Document:

Exhibit 4.1

 

 

Vornado Realty Trust
                                                     
Issuer

Vornado Realty L.P.
                                                     
Guarantor

To

The Bank of New
York
                                                 
    Trustee

 

 

INDENTURE

 

Dated as of November 20, 2006

SENIOR
DEBT SECURITIES

 

 

 

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

inclusive, of the Trust Indenture Act of 1939:

	
  Trust Indenture

  	
   

  	
   

  	
   

  	
   

  
	
  Act Section

  	
   

  	
   

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 310

  	
  (a)(1)

  	
   

  	
   

  	
  609

  
	
   

  	
  (a)(2)

  	
   

  	
   

  	
  609

  
	
   

  	
  (a)(3)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(4)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (b)

  	
   

  	
   

  	
  608

  
	
   

  	
   

  	
   

  	
   

  	
  610

  
	
  Section 311

  	
  (a)

  	
   

  	
   

  	
  613

  
	
   

  	
  (b)

  	
   

  	
   

  	
  613

  
	
  Section 312

  	
  (a)

  	
   

  	
   

  	
  701

  
	
   

  	
   

  	
   

  	
   

  	
  702

  
	
   

  	
  (b)

  	
   

  	
   

  	
  702

  
	
   

  	
  (c)

  	
   

  	
   

  	
  702

  
	
  Section 313

  	
  (a)

  	
   

  	
   

  	
  703

  
	
   

  	
  (b)

  	
   

  	
   

  	
  703

  
	
   

  	
  (c)

  	
   

  	
   

  	
  703

  
	
   

  	
  (d)

  	
   

  	
   

  	
  703

  
	
  Section 314

  	
  (a)

  	
   

  	
   

  	
  704

  
	
   

  	
  (a)(4)

  	
   

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  	
  1004

  
	
   

  	
  (b)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (c)(1)

  	
   

  	
   

  	
  102

  
	
   

  	
  (c)(2)

  	
   

  	
   

  	
  102

  
	
   

  	
  (c)(3)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (d)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (e)

  	
   

  	
   

  	
  102

  
	
  Section 315

  	
  (a)

  	
   

  	
   

  	
  601

  
	
   

  	
  (b)

  	
   

  	
   

  	
  602

  
	
   

  	
  (c)

  	
   

  	
   

  	
  601

  
	
   

  	
  (d)

  	
   

  	
   

  	
  601

  
	
   

  	
  (e)

  	
   

  	
   

  	
  514

  
	
  Section 316

  	
  (a)

  	
   

  	
   

  	
  101

  
	
   

  	
  (a)(1)(A)

  	
   

  	
   

  	
  502

  
	
   

  	
   

  	
   

  	
   

  	
  512

  
	
   

  	
  (a)(1)(B)

  	
   

  	
   

  	
  513

  
	
   

  	
  (a)(2)

  	
   

  	
   

  	
  Not Applicable

  
	
   

  	
  (b)

  	
   

  	
   

  	
  508

  
	
   

  	
  (c)

  	
   

  	
   

  	
  104

  
	
  Section 317

  	
  (a)(1)

  	
   

  	
   

  	
  503

  
	
   

  	
  (a)(2)

  	
   

  	
   

  	
  504

  
	
   

  	
  (b)

  	
   

  	
   

  	
  1003

  
	
  Section 318

  	
  (a)

  	
   

  	
   

  	
  107

  
						

 

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

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  PARTIES

  	
  1

  
	
  RECITALS OF THE ISSUER AND THE GUARANTOR

  	
  1

  
	
   

  	
   

  
	
  ARTICLE ONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS AND
  OTHER PROVISIONS OF GENERAL APPLICATION

  
	
   

  
	
  Section 101.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
  Act

  	
   

  	
  2

  
	
   

  	
   

  	
  Affiliate

  	
   

  	
  2

  
	
   

  	
   

  	
  Applicable Procedures

  	
   

  	
  2

  
	
   

  	
   

  	
  Authenticating Agent

  	
   

  	
  2

  
	
   

  	
   

  	
  Board of Trustees

  	
   

  	
  2

  
	
   

  	
   

  	
  Board Resolution

  	
   

  	
  2

  
	
   

  	
   

  	
  Business Day

  	
   

  	
  2

  
	
   

  	
   

  	
  Commission

  	
   

  	
  2

  
	
   

  	
   

  	
  Common Shares

  	
   

  	
  2

  
	
   

  	
   

  	
  Corporate Trust Office

  	
   

  	
  2

  
	
   

  	
   

  	
  corporation

  	
   

  	
  3

  
	
   

  	
   

  	
  Covenant Defeasance

  	
   

  	
  3

  
	
   

  	
   

  	
  Defaulted Interest

  	
   

  	
  3

  
	
   

  	
   

  	
  Defeasance

  	
   

  	
  3

  
	
   

  	
   

  	
  Depositary

  	
   

  	
  3

  
	
   

  	
   

  	
  Event of Default

  	
   

  	
  3

  
	
   

  	
   

  	
  Exchange Act

  	
   

  	
  3

  
	
   

  	
   

  	
  Expiration Date

  	
   

  	
  3

  
	
   

  	
   

  	
  Guarantee

  	
   

  	
  3

  
	
   

  	
   

  	
  Guaranteed Securities

  	
   

  	
  3

  
	
   

  	
   

  	
  Guarantor

  	
   

  	
  3

  
	
   

  	
   

  	
  Guarantor’s Board Resolution

  	
   

  	
  3

  
	
   

  	
   

  	
  Guarantor’s Officers’ Certificate

  	
   

  	
  3

  
	
   

  	
   

  	
  Guarantor Request

  	
   

  	
  3

  
	
   

  	
   

  	
  Global Security

  	
   

  	
  4

  
	
   

  	
   

  	
  Holder

  	
   

  	
  4

  
	
   

  	
   

  	
  Indenture

  	
   

  	
  4

  
	
   

  	
   

  	
  interest

  	
   

  	
  4

  
	
   

  	
   

  	
  Interest Payment Date

  	
   

  	
  4

  
	
   

  	
   

  	
  Investment Company Act

  	
   

  	
  4

  
	
   

  	
   

  	
  Issuer

  	
   

  	
  4

  
	
   

  	
   

  	
  Issuer Request

  	
   

  	
  4

  
	
   

  	
   

  	
  Maturity

  	
   

  	
  4

  
	
   

  	
   

  	
  Notice of Default

  	
   

  	
  4

  
	
   

  	
   

  	
  Officer

  	
   

  	
  4

  
	
   

  	
   

  	
  Officers’ Certificate

  	
   

  	
  4

  
	
   

  	
   

  	
  Opinion of Counsel

  	
   

  	
  5

  

 

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

 

 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
   

  	
   

  	
  Original Issue Discount Security

  	
   

  	
  5

  
	
   

  	
   

  	
  Outstanding

  	
   

  	
  5

  
	
   

  	
   

  	
  Paying Agent

  	
   

  	
  6

  
	
   

  	
   

  	
  Person

  	
   

  	
  6

  
	
   

  	
   

  	
  Place of Payment

  	
   

  	
  6

  
	
   

  	
   

  	
  Predecessor Security

  	
   

  	
  6

  
	
   

  	
   

  	
  Redemption Date

  	
   

  	
  6

  
	
   

  	
   

  	
  Redemption Price

  	
   

  	
  6

  
	
   

  	
   

  	
  Regular Record Date

  	
   

  	
  6

  
	
   

  	
   

  	
  Responsible Officer

  	
   

  	
  6

  
	
   

  	
   

  	
  Securities

  	
   

  	
  6

  
	
   

  	
   

  	
  Securities Act

  	
   

  	
  6

  
	
   

  	
   

  	
  Security Register

  	
   

  	
  6

  
	
   

  	
   

  	
  Special Record Date

  	
   

  	
  6

  
	
   

  	
   

  	
  Stated Maturity

  	
   

  	
  7

  
	
   

  	
   

  	
  Subsidiary

  	
   

  	
  7

  
	
   

  	
   

  	
  Trust Indenture Act

  	
   

  	
  7

  
	
   

  	
   

  	
  Trustee

  	
   

  	
  7

  
	
   

  	
   

  	
  U.S. Government Obligation

  	
   

  	
  7

  
	
   

  	
   

  	
  Vice President

  	
   

  	
  7

  
	
   

  	
   

  	
  Vornado Realty Trust

  	
   

  	
  7

  
	
  Section 102.

  	
   

  	
  Compliance Certificates and Opinions

  	
   

  	
  7

  
	
  Section 103.

  	
   

  	
  Form of Documents Delivered to Trustee

  	
   

  	
  8

  
	
  Section 104.

  	
   

  	
  Acts of Holders; Record Dates

  	
   

  	
  8

  
	
  Section 105.

  	
   

  	
  Notices, Etc., to Trustee, Issuer and the Guarantor

  	
   

  	
  10

  
	
  Section 106.

  	
   

  	
  Notice to Holders; Waiver

  	
   

  	
  11

  
	
  Section 107.

  	
   

  	
  Conflict with Trust Indenture Act

  	
   

  	
  11

  
	
  Section 108.

  	
   

  	
  Effect of Headings and Table of Contents

  	
   

  	
  11

  
	
  Section 109.

  	
   

  	
  Successors and Assigns

  	
   

  	
  11

  
	
  Section 110.

  	
   

  	
  Separability Clause

  	
   

  	
  12

  
	
  Section 111.

  	
   

  	
  Benefits of Indenture

  	
   

  	
  12

  
	
  Section 112.

  	
   

  	
  Governing Law

  	
   

  	
  12

  
	
  Section 113.

  	
   

  	
  Legal Holidays

  	
   

  	
  12

  
	
  Section 114.

  	
   

  	
  Limited Liability; Immunity of Shareholders,
  Partners, Trustees, Officers and Agents of the Issuer and the Guarantor

  	
   

  	
  12

  
	
   

  
	
  ARTICLE TWO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECURITY FORMS

  
	
  Section 201.

  	
   

  	
  Forms Generally

  	
   

  	
  13

  
	
  Section 202.

  	
   

  	
  Form of Face of Security

  	
   

  	
  13

  
	
  Section 203.

  	
   

  	
  Form of Reverse of Security

  	
   

  	
  15

  
	
  Section 204.

  	
   

  	
  Form of Legend for Global Securities

  	
   

  	
  18

  
	
  Section 205.

  	
   

  	
  Form of Guarantee

  	
   

  	
  18

  
	
  Section 206.

  	
   

  	
  Form of Trustee’s Certificate of Authentication

  	
   

  	
  20

  

 

 ii
 

 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE THREE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE SECURITIES

  
	
   

  
	
  Section 301.

  	
   

  	
  Amount Unlimited; Issuable in Series

  	
   

  	
  20

  
	
  Section 302.

  	
   

  	
  Denominations

  	
   

  	
  23

  
	
  Section 303.

  	
   

  	
  Execution, Authentication, Delivery and Dating

  	
   

  	
  23

  
	
  Section 304.

  	
   

  	
  Temporary Securities

  	
   

  	
  24

  
	
  Section 305.

  	
   

  	
  Registration, Registration of Transfer and Exchange

  	
   

  	
  25

  
	
  Section 306.

  	
   

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
   

  	
  27

  
	
  Section 307.

  	
   

  	
  Payment of Interest; Interest Rights Preserved

  	
   

  	
  27

  
	
  Section 308.

  	
   

  	
  Persons Deemed Owners

  	
   

  	
  29

  
	
  Section 309.

  	
   

  	
  Cancellation

  	
   

  	
  29

  
	
  Section 310.

  	
   

  	
  Computation of Interest

  	
   

  	
  29

  
	
  Section 311.

  	
   

  	
  CUSIP Numbers

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SATISFACTION AND
  DISCHARGE

  
	
   

  
	
  Section 401.

  	
   

  	
  Satisfaction and Discharge of Indenture

  	
   

  	
  30

  
	
  Section 402.

  	
   

  	
  Application of Trust Money

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REMEDIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 501.

  	
   

  	
  Events of Default

  	
   

  	
  31

  
	
  Section 502.

  	
   

  	
  Acceleration of Maturity; Rescission and Annulment

  	
   

  	
  33

  
	
  Section 503.

  	
   

  	
  Collection of Indebtedness and Suits for Enforcement
  by Trustee

  	
   

  	
  34

  
	
  Section 504.

  	
   

  	
  Trustee May File Proofs of Claim

  	
   

  	
  34

  
	
  Section 505.

  	
   

  	
  Trustee May Enforce Claims Without Possession of
  Securities

  	
   

  	
  35

  
	
  Section 506.

  	
   

  	
  Application of Money Collected

  	
   

  	
  35

  
	
  Section 507.

  	
   

  	
  Limitation on Suits

  	
   

  	
  35

  
	
  Section 508.

  	
   

  	
  Unconditional Right of Holders to Receive Principal,
  Premium and Interest

  	
   

  	
  36

  
	
  Section 509.

  	
   

  	
  Restoration of Rights and Remedies

  	
   

  	
  36

  
	
  Section 510.

  	
   

  	
  Rights and Remedies Cumulative

  	
   

  	
  36

  
	
  Section 511.

  	
   

  	
  Delay or Omission Not Waiver

  	
   

  	
  37

  
	
  Section 512.

  	
   

  	
  Control by Holders

  	
   

  	
  37

  
	
  Section 513.

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  37

  
	
  Section 514.

  	
   

  	
  Undertaking for Costs

  	
   

  	
  37

  
	
  Section 515.

  	
   

  	
  Waiver of Usury, Stay or Extension Laws

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 601.

  	
   

  	
  Certain Duties and Responsibilities

  	
   

  	
  38

  
	
  Section 602.

  	
   

  	
  Notice of Defaults

  	
   

  	
  38

  

 

 iii
 

 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  Section 603.

  	
   

  	
  Certain Rights of Trustee

  	
   

  	
  38

  
	
  Section 604.

  	
   

  	
  Not Responsible for Recitals or Issuance of
  Securities

  	
   

  	
  40

  
	
  Section 605.

  	
   

  	
  May Hold Securities

  	
   

  	
  40

  
	
  Section 606.

  	
   

  	
  Money Held in Trust

  	
   

  	
  40

  
	
  Section 607.

  	
   

  	
  Compensation and Reimbursement

  	
   

  	
  40

  
	
  Section 608.

  	
   

  	
  Disqualification; Conflicting Interests

  	
   

  	
  41

  
	
  Section 609.

