certain Rights of Property Trustee

  	
  45

  
	
   

  	
   

  	
   

  
	
  SECTION 8.8.

  	
  Delegation of Power

  	
  47

  
	
   

  	
   

  	
   

  
	
  SECTION 8.9.

  	
  May Hold Securities

  	
  47

  
	
   

  	
   

  	
   

  
	
  SECTION 8.10.

  	
  Compensation; Reimbursement; Indemnity

  	
  48

  
	
   

  	
   

  	
   

  
	
  SECTION 8.11.

  	
  Resignation and Removal; Appointment of Successor

  	
  49

  
	
   

  	
   

  	
   

  
	
  SECTION 8.12.

  	
  Acceptance of Appointment by Successor

  	
  50

  
	
   

  	
   

  	
   

  
	
  SECTION 8.13.

  	
  Merger, Conversion, Consolidation or Succession to
  Business

  	
  50

  
	
   

  	
   

  	
   

  
	
  SECTION 8.14.

  	
  Not Responsible for Recitals Issuance of Securities
  and Representations

  	
  51

  
	
   

  	
   

  	
   

  
	
  SECTION 8.15.

  	
  Property Trustee May File Proofs of Claim

  	
  51

  
	
   

  	
   

  	
   

  
	
  SECTION 8.16.

  	
  Reports to the Property Trustee

  	
  52

  
	
   

  	
   

  
	
  ARTICLE IX

  	
  TERMINATION, LIQUIDATION AND MERGER

  	
  52

  
	
   

  	
   

  
	
  SECTION 9.1.

  	
  Dissolution Upon Expiration Date

  	
  52

  
	
   

  	
   

  	
   

  
	
  SECTION 9.2.

  	
  Early Termination

  	
  52

  
	
   

  	
   

  	
   

  
	
  SECTION 9.3.

  	
  Termination

  	
  53

  
	
   

  	
   

  	
   

  
	
  SECTION 9.4.

  	
  Liquidation

  	
  53

  
	
   

  	
   

  	
   

  
	
  SECTION 9.5.

  	
  Mergers, Consolidations, Amalgamations or
  Replacements of Trust

  	
  55

  
	
   

  	
   

  
	
  ARTICLE X

  	
  MISCELLANEOUS PROVISIONS

  	
  56

  
	
   

  	
   

  
	
  SECTION 10.1.

  	
  Limitation of Rights of Holders

  	
  56

  
	
   

  	
   

  	
   

  
	
  SECTION 10.2.

  	
  Agreed Tax Treatment of Trust and Trust Securities

  	
  56

  
	
   

  	
   

  	
   

  
	
  SECTION 10.3.

  	
  Amendment

  	
  56

  
	
   

  	
   

  	
   

  
	
  SECTION 10.4.

  	
  Separability

  	
  58

  
	
   

  	
   

  	
   

  
	
  SECTION 10.5.

  	
  Governing Law

  	
  58

  
	
   

  	
   

  	
   

  
	
  SECTION 10.6.

  	
  Successors

  	
  58

  
	
   

  	
   

  	
   

  
	
  SECTION 10.7.

  	
  Headings

  	
  58

  
	
   

  	
   

  	
   

  
	
  SECTION 10.8.

  	
  Reports, Notices and Demands

  	
  58

  
				

 

iii

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.9.

  	
  Agreement Not to Petition

  	
  59

  
	
   

  	
   

  	
   

  
	
  SECTION 10.10.

  	
  Counterparts.

  	
  60

  
				

 

	
  Exhibit A

  	
   

  	
  Certificate of
  Trust of Gramercy Capital Trust III

  
	
  Exhibit B

  	
   

  	
  Form of
  Common Securities Certificate

  
	
  Exhibit C

  	
   

  	
  Form of
  Preferred Securities Certificate

  
	
  Exhibit D

  	
   

  	
  Junior
  Subordinated Indenture

  
	
  Exhibit E

  	
   

  	
  Form of
  Transferee Certificate to be Executed for Transferees

  
	
  Exhibit F

  	
   

  	
  Form of
  Officer’s Financial Certificate of the Depositor

  

 

iv

 

THIS AMENDED AND RESTATED
TRUST AGREEMENT, dated as of January 27, 2006, among (i) GKK
Capital LP, a Delaware limited partnership (including any successors or
permitted assigns, the “Depositor”),
(ii) JPMorgan Chase Bank, National Association, a national banking
association, as property trustee (in such capacity, the “Property Trustee”), (iii) Chase Bank USA, National Association, a national
banking association, as Delaware trustee (in such capacity, the “Delaware Trustee”), (iv) Marc
Holliday, an individual, Gregory F. Hughes, an individual and Hugh Hall, an
individual, each of whose address is c/o GKK Capital LP, 420 Lexington Avenue,
New York, NY 10170, as
administrative trustees (in such capacities, each an “Administrative Trustee” and, collectively,
the “Administrative Trustees”
and, together with the Property Trustee and the Delaware Trustee, the “Trustees”)
and (v) the several Holders, as hereinafter defined. 

 

WITNESSETH

 

WHEREAS, the
Depositor and the Delaware Trustee have heretofore created a Delaware statutory
trust pursuant to the Delaware Statutory Trust Act by entering into a Trust
Agreement, dated as of January 27, 2006 (the “Original Trust Agreement”),
and by executing and filing with the Secretary of State of the State of
Delaware the Certificate of Trust, substantially in the form attached as Exhibit A;
and

 

WHEREAS, the
Depositor and the Trustees desire to amend and restate the Original Trust
Agreement in its entirety as set forth herein to provide for, among other
things, (i) the issuance of the Common Securities by the Trust to the
Depositor, (ii) the issuance and sale of the Preferred Securities by the
Trust pursuant to the Purchase Agreements and (iii) the acquisition by the
Trust from the Depositor of all of the right, title and interest in and to the
Notes (as hereinafter defined);

 

NOW, THEREFORE, in
consideration of the agreements and obligations set forth herein and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each party, for the benefit of the other parties and for
the benefit of the Holders, hereby amends and restates the Original Trust
Agreement in its entirety and agrees as follows:

 

ARTICLE I

DEFINED TERMS

 

SECTION 1.1.  Definitions.

 

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

 

(a)           the terms defined in this Article I
have the meanings assigned to them in this Article I;

 

(b)           the words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”;

 

A-1

 

(c)           all accounting terms used but not
defined herein have the meanings assigned to them in accordance with United States
generally accepted accounting principles;

 

(d)           unless the context otherwise
requires, any reference to an “Article”, a “Section”, a “Schedule” or an “Exhibit”
refers to an Article, a Section, a Schedule or an Exhibit, as the case may
be, of or to this Trust Agreement;

 

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

 

(f)            a reference to the singular includes
the plural and vice versa; and

 

(g)           the masculine, feminine or neuter
genders used herein shall include the masculine, feminine and neuter genders.

 

“Act”
has the meaning specified in Section 6.7.

 

“Additional
Interest” has the meaning specified in Section 1.1 of the
Indenture.

 

“Additional
Interest Amount” means, with respect to Trust Securities of a given
Liquidation Amount and/or a given period, the amount of Additional Interest
paid by the Depositor on a Like Amount of Notes for such period.

 

“Additional Taxes”
has the meaning specified in Section 1.1 of the Indenture.

 

“Additional Tax
Sums” has the meaning specified in Section 10.5 of the
Indenture.

 

“Administrative
Trustee” means each of the Persons identified as an “Administrative
Trustee” in the preamble to this Trust Agreement, solely in
each such Person’s capacity as Administrative Trustee of the Trust and not in
such Person’s individual capacity, or any successor Administrative Trustee
appointed as herein provided.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person.  For the purposes
of this definition, “control” when used with respect to any specified Person
means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Applicable Depositary Procedures” means, with respect
to any transfer or transaction involving a Book-Entry Preferred Security, the rules and
procedures of the Depositary for such Book-Entry Preferred Security, in each
case to the extent applicable to such transaction and as in effect from time to
time.

 

“Bankruptcy Event” means, with respect to any Person:

 

F-2

 

(a) the entry
of a decree or order by a court having jurisdiction in the premises (i) judging
such Person a bankrupt or insolvent, (ii) approving as properly filed a
petition seeking reorganization, arrangement, adjudication or composition of or
in respect of such Person under any applicable Federal or state bankruptcy,
insolvency, reorganization or other similar law, (iii) appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of such Person or of any substantial part of its property or (iv) ordering
the winding up or liquidation of its affairs, and the continuance of any such
decree or order unstayed and in effect for a period of sixty (60) consecutive
days; or

 

(b) the
institution by such Person of proceedings to be adjudicated a bankrupt or
insolvent, or the consent by it to the institution of bankruptcy or insolvency
proceedings against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law, or the consent by
it to the filing of any such petition or to the appointment of a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official of
such Person or of any substantial part of its property, or the making by it of
an assignment for the benefit of creditors, or the admission by it in writing
of its inability to pay its debts generally as they become due and its
willingness to be adjudicated a bankrupt or insolvent, or the taking of
corporate action by such Person in furtherance of any such action.

 

“Bankruptcy Laws” means all Federal and state
bankruptcy, insolvency, reorganization and other similar laws, including the
United States Bankruptcy Code.

 

“Book-Entry Preferred Security” means a Preferred
Security, the ownership and transfers of which shall be made through book
entries by a Depositary.

 

“Business Day” means a day other than (a) a
Saturday or Sunday, (b) a day on which banking institutions in the City of
New York are authorized or required by law or executive order to remain closed
or (c) a day on which the Corporate Trust Office is closed for business.

 

“Calculation Agent” has the meaning specified in Section 4.10.

 

“Closing Date” has the meaning specified in the
Purchase Agreements.

 

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

 

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

 

F-3

 

“Common Securities Certificate” means a certificate
evidencing ownership of Common Securities, substantially in the form attached as
Exhibit B.

 

“Common Security” means an undivided beneficial
interest in the assets of the Trust, having a Liquidation Amount of $1,000 and
having the rights provided therefor in this Trust Agreement.

 

“Corporate Trust Office” means the principal office of
the Property Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of this Trust
Agreement is located at 600 Travis, 50th Floor, Houston, Texas 77019, Attn: Worldwide Securities
Services—Gramercy Capital Trust III.  Initially, all notices and
correspondence shall be addressed to Mudassir Mohamed, telephone (713)
216-2826.

 

“Definitive Preferred Securities Certificates” means
Preferred Securities issued in certificated, fully registered form that are not
Global Preferred Securities.

 

“Delaware Statutory Trust Act” means Chapter 38 of
Title 12 of the Delaware Code, 12 Del. Code § 3801 et seq., or any successor statute thereto, in each case as
amended from time to time.

 

“Delaware Trustee” means the Person identified as the “Delaware
Trustee” in the preamble to this Trust Agreement, solely in
its capacity as Delaware Trustee of the Trust and not in its individual
capacity, or its successor in interest in such capacity, or any successor
Delaware Trustee appointed as herein provided.

 

“Depositary” means an organization registered as a
clearing agency under the Exchange Act that is designated as Depositary by the
Depositor or any successor thereto. DTC will be the initial Depositary.

 

“Depositary Participant” means a broker, dealer, bank,
other financial institution or other Person for whom from time to time the
Depositary effects book-entry transfers and pledges of securities deposited
with the Depositary.

 

“Depositor” has the meaning specified in the preamble
to this Trust Agreement and any successors and permitted assigns.

 

“Depositor Affiliate” has the meaning specified in Section 4.9.

 

“Distribution Date” has the meaning specified in Section 4.1(a)(i).

 

“Distributions” means amounts payable in respect of
the Trust Securities as provided in Section 4.1.

 

“DTC” means The Depository Trust Company, a New York
corporation, or any successor thereto.

 

“Early Termination Event” has the meaning specified in
Section 9.2.

 

F-4

 

“EDGAR” has the meaning specified in Section 4.11(c).

 

“Event of Default” means any one of the following
events (whatever the reason for such event and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

 

(a) the
occurrence of a Note Event of Default; or

 

(b) default
by the Trust in the payment of any Distribution when it becomes due and
payable, and continuation of such default for a period of thirty (30) days; or

 

(c) default
by the Trust in the payment of any Redemption Price of any Trust Security when
it becomes due and payable; or

 

(d) default
in the performance, or breach, in any material respect of any covenant or
warranty of the Trustees in this Trust Agreement (other than those specified in
clause (b) or (c) above) and continuation of such default or breach
for a period of thirty (30) days after there has been given, by registered or
certified mail, to the Trustees and to the Depositor by the Holders of at least
twenty five percent (25%) in aggregate Liquidation Amount of the Outstanding
Preferred Securities a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 

(e) the
occurrence of a Bankruptcy Event with respect to the Property Trustee if a
successor Property Trustee has not been appointed within ninety (90) days
thereof.

 

“Exchange Act” means the Securities Exchange Act of
1934, and any successor statute thereto, in each case as amended from time to
time.

 

“Expiration Date” has the meaning specified in Section 9.1.

 

“Extension Period”
has the meaning specified in Section 4.1(a)(ii).

 

“Fiscal Year” shall be the fiscal year of the Trust,
which shall be the calendar year, or such other period as is required by the
Code.

 

“Fixed Rate Period”
shall mean the period through the interest payment date in January 2016.

 

“Global Preferred Security” means a Preferred
Securities Certificate evidencing ownership of Book-Entry Preferred Securities.

 

F-5

 

“Holder” means a Person in whose name a Trust Security
or Trust Securities are registered in the Securities Register; any such Person
shall be deemed to be a beneficial owner within the meaning of the Delaware
Statutory Trust Act.

 

“Indemnified Person” has the meaning specified in Section 8.10(c).

 

“Indenture” means the Junior Subordinated Indenture
executed and delivered by the Depositor and the Note Trustee contemporaneously
with the execution and delivery of this Trust Agreement, for the benefit of the
holders of the Notes, a copy of which is attached hereto as Exhibit D,
as amended or supplemented from time to time.

 

“Interest Payment
Date” has the meaning specified in Section 1.1 of the
Indenture.

 

“Investment Company Act” means the Investment Company
Act of 1940, or any successor statute thereto, in each case as amended from
time to time.

 

“Investment Company
Event” has the meaning specified in Section 1.1 of the
Indenture.

 

“LIBOR” has the meaning specified in Schedule A.

 

“LIBOR Business Day” has the meaning specified in Schedule A.

 

“LIBOR Determination Date” has the meaning specified
in Schedule A.

 

“Lien” means any lien, pledge, charge, encumbrance,
mortgage, deed of trust, adverse ownership interest, hypothecation, assignment,
security interest or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever.

 

“Like Amount” means (a) with respect to a
redemption of any Trust Securities, Trust Securities having a Liquidation
Amount equal to the principal amount of Notes to be contemporaneously redeemed
or paid at maturity in accordance with the Indenture, the proceeds of which
will be used to pay the Redemption Price of such Trust Securities, (b) with
respect to a distribution of Notes to Holders of Trust Securities in connection
with a dissolution of the Trust, Notes having a principal amount equal to the
Liquidation Amount of the Trust Securities of the Holder to whom such Notes are
distributed and (c) with respect to any distribution of Additional
Interest Amounts to Holders of Trust Securities, Notes having a principal
amount equal to the Liquidation Amount of the Trust Securities in respect of
which such distribution is made.

 

“Liquidation Amount” means the stated amount of $1,000
per Trust Security.

 

“Liquidation Date” means the date on which assets are
to be distributed to Holders in accordance with Section 9.4(a) hereunder
following dissolution of the Trust.

 

“Liquidation Distribution” has the meaning specified
in Section 9.4(d).

 

“Majority in Liquidation Amount” means Common or
Preferred Securities, as the case may be, representing more than fifty percent
(50%) of the aggregate Liquidation Amount of all (or a specified group of) then
Outstanding Common or Preferred Securities, as the case may be.

 

F-6

 

“Note Event of Default” means any “Event of
Default” specified in Section 5.1 of the
Indenture.

 

“Note Redemption Date” means, with respect to any
Notes to be redeemed under the Indenture, the date fixed for redemption of such
Notes under the Indenture.

 

“Note Trustee” means the Person identified as the “Trustee”
in the Indenture, solely in its capacity as Trustee pursuant to the
Indenture and not in its individual capacity, or its successor in interest in
such capacity, or any successor Trustee appointed as provided in the Indenture.

 

“Notes” means the Depositor’s Floating Rate Junior
Subordinated Notes issued pursuant to the Indenture.

 

“Officers’ Certificate” means a certificate signed by
the Chief Executive Officer, the President or an Executive Vice President, and
by the Chief Financial Officer, Treasurer or an Assistant Treasurer, of the
Depositor, and delivered to the Trustees. Any Officers’ Certificate delivered
with respect to compliance with a condition or covenant provided for in this
Trust Agreement (other than the certificate provided pursuant to Section 8.16
which is not an Officers’ Certificate) shall include:

 

(a) a
statement by each officer signing the Officers’ Certificate that such officer
has read the covenant or condition and the definitions relating thereto;

 

(b)  a brief
statement of the nature and scope of the examination or investigation
undertaken by such officer in rendering the Officers’ Certificate;

 

(c) a
statement that such officer has made such examination or investigation as, in
such officer’s opinion, is necessary to enable such officer to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and

 

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

 

“Operative Documents” means the Purchase Agreements,
the Indenture, the Trust Agreement, the Notes and the Trust Securities.

 

“Opinion of Counsel” means a written opinion of
counsel, who may be counsel for, or an employee of, the Depositor or any
Affiliate of the Depositor.

 

“Optional Note Redemption Price” means, with respect
to any Note to be redeemed on any Redemption Date under the Indenture, an
amount equal to one hundred percent (100%) of the outstanding principal amount
of such Note, together with accrued interest, including any Additional Interest
(to the extent legally enforceable), thereon through but not including the date
fixed as such Redemption Date.

 

F-7

 

“Optional Redemption Price” means, with respect to any
Trust Security, an amount equal to one hundred percent (100%) of the
Liquidation Amount of such Trust Security on the Redemption Date, plus
accumulated and unpaid Distributions to the Redemption Date, plus the related
amount of the premium, if any, and/or accrued interest, including Additional
Interest, if any, thereon paid by the Depositor upon the concurrent redemption
or payment at maturity of a Like Amount of Notes.

 

“Original Trust Agreement” has the meaning specified
in the recitals to this Trust Agreement.

 

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

 

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

 

(b) Trust
Securities for which payment or redemption money in the necessary amount has
been theretofore deposited with the Property Trustee or any Paying Agent in
trust for the Holders of such Trust Securities; provided
that if such Trust Securities are to be redeemed, notice of such redemption has
been duly given pursuant to this Trust Agreement; and

 

(c) Trust
Securities that have been paid or in exchange for or in lieu of which other
Trust Securities have been executed and delivered pursuant to the provisions of
this Trust Agreement, unless proof satisfactory to the Property Trustee is
presented that any such Trust Securities are held by Holders in whose hands
such Trust Securities are valid, legal and binding obligations of the Trust;

 

provided that in determining whether the Holders of the requisite Liquidation
Amount of the Outstanding Preferred Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Preferred
Securities owned by the Depositor, any Trustee or any Affiliate of the
Depositor or of any Trustee shall be disregarded and deemed not to be
Outstanding, except that (i) in determining whether any Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Preferred Securities that such Trustee knows to
be so owned shall be so disregarded and (ii) the foregoing shall not apply
at any time when all of the Outstanding Preferred Securities are owned by the
Depositor, one or more of the Trustees and/or any such Affiliate. Preferred
Securities so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the
Administrative Trustees the pledgee’s right so to act with respect to such
Preferred Securities and that the pledgee is not the Depositor, any Trustee or
any Affiliate of the Depositor or of any Trustee.

 

F-8

 

“Owner” means each Person who is the beneficial owner
of Book-Entry Preferred Securities as reflected in the records of the
Depositary or, if a Depositary Participant is not the beneficial owner, then
the beneficial owner as reflected in the records of the Depositary Participant.

 

“Paying Agent” means any Person authorized by the
Administrative Trustees to pay Distributions or other amounts in respect of any
Trust Securities on behalf of the Trust.

 

“Payment Account” means a segregated non-interest-bearing
corporate trust account maintained by the Property Trustee for the benefit of
the Holders in which all amounts paid in respect of the Notes will be held and
from which the Property Trustee, through the Paying Agent, shall make payments
to the Holders in accordance with Section 3.1, Section 4.1
and Section 4.2.

 

“Person” means a legal person, including any
individual, corporation, estate, partnership, joint venture, association, joint
stock company, company, limited liability company, trust, unincorporated
association or government, or any agency or political subdivision thereof, or
any other entity of whatever nature.

 

“Preferred Security” means an undivided beneficial
interest in the assets of the Trust, having a Liquidation Amount of $1,000 and
having the rights provided therefor in this Trust Agreement.

 

“Preferred Securities Certificate” means a certificate
evidencing ownership of Preferred Securities, substantially in the form
attached as Exhibit C.

 

“Property Trustee” means the Person identified as the “Property
Trustee” in the preamble to this Trust Agreement, solely in
its capacity as Property Trustee of the Trust and not in its individual
capacity, or its successor in interest in such capacity, or any successor
Property Trustee appointed as herein provided.

 

“Purchase Agreements” means the two (2) Purchase
Agreements, each executed and delivered by the Trust, the Depositor and the
Purchaser(s) named therein, as purchasers, contemporaneously with the execution
and delivery of this Trust Agreement, as amended from time to time.

 

“QIB”
means a “qualified institutional buyer” as
defined in Rule 144A under the Securities Act of 1933, as amended.

 

“QP”
means a “qualified purchaser” as defined in Section 2(a)(51) of the
Investment Company Act of 1940, as amended.

 

“QIB/QP”
means a QIB that is also a QP.

 

“Redemption Date” means, with respect to any Trust
Security to be redeemed, the date fixed for such redemption by or pursuant to
this Trust Agreement; provided
that each Note Redemption Date and the stated maturity (or any date of
principal repayment upon early maturity) of the Notes shall be a Redemption
Date for a Like Amount of Trust Securities.

 

F-9

 

“Redemption Price” means the Special Redemption Price
or Optional Redemption Price, as applicable. 
If the Depositor has redeemed the Notes at the Special Note Redemption
Price, the Trust shall redeem the Trust Securities at the Special Redemption
Price.  If the Depositor has redeemed the
Notes at the Optional Note Redemption Price, the Trust shall redeem the Trust
Securities at the Optional Redemption Price.

 

“Reference Banks” has the meaning specified in Schedule A.

 

“Responsible Officer” means, with respect to the
Property Trustee, the officer in the Worldwide Securities Services department
of the Property Trustee having direct responsibility for the administration of
this Trust Agreement.

 

“Securities Act” means the Securities Act of 1933, and
any successor statute thereto, in each case as amended from time to time.

 

“Securities Certificate” means any one of the Common
Securities Certificates or the Preferred Securities Certificates.

 

“Securities Register” and “Securities Registrar” have
the respective meanings specified in Section 5.7.

 

“Special Note Redemption Price” means, with respect to
any Note to be redeemed on any Redemption Date under the Indenture, an amount
equal to one hundred seven and one half percent (107.5%) of the outstanding
principal amount of such Note, together with accrued interest, including
Additional Interest, thereon through but not including the date fixed as such
Redemption Date.

 

“Special Redemption Price” means, with respect to any
Trust Security, an amount equal to one hundred seven and one half percent
(107.5%) of the Liquidation Amount of such Trust Security on the Redemption
Date, plus accumulated and unpaid Distributions to the Redemption Date, and/or
accrued interest, including Additional Interest, if any, thereon paid by the
Depositor upon the concurrent redemption or payment at maturity of a Like
Amount of Notes.

 

“Successor Securities” has the meaning specified in Section 9.5(a).

 

“Tax Event”
has the meaning specified in Section 1.1 of the Indenture.

 

“Trust” means the Delaware statutory trust known as “Gramercy Capital Trust III,” which was created on January 27,
2006 under the Delaware Statutory Trust Act pursuant to the Original Trust
Agreement and the filing of the Certificate of Trust, and continued pursuant to
this Trust Agreement.

 

“Trust Agreement” means this Amended and Restated
Trust Agreement, as the same may be modified, amended or supplemented from time
to time in accordance with the applicable provisions hereof, including all
Schedules and Exhibits.

 

“Trustees” means the Administrative Trustees, the
Property Trustee and the Delaware Trustee, each as defined in this Article I.

 

F-10

 

“Trust Property” means (a) the Notes, (b) any
cash on deposit in, or owing to, the Payment Account and (c) all proceeds
and rights in respect of the foregoing and any other property and assets for
the time being held or deemed to be held by the Property Trustee pursuant to
the trusts of this Trust Agreement.

 

“Trust Security” means any one of the Common
Securities or the Preferred Securities.

 

ARTICLE II

THE TRUST

 

SECTION 2.1.  Name.

 

The trust continued hereby shall be known as “Gramercy
Capital Trust III”, as such name may be modified from time to time by the
Administrative Trustees following written notice to the Holders of Trust Securities
and the other Trustees, in which name the Trustees may conduct the business of
the Trust, make and execute contracts and other instruments on behalf of the
Trust and sue and be sued.

 

SECTION 2.2.  Office of the Delaware Trustee;
Office of the Trust.

 

The address of the Delaware Trustee in the State of
Delaware is Chase Bank USA, National Association, 500 Stanton Christiana Road,
Building 4 (3rd Floor), Newark, DE 19713, Attention:  Worldwide Securities Services, or such other
address in the State of Delaware as the Delaware Trustee may designate by
written notice to the Holders, the Depositor, the Property Trustee and the
Administrative Trustees. The principal executive office of the Trust is 420
Lexington Avenue, New York, NY 10170, Attention:  Gregory F. Hughes, as such address may be
changed from time to time by the Administrative Trustees following written
notice to the Holders and the other Trustees.

 

SECTION 2.3.  Initial Contribution of Trust
Property; Fees, Costs and Expenses.

 

The Property Trustee acknowledges receipt from the
Depositor in connection with the Original Trust Agreement of the sum of ten
dollars ($10), which constituted the initial Trust Property. The Depositor
shall pay all fees, costs and expenses of the Trust (except with respect to the
Trust Securities) as they arise or shall, upon request of any Trustee, promptly
reimburse such Trustee for any such fees, costs and expenses paid by such
Trustee. The Depositor shall make no claim upon the Trust Property for the
payment of such fees, costs or expenses.

 

SECTION 2.4.  Purposes of Trust.

 

(a)           The exclusive purposes and functions
of the Trust are to (i) issue and sell Trust Securities and use the
proceeds from such sale to acquire the Notes and (ii)  engage in only
those activities necessary or incidental thereto. The Delaware Trustee, the
Property Trustee and the Administrative Trustees are trustees of the Trust, and
have all the rights, powers and duties to the extent set forth herein.  The Trustees hereby acknowledge that they are
trustees of the Trust.

 

F-11

 

(b)           So long as this Trust Agreement
remains in effect, the Trust (or the Trustees acting on behalf of the Trust)
shall not undertake any business, activities or transaction except as expressly
provided herein or contemplated hereby. In particular, the Trust (or the
Trustees acting on behalf of the Trust) shall not (i) acquire any
investments or engage in any activities not authorized by this Trust Agreement,
(ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or
otherwise dispose of any of the Trust Property or interests therein, including
to Holders, except as expressly provided herein, (iii) incur any
indebtedness for borrowed money or issue any other debt, (iv) take or
consent to any action that would result in the placement of a Lien on any of
the Trust Property, (v) take or consent to any action that would
reasonably be expected to cause the Trust to become taxable as a corporation or
classified as other than a grantor trust for United States federal income tax
purposes, (vi) take or consent to any action that would cause the Notes to
be treated as other than indebtedness of the Depositor for United States
federal income tax purposes or (vii) take or consent to any action that
would cause the Trust to be deemed to be an “investment company” required to be
registered under the Investment Company Act.

 

SECTION 2.5.  Authorization to Enter into
Certain Transactions.

 

(a)           The Trustees shall conduct the
affairs of the Trust in accordance with and subject to the terms of this Trust
Agreement. In accordance with the following provisions (i) and (ii), the
Trustees shall have the authority to enter into all transactions and agreements
determined by the Trustees to be appropriate in exercising the authority,
express or implied, otherwise granted to the Trustees, under this Trust
Agreement, and to perform all acts in furtherance thereof, including the
following:

 

(i)            As among the Trustees, each
Administrative Trustee shall severally have the power and authority to act on
behalf of the Trust with respect to the following matters:

 

(A)          the issuance and sale of the Trust
Securities;

 

(B)           to cause the Trust to enter into, and
to execute, deliver and perform on behalf of the Trust, such agreements as may
be necessary or desirable in connection with the purposes and function of the
Trust, including, without limitation, a common securities subscription
agreement and a junior subordinated note purchase agreement;

 

(C)           assisting in the sale of the
Preferred Securities in one or more transactions exempt from registration under
the Securities Act, and in compliance with applicable state securities or blue
sky laws;

 

(D)          assisting in the sending of notices
(other than notices of default) and other information regarding the Trust
Securities and the Notes to the Holders in accordance with this Trust
Agreement;

 

(E)           the appointment of a Paying Agent and
Securities Registrar in accordance with this Trust Agreement;

 

F-12

 

(F)           execution of the Trust Securities on
behalf of the Trust in accordance with this Trust Agreement;

 

(G)           execution and delivery of closing
certificates, if any, pursuant to the Purchase Agreements and application for a
taxpayer identification number for the Trust;

 

(H)          preparation and filing of all
applicable tax returns and tax information reports that are required to be
filed on behalf of the Trust;

 

(I)            establishing a record date with
respect to all actions to be taken hereunder that require a record date to be
established, except as provided in Section 6.10(a);

 

(J)            unless otherwise required by the
Delaware Statutory Trust Act to execute on behalf of the Trust (either acting
alone or together with the other Administrative Trustees) any documents that
such Administrative Trustee has the power to execute pursuant to this Trust
Agreement; and

 

(K)          the taking of any action incidental to
the foregoing as such Administrative Trustee may from time to time determine is
necessary or advisable to give effect to the terms of this Trust Agreement.

 

(ii)           As among the Trustees, the Property
Trustee shall have the power, duty and authority to act on behalf of the Trust
with respect to the following matters:

 

(A)          the receipt and holding of legal title
of the Notes;

 

(B)           the establishment of the Payment
Account;

 

(C)           the collection of interest, principal
and any other payments made in respect of the Notes and the holding of such
amounts in the Payment Account;

 

(D)          the distribution through the Paying Agent
of amounts distributable to the Holders in respect of the Trust Securities;

 

(E)           the exercise of all of the rights,
powers and privileges of a holder of the Notes in accordance with the terms of
this Trust Agreement;

 

(F)           the sending of notices of default and
other information regarding the Trust Securities and the Notes to the Holders
in accordance with this Trust Agreement;

 

(G)           the distribution of the Trust
Property in accordance with the terms of this Trust Agreement;

 

(H)          to the extent provided in this Trust
Agreement, the winding up of the affairs of and liquidation of the Trust, provided that the Administrative

 

F-13

 

Trustees shall have the power, duty and authority to
act on behalf of the Trust with respect to the preparation, execution and
filing of the certificate of cancellation of the Trust with the Secretary of
State of the State of Delaware; and

 

(I)            the taking of any action incidental
to the foregoing as the Property Trustee may from time to time determine is
necessary or advisable to give effect to the terms of this Trust Agreement and
protect and conserve the Trust Property for the benefit of the Holders (without
consideration of the effect of any such action on any particular Holder).

 

(b)           In connection with the issue and sale
of the Preferred Securities, the Depositor shall have the right and
responsibility to assist the Trust with respect to, or effect on behalf of the
Trust, the following (and any actions taken by the Depositor in furtherance of
the following prior to the date of this Trust Agreement are hereby ratified and
confirmed in all respects):

 

(i)            the negotiation of the terms of, and
the execution and delivery of, the Purchase Agreements providing for the sale
of the Preferred Securities in one or more transactions exempt from
registration under the Securities Act, and in compliance with applicable state
securities or blue sky laws; and

 

(ii)           the taking of any other actions
necessary or desirable to carry out any of the foregoing activities.

 

(c)           Notwithstanding anything herein to
the contrary, the Administrative Trustees are authorized and directed to
conduct the affairs of the Trust and authorized to operate the Trust so that
the Trust will not be taxable as a corporation or classified as other than a
grantor trust for U.S. federal income tax purposes, so that the Notes will be
treated as indebtedness of the Depositor for U.S. federal income tax purposes
and so that the Trust will not be deemed to be an “investment company” required
to be registered under the Investment Company Act. In respect thereof, each
Administrative Trustee is authorized to take any action, not inconsistent with
applicable law, the Certificate of Trust or this Trust Agreement, that such
Administrative Trustee determines in his or her discretion to be necessary or
desirable for such purposes, as long as such action does not adversely affect
in any material respect the interests of the Holders of the Outstanding
Preferred Securities.  In no event shall
the Administrative Trustees be liable to the Trust or the Holders for any
failure to comply with this Section 2.5 to the extent that such
failure results solely from a change in law or regulation or in the
interpretation thereof.

 

(d)           Any action taken by a Trustee in
accordance with its powers shall constitute the act of and serve to bind the
Trust.  In dealing with any Trustee
acting on behalf of the Trust, no Person shall be required to inquire into the
authority of such Trustee to bind the Trust. Persons dealing with the Trust are
entitled to rely conclusively on the power and authority of any Trustee as set
forth in this Trust Agreement.

 

SECTION 2.6.  Assets of Trust.

 

The assets of the Trust shall consist of the Trust
Property.

 

F-14

 

SECTION 2.7.  Title to Trust Property.

 

(a)           Legal title to all Trust Property
shall be vested at all times in the Property Trustee and shall be held and
administered by the Property Trustee in trust for the benefit of the Trust and
the Holders in accordance with this Trust Agreement.

 

(b)           The Holders shall not have any right
or title to the Trust Property other than the undivided beneficial interest in
the assets of the Trust conferred by their Trust Securities and they shall have
no right to call for any partition or division of property, profits or rights
of the Trust except as described below. The Trust Securities shall be personal
property giving only the rights specifically set forth therein and in this
Trust Agreement.

 

ARTICLE III

PAYMENT ACCOUNT; PAYING AGENTS

 

SECTION 3.1.  Payment Account.

 

(a)           On or prior to the Closing Date, the
Property Trustee shall establish the Payment Account. The Property Trustee and
the Paying Agent shall have exclusive control and sole right of withdrawal with
respect to the Payment Account for the purpose of making deposits in and
withdrawals from the Payment Account in accordance with this Trust Agreement.
All monies and other property deposited or held from time to time in the
Payment Account shall be held by the Property Trustee in the Payment Account
for the exclusive benefit of the Holders and for Distribution as herein
provided.

 

(b)           The Property Trustee shall deposit in
the Payment Account, promptly upon receipt, all payments of principal of or
interest on, and any other payments with respect to, the Notes. Amounts held in
the Payment Account shall not be invested by the Property Trustee pending
distribution thereof.

 

SECTION 3.2.  Appointment of Paying Agents.

 

The Paying Agent shall initially be the Property
Trustee. The Paying Agent shall make Distributions to Holders from the Payment
Account and shall report the amounts of such Distributions to the Property
Trustee and the Administrative Trustees. Any Paying Agent shall have the
revocable power to withdraw funds from the Payment Account solely for the
purpose of making the Distributions referred to above. The Administrative
Trustees may revoke such power and remove the Paying Agent in their sole
discretion. Any Person acting as Paying Agent shall be permitted to resign as
Paying Agent upon thirty (30) days’ written notice to the Administrative
Trustees and the Property Trustee. If the Property Trustee shall no longer be
the Paying Agent or a successor Paying Agent shall resign or its authority to
act be revoked, the Administrative Trustees shall appoint a successor (which
shall be a bank or trust company) to act as Paying Agent. Such successor Paying
Agent appointed by the Administrative Trustees shall execute and deliver to the
Trustees an instrument in which such successor Paying Agent shall agree with
the Trustees that as Paying Agent, such successor Paying Agent will hold all
sums, if any, held by it for payment to the Holders in trust for the benefit of
the Holders entitled thereto until such sums shall be paid to such Holders. The
Paying Agent shall return all unclaimed funds

 

F-15

 

to the
Property Trustee and upon removal of a Paying Agent such Paying Agent shall
also return all funds in its possession to the Property Trustee. The provisions
of Article VIII shall apply to the Property Trustee also in its
role as Paying Agent, for so long as the Property Trustee shall act as Paying
Agent and, to the extent applicable, to any other Paying Agent appointed
hereunder. Any reference in this Trust Agreement to the Paying Agent shall
include any co-paying agent unless the context requires otherwise.

 

ARTICLE IV

DISTRIBUTIONS; REDEMPTION

 

SECTION 4.1.  Distributions.

 

(a)           The Trust Securities represent
undivided beneficial interests in the Trust Property, and Distributions
(including any Additional Interest Amounts) will be made on the Trust
Securities at the rate and on the dates that payments of interest (including
any Additional Interest) are made on the Notes. Accordingly:

 

(i)            Distributions on the Trust
Securities shall be cumulative, and shall accumulate whether or not there are
funds of the Trust available for the payment of Distributions.  Distributions shall accumulate from January 27,
2006, and, except as provided in clause (ii) below, shall be payable
quarterly in arrears on January 30, April 30, July 30 and October 30 of each year, commencing on April 30,
2006.  If any date on which a
Distribution is otherwise payable on the Trust Securities is not a Business
Day, then the payment of such Distribution shall be made on the next succeeding
Business Day (and no interest shall accrue in respect of the amounts whose
payment is so delayed for the period from and after each such date until the
next succeeding Business Day), except that, if such Business Day falls in the
next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case, with the same force and effect as if made
on such date (each date on which Distributions are payable in accordance with
this Section 4.1(a)(i), a “Distribution
Date”);

 

(ii)           in the event (and to the extent) that
the Depositor exercises its right under the Indenture to defer the payment of
interest on the Notes, upon thirty (30) days’ prior written notice,
Distributions on the Trust Securities shall be deferred.  Under the Indenture, so long as no Note Event
of Default has occurred and is continuing and upon thirty (30) days’ prior
written notice, the Depositor shall have the right, at any time and from time
to time during the term of the Notes, to defer the payment of interest on the
Notes for a period of up to four (4) consecutive quarterly interest
payment periods (each such extended interest payment period, an “Extension Period”),
during which Extension Period no interest on the Notes shall be due and payable
(except any Additional Tax Sums that may be due and payable).  No interest on the Notes shall be due and
payable during an Extension Period, except at the end thereof.  If Distributions are deferred, the deferred
Distributions shall be paid on the date that the related Extension Period terminates,
to Holders of the Trust Securities as they appear on the books and records of
the Trust on the record date immediately preceding such termination date.

