Document:

exv10w5

 

EXHIBIT 10.5

November, 2005

ANADARKO PETROLEUM CORPORATION

1999 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

(Seven-Year Term)

for Canadian Nationals

     1. To the extent that the right to exercise Options has accrued hereunder, the Options, or any
part thereof, may be exercised in whole or in part by filing a written notice with the Corporate
Secretary of the Company at its corporate headquarters. Such notice shall be in the form specified
by the Committee. If no form has been specified, such notice shall specify the number of Options
that the Participant wants to exercise and the method of exercise. Payments of all amounts due
shall be made by check payable to the Company. Except as otherwise provided by the Committee
before an Option is exercised: (i) all or a portion of the Exercise Price may be paid by delivery
of Mature Shares having an aggregate Fair Market Value (valued as of the date of exercise) that is
equal to the amount of cash that would otherwise be required; and (ii) the Participant may pay the
Exercise Price by authorizing a third party to sell Shares (or a sufficient portion of the Shares)
acquired upon exercise of the Option and remit to the Company a sufficient portion of the sale
proceeds to pay the entire Exercise Price and any tax withholding resulting from such exercise. No
Shares shall be issued or delivered until full payment therefor has been made.

     2. The Options may not be exercised unless the Participant is at the time of such exercise an
employee of the Company, or an Affiliate, and shall have been continuously employed by the Company,
or an Affiliate, since the date the Options were granted; provided, however, that the Options shall
be exercisable following the termination of the Participant’s employment during the term of the
Options as provided in sections (i) through (v) below. Options, which are not and do not become
exercisable at the time of the Participants termination of employment shall, coincident therewith,
terminate and be of no further force or effect.

     (i) Retirement. If the Participant shall cease to be an employee of the Company, or
an Affiliate, by reason of retirement pursuant to a pension or retirement plan of the Company, or
of a subsidiary, the Participant (or, in the event of Participant’s death, the Participant’s legal
representative) may, within a period of not more than thirty-six (36) months after the date of
cessation of employment, exercise the Options if and to the extent they were exercisable on the
date of cessation. In no event may the Options be exercised more than seven (7) years from the
date of grant.

     (ii) Death or Disability of Participant. In the event of the death of the Participant
while an active employee of the Company, or an Affiliate, or if the Participant shall cease to be
an employee of the Company, or an Affiliate, by reason of total disability, as defined in the
Company’s Disability Plan, any outstanding Options granted to the
Participant shall vest and be immediately exercisable with respect to all or any part of the
Options which remain unexercised. In the event of the death of the Participant, the Participant’s
legal representative or other person or persons to whom the Participant’s rights under the Options
shall pass by the Participant’s will or the laws of descent and distribution, may,

 

 

within a period
of not more than twelve (12) months after the date of death, exercise the Options. In the event of
the total disability of the Participant, the Participant (or, in the event of Participant’s death,
the Participant’s legal representative) may, within a period of not more than thirty-six (36)
months after the date of cessation of employment, exercise the Options. In no event may the
Options be exercised more than seven (7) years from the date of grant.

     (iii) Termination Without Cause. If the Participant’s employment with the Company, or
an Affiliate, is terminated by the Company or an Affiliate due to a reduction in force, job
abolishment, or at the convenience of the Company, or an Affiliate as determined by the Company,
the Participant (or, in the event of the Participant’s death, the Participant’s legal
representative) may, within a period of not more than three (3) months after such cessation of
employment, exercise the Options if and to the extent they were exercisable at the date of such
cessation. In no event may the Options be exercised more than seven (7) years from the date of
grant.

     (iv) Termination following Change of Control. If the Participant’s employment with
the Company, or an Affiliate, is terminated following Change of Control and the Participant
received a benefit under the Key Employee Change of Control Contract or the Change of Control
Severance Pay Plan, the Participant (or, in the event of the Participant’s death, the Participant’s
legal representative) may, within a period of not more than three (3) months after such cessation
of employment, exercise the Options if and to the extent they were exercisable at the date of such
cessation. In no event may the Options be exercised more than seven (7) years from the date of
grant.

