Document:

EXHIBIT 4.10

 

 

 

Vornado Realty L.P.

 

To

 

The Bank of New York

 

Trustee

 

 

INDENTURE

 

 

Dated as of November 25, 2003

 

 

SENIOR DEBT SECURITIES

 

 

 

 

Certain Sections of this Indenture relating to Sections 310 through
318,

inclusive, of the Trust Indenture Act of 1939:

 

	
  Trust
  Indenture

  	
   

  	
   

  	
   

  	
   

  
	
  Act
  Section

  	
   

  	
   

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  310(a)(1)

  	
   

  	
   

  	
   

  	
  609

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  609

  
	
  (a)(3)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (a)(4)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
   

  	
   

  	
  608

  
	
   

  	
   

  	
   

  	
   

  	
  610

  
	
  Section
  311(a)

  	
   

  	
   

  	
   

  	
  613

  
	
  (b)

  	
   

  	
   

  	
   

  	
  613

  
	
  Section
  312(a)

  	
   

  	
   

  	
   

  	
  701

  
	
   

  	
   

  	
   

  	
   

  	
  702

  
	
  (b)

  	
   

  	
   

  	
   

  	
  702

  
	
  (c)

  	
   

  	
   

  	
   

  	
  702

  
	
  Section
  313(a)

  	
   

  	
   

  	
   

  	
  703

  
	
  (b)

  	
   

  	
   

  	
   

  	
  703

  
	
  (c)

  	
   

  	
   

  	
   

  	
  703

  
	
  (d)

  	
   

  	
   

  	
   

  	
  703

  
	
  Section
  314(a)

  	
   

  	
   

  	
   

  	
  704

  
	
  (a)(4)

  	
   

  	
   

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  	
  1004

  
	
  (b)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  102

  
	
  (c)(2)

  	
   

  	
   

  	
   

  	
  102

  
	
  (c)(3)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (e)

  	
   

  	
   

  	
   

  	
  102

  
	
  Section
  315(a)

  	
   

  	
   

  	
   

  	
  601

  
	
  (b)

  	
   

  	
   

  	
   

  	
  602

  
	
  (c)

  	
   

  	
   

  	
   

  	
  601

  
	
  (d)

  	
   

  	
   

  	
   

  	
  601

  
	
  (e)

  	
   

  	
   

  	
   

  	
  514

  
	
  Section
  316(a)

  	
   

  	
   

  	
   

  	
  101

  
	
  (a)(1)(A)

  	
   

  	
   

  	
   

  	
  502

  
	
   

  	
   

  	
   

  	
   

  	
  512

  
	
  (a)(1)(B)

  	
   

  	
   

  	
   

  	
  513

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
   

  	
   

  	
  508

  
	
  (c)

  	
   

  	
   

  	
   

  	
  104

  
	
  Section
  317(a)(1)

  	
   

  	
   

  	
   

  	
  503

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  504

  
	
  (b)

  	
   

  	
   

  	
   

  	
  1003

  
	
  Section
  318(a)

  	
   

  	
   

  	
   

  	
  107

  

 

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  PARTIES

  	
  1

  
	
  RECITALS OF THE OPERATING PARTNERSHIP

  	
  1

  
	
   

  	
   

  
	
  ARTICLE
  ONE

  

  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 101.

  	
  Definitions

  	
  1

  
	
   

  	
  Act

  	
  2

  
	
   

  	
  Affiliate

  	
  2

  
	
   

  	
  Applicable Procedures

  	
  2

  
	
   

  	
  Authenticating Agent

  	
  2

  
	
   

  	
  Board of Trustees

  	
  2

  
	
   

  	
  Board Resolution

  	
  2

  
	
   

  	
  Business Day

  	
  2

  
	
   

  	
  Commission

  	
  2

  
	
   

  	
  Corporate Trust Office

  	
  2

  
	
   

  	
  corporation

  	
  2

  
	
   

  	
  Covenant Defeasance

  	
  2

  
	
   

  	
  Defaulted Interest

  	
  2

  
	
   

  	
  Defeasance

  	
  3

  
	
   

  	
  Depositary

  	
  3

  
	
   

  	
  Event of Default

  	
  3

  
	
   

  	
  Exchange Act

  	
  3

  
	
   

  	
  Expiration Date

  	
  3

  
	
   

  	
  Global Security

  	
  3

  
	
   

  	
  Holder

  	
  3

  
	
   

  	
  Indenture

  	
  3

  
	
   

  	
  interest

  	
  3

  
	
   

  	
  Interest Payment Date

  	
  3

  
	
   

  	
  Investment Company Act

  	
  3

  
	
   

  	
  Maturity

  	
  3

  
	
   

  	
  Notice of Default

  	
  3

  
	
   

  	
  Officers’ Certificate

  	
  3

  
	
   

  	
  Operating Partnership

  	
  4

  
	
   

  	
  Operating Partnership Request

  	
  4

  
	
   

  	
  Opinion of Counsel

  	
  4

  
	
   

  	
  Original Issue Discount Security

  	
  4

  
	
   

  	
  Outstanding

  	
  4

  
	
   

  	
  Paying Agent

  	
  5

  
	
   

  	
  Person

  	
  5

  
	
   

  	
  Place of Payment

  	
  5

  
	
   

  	
  Predecessor Security

  	
  5

  
	
   

  	
  Redemption Date

  	
  5

  
	
   

  	
  Redemption Price

  	
  5

  

 

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

 

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
   

  	
  Regular Record Date

  	
  5

  
	
   

  	
  Responsible Officer

  	
  5

  
	
   

  	
  Securities

  	
  6

  
	
   

  	
  Securities Act

  	
  6

  
	
   

  	
  Security Register

  	
  6

  
	
   

  	
  Special Record Date

  	
  6

  
	
   

  	
  Stated Maturity

  	
  6

  
	
   

  	
  Subsidiary

  	
  6

  
	
   

  	
  Trust Indenture Act

  	
  6

  
	
   

  	
  Trustee

  	
  6

  
	
   

  	
  U.S. Government Obligation

  	
  6

  
	
   

  	
  Vice President

  	
  6

  
	
  SECTION 102.

  	
  Compliance Certificates and Opinions

  	
  7

  
	
  SECTION 103.

  	
  Form of Documents Delivered to Trustee

  	
  7

  
	
  SECTION 104.

  	
  Acts of Holders; Record Dates

  	
  8

  
	
  SECTION 105.

  	
  Notices, Etc., to Trustee and Operating
  Partnership

  	
  10

  
	
  SECTION 106.

  	
  Notice to Holders; Waiver

  	
  10

  
	
  SECTION 107.

  	
  Conflict with Trust Indenture Act

  	
  10

  
	
  SECTION 108.

  	
  Effect of Headings and Table of Contents

  	
  11

  
	
  SECTION 109.

  	
  Successors and Assigns

  	
  11

  
	
  SECTION 110.

  	
  Separability Clause

  	
  11

  
	
  SECTION 111.

  	
  Benefits of Indenture

  	
  11

  
	
  SECTION 112.

  	
  Governing Law

  	
  11

  
	
  SECTION 113.

  	
  Legal Holidays

  	
  11

  
	
  SECTION 114.

  	
  Limited Liability; Immunity of
  Shareholders, Partners, Trustees, Officers and Agents of the Operating
  Partnership and Vornado Realty Trust

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  TWO

  

  SECURITY FORMS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 201.

  	
  Forms Generally

  	
  12

  
	
  SECTION 202.

  	
  Form of Face of Security

  	
  12

  
	
  SECTION 203.

  	
  Form of Reverse of Security

  	
  14

  
	
  SECTION
  204.

  	
  Form
  of Legend for Global Securities

  	
  17

  
	
  SECTION
  205.

  	
  Form
  of Trustee’s Certificate of Authentication

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  THREE

  

  THE SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  301.

  	
  Amount
  Unlimited; Issuable in Series

  	
  18

  
	
  SECTION
  302.

  	
  Denominations

  	
  21

  
	
  SECTION
  303.

  	
  Execution,
  Authentication, Delivery and Dating

  	
  21

  
	
  SECTION
  304.

  	
  Temporary
  Securities

  	
  22

  
	
  SECTION
  305.

  	
  Registration,
  Registration of Transfer and Exchange

  	
  23

  
	
  SECTION
  306.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  	
  24

  
	
  SECTION
  307.

  	
  Payment
  of Interest; Interest Rights Preserved

  	
  25

  
	
  SECTION
  308.

  	
  Persons
  Deemed Owners

  	
  26

  

 

ii

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  SECTION
  309.

  	
  Cancellation

  	
  26

  
	
  SECTION
  310.

  	
  Computation
  of Interest

  	
  27

  
	
  SECTION
  311.

  	
  CUSIP
  Numbers

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  

  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  401.

  	
  Satisfaction
  and Discharge of Indenture

  	
  27

  
	
  SECTION
  402.

  	
  Application
  of Trust Money

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  

  REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  501.

  	
  Events
  of Default

  	
  28

  
	
  SECTION
  502.

  	
  Acceleration
  of Maturity; Rescission and Annulment

  	
  30

  
	
  SECTION
  503.

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
  31

  
	
  SECTION
  504.

  	
  Trustee
  May File Proofs of Claim

  	
  32

  
	
  SECTION
  505.

  	
  Trustee
  May Enforce Claims Without Possession of Securities

  	
  32

  
	
  SECTION
  506.

  	
  Application
  of Money Collected

  	
  32

  
	
  SECTION
  507.

  	
  Limitation
  on Suits

  	
  33

  
	
  SECTION
  508.

  	
  Unconditional
  Right of Holders to Receive Principal, Premium and Interest

  	
  33

  
	
  SECTION
  509.

  	
  Restoration
  of Rights and Remedies

  	
  34

  
	
  SECTION
  510.

  	
  Rights
  and Remedies Cumulative

  	
  34

  
	
  SECTION
  511.

  	
  Delay
  or Omission Not Waiver

  	
  34

  
	
  SECTION
  512.

  	
  Control
  by Holders

  	
  34

  
	
  SECTION
  513.

  	
  Waiver
  of Past Defaults

  	
  34

  
	
  SECTION
  514.

  	
  Undertaking
  for Costs

  	
  35

  
	
  SECTION
  515.

  	
  Waiver
  of Usury, Stay or Extension Laws

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  

  THE TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  601.

  	
  Certain
  Duties and Responsibilities

  	
  35

  
	
  SECTION
  602.

  	
  Notice
  of Defaults

  	
  36

  
	
  SECTION
  603.

  	
  Certain
  Rights of Trustee

  	
  36

  
	
  SECTION
  604.

  	
  Not
  Responsible for Recitals or Issuance of Securities

  	
  37

  
	
  SECTION
  605.

  	
  May
  Hold Securities

  	
  37

  
	
  SECTION
  606.

  	
  Money
  Held in Trust

  	
  38

  
	
  SECTION
  607.

  	
  Compensation
  and Reimbursement

  	
  38

  
	
  SECTION
  608.

  	
  Disqualification;
  Conflicting Interests

  	
  38

  
	
  SECTION
  609.

  	
  Corporate
  Trustee Required; Eligibility

  	
  39

  
	
  SECTION
  610.

  	
  Resignation
  and Removal; Appointment of Successor

  	
  39

  
	
  SECTION
  611.

  	
  Acceptance
  of Appointment by Successor

  	
  40

  
	
  SECTION
  612.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
  41

  
	
  SECTION
  613.

  	
  Preferential
  Collection of Claims Against Operating Partnership

  	
  41

  
	
  SECTION
  614.

  	
  Appointment
  of Authenticating Agent

  	
  42

  

 

iii

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  

  HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND OPERATING PARTNERSHIP

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  701.

  	
  Operating
  Partnership to Furnish Trustee Names and Addresses of Holders

  	
  43

  
	
  SECTION
  702.

  	
  Preservation
  of Information; Communications to Holders

  	
  43

  
	
  SECTION
  703.

  	
  Reports
  by Trustee

  	
  44

  
	
  SECTION
  704.

  	
  Reports
  by Operating Partnership

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  

  CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  801.

  	
  Operating
  Partnership May Consolidate, Etc., Only on Certain Terms

  	
  44

  
	
  SECTION
  802.

  	
  Successor
  Substituted

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  

  SUPPLEMENTAL INDENTURES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  901.

  	
  Supplemental
  Indentures Without Consent of Holders

  	
  46

  
	
  SECTION
  902.

  	
  Supplemental
  Indentures With Consent of Holders

  	
  47

  
	
  SECTION
  903.

  	
  Execution
  of Supplemental Indentures

  	
  48

  
	
  SECTION
  904.

  	
  Effect
  of Supplemental Indentures

  	
  48

  
	
  SECTION
  905.

  	
  Conformity
  with Trust Indenture Act

  	
  48

  
	
  SECTION
  906.

  	
  Reference
  in Securities to Supplemental Indentures

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  

  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  1001.

  	
  Payment
  of Principal, Premium and Interest

  	
  49

  
	
  SECTION
  1002.

  	
  Maintenance
  of Office or Agency

  	
  49

  
	
  SECTION
  1003.

  	
  Money
  for Securities Payments to Be Held in Trust

  	
  49

  
	
  SECTION
  1004.

  	
  Statement
  by Officers as to Default

  	
  50

  
	
  SECTION
  1005.

  	
  Existence

  	
  51

  
	
  SECTION
  1006.

  	
  Maintenance
  of Properties

  	
  51

  
	
  SECTION
  1007.

  	
  Payment
  of Taxes and Other Claims

  	
  51

  
	
  SECTION
  1008.

  	
  Insurance

  	
  51

  
	
  SECTION
  1009.

  	
  Provision
  of Financial Information

  	
  52

  
	
  SECTION
  1010.

  	
  Waiver
  of Certain Covenants

  	
  52

  
	
  SECTION
  1011.

  	
  Calculation
  of Original Issue Discount

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  

  REDEMPTION OF SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  1101.

  	
  Applicability
  of Article

  	
  53

  
	
  SECTION
  1102.

  	
  Election
  to Redeem; Notice to Trustee

  	
  53

  

 

iv

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  SECTION
  1103.

  	
  Selection
  by Trustee of Securities to Be Redeemed

  	
  53

  
	
  SECTION
  1104.

  	
  Notice
  of Redemption

  	
  54

  
	
  SECTION
  1105.

  	
  Deposit
  of Redemption Price

  	
  54

  
	
  SECTION
  1106.

  	
  Securities
  Payable on Redemption Date

  	
  55

  
	
  SECTION
  1107.

  	
  Securities
  Redeemed in Part

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  

  SINKING FUNDS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  1201.

  	
  Applicability
  of Article

  	
  55

  
	
  SECTION
  1202.

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
  56

  
	
  SECTION
  1203.

  	
  Redemption
  of Securities for Sinking Fund

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN

  

  DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  1301.

  	
  Operating
  Partnership’s Option to Effect Defeasance or Covenant Defeasance

  	
  56

  
	
  SECTION
  1302.

  	
  Defeasance
  and Discharge

  	
  56

  
	
  SECTION
  1303.

  	
  Covenant
  Defeasance

  	
  57

  
	
  SECTION
  1304.

  	
  Conditions
  to Defeasance or Covenant Defeasance

  	
  57

  
	
  SECTION
  1305.

  	
  Deposited
  Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous
  Provisions

  	
  59

  
	
  SECTION
  1306.

  	
  Reinstatement

  	
  60

  

 

v

 

INDENTURE, dated as of November 25, 2003, between
Vornado Realty L.P., a limited partnership duly organized and existing under
the laws of the State of Delaware (herein called the “Operating Partnership”)
and managed by Vornado Realty Trust as its general partner, having its
principal office at 888 Seventh Avenue, New York, New York 10019, and The Bank
of New York, a New York banking corporation, as Trustee (herein called the “Trustee”).

 

RECITALS OF THE OPERATING PARTNERSHIP

 

The Operating Partnership, through Vornado Realty
Trust, has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its unsecured debentures, notes
or other evidences of indebtedness (herein called the “Securities”) to be
issued in one or more series as in this Indenture provided.

 

All things necessary to make this Indenture a valid
agreement of the Operating Partnership, 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 agreed, for
the equal and proportionate benefit of all Holders of the Securities or of
series thereof, as follows:

 

ARTICLE ONE

 

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

SECTION
101.  Definitions.

 

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

 

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

 

(2)           all other terms used herein which are
defined in the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them therein;

 

(3)           all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with generally
accepted accounting principles, and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to
any computation required or permitted hereunder shall mean such accounting
principles as are generally accepted in the United States of America at the
date of such computation;

 

(4)           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; and

 

 

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

 

“Act”, when used with respect to any Holder, has
the meaning specified in Section 104.

