Document:

Exhibit
10.4

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
is made and entered into as of July 31, 2003 by and between VORNADO REALTY
TRUST, a Maryland real estate investment trust (the “Company”), and the
persons identified on Schedule A hereto (each a “Holder” and
collectively, together with their respective assigns permitted under
Section 6.3 hereof, the “Holders”).

 

WHEREAS, the Company, Vornado Realty L.P., a Delaware
limited partnership (the “Operating Partnership”), CESC 2101 L Street
L.L.C., a Delaware limited liability company (the “VNO Transaction Sub”),
1100 21st Street Associates Limited Partnership, a Maryland limited
partnership (the “Property Partnership”), and Robert H. Smith and Ralph
S. Dweck, the general partners of the Property Partnership, are parties to the
Contribution Agreement, dated as of June 16, 2003, pursuant to which the
Property Partnership will contribute the office building located at 2101 L
Street N.W. in Washington, DC (along with certain related assets and
liabilities) to the VNO Transaction Sub in exchange for the issuance by the
Operating Partnership of certain Class A Units (such units, the “Units”)
to the Property Partnership for distribution to the Holders (the “Transaction”)
as set forth opposite their names on Schedule A hereto;

 

WHEREAS, pursuant to the terms of Section 8.6 and
the other related provisions of the Second Amended and Restated Agreement of
Limited Partnership of the Partnership (such agreement, as amended from time to
time, the “Partnership Agreement”), commencing on (or shortly after) the
first anniversary of the date of issuance, and subject to the various
conditions contained in the Partnership Agreement and other instruments being
delivered in connection with the Transaction, the Holders will be entitled to
redeem their Units for cash or, at the Company’s election, common shares of
beneficial interest, par value $0.04 per share, of the Company (“Common
Shares”);

 

WHEREAS, the Company has agreed to grant to the Holders
the Registration Rights (as defined in Section 1 hereof);

 

WHEREAS, capitalized terms not otherwise defined
herein shall have the meanings set forth in the Contribution Agreements; and

 

NOW, THEREFORE, the parties hereto, in consideration
of the foregoing, and the mutual covenants and agreements hereinafter set
forth, hereby agree as follows:

 

 

SECTION 1.                            REGISTRATION
RIGHTS

 

Subject to the various terms and conditions of the
Partnership Agreement and the limitations upon Holders’ redemption of the Units
set forth in other instruments being delivered in connection with the
Transaction, if any Holder receives Common Shares upon redemption of the Units
held by such Holder (“Redemption Shares”), then, unless the Redemption
Shares are issued to the Holder pursuant to an Issuer Registration Statement as
provided in Section 2 below, each Holder shall be entitled to offer the
Redemption Shares for sale pursuant to a shelf registration statement, subject
to the terms and conditions set forth in Section 3 hereof (the “Registration
Rights”).

 

SECTION 2.                            ISSUER
REGISTRATION STATEMENT

 

Anything contained herein to the contrary
notwithstanding, in the event that the Redemption Shares are issued by the
Company to a Holder and included at the time of issuance in an effective
registration statement (an “Issuer Registration Statement”) filed with
the Securities and Exchange Commission (the “Commission”), the Company
shall be deemed to have satisfied all of its registration obligations under
this Agreement in respect of such Redemption Shares.

 

SECTION 3.                            DEMAND
REGISTRATION RIGHTS

 

3.1                    (a)                       Registration Procedure.  Unless
such Redemption Shares are included at the time of issuance in an Issuer
Registration Statement as provided in Section 2 above, then subject to
Sections 3.1(c) and 3.2 hereof, if any Holder desires to exercise its
Registration Rights with respect to the Redemption Shares, the Holder shall
deliver to the Company a written notice (a “Registration Notice”)
informing the Company of such exercise and specifying the number of shares to
be offered by such Holder (such shares to be offered being referred to herein
as the “Registrable Securities”). 
Such notice may be given at any time on or after the date a notice of
redemption is delivered by the Holder to the Partnership pursuant to the
Partnership Agreement, but must be given at least sixty (60) days prior to the
date on which the Holder desires to consummate of the sale of Registrable
Securities.  Upon receipt of the Registration
Notice, the Company, if it has not already caused the Registrable Securities to
be included as part of an existing shelf registration statement and related
prospectus that the Company then has on file with, and has been declared
effective by, the Commission (the “Shelf Registration Statement”) (in
which event the Company shall be deemed to have satisfied its registration
obligation under this Section 3), will cause to be filed with the
Commission as soon as reasonably practicable after receiving the Registration
Notice a new registration statement and related prospectus (a “New
Registration Statement”) that complies as to form in all material respects
with applicable Commission rules providing for the sale by such Holder of the
Registrable

 

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Securities, and agrees (subject to Section 3.2 hereof) to use
commercially reasonable efforts to cause such New Registration Statement to be
declared effective by the Commission as soon as practicable.  (As used herein, “Registration Statement”
and “Prospectus” refer to the Shelf Registration Statement and related
prospectus (including any preliminary prospectus) or the New Registration
Statement and related prospectus (including any preliminary prospectus),
whichever is utilized by the Company to satisfy Holder’s Registration Rights
pursuant to this Section 3, including in each case any documents
incorporated therein by reference).