     (v) Voluntary Termination. If the Participant voluntarily terminates his or her
employment with the Company, or an Affiliate, the Participant (or, in the event of the
Participant’s death, the Participant’s legal representative) may, within a period of not more than
three (3) months after such cessation of employment, exercise the Options if and to the extent they
were exercisable at the date of such cessation. In no event may the Options be exercised more than
seven (7) years from the date of grant.

     Notwithstanding anything to the contrary, if the Participant is terminated by the Company, or
an Affiliate, as provided in (iii), (iv) and (v) above and the Participant qualifies for retirement
under the Company’s retirement plan, the Participant shall be deemed to have terminated because of
retirement.

     3. If the Participant’s employment with the Company, or an Affiliate, is terminated by the
Company or an Affiliate due to a reduction in force, job abolishment, or at the convenience of the
Company, or an Affiliate, any and all unvested Options granted hereunder will vest and become fully
exercisable on the date of termination. 

     4. The Options granted hereunder are not transferable by the Participant except by will or the
laws of descent and distribution. Options are exercisable, during the Participant’s lifetime, only
by the Participant. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose
of the Options, or of any right or privilege conferred hereby, contrary to the provisions hereof,
or upon the levy of any attachment or similar process upon the Options or any right or privilege
conferred hereby, the Options and the right and privilege conferred hereby shall immediately become
null and void.

     5. The Options may be adjusted or required to be surrendered pursuant to the provisions of

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the 1999 Stock Incentive Plan.

     6. The Participant shall have no rights as a stockholder with respect to any Shares subject to
the Options prior to the date of issuance to the Participant of a certificate or certificates for
such Shares.

     7. The Participant shall be considered to be in the employment of the Company, or an
Affiliate, as long as the Participant remains an employee of either the Company, or an Affiliate,
or a corporation or a parent or subsidiary of a corporation assuming or substituting a new option
for this Option. Any question as to whether and when there has been a termination of such
employment, and the cause of such termination, shall be determined either by the Committee or the
Board of Directors of the employing corporation, and its determination shall be final. Nothing
herein contained shall confer upon the Participant any right with respect to continuance of
employment by the Company, or an Affiliate, or interfere in any way with the right of the Company,
or an Affiliate, to terminate the Participant’s service, responsibilities, duties and authority to
represent the Company or such Affiliate at any time, in its sole discretion and with or without
cause subject to applicable law.

     8. If at any time the Company shall determine in its discretion that the listing or
qualification of Shares subject hereto under any securities exchange requirements or under any
applicable state or federal law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting of the Options or the
issue of Shares hereunder, the Options may not be exercised in whole or in part unless such
listing, qualification, consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Company.

     9. There will be no tax withheld at the time of exercise. The Company will, however, report
this ordinary income on the employee’s T4 Slip for the year in which the employee exercises. In
addition, each employee will be entitled to a deduction equal to one half of the ordinary income
pursuant to paragraph 110 (i)(d) of the Income Tax Act (Canada).

     10. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their successors, but neither this Agreement nor any rights hereunder shall be assignable by the
Participant except as specifically provided for herein.

     11. Unless otherwise specifically defined herein, each term used herein which is defined in
the 1999 Stock Incentive Plan shall have the meaning assigned such term in the 1999 Stock Incentive
Plan.

     12. This Agreement may be amended by agreement of the Participant and the Company, without the
consent of any other person.

     13. This Agreement shall be governed by, and construed in accordance with the laws of the
State of Texas except for paragraph 8 of this Agreement, which shall be governed by, and construed
in accordance with, Canadian law.

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Exhibit 4.1

COMMERCIAL NET LEASE REALTY, INC.

as Issuer

to

WACHOVIA BANK, NATIONAL ASSOCIATION

as Trustee

Supplemental Indenture No. 6

Dated
as of November 17, 2005

 

Supplementing the Indenture dated as of March 25, 1998

 

$150,000,000

of

6.15% Notes due 2015

 

 

          SUPPLEMENTAL INDENTURE NO. 6, dated as of November 17, 2005 (the “Supplemental Indenture No.
6”), between COMMERCIAL NET LEASE REALTY, INC., a corporation duly organized and existing under the
laws of the State of Maryland (herein called the “Company”), and WACHOVIA BANK, NATIONAL
ASSOCIATION (as successor trustee to First Union National Bank), a national banking association
duly organized and existing under the laws of the United States of America, as Trustee (herein
called the “Trustee”).

