Document:

Exhibit 4.1

 

EXECUTION COPY

 

 

 

WARRANT AGREEMENT

 

BETWEEN

 

GENERAL GROWTH PROPERTIES, INC.

 

AND

 

MELLON INVESTOR SERVICES LLC,

 

as WARRANT
AGENT

 

Dated as of November 9, 2010

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.

  	
  ORIGINAL ISSUE OF
  WARRANTS

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1.

  	
  Form of Warrant Certificates

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2.

  	
  Execution and Delivery of Warrant Certificates; Vesting

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  EXERCISE PRICE;
  EXERCISE OF WARRANTS AND EXPIRATION OF WARRANTS

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1.

  	
  Exercise Price

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2.

  	
  Exercise of Warrants

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.3.

  	
  Expiration of Warrants

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.4.

  	
  Method of Exercise; Settlement of Warrant

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.5.

  	
  Transferability of Warrants and Common Stock

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.6.

  	
  Compliance with Law

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  REGISTRATION
  RIGHTS

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1.

  	
  Rule 144 Reporting

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.2.

  	
  Obtaining Exchange Listing

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.3.

  	
  The Warrant Agent

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  ADJUSTMENTS AND
  OTHER RIGHTS

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1.

  	
  Stock Dividend; Subdivision or Combination of Common Stock

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.2.

  	
  Other Dividends and Distributions

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.3.

  	
  Rights Offerings

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4.

  	
  Issuer Tender or Exchange Offers

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.5.

  	
  Reorganization, Reclassification, Consolidation, Merger or
  Sale

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.6.

  	
  Other Adjustments

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.7.

  	
  Notice of Adjustment

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  CHANGE OF CONTROL

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1.

  	
  Redemption in Connection with a Change of Control Event

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2.

  	
  Public Stock Merger

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.3.

  	
  Mixed Consideration Merger

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.4.

  	
  The Warrant Agent

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  WARRANT TRANSFER
  BOOKS

  	
  20

  

 

i

 

	
  8.

  	
  WARRANT HOLDERS

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1.

  	
  No Voting Rights

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2.

  	
  Right of Action

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  WARRANT AGENT

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1.

  	
  Nature of Duties and Responsibilities Assumed

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.2.

  	
  Compensation and Reimbursement

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.3.

  	
  Warrant Agent May Hold Company Securities

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.4.

  	
  Resignation and Removal; Appointment of Successor

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.5.

  	
  Damages

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.6.

  	
  Force Majeure

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.7.

  	
  Survival

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1.

  	
  Representations and Warranties of
  the Company

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  COVENANTS

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1.

  	
  Reservation of Common Stock for Issuance on Exercise of
  Warrants

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.2.

  	
  Notice of Distributions

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  MISCELLANEOUS

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.1.

  	
  Money and Other Property Deposited with the Warrant Agent

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.2.

  	
  Payment of Taxes

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.3.

  	
  Surrender of Certificates

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.4.

  	
  Mutilated, Destroyed, Lost and Stolen Warrant Certificates

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.5.

  	
  Removal of Legends

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.6.

  	
  Notices

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.7.

  	
  Applicable Law; Jurisdiction

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.8.

  	
  Persons Benefiting

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.9.

  	
  Counterparts

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.10.

  	
  Amendments

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.11.

  	
  Headings

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.12.

  	
  Entire Agreement

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.13.

  	
  Specific Performance

  	
  30

  

 

ii

 

List of
Exhibits

 

EXHIBIT A-1
— Form of Series A-1 Warrant Certificate

 

EXHIBIT A-2
— Form of Series A-2 Warrant Certificate

 

EXHIBIT B
— Form of Assignment

 

EXHIBIT C
— Option Pricing Assumptions / Methodology

 

SCHEDULE
A — Allocations of Warrants to Initial Investors

 

SCHEDULE
B — Warrant Agent Compensation

 

iii

 

WARRANT AGREEMENT

 

WARRANT AGREEMENT, dated as of November 9, 2010 (together
with the Warrants, this “Agreement”), by and between General Growth
Properties, Inc., a Delaware corporation (the “Company”), and Mellon Investor Services LLC, a New Jersey limited liability company (together with its
successors and assigns, the “Warrant Agent”).

 

WITNESSETH:

 

WHEREAS, the Company is issuing and delivering warrant
certificates (the “Warrant Certificates”) evidencing Warrants to
purchase up to an aggregate of 120,000,000 shares of its Common Stock, subject
to adjustment, including (a) Series A-1 Warrants to purchase
57,500,000 shares of its Common Stock, subject to adjustment, in connection
with that certain Amended and Restated Cornerstone Investment Agreement, effective
as of March 31, 2010, by and between Brookfield Retail Holdings (formerly
known as REP Investments LLC) and the Company (as amended from time to time,
the “Investment Agreement”), (b) Series A-2 Warrants to
purchase 41,071,429 shares of its Common Stock, subject to adjustment, in
connection with that certain Amended and Restated Stock Purchase Agreement,
effective as of March 31, 2010, by and between each of The Fairholme Fund
and The Fairholme Focused Income Fund (each a “Fairholme Purchaser”, and
collectively, the “Fairholme Purchasers”) and the Company (as amended
from time to time, the “Fairholme Stock Purchase Agreement”), (c) Series A-2
Warrants to purchase 16,428,571 shares of its Common Stock in connection with
that certain Amended and Restated Stock Purchase Agreement, effective as of March 31,
2010, by and between each of Pershing Square, L.P., Pershing Square II, L.P.,
Pershing Square International, Ltd. and Pershing Square International V, Ltd.
(each, a “Pershing Square Purchaser”, collectively, the “Pershing
Square Purchasers”) and the Company (as amended from time to time, the “Pershing
Square Stock Purchase Agreement” and, together with the Fairholme Stock
Purchase Agreement, the “Stock Purchase Agreements”) and (d) Series A-1 Warrants to purchase 5,000,000 shares
of its Common Stock in connection with the Blackstone Purchase Agreements (as
defined herein) and those certain designations, dated as of the date hereof, by
and among the Company and each of Brookfield Retail Holdings LLC (formerly
known as REP Investments LLC), the Fairholme Purchasers and the Pershing Square
Purchasers (the “Blackstone Designations”) pursuant to each of which
each Purchaser (as defined herein) has agreed to make an equity investment in
the Company upon the terms and subject to the conditions specified therein; and

 

WHEREAS, the Company desires the Warrant Agent to act on
behalf of the Company, and the Warrant Agent is willing so to act, in
connection with the issuance, transfer, exchange, replacement and exercise of
the Warrant Certificates and other matters as provided herein;

 

NOW, THEREFORE, in
consideration of the foregoing and for the purpose of defining the terms and
provisions of the Warrants and the respective rights and obligations thereunder
of the Company and the record holders of the Warrants, the Company and the
Warrant Agent each hereby agree as follows:

 

 

1.                                      DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

Affiliate:  of any
particular Person means any other Person controlling, controlled by or under
common control with such particular Person. 
For the purposes of this definition, (i) “control” means the
possession, directly or indirectly, of the power to direct the management and
policies of a Person whether through the ownership of voting securities,
contract or otherwise and (ii) none of the Initial Investors or their
Affiliates shall be deemed to “control” the Company or any of the Company’s
controlled Affiliates prior to such Initial Investor or Affiliate, as
applicable, acquiring or becoming part of the acquiring group for purposes of
clauses (i) or (ii) or combining with the Company for purposes of
clause (iii) of the definition of Change of Control Event.

 

Announcement Date:  the
meaning set forth in Section 5.4.

 

Blackstone B Warrant:  means a Warrant (whether held by a Blackstone
Investor or by any transferee or any other Person) that was initially issued to
a Blackstone Investor pursuant to the Brookfield Purchase Agreement (and the
corresponding Blackstone Designation) or its designees in accordance with the
last sentence of Section 2.2(a).

 

Blackstone Designations:  the meaning set forth in the recitals hereto.

 

Blackstone F/P Warrant:  means a Warrant (whether held by a Blackstone
Investor or by any transferee or any other Person) that was initially issued to
a Blackstone Investor pursuant to either the Fairholme Purchase Agreement or
the Pershing Purchase Agreement (and the corresponding Blackstone Designations)
or its designees in accordance with the last sentence of Section 2.2(a).

 

Blackstone Investors:  means all members, collectively, of the
Blackstone Purchaser Group.

 

Blackstone Purchase Agreements:  means, collectively, the Brookfield Purchase
Agreement, the Fairholme Purchase Agreement and the Pershing Purchase
Agreement.

 

Blackstone Purchaser:  means Blackstone Real Estate Partners VI L.P.

 

Blackstone Purchaser Group:  means the Blackstone Purchaser, Blackstone
Real Estate Partners (AIV) VI L.P., Blackstone Real Estate Partners VI.F L.P.,
Blackstone Real Estate Partners VI.TE.1 L.P., Blackstone Real Estate Partners
VI.TE.2 L.P., Blackstone Real Estate Holdings VI L.P. and Blackstone GGP
Principal Transaction Partners L.P. and their respective investment managers
and their respective “controlled Affiliates”. 
For such purpose, one or more investment funds under common investment
management shall constitute “controlled Affiliates” of their investment
manager.

 

Board:  the board
of directors of the Company.

 

Brookfield Consortium Member:  as
defined in the Investment Agreement.

 

2

 

Brookfield Investors:  means, collectively, the Brookfield
Consortium Members.

 

Brookfield Purchase Agreement:  means that certain Purchase Agreement, dated
as of August 2, 2010, by and between REP Investments LLC and the
Blackstone Purchaser.

 

Brookfield Purchaser:  the Purchaser defined in the Investment
Agreement.

 

Brookfield Warrant:  means a Warrant (whether held by Brookfield
Purchaser or a Brookfield Consortium Member or by any transferee or any other
Person) that was initially issued to Brookfield Retail Holdings LLC (formerly
known as REP Investments LLC), a Delaware limited liability company, pursuant
to the Investment Agreement or its designees in accordance with the last
sentence of Section 2.2(a).

 

Business Day:  any day
that is not a Saturday, Sunday, or a day on which banks in the states of New
York or New Jersey are required or permitted to be closed.

 

Cash Consideration Ratio:  means, in connection with a Mixed
Consideration Merger, a fraction, (i) the numerator of which shall be the
aggregate Fair Market Value of cash and all other property (other than Public
Stock) that holders of Common Stock will receive for each such share of Common
Stock in connection with such Mixed Consideration
Merger, and (ii) the denominator of which shall be the Fair Market Value
of all of the consideration holders of Common Stock will receive for each such
share of Common Stock in connection with such Mixed Consideration Merger; provided,
that, if the holders of Common Stock have the opportunity to elect the
consideration to be received in such Mixed Consideration Merger, the Cash
Consideration Ratio shall be determined by reference to the weighted average of
the types and amounts of consideration received in such transaction in respect
of shares of Common Stock held by holders who are not affiliated with the
Company or any entity acquiring the Company.

 

Cash Redemption Value:  the meaning set forth in Section 6.1.

 

Certificate of Incorporation:  the Company’s certificate of incorporation
(or equivalent organizational document), as amended from time to time.

 

Change of Control Event:  an event or series of events, by which (i) any
Person or group of Persons shall have acquired beneficial ownership (within the
meaning of Rule 13d-3(a) promulgated by the SEC under the Exchange
Act), directly or indirectly, of fifty percent (50%) or more (by voting power)
of the outstanding shares of Voting Securities, (ii) all or substantially
all of the consolidated assets of the Company are sold, leased (other than
leases to tenants in the ordinary course of business), exchanged or transferred
to any Person or group of Persons, (iii) the Company is consolidated,
merged, amalgamated, reorganized or otherwise enters into a similar transaction
in which it is combined with another Person (in each case, other than pursuant
to the Plan), unless shares of Common Stock held by holders who are not
affiliated with the Company or any entity acquiring the Company remain
unchanged or are exchanged for, converted into or constitute solely (except to
the extent of applicable appraisal rights or cash received in lieu of
fractional shares) the right to receive as consideration Public Stock and the
Persons who beneficially own the outstanding Voting Securities of the Company
immediately before consummation of the transaction beneficially own a majority
(by voting power) of the outstanding Voting Securities of the combined or
surviving entity or new parent immediately 

 

3

 

thereafter,
(iv) the Company engages in a reclassification or similar transaction
pursuant to which shares of Common Stock are converted into the right to
receive anything other than Public Stock, or (v) the holders of capital
stock of the Company have approved any plan or proposal for the liquidation or
dissolution of the Company; provided that with respect to an election by
any Holder pursuant to Section 6.1, no event or series of events shall constitute
a Change of Control Event if (x) such event or series of events is not
approved by a majority of the disinterested directors of the Company and (y) such
Holder or any of its Affiliates is the acquiror or part of the acquiring group
for purposes of clause (i) or (ii) above or is combined with the
Company for purposes of clause (iii) above.  For purposes of this definition, a “group”
means a group of Persons within the meaning of Rule 13d-5 under the
Exchange Act.

 

Closing Sale Price:  as of any date, the last reported per share
sales price of a share of Common Stock or the applicable security on such date
(or, if no last reported sale price is reported, the average of the bid and ask
prices or, if more than one in either case, the average of the average bid and
the average ask prices on such date) as reported on the New York Stock
Exchange, or if the Common Stock or such other security is not listed on the
New York Stock Exchange, as reported by the principal U.S. national or regional
securities exchange or quotation system on which the Common Stock or such other
security is then listed or quoted; provided, however, that in the
absence of such listing or quotations, the Closing Sale Price shall be
determined by an Independent Financial Expert appointed for such purpose, using
one or more valuation methods that the Independent Financial Expert in its best
professional judgment determines to be most appropriate, assuming such Common
Stock or securities are fully distributed and are to be sold in an arm’s-length
transaction and there was no compulsion on the part of any party to such sale
to buy or sell and taking into account all relevant factors.

 

Code:  the U.S.
Internal Revenue Code of 1986, as amended.

 

Common Stock:  the common
stock, par value $0.01, of the Company.

 

Company:  the meaning
set forth in the preamble to this Agreement and its successors and assigns.

 

Distribution:  the meaning
set forth in Section 5.2.

 

Exchange Act:  the U.S.
Securities Exchange Act of 1934, as amended.

 

Exercise Date:  the
meaning set forth in Section 3.4.

 

Exercise Price: 
means (i) for each Fairholme/Pershing Warrant, $10.50 per share, (ii) for
each Brookfield Warrant, $10.75 per share, (iii) for each Blackstone F/P
Warrant, $10.50 per share and (iv) for each Blackstone B Warrant, $10.75
per share, in each case subject to all adjustments made on or prior to the date
of exercise thereof as herein provided.

 

Expiration Date:  the
meaning set forth in Section 3.3.

 

Fairholme Investors:  all members, collectively, of the Fairholme
Purchaser Group.

 

4

 

Fairholme/Pershing Warrant:  means a Warrant (whether held by a Fairholme
Investor, Pershing Investor or by any transferee or any other Person) that was
initially issued to a Fairholme Investor or Pershing Investor pursuant to one
of the Stock Purchase Agreements or any of their designees in accordance with
the last sentence of Section 2.2(a).

 

Fairholme Purchase Agreement:  means that certain Purchase Agreement, dated
as of August 2, 2010, by and between the Fairholme Purchasers and the
Blackstone Purchaser.

 

Fairholme Purchasers:  the meaning set forth in the recitals hereto.

 

Fairholme Purchaser Group:  the Purchaser Group defined in the Fairholme
Stock Purchase Agreement.

 

Fairholme Stock Purchase Agreement:  the meaning set forth in the recitals hereto.

 

Fair Market Value:

 

(i)            in the case of shares or securities,
the average of the daily volume weighted average prices per share of such
shares or securities for the ten consecutive trading days immediately preceding
the day as of which Fair Market Value is being determined, as reported on the
New York Stock Exchange, or if such shares or securities are not listed on the
New York Stock Exchange, as reported by the principal U.S. national or regional
securities exchange or quotation system on which such shares or securities are
then listed or quoted; provided, however, if (x) such shares
or securities are not listed or quoted on the New York Stock Exchange or any
U.S. national or regional securities exchange or quotations system or (y) a
transaction impacting such shares or securities makes it unjust or inequitable
to value such shares or securities in the manner provided above as reasonably
determined in good faith by the Board, then the Fair Market Value of such
securities shall be the fair market value per share or unit of such shares or
securities as determined by an Independent Financial Expert appointed for such
purpose, using one or more valuation methods that the Independent Financial
Expert in its best professional judgment determines to be most appropriate,
assuming such shares or other securities are fully distributed and are to be
sold in an arm’s-length transaction and there was no compulsion on the part of
any party to such sale to buy or sell and taking into account all relevant
factors.

 

(ii)           in the case of cash, the amount
thereof.

 

(iii)          in the case of other property, the
Fair Market Value of such property shall be the fair market value thereof as
determined by an Independent Financial Expert appointed for such purpose, using
one or more valuation methods that the Independent Financial Expert in its best
professional judgment determines to be most appropriate, assuming such property
is to be sold in an arm’s-length transaction and there was no compulsion on the
part of any party to such sale to buy or sell and taking into account all
relevant factors.

 

Full Physical Settlement:  the settlement method with respect to Series A-1
Warrants pursuant to which an exercising Holder shall be entitled to receive
from the Company, for each Warrant exercised, a number of shares of Common
Stock equal to the Full Physical Share Amount in exchange for payment by the
Holder of the aggregate Exercise Price applicable to such Warrant.

 

5

 

Full Physical Share Amount:  the meaning set forth in Section 3.4.

 

Holders:  from time
to time, the holders of the Warrants and, unless otherwise provided or
indicated herein, the holders of the Warrant Securities, solely in their
capacity as such.

 

Independent Financial Expert:  a nationally recognized financial advisory
firm mutually agreed by the Company and the Majority
Holders. If the Company and the Majority Holders
are unable to agree on an Independent Financial Expert for a valuation
contemplated herein, each of them shall choose promptly a separate Independent
Financial Expert and these two Independent Financial Experts shall choose
promptly a third Independent Financial Expert to conduct such valuation.

 

Initial Investor: 
means, as applicable, (i) the Fairholme Purchasers, (ii) Pershing
Square Capital Management, L.P. and the Pershing Square Purchasers, (iii) the
Brookfield Purchaser; provided that, solely for the purposes of this
definition, in the event the Brookfield Purchaser is not in existence, the
Brookfield Purchaser shall be Brookfield Asset Management Inc. or an Affiliate
designated by Brookfield Asset Management Inc and (iv) the Blackstone
Purchaser.

 

Investment Agreement:  the meaning set forth in the recitals hereto.

 

Majority Holders: 
means at any time Holders of a majority in number of the outstanding
Warrants not held by the Company or any of the Company’s Affiliates.

 

Mixed Consideration Merger:  means an event described in clause (iii) of
the definition of Change of Control Event pursuant to which all of the
outstanding shares of Common Stock held by holders who are not affiliated with
the Company or any entity acquiring the Company are exchanged for, converted
into or constitute solely (except to the extent of applicable appraisal rights
or cash received in lieu of fractional shares) the right to receive as
consideration a combination of (i) Public Stock and (ii) other
securities, cash or other property.

 

Net Share Amount:  the
meaning set forth in Section 3.4.

 

Net Share Settlement:  the settlement method for Series A-1
Warrants, if elected in accordance with Section 3.4, and for Series A-2
Warrants pursuant to which an exercising Holder shall be entitled to receive
from the Company, for each Warrant exercised, a number of shares of Common
Stock equal to the Net Share Amount without any payment therefor.

 

Organic Change:  the
meaning set forth in Section 5.5.

 

Pershing Investors:  all members, collectively, of the Pershing
Purchaser Group.

 

Pershing Square Purchasers:  the meaning set forth in the recitals hereto.

 

Pershing Purchase Agreement:  means that certain Purchase Agreement, dated
as of August 2, 2010, by and between the Pershing Purchasers and the
Blackstone Purchaser.

 

Pershing Purchaser Group:  the Purchaser Group defined in the Pershing
Stock Purchase Agreement.

 

6

 

Pershing Square Stock Purchase Agreement:  the meaning set forth in the recitals hereto.

 

Pershing Square Warrant Vesting Date:  the meaning set forth in Section 2.2(b).

 

Person:  any
individual, corporation, partnership, joint venture, association, joint stock
company, limited liability company, limited liability
partnership, trust, unincorporated organization or government or
any agency or political subdivision thereof.

 

Plan:  the plan of reorganization as contemplated by
the Plan Term Sheet attached as Exhibit A to the Investment Agreement and
Stock Purchase Agreements.

 

Preliminary Change of Control Event:  with respect to the Company, the first public
announcement that describes the economic
terms of a transaction that results in a Change of Control Event.

 

Premium Per Post-Tender Share:  the meaning set forth in Section 5.4.

 

Public Stock:  means
common stock listed on a recognized U.S. national securities exchange with an
aggregate market capitalization (held by non-Affiliates of the issuer) in
excess of $1 billion in Fair Market Value.

 

Purchaser Group:  (a) means
with respect to Brookfield Purchaser, the Brookfield Consortium Members, (b) with
respect to Fairholme Purchasers, the Fairholme Purchaser Group, (c) with
respect to Pershing Square Purchasers, the Pershing Purchaser Group and (d) with
respect to the Blackstone Purchaser, the Blackstone Purchaser Group.

 

Public Stock Merger:  means an event described in clause (iii) of
the definition of Change of Control Event pursuant to which all of the
outstanding shares of Common Stock held by holders who are not affiliated with
the Company or any entity acquiring the Company are exchanged for, converted
into or constitute solely (except to the extent of applicable appraisal rights
or cash received in lieu of fractional shares) the right to receive as
consideration Public Stock.

 

Purchaser:  means each
of the Blackstone Purchasers, the Brookfield Purchaser, the Fairholme
Purchasers and the Pershing Square Purchasers.

 

Registration Rights Agreements:   means those certain registration
rights agreements, dated as of the date hereof, between the Company, and
separately, each of (i) the Pershing Investors and Blackstone Real Estate
Partners VI L.P., a Delaware limited partnership, Blackstone Real Estate Partners (AIV) VI L.P., a Delaware limited
partnership, Blackstone Real Estate
Partners VI.F L.P., a Delaware limited partnership, Blackstone Real Estate Partners VI.TE.1 L.P., a Delaware limited
partnership, Blackstone Real Estate
Partners VI.TE.2 L.P., a Delaware limited partnership, Blackstone Real Estate Holdings VI L.P., a Delaware limited
partnership, and Blackstone GGP Principal
Transaction Partners L.P., a Delaware limited partnership, (ii) the Fairholme Investors and (iii) Brookfield
Retail Holdings LLC (formerly known as REP Investments LLC), a Delaware limited
liability company, Brookfield Retail Holdings II LLC, a Delaware limited
liability company, Brookfield Retail Holdings III LLC, a Delaware limited
liability company, Brookfield Retail Holdings IV-A LLC, a Delaware limited 

 

7

 

liability
company, Brookfield Retail Holdings IV-D LLC, a Delaware limited liability
company, Brookfield Retail Holdings V LP, a Delaware limited partnership, and
Brookfield US Retail Holdings LLC, a Delaware limited liability company.

 

Rule 144: 
means such rule promulgated under the Securities Act (or any
successor provision), as the same shall be amended from time to time.

 

Sale:  the meaning set forth in Section 3.6(a) of
this Agreement.

 

SEC:  the U.S.
Securities and Exchange Commission.

 

Securities Act:  the
U.S. Securities Act of 1933, as amended.

 

Securities Exchange Act:  the U.S. Securities Exchange Act of 1934, as
amended.

 

Sell: the meaning set forth in Section 3.6(a) of
this Agreement.

 

Series A-1 Warrants:  the Series A-1 Warrants issued by the
Company from time to time pursuant to this Agreement.

 

Series A-2 Warrants:  the Series A-2 Warrants issued by the
Company from time to time pursuant to this Agreement.

 

Settlement Date: 
means, in respect of a Warrant that is exercised hereunder, a reasonable
time, not to exceed three Business Days, immediately following the Exercise
Date for such Warrant.

 

Stock Consideration Ratio:  means, in connection with a Mixed
Consideration Merger, 1 — the Cash Consideration Ratio for such Mixed
Consideration Merger.

 

Stock Dividend:  the
meaning set forth in Section 5.1.

 

Stock Purchase Agreements:  the meaning set forth in the recitals to this
Agreement.

 

Supermajority Holders:  means at any time Holders of two-thirds or greater in number of the outstanding Warrants
not held by the Company or any of the Company’s Affiliates.

 

Underlying Common Stock:  the shares of Common Stock issuable or issued
upon the exercise of the Warrants.

 

Voting Securities: 
means any securities of the Company, surviving entity or parent, as
applicable, having power generally to vote in the election of directors of the
Company, surviving entity or parent, as applicable.

 

Warrant Agent:  the
meaning set forth in the preamble to this Agreement.

 

Warrant Certificates:  the meaning set forth in the recitals to this
Agreement.

 

Warrant Registrar:  the meaning set forth in Article 7.

 

8

 

Warrant Securities:   the meaning set forth in Section 3.6(a).

 

Warrants:  the Series A-1 Warrants and the Series A-2
Warrants.

 

2.                                      ORIGINAL ISSUE OF WARRANTS.

 

2.1           Form of Warrant Certificates.  The
Warrant Certificates shall be in registered form only and substantially in the
form attached hereto as Exhibit A-1, with respect to Series A-1
Warrants, and Exhibit A-2, with respect to Series A-2
Warrants, with such appropriate instructions, omissions, substitutions and other
variations as are required or permitted by this Agreement (but which do not
affect the rights, duties or responsibilities of the Warrant Agent) shall be dated the date on which countersigned
by the Warrant Agent and may have such legends and endorsements typed, stamped,
printed, lithographed or engraved thereon as required by the Certificate of
Incorporation or as may be required to comply with any law or with any rule or
regulation pursuant thereto or with any rule or regulation of any
securities exchange on which the Warrants may be listed.

 

2.2           Execution and Delivery of Warrant
Certificates; Vesting.

 

(a)           Simultaneously with the execution of this
Agreement, Warrant Certificates evidencing such total
number of Warrants to be delivered to each Initial Investor
as set forth on Schedule A shall be executed by the Company and
delivered to the Warrant Agent for countersignature, by manual or facsimile
signature, and the Warrant Agent shall thereupon countersign and deliver such
Warrant Certificates to each Initial Investor (or their designee(s) in
accordance with the last sentence of this Section 2.2(a)).  The Warrant Certificates shall be executed on
behalf of the Company by its President or a Vice President, either manually or
by facsimile signature printed thereon. 
Each Initial Investor, in its sole discretion, may designate that some
or all of its Warrants and Warrant Certificates be issued in the name of, and
delivered to, one or more of the members of its Purchaser Group.

 

(b)           Solely with respect to the Warrants delivered pursuant to the Pershing
Square Stock Purchase Agreement, such Warrants (i) shall not vest or be exercisable prior to the New Warrant
Vesting Date (as defined in the Pershing Square Stock Purchase Agreement) (the “Pershing
Square Warrant Vesting Date”) and (ii) shall expire and not vest if, after the date hereof but prior to the
Pershing Square Warrant Vesting Date, all (but not less than all) of the
outstanding shares of Common Stock shall have been acquired by any single
Person or “group” (within the meaning of Section 13(d)(3) of the
Exchange Act, and the rules and regulations promulgated thereunder) of
Persons, other than the Company, any Initial Investor or any Affiliate of the
Company or any Initial Investor, in a full cash tender offer or in a full cash
merger transaction that, in each case, has been approved after the date hereof
by the Board.

 

(c)           From time to time, the Warrant Agent shall countersign and deliver
Warrant Certificates in required denominations to Persons entitled thereto in
connection with any transfer or exchange permitted under this Agreement. The
Warrant Agent is hereby irrevocably (but subject to Article 9)
authorized to countersign and deliver Warrant Certificates as required by Section 2.2,
Section 3.4, Article 7, and Section 12.4 or
otherwise as provided herein. The Warrant Certificates shall be executed on
behalf of the Company by its President or a Vice 

 

9

 

President, either manually or by facsimile signature
printed thereon. The Warrant Certificates shall be countersigned by the Warrant
Agent, either manually or by facsimile signature, and shall not be valid for
any purpose unless so countersigned. In case any officer of the Company whose
signature shall have been placed upon any of the Warrant Certificates shall
cease to be such officer of the Company before countersignature by the Warrant
Agent and issue and delivery thereof, such Warrant Certificates may,
nevertheless, be countersigned by the Warrant Agent, either manually or by
facsimile signature printed thereon, and issued and delivered with the same
force and effect as though such Person had not ceased to be such officer of the
Company

 

(d)           No Warrant Certificate shall be entitled to any benefit under this
Agreement or be valid or obligatory for any purpose, and no Warrant evidenced
thereby may be exercised, unless such Warrant Certificate has been
countersigned by the manual or facsimile signature of the Warrant Agent.  Such signature by the Warrant Agent upon any
Warrant Certificate executed by the Company shall be conclusive evidence that
such Warrant Certificate has been duly issued under the terms of this
Agreement.

 

3.                                      EXERCISE PRICE; EXERCISE OF WARRANTS AND EXPIRATION OF WARRANTS.

 

3.1           Exercise Price.  Each
Warrant Certificate shall, when countersigned by the Warrant Agent, entitle the
Holder thereof, subject to the provisions of this Agreement, to purchase,
except as provided in Section 3.3 hereof, one share of Common Stock
for each Warrant represented thereby, subject to all adjustments made on or
prior to the date of exercise thereof, at the applicable Exercise Price.

 

3.2           Exercise of Warrants.  The
Warrants shall be exercisable in whole or in part from time to time on any
Business Day beginning on the date hereof and ending on the Expiration Date, in the
manner provided for herein; provided, that solely with respect to the
exercise any time prior to the date that is 180 days prior to the Expiration
Date of any Warrant held at the time of exercise by a Fairholme or Pershing
Investor, such Fairholme or Pershing Investor must have delivered written
notice of its intent to exercise such Warrant to the Company 90 days prior to
the Exercise Date of such Warrant and no exercise of such Warrant shall be
effective until such 90-day period has lapsed.

 

3.3           Expiration of Warrants.  Any
unexercised Warrants shall expire and the rights of the Holders of such
Warrants to purchase Underlying Common Stock shall terminate at the close of
business on November       , 2017 (the “Expiration
Date”).

 

3.4           Method of Exercise; Settlement of Warrant.  In
order to exercise a Warrant, the Holder thereof must (i) surrender the
Warrant Certificate evidencing such Warrant to the Warrant Agent, with the form
on the reverse of or attached to the Warrant Certificate properly completed and
duly executed (the date of the surrender of such Warrant Certificate, the “Exercise
Date”), and (ii) with respect to Series A-1 Warrants for which
Net Share Settlement is not elected, deliver in full the aggregate Exercise
Price then in effect for the shares of Underlying Common Stock as to which a
Warrant Certificate is submitted for exercise, not later than the Settlement
Date as more fully set forth herein. 
Full Physical Settlement shall apply to each Series A-1 Warrant
unless the Holder elects for Net Share Settlement to apply upon exercise of 

 

10

 

such Warrant.  Only Net Share Settlement shall apply (and
shall be automatically deemed to have been irrevocably elected) upon exercise of
each Series A-2 Warrant.  The election of Net Share
Settlement shall be made in the form on the reverse of or attached to the
Warrant Certificate for each Series A-1 Warrant.

 

(a)           If Full Physical Settlement is applicable with respect to the exercise of
a Warrant, then, for each Series A-1 Warrant exercised hereunder (i) prior
to 11:00 a.m., New York City time, on the Settlement Date for such
Warrant, the Holder shall pay the aggregate Exercise Price (determined as of
such Exercise Date) for the number of shares of Common Stock obtainable upon
exercise of such Warrant at such time by federal wire or other immediately
available funds payable to the order of the Company to the account maintained
by the Warrant Agent and notified to the Holder upon request of the Holder, and
(ii) on the Settlement Date, following receipt by the Warrant Agent of
such Exercise Price, the Company shall cause to be delivered to the Holder the
number of shares of Common Stock obtainable upon exercise of each Series A-1
Warrant at such time (the “Full Physical Share Amount”), together with
cash in respect of any fractional shares of Common Stock as provided in Section 3.4(f).

 

(b)           If Net Share Settlement is applicable with respect to the exercise of a
Warrant, then, for each Warrant exercised hereunder, on the Settlement Date for
such Warrant, the Company shall cause to be delivered to the Holder a number of
shares of Common Stock (which in no event will be less than zero) (the “Net
Share Amount”) equal to (i) the number of shares of Common Stock
issuable upon exercise of such Warrant at such time, multiplied by (ii) the
Closing Sale Price on the relevant Exercise Date, minus the Exercise Price
(determined as of such Exercise Date), divided by (iii) such Closing Sale
Price, together with cash in respect of any fractional shares of Common Stock
as provided in Section 3.4(f). 
The Warrant Agent shall not take any action under this Section unless
and until the Company has provided it with written instructions containing the
Net Share Amount.  The Warrant Agent
shall have no duty or obligation to investigate or confirm whether the Company’s
determination of the number of the Net Share Amount is accurate or correct.

 

(c)           Upon surrender of a Warrant Certificate to the Warrant Agent in conformity
with the foregoing provisions and, in the event of Full Physical Settlement of
a Series A-1 Warrant, receipt by the Warrant Agent of the Exercise Price
therefor, the Warrant Agent shall thereupon promptly notify the Company, and
the Company shall instruct its transfer agent to transfer to the Holder of such
Warrant Certificate appropriate evidence of ownership of any shares of
Underlying Common Stock or other securities or property to which the Holder is
entitled, registered or otherwise placed in, or payable to the order of, such
name or names as may be directed in writing by the Holder, and shall deliver
such evidence of ownership to the Person or Persons entitled to receive the
same, together with cash in respect of any fractional shares of Common Stock as
provided in Section 3.4(f), provided that if the Holder
shall direct that such securities be registered in a name other than that of
the Holder, such direction shall be tendered in conjunction with a signature
guarantee by a participant in a Medallion Signature Guarantee Program at a
guarantee level acceptable to the Company’s transfer agent, and any other
reasonable evidence of authority that may be required by the Warrant
Agent.  Upon surrender of a Warrant
Certificate to the Warrant Agent in conformity with subsection (a) above
and, in the event of Full Physical Settlement of a Series A-1 Warrant,
receipt by the Warrant Agent of the Exercise Price therefor, a Holder shall be
deemed to own and have all of the rights associated 

 

11

 

with any Underlying Common Stock or other securities
or property to which such Holder is entitled pursuant to this Agreement upon
the surrender of a Warrant Certificate in accordance with this Agreement.