 

Subject to Section 3.2 hereof, the Company agrees
to use commercially reasonable efforts to keep the Registration Statement
effective (including the preparation and filing of any amendments and
supplements necessary for that purpose) until the earlier of (i) the
forty-sixth (46th) day following commencement of the offering contemplated
therein (provided,
that the forty-five (45) day period will be extended one day for
each day that the Company suspends the offering pursuant to its rights in
Section 3.2 hereof) or, if sooner, the date on which Holder consummates
the sale of all of the Registrable Securities registered under the Registration
Statement and (ii) the date on which all of the Registrable Securities are
eligible for sale pursuant to Rule 144(k) (or any successor provision) or
in a single transaction pursuant to Rule 144(e) (or any successor provision)
under the Securities Act of 1933, as amended (the “Act”).  The Company agrees to provide each
exercising Holder a reasonable number of copies of the final Prospectus and any
amendments or supplements thereto. 
Notwithstanding the foregoing, the Company may at any time, in its sole
discretion and prior to receiving any Registration Notice from any Holder,
include all of any Holder’s Redemption Shares or any portion thereof in any
Registration Statement (in which event the Company shall be deemed to have
satisfied its registration obligation under this Section 3.1(a)).

 

In connection with any Registration Statement utilized
by the Company to satisfy the Registration Rights pursuant to this
Section 3, each Holder agrees to cooperate with the Company in connection
with the preparation of the Registration Statement, and each Holder agrees that
it will (i) respond within five (5) Business Days to any written
request by the Company to provide or verify information regarding Holder or
Holder’s Registrable Securities (including the proposed manner of sale) that
may be required to be included in such Registration Statement pursuant to the
rules and regulations of the Commission, and (ii) provide in a timely
manner information regarding the proposed distribution by such Holder of the
Registrable Securities and such other information as may be requested by the
Company from time to time in connection with the preparation of and for
inclusion in the Registration Statement and related Prospectus.  As used in this Agreement, a “Business Day”
is any Monday, Tuesday, Wednesday, Thursday or Friday other than a day on which
banks and other financial institutions are authorized or required to be closed
for business in the State of New York or Maryland.

 

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(b)                    Offers and
Sales.  All offers and sales by a
Holder under the Registration Statement referred to in this Section 3
shall be completed within the period during which the Registration Statement is
required to remain effective pursuant to Section 3.1(a) above, and upon
expiration of such period no Holder will offer or sell any Registrable
Securities under the Registration Statement. 
If directed by the Company, each Holder will return all undistributed
copies of the Prospectus in its possession upon the expiration of such period.

 

(c)                     Limitations
on Registration Rights.  Each
exercise of a Registration Right shall be with respect to a minimum of the
lesser of (i)  Fifty Thousand (50,000) Redemption Shares and (ii) the
total number of Redemption Shares held by the exercising Holder at such time
plus the number of Redemption Shares that may be issued upon redemption of
Units by the exercising Holder.  The
right of any Holder to deliver a Registration Notice commences upon the first
date the Holder is permitted to redeem Units pursuant to the Partnership
Agreement and other instruments being delivered in connection with the
Transaction.  The right of any Holder to
deliver a Registration Notice shall expire on the date on which all of the
Redemption Shares held by the Holder or issuable upon redemption of Units held
by the Holder are eligible for sale pursuant to Rule 144(k) (or any
successor provision) or in a single transaction pursuant to Rule 144(e)
(or any successor provision) under the Act.

 

3.2                    Suspension
of Offering.  Upon any notice by the
Company, either before or after a Holder has delivered a Registration Notice,
that a negotiation or consummation of a transaction by the Company or any of
its affiliates is pending or an event has occurred, which negotiation,
consummation or event would require additional disclosure by the Company in the
Registration Statement of material information which the Company has a bona fide business
purpose for keeping confidential and the nondisclosure of which in the
Registration Statement might cause the Registration Statement to fail to comply
with applicable disclosure requirements (a “Materiality Notice”), each
Holder agrees that it will immediately discontinue offers and sales of the
Registrable Securities under the Registration Statement until the Holder
receives copies of a supplemental or amended Prospectus that corrects the
misstatement(s) or omission(s) referred to above and receives notice that any
post-effective amendment has become effective; provided, that the Company
may delay, suspend or withdraw the Registration Statement for such reason for
no more than ninety (90) days after delivery of the Materiality Notice at any
one time.  If so directed by the
Company, Holder will deliver to the Company all copies of the Prospectus
covering the Registrable Securities current at the time of receipt of any
Materiality Notice.

