Document:

EXHIBIT 4.28

 

 

 

iSTAR
FINANCIAL INC.

SENIOR FLOATING RATE NOTES DUE 2009

 

 

TENTH
SUPPLEMENTAL INDENTURE

Dated as of December 14, 2005

 

 

US
BANK TRUST NATIONAL 

ASSOCIATION

Trustee

 

 

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture Section

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  7.10

  
	
   

  	
  (b)

  	
   

  	
  7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  11.03

  
	
   

  	
  (c)

  	
   

  	
  11.03

  
	
  313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)(2)

  	
   

  	
  7.07

  
	
   

  	
  (c)

  	
   

  	
  7.06;11.02

  
	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  314

  	
  (a)

  	
   

  	
  4.03;11.02

  
	
   

  	
  (c)(1)

  	
   

  	
  11.04

  
	
   

  	
  (c)(2)

  	
   

  	
  11.04

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  11.05

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  7.01

  
	
   

  	
  (b)

  	
   

  	
  7.05,11.02

  
	
   

  	
  (c)

  	
   

  	
  7.01

  
	
   

  	
  (d)

  	
   

  	
  7.01

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a) (last sentence)

  	
   

  	
  2.09

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
   

  	
  (c)

  	
   

  	
  2.13

  
	
  317

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  2.04

  
	
  318

  	
  (a)

  	
   

  	
  11.01

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  11.01

  

 

N.A. means not applicable.

*  This Cross-Reference Table is
not part of the Indenture.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  1

  	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
  1

  
	
  Section 1.01.

  	
  Definitions

  	
  1

  
	
  Section 1.02.

  	
  Other
  Definitions

  	
  14

  
	
  Section 1.03.

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
  14

  
	
  Section 1.04.

  	
  Rules
  of Construction

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2

  	
  THE
  NOTES

  	
  14

  
	
  Section 2.01.

  	
  Form
  and Dating

  	
  14

  
	
  Section 2.02.

  	
  Execution
  and Authentication

  	
  15

  
	
  Section 2.03.

  	
  Registrar
  and Paying Agent

  	
  15

  
	
  Section 2.04.

  	
  Paying
  Agent to Hold Money in Trust

  	
  16

  
	
  Section 2.05.

  	
  Holder
  Lists

  	
  16

  
	
  Section 2.06.

  	
  Transfer
  and Exchange

  	
  16

  
	
  Section 2.07.

  	
  Replacement
  Notes

  	
  19

  
	
  Section 2.08.

  	
  Outstanding
  Notes

  	
  19

  
	
  Section 2.09.

  	
  Treasury
  Notes

  	
  20

  
	
  Section 2.10.

  	
  Temporary
  Notes

  	
  20

  
	
  Section 2.11.

  	
  Cancellation

  	
  20

  
	
  Section 2.12.

  	
  Defaulted
  Interest

  	
  20

  
	
  Section 2.13.

  	
  Record
  Date

  	
  20

  
	
  Section 2.14.

  	
  CUSIP
  Numbers

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  	
  REDEMPTION
  AND PREPAYMENT

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4

  	
  COVENANTS

  	
  21

  
	
  Section 4.01.

  	
  Payment
  of Notes

  	
  21

  
	
  Section 4.02.

  	
  Maintenance
  of Office or Agency

  	
  21

  
	
  Section 4.03.

  	
  Reports
  to Holders

  	
  21

  
	
  Section 4.04.

  	
  Compliance
  Certificate

  	
  22

  
	
  Section 4.05.

  	
  Taxes

  	
  22

  
	
  Section 4.06.

  	
  Stay,
  Extension and Usury Laws

  	
  22

  
	
  Section 4.07.

  	
  Limitation
  on Incurrence of Additional Indebtedness

  	
  22

  
	
  Section 4.08.

  	
  Corporate
  Existence

  	
  23

  
	
  Section 4.09.

  	
  Maintenance
  of Total Unencumbered Assets

  	
  23

  
	
  Section 4.10.

  	
  Termination
  of Certain Covenants if Certain Ratings are Assigned

  	
  23

  
	
  Section 4.11.

  	
  Maintenance
  of Properties; Books and Records; Compliance with Law

  	
  23

  
				

 

i

 

	
  ARTICLE
  5

  	
  SUCCESSORS

  	
  24

  
	
  Section 5.01.

  	
  Merger,
  Consolidation, or Sale of Assets

  	
  24

  
	
  Section 5.02.

  	
  Successor
  Corporation Substituted

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  	
  DEFAULTS
  AND REMEDIES

  	
  25

  
	
  Section 6.01.

  	
  Events
  of Default

  	
  25

  
	
  Section 6.02.

  	
  Acceleration

  	
  26

  
	
  Section 6.03.

  	
  Other
  Remedies

  	
  27

  
	
  Section 6.04.

  	
  Waiver
  of Past Defaults

  	
  27

  
	
  Section 6.05.

  	
  Control
  by Majority

  	
  27

  
	
  Section 6.06.

  	
  Limitation
  on Suits

  	
  27

  
	
  Section 6.07.

  	
  Rights
  of Holders of Notes to Receive Payment

  	
  28

  
	
  Section 6.08.

  	
  Collection
  Suit by Trustee

  	
  28

  
	
  Section 6.09.

  	
  Trustee
  May File Proofs of Claim

  	
  28

  
	
  Section 6.10.

  	
  Priorities

  	
  29

  
	
  Section 6.11.

  	
  Undertaking
  for Costs

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  7

  	
  TRUSTEE

  	
  29

  
	
  Section 7.01.

  	
  Duties
  of Trustee

  	
  29

  
	
  Section 7.02.

  	
  Rights
  of Trustee

  	
  30

  
	
  Section 7.03.

  	
  Individual
  Rights of Trustee

  	
  31

  
	
  Section 7.04.

  	
  Trustee’s
  Disclaimer

  	
  31

  
	
  Section 7.05.

  	
  Notice
  of Defaults

  	
  31

  
	
  Section 7.06.

  	
  Reports
  by Trustee

  	
  31

  
	
  Section 7.07.

  	
  Compensation
  and Indemnity

  	
  31

  
	
  Section 7.08.

  	
  Replacement
  of Trustee

  	
  32

  
	
  Section 7.09.

  	
  Successor
  Trustee by Merger, etc.

  	
  33

  
	
  Section 7.10.

  	
  Eligibility;
  Disqualification

  	
  33

  
	
  Section 7.11.

  	
  Preferential
  Collection of Claims

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  8

  	
  LEGAL
  DEFEASANCE AND COVENANT DEFEASANCE

  	
  33

  
	
  Section 8.01.

  	
  Option
  to Effect Legal Defeasance or Covenant Defeasance

  	
  33

  
	
  Section 8.02.

  	
  Legal
  Defeasance and Discharge

  	
  33

  
	
  Section 8.03.

  	
  Covenant
  Defeasance

  	
  34

  
	
  Section 8.04.

  	
  Conditions
  to Legal or Covenant Defeasance

  	
  34

  
	
  Section 8.05.

  	
  Deposited
  Money and Government Securities to be Held in Trust; Other Miscellaneous
  Provisions

  	
  35

  
						

 

ii

 

	
  Section 8.06.

  	
  Repayment
  to Company

  	
  36

  
	
  Section 8.07.

  	
  Reinstatement

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  9

  	
  AMENDMENT,
  SUPPLEMENT AND WAIVER

  	
  36

  
	
  Section 9.01.

  	
  Without
  Consent of Holders of Notes

  	
  36

  
	
  Section 9.02.

  	
  With
  Consent of Holders of Notes

  	
  37

  
	
  Section 9.03.

  	
  Compliance
  with Trust Indenture Act

  	
  38

  
	
  Section 9.04.

  	
  Revocation
  and Effect of Consents

  	
  38

  
	
  Section 9.05.

  	
  Notation
  on or Exchange of Notes

  	
  38

  
	
  Section 9.06.

  	
  Trustee
  to Sign Amendments, etc

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10

  	
  SATISFACTION
  AND DISCHARGE

  	
  38

  
	
  Section 10.01.

  	
  Satisfaction
  and Discharge

  	
  38

  
	
  Section 10.02.

  	
  Application
  of Trust Money

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11

  	
  MISCELLANEOUS

  	
  39

  
	
  Section 11.01.

  	
  Trust
  Indenture Act Controls

  	
  39

  
	
  Section 11.02.

  	
  Notices

  	
  39

  
	
  Section 11.03.

  	
  Communication
  by Holders of Notes with Other Holders of Notes

  	
  40

  
	
  Section 11.04.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  41

  
	
  Section 11.05.

  	
  Statements
  Required in Certificate or Opinion

  	
  41

  
	
  Section 11.06.

  	
  Rules
  by Trustee and Agents

  	
  41

  
	
  Section 11.07.

  	
  No
  Personal Liability of Directors, Officers, Employees and Stockholders

  	
  41

  
	
  Section 11.08.

  	
  Governing
  Law

  	
  41

  
	
  Section 11.09.

  	
  No
  Adverse Interpretation of Other Agreements

  	
  41

  
	
  Section 11.10.

  	
  Successors

  	
  42

  
	
  Section 11.11.

  	
  Severability

  	
  42

  
	
  Section 11.12.

  	
  Counterpart
  Originals

  	
  42

  
	
  Section 11.13.

  	
  Table
  of Contents, Headings, etc.

  	
  42

  
	
  Section 11.14.

  	
  Conflicts
  with Indenture

  	
  42

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  FORM
  OF NOTE

  	
   

  
						

 

iii

 

SUPPLEMENTAL INDENTURE dated
as of December 14, 2005 between iStar Financial Inc., a Maryland
corporation (the “Company”), and
US Bank Trust National Association, as trustee (the “Trustee”).

 

The Company has heretofore
delivered to the Trustee an Indenture dated as of February 5, 2001, a form
of which has been filed with the Securities and Exchange Commission under the
Securities Act as an exhibit to the Company’s Registration Statement on
Form S-3 (Registration No. 333-124795), providing for the issuance
from time to time of debt securities of the Company.

 

The Board of Directors of
the Company has duly adopted resolutions authorizing the Company to execute and
deliver this Supplemental Indenture.

 

The Company and the Trustee
agree as follows for the benefit of each other and for the equal and ratable
benefit of the Holders of the Notes:

ARTICLE
1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01.      Definitions.

 

“Acquired Indebtedness” means Indebtedness of a Person or any
of its Subsidiaries existing at the time such Person becomes a Subsidiary of
the Company or at the time it merges or consolidates with the Company or any of
its Subsidiaries or assumed in connection with the acquisition of assets from
such Person and in each case whether or not incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Subsidiary of the Company or such acquisition, merger or consolidation.

 

“Additional Notes” means additional Notes (other than the
Initial Notes) issued under this Supplemental Indenture in accordance with
Section 2.02 and 4.07.

 

“Affiliate” means, with respect to any specified Person, any
other Person who directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such specified
Person.  The term “control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative of the foregoing.

 

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

 

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

 

“Asset Acquisition” means: 
(1) an Investment by the Company or any Subsidiary of the Company
in any other Person pursuant to which such Person shall become a Subsidiary of
the Company or any Subsidiary of the Company, or shall be merged with or into
the Company or any Subsidiary of the Company; or (2) the acquisition by
the Company or any Subsidiary of the Company of the assets of any Person (other
than a Subsidiary of the Company) that constitute all or substantially all
of the assets of such Person or comprises any division or line of business of such
Person or any other properties or assets of such Person other than in the
ordinary course of business.

 

 

“Asset Sale” means any direct or indirect sale, issuance,
conveyance, transfer, lease (other than operating leases entered into in the
ordinary course of business), assignment or other transfer for value by the
Company or any Subsidiary of the Company (including any sale and leaseback
transaction) to any Person other than the Company or a Wholly Owned
Subsidiary of the Company of:

 

(1)           any Capital Stock of any Subsidiary of the Company; or

 

(2)           any of the Company’s or its Subsidiaries’ other property
or assets other than sales of loan-related assets made in the ordinary course
of the Company’s real estate lending business and other asset sales made in the
ordinary course of the Company’s business.

 

“Bankruptcy Law” means Title 11, United States Bankruptcy Code
of 1978, as amended, or any similar United States federal or state law relating
to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization
or relief of debtors or any amendment to, succession to or change in any such
law.

 

“Board of Directors” means, as to any Person, the board of
directors of such Person or any duly authorized committee thereof.

 

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

 

“Business Day” means each Monday, Tuesday, Wednesday, Thursday
and Friday that is not a day on which banking institutions in the City of New
York are authorized or obligated by law or executive order to close.

 

“Capitalized Lease Obligation” means, as to any Person, the
obligations of such Person under a lease that are required to be classified and
accounted for as capital lease obligations under GAAP and, for purposes of this
definition, the amount of such obligations at any date shall be the capitalized
amount of such obligations at such date, determined in accordance with GAAP.

 

“Capital Stock” means:

 

(1)           with respect to any Person that is a corporation, any and
all shares, interests, participations or other equivalents (however designated
and whether or not voting) of corporate stock, including each class of
Common Stock and Preferred Stock of such Person; and

 

(2)           with respect to any Person that is not a corporation, any
and all partnership, membership or other equity interests of such Person.

 

“Code” means the Internal Revenue Code of 1986, as amended, and
any successor statute thereto, as interpreted by the rules and regulations
thereunder, in each case as in effect from time to time.

 

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

 

 

“Common Stock” of any Person means any and all shares,
interests or other participations in, and other equivalents (however designated
and whether voting or non-voting) of such Person’s common stock, and
includes, without limitation, all series and classes of such common stock.

 

“Company” means iStar Financial Inc. and any and all successors
thereto that become a party to this Supplemental Indenture in accordance with
its terms.

 

“Consolidated EBITDA” means, with respect to any Person, for
any period, the sum (without duplication) of:

 

(1)           Consolidated Net Income; and

 

(2)           to the extent Consolidated Net Income has been reduced
thereby:

 

(a)           all income taxes of such Person and its Subsidiaries paid
or accrued in accordance with GAAP for such period (other than income taxes
attributable to extraordinary gains or losses and direct impairment charges or
the reversal of such charges on the Company’s assets);

 

(b)           Consolidated Interest Expense; and

 

(c)           depreciation and amortization;

 

all as determined on a consolidated basis for such Person and its
Subsidiaries in accordance with GAAP.