 

“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 Procedures” of a Depositary
means, with respect to any matter at any time, the policies and procedures of
such Depositary, if any, that are applicable to such matter at such time.

 

“Authenticating Agent” means any Person
authorized by the Trustee pursuant to Section 614 to act on behalf of the
Trustee to authenticate Securities of one or more series.

 

“Board of Trustees” means either the board of
trustees of Vornado Realty Trust 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 Vornado
Realty Trust to have been duly adopted by the Board of Trustees and to be in
full force and effect on the date of such certification, and delivered to the
Trustee.

 

“Business
Day”, when used with respect to any Place of Payment, means each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in that Place of Payment are authorized or obligated by law or
executive order to close.

 

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

 

“Common Shares” means the common shares of
beneficial interest of Vornado Realty Trust.

 

“Corporate Trust Office” means the
principal office of the Trustee in The City of New York at which at any
particular time its corporate trust business shall be administered, which
office at the date hereof is located at 101 Barclay Street, New York, New York
10286, Attention: Corporate Trust Administration.

 

“corporation”
means a corporation, association, company, limited liability company,
joint-stock company or business trust.

 

“Covenant Defeasance” has the meaning
specified in Section 1303.

 

“Defaulted Interest” has the meaning
specified in Section 307.

 

2

 

“Defeasance”
has the meaning specified in Section 1302.

 

“Depositary”
means, with respect to Securities of any series issuable in whole or in part in
the form of one or more Global Securities, any Person that is designated to act
as Depositary for such Securities as contemplated by Section 301.

 

“Event of Default” has the meaning specified in
Section 501.

 

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

 

“Expiration Date” has the meaning specified in
Section 104.

 

“Global Security” means a Security that
evidences all or part of the Securities of any series and bears the legend set
forth in Section 204 (or such legend as may be specified as contemplated by
Section 301 for such Securities).

 

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

 

“Indenture”
means this instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof, including, for all purposes
of this instrument and any such supplemental indenture, the provisions of the
Trust Indenture Act that are deemed to be a part of and govern this instrument
and any such supplemental indenture, respectively. The term “Indenture” shall
also include the terms of particular series of Securities established as
contemplated by Section 301.

 

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

 

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

 

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

 

“Maturity”,
when used with respect to any Security, means the date on which the principal
of such Security or an instalment 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 501(4) or 501(5).

 

“Officer” means the Chairman of the Board, a Vice
Chairman of the Board, the President or any Vice President, the Treasurer or
the Secretary, of Vornado Realty Trust.

 

“Officers’ Certificate” means a
certificate signed by any two Officers or by any Officer and an Assistant
Treasurer or an Assistant Secretary of Vornado Realty Trust or any Person
designated by an Officer in writing as authorized to execute and deliver such
certificate, and

 

3

 

delivered to the Trustee.
One of the Officers signing an Officers’ Certificate given pursuant to Section
1004 shall be the principal executive, financial or accounting officer of
Vornado Realty Trust.

 

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

 

“Operating Partnership Request” or
“Operating Partnership Order” means a written request or order signed in the
name of the Operating Partnership by the Chairman of the Board, the Vice
Chairman of the Board, the President or a Vice President, and by the Treasurer,
an Assistant Treasurer, the Controller, the Secretary or an Assistant Secretary
of Vornado Realty Trust, as general partner of the Operating Partnership, and
delivered to the Trustee.

 

“Opinion of Counsel” means a written opinion
of counsel, who may be counsel for the Operating Partnership.

 

“Original Issue Discount Security”
means any Security which provides for an amount less than the principal amount
thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502.

 

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

 

(1)           Securities theretofore cancelled by the Trustee or
delivered to the Trustee for cancellation;

 

(2)           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 Operating Partnership) in trust or set aside and segregated
in trust by the Operating Partnership (if the Operating Partnership 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;

 

(3)           Securities as to which Defeasance has been effected
pursuant to Section 1302; and

 

(4)           Securities which have been paid pursuant to Section 306 or
in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in
respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in
whose hands such Securities are valid obligations of the Operating Partnership;

 

provided, however, that in determining whether the Holders of the requisite principal
amount of the Outstanding Securities have given, made or taken any request,
demand, authorization, direction, notice, consent, waiver or other action
hereunder as of any date, (A) the principal

 

4

 

amount of an Original Issue Discount Security which
shall be deemed to be Outstanding shall be the amount of the principal thereof
which would be due and payable as of such date upon acceleration of the
Maturity thereof to such date pursuant to Section 502, (B) if, as of such date,
the principal amount payable at the Stated Maturity of a Security is not
determinable, the principal amount of such Security which shall be deemed to be
Outstanding shall be the amount as specified or determined as contemplated by
Section 301, (C) the principal amount of a Security denominated in one or more
foreign currencies or currency units which shall be deemed to be Outstanding
shall be the U.S. dollar equivalent, determined as of such date in the manner
provided as contemplated by Section 301, of the principal amount of such
Security (or, in the case of a Security described in Clause (A) or (B) above,
of the amount determined as provided in such Clause), and (D) Securities owned
by the Operating Partnership or any other obligor upon the Securities or any
Affiliate of the Operating Partnership or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent, waiver or other action, only
Securities which a Responsible Officer of the Trustee knows to be so owned
shall be so disregarded. Securities so owned which have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Operating Partnership or any other
obligor upon the Securities or any Affiliate of the Operating Partnership or of
such other obligor.

 

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

 

“Person”
means any individual, corporation, partnership, joint venture, trust,
unincorporated organization or government or any agency or political
subdivision thereof.

 

“Place of Payment”, when used with respect to
the Securities of any series, means the place or places where the principal of
and any premium and interest on the Securities of that series are payable as
specified as contemplated by Section 301.

 

“Predecessor Security” of any particular
Security means every previous Security evidencing all or a portion of the same
debt as that evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 306 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

 

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

 

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

 

“Regular Record Date” for the interest
payable on any Interest Payment Date on the Securities of any series means the
date specified for that purpose as contemplated by Section 301.

 

“Responsible Officer”, when used with
respect to the Trustee, means any vice president, any assistant treasurer, any
trust officer or assistant trust officer or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated

 

5

 

officers and also means,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his knowledge of and familiarity with the
particular subject.

 

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

 

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

 

“Security Register” and “Security Registrar”
have the respective meanings specified in Section 305.

 

“Special Record Date” for the payment of any
Defaulted Interest means a date fixed by the Trustee pursuant to Section 307.

 

“Stated Maturity”, when used with respect to
any Security or any instalment of principal thereof or interest thereon, means
the date specified in such Security as the fixed date on which the principal of
such Security or such instalment of principal or interest is due and payable.

 

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

 

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

 

“Trustee”
means the Person named as the “Trustee” in the first paragraph of this
instrument until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Trustee” shall mean or
include each Person who is then a Trustee hereunder, and if at any time there
is more than one such Person, “Trustee” as used with respect to the Securities
of any series shall mean the Trustee with respect to Securities of that series.

 

“U.S. Government Obligation” has the
meaning specified in Section 1304.

 

“Vice President”, when used with respect to
Vornado Realty Trust or the Trustee, means any vice president, whether or not
designated by a number or a word or words added before or after the title “vice
president”.

 

“Vornado Realty Trust” means Vornado Realty Trust, a
Maryland real estate investment trust and the general partner of the Operating
Partnership, and its successors or any successor general partner of the
Operating Partnership that serves as the manager thereof.

 

6

 

SECTION 102.  Compliance
Certificates and Opinions.

 

Upon any application or request by the Operating
Partnership to the Trustee to take any action under any provision of this
Indenture, the Operating Partnership shall furnish to the Trustee such
certificates and opinions as may be required under the Trust Indenture Act.
Each such certificate or opinion shall be given in the form of an Officers’
Certificate, if to be given by an officer of Vornado Realty Trust on behalf of
the Operating Partnership, or an Opinion of Counsel, if to be given by counsel,
and shall comply with the requirements of the Trust Indenture Act and any other
requirements set forth in this Indenture.

 

Every certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture (except
for certificates provided for in Section 1004) shall include,

 

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

 

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

 

(3)           a statement that, in the opinion of
each 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

 

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

 

SECTION 103.  Form
of Documents Delivered to Trustee.

 

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

 

Any certificate or opinion of an officer of Vornado
Realty Trust on behalf of the Operating Partnership may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which his certificate or opinion is based are erroneous. Any
such certificate or opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of Vornado Realty Trust stating that the information with
respect to such factual matters is in the possession of Vornado Realty Trust,
unless such counsel knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to such matters
are erroneous.

 

7

 

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

 

SECTION 104.  Acts
of Holders; Record Dates.

 

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 may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in
person or by agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Operating Partnership. 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 (subject to Section
601) conclusive in favor of the Trustee and the Operating Partnership, if made
in the manner provided in this Section.

 

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

 

The ownership of Securities shall be proved by the
Security Register.

 

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

 

The Operating Partnership may, in the circumstances
permitted by the Trust Indenture Act, set any day as a record date for the
purpose of determining the Holders of Outstanding Securities of any series
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 of such series, provided
that the Operating Partnership may not set a record date for, and the
provisions of this paragraph shall not apply with respect to, the giving or
making of any notice, declaration, request or direction referred to in the next
paragraph. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series 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 by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. Nothing in this paragraph shall
be construed to prevent the Operating

 

8

 

Partnership 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 cancelled and of no effect),
and nothing in this paragraph shall be construed to render ineffective any
action taken by Holders of the requisite principal amount of Outstanding
Securities of the relevant series on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Operating
Partnership, 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 of the relevant series in
the manner set forth in Section 106.

 

The Trustee may set any day as a record date for the
purpose of determining the Holders of Outstanding Securities of any series
entitled to join in the giving or making of (i) any Notice of Default, (ii) any
declaration of acceleration referred to in Section 502, (iii) any request to
institute proceedings referred to in Section 507(2) or (iv) any direction
referred to in Section 512, in each case with respect to Securities of such
series. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of such series 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 of such series 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 cancelled and of no effect),
and nothing in this paragraph shall be construed to render ineffective any
action taken by Holders of the requisite principal amount of Outstanding
Securities of the relevant series on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Trustee, at the
Operating Partnership’s expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to
the Operating Partnership in writing and to each Holder of Securities of the
relevant series in the manner set forth in Section 106.

 

With respect to any record date set pursuant to this
Section, the party hereto which sets such record dates 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 of the relevant series in
the manner set forth in Section 106, 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, the party hereto which set such record date shall
be deemed to have initially designated the 180th 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 180th day after the applicable record
date.

 

Without limiting the foregoing, a Holder entitled
hereunder 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.

 

9

 

SECTION 105.  Notices,
Etc., to Trustee and Operating Partnership.

 

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

 

(1)           the Trustee by any Holder or by the
Operating Partnership shall be sufficient for every purpose hereunder if made,
given, furnished or filed in writing to or with the Trustee at its Corporate
Trust Office, Attention: Corporate Trust Administration, or

 

(2)           the Operating Partnership by the
Trustee or by any Holder shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Operating Partnership addressed to it at
the address of its principal office specified in the first paragraph of this
instrument, Attention: Joseph Macnow, Executive Vice President–Finance and
Administration, Chief Financial Officer, or at any other address previously
furnished in writing to the Trustee by the Operating Partnership.

 

SECTION 106.  Notice
to Holders; Waiver.

 

Where this Indenture provides for notice to Holders
of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder affected by such event, at his or her address as it appears in the
Security 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. 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.

 

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

 

Where this Indenture provides for notice of any
event to a Holder of a Global Security, such notice shall be sufficiently given
if given to the Depositary for such Security (or its designee), pursuant to its
Applicable Procedures, not later than the latest date (if any), and not earlier
than the earliest date (if any), prescribed for the giving of such notice.

 

SECTION 107.  Conflict
with Trust Indenture Act.

 

If any provision hereof limits, qualifies or
conflicts with a provision of the Trust Indenture Act that is required under
such Act to be a part of and govern this Indenture, the latter provision shall
control. If any provision of this Indenture modifies or excludes any provision
of

 

10

 

the Trust Indenture Act that
may be so modified or excluded, the latter provision shall be deemed to apply
to this Indenture as so modified or to be excluded, as the case may be.

 

SECTION 108.  Effect
of Headings and Table of Contents.

 

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

 

SECTION 109.  Successors
and Assigns.

 

All covenants and agreements in this Indenture by
the Operating Partnership shall bind its successors and assigns, whether so
expressed or not.

 

SECTION 110.  Separability
Clause.

 

In case 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.

 

SECTION 111.  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 hereunder and the Holders, any benefit or any legal or
equitable right, remedy or claim under this Indenture.

 

SECTION 112.  Governing
Law.

 

This Indenture and the Securities shall be governed
by and construed in accordance with the law of the State of New York.

 

SECTION 113.  Legal
Holidays.

 

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

 

SECTION 114.  Limited
Liability; Immunity of Shareholders, Partners, Trustees, Officers and Agents of
the Operating Partnership and Vornado Realty Trust.

 

Notwithstanding any other
provision of this Indenture or of the Securities of any series to the contrary,
no recourse shall be had, whether by levy or execution or otherwise, for the
payment of any sums due under any Security, including, without limitation, the
principal of, premium, if any, or interest payable under any Security, or for
the payment or performance of any

 

11

 

obligation, covenant or
agreement under, or for any claim based on, this Indenture or any Security or
otherwise in respect of this Indenture or any Security, against any partner of
the Operating Partnership, whether limited or general, including Vornado Realty
Trust, as general partner, or any successor of any such partner or any such
partner’s or successor’s assets or against any principal, shareholder, member,
officer, director, trustee or employee of any such partner or successor, under
any rule of law, statute or constitution, or by the enforcement of any
assessment or penalty or by any legal or equitable proceeding or otherwise, nor
shall any of such parties be personally liable for any such amounts,
obligations or claims, or liable for any deficiency judgment based thereon or
with respect thereto, it being expressly understood that the sole remedies
hereunder or under any other document with respect to the Securities against
such parties with respect to such amounts, obligations or claims shall be
against the Operating Partnership and that all such liability of such parties
is and is to be, by the acceptance hereof, expressly waived and released as a
condition of, and as consideration for, the execution of this Indenture and by
the acceptance of the Securities by the Holders and as part of the
consideration for the issue of the Securities.

 

ARTICLE TWO

 

SECURITY FORMS

 

SECTION 201.  Forms
Generally.

 

The Securities of each series shall be in
substantially the form set forth in this Article, or in such other form as
shall be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or Depositary
therefor or as may, consistently herewith, be determined by the officers
executing such Securities, as evidenced by their execution thereof. If the form
of Securities of any series is established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified
by the Secretary or an Assistant Secretary of Vornado Realty Trust and
delivered to the Trustee at or prior to the delivery of the Operating
Partnership Order contemplated by Section 303 for the authentication and
delivery of such Securities.

 

The definitive Securities shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.

 

SECTION 202.  Form
of Face of Security.

 

[Insert any
legend required by the Internal Revenue Code and the regulations thereunder.]

 

12

 

Vornado Realty L.P.

 

 

	
  No.

  	
   

  	
  $

  

 

CUSIP
No.                                    

 

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

 

[If
the Security is not to bear interest prior to Maturity, insert - The principal of this Security shall not
bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the
overdue principal and any overdue premium shall bear interest at the rate of                    %
per annum (to the extent that the payment of such interest shall be legally
enforceable), from the dates such amounts are due until they are paid or made
available for payment.]

 

Payment of the principal of (and premium, if any)
and [if applicable, insert
- any such] interest on
this Security will be made at the office or agency of the Operating Partnership
maintained for that purpose in New York, New York, 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, against surrender of this Security in the
case of any payment due at the Maturity of the principal hereof (other than any
payment of interest that first becomes payable on a day other than an Interest
Payment Date); provided, however,
that at the option of the Operating Partnership

 

13

 

payment of interest may be
made by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register; and provided,
further, that if this Security is a Global Security, payment may be
made pursuant to the Applicable Procedures of the Depositary as permitted in
said Indenture.

 

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

 

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

 

In Witness Whereof, Vornado Realty Trust, the general partner
of the Operating Partnership, has caused this instrument to be duly executed
under its trust seal.

 

	
   

  	
  VORNADO REALTY L.P.

  
	
   

  	
   

  
	
   

  	
  By: Vornado Realty Trust,

  
	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  

 

	
  Attest:

  
	
   

  
	
   

  	
   

  

 

SECTION 203.  Form
of Reverse of Security.