 

(d)           The Company acknowledges that the bank accounts maintained by the Warrant
Agent in connection with its performance under this Agreement shall be in the
Warrant Agent’s name and that the Warrant Agent may receive investment earnings
in connection with the investment at the Warrant Agent’s risk and for its
benefit of funds held in those accounts from time to time.  The Warrant Agent shall remit any payments
received in connection with the exercise of Warrants to the Company as soon as
practicable and in any event within three Business Days by federal wire or
other immediately available funds to an account selected by the Company and
notified in writing to the Warrant Agent.

 

(e)           If fewer than all the Warrants represented by a Warrant Certificate are
surrendered, such Warrant Certificate shall be surrendered and a new Warrant
Certificate of the same tenor and for the number of Warrants that were not
surrendered shall promptly be executed and delivered to the Warrant Agent by
the Company. The Warrant Agent shall promptly countersign, by either manual or
facsimile signature, the new Warrant Certificate, register it in such name or
names as may be directed in writing by the Holder and deliver the new Warrant
Certificate to the Person or Persons entitled to receive the same.

 

(f)            The Company shall not be required to issue any fraction of a share of
Common Stock upon exercise of any Warrants; provided, that, if more than
one Warrant shall be exercised hereunder at one time by the same Holder, the
number of full shares of Common Stock which shall be issuable upon exercise
thereof shall be computed on the basis of all Warrants so exercised, and shall
include the aggregation of all fractional shares of Common Stock issuable upon
exercise of such Warrants.  If after
giving effect to the aggregation of all shares of Common Stock (and fractions
thereof) issuable upon exercise of Warrants by the same Holder at one time as
set forth in the previous sentence, any fraction of a share of Common Stock
would, except for the provisions of this Section 3.4(f), be
issuable on the exercise of any Warrant or Warrants, the Company shall pay the
Holder cash in lieu of such fractional share valued at the Closing Sale Price
on the Exercise Date.

 

3.5           Transferability of Warrants and Common Stock.  Except as any Holder
may otherwise agree in writing, any Warrants, all rights with respect thereto and
any shares of Underlying Common Stock may be sold, transferred or disposed of,
in whole or in part, without any requirement of obtaining the consent of the
Company to so sell, transfer or dispose of, provided that any such sale,
transfer or disposition shall be in accordance with the terms of this
Agreement, including, without limitation, Article 7 hereof.

 

3.6           Compliance with Law.  (a) To the extent the
Warrants or Common Stock issued upon exercise of the Warrants are “Registrable
Securities” under the Registration Rights Agreements (“Warrant Securities”), no Series A-1 Warrant may be exercised
using Full Physical Settlement (and the Warrant Agent shall be under no obligation
to process any such exercise) and no such Warrant Securities may be sold, transferred, hypothecated, pledged or
otherwise disposed of (any such sale, transfer or other disposition, a “Sale”, and the action of making any 

 

12

 

such sale, transfer or
other disposition, to “Sell”), except in compliance with applicable
Federal and state securities and other applicable laws and this Section 3.6.

 

(b)           A Holder may exercise its Warrants if it is an “accredited investor” or a
“qualified institutional buyer”, as defined in Regulation D and Rule 144A
under the Securities Act, respectively, and a Holder may Sell
its Warrant Securities to a transferee that is an “accredited investor” or a “qualified
institutional buyer”, as such terms are defined in Regulation D and Rule 144A
under the Securities Act, respectively, provided that each of the
following conditions is satisfied:

 

(i)            such Holder or transferee, as the case may be, provides certification
establishing to the reasonable satisfaction of the Company that it is an “accredited
investor”;

 

(ii)           such Holder or transferee represents to the Company in writing that it is
acquiring the applicable Warrant Securities for its own account and
that it is not acquiring such Warrant
Securities with a view to, or for offer or Sale in connection
with, any distribution thereof (within the meaning of the Securities Act) that
would be in violation of the securities laws of the United States or any
applicable state thereof, but subject, nevertheless, to the disposition of its
property being at all times within its control;

 

(iii)          such Holder or transferee agrees to be bound by the provisions of this Section 3.6
with respect to any exercise of the Warrants and any Sale
of the Warrant Securities; and

 

(iv)          such Holder or transferee represents and warrants in writing to the
Company that the Holder or transferee has sufficient knowledge and experience
in investment transactions of this type to evaluate the merits and risks of its
exercise or purchases, as applicable.

 

(c)           A Holder may exercise its Warrants and may Sell its Warrant
Securities in accordance with Regulation S under the Securities Act.

 

(d)           A Holder may exercise its Warrants and may Sell its Warrant
Securities if:

 

(i)            such Holder gives written notice to the Company of its intention to
exercise or effect such Sale, which notice shall describe the manner and circumstances of the
proposed transaction in reasonable detail;

 

(ii)           such notice includes a customary opinion from internal or external
counsel to the Holder to the effect that, in either case, such proposed
exercise or Sale may be effected without registration under the Securities Act or
under applicable blue sky laws; and

 

(iii)          such Holder or transferee complies with Sections 3.6(b)(ii), 3.6(b)(iii),
and 3.6(b)(iv).

 

13

 

(e)           subject to Section 12.5, each certificate representing
Warrant Securities shall bear the following legend:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER APPLICABLE STATE
SECURITIES LAWS. SUCH SECURITIES MAY BE OFFERED, SOLD OR TRANSFERRED ONLY
IN COMPLIANCE WITH THE REQUIREMENTS OF SUCH ACT AND OF ANY APPLICABLE STATE
SECURITIES LAWS AND SUBJECT TO THE PROVISIONS OF THE WARRANT AGREEMENT DATED AS
OF NOVEMBER       , 2010 BETWEEN GENERAL GROWTH
PROPERTIES, INC. (THE “COMPANY”), AND MELLON INVESTOR SERVICES LLC,
AS WARRANT AGENT. A COPY OF SUCH WARRANT AGREEMENT IS AVAILABLE AT THE OFFICES
OF THE COMPANY.

 

(f)            [Intentionally omitted.]

 

(g)           the provisions of Section 3.6 shall not apply to, and any Holder may exercise its Warrants or may
Sell its Warrant Securities:

 

(i)            in a transaction that is registered under the Securities Act; and

 

(ii)           in a transaction pursuant
to Rule 144 of the Exchange Act; and

 

(iii)          in a transaction following receipt of a legal
opinion of counsel to a Holder that the applicable Warrant Securities are
eligible for resale by the Holder without volume limitations or other
limitations under Rule 144; and

 

(iv)          with respect to an exercise of a Warrant, in an
exercise using Net Share Settlement.

 

(h)           The Warrant Agent shall not take any action with respect to a Sale of Warrant
Securities under this Section 3.6 unless and until it has received
appropriate instructions from the Company and a certification of compliance
with these provisions from the Company.

 

4.                                      REGISTRATION RIGHTS.

 

4.1           Rule 144 Reporting.  With
a view to making available to the Holders the benefits of certain rules and
regulations of the SEC which may permit the sale of the Warrant Securities to
the public without registration, the Company agrees, so long as it is subject
to the periodic reporting requirements of the Securities Act, to use its
reasonable best efforts to:

 

(a)           make and keep public information available, as those terms are understood
and defined in Rule 144(c)(1) or any similar or analogous rule promulgated
under the Securities Act, at all times after the effective date of this
Agreement;

 

14

 

(b)           file with the SEC, in a timely manner, all reports and other documents
required of the Company under the Exchange Act; and

 

(c)           so long as the Holders own any Warrant Securities, furnish to such
Holders forthwith upon request: a written statement by the Company as to its
compliance with the reporting requirements of Rule 144 under the
Securities Act, and of the Exchange Act; and such other reports and documents
as any Initial Investor or Holder may reasonably request in availing itself of
any rule or regulation of the SEC allowing it to sell any such securities
without registration.

 

4.2           Obtaining Exchange Listing.  The
Company will file a listing application for listing on the exchange on which
the then outstanding Common Stock is listed with respect to the Underlying
Common Stock as soon as practicable after the date hereof.  The Company shall use reasonable best efforts
to list the Warrants, and maintain such listing, on such exchange or, if not
possible, another U.S. national securities exchange, in connection with any
proposed underwritten distribution of the Warrants that meets the applicable
listing criteria.  A copy of any opinion
of counsel accompanying a listing application by the Company with respect to
the Underlying Common Stock or Warrants shall be furnished to the Warrant
Agent, together with a letter to the effect that the Warrant Agent may rely on
the statements made in such opinion.

 

4.3           The Warrant Agent.  The Warrant Agent shall have no duties or
obligations under the Registration Rights Agreements and shall have no
duty to monitor or enforce the Company’s compliance with this Article 4
or the Registration Rights Agreements.

 

5.                                      ADJUSTMENTS AND OTHER RIGHTS.

 

5.1           Stock Dividend; Subdivision or Combination of
Common Stock.  If the Company at any time issues to holders
of the Common Stock a dividend payable solely in, or other distribution solely
of, Common Stock (a “Stock Dividend”), the Exercise Price in effect at
the close of business on the record date for such dividend or distribution
shall be reduced immediately thereafter to the price determined by multiplying
such Exercise Price by the quotient of (x) the number of shares of Common
Stock outstanding at the close of business on such record date divided by (y) the
sum of such number of shares and the total number of shares constituting such
dividend or other distribution.  If the
Company at any time subdivides or combines (by stock split, reverse stock
split, recapitalization or otherwise) the outstanding Common Stock into a
greater or smaller number of shares, the Exercise Price in effect immediately
prior to the time of effectiveness of such subdivision or combination shall be
adjusted at such time of effectiveness to the price determined by multiplying
such Exercise Price by the quotient of (x) the number of shares of Common
Stock outstanding immediately prior to such time of effectiveness divided by (y) the
number of shares of Common Stock outstanding at the time of effectiveness of
and after giving effect to such subdivision or combination.  In any such event referred to in this Section 5.1,
the number of shares of Common Stock issuable upon exercise of each Warrant as
in effect immediately prior to the Exercise Price adjustment contemplated by
the foregoing shall be adjusted immediately thereafter to the amount determined
by multiplying such number by the quotient of (x) the Exercise Price in
effect immediately prior to such Exercise Price adjustment divided by (y) the
Exercise Price determined in accordance with such Exercise Price adjustment.

 

15

 

5.2           Other Dividends and Distributions.  If at
any time or from time to time prior to the exercise of any Warrant the Company
shall fix a record date for the making of a dividend or other distribution
(other than (i) as contemplated by Section 5.5, (ii) a
Stock Dividend covered by Section 5.1 or (iii) a distribution
of rights or warrants covered by Section 5.3), to the holders of
its Common Stock (collectively, a “Distribution”) of:

 

(A)           any evidences of its indebtedness, any shares of its capital stock or any
other securities or property of any nature whatsoever (including cash); or

 

(B)             any options, warrants or other rights to subscribe for or purchase any of
the following: any evidences of its indebtedness, any shares of its capital
stock or any other securities or property of any nature whatsoever;

 

then,
in each such case, the Exercise Price in effect immediately prior to the close
of business on such record date  shall be
reduced immediately thereafter to the price determined by multiplying such Exercise
Price by the quotient of (x) the Fair Market Value of the Common Stock on
the last trading day immediately preceding the first date on which the Common
Stock trades regular way on the principal national securities exchange on which
the Common Stock is listed or admitted to trading without the right to receive
such Distribution, minus the amount of cash and/or the Fair Market Value of the
securities, evidences of indebtedness, assets, rights or warrants to be so
distributed in respect of one share of Common Stock divided by (y) the
Fair Market Value of the Common Stock on the last trading day immediately
preceding the first date on which the Common Stock trades regular way on the
principal national securities exchange on which the Common Stock is listed or
admitted to trading without the right to receive such Distribution; such
adjustment shall be made successively whenever such a record date is fixed. In
such event, the number of shares of Common Stock issuable upon the exercise of
each Warrant as in effect immediately prior to the close of business on such
record date shall be increased immediately thereafter to the amount determined
by multiplying such number by the quotient of (x) the Exercise Price in
effect immediately prior to the adjustment contemplated by the immediately
preceding sentence divided by (y) the new Exercise Price determined in
accordance with the immediately preceding sentence.  If the Distribution includes Common Stock as
well as other items of the sort referred to in Section 5.2(A) or
(B), then instead of adjusting for the entire Distribution under this Section 5.2
the Common Stock portion shall be treated as a Stock Dividend that triggers an
adjustment to the Exercise Price and number of shares of Common Stock
obtainable upon exercise of each Warrant under Section 5.1 and the other items in the
Distribution shall trigger a further adjustment to such adjusted Exercise Price
and number of shares under this Section 5.2.  In the event that such
Distribution is not so made, the Exercise Price and the number of shares of
Common Stock issuable upon exercise of each Warrant then in effect shall be
readjusted, effective as of the date when the Board determines not to
distribute such shares, evidences of indebtedness, assets, rights, cash or
warrants, as the case may be, to the Exercise Price that would then be in
effect and the number of Shares that would then be issuable upon exercise of
this Warrant if such record date had not been fixed.

 

5.3           Rights Offerings.  If at
any time the Company shall distribute rights or warrants to all or
substantially all holders of its Common Stock entitling them, for a period of
not more than 45 days, to subscribe for or purchase shares of Common Stock at a
price per share less than the Fair Market Value of the Common Stock on the last
trading day preceding the date on which 

 

16

 

the Board declares such distribution of rights or warrants, the
Exercise Price in effect immediately prior to the close of business on the
record date for such distribution shall be reduced immediately thereafter to
the price determined by multiplying such Exercise Price by the quotient of (x) the
number of shares of Common Stock outstanding at the close of business on such
record date plus the number of shares of Common Stock which the aggregate of
the offering price of the total number of shares of Common Stock so offered for
subscription or purchase would purchase at such Fair Market Value divided by (y) the
number of shares of Common Stock outstanding at the close of business on such
record date plus the number of shares of Common Stock so offered for subscription
or purchase.  In such event, the number
of shares of Common Stock issuable upon the exercise of each Warrant as in
effect immediately prior to the close of business on such record date shall be
increased immediately thereafter to the amount determined by multiplying such
number by the quotient of (x) the Exercise Price in effect immediately
prior to the adjustment contemplated by the immediately preceding sentence
divided by (y) the new Exercise Price determined in accordance with the
immediately preceding sentence.  In case
any rights or warrants referred to in this Section 5.3 in respect
of which an adjustment shall have been made shall expire unexercised and any shares that
would have been underlying such rights or warrants shall not have been allocated
pursuant to any backstop commitment or any similar arrangement, the Exercise Price and the number of shares
of Common Stock issuable upon exercise of each Warrant then in effect shall be
readjusted at the time of such expiration to the Exercise Price that would then
be in effect and the number of Shares that would then be issuable upon exercise
of each Warrant if no adjustment had been made on account of such expired
rights or warrants.

 

5.4           Issuer Tender or Exchange Offers.  If
the Company or any subsidiary of the Company shall consummate a tender or
exchange offer for all or any portion of the Common Stock for a consideration
per share with a Fair Market Value greater than the Fair Market Value of the
Common Stock on the date such tender or exchange offer is first publicly
announced (the “Announcement Date”), the Exercise Price in effect
immediately prior to the expiration date for such tender or exchange offer
shall be reduced immediately thereafter to the price determined by multiplying
such Exercise Price by the quotient of (x) the Fair Market Value of the
Common Stock on the Announcement Date minus the Premium Per Post-Tender Share
divided by (y) the Fair Market Value of the Common Stock on the
Announcement Date.  In such event, the
number of shares of Common Stock issuable upon the exercise of each Warrant as
in effect immediately prior to such expiration date shall be increased
immediately thereafter to the amount determined by multiplying such number by
the quotient of (x) the Exercise Price in effect immediately prior to the
adjustment contemplated by the immediately preceding sentence divided by (y) the
new Exercise Price determined in accordance with the immediately preceding
sentence.  As used in this Section 5.4
with respect to any tender or exchange offer, “Premium Per Post-Tender Share”
means the quotient of (x) the amount by which the aggregate Fair Market
Value of the consideration paid in such tender or exchange offer exceeds the
aggregate Fair Market Value on the Announcement Date of the shares of Common
Stock purchased therein divided by (y) the number of shares of Common
Stock outstanding at the close of business on the expiration date for such
tender or exchange offer (after giving pro forma effect to the purchase of
shares being purchased in the tender or exchange offer).

 

5.5           Reorganization, Reclassification,
Consolidation, Merger or Sale.  Any
recapitalization, reorganization, reclassification, consolidation, merger, sale
of all or substantially 

 

17

 

all of the Company’s
assets or other transaction, which in each case is effected in such a way that
the shares of Common Stock are converted into the right to receive (either
directly or upon subsequent liquidation) stock, securities, other equity
interests or assets (including cash) with respect to or in exchange for shares
of Common Stock is referred to herein as “Organic Change.”  Prior to the consummation of any Organic
Change, the Company shall make appropriate provision to ensure that each of the
Holders shall thereafter have the right to acquire and receive, in lieu of or
in addition to (as the case may be) the Common Stock immediately theretofore
acquirable and receivable upon the exercise of such Holder’s Warrants, (x) in
the case of a Mixed Consideration Merger, the Public Stock issued in such Mixed
Consideration Merger and (y) in the case of any other Organic Change, such
stock, securities, other equity interests or assets, in each case as may be
issued or payable in connection with the Organic Change with respect to or in
exchange for the number of shares of Common Stock immediately theretofore
acquirable and receivable upon exercise of such Holder’s Warrants, for an
aggregate Exercise Price per Warrant equal to (i) in the case of a Mixed
Consideration Merger, the aggregate Exercise Price per Warrant as in effect
immediately prior to such Mixed Consideration Merger times the Stock
Consideration Ratio and (ii) in the case of any other Organic Change, the
aggregate Exercise Price per Warrant as in effect immediately prior to such
Organic Change.  In any such case, the
Company shall make appropriate provision to insure that all of the provisions
of the Warrants shall thereafter be applicable to such stock, securities, other
equity interests or assets.  The Company
shall not effect any such consolidation, merger or sale of all or substantially
all of the Company’s assets where the Warrants will be assumed by the successor
entity, unless prior to the consummation thereof, the successor entity (if
other than the Company) resulting from consolidation or merger or the entity
purchasing such assets assumes by written instrument the obligation to deliver
to each such Holder upon exercise of any Warrant, such stock, securities,
equity interests or assets (including cash) as, in accordance with Article 5,
such Holder may be entitled to acquire. 
This Section 5.5 shall not apply to any Warrants or Common
Stock redeemed or sold in connection with any Organic Change pursuant to Section 6.1,
Section 6.2(b), Section 6.3(a)(i) and Section 6.3(b),
provided that, for the avoidance of doubt, the adjustments set forth in
this Section 5.5 shall be applicable to any Warrants that remain
outstanding pursuant to this Agreement in connection with a Public Stock Merger
or Mixed Consideration Merger (including any adjustment applicable in
connection with such Public Stock Merger or Mixed Consideration Merger).

 

5.6           Other Adjustments.  The
Board shall make appropriate adjustments to the amount of cash or number of
shares of Common Stock, as the case may be, due upon exercise of the Warrants,
as may be necessary or appropriate to effectuate the intent of this Article 5
and to avoid unjust or inequitable results as determined in its reasonable good
faith judgment, in each case to account for any adjustment to the Exercise
Price and the number of shares purchasable on exercise of Warrants for the
relevant Warrant Certificate that becomes effective, or any event requiring an
adjustment to the Exercise Price and the number of shares purchasable on
exercise of Warrants for the relevant Warrant Certificate where the record date
or effective date (in the case of a subdivision or combination of the Common
Stock) of the event occurs, during the period beginning on, and including, the
Exercise Date and ending on, and including, the related Settlement Date.

 

5.7           Notice of Adjustment. 
Whenever the number of shares of Common Stock issuable upon the exercise
of each Warrant is adjusted, as herein provided, the Company shall 

 

18

 

cause the Warrant Agent
promptly to mail by first class mail, postage prepaid, to each Holder notice of
such adjustment or adjustments and shall promptly deliver to the Warrant Agent
a certificate of a firm of independent public accountants selected by the Board
(who may be the regular accountants employed by the Company) setting forth the
number of shares of Common Stock issuable upon the exercise of each Warrant
after such adjustment, setting forth a brief statement in reasonable detail of the facts requiring such adjustment and
setting forth the computation by which such adjustment was made. The Warrant
Agent shall be fully protected in relying on such certificate, and on any
adjustment contained therein, and shall not be deemed to have any knowledge of
such adjustment unless and until it shall have received such certificate, and
shall be under no duty or responsibility with respect to any such certificate,
except to exhibit the same from time to time, to any Holder desiring an
inspection thereof during reasonable business hours. The Warrant Agent shall
not at any time be under any duty or responsibility to any Holders to determine
whether any facts exist that may require any adjustment of the number of shares
of Common Stock or other stock or property issuable on exercise of the
Warrants, or with respect to the nature or extent of any such adjustment when
made, or with respect to the method employed in making such adjustment or the
validity or value (or the kind or amount) of any shares of Common Stock or
other stock or property which may be issuable on exercise of the Warrants, or
to investigate or confirm whether the information contained in the above
referenced certificate complies with the terms of this Agreement or any other
document. The Warrant Agent shall not be responsible for any failure of the
Company to make any cash payment or to issue, transfer or deliver any shares of
Common Stock or security instruments or other securities or properties upon the
exercise of any Warrant.

 

6.                                      CHANGE OF CONTROL.

 

6.1           Redemption in Connection with a Change of
Control Event.  Upon the occurrence of a Change of Control
Event (other than a Public Stock Merger or Mixed Consideration Merger), at the
election of each Holder in its sole discretion by written notice to the Company
or the successor to the Company on or prior to the Exercise Date, the Company
shall pay to such Holder of outstanding Warrants as of the date of such Change
of Control Event, an amount in immediately available funds equal to the Cash
Redemption Value for such Warrants, not later than the date which is ten (10) Business
Days after such Change of Control Event and the Warrants shall thereafter be
extinguished. For purposes of this Section 6.1, the Exercise Date shall
mean (a) if the Company entered into a definitive agreement with respect
to a Change of Control Event and has provided to the Holders notice of the date
on which the Change in Control Event will become effective at least twenty (20)
Business Days prior to the effectiveness of such event, the tenth (10th)
Business Day prior to such event and (b) otherwise, the fifth (5th)
Business Day following the effectiveness of the Change of Control Event.  The “Cash Redemption Value” for any
Warrant will equal the fair value of the Warrant as of the date of such Change
of Control Event as determined by an Independent Financial Expert, by employing
a valuation based on a computation of the option value of each Warrant using the calculation
methods and making the assumptions set forth in Exhibit C.  The
Cash Redemption Value of the Warrants shall be due and payable within ten (10) Business
Days after the date of the applicable Change of Control Event.  If a
Holder of Warrants does not elect to receive the Cash Redemption Value for such
Holder’s Warrants as provided by this Section 6.1, such Warrants
will remain outstanding as adjusted pursuant to the provisions of Article 5
hereof.

 

19

 

6.2           Public Stock Merger.  (a) 
In connection with a Public Stock Merger, the Company may by written notice to
the Holders not less than ten (10) Business Days prior to the effective
date of such Public Stock Merger elect to have all the unexercised Warrants
remain outstanding after the Public Stock Merger, in which case the Warrants
will remain outstanding as adjusted pursuant to Section 5.5 and the
other provisions of Article 5 hereof.

 

(b)           In the case of any Public Stock Merger with respect to which the Company
does not make a timely election as contemplated by Section 6.2(a) above,
the Company shall pay within five (5) Business Days after the effective
date of such Public Stock Merger, to the Warrant Agent on behalf of each Holder
of outstanding Warrants as of the effective date of such Public Stock Merger,
an amount in cash in immediately available funds equal to the Cash Redemption
Value for such Warrants determined in accordance with Section 6.1
and the Warrants shall be terminated and extinguished.

 

6.3           Mixed
Consideration Merger.  (a)  In connection with a Mixed
Consideration Merger, the Company may by written notice to the Holders not less
than ten (10) Business Days prior to the effective date of such Mixed
Consideration Merger elect the following treatment with respect to each
outstanding Warrant: (i) pay to the Holder of such Warrant as of the date
of such Mixed Consideration Merger the product of the Cash Consideration Ratio
multiplied by the Cash Redemption Value for such Warrant, which amount shall be
paid in immediately available funds, not later than the date which is ten (10) Business
Days after such Mixed Consideration Merger and (ii) the Warrant shall
remain outstanding after the Mixed Consideration Merger, as further adjusted
pursuant to Section 5.5 and the other provisions of Article 5.  The portion of the Cash Redemption Value of
the Warrants payable pursuant to clause (i) of this Section 6.3(a) shall
be due and payable not later than the tenth (10th) Business Day after the date
of the Mixed Consideration Merger.

 

(b)           In the case of any Mixed Consideration Merger with respect to which the
Company does not make a timely election as contemplated by Section 6.3(a) above,
the Company shall pay, within ten (10) Business Days after the effective date
of such Mixed Consideration Merger, to the Warrant Agent on behalf of each
Holder of outstanding Warrants as of the effective date of such Mixed
Consideration Merger, an amount in cash in immediately available funds equal to
the Cash Redemption Value for such Warrants determined in accordance with Section 6.1
and the Warrants shall be terminated and extinguished.

 

6.4           The Warrant Agent.  The
Warrant Agent shall have no duty or obligation to make any of the payments
required under this Article 6 unless and until it has been provided
with available cash.

 

7.                                      WARRANT TRANSFER BOOKS.

 

The
Warrant Certificates shall be issued in registered form only. The Company shall
cause to be kept at the office of the Warrant Agent designated for such purpose
a register in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Warrant
Certificates and of transfers or exchanges of Warrant Certificates as herein
provided  (the “Warrant Register”).

 

20

 

At
the option of the Holder, Warrant Certificates may be exchanged at such office,
and upon payment of the charges hereinafter provided.  Whenever any Warrant Certificates are so
surrendered for exchange, the Company shall execute, and the Warrant Agent
shall countersign, by manual or facsimile signature, and deliver, the Warrant
Certificates that the Holder making the exchange is entitled to receive.

 

All
Warrant Certificates issued upon any registration of transfer or exchange of
Warrant Certificates shall be the valid obligations of the Company, evidencing
the same obligations, and entitled to the same benefits under this Agreement,
as the Warrant Certificates surrendered for such registration of transfer or
exchange.

 

Every
Warrant Certificate surrendered for registration of transfer or exchange shall
(if so required by the Company or the Warrant Agent) be duly endorsed, or be
accompanied by a written instrument of transfer in the form attached hereto as Exhibit B
or otherwise satisfactory to the Warrant Agent, properly completed and duly
executed by the Holder thereof or his attorney duly authorized in writing.  Until a Warrant Certificate
is transferred in the Warrant Register, the Company and the Warrant Agent may
treat the person in whose name the Warrant Certificate is registered as the
absolute owner thereof and of the Warrants represented thereby for all
purposes, notwithstanding any notice to the contrary.  Neither the Company nor the Warrant Agent
will be liable or responsible for any registration or transfer of any Warrants
that are registered or to be registered in the name of a fiduciary or the
nominee of a fiduciary.

 

No
service charge shall be made to a Holder for any registration of transfer or
exchange of Warrant Certificates. The Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Warrant
Certificates.  The Warrant Agent shall have
no duty under this Section or any Section of this Agreement requiring
the payment of taxes and other governmental charges unless and until it is
satisfied that all such taxes and/or governmental charges have been paid.  The Warrant Agent shall be deemed satisfied
if it receives a certificate from the Company stating that all required taxes
and governmental charges have been paid.

 

8.                                      WARRANT HOLDERS.

 

8.1           No Voting Rights.  Prior
to the exercise of Warrants and full payment of the Exercise Price thereof, or
in the event of Net Share Settlement, prior to the election of a Holder for Net
Share Settlement in accordance with the terms of this Agreement, no Holder of a
Warrant Certificate, in respect of such Warrants, shall be entitled to any
rights of a stockholder of the Company, including, without limitation, the
right to vote, to consent, to exercise any preemptive right (except as otherwise
agreed in writing by the Company, including the subscription rights set forth
in the Investment Agreement and the Stock Purchase Agreements), to receive any notice of meetings of
stockholders for the election of directors of the Company or any other matter
or to receive any notice of any proceedings of the Company.

 

8.2           Right of Action.  All rights
of action in respect of this Agreement are vested in the Holders of the
Warrants, and any Holder of Warrants, without the consent of the Warrant Agent
or the Holder of any other Warrant, may, on such Holder’s own behalf and for
such Holder’s own benefit, enforce, and may institute and maintain any suit,
action or proceeding 

 

21

 

against the Company
suitable to enforce, or otherwise in respect of, such Holder’s right to
exercise or exchange such Holder’s Warrants in the manner provided in this
Agreement or any other obligation of the Company under this Agreement.

 

9.                                      WARRANT AGENT

 

9.1           Nature of Duties and Responsibilities Assumed.  The
Company hereby appoints the Warrant Agent to act as agent of the Company as expressly set forth in this Agreement. The Warrant Agent
hereby accepts such appointment as agent of the Company and agrees to perform
that agency upon the express terms and conditions herein set forth (and no implied
terms), by all of which
the Company and the Holders, by their acceptance thereof, shall be bound. The
Warrant Agent shall not by countersigning Warrant Certificates or by any other
act hereunder be deemed to make any representations as to validity or
authorization of the Warrants or the Warrant Certificates (except as to its
countersignature thereon) or of any securities or other property delivered upon
exercise or tender of any Warrant, or as to the accuracy of the computation of
the Exercise Price or the number or kind or amount of stock or other securities
or other property deliverable upon exercise of any Warrant, the independence of
any Independent Financial Expert or the correctness of the representations of
the Company made in such certificates that the Warrant Agent receives. The
Warrant Agent shall not have any duty to calculate or determine any adjustments
with respect to the Exercise Price and the Warrant Agent shall have no duty or
responsibility in determining the accuracy or correctness of such calculation.
The Warrant Agent shall not (a) be liable for any recital or statement of
fact contained herein or in the Warrant Certificates or for any action taken,
suffered or omitted to be taken by it in good faith on the belief that any Warrant
Certificate or any other documents or any signatures are genuine or properly
authorized, (b) be responsible for any failure on the part of the Company
to comply with any of its covenants and obligations contained in this Agreement
or in the Warrant Certificates, or (c) be liable for any act or omission
in connection with this Agreement except for its own gross negligence or willful misconduct  (as each is
determined by a final, non-appealable judgment of a court of competent
jurisdiction). The Warrant Agent is hereby authorized to accept instructions with respect
to the performance of its duties hereunder from the President, any Vice
President or the Secretary of the Company and to apply to any such officer for
instructions (which instructions will be promptly given in writing when
requested) and the Warrant Agent shall not be liable and shall be indemnified
and held harmless for any action taken or suffered to be taken by it in
accordance with the instructions of any such officer, but in its discretion the
Warrant Agent may in lieu thereof accept other evidence of such or may require
such further or additional evidence as it may deem reasonable.

 

The
Warrant Agent may execute and exercise any of the rights and powers hereby
vested in it or perform any duty hereunder either itself or by or through its
attorneys, agents or employees, provided reasonable care has been exercised in
the selection and in the continued employment of any such attorney, agent or
employee.  The Warrant Agent shall not be
under any obligation or duty to institute, appear in or defend any action, suit
or legal proceeding in respect hereof, unless first indemnified to its
satisfaction, but this provision shall not affect the power of the Warrant
Agent to take such action as the Warrant Agent may consider proper, whether
with or without such indemnity. The Warrant Agent shall promptly notify the
Company in writing of any claim made or action, suit or proceeding instituted
against it arising out of or in connection with this Agreement.

 

22

 

The
Company will perform, execute, acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further acts,
instruments and assurances as may reasonably be required by the Warrant Agent
in order to enable it to carry out or perform its duties under this Agreement.  The Warrant Agent shall be
protected and shall incur no liability for or in respect of any action taken or
thing suffered by it in reliance upon any notice, direction, consent,
certificate, affidavit, statement or other paper or document reasonably
believed by it to be genuine and to have been presented or signed by the proper
parties.

 

The
Warrant Agent shall act solely as agent of the Company hereunder and does not
assume any obligation or relationship of agency or trust with any of the owners
or holders of the Warrants.  The Warrant
Agent shall not be liable except for the failure to perform such duties as are
specifically set forth herein, and no implied covenants or obligations shall be
read into this Agreement against the Warrant Agent, whose duties and
obligations shall be determined solely by the express provisions hereof.
Notwithstanding anything in this Agreement to the contrary, Warrant Agent’s
aggregate liability under this Agreement with respect to, arising from, or
arising in connection with this Agreement, or from all services provided or
omitted to be provided under this Agreement, whether in contract, or in tort,
or otherwise, is limited to, and shall not exceed, the amounts paid hereunder
by the Company to Warrant Agent as fees and charges, but not including
reimbursable expenses.

 

The
Warrant Agent may consult with counsel satisfactory to it (which may be counsel
to the Company).

 

Whenever
in the performance of its duties under this Agreement the Warrant Agent deems it
necessary or desirable that any fact or matter be proved or established by the
Company prior to taking or suffering any action hereunder, such fact or matter
may be deemed to be conclusively proved and established by a certificate signed
by any authorized officer of the Company and delivered to the Warrant Agent;
and such certificate will be full authorization to the Warrant Agent for any
action taken, suffered or omitted by it under the provisions of this Agreement
in reliance upon such certificate.  The
Warrant Agent is hereby authorized and directed to accept instructions with
respect to the performance of its duties hereunder from any one of the
authorized officers of the Company, and to apply to such officers for advice or
instructions in connection with its duties, and it will not be liable for any
action taken, suffered or omitted to be taken by it in good faith in accordance
with instructions of any such officer.

 

The
Warrant Agent will not be under any duty or responsibility to insure compliance
with any applicable federal or state securities laws in connection with the
issuance, transfer or exchange of Warrant Certificates.

 

The
Warrant Agent shall have no duties, responsibilities or obligations as the
Warrant Agent except those which are expressly set forth herein, and in any
modification or amendment hereof to which the Warrant Agent has consented in
writing, and no duties, responsibilities or obligations shall be implied or
inferred.  Without limiting the foregoing,
unless otherwise expressly provided in this Agreement, the Warrant Agent shall
not be subject to, nor be required to comply with, or determine if any person
or entity has complied with, the Warrant Certificate or any other agreement
between or among the parties hereto, even though reference thereto may be made
in this Warrant Agreement, or to comply with any notice, instruction,
direction, request 

 

23

 

or
other communication, paper or document other than as expressly set forth in
this Warrant Agreement.