 

“Consolidated Fixed Charge Coverage Ratio” means, with respect
to any Person, the ratio of Consolidated EBITDA of such Person during the four
full fiscal quarters (the “Four Quarter
Period”) ending prior to the date of the transaction giving
rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio for
which financial statements are available (the “Transaction Date”) to Consolidated Fixed Charges of such
Person for the Four Quarter Period.  In
addition to and without limitation of the foregoing, for purposes of this
definition, “Consolidated EBITDA” and “Consolidated Fixed Charges” shall be
calculated after giving effect on a pro forma basis for the period of such
calculation to:

 

(1)           the incurrence or repayment of any Indebtedness of such
Person or any of its Subsidiaries (and the application of the proceeds
thereof) giving rise to the need to make such calculation and any
incurrence or repayment of other Indebtedness (and the application of the
proceeds thereof), other than the incurrence or repayment of Indebtedness in
the ordinary course of business for working capital purposes pursuant to
working capital facilities, occurring during the Four Quarter Period or at any
time subsequent to the last day of the Four Quarter Period and on or prior to
the Transaction Date, as if such incurrence or repayment, as the case may be
(and the application of the proceeds thereof), occurred on the first day of the
Four Quarter Period; and

 

(2)           any asset sales or other dispositions or any asset
originations, asset purchases, Investments and Asset Acquisitions (including,
without limitation, any Asset Acquisition giving rise to the need to make such
calculation as a result of such Person or one of its Subsidiaries (including
any Person who becomes a Subsidiary as a result of the Asset
Acquisition) incurring, assuming or otherwise being liable for Acquired
Indebtedness and also including any Consolidated EBITDA (including any pro
forma expense and cost reductions calculated on a basis consistent with
Regulation S-X under the Exchange Act) attributable to the assets
which are originated or purchased, the Investments that are made and the assets
that are the subject of the Asset Acquisition or asset sale or other
disposition during the Four Quarter Period) occurring during the Four
Quarter Period or at any time subsequent to the last day of the Four Quarter 

 

3

 

Period and on or prior to
the Transaction Date, as if such asset sale or other disposition or asset
origination, asset purchase, Investment or Asset Acquisition (including the
incurrence, assumption or liability for any such Acquired
Indebtedness) occurred on the first day of the Four Quarter Period.  If such Person or any of its Subsidiaries
directly or indirectly guarantees Indebtedness of a third Person, the preceding
sentence shall give effect to the incurrence of such guaranteed Indebtedness as
if such Person or any Subsidiary of such Person had directly incurred or
otherwise assumed such guaranteed Indebtedness.

 

“Consolidated Fixed Charges” means, with respect to any Person
for any period, the sum, without duplication, of:

 

(1)           Consolidated Interest Expense; plus

 

(2)           the amount of all dividend payments on any series of
Preferred Stock of such Person and, to the extent permitted under this
Supplemental Indenture, its Subsidiaries (other than dividends paid in
Qualified Capital Stock) paid, accrued or scheduled to be paid or accrued
during such period.

 

“Consolidated Interest Expense” means, with respect to any
Person for any period, the sum of, without duplication:

 

(1)           the aggregate of the interest expense of such Person and
its Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP, including without limitation:  (a) any amortization of debt discount;
(b) the net costs under Interest Swap Obligations; (c) all
capitalized interest; and (d) the interest portion of any deferred payment
obligation; and

 

(2)           to the extent not already included in clause (1), the
interest component of Capitalized Lease Obligations paid, accrued and/or
scheduled to be paid or accrued by such Person and its Subsidiaries during such
period as determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Net Income” means, with respect to any Person,
for any period, the aggregate net income (or loss) of such Person and its
Subsidiaries before the payment of dividends on Preferred Stock for such period
on a consolidated basis, determined in accordance with GAAP; provided that there shall be excluded
therefrom:

 

(1)           after-tax gains and losses from Asset Sales or
abandonments or reserves relating thereto (including gains and losses from the
sale of corporate tenant lease assets);

 

(2)           after-tax items classified as extraordinary gains or
losses and direct impairment charges or the reversal of such charges on the
Company’s assets;

 

(3)           the net income (but not loss) of any Subsidiary of
the referent Person to the extent that the declaration of dividends or similar
distributions by that Subsidiary of that income is restricted by a contract,
operation of law or otherwise;

 

(4)           the net income or loss of any other Person, other than a
Consolidated Subsidiary of the referent Person, except:

 

4

 

(a)           to the extent (in the case of net income) of cash
dividends or distributions paid to the referent Person, or to a Wholly Owned Subsidiary
of the referent Person (other than a Subsidiary described in
clause (4) above), by such other Person; or

 

(b)           that the referent Person’s share of any net income or loss
of such other Person under the equity method of accounting for Affiliates shall
not be excluded;

 

(5)           any restoration to income of any contingency reserve of an
extraordinary, nonrecurring or unusual nature;

 

(6)           income or loss attributable to discontinued operations
(including, without limitation, operations disposed of during such period
whether or not such operations were classified as discontinued, but not
including revenues, expenses, gains and losses relating to real estate
properties sold or held for sale, even if they were classified as attributable
to discontinued operations under the provisions of SFAS No. 144); and

 

(7)           in the case of a successor to the referent Person by
consolidation or merger or as a transferee of the referent Person’s assets, any
earnings of the successor corporation prior to such consolidation, merger or
transfer of assets.

 

“Consolidated Net Worth” 
of any Person means the consolidated stockholders’ equity of such
Person, as of the end of the last completed fiscal quarter ending on or prior
to the date of the transaction giving rise to the need to calculate
Consolidated Net Worth determined on a consolidated basis in accordance with
GAAP, less (without duplication) amounts attributable to Disqualified
Capital Stock of such Person and interests in such Person’s Consolidated
Subsidiaries not owned, directly or indirectly, by such Person.

 

“Consolidated Subsidiary” means, with respect to any Person, a
Subsidiary of such Person, the financial statements of which are consolidated
with the financial statements of such Person in accordance with GAAP.

 

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

 

“Currency Agreements” means any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement designed to
protect the Company or any Subsidiary of the Company against fluctuations in
currency values.

 

“Custodian” means any custodian, receiver, trustee, assignee,
liquidator, sequestrator or similar official under any Bankruptcy Law.

 

“Default” means an event or condition the occurrence of which
is, or with the lapse of time or the giving of notice or both would be, an
Event of Default.

 

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

 

“Depositary” means, with respect to the Notes issuable or
issued in whole or in part in global form, the Person specified in
Section 2.03 as the Depositary with respect to the Notes, and any and all

 

5

 

successors thereto appointed as depositary hereunder and having become
such pursuant to the applicable provision of this Supplemental Indenture.

 

“Disqualified Capital Stock” means that portion of any Capital
Stock that, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is
redeemable at the sole option of the holder thereof on or prior to the final
maturity date of the Notes.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, or any successor statute or statutes thereto.

 

“Existing Credit Agreements” mean:  (1) the Revolving Credit Agreement,
dated as of April 19, 2004 and as amended as of December 17, 2004 and
September 16, 2005, among the Company, the lenders party thereto and
JPMorgan Chase Bank, as administrative agent; 
(2) the credit facility between Deutsche Bank AG, New York Branch,
and iStar DB Seller LLC, dated as of January 11, 2001, in each case,
together with the related documents thereto (including, without limitation, any
security documents), in each case as such agreements may be amended (including
any amendment and restatement thereof), supplemented or otherwise modified from
time to time, including any agreement extending the maturity of, refinancing,
replacing or otherwise restructuring (including increasing the amount of
available borrowings thereunder (provided that
such increase in borrowings is permitted by Section 4.07 hereof) or
adding Subsidiaries of the Company as additional borrowers or guarantors
thereunder) all or any portion of the Indebtedness under such agreement or
any successor or replacement agreement and whether by the same or any other
agent, lender or group of lenders.

 

“fair market value” means, with respect to any asset or
property, the price which could be negotiated in an arm’s-length, free market
transaction, for cash, between a willing seller and a willing and able buyer,
neither of whom is under undue pressure or compulsion to complete the
transaction.  Fair market value shall be
determined by the Board of Directors of the Company acting reasonably and in
good faith and shall be evidenced by a Board Resolution of the Board of
Directors of the Company delivered to the Trustee.

 

“Fitch” means Fitch Ratings or any successor rating agency.

 

“GAAP” means generally accepted accounting principles set forth
in the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of the
accounting profession of the United States. 
For the avoidance of doubt, revenues, expenses, gains and losses that
are included in results of discontinued operations because of the application
of SFAS No. 144 will be treated as revenues, expenses, gains and losses
from continuing operations.

 

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

 

“Global Notes” means, individually and collectively, the Global
Notes, in the form of Exhibit A, issued in accordance with
Section 2.01 or 2.06.

 

“Government Securities” means direct obligations of, or
obligations guaranteed by, the United States of America, and for the payment of
which the United States pledges its full faith and credit.

 

6

 

“Guarantor” means:  each
of the Company’s Subsidiaries that in the future executes a supplemental
indenture in which such Subsidiary agrees to be bound by the terms of this
Supplemental Indenture as a Guarantor; provided
that any Person constituting a Guarantor as described above shall
cease to constitute a Guarantor when its respective Guarantee is released in
accordance with the terms of this Supplemental Indenture.

 

“Holder” or “Noteholder”
means a Person in whose name a Note is registered.

 

“Indebtedness” means with respect to any Person, without
duplication:

 

(1)           all Obligations of such Person for borrowed money;

 

(2)           all Obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments;

 

(3)           all Capitalized Lease Obligations of such Person;

 

(4)           all Obligations of such Person issued or assumed as the
deferred purchase price of property, all conditional sale obligations and all
Obligations under any title retention agreement (but excluding trade accounts
payable and other accrued liabilities arising in the ordinary course of
business that are not overdue by 90 days or more or are being contested in
good faith by appropriate proceedings promptly instituted and diligently
conducted);

 

(5)           all Obligations for the reimbursement of any obligor on
any letter of credit, banker’s acceptance or similar credit transaction;

 

(6)           guarantees and other contingent obligations in respect of
Indebtedness referred to in clauses (1) through (5) above and
clause (8) below;

 

(7)           all Obligations of any other Person of the type referred
to in clauses (1) through (6) above which are secured by any lien on
any property or asset of such Person, the amount of such Obligation being
deemed to be the lesser of the fair market value of such property or asset and
the amount of the Obligation so secured;

 

(8)           all Obligations under Currency Agreements and Interest
Swap Obligations of such Person; and

 

(9)           all Disqualified Capital Stock issued by such Person with
the amount of Indebtedness represented by such Disqualified Capital Stock being
equal to the greater of its voluntary or involuntary liquidation preference and
its maximum fixed repurchase price, but excluding accrued dividends, if any.

 

For purposes hereof, the
“maximum fixed repurchase price” of any Disqualified Capital Stock which does
not have a fixed repurchase price shall be calculated in accordance with the
terms of such Disqualified Capital Stock as if such Disqualified Capital Stock
were purchased on any date on which Indebtedness shall be required to be
determined pursuant to this Supplemental Indenture, and if such price is based
upon, or measured by, the fair market value of such Disqualified Capital Stock,
such fair market value shall be determined reasonably and in good faith by the
Board of Directors of the issuer of such Disqualified Capital Stock.

 

7

 

“Indenture” means the Indenture dated as of February 5,
2001 between the Company and the Trustee as amended or supplemented from time
to time.

 

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

 

“Initial Notes” means the $225 million principal amount of
Senior Floating Rate Notes due 2009 of the Company issued on the Issue Date.

 

“Interest Payment Date” means March 16, June 16,
September 16 and December 16 of each year commencing March 16,
2006.

 

“Interest Swap Obligations” means the obligations of any Person
pursuant to any arrangement with any other Person, whereby, directly or
indirectly, such Person is entitled to receive from time to time periodic
payments calculated by applying either a floating or a fixed rate of interest
on a stated notional amount in exchange for periodic payments made by such
other Person calculated by applying a fixed or a floating rate of interest on
the same notional amount and shall include, without limitation, interest rate
swaps, caps, floors, collars and similar agreements.

 

“Investment” means, with respect to any Person, any direct or
indirect loan or other extension of credit (including, without limitation, a
guarantee), or corporate tenant lease to or capital contribution to (by means
of any transfer of cash or other property to others or any payment for property
or services for the account or use of others), or any purchase or acquisition
by such Person of any Capital Stock, bonds, notes, debentures or other
securities or evidences or Indebtedness issued by, any Person.  “Investment” shall exclude extensions of
trade credit by the Company and any Subsidiary of the Company on commercially
reasonable terms in accordance with the Company’s or its Subsidiaries’ normal
trade practices, as the case may be.

 

“Issue Date” means December 14, 2005, the date of original
issuance of the Initial Notes.

 

“Lien” means any lien, mortgage, deed of trust, pledge,
security interest, charge or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature thereof and
any agreement to give any security interest).

 

“Maturity” when used with respect to the Notes means the date
on which the principal of the Notes becomes due and payable as therein provided
or as provided in this Supplemental Indenture at Stated Maturity, and whether
by declaration of acceleration or otherwise.

“Moody’s” means Moody’s Investor Service, Inc. or any successor
rating agency.

 

“Non-Recourse Indebtedness” means any of the Company’s or any
of its Subsidiaries’ Indebtedness that is:

 

(1)           specifically advanced to finance the acquisition of
investment assets and secured only by the assets to which such Indebtedness
relates without recourse to the Company or any of its Subsidiaries (other than
subject to such customary carve-out matters for which the Company or its
Subsidiaries acts as a guarantor in connection with such Indebtedness, such as
fraud, misappropriation and misapplication, unless, until and for so long as a
claim for payment or performance has been made thereunder (which has not been
satisfied) at which time the obligations with respect to any such
customary carve-out shall not be considered Non-Recourse Indebtedness, to the
extent that such claim is a liability of the Company for GAAP purposes);

 

8

 

(2)           advanced to any of the Company’s Subsidiaries or group of
its Subsidiaries formed for the sole purpose of acquiring or holding investment
assets against which a loan is obtained that is made without recourse to, and
with no cross-collateralization against, the Company or any of the Company’s
Subsidiaries’ other assets (other than subject to such customary carve-out
matters for which the Company or its Subsidiaries acts as a guarantor in
connection with such Indebtedness, such as fraud, misappropriation and
misapplication, unless, until and for so long as a claim for payment or
performance has been made thereunder (which has not been satisfied) at
which time the obligations with respect to any such customary carve-out shall
not be considered Non-Recourse Indebtedness, to the extent that such claim is a
liability of the Company for GAAP purposes) and upon complete or partial
liquidation of which the loan must be correspondingly completely or partially
repaid, as the case may be; or

 

(3)           specifically advanced to finance the acquisition of real
property and secured by only the real property to which such Indebtedness
relates without recourse to the Company or any of its Subsidiaries (other than
subject to such customary carve-out matters for which the Company or its
Subsidiaries acts as a guarantor in connection with such Indebtedness, such as
fraud, misappropriation and misapplication, unless, until and for so long as a
claim for payment or performance has been made thereunder (which has not been
satisfied) at which time the obligations with respect to any such
customary carve-out shall not be considered Non-Recourse Indebtedness, to the
extent that such claim is a liability of the Company for GAAP purposes).

 

“Notes” means, collectively, the Initial Notes and the
Additional Notes, if any, and treated as a single class of securities, as
amended or supplemented from time to time in accordance with the terms hereof,
that are issued pursuant to this Supplemental Indenture.

 

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

 

“Officer” means, with respect to any Person, the President,
Chief Executive Officer, any Vice President, Chief Operating Officer,
Treasurer, Secretary or the Chief Financial Officer of such Person.