 

This Security is one of a duly authorized issue of
securities of the Operating Partnership (herein called the “Securities”),
issued and to be issued in one or more series under an Indenture, dated as of                ,
(herein called the “Indenture”, which term shall have the meaning assigned to
it in such instrument), between the Operating Partnership and The Bank of New
York, as Trustee (herein called the “Trustee”, which term includes any
successor trustee under the Indenture), and reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Operating Partnership, the Trustee and
the Holders of the Securities and of the terms upon which the Securities are,
and are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof [if applicable, insert  - [initially] limited in aggregate principal
amount to $                ] [, provided that the Operating Partnership may, without
the consent of any Holder, at any time and from time to time increase the
initial principal amount].

 

[If
applicable, insert - The Securities of this series are subject to
redemption upon not less than 30 days’ nor more than 60 days’ notice by mail, [if applicable, insert- (1) on                 
in any year commencing with the year                 
and ending with the year                 
through operation of the sinking fund for this series at a Redemption Price
equal to 100% of the principal amount, and (2)]
at any time [if
applicable, insert - on or after                 ,
20  ], as a whole or in part,

 

14

 

at the election of the
Operating Partnership, at the following Redemption Prices (expressed as
percentages of the principal amount): If redeemed during the 12-month period
beginning                      
of the years indicated,

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

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

 

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

 

[If
applicable, insert – The
Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with
certain conditions set forth in the Indenture.]

 

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

 

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

 

15

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and obligations
of the Operating Partnership and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Operating
Partnership and the Trustee with the consent of the Holders of a majority in
principal amount of the Securities at the time Outstanding of each series to be
affected. The Indenture also contains provisions (i) permitting the Holders of
not less than a majority in principal amount of the Securities of any series at
the time Outstanding, on behalf of the Holders of all Securities of such
series, to waive compliance by the Operating Partnership with certain
provisions of the Indenture with respect to such series and (ii) permitting the
Holders of a majority in principal amount of the Securities at the time
Outstanding of any series to be affected under the Indenture (with each such
series considered separately for this purpose), on behalf of the Holders of all
Securities of such series, to waive 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.

 

As provided in and subject to the provisions of the
Indenture, the Holder of this Security shall not have the right to institute
any proceeding with respect to the Indenture, or for the appointment of a
receiver or trustee, or for any other remedy thereunder, unless such Holder
shall have previously given the Trustee written notice of a continuing Event of
Default with respect to the Securities of this series, the Holders of not less
than 25% in principal amount of the Securities of this series at the time
Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the
Holders of a majority in principal amount of Securities of this series at the
time Outstanding a direction inconsistent with such request, and shall have
failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

 

No reference herein to the Indenture and no
provision of this Security or of the Indenture shall alter or impair the
obligation of the Operating Partnership, which is absolute and unconditional,
to pay the principal of and any premium and interest 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 registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Operating Partnership in any place
where the principal of and any premium and interest on this Security are
payable, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Operating Partnership and the Security Registrar
duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

 

The Securities of this series are issuable
only in registered form without coupons in denominations of $1,000 and any
integral multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, Securities of this series are exchangeable for a
like

 

16

 

aggregate principal amount
of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

 

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

 

Prior to due presentment of this Security for
registration of transfer, the Operating Partnership, the Trustee and any agent
of the Operating Partnership 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 Operating Partnership, the
Trustee nor any such agent shall be affected by notice to the contrary.

 

[If
applicable, insert – This
Security is a Global Security and is subject to the provisions of the Indenture
relating to Global Securities, including the limitations in Section 305 thereof
on transfers and exchanges of Global Securities.]

 

[If
applicable, insert –
Interest on the principal balance of this Security shall be calculated on the
basis of a [365- or 366-day year, as
appropriate, for the actual number of days elapsed]
[360-day year of twelve 30-day months]]

 

THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

 

All terms used in this Security which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

 

SECTION 204.  Form
of Legend for Global Securities.

 

Unless otherwise specified as contemplated by
Section 301 for the Securities evidenced thereby, every Global Security
authenticated and delivered hereunder shall bear a legend in substantially the
following form:

 

This Security is a Global
Security within the meaning of the Indenture hereinafter referred to and is
registered in the name of a Depositary or a nominee thereof. This Security may
not be exchanged in whole or in part for a Security registered, and no transfer
of this Security in whole or in part may be registered, in the name of any
Person other than such Depositary or a nominee thereof, except in the limited
circumstances described in the Indenture.

 

SECTION 205.  Form
of Trustee’s Certificate of Authentication.

 

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

 

17

 

This is one of the Securities of the series
designated herein and referred to in the within-mentioned Indenture.

 

Dated:

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Authorized Signatory

  

 

ARTICLE THREE

 

THE SECURITIES

 

SECTION 301.  Amount
Unlimited; Issuable in Series.

 

The aggregate principal amount of Securities which
may be authenticated and delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more series.
There shall be established in or pursuant to a Board Resolution and, subject to
Section 303, set forth, or determined in the manner provided, in an Officers’
Certificate, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series,

 

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

 

(2)           any limit upon the aggregate
principal amount of the Securities of the series which may be authenticated and
delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities of the series pursuant to Section 304, 305, 306, 906 or 1107
and except for any Securities which, pursuant to Section 303, are deemed never
to have been authenticated and delivered hereunder);

 

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

 

(4)           the date or dates on which the
principal of any Securities of the series is payable;

 

(5)           the rate or rates at which any
Securities of the series shall bear interest, if any, the date or dates from
which any such interest shall accrue, the Interest Payment Dates on which any
such interest shall be payable and the Regular Record Date for any such
interest payable on any Interest Payment Date;

 

18

 

(6)           the place or places where the
principal of and any premium and interest on any Securities of the series shall
be payable and the manner in which any payment may be made;

 

(7)           the period or periods within which,
the price or prices at which and the terms and conditions upon which any
Securities of the series may be redeemed, in whole or in part, at the option of
the Operating Partnership and, if other than by a Board Resolution, the manner
in which any election by the Operating Partnership to redeem the Securities
shall be evidenced;

 

(8)           the obligation, if any, of the
Operating Partnership to redeem or purchase any Securities of the series
pursuant to any sinking fund or analogous provisions or at the option of the
Holder thereof and the period or periods within which, the price or prices at
which and the terms and conditions upon which any Securities of the series
shall be redeemed or purchased, in whole or in part, pursuant to such
obligation;

 

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

 

(10)         if the amount of principal of or any
premium or interest on any Securities of the series may be determined with
reference to a financial or economic measure or pursuant to a formula, the
manner in which such amounts shall be determined;

 

(11)         if other than the currency of the
United States of America, the currency, currencies or currency units in which
the principal of or any premium or interest on any Securities of the series
shall be payable and the manner of determining the equivalent thereof in the
currency of the United States of America for any purpose, including for the
purposes of making payment in the currency of the United States of America and
applying the definition of “Outstanding” in Section 101;

 

(12)         if the principal of or any premium or
interest on any Securities of the series is to be payable, at the election of
the Operating Partnership or the Holder thereof, in one or more currencies or
currency units other than that or those in which such Securities are stated to be
payable, the currency, currencies or currency units in which the principal of
or any premium or interest on such Securities as to which such election is made
shall be payable, the periods within which and the terms and conditions upon
which such election is to be made and the amount so payable (or the manner in
which such amount shall be determined);

 

(13)         if other than the entire principal
amount thereof, the portion of the principal amount of any Securities of the
series which shall be payable upon declaration of acceleration of the Maturity
thereof pursuant to Section 502;

 

(14)         if the principal amount payable at the
Stated Maturity of any Securities of the series will not be determinable as of
any one or more dates prior to the Stated Maturity, the amount which shall be
deemed to be the principal amount of such Securities as of any such date for
any purpose thereunder or hereunder, including the principal amount thereof
which shall be due and payable upon any Maturity other than the Stated Maturity
or which shall be deemed to be Outstanding as of any date prior to the Stated

 

19

 

Maturity (or, in any such case, the manner in which
such amount deemed to be the principal amount shall be determined);

 

(15)         if applicable, that the Securities of
the series, shall be subject to either or both of Defeasance or Covenant
Defeasance as provided in Article Thirteen; provided that no series of
Securities that is exchangeable for Common Shares or other securities pursuant
to Section 301(19) shall be subject to Defeasance pursuant to Section 1302.

 

(16)         if applicable, that any Securities of
the series shall be issuable in whole or in part in the form of one or more
Global Securities and, in such case, the respective Depositaries for such
Global Securities, the form of any legend or legends which shall be borne by
any such Global Security in addition to or in lieu of that set forth in Section
204 and any addition to, elimination of or other changes in the circumstances
set forth in Clause (2) of the last paragraph of Section 305 in which any such
Global Security may be exchanged in whole or in part for Securities registered,
and any transfer of such Global Security in whole or in part may be registered,
in the name or names of Persons other than the Depositary for such Global
Security or a nominee thereof;

 

(17)         any addition to, elimination of or
other change in the Events of Default which applies to any Securities of the
series and any change in the right of the Trustee or the requisite Holders of
such Securities to declare the principal amount thereof due and payable
pursuant to Section 502;

 

(18)         any addition to, elimination of or
other change in the covenants set forth in Article Ten which applies to
Securities of the series;

 

(19)         the terms and conditions, if any,
pursuant to which the Securities are exchangeable for Common Shares or other
securities; and

 

(20)         any other terms of the series (which
terms shall not be inconsistent with the provisions of this Indenture, except as
permitted by Section 901(5)).

 

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise
be provided in or pursuant to the Board Resolution referred to above and
(subject to Section 303) set forth, or determined in the manner provided, in
the Officers’ Certificate referred to above or in any such indenture
supplemental hereto.  All Securities of
any one series need not be issued at one time and, unless otherwise provided or
contemplated by this Section 301 with respect to a series of Securities,
additional Securities of a series may be issued at the option of the Operating
Partnership, without the consent of any Holder, at any time and from time to
time.

 

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

 

20

 

SECTION 302.  Denominations.

 

The Securities of each series shall be issuable only
in registered form without coupons and only in such denominations as shall be
specified as contemplated by Section 301. In the absence of any such specified
denomination with respect to the Securities of any series, the Securities of
such series shall be issuable in denominations of $1,000 and any integral
multiple thereof.

 

SECTION 303.  Execution,
Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of the
Operating Partnership by Vornado Realty Trust, as general partner, by the
Chairman of the Board, the Vice Chairman of the Board, the President or one of
the Vice Presidents, under the trust seal reproduced thereon attested by the
Secretary, one of the Assistant Secretaries or other authorized Person of
Vornado Realty Trust. 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 Vornado
Realty Trust shall bind the Operating Partnership, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at
the date of such Securities.

 

At any time and from time to time after the
execution and delivery of this Indenture, the Operating Partnership may deliver
Securities of any series executed by the Operating Partnership to the Trustee
for authentication, together with an Operating Partnership Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Operating Partnership Order shall authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been
established by or pursuant to one or more Board Resolutions as permitted by Sections
201 and 301, in authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be
fully protected in relying upon, an Opinion of Counsel stating,

 

(1)           if the form of such Securities has
been established by or pursuant to Board Resolution as permitted by Section
201, that such form has been established in conformity with the provisions of
this Indenture;

 

(2)           if the terms of such Securities have
been established by or pursuant to Board Resolution as permitted by Section
301, that such terms have been established in conformity with the provisions of
this Indenture; and

 

(3)           that such Securities, when
authenticated and delivered by the Trustee and issued by the Operating
Partnership in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of
the Operating Partnership enforceable in accordance with their 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.

 

If such form or terms have been
so established, the Trustee shall not be required to authenticate such
Securities if the issue of such Securities pursuant to this Indenture

 

21

 

will affect the Trustee’s
own rights, duties or immunities under the Securities and this Indenture or
otherwise in a manner which is not reasonably acceptable to the Trustee.

 

Notwithstanding the provisions of Section 301 and of
the preceding paragraph, if all Securities of a series are not to be originally
issued at one time, including where the size of an Outstanding series of
Securities is increased as contemplated by Section 301, it shall not be
necessary to deliver the Officers’ Certificate otherwise required pursuant to
Section 301 or the Operating Partnership Order and Opinion of Counsel otherwise
required pursuant to such preceding paragraph at or prior to the authentication
of each Security of such series if such documents are delivered at or prior to
the authentication upon original issuance of the first Security of such series
to be issued.

 

Each Security shall be dated the date of its
authentication.

 

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 manual signature, 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
Operating Partnership, and the Operating Partnership shall deliver such
Security to the Trustee for cancellation as provided in Section 309, for all
purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

 

SECTION 304.  Temporary
Securities.

 

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

 

If temporary Securities of any series are issued,
the Operating Partnership will cause definitive Securities of that series to be
prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be
exchangeable for definitive Securities of such series upon surrender of the
temporary Securities of such series at the office or agency of the Operating
Partnership in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities
of any series, the Operating Partnership shall execute and the Trustee shall
authenticate and deliver in exchange therefor one or more definitive Securities
of the same series, of any authorized denominations and of like tenor and
aggregate principal amount. Until so exchanged, the temporary Securities of any
series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series and tenor.

 

22

 

SECTION 305.  Registration,
Registration of Transfer and Exchange.

 

The Operating Partnership shall cause to be kept at
the Corporate Trust Office of the Trustee a register (the register maintained
in such office and in any other office or agency of the Operating Partnership
in a Place of Payment being herein sometimes collectively referred to as the “Security
Register”) in which, subject to such reasonable regulations as it may
prescribe, the Operating Partnership shall provide for the registration of
Securities and of transfers of Securities. The Trustee is hereby appointed
“Security Registrar” for the purpose of registering Securities and transfers of
Securities as herein provided.

 

Upon surrender for registration of transfer of any
Security of a series at the office or agency of the Operating Partnership in a
Place of Payment for that series, the Operating Partnership shall execute, and
the Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Securities of the same series, of
any authorized denominations and of like tenor and aggregate principal amount.

 

At the option of the Holder, Securities of any
series may be exchanged for other Securities of the same series, of any
authorized denominations and 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 Operating Partnership shall
execute, and the Trustee shall authenticate and deliver, the Securities which
the Holder making the exchange is entitled to receive.

 

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

 

Every Security presented or surrendered for
registration of transfer or for exchange shall (if so required by the Operating
Partnership or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Operating Partnership and
the Security Registrar duly executed, by the Holder thereof or his attorney
duly authorized in writing.

 

No service charge shall be made for any registration
of transfer or exchange of Securities, but the Operating Partnership may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Securities, other than exchanges pursuant to Section 304, 906 or
1107 not involving any transfer.

 

If the Securities of any series (or of any series
and specified tenor) are to be redeemed in part, the Operating Partnership
shall not be required (A) to issue, register the transfer of or exchange any
Securities of that series (or of that series and specified tenor, as the case
may be) during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of any such Securities selected
for redemption under Section 1103 and ending at the close of business on the
day of such mailing, or (B) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed
portion of any Security being redeemed in part.

 

23

 

The provisions of Clauses (1), (2), (3) and (4)
below shall apply only to Global Securities:

 

(1)           Each Global Security authenticated
under this Indenture shall be registered in the name of the Depositary
designated 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.

 

(2)           Notwithstanding any other provision
in this Indenture, and subject to such applicable provisions, if any, as may be
specified as contemplated by Section 301, no Global Security may be exchanged
in whole or in part for Securities registered, 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 (A)
such Depositary has notified the Operating Partnership that it is unwilling or
unable or no longer permitted under applicable law to continue as Depositary
for such Global Security or (B) there shall have occurred and be continuing an
Event of Default with respect to such Global Security or (C) the Operating
Partnership so directs the Trustee by Company Order or (D) there shall exist
such circumstances, if any, in addition to or in lieu of the foregoing as have
been specified for this purpose as contemplated by Section 301.

 

(3)           Subject to Clause (2) above and to
such applicable provisions, if any, as may be specified as contemplated by
Section 301, any exchange of a Global Security for other Securities may be made
in whole or in part, and all Securities issued in exchange for a Global
Security or any portion thereof shall be registered in such names as the
Depositary for such Global Security shall direct.

 

(4)           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, whether pursuant to this Section,
Section 304, 306, 906 or 1107 or otherwise, 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.

 

SECTION 306.  Mutilated,
Destroyed, Lost and Stolen Securities.

 

If any mutilated Security is surrendered to the
Trustee, the Operating Partnership shall execute and the Trustee shall
authenticate and deliver in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

 

If there shall be delivered to the Operating
Partnership and the Trustee (i) evidence to their satisfaction of the
destruction, loss or theft of any Security and (ii) such security or indemnity
as may be required by them to save each of them and any agent of either of them
harmless, then, in the absence of notice to the Operating Partnership or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Operating Partnership shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a

 

24

 

new Security of the same
series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or
stolen Security has become or is about to become due and payable, the Operating
Partnership in its discretion may, instead of issuing a new Security, pay such
Security.