  	
   

  	
  Corporate Trustee Required; Eligibility

  	
   

  	
  41

  
	
  Section 610.

  	
   

  	
  Resignation and Removal; Appointment of Successor

  	
   

  	
  42

  
	
  Section 611.

  	
   

  	
  Acceptance of Appointment by Successor

  	
   

  	
  43

  
	
  Section 612.

  	
   

  	
  Merger, Conversion, Consolidation or Succession to
  Business

  	
   

  	
  44

  
	
  Section 613.

  	
   

  	
  Preferential Collection of Claims Against Issuer

  	
   

  	
  44

  
	
  Section 614.

  	
   

  	
  Appointment of Authenticating Agent

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HOLDERS’ LISTS
  AND REPORTS BY TRUSTEE, ISSUER AND GUARANTOR

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 701.

  	
   

  	
  Issuer and Guarantor to Furnish Trustee Names and
  Addresses of Holders

  	
   

  	
  46

  
	
  Section 702.

  	
   

  	
  Preservation of Information; Communications to
  Holders

  	
   

  	
  46

  
	
  Section 703.

  	
   

  	
  Reports by Trustee

  	
   

  	
  46

  
	
  Section 704.

  	
   

  	
  Reports by Issuer and Guarantor

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 801.

  	
   

  	
  Issuer May Consolidate, Etc., Only on Certain Terms

  	
   

  	
  47

  
	
  Section 802.

  	
   

  	
  Successor Substituted

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL
  INDENTURES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 901.

  	
   

  	
  Supplemental Indentures Without Consent of Holders

  	
   

  	
  48

  
	
  Section 902.

  	
   

  	
  Supplemental Indentures With Consent of Holders

  	
   

  	
  50

  
	
  Section 903.

  	
   

  	
  Execution of Supplemental Indentures

  	
   

  	
  51

  
	
  Section 904.

  	
   

  	
  Effect of Supplemental Indentures

  	
   

  	
  51

  
	
  Section 905.

  	
   

  	
  Conformity with Trust Indenture Act

  	
   

  	
  51

  
	
  Section 906.

  	
   

  	
  Reference in Securities to Supplemental Indentures

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1001.

  	
   

  	
  Payment of Principal, Premium and Interest

  	
   

  	
  52

  
	
  Section 1002.

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
  52

  
	
  Section 1003.

  	
   

  	
  Money for Securities Payments to Be Held in Trust

  	
   

  	
  52

  
	
  Section 1004.

  	
   

  	
  Statement by Officers as to Default

  	
   

  	
  53

  
	
  Section 1005.

  	
   

  	
  Existence

  	
   

  	
  54

  

 

 iv
 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  Section 1006.

  	
   

  	
  Maintenance of Properties

  	
   

  	
  54

  
	
  Section 1007.

  	
   

  	
  Payment of Taxes and Other Claims

  	
   

  	
  54

  
	
  Section 1008.

  	
   

  	
  Insurance

  	
   

  	
  54

  
	
  Section 1009.

  	
   

  	
  Waiver of Certain Covenants

  	
   

  	
  55

  
	
  Section 1010.

  	
   

  	
  Calculation of Original Issue Discount

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION OF
  SECURITIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1101.

  	
   

  	
  Applicability of Article

  	
   

  	
  55

  
	
  Section 1102.

  	
   

  	
  Election to Redeem; Notice to Trustee

  	
   

  	
  55

  
	
  Section 1103.

  	
   

  	
  Selection by Trustee of Securities to Be Redeemed

  	
   

  	
  55

  
	
  Section 1104.

  	
   

  	
  Notice of Redemption

  	
   

  	
  56

  
	
  Section 1105.

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
  57

  
	
  Section 1106.

  	
   

  	
  Securities Payable on Redemption Date

  	
   

  	
  57

  
	
  Section 1107.

  	
   

  	
  Securities Redeemed in Part

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SINKING FUNDS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1201.

  	
   

  	
  Applicability of Article

  	
   

  	
  58

  
	
  Section 1202.

  	
   

  	
  Satisfaction of Sinking Fund Payments with
  Securities

  	
   

  	
  58

  
	
  Section 1203.

  	
   

  	
  Redemption of Securities for Sinking Fund

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFEASANCE AND
  COVENANT DEFEASANCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1301.

  	
   

  	
  Issuer’s Option to Effect Defeasance or Covenant
  Defeasance

  	
   

  	
  59

  
	
  Section 1302.

  	
   

  	
  Defeasance and Discharge

  	
   

  	
  59

  
	
  Section 1303.

  	
   

  	
  Covenant Defeasance

  	
   

  	
  59

  
	
  Section 1304.

  	
   

  	
  Conditions to Defeasance or Covenant Defeasance

  	
   

  	
  60

  
	
  Section 1305.

  	
   

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

  	
   

  	
  61

  
	
  Section 1306.

  	
   

  	
  Reinstatement

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FOURTEEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GUARANTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1401.

  	
   

  	
  The Guarantee

  	
   

  	
  62

  

 

 v

 

INDENTURE, dated as of November 20, 2006, among
Vornado Realty Trust, a Maryland real estate investment trust (herein called
the “Issuer”), having its principal office at 888 Seventh Avenue, New York, New
York 10019, Vornado Realty L.P., a Delaware limited partnership duly organized
and existing under the laws of the State of Delaware (herein called the “Guarantor”),
and managed by the Issuer as its general partner, having its principal office
at 888 Seventh Avenue, New York, New York 10019, and The Bank of New York, a
New York banking corporation, as Trustee (herein called the “Trustee”).

Recitals of the Issuer and the Guarantor

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

The Guarantor, through the Issuer, has duly authorized
the execution and delivery of this Indenture to provide for the guarantee time
to time of the Issuer’s Securities (herein called the “Guarantee”).

All things necessary to make this Indenture a valid
agreement of the Issuer and the Guarantor, in accordance with its terms, have
been done.

Now, Therefore, This
Indenture Witnesseth:

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

ARTICLE One

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

SECTION 101.  Definitions.

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

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

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

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

 

such accounting principles as are generally
accepted in the United States of America at the date of such computation;

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

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

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

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

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

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

“Board of Trustees” means either the board of trustees
of Vornado Realty Trust or any duly authorized committee of that board.

“Board Resolution” means a copy of a resolution
certified by the Secretary or an Assistant Secretary of the Issuer to have been
duly adopted by the Board of Trustees and to be in full force and effect on the
date of such certification, and delivered to the Trustee.

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

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

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

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

 2
 

 

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

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

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

“Defeasance” has the meaning specified in
Section 1302.

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

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

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

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

“Guarantee” means the unconditional guarantee of the
payment of the principal of, or any premium or interest on, the Guaranteed
Securities by the Guarantor, as more fully set forth in Article Fourteen.

“Guaranteed Securities” means a series of Securities
made subject to a Guarantee (as set forth in Article Fourteen) pursuant to
Section 301.

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

“Guarantor’s Board Resolution” means a copy of a
resolution certified by the Secretary or an Assistant Secretary of Vornado
Realty Trust to have been duly adopted by the Board of Trustees as general
partner of the Guarantor, and to be in full force and effect on the date of
such certification, and delivered to the Trustee.

“Guarantor’s Officers’ Certificate” means a
certificate any two Officers or by any Officer and an Assistant Treasurer or an
Assistant Secretary of Vornado Realty Trust or any Person designated by an Officer
in writing as authorized to execute and deliver such certificate, and delivered
to the Trustee.  One of the Officers
signing an Officers’ Certificate given pursuant to Section 1004 shall be
the principal executive, financial or accounting officer of Vornado Realty
Trust.

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

 3
 

 

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

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

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

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

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

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

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

“Issuer Request” or “Issuer Order” means a written
request or order signed in the name of the Issuer by the Chairman of the Board,
the Vice Chairman of the Board, the President or a Vice President, and by the
Treasurer, an Assistant Treasurer, the Controller, the Secretary or an
Assistant Secretary of the Issuer and delivered to the Trustee.

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

“Notice of Default” means a written notice of the kind
specified in Section 501(4) or 501(5).

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

“Officers’ Certificate” means a certificate signed by
any two Officers or by any Officer and an Assistant Treasurer or an Assistant
Secretary of Vornado Realty Trust or any Person designated by an Officer in
writing as authorized to execute and deliver such certificate, and delivered to
the Trustee.  One of the Officers signing
an Officers’ Certificate given pursuant to Section 1004 shall be the
principal executive, financial or accounting officer of Vornado Realty Trust.

 4
 

 

“Opinion of Counsel” means a written opinion of
counsel, who may be counsel for the Issuer or the Guarantor, as the case may
be.

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

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

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

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

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

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

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

 5
 

 

the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Issuer, the Guarantor or any other
obligor upon the Securities or any Affiliate of the Issuer, the Guarantor or of
such other obligor.

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

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

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

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

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

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

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

“Responsible Officer”, when used with respect to the
Trustee, means any vice president, any assistant treasurer, any trust officer
or assistant trust officer or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.

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

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

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

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

 6
 

 

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

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

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

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

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

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

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

SECTION 102.  Compliance
Certificates and Opinions.

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

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

 7
 

 

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

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

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

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

SECTION 103.  Form of
Documents Delivered to Trustee.

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

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

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

SECTION 104.  Acts of
Holders; Record Dates.

Any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee and, where it is hereby expressly required, to the
Issuer and to the Guarantor. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or 

 8
 

 

instruments. Proof of execution of any such instrument
or of a writing appointing any such agent shall be sufficient for any purpose
of this Indenture and (subject to Section 601) conclusive in favor of the
Trustee and the Issuer and the Guarantor if made in the manner provided in this
Section.

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

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

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

The Issuer may, in the circumstances permitted by the
Trust Indenture Act, set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series, provided that the
Issuer may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders
remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this paragraph shall be construed to
prevent the Issuer from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Securities of the relevant series on the date
such action is taken. Promptly after any record date is set pursuant to this
paragraph, the Issuer, at its own expense, shall cause notice of such record
date, the proposed action by Holders and the applicable Expiration Date to be
given to the Trustee in writing and to each Holder of Securities of the
relevant series in the manner set forth in Section 106.

The Trustee may set any day as a record date for the
purpose of determining the Holders of Outstanding Securities of any series
entitled to join in the giving or making of (i) any Notice of Default, (ii) any
declaration of acceleration referred to in Section 502, (iii) any
request to institute proceedings referred to in Section 507(2) or
(iv) any direction referred to in Section 512, in each 

 9
 

 

case with respect to Securities of such series. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of such series on such record date, and no other Holders, shall be
entitled to join in such notice, declaration, request or direction, whether or
not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. Nothing in this paragraph shall
be construed to prevent the Trustee from setting a new record date for any
action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be cancelled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Trustee, at the Issuer’s expense, shall cause
notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Issuer in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106.

With respect to any record date set pursuant to this
Section, the party hereto which sets such record dates may designate any day as
the “Expiration Date” and from time to time may change the Expiration Date to
any earlier or later day; provided that no such change shall be effective
unless notice of the proposed new Expiration Date is given to the other party
hereto in writing, and to each Holder of Securities of the relevant series in
the manner set forth in Section 106, on or prior to the existing
Expiration Date. If an Expiration Date is not designated with respect to any
record date set pursuant to this Section, the party hereto which set such record
date shall be deemed to have initially designated the 180th day after such
record date as the Expiration Date with respect thereto, subject to its right
to change the Expiration Date as provided in this paragraph. Notwithstanding
the foregoing, no Expiration Date shall be later than the 180th day after the
applicable record date.

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

SECTION 105.  Notices, Etc.,
to Trustee, Issuer and the Guarantor.

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

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

(2)           the Issuer or the Guarantor by the
Trustee or by any Holder shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Issuer or the Guarantor, as the case may
be, addressed to it at the address of its principal office specified in the
first paragraph of this instrument, Attention: Joseph Macnow, Executive Vice
President–

 10
 

 

Finance and Administration, Chief Financial
Officer, or at any other address previously furnished in writing to the Trustee
by the Issuer or the Guarantor, as the case may be.

SECTION 106.  Notice to
Holders; Waiver.

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

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

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

SECTION 107.  Conflict with
Trust Indenture Act.

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

SECTION 108.  Effect of
Headings and Table of Contents.

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

SECTION 109.  Successors
and Assigns.

All covenants and agreements in this Indenture by the
Issuer or the Guarantor, as the case may be, shall bind its successors and
assigns, whether so expressed or not.

 11

 

SECTION 110.  Separability
Clause.

In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

SECTION 111.  Benefits of
Indenture.

Nothing in this Indenture or in the Securities,
express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder and the Holders, any benefit or any legal or
equitable right, remedy or claim under this Indenture.

SECTION 112.  Governing
Law.

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

SECTION 113.  Legal
Holidays.

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

SECTION 114.  Limited
Liability; Immunity of Shareholders, Partners, Trustees, Officers and Agents of
the Issuer and the Guarantor.

Notwithstanding any other provision of this Indenture
or of the Securities of any series or of the Guarantees to the contrary, no
recourse shall be had, whether by levy or execution or otherwise, for the
payment of any sums due under any Security, including, without limitation, the
principal of, premium, if any, or interest payable under any Security, or for
the payment or performance of any obligation, covenant or agreement under, or
for any claim based on, this Indenture or any Security or otherwise in respect
of this Indenture or any Security, against (i) the Issuer, the Issuer’s
assets or against any principal, shareholder, member, officer, director,
trustee or employee of the Issuer or any successor, or (ii) the Guarantor,
any partner of the Guarantor, whether limited or general, including Vornado
Realty Trust, as general partner, or any successor of any such partner or any
such partner’s or successor’s assets or against any principal, shareholder,
member, officer, director, trustee or employee of any such partner or
successor, under any rule of law, statute or constitution, or by the
enforcement of any assessment or penalty or by any legal or equitable
proceeding or otherwise, nor shall any of such parties be personally liable for
any such amounts, obligations or claims, or liable for any deficiency judgment
based thereon or with respect thereto, it being expressly understood that the
sole remedies hereunder or under any other document with respect to the
Securities against such parties with respect to such 

 12
 

 

amounts, obligations or claims shall be against the
Issuer or, in the case of a Guarantee thereof, the Guarantor, as the case may
be, and that all such liability of such parties is and is to be, by the
acceptance hereof, expressly waived and released as a condition of, and as
consideration for, the execution of this Indenture and by the acceptance of the
Securities and, if applicable, the Guarantees, by the Holders and as part of
the consideration for the issue of the Securities.