 

“Officers’ Certificate” means, with respect to any Person, a
certificate signed by two Officers of such Person; provided, however, that every Officers’ Certificate with
respect to compliance with a covenant or condition provided for in this
Supplemental Indenture shall include (i) a statement that the Officers
making or giving such Officers’ Certificate have read such condition and any
definitions or other provisions contained in this Supplemental Indenture
relating thereto and (ii) a statement as to whether, in the opinion of the
signers, such conditions have been complied with.

 

“Opinion of Counsel” means an opinion from legal counsel who is
reasonably acceptable to the Trustee that meets the requirements of
Section 11.05.  The counsel may be
an employee of or counsel to the Company, any Subsidiary of the Company or the
Trustee.

 

“Participant” means, with respect to the Depositary, a Person
who has an account with the Depositary.

 

“Permitted Holder(s)” means SOFI-IV SMT Holdings, L.L.C. and
Starwood Capital Group, L.L.C. and each of their respective Affiliates.

 

“Permitted Indebtedness” means, without duplication, each of
the following:

 

9

 

(1)           Indebtedness under: 
(a) The Initial Notes; (b) the Company’s $250.0 million 5.80%
Fixed Rate Notes issued on December, 2005; (c) the Company’s $100.0
million in unsecured floating rate trust preferred securities that were issued
on September 14, 2005; (d) the Company’s $250.0 million aggregate
principal amount of 5.375% Senior Notes due 2010 that were issued on
April 21, 2005; (e) the Company’s $250.0 million aggregate principal
amount of 6.05% Senior Notes due 2015 that were issued on April 21, 2005;
(f) the Company’s $50.0 million aggregate principal amount of 7.95% Senior
Notes due 2006, which the Company assumed as a result of the merger of TriNet
with iStar on March 30, 2005; (g) the Company’s $700.0 million
aggregate principal amount of 5.15% Senior Notes due 2012 and the $400.0
million aggregate principal amount of floating rate notes due 2008 that were
issued on March 1, 2005; (h) the Company’s $250.0 million aggregate
principal amount of 5.70% Notes due 2014 issued on March 9, 2004, and an
additional $117.0 million aggregate amount of 5.70% Notes due 2014 issued on
March 1, 2005 in connection with the Company’s exchange offer for TriNet
Corporate Realty Trust, Inc.’s 7.70% Notes due 2017; (i) the Company’s
$200.0 million aggregate principal amount of floating rate notes due 2007 that
were issued on March 12, 2004 and May 10, 2004; (j) the
Company’s $250.0 million aggregate principal amount of 5.125% Notes due 2011
that were issued on March 30, 2004; (k) the Company’s $350.0 million
aggregate principal amount of 4.875% Senior Notes due 2009 that were issued on
January 23, 2004; (l) the Company’s $350.0 million aggregate
principal amount of 6.00% Senior Notes due 2010 that were issued on
December 12, 2003; (m) the Company’s $150.0 million aggregate
principal amount of 6.50% Senior Notes due 2013 that were issued on
December 12, 2003; (n) the Company’s $185.0 million aggregate
principal amount of 7.00% Senior Notes due 2008 that were issued in
March and April of 2003; and (o) the Company’s $240.0 million
aggregate principal amount of 8.75% Senior Notes due 2008 that were issued on
August 16, 2001;

 

(2)           Indebtedness incurred pursuant to the Existing Credit
Agreements in an aggregate principal amount at any time outstanding not to
exceed the maximum aggregate amount available under the Existing Credit
Agreements as in effect on the Issue Date reduced by any required permanent
repayments (which are accompanied by a corresponding permanent commitment
reduction) thereunder;

 

(3)           other Indebtedness of the Company and its Subsidiaries
outstanding on the Issue Date reduced by the amount of any scheduled
amortization payments or mandatory prepayments when actually paid or permanent
reductions thereon;

 

(4)           Interest Swap Obligations of the Company covering
Indebtedness of the Company or any of its Subsidiaries and Interest Swap
Obligations of any Subsidiary of the Company covering Indebtedness of such
Subsidiary; provided, however,
that such Interest Swap Obligations are entered into to protect the Company and
its Subsidiaries from fluctuations in interest rates on Indebtedness incurred
in accordance with this Supplemental Indenture to the extent the notional
principal amount of such Interest Swap Obligation does not exceed the principal
amount of the Indebtedness to which such Interest Swap Obligation relates;

 

(5)           Indebtedness under Currency Agreements; provided that in the case of Currency
Agreements which relate to Indebtedness, such Currency Agreements do not
increase the Indebtedness of the Company and its Subsidiaries outstanding other
than as a result of fluctuations in foreign currency exchange rates or by
reason of fees, indemnities and compensation payable thereunder;

 

10

 

(6)           Indebtedness of a Subsidiary of the Company to the Company
or to a Wholly Owned Subsidiary of the Company for so long as such Indebtedness
is held by the Company or a Wholly Owned Subsidiary of the Company;

 

(7)           Indebtedness of the Company to a Wholly Owned Subsidiary
of the Company for so long as such Indebtedness is held by a Wholly Owned
Subsidiary of the Company, in each case subject to no Lien; provided that:  (a) any Indebtedness of the Company to
any Wholly Owned Subsidiary of the Company is unsecured and subordinated,
pursuant to a written agreement, to the Company’s obligations under this
Supplemental Indenture and the Notes; and (b) if as of any date any Person
other than a Wholly Owned Subsidiary of the Company owns or holds any such
Indebtedness or any Person holds a Lien in respect of such Indebtedness, such
date shall be deemed the incurrence of Indebtedness not constituting Permitted
Indebtedness by the Company;

 

(8)           Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument inadvertently
(except in the case of daylight overdrafts) drawn against insufficient
funds in the ordinary course of business; provided,
however, that such Indebtedness is extinguished within two business
days of incurrence;

 

(9)           Indebtedness of the Company or any of its Subsidiaries
represented by letters of credit for the account of the Company or such
Subsidiary, as the case may be, in order to provide security for workers’ compensation
claims, payment obligations in connection with self-insurance or similar
requirements in the ordinary course of business;

 

(10)         Refinancing Indebtedness; and

 

(11)         additional Indebtedness of the Company and its Subsidiaries
in an aggregate principal amount not to exceed $15.0 million at any one
time outstanding (which amount may, but need not, be incurred in whole or in
part under the Existing Credit Agreements).

 

For purposes of determining
compliance with Section 4.07 hereof, in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted
Indebtedness described in clauses (1) through (11) above or is
entitled to be incurred pursuant to the second paragraph of such covenant, the
Company shall, in its sole discretion, classify (or later reclassify) such
item of Indebtedness in any manner that complies with this covenant.  Accrual of interest, accretion or
amortization of original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms, and
the payment of dividends on Disqualified Capital Stock in the form of
additional shares of the same class of Disqualified Capital Stock will not be
deemed to be an incurrence of Indebtedness or an issuance of Disqualified
Capital Stock for purposes of the “Limitation on Incurrence of Additional
Indebtedness” covenant.

 

“Person” means an individual, partnership, corporation,
unincorporated organization, trust or joint venture, or a governmental agency
or political subdivision thereof.

 

“Preferred Stock” of any Person means any Capital Stock of such
Person that has preferential rights to any other Capital Stock of such Person
with respect to dividends or redemptions or upon liquidation.

 

“Qualified Capital Stock” means any Capital Stock that is not
Disqualified Capital Stock.

 

“Rating Agencies” means S&P, Moody’s and Fitch.

 

11

 

“Refinance” means, in respect of any security or Indebtedness,
to refinance, extend, renew, refund, repay, prepay, redeem, defease or retire,
or to issue a security or Indebtedness in exchange or replacement for, such
security or Indebtedness in whole or in part. 
“Refinanced” and “Refinancing” shall have correlative meanings.

 

“Refinancing Indebtedness” means any Refinancing by the Company
or any Subsidiary of the Company of Indebtedness incurred in accordance with
Section 4.07 hereof (other than pursuant to clauses (2), (4), (5), (6),
(7), (8), (9) or (11) of the definition of Permitted Indebtedness),
in each case that does not:

 

(1)           result in an increase in the aggregate principal amount of
Indebtedness of such Person as of the date of such proposed Refinancing (plus
the amount of any premium required to be paid under the terms of the instrument
governing such Indebtedness and plus the amount of reasonable expenses incurred
by the Company in connection with such Refinancing); or

 

(2)           create Indebtedness with: 
(a) a Weighted Average Life to Maturity that is less than the
Weighted Average Life to Maturity of the Indebtedness being Refinanced; or
(b) a final maturity earlier than the final maturity of the Indebtedness
being Refinanced; provided that
(i) if such Indebtedness being Refinanced is Indebtedness of the Company,
then such Refinancing Indebtedness shall be Indebtedness solely of the Company,
and (ii) if such Indebtedness being Refinanced is subordinate or junior to
the Notes, then such Refinancing Indebtedness shall be subordinate to the Notes
at least to the same extent and in the same manner as the Indebtedness being
Refinanced.

 

“REIT” means Real Estate Investment Trust.

 

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

 

“Secured Indebtedness” means any Indebtedness secured by a Lien
upon the property of the Company or any of its Subsidiaries.

 

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

 

“Significant Subsidiary,” with respect to any Person, means any
Subsidiary of such Person that satisfies the criteria for a “significant
subsidiary” set forth in Rule 1.02(w) of Regulation S-X under
the Exchange Act.

 

“S&P” means Standard & Poor’s Ratings Group, a division
of McGraw Hill Inc., a New York corporation, or any successor rating agency.

 

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

 

“Subsidiary,” with respect to any Person, means:

 

12

 

(1)           any corporation of which the outstanding Capital Stock
having at least a majority of the votes entitled to be cast in the election of
directors under ordinary circumstances shall at the time be owned, directly or
indirectly, by such Person; or

 

(2)           any other Person of which at least a majority of the
voting interest under ordinary circumstances is at the time, directly or
indirectly, owned by such Person.

 

“Supplemental Indenture” means this Supplemental Indenture as
amended or supplemented from time to time.

 

“Total Unencumbered Assets” as of any date means the sum of:

 

(1)           those Undepreciated Real Estate Assets not securing any
portion of Secured Indebtedness; and

 

(2)           all other assets (but excluding intangibles and accounts
receivable) of the Company and its Subsidiaries not securing any portion
of Secured Indebtedness determined on a consolidated basis in accordance with
GAAP.

 

“Trustee” means the party named as such above until a successor
replaces it in accordance with the applicable provisions of this Supplemental
Indenture and thereafter means the successor serving hereunder.

 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as
amended.

 

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

 

“Unsecured Indebtedness” means any Indebtedness of the Company
or any of its Subsidiaries that is not Secured Indebtedness.

 

“Weighted Average Life to Maturity” means, when applied to any
Indebtedness at any date, the number of years obtained by dividing:  (1) the then outstanding aggregate
principal amount of such Indebtedness into; (2) the sum of the total of
the products obtained by multiplying (i) the amount of each then remaining
installment, sinking fund, serial maturity or other required payment of
principal, including payment at final maturity, in respect thereof, by
(ii) the number of years (calculated to the nearest
one-twelfth) which will elapse between such date and the making of such
payment.

 

“Wholly Owned Subsidiary” of any Person means any Subsidiary of
such Person of which all the outstanding voting securities (other than in the
case of a foreign Subsidiary, directors’ qualifying shares or an immaterial
amount of shares required to be owned by other Persons pursuant to applicable
law) are owned by such Person or any Wholly Owned Subsidiary of such
Person.

 

13

 

Section 1.02.      Other Definitions.

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  
	
  “Authentication Order”

  	
   

  	
  2.02

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  
	
  “DTC”

  	
   

  	
  2.03

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “incur”

  	
   

  	
  4.07

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Surviving Entity”

  	
   

  	
  5.01

  

 

Section 1.03.      Incorporation by Reference of Trust Indenture Act.  Whenever this Supplemental Indenture refers
to a provision of the TIA, the provision is incorporated by reference in and
made a part of this Supplemental Indenture.

 

All terms used in this
Supplemental Indenture that are defined by the TIA, defined by TIA reference to
another statute or defined by SEC rule under the TIA have the meanings so
assigned to them.

Section 1.04.      Rules of Construction. 
Unless the context otherwise requires:

 

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

 

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

 

(c)           “or” is not exclusive;

 

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

 

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

 

(f)            references to sections of or rules under the Securities
Act shall be deemed to include substitute, replacement of successor sections or
rules adopted by the SEC from time to time.

 

ARTICLE
2

THE NOTES

 

Section 2.01.      Form and Dating.

 

(a)           General.  The Notes and the Trustee’s certificate of
authentication shall be substantially in the form of Exhibit A
hereto.  The Notes may have notations,
legends or endorsements required by law, stock exchange rule or usage.  Each Note shall be dated the date of its
authentication.  The Notes shall be in
denominations of $1,000 and integral multiples thereof.

 

The terms and provisions
contained in the Notes shall constitute, and are hereby expressly made, a part
of this Supplemental Indenture and the Company and the Trustee, by their execution
and delivery of this Supplemental Indenture, expressly agree to such terms and
provisions and to be bound thereby. 
However, to the extent any provision of any Note conflicts with the
express provisions of this Supplemental Indenture, the provisions of this
Supplemental Indenture shall govern and be controlling.

 

14

 

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

 

Section 2.02.      Execution and Authentication.  One or more Officers shall sign the Notes for
the Company by manual or facsimile signature.

 

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

 

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

 

The Trustee shall, upon a
written order of the Company signed by one or more Officers (an “Authentication Order”), authenticate Notes
for original issue on the Issue Date in aggregate principal amount not to
exceed $225.0 million (other than as provided in Section 2.07).  The Trustee shall authenticate Additional
Notes thereafter (so long as permitted by the terms of this Supplemental
Indenture) for original issue upon one or more Authentication Orders in
aggregate principal amount as specified in such order (other than as provided
in Section 2.07).  Each such
Authentication Order shall specify the amount of Notes to be authenticated,
whether the Notes are to be Initial Notes or Additional Notes and whether the
Notes are to be issued as Definitive Notes or Global Notes or such other
information as the Trustee shall reasonably request.

 

The Trustee may appoint an
authenticating agent acceptable to the Company to authenticate Notes.  An authenticating agent may authenticate
Notes whenever the Trustee may do so. 
Each reference in this Supplemental Indenture to authentication by the
Trustee includes authentication by such agent. 
An authenticating agent has the same rights as an Agent to deal with
Holders or an Affiliate of the Company.

 

Section 2.03.      Registrar and Paying Agent. 
The Company shall maintain an office or agency where Notes may be
presented for registration of transfer or for exchange (“Registrar”) and an office or agency
where Notes may be presented for payment (“Paying
Agent”).  The Registrar shall
keep a register of the Notes and of their transfer and exchange.  The Company may appoint one or more
co-registrars and one or more additional paying agents.  The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying
agent.  The Company may change any Paying
Agent or Registrar without notice to any Holder.  The Company shall notify the Trustee in writing
of the name and address of any Agent not a party to this Supplemental Indenture.  If the Company fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as
such.  The Company or any of its
Subsidiaries may act as Paying Agent or Registrar.

