Document:

EX-10.7

 

Exhibit 10.7

AGREEMENT OF LIMITED PARTNERSHIP

OF

CPA:17 LIMITED PARTNERSHIP

     THIS AGREEMENT OF LIMITED PARTNERSHIP OF CPA:17 LIMITED PARTNERSHIP, a Delaware limited
partnership (the “Partnership”), dated as of                     , 2007 (the “Effective Date”), is
entered into by and among Corporate Property Associates 17 — Global Incorporated, a Maryland
corporation holding both general partner and limited partner interests in the Partnership (the
“General Partner”), and Carey Holdings LLC, a Delaware limited liability company holding a
special general partner interest in the Partnership (the “Special General Partner”),
together with any other Persons who become Partners in the Partnership as provided herein.

     WHEREAS, the Partnership was formed when a Certificate of Limited Partnership was filed and
accepted by the Secretary of State of the State of Delaware; and

     WHEREAS, the General Partner proposes to effect an initial offering of its common stock and to
contribute the net proceeds of the offering to the Partnership to cause the Partnership to fund (i)
certain acquisitions and investments, (ii) working capital requirements, (iii) redemptions of
interests in the Partnership, and (iv) repayment of indebtedness incurred under various financing
instruments.

     NOW, THEREFORE, BE IT RESOLVED, that for good and adequate consideration, the receipt of which
is hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1.

DEFINED TERMS

Section 1.1 Definitions.

     The following definitions shall be for all purposes, unless otherwise clearly indicated to the
contrary, applied to the terms used in this Agreement.

     “Act” means the Delaware Revised Uniform Limited Partnership Act (6 Del. C. § 17-101
et seq.), as it may be amended from time to time, and any successor to such statute.

     “Additional Funds” shall have the meaning set forth in Section 4.3.A.

     “Additional Limited Partner” means a Person admitted to the Partnership as a Limited
Partner pursuant to Section 12.2 and who is shown as such on the books and records of the
Partnership.

     “Adjusted Capital Account Deficit” means, with respect to any Partner, the deficit
balance, if any, in such Partner’s Capital Account as of the end of the relevant fiscal year, after
giving effect to the following adjustments:

	 	(i)	 	such deficit shall be decreased by any amounts which such
Partner is obligated to restore pursuant to this Agreement
or is deemed to be obligated to restore pursuant to
Regulations Section 1.704-1(b)(2)(ii)(c) or the
penultimate sentence of each of Regulations Sections
1.704-2(i)(5) and 1.704-2(g)(1); and
	 
	 	(ii)	 	such deficit shall be increased by the items described in
Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

     The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the
provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently
therewith. A positive balance in a Partner’s Capital Account, after giving effect to the
adjustments described above in clauses (i) and (ii), is referred to in this Agreement as an
“Adjusted Capital Account Balance.”

     “Adjustment Date” means, with respect to any Capital Contribution, the close of
business on the Business Day last preceding the date of the Capital Contribution, provided,
that if such Capital

 

 

Contribution is being made by the General Partner in respect of the
proceeds from the issuance of REIT Shares (or the issuance of the General Partner’s securities
exercisable for, convertible into or exchangeable for REIT Shares), then the Adjustment Date shall
be as of the close of business on the Business Day last preceding the date of the issuance of such
securities.

     “Advisor” means Carey Asset Management Corp., a Delaware corporation.

     “Advisory Agreement” means that certain Advisory Agreement between the Advisor and the
General Partner entered into contemporaneously with this Agreement.

     “Affiliate” means, with respect to any Person, any Person directly or indirectly
controlling, controlled by or under common control with such Person. Control of any Person means
the power to direct the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise, and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

     “Agreed Value” means (i) in the case of any Contributed Property set forth in Exhibit
A and as of the time of its contribution to the Partnership, the Agreed Value of such property as
set forth in Exhibit A; (ii) in the case of any Contributed Property not set forth in Exhibit A and
as of the time of its contribution to the Partnership, the fair market value of such property or
other consideration as determined by the General Partner, reduced by any liabilities either assumed
by the Partnership upon such contribution or to which such property is subject when contributed;
and (iii) in the case of any property distributed to a Partner by the Partnership, the fair market
value of such property as determined by the General Partner at the time such property is
distributed, reduced by any liabilities either assumed by such Partner upon such distribution or to
which such property is subject at the time of the distribution as determined under Section 752 of
the Code and the Regulations thereunder.

     “Agreement” means this Agreement of Limited Partnership, as it may be amended,
modified, supplemented or restated from time to time.

     “Appraisal” means with respect to any assets, the opinion of an independent third
party experienced in the valuation of similar assets, selected by the General Partner and the
Special General Partner in good faith; such opinion may be in the form of an opinion by such
independent third party that the value for such property or asset as set by the General Partner is
fair, from a financial point of view, to the Partnership.

     “Assignee” means a Person to whom one or more OP Units have been transferred in a
manner permitted under this Agreement, but who has not become a Substituted Limited Partner, and
who has the rights set forth in Section 11.5.

     “Available Cash” means, with respect to any period for which such calculation is being
made, the operating cash flow of the Partnership as determined in the reasonable discretion of the
General Partner in accordance with United States generally accepted accounting principles, taking
into account all cash available for distribution from all sources, and to the extent appropriate,
the operating cash flow of any entity in which the Partnership owns an interest multiplied by the
percentage ownership of such entity by the Partnership.

     “Available Cash from Long-Term Net Leased Properties” means that portion of Available
Cash attributable to long-term, net leased properties, as determined by the General Partner in its
reasonable discretion.

     “Available Cash from Real Estate Related Loans” means that portion of Available Cash
attributable to the Partnership’s investments in B notes, mortgage backed securities and real
estate related loans, as determined by the General Partner in its reasonable discretion.

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     “Available Cash from Real Estate Securities” means that portion of Available Cash
attributable to the Partnership’s investments in readily marketable real estate securities (other
than investments in B notes, mortgage backed securities and real estate related loans), as
determined by the General Partner in its reasonable discretion.

     “Available Residual Cash” means Available Cash, other than (i) Available Cash from
Long-Term Net Leased Properties, (ii) Available Cash from Real Estate Related Loans, and (iii)
Available Cash from Real Estate Securities.

     “Business Day” means any day except a Saturday, Sunday or other day on which
commercial banks in New York, New York are authorized or required by law to be closed.

     “Capital Account” means, with respect to any Partner, the Capital Account maintained
for such Partner in accordance with the following provisions:

     (a) To each Partner’s Capital Account there shall be added such Partner’s Capital
Contributions, such Partner’s share of Net Income and any items in the nature of income or gain
which are specially allocated pursuant to Section 6.3, and the amount of any Partnership
liabilities assumed by such Partner or which are secured by any property distributed to such
Partner.

     (b) From each Partner’s Capital Account there shall be subtracted the amount of cash and the
Gross Asset Value of any property distributed to such Partner pursuant to any provision of this
Agreement, such Partner’s distributive share of Net Loss and any items in the nature of expenses or
losses which are specially allocated pursuant to Section 6.3, and the amount of any
liabilities of such Partner assumed by the Partnership or which are secured by any property
contributed by such Partner to the Partnership (except to the extent already reflected in the
amount of such Partner’s Capital Contribution).

     (c) In the event any interest in the Partnership is transferred in accordance with the terms
of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the
extent it relates to the transferred interest.

     (d) In determining the amount of any liability for purposes of subsections (a) and (b) hereof,
there shall be taken into account Code Section 752(c) and any other applicable provisions of the
Code and Regulations.

     (e) The foregoing provisions and the other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Regulations Sections 1.704-1(b) and
1.704-2, and shall be interpreted and applied in a manner consistent with such Regulations. In the
event the General Partner shall determine that it is prudent to modify the manner in which the
Capital Accounts, or any debits or credits thereto (including, without limitation, debits or
credits relating to liabilities which are secured by contributed or distributed property or which
are assumed by the Partnership, the General Partner, or the Limited Partners) are computed in order
to comply with such Regulations, the General Partner may make such modification, provided
that it is not likely to have a material effect on the amounts distributable to any Person
pursuant to Article 13 of this Agreement upon the dissolution of the Partnership. The
General Partner also shall (i) make any adjustments that are necessary or appropriate to maintain
equality between the Capital Accounts of the Partners and the amount of Partnership capital
reflected on the Partnership’s balance sheet, as computed for book purposes, in accordance with
Regulations Section 1.704-1(b)(2)(iv)(q), and (ii) make any appropriate modifications in the event
unanticipated events might otherwise cause this Agreement not to comply with Regulations Section
1.704-1(b) or Section 1.704-2.

     “Capital Contribution” means, with respect to any Partner, the amount of money and the
initial Gross Asset Value of any property (other than money) contributed to the Partnership by such
Partner (net of any liabilities assumed by the Partnership relating to such property and any
liability to which such property is subject).

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     “Capital Proceeds” means the gross receipts received by the Partnership from a Capital
Transaction, less any expenses related to the Capital Transaction.

     “Capital Transaction” means any transaction outside the ordinary course of the
Partnership’s business involving the sale, exchange, other disposition, or refinancing of any
Partnership asset.

     “Cash Amount” means, with respect to any OP Units subject to a Redemption, an amount
of cash equal to the Deemed Partnership Interest Value attributable to such OP Units.

     “Certificate” means the Certificate of Limited Partnership relating to the Partnership
filed in the office of the Secretary of the State of the State of Delaware, as amended from time to
time in accordance with the terms hereof and the Act.

     “Change of Control” shall be deemed to have occurred at such time as (i) the date a
“person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act) becomes
the ultimate “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except
that a person or group shall be deemed to have beneficial ownership of all shares of voting stock
that such person or group has the right to acquire regardless of when such right is first
exercisable), directly or indirectly, of voting stock representing more than 50% of the total
voting power of the total voting stock of the General Partner; (ii) the date the General Partner
sells, transfers or otherwise disposes of all or substantially all of its assets; or (iii) the date
of the consummation of a merger or share exchange of the General Partner with another entity where
the General Partner’s stockholders immediately prior to the merger or share exchange would not
beneficially own, immediately after the merger or share exchange, shares representing 50% or more
of all votes (without consideration of the rights of any class of stock to elect directors by a
separate group vote) to which all stockholders of the corporation issuing cash or securities in the
merger or share exchange would be entitled in the election of directors, or where members of the
board of directors of the General Partner immediately prior to the merger or share exchange would
not immediately after the merger or share exchange constitute a majority of the board of directors
of the corporation issuing cash or securities in the merger or share exchange.

     “Charter” means the Articles of Incorporation of the General Partner filed with the
State Department of Assessments and Taxation of Maryland on February 9, 2007, as amended or
restated from time to time.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time or any
successor statute thereto. Any reference herein to a specific section or sections of the Code shall
be deemed to include a reference to any corresponding provision of future law.

     “Consent” means the consent to, approval of, or vote on a proposed action by a Partner
given in accordance with Article 14.

     “Consent of the Limited Partners” means the Consent of a Majority in Interest of the
Limited Partners, which Consent shall be obtained prior to the taking of any action for which it is
required by this Agreement and may be given or withheld by a Majority in Interest of the Limited
Partners, unless otherwise expressly provided herein, in their sole and absolute discretion.

     “Consent of the Partners” means the Consent of Partners holding Percentage Interests
that in the aggregate are equal to or greater than fifty percent (50%) of the aggregate Percentage
Interests of all Partners, which Consent shall be obtained prior to the taking of any action for
which it is required by this Agreement and may be given or withheld by such Partners, in their sole
and absolute discretion.

     “Constructively Own” means ownership under the constructive ownership rules described
in Exhibit C.

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     “Contributed Property” means each property or other asset, in such form as may be
permitted by the Act, but excluding cash, contributed or deemed contributed to the Partnership.

     “Debt” means, as to any Person, as of any date of determination, (i) all indebtedness
of such Person for borrowed money or for the deferred purchase price of property or services; (ii)
all amounts owed by such Person to banks or other Persons in respect of reimbursement obligations
under letters of credit, surety bonds, guarantees and other similar instruments guaranteeing
payment or other performance of obligations by such Person; (iii) all indebtedness for borrowed
money or for the deferred purchase price of property or services secured by any lien on any
property owned by such Person, to the extent attributable to such Person’s interest in such
property, even though such Person has not assumed or become liable for the payment thereof; and
(iv) lease obligations of such Person which, in accordance with generally accepted accounting
principles, should be capitalized.

     “Deemed Partnership Interest Value” means, as of any date with respect to any class of
Partnership Interests, the Deemed Value of the Partnership Interests of such class multiplied by
the Partner’s relative Percentage Interest of such class.

     “Deemed Value of the Partnership Interests” means, as of any date with respect to any
class or series of Partnership Interests, (i) the total number of OP Units of the General Partner
issued and outstanding as of the close of business on such date multiplied by the Fair Market Value
determined as of such date of a share of common stock of the General Partner which corresponds to
such Partnership Interest, as adjusted (x) pursuant to Section 7.5 (in the event the
General Partner acquires material assets, other than on behalf of the Partnership) and (y) for
stock dividends and distributions, stock splits and subdivisions, reverse stock splits and
combinations, distribution of warrants or options and distributions of evidences of indebtedness or
assets not received by the General Partner pursuant to a pro rata distribution by the Partnership;
(ii) divided by the Percentage Interest of the General Partner on such date;
provided, that if no outstanding shares of capital stock of the General Partner
correspond to a class or series of Partnership Interests, the Deemed Value of the Partnership
Interests with respect to such class or series shall be equal to an amount reasonably determined by
the General Partner.

     “Depreciation” means, for each fiscal year or other period, an amount equal to the
depreciation, amortization or other cost recovery deduction allowable with respect to an asset for
such year or other period, except that if the Gross Asset Value of an asset differs from its
adjusted basis for federal income tax purposes at the beginning of such year or other period,
Depreciation shall be an amount which bears the same ratio to such beginning Gross Asset Value as
the federal income tax depreciation, amortization or other cost recovery deduction for such year or
other period bears to such beginning adjusted tax basis; provided, however, that if
the federal income tax depreciation, amortization or other cost recovery deduction for such year is
zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any
reasonable method selected by the General Partner.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Securities and Exchange Commission promulgated thereunder and any successor
statute thereto.

     “Fair Market Value” means, with respect to any share of capital stock of the General
Partner, (i) if such shares are listed or admitted to trading on any securities exchange or the
Nasdaq National Market, the average of the daily market price for the ten (10) consecutive trading
days immediately preceding the date with respect to which “Fair Market Value” must be determined
hereunder or, if such date is not a Business
Day, the immediately preceding Business Day, using as the market price for each such trading day
the closing price, regular way, on such day, or if no such sale takes place on such day, the
average of the closing bid and asked prices on such day, or (ii) if such shares are not listed or
admitted to trading on any securities exchange or the Nasdaq National Market, the price at which
such shares are then being offered to

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the public pursuant to any public offering of the General
Partner or pursuant to its distribution reinvestment plan (before giving effect to any discounts in
effect and made available to participants in such plan); provided that, if there is
no ongoing public offering or if the General Partner is not then offering its shares pursuant to a
distribution reinvestment plan, the Fair Market Value of such shares shall be determined by the
General Partner acting in good faith on the basis of the most recent, publicly reported net asset
value of the General Partner and other information as it considers, in its reasonable judgment,
appropriate. In the event the REIT Shares Amount for such shares includes rights that a holder of
such shares would be entitled to receive, then the Fair Market Value of such rights shall be
determined by the General Partner acting in good faith on the basis of such quotations and other
information as it considers, in its reasonable judgment, appropriate; and provided,
further that, in connection with determining the Deemed Value of the Partnership
Interests for purposes of determining the number of additional OP Units issuable upon a Capital
Contribution funded by an underwritten public offering of shares of capital stock of the General
Partner, the Fair Market Value of such shares shall be the public offering price per share of such
class of capital stock sold. Notwithstanding the foregoing, the General Partner in its reasonable
discretion may use a different “Fair Market Value” for purposes of making the determinations under
subparagraph (b) of the definition of “Gross Asset Value” and Section 4.3.D in connection
with the contribution of Property or cash to the Partnership by a third party, provided
such value shall be based upon the value per REIT Share (or per OP Unit) agreed upon by the General
Partner and such third party for purposes of such contribution.

     “General Partner Interest” means a Partnership Interest held by the General Partner. A
General Partner Interest may be expressed as a number of OP Units.

     “General Partner Net Current Investment” means the General Partner’s total Capital
Contributions then paid to the Partnership, plus the amount of any Partnership liabilities assumed
by the General Partner (or which are secured by Partnership property distributed to the General
Partner), less (i) the amount of any liabilities of the General Partner assumed by the Partnership
(or which are secured by property contributed by the General Partner to the Partnership), (ii) all
amounts actually distributed to the General Partner pursuant to Section 5.1.B(2), and (iii)
all amounts representing a return of capital to the General Partner, including, but not limited to,
the portion of any redemption proceeds distributed to the General Partner pursuant to Section
11.8 which represents a return of capital to the General Partner.

     “General Partner Priority Return” means an amount equal to six percent (6%) per annum
of the Weighted Average General Partner Net Current Investment, payable to the General Partner
annually on a cumulative basis.

     “General Partner Unpaid Priority Return” means the excess, if any, of the General
Partner Priority Return over all amounts previously paid to the General Partner under Section
5.1.A, or paid in respect of the General Partner Priority Return under Section 5.1.B(1)
as of the time in question.

     “Gross Asset Value” means, with respect to any asset, the asset’s adjusted basis for
federal income tax purposes, except as follows:

     (a) The initial Gross Asset Value of any asset contributed by a Partner to the Partnership
shall be the gross fair market value of such asset, as determined by the contributing Partner and
the General Partner (as set forth on Exhibit A attached hereto, as such Exhibit may be amended from
time to time); provided, that if the contributing Partner is the General Partner,
then, except with respect to the General Partner’s initial Capital Contribution which shall be
determined as set forth on Exhibit A, the determination of the fair market value of the contributed
asset shall be determined (i) by the price paid by the General Partner if the asset is acquired by
the General Partner contemporaneously with its contribution to the Partnership, (ii) by Appraisal,
if otherwise acquired by the General Partner, (iii) by the amount of cash if the asset is cash, and
(iv) as reasonably determined by the General Partner if the asset is REIT Shares or other shares of
capital stock of the General Partner.

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     (b) The Gross Asset Values of all Partnership assets shall be adjusted to equal their
respective gross fair market values, as determined by the General Partner using such reasonable
method of valuation as it may adopt, provided, however, that for such purpose, the
net value of all of the Partnership assets, in the aggregate, shall be equal to the Deemed Value of
the Partnership Interests of all classes of Partnership Interests then outstanding, regardless of
the method of valuation adopted by the General Partner, immediately prior to the times listed
below:

	 	(i)	 	the acquisition of an additional interest in the
Partnership by a new or existing Partner in
exchange for more than a de minimis Capital
Contribution, if the General Partner reasonably
determines that such adjustment is necessary or
appropriate to reflect the relative economic
interests of the Partners in the Partnership;
	 
	 	(ii)	 	the distribution by the Partnership to a Partner
of more than a de minimis amount of Partnership
property as consideration for an interest in the
Partnership if the General Partner reasonably
determines that such adjustment is necessary or
appropriate to reflect the relative economic
interests of the Partners in the Partnership;
	 
	 	(iii)	 	the liquidation of the
Partnership within the meaning of
Regulations Section
1.704-1(b)(2)(ii)(g);
	 
	 	(iv)	 	at such other times as the
General Partner shall reasonably
determine necessary or advisable
in order to comply with
Regulations Sections 1.704-1(b)
and 1.704-2; and
	 
	 	(v)	 	in connection with the grant of
an interest in the Partnership
(other than a de minimis
interest) as consideration for
the provision of services to or
for the benefit of the
Partnership by an existing
Partner acting in a partner
capacity or by a new Partner
acting in a partner capacity or
in anticipation of becoming a
Partner.

     (c) The Gross Asset Value of any Partnership asset distributed to a Partner shall be the gross
fair
market value of such asset on the date of distribution as determined by the distributee and the
General Partner, or if the distributee and the General Partner cannot agree on such a
determination, by Appraisal.

     (d) The Gross Asset Values of Partnership assets shall be increased (or decreased) to reflect
any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code
Section 743(b), but only to the extent that such adjustments are taken into account in determining
Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m); provided,
however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph (d) to
the extent that the General Partner reasonably determines that an adjustment pursuant to
subparagraph (b) is necessary or appropriate in connection with a transaction that would otherwise
result in an adjustment pursuant to this subparagraph (d).

     (e) If the Gross Asset Value of a Partnership asset has been determined or adjusted pursuant
to subparagraph (a), (b) or (d), such Gross Asset Value shall thereafter be adjusted by the
Depreciation taken into account with respect to such asset for purposes of computing Net Income and
Net Loss.

     “Immediate Family” means, with respect to any natural Person, such natural Person’s
estate or heirs or current spouse or former spouse, parents, parents-in-law, children (whether
natural, adopted or by marriage), siblings and grandchildren and any trust or estate, all of the
beneficiaries of which consist of such Person or such Person’s spouse or former spouse, parents,
parents-in-law, children, siblings or grandchildren.

     “Incapacity” or “Incapacitated” means, (i) as to any individual Partner,
death, total physical disability or entry by a court of competent jurisdiction adjudicating him or
her incompetent to manage his or her Person or his or her estate; (ii) as to any corporation which
is a Partner, the filing of a certificate of dissolution, or its equivalent, for the corporation or
the revocation of its charter; (iii) as to any partnership

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which is a Partner, the dissolution and
commencement of winding up of the partnership; (iv) as to any estate which is a Partner, the
distribution by the fiduciary of the estate’s entire interest in the Partnership; (v) as to any
trustee of a trust which is a Partner, the termination of the trust (but not the substitution of a
new trustee); or (vi) as to any Partner, the bankruptcy of such Partner. For purposes of this
definition, bankruptcy of a Partner shall be deemed to have occurred when (a) the Partner commences
a voluntary proceeding seeking liquidation, reorganization or other relief under any bankruptcy,
insolvency or other similar law now or hereafter in effect, (b) the Partner is adjudged as bankrupt
or insolvent, or a final and nonappealable order for relief under any bankruptcy, insolvency or
similar law now or hereafter in effect has been entered against the Partner, (c) the Partner
executes and delivers a general assignment for the benefit of the Partner’s creditors, (d) the
Partner files an answer or other pleading admitting or failing to contest the material allegations
of a petition filed against the Partner in any proceeding of the nature described in clause (b)
above, (e) the Partner seeks, consents to or acquiesces in the appointment of a trustee, receiver
or liquidator for the Partner or for all or any substantial part of the Partner’s properties, (f)
any proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency
or other similar law now or hereafter in effect has not been dismissed within 120 days after the
commencement thereof, (g) the appointment without the Partner’s consent or acquiescence of a
trustee, receiver or liquidator has not been vacated or stayed within 90 days of such appointment,
or (h) an appointment referred to in clause (g) is not vacated within 90 days after the expiration
of any such stay.

     “Indemnitee” means (i) any Person subject to a claim or demand or made or threatened
to be made a party to, or involved or threatened to be involved in, an action, suit or proceeding
by reason of his or her status as (A) the General Partner or (B) a director, officer or employee of
the Partnership or the General Partner, and (ii) such other Persons (including Affiliates of the
General Partner or the Partnership) as the General Partner may designate from time to time (whether
before or after the event giving rise to potential liability), in its sole and absolute discretion.

     “Investments” means investments made by the Partnership, directly or indirectly, in a
Property, Loan or Other Permitted Investment Asset.

     “IRS” means the United States Internal Revenue Service.

     “Limited Partner” means any Person named as a Limited Partner in Exhibit A attached
hereto, as such Exhibit may be amended from time to time, or any Substituted Limited Partner or
Additional Limited Partner, in such Person’s capacity as a Limited Partner in the Partnership.

     “Limited Partner Interest” means a Partnership Interest of a Limited Partner
representing a fractional part of the Partnership Interests of all Limited Partners and includes
any and all benefits to which the holder of such a Partnership Interest may be entitled as provided
in this Agreement, together with all obligations of such Person to comply with the terms and
provisions of this Agreement. A Limited Partner Interest may be expressed as a number of OP Units.

     “Liquidating Event” shall have the meaning set forth in Section 13.1.

     “Loans” means notes and other evidences of indebtedness or obligations acquired,
originated or entered into, directly or indirectly, by the Partnership as lender, noteholder,
participant, note purchaser or other capacity, including but not limited to first or subordinate
mortgage loans, construction loans, development loans, loan participations, B notes, loans secured
by capital stock or any other assets or form of equity interest and any other type of loan or
financial arrangement, such as providing or arranging for letters of credit, providing guarantees
of obligations to third parties, or providing commitments for loans. Loans shall not include
leases which are not recognized as leases for federal income tax reporting purposes.

     “Liquidator” shall have the meaning set forth in Section 13.2.A.

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     “Majority in Interest of the Limited Partners” means Limited Partners holding in the
aggregate Percentage Interests that are greater than fifty percent (50%) of the aggregate
Percentage Interests of all Limited Partners.

     “Net Income” or “Net Loss” means for each fiscal year of the Partnership, an
amount equal to the Partnership’s taxable income or loss for such fiscal year, determined in
accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, or
deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in
taxable income or loss), with the following adjustments:

     (a) Any income of the Partnership that is exempt from federal income tax and not otherwise
taken into account in computing Net Income or Net Loss pursuant to this definition of Net Income or
Net Loss shall be added to such taxable income or loss;

     (b) Any expenditures of the Partnership described in Code Section 705(a)(2)(B) or treated as
Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and
not otherwise taken into account in computing Net Income or Net Loss pursuant to this definition of
Net Income or Net Loss shall be subtracted from such taxable income or loss;

     (c) In the event the Gross Asset Value of any Partnership asset is adjusted pursuant to
subparagraph (b) or subparagraph (c) of the definition of Gross Asset Value, the amount of such
adjustment shall be taken into account as gain or loss from the disposition of such asset for
purposes of computing Net Income or Net Loss;

     (d) Gain or loss resulting from any disposition of property with respect to which gain or loss
is recognized for federal income tax purposes shall be computed by reference to the Gross Asset
Value of the property disposed of, notwithstanding that the adjusted tax basis of such property
differs from its Gross Asset Value;

     (e) In lieu of the depreciation, amortization, and other cost recovery deductions taken into
account in computing such taxable income or loss, there shall be taken into account Depreciation
for such fiscal year;

     (f) To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to
Code Section 734(b) or Code Section 743(b) is required pursuant to Regulations Section
1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a
distribution other than in liquidation of a Partner’s interest in the Partnership, the amount of
such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the
asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the
asset and shall be taken into account for purposes of computing Net Income or Net Loss; and

     (g) Notwithstanding any other provision of this definition of Net Income or Net Loss, any
items which are specially allocated pursuant to Section 6.3 shall not be taken into account
in computing Net Income or Net Loss. The amounts of the items of Partnership income, gain, loss, or
deduction available to be specially allocated pursuant to Section 6.3 shall be determined
by applying rules analogous to those set forth in this definition of Net Income or Net Loss.

     “Net Income from a Capital Transaction” means that portion of Net Income attributable
to a Capital Transaction.

     “Net Income from Long-Term Net Leased Properties” means that portion of Net Income
attributable to long-term, net leased properties, as determined by the General Partner in its
reasonable discretion.

     “Net Income from Real Estate Related Loans” means that portion of Net Income
attributable to the Partnership’s investments in B notes, mortgage backed securities and real
estate related loans, as determined by the General Partner in its reasonable discretion.

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     “Net Income from Real Estate Securities” means that portion of Net Income attributable
to the Partnership’s investments in readily marketable real estate securities (other than B notes,
mortgage backed securities and real estate related loans), as determined by the General Partner in
its reasonable discretion.

     “Net Loss from a Capital Transaction” means that portion of Net Loss attributable to a
Capital Transaction.

     “Net Residual Income” means Net Income, other than (i) Net Income from Long-Term Net
Leased Properties, (ii) Net Income from Real Estate Related Loans, and (iii) Net Income from Real
Estate Securities.