ARTICLE Two

SECURITY FORMS

SECTION 201.  Forms
Generally.

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

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

SECTION 202.  Form of Face
of Security.

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

Vornado Realty Trust

	
  No.
                     

  	
  $              

  

 

CUSIP No.                                  

VORNADO REALTY TRUST, a real estate investment trust
duly organized and existing under the laws of the State of Maryland (herein
called the “Company”, which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to                                    ,
or registered assigns, the principal sum of              
Dollars on                                                           
[if this Security is to
bear interest prior to Maturity, insert – , and to pay interest
thereon from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semi-annually on                
and                
in each year, commencing                               
and at the Maturity thereof, at the rate of [      %] per annum, until the 

 13
 

 

principal hereof is paid or made available for
payment, [if applicable, insert –
provided that any principal and premium, and any such instalment of interest,
which is overdue shall bear interest at the rate of [       %] per annum (to the extent that the payment of such interest
shall be legally enforceable), from the dates such amounts are due until they
are paid or made available for payment, and such interest shall be payable on
demand]. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be the              
or              
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest so payable, but not punctually paid or
duly provided for, on any Interest Payment Date will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture.]

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

[If applicable, insert - This Security is a Guaranteed Security within the meaning
of the Indenture.]

Payment of the principal of (and premium, if any) and [if applicable, insert
- any such] interest on this
Security will be made at the office or agency of the Company maintained for
that purpose in New York, New York, in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts, against surrender of this Security in the case of any
payment due at the Maturity of the principal hereof (other than any payment of
interest that first becomes payable on a day other than an Interest Payment
Date); provided, however,
that at the option of the Company payment of interest may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register; and provided, further,
that if this Security is a Global Security, payment may be made pursuant to the
Applicable Procedures of the Depositary as permitted in said Indenture.

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

Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof by manual
signature, this Security shall not be entitled to any benefit under the
Indenture or [if applicable, insert - the Guarantee of the Guarantor (as defined on the reverse
hereof) or] be valid or obligatory for any purpose.

 14
 

 

In Witness Whereof,
the Company has caused this instrument to be duly executed under seal.

	
   

  	
  VORNADO REALTY TRUST

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 

SECTION 203.  Form of
Reverse of Security.

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

[If
applicable, insert  - The Securities of
this series are subject to redemption upon not less than 30 days’ nor more than
60 days’ notice by mail, [if applicable, insert  -
(1) on              
in any year commencing with the year                      
and ending with the year                      
through operation of the sinking fund for this series at a Redemption Price
equal to 100% of the principal amount, and (2)]
at any time [if applicable,
insert  - on or after              ,
20  ], as a whole or in part, at the
election of the Company, at the following Redemption Prices (expressed as
percentages of the principal amount): If redeemed during the 12-month period
beginning          
of the years indicated, 

 15
 

 

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

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

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

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

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

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

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company, the Guarantor and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time 

 16
 

 

by the Company, the Guarantor and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains
provisions (i) permitting the Holders of not less than a majority in
principal amount of the Securities of any series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company or the Guarantor, as the case may be, with certain provisions of
the Indenture with respect to such series and (ii) permitting the Holders
of a majority in principal amount of the Securities at the time Outstanding of
any series to be affected under the Indenture (with each such series considered
separately for this purpose), on behalf of the Holders of all Securities of
such series, to waive certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall
be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

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

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

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

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

 17
 

 

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

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

[If applicable, insert - This Security is [not] a Guaranteed Security within the
meaning of, and [is not] subject to the provisions applicable to Vornado Realty
L.P., as Guarantor [thereof] contained in, the Indenture. [Reference is made to
Article Fourteen of the Indenture and to the Guarantee endorsed on this
Security for a statement of the respective rights, duties and obligations
thereunder of the Guarantor, the Trustee and the Holders.]]

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

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

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

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

SECTION 204.  Form of Legend
for Global Securities.

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

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

SECTION 205.  Form of
Guarantee.

If the Securities of any series are entitled to the
benefits of Article Fourteen of this Indenture, there shall be endorsed on such
Security a guarantee in substantially the following form, or in such other form
as shall be established by or pursuant to a Board Resolution or in or 

 18
 

 

more indentures supplemental hereto, in each case with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture:

FORM OF
GUARANTEE

For value received, the
undersigned hereby fully and unconditionally guarantees to the Holder of this
Security the cash payments in United States dollars of principal of and
interest on this Security in the amounts and at the time when due and interest
on the overdue principal and interest, if any, on this Security, if lawful, and
the payment of all other obligations of the Company under the Indenture or the
Security, to the Holder of this Security and the Trustee, all in accordance
with and subject to the terms and limitations of this Security, Article
Fourteen of the Indenture and this Guarantee. This Guarantee will become
effective in accordance with Article Fourteen of the Indenture and its terms
shall be evidenced therein. The validity and enforceability of any Guarantee
shall not be affected by the fact that it is not affixed to any particular
Security. Capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Indenture, dated as of               
     ,          ,
by and among the Company, the undersigned and The Bank of New York, as Trustee,
as amended or supplemented (the “Indenture”).

The obligations of the undersigned
to the Holders of this Security and to the Trustee pursuant to the Guarantee
and the Indenture are expressly set forth in Article Fourteen of the Indenture
and reference is hereby made to the Indenture for the precise terms of the
Guarantee and all of the other provisions of the Indenture to which this
Guarantee relates.

THIS GUARANTEE WILL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

This Guarantee is subject to
release upon the terms set forth in the Indenture.

IN WITNESS WHEREOF, the
undersigned Guarantor has caused this Guarantee to be duly executed.

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  VORNADO REALTY L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  VORNADO REALTY TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 19
 

 

SECTION 206.  Form of Trustee’s Certificate of Authentication.

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

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

	
  

  	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK,

  
	
   

  	
  As
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

ARTICLE
Three

THE SECURITIES

SECTION 301.  Amount
Unlimited; Issuable in Series.

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

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

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

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

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

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

 20
 

 

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

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

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

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

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

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

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

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

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

(14)         if
the principal amount payable at the Stated Maturity of any Securities of the
series will not be determinable as of any one or more dates prior to the Stated

 21
 

 

Maturity, the amount which shall be deemed to be the principal amount
of such Securities as of any such date for any purpose thereunder or hereunder,
including the principal amount thereof which shall be due and payable upon any
Maturity other than the Stated Maturity or which shall be deemed to be
Outstanding as of any date prior to the Stated Maturity (or, in any such case,
the manner in which such amount deemed to be the principal amount shall be
determined);

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

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

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

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

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

(20)         if
the Securities of the series are to be Guaranteed Securities; and

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

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

If any of the terms of
the series are established by action taken pursuant to a Board Resolution or,
if applicable, a Guarantor’s Board Resolution, a copy of an appropriate record
of such action shall be certified by the Secretary or an Assistant Secretary of
the Issuer on behalf of 

 22
 

 

the Issuer or Vornado
Realty Trust, on behalf of the Guarantor, as the case may be, and delivered to
the Trustee at or prior to the delivery of the Officers’ Certificate or
Guarantor’s Officers’ Certificate setting forth the terms of the series.

SECTION 302.  Denominations.

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

SECTION 303.  Execution, Authentication, Delivery and
Dating.

The Securities shall be
executed on behalf of the Issuer by the Chairman of the Board, the Vice
Chairman of the Board, the President or one of the Vice Presidents, under the trust
seal reproduced thereon attested by the Secretary, one of the Assistant
Secretaries or other authorized Person of the Issuer, and if such Securities
are Guaranteed Securities, on behalf of the Guarantor by Vornado Realty Trust,
as general partner of the Guarantor, by the Chairman of the Board, the Vice
Chairman of the Board, the President or one of the Vice Presidents, under the
trust seal of Vornado Realty Trust reproduced thereon attested by the
Secretary, one of the Assistant Secretaries or other authorized Person of the
Issuer. The signature of any of these officers on the Securities may be manual
or facsimile.

Securities bearing the
manual or facsimile signatures of individuals who were at any time the proper
officers of the Issuer or Vornado Realty Trust shall bind the Issuer or the
Guarantor, as the case may be, notwithstanding that such individuals or any of
them have ceased to hold such offices prior to the authentication and delivery
of such Securities or did not hold such offices at the date of such Securities.

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

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

(2)           if
the terms of such Securities have been established by or pursuant to a Board
Resolution and, if such Securities are Guaranteed Securities, and the terms
thereof have been established by or pursuant to a Guarantor’s Board Resolution,
as permitted by 

 23
 

 

Section 301, that such terms have been established in conformity
with the provisions of this Indenture;

(3)           that
such Securities, when authenticated and delivered by the Trustee and issued by
the Issuer in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of
the Issuer, enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general
equity principles; and

(4)           that
such Guarantees, when the Securities upon which they shall have been endorsed
shall have been authenticated and delivered by the Trustee and issued by the
Issuer in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and legally binding obligations of the Guarantor
enforceable in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles.

If such form or terms
have been so established, the Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will
affect the Trustee’s own rights, duties or immunities under the Securities and
this Indenture or otherwise in a manner which is not reasonably acceptable to
the Trustee.

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

Each Security shall be
dated the date of its authentication.

No Security or Guarantee
endorsed thereon shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Notwithstanding
the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Issuer, and the Issuer shall deliver
such Security to the Trustee for cancellation as provided in Section 309,
for all purposes of this Indenture such Security shall be deemed never to have
been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

SECTION 304.  Temporary Securities.

Pending the preparation
of definitive Securities of any series, the Issuer and the Guarantor, if such
Securities are Guaranteed Securities, may execute, and upon Issuer Order the 

 24
 

 

Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu
of which they are issued, and, if applicable, having endorsed thereon the
Guarantees duly executed by the Guarantor substantially of the tenor of the
definitive Guarantees and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities
may determine, as evidenced by their execution of such Securities and, if
applicable, the Guarantees.

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

SECTION 305.  Registration, Registration of Transfer and
Exchange.

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

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

At the option of the
Holder, Securities of any series may be exchanged for other Securities of the
same series, of any authorized denominations and of like tenor and aggregate
principal amount, upon surrender of the Securities to be exchanged at such
office or agency. Whenever any Securities are so surrendered for exchange, the
Issuer and Guarantor, if such Securities are Guaranteed Securities, shall
execute, and the Trustee shall authenticate and deliver, the Securities which
the Holder making the exchange is entitled to receive.

All Securities issued
upon any registration of transfer or exchange of Securities shall be the valid
obligations of the Issuer and the Guarantor, if such Securities are Guaranteed
Securities, respectively, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange.

 25

 

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

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

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

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

(1)           Each Global Security authenticated
under this Indenture shall be registered in the name of the Depositary
designated for such Global Security or a nominee thereof and delivered to such
Depositary or a nominee thereof or custodian therefor, and each such Global
Security shall constitute a single Security for all purposes of this Indenture.

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

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

(4)           Every Security authenticated and
delivered upon registration of transfer of, or in exchange for or in lieu of, a
Global Security or any portion thereof, whether pursuant to this Section,
Section 304, 306, 906 or 1107 or otherwise, shall be 

 26
 

 

authenticated and delivered in the form of,
and shall be, a Global Security, unless such Security is registered in the name
of a Person other than the Depositary for such Global Security or a nominee
thereof.

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

If any mutilated Security is surrendered to the
Trustee, the Issuer and the Guarantor, if such Securities are Guaranteed
Securities, shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new Security of the same series and of like tenor and
principal amount and, if applicable, a Guarantee endorsed thereon, and bearing
a number not contemporaneously outstanding.

If there shall be delivered to the Issuer, if
applicable, the Guarantor and the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security and
(ii) such security or indemnity as may be required by them to save each of
them and any agent of either of them harmless, then, in the absence of notice
to the Issuer or the Trustee that such Security has been acquired by a bona
fide purchaser, the Issuer and the Guarantor, if such Securities are Guaranteed
Securities, shall execute and the Trustee shall authenticate and deliver, in
lieu of any such destroyed, lost or stolen Security, a new Security of the same
series and of like tenor and principal amount and, if applicable, having a
Guarantee endorsed thereon, and bearing a number not contemporaneously
outstanding.

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

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

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

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

SECTION 307.  Payment of
Interest; Interest Rights Preserved.

Except as otherwise provided as contemplated by
Section 301 with respect to any series of Securities, interest on any
Security which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date 

 27
 

 

for such interest or, if no business is conducted by
the Trustee at its Corporate Trust Office on such date, at 5:00 P.M., New York
City time, on such date.

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

(1)           The Issuer may elect to make payment
of any Defaulted Interest to the Persons in whose names the Securities of such
series (or their respective Predecessor Securities) are registered at the close
of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Issuer shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each Security of such series and the date of the proposed payment, and at
the same time the Issuer shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to
be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this Clause provided. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest which shall be
not more than 15 days and not less than 10 days prior to the date of the
proposed payment and not less than 10 days after the receipt by the Trustee of
the notice of the proposed payment. The Trustee shall promptly notify the
Issuer of such Special Record Date and, in the name and at the expense of the
Issuer, shall cause notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor to be given to each Holder of Securities
of such series in the manner set forth in Section 106, not less than 10
days prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the Securities
of such series (or their respective Predecessor Securities) are registered at
the close of business on such Special Record Date and shall no longer be
payable pursuant to the following Clause (2).

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

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

Subject to the foregoing provisions of this Section,
each Security delivered under this Indenture upon registration of transfer of
or in exchange for or in lieu of any other Security shall 

 28
 

 

carry the rights to interest accrued and unpaid, and
to accrue, which were carried by such other Security.

SECTION 308.  Persons
Deemed Owners.

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

SECTION 309.  Cancellation.

All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and shall be promptly cancelled by it. The Issuer or
the Guarantor may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Issuer or
the Guarantor may have acquired in any manner whatsoever, and may deliver to
the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the Issuer
or the Guarantor has not issued and sold, and all Securities so delivered shall
be promptly cancelled by the Trustee. No Securities shall be authenticated in
lieu of or in exchange for any Securities cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled
Securities held by the Trustee shall be disposed of as directed by an Issuer
Order; provided, however, that the Trustee
shall not be required to destroy such cancelled Securities.

SECTION 310.  Computation
of Interest.

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

SECTION 311.  CUSIP
Numbers.

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

 29
 

 

ARTICLE
Four

SATISFACTION AND DISCHARGE

SECTION 401.  Satisfaction
and Discharge of Indenture.