 

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

 

15

 

The Company initially
appoints the Trustee to act as the Registrar and Paying Agent and to act as
Custodian with respect to the Global Notes.

 

Section 2.04.      Paying Agent to Hold Money in Trust.  The Company shall require each Paying Agent
other than the Trustee to agree in writing that the Paying Agent will hold in
trust for the benefit of Holders or the Trustee all money held by the Paying
Agent for the payment of principal, premium, if any, or interest on the Notes,
and will notify the Trustee in writing of any default by the Company in making
any such payment.  While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it
to the Trustee.  The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary) shall have no further
liability for the money.  If the Company
or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate
trust fund for the benefit of the Holders all money held by it as Paying Agent.  Upon any bankruptcy or reorganization proceedings
relating to the Company, the Trustee shall serve as Paying Agent for the Notes.

 

Section 2.05.      Holder Lists.  The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of all Holders and
shall otherwise comply with TIA § 312(a). 
If the Trustee is not the Registrar, the Company shall furnish to the
Trustee at least seven Business Days before each interest payment date and at
such other times as the Trustee may request in writing, a list in such form and
as of such date as the Trustee may reasonably require of the names and
addresses of the Holders and the Company shall otherwise comply with TIA
§ 312(a).

 

Section 2.06.      Transfer and Exchange.

 

(a)           Transfer and Exchange
of Global Notes.  A Global
Note may not be transferred as a whole except by the Depositary to a nominee of
the Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.  All Global Notes will be exchanged by the
Company for Definitive Notes if (i) the Company delivers to the Trustee
written notice from the Depositary that it is unwilling or unable to continue
to act as Depositary or that it is no longer a clearing agency registered under
the Exchange Act and, in either case, a successor Depositary is not appointed
by the Company within 120 days after the date of such notice from the
Depositary or (ii) the Company in its sole discretion determines that the
Global Notes (in whole but not in part) should be exchanged for Definitive
Notes and delivers a written notice to such effect to the Trustee.  Upon the occurrence of either of the
preceding events in (i) or (ii) above, Definitive Notes shall be
issued in such names as the Depositary shall instruct the Trustee in
writing.  Global Notes also may be
exchanged or replaced, in whole or in part, as provided in Sections 2.07
and 2.10 hereof.  Every Note authenticated
and delivered in exchange for, or in lieu of, a Global Note or any portion
thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10
hereof, shall be authenticated and delivered in the form of, and shall be, a
Global Note.  A Global Note may not be
exchanged for another Note other than as provided in this Section 2.06(a);
provided, however, that
beneficial interests in a Global Note may be transferred and exchanged as
provided in Section 2.06(b) or (c) hereof.

 

(b)           Transfer and Exchange
of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial
interests in the Global Notes shall be effected through the Depositary, in
accordance with the provisions of this Supplemental Indenture and the
Applicable Procedures.  Transfers of
beneficial interests in the Global Notes also shall require compliance with
either subparagraph (i) or (ii) below, as applicable, as well as one
or more of the other following subparagraphs, as applicable:

 

(i)            Transfer of Beneficial
Interests in the Same Global Note. 
Beneficial interests in any Global Note may be transferred to Persons
who take delivery thereof in the form of a

 

16

 

beneficial interest in a
Global Note.  No written orders or
instructions shall be required to be delivered to the Registrar to effect the
transfers described in this Section 2.06(b)(i).

 

(ii)           All Other Transfers and
Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to
Section 2.06(b)(i) above, the transferor of such beneficial interest
must deliver to the Registrar either (A) (1) a written order from a
Participant or an Indirect Participant given to the Depositary in accordance with
the Applicable Procedures directing the Depositary to credit or cause to be
credited a beneficial interest in another Global Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions
given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase or
(B) (1) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures directing
the Depositary to cause to be issued a Definitive Note in an amount equal to
the beneficial interest to be transferred or exchanged and
(2) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Note shall be
registered to effect the transfer or exchange referred to in
(1) above.  Upon satisfaction of all
of the requirements for transfer or exchange of beneficial interests in Global
Notes contained in this Supplemental Indenture and the Notes or otherwise
applicable under the Securities Act, the Trustee shall adjust the principal
amount of the relevant Global Note(s) pursuant to
Section 2.06(g) hereof.

 

(c)           Transfer or Exchange of
Beneficial Interests for Definitive Notes.  If any holder of a beneficial interest in a
Global Note proposes to exchange such beneficial interest for a Definitive Note
or to transfer such beneficial interest to a Person who takes delivery thereof
in the form of a Definitive Note, then, upon satisfaction of the conditions set
forth in Section 2.06(b)(ii) hereof, the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(g) hereof, and the Company shall
execute and the Trustee shall authenticate and deliver to the Person designated
in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a
beneficial interest pursuant to this Section 2.06(c) shall be
registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall
deliver such Definitive Notes to the Persons in whose names such Notes are so
registered.

 

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

 

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

 

(e)           Transfer and Exchange
of Definitive Notes for Definitive Notes.  Upon written request by a Holder of
Definitive Notes and such Holder’s compliance with the provisions of this
Section 2.06(e), the Registrar shall register the transfer or exchange of
Definitive Notes. Prior to such registration of transfer or exchange, the
requesting Holder shall present or surrender to the Registrar the Definitive
Notes 

 

17

 

duly endorsed or accompanied by a written instruction of transfer in
form satisfactory to the Registrar duly executed by such Holder or by its
attorney, duly authorized in writing.  In
addition, the requesting Holder shall provide any additional certifications,
documents and information, as applicable, required pursuant to this
Section 2.06(e).

 

A Holder of Definitive Notes
may transfer such Notes to a Person who takes delivery thereof in the form of a
Definitive Note.  Upon receipt of a
written request to register such a transfer, the Registrar shall register the
Definitive Notes pursuant to the instructions from the Holder thereof.

 

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

 

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

 

(g)           Cancellation and/or
Adjustment of Global Notes. 
At such time as all beneficial interests in a particular Global Note
have been exchanged for Definitive Notes or a particular Global Note has been
repurchased or canceled in whole and not in part, each such Global Note shall
be returned to or retained and canceled by the Trustee in accordance with Section 2.11
hereof.  At any time prior to such
cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Note or for Definitive Notes, the
principal amount of Notes represented by such Global Note shall be reduced
accordingly and an endorsement shall be made on such Global Note by the Trustee
or by the Depositary at the direction of the Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note, such other Global Note shall be increased accordingly and
an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

 

(h)           General Provisions
Relating to Transfers and Exchanges.

 

(i)            To permit registrations of transfers and exchanges, the
Company shall execute and the Trustee shall authenticate Global Notes and
Definitive Notes upon the Company’s order or at the Registrar’s request.

 

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

 

18

 

(iii)          All Global Notes and Definitive Notes issued upon any
registration of transfer or exchange of Global Notes or Definitive Notes shall
be the valid obligations of the Company, evidencing the same debt, and entitled
to the same benefits under this Supplemental Indenture, as the Global Notes or
Definitive Notes surrendered upon such registration of transfer or exchange.

 

(iv)          The Company shall not be required to register the transfer
of or to exchange a Note between a record date and the next succeeding Interest
Payment Date.

 

(v)           Prior to due presentment for the registration of a
transfer of any Note, the Trustee, any Agent and the Company may deem and treat
the Person in whose name any Note is registered as the absolute owner of such
Note for the purpose of receiving payment of principal of and interest on such
Notes and for all other purposes, and none of the Trustee, any Agent or the
Company shall be affected by notice to the contrary.

 

(vi)          The Trustee shall authenticate Global Notes and Definitive
Notes in accordance with the provisions of Section 2.02 hereof.

 

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

 

Section 2.07.      Replacement Notes.  If
any mutilated Note is surrendered to the Trustee or the Company and the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, the Company shall issue and the Trustee, upon receipt of an
Authentication Order, shall authenticate a replacement Note if the Trustee’s
requirements are met.  If required by the
Trustee or the Company, an indemnity bond must be supplied by the Holder that
is sufficient in the judgment of the Trustee and the Company to protect the
Company, the Trustee, any Agent and any authenticating agent from any loss that
any of them may suffer if a Note is replaced. 
The Company may charge for its expenses in replacing a Note.

 

Every replacement Note is an
additional obligation of the Company and shall be entitled to all of the
benefits of this Supplemental Indenture equally and proportionately with all
other Notes duly issued hereunder.

 

Section 2.08.      Outstanding Notes. 
The Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Note effected by the
Trustee in accordance with the provisions hereof, and those described in this
Section as not outstanding.  Except as
set forth in Section 2.09 hereof, a Note does not cease to be outstanding
because the Company or an Affiliate of the Company holds the Note.

 

If a Note is replaced
pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a
bona fide purchaser.

 

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

 

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

 

19

 

Section 2.09.      Treasury Notes.  In
determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Company, or
by any Affiliate of the Company, shall be considered as though not outstanding,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes that
the Trustee actually knows are so owned shall be so disregarded.

 

Section 2.10.      Temporary Notes. 
Until certificates representing Notes are ready for delivery, the
Company may prepare and the Trustee, upon receipt of an Authentication Order,
shall authenticate temporary Notes. 
Temporary Notes shall be substantially in the form of certificated Notes
but may have variations that the Company considers appropriate for temporary
Notes and as shall be reasonably acceptable to the Trustee.  Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate definitive Notes in exchange for
temporary Notes.

 

Holders of temporary Notes
shall be entitled to all of the benefits of this Supplemental Indenture.

 

Section 2.11.      Cancellation.  The
Company at any time may deliver Notes to the Trustee for cancellation.  The Registrar and Paying Agent shall forward
to the Trustee any Notes surrendered to them for registration of transfer,
exchange or payment.  The Trustee and no
one else shall cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation and shall destroy canceled Notes
(subject to the record retention requirement of the Exchange Act).  The Company may not issue new Notes to
replace Notes that it has paid or that have been delivered to the Trustee for
cancellation.

 

Section 2.12.      Defaulted Interest. 
If the Company defaults in a payment of interest on the Notes, it shall
pay the defaulted interest in any lawful manner plus, to the extent lawful,
interest payable on the defaulted interest, to the Persons who are Holders on a
subsequent special record date, in each case at the rate provided in the Notes
and in Section 4.01 hereof.  The
Company shall notify the Trustee in writing of the amount of defaulted interest
proposed to be paid on each Note and the date of the proposed payment.  The Company shall fix or cause to be fixed
each such special record date and payment date; provided that no such special record date shall be less than
10 days prior to the related payment date for such defaulted interest.  At least 15 days before the special record
date, the Company (or, upon the written request of the Company, the Trustee in
the name and at the expense of the Company) shall mail or cause to be
mailed to Holders a notice that states the special record date, the related
payment date and the amount of such interest to be paid.

 

Section 2.13.      Record Date.  The
Company may set a record date for purposes of determining the identity of
Holders entitled to vote or to consent to any action by vote or consent authorized
or permitted by Sections 6.04 and 6.05.

 

Section 2.14.      CUSIP Numbers.  The
Company in issuing the Notes may use “CUSIP” numbers (if then generally in
use) and the Company will promptly notify the Trustee in writing of any
change in the CUSIP numbers.

 

ARTICLE
3

REDEMPTION AND PREPAYMENT

 

The Notes may not be
redeemed prior to the Maturity Date.

 

20

 

ARTICLE
4

COVENANTS

 

Section 4.01.      Payment of Notes.  The
Company shall pay or cause to be paid the principal of, premium, if any, and
interest on the Notes on the dates and in the manner provided in the
Notes.  Principal, premium, if any, and
interest shall be considered paid on the date due if the Paying Agent, if other
than the Company or a Subsidiary, holds as of 10:00 a.m. Eastern Time on
the due date money deposited by the Company in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, and
interest then due.

 

The Company shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to the then
applicable interest rate on the Notes to the extent lawful; it shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

 

Section 4.02.      Maintenance of Office or Agency.  The Company shall maintain in the Borough of
Manhattan, the City of New York, an office or agency (which may be an office of
the Trustee or an affiliate of the Trustee, Registrar or
co-registrar) where Notes may be surrendered for registration of transfer
or for exchange and where notices and demands to or upon the Company in respect
of the Notes and this Supplemental Indenture may be served.  The Company shall give prompt written notice
to the Trustee of the location, and any change in the location, of such office
or agency.  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee.

 

The Company may also from
time to time designate one or more other offices or agencies where the Notes
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, the City of New York for such purposes.  The Company shall give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

The Company hereby
designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.03.

 

Section 4.03.      Reports to Holders. 
Whether or not required by the rules and regulations of the Commission,
so long as any Notes are outstanding, the Company shall furnish the Holders of
Notes:

 

(1)           all quarterly and annual financial information that would
be required to be contained in a filing with the Commission on Forms 10-Q and
10-K if the Company were required to file such Forms, including a “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” that
describes the financial condition and results of operations of the Company and
its consolidated Subsidiaries (showing in reasonable detail, either on the face
of the financial statements or in the footnotes thereto and in Management’s
Discussion and Analysis of Financial Condition and Results of Operations, the
financial condition and results of operations of the Company and its
Subsidiaries) and, with respect to the annual information only, a report
thereon by the Company’s independent registered public accounting firm; and

 

21

 

(2)           all current reports that would be required to be filed
with the Commission on Form 8-K if the Company were required to file such
reports, in each case within the time periods specified in the Commission’s
rules and regulations.

 

In addition, whether or not
required by the rules and regulations of the Commission, the Company shall
file a copy of all such information and reports with the Commission for
public availability within the time periods specified in the Commission’s rules
and regulations (unless the Commission will not accept such a filing) and
make such information available to securities analysts and prospective
investors upon request.  In addition, the
Company has agreed that, for so long as any Notes remain outstanding, it will
furnish to the Holders and to securities analysts and prospective investors,
upon their request, the information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act.

 

Section 4.04.      Compliance Certificate. 
(a) The Company shall deliver to the Trustee, within 90 days after the
end of each fiscal year, an Officers’ Certificate stating that a review of the
activities of the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled
their obligations under this Supplemental Indenture, and further stating, as to
each such Officer signing such certificate, that to the best of his or her
knowledge the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Supplemental Indenture and is not in default
in the performance or observance of any of the terms, provisions and conditions
of this Supplemental Indenture (or, if a Default or Event of Default shall have
occurred, describing all such Defaults or Events of Default of which he or she
may have knowledge and what action the Company is taking or proposes to take
with respect thereto) and that to the best of his or her knowledge no
event has occurred and remains in existence by reason of which payments on
account of the principal of or interest, if any, on the Notes is prohibited or
if such event has occurred, a description of the event and what action the
Company is taking or proposes to take with respect thereto.

 

(b)           The Company shall, so long as any of the Notes are
outstanding, deliver to the Trustee, forthwith upon any Officer becoming aware
of any Default or Event of Default, an Officers’ Certificate specifying such
Default or Event of Default and what action the Company is taking or proposes
to take with respect thereto.

