Document:

Exhibit
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

2.85% CONVERTIBLE SENIOR DEBENTURES DUE 2027

FULLY AND UNCONDITIONALLY GUARANTEED BY VORNADO REALTY
L.P.

No. 1                                                                                                                                                                      $               

                                                                                                                                        CUSIP
No. 929042AC3
                                                                                                                                                     ISIN
No. US929042AC30

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                  
($         ) on April 1, 2027, and
to pay interest thereon from March 27, 2007, or from the most recent Interest
Payment Date to which interest has been paid or duly provided for,
semi-annually on April 1 and October 1 in each year, commencing on October 1,
2007, at the rate of 2.85% 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 business on the Regular Record Date for such interest, which
shall be the March 15 or September 15 (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/ Michael Fascitelli

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael Fascitelli

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President

  	
   

  	
   

  

 

Attest:

	
  /s/ Alan J. Rice

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Alan J. Rice

  	
   

  	
   

  
	
  Title:

  	
  Secretary

  	
   

  	
   

  
					

 

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: March 27,
2007

	
  

  	
  THE BANK OF NEW YORK,

  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:    /s/ Franca M. Ferrera

  
	
   

  	
   

  	
  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 $1,400,000,000, as
such amount may be increased, but not by an amount in excess of $210,000,000,
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 March 21, 2007 (the “Underwriting Agreement”),
among the Company and the Guarantor, on the one hand,  and J. P. Morgan Securities Inc.,
Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Lehman
Brothers Inc., on the other hand, 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 April 5, 2012 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 April 5, 2012 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

 4
 

Company’s status as a real estate investment trust,
the Company will redeem 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
April 1, 2012, April 1, 2017 and April 1, 2022 (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 April 1, 2012, 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 April 1,
2012, 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 April 5, 2012, 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

  	
   

  	
  $124.97

  	
   

  	
  $135.00

  	
   

  	
  $145.00

  	
   

  	
  $155.00

  	
   

  	
  $165.00

  	
   

  	
  $175.00

  	
   

  	
  $185.00

  	
   

  	
  $195.00

  	
   

  	
  $205.00

  	
   

  	
  $215.00

  	
   

  	
  $225.00

  	
   

  	
  $235.00

  	
   

  	
  $245.00

  	
   

  
	
  March 27, 2007

  	
   

  	
  1.8466

  	
   

  	
  1.3347

  	
   

  	
  1.0330

  	
   

  	
  0.7931

  	
   

  	
  0.6023

  	
   

  	
  0.4507

  	
   

  	
  0.3308

  	
   

  	
  0.2362

  	
   

  	
  0.1622

  	
   

  	
  0.1050

  	
   

  	
  0.0615

  	
   

  	
  0.0300

  	
   

  	
  0.0097

  	
   

  
	
  April 1, 2008

  	
   

  	
  1.8466

  	
   

  	
  1.3322

  	
   

  	
  1.0203

  	
   

  	
  0.7743

  	
   

  	
  0.5805

  	
   

  	
  0.4283

  	
   

  	
  0.3093

  	
   

  	
  0.2169

  	
   

  	
  0.1458

  	
   

  	
  0.0917

  	
   

  	
  0.0515

  	
   

  	
  0.0230

  	
   

  	
  0.0054

  	
   

  
	
  April 1, 2009

  	
   

  	
  1.8466

  	
   

  	
  1.3167

  	
   

  	
  0.9911

  	
   

  	
  0.7373

  	
   

  	
  0.5403

  	
   

  	
  0.3884

  	
   

  	
  0.2720

  	
   

  	
  0.1837

  	
   

  	
  0.1175

  	
   

  	
  0.0687

  	
   

  	
  0.0338

  	
   

  	
  0.0109

  	
   

  	
  0.0000

  	
   

  
	
  April 1, 2010

  	
   

  	
  1.8466

  	
   

  	
  1.2803

  	
   

  	
  0.9349

  	
   

  	
  0.6705

  	
   

  	
  0.4705

  	
   

  	
  0.3212

  	
   

  	
  0.2113

  	
   

  	
  0.1317

  	
   

  	
  0.0749

  	
   

  	
  0.0358

  	
   

  	
  0.0112

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  April 1, 2011

  	
   

  	
  1.8466

  	
   

  	
  1.2185

  	
   

  	
  0.8337

  	
   

  	
  0.5477

  	
   

  	
  0.3433

  	
   

  	
  0.2030

  	
   

  	
  0.1102

  	
   

  	
  0.0515

  	
   

  	
  0.0170

  	
   

  	
  0.0012

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  
	
  April 5, 2012

  	
   

  	
  1.8466

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  	
  0.0000

  	
   

  

 

 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 $245.00 per share (subject to
adjustment), no Additional Shares will be issued upon conversion; and

(3)                                  if
the stock price is less than $124.97 per share (the closing sale price of
Common Shares on March 21, 2007) (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 8.0019 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 (6.1553 Common Shares per $1,000 principal amount of Securities
on March 27, 2007).

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 April 1, 2026 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 April 1, 2026.  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 6.1553 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 $162.46 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

  	
   

  	
  CONVERSION NOTICE

  
	
   

  	
   

  	
   

  
	
  To assign this Security, fill in the form below:

  	
   

  	
  To convert this Security into Cash and Common

  
	
   

  	
   

  	
  Stock, if any, of the Company, check the box   o
  

  
	
  I or we assign and transfer this Security to 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To convert only part of this Security, state the 

  
	
   

  	
   

  	
  principal amount to be converted (which must be

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

  	
   

  	
  $1,000 or an integral multiple of $1,000): 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
  If you want the stock certificate made out in

  
	
   

  	
   

  	
  another person’s name fill in the form below: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  and irrevocably appoint 

  	
   

  	
   

  	
   

  
	
  agent to transfer this Security on the books of the
  Company. 

  	
   

  	
   

  
	
  The agent may substitute another to act for him.

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Print or type other person’s name, address

  
	
  Signature Guaranteed 

  	
   

  	
  and zip code)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
   

  
	
  Participant in a Recognized Signature Guarantee

  Medallion Program 

  	
   

  	
  (Sign exactly as your name appears on the other

  side of this Security)

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  	
   

  
								

 

 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 2012, 2017, 2022 or 2026)

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

 22Exhibit 4.3

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 shall be unsecured and
unsubordinated indebtedness of the Guarantor and rank equally with other
unsecured and unsubordinated indebtedness of the Guarantor that is currently
outstanding or that it may issue in the future. 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 November 20, 2006, 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 this
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.

Neither any limited or general partner of the
Guarantor, including Vornado Realty Trust in its capacity as general partner,
nor any principal, shareholder, officer, director, trustee or employee of any
limited or general partner of the Guarantor or of any successor of any limited
or general partner of the Guarantor has any obligation for payment of the
Guarantor’s obligations under the guarantee or for any of the Guarantor’s
obligations, covenants or agreements contained in this Guarantee or the
Indenture. By accepting the Securities on which this Guarantee is endorsed and
this Guarantee, you waive and release all liability of this kind. The waiver
and release are part of the consideration for the issuance of this Guarantee.

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:  March 27, 2007

 

	
  

  	
  VORNADO REALTY L.P.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  VORNADO REALTY TRUST,

  	
   

  	
   

  
	
   

  	
   

  	
  its sole General
  Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:     /s/ Michael
  Fascitelli

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael Fascitelli

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President

  	
   

  	
   

  

 

Attest:

	
  /s/ Alan J. Rice

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Alan J. Rice

  	
   

  	
   

  
	
  Title:

  	
  Secretary

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