 

In
the event the Warrant Agent believes any ambiguity or uncertainty exists
hereunder or in any notice, instruction, direction, request or other
communication, paper or document received by the Warrant Agent hereunder, the Warrant
Agent, may, in its sole discretion, refrain from taking any action, and shall
be fully protected and shall not be liable in any way to the Company or any
Holder or other person or entity for refraining from taking such action, unless
the Warrant Agent receives written instructions signed by the Company which
eliminates such ambiguity or uncertainty to the satisfaction of the Warrant
Agent.

 

9.2           Compensation and Reimbursement.  The
Company agrees to pay to the Warrant Agent from time to time compensation for
all services rendered by it hereunder in accordance with Schedule B
hereto and as the Company and the Warrant Agent may agree from time to time,
and to reimburse the Warrant Agent for reasonable expenses and disbursements
actually incurred in connection with the preparation, delivery,
negotiation, amendment, execution and administration of this Agreement
(including the reasonable compensation and out of pocket expenses of its counsel), and further agrees
to indemnify the Warrant Agent for, and to hold it harmless against, any loss,
liability, suit, action, proceeding, judgment, claim, settlement, cost or
expense incurred without gross negligence, willful misconduct or bad faith on
its part, (as each is determined by a final, non-appealable judgment of a court
of competent jurisdiction), for any action taken, suffered or omitted to be
taken by the Warrant Agent in connection with the acceptance and administration of this
Agreement, 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, indirectly or directly.  The Warrant Agent shall not be obligated to
expend or risk its own funds or to take any action which it believes would
expose it to expense or liability or to a risk of incurring expense or
liability, unless it has been furnished with assurances of repayment or
indemnity satisfactory to it.

 

9.3           Warrant Agent May Hold Company Securities.  The
Warrant Agent and any stockholder, director, officer or employee of the Warrant
Agent may buy, sell or deal in any of the Warrants or other securities of the
Company or its Affiliates or become pecuniarily interested in transactions in
which the Company or its Affiliates may be interested, or contract with or lend
money to the Company or its Affiliates or otherwise act as fully and freely as
though it were not the Warrant Agent under this Agreement. Nothing herein shall
preclude the Warrant Agent from acting in any other capacity for the Company or
for any other legal entity.

 

9.4           Resignation and Removal; Appointment of
Successor.  (a)  No resignation or removal of the
Warrant Agent and no appointment of a successor warrant agent shall become
effective until the acceptance of appointment by the successor warrant agent as
provided herein. The Warrant Agent may resign its duties and be discharged from
all further duties and liability hereunder (except liability arising as a
result of the Warrant Agent’s own gross negligence, willful misconduct or bad faith)
after giving written notice to the Company at least thirty (30) days prior to
the date such resignation will become effective. The Company shall, upon
written request of Holders of a majority of the outstanding Warrants, remove
the Warrant Agent upon written notice provided at least thirty (30) days prior
to the date of such removal, and the Warrant Agent shall thereupon in like
manner be discharged from all further duties and liabilities 

 

24

 

hereunder, except as aforesaid.
The Warrant Agent shall, at the Company’s expense, cause to be mailed at the
Company’s expense (by first-class mail, postage prepaid) to each Holder of a
Warrant at his last address as shown on the register of the Company maintained
by the Warrant Agent a copy of said notice of resignation or notice of removal,
as the case may be. Upon such resignation or removal, the Person holding the
greatest number of Warrants as of the date of such event shall appoint in
writing a new warrant agent reasonably acceptable to the Company. If the Person
holding the greatest number of Warrants as of the date of such event shall fail
to make such appointment within a period of twenty (20) days after it has been
notified in writing of such resignation by the resigning Warrant Agent or after
such removal, then the Company shall appoint a new warrant agent. Any new
warrant agent, whether appointed by a Holder or by the Company, shall be a
reputable bank, trust company or transfer agent doing business under the laws
of the United States or any state thereof, in good standing and having a
combined capital and surplus of not less than $50,000,000. The combined capital
and surplus of any such new warrant agent shall be deemed to be the combined
capital and surplus as set forth in the most recent annual report of its
condition published by such warrant agent prior to its appointment, provided
that such reports are published at least annually pursuant to law or to the
requirements of a Federal or state supervising or examining authority. After
acceptance in writing of such appointment by the new warrant agent, it shall be
vested with the same powers, rights, duties and responsibilities as if it had
been originally named herein as the Warrant Agent, without any further assurance,
conveyance, act or deed; but if for any reason it shall be necessary or
expedient to execute and deliver any further assurance, conveyance, act or
deed, the same shall be done at the expense of the Company and shall be legally
and validly executed and delivered by the resigning or removed Warrant Agent.
Not later than the effective date of any such appointment, the Company shall
give notice thereof to the resigning or removed Warrant Agent. Failure to give
any notice provided for in this Section 9.4(a), however, or any
defect therein, shall not affect the legality or validity of the resignation of
the Warrant Agent or the appointment of a new warrant agent, as the case may
be.

 

(b)           Any Person into which the Warrant Agent or any new warrant agent may be merged or
any Person resulting from any consolidation to which the Warrant Agent or any
Person resulting from any merger, conversion or consolidation to which the
Warrant Agent shall be a party or any Person to which the Warrant Agent shall
sell or otherwise transfer all or substantially all the assets and business of the
Warrant Agent or any new warrant agent
shall be a party, shall be a successor Warrant Agent under this Agreement
without any further act, provided that such Person
would be eligible for appointment as successor to the Warrant Agent under the
provisions of Section 9.4(a). 
Any such successor Warrant Agent shall promptly cause notice of
succession as Warrant Agent to be mailed (by first-class mail, postage prepaid)
to each Holder of a Warrant at such Holder’s last address as shown on the
register of the Company maintained by the Warrant Agent.

 

9.5           Damages.  No
party to this Agreement shall be liable to any other party for any
consequential, indirect, punitive, special or incidental damages under any provision
of this Agreement or for any consequential, indirect, punitive, special or incidental damages arising out of
any act or failure to act hereunder even if that party has been advised of or
has foreseen the possibility of such damages.

 

25

 

9.6          Force Majeure.  In no event shall the Warrant Agent be
responsible or liable for any failure or delay in the performance of its
obligations under this Agreement arising out of or caused by, directly or
indirectly, forces beyond its reasonable control, including without limitation
strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer (software
or hardware) services.

 

9.7          Survival.  The provisions of this Article 9
shall survive the termination of this Warrant Agreement and the resignation or
removal of the Warrant Agent

 

10.          REPRESENTATIONS AND WARRANTIES.

 

10.1        Representations and Warranties of the Company.  The
Company hereby represents and warrants that the representations and
warranties of the Company set forth in Sections 3.1, 3.2, 3.3, 3.4, 3.5 and 3.6
of the Investment Agreement and Stock Purchase Agreements and any other
representations and warranties made by the Company in Article III of the
Investment Agreement and Stock Purchase Agreements, in each case, to the extent
relating to the authorization and issuance of the Warrants and the shares of
Common Stock issuable upon exercise thereof, are true and accurate in all
respects and not misleading in any respect.

 

11.          COVENANTS.

 

11.1        Reservation of Common Stock for Issuance on
Exercise of Warrants.  The Company covenants that it will at all
times reserve and keep available, free from preemptive rights, out of its
authorized but unissued Common Stock, solely for the purpose of issue upon
exercise of Warrants as herein provided, such number of shares of Common Stock
as shall then be issuable upon the exercise of all Warrants issuable hereunder
plus such number of shares of Common Stock as shall then be issuable upon the
exercise of other outstanding warrants, options and rights (whether or not
vested), the settlement of any forward sale, swap or other derivative contract,
and the conversion of all outstanding convertible securities or other
instruments convertible into Common Stock or rights to acquire Common Stock.
The Company covenants that all shares of Common Stock which shall be issuable
shall, upon such issue, be duly and validly issued and fully paid and
non-assessable.

 

11.2        Notice of Distributions.  At
any time when the Company declares any Distribution on its Common Stock, it
shall give notice to the Holders of all the then outstanding Warrants of any
such declaration not less than 15 days prior to the related record date for
payment of the Distribution so declared.

 

12.          MISCELLANEOUS.

 

12.1        Money and Other Property Deposited with the
Warrant Agent.  Any moneys, securities or other property
which at any time shall be deposited by the Company or on its behalf with the
Warrant Agent pursuant to this Agreement shall be and are hereby assigned,
transferred and set over to the Warrant Agent in trust for the purpose for
which such moneys, securities or other property shall have been deposited; but
such moneys, securities or other property need not be segregated from other
funds, securities or other property except to the extent required by law. The
Warrant Agent shall distribute any money deposited with it for payment and
distribution to a 

 

26

 

Holder to an account designated by such Holder in
such amount as is appropriate. Any money deposited with the Warrant Agent for
payment and distribution to the Holders that remains unclaimed for two years
after the date the money was deposited with the Warrant Agent shall be paid to
the Company.  The Warrant
Agent shall not be under any liability for interest on any monies at any time
received by it pursuant to any of the provisions of this Agreement.

 

12.2        Payment
of Taxes.  The Company shall pay all transfer, stamp and
other similar taxes that may be imposed in respect of the issuance or delivery
of the Warrants or in respect of the issuance or delivery by the Company of any
securities upon exercise of the Warrants with respect thereto. The Company
shall not be required, however, to pay any tax or other charge imposed in
connection with any transfer involved in the issue of any Warrants, certificate
for shares of Common Stock or other securities underlying the Warrants or
payment of cash to any Person other than the Holder of a Warrant Certificate
surrendered upon the exercise or purchase of a Warrant, and in case of such
transfer or payment, the Warrant Agent and the Company shall not be required to
issue any security or to pay any cash until such tax or charge has been paid or
it has been established to the Warrant Agent’s and the Company’s satisfaction
that no such tax or other charge is due.  The Company and each Initial Investor agree that
neither the issuance nor exercise of the Warrants is governed by Section 83(a) of
the Code or otherwise a compensatory transaction, and the Company agrees that
it will not deduct any amount as compensation in connection with such issuance
or exercise for federal income tax purpose.

 

12.3        Surrender of Certificates.  Any
Warrant Certificate surrendered for exercise or purchase shall, if surrendered
to the Company, be delivered to the Warrant Agent, and all Warrant Certificates
surrendered or so delivered to the Warrant Agent shall be promptly cancelled by
the Warrant Agent and shall not be reissued by the Company. The Warrant Agent
shall destroy such cancelled Warrant Certificates.

 

12.4        Mutilated, Destroyed, Lost and Stolen Warrant
Certificates.  If (a) any mutilated Warrant Certificate
is surrendered to the Warrant Agent or (b) the Company and the Warrant
Agent receive evidence to their satisfaction of the destruction, loss or theft
of any Warrant Certificate, and there is delivered to the Company and the
Warrant Agent such appropriate affidavit of loss, applicable processing fee and
a corporate bond of indemnity as may be required by them and satisfactory to
them to save each of
them harmless, then, in the absence of notice to the Company or the Warrant
Agent that such Warrant Certificate has been acquired by a bona fide purchaser,
the Company shall execute and upon its written request the Warrant Agent shall
countersign and deliver, in exchange for any such mutilated Warrant Certificate
or in lieu of any such destroyed, lost or stolen Warrant Certificate, a new
Warrant Certificate of like tenor and for a like aggregate number of Warrants.

 

Upon
the issuance of any new Warrant Certificate under this Section 12.4,
the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and other
expenses (including the reasonable fees and expenses of the Warrant Agent and
of counsel to the Company) in connection therewith.

 

Every
new Warrant Certificate executed and delivered pursuant to this Section 12.4
in lieu of any destroyed, lost or stolen Warrant Certificate shall constitute
an original contractual obligation of the Company, whether or not the
destroyed, lost or stolen Warrant Certificate shall 

 

27

 

be
at any time enforceable by anyone, and shall be entitled to the benefits of
this Agreement equally and proportionately with any and all other Warrant
Certificates of like tenor properly completed and duly executed and delivered
hereunder.

 

The
provisions of this Section 12.4 are exclusive and shall preclude
(to the extent lawful) all other rights or remedies with respect to the
replacement of mutilated, destroyed lost or stolen Warrant Certificates.

 

12.5        Removal of Legends. 
Certificates evidencing the Warrants and shares of Common Stock issued
upon exercise of the Warrants shall not be required to contain any legend
referenced in Sections 2.1 or 3.6(e) (A) while a
registration statement covering the resale of the Warrants or the shares of
Common Stock is effective under the Securities Act, or (B) following any
sale of any such Warrants or shares of Common Stock pursuant to Rule 144,
or (C) following receipt of a legal opinion of counsel to Holder that the
remaining Warrants or shares of Common Stock held by Holder are eligible for
resale without volume limitations or limitations on manner of sale under Rule 144.  In addition, the Company and the Warrant
Agent will agree to the removal of all legends with respect to Warrants or
shares of Common Stock deposited with DTC from time to time in anticipation of
sale in accordance with the volume limitations and other limitations under Rule 144,
subject to the Company’s approval of appropriate procedures, such approval not
to be unreasonably withheld, conditioned or delayed.

 

Following
the time at which any such legend is no longer required (as provided above) for
certain Warrants or shares of Common Stock, the Company shall promptly,
following the delivery by Holder to the Warrant Agent of a legended certificate
representing such Warrants or shares of Common Stock, as applicable, deliver or
cause to be delivered to the Holder a certificate representing such Warrants or
shares of Common Stock that is free from such legend.  In the event any of the legends referenced in
Sections 2.1 or 3.6(e) are removed from any of the Warrants
or shares of Common Stock, and thereafter the effectiveness of a registration
statement covering such Warrants or shares of Common Stock is suspended or the
Company determines that a supplement or amendment thereto is required by
applicable securities Laws, then the Company may require that such legends, as
applicable, be placed on any such applicable Warrants or shares of Common Stock
that cannot then be sold pursuant to an effective registration statement or
under Rule 144 and Holder shall cooperate in the replacement of such
legend.  Such legend shall thereafter be
removed when such Warrants or shares of Common Stock may again be sold pursuant
to an effective registration statement or under Rule 144.

 

12.6        Notices.  (a) 
Any notice, demand or delivery authorized by this Agreement shall be
sufficiently given or made when mailed if sent by first-class mail, postage
prepaid, addressed to any Holder of a Warrant at such Holder’s address shown on
the register of the Company maintained by the Warrant Agent and to the Company
or the Warrant Agent as follows:

 

If
to the Company, to:

 

General
Growth Properties, Inc.

110
N. Wacker Drive

 

28

 

Chicago
IL 60606

Attention: Ronald L. Gern, Esq. (General Counsel)

Fax:  312-960-5485

 

with
a copy to (which shall not constitute notice):

 

Weil,
Gotshal & Manges LLP

767
Fifth Avenue

New
York, NY 10153

Attention:              Frederick S.
Green, Esq.

Malcolm
E. Landau, Esq.

Facsimile:
(212) 310-8007

 

If to the Warrant Agent, to:

 

Mellon Investor Services LLC

200 W. Monroe Street, Suite 1590

Chicago, IL 60606

Attention: Relationship Manager

Facsimile: (312) 325-7610

 

with a copy to:

 

Mellon Investor Services LLC

Newport Office Center VII

480 Washington Blvd.

Jersey City, NJ 07310

Attention: 
General Counsel

Facsimile: 201-680-4610

 

or
such other address as shall have been furnished to the party giving or making
such notice, demand or delivery.

 

(b)           Any notice required to be given by the Company to the Holders pursuant to
this Agreement, shall be made by mailing by registered mail, return receipt
requested, to the Holders at their respective addresses shown on the register
of the Company maintained by the Warrant Agent. The Company hereby irrevocably
authorizes the Warrant Agent, in the name and at the expense of the Company, to
mail any such notice upon receipt thereof from the Company. Any notice that is
mailed in the manner herein provided shall be conclusively presumed to have
been duly given when mailed, whether or not the Holder receives the notice.

 

12.7        Applicable Law; Jurisdiction.  This
Agreement and each Warrant issued hereunder and all rights arising hereunder
shall be governed by the internal laws of the State of New York.  In connection with any action, suit or
proceeding arising out of or relating to this Agreement or the Warrants, the
parties hereto and each Holder irrevocably submit to (i) the exclusive
jurisdiction of the United States Bankruptcy Court for the Southern District of
New York until the chapter 11 cases of General Growth Properties, Inc. and
its Affiliates are closed, 

 

29

 

and (ii) the
nonexclusive jurisdiction of any federal or state court located within the
County of New York, State of New York.

 

12.8        Persons Benefiting.  This
Agreement shall be binding upon and inure to the benefit of the Company and the
Warrant Agent, and their respective successors, assigns, beneficiaries,
executors and administrators, and the Holders from time to time of the
Warrants.  The Holders of the Warrants are
express third party beneficiaries of this Agreement and each such Holder of
Warrants is hereby conferred the benefits, rights and remedies under or by
reason of the provisions of this Agreement as if a signatory hereto.  Nothing in this Agreement is intended or shall be
construed to confer upon any Person, other than the Company, the Warrant Agent
and the Holders of the Warrants, any right, remedy or claim under or by reason
of this Agreement or any part hereof.

 

12.9        Counterparts.  This
Agreement may be executed in any number of counterparts, each or which shall be
deemed an original, but all of which together constitute one and the same
instrument.

 

12.10      Amendments.  (a) 
The Company and the Warrant Agent may from time to time supplement or amend
this Agreement without the approval of any Holder in order to cure any
ambiguity, to correct or supplement any provision contained herein which may be
defective or inconsistent with any other provisions herein, or to make any
other provisions with regard to matters or questions arising hereunder which
the Company and the Warrant Agent may deem necessary or desirable and, in each
case, which shall not adversely affect the interests of any Holder.

 

(b)           In addition to the foregoing, with the consent of the Supermajority
Holders, the Company and the Warrant Agent may modify this Agreement for the
purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Warrant Agreement or modifying in any manner the
rights of the Holders hereunder; provided, however, that no
modification effecting the terms upon which the Warrants are exercisable,
redeemable or transferable, or reduction in the percentage required for consent
to modification of this Agreement, may be made without the consent of each
Holder affected thereby.

 

12.11      Headings.  The
descriptive headings of the several Articles and Sections of this Agreement are
inserted for convenience and shall not control or affect the meaning or
construction of any of the provisions hereof.

 

12.12      Entire Agreement.  This
Agreement constitutes the entire agreement and supersedes all prior agreements
and understandings, both written and oral, between the parties with respect to
the subject matter hereof. In the event of any conflict, discrepancy, or
ambiguity between the terms and conditions contained in this Agreement and any
schedules or attachments hereto, the terms and conditions contained in this
Agreement shall take precedence.

 

12.13      Specific Performance. 
The parties shall
be entitled to specific performance of the terms of this Agreement.  Each of the parties hereto hereby waives (i) any
defenses in any action for specific performance, including the defense that a
remedy at law would be adequate

 

30

 

and (ii) any requirement
under any Law to post a bond or other security as a prerequisite to obtaining
equitable relief.

 

[signature page follows]

 

31

 

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

 

	
   

  	
  GENERAL
  GROWTH PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Linda J. Wight

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Linda
  J. Wight

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President and Assistant Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MELLON
  INVESTOR SERVICES LLC,

  
	
   

  	
  as
  Warrant Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Blatchford

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Thomas
  Blatchford

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[SIGNATURE
PAGE TO GGP WARRANT AGREEMENT]

 

32

 

EXHIBIT A-1

 

FORM OF FACE OF WARRANT CERTIFICATE

 

THESE
WARRANTS AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER
APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SECURITIES MAY BE
OFFERED, SOLD OR TRANSFERRED ONLY IN COMPLIANCE WITH THE REQUIREMENTS OF SUCH
ACT AND OF ANY APPLICABLE STATE SECURITIES LAWS AND SUBJECT TO THE PROVISIONS
OF THE WARRANT AGREEMENT DATED AS OF NOVEMBER 9, 2010 BETWEEN GENERAL GROWTH
PROPERTIES, INC. (THE “COMPANY”) AND MELLON INVESTOR SERVICES LLC,
WARRANT AGENT. A COPY OF SUCH WARRANT AGREEMENT IS AVAILABLE AT THE OFFICES OF
THE COMPANY.

 

WARRANTS TO PURCHASE COMMON STOCK

OF GENERAL GROWTH PROPERTIES, INC.

 

	
  No.                                    

  	
  Certificate for
                                    
  Series A-1 Warrants

  

 

This
certifies that [HOLDER], or registered assigns, is the registered holder
of the number of Series A-1 Warrants set forth above. Each Series A-1
Warrant entitles the holder thereof (a “Holder”), subject to the
provisions contained herein and in the Warrant Agreement referred to below, to
purchase from GENERAL GROWTH PROPERTIES, INC. (the “Company”) a number of shares of the Company’s common stock, par value $0.01 (“Common
Stock”), equal to [INSERT $10.75 FOR
BROOKFIELD WARRANTS AND BLACKSTONE B WARRANTS][INSERT $10.50 FOR BLACKSTONE F/P
WARRANTS]  divided
by the Exercise Price (as defined in the Warrant Agreement referred to below),
for a price per share of Common Stock equal to the Exercise Price.

 

This
Warrant Certificate is issued under and in accordance with the Warrant
Agreement, dated as of November 9, 2010 (the “Warrant Agreement”),
between the Company and Mellon Investor Services LLC, a New Jersey limited
liability company, as warrant agent (the “Warrant Agent”, which term
includes any successor Warrant Agent under the Warrant Agreement), and is
subject to the terms and provisions contained in the Warrant Agreement, to all
of which terms and provisions the Holder of this Warrant Certificate consents
by acceptance hereof. The Warrant Agreement is hereby incorporated herein by
reference and made a part hereof. Reference is hereby made to the Warrant
Agreement for a full statement of the respective rights, limitations of rights,
duties, obligations and immunities thereunder of the Company, the Warrant Agent
and the Holders of the Warrants.

 

This
Warrant Certificate shall terminate and be void as of the close of business on November 9,
2017 (the “Expiration Date”).

 

As
provided in the Warrant Agreement and subject to the terms and conditions
therein set forth, the Series A-1 Warrants shall be exercisable from time
to time on any Business Day and ending on the Expiration Date.

 

 

The
Exercise Price and the number of shares of Common Stock issuable upon the
exercise of each Series A-1 Warrant are subject to adjustment as provided
in the Warrant Agreement.

 

All
shares of Common Stock issuable by the Company upon the exercise of Series A-1
Warrants shall, upon such issue, be duly and validly issued and fully paid and
non-assessable.

 

In
order to exercise a Series A-1 Warrant, the registered holder hereof must
surrender this Warrant Certificate at the corporate trust office of the Warrant
Agent, with the Exercise Subscription Form on the reverse hereof duly
executed by the Holder hereof, with signature guaranteed as therein specified,
together with any required payment in full of the Exercise Price (unless the
Holder shall have elected Net Share Settlement, as such term is defined in the
Warrant Agreement) then in effect for the shares(s) of Underlying Common
Stock as to which the Series A-1 Warrant(s) represented by this
Warrant Certificate are submitted for exercise, all subject to the terms and
conditions hereof and of the Warrant Agreement.

 

The
Company shall pay all transfer, stamp and other similar taxes that may be
imposed in respect of the issuance or delivery of the Series A-1 Warrants
or in respect of the issuance or delivery by the Company of any securities upon
exercise of the Series A-1 Warrants with respect thereto. The Company
shall not be required, however, to pay any tax or other charge imposed in
connection with any transfer involved in the issue of any Series A-1
Warrants, certificate for shares of Common Stock or other securities underlying
the Series A-1 Warrants or payment of cash in each case to any Person
other than the Holder of a Warrant Certificate surrendered upon the exercise or
purchase of a Series A-1 Warrant, and in case of such transfer or payment,
the Warrant Agent and the Company shall not be required to issue any security
or to pay any cash until such tax or charge has been paid or it has been
established to the Warrant Agent’s and the Company’s satisfaction that no such
tax or other charge is due.

 

This
Warrant Certificate and all rights hereunder are transferable by the registered
holder hereof, subject to the terms of the Warrant Agreement, in whole or in
part, on the register of the Company, upon surrender of this Warrant
Certificate for registration of transfer at the office of the Warrant Agent
maintained for such purpose in the City of New York, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Warrant Agent duly executed by, the Holder hereof or his
attorney duly authorized in writing, with signature guaranteed as specified in
the attached Form of Assignment. Upon any partial transfer, the Company
will issue and deliver to such holder a new Warrant Certificate or Certificates
with respect to any portion not so transferred.

 

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

 

Subject
to compliance with any restrictions on transfer under applicable law and this
Warrant Agreement, each taker and holder of this Warrant Certificate by taking
or holding the same, consents and agrees that this Warrant Certificate when
duly endorsed in blank shall be deemed negotiable and that when this Warrant
Certificate shall have been so endorsed, the holder hereof may be treated by
the Company, the Warrant Agent and all other Persons dealing 

 

2

 

with
this Warrant Certificate as the absolute owner hereof for any purpose and as
the Person entitled to exercise the rights represented hereby, or to the
transfer hereof on the register of the Company maintained by the Warrant Agent,
any notice to the contrary notwithstanding, but until such transfer on such
register, the Company and the Warrant Agent may treat the registered Holder
hereof as the owner for all purposes.

 

This
Warrant Certificate and the Warrant Agreement are subject to amendment as
provided in the Warrant Agreement.

 

All
terms used in this Warrant Certificate that are defined in the Warrant
Agreement shall have the meanings assigned to them in the Warrant Agreement.

 

Copies
of the Warrant Agreement are on file at the office of the Company and the
Warrant Agent and may be obtained by writing to the Company or the Warrant
Agent at the following address: Mellon Investor Services LLC, 200 W. Monroe
Street, Suite 1590, Chicago, IL 60606.

 

This
Warrant Certificate shall not be valid for any purpose until it shall have been
countersigned by the Warrant Agent.

 

Dated:
November 9, 2010

 

	
   

  	
  GENERAL
  GROWTH PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name
  and Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name
  and Title:

  
	
   

  	
   

  
	
  Countersigned:

  	
   

  
	
   

  	
   

  
	
  Mellon
  Investor Services LLC, as Warrant Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Authorized
  Officer

  	
   

  
					

 

3

 

EXHIBIT A

 

FORM OF REVERSE OF SERIES A-1 WARRANT CERTIFICATE

 

EXERCISE SUBSCRIPTION FORM

 

(To be executed only upon exercise of Warrant)

 

To:                                           

 

The
undersigned irrevocably exercises
                                            
of the Series A-1 Warrants for the purchase of one share (subject to
adjustment in accordance with the Warrant Agreement) of common stock, par value
$0.01, of General Growth Properties, Inc. for each Series A-1 Warrant
represented by the Warrant Certificate and herewith (i) elects for Net
Share Settlement of such Series A-1 Warrants by marking X in the space
that follows         , or (ii) makes
payment of
$                              
(such payment being by means permitted by the Warrant Agreement and the within
Warrant Certificate), in each case at the Exercise Price and on the terms and
conditions specified in the within Warrant Certificate and the Warrant
Agreement therein referred to, and herewith surrenders this Warrant Certificate
and all right, title and interest therein to
                                                
and directs that the shares of Common Stock deliverable upon the exercise of
such Series A-1 Warrants be registered in the name and delivered at the
address specified below.

 

	
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  *

  
	
   

  	
  (Signature
  of Owner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Street
  Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (City)

  	
  (State) (Zip Code)

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed by:

  
	
   

  	
   

  
	
   

  	
   

  
						

 

*                                         The signature
must correspond with the name as written upon the face of the within Warrant
Certificate in every particular, without alteration or enlargement or any
change whatever, and must be guaranteed by a participant in a Medallion
Signature Guarantee Program at a guarantee level acceptable to the Company’s
transfer agent.

 

 

Securities
to be issued to:

 

 

Please
insert social security or identifying number:

 

 

Name:

 

 

Street
Address:

 

 

City,
State and Zip Code:

 

 

Any
unexercised Series A-1 Warrants evidenced by the within Warrant
Certificate to be issued to:

 

 

Please
insert social security or identifying number:

 

 

Name:

 

 

Street
Address:

 

 

City,
State and Zip Code:

 

2

 

EXHIBIT A-2

 

FORM OF FACE OF WARRANT CERTIFICATE

 

THESE
WARRANTS AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER
APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SECURITIES MAY BE
OFFERED, SOLD OR TRANSFERRED ONLY IN COMPLIANCE WITH THE REQUIREMENTS OF SUCH
ACT AND OF ANY APPLICABLE STATE SECURITIES LAWS AND SUBJECT TO THE PROVISIONS
OF THE WARRANT AGREEMENT DATED AS OF NOVEMBER 9, 2010 BETWEEN GENERAL GROWTH
PROPERTIES, INC. (THE “COMPANY”) AND MELLON INVESTOR SERVICES LLC,
WARRANT AGENT. A COPY OF SUCH WARRANT AGREEMENT IS AVAILABLE AT THE OFFICES OF
THE COMPANY.

 

WARRANTS TO PURCHASE COMMON STOCK

OF GENERAL GROWTH PROPERTIES, INC.

 

	
  No.                                    

  	
  Certificate for
                                    
  Series A-2 Warrants

  

 

This
certifies that [HOLDER], or registered assigns, is the registered holder
of the number of Series A-2 Warrants set forth above. Each Series A-2
Warrant entitles the holder thereof (a “Holder”), subject to the
provisions contained herein and in the Warrant Agreement referred to below, to
purchase from GENERAL GROWTH PROPERTIES, INC. (the “Company”) by
means of Net Share Settlement (as defined in the Warrant Agreement defined
below) a number of shares of the Company’s common
stock, par value $0.01 (“Common Stock”), equal
to $10.50  divided
by the Exercise Price (as defined in the Warrant Agreement referred to below),
for a price per share of Common Stock equal to the Exercise Price.

 

This
Warrant Certificate is issued under and in accordance with the Warrant
Agreement, dated as of November 9, 2010 (the “Warrant Agreement”),
between the Company and Mellon Investor Services LLC, a New Jersey limited
liability company, as warrant agent (the “Warrant Agent”, which term
includes any successor Warrant Agent under the Warrant Agreement), and is
subject to the terms and provisions contained in the Warrant Agreement, to all
of which terms and provisions the Holder of this Warrant Certificate consents
by acceptance hereof. The Warrant Agreement is hereby incorporated herein by
reference and made a part hereof. Reference is hereby made to the Warrant
Agreement for a full statement of the respective rights, limitations of rights,
duties, obligations and immunities thereunder of the Company, the Warrant Agent
and the Holders of the Warrants.

 

This
Warrant Certificate shall terminate and be void as of the close of business on November 9,
2017 (the “Expiration Date”).

 

As
provided in the Warrant Agreement and subject to the terms and conditions
therein set forth, the Series A-2 Warrants shall be exercisable from time
to time on any Business Day and ending on the Expiration Date.

 

3

 

The
Exercise Price and the number of shares of Common Stock issuable upon the
exercise of each Series A-2 Warrant are subject to adjustment as provided
in the Warrant Agreement.

 

All
shares of Common Stock issuable by the Company upon the exercise of Series A-2
Warrants shall, upon such issue, be duly and validly issued and fully paid and
non-assessable.

 

In
order to exercise a Series A-2 Warrant, the registered holder hereof must
surrender this Warrant Certificate at the corporate trust office of the Warrant
Agent, with the Exercise Subscription Form on the reverse hereof duly
executed by the Holder hereof, with signature guaranteed as therein specified,
all subject to the terms and conditions hereof and of the Warrant Agreement.

 

The
Company shall pay all transfer, stamp and other similar taxes that may be
imposed in respect of the issuance or delivery of the Series A-2 Warrants
or in respect of the issuance or delivery by the Company of any securities upon
exercise of the Series A-2 Warrants with respect thereto. The Company
shall not be required, however, to pay any tax or other charge imposed in
connection with any transfer involved in the issue of any Series A-2
Warrants, certificate for shares of Common Stock or other securities underlying
the Series A-2 Warrants or payment of cash in each case to any Person
other than the Holder of a Warrant Certificate surrendered upon the exercise or
purchase of a Series A-2 Warrant, and in case of such transfer or payment,
the Warrant Agent and the Company shall not be required to issue any security
or to pay any cash until such tax or charge has been paid or it has been
established to the Warrant Agent’s and the Company’s satisfaction that no such
tax or other charge is due.

 

This
Warrant Certificate and all rights hereunder are transferable by the registered
holder hereof, subject to the terms of the Warrant Agreement, in whole or in
part, on the register of the Company, upon surrender of this Warrant
Certificate for registration of transfer at the office of the Warrant Agent
maintained for such purpose in the City of New York, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Warrant Agent duly executed by, the Holder hereof or his attorney
duly authorized in writing, with signature guaranteed as specified in the
attached Form of Assignment. Upon any partial transfer, the Company will
issue and deliver to such holder a new Warrant Certificate or Certificates with
respect to any portion not so transferred.

 

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

 

Subject
to compliance with any restrictions on transfer under applicable law and this
Warrant Agreement, each taker and holder of this Warrant Certificate by taking
or holding the same, consents and agrees that this Warrant Certificate when duly
endorsed in blank shall be deemed negotiable and that when this Warrant
Certificate shall have been so endorsed, the holder hereof may be treated by
the Company, the Warrant Agent and all other Persons dealing with this Warrant
Certificate as the absolute owner hereof for any purpose and as the Person
entitled to exercise the rights represented hereby, or to the transfer hereof
on the register of the Company maintained by the Warrant Agent, any notice to
the contrary notwithstanding, but until 

 

4

 

such
transfer on such register, the Company and the Warrant Agent may treat the
registered Holder hereof as the owner for all purposes.

 

This
Warrant Certificate and the Warrant Agreement are subject to amendment as
provided in the Warrant Agreement.

 

All
terms used in this Warrant Certificate that are defined in the Warrant
Agreement shall have the meanings assigned to them in the Warrant Agreement.

 

Copies
of the Warrant Agreement are on file at the office of the Company and the
Warrant Agent and may be obtained by writing to the Company or the Warrant
Agent at the following address: Mellon Investor Services LLC, 200 W. Monroe
Street, Suite 1590, Chicago, IL 60606.

 

This
Warrant Certificate shall not be valid for any purpose until it shall have been
countersigned by the Warrant Agent.