 

Section 4.05.      Taxes.  The Company
shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency,
all material taxes, assessments, and governmental levies except such as are
contested in good faith and by appropriate proceedings or where the failure to
effect such payment is not adverse in any material respect to the Holders.

 

Section 4.06.      Stay, Extension and Usury Laws.  The Company covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in force,
that may affect the covenants or the performance of this Supplemental
Indenture; and the Company (to the extent that it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law, and
covenants that it shall not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law has been
enacted.

 

Section 4.07.      Limitation on Incurrence of Additional Indebtedness.  The Company shall not, and shall not permit
any of its Subsidiaries to, directly or indirectly, create, incur, assume,
guarantee, become liable, contingently or otherwise, with respect to, or
otherwise become responsible for payment of (collectively, “incur”) any Indebtedness (including,
without limitation, Acquired Indebtedness) other than Permitted
Indebtedness.

 

22

 

Notwithstanding the
foregoing, if no Default or Event of Default shall have occurred and be
continuing at the time of or as a consequence of the incurrence of any such
Indebtedness, the Company or any of its Subsidiaries may incur Indebtedness
(including, without limitation, Acquired Indebtedness), in each case if on the
date of the incurrence of such Indebtedness, after giving effect to the
incurrence thereof, the Consolidated Fixed Charge Coverage Ratio of the Company
is greater than 1.5 to 1.0.

 

Section 4.08.      Corporate Existence. 
Subject to Article 5 hereof, the Company shall do or cause to be
done all things necessary to preserve and keep in full force and effect
(i) its corporate existence, and the corporate, partnership or other
existence of each of its Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of
the Company or any such Subsidiary and (ii) the rights (charter and
statutory), licenses and franchises of the Company and its Subsidiaries; provided, however, that the Company shall
not be required to preserve any such right, license or franchise, or the
corporate, partnership or other existence of any of its Subsidiaries, if the
Board of Directors of the Company shall determine that the preservation thereof
is no longer desirable in the conduct of the business of the Company and its
Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any
material respect to the Holders.

 

Section 4.09.      Maintenance of Total Unencumbered Assets.  The Company and its Subsidiaries shall
maintain Total Unencumbered Assets of not less than 120% of the aggregate
outstanding principal amount of the Unsecured Indebtedness of the Company and
its Subsidiaries, in each case on a consolidated basis.

 

Section 4.10.      Termination of Certain Covenants if Certain Ratings are Assigned.  The obligations under the covenants contained
in Sections 4.07 and 4.09 hereof shall cease to apply to the Company in
the event, and only for so long as, (1) the Notes are rated BBB or Baa2,
or higher, by at least two of the three Rating Agencies, and (2) no
Default or Event of Default has occurred and is continuing.

 

Section 4.11.      Maintenance of Properties; Books and Records; Compliance with Law.  (a) The Company shall and shall cause each of
its Subsidiaries to at all times cause all properties used or useful in the
conduct of its business to be maintained and kept in good condition, repair and
working order (reasonable wear and tear excepted) and supplied with all
necessary equipment, and shall cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereto; provided that nothing in this
Section 4.11 shall prevent the Company or any of its Subsidiaries from discontinuing
the operation or maintenance of any of such properties, or disposing of any of
them, if such discontinuance or disposal is either (i) in the ordinary
course of business, (ii) in the reasonable and good faith judgment of the
Board of Directors or management of the Company or the Subsidiary concerned, as
the case may be, desirable in the conduct of the business of the Company or
such Subsidiary, as the case may be, or (iii) otherwise permitted by this
Supplemental Indenture.

 

(b)           The Company shall and shall cause each of its Subsidiaries
to keep proper and true books of record and account, in which full and correct
entries shall be made of all financial transactions and the assets and business
of the Company and each of its Subsidiaries, and reflect on its financial
statements adequate accruals and appropriations to reserves, all in accordance
with GAAP consistently applied to the Company and its Subsidiaries taken as a
whole.

 

(c)           The Company shall and shall cause each of its Subsidiaries
to comply in all material respects with all statutes, laws, ordinances, or
government rules and regulations to which it is subject, non-compliance
with which would materially adversely affect the business, earnings,
properties, assets or condition (financial or otherwise) of the Company
and its Subsidiaries taken as a whole.

 

23

 

ARTICLE
5

SUCCESSORS

 

Section 5.01.      Merger, Consolidation, or Sale of Assets.  The Company shall not, in a single
transaction or series of related transactions, consolidate or merge with or
into any Person, or sell, assign, transfer, lease, convey or otherwise dispose
of (or cause or permit any Subsidiary of the Company to sell, assign, transfer,
lease, convey or otherwise dispose of) all or substantially all of the
Company’s assets (determined on a consolidated basis for the Company and the
Company’s Subsidiaries) whether as an entirety or substantially as an
entirety to any Person unless:

 

(1)           either:

 

(a)           the Company shall be the surviving or continuing
corporation; or

 

(b)           the Person (if other than the Company) formed by such
consolidation or into which the Company is merged or the Person which acquires
by sale, assignment, transfer, lease, conveyance or other disposition the properties
and assets of the Company and of the Company’s Subsidiaries substantially as an
entirety (the “Surviving Entity”):

 

(i)            shall be a corporation organized and validly existing
under the laws of the United States or any State thereof or the District of Columbia;
and

 

(ii)           shall expressly assume, by supplemental indenture (in form
and substance satisfactory to the Trustee), executed and delivered to the
Trustee, the due and punctual payment of the principal of, and premium, if any,
and interest on all of the Notes and the performance of every covenant of the
Notes and this Supplemental Indenture on the part of the Company to be
performed or observed;

 

(2)           immediately after giving effect to such transaction and
the assumption contemplated by clause (1)(b)(ii) above (including
giving effect to any Indebtedness and Acquired Indebtedness incurred or
anticipated to be incurred in connection with or in respect of such
transaction), the Company or such Surviving Entity, as the case may be:  (a) shall have a Consolidated Net Worth
equal to or greater than the Consolidated Net Worth of the Company immediately
prior to such transaction; and (b) shall be able to incur at least $1.00
of additional Indebtedness (other than Permitted Indebtedness) pursuant to
Section 4.07 hereof, if such covenant is then in effect; provided, however, that this
clause (2) shall not apply in the event of a transaction between the
Company and TriNet;

 

(3)           immediately before and immediately after giving effect to
such transaction and the assumption contemplated by
clause (1)(b)(ii) above (including, without limitation, giving effect
to any Indebtedness and Acquired Indebtedness incurred or anticipated to be
incurred and any Lien granted in connection with or in respect of the transaction),
no Default or Event of Default shall have occurred or be continuing; and

 

(4)           the Company or the Surviving Entity shall have delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that such consolidation, merger, sale, assignment, transfer, lease, conveyance
or other disposition and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture comply with the applicable
provisions of this Supplemental Indenture and that all conditions precedent in
this Supplemental Indenture relating to such transaction have been satisfied.

 

24

 

For purposes of the
foregoing, the transfer (by lease, assignment, sale or otherwise, in a single
transaction or series of transactions) of all or substantially all of the
properties or assets of one or more Subsidiaries of the Company the Capital
Stock of which constitutes all or substantially all of the properties and
assets of the Company, shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Company.

 

Section 5.02.      Successor Corporation Substituted.  Upon any consolidation or merger, or any
sale, assignment, transfer, lease, conveyance or other disposition of all or
substantially all of the assets of the Company in accordance with
Section 5.01 hereof, in which the Company is not the continuing
corporation, the successor corporation formed by such consolidation or into or
with which the Company is merged or to which such sale, assignment, transfer,
lease, conveyance or other disposition is made shall succeed to, and be
substituted for (so that from and after the date of such consolidation, merger,
sale, lease, conveyance or other disposition, the provisions of this
Supplemental Indenture referring to the “Company” shall refer instead to the
successor corporation and not to the Company), and may exercise every right and
power of, the Company under this Supplemental Indenture and the Notes with the
same effect as if such successor corporation had been named as the Company
herein; provided, however, that, in the case of a transfer
by lease, the predecessor Company shall not be relieved from the obligation to
pay the principal of and interest on the Notes.

 

ARTICLE
6

DEFAULTS AND REMEDIES

 

Section 6.01.      Events of Default. 
The following are “Events of Default”:

 

(1)           the failure to pay interest on any Notes when the same
becomes due and payable and the default continues for a period of 30 days;

 

(2)           the failure to pay the principal on any Notes, when such
principal becomes due and payable, at maturity or otherwise;

 

(3)           a default in the observance or performance of any other
covenant or agreement contained in this Supplemental Indenture and such default
continues for a period of 30 days after the Company receives written
notice specifying the default (and demanding that such default be
remedied) from the Trustee or the Holders of at least 25% of the
outstanding principal amount of the Notes (except in the case of a default with
respect to Section 5.01 hereof, which will constitute an Event of Default
with such notice requirement but without such passage of time requirement);

 

(4)           the failure to pay at final maturity (giving effect to any
applicable grace periods and any extensions thereof) the principal amount
of any Indebtedness (other than Non-Recourse Indebtedness) of the Company
or any Subsidiary of the Company, or the acceleration of the final stated
maturity of any such Indebtedness (which acceleration is not rescinded,
annulled or otherwise cured within 20 days of receipt by the Company or
such Subsidiary of notice of any such acceleration) if the aggregate
principal amount of such Indebtedness, together with the principal amount of
any other such Indebtedness in default for failure to pay principal at final
maturity or which has been accelerated, aggregates $50.0 million or more
at any time;

 

(5)           there shall have been the entry by a court of competent
jurisdiction of:

 

25

 

(a)           a decree or order for relief in respect of the Company or
any Significant Subsidiary in an involuntary case or proceeding under any
applicable Bankruptcy Law; or

 

(b)           a decree or order adjudging the Company or any Significant
Subsidiary bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company or any Significant
Subsidiary under any applicable federal or state law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or any Significant Subsidiary or of any
substantial part of its property, or ordering the winding up or liquidation of
its affairs, and any such decree or order for relief shall continue to be in
effect, or any such other decree or order shall be unstayed and in effect, for
a period of 60 consecutive days; or

 

(6)           (a)  the Company or
any Significant Subsidiary commences a voluntary case or proceeding under any
applicable Bankruptcy Law or any other case or proceeding to be adjudicated
bankrupt or insolvent;

 

(b)           the Company or any Significant Subsidiary consents to the
entry of a decree or order for relief in respect of the Company or such
Significant Subsidiary in an involuntary case or proceeding under any
applicable Bankruptcy Law or to the commencement of any bankruptcy or
insolvency case or proceeding against it;

 

(c)           the Company or any Significant Subsidiary files a petition
or answer or consent seeking reorganization or relief under any applicable federal
or state law;

 

(d)           the Company or any Significant Subsidiary:

 

(i)            consents to the filing of such petition or the
appointment of, or taking possession by, a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of the Company or such
Significant Subsidiary or of any substantial part of its property;

 

(ii)           makes an assignment for the benefit of creditors; or

 

(iii)          admits in writing its inability to pay its debts generally
as they become due; or

 

(e)           the Company or any Significant Subsidiary takes any
corporate action in furtherance of any such actions in this clause (6).

 

Section 6.02.      Acceleration.  If an
Event of Default (other than an Event of Default specified in
clauses (5) or (6) above with respect to the Company) shall
occur and be continuing, the Trustee or the Holders of at least 25% in
principal amount of outstanding Notes may declare the principal of and accrued
interest on all the Notes to be due and payable by notice in writing to the
Company and the Trustee specifying the respective Event of Default and that it
is a “notice of acceleration” (the “Acceleration
Notice”), and the same shall become immediately due and payable.

 

If an Event of Default
specified in clauses (5) or (6) above with respect to the Company
occurs and is continuing, then all unpaid principal of, and premium, if any,
and accrued and unpaid interest on all of the outstanding Notes shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder.

 

26

 

At any time after a
declaration of acceleration with respect to the Notes as described in the
preceding paragraph, the Holders of a majority in principal amount of the Notes
may rescind and cancel such declaration and its consequences:

 

(1)           if the rescission would not conflict with any judgment or
decree;

 

(2)           if all existing Events of Default have been cured or
waived except nonpayment of principal or interest that has become due solely
because of the acceleration;

 

(3)           to the extent the payment of such interest is lawful,
interest on overdue installments of interest and overdue principal, which has
become due otherwise than by such declaration of acceleration, has been paid;

 

(4)           if the Company has paid the Trustee its reasonable
compensation and reimbursed the Trustee for its expenses, disbursements and
advances; and

 

(5)           in the event of the cure or waiver of an Event of Default
of the type described in clauses (5) or (6) of Section 6.01
hereof, the Trustee shall have received an Officers’ Certificate and an Opinion
of Counsel that such Event of Default has been cured or waived.  No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

 

Section 6.03.      Other Remedies.  If an
Event of Default occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal, premium, if any, and interest on
the Notes or to enforce the performance of any provision of the Notes or this
Supplemental Indenture.

 

The Trustee may maintain a
proceeding even if it does not possess any of the Notes or does not produce any
of them in the proceeding.  A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default.  All remedies are cumulative to the extent
permitted by law.

 

Section 6.04.      Waiver of Past Defaults. 
Holders of not less than a majority in aggregate principal amount of the
then outstanding Notes by notice in writing to the Trustee may on behalf of the
Holders of all of the Notes waive an existing Default or Event of Default and
its consequences hereunder, except a continuing Default or Event of Default in
the payment of the principal of, premium, if any, or interest on, the Notes (provided, however, that the Holders of a
majority in aggregate principal amount of the then outstanding Notes may
rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration). 
Upon any such waiver, such Default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured for every
purpose of this Supplemental Indenture; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereon.

 

Section 6.05.      Control by Majority. 
Holders of a majority in principal amount of the then outstanding Notes
may, by written notice, direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee or exercising any
trust or power conferred on it.  However,
the Trustee may refuse to follow any direction that conflicts with law or this
Supplemental Indenture that the Trustee determines may be unduly prejudicial to
the rights of other Holders of Notes or that may involve the Trustee in any
personal liability.

 

Section 6.06.      Limitation on Suits. 
A Holder of a Note may pursue a remedy with respect to this Supplemental
Indenture or the Notes only if:

 

27

 

(a)           a Holder gives to the Trustee written notice of a
continuing Event of Default;

 

(b)           the Holders of at least 25% in principal amount of the
then outstanding Notes make a written request to the Trustee to pursue the
remedy;

 

(c)           such Holder or Holders offer and, if requested, provide to
the Trustee indemnity satisfactory to the Trustee against any loss, liability
or expense;

 

(d)           the Trustee does not comply with the request within 60
days after receipt of the request and the offer and, if requested, the
provision of indemnity; and

 

(e)           during such 60-day period the Holders of a majority in
principal amount of the then outstanding Notes do not give the Trustee a
written direction inconsistent with the request.

 

A Holder may not use this
Supplemental Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder.