     “New Securities” means (i) any rights, options, warrants or convertible or
exchangeable securities having the right to subscribe for or purchase REIT Shares or other shares
of common stock of the General Partner, or (ii) any Debt issued by the General Partner that
provides any of the rights described in clause (i).

     “Nonrecourse Deductions” shall have the meaning set forth in Regulations Section
1.704-2(b)(1), and the amount of Nonrecourse Deductions for a Partnership Year shall be determined
in accordance with the rules of Regulations Section 1.704-2(c).

     “Nonrecourse Liability” shall have the meaning set forth in Regulations Section
1.752-1(a)(2).

     “Notice of Redemption” means the Notice of Redemption substantially in the form of
Exhibit B to this Agreement.

     “OP Unit” means a fractional share of the Partnership Interests of all Partners issued
pursuant to Article 4.

     “Other Permitted Investment Asset” means assets, other than cash, cash equivalents,
short term bonds, auction rate securities and similar short term investments, acquired by the
Partnership for investment purposes that is not a Loan or a Property and is consistent with the
investment objectives and policies of the Partnership.

     “Partner” means a General Partner, a Special General Partner, or a Limited Partner,
and “Partners” means the General Partner, the Special General Partner and the Limited
Partners.

     “Partner Minimum Gain” means an amount, with respect to each Partner Nonrecourse Debt,
equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were
treated as a Nonrecourse Liability, determined in accordance with Regulations Section
1.704-2(i)(3).

     “Partner Nonrecourse Debt” shall have the meaning set forth in Regulations Section
1.704-2(b)(4).

     “Partner Nonrecourse Deductions” shall have the meaning set forth in Regulations
Section 1.704-2(i)(2), and the amount of Partner Nonrecourse Deductions with respect to a Partner
Nonrecourse Debt for a Partnership Year shall be determined in accordance with the rules of
Regulations Section 1.704-2(i)(2).

     “Partnership” means the limited partnership formed under the Act and pursuant to this
Agreement, and any successor thereto.

     “Partnership Interest” means, an ownership interest in the Partnership of either a
Limited Partner, the Special General Partner, or the General Partner and includes any and all
benefits to which the holder of

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such a Partnership Interest may be entitled as provided in this
Agreement, together with all obligations of such Person to comply with the terms and provisions of
this Agreement. There may be one or more classes or series of Partnership Interests as provided in
Section 4.3. Except as otherwise provided for in this Agreement, a Partnership Interest may
be expressed as a number of OP Units. Unless otherwise expressly provided for in this Agreement or
by the General Partner at the time of the original issuance of any Partnership Interests, all
Partnership Interests (whether of a Limited Partner, a Special General Partner or a General
Partner) shall be of the same class or series.

     “Partnership Minimum Gain” shall have the meaning set forth in Regulations Section
1.704-2(b)(2), and the amount of Partnership Minimum Gain, as well as any net increase or decrease
in Partnership Minimum Gain, for a Partnership Year shall be determined in accordance with the
rules of Regulations Section 1.704-2(d).

     “Partnership Record Date” means the record date established by the General Partner for
the distribution of Available Cash pursuant to Section 5.1 which record date shall be the
same as the record date established by the General Partner for a distribution to its stockholders
of some or all of its portion of such distribution.

     “Partnership Year” means the fiscal year of the Partnership, which shall be the
calendar year.

     “Percentage Interest” means, as to a Partner holding a class or series of Partnership
Interests, its interest as determined, as of the first day of each Partnership Year, by dividing
such Partner’s Adjusted Capital Account Balance by aggregate Adjusted Capital Account Balances of
all Partners. For purposes of the preceding sentence, the Adjusted Capital Account Balances of the
Partners shall be determined after giving effect to all allocations of Net Income and Net Loss for
all preceding Partnership Years, including allocations of Net Income and Net Loss resulting from
adjustments to the Gross Asset Value of the Partnership’s assets pursuant to the definition of
Gross Asset Value.

     “Person” means an individual, corporation, partnership, limited liability company,
trust, unincorporated organization, association or other entity.

     “Plan Asset Regulation” means the regulations promulgated by the United States
Department of Labor in Title 29, Code of Federal Regulations, Part 2510, Section 101.3, and any
successor regulations thereto.

     “Pledge” shall have the meaning set forth in Section 11.3.A.

     “Property” or “Properties” means a partial or entire interest in real property
(including leasehold interests) and personal or mixed property connected therewith. An Investment
which obligates the Partnership to acquire a Property will be treated as a Property for purposes of
this Agreement.

     “Qualifying Party” means (a) an Additional Limited Partner; (b) a Family Member, or a
lending institution as the pledgee of a Pledge, who is the transferee in a Permitted Transfer; or
(c) a Substituted Limited Partner succeeding to all or part of the Limited Partner Interest of (i)
an Additional Limited Partner or (ii) a Family Member, or a lending institution who is the pledgee
of a Pledge, who is the transferee in a Permitted Transfer.

     “Qualified REIT Subsidiary” means any Subsidiary of the General Partner that is a
“qualified REIT subsidiary” within the meaning of Section 856(i) of the Code.

     “Qualified Transferee” means an “Accredited Investor” as such term is defined in Rule
501 promulgated under the Securities Act.

     “Redemption” shall have the meaning set forth in Section 8.6.A.

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     “Regulations” means the Treasury Regulations promulgated under the Code, as such
regulations may be amended from time to time (including corresponding provisions of succeeding
regulations).

     “Regulatory Allocations” shall have the meaning set forth in Section 6.3.

     “REIT” means a real estate investment trust, as defined under Sections 856 through 860
of the Code.

     “REIT Requirements” shall have the meaning set forth in Section 5.1.

     “REIT Share” means a share of common stock, par value $0.001 per share, of the General
Partner.

     “REIT Shares Amount” means, as of any date, an aggregate number of REIT Shares equal
to the number of Tendered Units, as adjusted (x) pursuant to Section 7.5 (in the event the
General Partner acquires material assets, other than on behalf of the Partnership) and (y) for
stock dividends and distributions, stock splits and subdivisions, reverse stock splits and
combinations, distributions of rights, warrants or options, and distributions of evidences of
indebtedness or assets relating to assets not received by the General Partner pursuant to a
pro rata distribution by the Partnership.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Securities and Exchange Commission promulgated thereunder and any successor
statute thereto.

     “Special General Partner Interest” means a Partnership Interest held by the Special
General Partner. A Special General Partner Interest may be expressed as a number of OP Units, but
only to the extent that the Special General Partner makes Capital Contributions to the Partnership.

     “Specified Redemption Date” means the day of receipt by the General Partner of a
Notice of Redemption.

     “Subsidiary” means, with respect to any Person, any corporation, partnership, limited
liability company, joint venture or other entity of which a majority of (i) the voting power of the
voting equity securities or (ii) the outstanding equity interests is owned, directly or indirectly,
by such Person.

     “Subsidiary Partnership” means any partnership or limited liability company that is a
Subsidiary of the Partnership.

     “Substituted Limited Partner” means a Person who is admitted as a Limited Partner to
the Partnership pursuant to Section 11.4.

     “Tax Items” shall have the meaning set forth in Section 6.4.A.

     “Tenant” means any tenant from which the General Partner derives rent either directly
or indirectly through partnerships, including the Partnership, or Qualified REIT Subsidiaries.

     “Tendered Units” shall have the meaning set forth in Section 8.6.A.

     “Tendering Partner” shall have the meaning set forth in Section 8.6.A.

     “Weighted Average General Partner Net Current Investment” means the annual average
balance of the General Partner Net Current Investment computed on a daily basis.

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ARTICLE 2.

ORGANIZATIONAL MATTERS

Section 2.1 Organization

     The Partnership is a limited partnership formed pursuant to the provisions of the Act and upon
the terms and conditions set forth in this Agreement. Except as expressly provided herein, the
rights and obligations of the Partners and the administration and termination of the Partnership
shall be governed by the Act. The Partnership Interest of each Partner shall be personal property
for all purposes.

Section 2.2 Name

     The name of the Partnership is CPA:17 Limited Partnership. The Partnership’s business may be
conducted under any other name or names deemed advisable by the General Partner, including the name
of the General Partner or any Affiliate thereof. The words “Limited Partnership,” “L.P.,” “Ltd.” or
similar words or letters shall be included in the Partnership’s name where necessary for the
purposes of complying with the laws of any jurisdiction that so requires. The General Partner in
its sole and absolute discretion may change the name of the Partnership at any time and from time
to time and shall notify the Limited Partners of such change in the next regular communication to
the Limited Partners.

Section 2.3 Registered Office and Agent; Principal Office

     The name and address of the registered office and registered agent of the Partnership
                                                            . The principal office of the Partnership is located at 50
Rockefeller Plaza, New York, New York 10020, or such other place as the General Partner may from
time to time designate by notice to the other Partners. The Partnership may maintain offices at
such other place or places within or outside the State of Delaware as the General Partner deems
advisable.

Section 2.4 Power of Attorney

  A. Each Limited Partner and each Assignee constitutes and appoints the General Partner, any
Liquidator, and authorized officers and attorneys-in-fact of each, and each of those acting singly,
in each case with full power of substitution, as its true and lawful agent and attorney-in-fact,
with full power and authority in its name, place and stead to:

           (1) execute, swear to, acknowledge, deliver, file and record in the appropriate public offices
(a) all certificates, documents and other instruments (including, without limitation, this
Agreement and the Certificate and all amendments or restatements thereof) that the General Partner
or the Liquidator deems appropriate or necessary to form, qualify or continue the existence or
qualification of the Partnership as a limited partnership (or a partnership in which the Limited
Partners have limited liability) in the State of Delaware and in all other jurisdictions in which
the Partnership may conduct business or own property; (b) all instruments that the General Partner
or any Liquidator deems appropriate or necessary to reflect any amendment, change, modification or
restatement of this Agreement in accordance with its terms; (c) all conveyances and other
instruments or documents that the General Partner or any Liquidator deems appropriate or necessary
to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this
Agreement, including, without limitation, a certificate of cancellation; (d) all instruments
relating to the admission, withdrawal, removal or substitution of any Partner pursuant to, or other
events described in, Articles 11, 12 or 13 or the Capital Contribution of
any Partner; and (e) all certificates, documents and other instruments relating to the
determination of the rights, preferences and privileges of Partnership Interests; and

           (2) execute, swear to, acknowledge and file all ballots, consents, approvals, waivers,
certificates and other instruments appropriate or necessary, in the sole and absolute discretion of
the General Partner or any Liquidator, to make, evidence, give, confirm or ratify any vote,
consent, approval, agreement or other action which is made or given by the Partners hereunder or is
consistent with the terms of this Agreement

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or appropriate or necessary, in the sole discretion of the General Partner or any Liquidator, to
effectuate the terms or intent of this Agreement. Nothing contained herein shall be construed as
authorizing the General Partner or any Liquidator to amend this Agreement except in accordance with
Article 14 or as may be otherwise expressly provided for in this Agreement.

     B. The foregoing power of attorney is hereby declared to be irrevocable and a power coupled
with an interest, in recognition of the fact that each of the Partners will be relying upon the
power of the General Partner and any Liquidator to act as contemplated by this Agreement in any
filing or other action by it on behalf of the Partnership, and it shall survive and not be affected
by the subsequent Incapacity of any Limited Partner or Assignee and the transfer of all or any
portion of such Limited Partner’s or Assignee’s OP Units and shall extend to such Limited Partner’s
or Assignee’s heirs, successors, assigns and personal representatives. Each such Limited Partner or
Assignee hereby agrees to be bound by any representation made by the General Partner or any
Liquidator, acting in good faith pursuant to such power of attorney; and each such Limited Partner
or Assignee hereby waives any and all defenses which may be available to contest, negate or
disaffirm the action of the General Partner or any Liquidator, taken in good faith under such power
of attorney. Each Limited Partner or Assignee shall execute and deliver to the General Partner or
any Liquidator, within 15 days after receipt of the General Partner’s or Liquidator’s request
therefor, such further designation, powers of attorney and other instruments as the General Partner
or the Liquidator, as the case may be, deems necessary to effectuate this Agreement and the
purposes of the Partnership.

Section 2.5 Term

     The term of the Partnership commenced on the date of its formation and the Partnership shall
have a perpetual existence unless it is dissolved pursuant to the provisions of Article 13
or as otherwise provided by law.

ARTICLE 3.

PURPOSE

Section 3.1 Purpose and Business

     The purpose and nature of the business to be conducted by the Partnership is to (i) conduct
any business that may be lawfully conducted by a limited partnership organized pursuant to the Act,
(ii) enter into any partnership, joint venture or other similar arrangement to engage in any
business described in the foregoing clause (i) or to own interests in any entity engaged, directly
or indirectly, in any such business and (iii) do anything necessary or incidental to the foregoing,
provided, however, that such business shall be limited to and conducted in such a
manner as to permit the General Partner at all times to be classified as a REIT for federal income
tax purposes, unless the General Partner ceases to qualify as a REIT for reasons other than the
conduct of the business of the Partnership. In connection with the foregoing, and without limiting
the General Partner’s right in its sole discretion to cease qualifying as a REIT, the Limited
Partners acknowledge that the General Partner’s current status as a REIT inures to the benefit of
all the Limited Partners and not solely the General Partner.

Section 3.2 Powers

     The Partnership is empowered to do any and all acts and things necessary, appropriate, proper,
advisable, incidental to or convenient for the furtherance and accomplishment of the purposes and
business described herein and for the protection and benefit of the Partnership, including, without
limitation, full power and authority, directly or through its ownership interest in other entities,
to enter into, perform and carry out contracts of any kind, borrow money and issue evidences of
indebtedness, whether or not secured by mortgage, deed of trust, pledge or other lien, acquire,
own, manage, improve and develop real property, and lease, sell, transfer and dispose of real
property; provided, however, notwithstanding anything to the contrary in this
Agreement, the Partnership shall not take, or refrain from taking, any action which, in the
judgment of the General Partner, in its sole and absolute discretion, (i) could adversely affect
the ability of the General Partner to continue to qualify as a REIT, (ii) absent the consent of the
General Partner, which

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may be given or withheld in its sole and absolute discretion, could subject the General Partner to
any taxes under Section 857 or Section 4981 of the Code, or (iii) could violate any law or
regulation of any governmental body or agency having jurisdiction over the General Partner or its
securities, unless any such action (or inaction) under the foregoing clauses (i), (ii) or (iii)
shall have been specifically consented to by the General Partner in writing.

Section 3.3 Partnership Only for Purposes Specified

           The Partnership shall be a partnership only for the purposes specified in Section 3.1,
and this Agreement shall not be deemed to create a partnership among the Partners with respect to
any activities whatsoever other than the activities within the purposes of the Partnership as
specified in Section 3.1. Except as otherwise provided in this Agreement, no Partner shall
have any authority to act for, bind, commit or assume any obligation or responsibility on behalf of
the Partnership, its properties or any other Partner. No Partner, in its capacity as a Partner
under this Agreement, shall be responsible or liable for any indebtedness or obligation of another
Partner, nor shall the Partnership be responsible or liable for any indebtedness or obligation of
any Partner, incurred either before or after the execution and delivery of this Agreement by such
Partner, except as to those responsibilities, liabilities, indebtedness or obligations incurred
pursuant to and as limited by the terms of this Agreement and the Act.

Section 3.4 Representations and Warranties by the Parties

     A. Each Partner that is an individual represents and warrants to each other Partner that (i)
such Partner has the legal capacity to enter into this Agreement and perform such Partner’s
obligations hereunder, (ii) the consummation of the transactions contemplated by this Agreement to
be performed by such Partner will not result in a breach or violation of, or a default under, any
agreement by which such Partner or any of such Partner’s property is or are bound, or any statute,
regulation, order or other law to which such Partner is subject, (iii) such Partner is a “United
States person” within the meaning of Section 7701(a)(30) of the Code, and (iv) this Agreement is
binding upon, and enforceable against, such Partner in accordance with its terms.

     B. Each Partner that is not an individual represents and warrants to each other Partner that
(i) its execution and delivery of this Agreement and all transactions contemplated by this
Agreement to be performed by it have been duly authorized by all necessary action, including
without limitation, that of its general partner(s), committee(s), trustee(s), beneficiaries,
directors and/or stockholder(s), as the case may be, as required, (ii) the consummation of such
transactions shall not result in a breach or violation of, or a default under, its certificate of
limited partnership, partnership agreement, trust agreement, limited liability company operating
agreement, charter or bylaws, as the case may be, any agreement by which such Partner or any of
such Partner’s properties or any of its partners, beneficiaries, trustees or stockholders, as the
case may be, is or are bound, or any statute, regulation, order or other law to which such Partner
or any of such Partner’s properties or any of its partners, trustees, beneficiaries or
stockholders, as the case may be, is or are subject, (iii) such Partner is a “United States person”
within the meaning of Section 7701(a)(30) of the Code and (iv) this Agreement is binding upon, and
enforceable against, such Partner in accordance with its terms.

     C. Each Partner represents, warrants, and agrees that it has acquired and continues to hold
its interest in the Partnership for its own account for investment only and not for the purpose of,
or with a view toward, the resale or distribution of all or any part thereof, nor with a view
toward selling or otherwise distributing such interest or any part thereof at any particular time
or under any predetermined circumstances. Each Partner further represents and warrants that it is a
sophisticated investor, able and accustomed to handling sophisticated financial matters for itself,
particularly real estate investments, and that it has a sufficiently high net worth that it does
not anticipate a need for the funds it has invested in the Partnership in what it understands to be
a highly speculative and illiquid investment. Each Partner represents, warrants and agrees that
such Partner is an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D
under the Securities Act).

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     D. Each Partner acknowledges that (i) the OP Units (and any REIT Shares that might be
exchanged therefor) have not been registered under the Securities Act and may not be transferred
unless they are subsequently registered under the Securities Act or an exemption from such
registration is available (it being understood that the Partnership has no intention of so
registering the OP Units), (ii) a restrictive legend in the form set forth in Exhibit D shall be
placed on the certificates representing the OP Units, and (iii) a notation shall be made in the
appropriate records of the Partnership indicating that the OP Units are subject to restrictions on
transfer.

      E. Each Limited Partner further represents, warrants, covenants and agrees as follows:

           (1) Except as provided in Exhibit E, at any time such Partner actually or Constructively Owns
a 25% or greater capital interest or profits interest in the Partnership, it does not and will not,
without the prior written consent of the General Partner, actually own or Constructively Own (a)
with respect to any Tenant that is a corporation, any stock of such Tenant, and (b) with respect to
any Tenant that is not a corporation, any interests in either the assets or net profits of such
Tenant.

           (2) Except as provided in Exhibit F, at any time such Partner actually or Constructively Owns
a 25% or greater capital interest or profits interest in the Partnership, it does not, and agrees
that it will not without the prior written consent of the General Partner, actually own or
Constructively Own, any stock in the General Partner, other than any REIT Shares or other shares of
capital stock of the General Partner such Partner may acquire as a result of an exchange of
Tendered Units pursuant to Section 8.6, subject to the ownership limitations set forth in
the General Partner’s Charter.

           (3) Upon request of the General Partner, it will disclose to the General Partner the amount of
REIT Shares or other shares of capital stock of the General Partner that it actually owns or
Constructively Owns.

           (4) It understands that if, for any reason, (a) the representations, warranties or agreements
set forth in E(1) or (2) above are violated, or (b) the Partnership’s actual or
Constructive Ownership of REIT Shares or other shares of capital stock of the General Partner
violates the limitations set forth in the Charter, then (x) some or all of the Redemption rights of
the Partners may become non-exercisable, and (y) some or all of the REIT Shares owned by the
Partners may be automatically transferred to a trust for the benefit of a charitable beneficiary,
as provided in the Charter.

           (5) Without the consent of the General Partner, which may be given or withheld in its sole
discretion, no Partner shall take any action that would cause the Partnership at any time to have
more than 100 partners (including as partners those persons indirectly owning an interest in the
Partnership through a partnership, limited liability company, S corporation or grantor trust (such
entity, a “flow through entity”), but only if substantially all of the value of such
person’s interest in the flow through entity is attributable to the flow through entity’s interest
(direct or indirect) in the Partnership).

     F. The representations and warranties contained in Sections 3.4 shall survive the
execution and delivery of this Agreement by each Partner and the dissolution and winding-up of the
Partnership.

     G. Each Partner hereby acknowledges that no representations as to potential profit, cash
flows, funds from operations or yield, if any, in respect of the Partnership or the General Partner
have been made by any Partner or any employee or representative or Affiliate of any Partner, and
that projections and any other information, including, without limitation, financial and
descriptive information and documentation, which may have been in any manner submitted to such
Partner shall not constitute any representation or warranty of any kind or nature, express or
implied.

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Section 3.5 Certain ERISA Matters

           Each Partner acknowledges that the Partnership is intended to qualify as a “real estate
operating company” (as such term is defined in the Plan Asset Regulation). The General Partner may
structure investments in, relationships with and conduct with respect to Investments and any other
assets of the Partnership so that the Partnership will be a “real estate operating company” (as
such term is defined in the Plan Asset Regulation).

ARTICLE 4.

CAPITAL CONTRIBUTIONS

Section 4.1 Capital Contributions of the Partners

           At the time of their respective execution of this Agreement, the Partners shall make or shall
have made Capital Contributions as set forth in Exhibit A to this Agreement. The Partners shall own
OP Units of the class or series and in the amounts set forth in Exhibit A and shall have a
Percentage Interest in the Partnership as set forth in Exhibit A, which Percentage Interest shall
be adjusted in Exhibit A from time to time by the General Partner to the extent necessary to
reflect accurately exchanges, redemptions, Capital Contributions, the issuance of additional OP
Units or similar events having an effect on a Partner’s Percentage Interest. Except as required by
law, as otherwise provided in Sections 4.3, 4.4 and 10.5, or as otherwise
agreed to by a Partner and the Partnership, no Partner shall be required or permitted to make any
additional Capital Contributions or loans to the Partnership.

Section 4.2 Loans by Third Parties

           Subject to Section 4.3, the Partnership may incur Debt, or enter into other similar
credit, guarantee, financing or refinancing arrangements for any purpose (including, without
limitation, in connection with any further acquisition of Investments) with any Person that is not
the General Partner upon such terms as the General Partner determines appropriate; provided
that, the Partnership shall not incur any Debt that is recourse to the General Partner,
except to the extent otherwise agreed to by the General Partner in its sole discretion.

Section 4.3 Additional Funding and Capital Contributions

     A. General. The General Partner may, at any time and from time to time determine that
the Partnership requires additional funds (“Additional Funds”) for the acquisition of
additional Investments or for such other Partnership purposes as the General Partner may determine.
Additional Funds may be raised by the Partnership, at the election of the General Partner, in any
manner provided in, and in accordance with, the terms of this Section 4.3. No Person shall
have any preemptive, preferential or similar right or rights to subscribe for or acquire any
Partnership Interest, except as set forth in this Section 4.3.

     B. Issuance of Additional Partnership Interests. The General Partner, in its sole and
absolute discretion, may raise all or any portion of the Additional Funds by accepting additional
Capital Contributions of cash. The General Partner may also accept additional Capital Contributions
of real property or any other non-cash assets. In connection with any such additional Capital
Contributions (of cash or property), the General Partner is hereby authorized to cause the
Partnership from time to time to issue to Partners (including the General Partner) or other Persons
(including, without limitation, in connection with the contribution of property to the Partnership)
additional OP Units or other Partnership Interests in one or more classes, or one or more series of
any of such classes, with such designations, preferences and relative, participating, optional or
other special rights, powers, and duties, including rights, powers, and duties senior to then
existing Limited Partner Interests, all as shall be determined by the General Partner in its sole
and absolute discretion subject to Delaware law, and as set forth by amendment to this Agreement,
including without limitation, (i) the allocations of items of Partnership income, gain, loss,
deduction, and credit to such class or series of Partnership Interests; (ii) the right of each such
class or series of Partnership Interests to share

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in Partnership distributions; (iii) the rights of each such class or series of Partnership
Interests upon dissolution and liquidation of the Partnership; and (iv) the right to vote,
including, without limitation, the Limited Partner approval rights set forth in Section
11.2.A; provided, that no such additional OP Units or other Partnership
Interests shall be issued to the General Partner unless either (a) (1) the additional Partnership
Interests are issued in connection with the grant, award, or issuance of shares of the General
Partner pursuant to Section 4.3.C below, which shares have designations, preferences, and
other rights (except voting rights) such that the economic interests attributable to such shares
are substantially similar to the designations, preferences and other rights of the additional
Partnership Interests issued to the General Partner in accordance with this Section 4.3.B,
and (2) the General Partner shall make a Capital Contribution to the Partnership in an amount equal
to the net proceeds raised in connection with such issuance, or (b) the additional Partnership
Interests are issued to all Partners holding Partnership Interests in the same class in proportion
to their respective Percentage Interests in such class. The General Partner’s determination that
consideration is adequate shall be conclusive insofar as the adequacy of consideration relates to
whether the Partnership Interests are validly issued and paid. In the event that the Partnership
issues additional Partnership Interests pursuant to this Section 4.3.B, the General Partner
shall make such revisions to this Agreement (including but not limited to the revisions described
in Section 5.4 and Section 8.6) as it determines are necessary to reflect the
issuance of such additional Partnership Interests. Without limiting the foregoing, the General
Partner is expressly authorized to cause the Partnership to issue OP Units for less than fair
market value, so long as the General Partner concludes in good faith that such issuance of
Partnership Interests is in the best interests of the Partnership.

     C. Issuance of REIT Shares or Other Securities by the General Partner. The General
Partner shall not issue any additional REIT Shares, other shares of capital stock of the General
Partner or New Securities (other than REIT Shares issued pursuant to Section 8.6 or such
shares, stock or securities pursuant to a dividend or distribution (including any stock split) to
all of its stockholders or all of its stockholders who hold a particular class of stock of the
General Partner) unless (i) the General Partner shall cause the Partnership to issue to the General
Partner, Partnership Interests or rights, options, warrants or convertible or exchangeable
securities of the Partnership having designations, preferences and other rights, all such that the
economic interests thereof are substantially similar to those of the REIT Shares, other shares of
capital stock of the General Partner or New Securities issued by the General Partner and (ii) the
General Partner shall make a Capital Contribution of the net proceeds from the issuance of such
additional REIT Shares, other shares of capital stock or New Securities, as the case may be, and
from the exercise of the rights contained in such additional New Securities, as the case may be.
Without limiting the foregoing, the General Partner is expressly authorized to issue REIT Shares,
other shares of capital stock of the General Partner or New Securities for no tangible value or for
less than fair market value, and the General Partner is expressly authorized to cause the
Partnership to issue to the General Partner corresponding Partnership Interests, so long as (x) the
General Partner concludes in good faith that such issuance of Partnership Interests is in the
interests of the Partnership; and (y) the General Partner contributes all proceeds, if any, from
such issuance and exercise to the Partnership. In connection with the General Partner’s initial
offering of REIT Shares, any other issuance of REIT Shares, other capital stock of the General
Partner or New Securities, the General Partner shall contribute to the Partnership, any net
proceeds raised in connection with such issuance; provided, that the General
Partner may use a portion of the net proceeds from any offering to acquire OP Units or other assets
(provided such other assets are contributed to the Partnership pursuant to the terms of this
Agreement; and provided further that if the net proceeds actually received by the
General Partner are less than the gross proceeds of such issuance as a result of any underwriter’s
discount or other expenses paid or incurred in connection with such issuance then, except to the
extent such net proceeds are used to acquire OP Units, the General Partner shall be deemed to have
made a Capital Contribution to the Partnership in the amount equal to the sum of the net proceeds
of such issuance plus the amount of such underwriter’s discount and other expenses paid by the
General Partner (which discount and expense shall be treated as an expense for the benefit of the
Partnership for purposes of Section 7.4)).