 

3.3                    Qualification.  The Company agrees to use commercially
reasonable efforts to register or qualify the Registrable Securities by the
time the applicable Registration Statement is declared effective by the
Commission under all applicable state securities or “blue sky” laws of such
jurisdictions as any Holder may

 

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reasonably request in writing, to keep each such
registration or qualification effective during the period such Registration
Statement is required to be kept effective pursuant to this Agreement or during
the period offers or sales are being made by Holder after delivery of a Registration
Notice to the Company, whichever is shorter, and to do any and all other
similar acts and things which may be reasonably necessary or advisable to
enable Holder to consummate the disposition of the Registrable Securities owned
by Holder in each such jurisdiction; provided, however, that the Company shall
not be required to (i) qualify generally to do business in any
jurisdiction or to register as a broker or dealer in such jurisdiction where it
would not otherwise be required to qualify but for this Agreement,
(ii) take any action that would cause it to become subject to any taxation
in any jurisdiction where it would not otherwise be subject to such taxation,
or (iii) take any action that would subject it to the general service of
process in any jurisdiction where it is not now so subject.

 

3.4                    Obligations
of the Company.  When the Company is
required to effect the registration of Redemption Shares under the Act pursuant
to Section 3.1 of this Agreement, subject to Section 3.2 hereof, the
Company shall:

 

(a)                     prepare and
file with the Commission (as soon as reasonably practicable after receiving the
Registration Notice, and in any event within sixty (60) days after receipt of
such Registration Notice) the requisite Registration Statement to effect such registration,
which Registration Statement shall comply as to form in all material respects
with the requirements of the applicable form and include all financial
statements required by the Commission to be filed therewith, and the Company
shall use commercially reasonable efforts to cause such Registration Statement
to become effective; provided, however, that before filing a
Registration Statement or Prospectus or any amendments or supplements thereto,
or comparable statements under securities or “blue sky” laws of any
jurisdiction, the Company shall (i) provide each Holder with an adequate
and appropriate opportunity to participate in the preparation of such
Registration Statement and each Prospectus included therein (and each amendment
or supplement thereto or comparable statement) to be filed with the Commission,
and (ii) not file any such Registration Statement or Prospectus (or
amendment or supplement thereto or comparable statement) with the Commission to
which any Holder shall have reasonably objected on the grounds that such filing
does not comply in all material respects with the requirements of the Act or of
the rules or regulations thereunder;

 

(b)                    prepare and
file with the Commission such amendments and supplements as to the Registration
Statement and the Prospectus used in connection therewith as may be necessary
(i) to keep such Registration Statement effective, and (ii) to comply
with the provisions of the Act with respect to the disposition of the
Redemption Shares covered by such Registration Statement, in each case for such
time as is contemplated in Section 3.1(a) above; provided, that in

 

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any event the period need not extend beyond nine
months from the effective date of the Registration Statement;

 

(c)                     furnish,
without charge, to the Holders of the securities covered by the Registration
Statement, such number of copies of the Registration Statement, each amendment
and supplement thereto (in each case including all exhibits), and the Prospectus
included in such Registration Statement (including each preliminary Prospectus)
in conformity with the requirements of the Act, and other documents, as the
Holders may reasonably request in order to facilitate the public sale or other
disposition of the Redemption Shares owned by the Holders;

 

(d)                    promptly
notify the Holders of securities covered by the Registration Statement:  (i) when the Registration Statement,
any pre-effective amendment, the Prospectus or any prospectus supplement
related thereto or post-effective amendment to the Registration Statement has
been filed, and, with respect to the Registration Statement or any
post-effective amendment, when the same has become effective, (ii) of any
request by the Commission or any state securities or blue sky authority for
amendments or supplements to the Registration Statement or the Prospectus
related thereto or for additional information, (iii) of the issuance by
the Commission of any stop order suspending the effectiveness of the
Registration Statement or the initiation or threat of any proceedings for that
purpose, and (iv) of the receipt by the Company of any notification with
respect to the suspension of the qualification of any Redemption Shares for
sale under the securities or “blue sky” laws of any jurisdiction or the
initiation of any proceeding for such purpose;

 