RECITALS OF THE COMPANY

          The Company and the Trustee are parties to an Indenture, dated as of March 25, 1998 (the
“Original Indenture”), as supplemented by Supplemental Indenture No. 1 dated as of March 25, 1998,
Supplemental Indenture No. 2 dated as of June 21, 1999, Supplemental Indenture No. 3 dated as of
September 20, 2000, Supplemental Indenture No. 4 dated as of May 30, 2002 and Supplemental
Indenture No. 5 dated as of June 18, 2004 (together with the Original Indenture, Supplemental
Indentures 1 through 5 and this Supplemental Indenture No. 6, the “Indenture”) a form of which has
been filed with the Securities and Exchange Commission under the Securities Act of 1933, as
amended, as an exhibit to the Company’s Registration Statement on Form S-3 (Registration No.
333-105635), providing for the issuance from time to time of Debt Securities of the Company (the
“Securities”).

          The Company has heretofore issued, pursuant to the Indenture, (a) $100,000,000 aggregate
principal amount of 7-1/8% Notes due 2008, (b) $100,000,000 aggregate principal amount of 8.125%
Notes due 2004, (c) $20,000,000 aggregate principal amount of 8.50% Notes due 2010, (d) $50,000,000
aggregate principal amount of 7.75% Notes due 2012 and (e) $150,000,000 aggregate principal amount
of 6.25% Notes dues 2014.

          The
Company has commenced an offering of 6.15% Notes due 2015
(the “6.15% Notes”).

          Section 3.1 of the Original Indenture provides for various matters with respect to any series
of Securities issued under the Indenture to be established in an indenture supplemental to the
Indenture.

          Section 9.1(7) of the Original Indenture provides for the Company and the Trustee to enter
into an indenture supplemental to the Original Indenture to establish the form or terms of
Securities of any series as provided by Sections 2.1 and 3.1 of the Original Indenture.

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          The Board of Directors of the Company has duly adopted resolutions authorizing the Company to
execute and deliver this Supplemental Indenture No. 6.

          All the conditions and requirements necessary to make this Supplemental Indenture No. 6, when
duly executed and delivered, a valid and legally binding agreement in accordance with its terms and
for the purposes herein expressed, have been performed and fulfilled.

          NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE NO. 6 WITNESSETH:

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

ARTICLE ONE

RELATION TO INDENTURE; DEFINITIONS

          SECTION 1.1. Relation to Indenture.

          This Supplemental Indenture No. 6 constitutes an integral part of the Indenture.

          SECTION 1.2. Definitions.

          For all purposes of this Supplemental Indenture No. 6, the following terms shall have the
meanings specified except as otherwise expressly provided for or unless the context otherwise
requires. Capitalized terms used but not defined herein shall have the respective meanings
assigned to them in the Indenture. All references herein to Articles and Sections, unless
otherwise specified, refer to the corresponding Articles and
Sections of this Supplemental Indenture No. 6.

          “6.15% Notes” has the meaning given in the Recitals of the Company.

          “Acquired Indebtedness” means Indebtedness of a Person (i) existing at the time such Person
becomes a Subsidiary or (ii) assumed in connection with the acquisition of assets from such Person,
in each case, other than Indebtedness incurred in connection with, or in contemplation of, such
Person becoming a Subsidiary or such acquisition. Acquired Indebtedness shall be deemed to be
incurred on the date of the related acquisition of assets from any Person or the date the acquired
Person becomes a Subsidiary.

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          “Annual Debt Service Charge” for any period means the aggregate interest expense for such
period in respect of, and the amortization during such period of any original issue discount of,
Indebtedness of the Company and its Subsidiaries and the amount of dividends which are payable
during such period in respect of any Disqualified Stock.

          “Business Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday
nor a day on which banking institutions in the City of New York or in the City of Charlotte are
authorized or required by law, regulation or executive order to close.

          “Capital Stock” means, with respect to any Person, any capital stock (including preferred
stock), shares, interests, participations or other ownership interests (however designated) of such
Person and any rights (other than debt securities convertible into or exchangeable for corporate
stock), warrants or options to purchase any thereof.