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

(1)           either

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

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

(i)            have become due and payable, or

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

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

and the Issuer or the Guarantor, in the case of (i),
(ii) or (iii) above, has deposited or caused to be deposited with the Trustee
as trust funds in trust for the purpose money in an amount sufficient to pay
and discharge the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for principal and any premium and
interest to the date of such deposit (in the case of Securities which have
become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;

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

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

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Issuer and the Guarantor, if applicable, to
the Trustee under Section 607, the obligations of the 

 30
 

 

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

SECTION 402.  Application
of Trust Money.

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

ARTICLE
Five

REMEDIES

SECTION 501.  Events of
Default.

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

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

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

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

(4)           default in the performance, or
breach, of any covenant or warranty of the Issuer or the Guarantor (if any
Guaranteed Securities are Outstanding) in this Indenture (other than a covenant
or warranty a default in whose performance or whose breach is elsewhere in this
Section specifically dealt with or which has expressly been included in
this Indenture solely for the benefit of series of Securities other than that
series), and continuance of such default or breach for a period of 90 days
after there has been given, by registered or certified mail, to the Issuer and
the Guarantor by the Trustee or to the Issuer, the Guarantor, and the Trustee
by the Holders of at least 25% in principal amount of the Outstanding
Securities of that series a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of
Default” hereunder; or

(5)           a default under any bond, debenture,
note or other evidence of indebtedness for money borrowed by the Issuer
(including a default with respect to 

 31
 

 

Securities of any series other than that
series) having an aggregate principal amount outstanding of at least
$50,000,000, or under any mortgage, indenture or instrument (including this
Indenture) under which there may be issued or by which there may be secured or
evidenced any indebtedness for money borrowed by the Issuer having an aggregate
principal amount outstanding of at least $50,000,000, whether such indebtedness
now exists or shall hereafter be created, which default (A) shall
constitute a failure to pay any portion of the principal of such indebtedness
when due and payable after the expiration of any applicable grace period with
respect thereto or (B) shall have resulted in such indebtedness becoming
or being declared due and payable prior to the date on which it would otherwise
have become due and payable, without, in the case of Clause (A), such
indebtedness having been discharged or without, in the case of Clause (B),
such indebtedness having been discharged or such acceleration having been
rescinded or annulled, in each such case within a period of 10 days after there
shall have been given, by registered or certified mail, to the Issuer by the
Trustee or to the Issuer and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities of that series a written notice
specifying such default and requiring the Issuer to cause such indebtedness to
be discharged or cause such acceleration to be rescinded or annulled, as the
case may be, and stating that such notice is a “Notice of Default” hereunder; provided, however, that,
subject to the provisions of Sections 601 and 602, the Trustee shall not be
deemed to have knowledge of such default unless either (A) a Responsible
Officer of the Trustee shall have knowledge of such default or (B) the
Trustee shall have received written notice thereof from the Issuer, from any
Holder, from the holder of any such indebtedness or from the trustee under any
such mortgage, indenture or other instrument; or

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

(7)           the commencement by the Issuer or the
Guarantor (if any Guaranteed Securities are Outstanding) of a voluntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be
adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of the Issuer or the Guarantor (if any
Guaranteed Securities are Outstanding) in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State law, or
the consent by it to the filing of such petition or to 

 32
 

 

the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Issuer or the Guarantor (if any Guaranteed Securities
are Outstanding) or of any substantial part of its property, or the making by
it of an assignment for the benefit of creditors, or the admission by it in
writing of its inability to pay its debts generally as they become due, or the
taking of corporate action by the Issuer or the Guarantor (if any Guaranteed
Securities are Outstanding) in furtherance of any such action; or

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

SECTION 502.  Acceleration
of Maturity; Rescission and Annulment.

If an Event of Default (other than an Event of Default
specified in Section 501(6) or 501(7)) with respect to Securities of any
series at the time Outstanding occurs and is continuing, then in every such
case the Trustee, upon receipt of a request from the Holders of not less than
25% in principal amount of the Outstanding Securities of that series, shall, or
the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may, declare the principal amount of all the
Securities of that series (or, if any Securities of that series are Original
Issue Discount Securities, such portion of the principal amount of such
Securities as may be specified by the terms thereof) to be due and payable
immediately, by a notice in writing to the Issuer and the Guarantor (if any
Guaranteed Securities are Outstanding) (and to the Trustee if given by
Holders), and upon any such declaration such principal amount (or specified amount)
shall become immediately due and payable. If an Event of Default specified in
Section 501(6) or 501(7) with respect to Securities of any series at the
time Outstanding occurs, the principal amount of all the Securities of that
series (or, if any Securities of that series are Original Issue Discount
Securities, such portion of the principal amount of such Securities as may be
specified by the terms thereof) shall automatically, and without any
declaration or other action on the part of the Trustee or any Holder, become
immediately due and payable.

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

(1)           the Issuer or the Guarantor has paid
or deposited with the Trustee a sum sufficient to pay

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

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

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

 33
 

 

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

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

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

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

The Issuer covenants that if

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

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

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

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

SECTION 504.  Trustee May
File Proofs of Claim.

In case of any judicial proceeding relative to the
Issuer, the Guarantor (if any Guaranteed Securities are Outstanding) (or any
other obligor upon the Securities), their property or their creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any 

 34
 

 

amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the Trustee under Section 607.

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

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

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

SECTION 506.  Application of
Money Collected.

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

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

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

SECTION 507.  Limitation on
Suits.

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

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

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

 35
 

 

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

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

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

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

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

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

SECTION 509.  Restoration
of Rights and Remedies.

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

SECTION 510.  Rights and
Remedies Cumulative.

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

 36

 

SECTION 511.  Delay or
Omission Not Waiver.

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

SECTION 512.  Control by
Holders.

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

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

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

SECTION 513.  Waiver of
Past Defaults.

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

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

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

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

SECTION 514.  Undertaking
for Costs.

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

 37
 

 

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

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

ARTICLE
Six

THE TRUSTEE

SECTION 601.  Certain
Duties and Responsibilities.

The duties and responsibilities of the Trustee shall
be as provided by the Trust Indenture Act. Notwithstanding the foregoing, no
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it. Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section.

SECTION 602.  Notice of
Defaults.

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

SECTION 603.  Certain
Rights of Trustee.

Subject to the provisions of Section 601:

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

(2)           any
request or direction of the Issuer or Guarantor mentioned herein shall be
sufficiently evidenced by an Issuer Request or Issuer Order or Guarantor
Request or 

 38
 

 

Guarantor Order, as the case may be, and any resolution of the Board of
Trustees shall be sufficiently evidenced by a Board Resolution or Guarantor’s
Board Resolution, as applicable;

(3)           whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officers’
Certificate or, if such matter pertains to the Guarantor, a Guarantor’s
Officers’ Certificate;

(4)           the
Trustee may consult with counsel of its selection and the advice of such
counsel (to be confirmed in writing) or any Opinion of Counsel shall be full
and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

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

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

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

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

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

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

 39
 

 

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

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

SECTION 604.  Not Responsible for Recitals or Issuance of
Securities.

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

SECTION 605.  May Hold Securities.

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

SECTION 606.  Money Held in Trust.

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

SECTION 607.  Compensation and Reimbursement.

The Issuer agrees

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

(2)           except
as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or 

 40
 

 

made by the Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses and disbursements of
its agents and counsel), except any such expense, disbursement or advance as
may be attributable to its negligence or bad faith; and

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

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

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

SECTION 608.  Disqualification; Conflicting Interests.

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

SECTION 609.  Corporate Trustee Required; Eligibility.

There shall at all times
be one (and only one) Trustee hereunder with respect to the Securities of each
series, which may be Trustee hereunder for Securities of one or more other
series. Each Trustee shall be a Person that is eligible pursuant to the Trust
Indenture Act to act as such and has a combined capital and surplus of at least
$50,000,000. If any such Person publishes reports of condition at least
annually, pursuant to law or to the requirements of its supervising or
examining authority, then for the purposes of this Section and to the
extent permitted by the Trust Indenture Act, the combined capital and surplus
of such Person shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time the Trustee
with respect to the Securities of any series shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.

 41
 

 

SECTION 610.  Resignation and Removal;
Appointment of Successor.

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

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

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

If at any time:

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

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

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

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

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

If the Trustee shall
resign, be removed or become incapable of acting, or if a vacancy shall occur
in the office of Trustee for any cause, with respect to the Securities of one
or more series, the Issuer, by a Board Resolution, shall promptly appoint a
successor Trustee or Trustees with respect to the Securities of that or those
series (it being understood that any such successor Trustee may be appointed
with respect to the Securities of one or more or all of such series and that at
any time there shall be only one Trustee with respect to the Securities of any
particular series) and shall comply with the applicable requirements of
Section 611. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Issuer and the 

 42
 

 

retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 611,
become the successor Trustee with respect to the Securities of such series and
to that extent supersede the successor Trustee appointed by the Issuer. If no
successor Trustee with respect to the Securities of any series shall have been
so appointed by the Issuer or the Holders and accepted appointment in the
manner required by Section 611, any Holder who has been a bona fide Holder
of a Security of such series for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor Trustee with respect to the Securities of
such series.

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

SECTION 611.  Acceptance of Appointment by Successor.

In case of the
appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and
deliver to the Issuer, the Guarantor and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on the request of the
Issuer, the Guarantor or the successor Trustee, such retiring Trustee shall,
upon payment of its charges, execute and deliver an instrument transferring to
such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder.

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

 43
 

 

those series to which the
appointment of such successor Trustee relates; but, on request of the Issuer,
the Guarantor or any successor Trustee, such retiring Trustee shall duly
assign, transfer and deliver to such successor Trustee all property and money
held by such retiring Trustee hereunder with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates.

Upon request of any such
successor Trustee, the Issuer and the Guarantor shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts referred to in the first
or second preceding paragraph, as the case may be.

No successor Trustee shall
accept its appointment unless at the time of such acceptance such successor
Trustee shall be qualified and eligible under this Article.

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

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

SECTION 613.  Preferential Collection of Claims Against
Issuer.

If and when the Trustee
shall be or become a creditor of the Issuer (or any other obligor upon the
Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of claims against the Issuer (or any
such other obligor).

SECTION 614.  Appointment of Authenticating Agent.

The Trustee may appoint
an Authenticating Agent or Agents with respect to one or more series of
Securities which shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series issued upon original issue and upon
exchange, registration of transfer, or partial redemption thereof or pursuant
to Section 306, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes
as if authenticated by the Trustee hereunder. Wherever reference is made in
this Indenture to the authentication and delivery of Securities by the Trustee
or the Trustee’s certificate of authentication, such reference shall be deemed
to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Issuer and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by Federal or State
authority. If such 

 44
 

 

Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section.

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

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

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

If an appointment with
respect to one or more series is made pursuant to this Section, the Securities
of such series may have endorsed thereon, in addition to the Trustee’s
certificate of authentication, an alternative certificate of authentication in
the following form:

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

	
  

  	
  THE BANK OF NEW YORK,

  
	
   

  	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  ,

  
	
   

  	
   

  	
  As
  Authenticating Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  
						

 

 45
 

 

ARTICLE Seven

HOLDERS’ LISTS AND REPORTS BY TRUSTEE, ISSUER AND GUARANTOR

SECTION 701.  Issuer and Guarantor to Furnish Trustee Names
and Addresses of Holders.

The Issuer and the
Guarantor (with respect to Securities of each Series that are Guaranteed
Securities) will furnish or cause to be furnished to the Trustee

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

(2)           at
such other times as the Trustee may request in writing, within 30 days after
the receipt by the Issuer or the Guarantor (with respect to Securities of each Series
that are Guaranteed Securities) of any such request, a list of similar form and
content as of a date not more than 15 days prior to the time such list is
furnished,

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

SECTION 702.  Preservation of Information; Communications
to Holders.

The Trustee shall
preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders contained in the most recent list furnished to the Trustee
as provided in Section 701 and the names and addresses of Holders received
by the Trustee in its capacity as Security Registrar. The Trustee may destroy
any list furnished to it as provided in Section 701 upon receipt of a new
list so furnished.

The rights of Holders to
communicate with other Holders with respect to their rights under this
Indenture or under the Securities, and the corresponding rights and privileges
of the Trustee, shall be as provided by the Trust Indenture Act.

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

SECTION 703.  Reports by Trustee.

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

A copy of each such
report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the
Commission 

 46
 

 

and with the Issuer or
the Guarantor. The Issuer will promptly notify the Trustee when any Securities
are listed on any stock exchange.

SECTION 704.  Reports by Issuer and Guarantor.

The Issuer and, if
Guaranteed Securities are Outstanding, the Guarantor, will file with the
Trustee, within 15 days after it files the same with the Commission, copies of
the annual reports and of the information, documents and other reports that it
may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act. If the Issuer is not required to file
with the Commission information, documents or reports pursuant to either of
those sections of the Exchange Act, then it will file with the Trustee and the
Commission such reports, if any, as may be prescribed by the Commission at such
time. If the Guarantor, at a time that Guaranteed Securities are Outstanding,
is not required to file with the Commission information, documents or reports
pursuant to either of those sections of the Exchange Act, then it will file
with the Trustee and the Commission such reports, if any, as may be prescribed
by the Commission at such time.

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

ARTICLE Eight

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 801.  Issuer May Consolidate, Etc., Only on Certain
Terms.

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

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

 47

 

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

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

(4)           the Issuer has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and, if a supplemental
indenture is required in connection with such transaction, such supplemental
indenture comply with this Article and that all conditions precedent herein
provided for relating to such transaction have been complied with.

SECTION 802.  Successor
Substituted.

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

ARTICLE
Nine

SUPPLEMENTAL INDENTURES

SECTION 901.  Supplemental
Indentures Without Consent of Holders.

Without the consent of any Holders, the Issuer (when
authorized by a Board Resolution), the Guarantor (when authorized pursuant to a
Guarantor’s Board Resolution), and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:

(1)           to
evidence the succession of another Person to the Issuer or the Guarantor and
the assumption by any such successor of the covenants of the Issuer or the
Guarantor, as the case may be, contained herein and in the Securities; or

(2)           to
add to the covenants of the Issuer or the Guarantor, for the benefit of the
Holders of all or any series of Securities (and if such covenants are to be for
the benefit of less than all series of Securities, stating that such covenants
are expressly being 

 48
 

 

included solely for the benefit of such series) or to surrender any
right or power herein conferred upon the Issuer or the Guarantor; or

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

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

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

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

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

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

(9)           to
add Guarantees to the Securities of any series to which the Guarantees shall
not have already been attached; or

(10)         to
add to, change or eliminate any of the provisions of this Indenture to such
extent as shall be necessary to comply with the rules or regulations on any
securities exchange or automated quotation system on which any of the
Securities may be listed or traded; or

(11)         to
cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture,
provided that such action pursuant to this Clause (11) shall not adversely
affect the interests of the Holders of Securities of any series in any material
respect.