(e)                     following
receipt of a Registration Notice and thereafter until the sooner of completion,
abandonment or termination of the offering or sale contemplated thereby and the
expiring of the period during which the Company is required to maintain the
effectiveness of the related Registration Statement as set forth in
Section 3.1 (a) above, promptly notify the Holders of securities covered
by the Registration Statement: 
(i) of the existence of any fact of which the Company is aware or
the happening of any event which has resulted in (A) the Registration
Statement, as then in effect, containing an untrue statement of a material fact
or omitting to state a material fact required to be stated therein or necessary
to make any statements therein not misleading, or (B) the Prospectus
included in such Registration Statement containing an untrue statement of a
material fact or omitting to state a material fact required to be stated
therein or necessary to make any statements therein, in the light of the
circumstances under which they were made, not misleading, and (ii) of the
Company’s reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate or that there exist circumstances
not yet disclosed to the public which make further sales under such
Registration Statement inadvisable pending such disclosure and post-effective
amendment; and, if the notification relates to any event described in either of
the clauses (i) or (ii) of this Section 3.4(e), subject to
Section 3.2 above, at the

 

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request of the Holders, the Company shall prepare and
furnish to the Holders of securities covered by the Registration Statement, a
reasonable number of copies of a supplement or post-effective amendment to such
Registration Statement or related Prospectus or any document incorporated
therein by reference or file any other required document so that (1) such
Registration Statement shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, and (2) as
thereafter delivered to the purchasers of the Redemption Shares being sold
thereunder, such Prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading;

 

(f)                       make
available for reasonable inspection by the Holders and any attorney, accountant
or other agent retained by any Holder, material financial and other relevant
information concerning the business and operations of the Company and the
properties of the Company and any subsidiaries thereof as may be in existence
at such time as shall be necessary to enable them to conduct a reasonable
investigation within the meaning of the Act, and cause the Company’s officers,
directors and employees to supply such relevant information as may be
reasonably requested by any such parties in connection with such Registration
Statement; provided,
however, that, if the Holders or any of their advisors or agents
request any information that the Company determines to be confidential or
non-public, the Company shall be entitled to condition access to that
information upon the Holders and each other recipient of such information
having entered into a confidentiality agreement with the Company in form and
substance satisfactory to the Company acting reasonably, pursuant to which each
such recipient agrees to maintain that information as confidential and use it
solely for the purposes of exercising rights under this Agreement, and provided
further, that the Company shall not be required to disclose any
information subject to the attorney-client or attorney work product privilege
if and to the extent such disclosure would constitute a waiver of such
privilege;

 

(g)                    use
commercially reasonable efforts to cause all such Redemption Shares to be
listed on the national securities exchange on which the Common Shares are then
listed, if the listing of Redemption Shares is then permitted under the rules
of such national securities exchange; and

 

(h)                    if requested
by any Holder participating in the offering of Registrable Securities,
incorporate in a prospectus supplement or post-effective amendment such
information concerning the Holder or the intended method of distribution as the
Holder reasonably requests to be included therein and as is appropriate in the
reasonable judgment of the Company, including, without limitation, information
with respect to the number of Redemption Shares being sold, the purchase price
being paid therefore and any other material terms of the

 

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offering of the Redemption Shares to be sold in such
offering; provided,
however, that the Company shall not be obligated to include in any
such prospectus supplement or post-effective amendment any requested
information that is unreasonable in scope compared with the Company’s most
recent prospectus or prospectus supplement used in connection with a primary or
secondary offering of equity securities by the Company.

 

3.5                    Indemnification
by the Company.  The Company agrees
to indemnify and hold harmless each Holder and each person, if any, who
controls any Holder within the meaning of Section 15 of the Act or
Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and any of their officers, directors, employees or representatives,
as follows:

 

(i)                           against
any and all loss, liability, claim, damage, judgment and expense whatsoever, as
incurred, arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement (or any
amendment thereto) pursuant to which the Registrable Securities were registered
under the Act, including all documents incorporated therein by reference, or
the omission or alleged omission therefrom of a material fact required to be
stated therein or necessary to make the statements therein not misleading or
arising out of or based upon any untrue statement or alleged untrue statement
of a material fact contained in any Prospectus (or any amendment or supplement
thereto), including all documents incorporated therein by reference, or the
omission or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading;

 

(ii)                        against
any and all loss, liability, claim, damage, judgment and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any
litigation, or investigation or proceeding by any governmental agency or body,
commenced or threatened, or of any claim whatsoever based upon any such untrue
statement or omission, or any such alleged untrue statement or omission, if
such settlement is effected with the written consent of the Company; and

 

(iii)                     against any
and all expense whatsoever, as incurred (including reasonable fees and
disbursements of counsel), reasonably incurred in investigating, preparing or
defending against any litigation, or investigation or proceeding by any
governmental agency or body, commenced or threatened, in each case whether or
not a party, or any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, to the

 

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extent that any such
expense is not paid under subparagraph (i) or (ii) above;

 

provided,
however, that the indemnity provided pursuant to this
Section 3.5 does not apply to any Holder with respect to any loss,
liability, claim, damage, judgment or expense to the extent arising out of
(A) any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with written information
furnished to the Company by such Holder expressly for use in the Registration
Statement (or any amendment thereto) or the Prospectus (or any amendment or
supplement thereto), or (B) any Holder’s failure to deliver an amended or
supplemental Prospectus provided to the Holder by the Company if such loss,
liability, claim, damage, judgment or expense would not have arisen had such
delivery occurred.