          “Consolidated Income Available for Debt Service” for any period means Earnings from Operations
of the Company and its Subsidiaries plus amounts which have been deducted, and minus amounts which
have been added, for the following (without duplication): (i) interest on Indebtedness of the
Company and its Subsidiaries, (ii) provision for taxes of the Company and its Subsidiaries based on
income, (iii) amortization of debt discount, (iv) provisions for gains and losses on properties and
property depreciation and amortization, (v) the effect of any noncash charge resulting from a
change in accounting principles in determining Earnings from Operations for such period and (vi)
amortization of deferred charges.

          “Corporate Trust Office” means the office of the Trustee at which, at any particular time, its
corporate trust business for this transaction shall be principally administered, which office at
the date hereof is located at 225 Water Street, Third Floor, Jacksonville, Florida 32202, and for
purposes of the Place of Payment provisions of Sections 3.5 and 10.2 of the Original Indenture, is
located at 1525 West W.T. Harris Blvd., Charlotte, North Carolina 28288-1153.

          “Disqualified Stock” means, with respect to any Person, any Capital Stock of such Person which
by the terms of such Capital Stock (or by the terms of any security into which it is convertible or
for which it is exchangeable or exercisable), upon the happening of any event or otherwise (i)
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other
than Capital Stock which is redeemable solely in exchange for common stock), (ii) is convertible
into or exchangeable or exercisable for Indebtedness or Disqualified Stock or (iii) is redeemable
at the option of the holder thereof, in whole or in part (other than Capital Stock which is
redeemable solely in exchange for Capital Stock which is not Disqualified Stock or the redemption
price of which may, at the option of such Person, be paid in Capital Stock which is not
Disqualified Stock), in each case on or prior to the Stated Maturity
of the 6.15% Notes.

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          “Earnings from Operations” for any period means net earnings excluding gains and losses on
sales of investments, extraordinary items and property valuation losses, net as reflected in the
financial statements of the Company and its Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP.

          “Encumbrance” means any mortgage, lien, charge, pledge or security interest of any kind.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder by the Commission.

          “GAAP” means generally accepted accounting principles as used in the United States applied on
a consistent basis as in effect from time to time; provided that solely for purposes of any
calculation required by the financial covenants contained herein, “GAAP” shall mean generally
accepted accounting principles as used in the United States on the date hereof, applied on a
consistent basis.

          “Indebtedness” of the Company or any Subsidiary means any indebtedness of the Company or any
Subsidiary, whether or not contingent, in respect of (i) borrowed money or evidenced by bonds,
notes, debentures or similar instruments whether or not such indebtedness is secured by any
Encumbrance existing on property owned by the Company or any Subsidiary, (ii) indebtedness for
borrowed money of a Person other than the Company or a Subsidiary which is secured by any
Encumbrance existing on property owned by the Company or any Subsidiary, to the extent of the
lesser of (x) the amount of indebtedness so secured and (y) the fair market value (as determined in
good faith by the Board of Directors of the Company) of the property subject to such Encumbrance,
(iii) the reimbursement obligations, contingent or otherwise, in connection with any letters of
credit actually issued or amounts representing the balance deferred and unpaid of the purchase
price of any property or services, except any such balance that constitutes an accrued expense or
trade payable, or all conditional sale obligations or obligations under any title retention
agreement, (iv) the principal amount of all obligations of the Company or any Subsidiary with
respect to redemption, repayment or other repurchase of any Disqualified Stock, or (v) any lease of
property by the Company or any Subsidiary as lessee which is reflected on the Company’s
consolidated balance sheet as a capitalized lease in accordance with GAAP, and also includes, to
the extent not otherwise included, any obligation by the Company or any Subsidiary to be liable
for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the
ordinary course of business), Indebtedness of another Person (other than the Company or any
Subsidiary) (it being understood that Indebtedness shall be deemed to be incurred by the Company or
any Subsidiary whenever the Company or such Subsidiary shall create, assume, guarantee or otherwise
become liable in respect thereof).