 

F-16

 

(iii)          Distributions shall accumulate in
respect of the Trust Securities at a fixed rate equal to 7.65% per annum
through the interest payment date in January 2016 and thereafter at a
variable rate equal to LIBOR plus 2.70% per annum of the Liquidation Amount of
the Trust Securities, such rate being the rate of interest payable on the
Notes. LIBOR shall be determined by the Calculation Agent in accordance with Schedule A.
During the Fixed Rate Period, the amount of Distributions payable for any
period less than a full Distribution period shall be computed on the basis of a
360-day year of twelve 30-day months and the amount payable for any partial
period shall be computed on the basis of the number of days elapsed in a
360-day year of twelve 30-day months. 
Upon expiration of the Fixed Rate Period, the amount of interest payable
for any Distribution period will be computed on the basis of a 360-day year and
the actual number of days elapsed in the relevant Distribution period. The
amount of Distributions payable for any period shall include any Additional
Interest Amounts in respect of such period; and

 

(iv)          Distributions on the Trust Securities
shall be made by the Paying Agent from the Payment Account and shall be payable
on each Distribution Date only to the extent that the Trust has funds then on
hand and available in the Payment Account for the payment of such
Distributions.

 

(b)           Distributions on the Trust Securities
with respect to a Distribution Date shall be payable to the Holders thereof as
they appear on the Securities Register for the Trust Securities at the close of
business on the relevant record date, which shall be at the close of business
on the fifteenth day (whether or not a Business Day) preceding the relevant
Distribution Date, except that Distributions and any Additional Interest
Amounts payable on the stated maturity (or any date of principal repayment upon
early maturity) of the principal of a Trust Security or on a Redemption Date
shall be paid to the Person to whom principal is paid.  Distributions payable on any Trust Securities
that are not punctually paid on any Distribution Date as a result of the
Depositor having failed to make an interest payment under the Notes will cease
to be payable to the Person in whose name such Trust Securities are registered
on the relevant record date, and such defaulted Distributions and any
Additional Interest Amounts will instead be payable to the Person in whose name
such Trust Securities are registered on the special record date, or other
specified date for determining Holders entitled to such defaulted Distribution
and Additional Interest Amount, established in the same manner, and on the same
date, as such is established with respect to the Notes under the Indenture.

 

(c)           As a condition to the payment of any
principal of or interest on the Trust Securities without the imposition of
withholding tax, the Administrative Trustees shall require the previous
delivery of properly completed and signed applicable U.S. federal income tax
certifications (generally, an Internal Revenue Service Form W-9 (or
applicable successor form) in the case of a person that is a “United States
person” within the meaning of Section 7701(a)(30) of the Code or an
Internal Revenue Service Form W-8 (or applicable successor form) in the
case of a person that is not a “United States person” within the meaning of Section 7701(a)(30)
of the Code) and any other certification acceptable to it to enable the Property
Trustee or any Paying Agent to determine their respective duties and
liabilities with respect to any taxes or other charges that they may be
required to pay, deduct or withhold in respect of such Trust Securities.

 

F-17

 

SECTION 4.2.  Redemption.

 

(a)           On each Note Redemption Date and on
the stated maturity (or any date of principal repayment upon early maturity) of
the Notes and on each other date on (or in respect of) which any principal on
the Notes is repaid, the Trust will be required to redeem a Like Amount of
Trust Securities at the Redemption Price.

 

(b)           Notice of redemption shall be given
by the Property Trustee by first-class mail, postage prepaid, mailed not less
than thirty (30) nor more than sixty (60) days prior to the Redemption Date to
each Holder of Trust Securities to be redeemed, at such Holder’s address
appearing in the Securities Register. All notices of redemption shall state:

 

(i)            the Redemption Date;

 

(ii)           the Redemption Price or, if the
Redemption Price cannot be calculated prior to the time the notice is required
to be sent, the estimate of the Redemption Price provided pursuant to the
Indenture, as calculated by the Depositor, together with a statement that it is
an estimate and that the actual Redemption Price will be calculated by the
Calculation Agent on the fifth Business Day prior to the Redemption Date (and
if an estimate is provided, a further notice shall be sent of the actual
Redemption Price on the date that such Redemption Price is calculated);

 

(iii)          if less than all the Outstanding Trust
Securities are to be redeemed, the identification (and, in the case of partial
redemption, the respective amounts) and Liquidation Amounts of the particular
Trust Securities to be redeemed;

 

(iv)          that on the Redemption Date, the
Redemption Price will become due and payable upon each such Trust Security, or
portion thereof, to be redeemed and that Distributions thereon will cease to
accumulate on such Trust Security or such portion, as the case may be, on and
after said date, except as provided in Section 4.2(d);

 

(v)           the place or places where the Trust
Securities are to be surrendered for the payment of the Redemption Price; and

 

(vi)          such other provisions as the Property
Trustee deems relevant.

 

(c)           The Trust Securities (or portion
thereof) redeemed on each Redemption Date shall be redeemed at the Redemption
Price with the proceeds from the contemporaneous redemption or payment at
maturity of Notes. Redemptions of the Trust Securities (or portion thereof)
shall be made and the Redemption Price shall be payable on each Redemption Date
only to the extent that the Trust has funds then on hand and available in the
Payment Account for the payment of such Redemption Price.  Under the Indenture, the Notes may be
redeemed by the Depositor on any Interest Payment Date, at the Depositor’s
option, on or after January 30, 2011, in whole or in part, from time to
time at the Optional Note Redemption Price. 
The Notes may also be redeemed by the Depositor, at its option pursuant
to the terms of the Indenture, in whole but not in part, upon the occurrence
and during the continuation of an Investment Company Event or a Tax Event, at
the Special Note Redemption Price.

 

F-18

 

(d)           If the Property Trustee gives a
notice of redemption in respect of any Preferred Securities, then by 10:00 A.M.,
New York City time, on the Redemption Date, the Depositor shall deposit
sufficient funds with the Property Trustee to pay the Redemption Price.  If such deposit has been made by such time,
then by 12:00 noon, New York City time, on the Redemption Date, the Property
Trustee will, with respect to Book-Entry Preferred Securities, irrevocably deposit
with the Depositary for such Book-Entry Preferred Securities, to the extent
available therefor, funds sufficient to pay the applicable Redemption Price and
will give such Depositary irrevocable instructions and authority to pay the
Redemption Price to the Holders of the Preferred Securities. With respect to
Preferred Securities that are not Book-Entry Preferred Securities, the Property
Trustee will irrevocably deposit with the Paying Agent, to the extent available
therefor, funds sufficient to pay the applicable Redemption Price and will give
the Paying Agent irrevocable instructions and authority to pay the Redemption
Price to the Holders of the Preferred Securities upon surrender of their
Preferred Securities Certificates. Notwithstanding the foregoing, Distributions
payable on or prior to the Redemption Date for any Trust Securities (or portion
thereof) called for redemption shall be payable to the Holders of such Trust
Securities as they appear on the Securities Register on the relevant record
dates for the related Distribution Dates. If notice of redemption shall have
been given and funds deposited as required, then upon the date of such deposit,
all rights of Holders holding Trust Securities (or portion thereof) so called
for redemption will cease, except the right of such Holders to receive the
Redemption Price and any Distribution payable in respect of the Trust
Securities on or prior to the Redemption Date, but without interest, and, in
the case of a partial redemption, the right of such Holders to receive a new
Trust Security or Securities of authorized denominations, in aggregate
Liquidation Amount equal to the unredeemed portion of such Trust Security or
Securities, and such Securities (or portion thereof) called for redemption will
cease to be Outstanding. In the event that any date on which any Redemption
Price is payable is not a Business Day, then payment of the Redemption Price
payable on such date will be made on the next succeeding Business Day (and no
interest shall accrue in respect of the amounts whose payment is so delayed for
the period from and after each such date until the next succeeding Business
Day), except that, if such Business Day falls in the next succeeding calendar
year, such payment shall be made on the immediately preceding Business Day, in
each case, with the same force and effect as if made on such date. In the event
that payment of the Redemption Price in respect of any Trust Securities (or
portion thereof) called for redemption is improperly withheld or refused and
not paid either by the Trust, Distributions on such Trust Securities (or
portion thereof) will continue to accumulate, as set forth in Section 4.1,
from the Redemption Date originally established by the Trust for such Trust
Securities (or portion thereof) to the date such Redemption Price is actually
paid, in which case the actual payment date will be the date fixed for
redemption for purposes of calculating the Redemption Price.

 

(e)           Subject to Section 4.3(a),
if less than all the Outstanding Trust Securities are to be redeemed on a
Redemption Date, then the aggregate Liquidation Amount of Trust Securities to
be redeemed shall be allocated pro
rata to the Common Securities and the Preferred Securities based upon
the relative aggregate Liquidation Amounts of the Common Securities and the
Preferred Securities.  The Preferred
Securities to be redeemed shall be selected on a pro rata basis based upon their respective Liquidation Amounts
not more than sixty (60) days prior to the Redemption Date by the Property
Trustee from the Outstanding Preferred Securities not previously called for
redemption; provided that with respect to Holders that
would be required to hold less than one hundred (100) but more than zero (0)
Trust Securities as a result of such

 

F-19

 

redemption, the Trust shall redeem Trust Securities of
each such Holder so that after such redemption such Holder shall hold either
one hundred (100) Trust Securities or such Holder no longer holds any Trust
Securities, and shall use such method (including, without limitation, by lot)
as the Trust shall deem fair and appropriate; and provided, further,
that so long as the Preferred Securities are Book-Entry Preferred Securities,
such selection shall be made in accordance with the Applicable Depositary Procedures
for the Preferred Securities by such Depositary. The Property Trustee shall
promptly notify the Securities Registrar in writing of the Preferred Securities
(or portion thereof) selected for redemption and, in the case of any Preferred
Securities selected for partial redemption, the Liquidation Amount thereof to
be redeemed. For all purposes of this Trust Agreement, unless the context
otherwise requires, all provisions relating to the redemption of Preferred
Securities shall relate, in the case of any Preferred Securities redeemed or to
be redeemed only in part, to the portion of the aggregate Liquidation Amount of
Preferred Securities that has been or is to be redeemed.

 

(f)            The Trust in issuing the Trust
Securities may use “CUSIP” numbers (if then generally in use), and, if so, the
Property Trustee shall indicate the “CUSIP” numbers of the Trust Securities in
notices of redemption and related materials as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Trust Securities or as contained in any notice of redemption and
related materials.

 

SECTION 4.3.  Subordination of Common
Securities.

 

(a)           Payment of Distributions (including
any Additional Interest Amounts) on, the Redemption Price of and the
Liquidation Distribution in respect of, the Trust Securities, as applicable,
shall be made, pro rata among
the Common Securities and the Preferred Securities based on the Liquidation
Amount of the respective Trust Securities; provided
that if on any Distribution Date, Redemption Date or Liquidation Date an Event
of Default shall have occurred and be continuing, no payment of any
Distribution (including any Additional Interest Amounts) on, Redemption Price of
or Liquidation Distribution in respect of, any Common Security, and no other
payment on account of the redemption, liquidation or other acquisition of
Common Securities, shall be made unless payment in full in cash of all
accumulated and unpaid Distributions (including any Additional Interest
Amounts) on all Outstanding Preferred Securities for all Distribution periods
terminating on or prior thereto, or in the case of payment of the Redemption
Price the full amount of such Redemption Price on all Outstanding Preferred
Securities then called for redemption, or in the case of payment of the
Liquidation Distribution the full amount of such Liquidation Distribution on
all Outstanding Preferred Securities, shall have been made or provided for, and
all funds immediately available to the Property Trustee shall first be applied
to the payment in full in cash of all Distributions (including any Additional
Interest Amounts) on, or the Redemption Price of or the Liquidation
Distribution in respect of, the Preferred Securities then due and payable.

 

(b)           In the case of the occurrence of any
Event of Default, the Holders of the Common Securities shall have no right to
act with respect to any such Event of Default under this Trust Agreement until
all such Events of Default with respect to the Preferred Securities have been
cured, waived or otherwise eliminated. Until all such Events of Default under
this Trust Agreement with respect to the Preferred Securities have been so
cured, waived or otherwise

 

F-20

 

eliminated, the Property Trustee shall act solely on
behalf of the Holders of the Preferred Securities and not on behalf of the
Holders of the Common Securities, and only the Holders of all the Preferred
Securities will have the right to direct the Property Trustee to act on their
behalf.

 

SECTION 4.4.  Payment Procedures.

 

Payments of Distributions (including any Additional
Interest Amounts), the Redemption Price, Liquidation Amount or any other
amounts in respect of the Preferred Securities shall be made by wire transfer
at such place and to such account at a banking institution in the United States
as may be designated in writing at least ten (10) Business Days prior to
the date for payment by the Person entitled thereto unless proper written
transfer instructions have not been received by the relevant record date, in
which case such payments shall be made by check mailed to the address of such
Person as such address shall appear in the Securities Register. If any Preferred
Securities are held by a Depositary, such Distributions thereon shall be made
to the Depositary in immediately available funds. Payments in respect of the
Common Securities shall be made in such manner as shall be mutually agreed
between the Property Trustee and the Holder of all the Common Securities.

 

SECTION 4.5.  Withholding Tax.

 

(a)           The Trust and the Administrative
Trustees shall comply with all withholding and backup withholding tax
requirements under United States federal, state and local law.  The Administrative Trustees on behalf of the
Trust shall request, and the Holders shall provide to the Trust, such forms or
certificates as are necessary to establish an exemption from withholding and
backup withholding tax with respect to each Holder and any representations and
forms as shall reasonably be requested by the Administrative Trustees on behalf
of the Trust to assist it in determining the extent of, and in fulfilling, its
withholding and backup withholding tax obligations.  The Administrative Trustees shall file
required forms with applicable jurisdictions and, unless an exemption from
withholding and backup withholding tax is properly established by a Holder,
shall remit amounts withheld with respect to the Holder to applicable
jurisdictions. To the extent that the Trust is required to withhold and pay
over any amounts to any jurisdiction with respect to Distributions or
allocations to any Holder, the amount withheld shall be deemed to be a
Distribution in the amount of the withholding to the Holder. In the event of
any claimed overwithholding, Holders shall be limited to an action against the
applicable jurisdiction.  If the amount
required to be withheld was not withheld from actual Distributions made, the Administrative
Trustees on behalf of the Trust may reduce subsequent Distributions by the
amount of such required withholding.

 

SECTION 4.6.  Tax Returns and Other Reports.

 

The Administrative Trustees shall prepare (or cause to
be prepared) at the principal office of the Trust in the United States, as
defined for purposes of Treasury regulations section 301.7701-7, at the
Depositor’s expense, and file, all U.S. federal, state and local tax and
information returns and reports required to be filed by or in respect of the
Trust. The Administrative Trustees shall prepare at the principal office of the
Trust in the United States, as defined for purposes of Treasury regulations section 301.7701-7,
and furnish (or cause to be prepared and furnished), by January 31 in each
taxable year of the Trust to each Holder all

 

F-21

 

Internal
Revenue Service forms and returns required to be provided by the Trust. The
Administrative Trustees shall provide the Depositor, Taberna Capital
Management, LLC, and the Property Trustee with a copy of all such returns and
reports promptly after such filing or furnishing.

 

SECTION 4.7.  Payment of Taxes, Duties, Etc.
of the Trust.

 

Upon receipt under the Notes of Additional Tax Sums
and upon the written direction of the Administrative Trustees, the Property
Trustee shall promptly pay, solely out of monies on deposit pursuant to this
Trust Agreement, any Additional Taxes imposed on the Trust by the United States
or any other taxing authority.

 

SECTION 4.8.  Payments under Indenture or
Pursuant to Direct Actions.

 

Any amount payable hereunder to any Holder of
Preferred Securities shall be reduced by the amount of any corresponding
payment such Holder (or any Owner with respect thereto) has directly received
pursuant to Section 5.8 of the Indenture or Section 6.10(b) of
this Trust Agreement.

 

SECTION 4.9.  Exchanges.

 

(a)           If at any time the Depositor or any
of its Affiliates (in either case, a “Depositor
Affiliate”) is the Owner or Holder of any Preferred Securities, such
Depositor Affiliate shall have the right to deliver to the Property Trustee all
or such portion of its Preferred Securities as it elects and, subject to
compliance with Section 2.2 and Section 3.5 of the Indenture,
receive, in exchange therefor, a Like Amount of Notes. Such election shall be
exercisable effective on any Distribution Date by such Depositor Affiliate
delivering to the Property Trustee (i) at least ten (10) Business
Days prior to the Distribution Date on which such exchange is to occur, the
registration instructions and the documentation, if any, required pursuant to Section 2.2
and Section 3.5 of the Indenture to enable the Indenture Trustee to issue
the requested Like Amount of Notes, (ii) a written notice of such election
specifying the Liquidation Amount of Preferred Securities with respect to which
such election is being made and the Distribution Date on which such exchange
shall occur, which Distribution Date shall be not less than ten (10) Business
Days after the date of receipt by the Property Trustee of such election notice
and (iii) shall be conditioned upon such Depositor Affiliate having
delivered or caused to be delivered to the Property Trustee or its designee the
Preferred Securities that are the subject of such election by 10:00 A.M.
New York time, on the Distribution Date on which such exchange is to
occur.  After the exchange, such
Preferred Securities will be canceled and will no longer be deemed to be
Outstanding and all rights of the Depositor Affiliate with respect to such
Preferred Securities will cease.

 

(b)           In the case of an exchange described
in Section 4.9(a), the Property Trustee on behalf of the Trust
will, on the date of such exchange, exchange Notes having a principal amount
equal to a proportional amount of the aggregate Liquidation Amount of the
Outstanding Common Securities, based on the ratio of the aggregate Liquidation
Amount of the Preferred Securities exchanged pursuant to Section 4.9(a) divided
by the aggregate Liquidation Amount of the Preferred Securities Outstanding
immediately prior to such exchange, for such proportional

 

F-22

 

amount of Common Securities held by the Depositor
(which contemporaneously shall be canceled and no longer be deemed to be
Outstanding); provided that the
Depositor delivers or causes to be delivered to the Property Trustee or its
designee the required amount of Common Securities to be exchanged by 10:00 A.M.
New York time, on the Distribution Date on which such exchange is to occur.

 

SECTION 4.10.  Calculation Agent.

 

(a)           The Calculation Agent may be removed
by the Administrative Trustees at any time. 
Notwithstanding the foregoing, the Property Trustee shall initially,
and, subject to the immediately following sentence, for so long as it holds any
of the Notes, be the Calculation Agent for purposes of determining LIBOR for
each Distribution Date. If the Calculation Agent is unable or unwilling to act
as such or is removed by the Administrative Trustees, the Administrative
Trustees will promptly appoint as a replacement Calculation Agent the London
office of a leading bank which is engaged in transactions in three-month
Eurodollar deposits in the international Eurodollar market and which does not
control or is not controlled by or under common control with the Administrative
Trustee or its Affiliates.  The
Calculation Agent may not resign its duties without a successor having been
duly appointed.

 

(b)           The Calculation Agent shall be
required to agree that, as soon as possible after 11:00 a.m. (London time)
on each LIBOR Determination Date, but in no event later than 11:00 a.m.
(London time) on the Business Day immediately following each LIBOR
Determination Date, the Calculation Agent will calculate the interest rate
(rounded to the nearest cent, with half a cent being rounded upwards) for the
related Distribution Date, and will communicate such rate and amount to the
Depositor, the Administrative Trustees, the Note Trustee, each Paying Agent and
the Depositary. The Calculation Agent will also specify to the Administrative
Trustee the quotations upon which the foregoing rates and amounts are based
and, in any event, the Calculation Agent shall notify the Administrative
Trustees before 5:00 p.m. (London time) on each LIBOR Determination Date
that either:  (i) it has determined
or is in the process of determining the foregoing rates and amounts or (ii) it
has not determined and is not in the process of determining the foregoing rates
and amounts, together with its reasons therefor. The Calculation Agent’s determination
of the foregoing rates and amounts for any Distribution Date will (in the
absence of manifest error) be final and binding upon all parties.  For the sole purpose of calculating the
interest rate for the Trust Securities, “Business Day” shall be defined as any
day on which dealings in deposits in Dollars are transacted in the London
interbank market.

 

SECTION 4.11.  Certain Accounting Matters.

 

(a)           At all times during the existence of
the Trust, the Administrative Trustees shall keep, or cause to be kept at the
principal office of the Trust in the United States, as defined for purposes of
Treasury Regulations section 301.7701-7, full books of account, records
and supporting documents, which shall reflect in reasonable detail each
transaction of the Trust. The books of account shall be maintained on the
accrual method of accounting, in accordance with generally accepted accounting
principles, consistently applied.

 

(b)           The Administrative Trustees shall
either (i) if the Depositor is then subject to such reporting
requirements, cause each Form 10-K and Form 10-Q prepared by the
Depositor and

 

F-23

 

filed with the Commission in accordance with the
Exchange Act to be delivered to each Holder, with a copy to the Property
Trustee, within thirty (30) days after the filing thereof or (ii) cause to
be prepared at the principal office of the Trust in the United States, as
defined for purposes of Treasury Regulations section 301.7701-7, and
delivered to each of the Holders, with a copy to the Property Trustee, within
ninety (90) days after the end of each Fiscal Year, annual financial statements
of the Trust, including a balance sheet of the Trust as of the end of such
Fiscal Year, and the related statements of income or loss.

 

(c)           If the Depositor intends to file its
annual and quarterly information with the Commission in electronic form
pursuant to Regulation S-T of the Commission using the Commission’s Electronic
Data Gathering, Analysis and Retrieval (“EDGAR”)
system, the Administrative Trustees shall notify the Property Trustee in the
manner prescribed herein of each such annual and quarterly filing.  The Property Trustee is hereby authorized and
directed to access the EDGAR system for purposes of retrieving the financial
information so filed. Compliance with the foregoing shall constitute delivery
by the Administrative Trustees of its financial statements to the Property
Trustee in compliance with the provisions of section 314(a) of the
Trust Indenture Act, if applicable.  The
Property Trustee shall have no duty to search for or obtain any electronic or
other filings that the Depositor makes with the Commission, regardless of
whether such filings are periodic, supplemental or otherwise.  Delivery of reports, information and
documents to the Property Trustee pursuant to this Section 4.11(c) shall
be solely for purposes of compliance with this Section 4.11 and, if
applicable, with Section 314(a) of the Trust Indenture Act. The
Property Trustee’s receipt of such reports, information and documents shall not
constitute notice to it of the content thereof or any matter determinable from
the content thereof, including the Depositor’s compliance with any of its
covenants hereunder, as to which the Property Trustee is entitled to rely upon
Officers’ Certificates.

 

(d)           The Trust shall maintain one or more
bank accounts in the United States, as defined for purposes of Treasury
Regulations section 301.7701-7, in the name and for the sole benefit of
the Trust; provided, however,
that all payments of funds in respect of the Notes held by the Property Trustee
shall be made directly to the Payment Account and no other funds of the Trust
shall be deposited in the Payment Account. The sole signatories for such
accounts (including the Payment Account) shall be designated by the Property
Trustee.

 

ARTICLE V

SECURITIES

 

SECTION 5.1.  Initial Ownership.

 

Upon the creation of the Trust and the contribution by
the Depositor referred to in Section 2.3 and until the issuance of
the Trust Securities, and at any time during which no Trust Securities are
Outstanding, the Depositor shall be the sole beneficial owner of the Trust.

 

F-24

 

SECTION 5.2.  Authorized Trust Securities.

 

The Trust shall be authorized to issue one series of
Preferred Securities having an aggregate Liquidation Amount of $50,000,000 and
one series of Common Securities having an aggregate Liquidation Amount of
$1,550,000.

 

SECTION 5.3.  Issuance of the Common
Securities; Subscription and Purchase of Notes.

 

On the Closing Date, an Administrative Trustee, on
behalf of the Trust, shall execute and deliver to the Depositor Common
Securities Certificates, registered in the name of the Depositor, evidencing an
aggregate of One Thousand Five Hundred Fifty (1,550) Common Securities having
an aggregate Liquidation Amount of One Million Five Hundred Fifty Thousand
Dollars ($1,550,000), against receipt by the Trust of the aggregate purchase
price of such Common Securities of One Million Five Hundred Fifty Thousand
Dollars ($1,550,000). Contemporaneously therewith and with the sale by the
Trust to the Holders of an aggregate of Fifty Thousand (50,000) Preferred
Securities having an aggregate Liquidation Amount of Fifty Million Dollars ($50,000,000),
an Administrative Trustee, on behalf of the Trust, shall purchase from the
Depositor Notes, to be registered in the name of the Property Trustee on behalf
of the Trust and having an aggregate principal amount equal to Fifty-One
Million Five Hundred Fifty Thousand Dollars ($51,550,000), and, in satisfaction of the purchase
price for such Notes, the Property Trustee, on behalf of the Trust, shall
deliver to the Depositor the sum of Fifty-One Million Five Hundred Fifty
Thousand Dollars ($51,550,000) (being the aggregate amount paid by the Holders
for the Preferred Securities, and the amount paid by the Depositor for the
Common Securities).

 

SECTION 5.4.  The Securities Certificates.

 

(a)           The Preferred Securities Certificates
shall be issued in minimum denominations of $100,000 Liquidation Amount and
integral multiples of $1,000 in excess thereof, and the Common Securities
Certificates shall be issued in minimum denominations of  $10,000 Liquidation Amount and integral multiples
of $1,000 in excess thereof.  The
Securities Certificates shall be executed on behalf of the Trust by manual or
facsimile signature of at least one Administrative Trustee. Securities
Certificates bearing the signatures of individuals who were, at the time when
such signatures shall have been affixed, authorized to sign such Securities
Certificates on behalf of the Trust shall be validly issued and entitled to the
benefits of this Trust Agreement, notwithstanding that such individuals or any
of them shall have ceased to be so authorized prior to the delivery of such
Securities Certificates or did not have such authority at the date of delivery
of such Securities Certificates.

 

(b)           On the Closing Date, upon the written
order of an authorized officer of the Depositor, the Administrative Trustees
shall cause Securities Certificates to be executed on behalf of the Trust and
delivered, without further corporate action by the Depositor, in authorized
denominations.

 

(c)           The Preferred Securities issued to
QIBs/QPs shall be, except as provided in Section 5.6, Book-Entry
Preferred Securities issued in the form of one or more Global Preferred
Securities registered in the name of the Depositary, or its nominee and
deposited with the

 

F-25

 

Depositary or a custodian for the Depositary for
credit by the Depositary to the respective accounts of the Depositary
Participants thereof (or such other accounts as they may direct).  The Preferred Securities issued to a Person
other than a QIB/QP shall be issued in the form of Definitive Preferred
Securities Certificates.

 

(d)           A Preferred Security shall not be
valid until authenticated by the manual signature of an authorized signatory of
the Property Trustee. Such signature shall be conclusive evidence that the
Preferred Security has been authenticated under this Trust Agreement.  Upon written order of the Trust signed by one
Administrative Trustee, the Property Trustee shall authenticate the Preferred
Securities for original issue.  The
Property Trustee may appoint an authenticating agent that is a U.S. Person
acceptable to the Trust to authenticate the Preferred Securities. A Common
Security need not be so authenticated and shall be valid upon execution by one
or more Administrative Trustees. The form of this certificate of authentication
can be found in Section 5.13.

 

SECTION 5.5.  Rights of Holders.

 

The Trust Securities shall have no preemptive or
similar rights and when issued and delivered to Holders against payment of the
purchase price therefor will be fully paid and non-assessable by the Trust.
Except as provided in Section 5.11(b), the Holders of the Trust
Securities, in their capacities as such, shall be entitled to the same
limitation of personal liability extended to stockholders of private corporations
for profit organized under the General Corporation Law of the State of
Delaware.

 

SECTION 5.6.  Book-Entry Preferred Securities.

 

(a)           A Global Preferred Security may be
exchanged, in whole or in part, for Definitive Preferred Securities Certificates
registered in the names of the Owners only if such exchange complies with Section 5.7
and (i) the Depositary advises the Administrative Trustees and the
Property Trustee in writing that the Depositary is no longer willing or able
properly to discharge its responsibilities with respect to the Global Preferred
Security, and no qualified successor is appointed by the Administrative
Trustees within ninety (90) days of receipt of such notice, the Depositary
ceases to be a clearing agency registered under the Exchange Act and the
Administrative Trustees fail to appoint a qualified successor within ninety
(90) days of obtaining knowledge of such event, (iii) the Administrative
Trustees at their option advise the Property Trustee in writing that the Trust
elects to terminate the book-entry system through the Depositary or (iv) a
Note Event of Default has occurred and is continuing. Upon the occurrence of
any event specified in clause (i), (ii), (iii) or (iv) above, the
Administrative Trustees shall notify the Depositary and instruct the Depositary
to notify all Owners of Book-Entry Preferred Securities, the Delaware Trustee
and the Property Trustee of the occurrence of such event and of the
availability of the Definitive Preferred Securities Certificates to Owners of
the Preferred Securities requesting the same. Upon the issuance of Definitive
Preferred Securities Certificates, the Trustees shall recognize the Holders of
the Definitive Preferred Securities Certificates as Holders.  Notwithstanding the foregoing, if an Owner of
a beneficial interest in a Global Preferred Security wishes at any time to
transfer an interest in such Global Preferred Security to a Person other than a
QIB/QP, such transfer shall be effected, subject to the Applicable Depositary
Procedures, in accordance with the provisions of this Section 5.6
and Section 5.7, and

 

F-26

 

the transferee shall receive a Definitive Preferred
Securities Certificate in connection with such transfer. A holder of a
Definitive Preferred Securities Certificate that is a QIB/QP may, upon request
and in accordance with the provisions of this Section 5.6 and Section 5.7,
exchange such Definitive Preferred Securities Certificate for a beneficial
interest in a Global Preferred Security.

 

(b)           If any Global Preferred Security is
to be exchanged for Definitive Preferred Securities Certificates or canceled in
part, or if any Definitive Preferred Securities Certificate is to be exchanged
in whole or in part for any Global Preferred Security, then either (i) such
Global Preferred Security shall be so surrendered for exchange or cancellation
as provided in this Article V or (ii) the aggregate
Liquidation Amount represented by such Global Preferred Security shall be
reduced, subject to Section 5.4, or increased by an amount equal to
the Liquidation Amount represented by that portion of the Global Preferred
Security to be so exchanged or canceled, or equal to the Liquidation Amount
represented by such Definitive Preferred Securities Certificates to be so
exchanged for any Global Preferred Security, as the case may be, by means of an
appropriate adjustment made on the records of the Securities Registrar,
whereupon the Property Trustee, in accordance with the Applicable Depositary Procedures,
shall instruct the Depositary or its authorized representative to make a
corresponding adjustment to its records. Upon any such surrender to the
Administrative Trustees or the Securities Registrar of any Global Preferred
Security or Securities by the Depositary, accompanied by registration
instructions, the Administrative Trustees, or any one of them, shall execute
the Definitive Preferred Securities Certificates in accordance with the
instructions of the Depositary.  None of
the Securities Registrar or the Trustees shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be fully
protected in relying on, such instructions.

 

(c)           Every Definitive Preferred Securities
Certificate executed and delivered upon registration or transfer of, or in
exchange for or in lieu of, a Global Preferred Security or any portion thereof
shall be executed and delivered in the form of, and shall be, a Global
Preferred Security, unless such Definitive Preferred Securities Certificate is
registered in the name of a Person other than the Depositary for such Global
Preferred Security or a nominee thereof.

 

(d)           The Depositary or its nominee, as
registered owner of a Global Preferred Security, shall be the Holder of such
Global Preferred Security for all purposes under this Trust Agreement and the
Global Preferred Security, and Owners with respect to a Global Preferred
Security shall hold such interests pursuant to the Applicable Depositary
Procedures. The Securities Registrar and the Trustees shall be entitled to deal
with the Depositary for all purposes of this Trust Agreement relating to the
Global Preferred Securities (including the payment of the Liquidation Amount of
and Distributions on the Book-Entry Preferred Securities represented thereby
and the giving of instructions or directions by Owners of Book-Entry Preferred
Securities represented thereby and the giving of notices) as the sole Holder of
the Book-Entry Preferred Securities represented thereby and shall have no
obligations to the Owners thereof. None of the Trustees nor the Securities
Registrar shall have any liability in respect of any transfers effected by the
Depositary.

 

(e)           The rights of the Owners of the
Book-Entry Preferred Securities shall be exercised only through the Depositary
and shall be limited to those established by law, the Applicable Depositary
Procedures and agreements between such Owners and the Depositary and/or the
Depositary Participants; provided
that solely for the purpose of determining whether

 

F-27

 

the Holders of the requisite amount of Preferred
Securities have voted on any matter provided for in this Trust Agreement, to
the extent that Preferred Securities are represented by a Global Preferred Security,
the Trustees may conclusively rely on, and shall be fully protected in relying
on, any written instrument (including a proxy) delivered to the Property
Trustee by the Depositary setting forth the Owners’ votes or assigning the
right to vote on any matter to any other Persons either in whole or in part. To
the extent that Preferred Securities are represented by a Global Preferred
Security, the initial Depositary will make book-entry transfers among the
Depositary Participants and receive and transmit payments on the Preferred
Securities that are represented by a Global Preferred Security to such
Depositary Participants, and none of the Depositor or the Trustees shall have
any responsibility or obligation with respect thereto.

 

(f)            To the extent that a notice or other
communication to the Holders is required under this Trust Agreement, for so
long as Preferred Securities are represented by a Global Preferred Security,
the Trustees shall give all such notices and communications to the Depositary,
and shall have no obligations to the Owners.

 

SECTION 5.7.  Registration of Transfer and
Exchange of Preferred Securities Certificates.

 

(a)           The Property Trustee shall keep or
cause to be kept, at the Corporate Trust Office, a register or registers (the “Securities Register”) in which the
registrar and transfer agent with respect to the Trust Securities (the “Securities Registrar”), subject to
such reasonable regulations as it may prescribe, shall provide for the
registration of Preferred Securities Certificates and Common Securities
Certificates and registration of transfers and exchanges of Preferred
Securities Certificates as herein provided. The Person acting as the Property
Trustee shall at all times also be the Securities Registrar. The provisions of Article VIII
shall apply to the Property Trustee in its role as Securities Registrar.

 

(b)           Subject to Section 5.7(d), upon
surrender for registration of transfer of any Preferred Securities Certificate
at the office or agency maintained pursuant to Section 5.7(f), the
Administrative Trustees or any one of them shall execute by manual or facsimile
signature and deliver to the Property Trustee, and the Property Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Preferred Securities Certificates in authorized
denominations of a like aggregate Liquidation Amount as may be required by this
Trust Agreement dated the date of execution by such Administrative Trustee or
Trustees.  At the option of a Holder,
Preferred Securities Certificates may be exchanged for other Preferred
Securities Certificates in authorized denominations and of a like aggregate
Liquidation Amount upon surrender of the Preferred Securities Certificate to be
exchanged at the office or agency maintained pursuant to Section 5.7(f).  Whenever any Preferred Securities
Certificates are so surrendered for exchange, the Administrative Trustees or
any one of them shall execute by manual or facsimile signature and deliver to
the Property Trustee, and the Property Trustee shall authenticate and deliver,
the Preferred Securities Certificates that the Holder making the exchange is
entitled to receive.

 

(c)           The Securities Registrar shall not be
required, (i) to issue, register the transfer of or exchange any Preferred
Security during a period beginning at the opening of business fifteen (15) days
before the day of selection for redemption of such Preferred Securities
pursuant to

 

F-28

 

Article IV and ending at the
close of business on the day of mailing of the notice of redemption or (ii) to
register the transfer of or exchange any Preferred Security so selected for
redemption in whole or in part, except, in the case of any such Preferred
Security to be redeemed in part, any portion thereof not to be redeemed.

 

(d)           Every Preferred Securities
Certificate presented or surrendered for registration of transfer or exchange
shall be duly endorsed, or be accompanied by a written instrument of transfer
in form satisfactory to the Securities Registrar duly executed by the Holder or
such Holder’s attorney duly authorized in writing and accompanied by a
certificate of the transferee substantially in the form set forth as Exhibit E
hereto.

 

(e)           No service charge shall be made for
any registration of transfer or exchange of Preferred Securities Certificates,
but the Property Trustee on behalf of the Trust may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of Preferred Securities Certificates.

 

(f)            The Administrative Trustees shall
designate an office or offices or agency or agencies where Preferred Securities
Certificates may be surrendered for registration of transfer or exchange and initially
designate the Corporate Trust Office as its office and agency for such
purposes. The Administrative Trustees shall give prompt written notice to the
Depositor, the Property Trustee and to the Holders of any change in the
location of any such office or agency.

 

(g)           The Preferred Securities may only be
transferred to a “Qualified Purchaser” as such term is defined in Section 2(a)(51)
of the Investment Company Act.

 

(h)           Neither the Trustee nor the
Securities Registrar shall be responsible for ascertaining whether any transfer
hereunder complies with the registration provisions of or any exemptions from
the Securities Act, applicable state securities laws or the applicable laws of
any other jurisdiction, ERISA, the Code or the Investment Company Act; provided that if a certificate is specifically required by
the express terms of this Section 5.7 to be delivered to the Trustee or
the Securities Registrar by a Holder or transferee of a Security, the Trustee
and the Securities Registrar shall be under a duty to receive and examine the
same to determine whether or not the certificate substantially conforms on its
face to the requirements of this Indenture and shall promptly notify the party
delivering the same if such certificate does not comply with such terms.

 

SECTION 5.8.  Mutilated, Destroyed, Lost or
Stolen Securities Certificates.

 

(a)           If any mutilated Securities
Certificate shall be surrendered to the Securities Registrar together with such
security or indemnity as may be required by the Securities Registrar to save
each of the Trustees harmless, the Administrative Trustees, or any one of them,
on behalf of the Trust, shall execute and make available for delivery in
exchange therefor a new Securities Certificate of like class, tenor and
denomination.

 

(b)           If the Securities Registrar shall
receive evidence to its satisfaction of the destruction, loss or theft of any
Securities Certificate and there shall be delivered to the Securities Registrar
such security or indemnity as may be required by it to save each of the Trustees
harmless, then in the absence of notice that such Securities Certificate shall
have been

 

F-29

 

acquired by a protected purchaser, the Administrative
Trustees, or any one of them, on behalf of the Trust, shall execute and make
available for delivery, and, with respect to Preferred Securities, the Property
Trustee shall authenticate, in exchange for or in lieu of any such destroyed,
lost or stolen Securities Certificate, a new Securities Certificate of like
class, tenor and denomination.

 

(c)           In connection with the issuance of
any new Securities Certificate under this Section 5.8, the
Administrative Trustees or the Securities Registrar may require the payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith.

 

(d)           Any duplicate Securities Certificate
issued pursuant to this Section 5.8 shall constitute conclusive
evidence of an undivided beneficial interest in the assets of the Trust corresponding
to that evidenced by the mutilated, lost, stolen or destroyed Securities
Certificate, as if originally issued, whether or not the lost, stolen or
destroyed Securities Certificate shall be found at any time.

 

(e)           If any such mutilated, destroyed,
lost or stolen Securities Certificate has become or is about to become due and
payable, the Depositor in its discretion may provide the Administrative Trustee
with the funds to pay such Trust Security and upon receipt of such funds, the
Administrative Trustee shall pay such Trust Security instead of issuing a new
Securities Certificate.

 

(f)            The provisions of this Section 5.8
are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement of mutilated, destroyed, lost or
stolen Securities Certificates.

 

SECTION 5.9.  Persons Deemed Holders.

 

The Trustees and the Securities Registrar shall each
treat the Person in whose name any Securities Certificate shall be registered
in the Securities Register as the owner of such Securities Certificate for the
purpose of receiving Distributions and for all other purposes whatsoever, and
none of the Trustees and the Securities Registrar shall be bound by any notice
to the contrary.