     D. Percentage Interest Adjustments in the Case of Capital Contributions for OP Units.
Upon the acceptance of additional Capital Contributions in exchange for OP Units, the Percentage
Interest in such OP Units shall be equal to a fraction, the numerator of which is equal to the
amount of cash and the Agreed

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Value of the Property contributed as of the time such additional Capital Contributions are made (an
“Adjustment Date”) and the denominator of which is equal to the sum of (i) the Deemed Value
of the Partnership Interests of such class or series (computed as of the Business Day immediately
preceding the Adjustment Date) and (ii) the aggregate Agreed Value of additional Capital
Contributions contributed by all Partners and/or third parties to the Partnership on such
Adjustment Date in such class or series of Partnership Interests. The Percentage Interest of each
other Partner holding Partnership Interests of such class or series not making a full pro
rata Capital Contribution shall be adjusted to equal a fraction, the numerator of which is
equal to the sum of (i) the Deemed Partnership Interest Value of such Limited Partner in respect of
such class or series (computed as of the Business Day immediately preceding the Adjustment Date)
and (ii) the Agreed Value of additional Capital Contributions, if any, made by such Partner to the
Partnership in such class or series of Partnership Interests as of such Adjustment Date, and the
denominator of which is equal to the sum of (i) the Deemed Value of the Partnership Interests of
such class or series (computed as of the Business Day immediately preceding the Adjustment Date),
plus (ii) the aggregate Agreed Value of additional Capital Contributions contributed by all
Partners and/or third parties to the Partnership on such Adjustment Date in such class or series.
Provided, however, solely for purposes of calculating a Partner’s Percentage Interest pursuant to
this Section 4.3.D, (i) in the case of cash Capital Contributions by the General Partner
funded by an offering of REIT Shares or other shares of capital stock of the General Partner and
(ii) in the case of the contribution of properties by the General Partner which were acquired by
the General Partner in exchange for REIT Shares or other shares of capital stock of the General
Partner immediately prior to such contribution, the General Partner shall be issued a number of OP
Units equal and corresponding to the number of such shares issued by the General Partner in
exchange for such cash or Investments, the OP Units held by the other Partners shall not be
adjusted, and the Partners’ Percentage Interests shall be adjusted accordingly. The General Partner
shall promptly give each Partner written notice of its Percentage Interest, as adjusted.

  E. Reinvestment of Special General Partner Distributions. The Special General
Partner, in its sole and absolute discretion, may elect, on an annual basis, to reinvest all, or
any portion, of the distributions of Available Cash and Capital Proceeds it receives under
Section 5.1 in the Partnership in exchange for the issuance of OP Units. If the Special
General Partner elects to reinvest any portion of Available Cash and Capital Proceeds distributed
to the Special General Partner under this Agreement, the Special General Partner shall be treated
no differently than any Limited Partner making a Capital Contribution to the Partnership under
Section 4.3.

Section 4.4 Other Contribution Provisions

     With the consent of the General Partner, in its sole discretion, one or more Limited Partners
may enter into agreements with the Partnership, in the form of a guarantee or contribution
agreement, which have the effect of providing a guarantee of certain obligations of the
Partnership.

Section 4.5 No Preemptive Rights

     Except to the extent expressly granted by the Partnership pursuant to another agreement, no
Person shall have any preemptive, preferential or other similar right with respect to (i) providing
funds to the Partnership or (ii) issuance or sale of any OP Units or other Partnership Interests.

Section 4.6 No Interest; No Return.

     No Partner shall be entitled to interest on its Capital Contribution or on such Partner’s
Capital Account. Except as provided herein or by law, no Partner shall have any right to demand or
receive the return of its Capital Contribution from the Partnership.

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Section 4.7 Profits Interest of Special General Partner

     To the extent that the Special General Partner receives a Partnership Interest with a
disproportionate interest in Partnership Net Income or Net Loss, such Partnership Interest shall be
treated as a “profits interest” received for services rendered, or to be rendered, within the
meaning of IRS Rev. Proc. 93-27, 1993-2 C.B. 343.

ARTICLE 5.

DISTRIBUTIONS

Section 5.1 Requirement and Characterization of Distributions

     The General Partner shall cause the Partnership to distribute at least quarterly all, or such
portion as the General Partner may in its discretion determine, Available Cash and Capital Proceeds
generated by the Partnership to the Partners who are Partners on the applicable Partnership Record
Date with respect to such distribution, in the following order and priority:

     A. Available Cash.

          (1) First, Available Cash from Long-Term Net Leased Properties shall be distributed ten
percent (10%) to the Special General Partner, and ninety percent (90%) to the Partners in
proportion to their respective Percentage Interests;

          (2) Second, Available Cash from Real Estate Related Loans shall be distributed one hundred
percent (100%) to the Special General Partner in an amount equal to the lesser of (i) ten percent
(10%) of Available Cash from Real Estate Related Loans, or (ii) twenty percent (20%) of Available
Cash from Real Estate Related Loans in excess of five percent (5%) of Available Cash from Real
Estate Related Loans; and any remaining Available Cash from Real Estate Related Loans shall be
distributed to the Partners in proportion to their respective Percentage Interests;

          (3) Third, Available Cash from Real Estate Securities shall be distributed one hundred percent
(100%) to the Partners in proportion to their respective Percentage Interests; and

          (4) Fourth, Available Residual Cash shall be distributed ten percent (10%) to the Special
General Partner, and ninety percent (90%) to the Partners in proportion to their respective
Percentage Interests.

     B. Distribution of Capital Proceeds.

          (1) First, Capital Proceeds shall be distributed one hundred percent (100%) to the General
Partner until the General Partner has received distributions under this Section 5.1.B(1)
equal to the General Partner Unpaid Priority Return;

          (2) Second, Capital Proceeds shall be distributed one hundred percent (100%) to the General
Partner until the General Partner Net Current Investment has been reduced to zero; and

          (3) Third, any remaining Capital Proceeds shall be distributed fifteen percent (15%) to the
Special General Partner and eighty-five percent (85%) to the Partners in proportion to their
respective Percentage Interests.

Notwithstanding any other provision of this Article 5 to the contrary, the General Partner
shall take such reasonable efforts, as determined by it in its sole and absolute discretion and
consistent with its qualification as a REIT, to cause the Partnership to distribute sufficient
amounts to enable the General Partner, for so long as the General Partner has determined to qualify
as a REIT, to pay stockholder

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dividends that will (a) satisfy the requirements for qualifying as a REIT under the Code and
Regulations (“REIT Requirements”), and (b) except to the extent otherwise determined by the General
Partner, avoid the imposition of any federal income or excise tax liability on the General Partner.

Section 5.2 Distributions in Kind

     Except as expressly provided herein, no right is given to any Partner to demand and receive
property other than cash. The General Partner may determine, in its sole and absolute discretion,
to make a distribution in-kind to the Partners of Partnership assets, and such assets shall be
distributed in such a fashion as to ensure that the fair market value is distributed and allocated
in accordance with Articles 5, 6 and 10.

Section 5.3 Distributions Upon Liquidation

     Notwithstanding Section 5.1, proceeds from a Liquidating Event shall be distributed to
the Partners in accordance with Section 13.2.

Section 5.4 Distributions to Reflect Issuance of Additional Partnership Interests

     In the event that the Partnership issues additional Partnership Interests to the General
Partner, the Special General Partner, or any Additional Limited Partner pursuant to Section
4.3.B, 4.3.C, or 4.3E, the General Partner shall make such revisions to this
Article 5 as it determines are necessary to reflect the issuance of such additional
Partnership Interests. In the absence of any agreement to the contrary, an Additional Limited
Partner shall be entitled to the distributions set forth in Section 5.1 (without regard to
this Section 5.4) with respect to the period during which the closing of its contribution
to the Partnership occurs, multiplied by a fraction the numerator of which is the number of days
from and after the date of such closing through the end of the applicable period, and the
denominator of which is the total number of days in such period.

Section 5.5 Distribution Limitation

     Notwithstanding any other provision in this Article 5, the General Partner shall have
the power, in its reasonable discretion, to adjust the distributions to the Special General Partner
to the extent necessary to avoid violations of the “2%/25% Guidelines” as described in the Advisory
Agreement.

ARTICLE 6.

ALLOCATIONS

Section 6.1 Timing and Amount of Allocations of Net Income and Net Loss

     Net Income and Net Loss of the Partnership shall be determined and allocated with respect to
each Partnership Year of the Partnership as of the end of each such year. Subject to the other
provisions of this Article 6, an allocation to a Partner of a share of Net Income or Net
Loss shall be treated as an allocation of the same share of each item of income, gain, loss or
deduction that is taken into account in computing Net Income or Net Loss.

Section 6.2 General Allocations

     A. Allocation of Net Income and Net Loss Other Than From a Capital
Transaction.

     (1) Net Income other than from a Capital Transaction. Except as otherwise provided in
Section 6.3, Net Income other than from a Capital Transaction for any Partnership Year
shall be allocated to the Partners in the following manner and order of priority:

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          (a) First, Net Income from Long-Term Net Leased Properties shall be allocated ten percent
(10%) to the Special General Partner, and ninety percent (90%) to the Partners in proportion to
their respective Percentage Interests;

          (b) Second, Net Income from Real Estate Related Loans shall be allocated one hundred percent
(100%) to the Special General Partner in an amount equal to the lesser of (i) ten percent (10%) of
Net Income from Real Estate Related Loans, or (ii) twenty percent (20%) of Net Income from Real
Estate Related Loans in excess of five percent (5%) of Net Income from Real Estate Related Loans;
and any remaining Net Income from Real Estate Related Loans shall be allocated to the Partners in
proportion to their respective Percentage Interests;

          (c) Third, Net Income from Real Estate Securities shall be allocated one hundred percent
(100%) to the Partners in proportion to their respective Percentage Interests; and

          (d) Fourth, Net Residual Income shall be allocated ten percent (10%) to the Special General
Partner, and ninety percent (90%) to the Partners in proportion to their respective Percentage
Interests.

     (2) Net Loss other than from a Capital Transaction. Except as otherwise provided in
Section 6.3, Net Loss other than from a Capital Transaction for any Partnership Year shall
be allocated to the Partners in the following manner and order of priority:

          (a) First, to the Partners, in proportion to their relative allocations of Net Income other
than from a Capital Transaction pursuant to Section 6.2.A(1) until the aggregate
allocations of Net Loss other than from a Capital Transaction pursuant to this Section
6.2.A(2) for all Partnership Years equal the aggregate allocations of Net Income other than
from a Capital Transaction pursuant to Section 6.2.A(1) for all prior Partnership Years;

          (b) Second, to the Partners in proportion to their respective Adjusted Capital Account
Balances until the Adjusted Capital Account Balance of each such Partner is zero; and

          (c) Third, to each of the Partners in proportion to their respective Percentage Interests.

          B. Allocation of Net Income and Net Loss From a Capital Transaction

     (1) Net Income from a Capital Transaction. Except as otherwise provided in Section
6.3, Net Income from a Capital Transaction for any Partnership Year shall be allocated to the
Partners in the following manner and order of priority:

          (a) First, to the Partners, in proportion to their relative allocations of Net Loss from a
Capital Transaction pursuant to Section 6.2.B(2)(b) and (c) until the aggregate allocations
of Net Income from a Capital Transaction pursuant to this Section 6.2.B(1)(a) for all
Partnership Years equal the aggregate allocations of Net Loss from a Capital Transaction pursuant
to Section 6.2.B(2)(b) and (c) for all prior Partnership Years;

          (b) Second, one hundred percent (100%) to the General Partner until the Adjusted Capital
Account Balance of the General Partner equals the sum of the General Partner Net Current Investment
and the General Partner Unpaid Priority Return; and

          (c) Third, fifteen percent (15%) to the Special General Partner, and eighty-five percent (85%)
to the Partners in proportion to their respective Percentage Interests.

     (2) Net Loss from a Capital Transaction. Except as otherwise provided in Section
6.3, Net Loss from a Capital Transaction for any Partnership Year shall be allocated to the
Partners in the following manner and order of priority:

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          (a) First, to the Partners, in proportion to their relative allocations of Net Income from a
Capital Transaction pursuant to Section 6.2.B(1)(c) until the aggregate allocations of Net
Loss from a Capital Transaction pursuant to this Section 6.2.B(2)(a) for all Partnership
Years equal the aggregate allocations of Net Income from a Capital Transaction pursuant to
Section 6.2.B(1)(c) for all prior Partnership Years;

          (b) Second, to the Partners in proportion to their respective Adjusted Capital Account
Balances until the Adjusted Capital Account Balance of each such Partner is zero; and

          (c) Third, to the Partners in proportion to their respective Percentage Interests.

  C. Allocations to Reflect Issuance of Additional Partnership Interests. In the event
that the Partnership issues additional Partnership Interests to the General Partner, the Special
General Partner, a Limited Partner or any Additional Limited Partner pursuant to Section
4.3, the General Partner shall make such revisions to this Section 6.2 as it determines
are necessary to reflect the terms of the issuance of such additional Partnership Interests,
including making preferential allocations to certain classes of Partnership Interests, in
accordance with any method selected by the General Partner.

Section 6.3 Regulatory Allocations

     Notwithstanding the foregoing provisions of this Article 6:

          (i) Minimum Gain Chargeback. Except as otherwise provided in Regulations Section
1.704-2(f), notwithstanding the provisions of Section 6.2, or any other provision of this
Article 6, if there is a net decrease in Partnership Minimum Gain during any Partnership
Year, each Partner shall be specially allocated items of Partnership income and gain for such year
(and, if necessary, subsequent years) in an amount equal to such Partner’s share of the net
decrease in Partnership Minimum Gain, as determined under Regulations Section 1.704-2(g).
Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts
required to be allocated to each Partner pursuant thereto. The items to be allocated shall be
determined in accordance with Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This
Section 6.3(i) is intended to qualify as a “minimum gain chargeback” within the meaning of
Regulation Section 1.704-2(f) which shall be controlling in the event of a conflict between such
Regulation and this Section 6.3(i).

          (ii) Partner Minimum Gain Chargeback. Except as otherwise provided in Regulations
Section 1.704-2(i)(4), and notwithstanding the provisions of Section 6.2, or any other
provision of this Article 6 (except Section 6.3(i)), if there is a net decrease in
Partner Minimum Gain attributable to a Partner Nonrecourse Debt during any Partnership Year, each
Partner who has a share of the Partner Minimum Gain attributable to such Partner Nonrecourse Debt,
determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items
of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount
equal to such Partner’s share of the net decrease in Partner Minimum Gain attributable to such
Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(4).
Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts
required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be
determined in accordance with Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This
Section 6.3(ii) is intended to qualify as a “chargeback of partner nonrecourse debt minimum
gain” within the meaning of Regulation Section 1.704-2(i) which shall be controlling in the event
of a conflict between such Regulation and this Section 6.3(ii).

          (iii) Nonrecourse Deductions and Partner Nonrecourse Deductions. Any Nonrecourse
Deductions for any Partnership Year shall be specially allocated to the Partners in accordance with
their respective Percentage Interests. Any Partner Nonrecourse Deductions for any Partnership Year
shall be specially allocated to the Partner(s) who bears the economic risk of loss with respect to
the Partner Nonrecourse Debt

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to which such Partner Nonrecourse Deductions are attributable, in accordance with Regulations
Sections 1.704-2(b)(4) and 1.704-2(i).

          (iv) Qualified Income Offset. If any Partner unexpectedly receives an adjustment,
allocation or distribution described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6),
items of Partnership income and gain shall be allocated, in accordance with Regulations Section
1.704-1(b)(2)(ii)(d), to the Partner in an amount and manner sufficient to eliminate, to the extent
required by such Regulations, the Adjusted Capital Account Deficit of the Partner as quickly as
possible provided that an allocation pursuant to this Section 6.3(iv) shall be made if and
only to the extent that such Partner would have an Adjusted Capital Account Deficit after all other
allocations provided in this Article 6 have been tentatively made as if this Section
6.3(iv) were not in this Agreement. It is intended that this Section 6.3(iv) qualify
and be construed as a “qualified income offset” within the meaning of Regulations
1.704-1(b)(2)(ii)(d), which shall be controlling in the event of a conflict between such
Regulations and this Section 6.3(iv).

          (v) Gross Income Allocation. In the event any Partner has a deficit Capital Account at
the end of any Partnership Year which is in excess of the sum of (1) the amount (if any) such
Partner is obligated to restore to the Partnership, and (2) the amount such Partner is deemed to be
obligated to restore pursuant to Regulations Section 1.704-1(b)(2)(ii)(c) or the penultimate
sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Partner shall be
specially allocated items of Partnership income and gain in the amount of such excess as quickly as
possible, provided, that an allocation pursuant to this Section 6.3(v)
shall be made if and only to the extent that such Partner would have a deficit Capital Account in
excess of such sum after all other allocations provided in this Article 6 have been
tentatively made as if this Section 6.3(v) and Section 6.3(iv) were not in this
Agreement.

          (vi) Limitation on Allocation of Net Loss. To the extent any allocation of Net Loss
would cause or increase an Adjusted Capital Account Deficit as to any Partner, such allocation of
Net Loss shall be reallocated among the other Partners in accordance with their respective
Percentage Interests, subject to the limitations of this Section 6.3(vi).

          (vii) Section 754 Adjustment. To the extent an adjustment to the adjusted tax basis of
any Partnership asset pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant
to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations Section 1.704-1(b)(2)(iv)(m)(4), to
be taken into account in determining Capital Accounts as the result of a distribution to a Partner
in complete liquidation of his interest in the Partnership, the amount of such adjustment to the
Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the
asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially
allocated to the Partners in accordance with their interests in the Partnership in the event that
Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Partners to whom such distribution
was made in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.

          (viii) Curative Allocation. The allocations set forth in Sections 6.3(i),
(ii), (iii), (iv), (v), (vi), and (vii) (the
“Regulatory Allocations”) are intended to comply with certain regulatory requirements,
including the requirements of Regulations Sections 1.704-1(b) and 1.704-2. Notwithstanding the
provisions of Sections 6.1 and 6.2, the Regulatory Allocations shall be taken into
account in allocating other items of income, gain, loss and deduction among the Partners so that,
to the extent possible, the net amount of such allocations of other items and the Regulatory
Allocations to each Partner shall be equal to the net amount that would have been allocated to each
such Partner if the Regulatory Allocations had not occurred. For purposes of determining a
Partner’s proportional share of the “excess nonrecourse liabilities” of the Partnership within the
meaning of Regulations Section 1.752-3(a)(3), each Partner’s interest in Partnership profits shall
be such Partner’s Percentage Interest.

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Section 6.4 Tax Allocations

     A. In General. Except as otherwise provided in this Section 6.4, for income
tax purposes each item of income, gain, loss and deduction (collectively, “Tax Items”)
shall be allocated among the Partners in the same manner as its correlative item of “book” income,
gain, loss or deduction is allocated pursuant to Sections 6.2 and 6.3.

     B. Allocations Respecting Section 704(c) Revaluations. Notwithstanding Section
6.4.A, Tax Items with respect to Partnership property that is contributed to the Partnership by
a Partner with a Gross Asset Value that differs from its adjusted tax basis in the hands of the
Contributing Partner immediately preceding the date of contribution shall be allocated among the
Partners for income tax purposes pursuant to Regulations promulgated under Section 704(c) of the
Code, so as to take into account the variation between book Capital Accounts and tax capital
accounts. The Partnership shall account for such variation under the “traditional method” under
Regulations Section 1.704-3(b) with respect to Partnership property that is contributed to the
Partnership in connection with the General Partner’s initial offering. With respect to other
properties contributed to the Partnership, the Partnership shall account for such variation under
any reasonable method consistent with Section 704(c) of the Code and the applicable regulations as
chosen by the General Partner. In the event the Gross Asset Value of any Partnership asset is
adjusted pursuant to subparagraph (b) of the definition of Gross Asset Value (provided in Article
1), subsequent allocations of Tax Items with respect to such asset shall take account of the
variation, if any, between the adjusted basis of such asset and its Gross Asset Value in the same
manner as under Section 704(c) of the Code and the applicable regulations consistent with the
requirements of Regulations Section 1.704-1(b)(2)(iv)(g) using any method approved under Section
704(c) of the Code and the applicable regulations as chosen by the General Partner.

ARTICLE 7.

MANAGEMENT AND OPERATIONS OF BUSINESS

Section 7.1 Management

     A. Except as otherwise expressly provided in this Agreement, all management powers over the
business and affairs of the Partnership are and shall be exclusively vested in the General Partner,
and no Limited Partner shall have any right to participate in or exercise control or management
power over the business and affairs of the Partnership. The General Partner may not be removed by
the Limited Partners with or without cause, except with the consent of the General Partner. In
addition to the powers now or hereafter granted a general partner of a limited partnership under
applicable law or which are granted to the General Partner under any other provision of this
Agreement, the General Partner, subject to the other provisions hereof including Sections
7.3 and 11.2, shall have full power and authority to do all things deemed necessary or
desirable by it to conduct the business of the Partnership (including, without limitation, all
actions consistent with allowing the General Partner at all times to qualify as a REIT unless the
General Partner voluntarily terminates its REIT status), to exercise all powers set forth in
Section 3.2 and to effectuate the purposes set forth in Section 3.1, including,
without limitation:

          (1) the making of any expenditures, the lending or borrowing of money (including, without
limitation, making prepayments on loans and borrowing money to permit the Partnership to make
distributions to its Partners in such amounts as will permit the General Partner (so long as the
General Partner has determined to qualify as a REIT) to avoid the payment of any federal income tax
(including, for this purpose, any excise tax pursuant to Section 4981 of the Code) and to make
distributions to its stockholders sufficient to permit the General Partner to maintain REIT
status), the assumption or guarantee of, or other contracting for, indebtedness and other
liabilities, the issuance of evidences of indebtedness (including the securing of same by mortgage,
deed of trust or other lien or encumbrance on all or any of the Partnership’s assets) and the
incurring of any obligations it deems necessary for the conduct of the activities of the
Partnership;

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          (2) the making of tax, regulatory and other filings, or rendering of periodic or other reports
to governmental or other agencies having jurisdiction over the business or assets of the
Partnership, the registration of any class of securities of the Partnership under the Exchange Act,
and the listing of any debt securities of the Partnership on any exchange;

          (3) subject to the provisions of Section 11.2, the acquisition, disposition, mortgage,
pledge, encumbrance, hypothecation or exchange of any assets of the Partnership or the merger or
other combination of the Partnership with or into another entity;

          (4) the acquisition, disposition, mortgage, pledge, encumbrance or hypothecation of all or any
assets of the Partnership, and the use of the assets of the Partnership (including, without
limitation, cash on hand) for any purpose consistent with the terms of this Agreement and on any
terms it sees fit, including, without limitation, the financing of the conduct or the operations of
the General Partner or the Partnership, the lending of funds to other Persons (including, without
limitation, the General Partner or any Subsidiaries of the Partnership) and the repayment of
obligations of the Partnership, any of its Subsidiaries and any other Person in which it has an
equity investment, and the making of capital contributions to its Subsidiaries;

          (5) the management, operation, leasing, landscaping, repair, alteration, demolition or
improvement of any real property or improvements owned by the Partnership or any Subsidiary of the
Partnership;

          (6) the negotiation, execution, and performance of any contracts, leases, conveyances or other
instruments that the General Partner considers useful or necessary to the conduct of the
Partnership’s operations or the implementation of the General Partner’s powers under this
Agreement, including contracting with contractors, developers, consultants, accountants, legal
counsel, other professional advisors and other agents and the payment of their expenses and
compensation out of the Partnership’s assets;

          (7) the distribution of Partnership cash or other Partnership assets in accordance with this
Agreement;

          (8) the establishment of one or more divisions of the Partnership, the selection and dismissal
of employees of the Partnership (including, without limitation, employees having titles such as
“president,” “vice president,” “secretary” and “treasurer”), and agents, outside attorneys,
accountants, consultants and contractors of the Partnership, the determination of their
compensation and other terms of employment or hiring, including waivers of conflicts of interest
and the payment of their expenses and compensation out of the Partnership’s assets;

          (9) the maintenance of such insurance for the benefit of the Partnership and the Partners and
directors and officers of the Partnership or the General Partner as it deems necessary or
appropriate;

          (10) the formation of, or acquisition of an interest in, and the contribution of property to,
any further limited or general partnerships, limited liability companies, joint ventures,
corporations or other relationships that it deems desirable (including, without limitation, the
acquisition of interests in, and the contributions of property to any Subsidiary and any other
Person in which it has an equity investment from time to time); provided, that, as
long as the General Partner has determined to continue to qualify as a REIT, the Partnership may
not engage in any such formation, acquisition or contribution that could cause the General Partner
to fail to qualify as a REIT;

          (11) the control of any matters affecting the rights and obligations of the Partnership,
including the settlement, compromise, submission to arbitration or any other form of dispute
resolution, or abandonment of, any claim, cause of action, liability, debt or damages, due or owing
to or from the Partnership, the commencement or defense of suits, legal proceedings, administrative
proceedings, arbitration or other forms of dispute resolution, and the representation of the
Partnership in all suits or legal proceedings, administrative proceedings, arbitrations or other
forms of dispute resolution, the incurring of legal expense, and the indemnification of any Person
against liabilities and contingencies to the extent permitted by law;

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          (12) the undertaking of any action in connection with the Partnership’s direct or indirect
investment in any Person (including, without limitation, contributing or loaning Partnership funds
to, incurring indebtedness on behalf of, or guarantying the obligations of any such Persons);

          (13) subject to the other provisions in this Agreement, the determination of the fair market
value of any Partnership property distributed in kind using such reasonable method of valuation as
it may adopt, provided, that such methods are otherwise consistent with
requirements of this Agreement;

          (14) the management, operation, leasing, landscaping, repair, alteration, demolition or
improvement of any real property or improvements owned by the Partnership or any Subsidiary of the
Partnership or any Person in which the Partnership has made a direct or indirect equity investment;

          (15) holding, managing, investing and reinvesting cash and other assets of the Partnership;

          (16) the collection and receipt of revenues and income of the Partnership;

          (17) the exercise, directly or indirectly through any attorney-in-fact acting under a general
or limited power of attorney, of any right, including the right to vote, appurtenant to any asset
or investment held by the Partnership;

          (18) the exercise of any of the powers of the General Partner enumerated in this Agreement on
behalf of or in connection with any Subsidiary of the Partnership or any other Person in which the
Partnership has a direct or indirect interest, or jointly with any such Subsidiary or other Person;

          (19) the exercise of any of the powers of the General Partner enumerated in this Agreement on
behalf of any Person in which the Partnership does not have an interest pursuant to contractual or
other arrangements with such Person;

          (20) the making, execution and delivery of any and all deeds, leases, notes, deeds to secure
debt, mortgages, deeds of trust, security agreements, conveyances, contracts, guarantees,
warranties, indemnities, waivers, releases or legal instruments or agreements in writing necessary
or appropriate in the judgment of the General Partner for the accomplishment of any of the powers
of the General Partner enumerated in this Agreement;

          (21) the issuance of additional Partnership Interests, as appropriate, in connection with the
contribution of Additional Funds pursuant to Section 4.3;

          (22) the distribution of cash to acquire OP Units held by a Limited Partner in connection with
a Limited Partner’s exercise of its Redemption Right under Section 8.6 hereof;

          (23) the amendment and restatement of Exhibit A hereto to reflect accurately at all times the
Capital Contributions and Percentage Interests of the Partners as the same are adjusted from time
to time to the extent necessary to reflect redemptions, Capital Contributions, the issuance of OP
Units, the admission of any Additional Limited Partner or any Substituted Limited Partner or
otherwise, which amendment and restatement, notwithstanding anything in this Agreement to the
contrary, shall not be deemed an amendment to this Agreement, as long as the matter or event being
reflected in Exhibit A hereto otherwise is authorized by this Agreement;

          (24) the taking of any and all acts and things necessary or prudent to ensure that the
Partnership will not be classified as a “publicly traded partnership” under Section 7704 of the
Code; and

          (25) the delegation to another Person of any powers now or hereafter granted to the General
Partner.

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     B. Each of the Limited Partners agrees that the General Partner is authorized to execute,
deliver and perform the above-mentioned agreements and transactions on behalf of the Partnership
without any further act, approval or vote of the Partners, notwithstanding any other provisions of
this Agreement (except as provided in Section 7.3 or 11.2), the Act or any
applicable law, rule or regulation to the fullest extent permitted under the Act or other
applicable law, rule or regulation. The execution, delivery or performance by the General Partner
or the Partnership of any agreement authorized or permitted under this Agreement shall not
constitute a breach by the General Partner of any duty that the General Partner may owe the
Partnership or the Limited Partners or any other Persons under this Agreement or of any duty stated
or implied by law or equity.