 49
 

 

SECTION 902. 
Supplemental Indentures With Consent of Holders.

With the consent of the
Holders of not less than a majority in principal amount of the Outstanding
Securities of each series affected by such supplemental indenture, by Act of
said Holders delivered to the Issuer, the Guarantor (if the Securities are
Guaranteed Securities) and the Trustee, the Issuer, when authorized by a Board
Resolution, the Guarantor (when authorized by a Guarantor’s Board Resolution),
and the Trustee may enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of modifying in any manner the
rights of the Holders of Securities of such series under this Indenture; provided, however, that
no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby,

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

(2)           reduce
the percentage in principal amount of the Outstanding Securities of any series,
the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver (of compliance with
certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or

(3)           modify
or affect in any manner adverse to the interests of the Holders of any Securities
the terms and conditions of the obligations of the Guarantor in respect of the
due and punctual payment of principal of, or any premium or interest on, or any
sinking fund requirements, with respect to Guaranteed Securities, or

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

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

 50
 

 

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

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

SECTION 903.  Execution of Supplemental Indentures.

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

SECTION 904.  Effect of Supplemental Indentures.

Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.

SECTION 905.  Conformity with Trust Indenture Act.

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

SECTION 906.  Reference in Securities to Supplemental
Indentures.

Securities of any series
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Issuer or the Guarantor shall so determine, new
Securities of any series so modified as to conform, in the opinion of the
Trustee and the Issuer or the Guarantor, to any such supplemental indenture may
be prepared and executed by the Issuer and the Guarantor, if such Securities
are Guaranteed Securities, the Guarantees of the Guarantor, if applicable, may
be duly endorsed thereon, and such Securities may be authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series.

 51
 

 

ARTICLE Ten

COVENANTS

SECTION 1001.  Payment of Principal, Premium and Interest.

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

SECTION 1002.  Maintenance of Office or Agency.

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

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

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

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

If the Issuer or the
Guarantor shall at any time act as its own Paying Agent with respect to any
series of Securities, it will, on or before each due date of the principal of
or any premium or interest on any of the Securities of that series, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay the principal and any premium and interest so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure
so to act.

 52
 

 

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

The Issuer or the
Guarantor, as the case may be, will cause each Paying Agent for any series of
Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section, that such Paying Agent will (1) comply
with the provisions of the Trust Indenture Act applicable to it as a Paying
Agent and (2) during the continuance of any default by the Issuer (or any
other obligor upon the Securities of that series) in the making of any payment
in respect of the Securities of that series, upon the written request of the
Trustee, forthwith pay to the Trustee all sums held in trust by such Paying
Agent for payment in respect of the Securities of that series.

The Issuer or the
Guarantor, as the case may be, may at any time, for the purpose of obtaining
the satisfaction and discharge of this Indenture or for any other purpose, pay,
or by Issuer Order or Guarantor Order, as applicable, direct any Paying Agent
to pay, to the Trustee all sums held in trust by the Issuer or the Guarantor,
as the case may be, or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Issuer or
the Guarantor, as the case may be, or such Paying Agent; and, upon such payment
by any Paying Agent to the Trustee, such Paying Agent shall be released from
all further liability with respect to such money.

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

SECTION 1004.  Statement by Officers as to Default.

The Issuer and the
Guarantor, in the event Guaranteed Securities are Outstanding, will deliver to
the Trustee, within 120 days after the end of each fiscal year of the Issuer or
the Guarantor, as the case may be, ending after the date hereof, an Officers’
Certificate or 

 53
 

 

Guarantor’s Officers’
Certificate, as applicable, stating whether or not to the best knowledge of the
signers thereof the Issuer or the Guarantor, as the case may be, 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 Issuer or the Guarantor
shall be in default, specifying all such defaults and the nature and status
thereof of which they may have knowledge.

SECTION 1005.  Existence.

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

SECTION 1006.  Maintenance of Properties.

The Issuer will cause all
properties used or useful in the conduct of its business or the business of any
Subsidiary to be maintained and kept in good condition, repair and working
order and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Issuer 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
Issuer from discontinuing the operation or maintenance of any of such
properties if such discontinuance is, in the judgment of the Issuer, desirable
in the conduct of its business or the business of any Subsidiary and not
disadvantageous in any material respect to the Holders of Outstanding Securities.

SECTION 1007.  Payment of Taxes and Other Claims.

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

SECTION 1008.  Insurance.

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

 54
 

 

SECTION 1009.  Waiver of Certain
Covenants.

Except as otherwise
specified as contemplated by Section 301 for Securities of a specific
series, the Issuer and the Guarantor, as the case may be, may, with respect to
the Securities of any series, omit in any particular instance to comply with
any term, provision or condition set forth in any covenant provided pursuant to
Section 301(18), 901(2) or 901(7) for the benefit of the Holders of such
series, in Article Eight, or in any of Sections 1005 through 1008, inclusive,
if before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding Securities of such series shall, by Act of
such Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of the Issuer or the Guarantor and the duties of the Trustee in
respect of any such term, provision or condition shall remain in full force and
effect.

SECTION 1010.  Calculation of Original Issue Discount.

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

ARTICLE Eleven

REDEMPTION OF SECURITIES

SECTION 1101.  Applicability of Article.

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

SECTION 1102.  Election to Redeem; Notice to Trustee.

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

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

If less than all the
Securities of any series are to be redeemed (unless all the Securities of such
series and of a specified tenor are to be redeemed or unless such redemption
affects only a 

 55
 

 

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

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

The provisions of the two
preceding paragraphs shall not apply with respect to any redemption affecting
only a single Security, whether such Security is to be redeemed in whole or in
part. In the case of any such redemption in part, the unredeemed portion of the
principal amount of the Security shall be in an authorized denomination (which
shall not be less than the minimum authorized denomination) for such Security.

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

SECTION 1104.  Notice of Redemption.

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

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

(1)           the
Redemption Date,

(2)           the
Redemption Price,

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

 56

 

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

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

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

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

SECTION 1105.  Deposit of Redemption Price.

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

SECTION 1106.  Securities Payable on Redemption Date.

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

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

SECTION 1107.  Securities Redeemed in Part.

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

 57
 

 

requested by such
Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

ARTICLE
Twelve

SINKING FUNDS

SECTION 1201.  Applicability of Article.

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

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

SECTION 1202.  Satisfaction of Sinking Fund Payments with
Securities.

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

SECTION 1203.  Redemption of Securities for Sinking Fund.

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

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ARTICLE Thirteen

DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1301.  Issuer’s Option to Effect Defeasance or
Covenant Defeasance.

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

SECTION 1302.  Defeasance and Discharge.

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

SECTION 1303.  Covenant Defeasance.

Upon the Issuer’s
exercise of its option (if any) to have this Section applied to any
applicable series of Securities or any Securities of such series, as the case
may be, (1) each of the Issuer and the Guarantor (with respect to
Guaranteed Securities) shall be released from its obligations under Section 801(3),
Sections 1005 through 1008, inclusive, and any covenants provided pursuant to
Section 301(18), 901(2) or 901(7) for the benefit of the Holders of such
Securities and (2) the occurrence of any event specified in Sections
501(4) (with respect to any of Section 801(3), Sections 1005 through 1008,
inclusive, and any such covenants provided pursuant to Section 301(18),
901(2) or 901(7)), 501(5) and 501(8) shall be deemed not to be or result in an
Event of Default, in each case with respect to such Securities as provided in
this Section on and after the date the conditions set forth in
Section 1304 are satisfied (hereinafter called “Covenant 

 59
 

 

Defeasance”). For this
purpose, such Covenant Defeasance means that, with respect to such Securities,
the Issuer and the Guarantor may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
specified Section (to the extent so specified in the case of
Section 501(4)), whether directly or indirectly by reason of any reference
elsewhere herein to any such Section or by reason of any reference in any
such Section to any other provision herein or in any other document, but
the remainder of this Indenture and such Securities shall be unaffected
thereby.

SECTION 1304.  Conditions to Defeasance or Covenant
Defeasance.

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

(1)           The
Issuer shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee which satisfies the requirements contemplated by
Section 609 and agrees to comply with the provisions of this Article
applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefits of the Holders of such Securities, (A) money in an
amount, or (B) U.S. Government Obligations which through the scheduled
payment of principal and interest in respect thereof in accordance with their
terms will provide, not later than one day before the due date of any payment,
money in an amount, or (C) a combination thereof, in each case sufficient,
in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the Trustee (or
any such other qualifying trustee) to pay and discharge, the principal of and any
premium and interest on such Securities on the respective Stated Maturities, in
accordance with the terms of this Indenture and such Securities. As used
herein, “U.S. Government Obligation” means (x) any security which is
(i) a direct obligation of the United States of America for the payment of
which the full faith and credit of the United States of America is pledged or
(ii) an obligation of a Person controlled or supervised by and acting as
an agency or instrumentality of the United States of America the payment of
which is unconditionally guaranteed as a full faith and credit obligation by
the United States of America, which, in either case (i) or (ii), is not
callable or redeemable at the option of the issuer thereof, and (y) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any U.S. Government Obligation
which is specified in Clause (x) above and held by such bank for the
account of the holder of such depositary receipt, or with respect to any
specific payment of principal of or interest on any U.S. Government Obligation
which is so specified and held, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depositary receipt from any amount received by the custodian in
respect of the U.S. Government Obligation or the specific payment of principal
or interest evidenced by such depositary receipt.

(2)           In
the event of an election to have Section 1302 apply to any applicable
series of Securities or any Securities of such series, as the case may be, the
Issuer shall have delivered to the Trustee an Opinion of Counsel stating that
(A) the Issuer has received from, or there has been published by, the Internal
Revenue Service a ruling or (B) since the date of this instrument, there
has been a change in the applicable Federal 

 60
 

 

income tax law, in either case (A) or (B) to the effect that, and
based thereon such opinion shall confirm that, the Holders of such Securities
will not recognize gain or loss for Federal income tax purposes as a result of
the deposit, Defeasance and discharge to be effected with respect to such
Securities and will be subject to Federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit,
Defeasance and discharge were not to occur.

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

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

(5)           No
event which is, or after notice or lapse of time or both would become, an Event
of Default with respect to such Securities or any other Securities shall have
occurred and be continuing at the time of such deposit or, with regard to any
such event specified in Sections 501(6) and (7), at any time on or prior to the
90th day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until after such 90th day).

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

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

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

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

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

Subject to the provisions
of the last paragraph of Section 1003, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee or
other 

 61
 

 

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

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

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

SECTION 1306.  Reinstatement.

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

ARTICLE
Fourteen

GUARANTEE

SECTION 1401.  The Guarantee

The Guarantee set forth
in this Article Fourteen shall only be in effect with respect to Securities of
a series to the extent such Guarantee is made applicable to such series in
accordance with Section 301. The Guarantor hereby unconditionally
guarantees to each Holder of a Guaranteed Security authenticated and delivered
by the Trustee the due and punctual payment of the principal of, any premium
and interest on, such Guaranteed Security, whether at Stated Maturity, by
acceleration, redemption, repayment or otherwise, in accordance with the terms
of such Guaranteed Security and this Indenture. In case of the failure of the
Issuer punctually to pay 

 62
 

 

any such principal, premium,
interest or any additional amounts, the Guarantor hereby agrees to cause any
such payment to be made punctually when and as the same shall become due and
payable, whether at Stated Maturity, upon acceleration, redemption, repayment
or otherwise, and as if such payment were made by the Issuer.

The Guarantor hereby
agrees that its obligations hereunder shall be as principal and not merely as
surety, and shall be absolute, irrevocable and unconditional, irrespective of,
and shall be unaffected by, any invalidity, irregularity or unenforceability of
any Guaranteed Security or this Indenture, any failure to enforce the
provisions of any Guaranteed Security or this Indenture, or any waiver,
modification, consent or indulgence granted with respect thereto by the Holder
of such Guaranteed Security or the Trustee, the recovery of any judgment
against the Issuer or any action to enforce the same, or any other
circumstances which may otherwise constitute a legal or equitable discharge of
a surety or guarantor; provided, however, that, notwithstanding the foregoing, no such
waiver, modification or indulgence shall, without the consent of the Guarantor,
increase the principal amount of such Security or the interest rate thereon or
impose or increase any premium payable upon redemption thereof. The Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with
a court in the event of merger, insolvency or bankruptcy of the Issuer, any
right to require a proceeding first against the Issuer, protest or notice with
respect to any such Guaranteed Security or the Indebtedness evidenced thereby
and all demands whatsoever, and covenants that this Guarantee will not be
discharged except by payment in full of the principal of, any premium and
interest on, and any additional amounts required with respect to, the
Guaranteed Securities and the complete performance of all other payment
obligations contained in the Guaranteed Securities.

This Guarantee shall
continue to be effective or be reinstated, as the case may be, if at any time
payment on any Guaranteed Security, in whole or in part, is rescinded or must
otherwise be repaid to the Issuer or the Guarantor upon the bankruptcy,
liquidation or reorganization of the Issuer, the Guarantor or otherwise.

The Guarantor shall be
subrogated to all rights of the Holder of any Guaranteed Security against the
Issuer in respect of any amounts paid to such Holder by the Guarantor pursuant
to the provisions of this Guarantee; provided, however, that the Guarantor
shall not be entitled to enforce, or to receive any payments arising out of or
based upon, such right of subrogation until the principal of, any premium and
interest on, and any additional amounts required with respect to, all
Guaranteed Securities shall have been paid in full.

 63
 

 

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

IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed, and their
respective seals to be hereunto affixed and attested, all as of the day and
year first above written.