 

SECTION 5.10.  Cancellation.

 

All Preferred Securities Certificates surrendered for
registration of transfer or exchange or for payment shall, if surrendered to
any Person other than the Property Trustee, be delivered to the Property
Trustee, and any such Preferred Securities Certificates and Preferred
Securities Certificates surrendered directly to the Property Trustee for any
such purpose shall be promptly canceled by it. 
The Administrative Trustees may at any time deliver to the Property
Trustee for cancellation any Preferred Securities Certificates previously
delivered hereunder that the Administrative Trustees may have acquired in any
manner whatsoever, and all Preferred Securities Certificates so delivered shall
be promptly canceled by the Property Trustee. 
No Preferred Securities Certificates shall be executed and delivered in
lieu of or in exchange for any Preferred Securities Certificates canceled as
provided in this Section 5.10, except as expressly permitted by
this Trust Agreement.  All canceled
Preferred Securities Certificates shall be retained by the Property Trustee in
accordance with its customary practices.

 

F-30

 

SECTION 5.11.  Ownership of Common Securities
by Depositor.

 

(a)           On the Closing Date, the Depositor
shall acquire, and thereafter shall retain, beneficial and record ownership of
the Common Securities. Neither the Depositor nor any successor Holder of the
Common Securities may transfer less than all the Common Securities, and the
Depositor or any such successor Holder may transfer the Common Securities only (i) in
connection with a consolidation or merger of the Depositor into another Person,
or any conveyance, transfer or lease by the Depositor of its properties and
assets substantially as an entirety to any Person (in which event such Common
Securities will be transferred to such surviving entity, transferee or lessee,
as the case may be), pursuant to Section 8.1 of the Indenture or (ii) to
the Depositor or an Affiliate of the Depositor, in each such case in compliance
with applicable law (including the Securities Act, and applicable state
securities and blue sky laws). To the fullest extent permitted by law, any
attempted transfer of the Common Securities other than as set forth in the
immediately preceding sentence shall be void. The Administrative Trustees shall
cause each Common Securities Certificate issued to the Depositor to contain a
legend stating substantially “THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN
COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE TRUST AGREEMENT.”

 

(b)           Any Holder of the Common Securities
shall be liable for the debts and obligations of the Trust in the manner and to
the extent set forth with respect to the Depositor and agrees that it shall be
subject to all liabilities to which the Depositor may be subject and, prior to
becoming such a Holder, shall deliver to the Administrative Trustees an
instrument of assumption satisfactory to such Trustees.

 

SECTION 5.12.  Restricted Legends.

 

(a)           Each Preferred Security Certificate
shall bear a legend in substantially the following form:

 

“[IF THIS SECURITY IS A GLOBAL SECURITY
INSERT: THIS PREFERRED SECURITY IS A GLOBAL SECURITY
WITHIN THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF
DTC. THIS PREFERRED SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE
NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT, AND NO TRANSFER OF THIS PREFERRED
SECURITY (OTHER THAN A TRANSFER OF THIS PREFERRED SECURITY AS A WHOLE BY DTC TO
A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE
REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS
THIS PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO
GRAMERCY CAPITAL TRUST III OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE

 

F-31

 

&
CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

 

THE
PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND SUCH PREFERRED SECURITIES OR ANY INTEREST
THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF ANY PREFERRED SECURITIES IS
HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED SECURITIES MAY BE RELYING
ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

 

THE
HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR
THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT (A) SUCH PREFERRED
SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE
TRUST OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED
PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT
OF 1940, AS AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY
PREFERRED SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

THE PREFERRED
SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN
AGGREGATE LIQUIDATION AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY
INTEREST THEREIN,  IN A BLOCK HAVING AN
AGGREGATE LIQUIDATION AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000 IN
EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
NOT TO BE THE HOLDER OF SUCH PREFERRED SECURITIES FOR ANY PURPOSE, INCLUDING,
BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH PREFERRED
SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE
DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH PREFERRED SECURITIES.

 

THE
HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN,  BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO
AGREES, REPRESENTS AND

 

F-32

 

WARRANTS
THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN
OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED (“ERISA”),
OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE
UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN
THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE
OR HOLD THIS PREFERRED SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR HOLDER
OF THE PREFERRED SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE
BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN
TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON
ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR
ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE.”

 

(b)           The above legend shall not be removed
from any of the Preferred Securities Certificates unless there is delivered to
the Property Trustee and the Depositor satisfactory evidence, which may include
an opinion of counsel, as may be reasonably required to ensure that any future
transfers thereof may be made without restriction under the provisions of the
Securities Act and other applicable law. 
Upon provision of such satisfactory evidence, one or more of the
Administrative Trustees on behalf of the Trust shall execute and deliver to the
Property Trustee, and the Property Trustee shall deliver, at the written
direction of the Administrative Trustees and the Depositor, Preferred
Securities Certificates that do not bear the legend.

 

SECTION 5.13.  Form of Certificate of
Authentication.

 

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

 

This is one of the Preferred Securities referred to in
the within-mentioned Trust Agreement.

 

	
  Dated:

  	
  JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  not in its
  individual capacity, but solely as Property

  
	
   

  	
  Trustee

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  signatory

  

 

F-33

 

ARTICLE VI

MEETINGS; VOTING; ACTS OF HOLDERS

 

SECTION 6.1.  Notice of Meetings.

 

Notice of all meetings of the Holders of the Preferred
Securities, stating the time, place and purpose of the meeting, shall be given
by the Property Trustee pursuant to Section 10.8 to each Holder of
Preferred Securities, at such Holder’s registered address, at least fifteen
(15) days and not more than ninety (90) days before the meeting. At any such
meeting, any business properly before the meeting may be so considered whether
or not stated in the notice of the meeting. Any adjourned meeting may be held
as adjourned without further notice.

 

SECTION 6.2.  Meetings of Holders of the
Preferred Securities.

 

(a)           No annual meeting of Holders is
required to be held. The Property Trustee, however, shall call a meeting of the
Holders of the Preferred Securities to vote on any matter upon the written
request of the Holders of at least twenty five percent (25%) in aggregate
Liquidation Amount of the Outstanding Preferred Securities and the
Administrative Trustees or the Property Trustee may, at any time in their
discretion, call a meeting of the Holders of the Preferred Securities to vote
on any matters as to which such Holders are entitled to vote.

 

(b)           The Holders of at least a Majority in
Liquidation Amount of the Preferred Securities, present in person or by proxy,
shall constitute a quorum at any meeting of the Holders of the Preferred
Securities.

 

(c)           If a quorum is present at a meeting,
an affirmative vote by the Holders present, in person or by proxy, holding
Preferred Securities representing at least a Majority in Liquidation Amount of
the Preferred Securities held by the Holders present, either in person or by
proxy, at such meeting shall constitute the action of the Holders of the
Preferred Securities, unless this Trust Agreement requires a lesser or greater
number of affirmative votes.

 

SECTION 6.3.  Voting Rights.

 

Holders shall be entitled to one vote for each $10,000
of Liquidation Amount represented by their Outstanding Trust Securities in
respect of any matter as to which such Holders are entitled to vote.

 

SECTION 6.4.  Proxies, Etc.

 

At any meeting of Holders, any Holder entitled to vote
thereat may vote by proxy, provided that no proxy shall be voted at any
meeting unless it shall have been placed on file with the Administrative
Trustees, or with such other officer or agent of the Trust as the Administrative
Trustees may direct, for verification prior to the time at which such vote
shall be taken. Pursuant to a resolution of the Property Trustee, proxies may
be solicited in the name of the Property Trustee or one or more officers of the
Property Trustee. Only Holders of record shall be entitled to vote. When Trust
Securities are held jointly by several Persons, any one of them may vote at any
meeting in person or by proxy in respect of such Trust Securities, but if more
than one of

 

F-34

 

them
shall be present at such meeting in person or by proxy, and such joint owners
or their proxies so present disagree as to any vote to be cast, such vote shall
not be received in respect of such Trust Securities. A proxy purporting to be
executed by or on behalf of a Holder shall be deemed valid unless challenged at
or prior to its exercise, and the burden of proving invalidity shall rest on
the challenger. No proxy shall be valid more than three years after its date of
execution.

 

SECTION 6.5.  Holder Action by Written
Consent.

 

Any action that may be taken by Holders at a meeting
may be taken without a meeting and without prior notice if Holders holding at
least a Majority in Liquidation Amount of all Preferred Securities entitled to
vote in respect of such action (or such lesser or greater proportion thereof as
shall be required by any other provision of this Trust Agreement) shall consent
to the action in writing; provided that notice of such action is
promptly provided to the Holders of Preferred Securities that did not consent
to such action.  Any action that may be
taken by the Holders of all the Common Securities may be taken without a
meeting and without prior notice if such Holders shall consent to the action in
writing.

 

SECTION 6.6.  Record Date for Voting and
Other Purposes.

 

Except as provided in Section 6.10(a), for
the purposes of determining the Holders who are entitled to notice of and to
vote at any meeting or to act by written consent, or to participate in any
distribution on the Trust Securities in respect of which a record date is not
otherwise provided for in this Trust Agreement, or for the purpose of any other
action, the Administrative Trustees may from time to time fix a date, not more
than ninety (90) days prior to the date of any meeting of Holders or the
payment of a Distribution or other action, as the case may be, as a record date
for the determination of the identity of the Holders of record for such
purposes.

 

SECTION 6.7.  Acts of Holders.

 

(a)           Any request, demand, authorization,
direction, notice, consent, waiver or other action provided or permitted by
this Trust Agreement to be given, made or taken by Holders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such Holders in person or by an agent thereof duly appointed in writing;
and, except as otherwise expressly provided herein, such action shall become
effective when such instrument or instruments are delivered to an
Administrative Trustee. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such
instrument or instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this
Trust Agreement and conclusive in favor of the Trustees, if made in the manner
provided in this Section 6.7.

 

(b)           The fact and date of the execution by
any Person of any such instrument or writing may be proved by the affidavit of
a witness of such execution or by a certificate of a notary public or other
officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof. Where such execution is by a signer acting in a capacity other than
such signer’s

 

F-35

 

individual capacity, such certificate or affidavit
shall also constitute sufficient proof of such signer’s authority. The fact and
date of the execution of any such instrument or writing, or the authority of
the Person executing the same, may also be proved in any other manner that any
Trustee receiving the same deems sufficient.

 

(c)           The ownership of Trust Securities
shall be proved by the Securities Register.

 

(d)           Any request, demand, authorization,
direction, notice, consent, waiver or other Act of the Holder of any Trust
Security shall bind every future Holder of the same Trust Security and the Holder
of every Trust Security issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done, omitted or
suffered to be done by the Trustees, the Administrative Trustees or the Trust
in reliance thereon, whether or not notation of such action is made upon such
Trust Security.

 

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

 

(f)            If any dispute shall arise among the
Holders or the Trustees with respect to the authenticity, validity or binding
nature of any request, demand, authorization, direction, notice, consent,
waiver or other Act of such Holder or Trustee under this Article VI,
then the determination of such matter by the Property Trustee shall be
conclusive with respect to such matter.

 

SECTION 6.8.  Inspection of Records.

 

Upon reasonable written notice to the Administrative
Trustees and the Property Trustee, the records of the Trust shall be open to
inspection by any Holder during normal business hours for any purpose
reasonably related to such Holder’s interest as a Holder.

 

SECTION 6.9.  Limitations on Voting Rights.

 

(a)           Except as expressly provided in this
Trust Agreement and in the Indenture and as otherwise required by law, no
Holder of Preferred Securities shall have any right to vote or in any manner
otherwise control the administration, operation and management of the Trust or
the obligations of the parties hereto, nor shall anything herein set forth, or
contained in the terms of the Securities Certificates, be construed so as to
constitute the Holders from time to time as partners or members of an
association.

 

(b)           So long as any Notes are held by the
Property Trustee on behalf of the Trust, the Property Trustee shall not (i) direct
the time, method and place of conducting any proceeding for any remedy
available to the Note Trustee, or exercise any trust or power conferred on the
Property Trustee with respect to the Notes, (ii) waive any past default
that may be waived under Section 5.13 of the Indenture or waive compliance
with any covenant or condition under Section 10.7 of the Indenture, (iii) exercise
any right to rescind or annul a declaration that the principal of all the Notes
shall be due and payable or (iv) consent to any amendment, modification or

 

F-36

 

termination of the Indenture or the Notes, where such
consent shall be required, without, in each case, obtaining the prior approval
of the Holders of at least a Majority in Liquidation Amount of the Preferred
Securities; provided that where a
consent under the Indenture would require the consent of each holder of Notes
(or each Holder of Preferred Securities) affected thereby, no such consent
shall be given by the Property Trustee without the prior written consent of
each Holder of Preferred Securities. The Property Trustee shall not revoke any
action previously authorized or approved by a vote of the Holders of the
Preferred Securities, except by a subsequent vote of the Holders of the
Preferred Securities.  In addition to
obtaining the foregoing approvals of the Holders of the Preferred Securities,
prior to taking any of the foregoing actions, the Property Trustee shall, at
the expense of the Depositor, obtain an Opinion of Counsel experienced in such
matters to the effect that such action shall not cause the Trust to be taxable
as a corporation or classified as other than a grantor trust for U.S. federal
income tax purposes.

 

(c)           If any proposed amendment to the
Trust Agreement provides for, or the Trustees otherwise propose to effect, (i) any
action that would adversely affect in any material respect the powers,
preferences or special rights of the Preferred Securities, whether by way of
amendment to the Trust Agreement or otherwise or (ii) the dissolution,
winding-up or termination of the Trust, other than pursuant to the terms of
this Trust Agreement, then the Holders of Outstanding Preferred Securities as a
class will be entitled to vote on such amendment or proposal and such amendment
or proposal shall not be effective except with the approval of the Holders of
at least a Majority in Liquidation Amount of the Preferred Securities.
Notwithstanding any other provision of this Trust Agreement, no amendment to this
Trust Agreement may be made if, as a result of such amendment, it would cause
the Trust to be taxable as a corporation or classified as other than a grantor
trust for U.S. federal income tax purposes.

 

SECTION 6.10.  Acceleration of Maturity;
Rescission of Annulment; Waivers of Past Defaults.

 

(a)           For so long as any Preferred
Securities remain Outstanding, if, upon a Note Event of Default, the Note
Trustee fails or the holders of not less than twenty five percent (25%) in
principal amount of the outstanding Notes fail to declare the principal of all
of the Notes to be immediately due and payable, the Holders of at least twenty
five percent (25%) in Liquidation Amount of the Preferred Securities then
Outstanding shall have the right to make such declaration by a notice in
writing to the Property Trustee, the Depositor and the Note Trustee.  At any time after a declaration of
acceleration with respect to the Notes has been made and before a judgment or
decree for payment of the money due has been obtained by the Note Trustee as
provided in the Indenture, the Holders of at least a Majority in Liquidation
Amount of the Preferred Securities, by written notice to the Property Trustee,
the Depositor and the Note Trustee, may rescind and annul such declaration and
its consequences if:

 

(i)            the Depositor has paid or deposited
with the Note Trustee a sum sufficient to pay:

 

(A)          all overdue installments of interest
on all of the Notes;

 

(B)           any accrued Additional Interest on
all of the Notes;

 

F-37

 

(C)           the principal of and premium, if any,
on any Notes that have become due otherwise than by such declaration of
acceleration and interest and Additional Interest thereon at the rate borne by
the Notes; and

 

(D)          all sums paid or advanced by the Note
Trustee under the Indenture and the reasonable compensation, expenses,
disbursements and advances of the Note Trustee, the Property Trustee and their
agents and counsel; and

 

(ii)           all Note Events of Default, other
than the non-payment of the principal of the Notes that has become due solely
by such acceleration, have been cured or waived as provided in Section 5.13
of the Indenture.

 

Upon receipt by the Property Trustee of written notice
requesting such an acceleration, or rescission and annulment thereof, by
Holders of any part of the Preferred Securities, a record date shall be
established for determining Holders of Outstanding Preferred Securities
entitled to join in such notice, which record date shall be at the close of
business on the day the Property Trustee receives such notice. The Holders on
such record date, or their duly designated proxies, and only such Persons,
shall be entitled to join in such notice, whether or not such Holders remain
Holders after such record date; provided
that, unless such declaration of acceleration, or rescission and annulment, as
the case may be, shall have become effective by virtue of the requisite
percentage having joined in such notice prior to the day that is ninety (90)
days after such record date, such notice of declaration of acceleration, or
rescission and annulment, as the case may be, shall automatically and without
further action by any Holder be canceled and of no further effect. Nothing in
this paragraph shall prevent a Holder, or a proxy of a Holder, from giving,
after expiration of such ninety (90)-day period, a new written notice of
declaration of acceleration, or rescission and annulment thereof, as the case
may be, that is identical to a written notice that has been canceled pursuant
to the proviso to the preceding sentence, in which event a new record date
shall be established pursuant to the provisions of this Section 6.10(a).

 

(b)           For so long as any Preferred
Securities remain Outstanding, to the fullest extent permitted by law and
subject to the terms of this Trust Agreement and the Indenture, upon a Note
Event of Default specified in paragraph (a) or (b) of Section 5.1
of the Indenture, any Holder of Preferred Securities shall have the right to
institute a proceeding directly against the Depositor, pursuant to Section 5.8
of the Indenture, for enforcement of payment to such Holder of any amounts
payable in respect of Notes having an aggregate principal amount equal to the
aggregate Liquidation Amount of the Preferred Securities of such Holder.  Except as set forth in Section 6.10(a) and
this Section 6.10(b), the Holders of Preferred Securities shall
have no right to exercise directly any right or remedy available to the holders
of, or in respect of, the Notes.

 

(c)           Notwithstanding paragraphs (a) and
(b) of this Section 6.10, the Holders of at least a Majority
in Liquidation Amount of the Preferred Securities may, on behalf of the Holders
of all the Preferred Securities, waive any Note Event of Default, except any
Note Event of Default arising from the failure to pay any principal of or
premium, if any, or interest (including any Additional Interest) on the Notes
(unless such Note Event of Default has been cured and a sum sufficient to pay
all matured installments of interest and all principal and premium, if any, on
all Notes due otherwise than by acceleration has been deposited with the Note
Trustee) or a Note Event of Default in respect of a covenant or provision that
under the Indenture cannot be

 

F-38

 

modified or amended without the consent of the holder
of each outstanding Note. Upon any such waiver, such Note Event of Default
shall cease to exist and any Note Event of Default arising therefrom shall be
deemed to have been cured for every purpose of the Indenture; but no such
waiver shall affect any subsequent Note Event of Default or impair any right
consequent thereon.

 

(d)           Notwithstanding paragraphs (a) and
(b) of this Section 6.10, the Holders of at least a Majority
in Liquidation Amount of the Preferred Securities may, on behalf of the Holders
of all the Preferred Securities, waive any past Event of Default and its
consequences.  Upon such waiver, any such
Event of Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Trust Agreement,
but no such waiver shall extend to any subsequent or other Event of Default or
impair any right consequent thereon.

 

(e)           The Holders of a Majority in
Liquidation Amount of the Preferred Securities shall have the right to direct
the time, method and place of conducting any proceeding for any remedy
available to the Property Trustee in respect of this Trust Agreement or the
Notes or exercising any trust or power conferred upon the Property Trustee
under this Trust Agreement; provided
that, subject to Section 8.5 and Section 8.7, the
Property Trustee shall have the right to decline to follow any such direction
if the Property Trustee being advised by counsel determines that the action so
directed may not lawfully be taken, or if the Property Trustee in good faith
shall, by an officer or officers of the Property Trustee, determine that the
proceedings so directed would be illegal or involve it in personal liability or
be unduly prejudicial to the rights of Holders not party to such direction, and
provided, further, that
nothing in this Trust Agreement shall impair the right of the Property Trustee
to take any action deemed proper by the Property Trustee and which is not
inconsistent with such direction.

 

ARTICLE VII

REPRESENTATIONS AND WARRANTIES

 

SECTION 7.1.  Representations and Warranties
of the Property Trustee and the Delaware Trustee.

 

The Property Trustee and the Delaware Trustee, each
severally on behalf of and as to itself, hereby represents and warrants for the
benefit of the Depositor and the Holders that:

 

(a)           the Property Trustee is a national
banking association, duly organized and validly existing under the laws of the
United States;

 

(b)           the Property Trustee has full
corporate power, authority and legal right to execute, deliver and perform its
obligations under this Trust Agreement and has taken all necessary action to
authorize the execution, delivery and performance by it of this Trust
Agreement;

 

(c)           the Delaware Trustee is a national
banking association, duly formed and validly existing under the laws of the
United States;

 

(d)           the Delaware Trustee has full
corporate power, authority and legal right to execute, deliver and perform its
obligations under this Trust Agreement and has taken all

 

F-39

 

necessary action to authorize the execution, delivery
and performance by it of this Trust Agreement;

 

(e)           this Trust Agreement has been duly
authorized, executed and delivered by the Property Trustee and the Delaware
Trustee and constitutes the legal, valid and binding agreement of each of the
Property Trustee and the Delaware Trustee enforceable against each of them in
accordance with its terms, subject to applicable bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws affecting
creditors’ rights generally and to general principles of equity;

 

(f)            the execution, delivery and
performance of this Trust Agreement have been duly authorized by all necessary
corporate or other action on the part of the Property Trustee and the Delaware
Trustee and do not require any approval of stockholders of the Property Trustee
and the Delaware Trustee and such execution, delivery and performance will not (i) violate
the Restated Organization Certificate or Articles of Association, as
applicable, or By-laws of the Property Trustee or the Delaware Trustee, (ii) violate
any provision of, or constitute, with or without notice or lapse of time, a
default under, or result in the imposition of any lien on any properties
included in the Trust Property pursuant to the provisions of any indenture,
mortgage, credit agreement, license or other agreement or instrument to which
the Property Trustee or the Delaware Trustee is a party or by which it is
bound, or (iii) violate any applicable law, governmental rule or
regulation of the United States or the State of Delaware, as the case may be,
governing the banking, trust or general powers of the Property Trustee or the
Delaware Trustee or any order, judgment or decree applicable to the Property
Trustee or the Delaware Trustee;

 

(g)           neither the authorization, execution
or delivery by the Property Trustee or the Delaware Trustee of this Trust
Agreement nor the consummation of any of the transactions by the Property
Trustee or the Delaware Trustee contemplated herein requires the consent or
approval of, the giving of notice to, the registration with or the taking of
any other action with respect to any governmental authority or agency under any
existing law of the United States or the State of Delaware governing the
banking, trust or general powers of the Property Trustee or the Delaware
Trustee, as the case may be; and

 

(h)           to the best of each of the Property
Trustee’s and the Delaware Trustee’s knowledge, there are no proceedings
pending or threatened against or affecting the Property Trustee or the Delaware
Trustee in any court or before any governmental authority, agency or
arbitration board or tribunal that, individually or in the aggregate, would
materially and adversely affect the Trust or would question the right, power
and authority of the Property Trustee or the Delaware Trustee, as the case may
be, to enter into or perform its obligations as one of the Trustees under this Trust
Agreement.

 

SECTION 7.2.  Representations and Warranties
of Depositor.

 

The Depositor hereby represents and warrants for the
benefit of the Holders and the Trustees that:

 

F-40

 

(a)           the Depositor is a corporation duly
organized, validly existing and in good standing under the laws of its state of
incorporation;

 

(b)           the Depositor has full corporate
power, authority and legal right to execute, deliver and perform its
obligations under this Trust Agreement and has taken all necessary action to
authorize the execution, delivery and performance by it of this Trust
Agreement;

 

(c)           this Trust Agreement has been duly
authorized, executed and delivered by the Depositor and constitutes the legal,
valid and binding agreement of the Depositor enforceable against the Depositor
in accordance with its terms, subject to applicable bankruptcy, insolvency and
similar laws affecting creditors’ rights generally and to general principles of
equity;

 

(d)           the Securities Certificates issued at
the Closing Date on behalf of the Trust have been duly authorized and will have
been duly and validly executed, issued and delivered by the applicable Trustees
pursuant to the terms and provisions of, and in accordance with the requirements
of, this Trust Agreement and the Holders will be, as of such date, entitled to
the benefits of this Trust Agreement;

 

(e)           the execution, delivery and
performance of this Trust Agreement have been duly authorized by all necessary
corporate or other action on the part of the Depositor and do not require any
approval of stockholders of the Depositor and such execution, delivery and
performance will not (i) violate the articles or certificate of
incorporation or by-laws (or other organizational documents) of the Depositor
or violate any applicable law, governmental rule or regulation governing
the Depositor or any material portion of its property or any order, judgment or
decree applicable to the Depositor or any material portion of its property;

 

(f)            neither the authorization, execution
or delivery by the Depositor of this Trust Agreement nor the consummation of
any of the transactions by the Depositor contemplated herein requires the
consent or approval of, the giving of notice to, the registration with or the
taking of any other action with respect to any governmental authority or agency
under any existing law governing the Depositor or any material portion of its
property; and

 

(g)           there are no proceedings pending or,
to the best of the Depositor’s knowledge, threatened against or affecting the
Depositor or any material portion of its property in any court or before any
governmental authority, agency or arbitration board or tribunal that,
individually or in the aggregate, would materially and adversely affect the
Trust or would question the right, power and authority of the Depositor, as the
case may be, to enter into or perform its obligations under this Trust
Agreement.

 

ARTICLE VIII

THE TRUSTEES

 

SECTION 8.1.  Number of Trustees.

 

The number of Trustees shall be five (5); provided that the Property Trustee and the
Delaware Trustee may be the same Person, in which case the number of Trustees
shall be four (4). The number of Trustees may be increased or decreased by Act
of the Holder of the Common

 

F-41

 

Securities
subject to Section 8.2, Section 8.3, and Section 8.4.
The death, resignation, retirement, removal, bankruptcy, incompetence or
incapacity to perform the duties of a Trustee shall not operate to annul, dissolve
or terminate the Trust.

 

SECTION 8.2.  Property Trustee Required.

 

There shall at all times be a Property Trustee
hereunder with respect to the Trust Securities. The Property Trustee shall be a
corporation organized and doing business under the laws of the United States or
of any state thereof, authorized to exercise corporate trust powers, having a
combined capital and surplus of at least fifty million dollars ($50,000,000),
subject to supervision or examination by federal or state authority and having
an office within the United States.  If
any such Person publishes reports of condition at least annually pursuant to
law or to the requirements of its supervising or examining authority, then for
the purposes of this Section 8.2, the combined capital and surplus
of such Person shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time the
Property Trustee shall cease to be eligible in accordance with the provisions
of this Section 8.2, it shall resign immediately in the manner and
with the effect hereinafter specified in this Article VIII.

 

SECTION 8.3.  Delaware Trustee Required.

 

(a)           If required by the Delaware Statutory
Trust Act, there shall at all times be a Delaware Trustee with respect to the
Trust Securities. The Delaware Trustee shall either be (i) a natural
person who is at least 21 years of age and a resident of the State of Delaware
or (ii) a legal entity that has its principal place of business in the
State of Delaware, otherwise meets the requirements of applicable Delaware law
and shall act through one or more persons authorized to bind such entity.  If at any time the Delaware Trustee shall
cease to be eligible in accordance with the provisions of this Section 8.3,
it shall resign immediately in the manner and with the effect hereinafter
specified in this Article VIII. 
The Delaware Trustee shall have the same rights, privileges and
immunities as the Property Trustee.

 

(b)           The Delaware Trustee shall not be
entitled to exercise any powers, nor shall the Delaware Trustee have any of the
duties and responsibilities, of the Property Trustee or the Administrative
Trustees set forth herein. The Delaware Trustee shall be one of the trustees of
the Trust for the sole and limited purpose of fulfilling the requirements of Section 3807
of the Delaware Statutory Trust Act and for taking such actions as are required
to be taken by a Delaware trustee under the Delaware Statutory Trust Act. The
duties (including fiduciary duties), liabilities and obligations of the
Delaware Trustee shall be limited to (a) accepting legal process served on
the Trust in the State of Delaware and (b) the execution of any
certificates required to be filed with the Secretary of State of the State of
Delaware that the Delaware Trustee is required to execute under Section 3811
of the Delaware Statutory Trust Act and there shall be no other duties
(including fiduciary duties) or obligations, express or implied, at law or in
equity, of the Delaware Trustee.

 

F-42

 

SECTION 8.4.  Appointment of Administrative
Trustees.

 

(a)           There shall at all times be one or
more Administrative Trustees hereunder with respect to the Trust Securities.
Each Administrative Trustee shall be either a natural person who is at least 21
years of age or a legal entity that shall act through one or more persons
authorized to bind that entity.  Each of
the individuals identified as an “Administrative
Trustee” in the preamble of this Trust Agreement hereby accepts his or
her appointment as such.

 

(b)           Except where a requirement for action
by a specific number of Administrative Trustees is expressly set forth in this
Trust Agreement, any act required or permitted to be taken by, and any power of
the Administrative Trustees may be exercised by, or with the consent of, any
one such Administrative Trustee. Whenever a vacancy in the number of
Administrative Trustees shall occur, until such vacancy is filled by the
appointment of an Administrative Trustee in accordance with Section 8.11,
the Administrative Trustees in office, regardless of their number (and
notwithstanding any other provision of this Trust Agreement), shall have all
the powers granted to the Administrative Trustees and shall discharge all the
duties imposed upon the Administrative Trustees by this Trust Agreement.

 

SECTION 8.5.  Duties and Responsibilities of
the Trustees.

 

(a)           The rights, immunities, duties and
responsibilities of the Trustees shall be as provided by this Trust Agreement
and there shall be no other duties (including fiduciary duties) or obligations,
express or implied, at law or in equity, of the Trustees; provided, however, that if
an Event of Default known to the Property Trustee has occurred and is
continuing, the Property Trustee shall, prior to the receipt of directions, if
any, from the Holders of at least a Majority in Liquidation Amount of the
Preferred Securities, exercise such of the rights and powers vested in it by
this Trust Agreement, and use the same degree of care and skill in its
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person’s own affairs. 
Notwithstanding the foregoing, no provision of this Trust Agreement
shall require any of the Trustees to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its or their rights or powers, if it or
they shall have reasonable grounds for believing that repayment of such funds
or adequate indemnity against such risk or liability is not reasonably assured
to it. Whether or not herein expressly so provided, every provision of this
Trust Agreement relating to the conduct or affecting the liability of or
affording protection to the Trustees shall be subject to the provisions of this
Section 8.5. Nothing in this Trust Agreement shall be construed to
release any Administrative Trustee from liability for his or her own negligent
action, negligent failure to act; or his or her own willful misconduct. To the
extent that, at law or in equity, a Trustee has duties and liabilities relating
to the Trust or to the Holders, such Trustee shall not be liable to the Trust
or to any Holder for such Trustee’s good faith reliance on the provisions of
this Trust Agreement. The provisions of this Trust Agreement, to the extent
that they restrict the duties and liabilities of the Trustees otherwise
existing at law or in equity, are agreed by the Depositor and the Holders to
replace such other duties and liabilities of the Trustees.

 

(b)           All payments made by the Property
Trustee or a Paying Agent in respect of the Trust Securities shall be made only
from the revenue and proceeds from the Trust Property and only to the extent
that there shall be sufficient revenue or proceeds from the Trust Property to

 

F-43

 

enable the Property Trustee or a Paying Agent to make
payments in accordance with the terms hereof. Each Holder, by its acceptance of
a Trust Security, agrees that it will look solely to the revenue and proceeds
from the Trust Property to the extent legally available for distribution to it
as herein provided and that the Trustees are not personally liable to it for
any amount distributable in respect of any Trust Security or for any other
liability in respect of any Trust Security. This Section 8.5(b) does
not limit the liability of the Trustees expressly set forth elsewhere in this
Trust Agreement.

 

(c)           No provisions of this Trust Agreement
shall be construed to relieve the Property Trustee from liability with respect
to matters that are within the authority of the Property Trustee under this
Trust Agreement for its own negligent action, negligent failure to act or
willful misconduct, except that:

 

(i)            the Property Trustee shall not be
liable for any error or judgment made in good faith by an authorized officer of
the Property Trustee, unless it shall be proved that the Property Trustee was
negligent in ascertaining the pertinent facts;

 

(ii)           the Property 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 at least a Majority in
Liquidation Amount of the Preferred Securities relating to the time, method and
place of conducting any proceeding for any remedy available to the Property
Trustee hereunder or under the Indenture, or exercising any trust or power
conferred upon the Property Trustee under this Trust Agreement;

 

(iii)          the Property Trustee’s sole duty with
respect to the custody, safe keeping and physical preservation of the Notes and
the Payment Account shall be to deal with such Property in a similar manner as
the Property Trustee deals with similar property for its own account, subject
to the protections and limitations on liability afforded to the Property
Trustee under this Trust Agreement;

 

(iv)          the Property Trustee shall not be
liable for any interest on any money received by it except as it may otherwise
agree in writing with the Depositor; and money held by the Property Trustee
need not be segregated from other funds held by it except in relation to the
Payment Account maintained by the Property Trustee pursuant to Section 3.1
and except to the extent otherwise required by law; and

 

(v)           the Property Trustee shall not be
responsible for monitoring the compliance by the Administrative Trustees or the
Depositor with their respective duties under this Trust Agreement, nor shall
the Property Trustee be liable for the default or misconduct of any other
Trustee or the Depositor.

 

SECTION 8.6.  Notices of Defaults and
Extensions.

 

(a)           Within ninety (90) days after the
occurrence of a default actually known to the Property Trustee, the Property
Trustee shall transmit notice of such default to the Holders, the
Administrative Trustees and the Depositor, unless such default shall have been
cured or waived. For the purpose of this Section 8.6, the term “default” means any event that is, or
after notice or lapse of time or both would become, an Event of Default.

 

F-44

 

(b)           Within five (5) Business Days
after the receipt of notice of the Depositor’s exercise of its right to defer
the payment of interest on the Notes pursuant to the Indenture, the Property
Trustee shall transmit, in the manner and to the extent provided in Section 10.8,
notice of such exercise to the Holders and the Administrative Trustees, unless
such exercise shall have been revoked.

 

(c)           The Property Trustee shall not be
charged with knowledge of any Event of Default unless either (i) a
Responsible Officer of the Property Trustee shall have actual knowledge or (ii) the
Property Trustee shall have received written notice thereof from the Depositor,
an Administrative Trustee or a Holder.

 

(d)           The Property Trustee shall notify all
Holders of the Preferred Securities of any notice of default received with
respect to the Notes.

 

SECTION 8.7.  Certain Rights of Property
Trustee.

 

Subject to the provisions of Section 8.5:

 

(a)           the Property Trustee may conclusively
rely and shall be protected in acting or refraining from acting in good faith
and in accordance with the terms hereof upon any resolution, Opinion of
Counsel, certificate, written representation of a Holder or transferee,
certificate of auditors or any other resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
appraisal, bond, debenture, note, other evidence of indebtedness or other paper
or document believed by it to be genuine and to have been signed or presented
by the proper party or parties;

 

(b)           if (i) in performing its duties
under this Trust Agreement the Property Trustee is required to decide between
alternative courses of action, (ii) in construing any of the provisions of
this Trust Agreement the Property Trustee finds a provision ambiguous or
inconsistent with any other provisions contained herein or (iii) the
Property Trustee is unsure of the application of any provision of this Trust
Agreement, then, except as to any matter as to which the Holders of the
Preferred Securities are entitled to vote under the terms of this Trust
Agreement, the Property Trustee shall deliver a notice to the Depositor
requesting the Depositor’s written instruction as to the course of action to be
taken and the Property Trustee shall take such action, or refrain from taking
such action, as the Property Trustee shall be instructed in writing to take, or
to refrain from taking, by the Depositor; provided
that if the Property Trustee does not receive such instructions of the
Depositor within ten (10) Business Days after it has delivered such notice
or such reasonably shorter period of time set forth in such notice, the
Property Trustee may, but shall be under no duty to, take such action, or
refrain from taking such action, as the Property Trustee shall deem advisable
and in the best interests of the Holders, in which event the Property Trustee
shall have no liability except for its own negligence, bad faith or willful
misconduct;

 

(c)           any direction or act of the Depositor
contemplated by this Trust Agreement shall be sufficiently evidenced by an
Officers’ Certificate unless otherwise expressly provided herein;

 

F-45

 

(d)           any direction or act of an
Administrative Trustee contemplated by this Trust Agreement shall be
sufficiently evidenced by a certificate executed by such Administrative Trustee
and setting forth such direction or act;

 

(e)           the Property Trustee shall have no
duty to see to any recording, filing or registration of any instrument
(including any financing or continuation statement or any filing under tax or
securities laws) or any re-recording, re-filing or re-registration thereof;

 

(f)            the Property Trustee may consult
with counsel (which counsel may be counsel to the Property Trustee, the
Depositor or any of its Affiliates, and may include any of its employees) and
the advice of such counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon and in accordance with such advice; the
Property Trustee shall have the right at any time to seek instructions
concerning the administration of this Trust Agreement from any court of
competent jurisdiction;

 

(g)           the Property Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by this
Trust Agreement at the request or direction of any of the Holders pursuant to
this Trust Agreement, unless such Holders shall have offered to the Property
Trustee reasonable security or indemnity against the costs, expenses (including
reasonable attorneys’ fees and expenses) and liabilities that might be incurred
by it in compliance with such request or direction, including reasonable advances
as may be requested by the Property Trustee; provided, however,
that nothing contained in this Section 8.7(g) shall be
construed to relieve the Property Trustee, upon the occurrence of an Event of
Default, of its obligation to exercise the rights and powers vested in it by
this Trust Agreement; provided, further, that nothing contained in this Section 8.7(g) shall
prevent the Property Trustee from exercising its rights under Section 8.11
hereof;

 

(h)           the Property Trustee shall not be
bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, approval, bond, debenture, note or other
evidence of indebtedness or other paper or document, unless requested in
writing to do so by one or more Holders, but the Property Trustee may make such
further inquiry or investigation into such facts or matters as it may see fit,
and, if the Property Trustee shall determine to make such inquiry or investigation,
it shall be entitled to examine the books, records and premises of the
Depositor, personally or by agent or attorney;

 

(i)            the Property Trustee may execute any
of the trusts or powers hereunder or perform any duties hereunder either
directly or by or through its agents, attorneys, custodians or nominees and the
Property Trustee shall not be responsible for any negligence or misconduct on
the part of any such agent, attorney, custodian or nominee appointed with due
care by it hereunder;

 

(j)            whenever in the administration of
this Trust Agreement the Property Trustee shall deem it desirable to receive
instructions with respect to enforcing any remedy or right hereunder, the
Property Trustee (i) may request instructions from the Holders (which
instructions may only be given by the Holders of the same proportion in

 

F-46

 

Liquidation Amount of the Trust Securities as would be
entitled to direct the Property Trustee under this Trust Agreement in respect
of such remedy, right or action), (ii) may refrain from enforcing such
remedy or right or taking such other action until such instructions are
received and (iii) shall be protected in acting in accordance with such
instructions;

 

(k)           except as otherwise expressly
provided by this Trust Agreement, the Property Trustee shall not be under any
obligation to take any action that is discretionary under the provisions of
this Trust Agreement;

 

(l)            without prejudice to any other
rights available to the Property Trustee under applicable law, when the
Property Trustee incurs expenses or renders services in connection with a
Bankruptcy Event, such expenses (including legal fees and expenses of its
agents and counsel) and the compensation for such services are intended to constitute
expenses of administration under any bankruptcy law or law relating to
creditors rights generally; and

 

(m)          whenever in the administration of this
Trust Agreement the Property Trustee shall deem it desirable that a matter be
proved or established prior to taking, suffering or omitting any action
hereunder, the Property Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, request and rely on
an Officers’ Certificate which, upon receipt of such request, shall be promptly
delivered by the Depositor.