     C. At all times from and after the date hereof, the General Partner may cause the Partnership
to obtain and maintain (i) casualty, liability and other insurance on the Investments and (ii)
liability insurance for the Indemnities hereunder.

     D. At all times from and after the date hereof, the General Partner may cause the Partnership
to establish and maintain working capital and other reserves in such amounts as the General
Partner, in its sole and absolute discretion, deems appropriate and reasonable from time to time.

     E. Each of the Limited Partners acknowledges that, in exercising its authority under this
Agreement, the General Partner may, but shall be under no obligation to, take into account the tax
consequences to any Partner (including the General Partner) of any action taken (or not taken) by
the General Partner. The General Partner and the Partnership shall not have liability to a Partner
under this Agreement as a result of any income tax liability incurred by a Limited Partner as a
result of an action (or inaction) by the General Partner pursuant to its authority under this
Agreement.

     F. Except as otherwise provided herein, to the extent the duties of the General Partner
require expenditures of funds to be paid to third parties, the General Partner shall not have any
obligations hereunder except to the extent that Partnership funds are reasonably available to it
for the performance of such duties, and nothing herein contained shall be deemed to authorize or
require the General Partner, in its capacity as such, to expend its individual funds for payment to
third parties or to undertake any individual liability or obligation on behalf of the Partnership.

Section 7.2 Certificate of Limited Partnership

          To the extent that such action is determined by the General Partner to be reasonable and
necessary or appropriate, the General Partner shall file amendments to and restatements of the
Certificate and do all the things to maintain the Partnership as a limited partnership (or a
partnership in which the limited partners have limited liability) under the laws of the State of
Delaware and to maintain the Partnership’s qualification to do business as a foreign limited
partnership in each other state, the District of Columbia or other jurisdiction, in which the
Partnership may elect to do business or own property. Subject to the terms of Section
8.5.A(4), the General Partner shall not be required, before or after filing, to deliver or mail
a copy of the Certificate or any amendment thereto to any Limited Partner. The General Partner
shall use all reasonable efforts to cause to be filed such other certificates or documents as may
be reasonable and necessary or appropriate for the formation, continuation, qualification and
operation of a limited partnership (or a partnership in which the limited partners have limited
liability) in the State of Delaware, any other state, or the District of Columbia or other
jurisdiction, in which the Partnership may elect to do business or own property.

Section 7.3 Restrictions on General Partner’s Authority

     A. The General Partner may not take any action in contravention of an express prohibition or
limitation of this Agreement without the written Consent of the Limited Partners and the Special
General Partner, and may not (i) perform any act that would subject a Limited Partner to liability
as a general partner in any jurisdiction or any other liability except as provided herein or under
the Act; or (ii) enter into any contract,

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mortgage, loan or other agreement that prohibits or restricts, or has the effect of prohibiting or
restricting, the ability of a Limited Partner to exercise its rights to a Redemption in full,
except in each case with the written consent of such Limited Partner.

     B. The General Partner shall not, without the prior Consent of the Partners (in addition to
any Consent of the Limited Partners required by any other provision hereof), or except as provided
in Section 7.3.D, amend, modify or terminate this Agreement.

     C. The General Partner may not cause the Partnership to take any action which the General
Partner would be prohibited from taking directly under the General Partner’s bylaws as in effect
from time to time.

     D. Notwithstanding Section 7.3.B, the General Partner shall have the exclusive power
to amend this Agreement as may be required to facilitate or implement any of the following
purposes:

          (1) to add to the obligations of the General Partner or surrender any right or power granted
to the General Partner or any Affiliate of the General Partner for the benefit of the Limited
Partners;

          (2) to reflect the issuance of additional Partnership Interests pursuant to Sections
4.3.B, 5.4 and 6.2B. or the admission, substitution, termination, or withdrawal of
Partners in accordance with this Agreement (which may be effected through the replacement of
Exhibit A with an amended Exhibit A);

          (3) to set forth or amend the designations, rights, powers, duties and preferences of the
holders of any additional Partnership Interests issued pursuant to Article 4;

          (4) to reflect a change that is of an inconsequential nature and does not adversely affect the
Limited Partners in any material respect, or to cure any ambiguity, correct or supplement any
provision in this Agreement not inconsistent with law or with other provisions, or make other
changes with respect to matters arising under this Agreement that will not be inconsistent with law
or with the provisions of this Agreement;

          (5) to satisfy any requirements, conditions, or guidelines contained in any order, directive,
opinion, ruling or regulation of a federal or state agency or contained in federal or state law;

          (6) to reflect such changes as are reasonably necessary for the General Partner to maintain
its status as a REIT, including changes which may be necessitated due to a change in applicable law
(or an authoritative interpretation thereof) or a ruling of the IRS;

          (7) to modify, as set forth in the definition of “Capital Account,” the manner in
which Capital Accounts are computed; and

          (8) to amend or modify any provision of this Agreement to reflect a statutory or regulatory
change regarding the federal income tax treatment of the “profits interest” of the Special General
Partner or to ensure that the receipt of the Special General Partner’s profits interest will not
result in taxation to the Special General Partner.

          The General Partner will provide notice to the Limited Partners when any action under this
Section 7.3.D is taken.

     E. Notwithstanding Sections 7.3.B and 7.3.D, this Agreement shall not be
amended with respect to any Partner adversely affected, and no action may be taken by the General
Partner, without the Consent of such Partner adversely affected if such amendment or action would
(i) convert a Limited Partner’s interest in the Partnership into a general partner’s interest
(except as the result of the General Partner acquiring such interest), (ii) modify the limited
liability of a Limited Partner, (iii) alter rights of the Partner to receive distributions pursuant
to Article 5 or Section 13.2.A(4), or the allocations specified in Article
6 (except as

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permitted pursuant to Sections 4.3, 5.4, 6.2.B and Section
7.3.D(3)), (iv) materially alter or modify the rights to a Redemption or the REIT Shares Amount
as set forth in Section 8.6, and related definitions hereof, or (v) amend this Section
7.3.E. Further, no amendment may alter the restrictions on the General Partner’s authority set
forth elsewhere in this Section 7.3 or in Section 11.2.A without the Consent
specified in such section. This Section 7.3.E does not require unanimous consent of all
Partners adversely affected unless the amendment is to be effective against all partners adversely
affected.

Section 7.4 Reimbursement of the General Partner

     A. Except as provided in this Section 7.4 and elsewhere in this Agreement (including
the provisions of Articles 5 and 6 regarding distributions, payments and
allocations to which it may be entitled), the General Partner shall not be compensated for its
services as general partner of the Partnership.

     B. The Partnership shall be responsible for and shall pay all expenses relating to the
Partnership’s and the General Partner’s organization, the ownership of its assets and its
operations. The General Partner is hereby authorized to pay compensation for accounting,
administrative, legal, technical, management and other services rendered to the Partnership. Except
to the extent provided in this Agreement, the General Partner and its Affiliates shall be
reimbursed on a monthly basis, or such other basis as the General Partner may determine in its sole
and absolute discretion, for all expenses that the General Partner and its Affiliates incur
relating to the ownership and operation of, or for the benefit of, the Partnership (including,
without limitation, administrative expenses); provided, that the amount of any such
reimbursement shall be reduced by any interest earned by the General Partner with respect to bank
accounts or other instruments or accounts held by it on behalf of the Partnership. The Partners
acknowledge that all such expenses of the General Partner are deemed to be for the benefit of the
Partnership. Such reimbursement shall be in addition to any reimbursement made as a result of
indemnification pursuant to Section 7.7 hereof. In the event that certain expenses are
incurred for the benefit of the Partnership and other entities (including the General Partner),
such expenses will be allocated to the Partnership and such other entities in such a manner as the
General Partner in its sole and absolute discretion deems fair and reasonable. All payments and
reimbursements hereunder shall be characterized for federal income tax purposes as expenses of the
Partnership incurred on its behalf, and not as expenses of the General Partner.

     C. If the General Partner shall elect to purchase from its stockholders REIT Shares for the
purpose of delivering such REIT Shares to satisfy an obligation under any dividend reinvestment
program adopted by the General Partner, any employee stock purchase plan adopted by the General
Partner, or any similar obligation or arrangement undertaken by the General Partner in the future
or for the purpose of retiring such REIT Shares, the purchase price paid by the General Partner for
such REIT Shares and any other expenses incurred by the General Partner in connection with such
purchase shall be considered expenses of the Partnership and shall be advanced to the General
Partner or reimbursed to the General Partner, subject to the condition that: (i) if such REIT
Shares subsequently are sold by the General Partner, the General Partner shall pay to the
Partnership any proceeds received by the General Partner for such REIT Shares (which sales proceeds
shall include the amount of dividends reinvested under any dividend reinvestment or similar
program; provided, that a transfer of REIT Shares for OP Units pursuant to
Section 8.6 would not be considered a sale for such purposes); and (ii) if such REIT Shares
are not retransferred by the General Partner within thirty (30) days after the purchase thereof, or
the General Partner otherwise determines not to retransfer such REIT Shares, the General Partner,
shall cause the Partnership to redeem a number of OP Units held by the General Partner equal to the
number of such REIT Shares, as adjusted (x) pursuant to Section 7.5 (in the event the
General Partner acquires material assets, other than on behalf of the Partnership) and (y) for
stock dividends and distributions, stock splits and subdivisions, reverse stock splits and
combinations, distributions of rights, warrants or options, and distributions of evidences of
indebtedness or assets relating to assets not received by the General Partner pursuant to a
pro rata distribution by the Partnership (in which case such advancement or
reimbursement of expenses shall be treated as having been made as a distribution in redemption of
such number of OP Units held by the General Partner).

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     D. As set forth in Section 4.3, the General Partner shall be treated as having made a
Capital Contribution in the amount of all expenses that it incurs relating to the General Partner’s
offering of REIT Shares, other shares of capital stock of the General Partner or New Securities.

     E. If and to the extent any reimbursements to the General Partner pursuant to this Section
7.4 constitute gross income of the General Partner (as opposed to the repayment of advances
made by the General Partner on behalf of the Partnership), such amounts shall constitute guaranteed
payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith
by the Partnership and all Partners, and shall not be treated as distributions for purposes of
computing the Partners’ Capital Accounts.

Section 7.5 Outside Activities of the General Partner

     A. Except in connection with a transaction authorized in Section 11.2, without the
Consent of the Limited Partners, the General Partner shall not, directly or indirectly, enter into
or conduct any business, other than in connection with the ownership, acquisition and disposition
of Partnership Interests as a General Partner and the management of the business of the
Partnership, its operation as a public reporting company with a class (or classes) of securities
registered under the Exchange Act, its operation as a REIT and such activities as are incidental to
the same. Without the Consent of the Limited Partners, the General Partner shall not, directly or
indirectly, participate in or otherwise acquire any interest in any real or personal property,
except its General Partner Interest, its minority interest in any Subsidiary Partnership(s) that
the General Partner holds in order to maintain such Subsidiary Partnership’s status as a
partnership, and such bank accounts, similar instruments or other short term investments as it
deems necessary to carry out its responsibilities contemplated under this Agreement and the
Charter. In the event the General Partner desires to contribute cash to any Subsidiary Partnership
to acquire or maintain an interest of 1% or less in the capital of such partnership, the General
Partner may acquire or maintain an interest of 1% or less in the capital of such partnership, and
the General Partner may acquire such cash from the Partnership as a loan or in exchange for a
reduction in the General Partner’s OP Units, in an amount equal to the amount of such cash divided
by the Fair Market Value of a REIT Share on the day such cash is received by the General Partner.
Notwithstanding the foregoing, the General Partner may acquire Investments or other assets in
exchange for REIT Shares or cash, to the extent such Investments or other assets are immediately
contributed by the General Partner to the Partnership, pursuant to the terms described in
Section 4.3.D. Any Limited Partner Interests acquired by the General Partner, whether
pursuant to exercise by a Limited Partner of its right of Redemption, or otherwise, shall be
automatically converted into a General Partner Interest comprised of an identical number of OP
Units with the same rights, priorities and preferences as the class or series so acquired. The
General Partner may also own one hundred percent (100%) of the stock or interests of one or more
Qualified REIT Subsidiaries or limited liability companies, respectively, provided that any such
entity shall be subject to the limitations of this Section 7.5.A. If, at any time, the General
Partner acquires material assets (other than Partnership Interests or other assets on behalf of the
Partnership) the definition of “REIT Shares Amount” and the definition of “Deemed Value of
Partnership Interests” shall be adjusted, as reasonably determined by the General Partner, to
reflect the relative Fair Market Value of a share of capital stock of the General Partner relative
to the Deemed Partnership Interest Value of the related Partnership Unit. The General Partner’s
General Partner Interest in the Partnership, its minority interest in any Subsidiary Partnership(s)
(held directly or indirectly through a Qualified REIT Subsidiary) that the General Partner holds in
order to maintain such Subsidiary Partnership’s status as a partnership, and interests in such
short-term liquid investments, bank accounts or similar instruments as the General Partner deems
necessary to carry out its responsibilities contemplated under this Agreement and the Charter are
interests which the General Partner is permitted to acquire and hold for purposes of this
Section 7.5.A.

     B. In the event the General Partner exercises its rights under the Charter to purchase REIT
Shares, other common stock of the General Partner or New Securities, as the case may be, then the
General Partner shall cause the Partnership to purchase from it a number of OP Units equal to the
number of REIT Shares, other capital stock of the General Partner or New Securities, as the case
may be, so purchased on the same terms

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that the General Partner purchased such REIT Shares, other capital stock of the General Partner or
New Securities, as the case may be.

Section 7.6 Contracts with Affiliates

     A. The Partnership may lend or contribute to Persons in which it has an equity investment, and
such Persons may borrow funds from the Partnership, on terms and conditions established in the sole
and absolute discretion of the General Partner. The foregoing authority shall not create any right
or benefit in favor of any Person.

     B. Except as provided in Section 7.5.A, the Partnership may transfer assets to joint
ventures, other partnerships, corporations or other business entities in which it is or thereby
becomes a participant upon such terms and subject to such conditions consistent with this Agreement
and applicable law as the General Partner in its sole discretion deems advisable.

     C. The General Partner, in its sole and absolute discretion and without the approval of the
Limited Partners, may propose and adopt on behalf of the Partnership employee benefit plans funded
by the Partnership for the benefit of employees of the General Partner, the Partnership,
Subsidiaries of the Partnership or any Affiliate of any of them in respect of services performed,
directly or indirectly, for the benefit of the Partnership, the General Partner, or any of the
Partnership’s Subsidiaries.

     D. Except as expressly permitted by this Agreement, neither the General Partner nor any of its
Affiliates shall sell, transfer or convey any property to, or purchase any property from, the
Partnership, directly or indirectly, except pursuant to transactions that are determined by the
General Partner in good faith to be fair and reasonable.

     E. The General Partner is expressly authorized to enter into, in the name and on behalf of the
Partnership, a right of first opportunity arrangement and other conflict avoidance agreements with
various Affiliates of the Partnership and the General Partner, on such terms as the General
Partner, in its sole and absolute discretion, believes are advisable.

Section 7.7 Indemnification

     A. To the fullest extent permitted by law, the Partnership shall indemnify an Indemnitee from
and against any and all losses, claims, damages, liabilities, joint or several, expenses (including
legal fees and expenses), judgments, fines, settlements, and other amounts arising from any and all
claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative,
that relate to the operations of the Partnership as set forth in this Agreement in which any
Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, unless it is
established that: (i) the act or omission of the Indemnitee was material to the matter giving rise
to the proceeding and either was committed in bad faith, fraud or was the result of active and
deliberate dishonesty; (ii) the Indemnitee actually received an improper personal benefit in money,
property or services; or (iii) in the case of any criminal proceeding, the Indemnitee had
reasonable cause to believe that the act or omission was unlawful. Without limitation, the
foregoing indemnity shall extend to any liability of any Indemnitee, pursuant to a loan guaranty or
otherwise, for any indebtedness of the Partnership or any Subsidiary of the Partnership (including,
without limitation, any indebtedness which the Partnership or any Subsidiary of the Partnership has
assumed or taken subject to), and the General Partner is hereby authorized and empowered, on behalf
of the Partnership, to enter into one or more indemnity agreements consistent with the provisions
of this Section 7.7 in favor of any Indemnitee having or potentially having liability for
any such indebtedness. The termination of any proceeding by judgment, order, settlement, conviction
or upon a plea of nolo contendere or its equivalent, or any entry of an order of probation prior to
judgment, does not create a presumption that the Indemnitee did not meet the requisite standard of
conduct set forth in this Section 7.7.A. Any indemnification pursuant to this Section
7.7 shall be made only out of the assets of the Partnership, and any insurance proceeds from
the liability policy covering the General Partner and any Indemnitee, and neither the General
Partner nor any

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Limited Partner shall have any obligation to contribute to the capital of the Partnership or
otherwise provide funds to enable the Partnership to fund its obligations under this Section
7.7, except to the extent otherwise expressly agreed to by such Partner and the Partnership.

     B. Reasonable expenses incurred by an Indemnitee who is a party to a proceeding may be paid or
reimbursed by the Partnership in advance of the final disposition of the proceeding upon receipt by
the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee’s good faith
belief that the standard of conduct necessary for indemnification by the Partnership as authorized
in this Section 7.7 has been met, and (ii) a written undertaking by or on behalf of the
Indemnitee to repay the amount if it shall ultimately be determined that the standard of conduct
has not been met.

     C. The indemnification provided by this Section 7.7 shall be in addition to any other
rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to
any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee
who has ceased to serve in such capacity unless otherwise provided in a written agreement pursuant
to which such Indemnitee is indemnified.

     D. The Partnership may, but shall not be obligated to, purchase and maintain insurance, on
behalf of the Indemnitees and such other Persons as the General Partner shall determine, against
any liability that may be asserted against or expenses that may be incurred by such Person in
connection with the Partnership’s activities, regardless of whether the Partnership would have the
power to indemnify such Person against such liability under the provisions of this Agreement.

     E. For purposes of this Section 7.7, the Partnership shall be deemed to have requested
an Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by it of
its duties to the Partnership also imposes duties on, or otherwise involves services by, it to the
plan or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee with
respect to an employee benefit plan pursuant to applicable law shall constitute fines within the
meaning of Section 7.7; and actions taken or omitted by the Indemnitee with respect to an
employee benefit plan in the performance of its duties for a purpose reasonably believed by it to
be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a
purpose which is not opposed to the best interests of the Partnership.

     F. In no event may an Indemnitee subject the Limited Partners to personal liability by reason
of the indemnification provisions set forth in this Agreement.

     G. An Indemnitee shall not be denied indemnification in whole or in part under this
Section 7.7 because the Indemnitee had an interest in the transaction with respect to which
the indemnification applies if the transaction was otherwise permitted by the terms of this
Agreement.

     H. The provisions of this Section 7.7 are for the benefit of the Indemnitees, their
heirs, successors, assigns and administrators and shall not be deemed to create any rights for the
benefit of any other Persons. Any amendment, modification or repeal of this Section 7.7 or
any provision hereof shall be prospective only and shall not in any way affect the limitations on
the Partnership’s liability to any Indemnitee under this Section 7.7 as in effect
immediately prior to such amendment, modification or repeal with respect to claims arising from or
relating to matters occurring, in whole or in part, prior to such amendment, modification or
repeal, regardless of when such claims may arise or be asserted.

     I. If and to the extent any reimbursements to the General Partner pursuant to this Section
7.7 constitute gross income of the General Partner (as opposed to the repayment of advances
made by the General Partner on behalf of the Partnership) such amounts shall constitute guaranteed
payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith
by the Partnership and all Partners, and shall not be treated as distributions for purposes of
computing the Partners’ Capital Accounts.

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     J. Any indemnification hereunder is subject to, and limited by, the provisions of Section
10-107 of the Act.

     K. In the event the Partnership is made a party to any litigation or otherwise incurs any loss
or expense as a result of or in connection with any Partner’s personal obligations or liabilities
unrelated to Partnership business, such Partner shall indemnify and reimburse the Partnership for
all such loss and expense incurred, including legal fees, and the Partnership interest of such
Partner may be charged therefor. The liability of a Partner under this Section 7.7.K shall
not be limited to such Partner’s Partnership Interest, but shall be enforceable against such
Partner personally.

Section 7.8 Liability of the General Partner

     A. Notwithstanding anything to the contrary set forth in this Agreement, none of the General
Partner nor any of its officers, directors, agents or employees shall be liable or accountable in
damages or otherwise to the Partnership, any Partners or any Assignees, or their successors or
assigns, for losses sustained, liabilities incurred or benefits not derived as a result of errors
in judgment or mistakes of fact or law or any act or omission if the General Partner acted in good
faith.

     B. The Limited Partners expressly acknowledge that the General Partner is acting for the
benefit of the Partnership, the Limited Partners and the General Partner’s stockholders
collectively. The General Partner is under no obligation to give priority to the separate interests
of the Limited Partners or the General Partner’s stockholders (including, without limitation, the
tax consequences to Limited Partners or Assignees or to stockholders) in deciding whether to cause
the Partnership to take (or decline to take) any actions. If there is a conflict between the
interests of the stockholders of the General Partner on one hand and the Limited Partners on the
other, the General Partner shall endeavor in good faith to resolve the conflict in a manner not
adverse to either the stockholders of the General Partner or the Limited Partners;
provided, however, that for so long as the General Partner, owns a controlling
interest in the Partnership, any such conflict that cannot be resolved in a manner not adverse to
either the stockholders of the General Partner or the Limited Partners shall be resolved in favor
of the stockholders. The General Partner shall not be liable under this Agreement to the
Partnership or to any Partner for monetary damages for losses sustained, liabilities incurred, or
benefits not derived by Limited Partners in connection with such decisions; provided,
that the General Partner has acted in good faith.

     C. Subject to its obligations and duties as General Partner set forth in Section
7.1.A, the General Partner may exercise any of the powers granted to it by this Agreement and
perform any of the duties imposed upon it hereunder either directly or by or through its agents.
The General Partner shall not be responsible for any misconduct or negligence on the part of any
such agent appointed by it in good faith.

     D. Any amendment, modification or repeal of this Section 7.8 or any provision hereof
shall be prospective only and shall not in any way affect the limitations on the liability of the
General Partner and any of its officers, directors, agents and employee’s liability to the
Partnership and the Limited Partners under this Section 7.8 as in effect immediately prior
to such amendment, modification or repeal with respect to claims arising from or relating to
matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless
of when such claims may arise or be asserted.

Section 7.9 Other Matters Concerning the General Partner

     A. The General Partner may rely and shall be protected in acting or refraining from acting
upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, bond, debenture, or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties.

     B. The General Partner may consult with legal counsel, accountants, appraisers, management
consultants, investment bankers and other consultants and advisers selected by it, and any act
taken or

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omitted to be taken in reliance upon the opinion of such Persons as to matters which such General
Partner reasonably believes to be within such Person’s professional or expert competence shall be
conclusively presumed to have been done or omitted in good faith and in accordance with such
opinion.

     C. The General Partner shall have the right, in respect of any of its powers or obligations
hereunder, to act through any of its duly authorized officers and a duly appointed attorney or
attorneys-in-fact. Each such attorney shall, to the extent provided by the General Partner in the
power of attorney, have full power and authority to do and perform all and every act and duty which
is permitted or required to be done by the General Partner hereunder.

     D. Notwithstanding any other provisions of this Agreement or any non-mandatory provision of
the Act, any action of the General Partner on behalf of the Partnership or any decision of the
General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith
belief that such action or omission is necessary or advisable in order to protect the ability of
the General Partner, for so long as the General Partner has determined to qualify as a REIT, to (i)
continue to qualify as a REIT or (ii) avoid the General Partner incurring any taxes under Section
857 or Section 4981 of the Code, is expressly authorized under this Agreement and is deemed
approved by all of the Limited Partners.

Section 7.10 Title to Partnership Assets

          Title to Partnership assets, whether real, personal or mixed and whether tangible or
intangible, shall be deemed to be owned by the Partnership as an entity, and no Partners,
individually or collectively, shall have any ownership interest in such Partnership assets or any
portion thereof. Title to any or all of the Partnership assets may be held in the name of the
Partnership, the General Partner or one or more nominees, as the General Partner may determine,
including Affiliates of the General Partner. The General Partner hereby declares and warrants that
any Partnership assets for which legal title is held in the name of the General Partner or any
nominee or Affiliate of the General Partner shall be held by the General Partner for the use and
benefit of the Partnership in accordance with the provisions of this Agreement; provided,
however, that the General Partner shall use its best efforts to cause beneficial and record
title to such assets to be vested in the Partnership as soon as reasonably practicable. All
Partnership assets shall be recorded as the property of the Partnership in its books and records,
irrespective of the name in which legal title to such Partnership assets is held.

Section 7.11 Reliance by Third Parties

          Notwithstanding anything to the contrary in this Agreement, any Person dealing with the
Partnership shall be entitled to assume that the General Partner has full power and authority to
encumber, sell or otherwise use in any manner any and all assets of the Partnership and to enter
into any contracts on behalf of the Partnership, and such Person shall be entitled to deal with the
General Partner as if it were the Partnership’s sole party in interest, both legally and
beneficially. Each Limited Partner hereby waives any and all defenses or other remedies which may
be available against such Person to contest, negate or disaffirm any action of the General Partner
in connection with any such dealing. In no event shall any Person dealing with the General Partner
or its representatives be obligated to ascertain that the terms of this Agreement have been
complied with or to inquire into the necessity or expedience of any act or action of the General
Partner or its representatives. Each and every certificate, document or other instrument executed
on behalf of the Partnership by the General Partner or its representatives shall be conclusive
evidence in favor of any and every Person relying thereon or claiming thereunder that (i) at the
time of the execution and delivery of such certificate, document or instrument, this Agreement was
in full force and effect, (ii) the Person executing and delivering such certificate, document or
instrument was duly authorized and empowered to do so for and on behalf of the Partnership and
(iii) such certificate, document or instrument was duly executed and delivered in accordance with
the terms and provisions of this Agreement and is binding upon the Partnership.

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Section 7.12 Management Assistance Provided by Special General Partner

          In addition to the requirement to obtain the Consent of the Special General Partner with
respect to certain matters as provided for in this Agreement, the Special General Partner shall
provide consulting services and assistance to the Partnership at various times, in conjunction with
the Advisor, for no additional consideration, on matters relating to the following:

	 	(1)	 	the strategic planning of the Partnership;
	 
	 	(2)	 	the creation of business plans of the Partnership;
	 
	 	(3)	 	the sale, merger, or the sale of substantially all of the assets, of the Partnership; and
	 
	 	(4)	 	any other matters concerning the Partnership as determined appropriate by the General
Partner and the Special General Partner.

ARTICLE 8.

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

Section 8.1 Limitation of Liability

          The Limited Partners shall have no liability under this Agreement except as expressly provided
in this Agreement or under the Act.

Section 8.2 Management of Business

          No Limited Partner or Assignee (other than the General Partner, any of its Affiliates or any
officer, director, employee, partner, agent or trustee of the General Partner, the Partnership or
any of their Affiliates, in their capacity as such) shall take part in the operations, management
or control (within the meaning of the Act) of the Partnership’s business, transact any business in
the Partnership’s name or have the power to sign documents for or otherwise bind the Partnership.
The transaction of any such business by the General Partner, any of its Affiliates or any officer,
director, employee, partner, agent or trustee of the General Partner, the Partnership or any of
their Affiliates, in their capacity as such, shall not affect, impair or eliminate the limitations
on the liability of the Limited Partners or Assignees under this Agreement.