	
  

  	
  VORNADO REALTY TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan J. Rice

  	
   

  
	
   

  	
  Name: Alan J.
  Rice

  
	
   

  	
  Title:   Senior
  Vice President

  
	
  [seal]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  /s/ Jay C.
  Beckoff

  	
   

  	
   

  
	
  Jay C. Beckoff

  	
   

  
	
   

  	
  VORNADO REALTY
  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: VORNADO
  REALTY TRUST,

  
	
   

  	
  its general
  partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan J. Rice

  	
   

  
	
   

  	
  Name: Alan J. Rice

  
	
   

  	
  Title:   Senior
  Vice President

  
	
  [seal]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  /s/ Jay C.
  Beckoff

  	
   

  	
   

  
	
  Jay C. Beckoff

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK

  
	
   

  	
    Trustee:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Robert A.
  Massimillo

  	
   

  
	
   

  	
  Name: Robert A.
  Massimillo

  
	
   

  	
  Title:   Vice
  President

  
	
  [seal]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  /s/ Mary K.
  Lagumina

  	
   

  	
   

  
	
  Mary K. Lagumina

  	
   

  	
   

  

 

 64
 

 

 

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  ) ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  

 

On the 17th day of November, before me
personally came Alan J. Rice to me known, who, being by me duly sworn, did
depose and say that he is Senior Vice President of Vornado Realty Trust, a
Maryland real estate investment trust described in and which executed the
foregoing instrument; that he knows the seal of said trust; that the seal
affixed to said instrument is such seal; that it was so affixed by authority of
the Board of Trustees of said trust; and that he signed his name thereto by
like authority.

	
  

  	
  /s/ Ilona
  Jacqueline Williams

  
	
   

  	
  Ilona Jacqueline
  Williams

  
	
   

  	
  Notary Public,
  State of New York

  
	
  STATE OF NEW YORK

  	
  )

  	
  No. 01-WI604438

  
	
   

  	
  ) ss.:

  	
  Qualified
  Richmond County

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
  Commission Exp.
  July 3, 2010

  

 

On the 17th day of November, before me
personally came Alan J. Rice to me known, who, being by me duly sworn, did
depose and say that he is Senior Vice President of Vornado Realty Trust, a
Maryland real estate investment trust described in and which executed the
foregoing instrument in its capacity as the general partner of Vornado Realty
L.P.; that he knows the seal of said trust; that the seal affixed to said
instrument is such seal; that it was so affixed by authority of the Board of
Trustees of said trust; and that he signed his name thereto by like authority.

 

	
  

  	
   

  	
  /s/ Ilona
  Jacqueline Williams

  
	
   

  	
   

  	
  Ilona Jacqueline
  Williams

  
	
   

  	
   

  	
  Notary Public,
  State of New York

  
	
  STATE OF NEW YORK

  	
  )

  	
  No. 01-WI604438

  
	
   

  	
  ) ss.:

  	
  Qualified
  Richmond County

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
  Commission Exp.
  July 3, 2010

  

 

On the 17th day of November, before me
personally came Robert A. Massimillo, to me known, who, being by me duly sworn,
did depose and say that he is Vice
President of the Bank of New York , a corporation described in and which
executed the foregoing instrument; that he knows the seal of said corporation;
that the seal affixed to said instrument is such corporate seal; that it was so
affixed by authority of the Board of Directors of said corporation; and that he
signed his name thereto by like authority.

 

	
  

  	
   

  	
  /s/ Carlos R.
  Luciano 

  
	
   

  	
   

  	
  Carlos R.
  Luciano 

  
	
   

  	
  ) ss.:

  	
  Notary Public,
  State of New York

  
	
  STATE OF NEW
  YORK

  	
  )

  	
  No. 41-4765897

  
	
   

  	
   

  	
  Qualified In
  Queens County

  
	
   

  	
   

  	
  Commission Exp.
  April 30, 2010

  

 

 65Exhibit
4.2

(FACE OF SECURITY)

THIS SECURITY IS A GLOBAL SECURITY
WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED
IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.  THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE
OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE
OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH
DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE.

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK 10041), A NEW YORK
CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

VORNADO REALTY TRUST

3.625% CONVERTIBLE SENIOR DEBENTURES DUE 2026

FULLY AND UNCONDITIONALLY GUARANTEED BY VORNADO REALTY
L.P.

	
  No. 1

  	
   

  	
  $500,000,000

  
	
   

  	
   

  	
  CUSIP
  No. 929043AE7

  
	
   

  	
   

  	
  ISIN No. US929043AE78

  

 

VORNADO REALTY TRUST, a real estate investment trust
duly organized and existing under the laws of the State of Maryland (herein called
the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE
& CO., or its registered assigns, the principal sum of FIVE HUNDRED MILLION
DOLLARS ($500,000,000) on November 15, 2026, and to pay interest thereon from
November 20, 2006, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually on May 15 and
November 15 in each year, commencing on May 15, 2007, at the rate of 3.625% per
annum, until the principal hereof is paid or made available for payment. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of 

 1
 

 

business on the Regular Record Date for such interest,
which shall be the May 1 or November 1 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date. Any such interest so
payable, but not punctually paid or duly provided for, on any Interest Payment
Date will forthwith cease to be payable to the Holder on such Regular Record
Date and may either be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.  Each payment
of interest hereon shall include interest accrued from and including the
preceding Interest Payment Date or the date of issuance, as the case may be, to
and excluding the relevant Interest Payment Date or Maturity, as the case may
be. This Security is a Security for purposes of the Indenture.

This Security is convertible as specified on the
reverse of this Security.

This Security is a Guaranteed Security within the
meaning of the Indenture.

Payment of the principal of (and premium, if any) and
any such interest on this Security will be made at the office or agency of the
Company maintained for that purpose in the Borough of Manhattan, The City and
State of New York, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts;
provided, however, that at the option of the Company
payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register and provided, further, that if this Security
is a Global Security, payment may be made pursuant to the Applicable Procedures
of the Depositary as permitted in said Indenture.

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

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

 2
 

 

In Witness Whereof,
the Company, has caused this instrument to be duly executed under its trust
seal on behalf of the Company.

	
   

  	
  VORNADO REALTY TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan J. Rice

  
	
   

  	
   

  	
  Name: Alan J.
  Rice

  
	
   

  	
   

  	
  Title:
    Senior Vice President

  
	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Ilona J. Williams

  	
   

  	
   

  
	
  Ilona J.
  Williams

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

Dated: November
20, 2006

	
  

  	
  THE BANK OF NEW
  YORK,

  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert A. Massimillo

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 3
 

 

[REVERSE OF SECURITY]

This Security is one of a duly authorized issue of
securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of November 20, 2006
(herein called the “Indenture”, which term shall have the meaning assigned to
it in such instrument), among the Company, Vornado Realty L.P. as Guarantor
(herein called the “Guarantor”, which term includes any successor guarantor
under the Indenture) in respect of any Guaranteed Securities, and The Bank of
New York, as Trustee (herein called the “Trustee”, which term includes any
successor trustee under the Indenture), and reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Guarantor, the Trustee and
the Holders of the Securities and of the terms upon which the Securities are,
and are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof, initially limited in aggregate principal amount
to $1,000,000,000, as
such amount may be increased, but not by an amount in excess of $150,000,000,
solely as a result of the purchase of additional Securities pursuant to the
underwriter’s over-allotment option granted by the Company under the
Underwriting Agreement, dated November 14, 2006 (the “Underwriting Agreement”),
among the Company, the Guarantor and Banc of America Securities LLC,  and, provided
that the Company may from time to time, without notice to or the consent of the
Holders of the Securities of this series, create and issue further Securities
of this series (the “Additional Securities”) having the same terms and ranking
equally and ratably with the Securities of this series in all respects and with
the same CUSIP number as the Securities of this series, or in all respects
except for the payment of interest accruing prior to the Issue Date or except
for the first payment of interest following the issue date of such Additional
Securities; and provided, further, that no such
Additional Securities may be issued unless fungible with the Securities then
outstanding for United States Federal income tax purposes.  Any Additional Securities will be
consolidated and form a single series with the Securities and shall have the
same terms as to status, redemption and otherwise as the Securities.  Any Additional Securities may be issued
pursuant to authorization provided by a resolution of the board of trustees of
the Company, a supplement to the Indenture, or under an Officers’ Certificate
pursuant to the Indenture. The Indenture does not limit the aggregate principal
amount of the Securities that may be issued thereunder.

Redemption Rights

The Company shall have the right to redeem for cash
the Securities in whole or in part, at any time or from time to time, on or
after November 18, 2011 upon not less than 30 nor more than 60 days’
prior notice by mail to the registered Holders of the Securities, at 100% of
the aggregate principal amount of the Securities, plus accrued and unpaid
interest, if any, to the Redemption Date.

The Company shall not have the right to redeem the Securities
prior to November 18, 2011 except to preserve the Company’s status as a
real estate investment trust.  If the
Company determines it is necessary to redeem the Securities in order to
preserve the Company’s status as a real estate investment trust, the Company
will redeem 

 4
 

 

all of the Securities then outstanding at 100% of the
principal amount of the Securities plus accrued and unpaid interest, if any, to
the Redemption Date.

If less than all the Securities are to be redeemed,
the Trustee shall select the Securities to be redeemed pro rata
or by lot or by any other method the Trustee considers fair and
appropriate.  The Trustee shall make the
selection at least 30 days but not more than 60 days before the
Redemption Date from outstanding Securities not previously called for
redemption.  The Trustee may select for
redemption portions of the principal amount of Securities that have
denominations larger than $1,000. 
Securities and portions of them the Trustee selects shall be in
principal amounts at maturity of $1,000 or an integral multiple of $1,000.  Provisions of the Indenture that apply to
Securities called for redemption also apply to portions of Securities not
called for redemption.  The Trustee shall
notify the Company promptly of the Securities or portions of Securities to be
redeemed.  If any Security selected for
partial redemption is converted in part before termination of the conversion
right with respect to the portion of the Security so selected, the converted
portion of such Security shall be deemed to be the portion selected for
redemption.  Securities that have been
converted during a selection of Securities to be redeemed may be treated by the
Trustee as outstanding for the purpose of such selection.

At least 30 days but not more than 60 days
before a Redemption Date, the Company shall mail a notice of redemption by
first-class mail, postage prepaid, to each Holder of Securities to be redeemed.

Repurchase Rights

This Security shall be subject to purchase by the Company on each of
November 15, 2011, November 15, 2016 and November 15, 2021
(each, a “Repurchase Date”), at the purchase price of 100% of the
aggregate principal amount of the Securities plus, in each case, accrued and
unpaid interest, if any, to but excluding the Repurchase Date (each, a “Repurchase”,
as applicable), at the option of the Holder hereof, upon:

(1)                                  delivery
to the Paying Agent by the Holder of a written notice of repurchase in the form
set forth below (a “Repurchase Notice”) at any time from the opening of
business on the date that is 60 Business Days prior to a Repurchase Date
until the close of business on the fifth Business Day prior to such Repurchase
Date stating:

(A)                              the
certificate number of the Security which the Holder will deliver to be
purchased;

(B)                                the
portion of the principal amount which the Holder will deliver to be
repurchased, which portion must be a principal amount of $1,000 or an integral
multiple thereof; and

 5
 

 

(C)                                that
such Security shall be purchased as of the Repurchase Date pursuant to the
terms and conditions specified in the Securities and the Indenture, and

(2)                                  delivery
of such Security to the Paying Agent prior to, on or after the Repurchase Date
(together with all necessary endorsements) at the offices of the Paying Agent,
such delivery being a condition to receipt by the Holder of the Repurchase
Price therefor; provided, however,
that such Repurchase Price shall be so paid pursuant to this paragraph only if
the Security so delivered to the Paying Agent shall conform in all respects to
the description thereof in the related Repurchase Notice, as determined by the
Company.

The Company shall purchase from the Holder hereof,
pursuant to this paragraph and the terms of the Indenture, a portion of a
Security if the principal amount of such portion is $1,000 or an integral
multiple of $1,000.

Any repurchase contemplated by the Company shall be
consummated by the delivery of the consideration to be received by the Holder
(together with accrued and unpaid interest, if any) promptly following the
later of the Repurchase Date and the time of delivery of this Security.

The Paying Agent shall promptly notify the Company of
the receipt by it of any Repurchase Notice or written notice of withdrawal
thereof.

A Holder may withdraw any Repurchase Notice by a written
notice of withdrawal delivered to the Paying Agent prior to the close of
business on the second Business Day prior to the Repurchase Date.  The notice of withdrawal must state:

·                                          the
principal amount of the Securities being withdrawn from the Repurchase Notice;

·                                          if
certificated Securities have been issued, the certificate numbers of the
withdrawn Securities, or if not certificated, the notice must comply with
appropriate procedures of The Depository Trust Company or any successor
depositary for the Securities; and

·                                          the
principal amount, if any, which remains subject to the Repurchase Notice.

Holders must either effect book-entry transfer of the
Securities or deliver the Securities, together with necessary endorsements, to
the office of the Paying Agent after delivery of the Repurchase Notice to
receive payment of the Repurchase Price. 
Holders will receive payment on the Repurchase Date or, in the case of a
global security,  

 6
 

 

the time of book-entry transfer, or the delivery of
the Securities.  If the Paying Agent
holds money or securities sufficient to pay the Repurchase Price of the
Securities to which the Repurchase Notice relates on the Business Day following
the Repurchase Date, then:

·                                          such
Securities will cease to be Outstanding;

·                                          interest
will cease to accrue on such Securities; and

·                                          all
rights as a Holder with respect to such Securities will terminate.

Repurchase at Option of
Holders Upon a Change in Control

If there shall have occurred a Change in Control at
any time prior to November 15, 2011, Holders of Securities shall have the
right to require the Company to repurchase Securities not previously called for
redemption, or any portion of the principal amount thereof, that is equal to
$1,000 or an integral multiple of $1,000, at a cash purchase price equal to
100% of the principal amount of all Securities such Holders require the Company
to repurchase, plus accrued and unpaid interest on those Securities to, but
excluding, the Repurchase Date (such amount, the “Change in Control Purchase
Price”), subject to satisfaction by or on behalf of the Holder of the
requirements set forth in this Security and in the Indenture.

Within 15 days after the occurrence of a Change
in Control, the Company shall mail a written notice of Change in Control by
first-class mail to the Trustee and to each Holder (and to beneficial owners as
required by applicable law and procedures of The Depository Trust Company or
any successor depositary) as provided in the Indenture.

A Holder may exercise its rights specified in this paragraph upon
delivery of a written notice of purchase in the form set forth below (a “Change
in Control Purchase Notice”) to the Paying Agent at any time prior to the
close of business not more than 20 Business Days following the date of
notice by the Company to Holders of the Change in Control, stating:

(1)                                  the
certificate number of the Securities which the Holder will deliver to be
purchased;

(2)                                  the
principal amount of the Security which the Holder will deliver to be purchased,
which must be $1,000 or an integral multiple thereof; and

(3)                                  that
such Security shall be purchased pursuant to the terms and conditions specified
herein and in the Indenture.