 

No provision of this Trust Agreement shall be deemed
to impose any duty or obligation on any Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it, in
any jurisdiction in which it shall be illegal, or in which such Person shall be
unqualified or incompetent in accordance with applicable law, to perform any
such act or acts, or to exercise any such right, power, duty or obligation.

 

SECTION 8.8.  Delegation of Power.

 

Any Trustee may, by power of attorney consistent with
applicable law, delegate to any other natural person over the age of 21 its,
his or her power for the purpose of executing any documents contemplated in Section 2.5.
The Trustees shall have power to delegate from time to time to the Depositor
the doing of such things and the execution of such instruments either in the
name of the Trust or the names of the Trustees or otherwise as the Trustees may
deem expedient, to the extent such delegation is not prohibited by applicable
law or contrary to the provisions of this Trust Agreement.

 

SECTION 8.9.  May Hold Securities.

 

Any Trustee or any other agent of any Trustee or the
Trust, in its individual or any other capacity, may become the owner or pledgee
of Trust Securities and except as provided in the definition of the term “Outstanding” in Article I,
may otherwise deal with the Trust with the same rights it would have if it were
not a Trustee or such other agent.

 

F-47

 

SECTION 8.10.  Compensation; Reimbursement;
Indemnity.

 

The Depositor agrees:

 

(a)           to pay to the Trustees from time to
time such reasonable compensation for all services rendered by them hereunder
as may be agreed by the Depositor and the Trustees from time to time (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

 

(b)           to reimburse the Trustees upon
request for all reasonable expenses, disbursements and advances incurred or
made by the Trustees in accordance with any provision of this Trust Agreement
(including the reasonable compensation and the expenses and disbursements of
their agents and counsel), except any such expense, disbursement or advance as
may be attributable to their gross negligence, bad faith or willful misconduct;
and

 

(c)           to the fullest extent permitted by
applicable law, to indemnify and hold harmless (i) each Trustee, (ii) any
Affiliate of any Trustee, (iii) any officer, director, shareholder,
employee, representative or agent of any Trustee or any Affiliate of any
Trustee and (iv) any employee or agent of the Trust (referred to herein as
an “Indemnified Person”) from
and against any loss, damage, liability, tax (other than income, franchise or
other taxes imposed on amounts paid pursuant to Section 8.10(a) or
(b) hereof), penalty, expense or claim of any kind or nature
whatsoever incurred without negligence, bad faith or willful misconduct on its
part, arising out of or in connection with the acceptance or administration of
the Trust hereunder, including the advancement of funds to cover the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder.

 

The Trust shall have no payment, reimbursement or
indemnity obligations to the Trustees under this Section 8.10.  The provisions of this Section 8.10
shall survive the termination of this Trust Agreement and the earlier removal
or resignation of any Trustee.

 

No Trustee may claim any Lien on any Trust Property
whether before or after termination of the Trust as a result of any amount due
pursuant to this Section 8.10.

 

To the fullest extent permitted by law, in no event
shall the Property Trustee and the Delaware Trustee be liable for any indirect,
special, punitive or consequential loss or damage of any kind whatsoever,
including, but not limited to, lost profits, even if the Trustee has been
advised of the likelihood of such loss or damage and regardless of the form of
action.

 

In no event shall the Property Trustee and the
Delaware Trustee be liable for any failure or delay in the performance of its
obligations hereunder because of circumstances beyond its control, including,
but not limited to, acts of God, flood, war (whether declared or undeclared),
terrorism, fire, riot, embargo, government action, including any laws,
ordinances, regulations, governmental action or the like which delay, restrict
or prohibit the providing of the services contemplated by this Trust Agreement.

 

F-48

 

SECTION 8.11.  Resignation and Removal;
Appointment of Successor.

 

(a)           No resignation or removal of any
Trustee and no appointment of a successor Trustee pursuant to this Article VIII
shall become effective until the acceptance of appointment by the successor
Trustee in accordance with the applicable requirements of Section 8.12.

 

(b)           A Trustee may resign at any time by
giving written notice thereof to the Depositor and, in the case of the Property
Trustee and the Delaware Trustee, to the Holders.

 

(c)           Unless an Event of Default shall have
occurred and be continuing, the Property Trustee or the Delaware Trustee, or
both of them, may be removed (with or without cause) at any time by Act of the
Holder of Common Securities.  If an Event
of Default shall have occurred and be continuing, the Property Trustee or the
Delaware Trustee, or both of them, may be removed (with or without cause) at
such time by Act of the Holders of at least a Majority in Liquidation Amount of
the Preferred Securities, delivered to the removed Trustee (in its individual
capacity and on behalf of the Trust).  An
Administrative Trustee may be removed (with or without cause) only by Act of
the Holder of the Common Securities at any time.

 

(d)           If any Trustee shall resign, be
removed or become incapable of acting as Trustee, or if a vacancy shall occur
in the office of any Trustee for any reason, at a time when no Event of Default
shall have occurred and be continuing, the Holder of the Common Securities, by
Act of the Holder of the Common Securities, shall promptly appoint a successor
Trustee or Trustees, and such successor Trustee and the retiring Trustee shall
comply with the applicable requirements of Section 8.12. If the
Property Trustee or the Delaware Trustee shall resign, be removed or become
incapable of continuing to act as the Property Trustee or the Delaware Trustee,
as the case may be, at a time when an Event of Default shall have occurred and
be continuing, the Holders of the Preferred Securities, by Act of the Holders
of a Majority in Liquidation Amount of the Preferred Securities, shall promptly
appoint a successor Property Trustee or Delaware Trustee, and such successor
Property Trustee or Delaware Trustee and the retiring Property Trustee or
Delaware Trustee shall comply with the applicable requirements of Section 8.12.
If an Administrative Trustee shall resign, be removed or become incapable of
acting as Administrative Trustee, at a time when an Event of Default shall have
occurred and be continuing, the Holder of the Common Securities by Act of the
Holder of Common Securities shall promptly appoint a successor Administrative
Trustee and such successor Administrative Trustee and the retiring
Administrative Trustee shall comply with the applicable requirements of Section 8.12.
If no successor Trustee shall have been so appointed by the Holder of the
Common Securities or Holders of the Preferred Securities, as the case may be,
and accepted appointment in the manner required by Section 8.12
within thirty (30) days after the giving of a notice of resignation by a
Trustee, the removal of a Trustee, or a Trustee becoming incapable of acting as
such Trustee, any Holder who has been a Holder of Preferred Securities for at
least six (6) months may, on behalf of himself and all others similarly
situated, and any resigning Trustee may, in each case, at the expense of the
Depositor, petition any court of competent jurisdiction for the appointment of
a successor Trustee.

 

(e)           The Depositor shall give notice of
each resignation and each removal of the Property Trustee or the Delaware
Trustee and each appointment of a successor Property Trustee or Delaware
Trustee to all Holders in the manner provided in Section 10.8.  Each notice shall

 

F-49

 

include the name of the successor Property Trustee or
Delaware Trustee and the address of its Corporate Trust Office if it is the
Property Trustee.

 

(f)            Notwithstanding the foregoing or any
other provision of this Trust Agreement, in the event any Administrative
Trustee or a Delaware Trustee who is a natural person dies or becomes, in the
opinion of the Holder of Common Securities, incompetent or incapacitated, the
vacancy created by such death, incompetence or incapacity may be filled by (i) the
unanimous act of the remaining Administrative Trustees if there are at least
two of them or (ii) otherwise by the Holder of the Common Securities (with
the successor in each case being a Person who satisfies the eligibility
requirement for Administrative Trustees or Delaware Trustee, as the case may
be, set forth in Section 8.3 and Section 8.4).

 

(g)           Upon the appointment of a successor
Delaware Trustee, such successor Delaware Trustee shall file a Certificate of
Amendment to the Certificate of Trust in accordance with Section 3810 of
the Delaware Statutory Trust Act.

 

SECTION 8.12.  Acceptance of Appointment by
Successor.

 

(a)           In case of the appointment hereunder
of a successor Trustee, each successor Trustee shall execute and deliver to the
Depositor and to the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become
effective 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; but, on request of the Trust or any successor Trustee
such retiring Trustee shall, upon payment of its charges, duly assign, transfer
and deliver to such successor Trustee all Trust Property, all proceeds thereof
and money held by such retiring Trustee hereunder with respect to the Trust
Securities and the Trust.

 

(b)           Upon request of any such successor
Trustee, the Trust (or the retiring Trustee if requested by the Depositor)
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 the preceding paragraph.

 

(c)           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 VIII.

 

SECTION 8.13.  Merger, Conversion,
Consolidation or Succession to Business.

 

Any Person into which the Property Trustee or the
Delaware Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Trustee shall be a party, or any Person succeeding
to all or substantially all the corporate trust business of such Trustee, shall
be the successor of such Trustee hereunder, without the execution or filing of
any paper or any further act on the part of any of the parties hereto, provided that such Person shall be
otherwise qualified and eligible under this Article VIII.

 

F-50

 

SECTION 8.14.  Not Responsible for Recitals
Issuance of Securities and Representations.

 

The recitals contained
herein and in the Securities Certificates shall be taken as the statements of
the Trust and the Depositor, and the Trustees do not assume any responsibility
for their correctness.  The Trustees make
no representations as to the title to, or value or condition of, the property
of the Trust or any part thereof, nor as to the validity or sufficiency of this
Trust Agreement, the Notes or the Trust Securities.  The Trustees shall not be accountable for the
use or application by the Depositor of the proceeds of the Notes. It is expressly
understood and agreed by the parties hereto that insofar as any document,
agreement or certificate is executed on behalf of the Trust by any Trustee (i) such
document, agreement or certificate is executed and delivered by such Trustee,
not in its individual capacity but solely as Trustee under this Trust Agreement
in the exercise of the powers and authority conferred and vested in it, (ii) each
of the representations, undertakings and agreements made on the part of the
Trust is made and intended not as representations, warranties, covenants,
undertakings and agreements by any Trustee in its individual capacity but is
made and intended for the purpose of binding only the Trust and (iii) under
no circumstances shall any Trustee in its individual capacity be personally
liable for the payment of any indebtedness or expenses of the Trust or be
liable for the breach or failure of any obligation, representation, warranty or
covenant made or undertaken by the Trust under this Trust Agreement or any
other document, agreement or certificate.

 

SECTION 8.15.  Property Trustee May File
Proofs of Claim.

 

(a)           In case of any Bankruptcy Event (or
event that with the passage of time would become a Bankruptcy Event) relative
to the Trust or any other obligor upon the Trust Securities or the property of
the Trust or of such other obligor or their creditors, the Property Trustee
(irrespective of whether any Distributions on the Trust Securities shall then
be due and payable and irrespective of whether the Property Trustee shall have
made any demand on the Trust for the payment of any past due Distributions)
shall be entitled and empowered, to the fullest extent permitted by law, by
intervention in such proceeding or otherwise:

 

(i)            to file and prove a claim for the
whole amount of any Distributions owing and unpaid in respect of the Trust
Securities and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Property Trustee (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Property Trustee, its agents and counsel) and of the Holders allowed in
such judicial proceeding; and

 

(ii)           to collect and receive any monies or
other property payable or deliverable on any such claims and to distribute the
same;

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such proceeding is
hereby authorized by each Holder to make such payments to the Property Trustee
and, in the event the Property Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Property Trustee first any
amount due it for the reasonable

 

F-51

 

compensation, expenses, disbursements and advances of
the Property Trustee, its agents and counsel, and any other amounts due the
Property Trustee.

 

(b)           Nothing herein contained shall be
deemed to authorize the Property Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or compensation affecting the Trust Securities or the rights of any
Holder thereof or to authorize the Property Trustee to vote in respect of the
claim of any Holder in any such proceeding.

 

SECTION 8.16.  Reports to the Property Trustee.

 

(a)           The Depositor and the Administrative
Trustees shall deliver to the Property Trustee, not later than forty five (45)
days after the end of each of the first three fiscal quarters of the Depositor
and not later than ninety (90) days after the end of each fiscal year of the
Trust ending after the date of this Trust Agreement, an Officers’ Certificate
covering the preceding fiscal year, stating whether or not to the knowledge of
the signers thereof the Depositor and the Trust are in default in the
performance or observance of any of the terms, provisions and conditions of
this Trust Agreement (without regard to any period of grace or requirement of
notice provided hereunder) and, if the Depositor or the Trust shall be in
default, specifying all such defaults and the nature and status thereof of
which they have knowledge.

 

(b)           The Depositor shall furnish (i) to
the Property Trustee; (ii) Taberna Capital Management, LLC; and (iii) any
Owner of the Preferred Securities reasonably identified to the Depositor and
the Trust (which identification may be made either by such Owner or by Taberna
Capital Management, LLC) a duly completed and executed certificate
substantively and substantially in the form attached hereto as Exhibit F,
including the financial statements referenced in such Exhibit, which
certificate and financial statements shall be so furnished by the Depositor not
later than forty five (45) days after the end of each of the first three fiscal
quarters of each fiscal year of the Depositor and not later than ninety (90)
days after the end of each fiscal year of the Depositor.

 

The Property Trustee shall obtain all reports,
certificate and information, which it is entitled to obtain under each of the
Operative Documents.

 

ARTICLE IX

TERMINATION, LIQUIDATION AND MERGER

 

SECTION 9.1.  Dissolution Upon Expiration
Date.

 

Unless earlier dissolved, the Trust shall
automatically dissolve on January 30, 2041 (the “Expiration Date”), and the Trust Property shall be liquidated
in accordance with Section 9.4.

 

SECTION 9.2.  Early Termination.

 

The first to occur of any of the following events is
an “Early Termination Event”,
upon the occurrence of which the Trust shall be dissolved:

 

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(a)           the occurrence of a Bankruptcy Event
in respect of, or the dissolution or liquidation of, the Depositor, in its
capacity as the Holder of the Common Securities, unless the Depositor shall
have transferred the Common Securities as provided by Section 5.11,
in which case this provision shall refer instead to any such successor Holder
of the Common Securities;

 

(b)           the written direction to the Property
Trustee from the Holder of the Common Securities at any time to dissolve the
Trust and, after satisfaction of any liabilities of the Trust as required by
applicable law, to distribute the Notes to Holders in exchange for the
Preferred Securities (which direction is optional and wholly within the
discretion of the Holder of the Common Securities);

 

(c)           the redemption of all of the
Preferred Securities in connection with the payment at maturity or redemption
of all the Notes; and

 

(d)           the entry of an order for dissolution
of the Trust by a court of competent jurisdiction.

 

SECTION 9.3.  Termination.

 

The respective obligations and responsibilities of the
Trustees and the Trust shall terminate upon the latest to occur of the
following: (a) the distribution by the Property Trustee to Holders of all
amounts required to be distributed hereunder upon the liquidation of the Trust
pursuant to Section 9.4, or upon the redemption of all of the Trust
Securities pursuant to Section 4.2; (b) the satisfaction of
any expenses owed by the Trust; and (c) the discharge of all
administrative duties of the Administrative Trustees, including the performance
of any tax reporting obligations with respect to the Trust or the Holders.  As soon as possible thereafter, and after
satisfaction of liabilities to creditors of the Trust as required by applicable
law, including Section 3808 of the Delaware Statutory Trust Act, the
Delaware Trustee, when notified in writing of the completion of the winding up
of the Trust in accordance with the Delaware Statutory Trust Act, shall
terminate the Trust by filing, at the expense of the Depositor, a certificate
of cancellation with the Secretary of State of the State of Delaware.

 

SECTION 9.4.  Liquidation.

 

(a)           If an Early Termination Event
specified in Section 9.2(a), (b) or (d) occurs
or upon the Expiration Date, the Trust shall be liquidated by the Property
Trustee as expeditiously as the Property Trustee shall determine to be possible
by distributing, after satisfaction of liabilities to creditors of the Trust as
provided by applicable law, to each Holder a Like Amount of Notes, subject to Section 9.4(d).
Notice of liquidation shall be given by the Property Trustee not less than
thirty (30) nor more than sixty (60) days prior to the Liquidation Date to each
Holder of Trust Securities at such Holder’s address appearing in the Securities
Register. All such notices of liquidation shall:

 

(i)            state the Liquidation Date;

 

(ii)           state that from and after the
Liquidation Date, the Trust Securities will no longer be deemed to be
Outstanding and (subject to Section 9.4(d)) any Securities

 

F-53

 

Certificates not surrendered for exchange will be
deemed to represent a Like Amount of Notes; and

 

(iii)          provide such information with respect
to the mechanics by which Holders may exchange Securities Certificates for
Notes, or if Section 9.4(d) applies, receive a Liquidation
Distribution, as the Property Trustee shall deem appropriate.

 

(b)           Except where Section 9.2(c) or
Section 9.4(d) applies, in order to effect the liquidation of
the Trust and distribution of the Notes to Holders, the Property Trustee,
either itself acting as exchange agent or through the appointment of a separate
exchange agent, shall establish a record date for such distribution (which
shall not be more than forty five (45) days prior to the Liquidation Date nor
prior to the date on which notice of such liquidation is given to the Holders)
and establish such procedures as it shall deem appropriate to effect the
distribution of Notes in exchange for the Outstanding Securities Certificates.

 

(c)           Except where Section 9.2(c) or
Section 9.4(d) applies, after the Liquidation Date, (i) the
Trust Securities will no longer be deemed to be Outstanding, (ii) certificates
representing a Like Amount of Notes will be issued to Holders of Securities
Certificates, upon surrender of such Certificates to the exchange agent for
exchange, (iii) the Depositor shall use its best efforts to have the Notes
listed on the New York Stock Exchange or on such other exchange, interdealer
quotation system or self-regulatory organization on which the Preferred
Securities are then listed, if any, (iv) Securities Certificates not so
surrendered for exchange will be deemed to represent a Like Amount of Notes
bearing accrued and unpaid interest in an amount equal to the accumulated and
unpaid Distributions on such Securities Certificates until such certificates
are so surrendered (and until such certificates are so surrendered, no payments
of interest or principal will be made to Holders of Securities Certificates
with respect to such Notes) and (v) all rights of Holders holding Trust
Securities will cease, except the right of such Holders to receive Notes upon
surrender of Securities Certificates.

 

(d)           Notwithstanding the other provisions
of this Section 9.4, if distribution of the Notes in the manner
provided herein is determined by the Property Trustee not to be permitted or
practical, the Trust Property shall be liquidated, and the Trust shall be wound
up by the Property Trustee in such manner as the Property Trustee determines.  In such event, Holders will be entitled to
receive out of the assets of the Trust available for distribution to Holders,
after satisfaction of liabilities to creditors of the Trust as provided by
applicable law, an amount equal to the Liquidation Amount per Trust Security plus
accumulated and unpaid Distributions thereon to the date of payment (such
amount being the “Liquidation
Distribution”). If, upon any such winding up the Liquidation
Distribution can be paid only in part because the Trust has insufficient assets
available to pay in full the aggregate Liquidation Distribution, then, subject
to the next succeeding sentence, the amounts payable by the Trust on the Trust
Securities shall be paid on a pro rata
basis (based upon Liquidation Amounts). The Holder of the Common Securities
will be entitled to receive Liquidation Distributions upon any such winding up pro rata (based upon Liquidation
Amounts) with Holders of all Trust Securities, except that, if an Event of
Default has occurred and is continuing, the Preferred Securities shall have a
priority over the Common Securities as provided in Section 4.3.

 

F-54

 

SECTION 9.5.  Mergers, Consolidations,
Amalgamations or Replacements of Trust.

 

The Trust may not merge with or into, consolidate,
amalgamate, or be replaced by, or convey, transfer or lease its properties and
assets substantially as an entirety to, any Person except pursuant to this Article IX.
At the request of the Holders of the Common Securities, without the consent of
the Holders of the Preferred Securities, the Trust may merge with or into,
consolidate, amalgamate, or be replaced by or convey, transfer or lease its
properties and assets substantially as an entirety to a trust organized as such
under the laws of any State; provided
that:

 

(a)           such successor entity either (i) expressly
assumes all of the obligations of the Trust under this Trust Agreement with
respect to the Preferred Securities or (ii) substitutes for the Preferred
Securities other securities having substantially the same terms as the
Preferred Securities (such other Securities, the “Successor Securities”) so long as the Successor Securities have
the same priority as the Preferred Securities with respect to distributions and
payments upon liquidation, redemption and otherwise;

 

(b)           a trustee of such successor entity
possessing substantially the same powers and duties as the Property Trustee is
appointed to hold the Notes;

 

(c)           the Preferred Securities are listed,
or any Successor Securities will be listed upon notice of issuance, on any
national securities exchange or interdealer quotation system on which the
Preferred Securities are then listed, if any;

 

(d)           such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease does not adversely
affect the rights, preferences and privileges of the Holders of the Preferred
Securities (including any Successor Securities) in any material respect;

 

(e)           such successor entity has a purpose
substantially identical to that of the Trust;

 

(f)            prior to such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease, the Depositor has
received an Opinion of Counsel to the effect that (i) such merger,
consolidation, amalgamation, replacement, conveyance, transfer or lease does
not adversely affect the rights, preferences and privileges of the Holders of
the Preferred Securities (including any Successor Securities) in any material
respect; (ii) following such merger, consolidation, amalgamation,
replacement, conveyance, transfer or lease, neither the Trust nor such
successor entity will be required to register as an “investment company” under
the Investment Company Act and (iii) following such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease, the Trust (or the
successor entity) will continue to be classified as a grantor trust for U.S.
federal income tax purposes; and

 

(g)           the Depositor or its permitted
transferee owns all of the common securities of such successor entity.

 

Notwithstanding the foregoing, the Trust shall not,
except with the consent of Holders of all of the Preferred Securities,
consolidate, amalgamate, merge with or into, or be replaced by or

 

F-55

 

convey, transfer or lease its properties and assets
substantially as an entirety to any other Person or permit any other entity to
consolidate, amalgamate, merge with or into, or replace, the Trust if such
consolidation, amalgamation, merger, replacement, conveyance, transfer or lease
would cause the Trust or the successor entity to be taxable as a corporation or
classified as other than a grantor trust for U.S. federal income tax purposes
or cause the Notes to be treated as other than indebtedness of the Depositor
for U.S. federal income tax purposes.

 

ARTICLE X

MISCELLANEOUS PROVISIONS

 

SECTION 10.1.  Limitation of Rights of Holders.

 

Except as set forth in Section 9.2, the
death, bankruptcy, termination, dissolution or incapacity of any Person having
an interest, beneficial or otherwise, in Trust Securities shall not operate to
terminate this Trust Agreement, nor annul, dissolve or terminate the Trust nor
entitle the legal representatives or heirs of such Person or any Holder for
such Person, to claim an accounting, take any action or bring any proceeding in
any court for a partition or winding up of the arrangements contemplated
hereby, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

 

SECTION 10.2.  Agreed Tax Treatment of Trust
and Trust Securities.

 

The parties hereto and, by its acceptance or
acquisition of a Trust Security or a beneficial interest therein, the Holder
of, and any Person that acquires a beneficial interest in, such Trust Security
intend and agree to treat the Trust as a grantor trust for United States
federal, state and local tax purposes, and to treat the Trust Securities
(including all payments and proceeds with respect to such Trust Securities) as
undivided beneficial ownership interests in the Trust Property (and payments
and proceeds therefrom, respectively) for United States federal, state and
local tax purposes and to treat the Notes as indebtedness of the Depositor for
United States federal, state and local tax purposes.  The provisions of this Trust Agreement shall
be interpreted to further this intention and agreement of the parties.

 

SECTION 10.3.  Amendment.

 

(a)           This Trust Agreement may be amended
from time to time by the Property Trustee, the Administrative Trustees and the
Holder of all the Common Securities, without the consent of any Holder of the
Preferred Securities, (i) to cure any ambiguity, correct or supplement any
provision herein that may be defective or inconsistent with any other provision
herein, or to make or amend any other provisions with respect to matters or
questions arising under this Trust Agreement, which shall not be inconsistent
with the other provisions of this Trust Agreement, (ii) to modify,
eliminate or add to any provisions of this Trust Agreement to such extent as
shall be necessary to ensure that the Trust will neither be taxable as a
corporation nor be classified as other than a grantor trust for United States
federal income tax purposes at all times that any Trust Securities are
Outstanding or to ensure that the Notes are treated as indebtedness of the
Depositor for United States federal income tax purposes, or to ensure that the
Trust will not be required to register as an “investment company” under the
Investment

 

F-56

 

Company Act or (iii) to add to the covenants,
restrictions or obligations of the Depositor; provided
that in the case of clauses (i), (ii) or (iii), such action shall not
adversely affect in any material respect the interests of any Holder.

 

(b)           Except as provided in Section 10.3(c),
any provision of this Trust Agreement may be amended by the Property Trustee,
the Administrative Trustees and the Holder of all of the Common Securities and
with (i) the consent of Holders of at least a Majority in Liquidation
Amount of the Preferred Securities and (ii) receipt by the Trustees of an
Opinion of Counsel to the effect that such amendment or the exercise of any
power granted to the Trustees in accordance with such amendment will not cause
the Trust to be taxable as a corporation or classified as other than a grantor
trust for United States federal income tax purposes or affect the treatment of
the Notes as indebtedness of the Depositor for United States federal income tax
purposes or affect the Trust’s exemption from status (or from any requirement
to register) as an “investment company” under the Investment Company Act.  In addition to the foregoing, the
Distribution Dates, Redemption Date and Stated Maturity (as defined in the
Indenture) with respect to the Preferred Securities or a portion of the
Preferred Securities shall be modified in connection with any modification of
the Interest Payment Date, Redemption Date or Stated Maturity of the Junior
Subordinated Notes made by the Company and the Trust at the direction of any
holder of the Preferred Securities or a portion of the Preferred Securities as
set forth in Section 6 of the Purchase Agreements.

 

(c)           Notwithstanding any other provision
of this Trust Agreement, without the consent of each Holder, this Trust
Agreement may not be amended to (i) change the accrual rate, amount,
currency or timing of any Distribution on or the redemption price of the Trust
Securities or otherwise adversely affect the amount of any Distribution or
other payment required to be made in respect of the Trust Securities as of a
specified date, except as set forth in the last sentence of Section 10.3(b) above,
(ii) restrict or impair the right of a Holder to institute suit for the
enforcement of any such payment on or after such date, (iii) reduce the
percentage of aggregate Liquidation Amount of Outstanding Preferred Securities,
the consent of whose Holders is required for any such amendment, or the consent
of whose Holders is required for any waiver of compliance with any provision of
this Trust Agreement or of defaults hereunder and their consequences provided
for in this Trust Agreement; (iv) impair or adversely affect the rights
and interests of the Holders in the Trust Property, or permit the creation of
any Lien on any portion of the Trust Property; or (v) modify the
definition of “Outstanding,” this Section 10.3(c), Section 4.1,
Section 4.2, Section 4.3, Section 6.10(e) or
Article IX.

 

(d)           Notwithstanding any other provision
of this Trust Agreement, no Trustee shall enter into or consent to any
amendment to this Trust Agreement that would cause the Trust to be taxable as a
corporation or to be classified as other than a grantor trust for United States
federal income tax purposes or that would cause the Notes to fail or cease to
be treated as indebtedness of the Depositor for United States federal income
tax purposes or that would cause the Trust to fail or cease to qualify for the
exemption from status (or from any requirement to register) as an “investment
company” under the Investment Company Act.

 

(e)           If any amendment to this Trust
Agreement is made, the Administrative Trustees or the Property Trustee shall
promptly provide to the Depositor and the Note Trustee a copy of such
amendment.

 

F-57

 

(f)            No Trustee shall be required to
enter into any amendment to this Trust Agreement that affects its own rights,
duties or immunities under this Trust Agreement. The Trustees shall be entitled
to receive an Opinion of Counsel and an Officers’ Certificate stating that any
amendment to this Trust Agreement is in compliance with this Trust Agreement
and all conditions precedent herein provided for relating to such action have
been met.

 

(g)           No amendment or modification to this Trust
Agreement that adversely affects in any material respect the rights, duties,
liabilities, indemnities or immunities of the Delaware Trustee hereunder shall
be permitted without the prior written consent of the Delaware Trustee.

 

SECTION 10.4.  Separability.

 

If any provision in this Trust Agreement or in the
Securities Certificates shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby, and there shall be deemed substituted
for the provision at issue a valid, legal and enforceable provision as similar
as possible to the provision at issue.

 

SECTION 10.5.  Governing Law.

 

THIS TRUST AGREEMENT AND THE RIGHTS
AND OBLIGATIONS OF EACH OF THE HOLDERS, THE TRUST, THE DEPOSITOR AND THE
TRUSTEES WITH RESPECT TO THIS TRUST AGREEMENT AND THE TRUST SECURITIES SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE
OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICTS OF LAWS PROVISIONS.

 

SECTION 10.6.  Successors.

 

This Trust Agreement shall be binding upon and shall
inure to the benefit of any successor to the Depositor, the Trust and any
Trustee, including any successor by operation of law. Except in connection with
a transaction involving the Depositor that is permitted under Article VIII
of the Indenture and pursuant to which the assignee agrees in writing to
perform the Depositor’s obligations hereunder, the Depositor shall not assign
its obligations hereunder.

 

SECTION 10.7.  Headings.

 

The Article and Section headings are for
convenience only and shall not affect the construction of this Trust Agreement

 

SECTION 10.8.  Reports, Notices and Demands.

 

(a)           Any report, notice, demand or other
communication that by any provision of this Trust Agreement is required or
permitted to be given or served to or upon any Holder or the Depositor may be
given or served in writing delivered in person, or by reputable, overnight
courier, by telecopy or by deposit thereof, first-class postage prepaid, in the
United States mail, addressed, (a) in the case of a Holder of Preferred
Securities, to such Holder as such Holder’s name and address may appear on the
Securities Register; and (b) in the case of the Holder of all

 

F-58

 

the Common Securities or the Depositor, to GKK Capital
LP, 420 Lexington Avenue, New York, NY 10170, Attention:  Gregory F. Hughes, with a copy to Clifford
Chance US LLP, 31 West 52nd Street, New York, NY 10019,
Attention:  Larry P. Medvinsky, or to
such other address as may be specified in a written notice by the Holder of all
the Common Securities or the Depositor, as the case may be, to the Property
Trustee. Such report, notice, demand or other communication to or upon a Holder
or the Depositor shall be deemed to have been given when received in person,
within one (1) Business Day following delivery by overnight courier, when
telecopied with receipt confirmed, or within three (3) Business Days
following delivery by mail, except that if a notice or other document is
refused delivery or cannot be delivered because of a changed address of which
no notice was given, such notice or other document shall be deemed to have been
delivered on the date of such refusal or inability to deliver.

 

(b)           Any notice, demand or other
communication that by any provision of this Trust Agreement is required or
permitted to be given or served to or upon the Property Trustee, the Delaware
Trustee, the Administrative Trustees or the Trust shall be given in writing by
deposit thereof, first-class postage prepaid, in the U.S. mail, personal
delivery or facsimile transmission, addressed to such Person as follows: (i) with
respect to the Property Trustee to JPMorgan Chase Bank, National Association,
600 Travis, 50th Floor, Houston, Texas 77002, Attention: Worldwide
Securities Services—Gramercy Capital Trust III, 
facsimile no. (713) 216-2101, (ii) with respect to the Delaware
Trustee, to Chase Bank USA, National Association, c/o JPMorgan Chase Bank,
National Association, 500 Stanton Christiana Road, Building 4 (3rd Floor),
Newark, Delaware 19713, Attention: Worldwide Securities Services—Gramercy
Capital Trust III, facsimile no. (302) 552-6280; (iii) with respect to the
Administrative Trustees, to them at the address above for notices to the
Depositor, marked “Attention: Administrative Trustees of Gramercy Capital Trust
III”, and (iv) with respect to the Trust, to its principal executive
office specified in Section 2.2, with a copy to the Property
Trustee. Such notice, demand or other communication to or upon the Trust, the
Property Trustee or the Administrative Trustees shall be deemed to have been
sufficiently given or made only upon actual receipt of the writing by the
Trust, the Property Trustee or the Administrative Trustees.

 

SECTION 10.9.  Agreement Not to Petition.

 

Each of the Trustees and the Depositor agree for the
benefit of the Holders that, until at least one year and one day after the
Trust has been terminated in accordance with Article IX, they shall
not file, or join in the filing of, a petition against the Trust under any
Bankruptcy Law or otherwise join in the commencement of any proceeding against
the Trust under any Bankruptcy Law. If the Depositor takes action in violation
of this Section 10.9, the Property Trustee agrees, for the benefit
of Holders, that at the expense of the Depositor, it shall file an answer with
the applicable bankruptcy court or otherwise properly contest the filing of
such petition by the Depositor against the Trust or the commencement of such
action and raise the defense that the Depositor has agreed in writing not to
take such action and should be estopped and precluded therefrom and such other
defenses, if any, as counsel for the Property Trustee or the Trust may assert.

 

F-59

 

SECTION 10.10.  Counterparts. This instrument may be executed in
any number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

 

[REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK]

 

F-60

 

IN WITNESS WHEREOF, the parties hereto have executed
this Amended and Restated Trust Agreement as of the day and year first above
written.

 

	
   

  	
  GKK CAPITAL LP, as Depositor By:

  
	
   

  	
   

  
	
   

  	
  GRAMERCY CAPITAL CORP., its
  general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Name: Marc
  Holliday

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:
  President & Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  JPMORGAN CHASE BANK, NATIONAL

  	
  CHASE BANK USA, NATIONAL ASSOCIATION, as

  
	
  ASSOCIATION, as Property Trustee

  	
  Delaware Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Administrative
  Trustee

  	
   

  	
  Administrative
  Trustee

  
	
  Name: Marc
  Holliday

  	
   

  	
  Name: Gregory F.
  Hughes

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Administrative
  Trustee

  	
   

  
	
  Name: Hugh Hall

  	
   

  

 

A-1

 

Exhibit A

 

CERTIFICATE OF TRUST

 

OF

 

GRAMERCY CAPITAL TRUST III

 

This Certificate of Trust of Gramercy Capital Trust III
(the “Trust”)
is being duly executed and filed on behalf of the Trust by the undersigned, as
trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del.
C. §3801 et  seq.) (the “Act”).

 

1              Name.  The name of the statutory trust formed by
this Certificate of Trust is: Gramercy Capital Trust III.

 

2              Delaware
Trustee.  The name and business
address of the trustee of the Trust with its principal place of business in the
State of Delaware are Chase Bank USA, National Association c/o JPMorgan Chase
Bank, National Association, 500 Stanton Christiana Road, Building 4 (3rd Floor), Newark, Delaware
19713, Attention: Worldwide Securities Services.

 

3              Effective
Date. This Certificate of Trust shall be effective upon its filing with the
Secretary of State of the State of Delaware.

 

IN WITNESS WHEREOF, the undersigned trustee has duly
executed this Certificate of Trust in accordance with Section 3811(a)(1) of
the Act.

 

	
   

  	
  CHASE BANK USA, NATIONAL ASSOCIATION, not in

  its individual capacity, but solely as Delaware

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

A-1

 

Exhibit B

 

[FORM OF
COMMON SECURITIES CERTIFICATE]

 

THIS
COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS
AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN EXEMPTION FROM REGISTRATION. 
THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH
APPLICABLE LAW AND SECTION 5.11 OF THE TRUST AGREEMENT

 

	
  Certificate Number

  	
   

  	
  Number of Common Securities

  
	
   

  	
   

  	
   

  
	
  C-1

  	
   

  	
  1,550

  

 

Certificate
Evidencing Common Securities

 

of

 

GRAMERCY CAPITAL TRUST III

 

Floating
Rate Common Securities

 

(liquidation
amount $1,000 per Common Security)

 

Gramercy Capital Trust III,
a statutory trust created under the laws of the State of Delaware (the “Trust”),
hereby certifies that GKK Capital LP,
a Delaware limited partnership (the “Holder”) is the registered owner of
1,550 common securities of the Trust representing undivided common beneficial
interests in the assets of the Trust and designated the Gramercy Capital Trust III
Floating Rate Common Securities (liquidation amount $1,000 per Common Security)
(the “Common
Securities”). Except in accordance with Section 5.11
of the Trust Agreement (as defined below), the Common Securities are not
transferable and, to the fullest extent permitted by law, any attempted
transfer hereof other than in accordance therewith shall be void. The
designations, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities are set forth in, and this certificate and
the Common Securities represented hereby are issued and shall in all respects
be subject to the terms and provisions of, the Amended and Restated Trust
Agreement of the Trust, dated as of January 27, 2006 as the same may be
amended from time to time (the “Trust Agreement”), among GKK
Capital LP, as Depositor,
JPMorgan Chase Bank, National Association, as Property Trustee, Chase Bank USA,
National Association, as Delaware Trustee, the Administrative Trustees named
therein and the Holders, from time to time, of Trust Securities. The Trust will
furnish a copy of the Trust Agreement to the Holder without charge upon written
request to the Trust at its principal place of business or registered office.

 

Upon receipt of this
certificate, the Holder is bound by the Trust Agreement and is entitled to the
benefits thereunder.

 

B-1

 

This Common Securities
Certificate shall be governed by and construed in accordance with the laws of
the State of Delaware.

 

Terms used but not
defined herein have the meanings set forth in the Trust Agreement.

 

IN WITNESS WHEREOF, one
of the Administrative Trustees of the Trust has executed on behalf of the Trust
this certificate this     day of                         ,
200     .

 

	
   

  	
  GRAMERCY CAPITAL TRUST III

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Marc
  Holliday

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Administrative
  Trustee

  

 

F-2

 

Exhibit C

 

[FORM OF
PREFERRED SECURITIES CERTIFICATE]

 

“[IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS
PREFERRED SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE TRUST
AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS PREFERRED SECURITY
IS EXCHANGEABLE FOR PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE TRUST AGREEMENT, AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A
TRANSFER OF THIS PREFERRED SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY
A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED
EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS PREFERRED
SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO GRAMERCY
CAPITAL TRUST III OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

 

THE PREFERRED SECURITIES
REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND SUCH PREFERRED
SECURITIES OR ANY INTEREST THEREIN MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM.  EACH PURCHASER OF ANY
PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED
SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

 

THE HOLDER OF THE
PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF
THE TRUST AND THE DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES MAY BE
OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST OR (II) TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS
DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS
AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY PREFERRED
SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

C-1

 

THE PREFERRED SECURITIES
WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE
LIQUIDATION AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT PERMITTED
BY LAW, ANY ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY INTEREST THEREIN,
IN A BLOCK HAVING AN AGGREGATE LIQUIDATION AMOUNT OF LESS THAN $100,000 AND
MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO
LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH
PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH PREFERRED
SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
PRINCIPAL OF OR INTEREST ON SUCH PREFERRED SECURITIES, OR ANY INTEREST THEREIN,
AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN
SUCH PREFERRED SECURITIES.