 

Dated:
November 9, 2010

 

	
   

  	
  GENERAL
  GROWTH PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name
  and Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name
  and Title:

  
	
   

  	
   

  
	
  Countersigned:

  	
   

  
	
   

  	
   

  
	
  Mellon
  Investor Services LLC, as Warrant Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Authorized
  Officer

  	
   

  
					

 

5

 

EXHIBIT A

 

FORM OF REVERSE OF SERIES A-2 WARRANT CERTIFICATE

 

EXERCISE SUBSCRIPTION FORM

 

(To be executed only upon exercise of Warrant)

 

To:                                             

 

The
undersigned irrevocably exercises
                                            
of the Series A-2 Warrants for the purchase of one share (subject to
adjustment in accordance with the Warrant Agreement) of common stock, par value
$0.01, of General Growth Properties, Inc. for each Series A-2 Warrant
represented by the Warrant Certificate by means of Net Share Settlement of such
Series A-2 Warrants, at the Exercise Price and on the terms and conditions
specified in the within Warrant Certificate and the Warrant Agreement therein
referred to, and herewith surrenders this Warrant Certificate and all right,
title and interest therein to
                                                
and directs that the shares of Common Stock deliverable upon the exercise of
such Series A-2 Warrants be registered in the name and delivered at the
address specified below.

 

	
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  *

  
	
   

  	
  (Signature
  of Owner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Street
  Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (City)

  	
  (State) (Zip Code)

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed by:

  
	
   

  	
   

  
	
   

  	
   

  
						

 

*                                         The signature
must correspond with the name as written upon the face of the within Warrant
Certificate in every particular, without alteration or enlargement or any
change whatever, and must be guaranteed by a participant in a Medallion
Signature Guarantee Program at a guarantee level acceptable to the Company’s
transfer agent.

 

1

 

Securities
to be issued to:

 

 

Please
insert social security or identifying number:

 

 

Name:

 

 

Street
Address:

 

 

City,
State and Zip Code:

 

 

Any
unexercised Series A-2 Warrants evidenced by the within Warrant Certificate
to be issued to:

 

 

Please
insert social security or identifying number:

 

 

Name:

 

 

Street
Address:

 

 

City,
State and Zip Code:

 

2

 

EXHIBIT B

 

FORM OF ASSIGNMENT

 

FOR VALUE RECEIVED the undersigned registered
holder of the within Warrant Certificate hereby sells, assigns, and transfers
unto the Assignee(s) named below (including the undersigned with respect
to any Warrants constituting a part of the Warrants evidenced by the within
Warrant Certificate not being assigned hereby) all of the right of the
undersigned under the within Warrant Certificate, with respect to the number of
Warrants set forth below:

 

	
  Names of Assignees

  	
   

  	
  Address

  	
   

  	
  Social Security or

  other Identifying

  Number of

  Assignee(s)

  	
   

  	
  Series and

  Number of

  Warrants

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

and
does hereby irrevocably constitute and appoint
                            
the undersigned’s attorney to make such transfer on the books of
                        
maintained for that purpose, with full power of substitution in the premises.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  *

  
	
   

  	
  (Signature
  of Owner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Street
  Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (City)

  	
  (State) (Zip Code)

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed by:

  
	
   

  	
   

  
	
   

  	
   

  
						

 

*                                         The signature
must correspond with the name as written upon the face of the within Warrant
Certificate in every particular, without alteration or enlargement or any
change whatever, and must be guaranteed by a participant in a Medallion
Signature Guarantee Program at a guarantee level acceptable to the Company’s
transfer agent.

 

2

 

EXHIBIT C

 

Option Pricing Assumptions / Methodology

 

For
the purpose of this Exhibit C:

 

“Acquiror” means (A) the third party that has entered
into definitive document for a transaction, or (B) the offeror in the
event of a tender or exchange offer.

 

“Reference Date” means the date of consummation of a Change
of Control Event.

 

The Cash Redemption Value of the Warrants shall be
determined using the Black-Scholes Model as applied to third party options (i.e., options issued by a third party that is not affiliated
with the issuer of the underlying stock). For purposes of the model,
the following terms shall have the respective meanings set forth below:

 

	
  Underlying Security Price:

  	
   

  	
  ·

  	
  In
  the event of a merger or other acquisition,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (A)

  	
  that
  is an “all cash” deal, the cash per share of Common Stock to be paid to the
  Company’s stockholders in the transaction;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (B)

  	
  that
  is an “all Public Stock” deal,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (1) that
  is a “fixed exchange ratio” transaction, a “fixed value” transaction where as
  a result of a cap, floor, collar or similar mechanism the number of
  Acquiror’s shares to be paid per share of Common Stock to the Company’s
  stockholders in the transaction is greater or less than it would otherwise
  have been or a transaction that is not otherwise described in this clause
  (B)(1) or clause (B)(2) below, the product of (i) the Fair
  Market Value of the Acquiror’s common stock on the day preceding the date of
  the Preliminary Change of Control Event and (ii) the number of Acquiror’s
  shares per share of Common Stock to be paid to the Company’s stockholders in
  the transaction (provided that the Independent Financial Expert shall
  make appropriate adjustments to the Fair Market Value of the Acquiror’s
  common stock referred to above as may be necessary or appropriate to
  effectuate the intent of this Exhibit C and to avoid unjust or
  inequitable results as determined in its reasonable good faith judgment, in
  each case to account for any event impacting the Acquiror’s common stock that
  is analogous to any of the events described in Article V of this
  Agreement if the record date, ex date or effective date of that event occurs
  during or after the 10 trading 

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  day
  period over which such Fair Market Value is measured) and 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (2) that
  is a “fixed value” transaction not covered by clause (B)(1) above, the
  value per share of Common Stock to be paid to the Company’s stockholders in
  the transaction;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (C)

  	
  that
  is a transaction contemplating various forms of consideration for each share
  of Common Stock,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (1) the
  cash portion, if any, shall be valued as described in clause (A) above,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (2) the
  Public Stock portion shall be valued as described in clause (B) above
  and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (3) any
  other forms of consideration shall be valued by the Independent Financial
  Expert valuing the Warrants, using one or more valuation methods that the
  Independent Financial Expert in its best professional judgment determines to
  be most appropriate, assuming such consideration (if securities) is fully distributed
  and is to be sold in an arm’s-length transaction and there was no compulsion
  on the part of any party to such sale to buy or sell and taking into account
  all relevant factors and without applying any discounts to such
  consideration.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
  In
  the event of all other Change of Control Event events, the Fair Market Value
  per share of the Common Stock on the last trading day preceding the date of
  the Change of Control Event.

  
	
   

  	
   

  	
   

  	
   

  
	
  Exercise Price:

  	
   

  	
  The
  Exercise Price as adjusted and then in effect for the Warrant.

  
	
   

  	
   

  	
   

  
	
  Dividend Rate:

  	
   

  	
  0
  (which reflects the fact that the antidilution adjustment provisions cover
  all dividends).

  
	
   

  	
   

  	
   

  
	
  Interest Rate:

  	
   

  	
  The
  annual yield as of the Reference Date (expressed on a semi-annual basis in
  the manner in which U.S. treasury notes are ordinarily quoted) of the U.S.
  treasury note maturing approximately at the Expiration Date as selected by
  the Independent Financial Expert.

  
	
   

  	
   

  	
   

  
	
  Put or Call:

  	
   

  	
  Call

  

 

 

	
  Time to Expiration

  	
   

  	
  The number of days from the Expiration Date (as
  defined in Section 3.3) to the Reference Date divided by 365.

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  The
  scheduled date of payment of the Cash Redemption Value.

  
	
   

  	
   

  	
   

  
	
  Volatility:

  	
   

  	
  For
  calculation of Cash Redemption Value in connection with a Change of Control
  Event with respect to the Warrants, 20%; provided, however,
  that if the Warrants are adjusted as a result of a Change of Control Event,
  volatility for purposes of calculating Cash Redemption Value in connection
  with succeeding Change of Control Events with respect to such warrants (or
  their successors) shall be as determined by an Independent Financial Expert
  engaged to make the calculation, who shall be instructed to assume for
  purposes of the calculation that such succeeding Change of Control Event had
  not occurred.

  

 

Such
valuation of the Warrant shall not be discounted in any way.

 

For
illustrative purposes only, an example Black-Scholes model calculation with
respect to a hypothetical warrant appears on the following page.

 

 

Illustrative
Example

 

Inputs:

 

S = Underlying
Security Price

 

X = Exercise
Price

 

PV(X) = Present value
of the Exercise Price, discounted at a rate of R = X * (e^-(R * T))

 

V = Volatility

 

R = continuously
compounded risk free rate = 2 * [ ln (1 + Interest Rate / 2)]

 

T = Time to
Expiration

 

W = warrant
value per underlying share

 

Z = number of
shares underlying warrants

 

Value = total warrant
value

 

Formulaic
inputs:

 

D1 = [
ln [ S / X] + (R + (V^2 / 2)) * T)] ÷ (V * √T)

 

D2 = [
ln [ S / X] + (R - (V^2 / 2)) * T)] ÷ (V * √T)

 

Black-Scholes
Formula

 

W = [N(D1) * S] —
[N(D2) * PV(X)]

 

Where
“N” is the cumulative normal probability function

 

Value = W * Z

 

(1)   Note: Amounts calculated
herein may not foot due to rounding error. For precise calculations, decimal
points should not be rounded.

 

Example
of a Hypothetical Warrant:(1)

 

Inputs:

 

Interest
Rate = 4.00%

 

S = $50.00

 

X = $60.00

 

PV(X) = $55.43

 

V = 25%

 

R =
3.96%

 

T = 2

 

Z = 100

 

Formulaic inputs:

 

D1           = [ ln [ S / X] + (R + (V^2 / 2)) * T)] ÷ (V * √T)

 

= (-0.1149)

 

D2           = [ ln [ S / X] + (R - (V^2 / 2)) * T)] ÷ (V * √T)

 

=
(-0.4684)

 

Black-Scholes Formula

 

W            = [N(D1) * S] —
[N(D2) * PV(E)]

 

=
$4.99

 

Total Warrant Value

 

Value     = W * Z

 

= $499

 

 

SCHEDULE A

 

ALLOCATIONS OF WARRANTS TO INITIAL INVESTORS

 

	
  Initial Investor

  	
   

  	
  Total Number and Series of Warrants to be

  Delivered to Initial Investor (on date of Warrant

  Agreement)

  
	
   

  	
   

  	
   

  
	
  Blackstone
  Purchaser

  	
   

  	
  5,000,000
  Series A-1 Warrants

  
	
   

  	
   

  	
   

  
	
  Brookfield
  Purchaser

  	
   

  	
  57,500,000
  Series A-1 Warrants

  
	
   

  	
   

  	
   

  
	
  Fairholme
  Purchasers

  	
   

  	
  41,071,429
  Series A-2 Warrants

  
	
   

  	
   

  	
   

  
	
  Pershing
  Square Purchasers

  	
   

  	
  16,428,571
  Series A-2 Warrants

  

 

 

SCHEDULE B

 

WARRANT AGENT COMPENSATION

 

	
  Service Description

  	
   

  	
  Fees

  	
   

  
	
  Warrant Agent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Initial Setup (one-time charge)

  	
   

  	
  $

  	
  2,500.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Annual Administration

  	
   

  	
  $

  	
  3,500.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Warrant Conversion Agent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Set Up and Administrative Fee

  	
   

  	
  $

  	
  5,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Processing Accounts, each

  	
   

  	
  $

  	
  50.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Conversions requiring additional handling (window
  items, deficient items, correspondence items, legal items, items not
  providing a taxpayer identification number, Transfer Requests, etc),
  additional each

  	
   

  	
  $

  	
  15.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Requisitioning Funds, each requisition

  	
   

  	
  $

  	
  25.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Expiration

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Special Services

  	
   

  	
  Additional

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Out of Pocket Expenses Including Postage,
  Printing, Stationery, Overtime, Transportation,
  Microfilming, Imprinting, Mailing, etc.

  	
   

  	
  AdditionalExhibit 4.2

 

EXECUTION VERSION

 

 

 

 

 

THE ROUSE COMPANY, LLC

 

 

and

 

Wilmington Trust FSB,

 

as Trustee

 

6.75% SENIOR NOTES DUE 2015

 

 

INDENTURE

 

Dated as of November 9, 2010

 

 

 

 

This
INDENTURE dated as of November 9, 2010, is by and between The Rouse Company,
LLC, a limited liability company validly existing under the laws of the State
of Delaware (the “Company”) and Wilmington
Trust FSB, as trustee (the “Trustee”).

 

The
Company and the Trustee agree as follows for the benefit of each other and for
the equal and ratable benefit of the Holders of the 6.75% Senior Notes due 2015
(the “Notes”) issued under this
Indenture:

 

ARTICLE 1.

 

DEFINITIONS AND INCORPORATION BY
REFERENCE

 

Section 1.01.                Definitions.

 

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

 

“144A Global Note” means a Global Note in the form of Exhibit
A hereto bearing the Global Note Legend and the Private Placement Legend and
deposited with and registered in the name of the Depositary or its nominee
issued in a denomination equal to the outstanding principal amount of the Notes
sold for initial resale in reliance on Rule 144A.

 

“Additional Notes” means any Notes (other than Initial Notes
and Notes issued under Sections 2.06, 2.07, 2.10 and 3.06 hereof) issued under
this Indenture in accordance with Sections 2.02 and 2.15 hereof, as part
of the same series as the Initial Notes.

 

“Adjusted Treasury Rate” means, with respect to any
Determination Date, the rate per annum equal to the semi-annual yield to
maturity of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Determination Date, plus 50 basis points.

 

 “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.

 

“Agent” means any Registrar, co-registrar, Paying Agent or
additional paying agent.

 

“Applicable Procedures” means, with respect to any transfer,
redemption or exchange of or for beneficial interests in any Global Note, the rules
and procedures of the Depositary, Euroclear and Clearstream that apply to such
transfer, redemption or exchange.

 

“Asset” means, with respect to one or more transactions
occurring within any 12-month period, any asset or group of assets of the
Company or its Subsidiaries (including, but not limited to, all balance sheet
items and all intangible assets including management contracts, goodwill and
trade secrets) with a fair market or book value, whichever is larger, greater
than 5% of Consolidated Net Tangible Assets on the date of such transaction.

 

“Assets Under Development” means land and improvements owned
by a member of the Consolidated Group or an Investment Affiliate being
developed for retail, office, mixed-use or other rental-income producing purposes
which meet all four of the following criteria: (a) such project (or phase)
has not yet been substantially completed; (b) no rental income has yet
been received; (c) no certificate of occupancy has yet been issued for
such project (or phase); and (d) such project (or phase) is classified as
construction in progress in accordance with GAAP.

 

 

“Attributable Debt” shall mean, as to any particular lease
under which the Company or any Restricted Subsidiary is at the time liable, at
any date as of which the amount thereof is to be determined, the lesser of (i)
the fair value of the property subject to such lease (as certified in an
Officer’s Certificate) or (ii) the total net amount of rent required to be paid
by the Company under such lease during the remaining term thereof, discounted
from the respective due dates thereof to such date at the rate of interest per
annum equal to 8.5%, compounded semi-annually. 
The net amount of rent required to be paid under any such lease for any
such period shall be the amount of the rent payable by the lessee with respect
to such period, after excluding amounts required to be paid on account of
maintenance and repairs, insurance, taxes, assessments, water rates and similar
charges.  In the case of any lease which
is terminable by the lessee upon the payment of a penalty, such net amount
shall also include the amount of such penalty, but no rent shall be considered
as required to be paid under such lease subsequent to the first date upon which
it may be so terminated.

 

“Bankruptcy Law” means Title 11, U.S. Code or any similar
federal or state law for the relief of debtors, or the law of any other
jurisdiction relating to bankruptcy, insolvency, winding up, liquidation,
reorganization or relief of debtors.

 

“Board of Directors” means (1) in respect of a corporation,
the board of directors of the corporation, or any duly authorized committee
thereof; (2) with respect to a partnership, the board of directors, or other
body serving a similar function, of the general partner of the partnership, or
any duly authorized committee thereof; or (3) in respect of any other Person,
the board or committee of that Person serving an equivalent function.

 

“Board Resolution” of a Person means a copy of a resolution
certified by the secretary or an assistant secretary (or individual performing
comparable duties) of the applicable Person to have been duly adopted by the
Board of Directors of such Person and to be in full force and effect on the
date of such certification, and delivered to the Trustee.

 

“Business Day” means any day other than a Legal Holiday.

 

“Capital Lease Obligations” of any Person means the
obligations to pay rent or other amounts under a lease of (or other Debt
arrangements conveying the right to use) real or personal property of such
Person which are required to be classified and accounted for as a capital lease
or a liability on the face of a balance sheet of such Person in accordance with
GAAP, and the amount of such obligations shall be the capitalized amount
thereof in accordance with GAAP and the stated maturity thereof shall be the
date of the last payment of rent or any other amount due under such lease prior
to the first date upon which such lease may be terminated by the lessee without
payment of a penalty.

 

“Capital Stock” means shares, interests, participations or
other equivalents (however designated) of capital stock of a corporation,
equivalent ownership interests in a Person which is not a corporation, and
warrants or options to purchase any of the foregoing.

 

“Cash Equivalents” means (a) short-term obligations of,
or fully guaranteed by, the United States of America, (b) commercial paper
rated A-1 or better by Standard & Poor’s Rating Services (or any
successor) or   P-1 or better by Moody’s
Investors Service, Inc. (or any successor), or (c) certificates of
deposit issued by, and time deposits with, commercial banks (whether domestic
or foreign) having capital and surplus in excess of $100,000,000.

 

“Clearstream”  means
Clearstream Banking S.A. and any successor thereto.

 

“Code” means the U.S. Internal Revenue Code of 1986, as
amended.

 

“Commission”
means the Securities and Exchange Commission.

 

“Company” means The Rouse Company, LLC and any successor
thereto.

 

“Comparable Treasury Issue” means the United States Treasury
security selected by the Independent Investment Banker as having a maturity
comparable to the remaining term of the Notes that would be 

 

2

 

utilized,
at the time of selection and in accordance with customary financial practice,
in pricing new issues of corporate debt securities of comparable maturity to
the remaining term of the Notes.

 

“Comparable Treasury Price” means, with respect to any
Determination Date: (1) the average of the Reference Treasury Dealer Quotations
for such date, after excluding the highest and lowest such Reference Treasury
Dealer Quotations, or (2) if fewer than three such Reference Treasury Dealer
Quotations are obtained, the average of all such Reference Treasury Dealer
Quotations.

 

“Consolidated Coverage Ratio” of any Person means for any
period the ratio of (a) Total FFO for such period plus Total Interest
Expense for the same period for such Person to (b) Total Interest Expense
for the same period for such Person.

 

“Consolidated Group” means the Company and its Subsidiaries
that are consolidated with the Company for financial reporting purposes under
GAAP, and any other Person whose financial results are included using the
proportionate share method under the Company’s segment accounting policies in
the financial statements of the Consolidated Group.

 

“Consolidated Group’s Pro Rata Share” means, with respect to
any Investment Affiliate, the percentage of the total ownership and financial
interests held by the Consolidated Group, in the aggregate, in such Investment
Affiliate as determined in accordance with the Company’s segment accounting
policies in the financial statements of the Consolidated Group.

 

“Consolidated Net Tangible Assets” shall mean the aggregate
amount of assets (less applicable reserves and other properly deductible items)
after deducting therefrom: (i) all current liabilities (excluding any thereof
which are by their terms extendible or renewable at the option of the obligor
thereon to a time more than 12 months after the time as of which the
amount thereof is being computed and excluding current maturities of long-term
indebtedness and Capital Lease Obligations); and (ii) all goodwill, all as
shown in the consolidated balance sheet of the Company and its Subsidiaries as
of the end of the latest fiscal quarter for which consolidated financial
statements are available.

 

“Corporate Trust Office of the Trustee” shall be at the
address of the Trustee specified in Section 11.02 hereof, or such other address
as to which the Trustee may give notice to the Company.

 

“Custodian” means, with respect to the Notes issuable or
issued in whole or in part in global form, the Person specified in Section
2.03(c) as Custodian with respect to the Notes, and any and all successors thereto
appointed as custodian hereunder and having become such pursuant to the
applicable provisions of this Indenture.

 

“Debt” means (without duplication), with respect to any
Person: (i) every obligation of such Person for money borrowed; (ii) every
obligation of such Person evidenced by bonds, debentures, notes or other
similar instruments, including obligations incurred in connection with the
acquisition of property, assets or businesses, but excluding any trade payments
and other accrued current liabilities arising in the ordinary course of
business; (iii) every currently due reimbursement obligation of such Person
with respect to letters of credit, bankers’ acceptances or similar facilities
issued for the account of such Person; (iv) every obligation of such Person
issued or assumed as the deferred purchase price of property, but excluding
trade accounts payable and other accrued current liabilities arising in the
ordinary course of business which are not overdue by more than 90 days or which
are being contested in good faith; (v) every Capital Lease Obligation of such
Person; (vi) the maximum fixed redemption or repurchase price of any equity
security which may be converted into a debt security of such Person at any time
or is mandatorily redeemable for cash within 20 years from its initial
issuance; and (vii) every obligation of the type referred to in clauses (i)
through (vi) of another Person and all dividends of another Person the payment
of which, in either case, such Person has guaranteed or for which such Person
is responsible or liable, directly or indirectly, as obligor, guarantor or
otherwise.

 

“Default” means
any event which is, or after notice or passage of time or both would be, an
Event of Default.

 

3

 

“Definitive Note” means a certificated Note registered in the
name of the Holder thereof and issued in accordance with Section 2.06 or 2.10
hereof, in substantially the form of Exhibit A hereto except that such Note
shall not bear the Global Note Legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary” means, with respect to the Notes issuable or
issued in whole or in part in global form, the Person specified in Section
2.03(b) hereof as the Depositary with respect to the Notes, and any and all
successors thereto appointed as depositary hereunder and having become such
pursuant to the applicable provisions of this Indenture.

 

“Determination Date” means, with respect to the calculation
of the Make-Whole Price in connection with any redemption of the Notes, the
redemption date.

 

 “Distribution Compliance
Period” means the 40-day distribution compliance period as defined
in Regulation S.

 

“Euroclear” means Euroclear Bank, S.A./N.V., as operator of
the Euroclear systems, and any successor thereto.

 

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

 

“GAAP” means generally
accepted accounting principles in the United States, consistent with the
accounting principles utilized in preparing the financial statements of the
Consolidated Group in accordance with this Indenture as in effect from time to
time.  All ratios and computations based
on GAAP contained in this Indenture will be computed in conformity with GAAP.

 

“Global Note Legend” means the legend set forth in Section
2.06(f)(ii), which is required to be placed on all Global Notes issued under
this Indenture.

 

“Global Notes” means the global Notes in the form of Exhibit
A hereto issued in accordance with Article 2 hereof.

 

“Gross Asset Value” means, as of any determination date, the
sum of the values of the following assets of the Consolidated Group, including
the Consolidated Group’s Pro Rata Share of the values of such assets of
Investment Affiliates, based on the valuation methods set forth below:

 

(a)           with respect to all Retail
Properties, the Net Operating Income attributable thereto for the most recent
period of four full fiscal quarters for which financial results have been
reported, divided by 0.0825;

 

(b)           with respect to all office,
mixed-use and other income-producing properties other than Retail Properties,
the Net Operating Income attributable thereto for the most recent period of
four full fiscal quarters for which financial results have been reported,
divided by 0.09;

 

(c)           with respect to any
properties relating to master planned communities, 100% of the most recent
current value thereof (without deduction for the value of the interests of the
Hughes heirs therein under the Hughes Heirs Obligations) as set forth in appraisals
prepared by a nationally recognized appraisal firm selected by the Company),
provided that the Company will obtain updated appraisals thereof at least once
during each fiscal year and also when, during any four consecutive full fiscal
quarters, any such properties having an aggregate value in excess of 5% of
Gross Asset Value as of the end of the last full fiscal quarter are sold or
transferred;

 

(d)           100% of the GAAP book value
of all other land, all Assets Under Development and other non-income-producing
properties (less the portion of such value attributable to minority interest
holders);

 

(e)           100% of the GAAP book value
of cash and Cash Equivalents held by the Consolidated Group; and

 

4

 

(f)            100% of the GAAP book value
of current accounts receivable, net held by the Consolidated Group.

 

Notwithstanding
the preceding sentence, the contribution to the Gross Asset Value of those
assets acquired in any acquisition will be calculated prior to the date ending
on or after four full fiscal quarters subsequent to any such acquisition using
the actual acquisition cost of such assets excluding actual transaction costs
(without regard to any adjustments which may be made in determining book value
under GAAP).

 

“guarantee”
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including, without limitation, by way of a pledge of assets or through
letters of credit or reimbursement agreements in respect thereof), of all or
any part of any Debt. The term “guarantee” used as a verb has a corresponding
meaning.

 

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

 

“Hughes Heirs Obligations” the obligations asserted against
the Company, General Growth Properties, Inc., The Howard Hughes Corporation,
Howard Hughes Properties Limited Partnership and Howard Hughes Properties,
Inc., The Hughes Corporation and any of their affiliates pursuant to the
Contingent Stock Agreement, effective as of January 1, 1996, as the same may be
amended.

 

“IAI Global Note” means a Global Note in the form of Exhibit
A hereto bearing the Global Note Legend and the Private Placement Legend and
deposited with and registered in the name of the Depositary or its nominee
issued in a denomination equal to the outstanding principal amount of the Notes
sold to Institutional Accredited Investors, if any, to the extent required by
the Applicable Procedures.

 

“Incur” means, with respect to any Debt or other obligation
of any Person, to create, issue, incur (by conversion, exchange or otherwise),
assume, guarantee or otherwise become liable in respect of such Debt or other
obligation or the recording, as required pursuant to GAAP or otherwise, of any
such Debt or other obligation on the balance sheet of any such Person (and “incurrence,”
“incurred,” “incurrable” and “incurring” shall have meanings correlative to the
foregoing); provided that a change in GAAP that results in an obligation of
such Person that exists at such time becoming Debt shall not be deemed an
incurrence of such Debt.

 

“Indenture” means this instrument, as originally executed or
as it may from time to time be supplemented or amended in accordance with
Article 9 hereof.

 

“Independent Investment Banker” means one of the Reference
Treasury Dealers appointed by the Company and acceptable to the Trustee after
consultation.

 

“Indirect Participant” means a Person who holds a beneficial
interest in a Global Note through a Participant.

 

“Initial Notes” means $608,688,000 aggregate principal amount
of Notes issued under this Indenture on the date hereof, which Notes shall be
in the form of Unrestricted Global Notes or Unrestricted Definitive Notes,
except to the extent otherwise required in order to comply with the Securities
Act.

 

“Institutional Accredited Investor” means an institution that
is an “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act.

 

“Interest Payment Dates”
shall have the meaning set forth in paragraph 1 of each Note.

 

“Investment Affiliate” means any Person
in which any member of the Consolidated Group, directly or indirectly, has an
ownership interest, whose financial results are not included using the
proportionate share method under the Company’s segment accounting policies with
the financial results of the Consolidated Group in the financial statements of
the Consolidated Group.

 

5

 

“Issue Date” means November
9, 2010.

 

“Legal Holiday” means a Saturday, a Sunday or a day on which
banking institutions in the City of New York, the city in which the Corporate
Trust Office of the Trustee is located or any other place of payment on the
Notes are authorized by law, regulation or executive order to remain closed.

 

“Lien” means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including, without limitation, any
conditional sale or other title retention agreement or lease in the nature
thereof, any filing or agreement to file a financing statement as debtor
under the Uniform Commercial Code on any property leased to any Person under a
lease which is not in the nature of a conditional sale or title retention
agreement, or any subordination agreement in favor of another Person).

 

“Make-Whole Price” means with respect to any Note as of any
Determination Date, an amount equal to the greater of (x) 100% of the principal
amount of the Note and (y) as determined by an Independent Investment Banker,
the sum of the present values of the remaining scheduled payments of principal
and interest thereon (not including any portion of such payments of interest
accrued as of the Determination Date) discounted to the Determination Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Adjusted Treasury Rate, plus, in each case, accrued and unpaid interest
thereon to such Determination Date.

 

“Net Operating Income” means, with respect to any Property,
for any period, earnings from rental operations (computed in accordance with
GAAP, but without deduction for reserves) attributable to such Property, plus
depreciation, amortization, interest expense and deferred taxes with respect to
such Property for such period, and, if such period is less than four full
fiscal quarters, adjusted by straight lining ordinary operating expenses which
are payable less frequently than once during every such period (e.g., real estate taxes and insurance).
The amounts determined under the preceding sentence will be adjusted by adding
back (a) the interests of the former Hughes owners pursuant to the Hughes
Heirs Obligations that were excluded in determining such amounts and
(b) dividends or other distributions accrued with respect to such period
on any preferred stock or other preferred security issued by the Company to the
extent that such dividends or other distributions are treated as an operating
expense under GAAP. “Net Operating Income” shall be adjusted to include a pro
forma amount thereof (as determined in good faith by the Company) for four full
fiscal quarters for any Property placed in service during any quarter and to
exclude any Net Operating Income for the prior four full fiscal quarters from
any Property not owned as of the end of any quarter.

 

“Obligations”
means all obligations for principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Debt.

 

“Officer” means the Chairman of the Board, Vice Chairman,
Chief Executive Officer, Chief Operating Officer, President, Senior or
Executive Vice Presidents, Vice President, Treasurer, Assistant Treasurer,
Secretary or an Assistant Secretary of the Company.

 

“Officer’s Certificate” means a certificate signed by the
Chairman of the Board, Vice Chairman, Chief Executive Officer, Chief Operating
Officer, President, one of its Senior or Executive Vice Presidents, a Vice
President, the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
Secretary, of the Company, and delivered to the Trustee.  The officer signing an Officer’s Certificate
given pursuant to Section 4.04 shall be an Officer.

 

“Opinion of Counsel” means a written opinion, in form and
substance reasonably satisfactory to the Trustee, from legal counsel who is
acceptable to the Trustee and which meets the requirements of Section 11.05
hereof. The counsel may be an employee of or counsel to the Company or the
Trustee.

 

“Participant” means, with respect to the Depositary,
Euroclear or Clearstream, a Person who has an account with the Depositary,
Euroclear or Clearstream, respectively, and, with respect to DTC, shall include
Euroclear and Clearstream.

 

“Person” means
any individual, corporation, any limited liability company, partnership, joint 

 

6

 

venture, trust, unincorporated organization, or
government or any agency or political subdivision thereof.

 

“Predecessor Note”  of any particular Note means every previous Note
evidencing all or a portion of the same Debt as that evidenced by such
particular Note; and any Note authenticated and delivered under Section 2.07 in
lieu of a lost, destroyed or stolen Note shall be deemed to evidence the same
Debt as the lost, destroyed or stolen Note.

 

“Principal Property” shall mean any land, and any building,
structure or other facility, together with the land upon which it is erected
and fixtures comprising a part thereof, in each case the net book value of
which on the date as of which the determination is being made exceeds 2% of
Consolidated Net Tangible Assets at such date; provided, however, that
Principal Property shall not include: (i) any building, structure or facility
which, in the opinion of the Board of Directors of the Company as evidenced by
a Board Resolution, is not of material importance to the total business
conducted by the Company and its Subsidiaries as an entirety; or (ii) any
portion of a particular building, structure or facility which, in the opinion
of the Board of Directors of the Company as evidenced by a Board Resolution, is
not of material importance to the use or operation of such building, structure
or facility.

 

“Private Placement Legend” means the legend set forth in
Section 2.06(f)(i) hereof to be placed on all Notes issued under this Indenture
except as otherwise permitted by the provisions of this Indenture.

 

“Property” means each parcel of real property owned or
operated by any member of the Consolidated Group or any Investment Affiliate.

 

“QIB” means a “qualified institutional buyer” as defined in
Rule 144A.

 

“Ratio Calculation” means that, immediately after either the
incurrence of Debt or the sale of or other disposal of an Asset, as the case
may be, we, or our agent, shall calculate the Consolidated Coverage Ratio for
the four full fiscal quarter period preceding the Incurrence, sale or disposal
for which consolidated financial statements are available. In making such
calculation, (a) the Total Interest Expense attributable to interest on
any Debt to be Incurred bearing a floating interest rate shall be computed on a
pro forma basis as if the rate in effect on the date of computation had been
the applicable rate for the entire period and (b) with respect to any Debt
which bears, at the option of the Company, a fixed or floating rate of
interest, the Company shall apply the same rate for purposes of calculating the
Consolidated Coverage Ratio as it chooses to apply to the Debt. In addition,
such calculation shall be performed using the consolidated financial statements
which shall be reformulated on a pro forma basis as if such Debt had been
Incurred or such Asset had been sold or otherwise disposed of, as the case may
be, at the beginning of such four fiscal quarter period. Such reformulation
shall give effect, as if the relevant event had occurred at the beginning of
such four fiscal quarter period, to any actual use of proceeds of such Debt
being incurred or Asset being sold or disposed of and to any Incurrences or
repayments of Debt and other sales, disposals or acquisitions of Assets
occurring after the end of the last quarter for which there are consolidated
financial statements available. If any portion of the proceeds has not been
used, it shall be assumed that such portion of the proceeds was invested in
one-year Treasury bills on the first day of such four fiscal quarter period.

 

“Reference Treasury Dealer” means a primary U.S. Government
securities dealer in New York City appointed by the Company and acceptable to
the Trustee after consultation.

 

“Reference Treasury Dealer Quotations” means, with respect to
each Reference Treasury Dealer and any Determination Date, the average of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case
as a percentage of its principal amount) quoted in writing by such Reference
Treasury Dealer at 5:00 p.m. on the third business day preceding such
Determination Date.

 

“Regular Record Date” for the interest
payable on any Interest Payment Date means the applicable date specified as a “Record
Date” on the face of the Note.

 

“Regulation S” means Regulation S promulgated under the
Securities Act.

 

7

 

“Regulation S Global Note” means a Regulation S Temporary
Global Note or Regulation S Permanent Global Note, as appropriate.

 

“Regulation S Permanent Global Note” means a permanent Global
Note in the form of Exhibit A hereto bearing the Global Note Legend and the
Private Placement Legend and deposited with and registered in the name of the
Depositary or its nominee that will be issued in a denomination equal to the
outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Distribution Compliance Period.

 

“Regulation S Temporary Global Note” means a temporary Global
Note in the form of Exhibit A hereto bearing the Global Note Legend, the
Private Placement Legend and Regulation S Temporary Global Note Legend and
deposited with and registered in the name of the Depositary or its nominee,
issued in a denomination equal to the outstanding principal amount of the Notes
sold for initial resale in reliance on Rule 903 of Regulation S.

 

“Regulation S Temporary Global Note Legend” means the legend
set forth in Section 2.06(f)(iii) hereof to be placed on all Regulation S
Temporary Global Notes issued under this Indenture.

 

“Responsible Officer,” when used with respect to the Trustee,
means any officer within the Corporate Trust Department of the Trustee (or any
successor group of the Trustee) with direct responsibility for the
administration of this Indenture and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject.

 

“Restricted Definitive Note” means one or more Definitive
Notes bearing the Private Placement Legend.