 

Section 6.07.      Rights of Holders of Notes to Receive Payment.  Notwithstanding any other provision of this
Supplemental Indenture, the right of any Holder to receive payment of
principal, premium, if any, and interest on the Notes so held, on or after the
respective due dates expressed in the Notes (including in connection with an
offer to purchase), or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

 

Section 6.08.      Collection Suit by Trustee. 
If an Event of Default specified in Section 6.01(1) or
(2) occurs and is continuing, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount of principal of, premium, if any, and interest remaining
unpaid on the Notes and interest on overdue principal and, to the extent
lawful, interest and such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel and
any amounts due the Trustee under Section 7.07 hereof.

 

Section 6.09.      Trustee May File Proofs of Claim.  The Trustee is authorized to file such proofs
of claim and other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Holders allowed in any judicial proceedings relative
to the Company (or any other obligor upon the Notes), its creditors or its
property and shall be entitled and empowered to collect, receive and distribute
any money or other property payable or deliverable on any such claims and any
custodian in any such judicial proceeding is hereby authorized by each Holder
to make such payments to the Trustee, and in the event that the Trustee shall
consent in writing to the making of such payments directly to the Holders, to
pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the Trustee under Section 7.07 hereof.  To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07
hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid
out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.  Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or
to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding.

 

28

 

Section 6.10.      Priorities.  If the
Trustee collects any money pursuant to this Article, it shall pay out the money
in the following order:

 

First:  to
the Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expense and liabilities incurred,
and all advances made, by the Trustee and the costs and expenses of collection;

 

Second:  to
Holders of Notes for amounts due and unpaid on the Notes for principal,
premium, if any, and interest, ratably, without preference or priority of any
kind, according to the amounts due and payable on the Notes for principal,
premium, if any and interest, respectively; and

 

Third:  to
the Company or to such party as a court of competent jurisdiction shall direct.

 

The Trustee may fix a record
date and payment date for any payment to Holders of Notes pursuant to this
Section 6.10.

 

Section 6.11.      Undertaking for Costs. 
In any suit for the enforcement of any right or remedy under this
Supplemental Indenture or in any suit against the Trustee for any action taken
or omitted by it as a Trustee, a court in its discretion may require the filing
by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant.  This Section does not apply to
a suit by the Trustee, a suit by a Holder of a Note pursuant to
Section 6.07 hereof, or a suit by Holders of more than 10% in principal
amount of the then outstanding Notes.

 

ARTICLE
7

TRUSTEE

 

Section 7.01.      Duties of Trustee. 
(a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise such of the rights and powers vested in it by this Supplemental
Indenture, and use the same degree of care and skill in its exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

 

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

 

(i)            the Trustee undertakes to perform such duties and only
such duties as are specifically set forth in this Supplemental Indenture and no
implied covenants or obligations shall be read into this Supplemental Indenture
against the Trustee; and

 

(ii)           the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Supplemental Indenture in the absence of bad faith on the
Trustee’s part; provided, however,
that the Trustee shall examine the certificates and opinions to determine
whether or not they substantially conform to the requirements of this
Supplemental Indenture.

 

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

 

29

 

(i)            this paragraph does not limit the effect of paragraph
(b) of this Section 7.01;

 

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

 

(iii)          the Trustee shall not be liable with respect to any action
it takes or omits to take in good faith in accordance with a written direction
received by it pursuant to Section 6.05; and

 

(iv)          the Trustee shall not be required to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its
duties under this Supplemental Indenture or in the exercise of any of its
rights or powers, if it has reasonable grounds to believe repayment of the
funds or adequate indemnity against the risk or liability is not reasonably
assured to it.

 

(d)           Every provision of this Supplemental Indenture relating to
the conduct or affecting the liability of or affording protection to the
Trustee is subject to the provisions of this Section 7.01 and to the provisions
of the TIA.

 

(e)           The Trustee may refuse to perform any duty or exercise any
right or power unless it receives indemnity satisfactory to it against any
loss, liability or expense.

 

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

 

(g)           The Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of not less than a majority in principal amount of the
Notes at the time outstanding given pursuant to Section 6.05 of this
Supplemental Indenture, relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee under this Supplemental Indenture.

 

Section 7.02.      Rights of Trustee. 
(a) The Trustee may rely on any document believed by it to be genuine
and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

(b)           Before the Trustee acts or refrains from acting, it may
require an Officers’ Certificate or an Opinion of Counsel that conforms to
Section 11.04.  The Trustee shall
not be liable for any action it takes or omits to take in good faith in
reliance on such Officers’ Certificate or Opinion of Counsel.

 

(c)           The Trustee may act through agents and shall not be
responsible for the misconduct or negligence of any agent appointed with due
care.

 

(d)           The Trustee shall not be liable for any action it takes or
omits to take in good faith that it believes to be authorized or within its
rights or powers, except conduct that constitutes willful misconduct,
negligence or bad faith.

 

(e)           The Trustee may consult with counsel, and the Trustee will
not be liable for any action it takes or omits in reliance on, and in
accordance with, written advice of counsel.

 

30

 

(f)            The Trustee will not be required to investigate any facts
or matters stated in any document, but if it decides to investigate any matters
or facts, the Trustee or its agents or attorneys will be entitled to examine
the books, records and premises of the Company.

 

Section 7.03.      Individual Rights of Trustee.  The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
the Company or any Affiliate of the Company with the same rights it would have
if it were not Trustee.  Any Paying
Agent, Registrar, co-registrar or co-paying agent may do the same with like
rights.  However, the Trustee must comply
with Sections 7.10 and 7.11 hereof.

 

Section 7.04.      Trustee’s Disclaimer. 
The Trustee (i) is not responsible for and makes no representation
as to the validity or adequacy of this Supplemental Indenture, (ii) shall
not be accountable for the Company’s use of the proceeds from the Notes and
(iii) shall not be responsible for any statement of the Company in this
Supplemental Indenture, other than the Trustee’s certificate of authentication,
or in any prospectus used in the sale of any of the Notes, other than statements,
if any, provided in writing by the Trustee for use in such prospectus.

 

Section 7.05.      Notice of Defaults. 
The Trustee will give to the Holders notice of any Default with regard
to the Notes actually known to a Responsible Officer within 90 days after
receipt of such knowledge and in the manner and to the extent provided in TIA
§ 313(c), and otherwise as provided in Section 11.02 of this
Supplemental Indenture; provided, however,
that except in the case of a Default in payment of the principal of, premium,
if any, or interest on any Note, the Trustee will be protected in withholding
notice of Default if and so long as a committee of its Responsible Officers in
good faith determines that withholding of the notice is in the interests of the
Holders of the Notes.

 

Section 7.06.      Reports by Trustee. 
Within 60 days after each October 15 beginning with the
October 15 following the date of this Supplemental Indenture, the Trustee
will mail to each Holder, at the name and address which appears on the
registration books of the Company, and to each Holder who has, within the two
years preceding the mailing, filed that person’s name and address with the
Trustee for that purpose and each Holder whose name and address have been
furnished to the Trustee pursuant to Section 2.05, a brief report dated as
of that October 15 which complies with TIA § 313(a).  Reports to Noteholders pursuant to this
Section 7.06 shall be transmitted in the manner and to the extent provided
in TIA § 313(c).  The Trustee also
will comply with TIA § 313(b).

 

A copy of each report will
at the time of its mailing to Holders be filed with each stock exchange on
which the Notes are listed and also with the SEC.  The Company will promptly notify the Trustee
when the Notes are listed on any stock exchange and of any delisting of the
Notes.

 

Section 7.07.      Compensation and Indemnity. 
The Company shall pay to the Trustee from time to time reasonable
compensation for its services.  The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The Company
shall reimburse the Trustee upon request for all reasonable out-of-pocket
expenses incurred or made by it, including costs of collection, in addition to
the compensation for its services.  Such
expenses shall include the reasonable compensation and expenses, disbursements
and advances of the Trustee’s agents, counsel, accountants and experts.

 

The Company shall indemnify
the Trustee against any and all loss, liability or expense (including reasonable
attorney’s fees) incurred by it in connection with the administration of
the trust created by this Supplemental Indenture and the performance of its
duties under this Supplemental Indenture. 
The Trustee shall notify the Company promptly of any claim for which it
may seek indemnity.  Failure by the
Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder.  The Company shall
defend the claim and the Trustee may have separate counsel and the Company
shall pay

 

31

 

the fees and expenses of such counsel. 
The Company need not pay for any settlement made without its
consent.  The Company need not reimburse
any expense or indemnify against any loss, expense or liability incurred by the
Trustee to the extent it is due to the Trustee’s own willful misconduct,
negligence or bad faith.

 

To secure the Company’s
obligations to make payments to the Trustee under this Section 7.07, the
Trustee shall have a Lien prior to the Notes on all money or property held or
collected by the Trustee, other than money or property held in trust to pay
principal or interest on particular Notes. 
Those obligations of the Company shall survive the satisfaction and
discharge of this Supplemental Indenture.

 

When the Trustee incurs
expenses or renders services after an Event of Default specified in
Sections 6.01(6) or (7) hereof occurs, the expenses and the
compensation for the services of the Trustee are intended to constitute
expenses of administration under any Bankruptcy Law.

 

For purposes of this
Section 7.07, “Trustee” will include any predecessor Trustee, but the
willful misconduct, negligence or bad faith of any Trustee shall not affect the
rights of any other Trustee under this Section 7.07.

 

Section 7.08.      Replacement of Trustee. 
The Trustee may resign at any time by so notifying the Company.  The Holders of a majority in aggregate
principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and the Company and may appoint a successor Trustee.  The Company may remove the Trustee if:

 

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

 

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

 

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

 

(d)           the Trustee becomes incapable of acting.

 

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

 

No removal or appointment of
a Trustee will be valid if that removal or appointment would conflict with any
law applicable to the Company.

 

A successor Trustee will
deliver a written acceptance of its appointment to the retiring Trustee and to
the Company.  Immediately after that, the
retiring Trustee will, subject to the Lien provided for in Section 7.07,
transfer all property held by it as Trustee to the successor Trustee, the
resignation or removal of the retiring Trustee will become effective, and the
successor Trustee will have all the rights, powers and duties of the Trustee
under this Supplemental Indenture.  A
successor Trustee will mail notice of its succession to each Holder.

 

If a successor Trustee does
not take office within 60 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of a majority in
aggregate principal amount of the then outstanding Notes may petition any court
of competent jurisdiction for the appointment of a successor Trustee.

 

32

 

If the Trustee fails to
comply with Section 7.10, any Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

Notwithstanding the
replacement of the Trustee pursuant to this Section, the Company’s obligations
under Section 7.07 shall continue for the benefit of the retiring Trustee.

 

Section 7.09.      Successor Trustee by Merger, etc.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust
assets to, another Person, the resulting, surviving or transferee Person will,
without any further act, be the successor Trustee.

 

If at the time a successor
by merger, conversion or consolidation to the Trustee succeeds to the trusts
created by this Supplemental Indenture any of the Notes have been authenticated
but not delivered, the successor to the Trustee may adopt the certificate of
authentication of the predecessor Trustee, and deliver the Notes which were
authenticated by the predecessor Trustee; and if at that time any of the Notes
have not been authenticated, the successor to the Trustee may authenticate
those Notes in its own name as the successor to the Trustee; and in either case
the certificates of authentication will have the full force provided in this
Supplemental Indenture for certificates of authentication.

 

Section 7.10.      Eligibility; Disqualification.  The Trustee will at all times satisfy the
requirements of TIA § 310(a).  The
Trustee will at all times have (or shall be a member of a bank holding company
system whose parent corporation has) a combined capital and surplus of at
least $50,000,000 as set forth in its most recently published annual report of
condition, which will be deemed for this paragraph to be its combined capital
and surplus.  The Trustee will comply
with TIA § 310(b).

 

Section 7.11.      Preferential Collection of Claims.  The Trustee shall comply with TIA
§ 311(a), excluding any creditor relationship listed in TIA
§ 311(b).  A Trustee who has
resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

 

ARTICLE
8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.01.      Option to Effect Legal Defeasance or Covenant Defeasance.  The Company may, at the option of its Board
of Directors evidenced by a Board Resolution set forth in an Officers’
Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof
be applied to all outstanding Notes upon compliance with the conditions set
forth below in this Article 8.

 

Section 8.02.      Legal Defeasance and Discharge.  Upon the Company’s exercise under
Section 8.01 hereof of the option applicable to this Section 8.02,
the Company shall, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, be deemed to have been discharged from its
obligations with respect to all outstanding Notes on the date the conditions
set forth below are satisfied (hereinafter, “Legal
Defeasance”).  For this
purpose, Legal Defeasance means that the Company shall be deemed to have paid
and discharged the entire Indebtedness represented by the outstanding Notes,
which shall thereafter be deemed to be “outstanding” only for the purposes of
Section 8.05 hereof and the other Sections of this Supplemental
Indenture referred to in (a) and (b) below, and to have satisfied all
its other obligations under such Notes and this Supplemental Indenture (and the
Trustee, on written demand of and at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following provisions
which shall survive until otherwise terminated or discharged hereunder:  (a) the rights of Holders of outstanding
Notes to receive solely from the trust fund described in Section 8.04
hereof, and as more fully set forth in such Section, payments in respect of the
principal of, premium, if any, and interest on such Notes when such payments
are due, (b) the Company’s obligations with respect

 

33

 

to such Notes under Article 2 and Section 4.02 hereof,
(c) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and the Company’s obligations in connection therewith and
(d) this Article 8.  Subject to
compliance with this Article 8, the Company may exercise its option under
this Section 8.02 notwithstanding the prior exercise of its option under
Section 8.03 hereof.

 

Section 8.03.      Covenant Defeasance. 
Upon the Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be
released from its obligations under the covenants contained in Sections 4.07,
4.09, 4.10 hereof and clause (2) of Section 5.01 hereof with
respect to the outstanding Notes on and after the date the conditions set forth
in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be
deemed not “outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes shall not
be deemed outstanding for accounting purposes). 
For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under
Section 6.01 hereof, but, except as specified above, the remainder of this
Supplemental Indenture and such Notes shall be unaffected thereby.  In addition, upon the Company’s exercise
under Section 8.01 hereof of the option applicable to this
Section 8.03 hereof, subject to the satisfaction of the conditions set
forth in Section 8.04 hereof, Sections 6.01(4) and
(5) hereof shall not constitute Events of Default.