 

THE HOLDER OF THIS
SECURITY, OR ANY INTEREST THEREIN,  BY
ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT
IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE
UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN
THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE
OR HOLD THIS PREFERRED SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR
HOLDER OF THE PREFERRED SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO
HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE
BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN
TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON
ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR
ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE.

 

F-2

 

	
  Certificate
  Number

  	
  Aggregate Liquidation Amount

  
	
   

  	
  Preferred Securities

  

 

 

Certificate Evidencing Preferred
Securities

 

of

 

GRAMERCY
CAPITAL TRUST III

 

Floating Rate Preferred Securities

(liquidation amount $1,000 per Preferred Security)

 

Gramercy Capital Trust III,
a statutory trust created under the laws of the State of Delaware (the “Trust”), hereby certifies that                     ,
a                   (the
“Holder”) is the registered
owner of [ ] Preferred Securities [if
the Preferred Security is a Global Security, then insert – or such other
number of Preferred Securities represented hereby as may be set forth in the
records of the Securities Registrar hereinafter referred to in accordance with
the Trust Agreement (as defined below)] of the Trust representing an undivided
preferred beneficial interest in the assets of the Trust and designated the
Gramercy Capital Trust III Floating Rate Preferred Securities, (liquidation
amount $1,000 per Preferred Security) (the “Preferred Securities”). Subject to the terms of the Trust
Agreement (as defined below), the Preferred Securities are transferable on the
books and records of the Trust, in person or by a duly authorized attorney,
upon surrender of this certificate duly endorsed and in proper form for
transfer as provided in Section 5.7 of the Trust Agreement (as
defined below). The designations, rights, privileges, restrictions, preferences
and other terms and provisions of the Preferred Securities are set forth in,
and this certificate and the Preferred Securities represented hereby are issued
and shall in all respects be subject to the terms and provisions of, the
Amended and Restated Trust Agreement of the Trust, dated as of January 27,
2006, as the same may be amended from time to time (the “Trust Agreement”), among GKK Capital LP, as Depositor, JPMorgan
Chase Bank, National Association, as Property Trustee, Chase Bank USA, National
Association, as Delaware Trustee, the Administrative Trustees named therein and
the Holders, from time to time, of Trust Securities.  The Trust will furnish a copy of the Trust
Agreement to the Holder without charge upon written request to the Property
Trustee at its Corporate Trust Office.

 

Upon receipt of this
certificate, the Holder is bound by the Trust Agreement and is entitled to the
benefits thereunder.

 

This Preferred Securities
Certificate shall be governed by and construed in accordance with the laws of
the State of Delaware.

 

C-3

 

All capitalized terms
used but not defined in this Preferred Securities Certificate are used with the
meanings specified in the Trust Agreement, including the Schedules and Exhibits
thereto.

 

IN WITNESS WHEREOF, one
of the Administrative Trustees of the Trust has executed on behalf of the Trust
this certificate this       day of                   ,
2005.

 

	
   

  	
  GRAMERCY CAPITAL TRUST III

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Administrative
  Trustee

  

 

This is one of the Preferred Securities referred to in
the within-mentioned Trust Agreement.

 

	
  Dated:

  	
  JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  not in its
  individual capacity, but solely as Property

  
	
   

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  signatory

  

 

F-4

 

[FORM OF REVERSE OF
SECURITY]

 

The Trust promises to pay Distributions from January 27,
2006, or from the most recent Distribution Date to which Distributions have
been paid or duly provided for, quarterly (subject to deferral as set forth
herein) in arrears on January 30, April 30, July 30 and October 30
of each year, commencing on April 30, 2006, at a fixed rate equal to 7.65%
per annum through the interest payment date in January 2016 and thereafter
at a variable rate equal to LIBOR plus 2.70% per annum of the Liquidation
Amount of the Preferred Securities represented by this Preferred Securities
Certificate, together with any Additional Interest Amounts, in respect to such
period.

 

Distributions on the Trust Securities shall be made by
the Paying Agent from the Payment Account and shall be payable on each
Distribution Date only to the extent that the Trust has funds then on hand and
available in the Payment Account for the payment of such Distributions.

 

In the event (and to the extent) that the Depositor
exercises its right under the Indenture to defer the payment of interest on the
Notes, Distributions on the Preferred Securities shall be deferred.

 

Under the Indenture, so long as no Note Event of
Default has occurred and is continuing and upon thirty (30) days’ prior written
notice, the Depositor shall have the right, at any time and from time to time
during the term of the Notes, to defer the payment of interest on the Notes for
a period of up to four (4) consecutive quarterly interest payment periods
(each such extended interest payment period, an “Extension Period”), during
which Extension Period no interest shall be due and payable (except any
Additional Tax Sums that may be due and payable).  No interest on the Notes shall be due and
payable during an Extension Period, except at the end thereof.  If Distributions are deferred, the deferred
Distributions shall be paid on the date that the related Extension Period
terminates to Holders (as defined in the Trust Agreement) of the Trust
Securities as they appear on the books and records of the Trust on the record
date immediately preceding such termination date.

 

Distributions on the Securities must be paid on the
dates payable (after giving effect to any Extension Period) to the extent that
the Trust has funds available for the payment of such Distributions in the
Payment Account of the Trust.  The Trust’s
funds available for Distribution to the Holders of the Preferred Securities
will be limited to payments received from the Depositor.

 

During any Event of Default or any such Extension
Period, the Depositor shall not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire or make a liquidation payment
with respect to, any of the Depositor’s limited partnership interests or (ii) make
any payment of principal of or any interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Depositor that rank pari passu in all respects with or junior
in interest to the Notes (other than (a) repurchases, redemptions or other
acquisitions of limited partnership interests of the Depositor in connection
with (1) any employment contract, benefit plan or other similar
arrangement with or for the benefit of any one or more employees, officers,
directors or consultants, (2) a dividend reinvestment or limited
partnership interests purchase

 

F-5

 

plan or
(3) the issuance of limited partnership interests of the Depositor (or
securities convertible into or exercisable for units of limited partnership
interests) as consideration in an acquisition transaction entered into prior to
the applicable Event of Default or Extension Period, (b) as a result of an
exchange or conversion of any class or series of the Depositor’s limited
partnership interests (or any capital stock or limited partnership interests of
a Subsidiary (as defined in the Indenture) of the Depositor) for any class or
series of the Depositor’s limited partnership interests or of any class or
series of the Depositor’s indebtedness for any class or series of the Depositor’s
limited partnership interests, (c) the purchase of fractional interests in
shares of the Depositor’s limited partnership interests pursuant to the
conversion or exchange provisions of such limited partnership interests or the
security being converted or exchanged, (d) any declaration of a dividend
in connection with any Rights Plan (as defined in the Indenture), the issuance
of rights, limited partnership interests or other property under any Rights
Plan, or the redemption or repurchase of rights pursuant thereto or (e) any
dividend in the form of limited partnership interests, warrants, options or
other rights where the dividend limited partnership interests or the limited
partnership interests issuable upon exercise of such warrants, options or other
rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such limited
partnership interests).

 

On each Note Redemption Date, on the stated maturity
(or any date of principal repayment upon early maturity) of the Notes and on
each other date on (or in respect of) which any principal on the Notes is
repaid, the Trust will be required to redeem a Like Amount of Trust Securities
at the Redemption Price.  Under the
Indenture, the Notes may be redeemed by the Depositor on any Interest Payment
Date, at the Depositor’s option, on or after January 30, 2011 in whole or
in part from time to time at the Optional Note Redemption Price of the
principal amount thereof or the redeemed portion thereof, as applicable,
together, in the case of any such redemption, with accrued interest, including
any Additional Interest, to but excluding the date fixed for redemption.  The Notes may also be redeemed by the
Depositor, at its option, at any time, in whole but not in part, upon the
occurrence of an Investment Company Event or a Tax Event at the Special Note
Redemption Price; provided that
such Investment Company Event or a Tax Event is continuing on the Redemption
Date.

 

The Trust Securities redeemed on each Redemption Date
shall be redeemed at the Redemption Price with the proceeds from the contemporaneous
redemption or payment at maturity of Notes. Redemptions of the Trust Securities
(or portion thereof) shall be made and the Redemption Price shall be payable on
each Redemption Date only to the extent that the Trust has funds then on hand and
available in the Payment Account for the payment of such Redemption Price.

 

Payments of Distributions (including any Additional
Interest Amounts), the Redemption Price, Liquidation Amount or any other
amounts in respect of the Preferred Securities shall be made by wire transfer
at such place and to such account at a banking institution in the United States
as may be designated in writing at least ten (10) Business Days prior to
the date for payment by the Person entitled thereto unless proper written transfer
instructions have not been received by the relevant record date, in which case
such payments shall be made by check mailed to the address of such Person as
such address shall appear in the Security Register.  If any Preferred Securities are held by a Depositary,
such Distributions shall be made to the Depositary in immediately available
funds.

 

F-6

 

The indebtedness evidenced by the Notes is, to the
extent provided in the Indenture, subordinate and junior in right of payment to
the prior payment in full of all Senior Debt (as defined in the Indenture), and
this Security is issued subject to the provisions of the Indenture with respect
thereto.

 

F-7

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the
undersigned assigns and transfers this Preferred Securities Certificate to:

 

 

(Insert assignee’s social security or tax identification number)

 

 

(Insert
address and zip code of                                                                                                 
assignee) and irrevocably appoints agent to transfer this Preferred Securities
Certificate on the books of the Trust. The agent may substitute another to act
for him or her.

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  	
  (Sign exactly as
  your name appears on the other side of this Preferred Securities Certificate)

  
						

 

 

The signature(s) should be guaranteed by an eligible
guarantor institution (banks, stockbrokers, savings and loan associations and
credit unions with membership in an approved signature guarantee medallion
program), pursuant to S.E.C. Rule 17Ad-15.

 

F-8

 

Exhibit D

 

Junior Subordinated Indenture

 

D-1

 

Exhibit E

 

Form of
Transferee Certificate

to be Executed by Transferees

 

                         ,
[ ]

 

JPMorgan Chase Bank,
National Association 

600 Travis, 50th Floor 

Houston, Texas 77002 

Attention:  Worldwide Securities Services

 

GKK Capital LP 

Gramercy Capital Trust III

420 Lexington Avenue 

New York, NY 10170

 

Re:                               Purchase
of $                         stated
liquidation amount of Floating Rate

Preferred Securities (the “Preferred Securities”) of Gramercy Capital Trust III

 

Ladies and Gentlemen:

 

In
connection with our purchase of the Preferred Securities we confirm that:

 

1              We understand that the Floating
Rate Preferred Securities (the “Preferred Securities”) of Gramercy Capital
Trust III (the “Trust”) of GKK Capital LP (the “Company”) executed in
connection therewith) and the Floating Rate Junior Subordinated Notes due 2036
of the Company (the “Subordinated Notes”) (the entire amount of the Trust’s
outstanding Preferred Securities and the Subordinated Notes together being
referred to herein as the “Offered Securities”), have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”), and may not be
offered or sold except as permitted in the following sentence. We agree on our
own behalf and on behalf of any investor account for which we are purchasing
the Offered Securities that, if we decide to offer, sell or otherwise transfer
any such Offered Securities, (i) such offer, sale or transfer will be made
only (a) to the Trust, (b) to a person we reasonably believe is a “qualified
purchaser” (a “QP”) (as defined in Section 2(a)(51) of the Investment
Company Act of 1940, as amended). We understand that the certificates for any
Offered Security that we receive will bear a legend substantially to the effect
of the foregoing.

 

2              We are a “qualified purchaser”
within the meaning of section 2(a)(51) of the Investment Company Act of
1940, as amended, and are purchasing for our own account or for the account of
such a “qualified purchaser,” and we have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Offered Securities, and we and any account for
which we are acting are each able to bear the economic risks of our or its
investment.

 

E-1

 

3              We are acquiring the Offered
Securities purchased by us for our own account (or for one or more accounts as
to each of which we exercise sole investment discretion and have authority to
make, and do make, the statements contained in this letter) and not with a view
to any distribution of the Offered Securities, subject, nevertheless, to the
understanding that the disposition of our property will at all times be and
remain within our control.

 

4              In the event that we purchase any
Preferred Securities or any Subordinated Notes, we will acquire such Preferred
Securities having an aggregate stated liquidation amount of not less than
$100,000 or such Subordinated Notes having an aggregate principal amount not
less than $100,000, for our own account and for each separate account for which
we are acting.

 

5              We acknowledge that we are not a
fiduciary of (i) an employee benefit, individual retirement account or
other plan or arrangement subject to Title I of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), or section 4975 of the
Internal Revenue Code of 1986, as amended (the “Code”) (each a “Plan”); or (ii) an
entity whose underlying assets include “plan assets” by reason of any Plan’s
investment in the entity, and are not purchasing any of the Offered Securities
on behalf of or with “plan assets” by reason of any Plan’s investment in the
entity.

 

6              We acknowledge that the Trust and
the Company and others will rely upon the truth and accuracy of the foregoing
acknowledgments, representations, warranties and agreements and agree that if
any of the acknowledgments, representations, warranties and agreements deemed
to have been made by our purchase of any of the Offered Securities are no
longer accurate, we shall promptly notify the Company.  If we are acquiring any Offered Securities as
a fiduciary or agent for one or more investor accounts, we represent that we
have sole discretion with respect to each such investor account and that we have
full power to make the foregoing acknowledgments, representations and agreement
on behalf of each such investor account.

 

	
   

  	
  (Name of
  Purchaser)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
					

 

Upon
transfer, the Preferred Securities (having a stated liquidation amount of $                        )
would be registered in the name of the new beneficial owner as follows.

 

	
  Name:

  
	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  
	
  Taxpayer ID
  Number:

  	
   

  	
   

  
				

 

F-2

 

Exhibit F

 

Officer’s Financial Certificate

 

The
undersigned, the [Chairman/Vice Chairman/Chief Executive Officer/President/Vice
President/Chief Financial Officer/Treasurer/Assistant Treasurer], hereby
certifies pursuant to Section 8.16(b) of the Amended and Restated
Trust Agreement, dated as of January 27, 2006 (the “Trust Agreement”),
among GKK Capital LP (the “Company”), JPMorgan Chase Bank, National
Association, as property trustee, Chase Bank USA, National Association, as
Delaware trustee, and the administrative trustees named therein, that, as of
[date], [20   ], the Company had the following ratios and
balances:

 

As of [Quarterly/Annual
Financial Date], 20   

 

	
  Senior secured
  indebtedness for borrowed money (“Debt”)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Senior unsecured
  Debt

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Subordinated
  Debt

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Debt

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ratio of (x)
  senior secured and unsecured Debt to (y) total Debt

  	
   

  	
   

  	
  %

  

 

 

[FOR FISCAL YEAR END:
Attached hereto are the audited consolidated financial statements (including
the balance sheet, income statement and statement of cash flows, and notes
thereto, together with the report of the independent accountants thereon) of
the Company and its consolidated subsidiaries for the three years ended                ,
20     ].]

 

[FOR FISCAL QUARTER END:
Attached hereto are the unaudited consolidated and consolidating financial
statements (including the balance sheet and income statement) of the Company
and its consolidated subsidiaries for the fiscal quarter ended [date], 20   .]

 

The financial statements
fairly present in all material respects, in accordance with U.S. generally
accepted accounting principles (“GAAP”), the financial position of the Company
and its consolidated subsidiaries, and the results of operations and changes in
financial condition as of the date, and for the [quarter] [annual] period ended [date], 20   , and such financial statements
have been prepared in accordance with GAAP consistently applied throughout the
period involved (expect as otherwise noted therein).

 

IN WITNESS WHEREOF, the undersigned has executed this
Officer’s Financial Certificate as of this         day
of                               ,
20   .

 

F-1

 

	
   

  	
  GKK
  CAPITAL LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GKK
  Capital LP

  
	
   

  	
  420 Lexington
  Avenue New York, NY 10170

  
	
   

  	
  (212) 297-1000

  
					

 

F-2

 

DETERMINATION OF LIBOR

 

With respect to the Trust Securities, the London
interbank offered rate (“LIBOR”)
shall be determined by the Calculation Agent in accordance with the following
provisions (in each case rounded to the nearest .000001%):

 

(1)           On
the second LIBOR Business Day (as defined below) prior to a Distribution Date
after the expiration of the Fixed Rate Period (each such day, a “LIBOR
Determination Date”), LIBOR for any given security shall for the
following interest payment period equal the rate, as obtained by the
Calculation Agent from Bloomberg Financial Markets Commodities News, for
three-month Eurodollar deposits that appears on Dow Jones Telerate Page 3750
(as defined in the International Swaps and Derivatives Association, Inc.
2000 Interest Rate and Currency Exchange Definitions), or such other page as
may replace such Page 3750, as of 11:00 a.m. (London time) on such
LIBOR Determination Date.

 

(2)           If,
on any LIBOR Determination Date, such rate does not appear on Dow Jones
Telerate Page 3750 or such other page as may replace such Page 3750,
the Calculation Agent shall determine the arithmetic mean of the offered
quotations of the Reference Banks (as defined below) to leading banks in the
London interbank market for three-month Eurodollar deposits in an amount
determined by the Calculation Agent by reference to requests for quotations as
of approximately 11:00 a.m. (London time) on the LIBOR Determination Date
made by the Calculation Agent to the Reference Banks.  If, on any LIBOR Determination Date, at least
two of the Reference Banks provide such quotations, LIBOR shall equal such
arithmetic mean of such quotations.  If,
on any LIBOR Determination Date, only one or none of the Reference Banks
provide such quotations, LIBOR shall be deemed to be the arithmetic mean of the
offered quotations that leading banks in the City of New York selected by the
Calculation Agent are quoting on the relevant LIBOR Determination Date for
three-month Eurodollar deposits in an amount determined by the Calculation Agent
by reference to the principal London offices of leading banks in the London
interbank market; provided that
if the Calculation Agent is required but is unable to determine a rate in
accordance with at least one of the procedures provided above, LIBOR shall be
LIBOR as determined on the previous LIBOR Determination Date.

 

(3)           As
used herein: “Reference Banks” means four major
banks in the London interbank market selected by the Calculation Agent; and “LIBOR
Business Day” means a day on which commercial banks are open
for business (including dealings in foreign exchange and foreign currency
deposits) in London.Exhibit 10.25

 

JUNIOR SUBORDINATED INDENTURE

 

between

 

 

GKK CAPITAL LP

 

 

and

 

 

JPMORGAN CHASE
BANK, NATIONAL ASSOCIATION,

as
Trustee

 

 

Dated as of January
27, 2006

 

 

JUNIOR SUBORDINATED INDENTURE,
dated as of January 27, 2006, between GKK Capital LP, a Delaware limited
partnership (the “Company”),
and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a national banking
association, as Trustee (in such capacity, the “Trustee”).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company has duly authorized
the execution and delivery of this Indenture to provide for the issuance of its
unsecured junior subordinated deferrable interest notes (the “Securities”) issued to evidence loans
made to the Company of the proceeds from the issuance by Gramercy Capital Trust
III, a Delaware statutory trust (the “Trust”),
of undivided preferred beneficial interests in the assets of the Trust (the “Preferred Securities”) and undivided
common beneficial interests in the assets of the Trust (the “Common Securities” and, collectively
with the Preferred Securities, the “Trust
Securities”), and to provide the terms and conditions upon which the
Securities are to be authenticated, issued and delivered; 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, this Indenture Witnesseth:

 

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

 

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 1.1         Definitions.

 

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

 

(a)           the terms defined in this Article
I have the meanings assigned to them in this Article I;

 

(b)           the words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”;

 

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

 

(d)           unless the context otherwise
requires, any reference to an “Article” or a “Section” refers to an Article or
a Section, as the case may be, of this Indenture;

 

(e)           the words “hereby,” “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;

 

2

 

(f)            a reference to the singular includes
the plural and vice versa; and

 

(g)           the masculine, feminine or neuter
genders used herein shall include the masculine, feminine and neuter genders.

 

“Act” when used with respect to any Holder,
has the meaning specified in Section 1.4.

 

“Administrative Trustee” means, with respect to the Trust, each
Person identified as an “Administrative Trustee” in the Trust Agreement, solely
in its capacity as Administrative Trustee of the Trust under the Trust
Agreement and not in its individual capacity, or its successor in interest in
such capacity, or any successor Administrative Trustee appointed as therein
provided.

 

“Additional Interest” means the interest,
if any, that shall accrue on any amounts payable  on the Securities, the payment of which has
not been made on the applicable Interest Payment Date and which shall accrue at
the rate per annum specified or determined as specified in such Security, in
each case to the extent legally enforceable.

 

“Additional Tax Sums” has the meaning
specified in Section 10.5.

 

“Additional Taxes” means taxes, duties or
other governmental charges imposed on the Trust as a result of a Tax Event
(which, for the sake of clarity, does not include amounts required to be
deducted or withheld by the Trust from payments made by the Trust to or for the
benefit of the Holder of, or any Person that acquires a beneficial interest in,
the Securities).

 

“Affiliate” of any specified Person means
any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person. For the purposes
of this definition, “control,” when used with respect to any specified Person,
means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Applicable Depositary Procedures” means,
with respect to any transfer or transaction involving a Global Security or
beneficial interest therein, the rules and procedures of the Depositary for
such Security, in each case to the extent applicable to such transaction and as
in effect from time to time.

 

“Authenticating Agent” means any Person
authorized by the Trustee pursuant to Section 6.11 to act on behalf of
the Trustee to authenticate the Securities.

 

“Bankruptcy Code” means Title 11 of the
United States Code or any successor statute(s) thereto, or any similar federal
or state law for the relief of debtors, in each case as amended from time to
time.

 

“Board of Directors” means the board of
directors of the Company or any duly authorized committee of that 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 any day other than (i)
a Saturday or Sunday, (ii) a day on which banking institutions in the City of
New York are authorized or required by law or executive order to remain closed
or (iii) a day on which the Corporate Trust Office of the Trustee is closed for
business.

 

“Calculation Agent” has the meaning
specified in Section 10.4.

 

“Commission” has the meaning specified in Section
7.3(c).

 

“Common Securities” has the meaning
specified in the first recital of this Indenture.

 

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

 

“Company Request” and “Company Order” mean, respectively, the
written request or order signed in the name of the Company by its Chairman of
the Board of Directors, its Vice Chairman of the Board of Directors, its Chief
Executive Officer, President or a Vice President, and by its Chief Financial
Officer, its Treasurer, an Assistant Treasurer, its Secretary or an Assistant
Secretary, and delivered to the Trustee.

 

“Corporate Trust Office” means the
principal office of the Trustee at which at any particular time its corporate
trust business shall be administered, which office at the date of this
Indenture is located at 600 Travis, 50th Floor, Houston, Texas 77019,
Attn: Worldwide Securities Services—Gramercy Capital Trust III. Initially, all notices and correspondence
shall be addressed to Mudassir Mohamed, telephone (713) 216-2826.

 

“Debt” means, with respect to any Person,
whether recourse is to all or a portion of the assets of such Person, whether
currently existing or hereafter incurred and whether or not contingent and
without duplication, (i) every obligation of such Person for money borrowed;
(ii) every obligation of such Person evidenced by bonds, debentures, notes or
other similar instruments, including obligations incurred in connection with
the acquisition of property, assets or businesses; (iii) every reimbursement
obligation of such Person with respect to letters of credit, bankers’
acceptances or similar facilities issued for the account of such Person; (iv)
every obligation of such Person issued or assumed as the deferred purchase
price of property or services (but excluding trade accounts payable or other
accrued liabilities arising in the ordinary course of business); (v) every
capital lease obligation of such Person; (vi) all indebtedness of such Person,
whether incurred on or prior to the date of this Indenture or thereafter
incurred, for claims in respect of derivative products, including interest
rate, foreign exchange rate and commodity forward contracts, options and swaps
and similar arrangements; (vii) every obligation of the type referred to in
clauses (i) through (vi) of another Person and all dividends of another Person
the payment of which, in either case, such Person has guaranteed or is
responsible or liable for, directly or indirectly, as obligor or otherwise; and
(viii) any renewals, extensions, refundings, amendments or modifications of any
obligation of the type referred to in clauses (i) through (vii).

 

 

“Defaulted Interest” has the meaning
specified in Section 3.1.

 

“Delaware Trustee” means, with respect to
the Trust, the Person identified as the “Delaware Trustee” in the Trust
Agreement, solely in its capacity as Delaware Trustee of the Trust under the
Trust Agreement and not in its individual capacity, or its successor in
interest in such capacity, or any successor Delaware Trustee appointed as
therein provided.

 

“Depositary” means an organization
registered as a clearing agency under the Exchange Act that is designated as
Depositary by the Company or any successor thereto. DTC will be the initial
Depositary.

 

“Depositary Participant” means a broker,
dealer, bank, other financial institution or other Person for whom from time to
time a Depositary effects book-entry transfers and pledges of securities
deposited with the Depositary.

 

“Distributions” means amounts payable in
respect of the Trust Securities as provided in the Trust Agreement and referred
to therein as “Distributions.”

 

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

 

“DTC” means The Depository Trust Company, a
New York corporation, or any successor thereto.

 

“EDGAR” has the meaning specified in Section
7.3(c).

 

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

 

“Exchange Act” means the Securities
Exchange Act of 1934 or any statute successor thereto, in each case as amended
from time to time.

 

“Expiration Date” has the meaning specified
in Section 1.4.

 

“Extension Period” has the meaning
specified in Section 3.9.

 

“Fixed Rate Period” shall have the meaning
in the form of Security set forth in Section 2.1.

 

“GAAP” means United States generally
accepted accounting principles, consistently applied, from time to time in
effect.

 

“Global Security” means a Security that
evidences all or part of the Securities, the ownership and transfers of which
shall be made through book entries by a Depositary.

 

“Government Obligation” means (a) any
security that is (i) a direct obligation of the United States of America of
which the full faith and credit of the United States of America is pledged or
(ii) an obligation of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America or the payment of
which is unconditionally

 

 

guaranteed as a full faith and credit obligation by the United States
of America, which, in either case (i) or (ii), is not callable or redeemable at
the option of the issuer thereof, and (b) any depositary receipt issued by a
bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with
respect to any Government Obligation that is specified in clause (a) above and
held by such bank for the account of the holder of such depositary receipt, or
with respect to any specific payment of principal of or interest on any
Government Obligation that is so specified and held, provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depositary receipt from any amount received by the custodian in respect of
the Government Obligation or the specific payment of principal or interest
evidenced by such depositary receipt.

 

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

 

“Indenture” means this instrument as
originally executed or as it may from time to time be amended or supplemented
by one or more amendments or indentures supplemental hereto entered into
pursuant to the applicable provisions hereof.

 

“Interest Payment Date” means January 30, April 30, July 30 and October 30 of each year,
commencing on April 30, 2006, during the term of this Indenture.

 

“Investment Company Act” means the
Investment Company Act of 1940 or any successor statute thereto, in each case
as amended from time to time.

 

“Investment Company Event” means the
receipt by the Company of an Opinion of Counsel experienced in such matters to
the effect that, as a result of the occurrence of a change in law or regulation
(including any announced prospective change) or a written change in
interpretation or application of law or regulation by any legislative body, court,
governmental agency or regulatory authority, there is more than an
insubstantial risk that the Trust is or, within ninety (90) days of the date of
such opinion will be, considered an “investment company” that is required to be
registered under the Investment Company Act, which change or prospective change
becomes effective or would become effective, as the case may be, on or after
the date of the issuance of the Securities.

 

“LIBOR” has the meaning specified in Schedule
A.

 

“LIBOR Business Day” has the meaning
specified in Schedule A.

 

“LIBOR Determination Date” has the meaning
specified in Schedule A.

 

“Liquidation Amount” has the meaning
specified in the Trust Agreement.

 

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

 

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

 

 

“Officers’ Certificate” means a certificate
signed by the Chairman of the Board, a Vice Chairman of the Board, the Chief
Executive Officer, the President or a Vice President, and by the Chief
Financial Officer, the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary, of the Company and delivered to the Trustee.

 

“Operative Documents” means the Trust
Agreement, the Indenture, the Purchase Agreements and the Securities.

 

“Opinion of Counsel” means a written
opinion of counsel, who may be counsel for or an employee of the Company or any
Affiliate of the Company.

 

“Optional Redemption Price” has the meaning
set forth in Section 11.1.

 

“Original Issue Date” means the date of
original issuance of each Security.

 

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

 

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

 

(ii)           Securities
for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the
Company and/or its Affiliates shall act as its own Paying Agent) for the
Holders of such Securities; provided
that, if such Securities are to be redeemed, notice of such redemption has been
duly given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made; and

 

(iii)          Securities
that have been paid or in substitution for or in lieu of which other Securities
have been authenticated and delivered pursuant to the provisions of this
Indenture, unless proof satisfactory to the Trustee is presented that any such
Securities are held by Holders in whose hands such Securities are valid,
binding and legal obligations of the Company;

 

provided
that in determining whether the Holders of the requisite principal amount of
Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or
such other obligor shall be disregarded and deemed not to be Outstanding,
unless the Company shall hold all Outstanding Securities, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities that a Responsible Officer of the Trustee actually knows to be so
owned shall be so disregarded. Securities so owned that have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction
of the Trustee the pledgee’s right so to act with respect to such Securities
and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or such other obligor.
Notwithstanding anything herein to the contrary, Securities initially issued to
the Trust that are owned by the Trust shall be deemed to be Outstanding

 

 

notwithstanding the
ownership by the Company or an Affiliate of any beneficial interest in the
Trust.

 

“Paying Agent” means the Trustee or any
Person authorized by the Company to pay the principal of or any premium or
interest on, or other amounts in respect of, any Securities on behalf of the
Company.

 

“Person” means a legal person, including
any individual, corporation, estate, partnership, joint venture, association,
joint stock company, company, limited liability company, trust, unincorporated
association or government, or any agency or political subdivision thereof, or
any other entity of whatever nature.

 

“Place of Payment” means, with respect to
the Securities, the Corporate Trust Office of the Trustee.

 

“Preferred Securities” has the meaning
specified in the first recital of this Indenture.

 

“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. For the purposes of this
definition, any security authenticated and delivered under Section 3.6
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.

 

“Proceeding” has the meaning specified in Section
12.2.

 

“Property Trustee” means the Person
identified as the “Property Trustee” in the Trust Agreement, solely in its
capacity as Property Trustee of the Trust under the Trust Agreement and not in
its individual capacity, or its successor in interest in such capacity, or any
successor Property Trustee appointed as therein provided.

 

“Purchase Agreements” means the two
agreements, each dated as of the date hereof, between the Company and the Trust
and the Purchaser(s) named therein.

 

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

 

“Redemption Price” means, when used with
respect to any Security to be redeemed, in whole or in part, the Special
Redemption Price or the Optional Redemption Price, as applicable, at which such
Security or portion thereof is to be redeemed as fixed by or pursuant to this
Indenture.

 

“Reference Banks” has the meaning specified
in Schedule A.

 

“Regular Record Date” for the interest
payable on any Interest Payment Date with respect to the Securities means the
date that is fifteen (15) days preceding such Interest Payment Date (whether or
not a Business Day).

 

“Responsible Officer” means, when used with
respect to the Trustee, the officer in the Worldwide Securities Services
department of the Trustee having direct responsibility for the

 

 

administration of this Indenture.

 

“Rights Plan” means a plan of the Company
providing for the issuance by the Company to all holders of its limited
partnership interests of rights entitling the holders thereof to subscribe for
or purchase shares of any class or series of limited partnership interests of
the Company which rights (i) are deemed to be transferred with such shares of
such limited partnership interests and (ii) are also issued in respect of
future issuances of such limited partnership interests, in each case until the
occurrence of a specified event or events.

 

“Securities” or “Security” means
any debt securities or debt security, as the case may be, authenticated and
delivered under this Indenture.

 

“Securities Act” means the Securities Act
of 1933 or any successor statute thereto, in each case as amended from time to
time.

 

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

 

“Senior Debt” means the principal of and
any premium and interest on (including interest accruing on or after the filing
of any petition in bankruptcy or for reorganization relating to the Company,
whether or not such claim for post-petition interest is allowed in such
proceeding) all Debt of the Company, whether incurred on or prior to the date
of this Indenture or thereafter incurred, unless it is provided in the
instrument creating or evidencing the same or pursuant to which the same is
outstanding, that such obligations are not superior in right of payment to the
Securities issued under this Indenture;
provided that Senior Debt
shall not be deemed to include any other debt securities (and guarantees, if
any, in respect of such debt securities) issued to any trust other than the
Trust (or a trustee of any such trust), partnership or other entity affiliated
with the Company that is a financing vehicle of the Company (a “financing
entity”) in connection with the issuance by such financing entity of equity
securities or other securities pursuant to an instrument that ranks pari passu with or junior in right of
payment to this Indenture.

 

“Special Event” means the occurrence of an
Investment Company Event or a Tax Event.

 

“Special Record Date” for the payment of
any Defaulted Interest means a date fixed by the Trustee pursuant to Section
3.1.

 

“Special Redemption Price” has the meaning
set forth in Section 11.2.

 

“Stated Maturity” means January 30, 2036.

 

“Subsidiary” means a Person more than fifty
percent (50%) of the outstanding voting stock or other voting interests of
which is owned, directly or indirectly, by the Company or by one or more other
Subsidiaries, or by the Company and one or more other Subsidiaries. For
purposes of this definition, “voting stock”
means stock that ordinarily has voting power for the election of directors,
whether at all times or only so long as no senior class of stock has such
voting power by reason of any contingency.

 

“Tax Event” means the receipt by the
Company of an Opinion of Counsel experienced in

 

 

such matters to the effect that, as a result of (a) any amendment to or
change (including any announced prospective change) in the laws or any
regulations thereunder of the United States or any political subdivision or
taxing authority thereof or therein or (b) any judicial decision or any
official administrative pronouncement (including any private letter ruling,
technical advice memorandum or field service advice) or regulatory procedure,
including any notice or announcement of intent to adopt any such pronouncement
or procedure (an “Administrative
Action”), regardless of whether such judicial decision or Administrative
Action is issued to or in connection with a proceeding involving the Company or
the Trust and whether or not subject to review or appeal, which amendment,
change, judicial decision or Administrative Action is enacted, promulgated or
announced, in each case, on or after the date of issuance of the Securities,
there is more than an insubstantial risk that (i) the Trust is, or will be
within ninety (90) days of the date of such opinion, subject to United States
federal income tax with respect to income received or accrued on the
Securities, (ii) interest payable by the Company on the Securities is not, or
within ninety (90) days of the date of such opinion, will not be, deductible by
the Company, in whole or in part, for United States federal income tax
purposes, or (iii) the Trust is, or will be within ninety (90) days of the date
of such opinion, subject to more than a de
minimis amount of other taxes, duties or other governmental charges.

 

“Trust” has the meaning specified in the
first recital of this Indenture.

 

“Trust Agreement” means the Amended and
Restated Trust Agreement executed and delivered by the Company, the Property
Trustee, Chase Bank USA, National Association, as Delaware Trustee and the Administrative
Trustees named therein, contemporaneously with the execution and delivery of
this Indenture, for the benefit of the holders of the Trust Securities, as
amended or supplemented from time to time.

 

“Trustee” means the Person named as the “Trustee” in the first paragraph of
this instrument, solely in its capacity as such and not in its individual
capacity, until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and, thereafter, “Trustee” shall mean or include each
Person who is then a Trustee hereunder.

 

“Trust Indenture Act” means the Trust
Indenture Act of 1939, as amended and as in effect on the date as of this
Indenture.

 

“Trust Securities” has the meaning
specified in the first recital of this Indenture.

 

SECTION 1.2         Compliance Certificate and
Opinions.

 

(a)           Upon any application or request by
the Company to the Trustee to take any action under any provision of this
Indenture, the Company shall, if requested by the Trustee, furnish to the
Trustee an Officers’ Certificate stating that all conditions precedent
(including covenants compliance with which constitutes a condition precedent),
if any, provided for in this Indenture relating to the proposed action have
been complied with and an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent (including covenants compliance with
which constitutes a condition precedent), if any, have been complied with.

 

 

(b)           Every certificate or opinion with
respect to compliance with a condition or covenant provided for in this
Indenture (other than the certificate provided pursuant to Section 10.3)
shall include:

 

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

 

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

 

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

 

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

 

SECTION 1.3         Forms of Documents
Delivered to Trustee.

 

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

 

(b)           Any certificate or opinion of an
officer of the Company may be based, insofar as it relates to legal matters,
upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or after reasonable inquiry should know, that the certificate or
opinion or representations with respect to matters upon which his or her
certificate or opinion is based are erroneous. Any such certificate or Opinion
of Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Company stating that the information with respect to such factual matters is in
the possession of the Company, unless such counsel knows, or after reasonable
inquiry should know, that the certificate or opinion or representations with
respect to such matters are erroneous.

 

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

 

(d)           Whenever, subsequent to the receipt
by the Trustee of any Board Resolution, Officers’ Certificate, Opinion of
Counsel or other document or instrument, a clerical, typographical or other
inadvertent or unintentional error or omission shall be discovered therein, a
new document or instrument may be substituted therefor in corrected form with
the same force and effect as if originally received in the corrected form and,
irrespective of the date or dates of the actual execution and/or delivery
thereof, such substitute document or instrument shall be deemed to have been
executed and/or delivered as of the date or dates required with respect to

 

 

the
document or instrument for which it is substituted. Without limiting the
generality of the foregoing, any Securities issued under the authority of such
defective document or instrument shall nevertheless be the valid obligations of
the Company entitled to the benefits of this Indenture equally and ratably with
all other Outstanding Securities.

 

SECTION 1.4         Acts of Holders.

 

(a)           Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given to or taken by Holders may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such Holders in
person or by an agent thereof duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such
instrument or instruments (including any appointment of an agent) is or are
delivered to the Trustee, and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such
instrument or instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this
Indenture and conclusive in favor of the Trustee and the Company, if made in
the manner provided in this Section 1.4.

 

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

 

(c)           The ownership of Securities shall be
proved by the Securities Register.

 

(d)           Any request, demand, authorization,
direction, notice, consent, waiver or other action by the Holder of any
Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done or suffered to be done
by the Trustee or the Company in reliance thereon, whether or not notation of
such action is made upon such Security.

 

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

 

(f)            Except as set forth in paragraph (g)
of this Section 1.4, the Company may set any day as a record date for
the purpose of determining the Holders of Outstanding Securities entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of 

 

 

Securities.
If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities on such record date, and no other Holders, shall be
entitled to take the relevant action, whether or not such Holders remain
Holders after such record date; provided
that no such action shall be effective hereunder unless taken on or prior to
the applicable Expiration Date (as defined in Section 1.4(h)) by Holders
of the requisite principal amount of Outstanding Securities on such record date.
Nothing in this paragraph shall be construed to prevent the Company from
setting a new record date for any action for which a record date has previously
been set pursuant to this paragraph (whereupon the record date previously set
shall automatically and with no action by any Person be canceled and of no
effect). Promptly after any record date is set pursuant to this paragraph, the
Company, at its own expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to
the Trustee in writing and to each Holder of Securities in the manner set forth
in Section 1.6.