The delivery of Securities to the Paying Agent prior
to, on or after the Change in Control Purchase Date (together with all
necessary endorsements) at the offices of the Paying Agent shall be a condition
to the receipt by the Holder of the 

 7
 

 

Change in Control Purchase Price therefor; provided, however, that
such Change in Control Purchase Price shall be so paid only if the Securities
so delivered to the Paying Agent shall conform in all respects to the
description thereof set forth in the related Change in Control Purchase Notice.

The Company shall purchase from the Holder thereof a
portion of a Security if the principal amount of such portion is $1,000 or an
integral multiple of $1,000.

The Paying Agent shall promptly notify the Company of
the receipt by it of any Change in Control Purchase Notice.

Notwithstanding the foregoing, no Securities may be
purchased by the Company at the option of a Holder upon a Change in Control if
the principal amount of the Securities has been accelerated and such
acceleration has not been rescinded on or prior to such date.

If a Change in Control occurs on or after
November 15, 2011, no holder will have the right to require the Company to
purchase any Securities except as provided in the Indenture and under “Repurchase
Rights” above on the reverse of this Security.

Upon receipt by the Paying Agent of the Repurchase
Notice or Change in Control Purchase Notice, a Holder of Securities in respect
of which such Repurchase Notice or Change in Control Purchase Notice, as the
case may be, was given shall (unless such Repurchase Notice is withdrawn as
specified below) thereafter be entitled to receive solely the Repurchase Price
or Change in Control Purchase Price, as the case may be, with respect to such
Security.  Such Repurchase Price or
Change in Control Purchase Price shall be paid to such Holder, subject to
receipt of funds and/or Securities by the Paying Agent or Conversion Agent,
promptly following the later of (x) the Repurchase Date or the Change in
Control Purchase Date, as the case may be, with respect to such Securities
(provided the conditions set forth herein and in the Indenture for such payment
are satisfied) and (y) the time of delivery of such Securities to the
Paying Agent by the Holder thereof in the manner required herein.  Securities in respect of which a Repurchase
Notice or Change in Control Purchase Notice, as the case may be, has been given
by the Holder thereof may not be converted on or after the date of the delivery
of such Repurchase Notice or Change in Control Purchase Notice, as the case may
be, unless, solely in the case of a Repurchase Notice, it has first been
validly withdrawn as specified below.

A Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Paying Agent prior to the close of
business on the second Business Day prior to the Repurchase Date specifying:

(1)                                  the
certificate number of the Security in respect of which such notice of
withdrawal is being submitted;

(2)                                  the
principal amount of the Security with respect to which such notice of
withdrawal is being submitted; and

 8
 

 

(3)                                  the
principal amount of such Security which remains subject to the original
Purchase Notice or and which has been or will be delivered for purchase by the
Company.

Make Whole Amount

If a transaction described in clause (1) or clause (2)
of the definition of Change in Control occurs on or prior to November 15,
2011, and a Holder elects to convert its Securities in connection with such
transaction, the Company will increase the applicable Conversion Rate for the
Securities surrendered in order to provide for conversion into a number of
Additional Shares of the Company as described below.  A conversion of Securities shall be deemed
for these purposes to be “in connection with” such a Change in Control if the
notice of conversion of the Securities is received by the Conversion Agent on
or after the 15th Business Day prior to the anticipated effective date of
the Change in Control and on or prior to the fifth Business Day following the
effective date of the Change in Control (or, if earlier and to the extent
applicable, the close of business on the second Trading Day immediately
preceding the day on which the Company is required to repurchase Securities
upon a Change in Control.

The number of Additional Shares will be determined by
reference to the table below and is based on the date on which such Change in
Control transaction becomes effective (the “effective date”) and the
price (the “stock price”) paid per Common Share in such
transaction.  If the holders of Common
Shares receive only cash in the Change in Control transaction, the stock price
shall be the cash amount paid per share. 
Otherwise the stock price shall be the average of the closing sale
prices of Common Shares on the 10 Trading Days up to but excluding the
effective date.

The stock prices set forth in the first row of the
table (i.e., the column headers) will be adjusted as of any date on which the
Conversion Rate of the Securities is adjusted. 
The adjusted stock prices will equal the stock prices applicable
immediately prior to such adjustment multiplied by a fraction, the numerator of
which is the Conversion Rate immediately prior to the adjustment giving rise to
the stock price adjustment and the denominator of which is the Conversion Rate
as so adjusted.  The right to receive the
Additional Shares will be subject to adjustment in the same manner as the
Conversion Rate.

The following table sets forth the stock price and
number of Additional Shares to be received per $1,000 principal amount of
Securities:

	
  Effective 

  	
   

  	
  Stock Price

  	
   

  
	
  Date

  	
   

  	
  $118.04

  	
   

  	
  $130.00

  	
   

  	
  $140.00

  	
   

  	
  $153.45

  	
   

  	
  $165.00

  	
   

  	
  $175.00

  	
   

  	
  $185.00

  	
   

  	
  $200.00

  	
   

  	
  $215.00

  	
   

  	
  $230.00

  	
   

  	
  $245.00

  	
   

  	
  $260.00

  	
   

  	
  $275.00

  	
   

  	
  $300.00

  	
   

  	
  $325.00

  	
   

  
	
  November 20,
  2006

  	
   

  	
  1.95

  	
   

  	
  1.48

  	
   

  	
  1.18

  	
   

  	
  0.88

  	
   

  	
  0.69

  	
   

  	
  0.56

  	
   

  	
  0.48

  	
   

  	
  0.37

  	
   

  	
  0.30

  	
   

  	
  0.24

  	
   

  	
  0.20

  	
   

  	
  0.17

  	
   

  	
  0.15

  	
   

  	
  0.12

  	
   

  	
  0.10

  	
   

  
	
  November 15,
  2007

  	
   

  	
  1.95

  	
   

  	
  1.44

  	
   

  	
  1.11

  	
   

  	
  0.81

  	
   

  	
  0.62

  	
   

  	
  0.51

  	
   

  	
  0.42

  	
   

  	
  0.31

  	
   

  	
  0.24

  	
   

  	
  0.19

  	
   

  	
  0.16

  	
   

  	
  0.13

  	
   

  	
  0.11

  	
   

  	
  0.09

  	
   

  	
  0.08

  	
   

  
	
  November 15,
  2008

  	
   

  	
  1.95

  	
   

  	
  1.40

  	
   

  	
  1.06

  	
   

  	
  0.74

  	
   

  	
  0.54

  	
   

  	
  0.45

  	
   

  	
  0.35

  	
   

  	
  0.25

  	
   

  	
  0.18

  	
   

  	
  0.14

  	
   

  	
  0.12

  	
   

  	
  0.10

  	
   

  	
  0.08

  	
   

  	
  0.07

  	
   

  	
  0.06

  	
   

  
	
  November 15,
  2009

  	
   

  	
  1.95

  	
   

  	
  1.36

  	
   

  	
  1.03

  	
   

  	
  0.67

  	
   

  	
  0.48

  	
   

  	
  0.36

  	
   

  	
  0.25

  	
   

  	
  0.16

  	
   

  	
  0.12

  	
   

  	
  0.09

  	
   

  	
  0.07

  	
   

  	
  0.06

  	
   

  	
  0.05

  	
   

  	
  0.04

  	
   

  	
  0.03

  	
   

  
	
  November 15,
  2010

  	
   

  	
  1.95

  	
   

  	
  1.34

  	
   

  	
  0.96

  	
   

  	
  0.59

  	
   

  	
  0.37

  	
   

  	
  0.22

  	
   

  	
  0.14

  	
   

  	
  0.07

  	
   

  	
  0.04

  	
   

  	
  0.02

  	
   

  	
  0.02

  	
   

  	
  0.01

  	
   

  	
  0.01

  	
   

  	
  0.01

  	
   

  	
  0.01

  	
   

  
	
  November 15, 2011

  	
   

  	
  1.95

  	
   

  	
  1.29

  	
   

  	
  0.93

  	
   

  	
  0.56

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  

 

 9
 

 

The exact stock prices and effective dates may not be set forth in the
table, in which case:

(1)                                  if
the stock price is between two stock price amounts in the table or the
effective date is between two dates in the table, the additional shares will be
determined by straight-line interpolation between the number of Additional
Shares set forth for the higher and lower stock price amounts and the two
dates, as applicable, based on a 365-day year;

(2)                                  if
the stock price is equal to or in excess of $325.00 per share (subject to
adjustment), no Additional Shares will be issued upon conversion; and

(3)                                  if
the stock price is less than $118.04 per share (the closing sale price of
Common Shares on November 15, 2006) (subject to adjustment), no Additional
Shares will be issued upon exchange.

Notwithstanding the foregoing, in no event will the
total number of Common Shares issuable upon conversion exceed 8.4717 per $1,000
principal amount of Securities, subject to adjustment in the same manner as the
Conversion Rate.

Conversion Settlement

A Holder of Securities may, subject to the
restrictions on ownership of Common Shares set forth in the Company’s
Declaration of Trust and the conditions described herein and in the Indenture,
convert Securities for cash, Common Shares, if any, or a combination thereof,
at the Company’s election, based on the Conversion Rate in effect at the time
of conversion (6.5168 Common Shares per $1,000 principal amount of Securities
on November 20, 2006).

Upon conversion of the Securities, the Company will
deliver, in respect of each $1,000 principal amount of Securities tendered for
conversion:

·                                          cash
in an amount (the “principal return”) equal to the lesser of (a) the
principal amount of Securities surrendered for conversion and (b) the
conversion value, and

·                                          if
the conversion value is greater than the principal return, an amount (the “net
amount”) in cash or Common Shares, as determined by the Company, with an
aggregate value equal to the difference between the conversion value and the
principal return.

The Company may elect to deliver any portion of the
net amount in cash (the “net cash amount”) or Common Shares, and any portion of
the net amount the Company delivers in Common Shares (the “net shares”) will be
the sum of the daily share amounts (calculated as described below) for each
Trading Day during the 

 10
 

 

applicable conversion period. Prior to the close of
business on the second Trading Day following the date on which Securities are
tendered for conversion, the Company will, by notice to the Trustee, inform
Holders of such Securities of its election to pay cash for all or a portion of
the net amount and, if applicable, the portion of the net amount that will be
paid in cash and the portion that will be delivered in the form of net shares,
unless the Company has previously informed such Holder of such election in a
Notice of Redemption for Securities.

The Company will deliver cash in lieu of any
fractional Common Shares issuable in connection with payment of the net shares
based upon the average price.

The “conversion value” for each $1,000 principal
amount of Securities is equal to (a) the applicable Conversion Rate, multiplied
by (b) the average price.

The “applicable conversion period” means the
10 consecutive Trading-Day period commencing on the third Trading Day
following the date the Securities are tendered for conversion.

The “average price” is equal to the average of the
closing sale prices of Common Shares for each Trading Day in the applicable
conversion period.

The “daily share amount”
for each $1,000 principal amount of Securities and each Trading Day in the
applicable conversion period is equal to the greater of:

zero; and

a number of Common
Shares determined by the following formula:

	
  (closing sale price of
  Common Shares on such Trading Day × applicable Conversion 

  Rate) —

  
	
  ($1,000 + net cash amount, if any)

  
	
  10 × closing sale price of Common Shares on such
  Trading Day

  

 

The conversion value, principal return, net amount,
net cash amount and the number of net shares, as applicable, shall be
determined by the Company promptly after the end of the applicable conversion
period. The Company will pay the principal return and cash in lieu of
fractional shares, and deliver net shares or pay the net cash amount, as
applicable, no later than the third Business Day following the last Trading Day
of the applicable conversion period.

Conversion Rights

No fractional Common Shares will be delivered upon
conversion of the Securities.  Instead,
the Company will pay the cash value of such fractional shares in connection
with such settlement based upon the closing sale price of Common Shares on the
Trading Day immediately preceding the Conversion Date.

 11

 

If a Security has been called for redemption, Holders
will be entitled to convert such Security from the date of notice of the
redemption until the close of business on the second Business Day immediately
preceding the Redemption Date.  The right
to convert will expire at that time, unless the Company defaults in making the
payment due upon redemption.  A Holder
may convert fewer than all of such Holder’s Securities so long as the
Securities converted are an integral multiple of $1,000 principal amount.

Upon surrender of a Security for conversion into
Common Shares, such Holder shall deliver to the Company cash equal to the
amount that the Company is required to deduct and withhold under applicable law
in connection with the conversion; provided, however, if the Holder does not deliver such cash, the
Company may deduct and withhold from the amount of cash otherwise deliverable
to such Holder the amount required to be deducted and withheld under applicable
law (and not otherwise delivered by the Holder in cash).

Holders may surrender their Securities for conversion for cash, Common
Shares, if any, or a combination of cash and Common Shares, at the option of
the Company, at the applicable Conversion Rate prior to the second Business Day
immediately prior to Stated Maturity at any time on or after November 15,
2025 and also under any of the following circumstances:

(1)                                  Conversion Upon Satisfaction of Market Price Condition.  A Holder may surrender any of its Securities
during any Measurement Period if the closing sale prices of Common Shares on
the principal national securities exchange on which the Common Shares are
listed, for a period of at least 20 Trading Days beginning on the first
day of such Measurement Period is more than 125% of the Conversion Price per share
of Common Shares on the first day of such Measurement Period.  If an event requiring adjustment of the
Conversion Rate shall have occurred during the period of 30 consecutive
Trading Days beginning on the first day of such Measurement Period, the closing
sale price of Common Shares on each Trading Day of such period elapsing prior
to the occurrence of the event shall be deemed for purposes of the calculation
described in the previous sentence to have been appropriately adjusted to
reflect the occurrence of the event.

A Holder may surrender any of its Securities for conversion into Common Shares
at any time after November 15, 2025. 
In such event, the holder may convert any of its Securities into Common
Shares at any time thereafter prior to the close of business on the second
Business Day immediately prior to the Stated Maturity of the Securities.

The Conversion Agent shall, on behalf of the Company, 

 12
  
 

 

determine daily if the Securities are
convertible as a result of the closing sale price of Common Shares and notify
the Company and the Trustee.