 

Section 8.04.      Conditions to Legal or Covenant Defeasance.  The following shall be the conditions to the
application of either Section 8.02 or 8.03 hereof to the outstanding U.S.
Notes:

 

In order to exercise either
Legal Defeasance or Covenant Defeasance:

 

(a)           the Company must irrevocably deposit with the Trustee, in
trust, for the benefit of the Holders, cash in United States dollars,
non-callable Government Securities, or a combination thereof, in such amounts
as will be sufficient, in the opinion of a nationally recognized independent
registered public accounting firm, to pay the principal of, premium, if any,
and interest on the outstanding Notes on the stated date for payment thereof;

 

(b)           in the case of an election under Section 8.02 hereof,
the Company shall have delivered to the Trustee an Opinion of Counsel in the
United States reasonably acceptable to the Trustee confirming that (i) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling or (ii) since the date of this Supplemental Indenture,
there has been a change in the applicable federal income tax law, in either
case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders of the outstanding Notes will not recognize income,
gain or loss for federal income tax purposes as a result of such Legal
Defeasance and will be subject to federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

 

(c)           in the case of an election under Section 8.03 hereof,
the Company shall have delivered to the Trustee an Opinion of Counsel in the
United States reasonably acceptable to the Trustee confirming that the Holders
of the outstanding Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

34

 

(d)           no Default or Event of Default shall have occurred and be
continuing on the date of such deposit or insofar as Events of Default from
bankruptcy or insolvency events are concerned, at any time in the period ending
on the 91st day after the date of deposit;

 

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

 

(f)            the Company shall have delivered to the Trustee an
Officers’ Certificate stating that the deposit was not made by the Company with
the intent of preferring the Holders over any other creditors of the Company or
with the intent of defeating, hindering, delaying or defrauding any other
creditors of the Company or others;

 

(g)           the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for or relating to the Legal Defeasance or the
Covenant Defeasance, as the case may be, have been complied with; and

 

(h)           the Company shall have delivered to the Trustee an Opinion
of Counsel to the effect that, assuming no intervening bankruptcy of the
Company between the date of deposit and the 91st day following the date of
deposit and that no Holder is an insider of the Company, after the 91st day
following the date of deposit, the trust funds will not be subject to the
effect of any applicable bankruptcy, insolvency, reorganization or similar laws
affecting creditors’ rights generally.

 

Notwithstanding the
foregoing, the opinion of counsel required by clause (b) above with
respect to Legal Defeasance need not be delivered if all Notes not theretofore
delivered to the Trustee for cancellation (1) have become due and payable
or (2) will become due and payable on the maturity date within one year
under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company.

 

Section 8.05.      Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions. 
Subject to Section 8.06 hereof, all money and non-callable
Government Securities (including the proceeds thereof) deposited with the
Trustee pursuant to Section 8.04 hereof in respect of the outstanding
Notes shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Supplemental Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
Paying Agent) as the Trustee may determine, to the Holders of such Notes
of all sums due and to become due thereon in respect of principal, premium, if
any, and interest, but such money need not be segregated from other funds
except to the extent required by law.

 

The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the cash or non-callable Government Securities deposited
pursuant to Section 8.04 hereof or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of the outstanding Notes.

 

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

 

35

 

Section 8.06.      Repayment to Company. 
Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of, premium, if any,
or interest on any Note and remaining unclaimed for two years after such
principal, and premium, if any, or interest has become due and payable shall be
paid to the Company on its written request or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Note
shall thereafter look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in the New York Times and The Wall Street  Journal (national edition), notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such notification or publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

 

Section 8.07.      Reinstatement.  If the
Trustee or Paying Agent is unable to apply any United States dollars or
non-callable Government Securities in accordance with Section 8.02 or 8.03
hereof, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company’s obligations under this Supplemental Indenture
and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with
Section 8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Company
makes any payment of principal of, premium, if any, or interest on any Note
following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money held by the Trustee or Paying Agent.

 

ARTICLE
9

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01.      Without Consent of Holders of Notes.  Notwithstanding Section 9.02 of this
Supplemental Indenture, the Company and the Trustee may amend or supplement
this Supplemental Indenture or the Notes without the consent of any Holder of a
Note:

 

(a)           to cure any ambiguity, defect or inconsistency that does
not adversely affect in any material respect the rights hereunder of any Holder
of the Notes;

 

(b)           to provide for uncertificated Notes in addition to or in
place of certificated Notes or to alter the provisions of Article 2 hereof
(including the related definitions) in a manner that does not materially
adversely affect any Holder;

 

(c)           to provide for the assumption of the Company’s obligations
to the Holders by a successor to the Company pursuant to Article 5 hereof;

 

(d)           to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely
affect in any material respect the rights hereunder of any Holder of the Notes;

 

(e)           to comply with requirements of the SEC in order to effect
or maintain the qualification of this Supplemental Indenture under the TIA; or

 

(f)            to evidence and provide for the acceptance of appointment
under this Supplemental Indenture of a successor Trustee.

 

36

 

Upon the written request of
the Company accompanied by, to the extent necessary, a Board Resolution
authorizing the execution of any such amended or supplemental Supplemental
Indenture, and upon receipt by the Trustee of the documents described in
Section 7.02 hereof, the Trustee shall join with the Company in the
execution of any amended or supplemental Supplemental Indenture authorized or
permitted by the terms of this Supplemental Indenture and to make any further
appropriate agreements and stipulations that may be therein contained, but the
Trustee shall not be obligated to enter into such amended or supplemental
Supplemental Indenture that affects its own rights, duties or immunities under
this Supplemental Indenture or otherwise.

 

Section 9.02.      With Consent of Holders of Notes.  Except as provided below in this
Section 9.02, the Company and the Trustee may amend or supplement this
Supplemental Indenture, and the Notes with the written consent of the Holders
of at least a majority in principal amount of the Notes then outstanding voting
as a single class (including consents obtained in connection with a tender
offer or exchange offer for, or purchase of, the Notes), and, subject to
Sections 6.04 and 6.07 hereof, any existing Default or Event of Default
(other than a Default or Event of Default in the payment of the principal of,
premium, if any, or interest on the Notes, except a payment default resulting
from an acceleration that has been rescinded) or compliance with any
provision of this Supplemental Indenture or the Notes may be waived with the
written consent of the Holders of a majority in principal amount of the then
outstanding Notes voting as a single class (including consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes).

 

Upon the written request of
the Company accompanied by a Board Resolution authorizing the execution of any
such amended or supplemental Supplemental Indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the
Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents
described in Section 7.02 hereof, the Trustee shall join with the Company
in the execution of such amended or supplemental Supplemental Indenture unless such
amended or supplemental Supplemental Indenture directly affects the Trustee’s
own rights, duties or immunities under this Supplemental Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such amended or supplemental Supplemental Indenture.

 

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

 

After an amendment,
supplement or waiver under this Section becomes effective, the Company shall
mail to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver.  Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such amended or supplemental
Supplemental Indenture or waiver. 
Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority
in aggregate principal amount of the Notes then outstanding voting as a single
class may waive in writing compliance in a particular instance by the Company
with any provision of this Supplemental Indenture or the Notes.  However, without the written consent of each
Holder affected, an amendment or waiver under this Section 9.02 may not
(with respect to any Notes held by a non-consenting Holder):

 

(a)           reduce the amount of Notes whose Holders must consent to
an amendment;

 

(b)           reduce the rate of or change or have the effect of
changing the time for payment of interest, including defaulted interest, on any
Notes;

 

37

 

(c)           reduce the principal of or change or have the effect of
changing the fixed maturity of any Notes;

 

(d)           make any Notes payable in money other than that stated in
the Notes;

 

(e)           make any change in provisions of this Supplemental
Indenture protecting the right of each Holder to receive payment of principal
of and interest on such Note on or after the due date thereof or to bring suit
to enforce such payment, or permitting Holders of a majority in principal
amount of Notes to waive Defaults or Events of Default; or

 

(f)            modify or change any provision of this Supplemental
Indenture or the related definitions affecting the subordination or ranking of
the Notes in a manner which adversely affects the Holders.

 

Section 9.03.      Compliance with Trust Indenture Act.  Every amendment or supplement to this
Supplemental Indenture or the Notes shall be set forth in a amended or
supplemental Supplemental Indenture that complies with the TIA as then in
effect.

 

Section 9.04.      Revocation and Effect of Consents.  Until an amendment, supplement or waiver
becomes effective, a consent to it by a Holder is a continuing consent by the
Holder of a Note and every subsequent Holder of a Note or portion of a Note
that evidences the same debt as the consenting Holder’s Note, even if notation
of the consent is not made on any Note. 
However, any such Holder or subsequent Holder may revoke the consent as
to its Note if the Trustee receives written notice of revocation before the
date the waiver, supplement or amendment becomes effective.  An amendment, supplement or waiver becomes
effective in accordance with its terms and thereafter binds every Holder.

 

Section 9.05.      Notation on or Exchange of Notes.  The Trustee may place an appropriate notation
about an amendment, supplement or waiver on any Note thereafter
authenticated.  The Company in exchange
for all Notes may issue and the Trustee shall, upon receipt of an
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

 

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

 

Section 9.06.      Trustee to Sign Amendments, etc.  The Trustee shall sign any amended or
supplemental Supplemental Indenture authorized pursuant to this Article 9
if the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
The Company may not sign an amendment or supplemental Supplemental
Indenture until the Board of Directors approves it.  In executing any amended or supplemental
indenture, the Trustee shall be entitled to receive and (subject to
Section 7.01 hereof) shall be fully protected in relying conclusively
upon, in addition to the documents required by Section 11.04 hereof, an
Officer’s Certificate and an Opinion of Counsel stating that the execution of
such amended or supplemental indenture is authorized or permitted by this
Supplemental Indenture.

 

ARTICLE
10

SATISFACTION AND DISCHARGE

 

Section 10.01.      Satisfaction and Discharge. 
This Supplemental Indenture will be discharged and will cease to be of
further effect (except as to surviving rights or registration of transfer or
exchange of the Notes, as expressly provided for in this Supplemental
Indenture) as to all outstanding Notes, when:

 

38

 

(a)           either:

 

(i)            all the Notes theretofore authenticated and delivered
(except lost, stolen or destroyed Notes that have been replaced or paid and
Notes for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust) have been delivered to the Trustee
for cancellation; or

 

(ii)           all Notes not theretofore delivered to the Trustee for
cancellation have become due and payable and the Company has irrevocably
deposited or caused to be deposited with the Trustee funds in an amount
sufficient to pay and discharge the entire Indebtedness on the Notes not
theretofore delivered to the Trustee for cancellation, for principal of,
premium, if any, and interest on the Notes to the date of deposit together with
irrevocable instructions from the Company directing the Trustee to apply such
funds to the payment thereof at maturity;

 

(b)           the Company has paid all other sums payable under this
Supplemental Indenture by the Company; and

 

(c)           the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel stating that all conditions precedent
under this Supplemental Indenture relating to the satisfaction and discharge of
this Supplemental Indenture have been complied with.

 

Section 10.02.      Application of Trust Money. 
Subject to the provisions of Section 8.06, all money deposited with
the Trustee pursuant to Section 10.01 shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Supplemental
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the
Trustee; but such money need not be segregated from other funds except to the
extent required by law.

 

If the Trustee or Paying
Agent is unable to apply any money or Government Securities in accordance with
Section 10.01 by reason of any legal proceeding or by reason of any order
or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company’s obligations under this
Supplemental Indenture and the Notes shall be revived and reinstated as though
no deposit had occurred pursuant to Section 10.01; provided that if the Company has made any
payment of principal of, premium, if any, or interest on any Notes because of
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

 

ARTICLE
11

MISCELLANEOUS

 

Section 11.01.      Trust Indenture Act Controls.  If any provision of this Supplemental
Indenture limits, qualifies or conflicts with the duties imposed by TIA
§ 318(c), the imposed duties shall control.

 

Section 11.02.      Notices.  Any notice
or communication by the Company or the Trustee to the others is duly given if
in writing and delivered in Person or mailed by first class mail (registered or
certified, return receipt requested), telex, telecopier or overnight air
courier guaranteeing next day delivery, to the others’ address:

 

39

 

If to the Company:  

iStar Financial Inc.

1114 Avenue of the Americas, 27th Floor

New York, NY  10036

Facsimile:  (212) 930-9494

Attention:  Chief Executive Officer

 

With a copy to:  

Clifford Chance US LLP

31 West 52nd Street

New York, NY  10019

Facsimile:  (212) 878-8375

Attention:  Kathleen L. Werner, Esq.

 

If to the Trustee:  

US Bank Trust National Association

100 Wall Street, 19th Floor

New York, NY 10005

Attention:  Angelita Pena, Corporate
Trust Department

 

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

 

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

 

Any notice or communication
to a Holder shall be mailed by first class mail, certified or registered,
return receipt requested, or by overnight air courier guaranteeing next day
delivery to its address shown on the register kept by the Registrar.  Any notice or communication shall also be so
mailed to any Person described in TIA § 313(c), to the extent required by
the TIA.  Failure to mail a notice or
communication to a Holder or any defect in it shall not affect its sufficiency
with respect to other Holders.

 

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

 

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

 

Section 11.03.      Communication by Holders of Notes with Other Holders of Notes.  Holders may communicate pursuant to TIA
§ 312(b) with other Holders with respect to their rights under this
Supplemental Indenture or the Notes.  The
Company, the Trustee, the Registrar and anyone else shall have the protection
of TIA § 312(c).

 

40

 

Section 11.04.      Certificate and Opinion as to Conditions Precedent.  Upon any request or application by the
Company to the Trustee to take any action under this Supplemental Indenture,
the Company shall furnish to the Trustee:

 

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

 

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

 

Section 11.05.      Statements Required in Certificate or Opinion.  Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Supplemental
Indenture (other than a certificate provided pursuant to TIA
§ 314(a)(4)) shall comply with the provisions of TIA
§ 314(e) and shall include:

 

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

 

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

 

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

 

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

 

Section 11.06.      Rules by Trustee and Agents. 
The Trustee may make reasonable rules for action by or at a meeting of
Holders.  The Registrar or Paying Agent
may make reasonable rules and set reasonable requirements for its functions.

 

Section 11.07.      No Personal Liability of Directors, Officers, Employees and
Stockholders.  No past,
present or future director, officer, employee, incorporator or stockholder of
the Company, as such, shall have any liability for any obligations of the
Company under the Notes, this Supplemental Indenture or for any claim based on,
in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and
releases all such liability.  The waiver
and release are part of the consideration for issuance of the Notes.

 

Section 11.08.      Governing Law.  THE
INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
SUPPLEMENTAL INDENTURE AND THE NOTES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES
OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 11.09.      No Adverse Interpretation of Other Agreements.  This Supplemental Indenture may not be used
to interpret any other indenture, loan or debt agreement of the Company or its
Subsidiaries or of

 

41

 

any other Person.  Any such
indenture, loan or debt agreement may not be used to interpret this
Supplemental Indenture.

 

Section 11.10.      Successors.  All
agreements of the Company in this Supplemental Indenture and the Notes shall
bind its successors.  All agreements of
the Trustee in this Supplemental Indenture shall bind its successors.

 

Section 11.11.      Severability.  In case
any provision in this Supplemental Indenture or in the Notes shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

 

Section 11.12.      Counterpart Originals. 
The parties may sign any number of copies of this Supplemental
Indenture.  Each signed copy shall be an
original, but all of them together represent the same agreement.

 

Section 11.13.      Table of Contents, Headings, etc.  The Table of Contents, Cross-Reference Table
and Headings of the Articles and Sections of this Supplemental Indenture
have been inserted for convenience of reference only, are not to be considered
a part of this Supplemental Indenture and shall in no way modify or restrict
any of the terms or provisions hereof.