 

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

 

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

 

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

 

SECTION 307.  Payment
of Interest; Interest Rights Preserved.

 

Except as otherwise provided as contemplated by
Section 301 with respect to any series of Securities, interest on any Security
which 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 or, if no business is conducted by the
Trustee at its Corporate Trust Office on such date, at 5:00 P.M., New York City
time, on such date.

 

Any interest on any Security of any series which is
payable, but is not punctually paid or duly provided for, on any Interest
Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Operating
Partnership, at its election in each case, as provided in Clause (1) or (2)
below:

 

(1)           The Operating Partnership may elect
to make payment of any Defaulted Interest to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following manner. The
Operating Partnership shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security of such series and the
date of the proposed payment, and at the same time the Operating Partnership
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this Clause
provided. Thereupon the Trustee shall fix a Special Record Date for the payment
of such

 

25

 

Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date of
the proposed payment and not less than 10 days after the receipt by the Trustee
of the notice of the proposed payment. The Trustee shall promptly notify the
Operating Partnership of such Special Record Date and, in the name and at the
expense of the Operating Partnership, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
given to each Holder of Securities of such series in the manner set forth in
Section 106, not less than 10 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest shall be paid to the
Persons in whose names the Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following Clause
(2).

 

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

 

Except as may be provided in this Section 307 or as
contemplated in Section 301 with respect to any Securities of a series, the
Person to whom interest shall be payable on any Security that first becomes
payable on a day that is not an Interest Payment Date shall be the Holder of
such Security on the day such interest is paid.

 

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

 

SECTION 308.  Persons
Deemed Owners.

 

Prior to due presentment of a Security for
registration of transfer, the Operating Partnership, the Trustee and any agent
of the Operating Partnership or the Trustee may treat the Person in whose name
such Security is registered as the owner of such Security for the purpose of
receiving payment of principal of and any premium and (subject to Section 307)
any interest on such Security and for all other purposes whatsoever, whether or
not such Security be overdue, and neither the Operating Partnership, the
Trustee nor any agent of the Operating Partnership or the Trustee shall be
affected by notice to the contrary.

 

SECTION 309.  Cancellation.

 

All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and shall be promptly cancelled by it. The Operating
Partnership may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Operating
Partnership may have acquired in any manner whatsoever, and may deliver to the
Trustee (or to any other Person for delivery to the Trustee) for cancellation
any Securities previously authenticated hereunder which the Operating

 

26

 

Partnership has not issued
and sold, and all Securities so delivered shall be promptly cancelled by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities cancelled as provided in this Section, except as expressly permitted
by this Indenture. All cancelled Securities held by the Trustee shall be
disposed of as directed by an Operating Partnership Order; provided,
however, that the Trustee shall not be required to destroy such
cancelled Securities.

 

SECTION 310.  Computation
of Interest.

 

Except as otherwise specified as contemplated by
Section 301 for Securities of any series, interest on the Securities of each
series shall be computed on the basis of a 360-day year of twelve 30-day
months.

 

SECTION 311.  CUSIP
Numbers.

 

The
Operating Partnership 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 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 Securities or as contained in any notice of
redemption and that reliance may be placed only on the other identification numbers
printed on the Securities.  Any such
redemption shall not be affected by any defect in or omission of such numbers.

 

ARTICLE FOUR

 

SATISFACTION AND DISCHARGE

 

SECTION 401.  Satisfaction
and Discharge of Indenture.

 

This Indenture shall upon Operating Partnership
Request cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange of any Security expressly provided for
herein or in the terms of such Security), and the Trustee, at the expense of
the Operating Partnership, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

 

(1)           either

 

(A)          all Securities theretofore
authenticated and delivered (other than (i) Securities which have been
destroyed, lost or stolen and which have been replaced or paid as provided in
Section 306 and (ii) Securities for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Operating Partnership
and thereafter repaid to the Operating Partnership or discharged from such
trust, as provided in Section 1003) have been delivered to the Trustee for
cancellation; or

 

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

 

27

 

(i)            have become due and payable, or

 

(ii)           will become due and payable at their
Stated Maturity within one year, or

 

(iii)          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
Operating Partnership,

 

and the Operating
Partnership, in the case of (i), (ii) or (iii) above, has deposited or caused
to be deposited with the Trustee as trust funds in trust for the purpose money
in an amount sufficient 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 to the date of such deposit (in the case
of Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

 

(2)           the Operating Partnership has paid or
caused to be paid all other sums payable hereunder by the Operating
Partnership; and

 

(3)           the Operating Partnership 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 Operating Partnership to the Trustee
under Section 607, the obligations of the Trustee to any Authenticating Agent
under Section 614 and, if money shall have been deposited with the Trustee
pursuant to subclause (B) of Clause (1) of this Section, the obligations of the
Trustee under Section 402 and the last paragraph of Section 1003 shall survive.

 

SECTION 402.  Application
of Trust Money.

 

Subject to the provisions of the last paragraph of
Section 1003, all money deposited with the Trustee pursuant to Section 401
shall be held in trust and applied by it, in accordance with the provisions of
the Securities and this Indenture, to the payment, either directly or through
any Paying Agent (including the Operating Partnership acting as its own Paying
Agent) as the Trustee may determine, to the Persons entitled thereto, of the
principal and any premium and interest for whose payment such money has been
deposited with the Trustee.

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 501.  Events
of Default.

 

“Event of Default”, wherever used herein with
respect to Securities of any series, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment,

 

28

 

decree or order of any court
or any order, rule or regulation of any administrative or governmental body):

 

(1)           default in the payment of any
interest upon any Security of that series when it becomes due and payable, and
continuance of such default for a period of 30 days; or

 

(2)           default in the payment of the
principal of or any premium, if any, on any Security of that series at its
Maturity; or

 

(3)           default in the deposit of any sinking
fund payment, when and as due by the terms of a Security of that series; or

 

(4)           default in the performance, or
breach, of any covenant or warranty of the Operating Partnership in this
Indenture (other than a covenant or warranty a default in whose performance or
whose breach is elsewhere in this Section specifically dealt with or which has
expressly been included in this Indenture solely for the benefit of series of
Securities other than that series), and continuance of such default or breach
for a period of 60 days after there has been given, by registered or certified
mail, to the Operating Partnership by the Trustee or to the Operating
Partnership and the Trustee by the Holders of at least 10% in principal amount
of the Outstanding Securities of that series a written notice specifying such
default or breach and requiring it to be remedied and stating that such notice
is a “Notice of Default” hereunder; or

 

(5)           a default under any bond, debenture,
note or other evidence of indebtedness for money borrowed by the Operating
Partnership (including a default with respect to Securities of any series other
than that series) having an aggregate principal amount outstanding of at least
$50,000,000, or under any mortgage, indenture or instrument (including this
Indenture) under which there may be issued or by which there may be secured or
evidenced any indebtedness for money borrowed by the Operating Partnership
having an aggregate principal amount outstanding of at least $50,000,000,
whether such indebtedness now exists or shall hereafter be created, which
default (A) shall constitute a failure to pay any portion of the principal of
such indebtedness when due and payable after the expiration of any applicable
grace period with respect thereto or (B) shall have resulted in such
indebtedness becoming or being declared due and payable prior to the date on
which it would otherwise have become due and payable, without, in the case of
Clause (A), such indebtedness having been discharged or without, in the case of
Clause (B), such indebtedness having been discharged or such acceleration
having been rescinded or annulled, in each such case within a period of 10 days
after there shall have been given, by registered or certified mail, to the Operating
Partnership by the Trustee or to the Operating Partnership and the Trustee by
the Holders of at least 10% in principal amount of the Outstanding Securities
of that series a written notice specifying such default and requiring the
Operating Partnership to cause such indebtedness to be discharged or cause such
acceleration to be rescinded or annulled, as the case may be, and stating that
such notice is a “Notice of Default” hereunder; provided,
however, that, subject to the provisions
of Sections 601 and 602, the Trustee shall not be deemed to have knowledge of
such default unless either (A) a Responsible Officer of the Trustee shall have
knowledge of such default or (B) the Trustee shall have received written notice
thereof from the Operating Partnership, from any Holder, from the holder of any
such

 

29

 

indebtedness or from the
trustee under any such mortgage, indenture or other instrument; or

 

(6)           the entry by a court having
jurisdiction in the premises of (A) a decree or order for relief in respect of
the Operating Partnership in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or (B) a decree or order adjudging the Operating Partnership a
bankrupt or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in respect of the
Operating Partnership under any applicable Federal or State law, or appointing
a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Operating Partnership 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 60 consecutive days; or

 

(7)           the commencement by the Operating
Partnership of a voluntary case or proceeding under any applicable Federal or
State bankruptcy, insolvency, reorganization or other similar law or of any
other case or proceeding to be adjudicated a bankrupt or insolvent, or the
consent by it to the entry of a decree or order for relief in respect of the
Operating Partnership in an involuntary case or proceeding under any applicable
Federal or State bankruptcy, insolvency, reorganization or other similar law or
to the commencement of any bankruptcy or insolvency case or proceeding against
it, or the filing by it of a petition or answer or consent seeking reorganization
or relief under any applicable Federal or State 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 Operating Partnership 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, or the taking of corporate action by the Operating Partnership
in furtherance of any such action; or

 

(8)           any other Event of Default provided
with respect to Securities of that series.

 

SECTION 502.  Acceleration
of Maturity; Rescission and Annulment.

 

If an Event of Default (other than an Event of
Default specified in Section 501(6) or 501(7)) with respect to Securities of
any series at the time Outstanding occurs and is continuing, then in every such
case the Trustee, upon receipt of a request from the Holders of not less than
25% in principal amount of the Outstanding Securities of that series, shall, or
the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may, declare the principal amount of all the
Securities of that series (or, if any Securities of that series are Original
Issue Discount Securities, such portion of the principal amount of such
Securities as may be specified by the terms thereof) to be due and payable
immediately, by a notice in writing to the Operating Partnership (and to the
Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable. If an
Event of Default specified in Section 501(6) or 501 (7) with respect to Securities
of any series at the time Outstanding occurs, the principal amount of all the
Securities of that series (or, if any Securities of that series are Original
Issue Discount Securities, such portion of the principal

 

30

 

amount of such Securities as
may be specified by the terms thereof) shall automatically, and without any
declaration or other action on the part of the Trustee or any Holder, become
immediately due and payable.

 

At any time after such a declaration of acceleration
with respect to Securities of any series has been made and before a judgment or
decree for payment of the money due has been obtained by the Trustee as
hereinafter in this Article provided, the Holders of a majority in principal
amount of the Outstanding Securities of that series, by written notice to the
Operating Partnership and the Trustee, may rescind and annul such declaration
and its consequences if

 

(1)           the Operating Partnership has paid or
deposited with the Trustee a sum sufficient to pay

 

(A)          all overdue interest on all Securities
of that series,

 

(B)           the principal of (and premium, if
any, on) any Securities of that series which have become due otherwise than by
such declaration of acceleration and any interest thereon at the rate or rates
prescribed therefor in such Securities,

 

(C)           to the extent that payment of such
interest is lawful, interest upon overdue interest at the rate or rates
prescribed therefor in such Securities, and

 

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

 

(2)           all Events of Default with respect to
Securities of that series, other than the non-payment of the principal of
Securities of that series which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 513.

 

No such rescission shall
affect any subsequent default or impair any right consequent thereon.

 

SECTION 503.  Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The Operating Partnership covenants that if

 

(1)           default is made in the payment of any
interest on any Security when such interest becomes due and payable and such
default continues for a period of 30 days, or

 

(2)           default is made in the payment of the
principal of (or premium, if any, on) any Security at the Maturity thereof,

 

the Operating Partnership will, upon demand of the
Trustee, pay to it, for the benefit of the Holders of such Securities, the
whole amount then due and payable on such Securities for principal and any
premium and interest and, to the extent that payment of such interest shall be
legally enforceable, interest on any overdue principal and premium and on any
overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the

 

31

 

reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

 

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

 

SECTION 504.  Trustee
May File Proofs of Claim.

 

In case of any judicial proceeding relative to the
Operating Partnership (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 under
the Trust Indenture Act 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 pay to the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

 

No provision of this Indenture shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors’ or
other similar committee.

 

SECTION 505.  Trustee
May Enforce Claims Without Possession of Securities.

 

All rights of action and claims under this Indenture
or the Securities may be prosecuted and enforced by the Trustee without the
possession of any of the Securities or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the Holders of the Securities in respect of which
such judgment has been recovered.

 

SECTION 506.  Application
of Money Collected.

 

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

 

32

 

FIRST: To the payment of all
amounts due the Trustee under Section 607; and

 

SECOND: To the payment of
the amounts then due and unpaid for principal of and any premium and interest
on the Securities in respect of which or for the benefit of which such money
has been collected, ratably, without preference or priority of any kind,
according to the amounts due and payable on such Securities for principal and
any premium and interest, respectively.

 

SECTION 507.  Limitation
on Suits.

 

No Holder of any Security of any series shall have
any right to institute any proceeding, judicial or otherwise, with respect to
this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless

 

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

 

(2)           the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

 

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

 

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

 

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

 

it being understood and
intended that no one or more of such Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other of such Holders, or to
obtain or to seek to obtain priority or preference over any other of such
Holders or to enforce any right under this Indenture, except in the manner
herein provided and for the equal and ratable benefit of all of such Holders.

 

SECTION 508.  Unconditional
Right of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other provision in this
Indenture, the Holder of any Security shall have the right, which is absolute
and unconditional, to receive payment of the principal of and any premium and
(subject to Section 307) interest on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

 

33

 

SECTION 509.  Restoration
of Rights and Remedies.

 

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

 

SECTION 510.  Rights
and Remedies Cumulative.

 

Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in
the last paragraph of Section 306, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise.
The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

 

SECTION 511.  Delay
or Omission Not Waiver.

 

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

 

SECTION 512.  Control
by Holders.

 

The Holders of a majority in principal amount of the
Outstanding Securities of any series shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series, provided that

 

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

 

(2)           the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction.

 

SECTION 513.  Waiver
of Past Defaults.

 

The Holders of not less than a majority in principal
amount of the Outstanding Securities of any series may on behalf of the Holders
of all the Securities of such series waive any past default hereunder with
respect to such series and its consequences, except a default

 

34

 

(1)           in the payment of the principal of or
any premium or interest on any Security of such series, or

 

(2)           in respect of a covenant or provision
hereof which under Article Nine cannot be modified or amended without the
consent of the Holder of each Outstanding Security of such series affected.

 

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

 

SECTION 514.  Undertaking
for Costs.

 

In any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, a court may require any party
litigant in such suit to file an undertaking to pay the costs of such suit, and
may assess costs against any such party litigant, in the manner and to the
extent provided in the Trust Indenture Act, provided that
neither this Section nor the Trust Indenture Act shall be deemed to authorize
any court to require such an undertaking or to make such an assessment in any
suit instituted by the Trustee or the Operating Partnership.

 

SECTION 515.  Waiver
of Usury, Stay or Extension Laws.

 

The Operating Partnership 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 Operating Partnership (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

 

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 601.  Certain
Duties and Responsibilities.

 

The duties and responsibilities of the Trustee shall
be as provided by the Trust Indenture Act. 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.

 

35

 

SECTION 602.  Notice
of Defaults.

 

If a default occurs hereunder with respect to
Securities of any series, the Trustee shall give the Holders of Securities of
such series notice of such default as and to the extent provided by the Trust
Indenture Act; provided, however,
that in the case of any default of the character specified in Section 501(4)
with respect to Securities of such series, no such notice to Holders shall be
given until at least 30 days after the occurrence thereof. For the purpose of
this Section, the term “default” means any event which is, or after notice or
lapse of time or both would become, an Event of Default with respect to
Securities of such series.

 

SECTION 603.  Certain
Rights of Trustee.