          “Make-Whole Amount” means, in connection with any optional redemption or accelerated payment
of any 6.15% Note, the excess, if any, of (i) the aggregate present value as of the date of such
redemption or accelerated payment of each dollar of

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principal being redeemed or paid and the amount of interest (exclusive of interest accrued to the
date of redemption or accelerated payment) that would have been payable in respect of such dollar
if such redemption or accelerated payment had not been made, determined by discounting, on a
semi-annual basis, such principal and interest at the Reinvestment Rate (determined on the third
Business Day preceding the date such notice of Redemption is given or declaration of acceleration
is made) from the respective dates on which such principal and interest would have been payable if
such redemption or accelerated payment had not been made, over (ii) the aggregate principal amount
of the 6.15% Notes being redeemed or paid.

          “Redemption Price” has the meaning specified in Section 2.5 hereof.

          “Reinvestment Rate” means 0.25 percent (twenty-five one hundredths of one percent) plus the
arithmetic mean of the yields under the respective headings “This Week” and “Last Week” published
in the Statistical Release under the caption “Treasury constant maturities” for the maturity
(rounded to the nearest month) corresponding to the remaining life to maturity, as of the payment
date of the principal being redeemed or paid. If no maturity exactly corresponds to such maturity,
yields for the two published maturities most closely corresponding to such maturity shall be
calculated pursuant to the immediately preceding sentence and the Reinvestment Rate shall be
interpolated or extrapolated from such yields on a straight-line basis, rounding in each of such
relevant periods to the nearest month. For such purposes of calculating the Reinvestment Rate, the
most recent Statistical Release published prior to the date of determination of the Make-Whole
Amount shall be used.

          “Statistical Release” means the statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Federal Reserve System and which establishes yields on
actively traded United States government securities adjusted to constant maturities or, if such
statistical release is not published at the time of any determination of the Make-Whole Amount,
then such other reasonably comparable index which shall be designated by the Company.

          “Subsidiary” means, with respect to any Person, any corporation or other entity of which a
majority of (i) the voting power of the voting equity securities or (ii) the outstanding equity
interests of which are owned, directly or indirectly, by such Person. For the purposes of this
definition, “voting equity securities” means equity securities having voting power for the election
of directors, whether at all times or only so long as no senior class of security has such voting
power by reason of any contingency.

          “Total Assets” as of any date means the sum of (i) the Undepreciated Real Estate Assets and
(ii) all other assets of the Company and its Subsidiaries determined on a consolidated basis in
accordance with GAAP (but excluding accounts receivable and intangibles).

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          “Total Unencumbered Assets” means the sum of (i) those Undepreciated Real Estate Assets not
subject to an Encumbrance for borrowed money and (ii) all other assets of the Company and its
Subsidiaries not subject to an Encumbrance for borrowed money, all determined on a consolidated
basis in accordance with GAAP (but excluding accounts receivable and intangibles).

          “Undepreciated Real Estate Assets” as of any date means the cost (original cost plus capital
improvements) of real estate assets of the Company and its Subsidiaries on such date, before
depreciation and amortization, determined on a consolidated basis in accordance with GAAP.

          “Unsecured Indebtedness” means Indebtedness which is not secured by any Encumbrance upon any
of the properties of the Company or any Subsidiary.

ARTICLE TWO

THE SERIES OF NOTES

          SECTION 2.1. Title of the Securities.

          There shall be a series of Securities designated the “6.15% Notes due 2015.”

          SECTION 2.2. Limitation on Aggregate Principal Amount.

          (a) The aggregate principal amount of the 6.15% Notes shall be limited to $150,000,000,
provided that the Company may, without the consent of the Holders of the Outstanding 6.15% Notes,
“reopen” this series of Securities so as to increase the aggregate principal amount of 6.15% Notes
Outstanding in compliance with the procedures set forth in the Indenture, including Sections 3.1
and 3.3 thereof, so long as any such additional notes have the same tenor and terms (including,
without limitation, rights to receive accrued and unpaid interest) as the 6.15% Notes then
Outstanding.

          (b) Nothing
contained in this Section 2.2 or elsewhere in this Supplemental
Indenture No. 6, or
in the 6.15% Notes, is intended to or shall limit execution by the Company or authentication or
delivery by the Trustee of 6.15% Notes under the circumstances contemplated by Sections 3.3, 3.4,
3.5, 3.6, 9.6, 11.7 and 13.5 of the Original Indenture.

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          SECTION 2.3. Interest and Interest Rates; Maturity Date of 6.15% Notes.