Section 8.3 Outside Activities of Limited Partners

          Subject to any agreements entered into by a Limited Partner or its Affiliates with the General
Partner, Partnership or a Subsidiary, any Limited Partner and any officer, director, employee,
agent, trustee, Affiliate or stockholder of any Limited Partner shall be entitled to and may have
business interests and engage in business activities in addition to those relating to the
Partnership, including business interests and activities in direct competition with the Partnership
or that are enhanced by the activities of the Partnership. Neither the Partnership nor any Partners
shall have any rights by virtue of this Agreement in any business ventures of any Limited Partner
or Assignee. Subject to such agreements, none of the Limited Partners nor any other Person shall
have any rights by virtue of this Agreement or the partnership relationship established hereby in
any business ventures of any other Person, other than the Limited Partners benefiting from the
business conducted by the General Partner, and such Person shall have no obligation pursuant to
this Agreement to offer any interest in any such business ventures to the Partnership, any Limited
Partner or any such other Person, even if such opportunity is of a character which, if presented to
the Partnership, any Limited Partner or such other Person, could be taken by such Person.

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Section 8.4 Return of Capital

          Except pursuant to the rights of Redemption set forth in Section 8.6, no Limited
Partner shall be entitled to the withdrawal or return of his or her Capital Contribution, except to
the extent of distributions made pursuant to this Agreement or upon termination of the Partnership
as provided herein. No Limited Partner or Assignee shall have priority over any other Limited
Partner or Assignee either as to the return of Capital Contributions, or as otherwise expressly
provided in this Agreement, or as to profits, losses, distributions or credits.

Section 8.5 Rights of Limited Partners Relating to the Partnership

     A. In addition to other rights provided by this Agreement or by the Act, and except as limited
by Section 8.5.C, each Limited Partner shall have the right, for a purpose reasonably
related to such Limited Partner’s interest as a limited partner in the Partnership, upon written
demand with a statement of the purpose of such demand and at such Limited Partner’s expense:

          (1) to obtain a copy of the most recent annual and quarterly reports filed with the Securities
and Exchange Commission by the General Partner pursuant to the Exchange Act, and each communication
sent to the stockholders of the General Partner;

          (2) to obtain a copy of the Partnership’s federal, state and local income tax returns for each
Partnership Year;

          (3) to obtain a current list of the name and last known business, residence or mailing address
of each Partner;

          (4) to obtain a copy of this Agreement and the Certificate and all amendments thereto,
together with executed copies of all powers of attorney pursuant to which this Agreement, the
Certificate and all amendments thereto have been executed; and

          (5) to obtain true and full information regarding the amount of cash and a description and
statement of any other property or services contributed by each Partner and which each Partner has
agreed to contribute in the future, and the date on which each became a Partner.

     B. The Partnership shall notify each Limited Partner in writing of any adjustment made in the
calculation of the REIT Shares Amount within a reasonable time after the date such change becomes
effective.

     C. Notwithstanding any other provision of this Section 8.5, the General Partner may
keep confidential from the Limited Partners, for such period of time as the General Partner
determines in its sole and absolute discretion to be reasonable, any information that (i) the
General Partner believes to be in the nature of trade secrets or other information the disclosure
of which the General Partner in good faith believes is not in the best interests of the Partnership
or (ii) the Partnership or the General Partner is required by law or by agreements with
unaffiliated third parties to keep confidential.

Section 8.6 Redemption Rights

     A. At any time after one year following the date of issuance of any OP Units to a Limited
Partner or a Special General Partner, such Partner shall have the right (subject to the terms and
conditions set forth herein and in any other such agreement, as applicable) to require the
Partnership to redeem all or a portion of the OP Units held by such Partner (such OP Units being
hereafter referred to as “Tendered Units”) in exchange for the Cash Amount (a
“Redemption”); provided that the terms of such OP Units do not provide that such OP Units
are not entitled to a right of Redemption. Unless otherwise expressly provided in this Agreement or
in a separate agreement entered into between the Partnership and the holders of such OP

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Units, all OP Units shall be entitled to a right of Redemption hereunder. The Tendering Partner
shall have no right, with respect to any OP Units so redeemed, to receive any distributions paid on
or after the Specified Redemption Date. Any Redemption shall be exercised pursuant to a Notice of
Redemption delivered to the General Partner by the Special General Partner or Limited Partner who
is exercising the right (the “Tendering Partner”). The Cash Amount shall be payable to the
Tendering Partner within ten (10) days of the Specified Redemption Date in accordance with the
instructions set forth in the Notice of Redemption.

     B. Notwithstanding Section 8.6.A above, if the Special General Partner or a Limited
Partner has delivered to the General Partner a Notice of Redemption then the General Partner may,
in its sole and absolute discretion (subject to the limitations on ownership and transfer of REIT
Shares set forth in the Charter), elect to acquire some or all of the Tendered Units from the
Tendering Partner in exchange for the REIT Shares Amount (as of the Specified Redemption Date) and,
if the General Partner so elects, the Tendering Partner shall sell the Tendered Units to the
General Partner in exchange for the REIT Shares Amount. In such event, the Tendering Partner shall
have no right to cause the Partnership to redeem such Tendered Units. The General Partner shall
promptly give such Tendering Partner written notice of its election, and the Tendering Partner may
elect to withdraw its redemption request at any time prior to the acceptance of the cash or REIT
Shares Amount by such Tendering Partner.

     C. The REIT Shares Amount, if applicable, shall be delivered as duly authorized, validly
issued, fully paid and nonassessable REIT Shares and, if applicable, free of any pledge, lien,
encumbrance or restriction, other than those provided in the Charter, the Bylaws of the General
Partner, the Securities Act, relevant state securities or blue sky laws and any applicable
registration rights agreement with respect to such REIT Shares entered into by the Tendering
Partner. Notwithstanding any delay in such delivery (but subject to Section 8.6.E), the
Tendering Partner shall be deemed the owner of such REIT Shares for all purposes, including without
limitation, rights to vote or consent, and receive dividends, as of the Specified Redemption Date.

     D. The Special General Partner and each Limited Partner covenants and agrees with the General
Partner that all Tendered Units shall be delivered to the General Partner free and clear of all
liens, claims and encumbrances whatsoever and should any such liens, claims and/or encumbrances
exist or arise with respect to such Tendered Units, the General Partner shall be under no
obligation to acquire the same. The Special General Partner and each Limited Partner further
agrees that, in the event any state or local property transfer tax is payable as a result of the
transfer of its Tendered Units to the General Partner (or its designee), such Partner shall assume
and pay such transfer tax.

     E. Notwithstanding the provisions of Section 8.6.A, 8.6.B, 8.6.C or
any other provision of this Agreement, the Special General Partner or a Limited Partner (i) shall
not be entitled to effect a Redemption for cash or an exchange for REIT Shares to the extent the
ownership or right to acquire REIT Shares pursuant to such exchange by such Partner on the
Specified Redemption Date could cause such Partner or any other Person, or, in the opinion of
counsel selected by the General Partner, may cause such Partner or any other Person, to violate the
restrictions on ownership and transfer of REIT Shares set forth in the Charter and (ii) shall have
no rights under this Agreement to acquire REIT Shares which would otherwise be prohibited under the
Charter. To the extent any attempted Redemption or exchange for REIT Shares would be in violation
of this Section 8.6.E, it shall be null and void ab initio and such Partner shall not
acquire any rights or economic interest in the cash otherwise payable upon such Redemption or the
REIT Shares otherwise issuable upon such exchange.

     F. Notwithstanding anything herein to the contrary (but subject to Section 8.6.E),
with respect to any Redemption or exchange for REIT Shares pursuant to this Section 8.6:

          (1) All OP Units acquired by the General Partner pursuant thereto shall automatically, and
without further action required, be converted into and deemed to be Limited Partner Interests
comprised of the same number and class of OP Units.

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          (2) The Special General Partner and each Limited Partner may not effect a Redemption for less
than one thousand (1,000) OP Units or, if such Partner holds less than one thousand (1,000) OP
Units, such Partner may effect a Redemption only with respect to all OP Units held by such Partner.

          (3) A Tendering Partner may not effect more than two (2) Redemptions in a single calendar
year.

          (4) Without the consent of the General Partner, the Special General Partner and each Limited
Partner may not effect a Redemption during the period after the Partnership Record Date with
respect to a distribution and before the record date established by the General Partner for a
distribution to its stockholders of some or all of its portion of such distribution.

          (5) The consummation of any Redemption or exchange for REIT Shares shall be subject to the
expiration or termination of the applicable waiting period, if any, under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended.

          (6) Each Tendering Partner shall continue to own all OP Units subject to any Redemption or
exchange for REIT Shares, and be treated as a Partner with respect to such OP Units for all
purposes of this Agreement, until such OP Units are transferred to the General Partner and paid for
or exchanged on the Specified Redemption Date. Until a Specified Redemption Date, the Tendering
Partner shall have no rights as a stockholder of the General Partner with respect to such Tendering
Partner’s OP Units.

     G. In the event that the Partnership issues additional Partnership Interests to any Additional
Limited Partner pursuant to Section 4.3.B, the General Partner shall make such revisions to
this Section 8.6 as it determines are necessary to reflect the issuance of such additional
Partnership Interests.

     H. Notwithstanding any other provision of this Agreement, the General Partner is authorized to
take any action that it determines to be necessary or appropriate to cause the partnership to
comply with any withholding requirements established under the Code or any other federal, state or
local law that apply upon a Redemption or exchange of Tendered Units. If a Tendering Partner
believes that it is exempt from withholding upon a Redemption or exchange of Tendered Units, such
Partner must furnish the General Partner a FIRPTA certificate or other documentation requested by
the General Partner is a form acceptable to the General Partner. If the Partnership or the General
Partner is required to withhold and pay over to any taxing authority any amount upon a Redemption
or exchange of Tendered Units and the Cash Amount or the REIT Shares Amount, as the case may be,
equals or exceeds the amount of tax required to be withheld, the amount withheld shall be treated
as an amount received by such Partner in redemption of its Tendered Units. If the Cash Amount or
the REIT Shares Amount, as the case may be, is less than the amount of tax required to be withheld,
the Tendering Partner shall not receive any Cash Amount or REIT Shares Amount, and the Tendering
Partner shall contribute the excess of the amount of tax required to be withheld over the Cash
Amount or REIT Shares Amount before such excess taxes are required to be paid to the taxing
authority.

ARTICLE 9.

BOOKS, RECORDS, ACCOUNTING AND REPORTS

Section 9.1 Records and Accounting

          The General Partner shall keep, or cause to be kept, at the principal office of the
Partnership appropriate books and records with respect to the Partnership’s business, including
without limitation, all books and records necessary to provide to the Special General Partner and
the Limited Partners any information, lists and copies of documents required to be provided
pursuant to Section 9.3. Any records maintained by or on behalf of the Partnership in the
regular course of its business may be kept on, or be in the form of any information storage device,
provided, that the records so maintained are convertible into clearly legible
written form within a reasonable period of time. The books of the Partnership shall be

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maintained, for financial and tax reporting purposes, on an accrual basis in accordance with
generally accepted accounting principles.

Section 9.2 Fiscal Year

          The fiscal year of the Partnership shall be the calendar year.

Section 9.3 Reports

     A. As soon as practicable, but in no event later than 105 days after the close of each
Partnership Year, or such earlier date as they are filed with the Securities and Exchange
Commission, the General Partner shall cause to be delivered to the Special General Partner and each
Limited Partner as of the close of the Partnership Year, an annual report containing financial
statements of the Partnership, or of the General Partner if such statements are prepared solely on
a consolidated basis with the General Partner, for such Partnership Year, presented in accordance
with generally accepted accounting principles, such statements to be audited by a nationally
recognized firm of independent public accountants selected by the General Partner.

     B. As soon as practicable, but in no event later than 45 days after the close of each calendar
quarter (except the last calendar quarter of each year), or such earlier date as they are filed
with the Securities and Exchange Commission, the General Partner shall cause to be delivered to the
Special General Partner and each Limited Partner as of the last day of the calendar quarter, a
report containing unaudited financial statements of the Partnership, or of the General Partner, if
such statements are prepared solely on a consolidated basis with the applicable law or regulation,
or as the General Partner determines to be appropriate.

Section 9.4 Nondisclosure of Certain Information

          Notwithstanding the provisions of Sections 9.1 and 9.3, the General Partner
may keep confidential from the Special General Partner and the Limited Partners any information
that the General Partner believes to be in the nature of trade secrets or other information the
disclosure of which the General Partner in good faith believes is not in the best interest of the
Partnership or which the Partnership is required by law or by agreements with unaffiliated third
parties to keep confidential.

ARTICLE 10.

TAX MATTERS

Section 10.1 Preparation of Tax Returns

          The General Partner shall arrange for the preparation and timely filing of all returns of
Partnership income, gains, deductions, losses and other items required of the Partnership for
federal and applicable state income tax purposes and shall use all reasonable efforts to furnish,
within 90 days of the close of each taxable year, the tax information reasonably required by the
Special General Partner and the Limited Partners for federal and applicable state income tax
reporting purposes. The Special General Partner and each Limited Partner shall promptly provide
the General Partner with any information reasonably requested by the General Partner relating to
any Contributed Property contributed (directly or indirectly) by such Partner to the Partnership.

Section 10.2 Tax Elections

          Except as otherwise provided herein, the General Partner shall, in its sole and absolute
discretion, determine whether to make any available election pursuant to the Code, including the
election under Section 754 of the Code. The General Partner shall have the right to seek to revoke
any such election (including without limitation, any election under Section 754 of the Code) upon
the General Partner’s determination in its sole and absolute discretion that such revocation is the
best interests of the Partners.

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Section 10.3 Tax Matters Partner

     A. The General Partner shall be the “tax matters partner” of the Partnership for
federal income tax purposes. Pursuant to Section 6230(e) of the Code, upon receipt of notice from
the IRS of the beginning of an administrative proceeding with respect to the Partnership, the tax
matters partner shall furnish the IRS with the name, address and profit interest of the Special
General Partner and each of the Limited Partners and Assignees; provided, however,
that such information is provided to the Partnership by the Partners and Assignees.

     B. The tax matters partner is authorized, but not required:

          (1) to enter into any settlement with the IRS with respect to any administrative or judicial
proceedings for the adjustment of Partnership items required to be taken into account by a Partner
for income tax purposes (such administrative proceedings being referred to as a “tax audit”
and such judicial proceedings being referred to as “judicial review”), and in the
settlement agreement the tax matters partner may expressly state that such agreement shall bind all
Partners, except that such settlement agreement shall not bind any Partner (i) who (within the time
prescribed pursuant to the Code and Regulations) files a statement with the IRS providing that the
tax matters partner shall not have the authority to enter into a settlement agreement on behalf of
such Partner or (ii) who is a “notice partner” (as defined in Section 6231 of the Code) or
a member of a “notice group” (as defined in Section 6223(b)(2) of the Code);

          (2) in the event that a notice of a final administrative adjustment at the Partnership level
of any item required to be taken into account by a Partner for tax purposes (a “final
adjustment”) is mailed to the tax matters partner, to seek judicial review of such final
adjustment, including the filing of a petition for readjustment with the Tax Court or the United
States Claims Court, or the filing of a complaint for refund with the District Court of the United
States for the district in which the Partnership’s principal place of business is located;

          (3) to intervene in any action brought by any other Partner for judicial review of a final
adjustment;

          (4) to file a request for an administrative adjustment with the IRS at any time and, if any
part of such request is not allowed by the IRS, to file an appropriate pleading (petition or
complaint) for judicial review with respect to such request;

          (5) to enter into an agreement with the IRS to extend the period for assessing any tax which
is attributable to any item required to be taken into account by a Partner for tax purposes, or an
item affected by such item; and

          (6) to take any other action on behalf of the Partners of the Partnership in connection with
any tax audit or judicial review proceeding to the extent permitted by applicable law or
regulations.

          The taking of any action and the incurring of any expense by the tax matters partner in
connection with any such proceeding, except to the extent required by law, is a matter in the sole
and absolute discretion of the tax matters partner and the provisions relating to indemnification
of the General Partner set forth in Section 7.7 shall be fully applicable to the tax
matters partner in its capacity as such.

     C. The tax matters partner shall receive no compensation for its services. All third party
costs and expenses incurred by the tax matters partner in performing its duties as such (including
legal and accounting fees) shall be borne by the Partnership. Nothing herein shall be construed to
restrict the Partnership from engaging an accounting firm to assist the tax matters partner in
discharging its duties hereunder, so long as the compensation paid by the Partnership for such
services is reasonable.

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Section 10.4 Organizational Expenses

          The Partnership shall elect to deduct expenses, if any, incurred by it in organizing the
Partnership as provided in Section 709 of the Code.

Section 10.5 Withholding

          The Special General Partner and each Limited Partner hereby authorize the Partnership to
withhold from or pay on behalf of or with respect to such Partner any amount of federal, state,
local, or foreign taxes that the General Partner determines that the Partnership is required to
withhold or pay with respect to any amount distributable or allocable to such Partner pursuant to
this Agreement, including, without limitation, any taxes required to be withheld or paid by the
Partnership pursuant to Sections 1441, 1442, 1445 or 1446 of the Code. Any amount paid on behalf of
or with respect to the Special General Partner or a Limited Partner shall constitute a receivable
of the Partnership from such Partner, which receivable shall be paid by such Partner within 15 days
after notice from the General Partner that such payment must be made unless (i) the Partnership
withholds such payment from a distribution which would otherwise be made to the Partner or (ii) the
General Partner determines, in its sole and absolute discretion, that such payment may be satisfied
out of the available funds of the Partnership which would, but for such payment, be distributed to
the Partner. Any amounts withheld pursuant to the foregoing clauses (i) or (ii) shall be treated as
having been distributed to such Partner. The Special General Partner and each Limited Partner
hereby unconditionally and irrevocably grants to the Partnership a security interest in such
Partner’s Partnership Interest to secure such Partner’s obligation to pay to the Partnership any
amounts required to be paid pursuant to this Section 10.5. Any amounts payable by the
Special General Partner or a Limited Partner hereunder shall bear interest at the base rate on
corporate loans at large United States money center commercial banks, as published from time to
time in the Wall Street Journal, plus two percentage points (but not higher than the
maximum lawful rate) from the date such amount is due (i.e., 15 days after demand) until
such amount is paid in full. The Special General Partner and each Limited Partner shall take such
actions as the Partnership or the General Partner shall request in order to perfect or enforce the
security interest created hereunder.

ARTICLE 11.

TRANSFERS AND WITHDRAWALS

Section 11.1 Transfer

     A. The term “transfer,” when used in this Article 11 with respect to a
Partnership Interest, shall be deemed to refer to a transaction by which a Partner purports to
assign its Partnership Interest to another Person and includes a sale, assignment, gift (outright
or in trust), pledge, encumbrance, hypothecation, mortgage, exchange or any other disposition by
law or otherwise. The term “transfer” when used in this Article 11 does not include any
Redemption or exchange for REIT Shares pursuant to Section 8.6, except as otherwise
provided herein. No part of the interest of a Limited Partner shall be subject to the claims of any
creditor, any spouse for alimony or support, or to legal process, and may not be voluntarily or
involuntarily alienated or encumbered except as may be specifically provided for in this Agreement
or consented to by the General Partner and the Special General Partner.

     B. No Partnership Interest shall be transferred, in whole or in part, except in accordance
with the terms and conditions set forth in this Article 11. Any transfer or purported
transfer of a Partnership Interest not made in accordance with this Article 11 shall be
null and void ab initio unless otherwise consented to by the General Partner and the Special
General Partner in their sole and absolute discretion.

Section 11.2 Transfer of the Partnership Interest of the General Partner and the Special
General Partner

     A. The General Partner shall not (i) withdraw from the Partnership, (ii) directly or
indirectly transfer all or any portion of its interest in the Partnership, or (iii) engage in any
merger, consolidation, or other

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combination with or into another Person, sale of all or substantially all of its assets or any
reclassification or recapitalization of its outstanding equity interests (an “Extraordinary
Transaction”), without the Consent of the Partners, which may be given or withheld by each Partner
in his, her or its sole and absolute discretion. In addition, if an Extraordinary Transaction
would result in the termination of the Advisory Agreement, the Partnership must either (i) purchase
the Special General Partner Interest as provided under Section 11.7, or (ii) obtain the
Consent of the Special General Partner. Upon any transfer of a Partnership Interest in accordance
with the provisions of this Section 11.2, the transferee shall become a Substitute General
Partner for all purposes herein, and shall be vested with the powers and rights of the transferor
General Partner, and shall be liable for all obligations and responsible for all duties of the
General Partner, once such transferee has executed such instruments as may be necessary to
effectuate such admission and to confirm the agreement of such transferee to be bound by all the
terms and provisions of this Agreement with respect to the Partnership Interest so acquired. It is
a condition to any transfer otherwise permitted hereunder that the transferee assumes, by operation
of law or express agreement, all of the obligations of the transferor General Partner under this
Agreement with respect to such transferred Partnership Interest, and no such transfer (other than
pursuant to a statutory merger or consolidation wherein all obligations and liabilities of the
transferor General Partner are assumed by a successor corporation by operation of law) shall
relieve the transferor General Partner of its obligations under this Agreement without the Consent
of the Limited Partners, in their reasonable discretion. In the event the General Partner withdraws
from the Partnership in violation of this Agreement or otherwise, or otherwise dissolves or
terminates, or upon the Incapacity of the General Partner, all of the remaining Partners may elect
to continue the Partnership business by selecting a Substitute General Partner in accordance with
the Act

     B. Notwithstanding any other provision of this Agreement, the Special General Partner shall
not transfer all or any portion of its Partnership Interest to any transferee without the consent
of the General Partner, which consent may be withheld in the sole and absolute discretion of the
General Partner. Notwithstanding the preceding sentence, however, the Special General Partner
shall have the right, at any time, to transfer its Partnership Interest to the General Partner or
to an Affiliate of the General Partner.

Section 11.3 Limited Partners’ Rights to Transfer

     A. Prior to the first anniversary of the Effective Date, no Limited Partner shall transfer all
or any portion of its Partnership Interest to any transferee without the consent of the General
Partner and the Special General Partner, which consent may be withheld in their sole and absolute
discretion; provided, however, that any Limited Partner may, at any time, without
the consent of the General Partner and the Special General Partner, (i) transfer all or any portion
of its Partnership Interest to the General Partner, (ii) transfer all or any portion of its
Partnership Interest to an Affiliate, another original Limited Partner or to an Immediate Family
Member, subject to the provisions of Section 11.6, (iii) transfer all or any portion of its
Partnership Interest to a trust for the benefit of a charitable beneficiary or to a charitable
foundation, subject to the provisions of Section 11.6, and (iv) subject to the provisions
of Section 11.6, pledge (a “Pledge”) all or any portion of its Partnership Interest
to a lending institution, which is not an Affiliate of such Limited Partner, as collateral or
security for a bona fide loan or other extension of credit, and transfer such pledged Partnership
Interest to such lending institution in connection with the exercise of remedies under such loan or
extension or credit, and the transfer of such pledged Partnership Interest by the lender to any
transferee. After such anniversary, each Limited Partner or Assignee (resulting from a transfer
made pursuant to clauses (i)-(iv) of the proviso of the preceding sentence) shall have the right to
transfer all or any portion of its Partnership Interest, subject to the provisions of Section
11.6 and the satisfaction of each of the following conditions (in addition to the right of each
such Limited Partner or Assignee to continue to make any such transfer permitted by clauses
(i)-(iv) of such proviso without satisfying either of the following conditions):

          (1) General Partner Right of First Refusal. The transferring Partner shall give
written notice of the proposed transfer to the General Partner, which notice shall state (i) the
identity of the proposed transferee, and (ii) the amount and type of consideration proposed to be
received for the transferred OP Units. The General Partner shall have ten (10) business days upon
which to give the transferring Partner notice of its

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election to acquire the OP Units on the proposed terms. If it so elects, it shall purchase the OP
Units on such terms within ten (10) business days after giving notice of such election. If it does
not so elect, the transferring Partner may transfer such OP Units to a third party, on economic
terms no more favorable to the transferee than the proposed terms, subject to the other conditions
of this Section 11.3.

          (2) Qualified Transferee. Any transfer of a Partnership Interest shall be made only to
Qualified Transferees. It is a condition to any transfer otherwise permitted hereunder that the
transferee assumes by operation of law or express agreement all of the obligations of the
transferor Limited Partner under this Agreement with respect to such transferred Partnership
Interest and no such transfer (other than pursuant to a statutory merger or consolidation wherein
all obligations and liabilities of the transferor Partner are assumed by a successor corporation by
operation of law) shall relieve the transferor Partner of its obligations under this Agreement
without the approval of the General Partner, in its reasonable discretion. Notwithstanding the
foregoing, any transferee of any transferred Partnership Interest shall be subject to any and all
ownership limitations contained in the Charter, which may limit or restrict such transferee’s
ability to exercise its Redemption rights, and to the representations in Section 3.4.D. Any
transferee, whether or not admitted as a Substituted Limited Partner, shall take subject to the
obligations of the transferor hereunder. Unless admitted as a Substituted Limited Partner, no
transferee, whether by a voluntary transfer, by operation of law or otherwise, shall have any
rights hereunder, other than the rights of an Assignee as provided in Section 11.5.

     B. If a Limited Partner is subject to Incapacity, the executor, administrator, trustee,
committee, guardian, conservator, or receiver of such Limited Partner’s estate shall have all the
rights of a Limited Partner, but not more rights than those enjoyed by other Limited Partners, for
the purpose of settling or managing the estate, and such power as the Incapacitated Limited Partner
possessed to transfer all or any part of his or its interest in the Partnership. The Incapacity of
a Limited Partner, in and of itself, shall not dissolve or terminate the Partnership.

     C. The General Partner may prohibit any transfer otherwise permitted under Section
11.3 by a Limited Partner of his or her OP Units if, in the opinion of legal counsel to the
Partnership, such transfer would require the filing of a registration statement under the
Securities Act by the Partnership or would otherwise violate any federal or state securities laws
or regulations applicable to the Partnership or the Partnership Unit.

Section 11.4 Substituted Limited Partners

     A. No Limited Partner shall have the right to substitute a transferee as a Limited Partner in
his or her place (including any transferee permitted by Section 11.3). The General Partner
shall, however, have the right to consent to the admission of a transferee of the interest of a
Limited Partner pursuant to this Section 11.4 as a Substituted Limited Partner, which
consent may be given or withheld by the General Partner in its sole and absolute discretion. The
General Partner’s failure or refusal to permit a transferee of any such interests to become a
Substituted Limited Partner shall not give rise to any cause of action, whether at law or in
equity, against the Partnership or any Partner.

     B. A transferee who has been admitted as a Substituted Limited Partner in accordance with this
Article 11 shall have all the rights and powers and be subject to all the restrictions and
liabilities of a Limited Partner under this Agreement. The admission of any transferee as a
Substituted Limited Partner shall be subject to the transferee executing and delivering to the
General Partner an acceptance of all of the terms and conditions of this Agreement (including
without limitation, the provisions of Section 2.4 and such other documents or instruments
as may be required to effect the admission), each in form and substance satisfactory to the General
Partner) and the acknowledgment by such transferee that each of the representations and warranties
set forth in Section 3.4 are true and correct with respect to such transferee as of the
date of the transfer of the Partnership Interest to such transferee and will continue to be true to
the extent required by such representations and warranties.

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     C. Upon the admission of a Substituted Limited Partner, the General Partner shall amend
Exhibit A to reflect the name, address, number of OP Units, and Percentage Interest of such
Substituted Limited Partner and to eliminate or adjust, if necessary, the name, address and
interest of the predecessor of such Substituted Limited Partner.

Section 11.5 Assignees

          If the General Partner, in its sole and absolute discretion, does not consent to the admission
of any permitted transferee under Section 11.3 as a Substituted Limited Partner, as
described in Section 11.4, such transferee shall be considered an Assignee for purposes of
this Agreement. An Assignee shall be entitled to all the rights of an assignee of a limited
partnership interest under the Act, including the right to receive distributions from the
Partnership and the share of Net Income, Net Loss, gain and loss attributable to the OP Units
assigned to such transferee, the rights to transfer the OP Units provided in this Article
11, the right of Redemption provided in Section 8.6, but shall not be deemed to be a
holder of OP Units for any other purpose under this Agreement, and shall not be entitled to effect
a Consent with respect to such OP Units on any matter presented to the Limited Partners for
approval (such Consent remaining with the transferor Limited Partner). In the event any such
transferee desires to make a further assignment of any such Partnership Units, such transferee
shall be subject to all the provisions of this Article 11 to the same extent and in the
same manner as any Limited Partner desiring to make an assignment of OP Units. Notwithstanding
anything contained in this Agreement to the contrary, as a condition to becoming an Assignee, any
prospective Assignee must first execute and deliver to the Partnership an acknowledgment that each
of the representations and warranties set forth in Section 3.4 are true and correct with
respect to such prospective Assignee as of the date of the prospective assignment of the
Partnership Interest to such prospective Assignee and will continue to be true to the extent
required by such representations or warranties.