 

Subject to the provisions of Section 601:

 

(1)           the Trustee may rely and shall be
protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

 

(2)           any request or direction of the
Operating Partnership mentioned herein shall be sufficiently evidenced by an
Operating Partnership Request or Operating Partnership Order, and any
resolution of the Board of Trustees shall be sufficiently evidenced by a Board
Resolution;

 

(3)           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, rely upon an Officers’ Certificate;

 

(4)           the Trustee may consult with counsel
of its selection and the advice of such counsel (to be confirmed in writing) 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;

 

(5)           the Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders pursuant to this
Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity reasonably satisfactory to the Trustee against the costs,
expenses and liabilities which might be incurred by it in compliance with such
request or direction;

 

(6)           the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to

 

36

 

examine the books, records
and premises of the Operating Partnership, personally or by agent or attorney;

 

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

 

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

 

(9)           the Trustee shall not be deemed to
have notice of any default or Event of Default unless a Responsible Officer of
the Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a default is received by the Trustee at the Corporate
Trust Office of the Trustee, and such notice references the Securities and this
Indenture;

 

(10)         the rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation,
its right to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder; and

 

(11)         The Trustee may request that the
Company deliver an Officers’ Certificate setting forth the names of individuals
and or titles of officers authorized at such time to take specified actions
pursuant to this Indenture, which Officers’ Certificate may be signed by any
person authorized to sign an Officers’ Certificate, including any person
specified as so authorized in any such certificate previously delivered and not
superseded.

 

SECTION 604.  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 Operating Partnership, 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 Operating
Partnership of Securities or the proceeds thereof.

 

SECTION 605.  May
Hold Securities.

 

The Trustee, any Authenticating Agent, any Paying
Agent, any Security Registrar or any other agent of the Operating Partnership,
in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 608 and 613, may otherwise deal with the
Operating Partnership with the same rights it would have if it were not
Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other
agent.

 

37

 

SECTION 606.  Money
Held in Trust.

 

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

 

SECTION 607.  Compensation
and Reimbursement.

 

The Operating Partnership agrees

 

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

 

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

 

(3)           to indemnify the Trustee and any
predecessor Trustee for, and to hold it harmless against, any and all loss,
liability or expense including taxes (other than taxes imposed on the income of
the Trustee) incurred without negligence or bad faith on its part, arising out
of or in connection with the acceptance or administration of the trust or
trusts hereunder, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of any of
its powers or duties hereunder.

 

The Trustee shall have a lien prior to the
Securities as to all property and funds held by it hereunder for any amount
owing it or any predecessor Trustee pursuant to this Section 607 except with
respect to funds held in trust for the benefit of the Holders of particular
Securities. When the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 501(6) or Section 501(7), the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or State bankruptcy, insolvency or
other similar law.

 

The provisions of this Section shall survive the
termination of this Indenture.

 

SECTION 608.  Disqualification;
Conflicting Interests.

 

If the Trustee has or shall acquire a conflicting
interest within the meaning of the Trust Indenture Act, the Trustee shall
either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to the provisions of, the Trust Indenture Act and this
Indenture. To the extent permitted by such Act, the Trustee shall not be deemed
to have a conflicting interest by virtue of being a trustee under this
Indenture with respect to Securities of more than one series.

 

38

 

SECTION 609.  Corporate
Trustee Required; Eligibility.

 

There shall at all times be one (and only one)
Trustee hereunder with respect to the Securities of each series, which may be
Trustee hereunder for Securities of one or more other series. Each Trustee
shall be a Person that is eligible pursuant to the Trust Indenture Act to act
as such and has a combined capital and surplus of at least $50,000,000. 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 and to the extent permitted by the Trust Indenture
Act, 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 Trustee with respect to the
Securities of any series shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.

 

SECTION 610.  Resignation
and Removal; Appointment of Successor.

 

No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.

 

The Trustee may resign at any time with respect to
the Securities of one or more series by giving written notice thereof to the
Operating Partnership.

 

The Trustee may be removed at any time with respect
to the Securities of any series by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series, delivered to the
Trustee and to the Operating Partnership.

 

If at any time:

 

(1)           the Trustee shall fail to comply with
Section 608 after written request therefor by the Operating Partnership or by
any Holder who has been a bona fide Holder of a Security for at least six
months, or

 

(2)           the Trustee shall cease to be
eligible under Section 609 and shall fail to resign after written request
therefor by the Operating Partnership or by any such Holder, or

 

(3)           the Trustee shall become incapable of
acting or shall be adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation,

 

then, in any such case, (A) the Operating
Partnership by a Board Resolution may remove the Trustee with respect to all
Securities, or (B) subject to Section 514, any Holder who has been a bona fide
Holder of a Security for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.

 

39

 

If the instrument of acceptance by a
successor Trustee required by Section 611 shall not have been delivered to
the Trustee within 30 days after the giving of such notice of resignation or
removal, the Trustee resigning or being removed may petition, at the expense of
the Operating Partnership, any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.

 

If the Trustee shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of
Trustee for any cause, with respect to the Securities of one or more series,
the Operating Partnership, by a Board Resolution, shall promptly appoint a
successor Trustee or Trustees with respect to the Securities of that or those
series (it being understood that any such successor Trustee may be appointed
with respect to the Securities of one or more or all of such series and that at
any time there shall be only one Trustee with respect to the Securities of any
particular series) and shall comply with the applicable requirements of Section 611.
If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series delivered to the
Operating Partnership and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 611, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Operating Partnership.
If no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Operating Partnership or the Holders and accepted
appointment in the manner required by Section 611, any Holder who has been
a bona fide Holder of a Security of such series for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.

 

The Operating Partnership shall give notice
of each resignation and each removal of the Trustee with respect to the
Securities of any series and each appointment of a successor Trustee with
respect to the Securities of any series to all Holders of Securities of such
series in the manner provided in Section 106. Each notice shall include
the name of the successor Trustee with respect to the Securities of such series
and the address of its Corporate Trust Office.

 

SECTION 611.  Acceptance of Appointment by
Successor.

 

In case of the appointment hereunder of a
successor Trustee with respect to all Securities, every such successor Trustee
so appointed shall execute, acknowledge and deliver to the Operating
Partnership 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 Operating
Partnership 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.

 

In case of the appointment hereunder of a
successor Trustee with respect to the Securities of one or more (but not all)
series, the Operating Partnership, the retiring Trustee and each successor
Trustee with respect to the Securities of one or more series shall execute and
deliver an 

 

40

 

indenture
supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment
of such successor Trustee relates, (2) if the retiring Trustee is not
retiring with respect to all Securities, shall contain such provisions as shall
be deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Securities of that or
those series as to which the retiring Trustee is not retiring shall continue to
be vested in the retiring Trustee, and (3) shall add to or change any of
the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee,
it being understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee; and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but, on request of
the Operating Partnership or any successor Trustee, such retiring Trustee shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates.

 

Upon request of any such successor Trustee,
the Operating Partnership 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 first or second preceding
paragraph, as the case may be.

 

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.

 

SECTION 612.  Merger, Conversion, Consolidation or
Succession to Business.

 

Any corporation into which the Trustee may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder, provided such corporation shall be otherwise qualified and eligible
under this Article, without the execution or filing of any paper or any further
act on the part of any of the parties hereto. In case any Securities shall have
been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with
the same effect as if such successor Trustee had itself authenticated such
Securities.

 

SECTION 613.  Preferential Collection of Claims
Against Operating Partnership.

 

If and when the Trustee shall be or become a
creditor of the Operating Partnership (or any other obligor upon the
Securities), the Trustee shall be subject to the provisions of the Trust 

 

41

 

Indenture Act
regarding the collection of claims against the Operating Partnership (or any
such other obligor).

 

SECTION 614.  Appointment of Authenticating Agent.

 

The Trustee may appoint an Authenticating
Agent or Agents with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon original issue and upon exchange, registration of transfer,
or partial redemption thereof or pursuant to Section 306, and Securities
so authenticated shall be entitled to the benefits of this Indenture and shall
be valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Operating Partnership and
shall at all times be a corporation organized and doing business under the laws
of the United States of America, any State thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to supervision or
examination by Federal or State authority. If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section.

 

Any corporation into which an Authenticating
Agent may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating
Agent.

 

An Authenticating Agent may resign at any
time by giving written notice thereof to the Trustee and to the Operating Partnership.
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 Operating
Partnership. 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, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the
Operating Partnership and shall give notice of such appointment in the manner
provided in Section 106 to all Holders of Securities of the series with
respect to which such Authenticating Agent will serve. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

 

42

 

The Operating Partnership agrees to pay to
each Authenticating Agent from time to time such compensation for its services
under this Section as the Operating Partnership and the Authenticating
Agent shall from time to time agree in writing.

 

If an appointment with respect to one or more
series is made pursuant to this Section, the Securities of such series 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 of the series
designated therein referred to in the within-mentioned Indenture.

 

	
   

  	
  THE BANK OF
  NEW YORK,

  
	
   

  	
  As
  Trustee

  
	
   

  	
   

  
	
   

  	
  By 

  	
   

  	
  ,

  
	
   

  	
  As Authenticating Agent

  
	
   

  	
   

  
	
   

  	
  By 

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

ARTICLE SEVEN

 

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND
OPERATING PARTNERSHIP

 

SECTION 701.  Operating Partnership to Furnish
Trustee Names and Addresses of Holders.

 

The Operating Partnership will furnish or
cause to be furnished to the Trustee

 

(1)                                  semi-annually,
not later than March 15 and September 15 in each year, a list, in
such form as the Trustee may reasonably require, of the names and addresses of
the Holders of Securities of each series as of the preceding March 1 or September 1,
as the case may be, and

 

(2)                                  at
such other times as the Trustee may request in writing, within 30 days after
the receipt by the Operating Partnership of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such list
is furnished,

 

excluding from any such list names and
addresses received by the Trustee in its capacity as Security Registrar.

 

SECTION 702.  Preservation of Information;
Communications to Holders.

 

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 701
and the names and addresses of Holders received by the Trustee in its capacity
as Security Registrar. The Trustee may destroy any list furnished to it as
provided in Section 701 upon receipt of a new list so furnished.

 

43

 

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 by the Trust Indenture Act.

 

Every Holder of Securities, by receiving and
holding the same, agrees with the Operating Partnership and the Trustee that
none of the Operating Partnership, Vornado Realty Trust or the Trustee or any
agent of any of them shall be held accountable by reason of any disclosure of
information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.

 

SECTION 703.  Reports by Trustee.

 

The Trustee shall transmit to Holders such
reports concerning the Trustee and its actions under this Indenture as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto. Reports so required to be transmitted at stated
intervals of not more than 12 months shall be transmitted within 60 days after
the first date of issuance of Securities and on each anniversary of such date.

 

A copy of each such report shall, at the time
of such transmission to Holders, be filed by the Trustee with each stock
exchange upon which any Securities are listed, with the Commission and with the
Operating Partnership. The Operating Partnership will promptly notify the
Trustee when any Securities are listed on any stock exchange.

 

SECTION 704.  Reports by Operating Partnership.

 

The Operating Partnership shall file with the
Trustee and the Commission, and transmit to Holders, such information,
documents and other reports, and such summaries thereof, as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided
pursuant to such Act; provided that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of
the Exchange Act shall be filed with the Trustee within 15 days after the same
is so required to be filed with the Commission.

 

Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Operating Partnership’s compliance with any of its covenants hereunder (as
to which the Trustee is entitled to rely exclusively on Officers’
Certificates).

 

ARTICLE EIGHT

 

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER
OR LEASE

 

SECTION 801.  Operating Partnership May Consolidate,
Etc., Only on Certain Terms.

 

The Operating Partnership 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 the Operating
Partnership shall not permit any Person to consolidate with or merge into the
Operating Partnership or convey, transfer or lease its properties and assets
substantially as an entirety to the Operating Partnership, unless:

 

44

 

(1)                                  in
case the Operating Partnership 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 Person formed by such consolidation or into
which the Operating Partnership is merged or the Person which acquires by
conveyance or transfer, or which leases, the properties and assets of the
Operating Partnership substantially as an entirety shall be a corporation,
partnership or trust, shall be organized and validly existing under the laws of
the United States of America, any State thereof or the District of Columbia and
shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the due and
punctual payment of the principal of and any premium and interest on all the
Securities and the performance or observance of every covenant of this
Indenture on the part of the Operating Partnership to be performed or observed;

 

(2)                                  immediately
after giving effect to such transaction and treating any indebtedness which
becomes an obligation of the Operating Partnership or any Subsidiary as a
result of such transaction as having been incurred by the Operating Partnership
or such Subsidiary at the time of such transaction, no Event of Default, and no
event which, after notice or lapse of time or both, would become an Event of
Default, shall have happened and be continuing;

 

(3)                                  if,
as a result of any such consolidation or merger or such conveyance, transfer or
lease, properties or assets of the Operating Partnership would become subject
to a mortgage, pledge, lien, security interest or other encumbrance which would
not be permitted by this Indenture, the Operating Partnership or such successor
Person, as the case may be, shall take such steps as shall be necessary
effectively to secure the Securities equally and ratably with (or prior to) all
indebtedness secured thereby; and

 

(4)                                  the
Operating Partnership 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, such supplemental indenture comply with this Article and
that all conditions precedent herein provided for relating to such transaction
have been complied with.

 

SECTION 802.  Successor Substituted.

 

Upon any consolidation of the Operating
Partnership with, or merger of the Operating Partnership into, any other Person
or any conveyance, transfer or lease of the properties and assets of the
Operating Partnership substantially as an entirety in accordance with Section 801,
the successor Person formed by such consolidation or into which the Operating
Partnership 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 Operating Partnership under this Indenture with the same effect
as if such successor Person had been named as the Operating Partnership herein,
and thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and the
Securities.

 

45

 

ARTICLE NINE

 

SUPPLEMENTAL INDENTURES

 

SECTION 901.  Supplemental Indentures Without Consent
of Holders.

 

Without the consent of any Holders, the
Operating Partnership, 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 satisfactory to the Trustee, for any of the
following purposes:

 

(1)                                  to
evidence the succession of another Person to the Operating Partnership and the
assumption by any such successor of the covenants of the Operating Partnership
herein and in the Securities; or

 

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

 

(3)                                  to
add any additional Events of Default for the benefit of the Holders of all or
any series of Securities (and if such additional Events of Default are to be
for the benefit of less than all series of Securities, stating that such
additional Events of Default are expressly being included solely for the
benefit of such series); or

 

(4)                                  to
add to or change any of the provisions of this Indenture to such extent as
shall be necessary to permit or facilitate the issuance of Securities in bearer
form, registrable or not registrable as to principal, and with or without
interest coupons, or to permit or facilitate the issuance of Securities in
uncertificated form; or

 

(5)                                  to
add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities, provided that any such addition, change or
elimination (A) shall neither (i) apply to any Security of any series
created prior to the execution of such supplemental indenture and entitled to
the benefit of such provision nor (ii) modify the rights of the Holder of
any such Security with respect to such provision or (B) shall become
effective only when there is no such Security Outstanding; or

 

(6)                                  to
secure the Securities pursuant to the provisions of Section 801(3) or
otherwise; or

 

(7)                                  to
establish the form or terms of Securities of any series as permitted by
Sections 201 and 301; or

 

(8)                                  to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 611; or

 

46

 

(9)                                  to
cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture,
provided that such action pursuant to this Clause (9) shall not adversely
affect the interests of the Holders of Securities of any series in any material
respect.

 

SECTION 902.  Supplemental Indentures With Consent
of Holders.

 

With the consent of the Holders of not less
than a majority in principal amount of the Outstanding Securities of each
series affected by such supplemental indenture, by Act of said Holders
delivered to the Operating Partnership and the Trustee, the Operating
Partnership, 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 of such series under this Indenture; provided,
however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby,

 

(1)                                  change
the Stated Maturity of the principal of, or any installment of principal of or
interest on, any Security, or reduce the principal amount thereof or the rate
of interest thereon or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue Discount Security or
any other Security which would be due and payable upon a declaration of acceleration
of the Maturity thereof pursuant to Section 502, or change any Place of
Payment where, or the coin or currency in which, any Security or any premium or
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date), or

 

(2)                                  reduce
the percentage in principal amount of the Outstanding Securities of any series,
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
certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or

 

(3)                                  modify
any of the provisions of this Section, Section 513 or Section 1008,
except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Outstanding Security affected thereby; provided, however, that
this clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the Trustee” and concomitant changes
in this Section and Section 1008, or the deletion of this proviso, in
accordance with the requirements of Sections 611 and 901(8).

 

A supplemental
indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or
more particular series of Securities, or which modifies the rights of the
Holders of Securities of such series with respect to such covenant or other
provision, shall be deemed not to affect the rights under this Indenture of the
Holders of Securities of any other series.

 

47

 

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

 

The Operating Partnership may, but shall not
be obligated to, fix a record date for the purpose of determining the Persons
entitled to consent to any indenture supplemental hereto. If a record date is
fixed, the Holders on such record date, or their duly designated proxies, and
only such Persons, shall be entitled to consent to such supplemental indenture,
whether or not such Holders remain Holders after such record date; provided,
that unless such consent shall have become effective by virtue of the requisite
percentage having been obtained prior to the date which is 90 days after such
record date, any such consent previously given shall automatically and without
further action by any Holder be cancelled and of no further effect.