          (a) The
6.15% Notes will bear interest at a rate of 6.15% per annum, from
November 17, 2005 or
from the immediately preceding Interest Payment Date to which interest has been paid or duly
provided for, payable semi-annually in arrears on June 15 and December 15 of each year, commencing
June 15, 2006 (each, an “Interest Payment Date”), to the Person in whose name such 6.15% Note is
registered at the close of business on June 1 or December 1 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date (each, a “Regular Record Date”). Interest
on the 6.15% Notes will be computed on the basis of a 360-day year comprised of twelve 30-day
months.

          (b) The interest so payable on any 6.15% Note which is not punctually paid or duly provided
for on any Interest Payment Date (“Defaulted Interest”) shall forthwith cease to be payable to the
Person in whose name such 6.15% Note is registered on the relevant Regular Record Date, and such
Defaulted Interest shall instead be payable either (i) to the Person in whose name such 6.15% Note
is registered on the Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice of which shall be given to the Holder of such 6.15% Note not less than 10 days
prior to such Special Record Date or (ii) may be paid at any time in any other lawful manner in
accordance with the Indenture.

          (c) If any Interest Payment Date or Stated Maturity falls on a day that is not a Business Day,
the required payment shall be made on the next Business Day as if it were made on the date such
payment was due and no interest shall accrue on the amount so payable for the period from and after
such Interest Payment Date or Stated Maturity, as the case may be.

          (d) The 6.15% Notes will mature on December 15, 2015.

          SECTION 2.4. Limitations on Incurrence of Indebtedness.

          (a) The Company will not, and will not permit any Subsidiary to, incur any Indebtedness if,
immediately after giving effect to the incurrence of such additional Indebtedness and the
application of the proceeds thereof, the aggregate principal amount of all outstanding Indebtedness
of the Company and its Subsidiaries (determined on a consolidated basis in accordance with GAAP) is
greater than 60% of the sum of (without duplication) (i) the Total Assets of the Company and its
Subsidiaries as of the end of the calendar quarter covered in the Company’s Annual Report on Form
10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission
(or, if such filing is not permitted under the Exchange Act, with the Trustee) prior to the
incurrence of such additional Indebtedness and (ii) the purchase price of any real estate assets or
mortgages receivable acquired, and the amount of any securities offering proceeds received (to the
extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to
reduce Indebtedness), by the Company or any

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Subsidiary since the end of such calendar quarter, including those proceeds obtained in connection
with the incurrence of such additional Indebtedness.

          (b) In addition to the limitation set forth in subsection (a) of this Section 2.4, the Company
will not, and will not permit any Subsidiary to, incur any Indebtedness if the ratio of
Consolidated Income Available for Debt Service to the Annual Debt Service Charge for the four
consecutive fiscal quarters most recently ended prior to the date on which such additional
Indebtedness is to be incurred shall have been less than 1.5:1, on a pro forma basis after giving
effect thereto and to the application of the proceeds therefrom, and calculated on the assumption
that (i) such Indebtedness and any other Indebtedness incurred by the Company and its Subsidiaries
since the first day of such four-quarter period and the application of the proceeds therefrom,
including to refinance other Indebtedness, had occurred at the beginning of such period; (ii) the
repayment or retirement of any other Indebtedness by the Company and its Subsidiaries since the
first day of such four-quarter period had been repaid or retired at the beginning of such period
(except that, in making such computation, the amount of Indebtedness under any revolving credit
facility shall be computed based upon the average daily balance of such Indebtedness during such
period); (iii) in the case of Acquired Indebtedness or Indebtedness incurred in connection with any
acquisition since the first day of such four-quarter period, the related acquisition had occurred
as of the first day of such period with the appropriate adjustments with respect to such
acquisition being included in such pro forma calculation; and (iv) in the case of any acquisition
or disposition by the Company or its Subsidiaries of any asset or group of assets since the first
day of such four-quarter period, whether by merger, stock purchase or sale, or asset purchase or
sale, such acquisition or disposition or any related repayment of Indebtedness had occurred as of
the first day of such period with the appropriate adjustments with respect to such acquisition or
disposition being included in such pro forma calculation.