Section 11.6 General Provisions

     A. No Limited Partner may withdraw from the Partnership other than as a result of (i) a
permitted transfer of all of such Limited Partner’s OP Units in accordance with this Article
11 and the transferee(s) of such Partnership Units being admitted to the Partnership as a
Substituted Limited Partner or (ii) pursuant to the exercise of its right of Redemption of all of
such Limited Partner’s OP Units under Section 8.6; provided that after such transfer,
exchange or redemption such Limited Partner owns no Partnership Interest.

     B. Any Limited Partner who shall transfer all of such Limited Partner’s OP Units in a transfer
permitted pursuant to this Article 11 where such transferee was admitted as a Substituted
Limited Partner or pursuant to the exercise of its rights of Redemption of all of such Limited
Partner’s OP Units under Section 8.6 shall cease to be a Limited Partner; provided that
after such transfer, exchange or redemption such Limited Partner owns no Partnership Interest.

     C. Transfers pursuant to this Article 11 may only be made on the first day of a fiscal
quarter of the Partnership, unless the General Partner otherwise agrees.

     D. If any Partnership Interest is transferred, assigned or redeemed during any quarterly
segment of the Partnership’s Partnership Year in compliance with the provisions of this Article
11 or transferred or redeemed pursuant to Section 8.6, on any day other than the first
day of a Partnership Year, then Net Income, Net Loss, each item thereof and all other items
attributable to such Partnership Interest for such Partnership Year shall be divided and allocated
between the transferor Partner and the transferee Partner by taking into account their varying
interests during the Partnership Year using a method selected by the General Partner that is in
accordance with Section 706(d) of the Code. Except as otherwise agreed by the General Partner, all
distributions of Available Cash with respect to which the Partnership Record Date is before the
date of such transfer, assignment, exchange or redemption shall be made to the transferor

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Partner, and all distributions of Available Cash thereafter, in the case of a transfer or
assignment other than a redemption, shall be made to the transferee Partner.

     E. In addition to any other restrictions on transfer herein contained, including without
limitation the provisions of this Article 11, in no event may any transfer or assignment of
a Partnership Interest by any Partner (including pursuant to a Redemption or exchange for REIT
Shares by the Partnership or the General Partner) be made (i) to any person or entity who lacks the
legal right, power or capacity to own a Partnership Interest; (ii) in violation of applicable law;
(iii) except with the consent of the General Partner, which may be given or withheld in its sole
and absolute discretion, of any component portion of a Partnership Interest, such as the Capital
Account, or rights to distributions, separate and apart from all other components of a Partnership
Interest; (iv) except with the consent of the General Partner, which may be given or withheld in
its sole and absolute discretion, if in the opinion of legal counsel to the Partnership such
transfer could cause a termination of the Partnership for federal or state income tax purposes
(except as a result of the Redemption or exchange for REIT Shares of all Partnership Interests held
by all Limited Partners or pursuant to a transaction expressly permitted under Section
11.2); (v) if in the opinion of counsel to the Partnership such transfer could cause the
Partnership to cease to be classified as a partnership for federal income tax purposes (except as a
result of the Redemption or exchange for REIT Shares of all Partnership Interests held by all
Limited Partners); (vi) if such transfer could, in the opinion of counsel to the Partnership, cause
the Partnership to become, with respect to any employee benefit plan subject to Title I of ERISA, a
“party-in-interest” (as defined in Section 3(14) of ERISA) or a “disqualified person” (as defined
in Section 4975(c) of the Code); (vii) if such transfer could, in the opinion of counsel to the
Partnership, cause any portion of the assets of the Partnership to constitute assets of any
employee benefit plan pursuant to Department of Labor Regulations Section 2510.2-101; (viii) if
such transfer requires the registration of such Partnership Interest pursuant to any applicable
federal or state securities laws; (ix) except with the consent of the General Partner, which may be
given or withheld in its sole and absolute discretion, if such transfer (1) could be treated as
effectuated through an “established securities market” or a “secondary market” (or the substantial
equivalent thereof) within the meaning of Section 7704 of the Code, (2) could cause the Partnership
to become a “publicly traded partnership,” as such term is defined in Sections 469(k)(2) or 7704(b)
of the Code, (3) could be in violation of Section 3.4.E(5), or (4) could cause the
Partnership to fail one or more of the Safe Harbors (as defined below); (x) if such transfer
subjects the Partnership to be regulated under the Investment Company Act of 1940, the Investment
Advisors Act of 1940 or the Employee Retirement Income Security Act of 1974, each as amended; (xi)
except with the consent of the General Partner, which may be given or withheld in its sole
discretion, if the transferee or assignee of such Partnership Interest is unable to make the
representations set forth in Section 3.4.C; (xii) if such transfer is made to a lender to
the Partnership or any Person who is related (within the meaning of Section 1.752-4(b) of the
Regulations) to any lender to the Partnership whose loan constitutes a Nonrecourse Liability,
except with the consent of the General Partner, which may be given or withheld in its sole and
absolute discretion; and provided, that, as a condition to granting such consent the lender may be
required to enter into an arrangement with the Partnership and the General Partner to redeem or
exchange for the REIT Shares Amount any OP Units in which a security interest is held
simultaneously with the time at which such lender would be deemed to be a partner in the
Partnership for purposes of allocating liabilities to such lender under Section 752 of the Code; or
(xiii) if in the opinion of legal counsel for the Partnership such transfer could adversely affect
the ability of the General Partner to continue to qualify as a REIT or, except with the consent of
the General Partner, which may be given or withheld in its sole and absolute discretion, subject
the General Partner to any additional taxes under Section 857 or Section 4981 of the Code.

     F. The General Partner shall monitor the transfers of interests in the Partnership (including
any acquisition of OP Units by the Partnership or the General Partner) to determine (i) if such
interests could be treated as being traded on an “established securities market” or a “secondary
market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code and
(ii) whether such transfers of interests could result in the Partnership being unable to qualify
for the “safe harbors” set forth in Regulations Section 1.7704-1 (or such other guidance
subsequently published by the IRS setting forth safe harbors under which interests will not be
treated as “readily tradable on a secondary market (or the

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substantial equivalent thereof)” within the meaning of Section 7704 of the Code) (the “Safe
Harbors”). The General Partner shall have the authority (but shall not be required) to take any
steps it determines are necessary or appropriate in its sole and absolute discretion to prevent any
trading of interests which could cause the Partnership to become a “publicly traded partnership”
within the meaning of Code Section 7704, or any recognition by the Partnership of such transfers,
or to ensure that one or more of the Safe Harbors is met.

Section 11.7 Call Right Attributable to the Special General Partner Interest

     A. In the event of a “Trigger Event” (as defined in Section 11.7B hereof), the
Partnership shall have the right (the “Call Right”) to redeem all, or any portion, of the Special
General Partner Interest. The Partnership shall exercise the Call Right by providing the Special
General Partner with written notice of its desire to exercise the Call Right within sixty (60) days
of the occurrence of a Trigger Event. The purchase price to be paid by the Partnership for the
portion of the Special General Partner Interest that is subject to the Call Right shall equal the
fair market value of such Interest as determined by Appraisal, and, subject to Section 11.C
below, shall be paid in cash or in REIT Shares (at the option of the Special General Partner)
within one hundred twenty (120) days after the Partnership provides the written notice required
under this Section 11.7.A.

     B. For purposes of this Section 11.7, a Trigger Event means, at any time after the
second anniversary of the Effective Date, the:

	 	(1)	 	expiration of the Advisory Agreement with the consent of the
Advisor;
	 
	 	(2)	 	termination of the Advisory Agreement for any reason other
than by the Advisor if an Affiliate of the Advisor does not serve as the
advisor under any replacement advisory agreement; or
	 
	 	(3)	 	resignation of the Advisor under the Advisory Agreement for
“Good Reason” (as defined in the Advisory Agreement).

     C. In the event that the Partnership exercises the Call Right as a result of a termination of
the Advisory Agreement for “Cause” (as defined in the Advisory Agreement), the Partnership shall
have the option to redeem all or a portion of the Special General Partner Interest by issuing its
promissory note with (i) a term of five (5) years; (ii) annual installments of principal payable
ratably over the term of the note; and (iii) a market rate of interest.

Section 11.8 Put Right of General Partner

          The General Partner shall have the right at any time (the “GP Put Right”) to require the
Partnership to redeem any portion of the General Partner Interest for the purpose of providing the
General Partner with sufficient funds to enable it to make redemptions of its stock. The General
Partner shall exercise the GP Put Right at any time by providing the Partnership with written
notice of its desire to exercise the GP Put Right. The purchase price to be paid by the
Partnership for the portion of the General Partner Interest that the General Partner desires to be
redeemed shall equal the fair market value of such portion as determined by Appraisal, and shall be
paid in cash within one hundred twenty (120) days after the General Partner provides the written
notice required under this Section 11.8. In the event that the General Partner exercises
the GP Put Right, the OP Units held by the General Partner shall be reduced as appropriate.

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ARTICLE 12.

ADMISSION OF PARTNERS

Section 12.1 Admission of Successor General Partner

          A successor to all of the General Partner’s General Partner Interest pursuant to Section
11.2 who is proposed to be admitted as a successor General Partner shall be admitted to the
Partnership as the General Partner, effective upon such transfer. Any such transferee shall carry
on the business of the Partnership without dissolution. In each case, the admission shall be
subject to the successor General Partner executing and delivering to the Partnership an acceptance
of all of the terms and conditions of this Agreement and such other documents or instruments as may
be required to effect the admission. In the case of such admission on any day other than the first
day of a Partnership Year, all items attributable to the General Partner Interest for such
Partnership Year shall be allocated between the transferring General Partner and such successor as
provided in Article 11.

Section 12.2 Admission of Additional Limited Partners

     A. After the admission to the Partnership of the initial Limited Partners on the date hereof,
a Person who makes a Capital Contribution to the Partnership in accordance with this Agreement
shall be admitted to the Partnership as an Additional Limited Partner only upon furnishing to the
General Partner (i) evidence of acceptance in form satisfactory to the General Partner of all of
the terms and conditions of this Agreement, including, without limitation, the power of attorney
granted in Section 2.4 and (ii) such other documents or instruments as may be required in
the discretion of the General Partner in order to effect such Person’s admission as an Additional
Limited Partner.

     B. Notwithstanding anything to the contrary in this Section 12.2, no Person shall be
admitted as an Additional Limited Partner without the consent of the General Partner, which consent
may be given or withheld in the General Partner’s sole and absolute discretion. The admission of
any Person as an Additional Limited Partner shall become effective on the date upon which the name
of such Person is recorded on the books and records of the Partnership, following the receipt of
the Capital Contribution in respect of such Limited Partner and the consent of the General Partner
to such admission. If any Additional Limited Partner is admitted to the Partnership on any day
other than the first day of a Partnership Year, then Net Income, Net Loss, each item thereof and
all other items allocable among Partners and Assignees for such Partnership Year shall be allocated
among such Limited Partner and all other Partners and Assignees by taking into account their
varying interests during the Partnership Year using a method selected by the General Partner that
is in accordance with Section 706(d) of the Code. All distributions of Available Cash with respect
to which the Partnership Record Date is before the date of such admission shall be made solely to
Partners and Assignees other than the Additional Limited Partner (other than in its capacity as an
Assignee) and, except as otherwise agreed to by the Additional Limited Partners and the General
Partner, all distributions of Available Cash thereafter shall be made to all Partners and Assignees
including such Additional Limited Partner.

Section 12.3 Amendment of Agreement and Certificate of Limited Partnership

     For the admission to the Partnership of any Partner, the General Partner shall take all steps
necessary and appropriate under the Act to amend the records of the Partnership and, if necessary,
to prepare as soon as practical an amendment of this Agreement (including an amendment of Exhibit
A) and, if required by law, shall prepare and file an amendment to the Certificate and may for this
purpose exercise the power of attorney granted pursuant to Section 2.4.

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ARTICLE 13.

DISSOLUTION AND LIQUIDATION

Section 13.1 Dissolution

          The Partnership shall not be dissolved by the admission of Substituted Limited Partners or
Additional Limited Partners or by the admission of a successor General Partner in accordance with
the terms of this Agreement. Upon the withdrawal of the General Partner, any successor General
Partner (selected as described in Section 13.1.B below) shall continue the business of the
Partnership. The Partnership shall dissolve, and its affairs shall be wound up, upon the first to
occur of any of the following (each a “Liquidating Event”):

     A. the expiration of its term as provided in Section 2.5;

     B. an event of withdrawal of the General Partner, as defined in the Act, unless, within 90
days after the withdrawal, all of the remaining Partners agree in writing, in their sole and
absolute discretion, to continue the business of the Partnership and to the appointment, effective
as of the date of withdrawal, of a substitute General Partner;

     C. subject to compliance with Section 11.2 an election to dissolve the Partnership
made by the General Partner, in its sole and absolute discretion;

     D. entry of a decree of judicial dissolution of the Partnership pursuant to the provisions of
the Act;

     E. any sale or other disposition of all or substantially all of the assets of the Partnership
or a related series of transactions that, taken together, result in the sale or other disposition
of all or substantially all of the assets of the Partnership;

     F. the Incapacity of the General Partner, unless all of the remaining Partners in their sole
and absolute discretion agree in writing to continue the business of the Partnership and to the
appointment, effective as of a date prior to the date of such Incapacity, of a substitute General
Partner;

     G. the redemption or exchange for REIT Shares of all Partnership Interests (other than those
of the General Partner) pursuant to this Agreement; or

     H. a final and non-appealable judgment is entered by a court of competent jurisdiction ruling
that the General Partner is bankrupt or insolvent, or a final and non-appealable order for relief
is entered by a court with appropriate jurisdiction against the General Partner, in each case under
any federal or state bankruptcy or insolvency laws as now or hereafter in effect, unless prior to
the entry of such order or judgment all of the remaining Partners agree in writing to continue the
business of the Partnership and to the appointment, effective as of a date prior to the date of
such order or judgment, of a substitute General Partner.

Section 13.2 Winding Up

     A. Upon the occurrence of a Liquidating Event, the Partnership shall continue solely for the
purposes of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the
claims of its creditors and Partners. No Partner shall take any action that is inconsistent with,
or not necessary to or appropriate for, the winding up of the Partnership’s business and affairs.
The General Partner (or, in the event there is no remaining General Partner, any Person elected by
a Majority in Interest of the Limited Partners (the “Liquidator”)) shall be responsible for
overseeing the winding up and dissolution of the Partnership and shall take full account of the
Partnership’s liabilities and property and the Partnership property shall be liquidated as promptly
as is consistent with obtaining the fair value thereof, and the proceeds therefrom (which may, to
the extent determined by the General Partner, include shares of stock in the General Partner) shall
be applied and distributed in the following order:

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          (1) First, to the payment and discharge of all of the Partnership’s debts and liabilities to
creditors other than the Partners;

          (2) Second, to the payment and discharge of all of the Partnership’s debts and liabilities to
the General Partner;

          (3) Third, to the payment and discharge of all of the Partnership’s debts and liabilities to
the other Partners; and

          (4) The balance, if any, to the General Partner, the Special General Partner and the Limited
Partners in proportion to their positive Capital Account balances, determined after taking into
account all Capital Account adjustments for all prior periods and the Partnership taxable year
during which the liquidation occurs (other than those made as a result of the liquidating
distribution set forth in this Section 13.2.A(4)).

     B. Notwithstanding the provisions of Section 13.2.A which require liquidation of the
assets of the Partnership, but subject to the order of priorities set forth therein, if prior to or
upon dissolution of the Partnership the Liquidator determines that an immediate sale of part or all
of the Partnership’s assets would be impractical or would cause undue loss to the Partners, the
Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of
any assets except those necessary to satisfy liabilities of the Partnership (including to those
Partners as creditors) and/or distribute to the Partners, in lieu of cash, as tenants in common and
in accordance with the provisions of Section 13.2.A, undivided interests in such
Partnership assets as the Liquidator deems not suitable for liquidation. Any such distributions
in-kind shall be made only if, in the good faith judgment of the Liquidator, such distributions
in-kind are in the best interest of the Partners, and shall be subject to such conditions relating
to the disposition and management of such properties as the Liquidator deems reasonable and
equitable and to any agreements governing the operation of such properties at such time. The
Liquidator shall determine the fair market value of any property distributed in kind using such
reasonable method of valuation as it may adopt.

Section 13.3 Capital Contribution Obligation

          If any Partner has a deficit balance in his, her, or its Capital Account (after giving effect
to all contributions, distributions and allocations for the taxable years, including the year
during which such liquidation occurs), such Partner shall have no obligation to make any
contribution to the capital of the Partnership with respect to such deficit, and such deficit at
any time shall not be considered a debt owed to the Partnership or to any other Person for any
purpose whatsoever, except to the extent otherwise expressly agreed to by such Partner and the
Partnership.

Section 13.4 Compliance with Timing Requirements of Regulations

          In the discretion of the Liquidator or the General Partner, a pro rata portion of the
distributions that would otherwise be made to the General Partner and Limited Partners pursuant to
this Article 13 may be:

          (1) distributed to a trust established for the benefit of the General Partner and Limited
Partners for the purposes of liquidating Partnership assets, collecting amounts owed to the
Partnership, and paying any contingent or unforeseen liabilities or obligations of the Partnership
or of the General Partner arising out of or in connection with the Partnership. The assets of any
such trust shall be distributed to the General Partner and Limited Partners from time to time, in
the reasonable discretion of the Liquidator or the General Partner, in the same proportions and the
amount distributed to such trust by the Partnership would otherwise have been distributed to the
General Partner and Limited Partners pursuant to this Agreement; or

          (2) withheld or escrowed to provide a reasonable reserve for Partnership liabilities
(contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed
to the Partnership,

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provided, that such withheld or escrowed amounts shall be distributed to the
General Partner and Limited Partners in the manner and priority set forth in Section 13.2.A
as soon as practicable.

Section 13.5 Deemed Distribution and Recontribution

          Notwithstanding any other provision of this Article 13, in the event the Partnership
is liquidated within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g) but no Liquidating
Event has occurred, the Partnership’s property shall not be liquidated, the Partnership’s
liabilities shall not be paid or discharged, and the Partnership’s affairs shall not be wound up.
Instead, the Partnership shall be deemed to have contributed all of its assets and liabilities to a
new partnership in exchange a for an interest in the new partnership. Immediately thereafter, the
Partnership shall be deemed to distribute interests in the new partnership to the General Partner
and Limited Partners in proportion to their respective interests in the Partnership in liquidation
of the Partnership.

Section 13.6 Rights of Limited Partners

          Except as otherwise provided in this Agreement, each Limited Partner shall look solely to the
assets of the Partnership for the return of his Capital Contribution and shall have no right or
power to demand or receive property from the General Partner. No Limited Partner shall have
priority over any other Limited Partner as to the return of his Capital Contributions,
distributions or allocations.

Section 13.7 Notice of Dissolution

          In the event a Liquidating Event occurs or an event occurs that would, but for provisions of
Section 13.1, result in a dissolution of the Partnership, the General Partner shall, within
30 days thereafter, provide written notice thereof to each of the Partners and to all other parties
with whom the Partnership regularly conducts business (as determined in the discretion of the
General Partner) and shall publish notice thereof in a newspaper of general circulation in each
place in which the Partnership regularly conducts business (as determined in the discretion of the
General Partner).

Section 13.8 Cancellation of Certificate of Limited Partnership

          Upon the completion of the liquidation of the Partnership cash and property as provided in
Section 13.2, the Partnership shall be terminated and the Certificate and all
qualifications of the Partnership as a foreign limited partnership in jurisdictions shall be
cancelled and such other actions as may be necessary to terminate the Partnership shall be taken.

Section 13.9 Reasonable Time for Winding-Up

          A reasonable time shall be allowed for the orderly winding-up of the business and affairs of
the Partnership and the liquidation of its assets pursuant to Section 13.2, in order to
minimize any losses otherwise attendant upon such winding-up, and the provisions of this Agreement
shall remain in effect between the Partners during the period of liquidation.

Section 13.10 Waiver of Partition

          Each Partner hereby waives any right to partition of the Partnership property.

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ARTICLE 14.

AMENDMENT OF PARTNERSHIP AGREEMENT; CONSENTS

Section 14.1 Amendments

     A. The actions requiring consent or approval of the Partners or of the Limited Partners
pursuant to this Agreement, including Section 7.3, or otherwise pursuant to applicable law,
are subject to the procedures in this Article 14.

     B. Amendments to this Agreement requiring the consent or approval of Limited Partners may be
proposed by the General Partner or by Limited Partners holding twenty-five percent (25%) or more of
the Partnership Interests held by Limited Partners. Following such proposal, the General Partner
shall submit any proposed amendment to the Partners or to the Limited Partners, as applicable. The
General Partner shall seek the written consent of the Limited Partners on the proposed amendment or
shall call a meeting to vote thereon and to transact any other business that it may deem
appropriate. For purposes of obtaining a written consent, the General Partner may require a
response within a reasonable specified time, but not less than 15 days, and failure to respond in
such time period shall constitute a consent which is consistent with the General Partner’s
recommendation (if so recommended) with respect to the proposal; provided, that, an
action shall become effective at such time as requisite consents are received even if prior to such
specified time.

Section 14.2 Action by the Partners

     A. Meetings of the Partners may be called by the General Partner and shall be called upon the
receipt by the General Partner of a written request by Limited Partners holding twenty-five percent
(25%) or more of the Partnership Interests held by Limited Partners. The notice shall state the
nature of the business to be transacted. Notice of any such meeting shall be given to all Partners
not less than seven days nor more than 30 days prior to the date of such meeting. Partners may vote
in person or by proxy at such meeting. Whenever the vote or Consent of the Limited Partners or of
the Partners is permitted or required under this Agreement, such vote or Consent may be given at a
meeting of Partners or may be given in accordance with the procedure prescribed in Section
14.1.

     B. Any action required or permitted to be taken at a meeting of the Partners may be taken
without a meeting if a written consent setting forth the action so taken is signed by the
percentage as is expressly required by this Agreement for the action in question. Such consent may
be in one instrument or in several instruments, and shall have the same force and effect as a vote
of the Percentage Interests of the Partners (expressly required by this Agreement). Such consent
shall be filed with the General Partner. An action so taken shall be deemed to have been taken at a
meeting held on the effective date so certified.

     C. Each Limited Partner may authorize any Person or Persons to act for him by proxy on all
matters in which a Limited Partner is entitled to participate, including waiving notice of any
meeting, or voting or participating at a meeting. Every proxy must be signed by the Limited Partner
or his attorney-in-fact. No proxy shall be valid after the expiration of 11 months from the date
thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of
the Limited Partner executing it.

     D. Each meeting of Partners shall be conducted by the General Partner or such other Person as
the General Partner may appoint pursuant to such rules for the conduct of the meeting as the
General Partner or such other Person deems appropriate.

     E. On matters on which Limited Partners are entitled to vote, each Limited Partner shall have
a vote equal to the number of OP Units held.

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ARTICLE 15.

GENERAL PROVISIONS

Section 15.1 Addresses and Notice

          Any notice, demand, request or report required or permitted to be given or made to a Partner
or Assignee under this Agreement shall be in writing and shall be deemed given or made when
delivered in person or when sent by first class United States mail or by other means of written
communication to the Partner or Assignee at the address set forth in Exhibit A or such other
address as the Partners shall notify the General Partner in writing.

Section 15.2 Titles and Captions

          All article or section titles or captions in this Agreement are for convenience only. They
shall not be deemed part of this Agreement and in no way define, limit, extend or describe the
scope or intent of any provisions hereof. Except as specifically provided otherwise, references to
“Articles” and “Sections” are to Articles and Sections of this Agreement.

Section 15.3 Pronouns and Plurals

          Whenever the context may require, any pronoun used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and
verbs shall include the plural and vice versa.

Section 15.4 Further Action

          The parties shall execute and deliver all documents, provide all information and take or
refrain from taking action as may be necessary or appropriate to achieve the purposes of this
Agreement.

Section 15.5 Binding Effect

          This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
heirs, executors, administrators, successors, legal representatives and permitted assigns.

Section 15.6 Creditors

          Other than as expressly set forth herein with respect to Indemnitees, none of the provisions
of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the
Partnership.

Section 15.7 Waiver

          No failure or delay by any party to insist upon the strict performance of any covenant, duty,
agreement or condition of this Agreement or to exercise any right or remedy consequent upon any
breach thereof shall constitute waiver of any such breach or any other covenant, duty, agreement or
condition.

Section 15.8 Counterparts

          This Agreement may be executed in counterparts, all of which together shall constitute one
agreement binding on all the parties hereto, notwithstanding that all such parties are not
signatories to the original or the same counterpart. Each party shall become bound by this
Agreement immediately upon affixing its signature hereto.

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Section 15.9 Applicable Law

          This Agreement shall be construed in accordance with and governed by the laws of the State of
Delaware, without regard to the principles of conflicts of law.

Section 15.10 Invalidity of Provisions

          If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not be affected thereby.

Section 15.11 Entire Agreement

          This Agreement contains the entire understanding and agreement among the Partners with respect
to the subject matter hereof and supersedes any other prior written or oral understandings or
agreements among them with respect thereto.

Section 15.12 No Rights as Stockholders

          Nothing contained in this Agreement shall be construed as conferring upon the holders of OP
Units any rights whatsoever as stockholders of the General Partner, including without limitation
any right to receive dividends or other distributions made to stockholders of the General Partner
or to vote or to consent or to receive notice as stockholders in respect of any meeting of
stockholders for the election of directors of the General Partner or any other matter.

[the remainder of this page is intentionally left blank]

-54-

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement of Limited Partnership as
of the date first written above.

	 	 	 	 	 	 	 	 	 
	General Partner:	 	CORPORATE PROPERTY ASSOCIATES 17-

GLOBAL INCORPORATED,
	 	 	a Maryland company
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	Special General Partner:	 	CAREY HOLDINGS LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

-55-EX-4.1

 

Exhibit 4.1

 

AMERICAN INTERNATIONAL GROUP, INC.