 

SECTION 903.  Execution of Supplemental Indentures.

 

In executing, or accepting the additional
trusts created by, any supplemental indenture permitted by this Article or
the modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 601) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise.

 

SECTION 904.  Effect of Supplemental Indentures.

 

Upon the execution of any supplemental
indenture under this Article, 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 theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby.

 

SECTION 905.  Conformity with Trust Indenture Act.

 

Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust
Indenture Act.

 

SECTION 906.  Reference in Securities to
Supplemental Indentures.

 

Securities of any series authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article may,
and shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Operating Partnership shall so determine, new Securities of any series so
modified as to conform, in the opinion of the Trustee and the Operating
Partnership, to any such supplemental indenture may be prepared and executed by
the Operating Partnership and authenticated and delivered by the Trustee in
exchange for Outstanding Securities of such series.

 

48

 

ARTICLE TEN

 

COVENANTS

 

SECTION 1001.  Payment of Principal, Premium and Interest.

 

The Operating Partnership covenants and
agrees for the benefit of each series of Securities that it will duly and
punctually pay the principal of and any premium and interest on the Securities
of that series in accordance with the terms of the Securities and this
Indenture.

 

SECTION 1002.  Maintenance of Office or Agency.

 

The Operating Partnership will maintain in
each Place of Payment for any series of Securities an office or agency where
Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Operating Partnership in
respect of the Securities of that series and this Indenture may be served. The Operating
Partnership will give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency. If at any time the
Operating Partnership shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Operating Partnership hereby
appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

 

The Operating Partnership may also from time
to time designate one or more other offices or agencies where the Securities of
one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided,
however, that no such designation or
rescission shall in any manner relieve the Operating Partnership of its
obligation to maintain an office or agency in each Place of Payment for
Securities of any series for such purposes. The Operating Partnership will give
prompt written notice to the Trustee of any such designation or rescission and
of any change in the location of any such other office or agency.

 

With respect to any Global Security, and
except as otherwise may be specified for such Global Security as contemplated
by Section 301, the Corporate Trust Office of the Trustee shall be the
Place of Payment where such Global Security may be presented or surrendered for
payment or for registration of transfer or exchange, or where Successor
Securities may be delivered in exchange therefore, provided, however, that any
such payment, presentation, surrender or delivery effected pursuant to the
Applicable Procedures of the Depositary for such Global Security shall be
deemed to have been effected at the Place of Payment for such Global Security
in accordance with the provisions of this Indenture.

 

SECTION 1003.  Money for Securities Payments to Be
Held in Trust.

 

If the Operating Partnership shall at any
time act as its own Paying Agent with respect to any series of Securities, it
will, on or before each due date of the principal of or any premium or interest
on any of the Securities of that series, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal
and any premium and interest so 

 

49

 

becoming due
until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure
so to act.

 

Whenever the Operating Partnership shall have
one or more Paying Agents for any series of Securities, it will, prior to each
due date of the principal of or any premium or interest on any Securities of
that series, deposit (or, if the Operating Partnership has deposited any trust
funds with a trustee pursuant to Section 1304(1), cause such trustee to
deposit) with a Paying Agent a sum sufficient to pay such amount, such sum to
be held as provided by the Trust Indenture Act, and (unless such Paying Agent
is the Trustee) the Operating Partnership will promptly notify the Trustee of
its action or failure so to act.

 

The Operating Partnership will cause each
Paying Agent for any series of Securities other than the Trustee to execute and
deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying
Agent will (1) comply with the provisions of the Trust Indenture Act
applicable to it as a Paying Agent and (2) during the continuance of any
default by the Operating Partnership (or any other obligor upon the Securities
of that series) in the making of any payment in respect of the Securities of
that series, 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 of that series.

 

The Operating Partnership may at any time,
for the purpose of obtaining the satisfaction and discharge of this Indenture
or for any other purpose, pay, or by Operating Partnership Order direct any
Paying Agent to pay, to the Trustee all sums held in trust by the Operating
Partnership 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 Operating
Partnership 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.

 

Any money deposited with the Trustee or any
Paying Agent, or then held by the Operating Partnership, in trust for the
payment of the principal of or any premium or interest on any Security of any
series and remaining unclaimed for two years after such principal, premium or
interest has become due and payable shall be paid to the Operating Partnership
on Operating Partnership Request, or (if then held by the Operating
Partnership) shall be discharged from such trust; and the Holder of such
Security shall thereafter, as an unsecured general creditor, look only to the
Operating Partnership for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Operating Partnership as trustee thereof, shall thereupon cease; provided, however, that
the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Operating Partnership cause to be
published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in New York, New
York, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to the
Operating Partnership.

 

SECTION 1004.  Statement by Officers as to Default.

 

The Operating Partnership will deliver to the
Trustee, within 120 days after the end of each fiscal year of the Operating
Partnership ending after the date hereof, an Officers’ Certificate, stating
whether or not to the best knowledge of the signers thereof the Operating
Partnership is in 

 

50

 

default in the
performance and 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 Operating Partnership shall be in default,
specifying all such defaults and the nature and status thereof of which they
may have knowledge.

 

SECTION 1005.  Existence.

 

Subject to Article Eight, the Operating
Partnership will do or cause to be done all things necessary to preserve and
keep in full force and effect its existence, rights (charter and statutory) and
franchises; provided, however,
that the Operating Partnership shall not be required to preserve any such right
or franchise if the Board of Trustees shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Operating
Partnership and that the loss thereof is not disadvantageous in any material
respect to the Holders of Outstanding Securities.

 

SECTION 1006.  Maintenance of Properties.

 

The Operating Partnership will cause all
properties used or useful in the conduct of its business or the business of any
Subsidiary to be maintained and kept in good condition, repair and working
order and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Operating Partnership may be necessary
so that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this Section shall prevent the
Operating Partnership from discontinuing the operation or maintenance of any of
such properties if such discontinuance is, in the judgment of the Operating
Partnership, desirable in the conduct of its business or the business of any
Subsidiary and not disadvantageous in any material respect to the Holders of
Outstanding Securities.

 

SECTION 1007.  Payment of Taxes and Other Claims.

 

The Operating Partnership will pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (1) all taxes, assessments and governmental charges levied or
imposed upon the Operating Partnership or any Subsidiary or upon the income,
profits or property of the Operating Partnership or any Subsidiary, and (2) all
lawful claims for labor, materials and supplies which, if unpaid, might by law
become a lien upon the property of the Operating Partnership or any Subsidiary;
provided, however,
that the Operating Partnership shall not be required to pay or discharge or
cause to be paid or discharged any such tax, assessment, charge or claim whose
amount, applicability or validity is being contested in good faith by
appropriate proceedings.

 

SECTION 1008.  Insurance.

 

The Operating Partnership will cause each of
its properties and each of the properties of its Subsidiaries which are of an
insurable nature to be insured against loss of damage with insurers of
recognized responsibility, in commercially reasonable amounts and types.

 

51

 

SECTION 1009.  Provision of Financial Information.

 

Whether or not the Operating Partnership is
subject to Section 13 or Section 15(d) of the Exchange Act, the
Operating Partnership will, to the extent permitted under the Exchange Act,
file with the Commission the annual reports, quarterly reports and other
documents that the Operating Partnership would have been required to file with
the Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act (the “Financial Statements”) if the Operating Partnership were so
subject, such documents to be filed with the Commission on or prior to the
respective dates (the “Required Filing Dates”) by which the Operating
Partnership would have been required so to file such documents if the Operating
Partnership were so subject.

 

The Operating Partnership will also in any
event (x) within 15 days of each Required Filing Date (i) transmit by mail
to all Holders, as their names and addresses appear in the Security Register,
without cost to such Holders, copies of the annual reports and quarterly
reports that the Operating Partnership would have been required to file with
the Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act if the Operating Partnership were subject to such Sections, and (ii) file
with the Trustee copies of the annual reports, quarterly reports and other
documents that the Operating Partnership would have been required to file with
the Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act if the Operating Partnership were subject to such Sections and (y)
if filing such documents by the Operating Partnership with the Commission is
not permitted under the Exchange Act, promptly upon written request and payment
of the reasonable cost of duplication and delivery, supply copies of such
documents to any prospective Holder.

 

SECTION 1010.  Waiver of Certain Covenants.

 

Except as otherwise specified as contemplated
by Section 301 for Securities of a specific series, the Operating
Partnership may, with respect to the Securities of any series, omit in any
particular instance to comply with any term, provision or condition set forth
in any covenant provided pursuant to Section 301(18), 901(2) or 901(7) for
the benefit of the Holders of such series, in Article Eight, or in any of
Sections 1005 through 1009, inclusive, if before the time for such compliance
the Holders of at least a majority in principal amount of the Outstanding
Securities of such series shall, by Act of such Holders, either waive such compliance
in such instance or generally waive compliance with such term, provision or
condition, but no such waiver shall extend to or affect such term, provision or
condition except to the extent so expressly waived, and, until such waiver
shall become effective, the obligations of the Operating Partnership and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

 

SECTION 1011.  Calculation of Original Issue
Discount.

 

The Operating Partnership shall file with the
Trustee promptly at the end of each calendar year a written notice specifying
the amount of original issue discount (including daily rates and accrual
periods) accrued on Outstanding Securities as of the end of such year, but only
if as of the end of such year Securities issued at an original issue discount
are then Outstanding.

 

52

 

ARTICLE ELEVEN

 

REDEMPTION OF SECURITIES

 

SECTION 1101.  Applicability of Article.

 

Securities of any series which are redeemable
before their Stated Maturity shall be redeemable in accordance with their terms
and (except as otherwise specified as contemplated by Section 301 for such
Securities) in accordance with this Article.

 

SECTION 1102.  Election to Redeem; Notice to Trustee.

 

The election of the Operating Partnership to
redeem any Securities shall be evidenced by a Board Resolution or in another
manner specified as contemplated by Section 301 for such Securities. In
case of any redemption at the election of the Operating Partnership of less
than all the Securities of any series (including any such redemption affecting
only a single Security), the Operating Partnership shall, at least 60 days
prior to the Redemption Date fixed by the Operating Partnership (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date, of the principal amount of Securities of such series to
be redeemed and, if applicable, of the tenor of the Securities to be redeemed.
In the case of any redemption of Securities prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, the Operating Partnership shall furnish the
Trustee with an Officers’ Certificate evidencing compliance with such
restriction.

 

SECTION 1103.  Selection by Trustee of Securities to
Be Redeemed.

 

If less than all the Securities of any series
are to be redeemed (unless all the Securities of such series and of a specified
tenor are to be redeemed or unless such redemption affects only a single
Security), the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of a portion of the principal amount of any Security
of such series, 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. If less than all
the Securities of such series and of a specified tenor are to be redeemed
(unless such redemption affects only a single Security), the particular
Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series
and specified tenor not previously called for redemption in accordance with the
preceding sentence.

 

The Trustee shall promptly notify the
Operating Partnership in writing of the Securities selected for redemption as
aforesaid and, in case of any Securities selected for partial redemption as
aforesaid, the principal amount thereof to be redeemed.

 

The provisions of the two preceding
paragraphs 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.

 

53

 

For all purposes of this Indenture, unless
the context otherwise requires, all provisions relating to the redemption of
Securities shall relate, in the case of any Securities redeemed or to be
redeemed only in part, to the portion of the principal amount of such
Securities which has been or is to be redeemed.

 

SECTION 1104.  Notice of Redemption.

 

Notice of redemption shall be given by
first-class mail, postage prepaid, mailed not less than 30 nor more than 60
days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register, with a copy to the Trustee
and any Paying Agent.

 

All notices of redemption shall identify the
Securities to be redeemed, including CUSIP number, if any, and shall state:

 

(1)                                  the
Redemption Date,

 

(2)                                  the
Redemption Price,

 

(3)                                  if
less than all the Outstanding Securities of any series consisting of more than
a single Security are to be redeemed, the identification (and, in the case of
partial redemption of any such Securities, the principal amounts) of the
particular Securities to be redeemed and, if less than all the Outstanding
Securities of any series consisting of a single Security are to be redeemed,
the principal amount of the particular Security to be redeemed,

 

(4)                                  that
on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon
will cease to accrue on and after said date,

 

(5)                                  the
place or places where each such Security is to be surrendered for payment of
the Redemption Price, and

 

(6)                                  that
the redemption is for a sinking fund, if such is the case.

 

Notice of redemption of Securities to be
redeemed at the election of the Operating Partnership shall be given by the Operating
Partnership or, at the Operating Partnership’s request made to the Trustee at
least 35 days prior to the Redemption Date, by the Trustee in the name and at
the expense of the Operating Partnership and shall be irrevocable.

 

SECTION 1105.  Deposit of Redemption Price.

 

Prior to any Redemption Date, the Operating
Partnership shall deposit with the Trustee or with a Paying Agent (or, if the
Operating Partnership is acting as its own Paying Agent, segregate and hold in
trust as provided in Section 1003) an amount of money sufficient to pay
the Redemption Price of, and (except if the Redemption Date shall be an
Interest Payment Date or the Securities of the series provide otherwise)
accrued interest on, all the Securities which are to be redeemed on that date.

 

54

 

SECTION 1106.  Securities Payable on Redemption Date.

 

Notice of redemption having been given as
aforesaid, the Securities so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified, and from and
after such date (unless the Operating Partnership shall default in the payment
of the Redemption Price and accrued interest) such Securities shall cease to
bear interest. Upon surrender of any such Security for redemption in accordance
with said notice, such Security shall be paid by the Operating Partnership at
the Redemption Price, together, if applicable, with accrued interest to the
Redemption Date; provided, however,
that, unless otherwise specified as contemplated by Section 301,
installments of interest whose Stated Maturity is on or prior to the Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section 307.

 

If any Security called for redemption shall
not be so paid upon surrender thereof for redemption, the principal and any
premium shall, until paid, bear interest from the Redemption Date at the rate
prescribed therefor in the Security.

 

SECTION 1107.  Securities Redeemed in Part.

 

Any Security which is to be redeemed only in
part shall be surrendered at a Place of Payment therefor (with, if the
Operating Partnership or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Operating
Partnership and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), and the Operating Partnership shall
execute, and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Security or Securities of the same
series and of like tenor, of any authorized denomination as requested by such
Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

 

ARTICLE TWELVE

 

SINKING FUNDS

 

SECTION 1201.  Applicability of Article.

 

The provisions of this Article shall be
applicable to any sinking fund for the retirement of Securities of any series
except as otherwise specified as contemplated by Section 301 for such
Securities.

 

The minimum amount of any sinking fund
payment provided for by the terms of any Securities is herein referred to as a “mandatory
sinking fund payment”, and any payment in excess of such minimum amount
provided for by the terms of such Securities is herein referred to as an “optional
sinking fund payment”. If provided for by the terms of any Securities, the cash
amount of any sinking fund payment may be subject to reduction as provided in Section 1202.
Each sinking fund payment shall be applied to the redemption of Securities as
provided for by the terms of such Securities.

 

55

 

SECTION 1202.  Satisfaction of Sinking Fund Payments
with Securities.

 

The Operating Partnership (1) may
deliver Outstanding Securities of a series (other than any previously called
for redemption) and (2) may apply as a credit Securities of a series which
have been redeemed either at the election of the Operating Partnership pursuant
to the terms of such Securities or through the application of permitted
optional sinking fund payments pursuant to the terms of such Securities, in
each case in satisfaction of all or any part of any sinking fund payment with
respect to any Securities of such series required to be made pursuant to the
terms of such Securities as and to the extent provided for by the terms of such
Securities; provided that the Securities to be so credited have not been
previously so credited. The Securities to be so credited shall be received and
credited for such purpose by the Trustee at the Redemption Price, as specified
in the Securities so to be redeemed, for redemption through operation of the
sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

 

SECTION 1203.  Redemption of Securities for Sinking
Fund.

 

Not less than 60 days prior to each sinking
fund payment date for any Securities, the Operating Partnership will deliver to
the Trustee an Officers’ Certificate specifying the amount of the next ensuing
sinking fund payment for such Securities pursuant to the terms of such
Securities, the portion thereof, if any, which is to be satisfied by payment of
cash and the portion thereof, if any, which is to be satisfied by delivering
and crediting Securities pursuant to Section 1202 and will also deliver to
the Trustee any Securities to be so delivered. Not less than 30 nor more than
45 days prior to each such sinking fund payment date, the Trustee shall select
the Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 1103 and cause notice of the redemption thereof to be
given in the name of and at the expense of the Operating Partnership in the
manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107.