 

(g)           The Trustee may set any day as a
record date for the purpose of determining the Holders of Outstanding
Securities entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration or rescission or annulment
thereof referred to in Section 5.2, (iii) any request to institute
proceedings referred to in Section 5.7(b) or (iv) any direction referred
to in Section 5.12. If any record date is set pursuant to this
paragraph, the Holders of Outstanding Securities on such record date, and no
other Holders, shall be entitled to join in such notice, declaration, request
or direction, whether or not such Holders remain Holders after such record
date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities on such record date. Nothing in this paragraph shall be construed to
prevent the Trustee from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be canceled and of no effect). Promptly after any record date is set pursuant
to this paragraph, the Trustee, at the Company’s expense, shall cause notice of
such record date, the proposed action by Holders and the applicable Expiration
Date to be given to the Company in writing and to each Holder of Securities in
the manner set forth in Section 1.6.

 

(h)           With respect to any record date set
pursuant to paragraph (f) or (g) of this Section 1.4, the party hereto
that sets such record date may designate any day as the “Expiration Date” and from time to time may
change the Expiration Date to any earlier or later day; provided that no such change shall be
effective unless notice of the proposed new Expiration Date is given to the
other party hereto in writing, and to each Holder of Securities in the manner
set forth in Section 1.6, on or prior to the existing Expiration Date.
If an Expiration Date is not designated with respect to any record date set
pursuant to this Section 1.4, the party hereto that set such record date
shall be deemed to have initially designated the ninetieth (90th) day after such record date as
the Expiration Date with respect thereto, subject to its right to change the
Expiration Date as provided in this paragraph. Notwithstanding the foregoing,
no Expiration Date shall be later than the one hundred eightieth (180th) day after the applicable
record date.

 

SECTION 1.5         Notices, Etc. to Trustee
and Company.

 

Any request, demand,
authorization, direction, notice, consent, waiver, Act of Holders, or other
document provided or permitted by this Indenture to be made upon, given or
furnished to,

 

 

or filed with:

 

(a)           the Trustee by any Holder, any holder
of Preferred Securities or the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with and received
by the Trustee at its Corporate Trust Office, or

 

(b)           the Company by the Trustee, any
Holder or any holder of Preferred Securities shall be sufficient for every
purpose hereunder if in writing and mailed, first class, postage prepaid, to
the Company addressed to it at 420 Lexington Avenue, New York, NY 10170,
Attention:  Gregory F. Hughes, with a
copy to Clifford Chance US LLP, 31 West 52nd Street, New York, NY 10019,
Attention:  Larry P. Medvinsky, or at any
other address previously furnished in writing to the Trustee by the Company.

 

SECTION 1.6         Notice to Holders; Waiver.

 

Where this Indenture
provides for notice to Holders of any event, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first class, postage prepaid, to each Holder affected by such event to the
address of such Holder as it appears in the Securities Register, not later than
the latest date, if any, and not earlier than the earliest date, if any,
prescribed for the giving of such notice. If, by reason of the suspension of or
irregularities in regular mail service or for any other reason, it shall be
impossible or impracticable to mail notice of any event to Holders when said
notice is required to be given pursuant to any provision of this Indenture,
then any manner of giving such notice as shall be satisfactory to the Trustee
shall be deemed to be a sufficient giving of such notice. In any case where
notice to Holders is given by mail, neither the failure to mail such notice,
nor any defect in any notice so mailed, to any particular Holder shall affect
the sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

 

SECTION 1.7         Effect of Headings and
Table of Contents.

 

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

 

SECTION 1.8         Successors and Assigns.

 

This Indenture shall be
binding upon and shall inure to the benefit of any successor to the Company and
the Trustee, including any successor by operation of law. Except in connection
with a transaction involving the Company that is permitted under Article
VIII and pursuant to which the assignee agrees in writing to perform the
Company’s obligations hereunder, the Company shall not assign its obligations
hereunder.

 

SECTION 1.9         Separability Clause.

 

If any provision in this
Indenture or in the Securities shall be invalid, illegal or

 

 

unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby, and
there shall be deemed substituted for the provision at issue a valid, legal and
enforceable provision as similar as possible to the provision at issue.

 

SECTION 1.10       Benefits of Indenture.

 

Nothing in this Indenture
or in the Securities, express or implied, shall give to any Person, other than
the parties hereto and their successors and assigns, the holders of Senior Debt,
the Holders of the Securities and, to the extent expressly provided in Section
5.2, Section 5.8, Section 5.9, Section 5.11, Section
5.13, Section 9.2 and Section 10.7, the holders of Preferred
Securities, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

 

SECTION 1.11       Governing Law.

 

This
Indenture and the rights and obligations of each of the Holders, the Company
and the Trustee shall be construed and enforced in accordance with and governed
by the laws of the State of New York without reference to its conflict of laws
provisions (other than Section 5-1401 of the General Obligations Law).

 

SECTION 1.12       Submission to Jurisdiction.

 

ANY LEGAL ACTION OR
PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING OUT OF
THIS INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF NEW
YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR
THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH OF
MANHATTAN). BY EXECUTION AND DELIVERY OF THIS INDENTURE, EACH PARTY ACCEPTS,
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR
LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS INDENTURE.

 

SECTION 1.13       Non-Business Days.

 

If any Interest Payment
Date, Redemption Date or Stated Maturity of any Security shall not be a
Business Day, then (notwithstanding any other provision of this Indenture or
the Securities) payment of interest, premium, if any, or principal or other
amounts in respect of such Security shall not be made on such date, but shall
be made on the next succeeding Business Day (and no interest shall accrue in
respect of the amounts whose payment is so delayed for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the
case may be, until such next succeeding Business Day) except that, if such
Business Day falls in the next succeeding calendar year, such payment shall be
made on the immediately preceding Business Day, in each case with the same
force and effect as if made on the Interest Payment Date or Redemption Date or
at the Stated Maturity.

 

 

ARTICLE II

SECURITY FORMS

 

SECTION 2.1         Form of Security.

 

Any Security issued
hereunder shall be in substantially the following form:

 

GKK
CAPITAL LP

 

Floating
Rate Junior Subordinated Note due 2036

 

	
  No. 

  	
   

  	
  $51,550,000

  

 

GKK Capital LP, a limited
partnership organized and existing under the laws of Delaware (hereinafter called
the “Company,” which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to JPMorgan Chase Bank, National
Association, not in its individual capacity, but solely as Property Trustee for
Gramercy Capital Trust III, or registered assigns, the principal sum of Fifty
One Million Five Hundred Fifty Thousand Dollars ($51,550,000) [if the Security is
a Global Security, then insert
— or such other principal amount represented hereby as may be set forth
in the records of the Securities Registrar hereinafter referred to in
accordance with the Indenture] on January 30, 2036. The Company
further promises to pay interest on said principal sum from January 27, 2006 or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, quarterly (subject to deferral as set forth herein) in
arrears on January 30, April 30, July 30 and October 30 of each year,
commencing April 30, 2006, or if any such day is not a Business Day, on the
next succeeding Business Day (and no interest shall accrue in respect of the
amounts whose payment is so delayed for the period from and after such Interest
Payment Date until such next succeeding Business Day), except that, if such
Business Day falls in the next succeeding calendar year, such payment shall be
made on the immediately preceding Business Day, in each case, with the same
force and effect as if made on the Interest Payment Date, at a fixed rate equal
to 7.65% per annum through the interest payment date in January 2016 (“Fixed
Rate Period”) and thereafter at a variable rate equal to LIBOR plus 2.70%
per annum, together with Additional Tax Sums, if any, as provided in Section
10.5 of the Indenture, until the principal hereof is paid or duly provided
for or made available for payment; provided,
further, that any overdue
principal, premium, if any, or Additional Tax Sums and any overdue installment
of interest shall bear Additional Interest at a fixed rate equal to 7.65%
through the interest payment date in January 2016 and thereafter at a variable
rate equal to LIBOR plus 2.70% per annum (to the extent that the payment of
such interest shall be legally enforceable), compounded quarterly, from the
dates such amounts are due until they are paid or made available for payment,
and such interest shall be payable on demand.

 

During the Fixed Rate
Period, the amount of interest payable shall be computed on the basis of a
360-day year of twelve 30-day months and the amount payable for any partial
period shall be computed on the basis of the number of days elapsed in a
360-day year of twelve 30-day months. Upon expiration of the Fixed Rate Period,
the amount of interest payable for any Interest Payment Period will be computed
on the basis of a 360-day year and the actual number

 

 

of days elapsed in the relevant interest period. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
shall, as provided in the Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest installment. Any such
interest not so punctually paid or duly provided for shall forthwith cease to
be payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities not less than ten (10) days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in the Indenture.

 

So long as no Event of
Default has occurred and is continuing, the Company shall have the right, at
any time and from time to time during the term of this Security, to defer the
payment of interest on this Security for a period of up to four (4) consecutive quarterly interest
payment periods (each such period, an “Extension
Period”), during which Extension Period(s), no interest shall be due
and payable (except any Additional Tax Sums that may be due and payable). No
Extension Period shall end on a date other than an Interest Payment Date, and
no Extension Period shall extend beyond the Stated Maturity of the principal of
this Security. No interest shall be due and payable during an Extension Period
(except any Additional Tax Sums that may be due and payable), except at the end
thereof. At the end of any such Extension Period, the Company shall pay all
interest then accrued and unpaid on this Security. Prior to the termination of
any such Extension Period, the Company may further defer the payment of
interest; provided that (i) all
such previous and further extensions comprising such Extension Period do not
exceed four (4) quarterly interest payment periods, (ii) no Extension Period
shall end on a date other than an Interest Payment Date and (iii) no Extension
Period shall extend beyond the Stated Maturity of the principal of this
Security. Upon the termination of any such Extension Period and upon the
payment of all accrued and unpaid interest then due on any Interest Payment
Date, the Company may elect to begin a new Extension Period; provided that (i) such Extension Period
does not exceed four (4) quarterly interest payment periods, (ii) no Extension
Period shall end on a date other than an Interest Payment Date and (iii) no
Extension Period shall extend beyond the Stated Maturity of the principal of
this Security. The Company shall notify in writing (i) the Security Holders at
the address provided upon request to the Securities Registrar, (ii) the Trustee
at the Corporate Trust Office and (iii) Taberna Capital Management, LLC, 450
Park Avenue, New York, NY 10022, attn: Thomas Bogal, telephone: (212) 735-1490 of
its election to begin any such Extension Period at least thirty (30) days’
prior to the next succeeding Interest Payment Date on which interest on this
Security would be payable but for such deferral.

 

During any such Extension
Period, the Company shall not (i) declare or pay any dividends or distributions
on, or redeem, purchase, acquire or make a liquidation payment with respect to,
any of the Company’s limited partnership interests (ii) vote in favor of or
permit or otherwise allow any of its subsidiaries to declare or pay any
dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to or otherwise retire, any shares of such
subsidiaries preferred stock (for the avoidance of doubt, whether such
preferred stock is perpetual or otherwise) or (iii) make any payment of
principal of or any interest or premium, if any, on or repay, repurchase or
redeem any debt securities of the Company that rank pari passu

 

 

in all respects with or
junior in interest to this Security (other than (a) repurchases, redemptions or
other acquisitions of limited partnership interests of the Company in
connection with (1) any employment contract, benefit plan or other similar
arrangement with or for the benefit of any one or more employees, officers, directors
or consultants, (2) a dividend reinvestment or limited partnership interests
purchase plan and (3) the issuance of limited partnership interests of the
Company (or securities convertible into or exercisable for such units of
limited partnership interests) as consideration in an acquisition transaction
entered into prior to the applicable Extension Period, (b) as a result of an
exchange or conversion of any class or series of the Company’s limited
partnership interests (or any capital stock or limited partnership interests of
a Subsidiary of the Company) for any class or series of the Company’s limited
partnership interests or of any class or series of the Company’s indebtedness
for any class or series of the Company’s limited partnership interests, (c) the
purchase of fractional interests in shares of the Company’s limited partnership
interests pursuant to the conversion or exchange provisions of such limited
partnership interests or the security being converted or exchanged, (d) any
declaration of a dividend in connection with any Rights Plan, the issuance of
rights, limited partnership interests or other property under any Rights Plan,
or the redemption or repurchase of rights pursuant thereto or (e) any dividend
in the form of limited partnership interests, warrants, options or other rights
where the dividend limited partnership interests or the limited partnership
interests issuable upon exercise of such warrants, options or other rights is
the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such limited
partnership interests).

 

Payment of principal of,
premium, if any, and interest on this Security shall be made in such coin or
currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts. Payments of principal, premium, if
any, and interest due at the Maturity of this Security shall be made at the
Place of Payment upon surrender of such Securities to the Paying Agent, and
payments of interest shall be made, subject to such surrender where applicable,
by wire transfer at such place and to such account at a banking institution in
the United States as may be designated in writing to the Paying Agent at least
ten (10) Business Days prior to the date for payment by the Person entitled
thereto unless proper written transfer instructions have not been received by
the relevant record date, in which case such payments shall be made by check
mailed to the address of such Person as such address shall appear in the
Security Register. Notwithstanding the foregoing, so long as the Holder of this
Security is the Property Trustee, the payment of the principal of (and premium,
if any) and interest (including any overdue installment of interest and
Additional Tax Sums, if any) on this Security will be made at such place and to
such account as may be designated by the Property Trustee.

 

The indebtedness
evidenced by this Security is, to the extent provided in the Indenture,
subordinate and junior in right of payment to the prior payment in full of all
Senior Debt, and this Security is issued subject to the provisions of the
Indenture with respect thereto. Each Holder of this Security, by accepting the
same, (a) agrees to and shall be bound by such provisions, (b) authorizes and
directs the Trustee on his or her behalf to take such actions as may be
necessary or appropriate to effectuate the subordination so provided and (c)
appoints the Trustee his or her attorney-in-fact for any and all such purposes.
Each Holder hereof, by his or her acceptance hereof, waives all notice of the
acceptance of the subordination provisions contained herein and in the
Indenture by each holder of Senior Debt, whether now outstanding or hereafter
incurred, and waives reliance by each such holder upon said provisions.

 

 

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

 

[FORM
OF REVERSE OF SECURITY]

 

This Security is one of a
duly authorized issue of securities of the Company (the “Securities”) issued under the Junior
Subordinated Indenture, dated as of January 27, 2006 (the “Indenture”), between the Company and
JPMorgan Chase Bank, National Association, as Trustee (in such capacity, the “Trustee,” which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee, the holders of Senior Debt, the Holders of the Securities and the
holders of the Preferred Securities, and of the terms upon which the Securities
are, and are to be, authenticated and delivered.

 

All terms used in this
Security that are defined in the Indenture or in the Amended and Restated Trust
Agreement, dated as of January 27, 2006 (as modified, amended or supplemented
from time to time, the “Trust Agreement”),
relating to the Gramercy Capital Trust III (the “Trust”) among the Company, as Depositor, the Trustees named
therein and the Holders from time to time of the Trust Securities issued
pursuant thereto, shall have the meanings assigned to them in the Indenture or
the Trust Agreement, as the case may be.

 

The Company may, on any
Interest Payment Date, at its option, upon not less than thirty (30) days’ nor
more than sixty (60) days’ written notice to the Holders of the Securities
(unless a shorter notice period shall be satisfactory to the Trustee) on or
after January 30, 2011 and subject to the terms and conditions of Article XI
of the Indenture, redeem this Security in whole at any time or in part from
time to time at a Redemption Price equal to one hundred percent (100%) of the
principal amount hereof, together, in the case of any such redemption, with
accrued interest, including any Additional Interest, through but excluding the
date fixed as the Redemption Date.

 

In addition, upon the
occurrence and during the continuation of a Special Event, the Company may, at
its option, upon not less than thirty (30) days’ nor more than sixty (60) days’
written notice to the Holders of the Securities (unless a shorter notice period
shall be satisfactory to the Trustee), redeem this Security, in whole but not
in part, subject to the terms and conditions of Article XI of the
Indenture at a Redemption Price equal to one hundred seven and one half percent
(107.5%) of the principal amount hereof, together, in the case of any such
redemption, with accrued interest, including any Additional Interest, through
but excluding the date fixed as the Redemption Date.

 

In the event of
redemption of this Security in part only, a new Security or Securities for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon
the cancellation hereof. If less than all the Securities are to be redeemed,
the particular Securities to be redeemed shall be selected not more than sixty
(60) days prior to the Redemption Date by the Trustee from the Outstanding
Securities not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of a portion of the principal amount of any Security.

 

 

The Indenture permits,
with certain exceptions as therein provided, the Company and the Trustee at any
time to enter into a supplemental indenture or indentures for the purpose of
modifying in any manner the rights and obligations of the Company and of the
Holders of the Securities, with the consent of the Holders of not less than a
majority in principal amount of the Outstanding Securities. The Indenture also
contains provisions permitting Holders of specified percentages in principal
amount of the Securities, on behalf of the Holders of all Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Security.

 

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

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Security is restricted to transfers to “Qualified Purchasers” (as such
term is defined in the Investment Company Act of 1940, as amended, and is
registrable in the Securities Register, upon surrender of this Security for
registration of transfer at the office or agency of the Company maintained for
such purpose, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Securities Registrar and
duly executed by, the Holder hereof or such Holder’s attorney duly authorized
in writing, and thereupon one or more new Securities, of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

 

The Securities are
issuable only in registered form without coupons in minimum denominations of
$100,000 and any integral multiple of $1,000 in excess thereof. As provided in
the Indenture and subject to certain limitations therein set forth, Securities
are exchangeable for a like aggregate principal amount of Securities and of
like tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

 

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

 

The Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name
this Security is registered as the owner hereof for all purposes, whether or
not this Security be overdue, and neither the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.

 

The Company and, by its
acceptance of this Security or a beneficial interest herein, the Holder of, and
any Person that acquires a beneficial interest in, this Security agree that,
for United States federal, state and local tax purposes, it is intended that
this Security constitute

 

 

indebtedness.

 

This
Security shall be construed and enforced in accordance with and governed by the
laws of the State of New York, without reference to its conflict of laws
provisions (other than Section 5-1401 of the General Obligations Law).

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed on this             
day of                ,
20           .

 

	
   

  	
  GKK Capital LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  SECTION 2.2 Restricted Legend.

  	
   

  

 

(a)           Any Security issued hereunder shall
bear a legend in substantially the following form:

 

“[IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF
DTC. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A
TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE
OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED
CIRCUMSTANCES.

 

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

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND SUCH SECURITIES, AND ANY INTEREST THEREIN, MAY NOT BE OFFERED,

 

 

SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF ANY SECURITIES IS HEREBY NOTIFIED THAT THE SELLER
OF THE SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF
SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

 

THE HOLDER OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE
COMPANY THAT (A) SUCH SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE
TRANSFERRED ONLY (I) TO THE COMPANY OR (II) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS DEFINED IN SECTION 2(a)(51)
OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED), AND (B) THE HOLDER WILL
NOTIFY ANY PURCHASER OF ANY SECURITIES FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN (A) ABOVE.THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED
ONLY IN BLOCKS HAVING AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000.
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF SECURITIES,
OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF
LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO
BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH
SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
PRINCIPAL OF OR INTEREST ON SUCH SECURITIES, OR ANY INTEREST THEREIN, AND SUCH
PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH
SECURITIES.

 

THE HOLDER OF THIS
SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO
AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”),
OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY
PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY
PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER
OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE
BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON
BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING
THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH

 

 

PURCHASE.”

 

(b)           The above legends shall not be
removed from any Security unless there is delivered to the Company satisfactory
evidence, which may include an Opinion of Counsel, as may be reasonably required
to ensure that any future transfers thereof may be made without restriction
under or violation of the provisions of the Securities Act and other applicable
law. Upon provision of such satisfactory evidence, the Company shall execute
and deliver to the Trustee, and the Trustee shall deliver, upon receipt of a
Company Order directing it to do so, a Security that does not bear the legend.

 

SECTION 2.3         Form of Trustee’s
Certificate of Authentication.

 

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

 

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

 

Dated:

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authenticating
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  

 

SECTION 2.4         Temporary Securities.

 

(a)           Pending the preparation of definitive
Securities, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities that are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any denomination, substantially
of the tenor of the definitive Securities in lieu of which they are issued and
with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced by their
execution of such Securities.

 

(b)           If temporary Securities are issued,
the Company will cause definitive Securities to be prepared without
unreasonable delay. After the preparation of definitive Securities, the
temporary Securities shall be exchangeable for definitive Securities upon
surrender of the temporary Securities at the office or agency of the Company
designated for that purpose without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of any authorized denominations having the same Original
Issue Date and Stated Maturity and having the same terms as such temporary
Securities. Until so exchanged, the temporary Securities shall in all respects
be entitled to the same benefits under this Indenture as definitive Securities.

 

SECTION 2.5         Definitive Securities.

 

The Securities issued on
the Original Issue Date shall be in definitive form. The definitive Securities
shall be printed, lithographed or engraved, or produced by any combination of
these methods, if required by any securities exchange on which the Securities
may be listed,

 

 

on a steel engraved border or steel engraved borders or may be produced
in any other manner permitted by the rules of any securities exchange on which
the Securities may be listed, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

 

ARTICLE III

THE SECURITIES

 

SECTION 3.1         Payment of Principal and
Interest.

 

(a)           The unpaid principal amount of the
Securities shall bear interest at a fixed rate equal to 7.65% per annum through
the interest payment date in January 2016 and thereafter at a variable rate of
LIBOR plus 2.70% per annum until paid or duly provided for, such interest to
accrue from the Original Issue Date or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, and any overdue
principal, premium, if any, or

 

Additional Tax Sums and
any overdue installment of interest shall bear Additional Interest at the rate
equal to a fixed rate equal to 7.65% per annum through the interest payment
date in January 2016 and thereafter at a variable rate of LIBOR plus 2.70% per
annum, compounded quarterly from the dates such amounts are due until they are
paid or funds for the payment thereof are made available for payment.

 

(b)           Interest and Additional Interest on
any Security that is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name that
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, except that interest and
any Additional Interest payable on the Stated Maturity (or any date of
principal repayment upon early maturity) of the principal of a Security or on a
Redemption Date shall be paid to the Person to whom principal is paid. The
initial payment of interest on any Security that is issued between a Regular
Record Date and the related Interest Payment Date shall be payable as provided
in such Security.

 

(c)           Any interest on any Security that is
due and payable, but is not timely paid or duly provided for, on any Interest
Payment Date for Securities (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 may be paid by the Company, at its
election in each case, as provided in paragraph (i) or (ii) below:

 

(i)            The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest (a “Special
Record Date”), which shall be fixed in the following manner. At least
thirty (30) days prior to the date of the proposed payment, the Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each Security and the date of the proposed payment, and at the same
time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make

 

 

arrangements
satisfactory to the Trustee for such deposit 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. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest, which shall be
not more than fifteen (15) days and not less than ten (10) days prior to the
date of the proposed payment and not less than ten (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 Holder of a Security at the address of such
Holder as it appears in the Securities Register not less than ten (10) days
prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities (or their respective Predecessor Securities) are registered on such
Special Record Date; or

 

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

 

(d)           Payments of interest on the
Securities shall include interest accrued to but excluding the respective
Interest Payment Dates. During the Fixed Rate Period, the amount of interest
payable shall be computed on the basis of a 360-day year of twelve 30-day
months and the amount payable for any partial period shall be computed on the
basis of the number of days elapsed in a 360-day year of twelve 30-day months.
Upon expiration of the Fixed Rate Period, the amount of interest payable for
any Interest Payment Period will be computed on the basis of a 360-day year and
the actual number of days elapsed in the relevant interest period.

 

(e)           Payment of principal of, premium, if
any, and interest on the Securities shall be made in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payments of principal, premium, if any,
and interest due at the Maturity of such Securities shall be made at the Place
of Payment upon surrender of such Securities to the Paying Agent and payments
of interest shall be made subject to such surrender where applicable, by wire
transfer at such place and to such account at a banking institution in the
United States as may be designated in writing to the Paying Agent at least ten
(10) Business Days prior to the date for payment by the Person entitled thereto
unless proper written transfer instructions have not been received by the relevant
record date, in which case such payments shall be made by check mailed to the
address of such Person as such address shall appear in the Security Register. Notwithstanding
the foregoing, so long as the holder of this Security is the Property Trustee,
the payment of the principal of (and premium, if any) and interest (including
any overdue installment of interest and Additional Tax Sums, if any) on this
Security will be made at such place and to such account as may be designated by
the Property Trustee.

 

 

(f)            The parties hereto acknowledge and
agree that the holders of the Preferred Securities have certain rights to
direct the Company to modify the Interest Payment Dates and corresponding
Redemption Date and Stated Maturity of the Securities or a portion of the
Securities pursuant to the Purchase Agreement. In the event any such
modifications are made to the Securities or a portion of the Securities,
appropriate changes to the form of Security set forth in Article II hereof
shall be made prior to the issuance and authentication of new or replacement
Securities. Any such modification of the Interest Payment Date and
corresponding Redemption Date and Stated Maturity with respect to any
Securities or tranche of Securities shall not require or be subject to the
consent of the Trustee.

 

(g)           Subject to the foregoing provisions
of this Section 3.1, each Security delivered under this Indenture upon
transfer of or in exchange for or in lieu of any other Security shall carry the
rights to interest accrued and unpaid, and to accrue, that were carried by such
other Security.

 

SECTION 3.2         Denominations.

 

The Securities shall be
in registered form without coupons and shall be issuable in minimum
denominations of $100,000 and any integral multiple of $1,000 in excess thereof.

 

SECTION 3.3         Execution, Authentication,
Delivery and Dating.

 

(a)           At any time and from time to time
after the execution and delivery of this Indenture, the Company may deliver
Securities in an aggregate principal amount (including all then Outstanding
Securities) not in excess of Fifty-One Million Five Hundred Fifty Thousand
Dollars ($51,550,000) executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with the Company
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
shall be fully protected in relying upon:

 

(i)            a
copy of any Board Resolution relating thereto; and

 

(ii)           an
Opinion of Counsel stating that: (1) such Securities, when authenticated and
delivered by the Trustee and issued by the Company in the manner and subject to
any conditions specified in such Opinion of Counsel, will constitute, and the
Indenture constitutes, valid and legally binding obligations of the Company,
each enforceable in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles; (2) the Securities have been duly authorized and executed by the
Company and have been delivered to the Trustee for authentication in accordance
with this Indenture; (3) the Securities are not required to be registered under
the Securities Act; and (4) the Indenture is not required to be qualified under
the Trust Indenture Act.

 

 

(b)           The Securities shall be executed on
behalf of the Company by its Chairman of the Board, its Vice Chairman of the
Board, its Chief Executive Officer, its President or one of its Vice
Presidents. The signature of any of these officers on the Securities may be manual
or facsimile. Securities bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased
to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

 

(c)           No Security shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose, unless
there appears on such Security a certificate of authentication substantially in
the form provided for herein executed by the Trustee by the manual signature of
one of its authorized signatories, and such certificate upon any Security shall
be conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder. Notwithstanding the foregoing, if any
Security shall have been authenticated and delivered hereunder but never issued
and sold by the Company, and the Company shall deliver such Security to the
Trustee for cancellation as provided in Section 3.8, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall never be entitled to the benefits of this
Indenture.

 

(d)           Each Security shall be dated the date
of its authentication.

 

SECTION 3.4         Global Securities.

 

(a)           Upon the election of the Holder after
the Original Issue Date, which election need not be in writing, the Securities
owned by such Holder shall be issued in the form of one or more Global
Securities registered in the name of the Depositary or its nominee. Each Global
Security issued under this Indenture shall be registered in the name of the
Depositary designated by the Company for such Global Security or a nominee
thereof and delivered to such Depositary or a nominee thereof or custodian
therefor, and each such Global Security shall constitute a single Security for
all purposes of this Indenture.

 

(b)           Notwithstanding any other provision
in this Indenture, no Global Security may be exchanged in whole or in part for
registered Securities, and no transfer of a Global Security in whole or in part
may be registered, in the name of any Person other than the Depositary for such
Global Security or a nominee thereof unless (i) such Depositary advises the
Trustee and the Company in writing that such Depositary is no longer willing or
able to properly discharge its responsibilities as Depositary with respect to
such Global Security, and no qualified successor is appointed by the Company
within ninety (90) days of receipt by the Company of such notice, (ii) such
Depositary ceases to be a clearing agency registered under the Exchange Act and
no successor is appointed by the Company within ninety (90) days after obtaining
knowledge of such event, (iii) the Company executes and delivers to the Trustee
a Company Order stating that the Company elects to terminate the book-entry
system through the Depositary or (iv) an Event of Default shall have occurred
and be continuing. Upon the occurrence of any event specified in clause (i),
(ii), (iii) or (iv) above, the Trustee shall notify the Depositary and instruct
the Depositary to notify all owners of beneficial interests in such Global
Security of the occurrence of such event and of the availability of Securities
to such owners of beneficial interests requesting the same. The Trustee may
conclusively rely, and be protected in relying, upon the

 

 

written
identification of the owners of beneficial interests furnished by the
Depositary, and shall not be liable for any delay resulting from a delay by the
Depositary. Upon the issuance of such Securities and the registration in the
Securities Register of such Securities in the names of the Holders of the
beneficial interests therein, the Trustees shall recognize such holders of
beneficial interests as Holders.

 

(c)           If any Global Security is to be
exchanged for other Securities or canceled in part, or if another Security is
to be exchanged in whole or in part for a beneficial interest in any Global
Security, then either (i) such Global Security shall be so surrendered for
exchange or cancellation as provided in this Article III or (ii) the
principal amount thereof shall be reduced or increased by an amount equal to
(x) the portion thereof to be so exchanged or canceled, or (y) the principal
amount of such other Security to be so exchanged for a beneficial interest
therein, as the case may be, by means of an appropriate adjustment made on the
records of the Securities Registrar, whereupon the Trustee, in accordance with
the Applicable Depositary Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender or adjustment of a Global Security by the Depositary,
accompanied by registration instructions, the Company shall execute and the
Trustee shall authenticate and deliver any Securities issuable in exchange for
such Global Security (or any portion thereof) in accordance with the
instructions of the Depositary. The Trustee shall not be liable for any delay
in delivery of such instructions and may conclusively rely on, and shall be
fully protected in relying on, such instructions.

 

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

 

(e)           Securities distributed to holders of
Book-Entry Preferred Securities (as defined in the applicable Trust Agreement)
upon the dissolution of the Trust shall be distributed in the form of one or
more Global Securities registered in the name of a Depositary or its nominee,
and deposited with the Securities Registrar, as custodian for such Depositary,
or with such Depositary, for credit by the Depositary to the respective
accounts of the beneficial owners of the Securities represented thereby (or
such other accounts as they may direct). Securities distributed to holders of
Preferred Securities other than Book-Entry Preferred Securities upon the
dissolution of the Trust shall not be issued in the form of a Global Security
or any other form intended to facilitate book-entry trading in beneficial
interests in such Securities.

 

(f)            The Depositary or its nominee, as
the registered owner of a Global Security, shall be the Holder of such Global
Security for all purposes under this Indenture and the Securities, and owners
of beneficial interests in a Global Security shall hold such interests pursuant
to the Applicable Depositary Procedures. Accordingly, any such owner’s
beneficial interest in a Global Security shall be shown only on, and the
transfer of such interest shall be effected only through, records maintained by
the Depositary or its nominee or its Depositary Participants. The Securities
Registrar and the Trustee shall be entitled to deal with the Depositary for all
purposes of this Indenture relating to a Global Security (including the payment
of principal and interest thereon and the giving of instructions or directions
by owners of beneficial interests therein and the giving of notices) as the
sole Holder of the Security and shall have no obligations to the

 

 

owners
of beneficial interests therein. Neither the Trustee nor the Securities
Registrar shall have any liability in respect of any transfers effected by the
Depositary.

 

(g)           The rights of owners of beneficial
interests in a Global Security shall be exercised only through the Depositary
and shall be limited to those established by law and agreements between such
owners and the Depositary and/or its Depositary Participants.

 

(h)           No holder of any beneficial interest
in any Global Security held on its behalf by a Depositary shall have any rights
under this Indenture with respect to such Global Security, and such Depositary
may be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the owner of such Global Security for all purposes whatsoever. None
of the Company, the Trustee nor any agent of the Company or the Trustee will
have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests of a Global
Security or maintaining, supervising or reviewing any records relating to such
beneficial ownership interests. Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by a Depositary or impair, as between a Depositary and
such holders of beneficial interests, the operation of customary practices
governing the exercise of the rights of the Depositary (or its nominee) as
Holder of any Security.

 

SECTION 3.5         Registration, Transfer and
Exchange Generally.

 

(a)           The Trustee shall cause to be kept at
the Corporate Trust Office a register (the “Securities
Register”) in which the registrar and transfer agent with respect to
the Securities (the “Securities Registrar”),
subject to such reasonable regulations as it may prescribe, shall provide for
the registration of Securities and of transfers and exchanges of Securities.
The Trustee shall at all times also be the Securities Registrar. The provisions
of Article VI shall apply to the Trustee in its role as Securities
Registrar.

 

(b)           Subject to compliance with Section
2.2(b), upon surrender for registration of transfer of any Security at the
offices or agencies of the Company designated for that purpose the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Securities of any
authorized denominations of like tenor and aggregate principal amount.

 

(c)           At the option of the Holder,
Securities may be exchanged for other Securities of any authorized
denominations, of like tenor and aggregate principal amount, upon surrender of
the Securities to be exchanged at such office or agency. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities that the Holder making
the exchange is entitled to receive.

 

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

 

(e)           Every Security presented or
surrendered for transfer or exchange shall (if so required by the Company or
the Trustee) be duly endorsed, or be accompanied by a written

 

 

instrument
of transfer in form satisfactory to the Company and the Securities Registrar,
duly executed by the Holder thereof or such Holder’s attorney duly authorized
in writing.

 

(f)            No service charge shall be made to a
Holder for any transfer or exchange of Securities, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any transfer or exchange of Securities.

 

(g)           Neither the Company nor the Trustee
shall be required pursuant to the provisions of this Section 3.5 (g):
(i) to issue, register the transfer of or exchange any Security during a period
beginning at the opening of business fifteen (15) days before the day of
selection for redemption of Securities pursuant to Article XI and ending
at the close of business on the day of mailing of the notice of redemption or
(ii) to register the transfer of or exchange any Security so selected for
redemption in whole or in part, except, in the case of any such Security to be
redeemed in part, any portion thereof not to be redeemed.

 

(h)           The Company shall designate an office
or offices or agency or agencies where Securities may be surrendered for
registration or transfer or exchange. The Company initially designates the
Corporate Trust Office as its office and agency for such purposes. The Company
shall give prompt written notice to the Trustee and to the Holders of any
change in the location of any such office or agency.

 

(i)            The Securities may only be
transferred to a “Qualified Purchaser” as such term is defined in section
2(a)(51) of the Investment Company Act.

 

(j)            Neither the Trustee nor the
Securities Registrar shall be responsible for ascertaining whether any transfer
hereunder complies with the registration provisions of or any exemptions from
the Securities Act, applicable state securities laws or the applicable laws of
any other jurisdiction, ERISA, the United States Internal Revenue Code of 1986,
as amended, or the Investment Company Act; provided that
if a certificate is specifically required by the express terms of this Section
3.5 to be delivered to the Trustee or the Securities Registrar by a Holder or
transferee of a Security, the Trustee and the Securities Registrar shall be
under a duty to receive and examine the same to determine whether or not the
certificate substantially conforms on its face to the requirements of this
Indenture and shall promptly notify the party delivering the same if such
certificate does not comply with such terms

 

SECTION 3.6         Mutilated, Destroyed, Lost
and Stolen Securities.

 

(a)           If any mutilated Security is
surrendered to the Trustee together with such security or indemnity as may be
required by the Trustee to save the Company and the Trustee harmless, the
Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new Security of like tenor and aggregate principal amount
and bearing a number not contemporaneously outstanding.

 

(b)           If there shall be delivered to the
Trustee (i) evidence to its satisfaction of the destruction, loss or theft of
any Security and (ii) such security or indemnity as may be required by it to
save each of the Company and the Trustee harmless, then, in the absence of
notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the

 

 

Company
shall execute and upon its written request the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of like tenor and aggregate principal amount as such destroyed, lost or stolen
Security, and bearing a number not contemporaneously outstanding.

 

(c)           If any such mutilated, destroyed,
lost or stolen Security has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security, pay such
Security.

 

(d)           Upon the issuance of any new Security
under this Section 3.6, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith.

 

(e)           Every new Security issued pursuant to
this Section 3.6 in lieu of any mutilated, destroyed, lost or stolen
Security shall constitute an original additional contractual obligation of the
Company, whether or not the mutilated, destroyed, lost or stolen Security shall
be at any time enforceable by anyone, and shall be entitled to all the benefits
of this Indenture equally and proportionately with any and all other Securities
duly issued hereunder.

 

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

 

SECTION 3.7         Persons Deemed Owners.

 

The Company, the Trustee and any agent of the Company or the Trustee
shall treat the Person in whose name any Security is registered as the owner of
such Security for the purpose of receiving payment of principal of and any
interest on such Security and for all other purposes whatsoever, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

 

SECTION 3.8         Cancellation.

 

All Securities surrendered for payment, redemption, transfer or
exchange shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee, and any such Securities and Securities surrendered
directly to the Trustee for any such purpose shall be promptly canceled by it.
The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder that the Company
may have acquired in any manner whatsoever, and all Securities so delivered
shall be promptly canceled by the Trustee. No Securities shall be authenticated
in lieu of or in exchange for any Securities canceled as provided in this Section
3.8, except as expressly permitted by this Indenture. All canceled
Securities shall be retained or disposed of by the Trustee in accordance with
its customary practices and the Trustee shall deliver to the Company a
certificate of such disposition.

 

 

SECTION 3.9         Deferrals of Interest
Payment Dates.

 

(a)           So long as no Event of Default has
occurred and is continuing, the Company shall have the right, at any time and
from time to time during the term of the Security, to defer the payment of
interest on the Securities for a period of up to four (4) consecutive quarterly
interest payment periods (each such period, an “Extension Period”),
during which Extension Period(s), the Company shall have the right to make no
payments or partial payments of interest on any Interest Payment Date (except
any Additional Tax Sums that otherwise may be due and payable). No Extension
Period shall end on a date other than an Interest Payment Date and no Extension
Period shall extend beyond the Stated Maturity of the principal of the
Securities. No interest shall be due and payable during an Extension Period,
except at the end thereof. At the end of any such Extension Period, the Company
shall pay all interest then accrued and unpaid on the Securities. Prior to the
termination of any such Extension Period, the Company may extend such Extension
Period and further defer the payment of interest; provided that (i) all such previous and further extensions
comprising such Extension Period do not exceed four (4) quarterly interest
payment periods, (ii) no Extension Period shall end on a date other than an
Interest Payment Date and (iii) no Extension Period shall extend beyond the
Stated Maturity of the principal of the Securities. Upon the termination of any
such Extension Period and upon the payment of all accrued and unpaid interest
then due on any Interest Payment Date, the Company may elect to begin a new
Extension Period; provided that
(i) such Extension Period does not exceed four (4) quarterly interest payment
periods, (ii) no Extension Period shall end on a date other than an Interest
Payment Date and (iii) no Extension Period shall extend beyond the Stated Maturity
of the principal of the Securities. The Company shall give the Holders of the
Securities and the Trustee written notice of its election to begin any such
Extension Period at least thirty (30) days’ prior to the next succeeding
Interest Payment Date on which interest on the Securities would be payable but
for such deferral.