 

“Restricted Global Notes” means 144A Global Notes, IAI Global
Notes and Regulation S Global Notes.

 

“Restricted Subsidiary”
means any subsidiary of the Company which has a 50% or greater ownership interest
in a Principal Property or Properties.

 

“Retail Property” means a shopping center or other retail
development containing more than one retail tenant in which at least 90% of the
Net Operating Income from such center or development is attributable to retail
uses.

 

“Rule 144” means Rule 144 promulgated under the Securities
Act.

 

“Rule 144A” means Rule 144A promulgated under the Securities
Act.

 

“Rule 903” means Rule 903 promulgated under the Securities
Act.

 

“Rule 904” means Rule 904 promulgated under the Securities
Act.

 

“Sale/Leaseback Transaction” has the meaning specified in
Section 4.10.

 

“Secured Debt” means, as of any determination date, the sum
of:

 

(a)           the aggregate principal
amount of all Debt of the Consolidated Group then outstanding (including only
the Company’s proportionate interest in the Debt of any Person whose financial
results are included using the proportionate share method under the Company’s
segment accounting policies in the financial statements of the Consolidated
Group) which is secured by a Lien on any asset (including any Capital Stock) of
any member of the Consolidated Group, including, without limitation, loans
secured by mortgages, stock or partnership interests; plus

 

8

 

(b)           the Consolidated Group’s Pro
Rata Share of any Debt of an Investment Affiliate then outstanding which is
secured by a Lien on any asset (including any Capital Stock) of such Investment
Affiliate, without duplication of any such items.

 

For
purposes of the preceding sentence, “Debt” shall (1) include, with respect
to any Person, any loans where such Person is liable as a general partner or
co-venturer less, in each case, the proportionate share of any other general or
limited partners or co-venturers and (2) exclude any Debt due from any
member of the Consolidated Group or any Investment Affiliate solely to one or
more members of the Consolidated Group.

 

“Securities Act” means the Securities Act of 1933, as
amended.

 

 “Significant Subsidiary” means any Subsidiary of the
Company that holds assets that had a value, on a current value basis, in excess
of 3% of the Company’s total partners’ capital, on a current value basis, as
reported in the Company’s most recent annual financial statements.

 

“Stated Maturity” means,
with respect to any installment of interest or principal on any series of Debt
(including, without limitation, a scheduled repayment or a scheduled sinking
fund payment), the date on which the payment of interest or principal was
scheduled to be paid in the original documentation governing such Debt, and
will not include any contingent obligations to repay, redeem or repurchase any
such interest or principal prior to the date originally scheduled for the
payment hereof.

 

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

 

“TIA” means the Trust Indenture Act of 1939, as amended, and
the rules and regulations thereunder.

 

“Total Debt” means, as of any
determination date:

 

(a)           all Debt of the
Consolidated Group then outstanding (including only the Company’s proportionate
interest in the Debt of any Person whose financial results are included using
the proportionate share method under the Company’s segment accounting policies
in the financial statements of the Consolidated Group); plus

 

(b)           the
Consolidated Group’s Pro Rata Share of all Debt of Investment Affiliates then
outstanding, without duplication of any such items.

 

For
purposes of the preceding sentence, “Debt” will (1) include, with respect
to any Person, any loans where such Person is liable as a general partner or co-venturer
less, in each case, the proportionate share of any other general or limited
partners or co-venturers and (2) exclude any Debt due from any member of
the Consolidated Group or any Investment Affiliate solely to one or more
members of the Consolidated Group.

 

“Total FFO” means, for any period, net
earnings, as reported by the Consolidated Group in accordance with GAAP,
excluding cumulative effects of changes in accounting principles, extraordinary
or unusual items, gains or losses from debt restructurings and sales of
operating properties, and deferred income taxes, plus depreciation and
amortization and after adjustments for minority interests, and treating
unconsolidated partnerships and joint ventures on the same basis, plus payments
made and other amounts treated as an expense of the Company under GAAP with
respect to such period pursuant to the Hughes Heirs Obligations (provided that
no item of income or expense shall be included more than once in such
calculation even if it falls within more than one of the above categories).

 

“Total Interest Expense” means, for any period, the sum of

 

9

 

(a)           all interest
expense of the Consolidated Group (less the proportionate share of interest
expense of any minority interest holders); plus

 

(b)           the allocable
portion (based on liability) of any interest expense on any obligation for
which any member of the Consolidated Group is wholly or partially liable under
repayment, interest carry or performance guarantees or other relevant
liabilities; plus

 

(c)           the
Consolidated Group’s Pro Rata Share of any interest expense on any Debt of any
Investment Affiliate, whether recourse or non-recourse,

 

(provided
that no expense shall be included more than once in such calculation even if it
falls within more than one of the foregoing categories, and provided, further,
that no interest expense on Debt due from one member of the Consolidated Group
solely to another member of the Consolidated Group shall be included in
determining Total Interest Expense). For purposes of the preceding sentence,
interest expense will be determined in accordance with GAAP and will exclude any
amortization of debt issuance costs.

 

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

 

“Unrestricted Definitive Notes” means one or more Definitive
Notes that do not and are not required to bear the Private Placement Legend.

 

“Unrestricted Global Notes” means one or more Global Notes
that do not and are not required to bear the Private Placement Legend and are
deposited with and registered in the name of the Depositary or its nominee.

 

“U.S. Government Securities” means direct obligations (or certificates representing an ownership
interest in such obligations) of the United States of America (including any
agency or instrumentality thereof) for the payment of which the full faith and
credit of the United States of America is pledged and which are not callable or
redeemable at the issuer’s option.

 

Section 1.02.                Other
Definitions.

 

	
   

  	
   

  	
  Defined in

  	
   

  
	
  Term

  	
   

  	
  Section

  	
   

  
	
  “Authentication Order”

  	
   

  	
  2.02

  	
   

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  	
   

  
	
  “defeasance trust”

  	
   

  	
  8.04

  	
   

  
	
  “DTC”

  	
   

  	
  2.03

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “losses”

  	
   

  	
  7.07

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Required Information”

  	
   

  	
  4.03

  	
   

  
	
  “Security Register”

  	
   

  	
  2.03

  	
   

  

 

Section 1.03.                Incorporation
by Reference of Trust Indenture Act.

 

(a) Whenever this Indenture
expressly incorporates a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.

 

(b) The TIA term “obligor” upon the Notes means the Company and any successor
obligor upon the Notes.

 

10

 

Section 1.04.                Conflict
with Trust Indenture Act.

 

If any provision hereof limits, qualifies or conflicts
with a provision of the TIA that is required under the TIA to be a part of and
govern this Indenture, the TIA provision shall control.  If any provision of this Indenture modifies
or excludes any provision of the TIA that may be so modified or excluded, the
TIA provision shall be deemed

 

(a) to apply to this Indenture
as so modified or

 

(b) to be excluded, as the case
may be.

 

Section 1.05.                Rules of
Construction.

 

(a) Unless the context otherwise
requires:

 

(i)    a term has the meaning
assigned to it;

 

(ii)   an accounting term not
otherwise defined herein has the meaning assigned to it in accordance with
GAAP;

 

(iii)  “or” is not exclusive;

 

(iv)  words in the singular
include the plural, and in the plural include the singular;

 

(v)   all references in this
instrument to “Articles,” “Sections” and other subdivisions are to the
designated Articles, Sections and subdivisions of this instrument as originally
executed;

 

(vi)  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;

 

(vii) “including” means “including
without limitation”;

 

(viii)    provisions apply to
successive events and transactions; and

 

(ix)   references to sections of or
rules under the Securities Act, the Exchange Act or the TIA shall be
deemed to include substitute, replacement or successor sections or rules adopted
by the Commission from time to time thereunder.

 

ARTICLE 2.

 

THE NOTES

 

Section 2.01.                Form and
Dating.

 

(a) General.  The Notes and the Trustee’s certificate of
authentication shall be substantially in the form included in Exhibit A
hereto, which is hereby incorporated in and expressly made part of this
Indenture.  The Notes may have notations,
legends or endorsements required by law, exchange rule or usage in
addition to those set forth on Exhibit A. 
Each Note shall be dated the date of its authentication.  The Notes shall be in denominations of $1,000
and integral multiples thereof.  The
terms and provisions contained in the Notes shall constitute a part of this
Indenture and the Company and the Trustee, by their execution and delivery of
this Indenture, expressly agree to such terms and provisions and to be bound thereby.  To the extent any provision of any Note
conflicts with the express provisions of this Indenture, the provisions of this
Indenture shall govern and be controlling.

 

11

 

(b) Form of Notes.  Notes shall be issued in global form and
shall be substantially in the form of Exhibit A attached hereto (including
the Global Note Legend thereon and the “Schedule of Exchanges of Interests in
the Global Note” attached thereto). 
Notes issued in definitive form shall be substantially in the form of Exhibit A
attached hereto (but without the Global Note Legend thereon and without the “Schedule
of Exchanges of Interests in the Global Note” attached thereto).  Each Global Note shall represent such
aggregate principal amount of the outstanding Notes as shall be specified
therein and each shall provide that it shall represent the aggregate principal
amount of outstanding Notes from time to time endorsed thereon and that the
aggregate principal amount of outstanding Notes represented thereby may from
time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions and transfers of interests therein. 
Any endorsement of a Global Note to reflect the amount of any increase
or decrease in the aggregate principal amount of outstanding Notes represented
thereby shall be made by the Trustee or the Custodian, at the direction of the
Trustee, in accordance with instructions given by the Holder thereof as
required by Section 2.06 hereof.

 

(c) Temporary Global Notes.  Notes offered and sold in reliance on
Regulation S shall be issued initially in the form of the Regulation S
Temporary Global Note, which shall be deposited on behalf of the purchasers of
the Notes represented thereby with the Trustee, at its New York office, as
custodian for the Depositary, and registered in the name of the Depositary or
the nominee of the Depositary for the accounts of designated agents holding on
behalf of Euroclear or Clearstream, duly executed by the Company and
authenticated by the Trustee as hereinafter provided.  The Distribution Compliance Period shall be
terminated upon the receipt by the Trustee of (i) a written certificate
from the Depositary, together with copies of certificates from Euroclear and
Clearstream certifying that they have received certification of non-United
States beneficial ownership of 100% of the aggregate principal amount of the
Regulation S Temporary Global Note (except to the extent of any beneficial
owners thereof who acquired an interest therein during the Distribution
Compliance Period pursuant to another exemption from registration under the
Securities Act and who will take delivery of a beneficial ownership interest in
a Global Note, bearing a Private Placement Legend, all as contemplated by Section 2.06(b) hereof),
and (ii) an Officer’s Certificate from the Company.  Following the termination of the Distribution
Compliance Period, beneficial interests in the Regulation S Temporary Global
Note shall be exchanged for beneficial interests in the Regulation S Permanent
Global Note pursuant to the Applicable Procedures.  Simultaneously with the authentication of the
Regulation S Permanent Global Note, the Trustee shall cancel the Regulation S
Temporary Global Note.  The aggregate
principal amount of the Regulation S Temporary Global Note and the Regulation S
Permanent Global Notes may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depositary or its
nominee, as the case may be, in connection with transfers of interests as
hereinafter provided.

 

(d) Book-Entry Provisions.  This Section 2.01(d) shall apply
only to Global Notes deposited with the Trustee, as custodian for the
Depositary.  Participants and Indirect
Participants shall have no rights under this Indenture or any Global Note with
respect to any Global Note held on their behalf by the Depositary or by the
Trustee as custodian for the Depositary, and the Depositary shall be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of such Global Note for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary
and its Participants or Indirect Participants, the Applicable Procedures or the
operation of customary practices of the Depositary governing the exercise of
the rights of a holder of a beneficial interest in any Global Note.

 

(e) Euroclear and Clearstream
Procedures Applicable.  The
provisions of the “Operating Procedures of the Euroclear System” and “Terms and
Conditions Governing Use of Euroclear” and the “General Terms and Conditions of
Clearstream” and “Customer Handbook” of Clearstream shall be applicable to
transfers of beneficial interests in Global Notes that are held by Participants
through Euroclear or Clearstream.

 

(f)  Certificated Securities.  The Company shall exchange Global Notes for
Definitive Notes if: (1) at any time the Depositary notifies the Company
that it is unwilling or unable to continue to act as Depositary for the Global
Notes or if at any time the Depositary shall no longer be eligible to act as
such because it ceases to be a clearing agency registered under the Exchange
Act, and, in either case, the Company shall not have appointed a successor
Depositary within 120 days after the Company receives such notice or become
aware of such ineligibility, (2) the Company, in its discretion and in
accordance with the rules of the Depositary, determines not to require
that all of the Notes be represented by a Global Note and the Company notify
the Trustee of its decision or (3) upon 

 

12

 

written request of the Trustee if an Event of
Default shall have occurred and be continuing with respect to the Notes
represented by a Global Note and the Trustee shall have received a written
request from the Depositary to issue such Notes in certificated form.

 

Upon
the occurrence of any of the events set forth in clauses (1), (2) or (3) above,
the Company shall execute, and, upon receipt of an Authentication Order in
accordance with Section 2.02 hereof, the Trustee shall authenticate and
deliver, Definitive Notes, in authorized denominations, in an aggregate
principal amount equal to the principal amount of the Global Notes in exchange
for such Global Notes.

 

In
no event shall the Regulation S Temporary Global Note be exchanged by the
Company for Definitive Notes prior to (x) the expiration of the
Distribution Compliance Period and (y) the receipt by the Registrar of any
certificates required pursuant to Rule 903(b)(3)(ii)(B) under the
Securities Act.

 

Upon
the exchange of a Global Note for Definitive Notes, such Global Note shall be
cancelled by the Trustee or an agent of the Company or the Trustee.  Definitive Notes issued in exchange for a
Global Note pursuant to this Section 2.01 shall be registered in such
names and in such authorized denominations as the Depositary, pursuant to
instructions from its Participants or its Applicable Procedures, shall instruct
the Trustee or an agent of the Company or the Trustee in writing.  The Trustee or such agent shall deliver such
Definitive Notes to or as directed by the Persons in whose names such
Definitive Notes are so registered or to the Depositary.

 

Section 2.02.                Execution
and Authentication.

 

(a) One Officer of the Company
shall execute the Notes on behalf of the Company by manual or facsimile
signature.

 

(b) If an Officer whose
signature is on a Note no longer holds that office at the time a Note is
authenticated by the Trustee, the Note shall nevertheless be valid.

 

(c) A Note shall not be valid
until authenticated by the manual signature of the Trustee.  The signature shall be conclusive evidence
that the Note has been authenticated under this Indenture.

 

(d) The Trustee shall, upon a
written order of the Company signed by an Officer of the Company (an “Authentication Order”), authenticate
Notes for issuance.

 

(e) The Trustee may appoint an
authenticating agent acceptable to the Company to authenticate Notes.  Unless otherwise provided in such
appointment, an authenticating agent may authenticate Notes whenever the
Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by such
agent.  An authenticating agent shall
have the same rights as the Trustee to deal with Holders, the Company or an
Affiliate of the Company.

 

Section 2.03.                Registrar
and Paying Agent.

 

(a) The Company shall maintain
an office or agency where Notes may be presented for registration of transfer
or for exchange (“Registrar”) and an office or
agency where Notes may be presented for payment (“Paying
Agent”).  The Registrar
shall keep a register (the “Security Register”)
of the Notes and of their transfer and exchange.  The Company may appoint one or more
co-registrars and one or more additional paying agents.  The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying
agent.  The Company may change any Paying
Agent or Registrar without notice to any Holder.  The Company shall notify the Trustee in
writing of the name and address of any Agent not a party to this Indenture.  If the Company fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as
such.  The Company or any of its
Subsidiaries may act as Paying Agent or Registrar.

 

(b) The Company initially
appoints The Depository Trust Company (“DTC”) to
act as Depositary with respect to the Global Notes.

 

13

 

(c) The Company initially
appoints the Trustee to act as Registrar and Paying Agent and to act as
Custodian with respect to the Global Notes, and the Trustee hereby agrees so to
initially act.

 

Section 2.04.                Paying
Agent to Hold Money in Trust.

 

The
Company shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent shall hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal,
premium, if any, or interest on the Notes, and shall notify the Trustee of any
default by the Company in making any such payment.  While any such default continues, the Trustee
may require a Paying Agent to pay all funds held by it relating to the Notes to
the Trustee.  The Company at any time may
require a Paying Agent to pay all funds held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary) shall have no further
liability for such funds.  If the Company
or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate
trust fund for the benefit of the Holders all funds held by it as Paying
Agent.  Upon any Event of Default under
Sections 6.01(e) and (f) hereof relating to the either of the
Company, the Trustee shall serve as Paying Agent for the Notes.

 

Section 2.05.                Holder
Lists.

 

The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of all
Holders.  If the Trustee is not the
Registrar, the Company shall furnish or cause to be furnished to the Trustee at
least seven Business Days before each Interest Payment Date and at such other
times as the Trustee may request in writing, a list in such form and as of such
date or such shorter time as the Trustee may allow, as the Trustee may
reasonably require of the names and addresses of the Holders.

 

Section 2.06.                Transfer
and Exchange.

 

(a) Transfer and Exchange of
Global Notes.  A Global
Note may not be transferred as a whole except by the Depositary to a nominee of
the Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.  Upon the occurrence of any of the events set
forth in Section 2.01(f) above, Definitive Notes shall be issued in
denominations of $1,000 or integral multiples thereof and in such names as the
Depositary shall instruct the Trustee in writing.  Global Notes also may be exchanged or
replaced, in whole or in part, as provided in Sections 2.07 and 2.10
hereof.  Except as provided above, every
Note authenticated and delivered in exchange for, or in lieu of, a Global Note
or any portion thereof, pursuant to this Section 2.06 or Section 2.07
or 2.10 hereof, shall be authenticated and delivered in the form of, and shall
be, a Global Note.  A Global Note may not
be exchanged for another Note other than as provided in this Section 2.06(a),
and beneficial interests in a Global Note may not be transferred and exchanged
other than as provided in Section 2.06(b) or (c) hereof.

 

(b) Transfer and Exchange of
Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial
interests in the Global Notes shall be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures.  Beneficial interests in the Restricted Global
Notes shall be subject to restrictions on transfer comparable to those set
forth herein to the extent required by the Securities Act.  Transfers of beneficial interests in Global
Notes also shall require compliance with either clause (i) or (ii) below,
as applicable, as well as one or more of the other following clauses, as
applicable:

 

(i)    Transfer of Beneficial
Interests in the Same Global Note.  Beneficial interests in any Restricted Global
Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend and any
Applicable Procedures; provided, however, that prior to the expiration of the Distribution
Compliance Period, transfers of beneficial interests in the Regulation S
Temporary Global Note may not be made to or for the account or benefit of a “U.S.
Person” (as defined in Rule 902(k) of Regulation S) (other than a “distributor”
(as defined in Rule 902(d) of the Regulation S)).  Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note.  Except as may be required by any Applicable
Procedures, no written orders or instructions shall be required to be delivered
to the Registrar to effect the transfers described in this Section 2.06(b)(i).

 

14

 

(ii)   All Other Transfers and
Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.06(b)(i) above,
the transferor of such beneficial interest must deliver to the Registrar either
(A)(1) a written order from a Participant or an Indirect Participant given
to the Depositary in accordance with the Applicable Procedures directing the
Depositary to credit or cause to be credited a beneficial interest in another Global
Note in an amount equal to the beneficial interest to be transferred or
exchanged and (2) instructions given in accordance with the Applicable
Procedures containing information regarding the Participant account to be
credited with such increase or (B)(1) if permitted under Section 2.06(a),
a written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the
Depositary to cause to be issued a Definitive Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions
given by the Depositary to the Registrar containing information regarding the
Person in whose name such Definitive Note shall be registered to effect the
transfer or exchange referred to in (B)(1) above; provided
that in no event shall Definitive Notes be issued upon the transfer or exchange
of beneficial interests in the Regulation S Temporary Global Note prior to (x) the
expiration of the Distribution Compliance Period and (y) the receipt by
the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under
the Securities Act.  Upon satisfaction of
all of the requirements for transfer or exchange of beneficial interests in
Global Notes contained in this Indenture and the Notes or otherwise applicable
under the Securities Act, the Trustee shall adjust the principal amount of the
relevant Global Note(s) pursuant to Section 2.06(g) hereof.

 

(iii)  Transfer of Beneficial
Interests in a Restricted Global Note to Another Restricted Global Note.  A holder of a beneficial interest in a
Restricted Global Note may transfer such beneficial interest to a Person who
takes delivery thereof in the form of a beneficial interest in another
Restricted Global Note if the transfer complies with the requirements of Section 2.06(b)(ii) above
and the Registrar receives the following:

 

(A)  if the transferee will take
delivery in the form of a beneficial interest in the 144A Global Note, then the
transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (1) thereof or, if permitted by the
Applicable Procedures, item (3) thereof;

 

(B)   if the transferee will take
delivery in the form of a beneficial interest in the Regulation S Temporary
Global Note or the Regulation S Permanent Global Note, as the case may be, then
the transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (2) thereof; and

 

(C)   if the transferee is
required by the Applicable Procedures to take delivery in the form of a
beneficial interest in the IAI Global Note, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications
and certificates and Opinion of Counsel required by item (3) thereof, if
applicable.

 

(iv)  Transfer or Exchange of
Beneficial Interests in a Restricted Global Note for Beneficial Interests in an
Unrestricted Global Note.  A
holder of a beneficial interest in a Restricted Global Note may exchange such
beneficial interest for a beneficial interest in an Unrestricted Global Note or
may transfer such beneficial interest to a Person who takes delivery thereof in
the form of a beneficial interest in an Unrestricted Global Note only if the
exchange or transfer complies with the requirements of Section 2.06(b)(ii) above
and the Registrar receives the following:

 

(A)  if the holder of such
beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for a beneficial interest in an Unrestricted Global Note, a
certificate from such holder in the form of Exhibit C hereto, including
the certifications in item (1)(a) thereof; or

 

15

 

(B)   if the holder of such
beneficial interest in a Restricted Global Note proposes to transfer such
beneficial interest to a Person who shall take delivery thereof in the form of
a beneficial interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit B hereto, including the certifications in item
(4) thereof;

 

and,
in each such case, if the Registrar so requests or if the Applicable Procedures
so require, an Opinion of Counsel in form reasonably acceptable to the
Registrar to the effect that such exchange or transfer complies with the
Securities Act and that the restrictions on transfer contained herein and in
the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act.

 

(v)   Transfer or Exchange of
Beneficial Interests in an Unrestricted Global Note for Beneficial Interests in
a Restricted Global Note Prohibited.  Beneficial interests in an Unrestricted
Global Note may not be exchanged for, or transferred to Persons who take
delivery thereof in the form of, beneficial interests in a Restricted Global
Note.

 

(c) Transfer and Exchange of
Beneficial Interests in Global Notes for Definitive Notes.

 

(i)    Transfer or Exchange of
Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes.  Subject to Section 2.06(a) hereof,
if any holder of a beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Restricted Definitive Note or to
transfer such beneficial interest to a Person who takes delivery thereof in the
form of a Restricted Definitive Note, then, upon receipt by the Registrar of
the following documentation:

 

(A)  if the holder of such
beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for a Restricted Definitive Note, a certificate from such
holder in the form of Exhibit C hereto, including the certifications in
item (2)(a) thereof;

 

(B)   if such beneficial interest
is being transferred to a QIB in accordance with Rule 144A, a certificate
to the effect set forth in Exhibit B hereto, including the certifications
in item (1) thereof;

 

(C)   if such beneficial interest
is being transferred to a “Non-U.S. Person” in an offshore transaction (as
defined in Section 902(k) of Regulation S) in accordance with Rule 903
or Rule 904, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (2) thereof;

 

(D)  if such beneficial interest
is being transferred pursuant to an exemption from the registration
requirements of the Securities Act in accordance with Rule 144 under the
Securities Act, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(a) thereof;

 

(E)   if such beneficial interest
is being transferred to an Institutional Accredited Investor in reliance on an
exemption from the registration requirements of the Securities Act other than
those listed in clauses (B) through (D) above, a certificate to the
effect set forth in Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3)(d) thereof, if
applicable; or

 

(F)   if such beneficial interest
is being transferred to the Company or any of its Subsidiaries, a certificate
to the effect set forth in Exhibit B hereto, including the certifications
in item (3)(b) thereof,

 

16

 

the
Trustee shall reduce or cause to be reduced in a corresponding amount pursuant
to Section 2.06(g) hereof, the aggregate principal amount of the
applicable Restricted Global Note, and the Company shall execute and, upon
receipt of an Authentication Order in accordance with Section 2.02 hereof,
the Trustee shall authenticate and deliver a Restricted Definitive Note in the
appropriate principal amount to the Person designated by the holder of such
beneficial interest in the instructions delivered to the Registrar by the
Depositary and the applicable Participant or Indirect Participant on behalf of
such holder.  Any Restricted Definitive
Note issued in exchange for beneficial interests in a Restricted Global Note
pursuant to this Section 2.06(c)(i) shall be registered in such name
or names and in such authorized denomination or denominations as the holder of
such beneficial interest shall designate in such instructions.  The Trustee shall deliver such Restricted
Definitive Notes to the Persons in whose names such Notes are so
registered.  Any Restricted Definitive
Note issued in exchange for a beneficial interest in a Restricted Global Note
pursuant to this Section 2.06(c)(i) shall bear the Private Placement
Legend and shall be subject to all restrictions on transfer contained therein.

 

(ii)   Notwithstanding Sections
2.06(c)(i)(A) and (C) hereof, a beneficial interest in the Regulation
S Temporary Global Note may not be exchanged for a Definitive Note or
transferred to a Person who takes delivery thereof in the form of a Definitive
Note prior to (x) the expiration of the Distribution Compliance Period and
(y) the receipt by the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under
the Securities Act, except in the case of a transfer pursuant to an exemption
from the registration requirements of the Securities Act other than Rule 903
or Rule 904.

 

(iii)  Transfer or Exchange of
Beneficial Interests in Restricted Global Notes to Unrestricted Definitive
Notes.  Subject to Section 2.06(a) hereof,
a holder of a beneficial interest in a Restricted Global Note may exchange such
beneficial interest for an Unrestricted Definitive Note or may transfer such
beneficial interest to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Note only if the Registrar receives the following:

 

(A)  if the holder of such
beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for an Unrestricted Definitive Note, a certificate from
such holder in the form of Exhibit C hereto, including the certifications
in item (1)(b) thereof; or

 

(B)   if the holder of such
beneficial interest in a Restricted Global Note proposes to transfer such
beneficial interest to a Person who shall take delivery thereof in the form of
an Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit B
hereto, including the certifications in item (4) thereof;

 

and, in each such case, if
the Registrar so requests or if the Applicable Procedures so require, an
Opinion of Counsel in form reasonably acceptable to the Registrar to the effect
that such exchange or transfer complies with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend are
no longer required in order to maintain compliance with the Securities Act.

 

Upon satisfaction of any of the conditions of any of the clauses of
this Section 2.06(c)(iii), the Company shall execute and, upon receipt of
an Authentication Order in accordance with Section 2.02 hereof, the
Trustee shall authenticate and deliver an Unrestricted Definitive Note in the
appropriate principal amount to the Person designated by the holder of such
beneficial interest in instructions delivered to the Registrar by the
Depositary and the applicable Participant or Indirect Participant on behalf of
such holder, and the Trustee shall reduce or cause to be reduced in a
corresponding amount pursuant to Section 2.06(g), the aggregate principal
amount of the applicable Restricted Global Note.

 

(iv)  Transfer or Exchange of
Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive
Notes.  Subject to Section 2.06(a) hereof,
if any holder of a beneficial interest in an Unrestricted Global Note proposes
to exchange such beneficial interest for an Unrestricted Definitive Note or to
transfer such beneficial interest to a Person who takes delivery thereof in the
form of an Unrestricted Definitive 

 

17

 

Note, then, upon
satisfaction of the applicable conditions set forth in Section 2.06(b)(ii) hereof,
the Trustee shall reduce or cause to be reduced in a corresponding amount
pursuant to Section 2.06(g) hereof, the aggregate principal amount of
the applicable Unrestricted Global Note, and the Company shall execute, and,
upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate and deliver an Unrestricted Definitive
Note in the appropriate principal amount to the Person designated by the holder
of such beneficial interest in instructions delivered to the Registrar by the
Depositary and the applicable Participant or Indirect Participant on behalf of
such holder.  Any Unrestricted Definitive
Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(iv) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall designate in such
instructions.  The Trustee shall deliver
such Unrestricted Definitive Notes to the Persons in whose names such Notes are
so registered.  Any Unrestricted
Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(iv) shall
not bear the Private Placement Legend.

 

(d) Transfer and Exchange of
Definitive Notes for Beneficial Interests in the Global Notes.

 

(i)    Transfer or Exchange of
Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes.  If any holder of a Restricted Definitive Note
proposes to exchange such Restricted Definitive Note for a beneficial interest
in a Restricted Global Note or to transfer such Restricted Definitive Notes to
a Person who takes delivery thereof in the form of a beneficial interest in a
Restricted Global Note, then, upon receipt by the Registrar of the following
documentation:

 

(A)  if the holder of such
Restricted Definitive Note proposes to exchange such Restricted Definitive Note
for a beneficial interest in a Restricted Global Note, a certificate from such
holder in the form of Exhibit C hereto, including the certifications in
item (2)(b) thereof;

 

(B)   if such Restricted
Definitive Note is being transferred to a QIB in accordance with Rule 144A,
a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (1) thereof;

 

(C)   if such Restricted
Definitive Note is being transferred to a “non-U.S. Person” in an offshore
transaction (as defined in Rule 902(k) of Regulation S) in accordance
with Rule 903 or Rule 904, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (2) thereof;

 

(D)  if such Restricted
Definitive Note is being transferred pursuant to an exemption from the
registration requirements of the Securities Act in accordance with Rule 144,
a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (3)(a) thereof;

 

(E)   if such Restricted
Definitive Note is being transferred to an Institutional Accredited Investor in
reliance on an exemption from the registration requirements of the Securities
Act other than those listed in clauses (B) through (D) above, a
certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3)(d) thereof,
if applicable; or

 

(F)   if such Restricted
Definitive Note is being transferred to the Company or any of its Subsidiaries,
a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (3)(b) thereof,

 

the
Trustee shall cancel the Restricted Definitive Note, increase or cause to be
increased in a corresponding amount pursuant to Section 2.06(g) hereof,
the aggregate principal amount of, in the case of clause (A) 

 

18

 

above,
the appropriate Restricted Global Note, in the case of clause (B) above, a
144A Global Note, in the case of clause (C) above, a Regulation S Global
Note, and in all other cases, a IAI Global Note.

 

(ii)   Transfer or Exchange of
Restricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes.  A holder of a Restricted
Definitive Note may exchange such Restricted Definitive Note for a beneficial
interest in an Unrestricted Global Note or transfer such Restricted Definitive
Note to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note only if the Registrar receives the
following:

 

(A)  if the holder of such
Restricted Definitive Note proposes to exchange such Restricted Definitive Note
for a beneficial interest in an Unrestricted Global Note, a certificate from
such holder in the form of Exhibit C hereto, including the certifications
in item (1)(c) thereof; or

 

(B)   if the holder of such
Restricted Definitive Note proposes to transfer such Restricted Definitive Note
to a Person who shall take delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note, a certificate from such Holder in the
form of Exhibit B hereto, including the certifications in item (4) thereof;

 

and, in each such case, if
the Registrar so requests or if the Applicable Procedures so require, an
Opinion of Counsel in form reasonably acceptable to the Registrar to the effect
that such exchange or transfer shall be effected in compliance with the Securities
Act and that the restrictions on transfer contained herein and in the Private
Placement Legend shall no longer be required in order to maintain compliance
with the Securities Act.

 

Upon satisfaction of the conditions of any of the clauses in this Section 2.06(d)(ii),
the Trustee shall cancel such Restricted Definitive Note and increase or cause
to be increased in a corresponding amount pursuant to Section 2.06(g) hereof,
the aggregate principal amount of the Unrestricted Global Note.

 

(iii)  Transfer or Exchange of
Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes.  A holder of an Unrestricted
Definitive Note may exchange such Unrestricted Definitive Note for a beneficial
interest in an Unrestricted Global Note or transfer such Unrestricted
Definitive Note to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note at any time.  Upon receipt of a request for such an
exchange or transfer, the Trustee shall cancel the applicable Unrestricted
Definitive Note and increase or cause to be increased in a corresponding amount
pursuant to Section 2.06(g) hereof the aggregate principal amount of
one of the Unrestricted Global Notes.

 

(iv)  Transfer or Exchange of
Unrestricted Definitive Notes to Beneficial Interests in Restricted Global
Notes Prohibited.  An
Unrestricted Definitive Note may not be exchanged for, or transferred to
Persons who take delivery thereof in the form of, beneficial interests in a
Restricted Global Note.

 

(v)   Issuance of Unrestricted
Global Notes.  If any such
exchange or transfer of a Definitive Note for a beneficial interest in an
Unrestricted Global Note is effected pursuant to clause (ii) or (iii) at
a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in
an aggregate principal amount equal to the principal amount of Definitive Notes
so transferred.

 

(e) Transfer and Exchange of
Definitive Notes for Definitive Notes.  Upon request by a holder of Definitive Notes
and such holder’s compliance with the provisions of this Section 2.06(e),
the Registrar shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such
holder.  In addition, the requesting
holder shall

 

19

 

provide any additional certifications, documents and
information, as applicable, required pursuant to the following provisions of
this Section 2.06(e).

 

(i)    Transfer of Restricted
Definitive Notes to Restricted Definitive Notes.  Any Restricted Definitive Note may be
transferred to and registered in the name of Persons who take delivery thereof
in the form of a Restricted Definitive Note if the Registrar receives the
following:

 

(A)  if the transfer will be made
pursuant to Rule 144A, a certificate in the form of Exhibit B hereto,
including the certifications in item (1) thereof;

 

(B)   if the transfer will be made
pursuant to Rule 903 or Rule 904, a certificate in the form of Exhibit B
hereto, including the certifications in item (2) thereof; and

 

(C)   if the transfer will be made
pursuant to any other exemption from the registration requirements of the
Securities Act, a certificate in the form of Exhibit B hereto, including
the certifications, certificates and Opinion of Counsel required by item (3) thereof,
if applicable.