 

3.6                    Indemnification
by Holder.  Each Holder of
securities covered by a Registration Statement (and each permitted assignee of
such Holder, on a several basis) severally and not jointly agrees to indemnify
and hold harmless the Company, and each of its trustees/directors and officers
(including each trustee/director and officer of the Company who signed a
Registration Statement), and each person, if any, who controls the Company
within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act, as follows:

 

(i)                           against
any and all loss, liability, claim, damage, judgment and expense whatsoever, as
incurred, arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement (or any
amendment thereto) pursuant to which Registrable Securities of such Holder were
registered under the Act, including all documents incorporated therein by
reference, or the omission or alleged omission therefrom of a material fact
required to be stated therein or necessary to make the statements therein not
misleading or arising out of or based upon any untrue statement or alleged
untrue statement of a material fact contained in any Prospectus (or any amendment
or supplement thereto), including all documents incorporated therein by
reference, or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

 

(ii)                        against
any and all loss, liability, claim, damage, judgment and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any
litigation, or investigation or proceeding by any governmental agency or body,
commenced or threatened, or of any claim whatsoever based upon any such untrue
statement or

 

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omission, or any such
alleged untrue statement or omission, if such settlement is effected with the
written consent of the Holder; and

 

(iii)                     against any
and all expense whatsoever, as incurred (including reasonable fees and
disbursements of counsel), reasonably incurred in investigating, preparing or
defending against any litigation, or investigation or proceeding by any
governmental agency or body, commenced or threatened, in each case whether or
not a party, or any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under subparagraph (i) or (ii) above;

 

provided,
however, that the indemnity provided pursuant to this
Section 3.6 shall only apply with respect to any loss, liability, claim,
damage, judgment or expense to the extent arising out of (A) any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by
such Holder expressly for use in the Registration Statement (or any amendment
thereto) or the Prospectus (or any amendment or supplement thereto), or (B) any
Holder’s failure to deliver an amended or supplemental Prospectus provided to
the Holder by the Company if such loss, liability, claim, damage or expense
would not have arisen had such delivery occurred.  Notwithstanding the provisions of this Section 3.6, a Holder
and any permitted assignee shall not be required to indemnify the Company, its
officers, trustees/directors or control persons with respect to any amount in
excess of the amount of the total proceeds to the Holder or such permitted
assignee, as the case may be, from sales of the Registrable Securities of the
Holder under the Registration Statement.

 

3.7                    Conduct of
Indemnification Proceedings.  An
indemnified party hereunder shall give reasonably prompt notice to the
indemnifying party of any action or proceeding commenced against it in respect
of which indemnity may be sought hereunder, but failure to so notify the
indemnifying party (i) shall not relieve it from any liability which it
may have under the indemnity agreement provided in Section 3.5 or 3.6
above, unless and only to the extent it did not otherwise learn of such action
and the lack of notice by the indemnified party results in the forfeiture by the
indemnifying party of substantial rights and defenses, and (ii) shall not,
in any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided under
Section 3.5 or 3.6 above.  If the
indemnifying party so elects within a reasonable time after receipt of such
notice, the indemnifying party may assume the defense of such action or
proceeding at such indemnifying party’s own expense with counsel chosen by the
indemnifying party and approved by the indemnified party, which approval shall
not be unreasonably withheld; provided, however, that the indemnifying
party will not settle any such action or proceeding without the written consent
of the

 

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indemnified party unless, as a condition to such
settlement, the indemnifying party secures the unconditional release of the
indemnified party; and provided further, that, if the indemnified
party reasonably determines that a conflict of interest exists where it is
advisable for the indemnified party to be represented by separate counsel or
that, upon advice of counsel, there may be legal defenses available to it which
are different from or in addition to those available to the indemnifying party,
then the indemnifying party shall not be entitled to assume such defense and
the indemnified party shall be entitled to separate counsel at the indemnifying
party’s expense.  If the indemnifying
party is not entitled to assume the defense of such action or proceeding as a
result of the second proviso to the preceding sentence, the indemnifying
party’s counsel shall be entitled to conduct the indemnifying party’s defense
and counsel for the indemnified party shall be entitled to conduct the defense
of the indemnified party, it being understood that both such counsel will
cooperate with each other to conduct the defense of such action or proceeding
as efficiently as possible.  If the
indemnifying party is not so entitled to assume the defense of such action or
does not assume such defense, after having received the notice referred to in
the first sentence of this paragraph, the indemnifying party will pay the
reasonable fees and expenses of counsel for the indemnified party.  In such event, however, the indemnifying
party will not be liable for any settlement effected without the written
consent of the indemnifying party.  If
an indemnifying party is entitled to assume, and assumes, the defense of such
action or proceeding in accordance with this paragraph, the indemnifying party
shall not be liable for any fees and expenses of counsel for the indemnified
party incurred thereafter in connection with such action or proceeding.