(2)                                  Conversion Upon Satisfaction of Trading Price Condition.  A Holder may surrender any of its Securities
for conversion during the five consecutive Trading Day period following any
20 consecutive Trading Days in which the average of the trading prices (as
determined following a request by a holder of the Securities) for a Security
during such 20 consecutive Trading-Day period was less than 98% of the
average closing sale price of Common Shares for such period, multiplied by the
applicable Conversion Rate for such period. 
Common Shares will be valued at 100% of the average closing sale prices
for the 20 consecutive Trading Days preceding the Conversion Date.

(3)                                  Conversion Upon Notice of Redemption.  A Holder may surrender for conversion any of
the Securities called for redemption at any time prior to the close of business
two Business Days prior to the Redemption Date, even if the Securities are not
otherwise convertible at such time. 
However, if a Holder has already delivered a Repurchase Notice or a
Change in Control Purchase notice with respect to a Security, the Holder may
not surrender that Security for conversion until, in the case of a Repurchase
Notice, the Holder has withdrawn the notice in accordance with the procedures
set forth in the Indenture.

(4)                                  Conversion Upon Specified Transactions.  If the Company elects to:

(A)                              distribute
to all holders of Common Shares rights entitling them to purchase, for a period
expiring within 60 days, Common Shares at less than the closing sale price
of Common Shares on the Trading Day immediately preceding the declaration of
the distribution; or

(B)                                distribute
to all holders of Common Shares the Company’s assets, debt securities or rights
to purchase the Company’s securities, which distribution has a per share value
exceeding 15.0% of the closing sale price of Common Shares on the Trading Day
immediately preceding the declaration date for such distribution,

 13
  
 

 

the Company shall notify the Holders of the
Securities in writing at least 20 days prior to the ex-dividend date for
such distribution.  Following the
issuance of such notice, Holders may surrender their Securities for conversion
at any time until the earlier of the close of business on the Business Day
prior to the ex-dividend date or the Company’s announcement that such
distribution will not take place; provided, however, that a Holder may not exercise this right to
convert if the Holder may participate, on an as-converted basis, in the
distribution without conversion of the Securities.  The ex-dividend date for purposes of the
foregoing is the first date upon which a sale of the Common Shares does not
automatically transfer the right to receive the relevant distribution from the
seller of Common Shares to its buyer.

(5)                                  Conversion Upon Delisting of Common Shares.  A Holder of Securities may surrender any of
its Securities for conversion into Common Shares at the applicable Conversion
Rate if the Common Shares are not listed on a U.S. national securities exchange
for 30 consecutive Trading Days.

The Securities may also be converted in accordance
with the other provisions of the Indenture setting forth the circumstances in
which the Securities may be converted.

Conversion Procedures

A Holder will not receive any cash payment
representing accrued interest upon conversion of a Security.  Instead, upon conversion the Company will
deliver to tendering Holders cash, a fixed number of Common Shares, if any, and
any cash payment to account for fractional shares.  The cash payment for fractional shares in
connection with a conversion settled in Common Shares will be based on the
closing sale price of Common Shares on the trading day immediately prior to the
Conversion Date.  Delivery of cash and
Common Shares, if any, will be deemed to satisfy the Company’s obligation to
pay the principal amount of the Securities, including any accrued and unpaid
interest.  Accrued and unpaid interest
will be deemed paid in full rather than canceled, extinguished or forfeited.  In no event will the Company adjust the
Conversion Rate to account for the accrued interest.

Upon conversion of a Security, the Company will pay
any documentary stamp or similar issue or transfer tax due on the issue of
Common Shares, if any, unless the tax is due because the Holder requests the
shares to be issued or delivered to a person other than the registered Holder,
in which case the Holder must pay the tax prior to the delivery of the Common
Shares.  Certificates representing Common
Shares will not be 

 14
  
 

 

issued or delivered unless all taxes and duties, if
any, payable by the Holder have been paid.

Securities tendered for conversion after a Record Date
for an interest payment but prior to the corresponding Interest Payment Date
will receive on the Interest Payment Date interest accrued on those Securities,
notwithstanding the conversion of Securities prior to the Interest Payment
Date.  Notwithstanding the foregoing, a
Holder that surrenders for conversion a Security during such period must pay to
the Company an amount equal to the interest that has accrued and that will be
paid on the Securities being converted on the Interest Payment Date, unless
such Securities are surrendered for conversion after being called for
redemption after a Record Date for an Interest Payment Date or that are
surrendered for conversion after the last Record Date for the payment of
interest on the Securities.  If in such
an event prior to the Redemption Date a Holder elects to exchange Securities,
such Holder will not be required to pay at the time of surrender of Securities
for conversion the amount of interest on the Securities that it will receive on
the date that has been fixed for redemption.

Except as set forth in the Indenture, no other payment
or adjustment for interest, or for any dividends in respect of Common Shares,
will be made upon conversion of Securities. 
Holders of Common Shares issued upon exchange will not be entitled to
receive any dividends payable to holders of Common Shares as of any record time
or date before the close of business on the Conversion Date.

In order to exercise its conversion right, a Holder
must deliver an irrevocable conversion notice, in the form attached hereto
together with the certificated Security, to the Conversion Agent who will, on
behalf of the Holder, convert the Securities into Common Shares, cash or a
combination of cash and Common Shares.

The initial Conversion Rate is 6.5168 Common Shares
for each $1,000 principal amount of Securities and shall be subject to
adjustment at the times and in the manner provided in the Indenture.  The initial Conversion Price is $153.45 per
Common Share and shall be subject to adjustment at the times and in the manner
provided in the Indenture.

No adjustment in the applicable Conversion Price will
be required unless the adjustment would require an increase or decrease of at
least 1% of the applicable Conversion Price. 
If the adjustment is not made because the adjustment does not change the
applicable Conversion Price by more than 1%, then the adjustment that is not
made will be carried forward and taken into account in any future
adjustment.  All required calculations
will be made to the nearest cent or 1/1000th of
a share, as the case may be.  Notwithstanding the foregoing, if the
Securities are called for redemption, all adjustments not previously made will
be made on the applicable Redemption Date. 
Except as specifically described in the Indenture, the applicable
Conversion Price will not be subject to adjustment in the case of the issuance
of any Common Shares or preferred shares of the Company, or securities
convertible into or convertible for Common Shares or preferred shares of the
Company.

 15
  
 

 

Ownership Limit

No Holder of Securities shall be entitled to exchange
such Securities for Common Shares to the extent that receipt of such shares
would cause such Holder (together with such Holder’s affiliates) to exceed the
ownership limit contained in the Company’s Declaration of Trust as in effect
from time to time.

Satisfaction and
Discharge of Indenture

The Company may not discharge a Holder’s rights to
exchange Securities in accordance with the terms of these Securities and the
Indenture or to have registered the transfer or exchange of Securities in
accordance with the terms of the Indenture.

Miscellaneous

If an Event of Default with respect to Securities of
this series shall occur and be continuing, the principal of the Securities of
this series may be declared due and payable in the manner and with the effect
provided in the Indenture.

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company, the
Guarantor and the Trustee with the consent of the Holders of a majority in
principal amount of the Securities at the time Outstanding of each series to be
affected. The Indenture also contains provisions (i) permitting the
Holders of not less than a majority in principal amount of the Securities of
any series at the time Outstanding, on behalf of the Holders of all Securities
of such series, to waive compliance by the Company or the Guarantor, as the
case may be, with certain provisions of the Indenture with respect to such
series and (ii) permitting the Holders of a majority in principal amount of the
Securities at the time Outstanding of any series to be affected under the
Indenture (with each such series considered separately for this purpose), on
behalf of the Holders of all Securities of such series, to waive certain past
defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Security shall be conclusive and binding upon such Holder
and upon all future Holders of this Security and of any Security issued upon
the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

As provided in and subject to the provisions of the Indenture,
the Holder of this Security shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver
or Trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default
with respect to the Securities of this series, the Holders of not less than 25%
in principal amount of the Securities of this series at the time Outstanding
shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default as Trustee and offered the Trustee reasonable
indemnity, and the Trustee shall not have received from the Holders of a
majority in principal 

 16
  
 

 

amount of Securities of this series at the time Outstanding
a direction inconsistent with such request, and shall have failed to institute
any such proceeding, for 60 days after receipt of such notice, request and
offer of indemnity. The foregoing shall not apply to any suit instituted by the
Holder of this Security for the enforcement of any payment of principal hereof
or any premium or interest hereon on or after the respective due dates
expressed herein.

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

Notwithstanding any other provision of this Security
or the Indenture to the contrary, no recourse shall be had, whether by levy or
execution or otherwise, for the payment of any sums due under this Security,
including, without limitation, the principal of, premium, if any, or interest
payable under this Security, or for the payment or performance of any
obligation, covenant or agreement under, or for any claim based on, this
Security or the Indenture or otherwise in respect of this Security or the
Indenture, against any principal, shareholder, officer, director, Trustee or
employee of the Company or any successor thereto, under any rule of law,
statute or constitution, or by the enforcement of any assessment or penalty or
by any legal or equitable proceeding or otherwise, nor shall any of such
parties be personally liable for any such amounts, obligations or claims, or
liable for any deficiency judgment based thereon or with respect thereto, it
being expressly understood that the sole remedies hereunder or under any other
document with respect to the Securities against such parties with respect to
such amounts, obligations or claims shall be against the Company and that all
such liability of such parties is and is to be, by the acceptance hereof,
expressly waived and released by the acceptance of the Securities by the
Holders and as part of the consideration for the issue of the Securities.

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series and of like tenor, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

Any headings set forth herein are for convenience only
and shall not affect the construction hereof.

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

 17
  
 

 

tenor of a different authorized denomination, as
requested by the Holder surrendering the same.

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

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

This Security is a Guaranteed Security within the
meaning of, and is subject to the provisions applicable to Vornado Realty L.P.,
as Guarantor thereof contained in, the Indenture. Reference is made to Article
Fourteen of the Indenture and to the Guarantee endorsed on this Security for a
statement of the respective rights, duties and obligations thereunder of the
Guarantor, the Trustee and the Holders.

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

Interest on the principal balance of this Security
shall be calculated on the basis of a 360-day year consisting of twelve 30-day
months.

The calculation of the Repurchase Price, Change in
Control Purchase Price, Conversion Rate, Conversion Price and each other
calculation to be made in respect of the Securities shall be the obligation of
the Company.  All calculations made by
the Company or its agent as contemplated pursuant to the terms of the Indenture
and these Securities shall be final and binding on the Company and the Holders
absent manifest error.  The Trustee,
Paying Agent and Conversion Agent shall not be obligated to recalculate,
recompute or confirm any such calculations except as the agent of the Company
in accordance with the Indenture or these Securities.

The Trustee may make reasonable rules for action by or
a meeting of Holders of Securities.  The
Conversion Agent and the Paying Agent may make reasonable rules for their
functions.

The Company shall not be obligated to redeem or
purchase any Security pursuant to any sinking fund or analogous provision, or
at the option of any Holder hereof, except as provided herein and in the
Indenture.

The Bank of New York is the Paying Agent and the
Security Registrar for the Securities. 
The Security Register for the Securities will be maintained by the
Security Registrar in the Borough of Manhattan, The City of New York.

 18
  
 

 

THIS SECURITY AND THE INDENTURE SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

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

 19
  
 

 

 

ASSIGNMENT FORM

To assign this
Security, fill in the form below: 

I or we assign and
transfer this Security to 

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(Insert assignee’s soc. sec. or tax ID no.) 

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

and irrevocably appoint ______________________ agent to transfer this Security
on the books of the Company. The agent may substitute another to act for him. 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guaranteed

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Participant in a
  Recognized Signature Guarantee Medallion Program

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
					

 

CONVERSION NOTICE

To convert this
Security into Cash and Common Stock, if any, of the Company, check the box o

To convert only
part of this Security, state the principal amount to be converted (which must
be $1,000 or an integral multiple of $1,000): 

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

If you want the stock
certificate made out in another person’s name fill in the form below:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(Insert the other
person’s soc. sec. or tax ID no.) 

____________________________________________________________________________________________________

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

	
  Your Signature: 

  	
   

  	
   

  

 

(Sign exactly as your
name appears on the other side of this Security)

 20
  
 

 

FORM OF REPURCHASE NOTICE

To:          Vornado
Realty Trust

The undersigned registered holder of this Security
requests and instructs the Company to repurchase this Security, or the portion
hereof (which is $1,000 principal amount or a multiple thereof) designated
below, on the date specified below, in accordance with the terms and conditions
referred to in this Security and the Indenture referred to in this Security and
directs that the check in payment for this Security or the portion thereof and
any Securities representing the portion of principal amount hereof not to be so
repurchased, be issued and delivered to the registered holder hereof unless a
different name has been indicated below. 
If any portion of this Security not repurchased is to be issued in the
name of a Person other than the undersigned, the undersigned shall pay all transfer
taxes payable with respect thereto.

	
  Dated:

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  

 

	
  Fill in for registration of
  Securities not repurchased if to be issued other than to and in the name of
  registered holder:

  
	
   

  
	
  (Name)

  
	
   

  
	
  (Street Address)

  
	
   

  
	
  (City, state and
  zip code)

  

 

Please print name and address

principal amount to be repurchased (if less than
all):  $    ,000

date of requested repurchase:                              ,
20    

(specify either 2011, 2016, 2021 or 2025)

Certificate Number:

 21
  
 

 

FORM OF OPTION TO ELECT REPURCHASE 

UPON A CHANGE IN CONTROL

To:  Vornado
Realty Trust

The undersigned registered holder of this Security
hereby acknowledges receipt of a notice from Vornado Realty Trust (the “Company”)
as to the occurrence of a Change in Control with respect to the Company and
requests and instructs the Company to repurchase this Security, or the portion
hereof (which is $1,000 principal amount or a multiple thereof) designated
below, in accordance with the terms of this Security and the Indenture referred
to in this Security and directs that the payment for this Security or the
portion thereof and any Securities representing any unrepurchased principal
amount hereof, be issued and delivered to the registered holder hereof unless a
different name has been indicated below. If any portion of this Security not
repurchased is to be issued in the name of a Person other than the undersigned,
the undersigned shall pay all transfer taxes payable with respect thereto.

 

	
  Dated:

  
	
   

  	
   

  
	
   

  	
  Signature(s)

  

 

	
  Fill in for registration of
  Securities not repurchased if to be issued other than to and in the name of
  registered holder:

  
	
   

  
	
  (Name)

  
	
   

  
	
  (Street Address)

  
	
   

  
	
  (City, state and
  zip code)

  

 

Please print name and address

principal amount to be
repurchased (if less than all):  $    ,000

 22

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