 

(ii)   Transfer or Exchange of
Restricted Definitive Notes to Unrestricted Definitive Notes.  Any Restricted Definitive Note may be
exchanged by the holder thereof for an Unrestricted Definitive Note or
transferred to a Person or Persons who take delivery thereof in the form of an
Unrestricted Definitive Note only if the Registrar receives the following:

 

(A)  if the holder of such
Restricted Definitive Note proposes to exchange such Restricted Definitive
Notes for an Unrestricted Definitive Note, a certificate from such holder in
the form of Exhibit C hereto, including the certifications in item (1)(d) thereof;
or

 

(B)   if the holder of such
Restricted Definitive Notes proposes to transfer such Restricted Definitive
Notes to a Person who shall take delivery thereof in the form of an
Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit B
hereto, including the certifications in item (4) thereof;

 

and, in each such case, if
the Registrar so requests, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer complies with the
Securities Act and that the restrictions on transfer contained herein and in
the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act.

 

Upon
satisfaction of the conditions of any of the clauses of this Section 2.06(e)(ii),
the Trustee shall cancel the prior Restricted Definitive Note and the Company
shall execute, and upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate and deliver an Unrestricted Definitive
Note in the appropriate aggregate principal amount to the Person designated by
the holder of such prior Restricted Definitive Note in instructions delivered
to the Registrar by such holder.

 

(iii)  Transfer of Unrestricted
Definitive Notes to Unrestricted Definitive Notes.  A holder of Unrestricted Definitive Notes may
transfer such Unrestricted Definitive Notes to a Person who takes delivery
thereof in the form of an Unrestricted Definitive Note.  Upon receipt of a request to register such a
transfer, the Registrar shall register the Unrestricted Definitive Notes
pursuant to the instructions from the holder thereof.

 

(f)  Legends.  The following legends shall appear on the
face of all Global Notes and Definitive Notes issued under this Indenture
unless specifically stated otherwise in the applicable provisions of this
Indenture.

 

20

 

(i)    Private Placement Legend.

 

(A)  Except as permitted by
clause (B) below, each Global Note and each Definitive Note (and all Notes
issued in exchange therefor or substitution thereof) shall bear the legend in
substantially the following form:

 

“THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) TO A PERSON
WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN
THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (2) TO A NON-U.S. PERSON IN AN
OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER
THE SECURITIES ACT, (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (4) TO
AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501 (A)(1),
(2), (3) OR (7) UNDER THE SECURITIES ACT, IN A TRANSACTION
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH
CASE, IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF
THE UNITED STATES.”

 

(B)   Notwithstanding the
foregoing, any Global Note or Definitive Note issued pursuant to clauses
(b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii) or (e)(iii) to
this Section 2.06 (and all Notes issued in exchange therefor or
substitution thereof) shall not bear the Private Placement Legend.

 

(ii)   Global Note Legend.  Each Global Note shall bear a legend in
substantially the following form:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE,
(II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT
TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.  UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENTS FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

 

21

 

(iii)  Regulation S Temporary
Global Note Legend.  Each
Regulation S Temporary Global Note shall bear a legend in substantially the
following form:

 

“EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS
REGULATION S TEMPORARY GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN
THE REGULATION S PERMANENT GLOBAL NOTE OR ANY OTHER NOTE REPRESENTING AN
INTEREST IN THE NOTES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND
CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY
DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(B)(2) OF
REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY
SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY
NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION
THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT.  DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE
PERIOD, BENEFICIAL OWNERSHIP IN THIS REGULATION S TEMPORARY GLOBAL NOTE MAY ONLY
BE SOLD, PLEDGED OR TRANSFERRED THROUGH EUROCLEAR SYSTEM OR CLEARSTREAM
LUXEMBOURG, A SOCIETE ANONYME AND ONLY (1) TO THE COMPANY, (2) WITHIN
THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (3) OUTSIDE
THE UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, IN EACH OF THE CASES (1) THROUGH (4) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
AND OTHER JURISDICTIONS.  HOLDERS OF
INTERESTS IN THIS REGULATION S TEMPORARY GLOBAL NOTE WILL NOTIFY ANY PURCHASER
OF THIS NOTE OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN
APPLICABLE.

 

BENEFICIAL INTERESTS IN THIS REGULATION S TEMPORARY GLOBAL NOTE MAY BE
EXCHANGED FOR INTERESTS IN A RESTRICTED GLOBAL NOTE ONLY IF (1) SUCH
EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE NOTES IN COMPLIANCE WITH
RULE 144A, AND (2) THE TRANSFEROR OF THE REGULATION S TEMPORARY GLOBAL
NOTE FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED
TO THIS CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL NOTE IS BEING
TRANSFERRED (A) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES TO BE A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A, (B) TO A
PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A AND (C) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED
STATES AND OTHER JURISDICTIONS.

 

BENEFICIAL INTERESTS IN A GLOBAL TRANSFER RESTRICTED NOTE MAY BE
TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN THE FORM OF AN INTEREST IN
THE REGULATION S GLOBAL NOTE, WHETHER BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY
DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR FIRST DELIVERS TO THE
TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE)
TO THE EFFECT THAT IF SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE 903
OR 904 OF REGULATION S OR RULE 144 (IF AVAILABLE) AND THAT, IF SUCH
TRANSFER OCCURS PRIOR TO THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE
PERIOD, THE INTEREST TRANSFERRED WILL BE HELD IMMEDIATELY THEREAFTER THROUGH
EUROCLEAR SYSTEM OR CLEARSTREAM LUXEMBOURG, A SOCIETE ANONYME.”

 

(g) Cancellation and/or
Adjustment of Global Notes.  At such time as all beneficial interests in a
particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or cancelled in whole and not in
part, each such Global Note shall be returned to or retained and 

 

22

 

cancelled by the Trustee in accordance with Section 2.11
hereof.  At any time prior to such
cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Note or for Definitive Notes, the
aggregate principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note, the aggregate principal amount of such other Global
Note shall be increased accordingly and an endorsement shall be made on such
Global Note by the Trustee or by the Depositary at the direction of the Trustee
to reflect such increase.

 

(h) General Provisions
Relating to Transfers and Exchanges.

 

(i)    No service charge shall be
made to a holder of a beneficial interest in a Global Note or to a Holder of a
Definitive Note for any registration of transfer or exchange, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such
transfer taxes or similar governmental charge payable upon exchange or transfer
pursuant to Sections 2.10, 3.06 and 9.05 hereof).

 

(ii)   All Global Notes and
Definitive Notes issued upon any registration of transfer or exchange of Global
Notes or Definitive Notes shall be the valid obligations of the Company,
evidencing the same debt as the Global Notes or Definitive Notes surrendered
upon such registration of transfer or exchange and shall be entitled to all of
the benefits of this Indenture equally and proportionately with all other Notes
duly issued hereunder.

 

(iii)  Neither the Registrar nor
the Company shall be required (A) to issue, to register the transfer of or
to exchange any Notes during a period beginning at the opening of business 15
days before the day of any selection of Notes for redemption under Section 3.02
hereof and ending at the close of business on the date of selection, (B) to
register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part or (C) to register the transfer of or to exchange a Note between a
record date (including a Regular Record Date) and the next succeeding Interest
Payment Date.

 

(iv)  Prior to due presentment for
the registration of transfer of any Note, the Trustee, any Agent and the
Company may deem and treat the Person in whose name any Note is registered as
the absolute owner of such Note for the purpose of receiving payment of
principal of, premium, if any, and interest on such Note and for all other
purposes, in each case regardless of any notice to the contrary.

 

(v)   All certifications,
certificates and Opinions of Counsel required to be submitted to the Registrar
pursuant to this Section 2.06 to effect a registration of transfer or
exchange may be submitted by facsimile.

 

(vi)  The Trustee is hereby
authorized and directed to enter into a letter of representation with the
Depositary in the form provided by the Company and to act in accordance with
such letter.

 

Section 2.07.                Replacement
Notes.

 

If
any mutilated Note is surrendered to the Trustee or the Company and the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, the Company shall issue and, upon receipt of an Authentication Order in
accordance with Section 2.02 hereof, the Trustee shall authenticate a
replacement Note.  If required by the
Trustee or the Company, the Holder of such Note shall provide an indemnity bond
that is sufficient, in the judgment of the Trustee or the Company, to protect
the Company as determined for itself, the Trustee as determined for itself, any
Agent as determined for itself and any authenticating agent from any loss that
any of them may suffer in connection with such replacement.  If required by the Company, such Holder shall
reimburse the Company for its reasonable expenses in connection with such
replacement.

 

23

 

Every
replacement Note issued in accordance with this Section 2.07 shall be the
valid obligation of the Company, evidencing the same debt as the destroyed,
lost or stolen Note, and shall be entitled to all of the benefits of this
Indenture equally and proportionately with all other Notes duly issued
hereunder.

 

Section 2.08.                Outstanding
Notes.

 

(a) The Notes outstanding at any
time shall be the entire principal amount of Notes represented by all of the
Global Notes and Definitive Notes authenticated by the Trustee except for those
cancelled by it, those delivered to it for cancellation, those subject to
reductions in beneficial interests effected by the Trustee in accordance with Section 2.06
hereof, and those described in this Section 2.08 as not outstanding.  Except as set forth in Section 2.09
hereof, a Note shall not cease to be outstanding because the Company or an
Affiliate of the Company holds the Note.

 

(b) If a Note is replaced
pursuant to Section 2.07 hereof, it shall cease to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced note is held by
a bona fide purchaser.

 

(c) If the principal amount of
any Note is considered paid under Section 4.01 hereof, it shall cease to
be outstanding and interest on it shall cease to accrue.

 

(d) If the Paying Agent (other
than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a
redemption date or a maturity date, funds sufficient to pay Notes payable on
that date, then on and after that date such Notes shall be deemed to be no
longer outstanding and shall cease to accrue interest.

 

Section 2.09.                Treasury
Notes.

 

In
determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Company, or
by any Affiliate of the Company, shall be considered as though not outstanding,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes that
the Trustee knows are so owned shall be so disregarded.

 

Section 2.10.                Temporary
Notes.

 

Until
certificates representing Notes are ready for delivery, the Company may prepare
and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate temporary Notes.  Temporary Notes shall be substantially in the
form of Definitive Notes but may have variations that the Company considers
appropriate for temporary Notes and as shall be reasonably acceptable to the
Trustee.  Without unreasonable delay, the
Company shall prepare and the Trustee shall authenticate Global Notes or
Definitive Notes in exchange for temporary Notes, as applicable.  After preparation of Definitive Notes, the
Temporary Note will be exchangeable for Definitive Notes upon surrender of the
Temporary Notes.

 

Holders
of temporary Notes shall be entitled to all of the benefits of this Indenture
equally and proportionately with all other Notes duly issued hereunder.

 

Section 2.11.                Cancellation.

 

The
Company at any time may deliver Notes to the Trustee for cancellation.  The Registrar and Paying Agent shall forward
to the Trustee any Notes surrendered to them for registration of transfer,
exchange or payment.  Upon sole direction
of the Company, the Trustee and no one else shall cancel all Notes surrendered
for registration of transfer, exchange, payment, replacement or cancellation
and shall destroy cancelled Notes (subject to the record retention requirements
of the Exchange Act or other applicable laws). 
Certification of the destruction of all cancelled Notes shall be
delivered to the Company from time to time upon request.  The Company may not issue new Notes to
replace Notes that they have paid or that have been delivered to the Trustee
for cancellation.

 

24

 

Section 2.12.                Payment
of Interest; Defaulted Interest.

 

If
the Company defaults in a payment of interest on the Notes, it shall pay the
defaulted interest in any lawful manner plus, to the extent lawful, interest
payable on the defaulted interest, to the Persons who are Holders on a
subsequent special record date, in each case at the rate provided in the Notes
and in Section 4.01 hereof. The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note
and the date of the proposed payment. The Company shall fix or cause to be
fixed each such special record date and payment date; provided
that no such special record date shall be less than 10 days prior to the
related Interest Payment Date for such defaulted interest. At least 15 days
before the special record date, the Company (or, upon the written request of
the Company, the Trustee in the name and at the expense of the Company) shall
mail or cause to be mailed to Holders a notice that states the special record
date, the related Interest Payment Date and the amount of such interest to be
paid.

 

Section 2.13.                CUSIP
or ISIN Numbers.

 

The
Company in issuing the Notes may use “CUSIP” and/or “ISIN” numbers (if then
generally in use), and, if so, the Trustee shall use “CUSIP” and/or “ISIN”
numbers in notices of redemption as a convenience to Holders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Notes or as contained in any notice of a redemption and that reliance
may be placed only on the other identification numbers printed on the Notes,
and any such redemption shall not be affected by any defect in or omission of
such numbers.  The Company shall promptly
notify the Trustee of any change in the “CUSIP” and/or “ISIN” numbers.

 

Section 2.14.                Issuance
of Additional Notes.

 

The
Company shall be entitled, subject to its compliance with Section 4.09
hereof, to issue Additional Notes under this Indenture which shall have
identical terms as the Initial Notes issued on the date hereof, other than with
respect to the date of issuance and issue price.  The Initial Notes issued on the date hereof
and any Additional Notes shall be treated as a single class for all purposes
under this Indenture, including directions, waivers, amendments, consents and
redemptions.

 

With
respect to any Additional Notes, the Company shall set forth in a Board
Resolution and an Officer’s Certificate, a copy of each of which shall be
delivered to the Trustee, the following information:

 

(a) the aggregate principal
amount of such Additional Notes to be authenticated and delivered pursuant to
this Indenture;

 

(b) the issue price, the issue
date and the CUSIP and/or ISIN number of such Additional Notes; provided, however, that no Additional Notes may be issued at
a price that would cause such Additional Notes to have “original issue discount”
within the meaning of Section 1273 of the Code, other than a de minimis original issue discount within the meaning of Section 1273
of the Code; and

 

(c) whether such Additional
Notes shall be subject to the restrictions on transfer set forth in Section 2.06
hereof relating to Restricted Global Notes and Restricted Definitive Notes.

 

Section 2.15.                Record
Date.

 

The
record date for purposes of determining the identity of Holders of Notes
entitled to vote or consent to any action by vote or consent or permitted under
this Indenture shall be determined as provided for in TIA Section 316(c).

 

25

 

ARTICLE 3.

 

REDEMPTION AND PREPAYMENT

 

Section 3.01.                Notices
to Trustee.

 

If
the Company elects to redeem Notes pursuant to the optional redemption
provisions of Section 3.07 hereof, the Company shall furnish to the
Trustee, at least 35 days but not more than 60 days before a redemption
date (or such shorter period as allowed by the Trustee), an Officer’s
Certificate setting forth (a) the applicable section of this Indenture
pursuant to which the redemption shall occur, (b) the redemption date, (c) the
principal amount of Notes to be redeemed and (d) the redemption price.

 

Section 3.02.                Selection
of Notes to Be Redeemed.

 

If
less than all of the Notes are to be redeemed at any time, the Trustee shall
select the Notes to be redeemed among the Holders of the Notes in compliance
with the requirements of the principal national securities exchange, if any, on
which the Notes are listed or, if the Notes are not so listed, on a pro rata basis, by lot or in accordance with any other
method the Trustee deems fair and appropriate. 
In the event of partial redemption by lot, the particular Notes to be
redeemed shall be selected, unless otherwise provided herein, not less than 30
nor more than 60 days prior to the redemption date by the Trustee from the
outstanding Notes not previously called for redemption.

 

The
Trustee shall promptly notify the Company in writing of the Notes selected for
redemption and, in the case of any Note selected for partial redemption, the
principal amount thereof to be redeemed. 
Notes and portions of Notes selected shall be in amounts of $1,000 or
integral multiples thereof; except that if all of the Notes of a Holder are to
be redeemed, the entire outstanding amount of Notes held by such Holder, even
if not an integral multiple of $1,000, shall be redeemed.  Except as
provided in the preceding sentence, provisions of this Indenture that apply to
Notes called for redemption also apply to portions of Notes called for
redemption.

 

Section 3.03.                Notice
of Redemption.

 

At
least 30 days but not more than 60 days prior to a redemption date,
the Company shall mail or cause to be mailed, by first class mail, a notice of
redemption to each Holder whose Notes are to be redeemed at such Holder’s
registered address appearing in the Security Register.

 

The
notice shall identify the Notes to be redeemed and shall state:

 

(a) the redemption date;

 

(b) the appropriate method for
calculation of the redemption price, but need not include the redemption price
itself; the actual redemption price shall be set forth in an Officer’s
Certificate delivered to the Trustee no later than two (2) Business Days
prior to the redemption date;

 

(c) if any Note is being
redeemed in part, the portion of the principal amount of such Note to be
redeemed and that, after the redemption date upon surrender of such Note, if
applicable, a new Note or Notes in principal amount equal to the unredeemed
portion shall be issued upon cancellation of the original Note;

 

(d) the name and address of the
Paying Agent;

 

(e) that Notes called for
redemption must be surrendered to the Paying Agent to collect the redemption
price;

 

(f)  that, unless the Company
defaults in making such redemption payment, interest on Notes called for
redemption ceases to accrue on and after the redemption date;

 

26

 

(g) the applicable section of
this Indenture pursuant to which the Notes called for redemption are being
redeemed; and

 

(h) that no representation is
made as to the correctness of the CUSIP and/or ISIN numbers, if any, listed in
such notice or printed on the Notes.

 

At
the Company’s request, the Trustee shall give the notice of redemption in the
Company’s names and at its expense; provided, however,
that the Company shall have delivered to the Trustee, at least 45 days (or such
shorter period allowed by the Trustee), prior to the redemption date, an
Officer’s Certificate requesting that the Trustee give such notice (in the name
and at the expense of the Company) and setting forth the information to be
stated in such notice as provided in this Section 3.03.

 

Section 3.04.                Effect
of Notice of Redemption.

 

Once
notice of redemption is mailed in accordance with Section 3.03 hereof,
Notes called for redemption shall become irrevocably due and payable on the
redemption date at the redemption price. 
A notice of redemption may not be conditional.

 

Section 3.05.                Deposit
of Redemption Price.

 

On
or prior to 1:00 p.m. Eastern time on the Business Day prior to any
redemption date, the Company shall deposit with the Trustee or with the Paying
Agent money sufficient to pay the redemption price of and, if applicable,
accrued and unpaid interest on all Notes to be redeemed on that date.  The Trustee or the Paying Agent shall
promptly, and in any event within two (2) Business Days after the
redemption date, return to the Company any money deposited with the Trustee or
the Paying Agent by the Company in excess of the amounts necessary to pay the
redemption price of, and accrued and unpaid interest, if any, on, all Notes to
be redeemed.

 

If
the Company complies with the provisions of the preceding paragraph, on and after
the redemption date, interest shall cease to accrue on the Notes or the
portions of Notes called for redemption in accordance with Section 2.08(d) hereof,
whether or not such Notes are presented for payment.  If a Note is redeemed on or after a Regular
Record Date but on or prior to the related Interest Payment Date, then any
accrued and unpaid interest, if any, shall be paid to the Person in whose name
such Note was registered at the close of business on such Regular Record Date.  If any Note called for redemption shall not
be so paid upon surrender for redemption because of the failure of the Company
to comply with the preceding paragraph, interest shall be paid on the unpaid
principal from the redemption date until such principal is paid, and to the extent
lawful on any interest not paid on such unpaid principal, in each case at the
rate provided in the Notes and in Section 4.01 hereof.

 

Section 3.06.                Notes
Redeemed in Part.

 

Upon
surrender of a Note that is redeemed in part, the Company shall issue and, upon
receipt of an authentication order in accordance with Section 2.02 hereof,
the Trustee shall authenticate for the Holder at the expense of the Company a
new Note equal in principal amount to the unredeemed portion of the Note
surrendered.

 

Section 3.07.                Optional
Redemption.

 

(a) At any time prior to May 1,
2013, the Company may redeem all or any portion of the Notes, at once or over
time, after giving the notice required pursuant to Section 3.03 hereof, at
a redemption price equal to the Make-Whole Price.  Any notice to the Holders of Notes of a
redemption pursuant to this Section 3.07(a) shall include the
calculation of the redemption price, but need not include the redemption price
itself.  The actual redemption price,
calculated as described above, shall be set forth in an Officer’s Certificate
delivered to the Trustee no later than two Business Days prior to the
redemption date.

 

(b) On or after May 1,
2013, the Company may redeem all or any portion of the Notes, at once or over
time, after giving the notice required pursuant to Section 3.03 hereof, at
the redemption prices set forth below. 
The Notes will be redeemable at the redemption prices (expressed as
percentages of principal amount of the Notes to 

 

27

 

be redeemed) plus accrued and unpaid interest
thereon to the applicable redemption date, subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
Interest Payment Date, if redeemed during the twelve-month period beginning on
the dates indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  May 1, 2013

  	
   

  	
  103.375

  	
  %

  
	
  May 1, 2014

  	
   

  	
  100.000

  	
  %

  

 

Any
prepayment pursuant to this Section 3.07 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 hereof.

 

Section 3.08.                Mandatory
Redemption.

 

The
Company shall not be required to make mandatory redemption or sinking fund
payments with respect to, or offer to purchase, the Notes.

 

ARTICLE 4.

 

COVENANTS

 

Section 4.01.                Payment
of Principal, Premium and Interest.

 

The
Company covenants and agrees for the benefit of the Holders of the Notes that
it will duly and punctually pay the principal of and any premium and interest
on the Notes in accordance with the terms of the Notes and this Indenture.  Principal, premium, if any, and interest
shall be considered paid on the date due if the Paying Agent, if other than the
Company or a Subsidiary thereof, holds as of 1:00 p.m. Eastern Time on the
due date money deposited by the Company in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, and
interest then due.  Such Paying Agent
shall return to the Company promptly, and in any event, no later than five (5) Business
Days following the date of payment, any money (including accrued interest) that
exceeds such amount of principal, premium, if any, and interest paid on the
Notes.  If a payment date is a Legal
Holiday at a place of payment, payment may be made at that place on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

 

Interest
shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Section 4.02.                Maintenance
of Office or Agency.

 

(a) The Company shall maintain
in the United States, an office or agency (which may be an office or drop
facility of the Trustee or an affiliate of the Trustee, Registrar or
co-registrar) where Notes may be presented or surrendered for registration of
transfer or for exchange and where notices and demands to or upon the Company
in respect of the Notes and this Indenture may be served.  The Company shall 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 Company 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 Company hereby
appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

 

(b) The Company may also from
time to time designate one or more other offices or agencies where the Notes
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 Company of its obligation to
maintain an office or agency for the Notes for such purposes.  The Company shall 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.

 

28

 

(c) The Company hereby
designates the Corporate Trust Office of the Trustee, as one such office, drop
facility or agency of the Company in accordance with Section 2.03 hereof.

 

Section 4.03.                Reporting.

 

So long as the Notes are outstanding, the Company will provide:

 

(a)  not later than 105 days after the end of each fiscal
year of the Company, audited consolidated financial statements of the Company,
including consolidated balance sheets as of the end of such year and the end of
the preceding year and the related audited consolidated statements of income
and of cash flows for each year in the three year period then ended, reported
on by an independent registered public accounting firm of nationally recognized
standing;

 

(b)  not later than 60 days after the end of each of the
first three quarterly periods of each fiscal year of the Company, unaudited
consolidated financial statements of the Company, including a balance sheet as
at the end of such quarter and the related unaudited consolidated statements of
income and of cash flows for such quarter and the portion of the fiscal year
through the end of such quarter, setting forth in each case in comparative form
the figures for the previous year; and

 

(c)  with each delivery of the financial statements specified in
clauses (a) and (b), a corresponding discussion of the statements of
income included therein and the Company’s cash position.

 

All such financial statements shall be prepared in accordance with
GAAP; provided that the financial statements specified in clause (b) need
not contain footnotes. The information specified in clauses (a), (b) and
(c) is herein referred to as the “Required Information.”

 

The Company may provide the Required Information by (1) filing or
furnishing the Required Information with the Commission (submitted either by
the Company or any direct or indirect parent of the Company) or (2) both
(a) posting the Required Information on the website of the Company or any
direct or indirect parent of the Company and (b) providing the Required
Information to the Trustee.

 

In addition, for so long as any Notes are “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act, during
any period in which the Company in not subject to or in voluntary compliance
with Section 13 or 15(d) of the Exchange Act, the Company will furnish
to the holders of the notes and to prospective investors, upon their request,
the information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act.

 

Section 4.04.                Compliance
Certificate.

 

The Company will deliver to
the Trustee, within 120 days after the end of each fiscal year of the Company
ending after the date hereof, an Officer’s Certificate, stating whether or not
to the best knowledge of the signers thereof the Company is in 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 Company shall be in default, specifying all
such defaults and the nature and status thereof of which it may have knowledge.

 

Section 4.05.                Payment
of Taxes and Other Claims.

 

The
Company will pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (l) all taxes, assessments and governmental
charges levied or imposed upon the Company or any Significant Subsidiary or
upon the income, profits or property of the Company or any Significant
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 Company
or any Significant Subsidiary; provided, however,
that the Company 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.

 

29

 

Section 4.06.                Existence.

 

Subject
to Article 5, the Company 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 Company shall not be required to preserve any such right or franchise
if the Board of Directors shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and that the
loss thereof is not disadvantageous in any material respect to the Holders.

 

Section 4.07.                Maintenance
of Properties

 

The
Company will cause all material properties used or useful in the conduct of its
business or the business of any Significant 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 Company 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 Company from (i) discontinuing the operation or maintenance of
any of such properties if such discontinuance is, in the judgment of the
Company, desirable in the conduct of its business or the business of any
Significant Subsidiary and not disadvantageous in any material respect to the
Holders or (ii) selling any properties or taking any action in accordance
with Article 5.

 

Section 4.08.                Incurrence
of Additional Debt and Issuance of Capital Stock.

 

(a) The Company and its
consolidated Subsidiaries may not Incur any Debt if, after giving effect to the
Incurrence of such Debt, the Ratio Calculation is less than 1.7 to 1.

 

(b) Notwithstanding paragraph (a) above,
the Company and its consolidated Subsidiaries may Incur the following
additional Debt without regard to paragraph (a) above (although the
additional Debt so incurred will be included in the determination of the
Consolidated Coverage Ratio thereafter):

 

(i)    additional Debt securities,
not to exceed an aggregate issue price of $150,000,000;

 

(ii)   intercompany Debt
(representing Debt to which the only parties are the Company and any of its
consolidated Subsidiaries (but only so long as such Debt is held solely by any
of the Company and its consolidated Subsidiaries));

 

(iii)  any drawings or redrawings
under any lines of credit, provided,
however, that the maximum amount that may be drawn under all lines
of credit pursuant to this clause (c) may not at any time exceed
$200,000,000;

 

(iv)  third party Debt of a
Subsidiary, including Debt of a Subsidiary that carries a Company guarantee of
repayment, directly relating to the development of projects or the expansion,
renovation or improvement of existing properties;

 

(v)   third party Debt of a
Subsidiary directly relating to the acquisition of assets;

 

(vi)  reimbursement obligations
under letters of credit, bankers’ acceptances or similar facilities, provided that at the time of incurring
any additional obligations pursuant to this clause (g) the amount of
all such obligations, whether or not currently due, aggregate at any time less
than 5% of Consolidated Net Tangible Assets at such date;

 

(vii) Debt that by its terms is
subordinate in right of payment to the other Debt of the Company, provided, however, the aggregate issue
price of such subordinated Debt may not at any time exceed $100,000,000;

 

(viii) Attributable Debt;
and

 

30

 

(ix)   in addition to Debt referred
to in clauses (i) through (viii) above, Debt in the aggregate
principal amount of $50,000,000 that is to be used only for working capital
purposes.

 

(c) In addition to the
limitations in paragraph (a) above, the Company will not, and will not
permit any Subsidiary (as to which the Company owns, directly or indirectly,
more than 50% of the voting stock therein) to, incur any Debt if, immediately
after giving effect to the incurrence of such additional Debt, the aggregate
principal amount of outstanding Total Debt would be greater than 65% of the sum
of:

 

(i)    the Gross Asset Value as of
the end of the fiscal quarter prior to the incurrence of such additional Debt, plus

 

(ii)   any increase in the Gross
Asset Value resulting from any acquisition completed after the end of such
quarter, including, without limitation, any pro forma increase from the
application of the proceeds of such additional Debt, less

 

(iii)  any decrease in the Gross
Asset Value resulting from any disposition completed after the end of such
quarter.

 

(d) In addition to the
limitations in paragraphs (a) and (c) above, the Company will not,
and will not permit any Subsidiary (as to which the Company owns, directly or
indirectly, more than 50% of the voting stock therein) to, incur any Secured
Debt if, immediately after giving effect to the incurrence of such additional
Secured Debt, the aggregate principal amount of all outstanding Secured Debt
would be greater than 50% of the sum of:

 

(i)    the Gross Asset Value as of
the end of the fiscal quarter prior to the incurrence of such additional
Secured Debt, plus

 

(ii)   any increase in the Gross
Asset Value resulting from any acquisition completed after the end of such
quarter, including, without limitation, any pro forma increase from the
application of the proceeds of such additional Secured Debt, less

 

(iii)  any decrease in the Gross
Asset Value resulting from any disposition completed after the end of such
quarter.

 

(e) Notwithstanding paragraphs
(a), (c) or (d) above, the Company and its consolidated Subsidiaries
may Incur additional Debt consisting of refinancings, renewals, refundings or
extensions of any Debt, in any case in an amount not to exceed the principal
amount of the Debt so refinanced plus any prepayment premium or accrued
interest, provided that

 

(i)    such refinancing Debt is
either:

 

(A)  Debt of the Company that
ranks equally with or junior to the Debt being refinanced,

 

(B)   Debt of a Subsidiary that
the Company or another Subsidiary guarantees, or

 

(C)   Debt of a Subsidiary; and

 

(ii)   such refinancing Debt either
has a weighted average life equal to or longer than the remaining weighted
average life of the Debt being refinanced or has a minimum term of five years;

 

31

 

Section 4.09.                Limitation
on Sale/Leaseback Transactions.

 

The Company will not, nor will it permit any Restricted Subsidiary to,
enter into any arrangement with any bank, insurance company or other lender or
investor (not including the Company or any consolidated Subsidiary) or to which
any such lender or investor is a party, providing for the leasing by the
Company or any such Restricted Subsidiary for a period, including renewals, in
excess of three years, of any Principal Property owned by the Company or such
Restricted Subsidiary, which has been or is to be sold or transferred more than
one year after either the acquisition thereof or the completion of construction
and commencement of full operation thereof by the Company or any such
Restricted Subsidiary, to such lender or investor or to any Person to whom
funds have been or are to be advanced by such lender or investor on the
security of such Principal Property (herein referred to as a “Sale/Leaseback Transaction”) unless
(A) the aggregate amount of Attributable Debt for the proposed and all
existing Sale/Leaseback Transactions is less than 10% of Consolidated Net
Tangible Assets and (B) if the Ratio Calculation is less than 1.7 to 1
after giving effect to the proposed Sale/Leaseback Transaction, the Company and
its Subsidiaries, within 270 days after the sale or transfer shall have
been made by the Company or by any such Restricted Subsidiary, must apply an
amount equal to the net proceeds of the sale of the Principal Property sold and
leased back pursuant to such arrangement to either (or a combination of)
(x) the purchase of property, facilities or equipment (other than the
property, facilities or equipment involved in such Sale/Leaseback Transaction)
or (y) the retirement of Debt of the Company or a Restricted Subsidiary,
including the notes, which either has an initial term of greater than
12 months or is a bona fide acquisition loan or a construction or bridge
loan entered in connection with a construction project or other real estate
development.

 

ARTICLE 5.

 

CONSOLIDATION, MERGER,
CONVEYANCE, TRANSFER OR LEASE

 

Section 5.01.                Company
May Consolidate, Etc. Only on Certain Terms.

 

The
Company shall not consolidate with or merge into any other Person or sell,
convey or lease all of substantially all of its Assets to any other Person, and
the Company shall not permit any Person to consolidate with or merge into the
Company, unless:

 

(a) the Person (if other than
the Company) formed by such consolidation or into which the Company is merged
or which acquires or leases substantially all of the Assets of the Company,
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 reasonably
satisfactory to the Trustee, the due and punctual payment of the principal of
and any premium and interest on all the Notes and the performance or observance
of every covenant of this Indenture on the part of the Company to be performed
or observed;

 

(b) immediately after giving
effect to such consolidation or merger, or such sale, conveyance or lease, 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;

 

(c) the Company or such
successor entity shall, immediately after giving effect to such consolidation
or merger, or such sale, conveyance or lease, have a Ratio Calculation of 1.7
to 1 or more;

 

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

 

(e) the Company has delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating
that such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is 

 

32

 

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 5.02.                Successor
Substituted.

 

Upon any consolidation of
the Company with, or merger of the Company into, any other Person or any
conveyance, transfer or lease of all or substantially all of the Assets of the
Company in accordance with Section 5.01, the successor Person formed by
such consolidation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor Person
shall be relieved of all obligations and covenants under this Indenture and the
Notes.

 

ARTICLE 6.

 

DEFAULTS AND REMEDIES

 

Section 6.01.                Events
of Default.

 

“Event of Default,” wherever used
herein with respect to the Notes, 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, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):

 

(a) default in the payment of
the principal of (or premium, if any, on) any Note when due; or

 

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

 

(c) default in the performance,
or breach, of any covenant or warranty of the Company in this Indenture (other
than a covenant or warranty default which is specifically dealt with) 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 Company by the Trustee or
to the Company and the Trustee by the Holders of at least 25% in principal
amount of the outstanding Notes 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

 

(d) a default under any bond,
debenture, note, mortgage, indenture or other evidence of indebtedness for
borrowed money of the Company (or by any Subsidiary, the repayment of which the
Company has guaranteed or for which the Company is directly responsible or
liable as obligor or guarantor) having an aggregate principal amount
outstanding of at least $10,000,000, whether such indebtedness now exists or
shall hereafter be created, which default shall have resulted in such
indebtedness being declared due and payable prior to the date on which it would
otherwise have become due and payable, without such acceleration having been
rescinded or annulled, within a period of 10 days after there shall have been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of
the outstanding Notes a written notice specifying such default and requiring
the Company to cause such acceleration to be rescinded or annulled and stating
that such notice is a “Notice of Default” hereunder; or

 

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

 

33

 

(f)  the commencement by the
Company 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
the Company to the entry of a decree or order for relief in respect of the
Company 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 the
Company, or the filing by the Company of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State law, or
the consent by the Company to the filing of such petition or to the appointment
of or taking possession by a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any
substantial part of its property, or the making by the Company of an assignment
for the benefit of creditors, or the admission by the Company in writing of its
inability to pay its debts generally as they become due, or the taking of
corporate action by the Company in furtherance of any such action; or

 

(g) any other Event of Default
provided with respect to Notes.