 

(b)           In connection with any such Extension
Period, the Company shall be subject to the restrictions set forth in Section
10.6(a).

 

SECTION 3.10       Reserved.

 

SECTION 3.11       Agreed Tax Treatment.

 

Each Security issued hereunder shall provide that the Company and, by
its acceptance or acquisition of a Security or a beneficial interest therein,
the Holder of, and any Person that acquires a direct or indirect beneficial
interest in, such Security, intend and agree to treat such Security as
indebtedness of the Company for U.S. Federal, state and local tax purposes and
to treat the Preferred Securities (including but not limited to all payments
and proceeds with respect to the Preferred Securities) as an undivided
beneficial ownership interest in the Securities (and any other Trust property)
(and payments and proceeds therefrom, respectively) for U.S. Federal, state and
local tax purposes. The provisions of this Indenture shall be interpreted to further
this intention and agreement of the parties.

 

SECTION 3.12       CUSIP Numbers.

 

The Company in issuing the Securities may use “CUSIP” numbers (if then
generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices
of redemption and other similar or related materials as a convenience to
Holders; provided that any such
notice or other

 

 

materials may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of redemption or other
materials and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.

 

ARTICLE IV

SATISFACTION AND DISCHARGE

 

SECTION 4.1         Satisfaction and Discharge
of Indenture.

 

This Indenture shall, upon Company Request, cease to be of further
effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for and as otherwise provided
in this Section 4.1) and the Trustee, on demand of and at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

 

(a)           either

 

(i)            all
Securities theretofore authenticated and delivered (other than (A) Securities
that have been mutilated, destroyed, lost or stolen and that have been replaced
or paid as provided in Section 3.6 and (B) Securities for whose payment
money has theretofore been deposited in trust or segregated and held in trust
by the Company and thereafter repaid to the Company or discharged from such
trust as provided in Section 10.2) have been delivered to the Trustee
for cancellation; or

 

(ii)           all
such Securities not theretofore delivered to the Trustee for cancellation

 

(A)                              have
become due and payable, or

 

(B)                                will
become due and payable at their Stated Maturity within one year of the date of
deposit, or

 

(C)                                are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption by the Trustee in the name,
and at the expense, of the Company,

 

and the Company, in the case of subclause (ii)(A), (B) or (C) above,
has deposited or caused to be deposited with the Trustee as trust funds in trust
for such purpose (x) an amount in the currency or currencies in which the
Securities are payable, (y) Government Obligations which through the scheduled
payment of principal and interest in respect thereof in accordance with their
terms will provide, not later than the due date of any payment, money in an
amount or (z) a combination thereof, in each case sufficient, in the opinion of
a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay and discharge
the entire indebtedness on such Securities not theretofore delivered to the
Trustee for cancellation, for principal and any premium and interest (including
any Additional Interest) to the date of such deposit (in the case of Securities
that have become due and payable) or to the

 

 

Stated Maturity (or any date of principal repayment upon early
maturity) or Redemption Date, as the case may be;

 

(b)           the Company has paid or caused to be
paid all other sums payable hereunder by the Company; and

 

(c)           the Company has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel each stating that
all conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 6.6, the
obligations of the Company to any Authenticating Agent under Section 6.11
and, if money shall have been deposited with the Trustee pursuant to subclause
(a)(ii) of this Section 4.1, the obligations of the Trustee under Section
4.2 and Section 10.2(e) shall survive.

 

SECTION 4.2         Application of Trust Money.

 

Subject to the provisions of Section 10.2(e), all money deposited
with the Trustee pursuant to Section 4.1 shall be held in trust and
applied by the Trustee, in accordance with the provisions of the Securities and
this Indenture, to the payment in accordance with Section 3.1, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of
the principal and any premium and interest (including any Additional Interest)
for the payment of which such money or obligations have been deposited with or
received by the Trustee. Moneys held by the Trustee under this Section 4.2
shall not be subject to the claims of holders of Senior Debt under Article
XII.

 

ARTICLE V

REMEDIES

 

SECTION 5.1         Events of Default.

 

“Event of Default” means,
wherever used herein with respect to the Securities, any one of the following
events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

 

(a)           default in the payment of any
interest upon any Security, including any Additional Interest in respect
thereof, when it becomes due and payable, and continuance of such default for a
period of thirty (30) days (subject to the deferral of any due date in the case
of an Extension Period); or

 

(b)           default in the payment of the
principal of or any premium on any Security at its Maturity; or

 

 

(c)           default in the performance, or
breach, of any covenant or warranty in any material respect of the Company in
this Indenture or the Purchase Agreements and continuance of such default or
breach for a period of thirty (30) days after there has been given, by registered
or certified mail, to the Company by the Trustee or to the Company and the
Trustee by the Holders of at least twenty five percent (25%) in aggregate
principal amount of the Outstanding Securities a written notice specifying such
default or breach and requiring it to be remedied and stating that such notice
is a “Notice of Default” hereunder;

 

(d)           the entry by a court having
jurisdiction in the premises of  a decree
or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable Federal or
state bankruptcy, insolvency, reorganization or other similar law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
or other similar official of the Company or of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such other decree or
order unstayed and in effect for a period of sixty (60) consecutive days;

 

(e)           the institution by the Company of
proceedings to be adjudicated a bankrupt or insolvent, or the consent by the
Company to the institution of bankruptcy or insolvency proceedings against it,
or the filing by the Company of a petition or answer or consent seeking
reorganization or relief under any applicable Federal or state bankruptcy,
insolvency, reorganization or other similar law, or the consent by it to the
filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or of any substantial part of its property, or
the making by it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts generally as they
become due and its willingness to be adjudicated a bankrupt or insolvent, or
the taking of corporate action by the Company in furtherance of any such
action; or

 

(f)            the Trust shall have voluntarily or
involuntarily liquidated, dissolved, wound-up its business or otherwise
terminated its existence, except in connection with (1) the distribution of the
Securities to holders of the Preferred Securities in liquidation of their
interests in the Trust, (2) the redemption of all of the outstanding Preferred
Securities or (3) certain mergers, consolidations or amalgamations, each as and
to the extent permitted by the Trust Agreement.

 

SECTION 5.2         Acceleration of Maturity;
Rescission and Annulment.

 

(a)           If an Event of Default occurs and is
continuing, then and in every such case the Trustee or the Holders of not less
than twenty five percent (25%) in aggregate principal amount of the Outstanding
Securities may declare the principal amount of all the Securities to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee
if given by Holders), provided that
if, upon an Event of Default, the Trustee or the Holders of not less than twenty
five percent (25%) in principal amount of the Outstanding Securities fail to
declare the principal of all the Outstanding Securities to be immediately due
and payable, the holders of at least twenty five percent (25%) in aggregate
Liquidation Amount of the Preferred Securities then outstanding shall have the
right to make such declaration by a notice in writing to the Property Trustee,
the Company and the Trustee; and upon any such declaration the principal amount
of

 

 

and
the accrued interest (including any Additional Interest) on all the Securities
shall become immediately due and payable.

 

(b)           At any time after such a declaration
of acceleration with respect to Securities has been made and before a judgment
or decree for payment of the money due has been obtained by the Trustee as
hereinafter provided in this Article V, the Holders of a majority in
aggregate principal amount of the Outstanding Securities, by written notice to
the Indenture Trustee, or the holders of a majority in aggregate Liquidation
Amount of the Preferred Securities, by written notice to the Property Trustee,
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:

 

(A)                              all
overdue installments of interest on all Securities,

 

(B)                                any
accrued Additional Interest on all Securities,

 

(C)                                the
principal of and any premium on any Securities that have become due otherwise
than by such declaration of acceleration and interest (including any Additional
Interest) thereon at the rate borne by the Securities, and

 

(D)                               all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, the Property Trustee and
their agents and counsel; and

 

(ii)           all
Events of Default with respect to Securities, other than the non-payment of the
principal of Securities that has become due solely by such acceleration, have
been cured or waived as provided in Section 5.13;

 

provided that if the
Holders of such Securities fail to annul such declaration and waive such
default, the holders of not less than a majority in aggregate Liquidation
Amount of the Preferred Securities then outstanding shall also have the right
to rescind and annul such declaration and its consequences by written notice to
the Property Trustee, the Company and the Trustee, subject to the satisfaction
of the conditions set forth in paragraph (b) of this Section 5.2. No
such rescission shall affect any subsequent default or impair any right
consequent thereon.

 

SECTION 5.3         Collection of Indebtedness
and Suits for Enforcement by Trustee.

 

(a)           The Company covenants that if:

 

(i)            default
is made in the payment of any installment of interest (including any Additional
Interest) on any Security when such interest becomes due and payable and such
default continues for a period of thirty (30) days, or

 

(ii)           default
is made in the payment of the principal of and any premium on any Security at
the Maturity thereof,

 

 

the Company will, upon demand of the Trustee, pay to the Trustee, for
the benefit of the Holders of such Securities, the whole amount then due and
payable on such Securities for principal and any premium and interest
(including any Additional Interest) and, in addition thereto, all amounts owing
the Trustee under Section 6.6.

 

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

 

(c)           If an Event of Default with respect
to Securities occurs and is continuing, the Trustee may in its discretion
proceed to protect and enforce its rights and the rights of the Holders of
Securities by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.

 

SECTION 5.4         Trustee May File Proofs of
Claim.

 

In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or similar judicial
proceeding relative to the Company (or any other obligor upon the Securities),
its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions
authorized hereunder in order to have claims of the Holders and the Trustee
allowed in any such proceeding. In particular, the Trustee shall be authorized
to collect and receive any moneys or other property payable or deliverable on
any such claims and to distribute the same; and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to first pay to the Trustee
any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts owing
the Trustee, any predecessor Trustee and other Persons under Section 6.6.

 

SECTION 5.5         Trustee May Enforce Claim
Without Possession of Securities.

 

All rights of action and claims under this Indenture or the Securities
may be prosecuted and enforced by the Trustee without the possession of any of
the Securities or the production thereof in any proceeding relating thereto,
and any such proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall,
subject to Article XII and after provision for the payment of all the
amounts owing the Trustee, any predecessor Trustee and other Persons under Section
6.6, be for the ratable benefit of the Holders of the Securities in respect
of which such judgment has been recovered.

 

 

SECTION 5.6         Application of Money
Collected.

 

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

 

FIRST: To the payment of all amounts due the Trustee, any predecessor
Trustee and other Persons under Section 6.6;

 

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

 

THIRD: Subject to Article XII, to the payment of the amounts
then due and unpaid upon the Securities for principal and any premium and
interest (including any Additional 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 the
Securities for principal and any premium and interest (including any Additional
Interest), respectively; and

 

FOURTH: The balance, if any, to the Person or Persons entitled thereto.

 

SECTION 5.7         Limitation on Suits.

 

Subject to Section 5.8, no Holder of any Securities shall have
any right to institute any proceeding, judicial or otherwise, with respect to
this Indenture or for the appointment of a custodian, receiver, assignee,
trustee, liquidator, sequestrator (or other similar official) or for any other
remedy hereunder, unless:

 

(a)           such Holder has previously given
written notice to the Trustee of a continuing Event of Default with respect to
the Securities;

 

(b)           the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities shall have
made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

 

(c)           such Holder or Holders have offered
to the Trustee reasonable indemnity against the costs, expenses and liabilities
to be incurred in compliance with such request;

 

(d)           the Trustee after its receipt of such
notice, request and offer of indemnity has failed to institute any such
proceeding for sixty (60) days; and

 

(e)           no direction inconsistent with such
written request has been given to the Trustee during such sixty (60)-day period
by the Holders of a majority in aggregate principal amount of the Outstanding
Securities;

 

it being understood and intended that no one or more of such Holders
shall have any right in any manner whatever by virtue of, or by availing itself
of, any provision of this Indenture to affect, disturb or prejudice the rights
of any other Holders of Securities, or to obtain or to seek to obtain

 

 

priority or preference over any other of such Holders or to enforce any
right under this Indenture, except in the manner herein provided and for the equal
and ratable benefit of all such Holders.

 

SECTION 5.8         Unconditional Right of
Holders to Receive Principal, Premium, if any, and Interest; Direct Action by
Holders of Preferred Securities.

 

Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and any premium on such Security at its
Maturity and payment of interest (including any Additional Interest) on such
Security when due and payable and to institute suit for the enforcement of any
such payment, and such right shall not be impaired without the consent of such
Holder. Any registered holder of the Preferred Securities shall have the right,
upon the occurrence of an Event of Default described in Section 5.1(a)
or Section 5.1(b), to institute a suit directly against the Company for
enforcement of payment to such holder of principal of and any premium and
interest (including any Additional Interest) on the Securities having a principal
amount equal to the aggregate Liquidation Amount of the Preferred Securities
held by such holder.

 

SECTION 5.9         Restoration of Rights and
Remedies.

 

If the Trustee, any Holder or any holder of Preferred Securities has
instituted any proceeding to enforce any right or remedy under this Indenture
and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee, such Holder or such holder of
Preferred Securities, then and in every such case the Company, the Trustee,
such Holders and such holder of Preferred Securities shall, subject to any
determination in such proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Trustee, such Holder and such holder of Preferred Securities shall continue as
though no such proceeding had been instituted.

 

SECTION 5.10       Rights and Remedies
Cumulative.

 

Except as otherwise provided in Section 3.6(f), no right or
remedy herein conferred upon or reserved to the Trustee or the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

SECTION 5.11       Delay or Omission Not Waiver.

 

No delay or omission of the Trustee, any Holder of any Securities or
any holder of any Preferred Security to exercise any right or remedy accruing
upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article V or by law to the Trustee or to the
Holders and the right and remedy given to the holders of Preferred Securities
by Section 5.8 may be exercised from time to time, and as often as may
be deemed expedient, by the Trustee, the Holders or the holders of Preferred
Securities, as the case may be.

 

 

SECTION 5.12       Control
by Holders.

 

The Holders of not less than a majority in aggregate principal amount
of the Outstanding Securities (or, as the case may be, the holders of a
majority in aggregate Liquidation Amount of Preferred Securities)  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; provided that:

 

(a)           such direction shall not be in
conflict with any rule of law or with this Indenture,

 

(b)           the Trustee may take any other action
deemed proper by the Trustee that is not inconsistent with such direction, and

 

(c)           subject to the provisions of Section
6.2, the Trustee shall have the right to decline to follow such direction
if a Responsible Officer or Officers of the Trustee shall, in good faith,
reasonably determine that the proceeding so directed would be unjustly
prejudicial to the Holders not joining in any such direction or would involve
the Trustee in personal liability.

 

SECTION 5.13       Waiver of Past Defaults.

 

(a)           The Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities or the
holders of not less than a majority in aggregate Liquidation Amount of the
Preferred Securities may waive any past Event of Default hereunder and its
consequences except an Event of Default:

 

(i)            in
the payment of the principal of or any premium or interest (including any
Additional Interest) on any Outstanding Security (unless such Event of Default
has been cured and the Company has paid to or deposited with the Trustee a sum
sufficient to pay all installments of interest (including any Additional
Interest) due and past due and all principal of and any premium on all
Securities due otherwise than by acceleration), or

 

(ii)           in
respect of a covenant or provision hereof that under Article IX cannot
be modified or amended without the consent of each Holder of any Outstanding
Security.

 

(b)           Any such waiver shall be deemed to be
on behalf of the Holders of all the Outstanding Securities or, in the case of a
waiver by holders of Preferred Securities issued by such Trust, by all holders
of Preferred Securities.

 

(c)           Upon any such waiver, such Event of
Default shall cease to exist and any Event of Default arising therefrom shall
be deemed to have been cured for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Event of Default or impair any
right consequent thereon.

 

SECTION 5.14       Undertaking for Costs.

 

All parties to this Indenture agree, and each Holder of any Security by
his or her 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 and expenses, 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
5.14 shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more
than ten percent (10%) in aggregate principal amount of the Outstanding
Securities, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of or any premium on the Security after the Stated
Maturity or any interest (including any Additional Interest) on any Security
after it is due and payable.

 

SECTION 5.15       Waiver of Usury, Stay or
Extension Laws.

 

The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any usury, stay or extension law
wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been
enacted.

 

ARTICLE VI

THE TRUSTEE

 

SECTION 6.1         Corporate Trustee Required.

 

There shall at all times be a Trustee hereunder with respect to the
Securities. The Trustee shall be a corporation organized and doing business
under the laws of the United States or of any state thereof, authorized to
exercise corporate trust powers, having a combined capital and surplus of at
least $50,000,000, subject to supervision or examination by Federal or state
authority and having an office within the United States. If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of such supervising or examining authority, then, for the purposes
of this Section 6.1, 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. If at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section 6.1, it
shall resign immediately in the manner and with the effect hereinafter
specified in this Article VI.

 

SECTION 6.2         Certain Duties and
Responsibilities.

 

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

 

(i)            the
Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

 

(ii)           in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein,

 

 

upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; provided
that 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
substantially conform on their face to the requirements of this Indenture.

 

(b)           If an Event of Default known to the
Trustee has occurred and is continuing, the Trustee shall, prior to the receipt
of directions, if any, from the Holders of at least a majority in aggregate
principal amount of the Outstanding Securities (or, if applicable, from the holders
of at least a majority in aggregate Liquidation Amount of Preferred
Securities), exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in its exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

 

(c)           Notwithstanding the foregoing, no
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it. Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section
6.2. To the extent that, at law or in equity, the Trustee has duties and
liabilities relating to the Holders, the Trustee shall not be liable to any
Holder or any holder of Preferred Securities for the Trustee’s good faith
reliance on the provisions of this Indenture. The provisions of this Indenture,
to the extent that they restrict the duties and liabilities of the Trustee
otherwise existing at law or in equity, are agreed by the Company and the
Holders and the holders of Preferred Securities to replace such other duties
and liabilities of the Trustee.

 

(d)           No provisions of this Indenture shall
be construed to relieve the Trustee from liability with respect to matters that
are within the authority of the Trustee under this Indenture for its own
negligent action, negligent failure to act or willful misconduct, except that:

 

(i)            the
Trustee shall not be liable for any error or judgment made in good faith by an
authorized officer of the Trustee, unless it shall be proved that the Trustee
was negligent in ascertaining the pertinent facts;

 

(ii)           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 at
least a majority in aggregate principal amount of the Outstanding Securities
(or, as the case may be, the holders of a majority in aggregate Liquidation
Amount of Preferred Securities) relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee under this
Indenture; and

 

(iii)          the
Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed in writing with the Company and money held
by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law.

 

 

(e)           If at any time the Trustee hereunder
is not the same Person as the Property Trustee under the Trust Agreement:

 

(i)            whenever
a reference is made herein to the dissolution, termination or liquidation of
the Trust, the Trustee shall be entitled to assume that no such dissolution,
termination, or liquidation has occurred so long as the Securities are or
continue to be registered in the name of such Property Trustee, and the Trustee
shall be charged with notice or knowledge of such dissolution, termination or liquidation
only upon written notice thereof given to the Trustee by the Depositor under
the Trust Agreement; and

 

(ii)           the
Trustee shall not be charged with notice or knowledge that any Person is a
holder of Preferred Securities or Common Securities issued by the Trust or
whether any group of holders of Preferred Securities constitutes any specified
percentage of all outstanding Preferred Securities for any purpose under this
Indenture, unless and until the Trustee is furnished with a list of holders by
such Property Trustee and the aggregate Liquidation Amount of the Preferred
Securities then outstanding. The Trustee may conclusively rely and shall be
protected in relying on such list.

 

(f)            Notwithstanding Section 1.10,
the Trustee shall not, and shall not be deemed to, owe any fiduciary duty to
the holders of any of the Trust Securities issued by the Trust and shall not be
liable to any such holder (other than for the willful misconduct or negligence
of the Trustee) if the Trustee in good faith (i) pays over or distributes to a
registered Holder of the Securities or to the Company or to any other Person,
cash, property or securities to which such holders of such Trust Securities
shall be entitled or (ii) takes any action or omits to take any action at the request
of the Holder of such Securities. Nothing in this paragraph shall affect the
obligation of any other such Person to hold such payment for the benefit of,
and to pay such amount over to, such holders of Preferred Securities or Common
Securities or their representatives.

 

SECTION 6.3         Notice of Defaults.

 

Within ninety (90) days after the occurrence of any default actually
known to the Trustee, the Trustee shall give the Holders notice of such default
unless such default shall have been cured or waived; provided that
except in the case of a default in the payment of the principal of or any
premium or interest on any Securities, the Trustee shall be fully protected in
withholding the notice if and so long as the board of directors, the executive
committee or a trust committee of directors and/or Responsible Officers of the
Trustee in good faith determines that withholding the notice is in the interest
of Holders of Securities; and provided, further,
that in the case of any default of the character specified in Section 5.1(c),
no such notice to Holders shall be given until at least thirty (30) days after
the occurrence thereof. For the purpose of this Section 6.3, the term
“default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default.

 

SECTION 6.4         Certain Rights of Trustee.

 

Subject to the provisions of Section 6.2:

 

 

 

(a)           the Trustee may conclusively rely and
shall be fully protected in acting or refraining from acting in good faith and
in accordance with the terms hereof upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note 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)           if (i) in performing its duties under
this Indenture the Trustee is required to decide between alternative courses of
action, (ii) in construing any of the provisions of this Indenture the Trustee
finds ambiguous or inconsistent with any other provisions contained herein or
(iii) the Trustee is unsure of the application of any provision of this
Indenture, then, except as to any matter as to which the Holders are entitled
to decide under the terms of this Indenture, the Trustee shall deliver a notice
to the Company requesting the Company’s written instruction as to the course of
action to be taken and the Trustee shall take such action, or refrain from
taking such action, as the Trustee shall be instructed in writing to take, or to
refrain from taking, by the Company; provided
that if the Trustee does not receive such instructions from the Company within
ten Business Days after it has delivered such notice or such reasonably shorter
period of time set forth in such notice the Trustee may, but shall be under no
duty to, take such action, or refrain from taking such action, as the Trustee
shall deem advisable and in the best interests of the Holders, in which event
the Trustee shall have no liability except for its own negligence, bad faith or
willful misconduct;

 

(c)           any request or direction of the
Company shall be sufficiently evidenced by a Company Request or Company Order
and any resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution;

 

(d)           the Trustee may consult with counsel
(which counsel may be counsel to the Trustee, the Company or any of its
Affiliates, and may include any of its employees) and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon;

 

(e)           the Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders or any holder of
Preferred Securities pursuant to this Indenture, unless such Holders (or such
holders of Preferred Securities) shall have offered to the Trustee security or
indemnity reasonably satisfactory to it against the costs, expenses (including
reasonable attorneys’ fees and expenses) and liabilities that might be incurred
by it in compliance with such request or direction, including reasonable
advances as may be requested by the Trustee;

 

(f)            the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, indenture, note or other paper or document,
but the Trustee in its discretion may make such inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney;

 

 

(g)           the Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or
by or through agents, attorneys, custodians or nominees and the Trustee shall
not be responsible for any misconduct or negligence on the part of any such
agent, attorney, custodian or nominee appointed with due care by it hereunder;

 

(h)           whenever in the administration of
this Indenture the Trustee shall deem it desirable to receive instructions with
respect to enforcing any remedy or right or taking any other action with
respect to enforcing any remedy or right hereunder, the Trustees (i) may
request instructions from the Holders (which instructions may only be given by
the Holders of the same aggregate principal amount of Outstanding Securities as
would be entitled to direct the Trustee under this Indenture in respect of such
remedy, right or action), (ii) may refrain from enforcing such remedy or right
or taking such action until such instructions are received and (iii) shall be
protected in acting in accordance with such instructions;

 

(i)            except as otherwise expressly
provided by this Indenture, the Trustee shall not be under any obligation to
take any action that is discretionary under the provisions of this Indenture;

 

(j)            without prejudice to any other
rights available to the Trustee under applicable law, when the Trustee incurs
expenses or renders services in connection with any bankruptcy, insolvency or
other proceeding referred to in clauses (d) or (e) of the definition of Event
of Default, such expenses (including legal fees and expenses of its agents and
counsel) and the compensation for such services are intended to constitute
expenses of administration under any bankruptcy laws or law relating to
creditors rights generally;

 

(k)           whenever in the administration of
this Indenture the Trustee shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the
absence of bad faith on its part, conclusively rely upon an Officers’
Certificate addressing such matter, which, upon receipt of such request, shall
be promptly delivered by the Company;

 

(l)            the Trustee shall not be charged
with knowledge of any Event of Default unless either (i) a Responsible Officer
of the Trustee shall have actual knowledge or (ii) the Trustee shall have
received written notice thereof from the Company or a Holder; and

 

(m)          in the event that the Trustee is also
acting as Paying Agent, Authenticating Agent or Securities Registrar hereunder,
the rights and protections afforded to the Trustee pursuant to this Article
VI shall also be afforded such Paying Agent, Authenticating Agent, or
Securities Registrar.

 

SECTION 6.5         May Hold Securities.

 

The Trustee, any Authenticating Agent, any Paying Agent, any Securities
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal
with the Company with the same rights it would have if it were not Trustee,
Authenticating Agent, Paying Agent, Securities Registrar or such other agent.

 

 

SECTION 6.6         Compensation;
Reimbursement; Indemnity.

 

(a)           The Company agrees:

 

(i)            to
pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder in such amounts as the Company and the Trustee shall
agree from time to time (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust);

 

(ii)           to
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence, bad faith or
willful misconduct; and

 

(iii)          to
the fullest extent permitted by applicable law, to indemnify the Trustee and
its Affiliates, and their officers, directors, shareholders, agents,
representatives and employees for, and to hold them harmless against, any loss,
damage, liability, tax (other than income, franchise or other taxes imposed on
amounts paid pursuant to (i) or (ii) hereof), penalty, expense or claim of any
kind or nature whatsoever incurred without negligence, bad faith or willful
misconduct on its part arising out of or in connection with the acceptance or
administration of this Trust or the performance of the Trustee’s duties
hereunder, including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder.

 

(b)           To secure the Company’s payment
obligations in this Section 6.6, the Company hereby grants and pledges
to the Trustee and the Trustee shall have a lien prior to the Securities on all
money or property held or collected by the Trustee, other than money or property
held in trust to pay principal and interest on particular Securities. Such lien
shall survive the satisfaction and discharge of this Indenture or the
resignation or removal of the Trustee.

 

(c)           The obligations of the Company under
this Section 6.6 shall survive the satisfaction and discharge of this
Indenture and the earlier resignation or removal of the Trustee.

 

(d)           In no event shall the Trustee be
liable for any indirect, special, punitive or consequential loss or damage of
any kind whatsoever, including, but not limited to, lost profits, even if the
Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

 

(e)           In no event shall the Trustee be
liable for any failure or delay in the performance of its obligations hereunder
because of circumstances beyond its control, including, but not limited to,
acts of God, flood, war (whether declared or undeclared), terrorism, fire,
riot, embargo, government action, including any laws, ordinances, regulations,
governmental action or the like which delay, restrict or prohibit the providing
of the services contemplated by this Indenture.

 

 

SECTION 6.7         Resignation and Removal;
Appointment of Successor.

 

(a)           No resignation or removal of the
Trustee and no appointment of a successor Trustee pursuant to this Article
VI shall become effective until the acceptance of appointment by the
successor Trustee under Section 6.8.

 

(b)           The Trustee may resign at any time by
giving written notice thereof to the Company.

 

(c)           Unless an Event of Default shall have
occurred and be continuing, the Trustee may be removed at any time by the
Company by a Board Resolution. If an Event of Default shall have occurred and
be continuing, the Trustee may be removed by Act of the Holders of a majority in
aggregate principal amount of the Outstanding Securities, delivered to the
Trustee and to the Company.

 

(d)           If the Trustee shall resign, be
removed or become incapable of acting, or if a vacancy shall occur in the
office of Trustee for any reason, at a time when no Event of Default shall have
occurred and be continuing, the Company, by a Board Resolution, shall promptly
appoint a successor Trustee, and such successor Trustee and the retiring
Trustee shall comply with the applicable requirements of Section 6.8. If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any reason, at a time when an
Event of Default shall have occurred and be continuing, the Holders, by Act of
the Holders of a majority in aggregate principal amount of the Outstanding
Securities, shall promptly appoint a successor Trustee, and such successor
Trustee and the retiring Trustee shall comply with the applicable requirements
of Section 6.8. If no successor Trustee shall have been so appointed by
the Company or the Holders and accepted appointment within sixty (60) days
after the giving of a notice of resignation by the Trustee or the removal of
the Trustee in the manner required by Section 6.8, any Holder who has
been a bona fide Holder of a Security for at least six months may, on behalf of
such Holder and all others similarly situated, and any resigning Trustee may,
at the expense of the Company, petition any court of competent jurisdiction for
the appointment of a successor Trustee.

 

(e)           The Company shall give notice to all
Holders in the manner provided in Section 1.6 of each resignation
and each removal of the Trustee and each appointment of a successor Trustee.
Each notice shall include the name of the successor Trustee and the address of
its Corporate Trust Office.

 

SECTION 6.8         Acceptance of Appointment
by Successor.

 

(a)           In case of the appointment hereunder
of a successor Trustee, each 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)           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 rights,
powers and trusts referred to in paragraph (a) of this Section 6.8.

 

(c)           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 VI.

 

SECTION 6.9         Merger, Conversion,
Consolidation or Succession to Business.

 

Any Person into which the Trustee may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
Person succeeding to all or substantially all of the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, provided that
such Person shall be otherwise qualified and eligible under this Article VI.
In case any Securities shall have been authenticated, but not delivered, by the
Trustee then in office, any successor by merger, conversion or consolidation or
as otherwise provided above in this Section 6.9 to such authenticating
Trustee may adopt such authentication and deliver the Securities so
authenticated, and in case any Securities shall not have been authenticated,
any successor to the Trustee may authenticate such Securities either in the
name of any predecessor Trustee or in the name of such successor Trustee, and
in all cases the certificate of authentication shall have the full force which
it is provided anywhere in the Securities or in this Indenture that the
certificate of the Trustee shall have.

 

SECTION 6.10       Not Responsible for
Recitals or Issuance of Securities.

 

The recitals contained herein and in the Securities, except the
Trustee’s certificates of authentication, shall be taken as the statements of
the Company, and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness. The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Securities. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of the Securities or the proceeds thereof.

 

SECTION 6.11       Appointment of
Authenticating Agent.

 

(a)           The Trustee may appoint an
Authenticating Agent or Agents with respect to the Securities, which shall be
authorized to act on behalf of the Trustee to authenticate Securities issued
upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 3.6, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation organized and doing business under the laws of the United
States of America, or of any State or Territory thereof or the District of
Columbia, authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of not less than

 

 

$50,000,000
and subject to supervision or examination by Federal or state authority. If
such Authenticating Agent publishes reports of condition at least annually
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section 6.11 the combined
capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section 6.11, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section 6.11.

 

(b)           Any Person into which an
Authenticating Agent may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any
Person succeeding to all or substantially all of the corporate trust business
of an Authenticating Agent shall be the successor Authenticating Agent
hereunder, provided such Person shall be otherwise eligible under this Section
6.11, without the execution or filing of any paper or any further act on
the part of the Trustee or the Authenticating Agent.

 

(c)           An Authenticating Agent may resign at
any time by giving written notice thereof to the Trustee and to the Company.
The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or in
case at any time such Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 6.11, the Trustee may
appoint a successor Authenticating Agent eligible under the provisions of this Section
6.11, which shall be acceptable to the Company, and shall give notice of
such appointment to all Holders. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent.

 

(d)           The Company agrees to pay to each
Authenticating Agent from time to time reasonable compensation for its services
under this Section 6.11 in such amounts as the Company and the
Authenticating Agent shall agree from time to time.

 

(e)           If an appointment of an
Authenticating Agent is made pursuant to this Section 6.11, the
Securities may have endorsed thereon, in addition to the Trustee’s certificate
of authentication, an alternative certificate of authentication in the
following form:

 

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

 

	
  Dated:

  	
   

  
	
   

  
	
   

  	
  JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION, not in its
  individual capacity, but

  solely as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authenticating Agent

  

 

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

ARTICLE VII

 

HOLDER’S LISTS AND REPORTS BY COMPANY

 

SECTION 7.1         Company to Furnish Trustee
Names and Addresses of Holders.

 

The Company will furnish or cause to be furnished to the Trustee:

 

(a)           semiannually, on or before June 30
and December 31 of each year, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders as of a date not
more than fifteen (15) days prior to the delivery thereof, and

 

(b)           at such other times as the Trustee
may request in writing, within thirty (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 fifteen (15) days prior to the time such list is furnished,

 

in each case to the extent such information is in the possession or
control of the Company and has not otherwise been received by the Trustee in
its capacity as Securities Registrar.

 

SECTION 7.2         Preservation of
Information, Communications to Holders.

 

(a)           The Trustee shall preserve, in as
current a form as is reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as provided in Section
7.1 and the names and addresses of Holders received by the Trustee in its
capacity as Securities Registrar. The Trustee may destroy any list furnished to
it as provided in Section 7.1 upon receipt of a new list so furnished.

 

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

 

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

 

SECTION 7.3         Reports by Company.

 

(a)           The Company shall furnish to the
Holders and to prospective purchasers of Securities, upon their request, the
information required to be furnished pursuant to Rule 144A(d)(4) under the
Securities Act. The delivery requirement set forth in the preceding sentence
may be satisfied by compliance with Section 7.3(b) hereof.

 

 

(b)           The Company shall furnish to each of
(i) the Trustee, (ii) the Holders and to subsequent holders of Securities,
(iii) Taberna Capital Management, LLC, 450 Park Avenue, 23rd Floor,
New York, New York 10022, Attn: Mitchell Kahn and (iv) any beneficial owner of
the Securities reasonably identified to the Company (which identification may
be made either by such beneficial owner or by Taberna Capital Management LLC),
a duly completed and executed certificate substantially and substantively in
the form attached hereto as Exhibit A, including the financial
statements referenced in such Exhibit, which certificate and financial
statements shall be so furnished by the Company not later than forty-five (45)
days after the end of each of the first three fiscal quarters of each fiscal
year of the Company and not later than ninety (90) days after the end of each
fiscal year of the Company. The delivery requirements under this Section
7.3(b) may be satisfied by compliance with Section 8.16(b) of the Trust
Agreement.

 

(c)           If the Company intends to file its
annual and quarterly information with the Securities and Exchange Commission
(the “Commission”) in
electronic form pursuant to Regulation S-T of the Commission using the
Commission’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system, the Company shall
notify the Trustee in the manner prescribed herein of each such annual and
quarterly filing. The Trustee is hereby authorized and directed to access the
EDGAR system for purposes of retrieving the financial information so filed.
Compliance with the foregoing shall constitute delivery by the Company of its
financial statements to the Trustee in compliance with the provisions of
Section 314(a) of the Trust Indenture Act, if applicable. The Trustee shall
have no duty to search for or obtain any electronic or other filings that the
Company makes with the Commission, regardless of whether such filings are
periodic, supplemental or otherwise. Delivery of reports, information and
documents to the Trustee pursuant to this Section 7.3(c) shall be solely
for purposes of compliance with this Section 7.3(c) and, if applicable,
with Section 314(a) of the Trust Indenture Act. The Trustee’s receipt of such
reports, information and documents shall not constitute notice to it of the
content thereof or any matter determinable from the content thereof, including
the Company’s compliance with any of its covenants hereunder, as to which the
Trustee is entitled to rely upon Officers’ Certificates.

 

ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 

SECTION 8.1         Company May Consolidate,
Etc., Only on Certain Terms.

 

The Company shall not consolidate with or merge into any other Person
or convey, transfer or lease its properties and assets substantially as an
entirety to any Person, and no Person shall consolidate with or merge into the
Company or convey, transfer or lease its properties and assets substantially as
an entirety to the Company, unless:

 

(a)           if the Company shall consolidate with
or merge into another Person or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, the entity formed by such
consolidation or into which the Company is merged or the Person that acquires
by conveyance or transfer, or that leases, the properties and assets of the
Company substantially as an entirety shall be an entity organized and existing
under the laws of the United States of America or any State or Territory
thereof or the District of Columbia and shall expressly assume,

 

 

by
an indenture supplemental hereto, executed and delivered to the Trustee, in
form reasonably satisfactory to the Trustee, the due and punctual payment of
the principal of and any premium and interest (including any Additional
Interest) on all the Securities and the performance of every covenant of this
Indenture on the part of the Company to be performed or observed;

 

(b)           immediately after giving effect to
such transaction, no Event of Default, and no event that, after notice or lapse
of time, or both, would constitute an Event of Default, shall have happened and
be continuing; and

 

(c)           the Company has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, any
such supplemental indenture comply with this Article VIII and that all
conditions precedent herein provided for relating to such transaction have been
complied with; and the Trustee may rely upon such Officers’ Certificate and
Opinion of Counsel as conclusive evidence that such transaction complies with
this Section 8.1.

 

SECTION 8.2         Successor Company
Substituted.

 

(a)           Upon any consolidation or merger by
the Company with or into any other Person, or any conveyance, transfer or lease
by the Company of its properties and assets substantially as an entirety to any
Person in accordance with Section 8.1 and the execution and delivery to
the Trustee of the supplemental indenture described in Section 8.1(a),
the successor entity formed by such consolidation or into which the Company is
merged or to which such conveyance, transfer or lease is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if such successor Person had been
named as the Company herein; and in the event of any such conveyance or
transfer, following the execution and delivery of such supplemental indenture,
the Company shall be discharged from all obligations and covenants under the
Indenture and the Securities.

 

(b)           Such successor Person may cause to be
executed, and may issue either in its own name or in the name of the Company,
any or all of the Securities issuable hereunder that theretofore shall not have
been signed by the Company and delivered to the Trustee; and, upon the order of
such successor Person instead of the Company and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall
authenticate and shall deliver any Securities that previously shall have been
signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities that such successor Person thereafter shall
cause to be executed and delivered to the Trustee on its behalf. All the
Securities so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Securities theretofore or thereafter issued in
accordance with the terms of this Indenture.

 

(c)           In case of any such consolidation,
merger, sale, conveyance or lease, such changes in phraseology and form may be
made in the Securities thereafter to be issued as may be appropriate to reflect
such occurrence.

 

 

ARTICLE IX

 

SUPPLEMENTAL INDENTURES

 

SECTION 9.1         Supplemental Indentures
without Consent of Holders.