 

3.8                    Contribution.  In order to provide for just and equitable
contribution in circumstances in which the indemnity agreement provided for in
Sections 3.5 and 3.6 above is for any reason held to be unenforceable by the
indemnified party although applicable in accordance with its terms, the Company
and the relevant Holder shall contribute to the aggregate losses, liabilities,
claims, damages and expenses of the nature contemplated by such indemnity
agreement incurred by the Company and the Holder, (i) in such proportion
as is appropriate to reflect the relative fault of and benefits to the Company
on the one hand and the Holder on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities, or expenses or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative fault of, but also the relative
benefits to, the Company on the one hand and the Holder on the other hand, in
connection with the statements or omissions which resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations.  The relative
benefits to the indemnifying party and indemnified party shall be determined

 

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by reference to, among other things, the total
proceeds received by the indemnifying party and indemnified party in connection
with the offering to which such losses, claims, damages, liabilities or
expenses relate.  The relative fault of
the indemnifying party and indemnified party shall be determined by reference
to, among other things, whether the action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, has been made by, or relates to information supplied by,
the indemnifying party or the indemnified party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action.

 

The parties hereto agree
that it would not be just or equitable if contribution pursuant to this
Section 3.8 were determined by pro rata allocation or by any other method
of allocation which does not take account of the equitable considerations
referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this Section 3.8, a Holder
shall not be required to contribute any amount in excess of the amount of the
total proceeds to the Holder from sales of the Registrable Securities of such
Holder under the Registration Statement.

 

Notwithstanding the
foregoing, no person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 3.8, each
person, if any, who controls a Holder within the meaning of Section 15 of
the Act shall have the same rights to contribution as the Holder, and each
trustee/director of the Company, each officer of the Company who signed a
Registration Statement and each person, if any, who controls the Company within
the meaning of Section 15 of the Act shall have the same rights to
contribution as the Company.

 

SECTION 4.                            EXPENSES

 

The Company shall pay all
expenses incident to the performance by the Company of its registration
obligations under Sections 2 and 3 above, including (i) all stock
exchange, Commission and state securities registration, listing and filing
fees, (ii) all expenses incurred in connection with the preparation,
printing and distribution of any Issuer Registration Statement or Registration
Statement and Prospectus, and (iii) fees and disbursements of counsel for
the Company and of the independent public accountants of the Company.  Each Holder shall be responsible for the
payment of any brokerage and sales commissions, fees and disbursements of the
Holder’s counsel, accountants and other advisors, and any transfer taxes
relating to the sale or disposition of the Registrable Securities by such
Holder pursuant to this Agreement.

 

SECTION 5.                            RULE 144
COMPLIANCE

 

The Company covenants
that it will use its best efforts to timely file the reports
required to be filed by the Company under the Act and the Exchange

 

12

 

Act so as to enable each Holder to sell Registrable
Securities pursuant to Rule 144 under the Act. 
In connection with any sale, transfer or other disposition by a Holder
of any Registrable Securities pursuant to Rule 144 under the Act, the Company shall
cooperate with the Holder to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold and not bearing any
Securities Act legend, and enable certificates for such Registrable Securities
to be for such number of shares and registered in such names as Holder may
reasonably request at least ten (10) Business Days prior to any sale of
Registrable Securities hereunder.

 

SECTION 6.                            MISCELLANEOUS

 

6.1                    Integration,
Amendment.  This Agreement
constitutes the entire agreement among the parties hereto with respect to the
matters set forth herein and supersedes and renders of no force and effect all
prior oral or written agreements, commitments and understandings among the
parties with respect to the matters set forth herein.  Except as otherwise expressly provided in this Agreement, no
amendment, modification or discharge of this Agreement shall be valid or
binding unless set forth in writing and duly executed by the Company and each
Holder against whom such amendment, modification or discharge is sought to be
enforced.

 

6.2                    Waivers.  No waiver by a party hereto shall be
effective unless made in a written instrument duly executed by the party
against whom such waiver is sought to be enforced, and only to the extent set
forth in such instrument.  Neither the
waiver by any of the parties hereto of a breach or a default under any of the
provisions of this Agreement, nor the failure of any of the parties, on one or
more occasions, to enforce any of the provisions of this Agreement or to
exercise any right or privilege hereunder shall thereafter be construed as a
waiver of any subsequent breach or default of a similar nature, or as a waiver
of any such provisions, rights or privileges hereunder.