TO

THE BANK OF NEW YORK

   Trustee

______________

Indenture

Dated as of October 12, 2006

______________

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	PARTIES	 	1
	 
	 	 	 	 
	RECITALS OF THE COMPANY	 	1
	 
	 	 	 	 
	
ARTICLE ONE
	
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 
	 	 	 	 
	Section 101.
	 	Definitions.	 	1
	Section 102.
	 	Compliance Certificates and Opinions.	 	6
	Section 103.
	 	Form of Documents Delivered to Trustee.	 	7
	Section 104.
	 	Acts of Holders; Record Dates.	 	7
	Section 105.
	 	Notices, Etc., to Trustee and Company.	 	9
	Section 106.
	 	Notice to Holders; Waiver.	 	9
	Section 107.
	 	Conflict with Trust Indenture Act.	 	10
	Section 108.
	 	Effect of Headings and Table of Contents.	 	10
	Section 109.
	 	Successors and Assigns.	 	10
	Section 110.
	 	Separability Clause.	 	10
	Section 111.
	 	Benefits of Indenture.	 	10
	Section 112.
	 	Governing Law.	 	10
	Section 113.
	 	Legal Holidays.	 	10
	 
	 	 	 	 
	
ARTICLE TWO
	
SECURITY FORMS
	 
	 	 	 	 
	Section 201.
	 	Forms Generally.	 	11
	Section 202.
	 	Form of Face of Security.	 	11
	Section 203.
	 	Form of Reverse of Security.	 	13
	Section 204.
	 	Form of Legend for Global Securities.	 	16
	Section 205.
	 	Form of Trustee’s Certificate of Authentication.	 	16
	 
	 	 	 	 
	
ARTICLE THREE
	
THE SECURITIES
	 
	 	 	 	 
	Section 301.
	 	Amount Unlimited; Issuable in Series.	 	17
	Section 302.
	 	Denominations.	 	19
	Section 303.
	 	Execution, Authentication, Delivery and Dating.	 	19
	Section 304.
	 	Temporary Securities.	 	21
	Section 305.
	 	Registration, Registration of Transfer and Exchange.	 	21
	Section 306.
	 	Mutilated, Destroyed, Lost and Stolen Securities.	 	23
	Section 307.
	 	Payment of Interest; Interest Rights Preserved.	 	23
	Section 308.
	 	Persons Deemed Owners.	 	25
	Section 309.
	 	Cancellation.	 	25
	Section 310.
	 	Computation of Interest.	 	25

 

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

 

 

	 	 	 	 	 
	 	 	 	 	Page
	Section 311.
	 	CUSIP Numbers.	 	25
	Section 312.
	 	Original Issue Discount.	 	25
	 
	 	 	 	 
	
ARTICLE FOUR
	

SATISFACTION AND DISCHARGE
	 
	 	 	 	 
	Section 401.
	 	Satisfaction and Discharge of Indenture.	 	26
	Section 402.
	 	Application of Trust Money.	 	27
	 
	 	 	 	 
	
ARTICLE FIVE
	
REMEDIES
	 
	 	 	 	 
	Section 501.
	 	Events of Default.	 	27
	Section 502.
	 	Acceleration of Maturity; Rescission and Annulment.	 	28
	Section 503.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee.	 	29
	Section 504.
	 	Trustee May File Proofs of Claim.	 	29
	Section 505.
	 	Trustee May Enforce Claims Without Possession of Securities.	 	30
	Section 506.
	 	Application of Money Collected.	 	30
	Section 507.
	 	Limitation on Suits.	 	30
	Section 508.
	 	Unconditional Right of Holders to Receive Principal, Premium and Interest.	 	31
	Section 509.
	 	Restoration of Rights and Remedies.	 	31
	Section 510.
	 	Rights and Remedies Cumulative.	 	31
	Section 511.
	 	Delay or Omission Not Waiver.	 	32
	Section 512.
	 	Control by Holders.	 	32
	Section 513.
	 	Waiver of Past Defaults.	 	32
	Section 514.
	 	Undertaking for Costs.	 	32
	Section 515.
	 	Waiver of Usury, Stay or Extension Laws.	 	33
	 
	 	 	 	 
	
ARTICLE SIX
	
THE TRUSTEE
	 
	 	 	 	 
	Section 601.
	 	Certain Duties and Responsibilities.	 	33
	Section 602.
	 	Notice of Defaults.	 	33
	Section 603.
	 	Certain Rights of Trustee.	 	33
	Section 604.
	 	Not Responsible for Recitals or Issuance of Securities.	 	34
	Section 605.
	 	May Hold Securities.	 	35
	Section 606.
	 	Money Held in Trust.	 	35
	Section 607.
	 	Compensation and Reimbursement.	 	35
	Section 608.
	 	Conflicting Interests.	 	35
	Section 609.
	 	Corporate Trustee Required; Eligibility.	 	36
	Section 610.
	 	Resignation and Removal; Appointment of Successor.	 	36
	Section 611.
	 	Acceptance of Appointment by Successor.	 	37
	Section 612.
	 	Merger, Conversion, Consolidation or Succession to Business.	 	38
	Section 613.
	 	Preferential Collection of Claims Against Company.	 	39

ii

 

	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 
	
ARTICLE SEVEN
	
HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 
	 	 	 	 
	Section 701.
	 	Company to Furnish Trustee Names and Addresses of Holders.	 	39
	Section 702.
	 	Preservation of Information; Communications to Holders.	 	39
	Section 703.
	 	Reports by Trustee.	 	40
	Section 704.
	 	Reports by Company.	 	40
	 
	 	 	 	 
	
ARTICLE EIGHT
	
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 
	 	 	 	 
	Section 801.
	 	Company May Consolidate, Etc., Only on Certain Terms.	 	40
	Section 802.
	 	Successor Substituted.	 	41
	 
	 	 	 	 
	
ARTICLE NINE
	

SUPPLEMENTAL INDENTURES
	 
	 	 	 	 
	Section 901.
	 	Supplemental Indentures Without Consent of Holders.	 	41
	Section 902.
	 	Supplemental Indentures With Consent of Holders.	 	42
	Section 903.
	 	Execution of Supplemental Indentures.	 	43
	Section 904.
	 	Effect of Supplemental Indentures.	 	44
	Section 905.
	 	Conformity with Trust Indenture Act.	 	44
	Section 906.
	 	Reference in Securities to Supplemental Indentures.	 	44
	 
	 	 	 	 
	
ARTICLE TEN
	
COVENANTS
	 
	 	 	 	 
	Section 1001.
	 	Payment of Principal, Premium and Interest.	 	44
	Section 1002.
	 	Maintenance of Office or Agency.	 	44
	Section 1003.
	 	Money for Securities Payments to Be Held in Trust.	 	45
	Section 1004.
	 	Statement by Officers as to Default.	 	46
	Section 1005.
	 	Existence.	 	46
	Section 1006.
	 	Waiver of Certain Covenants.	 	46
	 
	 	 	 	 
	
ARTICLE ELEVEN
	
REDEMPTION OF SECURITIES
	 
	 	 	 	 
	Section 1101.
	 	Applicability of Article.	 	46
	Section 1102.
	 	Election to Redeem; Notice to Trustee.	 	47
	Section 1103.
	 	Selection by Trustee of Securities to Be Redeemed.	 	47
	Section 1104.
	 	Notice of Redemption.	 	47
	Section 1105.
	 	Deposit of Redemption Price.	 	48
	Section 1106.
	 	Securities Payable on Redemption Date.	 	48
	Section 1107.
	 	Securities Redeemed in Part.	 	49

iii

 

	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 
	
ARTICLE TWELVE
	
SINKING FUNDS
	 
	 	 	 	 
	Section 1201.
	 	Applicability of Article.	 	49
	Section 1202.
	 	Satisfaction of Sinking Fund Payments with Securities.	 	49
	Section 1203.
	 	Redemption of Securities for Sinking Fund.	 	50
	 
	 	 	 	 
	
ARTICLE THIRTEEN
	
DEFEASANCE AND COVENANT DEFEASANCE
	 
	 	 	 	 
	Section 1301.
	 	Company’s Option to Effect Defeasance or Covenant Defeasance.	 	50
	Section 1302.
	 	Defeasance and Discharge.	 	50
	Section 1303.
	 	Covenant Defeasance.	 	51
	Section 1304.
	 	Conditions to Defeasance or Covenant Defeasance.	 	51
	Section 1305.
	 	Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions.	 	53
	Section 1306.
	 	Reinstatement.	 	53
	 
	 	 	 	 
	TESTIMONIUM	 	54
	SIGNATURES	 	54
	ACKNOWLEDGMENTS	 	55

iv

 

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

inclusive, of the Trust Indenture Act of 1939:

	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	§ 310(a)(1)
	 	609
	(a)(2)
	 	609
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(b)
	 	608
	 
	 	610
	§ 311(a)
	 	613
	(b)
	 	613
	§ 312(a)
	 	701
	 
	 	702
	(b)
	 	702
	(c)
	 	702
	§ 313(a)
	 	703
	(b)
	 	703
	(c)
	 	703
	(d)
	 	703
	§ 314(a)
	 	704
	(a)(4)
	 	101
	 
	 	1004
	(b)
	 	Not Applicable
	(c)(1)
	 	102
	(c)(2)
	 	102
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	§ 315(a)
	 	601
	(b)
	 	602
	(c)
	 	601
	(d)
	 	601
	(e)
	 	514
	§ 316(a)
	 	101
	(a)(1)(A)
	 	502
	 
	 	512
	(a)(1)(B)
	 	513
	(a)(2)
	 	Not Applicable
	(b)
	 	508
	(c)
	 	104
	§ 317(a)(1)
	 	503
	(a)(2)
	 	504
	(b)
	 	1003
	§ 318(a)
	 	107

 

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

 

 

     INDENTURE,
dated as of October 12, 2006, between American International Group, Inc., a
corporation duly organized and existing under the laws of the State of Delaware (herein called the
“Company”), having its principal office at 70 Pine Street, New York, New York 10270, and The Bank
of New York, a New York banking corporation, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

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

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 101. Definitions.

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

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

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

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

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

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

 

 

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

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

     “Board of Directors” means either the board of directors of the Company or any duly authorized
committee of that board.

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

     “Business Day”, when used with respect to any Place of Payment, means, unless otherwise
specified as contemplated by Section 301, each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which banking institutions in that Place of Payment are authorized or
obligated by law or executive order to close.

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

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

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman, one of its Vice Chairman, its President or one of its Vice Presidents
(or any Person designated by one of them in writing as authorized to execute and deliver Company
Requests and Company Orders), and by its Treasurer, one of its Assistant Treasurers, its Secretary
or one of its Assistant Secretaries (or any Person designated by one of them in writing as
authorized to execute and deliver Company Requests and Company Orders), and delivered to the
Trustee.

     “Corporate Trust Office” means the principal office of the Trustee in New York, New York at
which at any particular time its corporate trust business shall be administered.

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

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

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

     “Defeasance” has the meaning specified in Section 1302.

-2-

 

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

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

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

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

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

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

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

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

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

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

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

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

     “Officers’ Certificate” means a certificate signed by the Chairman, a Vice Chairman, the
President or a Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary, of the Company, and delivered to the Trustee. One of the officers signing an
Officers’ Certificate given pursuant to Section 1004 shall be the principal executive, financial or
accounting officer of the Company.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company,
and who shall be acceptable to the Trustee.

-3-

 

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

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

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

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

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

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

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

-4-

 

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

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

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

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

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

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

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

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

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

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

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

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

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

-5-

 

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

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

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

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

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

Section 102. Compliance Certificates and Opinions.

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

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

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

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

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

-6-

 

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

Section 103. Form of Documents Delivered to Trustee.

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

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

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

Section 104. Acts of Holders; Record Dates.

     Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given, made or taken by Holders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by an agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred
to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Section 601) conclusive in favor of the Trustee and the Company, if
made in the manner provided in this Section.

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

-7-

 

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

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

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

     The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration referred to in Section 502, (iii) any request to
institute proceedings referred to in Section 507(2) or (iv) any direction referred to in Section
512, in each case with respect to Securities of such series. If any record date is set pursuant to
this paragraph, the Holders of Outstanding Securities of such series on such record date, and no
other Holders, shall be entitled to join in such notice, declaration, request or direction, whether
or not such Holders remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the
requisite principal amount of Outstanding Securities of such series on such record date. Nothing in
this paragraph shall be construed to prevent the Trustee from setting a new record date for any
action for which a record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person be cancelled and of
no effect), and nothing in this paragraph shall be construed to render ineffective any action taken
by Holders of the requisite principal amount of Outstanding Securities of the relevant series on
the date such action is taken. Promptly after any record date is set pursuant to this paragraph,
the Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action
by Holders and the applicable Expiration Date to be given to the Company in writing and to each
Holder of Securities of the relevant series in the manner set forth in Section 106.

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

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

Section 105. Notices, Etc., to Trustee and Company.

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

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

     (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of its principal
office specified in the first paragraph of this instrument, Attention Secretary, or at any
other address previously furnished in writing to the Trustee by the Company.

Section 106. Notice to Holders; Waiver.

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

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made

-9-

 

with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

Section 107. Conflict with Trust Indenture Act.

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

Section 108. Effect of Headings and Table of Contents.

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

Section 109. Successors and Assigns.

     All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

Section 110. Separability Clause.

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

Section 111. Benefits of Indenture.

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

Section 112. Governing Law.

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

Section 113. Legal Holidays.

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

-10-

 

ARTICLE TWO

SECURITY FORMS

Section 201. Forms Generally.

     The Securities of each series shall be in substantially the form set forth in this Article, or
in such other form as shall be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange or Depositary
therefor or as may, consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall
be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Company Order contemplated by Section 303 for the authentication
and delivery of such Securities. If all of the Securities of any series established by action
taken pursuant to a Board Resolution are not to be issued at one time, it shall not be
necessary to deliver a record of such action at the time of issuance of each Security of such
series, but an appropriate record of such action shall be delivered at or before the time of
issuance of the first Security of such series.

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

Section 202. Form of Face of Security.

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

American International Group, Inc.

................................

			
	No.
	 	$.........

     American International Group, Inc., a corporation duly organized and existing under the laws
of Delaware (herein called the “Company”, which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby
promises to pay to ..........................., or
registered assigns, the principal sum of ........................... Dollars on ...........................[if the Security is to bear interest prior
to Maturity, insert — , and to pay interest thereon from ............ or from the most recent Interest
Payment Date to which interest has been paid or duly provided for,
semi-annually on ............ and ............ in each
year, commencing ............, at the rate of ...% per annum, until the principal hereof is paid or made
available for payment [if applicable, insert — , provided that any principal and premium, and any
such installment of interest, which is overdue shall bear interest at the rate of ...% per annum
(to the extent that the payment of such interest shall be legally enforceable), from the

-11-

 

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

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

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

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

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

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

Dated:

American International Group, Inc.

By....................................

Attest:

..................................

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Section 203. Form of Reverse of Security.

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

     [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 days’ notice by mail, [if applicable, insert — (1) on ... in any year commencing with
the year .. and ending with the year .. through operation of the sinking fund for this
series at a Redemption Price equal to 100% of the principal amount, and (2)] at any time [if
applicable, insert — on or after .., ..], as a whole or in part, at the election of the Company,
at the following Redemption Prices (expressed as percentages of the principal amount): If redeemed
[if applicable, insert — on or before ..............., ...%, and if redeemed] during the 12-month period
beginning ............... of the years indicated,

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Redemption	 	 	 	 	 	 	Redemption	 
	Year	 	Price	 	 	Year	 	 	Price	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

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

     [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 days’ notice by mail, (1) on
................in any year commencing with the year .... and ending with
the year .... through operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below, and (2) at any time [if applicable, insert — on or after ...............], as a
whole or in part, at the election of the Company, at the Redemption Prices for redemption otherwise
than through operation of the sinking fund (expressed as percentages of the principal amount) set
forth in the table below: If redeemed during the 12-month period
beginning ............... of the years indicated,

-13-

 

	 	 	 	 	 	 	 	 	 
	 	 	Redemption Price	 	 	 	 
	 	 	For Redemption	 	 	Redemption Price For	 
	 	 	Through Operation	 	 	Redemption Otherwise	 
	 	 	of the	 	 	Than Through Operation	 
	Year	 	Sinking Fund	 	 	of the Sinking Fund	 
	 
	 	 	 	 	 	 	 	 

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

     [If
applicable, insert — Notwithstanding the foregoing, the Company may not, prior to ...............,
redeem any Securities of this series as contemplated by [if applicable, insert — Clause (2) of]
the preceding paragraph as a part of, or in anticipation of, any refunding operation by the
application, directly or indirectly, of moneys borrowed having an interest cost to the Company
(calculated in accordance with generally accepted financial practice)
of less than ......% per annum.]

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

     [If the Security is subject to redemption of any kind, insert — In the event of redemption of
this Security in part only, a new Security or Securities of this series and of like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]
$E2 Standard            Paragraph

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

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

-14-

 

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

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

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

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

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one

-15-

 

or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

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

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

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

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

Section 204. Form of Legend for Global Securities.

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

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

Section 205. Form of Trustee’s Certificate of Authentication.

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

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

	 	 	 
	Dated:

	 	The Bank of New York
	 

	 	 
	 

	 	As Trustee
	 

	 	By........................................................................
	 

	 	Authorized Signatory

-16-

 

ARTICLE THREE

THE SECURITIES

Section 301. Amount Unlimited; Issuable in Series.

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

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

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

     (2) any limit upon the aggregate principal amount of the Securities of the series
which may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in
lieu of, other Securities of the series pursuant to Section 304, 305, 306, 906, 1107 or
1203 and except for any Securities which, pursuant to Section 303, are deemed never to have
been authenticated and delivered hereunder);

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

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

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

     (6) the place or places where the principal of and any premium and interest on any
Securities of the series shall be payable;

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

     (8) the obligation, if any, of the Company to redeem or purchase any Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of the Holder
thereof and the period or periods within which, the price or prices at

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which and the terms and conditions upon which any Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

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

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

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

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

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

     (14) if the principal amount payable at the Stated Maturity of any Securities of the
series will not be determinable as of any one or more dates prior to the Stated Maturity,
the amount which shall be deemed to be the principal amount of such Securities as of any
such date for any purpose thereunder or hereunder, including the principal amount thereof
which shall be due and payable upon any Maturity other than the Stated Maturity or which
shall be deemed to be Outstanding as of any date prior to the Stated Maturity (or, in any
such case, the manner in which such amount deemed to be the principal amount shall be
determined);

     (15) if other than by a Board Resolution, the manner in which any election by the
Company to defease any Securities of the series pursuant to Section 1302 or Section 1303
shall be evidenced; whether any Securities of the series other than Securities denominated
in U.S. dollars and bearing interest at a fixed rate are to be subject to Section 1302 or
Section 1303; or, in the case of Securities denominated in U.S. dollars and bearing
interest at a fixed rate, if applicable, that the Securities of the series, in whole or any
specified part, shall not be defeasible pursuant to Section 1302 or Section 1303 or both
such Sections;

     (16) if applicable, that any Securities of the series shall be issuable in whole or in
part in the form of one or more Global Securities and, in such case, the respective

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

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

     (18) any addition to, deletion from or change in the covenants set forth in Article
Ten which applies to Securities of the series; and

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

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

     If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of
the Officers’ Certificate setting forth the terms of the series.

Section 302. Denominations.

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

Section 303. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by its Chairman, one of its Vice
Chairman, its President, its Treasurer or one of its Vice Presidents and attested by its Secretary
or one of its Assistant Secretaries. The signature of any of these officers on the Securities may
be manual or facsimile.

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     Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

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

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

     (2) if the terms of such Securities have been established by or pursuant to Board
Resolution as permitted by Section 301, that such terms have been established in conformity
with the provisions of this Indenture; and

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

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

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

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate

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upon any Security shall be conclusive evidence, and the only evidence, that such Security has
been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security
shall have been authenticated and delivered hereunder but never issued and sold by the Company, and
the Company shall deliver such Security to the Trustee for cancellation as provided in Section 309,
for all purposes of this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall never be entitled to the benefits of this Indenture.

Section 304. Temporary Securities.

     Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their execution of such
Securities.

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

Section 305. Registration, Registration of Transfer and Exchange.

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

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

     At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized denominations and of like tenor and aggregate principal amount,
upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities
are so surrendered for exchange, the Company shall execute, and the

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Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

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

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

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1107 or 1203 not involving any
transfer.

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

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

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

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

     (3) Subject to Clause (2) above, any exchange of a Global Security for other
Securities may be made in whole or in part, and all Securities issued in exchange for a

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Global Security or any portion thereof shall be registered in such names as the
Depositary for such Global Security shall direct.

     (4) Every Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof, whether pursuant to
this Section, Section 304, 306, 906, 1107 or 1203 or otherwise, shall be authenticated and
delivered in the form of, and shall be, a Global Security, unless such Security is
registered in the name of a Person other than the Depositary for such Global Security or a
nominee thereof.

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

     If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and
of like tenor and principal amount and bearing a number not contemporaneously outstanding.

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

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

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

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

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

Section 307. Payment of Interest; Interest Rights Preserved.

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

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or more Predecessor Securities) is registered at the close of business on the Regular Record
Date for such interest.

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

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

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

     Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

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Section 308. Persons Deemed Owners.

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

Section 309. Cancellation.

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

Section 310. Computation of Interest.

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

Section 311. CUSIP Numbers.

     The Company in issuing any series of the Securities may use CUSIP numbers, if then generally
in use, and thereafter with respect to such series, the Trustee may use such numbers in any notice
of redemption with respect to such series, provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities of
that series or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities of that series, and any such redemption
shall not be affected by any defect in or omission of such numbers.

Section 312. Original Issue Discount.

     If any of the Securities is an Original Issue Discount Security, the Company shall file with
the Trustee promptly at the end of each calendar year (i) a written notice specifying the amount of
original issue discount (including daily rates and accrual periods) accrued on such Outstanding
Original Issue Discount Securities as of the end of such year and (ii) such other specific
information relating to such original issue discount as may then be relevant under the Internal
Revenue Code of 1986, as amended from time to time.

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ARTICLE FOUR

SATISFACTION AND DISCHARGE

Section 401. Satisfaction and Discharge of Indenture.

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

     (1) either

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

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

     (i) have become due and payable, or

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

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

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

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

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

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607 and, if money shall have been deposited with the

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Trustee pursuant to subclause (B) of Clause (1) of this Section, the obligations of the
Trustee under Section 402 and the last paragraph of Section 1003 shall survive.

Section 402. Application of Trust Money.

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

ARTICLE FIVE

REMEDIES

Section 501. Events of Default.

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

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

     (2) default in the payment of the principal of or any premium on any Security of that
series at its Maturity, and continuance of such default for a period of five days; or

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

     (4) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture (other than a covenant or warranty a default in whose performance or
whose breach is elsewhere in this Section specifically dealt with or which has expressly
been included in this Indenture solely for the benefit of series of Securities other than
that series), and continuance of such default or breach for a period of 60 days after there
has been given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of that series a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder; or

     (5) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company in an involuntary case or proceeding under any

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

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

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

Section 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series may declare the principal amount of
all the Securities of that series (or, if any Securities of that series are Original Issue Discount
Securities, such portion of the principal amount of such Securities as may be specified by the
terms thereof) to be due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal amount (or specified
amount) shall become immediately due and payable.

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

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

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

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

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

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

     and

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

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

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

     The Company covenants that if

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

     (2) default is made in the payment of the principal of (or premium, if any, on) any
Security at the Maturity thereof and such default continues for a period of five days,

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

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

Section 504. Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by

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intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

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

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

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

Section 506. Application of Money Collected.

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

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

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

Section 507. Limitation on Suits.

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

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

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

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

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

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

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

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

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

Section 509. Restoration of Rights and Remedies.

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

Section 510. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be

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cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

Section 511. Delay or Omission Not Waiver.

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

Section 512. Control by Holders.

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

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

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

Section 513. Waiver of Past Defaults.

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

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

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

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

Section 514. Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess reasonable costs against any such party litigant, in the manner and to the extent provided
in the

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Trust Indenture Act; provided that neither this Section nor the Trust Indenture Act shall be
deemed to authorize any court to require such an undertaking or to make such an assessment in any
suit instituted by the Company.

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

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

ARTICLE SIX

THE TRUSTEE

Section 601. Certain Duties and Responsibilities.

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

Section 602. Notice of Defaults.

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

Section 603. Certain Rights of Trustee.

     Subject to the provisions of Section 601:

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

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     (2) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order, and any resolution of the Board of
Directors shall be sufficiently evidenced by a Board Resolution;

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

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

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

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

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

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

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

     The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities. The Trustee shall not be accountable for the
use or application by the Company of Securities or the proceeds thereof.

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Section 605. May Hold Securities.

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

Section 606. Money Held in Trust.

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

Section 607. Compensation and Reimbursement.

     The Company agrees

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

     (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the reasonable expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to its negligence
or bad faith; and

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

     When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 501(5) or Section 501(6), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to constitute expenses
of administration under any applicable Federal or state bankruptcy, insolvency or other similar
law.

     The provisions of this Section shall survive the termination of this Indenture and the
resignation or removal of the Trustee.

Section 608. Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the

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manner provided by, and subject to the provisions of, the Trust Indenture Act and this
Indenture. To the extent permitted by such Act, the Trustee shall not be deemed to have a
conflicting interest by virtue of being a trustee under this Indenture with respect to Securities
of more than one series or a trustee under the Indenture, dated as of April 15, 1983, as
supplemented by the First Supplemental Indenture, dated as of September 9, 1986, between the
Company and the Trustee; the Indenture, dated as of July 15, 1989, as supplemented by the First
Supplemental Indenture, dated as of May 15, 2003, between the Company and the Trustee; and the
Indenture, dated as of November 9, 2001, between the Company and the Trustee, as amended or
supplemented.

Section 609. Corporate Trustee Required; Eligibility.

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

Section 610. Resignation and Removal; Appointment of Successor.

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

     The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee, at the expense of the Company, may
petition any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

     The Trustee may be removed at any time with respect to the Securities of any series by Act of
the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company. If the instrument of acceptance by a successor Trustee
required by Section 611 shall not have been delivered to the Trustee within 30 days after the
giving of such notice of removal, the Trustee being removed, at the expense of the Company, may
petition any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

     If at any time:

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

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

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

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

     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Securities of one or more series,
the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of such series and
that at any time there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 611. If, within one year after
such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the Holders of a majority
in principal amount of the Outstanding Securities of such series delivered to the Company and the
retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 611, become the successor
Trustee with respect to the Securities of such series and to that extent supersede the successor
Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any
series shall have been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

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

Section 611. Acceptance of Appointment by Successor.

     In case of the appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company and
to the retiring Trustee an instrument accepting such appointment, and thereupon

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the resignation or removal of the retiring Trustee shall become effective and such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.

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

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

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

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

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, without the

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execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion, consolidation or sale to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with the same effect as
if such successor Trustee had itself authenticated such Securities.

Section 613. Preferential Collection of Claims Against Company.

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

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 701. Company to Furnish Trustee Names and Addresses of Holders.

The Company will furnish or cause to be furnished to the Trustee

     (1) semi-annually either (i) not later than March 31 and September 30 in each year in
the case of any series of Securities consisting solely of Original Issue Discount
Securities which by their terms do not bear interest prior to Maturity, or (ii) not more
than 15 days after each Regular Record Date in the case of Securities of any other series,
a list, in such form as the Trustee may reasonably require, of the names and addresses of
the Holders of Securities of each series as of the preceding March 16 or September 15 or as
of such Regular Record Date, as the case may be; and

     (2) at such other times as the Trustee may request in writing, within 30 days after
the receipt by the Company of any such request, a list of similar form and content as of a
date not more than 15 days prior to the time such list is furnished;

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

Section 702. Preservation of Information; Communications to Holders.

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

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

     Every Holder of Securities, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of either of them shall be

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held accountable by reason of any disclosure of information as to names and addresses of
Holders made pursuant to the Trust Indenture Act.

Section 703. Reports by Trustee.

     The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto.

     A copy of each such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the Commission and with
the Company. The Company will notify the Trustee when any Securities are listed on any stock
exchange.

Section 704.  Reports by Company.

     The Company shall file with the Trustee and the Commission, and transmit to Holders, such
information, documents and other reports as may be required by the Trust Indenture Act.

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

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 801.  Company May Consolidate, Etc., Only on Certain Terms.

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

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

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     (2) immediately after giving effect to such transaction, no Event of Default, and no
event which, after notice or lapse of time or both, would become an Event of Default, shall
have happened and be continuing; and

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

Section 802.  Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

Section 901.  Supplemental Indentures Without Consent of Holders.

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

     (1) to evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants of the Company herein and in the Securities; or

     (2) to add to the covenants of the Company for the benefit of some or all of the
Holders of all or any series of Securities or of particular Securities within a series as
may be specified in the Board Resolutions (and if such covenants are to be for the benefit
of less than all series of Securities, stating that such covenants are expressly being
included solely for the benefit of such series or such particular Securities) or to
surrender any right or power herein conferred upon the Company; or

     (3) to add any additional Events of Default for the benefit of some or all of the
Holders of all or any series of Securities or of particular Securities within a series as
may be specified in the Board Resolutions (and if such additional Events of Default are to
be for the benefit of less than all series of Securities, stating that such additional
Events of Default are expressly being included solely for the benefit of such series or
such particular Securities); or

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

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

     (6) to secure the Securities; or

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

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

     (9) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Indenture, provided that such
action pursuant to this Clause (9) shall not adversely affect the interests of the Holders
of Securities of any series in any material respect.

Section 902.  Supplemental Indentures With Consent of Holders.