 

ARTICLE THIRTEEN

 

DEFEASANCE AND COVENANT DEFEASANCE

 

SECTION 1301.  Operating Partnership’s Option to
Effect Defeasance or Covenant Defeasance.

 

If applicable to a particular series of
Securities, the Operating Partnership may elect, at its option at any time, to
have Section 1302 or Section 1303 applied to any such series of
Securities or any Securities of such series, as the case may be, designated
pursuant to Section 301 as being defeasible pursuant to such Section 1302
or 1303, in accordance with any applicable requirements provided pursuant to Section 301
and upon compliance with the conditions set forth below in this Article. Any
such election shall be evidenced by a Board Resolution or in another manner
specified as contemplated by Section 301 for such Securities.

 

SECTION 1302.  Defeasance and Discharge.

 

Upon the Operating Partnership’s exercise of
its option (if any) to have this Section applied to any applicable series
of Securities or any Securities of such series, as the case may be, the
Operating Partnership shall be deemed to have been discharged from its
obligations with respect to such Securities as provided in this Section on
and after the date the conditions set forth 

 

56

 

in Section 1304
are satisfied (hereinafter called “Defeasance”). For this purpose, such
Defeasance means that the Operating Partnership shall be deemed to have paid
and discharged the entire indebtedness represented by such Securities and to
have satisfied all its other obligations under such Securities and this
Indenture insofar as such Securities are concerned (and the Trustee, at the
expense of the Operating Partnership, shall execute proper instruments
acknowledging the same), subject to the following which shall survive until
otherwise terminated or discharged hereunder: (1) the rights of Holders of
such Securities to receive, solely from the trust fund described in Section 1304
and as more fully set forth in such Section, payments in respect of the
principal of and any premium and interest on such Securities when payments are
due, (2) the Operating Partnership’s obligations with respect to such
Securities under Sections 304, 305, 306, 1002 and 1003, (3) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (4) this
Article. Subject to compliance with this Article, the Operating Partnership may
exercise its option (if any) to have this Section applied to any
applicable Securities notwithstanding the prior exercise of its option (if any)
to have Section 1303 applied to such Securities.

 

SECTION 1303.  Covenant Defeasance.

 

Upon the Operating Partnership’s exercise of
its option (if any) to have this Section applied to any applicable series
of Securities or any Securities of such series, as the case may be, (1) the
Operating Partnership shall be released from its obligations under Section 801(3),
Sections 1005 through 1009, inclusive, and any covenants provided pursuant to Section 301(18),
901(2) or 901(7) for the benefit of the Holders of such Securities
and (2) the occurrence of any event specified in Sections 501(4) (with
respect to any of Section 801(3), Sections 1005 through 1009, inclusive,
and any such covenants provided pursuant to Section 301(18), 901(2) or
901(7)), 501(5) and 501(8) shall be deemed not to be or result in an
Event of Default, in each case with respect to such Securities as provided in
this Section on and after the date the conditions set forth in Section 1304
are satisfied (hereinafter called “Covenant Defeasance”). For this purpose,
such Covenant Defeasance means that, with respect to such Securities, the
Operating Partnership may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such specified Section (to
the extent so specified in the case of Section 501(4)), whether directly
or indirectly by reason of any reference elsewhere herein to any such Section or
by reason of any reference in any such Section to any other provision
herein or in any other document, but the remainder of this Indenture and such
Securities shall be unaffected thereby.

 

SECTION 1304.  Conditions to Defeasance or Covenant
Defeasance.

 

The following shall be the conditions to the
application of Section 1302 or Section 1303 to any applicable series
of Securities or any Securities of such series, as the case may be:

 

(1)                                  The
Operating Partnership shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee which satisfies the requirements
contemplated by Section 609 and agrees to comply with the provisions of
this Article applicable to it) as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for, and
dedicated solely to, the benefits of the Holders of such Securities, (A) money
in an amount, or (B) U.S. Government Obligations which through the
scheduled payment of principal and interest in respect thereof in accordance
with their terms will provide, not later than one day before the due date of
any payment, money in an amount, or (C) a combination thereof, in each case
sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written 

 

57

 

certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the Trustee (or
any such other qualifying trustee) to pay and discharge, the principal of and
any premium and interest on such Securities on the respective Stated
Maturities, in accordance with the terms of this Indenture and such Securities.
As used herein, “U.S. Government Obligation” means (x) any security which is (i) a
direct obligation of the United States of America for the payment 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 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 (y) any depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities
Act) as custodian with respect to any U.S. Government Obligation which is specified
in Clause (x) 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 U.S. Government Obligation which 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 U.S.
Government Obligation or the specific payment of principal or interest
evidenced by such depositary receipt.

 

(2)                                  In
the event of an election to have Section 1302 apply to any applicable
series of Securities or any Securities of such series, as the case may be, the
Operating Partnership shall have delivered to the Trustee an Opinion of Counsel
stating that (A) the Operating Partnership has received from, or there has
been published by, the Internal Revenue Service a ruling or (B) since the
date of this instrument, there has been a change in the applicable Federal
income tax law, in either case (A) or (B) to the effect that, and
based thereon such opinion shall confirm that, the Holders of such Securities
will not recognize gain or loss for Federal income tax purposes as a result of
the deposit, Defeasance and discharge to be effected with respect to such
Securities and will be subject to Federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit,
Defeasance and discharge were not to occur.

 

(3)                                  In
the event of an election to have Section 1303 apply to any applicable
series of Securities or any Securities of such series, as the case may be, the
Operating Partnership shall have delivered to the Trustee an Opinion of Counsel
to the effect that the Holders of such Securities will not recognize gain or
loss for Federal income tax purposes as a result of the deposit and Covenant
Defeasance to be effected with respect to such Securities and will be subject
to Federal income tax on the same amount, in the same manner and at the same
times as would be the case if such deposit and Covenant Defeasance were not to
occur.

 

(4)                                  The
Operating Partnership shall have delivered to the Trustee an Officers’
Certificate to the effect that neither such Securities nor any other Securities
of the same series, if then listed on any securities exchange, will be delisted
as a result of such deposit.

 

(5)                                  No
event which is, or after notice or lapse of time or both would become, an Event
of Default with respect to such Securities or any other Securities shall have 

 

58

 

occurred and be continuing at the time of
such deposit or, with regard to any such event specified in Sections 501(6) and
(7), at any time on or prior to the 90th day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until after
such 90th day).

 

(6)                                  Such
Defeasance or Covenant Defeasance shall not cause the Trustee to have a
conflicting interest within the meaning of the Trust Indenture Act (assuming
all Securities are in default within the meaning of such Act).

 

(7)                                  Such
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under, any other agreement or instrument to which the
Operating Partnership is a party or by which it is bound.

 

(8)                                  Such
Defeasance or Covenant Defeasance shall not result in the trust arising from
such deposit constituting an investment company within the meaning of the
Investment Company Act unless such trust shall be registered under such Act or
exempt from registration thereunder.

 

(9)                                  The
Operating Partnership shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions
precedent with respect to such Defeasance or Covenant Defeasance have been
complied with.

 

SECTION 1305.  Deposited Money and U.S. Government
Obligations to Be Held in Trust; Miscellaneous Provisions.

 

Subject to the provisions of the last
paragraph of Section 1003, all money and U.S. Government Obligations
(including the proceeds thereof) deposited with the Trustee or other qualifying
trustee (solely for purposes of this Section and Section 1306, the
Trustee and any such other trustee are referred to collectively as the “Trustee”)
pursuant to Section 1304 in respect of any Securities shall be held in
trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any
such Paying Agent (including the Operating Partnership acting as its own Paying
Agent) as the Trustee may determine, to the Holders of such Securities, of all
sums due and to become due thereon in respect of principal and any premium and
interest, but money so held in trust need not be segregated from other funds
except to the extent required by law.

 

The Operating Partnership shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the U.S. Government Obligations deposited pursuant to Section 1304
or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of
Outstanding Securities.

 

Anything in this Article to the contrary
notwithstanding, the Trustee shall deliver or pay to the Operating Partnership
from time to time upon Operating Partnership Request any money or U.S.
Government Obligations held by it as provided in Section 1304 with respect
to any Securities which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect the Defeasance or Covenant Defeasance, as
the case may be, with respect to such Securities.

 

59

 

SECTION 1306.  Reinstatement.

 

If the Trustee or the Paying Agent is unable
to apply any money in accordance with this Article with respect to any Securities
by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, then the
obligations under this Indenture and such Securities from which the Operating
Partnership has been discharged or released pursuant to Section 1302 or
1303 shall be revived and reinstated as though no deposit had occurred pursuant
to this Article with respect to such Securities, until such time as the
Trustee or Paying Agent is permitted to apply all money held in trust pursuant
to Section 1305 with respect to such Securities in accordance with this
Article; provided, however,
that if the Operating Partnership makes any payment of principal of or any
premium or interest on any such Security following such reinstatement of its
obligations, the Operating Partnership shall be subrogated to the rights (if
any) of the Holders of such Securities to receive such payment from the money
so held in trust.

 

60

 

This instrument may be executed in any number
of counterparts, each of which soe executed shall be deemed 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, and their respective seals to be
hereunto affixed and attested, all as of the day and year first above written.

 

	
   

  	
  VORNADO
  REALTY L.P.

  
	
   

  	
   

  
	
   

  	
  By: VORNADO
  REALTY TRUST,

  
	
   

  	
  its general
  partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  
	
  [seal]

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK

  
	
   

  	
   

  	
  Trustee:

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  
	
  [seal]

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

61

 

	
  STATE OF NEW
  YORK

  	
  )

  
	
   

  	
  ) ss.:

  
	
  COUNTY OF
  NEW YORK

  	
  )

  

 

 

On the     day of          ,
before me personally came               to
me known, who, being by me duly sworn, did depose and say that he is                         of
Vornado Realty Trust, a Maryland real estate investment trust described in and
which executed the foregoing instrument; that he knows the seal of said trust;
that the seal affixed to said instrument is such seal; that it was so affixed
by authority of the Board of Trustees of said trust; and that he signed his
name thereto by like authority.

 

 

	
   

  	
   

  

 

 

	
  STATE OF NEW
  YORK

  	
  )

  
	
   

  	
  ) ss.:

  
	
  COUNTY OF
  NEW YORK

  	
  )

  

 

 

On the     day of                before
me personally came             ,
to me known, who, being by me duly sworn, did depose and say that he is                    of                    ,
a corporation described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation; and that he signed his name thereto by like
authority.

 

 

	
   

  	
   

  

 

62Exhibit
10.76

EMPLOYMENT
AGREEMENT

 

AGREEMENT, executed as of
February 22, 2005 but effective as of January 1, 2005, by and between Vornado
Realty Trust (the “Company”) and Sandeep Mathrani (“Employee”).

 

IN CONSIDERATION
of the premises and the mutual covenants set forth below, the parties hereby
agree as follows:

 

1.             Employment. 
 The Company hereby agrees to
employ Employee as Executive Vice President of the Company’s retail division
(the “Retail Division”) and Employee hereby accepts such employment, on
the terms and conditions hereinafter set forth.

 

2.             Term.   The period of
employment of Employee by the Company hereunder (the “Employment Period”)
shall commence January 1, 2005 (the “Commencement Date”), and shall
continue until the fifth anniversary thereof; provided that commencing on
January 2, 2010 and upon each subsequent January 2, the Employment Period shall
be automatically extended for one additional year unless either party gives
written notice not to extend this Agreement prior to six months before such extension
would otherwise be effectuated. This Agreement
replaces in its entirety any and all prior employment agreements between the
Company and Employee and, as replaced, such prior employment agreements are
hereby terminated.

 

3.             Duties and Responsibilities.   During
the Employment Period, Employee will serve as Executive Vice President of the
Retail Division in charge of retail operations and retail development projects,
will perform other executive duties on behalf of the Company consistent with
his position and shall report to Michael Fascitelli and Steven Roth, or such
other senior officer of the Company as designated by the Chief Executive Officer
of the Company. Employee shall devote all of his working time, attention and energies
during normal business hours (other than absences due to illness or vacation)
to the performance of his duties for the Company.

 

4.             Place of Performance.   The
principal place of employment of Employee shall be at the Company’s executive
offices in New York City or Paramus, New Jersey.

 

5.             Compensation and Related Matters.

 

(a)   Base Salary and Bonus.   During
the Employment Period the Company shall pay Employee a base salary at the rate
of not less than $1,000,000 per year (“Base Salary”).
Employee’s Base Salary shall be paid in approximately equal
installments in accordance with the Company’s customary payroll practices. If Employee’s Base
Salary is increased by the Company, such increased Base Salary shall then
constitute the Base Salary for all purposes of the Agreement. In addition to
Base Salary, the Employee may be entitled to an annual
incentive bonus (“Bonus”) each fiscal year at the sole discretion of the
Company, to be payable at the same time as bonuses are paid to other executive

 

 

officers. Notwithstanding the foregoing, Employee shall receive an
annual bonus of $500,000 for the Company’s
current full fiscal year. In addition, the Employee will receive a one-time
bonus of $800,000 as of the date this
Agreement is approved by the Compensation Committee of the Company’s Board of
Trustees.

 

(b)   Share Options.   Employee will be granted options (the “Options”)
to purchase 500,000 of the Company’s
Common Shares of Beneficial Interest, par value $.04
per share (“Shares”), pursuant to the
Company’s 2002 Omnibus Share Plan (the “2002 Plan”). To the maximum extent
possible, such Options shall be “incentive stock options” within the meaning of
Section 422 of the Internal Revenue Code
of 1986, as amended (the “Code”), and otherwise shall be non-qualified stock options.
The Options will be (or have been) granted subject to the general terms of the 2002 Plan and the share option agreement thereunder.

 

(i)            Such Options will be granted in three tranches as
follows: (A) 300,000
of such Options (the “2005 Options”) have been
granted as of February 8, 2005 and have a
exercise price of $71.275 per Share; and (B) the remaining 200,000 will be granted, in one or two tranches, in 2006 or 2007
as the Employee may determine and in such proportion as the Employee
may determine. If the Employee elects to have
Options be granted in 2006, then such
Options (the “2006 Options”) will be
granted on such date in 2006 as the
Compensation Committee or other authorized party grants equity interests in the
Company generally to employees of the Company (the “Company-Wide Grant Date”)
and will have an exercise price per Share as
is determined by such authorized party based on the market value of
the Shares on such date (“Grant Date Market
Price”). If the Employee elects to have Options be granted in 2007, then such Options (the “2007
Options”) will be granted on the Company-Wide Grant Date in
2007 and have an exercise price
per Share equal to the then applicable Grant Date Market Price.

 

(ii)           Each of the 2005
Options, the 2006 Options and the
2007 Options will vest and become
exercisable at a rate of 331/3% of the
applicable number of Options granted in 2005,
2006 and 2007, respectively,
on the Annual Vesting Date with respect to 2008,
2009 and 2010, in each case
provided Employee remains an employee of the Company on such respective dates. “Annual
Vesting Date” means January 20th of each applicable year, or if such date is not a business day, the next
succeeding business day; provided however, if this Agreement terminates on or
after January 1, 2010 but prior to
January 20, 2010, the Annual Vesting Date with
respect to 2010 will be the last business
day preceding the termination of this Agreement.

 

(iii)          Notwithstanding the foregoing or anything else to the
contrary in this Agreement or in any applicable share option agreement, the
Options will accelerate and become fully exercisable if Employee is terminated
pursuant to Sections 6(e) or 6(f), or upon the
sale of the Retail Division or the Company (a

 

2

 

“Sale’’) and will be
exercisable for a period of one year following any termination of this
Agreement.

 

(c) Benefit Plans.   Employee shall be entitled to participate in
such existing employee benefit plans and insurance programs offered by the Company,
or which it may adopt from time to time, for its employees generally, in
accordance with the eligibility requirements for participation therein. Nothing
herein shall be construed so as to prevent the Company from modifying or
terminating any employee benefit plans or programs, or employee fringe
benefits, it may adopt from time to time.

 

(d) Vacation.   Employee shall be entitled to four weeks
vacation with pay for each year during the Employment Period.

 

(e) Expenses.   The
Company shall promptly reimburse Employee for all reasonable business expenses
upon the presentation of reasonably itemized statements of such expenses in
accordance with the Company’s policies and procedures now in force or as such
policies and procedures may be modified with respect to all executive officers
of the Company.

 

(f) Automobile.   The
Company shall provide Employee with an automobile and the expenses of operating
such automobile, including gas, oil, repairs
and insurance. Employee will receive a new car every three years or allowance
depending on Company’s policy at that time.