 

6.3                    Assignment;
Successors and Assigns.  This
Agreement and the rights granted hereunder may not be assigned by any Holder
without the written consent of the Company; provided, however, that a Holder may
assign its rights and obligations hereunder, to a transferee in connection with
a transfer of some or all of such Holder’s Units in accordance with the terms
of the Partnership Agreement, if such transferee agrees in writing to be bound
by all of the provisions hereof.  This
Agreement shall inure to the benefit of and be binding upon of all of the
parties hereto and their respective successors and permitted assigns.

 

6.4                    Notices.  All notices called for under this Agreement
shall be in writing and shall be deemed given upon receipt if delivered
personally or by facsimile transmission and followed promptly by mail, or mailed
by registered or certified mail (return receipt requested), postage prepaid, to
the parties at the

 

13

 

addresses set forth in Schedule A hereto,
or to any other address or addressee as any party entitled to receive notice
under this Agreement shall designate, from time to time, to others in the
manner provided in this Section 6.4 for the service of notices; provided,
however, that notices of a change of address shall be effective only
upon receipt thereof.  Any notice
delivered to the party hereto to whom it is addressed shall be deemed to have
been given and received on the day it was received; provided, however, that if
such day is not a Business Day, then the notice shall be deemed to have been
given and received on the Business Day next following such day and if any party
rejects delivery of any notice attempted to be given hereunder, delivery shall
be deemed given on the date of such rejection. 
Any notice sent by facsimile transmission shall be deemed to have been
given and received on the Business Day next following the transmission.

 

6.5                    Specific
Performance.  The parties hereto
acknowledge that the obligations undertaken by them hereunder are unique and
that there would be no adequate remedy at law if any party fails to perform any
of its obligations hereunder, and accordingly agree that each party, in
addition to any other remedy to which it may be entitled at law or in equity,
shall be entitled to (i) compel specific performance of the obligations,
covenants and agreements of any other party under this Agreement in accordance
with the terms and conditions of this Agreement and (ii) obtain
preliminary injunctive relief to secure specific performance and to prevent a
breach or contemplated breach of this Agreement in any court of the United
States or any State thereof having jurisdiction.

 

6.6                    Governing
Law.  This Agreement, the rights and
obligations of the parties hereto, and any claims or disputes relating thereto,
shall be governed by and construed in accordance with the laws of the State of
New York, but not including the choice of law rules thereof.

 

6.7                    Headings.  Section and subsection headings
contained in this Agreement are inserted for convenience of reference only,
shall not be deemed to be a part of this Agreement for any purpose, and shall
not in any way define or affect the meaning, construction or scope of any of
the provisions hereof.

 

6.8                    Pronouns.  All pronouns and any variations thereof
shall be deemed to refer to the masculine, feminine, neuter, singular or
plural, as the identity of the person or entity may require.

 

6.9                    Execution
in Counterparts.  To facilitate
execution, this Agreement may be executed in as many counterparts as may be
required.  It shall not be necessary
that the signature of or on behalf of each party appears on each counterpart,
but it shall be sufficient that the signature of or on behalf of each party
appears on one or more of the counterparts. 
All counterparts shall collectively constitute a single agreement.  It shall not be necessary in any proof of
this

 

14

 

Agreement to produce or account for more than a number
of counterparts containing the respective signatures of or on behalf of all of
the parties.

 

6.10              Severability.  If fulfillment of any provision of this
Agreement, at the time such fulfillment shall be due, shall transcend the limit
of validity prescribed by law, then the obligation to be fulfilled shall be
reduced to the limit of such validity; and if any clause or provision contained
in this Agreement operates or would operate to invalidate this Agreement, in
whole or in part, then such clause or provision only shall be held ineffective,
as though not herein contained, and the remainder of this Agreement shall
remain operative and in full force and effect.

 

Signatures
on following page

 

15

 

IN WITNESS WHEREOF, each
of the parties hereto has caused this Agreement to be duly executed on its
behalf as of the date first herein above set forth.

 

	
   

  	
  VORNADO
  REALTY TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph Macnow

  	
   

  
	
   

  	
  Name:

  	
  Joseph Macnow

  
	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  HOLDERS IDENTIFIED ON

  SCHEDULE A

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Robert H. Smith

  	
   

  
	
   

  	
  Name:

  	
  Robert H. Smith

  
	
   

  	
  Title:

  	
  Representative and Attorney-in-Fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Ralph S. Dweck

  	
   

  
	
   

  	
  Name:

  	
  Ralph S. Dweck

  
	
   

  	
  Title:

  	
  Representative and Attorney-in-Fact

  
						

 

16Exhibit
10.5

 

SECOND AMENDMENT TO

REGISTRATION RIGHTS
AGREEMENT

 

                                THIS
SECOND AMENDMENT TO REGISTRATION RIGHTS AGREEMENT (this “Amendment”) is entered
into by and among the undersigned parties as of July 31, 2003.