          (c) In addition to the limitations set forth in subsections (a) and (b) of this Section 2.4,
the Company will not, and will not permit any Subsidiary to, incur any Indebtedness secured by any
Encumbrance upon any of the property of the Company or any Subsidiary if, immediately after giving
effect to the incurrence of such additional Indebtedness and the application of the proceeds
thereof, the aggregate principal amount of all outstanding Indebtedness of the Company and its
Subsidiaries (determined on a consolidated basis in accordance with GAAP) which is secured by any
Encumbrance on property of the Company or any Subsidiary is greater than 40% of the sum of (without
duplication) (i) the Total Assets of the Company and its Subsidiaries as of the end of the calendar
quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as
the case may be, most recently filed with the Commission (or, if such filing is not permitted under
the Exchange Act, with the Trustee) prior to the incurrence of such additional Indebtedness and
(ii) the purchase price of any real estate assets or mortgages receivable acquired, and the amount
of any securities offering proceeds received (to the extent that such proceeds were not used to
acquire real estate assets or mortgages receivable or used to reduce Indebtedness), by the Company
or any

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Subsidiary since the end of such calendar quarter, including those proceeds obtained in connection
with the incurrence of such additional Indebtedness.

          (d) The Company and its Subsidiaries may not at any time own Total Unencumbered Assets equal
to less than 150% of the aggregate outstanding principal amount of the Unsecured Indebtedness of
the Company and its Subsidiaries on a consolidated basis.

          (e) For purposes of this Section 2.4, Indebtedness shall be deemed to be “incurred” by the
Company or a Subsidiary whenever the Company or such Subsidiary shall create, assume, guarantee or
otherwise become liable in respect thereof.

          SECTION 2.5. Redemption.

          The 6.15% Notes may be redeemed at any time at the option of the Company, in whole or in part,
at a redemption price equal to the sum of (i) the principal
amount of the 6.15% Notes being redeemed plus
accrued interest thereon to the Redemption Date and (ii) the Make-Whole Amount, if any, with
respect to such 6.15% Notes (the “Redemption Price”).

          SECTION 2.6. Place of Payment.

          The Place of Payment where the 6.15% Notes may be presented or surrendered for payment, where
the 6.15% Notes may be surrendered for registration of transfer or exchange and where notices and
demands to and upon the Company in respect of the 6.15% Notes and the Indenture may be served shall
be in the City of Charlotte, North Carolina, and the office or agency for such purpose shall
initially be located at Wachovia Bank, National Association, 1525 West W.T. Harris Blvd.,
Charlotte, North Carolina 28288-1153.

          SECTION 2.7. Method of Payment.

          Payment of the principal of and interest on the 6.15% Notes will be made at the office or
agency of the Company maintained for that purpose (which shall initially be an office or agency of
the Trustee), 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, payments of principal and interest on the 6.15% Notes (other than payments of principal and
interest due at Stated Maturity) may be made (i) by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer to
an account maintained by the Person entitled thereto located within the United States, provided,
that such Person owns 6.15% Notes in an aggregate principal amount of at least $1,000,000 and such
Person makes a written request therefor for the appropriate Interest Payment Date.

          SECTION 2.8. Currency.

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          Principal and interest on the 6.15% Notes shall be payable in Dollars.

          SECTION 2.9. Registered Securities; Global Form.

          The 6.15% Notes shall be issuable and transferable in fully registered form as Registered
Securities, without coupons. The 6.15% Notes shall each be issued in the form of one or more
permanent Global Securities. The depository for the 6.15% Notes shall initially be The Depository
Trust Company (“DTC”). The 6.15% Notes shall not be issuable in definitive form except as provided
in Section 3.5 of the Original Indenture.

          SECTION
2.10. Form of 6.15% Notes.

          The 6.15% Notes shall be substantially in the form attached as Exhibit A hereto.

          SECTION 2.11. Registrar and Paying Agent.

          The
Trustee shall initially serve as Registrar and Paying Agent for the 6.15% Notes.

          SECTION 2.12. Defeasance.

          The provisions of Sections 14.2 and 14.3 of the Original Indenture, together with the other
provisions of Article XIV of the Original Indenture, shall be applicable to the 6.15% Notes. The
provisions of Section 14.3 of the Original Indenture shall apply to the covenants set forth in
Section 2.4 of this Supplemental Indenture No. 6 and to those covenants specified in Section 14.3
of the Original Indenture.