 

Upon
receipt by the Trustee of any Notice of Default pursuant to this Section 6.01
with respect to the Notes, a record date shall automatically and without any
other action by any Person be set for the purpose of determining the Holders of
outstanding Notes entitled to join in such Notice of Default, which record date
shall be the close of business on the day the Trustee receives such Notice of
Default.  The Holders of outstanding
Notes on such record date (or their duly appointed agents), and only such
Persons, shall be entitled to join in such Notice of Default, whether or not
such Holders remain Holders after such record date; provided that, unless such
Notice of Default shall have become effective by virtue of Holders of the
requisite principal amount of outstanding Notes on such record date (or their
duly appointed agents) having joined therein on or prior to the 90th day after
such record date, such Notice of Default shall automatically and without any
action by any Person be cancelled and of no further effect.  Nothing in this paragraph shall prevent a
Holder (or a duly appointed agent thereof) from giving, before or after the
expiration of such 90-day period, a Notice of Default contrary to or different
from, or, after the expiration of such period, identical to, a Notice of
Default that has been cancelled pursuant to the proviso to the preceding
sentence, in which event a new record date in respect thereof shall be set
pursuant to this paragraph.

 

Section 6.02.                Acceleration.

 

If
an Event of Default with respect to Notes at the time outstanding occurs and is
continuing, then in every such case the Trustee or the Holders of not less than
25% in principal amount of the outstanding Notes may declare the principal
amount of all of the Notes to be due and payable immediately, by a notice in
writing to the Company (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.

 

At
any time after such a declaration of acceleration with respect to Notes 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 Notes, by written
notice to the Company and the Trustee, may rescind and annul such declaration
and its consequences if:

 

(a) the Company has paid or
deposited with the Trustee a sum sufficient to pay:

 

(i)    all overdue interest on all
Notes,

 

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

 

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

 

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

 

34

 

and

 

(b) all Events of Default with
respect to Notes, other than the non-payment of the principal of Notes which
have become due solely by such declaration of acceleration, have been cured or
waived as provided in Section 6.13.

 

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

 

Upon
receipt by the Trustee of any declaration of acceleration, or any rescission
and annulment of any such declaration, pursuant to this Section 6.02, a
record date shall automatically and without any other action by any Person be
set for the purpose of determining the Holders of outstanding Notes entitled to
join in such declaration, or rescission and annulment, as the case may be,
which record date shall be the close of business on the day the Trustee
receives such declaration, or rescission and annulment, as the case may
be.  The Holders of outstanding Notes on
such record date (or their duly appointed agents), and only such Persons, shall
be entitled to join in such declaration, or rescission and annulment, as the
case may be, whether or not such Holders remain Holders after such record date;
provided that, unless such declaration, or rescission and annulment, as the
case may be, shall have become effective by virtue of Holders of the requisite
principal amount of outstanding Notes on such record date (or their duly
appointed agents) having joined therein on or prior to the 90th day after such
record date, such declaration, or rescission and annulment, as the case may be,
shall automatically and without any action by any Person be cancelled and of no
further effect.  Nothing in this
paragraph shall prevent a Holder (or a duly appointed agent thereof) from
giving, before or after the expiration of such 90-day period, a declaration of
acceleration, or a rescission and annulment of any such declaration, contrary
to or different from, or, after the expiration of such period, identical to, a
declaration, or rescission and annulment, as the case may be, that has been
cancelled pursuant to the proviso to the preceding sentence, in which event a
new record date in respect thereof shall be set pursuant to this paragraph.

 

Section 6.03.                Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The
Company covenants that if:

 

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

 

(b) default is made in the
payment of the principal of (or premium, if any, on) any Note at the maturity
thereof,

 

the
Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Notes, the whole amount then due and payable on such Notes 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 Notes, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

If
an Event of Default with respect to Notes occurs and is continuing, the Trustee
may in its discretion proceed to protect and enforce its rights and the rights
of the Holders of Notes 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 6.04.                Trustee
May File Proofs of Claim.

 

In
case of any judicial proceeding relative to the Company (or any other obligor
upon the Notes), 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 TIA 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 

 

35

 

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 7.07.

 

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 Notes 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 6.05.                Trustee
May Enforce Claims Without Possession of Notes.

 

All
rights of action and claims under this Indenture or the Notes may be prosecuted
and enforced by the Trustee without the possession of any of the Notes 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 Notes in respect of which such judgment has been recovered.

 

Section 6.06.                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 Notes and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

 

FIRST:  To the payment of all
amounts due the Trustee under Section 7.07;

 

SECOND:  To the payment of the amounts then due and
unpaid for principal of and any premium and interest on the Notes 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 Notes for principal and any premium and interest, respectively;
and

 

THIRD:
To the Company or as directed by a court of competent jurisdiction.

 

Section 6.07.                Limitation
on Suits.

 

No
Holder of any Note 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:

 

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

 

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

 

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

 

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

 

36

 

(e) 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
Notes;

 

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

 

Notwithstanding
any other provision in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment of the principal
of and any premium and (subject to Section 4.01) interest on such Note on
the Stated Maturity expressed in such Note (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.

 

Section 6.09.                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 Company, 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 6.10.                Rights
and Remedies Cumulative.

 

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 6.11.                Delay
or Omission Not Waiver.

 

No
delay or omission of the Trustee or of any Holder of any Notes 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 6.12.                Control
by Holders.

 

The
Holders of a majority in principal amount of the outstanding Notes 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 Notes of such series, provided that:

 

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

 

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

 

Upon
receipt by the Trustee of any such direction with respect to Notes, a record
date shall automatically and without any other action by any Person be set for
determining the Holders of outstanding Notes 

 

37

 

entitled
to join in such direction, which record date shall be the close of business on
the day the Trustee receives such direction. 
The Holders of outstanding Notes on such record date (or their duly
appointed agents), and only such Persons, shall be entitled to join in such
direction, whether or not such Holders remain Holders after such record date;
provided that, unless such direction shall have become effective by virtue of
Holders of the requisite principal amount of outstanding Notes on such record
date (or their duly appointed agents) having joined therein on or prior to the
90th day after such record date, such direction shall automatically and without
any action by any Person be cancelled and of no further effect.  Nothing in this paragraph shall prevent
Holder (or a duly appointed agent thereof) from giving, before or after the
expiration of such 90-day period, a direction contrary to or different from,
or, after the expiration of such period, identical to, a direction that has
been cancelled pursuant to the proviso to the preceding sentence, in which
event a new record date in respect thereof shall be set pursuant to this
paragraph.

 

Section 6.13.                Waiver
of Past Defaults.

 

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

 

(a) in the payment of the
principal of or any premium or interest on any Note, or

 

(b) in respect of a covenant or
provision hereof which under Article 9 cannot be modified or amended
without the consent of the Holder of each outstanding Note 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 6.14.                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 TIA;
provided that neither this Section nor the TIA shall be deemed to
authorize any court to require such an undertaking or to make such an
assessment in any suit instituted by the Company.

 

Section 6.15.                Waiver
of Usury, Stay or Extension Laws.

 

The
Company covenants (to the extent that they may lawfully do so) that they will
not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any usury, stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the extent that they
may lawfully do so) hereby expressly waives all benefit or advantage of any
such law and covenant that they 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 7.

 

TRUSTEE

 

Section 7.01.                Duties
of Trustee

 

(a) If an Event of Default has
occurred and is continuing, the Trustee shall exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and
skill in its exercise, as a prudent Person would exercise or use under the
circumstances in the conduct of such Person’s own affairs.

 

38

 

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

 

(1)   the duties of the Trustee
shall be determined solely by the express provisions of this Indenture and the
Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

 

(2)   in the absence of bad faith
on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  However, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein).

 

(c) The Trustee may not be
relieved from liabilities for its own gross negligent action, its own gross
negligent failure to act, or its own gross willful misconduct or bad faith,
except that:

 

(1)   this paragraph does not
limit the effect of paragraph (b) of this Section;

 

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

 

(3)   the Trustee shall not be
liable with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section 6.12
hereof.

 

(d)                 Whether or not therein
expressly so provided, every provision of this Indenture that in any way
relates to the Trustee is subject to paragraphs (a), (b) and (c) of
this Section 7.01.

 

(e)                 No provision of this
Indenture shall require the Trustee to expend or risk its own funds or incur
any liability.  The Trustee shall be
under no obligation to exercise any of its rights and powers under this
Indenture at the request of any Holders, unless such Holder shall have offered
to the Trustee security and indemnity satisfactory to it against any loss,
liability or expense.

 

(f)                  The Trustee shall not be
liable for interest on any money received by it except as the Trustee may agree
in writing with the Company.  Money held
in trust by the Trustee need not be segregated from other funds except to the
extent required by law.

 

Section 7.02.                Rights
of Trustee.

 

Subject to TIA Section 315:

 

(a) The Trustee may conclusively
rely upon any document believed by it to be genuine and to have been signed or
presented by the proper Person.  The Trustee need not investigate any fact
or matter stated in any such document.

 

(b) Before the Trustee acts or
refrains from acting, it may require an Officer’s Certificate or an Opinion of
Counsel or both.  The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such Officer’s Certificate or Opinion of Counsel.  The Trustee may consult
with counsel and the written advice of such counsel or any Opinion of Counsel
shall be full and complete authorization and protection from liability in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon.

 

39

 

(c) The Trustee shall not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the rights or
powers conferred upon it by this Indenture.

 

(d) Unless otherwise specifically provided in this Indenture, any
demand, request, direction or notice from the Company shall be sufficient if
signed by an Officer of the Company.

 

(e) 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 or Event of Default is received by a Responsible Officer of the Trustee
at the Corporate Trust Office of the Trustee from the Company or the Holders of
25% in aggregate principal amount of the outstanding Notes, and such notice
references the specific Default or Event of Default, the Notes and this
Indenture.

 

(f)  The Trustee shall not be required to give any bond or surety in
respect of the performance of its power and duties hereunder.

 

(g) The Trustee shall have no duty to inquire as to the performance of
the Company’s covenants herein.

 

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

 

Section 7.03.                Individual
Rights of Trustee.

 

The
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Company or any Affiliate of the
Company with the same rights it would have if it were not Trustee.  However, in the event that the Trustee
acquires any conflicting interest it must eliminate such conflict within 90
days, apply to the Commission for permission to continue as Trustee or
resign.  Any Agent may do the same with
like rights and duties.  The Trustee
shall also be subject to Sections 7.10 and 7.11 hereof.

 

Section 7.04.                Trustee’s
Disclaimer.

 

The
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Company’s use of the proceeds from the Notes or any money
paid to the Company or upon the Company’s direction under any provision of this
Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be
responsible for any statement or recital herein or any statement in the Notes
or any other document in connection with the sale of the Notes or pursuant to
this Indenture other than its certificate of authentication.

 

Section 7.05.                Notice
of Defaults.

 

If
a Default or Event of Default occurs and is continuing and if it is known to
the Trustee, the Trustee shall mail to Holders a notice of the Default or Event
of Default within 90 days after the Trustee has notice thereof.  Except in the case of a Default or Event of
Default in payment of principal of, premium, if any, or interest on any Note,
the Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of the Holders.

 

Section 7.06.                Reports
by Trustee to Holders.

 

Within
60 days after each May 15 beginning with May 15, 2011, and for so
long as Notes remain outstanding, the Trustee shall mail to the Holders  a brief report dated as of such reporting
date that complies with TIA §313(a) (but if no event described in TIA §313(a) has
occurred within the twelve months preceding the reporting date, no report need
be transmitted).  The Trustee also shall comply with TIA §313(b)(2).  The Trustee shall also transmit by mail all
reports as required by TIA §313(c).

 

40

 

A
copy of each report at the time of its mailing to the Holders shall be mailed
to the Company and filed with the Commission and each stock exchange on which
the Notes are listed in accordance with TIA §313(d).  The Company  shall promptly notify the Trustee when the
Notes are listed on any stock exchange and any delisting thereof.

 

Section 7.07.                Compensation
and Indemnity.

 

The
Company shall pay to the Trustee from time to time reasonable compensation for
its acceptance of this Indenture and services hereunder.  The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust.  The Company shall
reimburse the Trustee promptly upon request for all reasonable disbursements,
advances and expenses incurred or made by it in addition to the compensation
for its services.  Such expenses shall
include the reasonable compensation, disbursements and expenses of the Trustee’s
agents and counsel.

 

The
Company shall indemnify the Trustee (in its capacity as Trustee) or any
predecessor Trustee (in its capacity as Trustee) against any and all losses,
claims, damages, penalties, fines, liabilities or expenses, including
incidental and out-of-pocket expenses and reasonable attorneys fees (for
purposes of this Article, “losses”)
incurred by it arising out of or in connection with the acceptance or
administration of its duties under this Indenture, including the costs and
expenses of enforcing this Indenture against the Company (including this Section 7.07)
and defending itself against any claim (whether asserted by the Company or any
Holder or any other Person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder, except to the extent such
losses may be attributable to its gross negligence or bad faith.  The Trustee shall notify the Company promptly
of any claim for which it may seek indemnity.  Failure by the Trustee to
so notify the Company shall not relieve the Company of its obligations under
this Section 7.07, except to the extent the Company has been prejudiced
thereby.  The Company shall defend the
claim, and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel if the
Trustee has been advised by counsel that there may be one or more legal
defenses available to it that are different from or additional to those
available to the Company and in the judgment of such counsel it is advisable
for the Trustee to engage separate counsel, and the Company shall pay the
reasonable fees and expenses of such counsel.  The Company need not pay
for any settlement made without its consent, which consent shall not be
unreasonably withheld.  The Company need
not reimburse any expense or indemnify against any loss incurred by the Trustee
through the Trustee’s own willful misconduct, gross negligence or bad faith.

 

The
obligations of the Company under this Section 7.07 shall survive the
satisfaction and discharge of this Indenture, the resignation or removal of the
Trustee and payment in full of the Notes through the expiration of the
applicable statute of limitations.

 

To
secure the Company’s payment obligations in this Section, the Trustee shall
have a Lien prior to the Notes on all money or property held or collected by
the Trustee, except that held in trust to pay principal, premium, if any, and
interest on particular Notes.  Such Lien
shall survive the satisfaction and discharge of this Indenture.

 

When
the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.01(e) or (f) hereof occurs, the expenses
and the compensation for the services (including the fees and expenses of its
agents and counsel) are intended to constitute expenses of administration under
any Bankruptcy Law.

 

Section 7.08.                Replacement
of Trustee.

 

A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.08.

 

The
Trustee may resign in writing at any time upon 30 days’ prior notice to the
Company and be discharged from the trust hereby created by so notifying the
Company.  The Holders of a majority in
aggregate principal amount of the then outstanding Notes may remove the Trustee
by so notifying the Trustee and the Company in writing.  The Company may remove the Trustee if:

 

41

 

(a) the Trustee fails to comply with Section 7.10 hereof;

 

(b) the Trustee is adjudged bankrupt or insolvent or an order for relief
is entered with respect to the Trustee under any Bankruptcy Law;

 

(c) a custodian or public officer takes charge of the Trustee or its
property; or

 

(d) the Trustee becomes incapable of acting.

 

If
the Trustee resigns or is removed or if a vacancy exists in the office of
Trustee for any reason (the Trustee in such event being referred to herein as
the retiring Trustee), the Company shall promptly appoint a successor
Trustee.  Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount
of the then outstanding Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Company.

 

If
a successor Trustee does not take office within 30 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company, or the
Holders of at least 10% in aggregate principal amount of the then outstanding
Notes may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

 

If
the Trustee, after written request by any Holder who has been a Holder for at
least six months, fails to comply with Section 7.10 hereof, such Holder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

 

A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company.  Thereupon, the resignation or
removal of the retiring Trustee shall become effective, and the successor Trustee
shall have all the rights, powers and duties of the Trustee under this
Indenture.  The successor Trustee shall
mail a notice of its succession to Holders.  Subject to the Lien provided
for in Section 7.07 hereof, the retiring Trustee shall promptly transfer
all property held by it as Trustee to the successor Trustee; provided, however, that
all sums owing to the Trustee hereunder shall have been paid.  Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company’s obligations under Section 7.07
hereof shall continue for the benefit of the retiring Trustee.

 

In
the case of an appointment hereunder of a separate or successor Trustee with
respect to the Notes, the Company, any retiring Trustee and each successor or
separate Trustee with respect to the Notes shall execute and deliver an
Indenture supplemental hereto (1) which shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers,
trusts and duties of any retiring Trustee with respect to the Notes as to which
any such retiring Trustee is not retiring shall continue to be vested in such
retiring Trustee and (2) that 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 Trustee co-trustees of the same trust and that each such
separate, retiring or successor Trustee shall be Trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any such other Trustee.

 

Section 7.09.                Successor
Trustee by Merger, etc.

 

If
the Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation or
banking association, the successor corporation or banking association without
any further act shall, if such successor corporation or banking association is
otherwise eligible hereunder, be the successor Trustee.

 

Section 7.10.                Eligibility;
Disqualification.

 

There
shall at all times be a Trustee hereunder that is a Person organized and doing
business under the laws of the United States of America or of any state thereof
that is authorized under such laws to exercise corporate trustee power, that is
subject to supervision or examination by federal or state authorities and that
has a 

 

42

 

combined
capital and surplus of at least $50.0 million (or a wholly-owned subsidiary of
a bank or trust company, or of a bank holding company, the principal subsidiary
of which is a bank or trust company having a combined capital and surplus of at
least $50.0 million) as set forth in its most recent published annual report of
condition.

 

This
Indenture shall always have a Trustee who satisfies the requirements of TIA
§310(a)(1), (2) and (5).  The
Trustee is subject to TIA §310(b).

 

Section 7.11.                Preferential
Collection of Claims Against Company.

 

The
Trustee is subject to TIA §311(a), excluding any creditor relationship listed
in TIA §311(b).  A Trustee who has
resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

 

ARTICLE 8.

 

LEGAL DEFEASANCE AND COVENANT
DEFEASANCE

 

Section 8.01.                Option
to Effect Legal Defeasance or Covenant Defeasance.

 

The
Company may, at its option and at any time, elect to have either Section 8.02
or 8.03 hereof be applied to all outstanding Notes upon compliance with the
conditions set forth in this Article 8.

 

Section 8.02.                Legal
Defeasance and Discharge.

 

Upon
the Company’s exercise under Section 8.01 of the option applicable to this
Section 8.02, the Company shall, subject to the satisfaction of the
conditions set forth in Section 8.04, be deemed to have been discharged
from its obligations with respect to all outstanding Notes on the date the
conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that
the Company shall be deemed to have paid and discharged the entire Debt
represented by the outstanding Notes, which shall thereafter be deemed to be “outstanding”
only for the purposes of Section 8.05 and the other Sections of this
Indenture referred to in (a) and (b) below, and to have satisfied all
its other obligations under the Notes and this Indenture (and the Trustee, on
demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall
survive until otherwise terminated or discharged hereunder:  (a) the rights of Holders of outstanding
Notes to receive solely from the trust fund described in Section 8.04, and
as more fully set forth in such Section, payments in respect of the principal
of, premium, if any, or interest on such Notes when such payments are due,
(b) the Company’s obligations with respect to such Notes under Article 2
and Sections 4.01 and 4.02, (c) the rights, powers, trusts, duties and
immunities of the Trustee hereunder and the Company’s obligations in connection
therewith and (d) this Article 8. 
If the Company exercises under Section 8.01 the option applicable
to this Section 8.02, subject to the satisfaction of the conditions set
forth in Section 8.04, payment of the Notes may not be accelerated because
of an Event of Default.  Subject to
compliance with this Article 8, the Company may exercise its option under
this Section 8.02 notwithstanding the prior exercise of its option under Section 8.03.

 

Section 8.03.                Covenant
Defeasance.

 

Upon
the Company’s exercise under Section 8.01 of the option applicable to this
Section 8.03, the Company shall, subject to the satisfaction of the
conditions set forth in Section 8.04, be released from its obligations
under the covenants contained in Sections 4.03, 4.05, 4.06, 4.07, 4.08, 4.09,
4.10 and 5.01 hereof and the occurrence of any event specified in clause (c) (with
respect to Sections 4.03, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10 and 5.01 hereof)
or (d) of Section 6.01 shall be deemed not to be or result in an
Event of Default, in each case with respect to the outstanding Notes on and
after the date the conditions set forth in Section 8.04 are satisfied
(hereinafter, “Covenant Defeasance”)
and the Notes shall thereafter be deemed not “outstanding” for the purposes of
any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes).  For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, the Company may
omit to comply with and shall have no liability in respect of any 

 

43

 

term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply shall not constitute a
Default or an Event of Default under Section 6.01, but, except as
specified above, the remainder of this Indenture and such Notes shall be unaffected
thereby.

 

Section 8.04.                Conditions
to Legal or Covenant Defeasance.

 

The
following shall be the conditions to the application of either Section 8.02
or 8.03 to the outstanding Notes.

 

The
Legal Defeasance or Covenant Defeasance may be exercised only if:

 

(a) the Company irrevocably deposits with the Trustee, in trust (the “defeasance trust”), for the benefit
of the Holders, cash in U.S. dollars, non-callable U.S. Government Securities,
or a combination of cash in U.S. dollars and non-callable U.S. Government
Securities, in an amount sufficient, in the opinion of a nationally recognized
firm of independent public accountants, to pay the principal, premium, if any,
and interest on the outstanding Notes on the Stated Maturity or on the next
redemption date, as the case may be, and the Company shall specify whether the
Notes are being defeased to maturity or to such particular redemption date;

 

(b) in the case of Legal Defeasance, the Company shall deliver to the
Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming
that (i) the Company has received from, or there has been published by,
the Internal Revenue Service a ruling or (ii) subsequent to the Issue
Date, there has been a change in the applicable federal income tax law, in either
case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders of the outstanding Notes will not recognize income,
gain or loss for federal income tax purposes as a result of such Legal
Defeasance and will be subject to federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

 

(c) in the case of Covenant Defeasance, the Company shall deliver to the
Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming
that the Holders of the outstanding Notes will not recognize income, gain or
loss for federal income tax purposes as a result of such Covenant Defeasance
and will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;

 

(d) no Event of Default under Section 6.01(e) or (f) shall
have occurred at any time in the period ending on the 91st day after the cash and/or non-callable U.S.
Government Securities have been deposited in the defeasance trust;

 

(e) such Legal Defeasance or Covenant Defeasance shall not result in a
breach or violation of, or constitute a default under, any material agreement or
instrument (other than this Indenture) to which the Company or any Restricted
Subsidiary is a party or by which the Company or any Restricted Subsidiary is
bound;

 

(f)  the Company shall deliver to the Trustee an Officer’s Certificate
stating that the deposit was not made by the Company with the intent of
preferring the Holders over other creditors of the Company with the intent of
defeating, hindering, delaying or defrauding such other creditors; and

 

(g) the Company deliver to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that all conditions precedent relating to the
Legal Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.05.                Deposited
Cash and U.S. Government Securities to be Held in Trust; Other Miscellaneous
Provisions.

 

Subject
to Section 8.06, all cash and non-callable U.S. Government Securities
(including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 

 

44

 

8.05,
the “Trustee”) pursuant to Section 8.04
in respect of the outstanding Notes shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company
acting as Paying Agent) as the Trustee may determine, to the Holders of all
sums due and to become due thereon in respect of principal, premium, if any,
and interest but such cash and securities need not be segregated from other
funds except to the extent required by law.

 

The
Company shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the cash or non-callable U.S. Government
Securities deposited pursuant to Section 8.04 hereof 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 the outstanding Notes.

 

Anything
in this Article 8 to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon the request of the Company
any cash or non-callable U.S. Government Securities held by it as provided in Section 8.04
which, in the opinion of a nationally recognized firm of independent certified
public accountants expressed in a written certification thereof delivered to
the Trustee (which may be the certification delivered under Section 8.04(a)),
are in excess of the amount thereof that would then be required to be deposited
to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.06.                Repayment
to the Company.

 

The
Trustee shall promptly, and in any event, no later than five (5) Business
Days, pay to the Company after written request therefor, any excess money held
with respect to the Notes at such time in excess of amounts required to pay any
of the Company’ Obligations then owing with respect to the Notes.

 

Subject
to any applicable abandoned property law, any cash or non-callable U.S.
Government Securities deposited with the Trustee or any Paying Agent, or then
held by the Company, in trust for the payment of the principal, premium, if
any, or interest on any Note and remaining unclaimed for one year after such
principal, premium, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder shall thereafter, as an unsecured
creditor, look only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such cash and securities, and
all liability of the Company 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
Company cause to be published once, in The New York Times and
The Wall Street Journal (national
edition), notice that such cash and securities remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such notification or publication, any unclaimed balance of such cash
and securities then remaining shall be repaid to the Company.

 

Section 8.07.                Reinstatement.

 

If
the Trustee or Paying Agent is unable to apply any cash or non-callable U.S.
Government Securities in accordance with Section 8.02 or 8.03, as the case
may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application,
then the Company’s obligations under this Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to Section 8.02
or 8.03 until such time as the Trustee or Paying Agent is permitted to apply
all such cash and securities in accordance with Section 8.02 or 8.03, as
the case may be; provided, however, that, if the
Company makes any payment of principal of, premium, if any, or interest on any
Note following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders to receive such payment from the cash
and securities held by the Trustee or Paying Agent.

 

45

 

ARTICLE 9.

 

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01.                Without
Consent of Holders of Notes.

 

Notwithstanding
Section 9.02 of this Indenture, the Company and the Trustee may amend or
supplement this Indenture or the Notes without the consent of any Holder to:

 

(a) cure any ambiguity, manifest error, omission, defect or
inconsistency;

 

(b) provide for the assumption by a surviving Person of the obligations
of the Company under this Indenture;

 

(c) provide for uncertificated Notes in addition to or in place of
certificated Notes (provided that
the uncertificated Notes are issued in registered form for purposes of Section 163(f) of
the Code, or in a manner such that the uncertificated Notes are described in Section 163(f)(2)(B) of
the Code);

 

(d) add guarantees with respect to the Notes;

 

(e) secure the Notes; or

 

(f)  add to the covenants of the Company for the benefit of the Holders
or to surrender any right or power conferred upon the Company.

 

Section 9.02.                With
Consent of Holders of Notes.

 

Except
as provided below in this Section 9.02, the Company and the Trustee may
amend or supplement this Indenture and the Notes with the consent of the
Holders of at least a majority in aggregate principal amount of the Notes,
including Additional Notes, if any, then outstanding voting as a single class
(including consents obtained in connection with a purchase of or tender offer
or exchange offer for the Notes), and, subject to Sections 6.08 and 6.13, any
existing Default or Event of Default (except a continuing Default or Event of
Default in (i) the payment of principal, premium, if any, or interest on
the Notes and (ii) in respect of a covenant or provision which under this
Indenture cannot be modified or amended without the consent of the Holder of
each Note affected by such modification or amendment) or compliance with any
provision of this Indenture or the Notes may be waived with the consent of the
Holders of at least a majority in aggregate principal amount of the Notes,
including Additional Notes, if any, then outstanding voting as a single class
(including consents obtained in connection with a purchase of or tender offer
or exchange offer for the Notes).

 

Without
the consent of each Holder, an amendment or waiver under this Section 9.02
may not (with respect to any Notes held by a non-consenting Holder):

 

(a)           change the stated maturity of the principal of, or any
installment of principal of or interest on the Notes;

 

(b)           reduce the amount of, or any premium or interest on, the
Notes;

 

(c)           change the place or currency of payment of principal of,
or any premium or interest on, the Notes;

 

(d)           impair the right to institute suit for the enforcement of
any payment on or with respect to the Notes;

 

(e)           reduce the percentage in principal amount of Notes, the
consent of whose Holders is required for modification or amendment of this
Indenture;

 

(f)            reduce the percentage in principal amount of Notes
necessary for waiver of certain defaults; or

 

46

 

(g)           modify such provisions with respect to modification and
waiver.

 

The
Holders of a majority in principal amount of Notes may on behalf of the Holders
of all Notes waive any past default under this Indenture, except a default in
the payment of the principal of or premium, if any, or interest on the Notes or
in respect of a provision which under this Indenture cannot be modified or
amended without the consent of each Holder affected.

 

The
Company may, but shall not be obligated to, fix a record date for the purpose
of determining the Persons entitled to consent to any supplemental
indenture.  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 120 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.

 

It
shall not be necessary for the consent of the Holders under this Section 9.02
to approve the particular form of any proposed amendment or waiver, but it
shall be sufficient if such consent approves the substance thereof.

 

After
an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company shall mail to the Holder of each Note affected thereby
to such Holder’s address appearing in the Security Register a notice briefly
describing the amendment, supplement or waiver. 
Any failure of the Company to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
amended or supplemental indenture or waiver.

 

Section 9.03.                Revocation
and Effect of Consents.

 

Until
an amendment, supplement or waiver becomes effective, a consent to it by a
Holder is a continuing consent by the Holder of a Note and every subsequent
Holder of a Note or portion thereof that evidences the same debt as the
consenting Holder’s Note, even if notation of the consent is not made on any
Note.  However, any such Holder or
subsequent Holder may revoke the consent as to its Note or portion thereof if
the Trustee receives written notice of revocation before the Trustee receives
an Officer’s Certificate certifying that the Holders of the requisite principal
amount of Notes have consented (and theretofore not revoked such consent) to
the amendment, supplement or waiver.

 

Section 9.04.                Notation
on or Exchange of Notes.

 

The
Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Note thereafter authenticated.  The Company in exchange for
all Notes may issue and, upon receipt of an Authentication Order in accordance
with Section 2.02 hereof, the Trustee shall authenticate new Notes that
reflect the amendment, supplement or waiver.

 

Failure
to make the appropriate notation or issue a new Note shall not affect the
validity and effect of such amendment, supplement or waiver.

 

Section 9.05.                Trustee
to Sign Amendments, etc.

 

The
Trustee shall sign any amended or supplemental indenture authorized pursuant to
this Article 9 if the amendment or supplement does not adversely affect
the rights, duties, liabilities or immunities of the Trustee.  The Company
may not sign an amendment or supplemental indenture until its board of
directors (or committee serving a similar function) approves it.  In executing any amended or supplemental
indenture, the Trustee shall be entitled to receive and (subject to Section 7.01
hereof) shall be fully protected in relying upon an Officer’s Certificate and
an Opinion of Counsel stating that the execution of such amended or
supplemental indenture is authorized or permitted by this Indenture and that
such amended or supplemental indenture is the legal, valid and 

 

47

 

binding
obligations of the Company enforceable against them in accordance with its
terms, subject to customary exceptions and that such amended or supplemental
indenture complies with the provisions hereof.

 

ARTICLE 10.

 

SATISFACTION AND DISCHARGE

 

Section 10.01.              Satisfaction
and Discharge.

 

This
Indenture shall upon the Company’s request cease to be of further effect
(except as to any surviving rights of transfer or exchange of Notes herein expressly
provided for), and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture,
when:

 

(a) either

 

(1)   all Notes theretofore authenticated and delivered (other than (i) Notes
which have been destroyed, lost or stolen and which have been replaced or paid
as provided in Section 2.07 and (ii) Notes for whose payment money
has theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 2.04) have been delivered to the Trustee for
cancellation; or

 

(2)   all such Notes not theretofore delivered to the Trustee for
cancellation

 

(A)  have become due and payable, or

 

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

 

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

 

and
the Company, in the case of (A), (B) or (C) above, have deposited or
caused to be deposited with the Trustee as trust funds in trust for the purpose
an amount sufficient to pay and discharge the entire indebtedness on such Notes
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 Notes
which have become due and payable) or to the Stated Maturity or redemption
date, as the case may be;

 

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

 

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

 

Notwithstanding the satisfaction and discharge of
this Indenture, the obligations of the Company to the Trustee under Section 7.07,
the obligations of the Trustee to any authenticating agent under Section 2.02(e) 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 10.02
and Section 2.04 shall survive.

 

Section 10.02.              Application
of Trust Money.

 

Subject
to provisions of Section 2.04, all money deposited with the Trustee
pursuant to Section 10.01 shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to 

 

48

 

the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal and any premium and interest for whose
payment such money has been deposited with the Trustee.

 

ARTICLE 11.

 

MISCELLANEOUS

 

Section 11.01.              Table
of Contents, Headings, etc.

 

The
Table of Contents, Cross-Reference Table and Headings in this Indenture have
been inserted for convenience of reference only, are not to be considered a
part of this Indenture and shall in no way modify or restrict any of the terms
or provisions hereof.

 

Section 11.02.              Notices.

 

Any
notice or communication by the Company or the Trustee to the other is duly
given if in writing and delivered in person or mailed by first class mail
(registered or certified, return receipt requested), facsimile transmission or
overnight air courier guaranteeing next-day delivery, to the other’s address:

 

If
to the Company:

 

The
Rouse Company, LLC

110
N. Wacker Drive

Chicago, IL
60606

Attention:  Chief Financial Officer

Telecopier
No.:  (312) 960-5485

 

With
a copy to:

 

Weil,
Gotshal & Manges LLP

767
Fifth Ave.

New
York, NY 10153

Attention:  Matthew D. Bloch

Telecopier
No.: (212) 310-8000

 

If
to the Trustee:

 

Wilmington
Trust, FSB

Corporate
Capital Markets

50
South Sixth Street, Suite 1290

Minneapolis,
MN 55402

Attention:
Rouse Company Administrator

Telecopier
No.:  (612) 217-5651

 

The
Company or the Trustee, by notice to the other, may designate additional or
different addresses for subsequent notices or communications.

 

All
notices and communications (other than those sent to the Trustee or Holders)
shall be deemed to have been duly given: at the time delivered by hand, if
personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when receipt acknowledged, if sent by facsimile
transmission; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next-day delivery.  All notices and communications to the Trustee
or Holders shall be deemed duly given and effective only upon receipt.

 

49

 

 

 

Any
notice or communication to a Holder shall be mailed by first class mail,
certified or registered, return receipt requested, or by overnight air courier
guaranteeing next-day delivery to its address shown on the Security
Register.  Failure to mail a notice or communication to a Holder or any
defect in it shall not affect its sufficiency with respect to other Holders.

 

If
a notice or communication is mailed in the manner provided above within the
time prescribed, it is duly given, whether or not the addressee receives it.

 

If
the Company mails a notice or communication to Holders, the Company shall mail
a copy to the Trustee and each Agent at the same time.

 

Section 11.03.              Communication
by Holders of Notes with Other Holders of Notes.

 

Holders
may communicate pursuant to TIA §312(b) with other Holders with respect to
their rights under this Indenture or the Notes.  The Company, the Trustee,
the Registrar and anyone else shall have the protection of TIA §312(c).

 

Section 11.04.              Certificate
and Opinion as to Conditions Precedent.