 

                                WHEREAS,
on January 1, 2002, Vornado Realty Trust (the “Company”), Robert H. Smith,
Robert P. Kogod, Clarice R. Smith, Arlene R. Kogod and Charles E. Smith
Management, Inc. entered into a registration rights agreement, and such
agreement was amended on or about May 17, 2002 (as amended, the “Agreement”)

 

                                WHEREAS,
on June 16, 2003, the Company, Vornado Realty L.P. (“VRLP”), CESC 2101 L Street
L.L.C., 1100 21ST Street Associates Limited Partnership (the “2101 L
Street Property Partnership”), Robert H. Smith and Ralph S. Dweck, entered into
a Contribution Agreement (the “Contribution Agreement”);

 

                                WHEREAS,
pursuant to the Contribution Agreement, (i) the 2101 L Street Property
Partnership will contribute the property located at 2101 L Street N.W. in
Washington, D.C. (and certain related assets and liabilities), to a
wholly-owned subsidiary of VRLP in exchange for the issuance of Class A Units
in VRLP (the “2101 L Street Units”) to the Property Partnership, and (ii)
following the closing of such transactions, the 2101 L Street Property
Partnership will distribute such Class A Units to the partners of the 2101 L
Street Property Partnership (the “PP Partners”) (including the parties to the
Agreement who are also partners of the Property Partnership) on a pro rata
basis; provided that certain of such units will be deposited with an escrow
agent to satisfy indemnity obligations of the 2101 L Street Property
Partnership under the Contribution Agreement;

 

                                WHEREAS,
pursuant to the Second Amended and Restated Agreement of Limited Partnership of
VRLP, as amended, and the Contribution Agreement, subject to various
limitations set forth in such agreements, the 2101 L Street Property
Partnership and the PP Partners will be entitled to redeem their respective
Class A Units for cash or, at the Company’s election, common shares of
beneficial interest of the Company (the “Common Shares” and such redemption
right, the “L Street Redemption Right”) commencing on (or shortly after) the
first anniversary of the closing under the Contribution Agreement;

 

                                WHEREAS,
the parties desire to amend the Agreement to provide that upon any exercise of
the L Street Redemption Right that is satisfied with Common Shares, the Common
Shares issued to the PP Partners who are also parties to the

 

 

Agreement shall be deemed Registrable Shares
(as defined in the Agreement) for all purposes of the Agreement; and

 

                                WHEREAS,
capitalized terms shall have the meanings ascribed to them in the Agreement
unless otherwise defined herein.

 

                                NOW,
THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which hereby are acknowledged,
the undersigned hereby acknowledge and agree as follows:

 

                                1.             Amendment of Definition of
Registrable Shares.  The definition of
“Registrable Shares” in the Agreement shall be amended to include the following
immediately before the phrase “but excluding any such Common Shares,”:

 

                                                “and
all Common Shares issued or issuable upon redemption of the 2101 L Street Units
that are issued to the 2101 L Street Property Partnership and are subsequently
distributed to and held by the Holders (assuming the Company elects to deliver
Common Shares in satisfaction of the 2101 L Street Redemption Right)”.

 

                                2.             Except as modified herein, all
terms and conditions of the Agreement shall remain in full force and effect,
which terms and conditions the undersigned hereby ratify and affirm.

 

                                3.             This Amendment may be executed in
two or more counterparts all of which shall be considered one and the same
agreement and each of which shall be deemed an original.

 

 

 

[signature
page follows]

 

 

                                IN
WITNESS WHEREOF, each of the undersigned has executed this Amendment as of the
date first set forth above.

 

 

 

	
  VORNADO REALTY TRUST

  
	
   

  
	
  By:

  	
  /s/ Joseph Macnow

  
	
  Name: Joseph Macnow

  
	
  Title: Executive Vice President

  
	
   

  
	
  /s/ Robert H. Smith

  
	
  ROBERT H. SMITH

  
	
   

  
	
  /s/ Clarice R. Smith

  
	
  CLARICE R. SMITH

  
	
   

  
	
  /s/ Robert P. Kogod

  
	
  ROBERT P. KOGOD

  
	
   

  
	
  /s/ Arlene R. Kogod

  
	
  ARLENE R. KOGOD

  
	
   

  
	
  CHARLES E. SMITH MANAGEMENT, INC.

  
	
   

  
	
  By:

  	
  /s/ Robert H. Smith

  
	
  Name: Robert H. Smith

  
	
  Title: Vice President

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