          SECTION 2.13. Waiver of Certain Covenants.

          Notwithstanding the provisions of Section 10.11 of the Original Indenture, the Company may
omit in any particular instance to comply with any term, provision or condition set forth in
Sections 10.4 to 10.8, inclusive, of the Original Indenture, with Section 2.4 of this Supplemental
Indenture No. 6 and with any other term, provision or condition with respect to the 6.15% Notes
(except any such term, provision or condition which could not be amended without the consent of all
Holders of the 6.15% Notes), if before or after the time for such compliance the Holders of at
least a majority in principal amount of all outstanding 6.15% Notes or such series thereof, as
applicable, by Act of such Holders, either waive such compliance in such instance or generally
waive compliance with such covenant or condition. Except to the extent so expressly waived, and
until such waiver shall become effective, the obligations of the Company and the duties of the
Trustee in respect of any such term, provision or condition shall remain in full force and effect.

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          SECTION 2.14. Acceleration of Maturity; Recission and Annulment.

          If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series may declare the principal of, and the
Make-Whole Amount, if any, on, all the Securities of that series to be due and payable immediately,
by a notice in writing to the Company (and to the Trustee if given by the Holders), and upon any
such declaration such principal or specified portion thereof shall become immediately due and
payable. If an Event of Default with respect to the Securities of any series set forth in Sections
5.1(1), 5.1(2) and 5.1(6) of the Original Indenture occurs and is continuing, then in every such
case all the Securities of that series shall become immediately due and payable, without notice to
the Company, at the principal amount thereof plus accrued interest to the date the Securities of
that series are paid plus the Make-Whole Amount, if any, on the Securities of that series.

          SECTION 2.15. Provision of Financial Information.

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

          The Company will also in any event (x) within 15 days of each Required Filing Date (i) if the
Company is not then subject to such Section 13 or 15(d),
transmit by mail to all Holders of 6.15% Notes,
as their names and addresses appear in the Security Register, without cost to such Holders, copies
of the annual reports and quarterly reports and other documents that the Company would have been
required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act if the
Company were subject to such Sections and (ii) file with the Trustee copies of the annual reports,
quarterly reports and other documents that the Company would have been required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act if the Company were subject to such
Sections and (y) if filing such documents by the Company with the Commission is not permitted under
the Exchange Act, promptly upon written request and payment of the reasonable cost of duplication
and delivery, supply copies of such documents to any prospective Holder.

          SECTION 2.16. Event of Default.

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          If an Event of Default pursuant to Section 5.1(6) or (7) of the Original Indenture shall have
occurred, the principal amount of and the Make-Whole Amount on all outstanding notes shall become
due and payable without any declaration or other act on the part of the Trustee or of the Holders.

ARTICLE THREE

MISCELLANEOUS PROVISIONS

          SECTION 3.1. Ratification of Original Indenture.

          Except as expressly modified or amended hereby, the Original Indenture continues in full force
and effect and is in all respects confirmed and preserved.

          SECTION 3.2. Fiscal Year.

          The Company shall notify the Trustee of its fiscal year and any change thereof.

          SECTION 3.3. Governing Law.

          This
Supplemental Indenture No. 6 and each 6.15% Note shall be governed by and construed in
accordance with the laws of the State of New York. This Supplemental Indenture No. 6 is subject to
the provisions of the Trust Indenture Act of 1939, as amended, and shall, to the extent applicable,
be governed by such provisions.

          SECTION 3.4. Counterparts.

          This Supplemental Indenture No. 6 may be executed in any number of counterparts, each of which
so executed shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

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     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 6 to be
duly executed by their respective officers hereunto duly authorized, all as of the day and year
first written above.

	 	 	 	 	 
	 	COMMERCIAL NET LEASE REALTY, INC.,

as Issuer

 	 
	 	By:  	 	 
	 	 	Kevin B. Habicht 	 
	 	 	Executive Vice President,

Chief Financial Officer, Assistant Secretary and Treasurer 	 
	 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

as Trustee

 	 
	 	By:  	 	 
	 	 	Stephanie Moore 	 
	 	 	Assistant Vice President 	 

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Exhibit A

Form of 6.15% Notes

15

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