 

Upon
any request or application by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the
Trustee:

 

(a) an Officer’s Certificate in
form and substance reasonably satisfactory to the Trustee (which shall include
the statements set forth in Section 11.05 hereof) stating that, in the
opinion of the signers, all conditions precedent and covenants, if any,
provided for in this Indenture relating to the proposed action have been
complied with; and

 

(b) an Opinion of Counsel in
form and substance reasonably satisfactory to the Trustee (which shall include
the statements set forth in Section 11.05 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been
complied with.

 

Section 11.05.              Statements
Required in Certificate or Opinion.

 

Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
TIA §314(a)(4)) shall comply with the provisions of TIA §314(e) and shall
include:

 

(a) a statement that the Person
making such certificate or opinion has read such covenant or condition;

 

(b) 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;

 

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

 

(d) a statement as to whether or
not, in the opinion of such Person, such condition or covenant has been
complied with.

 

With
respect to matters of fact, an Opinion of Counsel may rely on an Officer’s
Certificate, certificates of public officials or reports or opinions of
experts.

 

50

 

Section 11.06.              Rules by
Trustee and Agents.

 

The
Trustee may make reasonable rules for action by or at a meeting of
Holders.  The Registrar or Paying Agent
may make reasonable rules and set reasonable requirements for its
functions.

 

Section 11.07.              No
Personal Liability of Directors, Officers, Employees and Stockholders.

 

No
past, present or future director, officer, employee, incorporator or
stockholder of the Company, as such, shall have any liability for any
obligations of the Company under the Notes, this Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their
creation.  Each Holder of Notes by
accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes.  
The waiver and release may not be effective to waive or release
liabilities under the federal securities laws.

 

Section 11.08.              Governing
Law.

 

THE
LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
INDENTURE AND THE NOTES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 11.09.              No
Adverse Interpretation of Other Agreements.

 

This
Indenture may not be used to interpret any other indenture, loan or debt agreement
of the Company or its Subsidiaries or of any other Person.  Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 11.10.              Successors.

 

All
covenants and agreements of the Company in this Indenture and the Notes shall
bind their successors.  All covenants and agreements of the Trustee in
this Indenture shall bind its successors.

 

Section 11.11.              Severability.

 

In
case any provision in this Indenture or in the Notes 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 11.12.              Counterpart
Originals.

 

The
parties may sign any number of copies of this Indenture.  Each signed copy
shall be an original, but all of them together represent the same agreement.

 

[Signatures on following page]

 

51

 

	
   

  	
  SIGNATURES

  
	
  Dated
  as of

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  THE
  ROUSE COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Linda J. Wight

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Linda
  J. Wight

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President and

  
	
   

  	
   

  	
   

  	
   

  	
    Assistant Secretary

  

 

SIGNATURE
PAGE TO THE SENIOR NOTE INDENTURE

 

 

	
   

  	
  TRUSTEE:

  
	
   

  	
   

  
	
   

  	
  WILMINGTON
  TRUST FSB

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jane Schweiger

  
	
   

  	
   

  	
  Name:
  Jane Schweiger

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

SIGNATURE PAGE TO SENIOR NOTE
INDENTURE

 

 

EXHIBIT A

 

(Face of Note)

 

6.75% SENIOR NOTES DUE 2015

 

	
   

  	
   

  	
  CUSIP                           

  
	
  No.

  	
   

  	
          $

  

 

THE ROUSE COMPANY, LLC

 

promises
to pay to CEDE & CO., INC. or registered assigns, the principal
sum of
                                  
Dollars
($                            )or
such other amount as shall be set forth in the Schedule of Exchanges of
interest in the Global Note attached hereto on November 9, 2015.

 

Interest
Payment Dates: May 1 and November 1. 
..

 

Record
Dates:  April 15 and October 15.

 

Dated:  [         
].

 

A-1

 

IN
WITNESS WHEREOF, each of the Company has caused this Note to be signed manually
or by facsimile by its duly authorized officer.

 

 

	
   

  	
  THE
  ROUSE COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2

 

This
is one of the Global

Notes
referred to in the

within-mentioned
Indenture:

 

Wilmington
Trust FSB,

as
Trustee

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  
	
  Dated:

  	
   

  	
   

  
				

 

A-3

 

(Back of Note)

 

6.75% SENIOR NOTES due 2015

 

[Insert
the Global Note Legend, if applicable pursuant to the terms of the Indenture]

 

[Insert
the Private Placement Legend, if applicable pursuant to the terms of the
Indenture]

 

[Insert
the Regulation S Temporary Global Note Placement Legend, if applicable pursuant
to the terms of the Indenture]

 

Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

 

1.             Interest.  The
Rouse Company, LLC, a Delaware limited company (the “Company”),
promises to pay interest on the principal amount of this Note at 6.75% per
annum until maturity.  The Company shall pay interest semi-annually on May 1
and November 1 of each year, or if any such day is not a Business Day, on
the next succeeding Business Day (each an “Interest Payment Date”).  Interest shall accrue from the most recent
date to which interest has been paid on the Notes (or one or more Predecessor Notes)
or, if no interest has been paid, from the date of issuance of this Note; provided, however, that if there is no existing Default in
the payment of interest, and if this Note is authenticated between a record
date referred to on the face hereof and the next succeeding Interest Payment
Date, interest shall accrue from such next succeeding Interest Payment Date; provided, further, that
the first Interest Payment Date shall be May 1, 2011.  Interest shall be computed on the basis of a
360-day year of twelve 30-day months.

 

2.             Method of Payment.  The
Company shall pay interest on the Notes (except defaulted interest) to the
Persons in whose name this Note (or one or more Predecessor Notes) is
registered at the close of business on the April 15 or October 15
next preceding the Interest Payment Date, even if such Notes are cancelled
after such record date and on or before such Interest Payment Date, except as
provided in Section 2.12 of the Indenture with respect to defaulted
interest.  The Notes shall be payable as to principal, premium, if any,
and interest at the office or agency of the Company maintained for such
purpose, or, at the option of the Company, payment of interest may be made by
check mailed to the Holders at their addresses set forth in the Security
Register; provided, however,
that payment by wire transfer of immediately available funds shall be required
with respect to principal of and interest and premium, if any, on, all Global
Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to the Company or the Paying Agent.  Such payment shall be 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.

 

3.             Paying Agent and Registrar.  Initially,
Wilmington Trust FSB, the Trustee under the Indenture, shall act as Paying
Agent and Registrar.  The Company may change any Paying Agent or Registrar
without notice to any Holder.  The Company or any of its Subsidiaries may
act in any such capacity.

 

4.             Indenture.  The Company issued the Notes under an
Indenture dated as of November 9, 2010 (“Indenture”)
between the Company and the Trustee.  The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939, as amended (15 U.S.
Code §§ 77aaa-77bbbb).  The Notes are subject to all such terms,
and Holders are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of this Note conflicts with the
express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling.  The Notes are
obligations of the Company unlimited in aggregate principal amount.

 

5.             Optional Redemption.

 

(a) At any time prior to May 1,
2013, the Company may redeem all or any portion of the Notes, at once or over
time, after giving the notice required pursuant to Section 3.03 of the
Indenture, at a redemption price equal to the Make-Whole Price.  Any notice to the Holders of Notes of a
redemption pursuant to Section 3.07(a) of the Indenture shall include
the calculation of the redemption price, but need not include the redemption
price itself.  

 

A-4

 

The actual redemption price, calculated as described
above, shall be set forth in an Officer’s Certificate delivered to the Trustee
no later than two Business Days prior to the redemption date.

 

(b) On or after May 1,
2013, the Company may redeem all or any portion of the Notes, at once or over
time, after giving the notice required pursuant to Section 3.03 of the
Indenture, at the redemption prices set forth below.  The Notes will be redeemable at the
redemption prices (expressed as percentages of principal amount of the Notes to
be redeemed) plus accrued and unpaid interest thereon to the applicable
redemption date, subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant Interest Payment Date, if
redeemed during the twelve-month period beginning on the dates indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  May 1, 2013

  	
   

  	
  103.375

  	
  %

  
	
  May 1, 2014

  	
   

  	
  100.000

  	
  %

  

 

Any
prepayment pursuant to this Section 5 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 of the Indenture.

 

6.             Mandatory Redemption.  The Company shall not be required to make
mandatory redemption or sinking fund payments with respect to, or offer to
purchase, the Notes.

 

7.             Notice of Redemption.  Notice
of redemption shall be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder whose Notes are to be redeemed at its
registered address.  Notes in denominations larger than $1,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes
held by a Holder are to be redeemed.  On and after the redemption date
interest ceases to accrue on Notes or portions thereof called for redemption.

 

8.             Denominations, Transfer,
Exchange.  The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000.  This
Note shall represent the aggregate principal amount of outstanding Notes from
time to time endorsed hereon and the aggregate principal amount of Notes
represented hereby may from time to time be reduced or increased, as appropriate,
to reflect exchanges and redemptions. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture.  The Registrar
and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the
Indenture.  The Company need not exchange or register the transfer of any
Note or portion of a Note selected for redemption, except for the unredeemed
portion of any Note being redeemed in part.  Also, the Company need not
exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date
and the corresponding Interest Payment Date.

 

9.             Persons Deemed Owners.  The
registered Holder of a Note may be treated as its owner for all purposes.

 

10.           Amendment, Supplement and
Waiver.  Subject to certain exceptions, the Company
and the Trustee may amend or supplement the Indenture or the Notes with the
consent of the Holders of a majority in principal amount of the then
outstanding Notes, including Additional Notes, if any, voting as a single class
(including consents obtained in connection with a purchase of or tender offer
or exchange offer for the Notes), and, subject to Sections 6.08 and 6.13 of the
Indenture, any existing Default or Event of Default (except a continuing
Default or Event of Default in the payment of principal, premium, if any,
interest on the Notes) or compliance with any provision of the Indenture or the
Notes (except for certain covenants and provisions of the Indenture which
cannot be amended without the consent of each Holder) may be waived with the
consent of the Holders of a majority in principal amount of the then
outstanding Notes, including Additional Notes, if any, then outstanding voting
as a single class (including consents obtained in connection with a purchase of
or tender offer or exchange offer for the Notes).  Without the consent of any Holder, the
Company and the Trustee may amend or supplement the Indenture or the Notes to
cure any ambiguity, manifest error, omission, defect or inconsistency, to
provide for the assumption by a successor of the obligations of the Company
under the Indenture, to provide for uncertificated

 

A-5

 

Notes
in addition to or in place of certificated Notes, to add guarantees with
respect to the Notes, to secure the Notes, to add to the covenants of the
Company for the benefit of the Holders of the Notes or to surrender any right
or power conferred upon the Company.

 

11.           Defaults and Remedies.  If any
Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the then outstanding Notes may declare all the
Notes to be due and payable. 
Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency described in the
Indenture, all outstanding Notes shall become due and payable without further
action or notice.  Holders may not
enforce the Indenture or the Notes except as provided in the Indenture.  Subject to certain limitations, Holders of a
majority in aggregate principal amount of the then outstanding Notes may direct
the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders notice of any continuing Default or Event of Default (except a
Default or Event of Default relating to the payment of principal or interest)
if it determines that withholding notice is in their interest. The Holders of a
majority in aggregate principal amount of the Notes then outstanding by notice
to the Trustee may on behalf of the Holders of all of the Notes waive any
existing Default or Event of Default and its consequences under the Indenture
except a continuing Default or Event of Default in the payment of interest, or
the principal of, the Notes.  The Company
is required to deliver to the Trustee annually a statement regarding compliance
with the Indenture.

 

12.           Trustee Dealings with
Company.  Subject to
certain limitations, the Trustee in its individual or any other capacity may
become the owner or pledgee of Notes and may otherwise deal with the Company or
any Affiliate of the Company with the same rights it would have if it were not
Trustee.

 

13.           No Recourse Against Others.  No
past, present or future director, officer, employee, incorporator or
stockholder of the Company, as such, shall have any liability for any
obligations of the Company under the Indenture, the Notes or for any claim
based on, in respect of, or by reason of, such obligations or their
creation.  Each Holder by accepting a Note waives and releases all such
liability.

 

14.           Authentication.  This
Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

 

15.           Abbreviations. 
Customary abbreviations may be used in the name of a Holder or an assignee,
such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

 

16.           CUSIP Numbers.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company have
caused CUSIP numbers to be printed on the Notes and has directed the Trustee to
use CUSIP numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

The
Company shall furnish to any Holder upon written request and without charge a
copy of the Indenture.  Requests may be
made to:

 

The
Rouse Company, LLC

110 North Wacker Drive

Chicago, Illinois 60606

Attention: Chief Financial Officer

 

17.           Governing Law.  The law of the State of New York shall govern
and be used to construe this Note without giving effect to applicable
principals of conflicts of law to the extent that the application of the laws
of another jurisdiction would be required thereby.

 

A-6

 

 

Assignment Form

 

To
assign this Note, fill in the form below:

 

 

(I) or
(we) assign and transfer this Note to

 

 

	
   

  
	
  (Insert assignee’s social security or other tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Print or type assignee’s name, address and zip code)

  

 

	
  and
  irrevocably appoint

  	
   

  
	
  as agent to transfer this Note on the books of the
  Company.  The agent may substitute another to act for him.

  
	
   

  

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  
	
   

  	
   

  
	
   

  	
  Signature
  Guarantee:

  	
   

  
						

 

A-7

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The
following exchanges of a part of this Global Note for an interest in another
Global Note or for a Definitive Note, or exchanges of a part of another Global
Note or Definitive Note for an interest in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  of this Global Note

  	
   

  	
  Amount of increase

  in Principal Amount

  of this Global Note

  	
   

  	
  Principal Amount

  of this Global Note

  following such

  decrease (or

  increase)

  	
   

  	
  Signature of

  authorized signatory

  of Trustee or

  Note Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT B

 

FORM OF CERTIFICATE OF
TRANSFER

 

The
Rouse Company, LLC

110
North Wacker Drive

Chicago, Illinois 60606

Attention:
Chief Financial Officer

 

Wilmington
Trust, FSB

Corporate
Capital Markets

50
South Sixth Street, Suite 1290

Minneapolis,
MN 55402

Attention:
Rouse Company Administrator

 

Re:          6.75% Senior Notes due 2015

 

Reference
is hereby made to the Indenture, dated as of November 9, 2010 (the “Indenture”), between The Rouse Company, LLC, as issuer (the “Company”) and Wilmington Trust FSB, as trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

,
(the “Transferor”) owns and proposes to
transfer the Note[s] or interest in such Note[s] specified in Annex A hereto,
in the principal amount of
$                      
in such Note[s] or interests (the “Transfer”), to
                                                      
(the “Transferee”), as further specified in
Annex A hereto.  In connection with the
Transfer, the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.  o  Check if Transferee will
take delivery of a beneficial interest in the 144A Global Note or a Definitive
Note Pursuant to Rule 144A. 
The Transfer is being effected pursuant to and in accordance with Rule 144A
under the United States Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the Transferor hereby
further certifies that the beneficial interest or Definitive Note is being
transferred to a Person that the Transferor reasonably believed and believes is
purchasing the beneficial interest or Definitive Note for its own account, or
for one or more accounts with respect to which such Person exercises sole
investment discretion, and such Person and each such account is a “qualified
institutional buyer” within the meaning of Rule 144A in a transaction
meeting the requirements of Rule 144A and such Transfer is in compliance
with any applicable blue sky securities laws of any state of the United
States.  Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the 144A Global Note and/or the Definitive Note and in the Indenture and the
Securities Act.

 

2.  o  Check if Transferee will
take delivery of a beneficial interest in the Regulation S Global Note or a
Definitive Note pursuant to Regulation S.  The Transfer is being effected pursuant to
and in accordance with Rule 903 or Rule 904 under the Securities Act
and, accordingly, the Transferor hereby further certifies that (i) the
Transfer is not being made to a Person in the United States and (x) at the
time the buy order was originated, the Transferee was outside the United States
or such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any Person acting on
its behalf knows that the transaction was prearranged with a buyer in the
United States, (ii) no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or Rule 904(a) of
Regulation S under the Securities Act, (iii) the transaction is not part
of a plan or scheme to evade the registration requirements of the Securities
Act and (iv) if the proposed transfer is being made prior to the
expiration of the Distribution Compliance Period, the transfer is not being
made to a U.S. Person or for the account or benefit of a U.S. Person (other
than an Initial Purchaser).  Upon
consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on 

 

B-1

 

Transfer
enumerated in the Private Placement Legend printed on the Regulation S Global
Note, the Regulation S Temporary Global Note and/or the Definitive Note and in
the Indenture and the Securities Act.

 

3.  o  Check and complete if Transferee
will take delivery of a beneficial interest in the IAI Global Note or a
Definitive Note pursuant to any provision of the Securities Act other than Rule 144A
or Regulation S.  The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and
any applicable blue sky securities laws of any state of the United States, and
accordingly the Transferor hereby further certifies that (check one):

 

(a)           o  such Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act;

 

or

 

(b)           o  such Transfer is being effected to the
Company or a subsidiary thereof;

 

or

 

(c)           o  such Transfer is being effected pursuant to
an effective registration statement under the Securities Act and in compliance
with the prospectus delivery requirements of the Securities Act;

 

or

 

(d)           o  such Transfer is being effected to an
Institutional Accredited Investor and pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A, Rule 144
or Rule 904, and the Transferor hereby further certifies that it has not
engaged in any general solicitation within the meaning of Regulation D under
the Securities Act and the Transfer complies with the transfer restrictions
applicable to beneficial interests in a Restricted Global Note or Restricted
Definitive Notes and the requirements of the exemption claimed, which certification
is supported by (1) a certificate executed by the Transferee in the form
of Exhibit D to the Indenture and (2) if such Transfer is in respect
of a principal amount of Notes at the time of transfer of less than $250,000,
an Opinion of Counsel provided by the Transferor or the Transferee (a copy of
which the Transferor has attached to this certification), to the effect that
such Transfer is in compliance with the Securities Act.  Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the IAI Global Note and/or the
Definitive Notes and in the Indenture and the Securities Act.

 

4.  o  Check if Transferee will
take delivery of a beneficial interest in an Unrestricted Global Note or of an
Unrestricted Definitive Note.

 

(a) 
o  Check if Transfer is
pursuant to Rule 144.  (i) The
Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will
no longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

 

(b) 
o  Check if Transfer is
Pursuant to Regulation S.  (i) The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904
under the Securities Act and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any state
of the United States and (ii) the restrictions on transfer contained in
the Indenture and the Private Placement Legend are not 

 

B-2

 

required
in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.

 

(c) 
o  Check if Transfer is
Pursuant to Other Exemption.  (i) The
Transfer is being effected pursuant to and in compliance with an exemption from
the registration requirements of the Securities Act other than Rule 144, Rule 903
or Rule 904 and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any State of the
United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will
not be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes or Restricted
Definitive Notes and in the Indenture.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

 

	
   

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  
				

 

B-3

 

ANNEX A TO CERTIFICATE OF
TRANSFER

 

	
   

  	
  1.

  	
  The
  Transferor owns and proposes to transfer the following:

  
	
   

  	
   

  	
   

  
	
  [CHECK ONE OF (a) OR
  (b)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  o

  	
  a
  beneficial interest in the:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  o

  	
  144A
  Global Note (CUSIP
                    ),
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  o

  	
  Regulation
  S Global Note (CUSIP
                    ),
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  o

  	
  IAI
  Global Note (CUSIP
                    );
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  o

  	
  a
  Restricted Definitive Note.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  After
  the Transfer the Transferee will hold:

  
	
   

  	
   

  	
   

  
	
  [CHECK
  ONE OF (a), (b) OR (c)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  o

  	
  a
  beneficial interest in the:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  o

  	
  144A
  Global Note (CUSIP
                    ),
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  o

  	
  Regulation
  S Global Note (CUSIP
                    ),
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  o

  	
  IAI
  Global Note (CUSIP
                    );
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  o

  	
  Unrestricted
  Global Note (CUSIP
                    );
  or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  o

  	
  a
  Restricted Definitive Note; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  o

  	
  an
  Unrestricted Definitive Note,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  in
  accordance with the terms of the Indenture.

  

 

B-4

 

EXHIBIT C

 

FORM OF CERTIFICATE OF
EXCHANGE

 

The
Rouse Company, LLC

110
North Wacker Drive

Chicago, Illinois 60606

Attention:
Chief Financial Officer

 

Wilmington
Trust, FSB

Corporate
Capital Markets

50
South Sixth Street, Suite 1290

Minneapolis,
MN 55402

Attention:
Rouse Company Administrator

 

Re:          6.75% Senior Notes due 2015

 

Reference
is hereby made to the Indenture, dated as of November 9, 2010 (the “Indenture”), among The Rouse Company, LLC issuer (the “Company”) and Wilmington Trust FSB, as trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

,
(the “Owner”) owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of
$                        
in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

 

1.             Exchange of Restricted Definitive
Notes or Beneficial Interests in a Restricted Global Note for Unrestricted
Definitive Notes or Beneficial Interests in an Unrestricted Global Note

 

(a) 
o  Check if Exchange is from
beneficial interest in a Restricted Global Note to beneficial interest in an
Unrestricted Global Note.  In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note in an
equal principal amount, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Note and pursuant to and in accordance with
the United States Securities Act of 1933, as amended (the “Securities
Act”), (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial
interest in an Unrestricted Global Note is being acquired in compliance with
any applicable blue sky securities laws of any state of the United States.

 

(b) 
o  Check if Exchange is from beneficial interest
in a Restricted Global Note to Unrestricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for an Unrestricted Definitive
Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is
being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Note and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Unrestricted
Definitive Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

(c) 
o  Check if Exchange is from Restricted
Definitive Note to beneficial interest in an Unrestricted Global Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for a beneficial interest in an Unrestricted Global
Note, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial
interest is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

(d) 
o  Check if Exchange is from
Restricted Definitive Note to Unrestricted Definitive Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner
hereby certifies (i) the Unrestricted Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to Restricted 

 

C-1

 

Definitive
Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

 

2.             Exchange of Restricted Definitive
Notes or Beneficial Interests in Restricted Global Notes for Restricted
Definitive Notes or Beneficial Interests in Restricted Global Notes

 

(a) 
o  Check if Exchange is from beneficial interest
in a Restricted Global Note to Restricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a Restricted Definitive
Note with an equal principal amount, the Owner hereby certifies that the
Restricted Definitive Note is being acquired for the Owner’s own account
without transfer.  Upon consummation of
the proposed Exchange in accordance with the terms of the Indenture, the
Restricted Definitive Note issued will continue to be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Definitive Note and in the Indenture and the Securities Act.

 

(b) 
o  Check if Exchange is from
Restricted Definitive Note to beneficial interest in a Restricted Global Note.  In connection with the Exchange of the Owner’s
Restricted Definitive Note for a beneficial interest in the [CIRCLE ONE] 144A
Global Note, Regulation S Global Note, IAI Global Note with an equal
principal amount, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner’s own account without transfer and
(ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Definitive Note and pursuant to and
in accordance with the Securities Act, and in compliance with any applicable
blue sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and
the Securities Act.

 

C-2

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

 

	
   

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  
				

 

C-3

 

EXHIBIT D

 

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

The
Rouse Company, LLC

110
North Wacker Drive

Chicago, Illinois 60606

Attention:
Chief Financial Officer

 

Wilmington
Trust, FSB

Corporate
Capital Markets

50
South Sixth Street, Suite 1290

Minneapolis,
MN 55402

Attention:
Rouse Company Administrator

 

Re:          6.75% Senior Notes due 2015

 

Reference
is hereby made to the Indenture, dated as of November 9, 2010 (the “Indenture”), among The Rouse Company, LLC, the issuer (the “Company”) and Wilmington Trust FSB, as trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

In
connection with our proposed purchase of
$                        
aggregate principal amount of:

 

(a) 
o  a beneficial interest in a Global Note, or

 

(b) 
o  a Definitive Note,

 

we confirm that:

 

1.             We understand that any
subsequent transfer of the Notes or any interest therein is subject to certain
restrictions and conditions set forth in the Indenture and the undersigned
agrees to be bound by, and not to resell, pledge or otherwise transfer the
Notes or any interest therein except in compliance with, such restrictions and
conditions and the United States Securities Act of 1933, as amended (the “Securities Act”).

 

2.             We understand that the offer
and sale of the Notes have not been registered under the Securities Act, and
that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence.  We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to the Company or any subsidiary thereof,
(B) in accordance with Rule 144A under the Securities Act to a “qualified
institutional buyer” (as defined therein), (C) to an institutional “accredited
investor” (as defined below) that, prior to such transfer, furnishes (or has
furnished on its behalf by a U.S. broker-dealer) to you and to the Company a
signed letter substantially in the form of this letter and, if such transfer is
in respect of a principal amount of Notes, at the time of transfer of less than
$250,000, an Opinion of Counsel in form reasonably acceptable to the Company to
the effect that such transfer is in compliance with the Securities Act,
(D) outside the United States in accordance with Rule 904 of
Regulation S under the Securities Act, (E) pursuant to the provisions of Rule 144(k) under
the Securities Act or (F) pursuant to an effective registration statement
under the Securities Act, and we further agree to provide to any Person
purchasing the Definitive Note or beneficial interest in a Global Note from us
in a transaction meeting the requirements of clauses (A) through (E) of
this paragraph a notice advising such purchaser that resales thereof are
restricted as stated herein.

 

 

3.             We understand that, on any
proposed resale of the Notes or beneficial interest therein, we will be
required to furnish to you and the Company such certifications, legal opinions
and other information as you and the Company may reasonably require to confirm
that the proposed sale complies with the foregoing restrictions.  We further understand that the Notes
purchased by us will bear a legend to the foregoing effect.

 

4.             We are an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities Act) and have such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Notes, and we and any accounts for which we are
acting are each able to bear the economic risk of our or its investment.  We have had access to such financial and
other information and have been afforded the opportunity to ask such questions
of representatives of the Company and receive answers thereto, as we deem
necessary in connection with our decision to purchase the Notes.

 

5.             We are acquiring the Notes
or a beneficial interest therein purchased by us for our own account or for one
or more accounts (each of which is an institutional “accredited investor”) as
to each of which we exercise sole investment discretion and are not acquiring
the Notes with a view to any distribution thereof in a transaction that would
violate the Securities Act of the securities laws of any state of the United
States or any other applicable jurisdiction.

 

You
and the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.  This letter
shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

	
   

  	
   

  
	
   

  	
  [Insert Name of Accredited Investor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
						

 

5

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1.                 DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
  1

  
	
  Section 1.01.

  	
  Definitions

  	
  1

  
	
  Section 1.02.

  	
  Other
  Definitions

  	
  10

  
	
  Section 1.03.

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
  10

  
	
  Section 1.04.

  	
  Conflict
  with Trust Indenture Act

  	
  11

  
	
  Section 1.05.

  	
  Rules of
  Construction

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.                 THE
  NOTES

  	
  11

  
	
  Section 2.01.

  	
  Form and
  Dating

  	
  11

  
	
  Section 2.02.

  	
  Execution
  and Authentication

  	
  13

  
	
  Section 2.03.

  	
  Registrar
  and Paying Agent

  	
  13

  
	
  Section 2.04.

  	
  Paying
  Agent to Hold Money in Trust

  	
  14

  
	
  Section 2.05.

  	
  Holder
  Lists

  	
  14

  
	
  Section 2.06.

  	
  Transfer
  and Exchange

  	
  14

  
	
  Section 2.07.

  	
  Replacement
  Notes

  	
  23

  
	
  Section 2.08.

  	
  Outstanding
  Notes

  	
  24

  
	
  Section 2.09.

  	
  Treasury
  Notes

  	
  24

  
	
  Section 2.10.

  	
  Temporary
  Notes

  	
  24

  
	
  Section 2.11.

  	
  Cancellation

  	
  24

  
	
  Section 2.12.

  	
  Payment
  of Interest; Defaulted Interest

  	
  25

  
	
  Section 2.13.

  	
  CUSIP
  or ISIN Numbers

  	
  25

  
	
  Section 2.14.

  	
  Issuance
  of Additional Notes

  	
  25

  
	
  Section 2.15.

  	
  Record
  Date

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.                 REDEMPTION
  AND PREPAYMENT

  	
  26

  
	
  Section 3.01.

  	
  Notices
  to Trustee

  	
  26

  
	
  Section 3.02.

  	
  Selection
  of Notes to Be Redeemed

  	
  26

  
	
  Section 3.03.

  	
  Notice
  of Redemption

  	
  26

  
	
  Section 3.04.

  	
  Effect
  of Notice of Redemption

  	
  27

  
	
  Section 3.05.

  	
  Deposit
  of Redemption Price

  	
  27

  
	
  Section 3.06.

  	
  Notes
  Redeemed in Part

  	
  27

  
	
  Section 3.07.

  	
  Optional
  Redemption

  	
  27

  
	
  Section 3.08.

  	
  Mandatory
  Redemption

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.                 COVENANTS

  	
  28

  
	
  Section 4.01.

  	
  Payment
  of Principal, Premium and Interest

  	
  28

  
	
  Section 4.02.

  	
  Maintenance
  of Office or Agency

  	
  28

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 4.03.

  	
  Reporting

  	
  29

  
	
  Section 4.04.

  	
  Compliance
  Certificate

  	
  29

  
	
  Section 4.05.

  	
  Payment
  of Taxes and Other Claims

  	
  29

  
	
  Section 4.06.

  	
  Existence

  	
  30

  
	
  Section 4.07.

  	
  Maintenance
  of Properties

  	
  30

  
	
  Section 4.08.

  	
  Incurrence
  of Additional Debt and Issuance of Capital Stock

  	
  30

  
	
  Section 4.09.

  	
  Limitation
  on Sale/Leaseback Transactions

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.                 CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
  32

  
	
  Section 5.01.

  	
  Company
  May Consolidate, Etc. Only on Certain Terms

  	
  32

  
	
  Section 5.02.

  	
  Successor
  Substituted

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.                 DEFAULTS
  AND REMEDIES

  	
  33

  
	
  Section 6.01.

  	
  Events
  of Default

  	
  33

  
	
  Section 6.02.

  	
  Acceleration

  	
  34

  
	
  Section 6.03.

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
  35

  
	
  Section 6.04.

  	
  Trustee
  May File Proofs of Claim

  	
  35

  
	
  Section 6.05.

  	
  Trustee
  May Enforce Claims Without Possession of Notes

  	
  36

  
	
  Section 6.06.

  	
  Application
  of Money Collected

  	
  36

  
	
  Section 6.07.

  	
  Limitation
  on Suits

  	
  36

  
	
  Section 6.08.

  	
  Unconditional
  Right of Holders to Receive Principal, Premium and Interest

  	
  37

  
	
  Section 6.09.

  	
  Restoration
  of Rights and Remedies

  	
  37

  
	
  Section 6.10.

  	
  Rights
  and Remedies Cumulative

  	
  37

  
	
  Section 6.11.

  	
  Delay
  or Omission Not Waiver

  	
  37

  
	
  Section 6.12.

  	
  Control
  by Holders

  	
  37

  
	
  Section 6.13.

  	
  Waiver
  of Past Defaults

  	
  38

  
	
  Section 6.14.

  	
  Undertaking
  for Costs

  	
  38

  
	
  Section 6.15.

  	
  Waiver
  of Usury, Stay or Extension Laws

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.                 TRUSTEE

  	
  38

  
	
  Section 7.01.

  	
  Duties
  of Trustee

  	
  38

  
	
  Section 7.02.

  	
  Rights
  of Trustee

  	
  39

  
	
  Section 7.03.

  	
  Individual
  Rights of Trustee

  	
  40

  
	
  Section 7.04.

  	
  Trustee’s
  Disclaimer

  	
  40

  
	
  Section 7.05.

  	
  Notice
  of Defaults

  	
  40

  

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 7.06.

  	
  Reports
  by Trustee to Holders

  	
  40

  
	
  Section 7.07.

  	
  Compensation
  and Indemnity

  	
  41

  
	
  Section 7.08.

  	
  Replacement
  of Trustee

  	
  41

  
	
  Section 7.09.

  	
  Successor
  Trustee by Merger, etc.

  	
  42

  
	
  Section 7.10.

  	
  Eligibility;
  Disqualification

  	
  42

  
	
  Section 7.11.

  	
  Preferential
  Collection of Claims Against Company

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8.                 LEGAL
  DEFEASANCE AND COVENANT DEFEASANCE

  	
  43

  
	
  Section 8.01.

  	
  Option
  to Effect Legal Defeasance or Covenant Defeasance

  	
  43

  
	
  Section 8.02.

  	
  Legal
  Defeasance and Discharge

  	
  43

  
	
  Section 8.03.

  	
  Covenant
  Defeasance

  	
  43

  
	
  Section 8.04.

  	
  Conditions
  to Legal or Covenant Defeasance

  	
  44

  
	
  Section 8.05.

  	
  Deposited
  Cash and U.S. Government Securities to be Held in Trust; Other Miscellaneous
  Provisions

  	
  44

  
	
  Section 8.06.

  	
  Repayment
  to the Company

  	
  45

  
	
  Section 8.07.

  	
  Reinstatement

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9.                 AMENDMENT,
  SUPPLEMENT AND WAIVER

  	
  46

  
	
  Section 9.01.

  	
  Without
  Consent of Holders of Notes

  	
  46

  
	
  Section 9.02.

  	
  With
  Consent of Holders of Notes

  	
  46

  
	
  Section 9.03.

  	
  Revocation
  and Effect of Consents

  	
  47

  
	
  Section 9.04.

  	
  Notation
  on or Exchange of Notes

  	
  47

  
	
  Section 9.05.

  	
  Trustee
  to Sign Amendments, etc.

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10.                 SATISFACTION
  AND DISCHARGE

  	
  48

  
	
  Section 10.01.

  	
  Satisfaction
  and Discharge

  	
  48

  
	
  Section 10.02.

  	
  Application
  of Trust Money

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11.                 MISCELLANEOUS

  	
  49

  
	
  Section 11.01.

  	
  Table
  of Contents, Headings, etc.

  	
  49

  
	
  Section 11.02.

  	
  Notices

  	
  49

  
	
  Section 11.03.

  	
  Communication
  by Holders of Notes with Other Holders of Notes

  	
  50

  
	
  Section 11.04.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  50

  
	
  Section 11.05.

  	
  Statements
  Required in Certificate or Opinion

  	
  50

  
	
  Section 11.06.

  	
  Rules by
  Trustee and Agents

  	
  51

  
	
  Section 11.07.

  	
  No
  Personal Liability of Directors, Officers, Employees and Stockholders

  	
  51

  
	
  Section 11.08.

  	
  Governing
  Law

  	
  51

  

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 11.09.

  	
  No
  Adverse Interpretation of Other Agreements

  	
  51

  
	
  Section 11.10.

  	
  Successors

  	
  51

  
	
  Section 11.11.

  	
  Severability

  	
  51

  
	
  Section 11.12.

  	
  Counterpart
  Originals

  	
  51

  

 

iv

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