 

Section 11.14.      Conflicts with Indenture. 
If any provision of this Supplemental Indenture is inconsistent with any
provision of the Indenture, the provision of this Supplemental Indenture will
control with regard to the Notes.

 

[Signatures on following
page]

 

42

 

SIGNATURES

Dated as of December 14, 2005

 

	
   

  	
  iSTAR FINANCIAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  US BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity,
  but solely as Trustee

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT A

[Face of Note]

[Insert
the Global Note Legend, if applicable pursuant to the provisions of the 

Supplemental Indenture]

 

	
   

  	
   

  	
  CUSIP 45031UAV3

  
	
  Senior Floating Rate Notes
  due 2009

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  No.      

  	
   

  	
  $225,000,000

  
	
  iSTAR FINANCIAL INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  promises to pay to                              ,
  or registered assigns, the principal sum of TWO HUNDRED AND TWENTY FIVE
  MILLION Dollars on March 16, 2009.

  
	
   

  
	
  Interest Payment Dates: March 16, June 16,
  September 16 and December 16

  
	
   

  
	
  Record Dates: March 1, June 1, September 1 and
  December 1

  
	
   

  
	
  Dated: December 14, 2005

  
					

 

	
   

  	
  iSTAR FINANCIAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

SEAL

 

This is one of the Notes referred to

in the within-mentioned Supplemental Indenture: 

US BANK TRUST NATIONAL ASSOCIATION

   as Trustee

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

A-1

 

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

 

1.  INTEREST.  iStar Financial Inc., a Maryland corporation
(the “Company”), promises to pay
interest on the principal amount of this note quarterly in arrears on March 16,
June 16, September 16 and December 16 of each year, or if any
such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”) at the rate
per annum, reset quarterly (the “interest
reset period” and the first date in such period, the “interest reset date”), equal to three-month
LIBOR (as defined below) plus 0.55% to be determined by the calculation
agent.  Interest on the notes will accrue
from the most recent date to which interest has been paid or, if no interest
has been paid, from December 14, 2005; provided
that if there is no existing default in the payment of interest, and
if this note is authenticated between a record date referred to on the face
hereof and the next succeeding interest payment date, interest shall accrue
from such next succeeding interest payment date; provided, further, that the first interest payment date
shall be March 16, 2006.  The
company shall pay interest (including post-petition interest in any proceeding
under any bankruptcy law) on overdue principal and premium, if any, from
time to time on demand at the rate then in effect; it shall pay interest
(including post-petition interest in any proceeding under any bankruptcy
law) on overdue installments of interest (without regard to any applicable
grace periods) from time to time on demand at the same rate to the extent
lawful.  Interest will be computed on the
basis of a 360-day year using the actual number of days elapsed from and
including an interest payment date to but excluding the next succeeding
interest payment date.  If any interest
payment date on the Notes other than the maturity date is not a Business Day,
such interest payment date will be postponed to the next succeeding Business
Day, except that if such Business Day falls in the next succeeding calendar
month, such interest payment date will be the immediately preceding Business
Day:  If the maturity date of the Notes
falls on a day that is not a Business Day, the required payment of principal
and interest will be made on the next succeeding Business Day as if made on the
date such payment was due, and no interest will accrue on such payment for the
period from and after the maturity date to the date of such payment on the next
succeeding Business Day.

 

The interest rate on the
Notes applicable to each interest reset period commencing on the related
interest reset date, or the original issue date in the case of the initial
interest period, will be the rate determined as of the applicable interest
determination date.  The “interest
determination date” will be the second London business day immediately
preceding the original issue date, in the case of the initial interest reset
period, or thereafter the applicable interest reset date.

 

US Bank Trust National
Association, or its successor appointed by us, will act as calculation
agent.  Three-month LIBOR will be
determined by the calculation agent as of the applicable interest determination
date in accordance with the following provisions:

 

(i)                   LIBOR is the rate for deposits in U.S.
dollars for the three-month period which appears on Moneyline Telerate
Page 3750 (as defined below) at approximately 11:00 a.m., London
time, on the applicable interest determination date.  “Moneyline Telerate Page 3750” means the
display designated on page “3750” on Moneyline Telerate (or such other page as
may replace the 3750 page on that service, any successor service or such other
service or services as may be nominated by the British Bankers’ Association for
the purpose of displaying London interbank offered rates for U.S. dollar
deposits).  If no rate appears on
Moneyline Telerate Page 3750, LIBOR for such interest determination date
will be determined in accordance with the provisions of paragraph (ii) below.

 

A-2

 

(ii)                With respect to an interest determination
date on which no rate appears on Moneyline Telerate Page 3750 at
approximately 11:00 a.m., London time, on such interest determination date, the
calculation agent shall request the principal London offices of each of four
major reference banks (which may include affiliates of the
underwriters) in the London interbank market selected by the calculation
agent (after consultation with us) to provide the calculation agent with a
quotation of the rate at which deposits of U.S. dollars having a three-month
maturity, commencing on the second London business day immediately following
such interest determination date, are offered by it to prime banks in the
London interbank market as of approximately 11:00 a.m., London time, on such
interest determination date in a principal amount equal to an amount of not
less than U.S. $1,000,000 that is representative for a single transaction in
such market at such time.  If at least
two such quotations are provided, LIBOR for such interest determination date
will be the arithmetic mean of such quotations as calculated by the calculation
agent.  If fewer than two quotations are
provided, LIBOR for such interest determination date will be the arithmetic
mean of the rates quoted at approximately 11:00 a.m., New York City time, on
such interest determination date by three major banks (which may include
affiliates of the underwriters) selected by the calculation agent (after
consultation with us) for loans in U.S. dollars to leading European banks
having a three-month maturity commencing on the second London business day
immediately following such interest determination date and in a principal
amount equal to an amount of not less than U.S. $1,000,000 that is
representative for a single transaction in such market at such time; provided, however, that if the banks
selected as aforesaid by the calculation agent are not quoting such rates as
mentioned in this sentence, LIBOR for such interest determination date will be
LIBOR determined with respect to the immediately preceding interest
determination date.

 

All percentages resulting
from any calculation of any interest rate for the Notes will be rounded, if
necessary, to the nearest one hundred thousandth of a percentage point, with
five one-millionths of a percentage point rounded upward and all dollar amounts
will be rounded to the nearest cent, with one-half cent being rounded upward.

 

Promptly upon such
determination, the calculation agent will notify us and the Trustee (if the calculation
agent is not the Trustee) of the interest rate for the new interest reset
period.  Upon request of a holder of the
Notes, the calculation agent will provide to such holder the interest rate in
effect on the date of such request and, if determined, the interest rate for
the next interest reset period.

 

All calculations made by the
calculation agent for the purposes of calculating interest on the Notes shall
be conclusive and binding on the holders and the Company, absent manifest
error.

 

2.  METHOD OF
PAYMENT.  The Company will pay
interest on the Notes (except defaulted interest) to the Persons who are
registered Holders of Notes at the close of business on the March 1,
June 1, September 1 and December 1 immediately preceding the
Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in
Section 2.12 of the Indenture with respect to defaulted interest.  The Notes will be payable as to principal,
premium, if any, and interest at the office or agency of the Company maintained
for such purpose within or without the City and State of New York, or, at the
option of the Company, payment of interest may be made by check mailed to the
Holders at their addresses set forth in the register of Holders, and provided that payment by wire transfer of
immediately available funds will be required with respect to principal of and
interest, and premium, if any, on, all Global Notes and all other Notes the
Holders of which shall have provided wire transfer instructions to the Company
or the Paying Agent.  Such payment shall
be in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  The Company reserves the right to pay
interest to Holders of

 

A-3

 

Notes by check mailed to such Holders at their registered addresses or
by wire transfer to Holders of at least $5 million aggregate principal amount
of Notes.

 

3.  PAYING
AGENT AND REGISTRAR. 
Initially, US Bank Trust National Association, the Trustee under the
Indenture, will act as Paying Agent and Registrar.  The Company may change any Paying Agent or
Registrar without notice to any Holder. 
The Company or any of its Subsidiaries may act in any such capacity.

 

4.  INDENTURE.  The Company issued the Notes under an
Indenture dated as of February 5, 2001, as amended and supplemented,
including as supplemented by a Supplemental Indenture dated as of
December 14, 2005 (collectively, the “Indenture”)
between the Company and the Trustee.  The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939, as amended (15
U.S. Code §§ 77aaa-77bbbb).  The
Notes are subject to all such terms, and Holders are referred to the Indenture
and such Act for a statement of such terms. 
To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and
be controlling.  The Notes are
obligations of the Company.  The Company
is issuing $225.0 million in aggregate principal amount on the Issue Date
and may issue Additional Notes in accordance with the terms of the Indenture.

 

5.  DENOMINATIONS,
TRANSFER, EXCHANGE.  The Notes
are in registered form without coupons in denominations of $1,000 and integral
multiples of $1,000.  The transfer of
Notes may be registered and Notes may be exchanged as provided in the
Indenture.  The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Company and the Trustee may require a Holder to
pay any taxes and fees required by law or permitted by the Indenture.  Also, the Company need not exchange or
register the transfer of any Notes during the period between a record date and
the corresponding Interest Payment Date.

 

6.  PERSONS
DEEMED OWNERS.  The registered
Holder of a Note may be treated as its owner for all purposes.

 

7.  AMENDMENT,
SUPPLEMENT AND WAIVER. 
Subject to certain exceptions, the Indenture or the Notes may be amended
or supplemented with the written consent of the Holders of at least a majority
in principal amount of the then outstanding Notes voting as a single class, and
any existing default or compliance with any provision of the Indenture or the
Notes may be waived with the written consent of the Holders of a majority in
principal amount of the then outstanding Notes voting as a single class.  Without the consent of any Holder of a Note,
the Indenture or the Notes may be amended or supplemented to cure any
ambiguity, defect or inconsistency, to provide for uncertificated Notes in
addition to or in place of certificated Notes, to provide for the assumption of
the Company’s obligations to Holders of the Notes in case of a merger or
consolidation, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect in any
material respects the rights under the Indenture of any such Holder, to comply
with the requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the Trust Indenture Act or to evidence and
provide for the acceptance of appointment under the Indenture of a successor
Trustee.

 

8.  DEFAULTS
AND REMEDIES.  Events of
Default are set forth in the Indenture. 
If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable. 
Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency, all outstanding Notes
will become due and payable without further action or notice.  Holders may not enforce the Indenture or the
Notes except as provided in the Indenture. 
Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding Notes may direct the Trustee in writing in its

 

A-4

 

exercise of any trust or power. 
The Trustee may withhold from Holders of the Notes notice of any
continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest) if it determines that
withholding notice is in their interest. 
The Holders of a majority in aggregate principal amount of the Notes
then outstanding by written notice to the Trustee may on behalf of the Holders
of all of the Notes waive any existing Default or Event of Default and its
consequences under the Indenture except a continuing Default or Event of
Default in the payment of interest on, or the principal of, the Notes.  The Company is required to deliver to the
Trustee annually a statement regarding compliance with the Indenture, and the
Company is required upon becoming aware of any Default or Event of Default, to
deliver to the Trustee a statement specifying such Default or Event of Default.

 

9.  TRUSTEE
DEALINGS WITH COMPANY.  The
Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may
otherwise deal with the Company or its Affiliates, as if it were not the
Trustee.

 

10.  NO
RECOURSE AGAINST OTHERS.  A
director, officer, employee, incorporator or stockholder, of the Company, as
such, shall not have any liability for any obligations of the Company under the
Notes or the Indenture or for any claim based on, in respect of, or by reason
of, such obligations or their creation. 
Each Holder by accepting a Note waives and releases all such
liability.  The waiver and release are
part of the consideration for the issuance of the Notes.

 

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

 

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

 

13.  CUSIP
NUMBERS.  Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the
Notes.  No representation is made as to
the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers placed thereon.

 

A-5

 

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

 

iStar Financial Inc.

1114 Avenue of the Americas, 27th Floor

New York, NY  10036

Attention:  Investor Relations

 

A-6

 

ASSIGNMENT FORM

 

To assign this Note, fill in
the form below:

 

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

  	
   

  
	
   

  	
  (Insert assignee’s legal
  name)

  
	
   

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

  
	
   

  
	
   

  
	
   

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

  
	
  and irrevocably appoint

  	
   

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

  
	
  Date: 

  	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the face 

  
	
   

  	
  of this Note)

  
	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  	
   

  
									

 

*              Participant in a
recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

A-7

 

SCHEDULE OF EXCHANGES OF
INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of a
part of this Global Note for an interest in another Global Note or for a
Definitive Note, or exchanges of a part of another Global Note or Definitive
Note for an interest in this Global Note, have been made:  

 

	
  Date of Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount 

  of this Global Note

  	
   

  	
  Amount of

  increase in

  Principal Amount 

  of this Global Note

  	
   

  	
  Principal Amount of this Global Note following such decrease

  (or increase)

  	
   

  	
  Signature of authorized officer of Trustee or Note Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-8Exhibit
10.48

 

2006

AMPHENOL MANAGEMENT INCENTIVE
PLAN

 

	
  I.

  	
  Purpose

  	
   

  
	
   

  	
  The purpose of the plan
  is to reward eligible key employees of Amphenol Corporation and affiliated
  operations with cash bonus payments based on contributions to overall results
  and specific accomplishments.

  
	
   

  	
   

  	
   

  
	
  II.

  	
  Eligibility

  	
   

  
	
   

  	
  Select management
  personnel, as designated by the Chairman, President and CEO. Generally,
  participation includes senior management positions, corporate staff managers,
  general managers and their designated direct reports.

  
	
   

  	
   

  	
   

  
	
  III.

  	
  Plan Components

  	
   

  
	
   

  	
  There are several key
  performance factors that are considered by executive management and the
  Compensation Committee. These include, but are not limited to, the following:

  
				

 

•Year-over-year improvement

•Accomplishments
against budget

•Customer
satisfaction

•Quality
management

•New market/new
product positioning

•Cost
reductions/productivity improvements

•Balance sheet
management

•Unit and Group contribution
to total Amphenol performance

•Overall
Amphenol performance

 

Financial performance for
each unit is measured by revenues, operating income, cash flow and ROI.  Financial performance for total Group and
Amphenol includes these same factors and EPS growth.

 

IV.           Administration

•Payments are
made during the first 90 calendar days following the plan year.  All payments are subject to the
recommendation of the Chairman, President and CEO and the approval of the
Compensation Committee.

 

•Payments are
based upon average base salary during the plan year (new hires will be prorated
accordingly if hired after February 1st of the plan year).

 

•The maximum allowable payout under the plan
is 2x the target bonus as applied to average base salary.

 

•To be eligible
for the bonus payment, a participant must be an active employee on the payroll
at the time when the bonus payment is issued. 
Exceptions must be recommended by the Chairman, President and CEO and be
approved by the Compensation Committee.

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