 

(g) Restricted Stock
Grant.   The Employer will grant to the Employee 16,836
shares of restricted stock. Such restricted stock has been granted as of
February 8, 2005. The restricted stock is issued pursuant to the 2002 Plan. The
restricted stock is, and will be, granted subject to the general terms of the
2002 Plan and the restricted stock agreement thereunder. Such restricted stock
will vest at a rate of 331/3% on the Annual Vesting
Date with respect to each of 2008, 2009 and 2010, in each case provided Employee
remains an employee of the Company on such respective dates. Notwithstanding
the foregoing, the restricted stock will earlier vest if the Employee’s employment is terminated pursuant to Sections 6(b), (c), (e) or (f).
Notwithstanding the foregoing, such restricted stock will become fully vested
upon a Sale.

 

6.             Termination.   Employee’s employment hereunder shall be
terminated upon the earliest of:

 

(a)   Expiration.   The expiration of the Employment Period unless
extended as provided in Section 2.

 

(b)   Death.   The death of
Employee.

 

(c)   Disability.   If,
as a result of Employee’s Disability, Employee shall have been
substantially unable to perform his duties hereunder for a period of six
consecutive months and within 30 days after written Notice of Termination is
given by the Company

 

3

 

after such six-month period, Employee shall not have returned to the
substantial performance of his duties on a full-time basis, the Company shall
have the right to terminate Employee’s employment hereunder for “Disability”.
For purposes of this Agreement, “Disability” shall have the same meaning as
that term is defined in the Company’s long term disability plan; provided,
that, if no such plan exists, “Disability” shall have the same meaning
as provided in Section 22(e)(3) of the Code.

 

(d)   Cause.   The Company
terminates Employee for Cause. For purposes of this Agreement, the Company
shall have “Cause” to terminate Employee’s employment upon Employee’s (i)
willful and continued failure to substantially perform his duties with the
Company (other than any such failure resulting from his incapacity due to
physical or mental illness) after a written demand for substantial performance
is delivered to Employee which identifies the manner in which the Company
believes that Employee has not substantially performed his duties, (ii) willful
misconduct which is economically injurious to the Company or to any entity in control
of, controlled by or under common control with the Company (an “Affiliate”),
including, but not limited to, any breach of Sections 9 and 10 hereof, or (iii)
the conviction of, or plea of guilty or nolo contendere to, a felony, or (iv) habitual drug or alcohol abuse
which materially impairs Employee’s ability to perform his duties hereunder.

 

(e)   Material Breach.   Employee terminates his employment for a
material breach of this Agreement by the Company. For purposes of this
Agreement, a “material breach” shall be deemed to occur upon a failure by the
Company to comply with any material provision of this Agreement which has not
been reasonably cured within 30 days after written notice of such noncompliance
has been given by Employee to the Company. 

 

(f)    Without Cause. The Company shall have
the right to terminate Employee’s employment hereunder without Cause by
providing Employee with a Notice of Termination.

 

(g)   Voluntary Termination. 
 Employee may terminate this
Agreement and Employee’s employment hereunder at any time upon six months prior
written notice to the Company.

 

7.             Termination Procedure.

 

(a)   Notice of Termination. Any
termination of Employee by the Company or by Employee (other than
termination pursuant to Section 6(a) or (b) hereof) shall be communicated by
written Notice of Termination to the other party hereto in accordance with
Section 13. For purposes of this Agreement, a “Notice of Termination” shall
mean a notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Employee under the
provisions so indicated.

 

4

 

(b)   Date of Termination. 
 “Date of Termination”
shall mean (i) if Employee’s employment is terminated by the expiration of this
Agreement, the date of expiration, (ii) if Employee’s employment is terminated
by his death, the date of his death, (iii) if Employee’s employment is terminated
pursuant to Section 6(c) hereof, 30 days after Notice of Termination is given
(provided that Employee shall not have again become available for service on a
regular basis during such 30-day period), or (iv) if Employee’s employment is
terminated pursuant to Sections 6(d), 6(e), 6(f) or 6(g), the date specified in
the Notice of Termination.

 

8.             Amounts Due Upon Termination or During
Disability.   In the event Employee is disabled or his
employment terminates during the Employment Period, the Company shall provide
Employee with the payments set forth below. Employee acknowledges and agrees
that the payments set forth in this Section 8 constitute liquidated damages for
termination of his employment during the Employment Period.

 

(a)   During any period that Employee fails to perform his duties
hereunder as a result of Disability (“disability period”), Employee
shall continue to receive his Base Salary at the rate then in effect for such
period until his employment is terminated pursuant to Section 6(c) hereof; provided,
that, payments so made to Employee during the first six months of the
disability period shall be reduced by the sum of the amounts, if any, paid to
the Employee at or prior to the time of any such payment under disability benefit
plans of the Company or under the Social Security disability insurance program,
and which amounts were not previously applied to reduce any such payment.
Employee shall also be entitled to any other benefits or payments provided
pursuant to any plan or policy of the Company in accordance with such plan’s or
policy’s terms.

 

(b)   If Employee’s employment is terminated pursuant to Sections 6(a),
6(d) or 6(g) the Company shall pay Employee his accrued but unpaid Base Salary
through the Date of Termination at the rate in effect at the time Notice of
Termination is given, and the Company shall have no further obligations to
Employee under this Agreement; provided, that, Employee shall
be entitled to any other benefit or payment provided pursuant to any plan or
policy of the Company in accordance with such plan’s or policy’s terms.

 

(c)   If Employee’s employment is terminated pursuant to Sections 6(e),
or 6(f), the Company shall pay to Employee his (A) accrued and
unpaid Base Salary through the Date of Termination and (B)
a payment (the “Severance Payment”) equal to the Severance Multiple
times the sum of (i) Employee’s then current Base
Salary and (ii) the average of the Bonus earned by Employee, if any, in each of
the two fiscal years immediately preceding the Date of Termination, or if
Employee has been employed less than two fiscal years, such average shall be
deemed to be $500,000. The payment described in clause (A) shall be made as soon as administratively feasible following the Date
of Termination and the payment as described in clause (B) shall be paid
ratably in accordance with the Company’s customary payroll practices over the
one-year period commencing, subject to Section 8(e), 180 days following the
Date of Termination. In

 

5

 

addition, subject to Section
8(e), if Employee’s employment is terminated pursuant to Section 6 (f),
he shall be provided with an office and secretarial support for the
90-day period following such termination. During the period from the effective
date of this Agreement until January 1, 2007, the “Severance
Multiple” will equal two, thereafter the “Severance Multiple” will equal one.

 

(d)   If Employee’s employment is terminated pursuant to Section 6(b), the Company
shall pay to Employee’s estate (i) his accrued but unpaid Base Salary through the
Date of Termination at the rate then in effect; and (ii) a pro  rata
portion (based on the number of days elapsed in the Company’s fiscal year
through the Date of Termination) of Employee’s Bonus for the fiscal year in
which the Date of Termination occurs. 

 

(e)   Notwithstanding Section 8(c) above, the Company will begin paying
the Severance Amount immediately following the Date of Termination if
commencement of such payment at such time will not violate the applicable
requirements of Section 409A of the Code. In addition, to
the extent necessary or advisable to avoid a violation of Section 409A of the
Code, the Company will not be required to provide Employee with continued use
of an office and secretarial support pursuant to Section 8(c) hereof. 

 

9.             Confidential Information and Removal of Documents.

 

(a)   Employee agrees to keep secret and retain in the strictest
confidence all Confidential Information which relates to the Company and any of
its Affiliates. “Confidential Information” (a) means information (i)
that is learned by Employee from the Company or any Affiliate before or after
the date of this Agreement (other than Confidential Information that was known
by Employee on a nonconfidential basis prior to the disclosure thereof); (ii)
that is commercially valuable to the Company and (iii) that is not published or
of public record or otherwise generally known (other than through failure of
Employee to fully perform his obligations hereunder), and (b) includes, without
limitation, customer lists, client lists, trade secrets, pricing policies and
other business affairs of the Company and any of its Affiliates. Employee
agrees not to disclose any such Confidential Information to anyone outside the
Company or any of its Affiliates, whether during or after his period of service
with the Company, except (x) as such disclosure may be required or appropriate
in connection with his service or (y) when required to do so by a court of law,
by any governmental agency or by any administrative or legislative body (including
a committee thereof) with apparent jurisdiction to order his to divulge,
disclose or make accessible such information. Employee agrees to give the Company
advance written notice of any disclosure pursuant to clause (y) of the
preceding sentence and to cooperate with any efforts by the Company to limit
the extent of such disclosure.

 

(b)   All records, files, drawings, documents, models, equipment, and
the like relating to the Company’s business, which Employee has control over
shall not be removed from the Company’s premises without its written consent,
unless such removal is in the furtherance of the Company’s business or is in
connection with Employee’s

 

6

 

carrying out his duties
under this Agreement and, if so removed, shall be returned to the Company
promptly after termination of Employee’s employment hereunder, or otherwise promptly
after removal if such removal occurs following termination of employment. Employee’s
rolodex, telephone directory and similar type items, and furniture, art work and
property owned by Employee or otherwise not owned by the Company shall not be deemed
Company property and shall not be covered by this Section 9(b). The Company shall
be the owner of all trade secrets and other products relating to the Company’s business
developed by Employee alone or in conjunction with others as part of his employment
with the Company.

 

10.           Non-Competition.

 

(a)   In consideration of the
benefits to be provided to Employee hereunder, Employee covenants that he will
not, without the prior written consent of the Company, during the Employment
Period and the period of one year (the “Restriction Period”) following his termination of
employment for any reason (other than pursuant to Sections 6(a), 6(c), 6(e) or
6(f)) engage in any way, directly or indirectly, in the sourcing and execution
of retail building acquisition, development or leasing transactions on behalf
of any public or non-public real estate company operating in any metropolitan
area where the Retail Division of the Company (i) during the Employment Period
is then operating or (ii) operated during the six-month period preceding his
termination of employment.

 

(b)   Except with the prior written consent of the Company, Employee
hereby covenants and agrees that, at all times during the Employment Period and
for a period of one year immediately following his termination for any reason
(other than pursuant to Sections 6(a), 6(c), 6(e) or 6(f)), Employee shall not
represent, in connection with any retail building acquisition, development or
leasing transaction to which the Company or any of its Affiliates is a party,
any individual or entity who (i) is a tenant of the Company or any of its
Affiliates at any time during the Employment Period or (ii) was a tenant of the
Company or any of its Affiliates at any time during the six-month period
preceding his termination of employment.

 

(c)   Employee hereby covenants and agrees that, at all times during the
Employment Period and for a period of one year immediately following his
termination for any reason, Employee shall not employ or seek to employ any
person employed at that time by the Company or any of its Affiliates, or
otherwise encourage or entice such person or entity to leave such employment.

 

(d)   Employee acknowledges that the restrictions, prohibitions and
other provisions of this Section 10 are reasonable,
fair and equitable in scope, terms and duration, are necessary to protect the
legitimate business interests of the Company and are a material inducement to
the Company to enter into this Agreement. It is the intention of the parties
hereto that the restrictions contained in this paragraph be enforceable to the
fullest extent permitted by applicable law. Therefore, to the extent any court
of competent jurisdiction shall determine that any portion of the foregoing

 

7

 

restrictions is excessive,
such provision shall not be entirely void, but rather shall be limited or
revised only to the extent necessary to make it enforceable.

 

11.           Remedy.   Should
Employee engage in or perfom, either directly or indirectly, any of the acts
prohibited by Sections 9 and 10, it is agreed that the Company shall be
entitled to immediately withhold any payments or benefits to be made to Employee
under Section 8 of this Agreement and shall be entitled to
full injunctive relief, to be issued by any competent court of equity,
enjoining and restraining Employee and each and every other person, firm,
organization, association, or corporation concerned therein, from the
continuance of such violative acts. The foregoing remedy available to Company
shall not be deemed to limit or prevent the exercise by the Company of any or all
further rights and remedies that may be available to the Company hereunder or
at law or in equity.

 

12.           Successors; Binding Agreement.   This
Agreement shall be binding upon and shall inure to the benefit of Employee, his
heirs, executors, administrators, beneficiaries and assigns and shall be
binding upon and shall inure to the benefit of the Company and its successors.

 

13.           Notice.   For the purposes of this Agreement, notices,
demands and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when delivered either
personally or by United States certified or registered
mail, return receipt requested, postage prepaid, addressed as follows:

 

If to Employee:

Sandeep Mathrani

35 East 75th St.,
Penthouse C

New York, NY 10021

(212) 737-6690

 

If to the Company:

 

Vornado Realty Trust

888 7th Avenue

New York, NY 10019

Attention: President; and

 

Vornado Realty Trust

210 Route 4 East

Paramus, New Jersey 07652

Attention: Chief Financial
Officer

 

8

 

or to such other address as
any party may have furnished to the others in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt.

 

14.           Resolution of Differences
Over Breaches of Agreement.   The
parties shall use good faith efforts to resolve any controversy or claim
arising out of, or relating to this Agreement or the breach thereof, first in
accordance with the Company’s internal review procedures, except that this
requirement shall not apply to any claim or dispute under or relating to
Sections 9 or 10 of this Agreement. If despite their good faith efforts, the parties are
unable to resolve such controversy or claim through the Company’s internal review
procedures, then such controversy or claim shall be resolved by arbitration in Manhattan,
New York, in accordance with the rules then obtaining of the American Arbitration
Association, and judgment upon the award rendered by the Arbitrator(s) may be
entered in any court having jurisdiction thereof. If any contest or dispute
shall arise between the Company and Employee regarding any provision of this
Agreement, the Company shall reimburse Employee for all legal fees and expenses
reasonably incurred by Employee in connection with such contest or dispute, but
only if Employee is successful in respect of substantially all of Employee’s
claims brought and pursued in connection with such contest or dispute.

 

15.           Governing Law.   This
Agreement is governed by, and is to be construed and enforced in accordance
with, the laws of the State of New York, without regard to principles of
conflicts of laws. If, under such law, any portion of this Agreement is at any time
deemed to be in conflict with any applicable statute, rule, regulation or ordinance,
such portion shall be deemed to be modified or altered to conform thereto or,
if that is not possible, to be omitted from this Agreement, and the invalidity
of any such portion shall not affect the force, effect and validity of the
remaining portion hereof. 

 

16.           Amendment.   No provisions of this Agreement may be
amended, modified, or waived unless such amendment or modification is agreed to
in writing signed by Employee and by a duly authorized
officer of the Company, and such waiver is set forth in writing and signed by
the party to be charged. No waiver by either party hereto at any time of any
breach by the other party hereto of any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. 

 

17.           Survival.   The
respective obligations of, and benefits afforded to, Employee and Company as
provided in Sections 9 and 10 of this
Agreement shall survive the termination of this Agreement.

 

18.           No Conflict of Interest.   During
the Employment Period, Employee shall not directly, or indirectly render
service, or undertake any employment or consulting agreement with another
entity without the express written consent of the Board. Notwithstanding the
foregoing, it is expressly understood and agreed that the Employee’s maintenance
of a limited partnership interest in the entities listed on Exhibit B annexed hereto
shall not constitute a conflict of interest for purposes of this Agreement.

 

9

 

19.           Counterparts.   This
Agreement may be executed in two or more counterparts, each of which shall be
deemed to be an original but all of which
together will constitute one and the same instrument.

 

20.           Entire Agreement.   This
Agreement sets forth the entire agreement of the parties hereto in respect of
the subject matter contained herein and supersede all prior agreements,
promises, covenants, arrangements, communications, representations or warranties,
whether oral or written, by any officer, employee or representative of any party
hereto in respect of such subject matter. Any prior agreement of the parties
hereto in respect of the subject matter contained herein is hereby
terminated and canceled.

 

21.           Section Headings.   The
section headings in this Agreement are for convenience of reference only, and
they form no part of this Agreement and shall not affect its interpretation.

 

[signature page follows]

 

10

 

IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date first
above written.

 

 

	
  VORNADO REALTY TRUST

  
	
   

  
	
  By:

  	
  /s/ Michael Fascitelli

  
	
  Michael Fascitelli

  
	
   

  
	
  EMPLOYEE

  
	
   

  
	
  /s/ Sandeep Mathrani

  	
   

  
	
  SANDEEP MATHRANI

  
			

 

 

11

 

Exhibit B

 

 

LIMITED
PARTNERSHIP INTERESTS

 

1.             TREECO/25 East Limited Partnership

2.             TREECO/Hylan Limited Partnership

3.             Wappingers Associates, L.P.

4.             Portsmouth Associates, L.P.

 

12

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