 

Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form reasonably
satisfactory to the Trustee, for any of the following purposes:

 

(a)           to evidence the succession of another
Person to the Company, and the assumption by any such successor of the
covenants of the Company herein and in the Securities; or

 

(b)           to evidence and provide for the
acceptance of appointment hereunder by a successor trustee; or

 

(c)           to cure any ambiguity, to correct or
supplement any provision herein that may be defective or inconsistent with any
other provision herein, or to make or amend any other provisions with respect
to matters or questions arising under this Indenture, which shall not be
inconsistent with the other provisions of this Indenture, provided that such action pursuant to this
clause (b) shall not adversely affect in any material respect the interests of
any Holders or the holders of the Preferred Securities; or

 

(d)           to comply with the rules and
regulations of any securities exchange or automated quotation system on which
any of the Securities may be listed, traded or quoted; or

 

(e)           to add to the covenants, restrictions
or obligations of the Company or to add to the Events of Default, provided that such action pursuant to this
clause (c) shall not adversely affect in any material respect the interests of
any Holders or the holders of the Preferred Securities; or

 

(f)            to modify, eliminate or add to any provisions
of the Indenture or the Securities to such extent as shall be necessary to
ensure that the Securities are treated as indebtedness of the Company for
United States Federal income tax purposes, provided
that such action pursuant to this clause (d) shall not adversely affect in any
material respect the interests of any Holders or the holders of the Preferred
Securities.

 

SECTION 9.2         Supplemental Indentures
with Consent of Holders.

 

(a)           Subject to Section 9.1, with
the consent of the Holders of not less than a majority in aggregate principal
amount of the Outstanding Securities, by Act of said Holders delivered to the
Company and the Trustee, the Company, when authorized by a Board Resolution,
and the Trustee may enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of the Holders of Securities under this Indenture; provided that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding
Security,

 

 

(i)            change
the Stated Maturity of the principal or any premium of any Security or change
the date of payment of any installment of interest (including any Additional
Interest) on any Security, or reduce the principal amount thereof or the rate
of interest thereon or any premium payable upon the redemption thereof or
change the place of payment where, or the coin or currency in which, any
Security or interest thereon is payable, or restrict or impair the right to
institute suit for the enforcement of any such payment on or after such date,
or

 

(ii)           reduce
the percentage in aggregate principal amount of the Outstanding Securities, the
consent of whose Holders is required for any such supplemental indenture, or
the consent of whose Holders is required for any waiver of compliance with any
provision of this Indenture or of defaults hereunder and their consequences
provided for in this Indenture, or modify any of the provisions of this Section
9.2, Section 5.13 or Section 10.7, except to increase any
percentage in aggregate principal amount of the Outstanding Securities, the
consent of whose Holders is required for any reason, or to provide that certain
other provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each Security;

 

provided,  further,
that, so long as any Preferred Securities remain outstanding, no amendment
under this Section 9.2 shall be effective until the holders of a
majority in Liquidation Amount of the Preferred Securities shall have consented
to such amendment; provided, further,
that if the consent of the Holder of each Outstanding Security is required for
any amendment under this Indenture, such amendment shall not be effective until
the holder of each Outstanding Preferred Security shall have consented to such
amendment.

 

(b)           It shall not be necessary for any Act
of Holders under this Section 9.2 to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such Act shall
approve the substance thereof.

 

SECTION 9.3         Execution of Supplemental
Indentures.

 

In executing or accepting the additional trusts created by any
supplemental indenture permitted by this Article IX or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be entitled
to receive, and shall be fully protected in conclusively relying upon, an
Officers’ Certificate and an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture, and
that all conditions precedent herein provided for relating to such action have
been complied with. The Trustee may, but shall not be obligated to, enter into
any such supplemental indenture that affects the Trustee’s own rights, duties,
indemnities or immunities under this Indenture or otherwise. Copies of the
final form of each supplemental indenture shall be delivered by the Trustee at
the expense of the Company to each Holder, and, if the Trustee is the Property
Trustee, to each holder of Preferred Securities, promptly  after the execution thereof.

 

SECTION 9.4         Effect of Supplemental
Indentures.

 

Upon the execution of any supplemental indenture under this Article
IX, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of

 

 

this Indenture for all
purposes; and every Holder of Securities and every holder of Preferred
Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

 

SECTION 9.5         Reference in Securities to
Supplemental Indentures.

 

Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article IX may, and shall if
required by the Company, bear a notation in form approved by the Company as to
any matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities so modified as to conform, in the opinion of the
Company, to any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities.

 

ARTICLE X

COVENANTS

 

SECTION 10.1       Payment of Principal,
Premium, if any, and Interest.

 

The Company covenants and agrees for the benefit of the Holders of the
Securities that it will duly and punctually pay the principal of and any
premium and interest (including any Additional Interest) on the Securities in
accordance with the terms of the Securities and this Indenture. As of the date
of this Indenture, the Company represents that it has no present intention to
exercise its right under Section 3.9 to defer payments of interest on
the Securities.

 

SECTION 10.2       Money for Security
Payments to be Held in Trust.

 

(a)           If the Company shall at any time act
as its own Paying Agent with respect to the Securities, it will, on or before
each due date of the principal of and any premium or interest (including any
Additional Interest) on the Securities, segregate and hold in trust for the benefit
of the Persons entitled thereto a sum sufficient to pay the principal and any
premium or interest (including Additional Interest) so becoming due until such
sums shall be paid to such Persons or otherwise disposed of as herein provided,
and will promptly notify the Trustee in writing of its failure so to act.

 

(b)           Whenever the Company shall have one
or more Paying Agents, it will, prior to 10:00 a.m., New York City time, on
each due date of the principal of or any premium or interest (including any Additional
Interest) on any Securities, deposit with a Paying Agent a sum sufficient to
pay such amount, such sum to be held as provided in the Trust Indenture Act and
(unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its failure so to act.

 

(c)           The Company will cause each Paying
Agent for the Securities other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee,
subject to the provisions of this Section 10.2, that such Paying Agent
will (i) comply with the provisions of this Indenture and the Trust Indenture
Act applicable to it as a Paying Agent and (ii) during the continuance of any
default by the Company (or any other obligor upon the Securities) in the making
of any payment in respect of the Securities, upon the

 

 

written
request of the Trustee, forthwith pay to the Trustee all sums held in trust by
such Paying Agent for payment in respect of the Securities.

 

(d)           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 by Company Order 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 trusts 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.

 

(e)           Any money deposited with the Trustee
or any Paying Agent, or then held by the Company in trust for the payment of
the principal of and any premium or interest (including any Additional
Interest) on any Security and remaining unclaimed for two years after such
principal and any premium or interest (including Additional Interest) has
become due and payable shall (unless otherwise required by mandatory provision
of applicable escheat or abandoned or unclaimed property law) be paid on
Company Request to the Company, or (if then held by the Company) shall (unless
otherwise required by mandatory provision of applicable escheat or abandoned or
unclaimed property law) be discharged from such trust; and the Holder of such
Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in the Borough of Manhattan, The City
of New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than thirty (30) days from the date
of such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.

 

SECTION 10.3       Statement as to Compliance.

 

The Company shall deliver to the Trustee, within one hundred twenty
(120) days after the end of each fiscal year of the Company ending after the
date hereof, an Officers’ Certificate covering the preceding calendar year,
stating whether or not to the knowledge of the signers thereof the Company is
in default in the performance or observance of any of the terms, provisions and
conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder), and if the Company shall be in
default, specifying all such defaults and the nature and status thereof of
which they may have knowledge. The delivery requirements of this Section 10.3 may
be satisfied by compliance with Section 8.16(a) of the Trust Agreement.

 

SECTION 10.4       Calculation Agent.

 

(a)           The Company hereby agrees that for so
long as any of the Securities remain Outstanding, there will at all times be an
agent appointed to calculate LIBOR in respect of each Interest Payment Date in
accordance with the terms of Schedule A (the “Calculation Agent”).

 

 

The
Company has initially appointed the Property Trustee as Calculation Agent for
purposes of determining LIBOR for each Interest Payment Date. The Calculation
Agent may be removed by the Company at any time. Notwithstanding the foregoing,
so long as the Property Trustee holds any of the Securities, the Calculation
Agent shall be the Property Trustee. If the Calculation Agent is unable or
unwilling to act as such or is removed by the Company, the Company will
promptly appoint as a replacement Calculation Agent the London office of a
leading bank which is engaged in transactions in Eurodollar deposits in the
international Eurodollar market and which does not control or is not controlled
by or under common control with the Company or its Affiliates. The Calculation
Agent may not resign its duties without a successor having been duly appointed.

 

(b)           The Calculation Agent shall be
required to agree that, as soon as possible after 11:00 a.m. (London time) on
each LIBOR Determination Date (as defined in Schedule A), but in no
event later than 11:00 a.m. (London time) on the Business Day immediately
following each LIBOR Determination Date, the Calculation Agent will calculate
the interest rate (the Interest Payment shall be rounded to the nearest cent,
with half a cent being rounded upwards) for the related Interest Payment Date,
and will communicate such rate and amount to the Company, the Trustee, each
Paying Agent and the Depositary. The Calculation Agent will also specify to the
Company the quotations upon which the foregoing rates and amounts are based
and, in any event, the Calculation Agent shall notify the Company before 5:00
p.m. (London time) on each LIBOR Determination Date that either:  (i) it has determined or is in the process of
determining the foregoing rates and amounts or (ii) it has not determined and
is not in the process of determining the foregoing rates and amounts, together
with its reasons therefor. The Calculation Agent’s determination of the
foregoing rates and amounts for any Interest Payment Date will (in the absence
of manifest error) be final and binding upon all parties. For the sole purpose
of calculating the interest rate for the Securities, “Business Day” shall be
defined as any day on which dealings in deposits in Dollars are transacted in
the London interbank market.

 

SECTION 10.5       Additional Tax Sums.

 

So long as no Event of Default has occurred and is continuing, if (a)
the Trust is the Holder of all of the Outstanding Securities and (b) a Tax
Event described in clause (i) or (iii) in the definition of Tax Event in Section
1.1 hereof has occurred and is continuing, the Company shall pay to the
Trust (and its permitted successors or assigns under the related Trust
Agreement) for so long as the Trust (or its permitted successor or assignee) is
the registered holder of the Outstanding Securities, such amounts as may be
necessary in order that the amount of Distributions (including any Additional
Interest Amount (as defined in the Trust Agreement)) then due and payable by
the Trust on the Preferred Securities and Common Securities that at any time
remain outstanding in accordance with the terms thereof shall not be reduced as
a result of any Additional Taxes arising from such Tax Event (additional such
amounts payable by the Company to the Trust, the “Additional Tax Sums”).
Whenever in this Indenture or the Securities there is a reference in any
context to the payment of principal of or interest on the Securities, such
mention shall be deemed to include mention of the payments of the Additional
Tax Sums provided for in this Section 10.5 to the extent that, in such
context, Additional Tax Sums are, were or would be payable in respect thereof
pursuant to the provisions of this Section 10.5 and express mention of
the payment of Additional Tax Sums (if applicable) in any provisions hereof
shall not be construed as excluding Additional Tax Sums in those provisions
hereof where such

 

 

express mention is not made; provided that the deferral of the payment
of interest pursuant to Section 3.9 on the Securities shall not defer
the payment of any Additional Tax Sums that may be due and payable.

 

SECTION 10.6       Additional Covenants.

 

(a)           The Company covenants and agrees with
each Holder of Securities that if an Event of Default shall have occurred and
be continuing or the Company shall have given notice of its election to begin
an Extension Period with respect to the Securities or such Extension Period, or
any extension thereof, shall be continuing, it shall not (i) declare or pay any
dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any units of the Company’s limited
partnership interests, (ii) vote in favor of or permit or otherwise allow any
of its subsidiaries to declare or pay any dividends or distributions on, or
redeem, purchase, acquire or make a liquidation payment with respect to or
otherwise retire, any shares of such subsidiaries preferred stock (for the
avoidance of doubt, whether such preferred stock is perpetual or otherwise), or
(iii) make any payment of principal of or any interest or premium, if any, on
or repay, repurchase or redeem any debt securities of the Company that rank pari passu in all respects with or junior in interest to the Securities
(other than (A) repurchases, redemptions or other acquisitions of units of
limited partnership interests of the Company in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
any one or more employees, officers, directors or consultants, in connection
with a dividend reinvestment or limited partnership interests purchase plan or
in connection with the issuance of limited partnership interests of the Company
(or securities convertible into or exercisable for such units of limited
partnership interests) as consideration in an acquisition transaction entered
into prior to the Event of Default or the applicable Extension Period, (B) as a
result of an exchange or conversion of any class or series of the Company’s
limited partnership interests (or any capital stock or limited partnership
interests of a Subsidiary of the Company) for any class or series of the
Company’s limited partnership interests or of any class or series of the
Company’s indebtedness for any class or series of the Company’s limited
partnership interests, (C) the purchase of fractional interests in the
Company’s limited partnership interests pursuant to the conversion or exchange
provisions of such limited partnership interests or the security being
converted or exchanged, (D) any declaration of a dividend in connection with
any Rights Plan, the issuance of rights, limited partnership interests or other
property under any Rights Plan or the redemption or repurchase of rights
pursuant thereto or (E) any dividend in the form of limited partnership
interests, warrants, options or other rights where the dividend limited
partnership interests or the limited partnership interests issuable upon
exercise of such warrants, options or other rights is the same limited
partnership interests as that on which the dividend is being paid or ranks pari passu with or junior to such limited
partnership interests).

 

(b)           The Company also covenants with each
Holder of Securities (i) to hold, directly or indirectly, one hundred percent
(100%) of the Common Securities of the Trust, provided
that any permitted successor of the Company hereunder may succeed to the
Company’s ownership of such Common Securities, (ii) as holder of such Common
Securities, not to voluntarily dissolve, wind-up or liquidate the Trust other
than (A) in connection with a distribution of the Securities to the holders of
the Preferred Securities in liquidation of the Trust or (B) in connection with
certain mergers, consolidations or amalgamations permitted by the Trust
Agreement and (iii) to use its reasonable commercial efforts, consistent with
the terms and provisions of the Trust Agreement,

 

 

to cause the Trust to continue to be taxable as a grantor trust and not
as a corporation for United States Federal income tax purposes.

 

(c)           The Company also agrees to use its
reasonable best efforts to meet the requirements to qualify, for the fiscal
year ending December 31, 2004, and all future years, as a real estate
investment trust under the Internal Revenue Code of 1986, as amended.

 

SECTION 10.7       Waiver of Covenants.

 

The Company may omit in
any particular instance to comply with any covenant or condition contained in Section
10.6 if, before or after the time for such compliance, the Holders of at
least a majority in aggregate principal amount of the Outstanding Securities
shall, by Act of such Holders, and at least a majority of the aggregate
Liquidation Amount of the Preferred Securities then outstanding, by consent of
such holders, either waive such compliance in such instance or generally waive
compliance with such covenant or condition, but no such waiver shall extend to
or affect such covenant or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the Company
in respect of any such covenant or condition shall remain in full force and
effect.

 

SECTION 10.8       Treatment of Securities.

 

The Company will treat the Securities as indebtedness, and the amounts,
other than payments of principal, payable in respect of the principal amount of
such Securities as interest, for all U.S. federal income tax purposes. All
payments in respect of the Securities will be made free and clear of U.S.
withholding tax to any beneficial owner thereof that has provided an Internal
Revenue Service Form W-9 or W-8BEN (or any substitute or successor form)
establishing its U.S. or non-U.S. status for U.S. federal income tax purposes,
or any other applicable form establishing a complete exemption from U.S.
withholding tax.

 

ARTICLE XI

 

REDEMPTION OF SECURITIES

 

SECTION 11.1       Optional Redemption.

 

The Company may, at its option, on any Interest Payment Date, on or
after January 30, 2011, redeem the Securities in whole at any time or in part
from time to time, at a Redemption Price equal to one hundred percent (100%) of
the principal amount thereof (or of the redeemed portion thereof, as
applicable), together, in the case of any such redemption, with accrued and
unpaid interest, including any Additional Interest, through but excluding the
date fixed as the Redemption Date (the “Optional
Redemption Price”).

 

SECTION 11.2       Special Event Redemption.

 

Prior to January 30, 2011, upon the occurrence and during the
continuation of a Special Event, the Company may, at its option, redeem the
Securities, in whole but not in part, at a Redemption Price equal to one
hundred seven and one half percent (107.5%) of the principal amount thereof,
together, in the case of any such redemption, with accrued interest, including

 

 

any Additional Interest,
through but excluding the date fixed as the Redemption Date (the “Special Redemption Price”).

 

SECTION 11.3       Election to Redeem; Notice
to Trustee.

 

The election of the Company to redeem any Securities, in whole or in
part, shall be evidenced by or pursuant to a Board Resolution. In case of any
redemption at the election of the Company, the Company shall, not less than
forty-five (45) days and not more than seventy-five (75) days prior to the
Redemption Date (unless a shorter notice shall be satisfactory to the Trustee),
notify the Trustee and the Property Trustee under the Trust Agreement in
writing of such date and of the principal amount of the Securities to be redeemed
and provide the additional information required to be included in the notice or
notices contemplated by Section 11.5. In the case of any redemption of
Securities, in whole or in part, (a) prior to the expiration of any restriction
on such redemption provided in this Indenture or the Securities or (b) pursuant
to an election of the Company which is subject to a condition specified in this
Indenture or the Securities, the Company shall furnish the Trustee with an
Officers’ Certificate and an Opinion of Counsel evidencing compliance with such
restriction or condition.

 

SECTION 11.4       Selection of Securities to
be Redeemed.

 

(a)           If less than all the Securities are
to be redeemed, the particular Securities to be redeemed shall be selected and
redeemed on a pro rata basis not more than sixty (60) days prior to the
Redemption Date by the Trustee from the Outstanding Securities not previously
called for redemption, provided
that the unredeemed portion of the principal amount of any Security shall be in
an authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security.

 

(b)           The Trustee shall promptly notify the
Company in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed. For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Security redeemed or to be redeemed only in
part, to the portion of the principal amount of such Security that has been or
is to be redeemed.

 

(c)           The provisions of paragraphs (a) and
(b) of this Section 11.4 shall not apply with respect to any redemption
affecting only a single Security, whether such Security is to be redeemed in
whole or in part. In the case of any such redemption in part, the unredeemed
portion of the principal amount of the Security shall be in an authorized
denomination (which shall not be less than the minimum authorized denomination)
for such Security.

 

SECTION 11.5       Notice of Redemption.

 

(a)           Notice of redemption shall be given
not later than the thirtieth (30th) day, and not earlier than the sixtieth (60th) day, prior to the Redemption
Date to each Holder of Securities to be redeemed, in whole or in part (unless a
shorter notice shall be satisfactory to the Property Trustee under the related
Trust Agreement).

 

 

(b)           With respect to Securities to be
redeemed, in whole or in part, each notice of redemption shall state:

 

(i)            the
Redemption Date;

 

(ii)           the
Redemption Price or, if the Redemption Price cannot be calculated prior to the
time the notice is required to be sent, the estimate of the Redemption Price,
as calculated by the Company, together with a statement that it is an estimate
and that the actual Redemption Price will be calculated on the fifth Business
Day prior to the Redemption Date (and if an estimate is provided, a further
notice shall be sent of the actual Redemption Price on the date that such Redemption
Price is calculated);

 

(iii)          if
less than all Outstanding Securities are to be redeemed, the identification
(and, in the case of partial redemption, the respective principal amounts) of
the amount of and particular Securities to be redeemed;

 

(iv)          that
on the Redemption Date, the Redemption Price will become due and payable upon
each such Security or portion thereof, and that any interest (including any
Additional Interest) on such Security or such portion, as the case may be,
shall cease to accrue on and after said date; and

 

(v)           the
place or places where such Securities are to be surrendered for payment of the
Redemption Price.

 

(c)           Notice of redemption of Securities to
be redeemed, in whole or in part, at the election of the Company shall be given
by the Company or, at the Company’s request, by the Trustee in the name and at
the expense of the Company and shall be irrevocable. The notice if mailed in
the manner provided above shall be conclusively presumed to have been duly
given, whether or not the Holder receives such notice. In any case, a failure
to give such notice by mail or any defect in the notice to the Holder of any
Security designated for redemption as a whole or in part shall not affect the
validity of the proceedings for the redemption of any other Security.

 

SECTION 11.6       Deposit of Redemption
Price.

 

Prior to 10:00 a.m., New York City time, on the Redemption Date
specified in the notice of redemption given as provided in Section 11.5,
the Company will deposit with the Trustee or with one or more Paying Agents (or
if the Company is acting as its own Paying Agent, the Company will segregate
and hold in trust as provided in Section 10.2) an amount of money
sufficient to pay the Redemption Price of, and any accrued interest (including
any Additional Interest) on, all the Securities (or portions thereof) that are
to be redeemed on that date.

 

SECTION 11.7       Payment of Securities
Called for Redemption.

 

(a)           If any notice of redemption has been
given as provided in Section 11.5, the Securities or portion of
Securities with respect to which such notice has been given shall become due
and payable on the date and at the place or places stated in such notice at the
applicable Redemption Price, together with accrued interest (including any
Additional Interest) to the Redemption Date. On presentation and surrender of
such Securities at a Place of Payment

 

 

specified
in such notice, the Securities or the specified portions thereof shall be paid
and redeemed by the Company at the applicable Redemption Price, together with
accrued interest (including any Additional Interest) to the Redemption Date.

 

(b)           Upon presentation of any Security
redeemed in part only, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder thereof, at the expense of the Company,
a new Security or Securities, of authorized denominations, in aggregate
principal amount equal to the unredeemed portion of the Security so presented
and having the same Original Issue Date, Stated Maturity and terms.

 

(c)           If any Security called for redemption
shall not be so paid upon surrender thereof for redemption, the principal of
and any premium on such Security shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in the Security.

 

ARTICLE XII

 

SUBORDINATION OF SECURITIES

 

SECTION 12.1       Securities Subordinate to
Senior Debt.

 

The Company covenants and agrees, and each Holder of a Security, by its
acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Article XII, the payment of the
principal of and any premium and interest (including any Additional Interest)
on each and all of the Securities are hereby expressly made subordinate and
subject in right of payment to the prior payment in full of all Senior Debt.

 

SECTION 12.2       No Payment When Senior
Debt in Default; Payment Over of Proceeds Upon Dissolution, Etc.

 

(a)           In the event and during the
continuation of any default by the Company in the payment of any principal of
or any premium or interest on any Senior Debt (following any grace period, if
applicable) when the same becomes due and payable, whether at maturity or at a
date fixed for prepayment or by declaration of acceleration or otherwise, then,
upon written notice of such default to the Company by the holders of such
Senior Debt or any trustee therefor, unless and until such default shall have
been cured or waived or shall have ceased to exist, no direct or indirect
payment (in cash, property, securities, by set-off or otherwise) shall be made
or agreed to be made on account of the principal of or any premium or interest
(including any Additional Interest) on any of the Securities, or in respect of
any redemption, repayment, retirement, purchase or other acquisition of any of
the Securities.

 

(b)           In the event of a bankruptcy,
insolvency or other proceeding described in clause (d) or (e) of the definition
of Event of Default (each such event, if any, herein sometimes referred to as a
“Proceeding”), all Senior Debt
(including any interest thereon accruing after the commencement of any such
proceedings) shall first be paid in full before any payment or distribution,
whether in cash, securities or other property, shall be made to any Holder of
any of the Securities on account thereof. Any payment or distribution, whether
in cash, securities or other property (other than securities of the Company or
any other entity provided for by a plan of

 

 

reorganization
or readjustment the payment of which is subordinate, at least to the extent
provided in these subordination provisions with respect to the indebtedness
evidenced by the Securities, to the payment of all Senior Debt at the time
outstanding and to any securities issued in respect thereof under any such plan
of reorganization or readjustment), which would otherwise (but for these
subordination provisions) be payable or deliverable in respect of the
Securities shall be paid or delivered directly to the holders of Senior Debt in
accordance with the priorities then existing among such holders until all
Senior Debt  (including any interest
thereon accruing after the commencement of any Proceeding) shall have been paid
in full.

 

(c)           In the event of any Proceeding, after
payment in full of all sums owing with respect to Senior Debt, the Holders of
the Securities, together with the holders of any obligations of the Company
ranking on a parity with the Securities, shall be entitled to be paid from the
remaining assets of the Company the amounts at the time due and owing on
account of unpaid principal of and any premium and interest (including any
Additional Interest) on the Securities and such other obligations before any
payment or other distribution, whether in cash, property or otherwise, shall be
made on account of any limited partnership interests of the Company or any
obligations of the Company ranking junior to the Securities and such other
obligations. If, notwithstanding the foregoing, any payment or distribution of
any character on any security, whether in cash, securities or other property
(other than securities of the Company or any other entity provided for by a
plan of reorganization or readjustment the payment of which is subordinate, at
least to the extent provided in these subordination provisions with respect to
the indebtedness evidenced by the Securities, to the payment of all Senior Debt
at the time outstanding and to any securities issued in respect thereof under
any such plan of reorganization or readjustment) shall be received by the
Trustee or any Holder in contravention of any of the terms hereof and before
all Senior Debt shall have been paid in full, such payment or distribution or
security shall be received in trust for the benefit of, and shall be paid over
or delivered and transferred to, the holders of the Senior Debt at the time
outstanding in accordance with the priorities then existing among such holders
for application to the payment of all Senior Debt remaining unpaid, to the
extent necessary to pay all such Senior Debt (including any interest thereon
accruing after the commencement of any Proceeding) in full. In the event of the
failure of the Trustee or any Holder to endorse or assign any such payment,
distribution or security, each holder of Senior Debt is hereby irrevocably
authorized to endorse or assign the same.

 

(d)           The Trustee and the Holders, at the
expense of the Company, shall take such reasonable action  (including the delivery of this Indenture to
an agent for any holders of Senior Debt or consent to the filing of a financing
statement with respect hereto) as may, in the opinion of counsel designated by
the holders of a majority in principal amount of the Senior Debt at the time
outstanding, be necessary or appropriate to assure the effectiveness of the
subordination effected by these provisions.

 

(e)           The provisions of this Section
12.2 shall not impair any rights, interests, remedies or powers of any
secured creditor of the Company in respect of any security interest the
creation of which is not prohibited by the provisions of this Indenture.

 

(f)            The securing of any obligations of
the Company, otherwise ranking on a parity with the Securities or ranking
junior to the Securities, shall not be deemed to prevent such

 

 

obligations
from constituting, respectively, obligations ranking on a parity with the
Securities or ranking junior to the Securities.

 

SECTION 12.3       Payment Permitted If No
Default.

 

Nothing contained in this Article XII or elsewhere in this
Indenture or in any of the Securities shall prevent (a) the Company, at any
time, except during the pendency of the conditions described in paragraph (a)
of Section 12.2 or of any Proceeding referred to in Section 12.2,
from making payments at any time of principal of and any premium or interest
(including any Additional Interest) on the Securities or (b) the application by
the Trustee of any moneys deposited with it hereunder to the payment of or on
account of the principal of and any premium or interest (including any
Additional Interest) on the Securities or the retention of such payment by the
Holders, if, at the time of such application by the Trustee, it did not have
knowledge (in accordance with Section 12.8) that such payment would have
been prohibited by the provisions of this Article XII, except as
provided in Section 12.8.

 

SECTION 12.4       Subrogation to Rights of
Holders of Senior Debt.

 

Subject to the payment in full of all amounts due or to become due on
all Senior Debt, or the provision for such payment in cash or cash equivalents
or otherwise in a manner satisfactory to the holders of Senior Debt, the
Holders of the Securities shall be subrogated to the extent of the payments or
distributions made to the holders of such Senior Debt pursuant to the
provisions of this Article XII (equally and ratably with the holders of
all indebtedness of the Company that by its express terms is subordinated to
Senior Debt of the Company to substantially the same extent as the Securities
are subordinated to the Senior Debt and is entitled to like rights of
subrogation by reason of any payments or distributions made to holders of such
Senior Debt) to the rights of the holders of such Senior Debt to receive
payments and distributions of cash, property and securities applicable to the
Senior Debt until the principal of and any premium and interest (including any
Additional Interest) on the Securities shall be paid in full. For purposes of
such subrogation, no payments or distributions to the holders of the Senior
Debt of any cash, property or securities to which the Holders of the Securities
or the Trustee would be entitled except for the provisions of this Article
XII, and no payments made pursuant to the provisions of this Article XII
to the holders of Senior Debt by Holders of the Securities or the Trustee,
shall, as among the Company, its creditors other than holders of Senior Debt,
and the Holders of the Securities, be deemed to be a payment or distribution by
the Company to or on account of the Senior Debt.

 

SECTION 12.5       Provisions Solely to
Define Relative Rights.

 

The provisions of this Article XII are and are intended solely
for the purpose of defining the relative rights of the Holders of the
Securities on the one hand and the holders of Senior Debt on the other hand.
Nothing contained in this Article XII or elsewhere in this Indenture or
in the Securities is intended to or shall (a) impair, as between the Company
and the Holders of the Securities, the obligations of the Company, which are
absolute and unconditional, to pay to the Holders of the Securities the
principal of and any premium and interest (including any Additional Interest)
on the Securities as and when the same shall become due and payable in
accordance with their terms, (b) affect the relative rights against

 

 

the Company of the Holders of
the Securities and creditors of the Company other than their rights in relation
to the holders of Senior Debt or (c) prevent the Trustee or the Holder of any
Security (or to the extent expressly provided herein, the holder of any
Preferred Security) from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, including filing and voting
claims in any Proceeding, subject to the rights, if any, under this Article
XII of the holders of Senior Debt to receive cash, property and securities
otherwise payable or deliverable to the Trustee or such Holder.

 

SECTION 12.6       Trustee to Effectuate
Subordination.

 

Each Holder of a Security by his or her acceptance thereof authorizes
and directs the Trustee on his or her behalf to take such action as may be
necessary or appropriate to acknowledge or effectuate the subordination
provided in this Article XII and appoints the Trustee his or her
attorney-in-fact for any and all such purposes.

 

SECTION 12.7       No Waiver of Subordination
Provisions.

 

(a)           No right of any present or future
holder of any Senior Debt to enforce subordination as herein provided shall at
any time in any way be prejudiced or impaired by any act or failure to act on
the part of the Company or by any act or failure to act, in good faith, by any
such holder, or by any noncompliance by the Company with the terms, provisions
and covenants of this Indenture, regardless of any knowledge thereof that any
such holder may have or be otherwise charged with.

 

(b)           Without in any way limiting the
generality of paragraph (a) of this Section 12.7, the holders of Senior
Debt may, at any time and from to time, without the consent of or notice to the
Trustee or the Holders of the Securities, without incurring responsibility to
such Holders of the Securities and without impairing or releasing the
subordination provided in this Article XII or the obligations hereunder
of such Holders of the Securities to the holders of Senior Debt, do any one or
more of the following: (i) change the manner, place or terms of payment or
extend the time of payment of, or renew or alter, Senior Debt, or otherwise
amend or supplement in any manner Senior Debt or any instrument evidencing the
same or any agreement under which Senior Debt is outstanding, (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing Senior Debt, (iii) release any Person liable in any manner
for the payment of Senior Debt and (iv) exercise or refrain from exercising any
rights against the Company and any other Person.

 

SECTION 12.8       Notice to Trustee.

 

(a)           The Company shall give prompt written
notice to a Responsible Officer of the Trustee of any fact known to the Company
that would prohibit the making of any payment to or by the Trustee in respect
of the Securities. Notwithstanding the provisions of this Article XII or
any other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts that would prohibit the making of any
payment to or by the Trustee in respect of the Securities, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof
from the Company or a holder of Senior Debt or from any trustee, agent or
representative therefor; provided
that if the Trustee shall not have received the notice

 

 

provided
for in this Section 12.8 at least two Business Days prior to the date
upon which by the terms hereof any monies may become payable for any purpose
(including, the payment of the principal of and any premium on or interest
(including any Additional Interest) on any Security), then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power
and authority to receive such monies and to apply the same to the purpose for
which they were received and shall not be affected by any notice to the
contrary that may be received by it within two Business Days prior to such
date.

 

(b)           The Trustee shall be entitled to rely
on the delivery to it of a written notice by a Person representing himself or
herself to be a holder of Senior Debt (or a trustee, agent, representative or
attorney-in-fact therefor) to establish that such notice has been given by a
holder of Senior Debt (or a trustee, agent, representative or attorney-in-fact
therefor). In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of
Senior Debt to participate in any payment or distribution pursuant to this Article
XII, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Debt held by
such Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article XII, and if such evidence is not furnished,
the Trustee may defer any payment to such Person pending judicial determination
as to the right of such Person to receive such payment.

 

SECTION 12.9       Reliance on Judicial Order
or Certificate of Liquidating Agent.

 

Upon any payment or distribution of assets of the Company referred to
in this Article XII, the Trustee and the Holders of the Securities shall
be entitled to conclusively rely upon any order or decree entered by any court
of competent jurisdiction in which such Proceeding is pending, or a certificate
of the trustee in bankruptcy, receiver, liquidating trustee, custodian,
assignee for the benefit of creditors, agent or other Person making such
payment or distribution, delivered to the Trustee or to the Holders of Securities,
for the purpose of ascertaining the Persons entitled to participate in such
payment or distribution, the holders of the Senior Debt and other indebtedness
of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this Article
XII.

 

SECTION 12.10     Trustee Not Fiduciary for
Holders of Senior Debt.

 

The Trustee, in its capacity as trustee under this Indenture, shall not
be deemed to owe any fiduciary duty to the holders of Senior Debt and shall not
be liable to any such holders if it shall in good faith mistakenly pay over or
distribute to Holders of Securities or to the Company or to any other Person
cash, property or securities to which any holders of Senior Debt shall be
entitled by virtue of this Article XII or otherwise.

 

SECTION 12.11     Rights of Trustee as
Holder of Senior Debt; Preservation of Trustee’s Rights.

 

The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article XII with respect to any Senior Debt
that may at any time be held by it, to the same extent as any other holder of
Senior Debt, and nothing in this Indenture shall deprive the Trustee of any

 

 

of its rights as such holder.

 

SECTION 12.12     Article Applicable to
Paying Agents.

 

If at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and be then acting hereunder, the term “Trustee” as used in this Article
XII shall in such case (unless the context otherwise requires) be construed
as extending to and including such Paying Agent within its meaning as fully for
all intents and purposes as if such Paying Agent were named in this Article
XII in addition to or in place of the Trustee; provided that Sections 12.8 and 12.11 shall
not apply to the Company or any Affiliate of the Company if the Company or such
Affiliate acts as Paying Agent.

 

****

 

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

 

* * * *

 

 

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

 

	
   

  	
  GKK CAPITAL
  LP

  
	
   

  
	
   

  	
  By:

  	
  GRAMERCY CAPITAL CORP., its general partner

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Marc Holliday

  
	
   

  	
   

  	
  Title: President & Chief Executive Officer

  
	
   

  

 

68

 

	
   

  	
  JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Schedule A

 

DETERMINATION OF LIBOR

 

With respect to the Securities, the London interbank offered rate (“LIBOR”) shall be determined by the
Calculation Agent in accordance with the following provisions (in each case
rounded to the nearest .000001%):

 

(1)           On the second LIBOR
Business Day (as defined below) prior to a Distribution Date after the
expiration of the Fixed Rate Period (each such date, a “LIBOR Determination Date”), LIBOR for any
given security shall for the following interest payment period equal the rate,
as obtained by the Calculation Agent from Bloomberg Financial Markets
Commodities News, for three-month Eurodollar deposits that appears on Dow Jones
Telerate Page 3750 (as defined in the International Swaps and Derivatives
Association, Inc. 2000 Interest Rate and Currency Exchange Definitions), or
such other page as may replace such Page 3750, as of 11:00 a.m. (London time)
on such LIBOR Determination Date.

 

(2)           If, on any LIBOR
Determination Date, such rate does not appear on Dow Jones Telerate Page 3750
or such other page as may replace such Page 3750, the Calculation Agent shall
determine the arithmetic mean of the offered quotations of the Reference Banks
(as defined below) to leading banks in the London interbank market for three-month
Eurodollar deposits in an amount determined by the Calculation Agent by
reference to requests for quotations as of approximately 11:00 a.m. (London
time) on the LIBOR Determination Date made by the Calculation Agent to the
Reference Banks. If, on any LIBOR Determination Date, at least two of the
Reference Banks provide such quotations, LIBOR shall equal such arithmetic mean
of such quotations. If, on any LIBOR Determination Date, only one or none of
the Reference Banks provide such quotations, LIBOR shall be deemed to be the
arithmetic mean of the offered quotations that leading banks in the City of New
York selected by the Calculation Agent are quoting on the relevant LIBOR
Determination Date for three-month Eurodollar deposits in an amount determined
by the Calculation Agent by reference to the principal London offices of
leading banks in the London interbank market; provided that, if the Calculation Agent is required but is
unable to determine a rate in accordance with at least one of the procedures provided
above, LIBOR shall be LIBOR as determined on the previous LIBOR Determination
Date.

 

(3)           As used herein: “Reference Banks”
means four major banks in the London interbank market selected by the
Calculation Agent; and “LIBOR Business Day”
means a day on which commercial banks are open for business (including dealings
in foreign exchange and foreign currency deposits) in London.

 

70

 

Exhibit A

 

Form of Officer’s Financial Certificate

 

The undersigned, the [Chief Financial Officer/Treasurer/Assistant
Treasurer/ Secretary/ Assistant Secretary, Chairman/ViceChairman/Chief
Executive Officer/President/Vice President] hereby certifies, pursuant to
Section 7.3(b) of the Junior Subordinated Indenture, dated as of January 27,
2006 (the “Indenture”), among GKK Capital LP (the “Company”) and JPMorgan Chase
Bank, National Association, as trustee, that, as of [date], [20    ],
the Company, if applicable, and its Subsidiary had the following ratios and
balances (unless otherwise indicated, capitalized terms used herein have the
meaning set forth in the Indenture):

 

As of [Quarterly/Annual Financial Date], 20    

 

	
  Senior secured indebtedness for borrowed
  money (“Debt”)

  	
   

  	
  $

  	
         

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Senior unsecured Debt

  	
   

  	
  $

  	
         

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Subordinated Debt

  	
   

  	
  $

  	
         

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Debt

  	
   

  	
  $

  	
         

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ratio of (x) senior secured and unsecured
  Debt to (y) total Debt

  	
   

  	
         

  	
  %

  

 

 

[FOR FISCAL YEAR END:  Attached
hereto are the audited consolidated financial statements (including the balance
sheet, income statement and statement of cash flows, and notes thereto,
together with the report of the independent accountants thereon) of the Company
and its consolidated subsidiaries for the three years ended [date], 20    .]

 

[FOR FISCAL QUARTER END: 
Attached hereto are the unaudited consolidated and consolidating  financial statements (including the balance
sheet and income statement) of the Company and its consolidated subsidiaries
for the fiscal quarter ended [date], 20     .]

 

The financial statements fairly present in all material respects, in
accordance with U.S. generally accepted accounting principles (“GAAP”), the
financial position of the Company and its consolidated subsidiaries, and the
results of operations and changes in financial condition as of the date, and
for the [quarter] [annual] period ended [date], 20    , and
such financial statements have been prepared in accordance with GAAP
consistently applied throughout the period involved (expect as otherwise noted
therein).

 

 

Exhibit A

 

IN WITNESS WHEREOF, the undersigned has executed this Officer’s
Financial Certificate as of this         day
of          ,
20   .

 

	
   

  	
  GKK CAPITAL
  LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GRAMERCY CAPITAL CORP., its general

  partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
  GKK Capital LP

  
	
   

  	
  420 Lexington Avenue

  
	
   

  	
  New York, NY 10170

  
	
   

  	
  (212) 297-1000

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