     With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Holders of Securities of such
series under this Indenture; provided, however, that if the Board Resolutions and supplemental
indenture shall expressly provide that any provisions to be changed or eliminated shall apply to
fewer than all the Outstanding Securities hereunder or under a particular series under this
Indenture, then, to the extent not inconsistent with the Trust Indenture Act, any such consent may
be given by Holders of not less than a majority in principal amount of the Outstanding Securities
hereunder or under such series to which such change or elimination shall apply; provided, further,
that no such supplemental indenture shall, without the consent of the Holder of each Outstanding
Security affected thereby (whether or not such affected Securities comprise all Securities under
this Indenture or under a particular series),

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

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

     (3) modify any of the provisions of this Section, Section 513 or Section 1006, except
to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby; provided, however, that this clause shall not be
deemed to require the consent of any Holder with respect to changes in the references to
“the Trustee” and concomitant changes in this Section and Section 1006, or the deletion of
this proviso, in accordance with the requirements of Sections 611 and 901(8).

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

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

     After a supplemental indenture under this Section 902 becomes effective, the Company shall
mail to the Trustee a notice briefly describing such supplemental indenture or a copy of such
supplemental indenture and the Trustee shall mail such notice or supplemental indenture to Holders
affected thereby. Any failure of the Company to mail such notice, or any defect therein, or any
failure of the Company to mail such supplemental indenture, shall not in any way impair or affect
the validity of any such supplemental indenture.

Section 903.  Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the

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

Section 904.  Effect of Supplemental Indentures.

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

Section 905.  Conformity with Trust Indenture Act.

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

Section 906.  Reference in Securities to Supplemental Indentures.

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

ARTICLE TEN

COVENANTS

Section 1001.  Payment of Principal, Premium and Interest.

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

Section 1002.  Maintenance of Office or Agency.

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

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at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as
its agent to receive all such presentations, surrenders, notices and demands.

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

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

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

     Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of or any premium or interest on any Securities of
that series, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be held
as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of its action or failure so to act.

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

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

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or any premium or interest on any Security of any series
and remaining unclaimed for two years after such principal, premium or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, 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

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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 a newspaper published in the English language, customarily
published on each Business Day and of general circulation in the Borough of Manhattan, The City of
New York, notice that such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

Section 1004.  Statement by Officers as to Default.

     The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company ending after the date hereof, an Officers’ Certificate, stating whether or not to the
best knowledge of the signers thereof the Company is in default in the performance and observance
of any of the terms, provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may have knowledge.

Section 1005.  Existence.

     Subject to Article Eight, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence.

Section 1006. Waiver of Certain Covenants.

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

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

Section 1101. Applicability of Article.

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

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Section 1102.  Election to Redeem; Notice to Trustee.

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

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

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

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

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

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

Section 1104. Notice of Redemption.

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

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     All notices of redemption shall state:

     (1) the Redemption Date;

     (2) the Redemption Price;

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

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

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

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

     (7) if applicable, the CUSIP numbers of the Securities of that series.

     Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company and, unless otherwise specified or contemplated by Section 301, shall be irrevocable.

Section 1105. Deposit of Redemption Price.

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

Section 1106. Securities Payable on Redemption Date.

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

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registered as such at the close of business on the relevant Record Dates according to their
terms and the provisions of Section 307.

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

Section 1107. Securities Redeemed in Part.

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

ARTICLE TWELVE

SINKING FUNDS

Section 1201. Applicability of Article.

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

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

Section 1202. Satisfaction of Sinking Fund Payments with Securities.

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

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Section 1203. Redemption of Securities for Sinking Fund.

     Not less than 60 days prior to each sinking fund payment date for any Securities, the Company
will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing
sinking fund payment for such Securities pursuant to the terms of such Securities, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities pursuant to Section 1202 and will also
deliver to the Trustee any Securities to be so delivered. Not less than 30 days prior to each such
sinking fund payment date, the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 1103 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1106 and 1107.

ARTICLE THIRTEEN

DEFEASANCE AND COVENANT DEFEASANCE

Section 1301. Company’s Option to Effect Defeasance or Covenant Defeasance.

     Unless otherwise provided as contemplated by Section 301, Sections 1302 and 1303 shall apply
to any Securities or any series of Securities, as the case may be, in either case, denominated in
U.S. dollars and bearing interest at a fixed rate, in accordance with any applicable requirements
provided pursuant to Section 301 and upon compliance with the conditions set forth below in this
Article; and the Company may elect, at its option at any time, to have Sections 1302 and 1303
applied to any Securities or any series of Securities, as the case may be, designated pursuant to
Section 301 as being defeasible pursuant to such Section 1302 or 1303, in accordance with any
applicable requirements provided pursuant to Section 301 and upon compliance with the conditions
set forth below in this Article. Any such election to have or not to have Sections 1302 and 1303
apply, as the case may be, shall be evidenced by a Board Resolution or in another manner specified
as contemplated by Section 301 for such Securities.

Section 1302. Defeasance and Discharge.

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

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Trustee hereunder and (4) this Article. Subject to compliance with this Article, the Company
may exercise its option (if any) to have this Section applied to the Securities of any series
notwithstanding the prior exercise of its option (if any) to have Section 1303 applied to such
Securities.

Section 1303. Covenant Defeasance.

     Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, or if this Section shall otherwise
apply to any Securities or any series of Securities, as the case may be, (1) the Company shall be
released from its obligations under Section 1005 and any covenants provided pursuant to Section
301(18), 901(2) or 901(7) for the benefit of the Holders of such Securities and (2) the occurrence
of any event specified in Sections 501(4) (with respect to Section 1005 and any such covenants
provided pursuant to Section 301(18), 901(2) or 901(7)) and 501(7) shall be deemed not to be or
result in an Event of Default, in each case with respect to such Securities as provided in this
Section on and after the date the conditions set forth in Section 1304 are satisfied (hereinafter
called “Covenant Defeasance”). For this purpose, such Covenant Defeasance means that, with respect
to such Securities, 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 specified Section (to the extent so
specified in the case of Section 501(4)), whether directly or indirectly by reason of any reference
elsewhere herein to any such Section or by reason of any reference in any such Section to any other
provision herein or in any other document, but the remainder of this Indenture and such Securities
shall be unaffected thereby.

Section 1304. Conditions to Defeasance or Covenant Defeasance.

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

     (1) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee which satisfies the requirements contemplated by Section 609
and agrees to comply with the provisions of this Article applicable to it) as trust funds
in trust for the purpose of making the following payments, specifically pledged as security
for, and dedicated solely to, the benefits of the Holders of such Securities, (A) money in
an amount, or (B) U.S. Government Obligations which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide, not
later than one day before the due date of any payment, money in an amount, or (C) a
combination thereof, in each case sufficient, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee
(or any such other qualifying trustee) to pay and discharge, the principal of and any
premium and interest on such Securities on the respective Stated Maturities, in accordance
with the terms of this Indenture and such Securities. As used herein, “U.S. Government
Obligation” means (x) any security which is (i) a direct obligation of the United States of
America for the payment of which the full faith and credit of the United States of America
is pledged or (ii) an obligation of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of
America, which, in either case (i) or (ii), is not

-51-

 

callable or redeemable at the option of the issuer thereof, and (y) any depositary
receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian
with respect to any U.S. Government Obligation which is specified in Clause (x) above and
held by such bank for the account of the holder of such depositary receipt, or with respect
to any specific payment of principal of or interest on any U.S. Government Obligation which
is so specified and held, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such depositary
receipt from any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of principal or interest evidenced by such depositary
receipt.

     (2) In the event of an election to have Section 1302 apply to any Securities or any
series of Securities, as the case may be, the Company shall have delivered to the Trustee
an Opinion of Counsel stating that (A) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling or (B) since the date of this
instrument, there has been a change in the applicable Federal income tax law, in either
case (A) or (B) to the effect that, and based thereon such opinion shall confirm that, the
Holders of such Securities will not recognize gain or loss for Federal income tax purposes
as a result of the deposit, Defeasance and discharge to be effected with respect to such
Securities and will be subject to Federal income tax on the same amount, in the same manner
and at the same times as would be the case if such deposit, Defeasance and discharge were
not to occur.

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

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

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

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

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

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

     (9) The Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent with respect to such
Defeasance or Covenant Defeasance have been complied with (in each case, subject to the
satisfaction of the condition in clause (5)).

			
	Section 1305.	 	Deposited Money and U.S. Government Obligations

to Be Held in Trust; Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 1003, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee or other qualifying trustee
(solely for purposes of this Section and Section 1306, the Trustee and any such other trustee are
referred to collectively as the “Trustee”) pursuant to Section 1304 in respect of any Securities
shall be held in trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any such Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders
of such Securities, of all sums due and to become due thereon in respect of principal and any
premium and interest, but money so held in trust need not be segregated from other funds except to
the extent required by law.

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

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

Section 1306. Reinstatement.

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

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following such reinstatement of its obligations, the Company shall be subrogated to the rights
(if any) of the Holders of such Securities to receive such payment from the money so held in trust.

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

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

	 	 	 	 	 	 	 
	 	 	AMERICAN INTERNATIONAL GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ STEVEN BENSINGER	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Steven Bensinger	 	 
	 

	 	 	 	Title: Executive Vice President and
CFO	 	 

	 	 	 
	Attest:
	 	 
	 
	 	 
	 
	 	 
	/s/ MERRITT FABEL 

Name: Merritt Fabel

	 	 
	Title:
Assistant Secretary
	 	 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ JULIE SALOVITCH-MILLER	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: JULIE SALOVITCH-MILLER	 	 
	 

	 	 	 	Title: VICE PRESIDENT	 	 

	 	 	 
	Attest:
	 	 
	 
	 	 
	 
	 	 
	/s/ VAN BROWN 

Name: Van Brown

	 	 
	Title: Vice
President and Team Leader
	 	 

 

 

 

AMERICAN INTERNATIONAL GROUP, INC.

 

First Supplemental

Indenture

Dated as of December 19, 2006

 

(Supplemental to Indenture Dated as of October 12, 2006)

 

THE BANK OF NEW YORK,

as Trustee

 

 

 

     FIRST SUPPLEMENTAL INDENTURE, dated as of December 19, 2006 (the “First Supplemental Indenture”),
between American International Group, Inc., a corporation duly organized and existing under the
laws of the State of Delaware (herein called the “Company”), and The Bank of New York, a New York
banking corporation, as Trustee (herein called “Trustee”);

R E C I T A L S:

     WHEREAS, the Company has heretofore executed and delivered to The Bank of New York, as trustee, an
Indenture, dated as of October 12, 2006 (the “Existing Indenture”) (the Existing Indenture, as the
same may be amended or supplemented from time to time, including by this First Supplemental
Indenture, the “Indenture”), providing for the issuance from time to time of the Company’s
unsecured debentures, notes or other evidences of indebtedness (herein and therein called the
“Securities”), to be issued in one or more series as provided in the Indenture;

     WHEREAS, Section 901 of the Existing Indenture permits the Company and the Trustee to enter into an
indenture supplemental to the Existing Indenture to provide for the issuance of, and establish the
form and terms of, additional series of Securities;

     WHEREAS, Sections 201, 301 and 901 of the Existing Indenture permit the form of notes of each
additional series of notes to be established pursuant to an indenture supplemental to the Existing
Indenture;

     WHEREAS, Section 301 of the Existing Indenture permits certain terms of any additional series of
notes to be established pursuant to an indenture supplemental to the Existing Indenture;

     WHEREAS, pursuant to resolutions of (i) the Board of Directors of the Company adopted at a meeting
duly called on March 15, 2006 and (ii) the Finance Committee of the Board of Directors of the
Company adopted at a meeting duly called on December 14, 2006, the Company has authorized the
issuance of $500,000,000 in aggregate principal amount of its Resetable Floating Rate Notes Due
2046 (the “Notes”);

WHEREAS, the Notes will be established as a series under the Indenture;

     WHEREAS, the Company has duly authorized the execution and delivery of this First Supplemental
Indenture to establish the form and terms of the Notes; and

     WHEREAS, all things necessary to make this First Supplemental Indenture a valid agreement according
to its terms have been done;

 

 

     NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

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

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.1
Relation to Existing Indenture

     This First Supplemental Indenture constitutes a part of the Existing Indenture (the provisions of
which, as modified by this First Supplemental Indenture, shall apply to the Notes) in respect of
the Notes but shall not modify, amend or otherwise affect the Existing Indenture insofar as it
relates to any other series of Securities or affects in any manner the terms and conditions of the
Securities of any other series.

Section 1.2 Definitions

     For all purposes of this First Supplemental Indenture, the capitalized terms used herein (i) which
are defined in this Section 1.2 have the respective meanings assigned hereto in this Section 1.2,
and (ii) which are defined in the Existing Indenture (and which are not defined in this Section
1.2) have the respective meanings assigned thereto in the Existing Indenture. For all purposes of
this First Supplemental Indenture:

     1.2.1 All references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this First Supplemental Indenture;

     1.2.2 The terms “herein”, “hereof”, and “hereunder” and words of similar import refer to this First
Supplemental Indenture; and

     1.2.3 The following terms, as used herein, have the following meanings:

     “Agent Member” means any member of, or participant in, the Depositary.

     “Applicable Procedures” means, with respect to any transfer or transaction involving a Global Note
or beneficial interest therein, the rules and procedures of the Depositary for such Note, to the
extent applicable to such transaction and as in effect at the time of such transfer or transaction.

     “Closing Date” means December 19, 2006.

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     “Company” has the meaning set forth in the introductory paragraph of this First Supplemental
Indenture.

     “Conversion Date” has the meaning specified in Section 2.3.

     “Depositary” means, with respect to Notes issuable or issued in whole or in part in the form of one
or more Global Notes, DTC, for so long as it shall be a clearing agency registered under the
Exchange Act, or such successor (which shall be a clearing agency registered under the Exchange
Act) as the Company shall designate from time to time in an Officers’ Certificate delivered to the
Trustee.

     “DTC” means The Depository Trust Company.

     “Existing Indenture” has the meaning set forth in the first recital of this First Supplemental
Indenture.

     “First Supplemental Indenture” has the meaning set forth in the introductory paragraph hereof.

     “Global Note” means a Note that evidences all or part of the Notes and bears the legend specified
in Section 2.2.

     “Indenture” has the meaning set forth in the first recital of this First Supplemental Indenture.

     “Notes” has the meaning stated in the fifth recital of this First Supplemental Indenture.

     “Restricted Global Note” has the meaning specified in Section 2.1.

     “Restricted Note” means all Notes required pursuant to Section 2.6(b) to bear any Restricted Notes
Legend. Such term includes the Restricted Global Note.

     “Restricted Notes Certificate” means a certificate substantially in the form set forth in Annex A.

     “Restricted Notes Legend” means a legend substantially in form of the legend required in the form
of Note set forth in Section 2.2 to be placed upon each Restricted Note.

     “Rule 144A” means Rule 144A under the Securities Act (including any successor rule thereto), as the
same may be amended from time to time.

     “Securities” has the meaning specified in the first recital of this First Supplemental Indenture.

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

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     “Successor Note” of any particular Note means every Note issued after, and evidencing all or a
portion of the same debt as that evidenced by, such particular Note; and any Note authenticated and
delivered under Section 306 of the Existing Indenture in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Note shall be deemed to evidence the same debt as the mutilated,
destroyed, lost or stolen Note.

ARTICLE TWO

GENERAL TERMS AND CONDITIONS OF THE NOTES

Section 2.1 Forms of Notes Generally

     The Notes shall be in substantially the forms set forth in this Article with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by the
Existing Indenture and this First Supplemental Indenture and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon as may be required to
comply with the rules of any securities exchange, or as may, consistent with the Existing Indenture
and this First Supplemental Indenture, be determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

     The Trustee’s certificate of authentication shall be in substantially the form set forth in Section
2.4.

     Upon their original issuance, the Notes shall be issued in the form of a Global Note registered in
the name of the Depositary or its nominee and deposited with the Trustee, as custodian for the
Depositary, for credit by the Depositary to the respective accounts of beneficial owners of the
Notes represented thereby (or such other accounts as they may direct). The Global Note will
constitute a single Security for all purposes of the Indenture. The Global Note together with its
Successor Notes which are Global Notes, are collectively herein called the “Restricted Global
Notes.”

     The Notes will be issued only in registered form. The Notes will be issued in minimum
denominations of $100,000 and multiples of $1,000 in excess thereof.

Section 2.2 Form of Face of the Notes

     THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM AND IN ANY EVENT MAY BE SOLD OR OTHERWISE TRANSFERRED ONLY IN
ACCORDANCE WITH THE INDENTURE, COPIES OF

-4-

 

WHICH ARE AVAILABLE FOR INSPECTION AT THE CORPORATE TRUST OFFICE OF THE TRUSTEE IN NEW YORK.

     EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. EACH HOLDER OF
THIS NOTE REPRESENTS TO AMERICAN INTERNATIONAL GROUP, INC. THAT (a) SUCH HOLDER WILL NOT SELL,
PLEDGE OR OTHERWISE TRANSFER THIS NOTE (WITHOUT THE CONSENT OF AMERICAN INTERNATIONAL GROUP, INC.)
OTHER THAN (i) TO A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION COMPLYING WITH RULE 144A UNDER
THE SECURITIES ACT, (ii) IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT, (iii) OUTSIDE THE
UNITED STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF REGULATION S UNDER THE SECURITIES ACT,
OR (iv) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT,
SUBJECT, IN THE CASE OF CLAUSE (ii) OR (iv), TO THE RECEIPT BY AMERICAN INTERNATIONAL GROUP, INC.
OF AN OPINION OF COUNSEL OR SUCH OTHER EVIDENCE ACCEPTABLE TO AMERICAN INTERNATIONAL GROUP, INC.
THAT SUCH RESALE, PLEDGE OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, (b) SUCH HOLDER WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THE NOTES OTHER THAN IN ACCORDANCE
WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES, STATE SECURITIES LAWS AND BLUE SKY LAWS
AND THAT (c) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS NOTE OF THE RESALE RESTRICTIONS REFERRED TO HEREIN AND DELIVER TO THE TRANSFEREE (OTHER THAN A
QUALIFIED INSTITUTIONAL BUYER) PRIOR TO THE SALE, A COPY OF THE TRANSFER RESTRICTIONS APPLICABLE
HERETO (COPIES OF WHICH MAY BE OBTAINED FROM THE TRUSTEE).

     [INCLUDE IF NOTE IS A GLOBAL NOTE — THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A
DEPOSITARY. THIS NOTE IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN
THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.]

-5-

 

     [INCLUDE IF NOTE IS A GLOBAL NOTE AND THE DEPOSITORY TRUST COMPANY IS THE DEPOSITARY — UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A
NEW YORK CORPORATION, TO AMERICAN INTERNATIONAL GROUP, INC. OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CEDE & CO. (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

AMERICAN INTERNATIONAL GROUP, INC.

RESETABLE FLOATING RATE NOTE DUE 2046

	 	 	 
	No. R-1
	 	 
	CUSIP No.: 026874BC0
	 	 
	 
	 	 
	STATED PRINCIPAL AMOUNT:

	 	US$500,000,000
	 
	 	 
	ORIGINAL ISSUE DATE:

	 	December 19, 2006
	 
	 	 
	INITIAL INTEREST RATE:

	 	5.46% 
	 
	 	 
	INTEREST DETERMINATION DATES:

	 	Two London Banking Days prior to each Interest Reset Date
	 
	 	 
	CALCULATION AGENT:

	 	AIG Financial Products Corp.

     AMERICAN INTERNATIONAL GROUP, INC., a corporation duly organized and existing under the laws of
Delaware (herein called the “Company,” which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or its
registered assigns, the principal sum of $500,000,000 dollars on the Maturity Date, and, subject to
the provisions on the reverse of this Note and if there has been no Conversion Date, to pay the
Accrued Interest on the Maturity Date; or, if there has been a Conversion Date, to pay the Accrued
Interest on the Conversion Date and to pay interest on the Stated Principal Amount from the

-6-

 

most recent Interest Payment Date to which interest has been paid, accrued or duly provided for, in
arrears on each Interest Payment Date.

     Interest on the Stated Principal Amount of this Note shall accrue at a rate per annum equal to the
Initial Interest Rate set forth above until the first Interest Reset Date and thereafter at a rate
equal to LIBOR-Telerate plus the Spread, subject to applicable provisions of law and in accordance
with the provisions set forth on the reverse of this Note. The Spread determined as a result of
each Holder Spread Adjustment or Dealer Spread Adjustment shall remain in effect from the
occurrence of the Holder Spread Adjustment or the Dealer Spread Adjustment, as the case may be,
until the effectiveness of the next Holder Spread Adjustment or Dealer Spread Adjustment, whichever
is sooner, or until the Stated Principal Amount and any unpaid interest (including any unpaid
Accrued Interest) is paid or made available for payment. Interest that is accrued and unpaid on
any Interest Accrual Date will compound and be added to Accrued Interest in accordance with
paragraph 3 on the reverse of this Note. Interest shall accrue on unpaid Accrued Interest at a
rate per annum equal to LIBOR-Telerate (without addition of the Spread).

     Interest will not be payable on this Note until the Maturity Date, unless there is a Conversion
Date. The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date (including Accrued Interest on the Conversion Date, if any) will, as provided in the
Indenture, be paid to the Person in whose name this Note (or one or more predecessor Notes) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the 4th day of June or December (whether or not a Business Day), as the case may be, next preceding
such Interest Payment Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof which shall be given to Holders of Notes of this series not fewer than 10
days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes may be listed, and
upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

     Interest shall be computed on the basis of a 360-day year and the actual number of days elapsed.

     If the Maturity Date falls on a day that is not a Business Day, the payment of principal need
not be made on such date, but may be made on the next succeeding Business Day, with the same force
and effect as if made on the Maturity Date, provided that no interest shall accrue for the period
from and after such Maturity Date.

     Payment of the principal of and interest on this Note will be made at the office or agency of the
Company maintained for that purpose in the Borough of Manhattan, The

-7-

 

City of New York, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.

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

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

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

Dated:

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

[SEAL]

Attest:

 

Section 2.3 Form of Reverse of the Notes

     1. General. This Note is one of a duly authorized issue of securities of the Company (herein
called the “Notes”), designated as its Resetable Floating Rate Notes Due 2046, issued and to be
issued in one or more series under an Indenture, dated as of October 12, 2006 (the “Existing
Indenture”), as supplemented by the First Supplemental Indenture (the “First Supplemental
Indenture”), dated as of December 19, 2006 (as so supplemented, the “Indenture,” which term shall
have the meaning assigned to it in such instrument), from the Company to The Bank of New York, as
Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are,
and are to be, authenticated and delivered. This Note is one of the series designated on the face
hereof.

     The Notes are not subject to redemption at the election of the Company at any time prior to the
Maturity Date.

-8-

 

     2. Definitions. All terms used in this Note which are defined in the Indenture shall have the
meaning assigned to them in the Indenture.

     “Accrued Interest” shall mean, in respect of any date prior to and including the Conversion Date,
(a) on the Original Issue Date, zero and (b) on each date thereafter, the sum of (i) the Accrued
Interest on the next preceding Interest Reset Date (or, in the case of any date on or before the
initial Interest Reset Date, on the Original Issue Date), plus (ii) interest accrued on the Stated
Principal Amount during the Interest Period beginning on the next preceding Interest Reset Date
(or, in the case of any date on or before the initial Interest Reset Date, beginning on the
Original Issue Date) at a rate equal to LIBOR-Telerate plus the Spread for such next preceding
Interest Reset Date (or, in the case of any date on or before the initial Interest Reset Date, at a
rate equal to the Initial Interest Rate specified on the face hereof), plus (iii) except in the
case of any date on or before the initial Interest Reset Date, interest accrued on the Accrued
Interest as of the next preceding Interest Reset Date during the Interest Period beginning on the
next preceding Interest Reset Date at a rate equal to LIBOR-Telerate for such Interest Reset Date.

     “Agent Member” has the meaning set forth in subsection (c) of paragraph 7 hereof.

     “AIG-FS” means AIG Financial Securities Corp., a Delaware corporation and wholly owned indirect
subsidiary of the Company.

     “Applicable Procedures” has the meaning set forth in subsection (c) of paragraph 7 hereof.

     “Business Day” shall mean any day on which commercial banks are open for business (including
dealings in foreign exchange and foreign currency deposits) in New York City.

     “Calculation Agent” has the meaning set forth in subsection (b) of paragraph 3 hereof.

     “Calculation Date” shall have the meaning specified in subsection (d) of paragraph 6 hereof.

     “Conversion Date” has the meaning set forth in paragraph 4 hereof.

     “Dealer Designated Spread” means, with respect to any Interest Reset Date scheduled to occur on or
after December 19, 2007, each of the spreads quoted by the Reference Dealers, in accordance with
the procedures set forth in paragraph 6 hereof, as the Spread to be effective on such Interest
Reset Date.

     “Dealer Spread Adjustment” means, with respect to any Interest Reset Date scheduled to occur on or
after December 19, 2007, adjustment of the Spread on such

-9-

 

Interest Reset Date determined in accordance with the procedures set forth in paragraph 6 hereof.

     “DTC” has the meaning set forth on the face of this Note.

     “Electing Holders” has the meaning set forth in subsection (b) of paragraph 6 hereof.

     “Existing Indenture” has the meaning set forth in paragraph 1 hereof.

     “Failed Remarketing” has the meaning set forth in subsection (g) of paragraph 6 hereof.

     “Final Dealer” has the meaning set forth in clause (iii) of subsection (e) of paragraph 6 hereof.

     “Final Dealer Designated Spread” has the meaning set forth in clause (i) of subsection (e) of
paragraph 6 hereof.

     “Final Dealer Purchase Price” has the meaning set forth in clause (iv) of subsection (e) of
paragraph 6 hereof.

     “First Supplemental Indenture” has the meaning set forth in paragraph 1 hereof.

     “Hold Notice” has the meaning set forth in subsection (b) of paragraph 6 hereof.

     “Hold Notice Ceiling” has the meaning set forth in subsection (b) of paragraph 6 hereof.

     “Hold Notice Floor” has the meaning set forth in subsection (g) of paragraph 6 hereof.

     “Holder Designated Spread” has the meaning set forth in paragraph 5 hereof.

     “Holder Spread Adjustment” shall mean the adjustment of the Spread in accordance with the
procedures set forth in paragraph 5 hereof.

     “Indenture” has the meaning set forth in paragraph 1 hereof.

     “Initial Interest Rate” has the meaning set forth on the face of this Note.

     “Interest Accrual Date” means each Interest Reset Date, to but excluding the Interest Reset Date
next preceding the Conversion Date (if any).

     “Interest Determination Date” has the meaning set forth on the face of this Note.

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     “Interest Payment Date” shall mean each Interest Reset Date, if any, from and including the
Conversion Date, and including the Maturity Date.

     “Interest Period” means the period from and including an Interest Reset Date (or, in the case of
the initial Interest Period, from and including the Original Issue Date) to but excluding the next
Interest Reset Date (or the Maturity Date).

     “Interest Reset Date” means each June 19 and December 19, beginning June 19, 2007, to and including
the Maturity Date; provided, however, that if any Interest Reset Date would otherwise fall on a day
that is not a Business Day, such Interest Reset Date will be the first following day that is a
Business Day, except that if such day falls in the next calendar month, such Interest Reset Date
will be the preceding day that is a Business Day.

     “Original Issue Date” has the meaning set forth on the face of this Note.

     “LIBOR-Telerate” shall mean, on each Interest Determination Date, the rate for deposits in U.S.
Dollars having a maturity of six months (the “Index Maturity”) which appears on the Telerate Page
3750 (as defined below) as of 11:00 a.m. London time on such Interest Determination Date. If on
any Interest Determination Date, the rate for deposits in U.S. Dollars having the Index Maturity
does not appear on the Telerate Page 3750 as specified above, LIBOR-Telerate will be determined on
the basis of the rates at which deposits in U.S. Dollars having the Index Maturity and in a
principal amount equal to an amount that is representative for a single transaction in such market
at such time are offered by four major banks in the London interbank market selected by the
Calculation Agent at approximately 11:00 a.m. London time, on such Interest Determination Date to
prime banks in the London interbank market. The Calculation Agent will request the principal
London office of each of such banks to provide a quotation of its rate. If at least two such
quotations are provided, the rate in respect of such Interest Determination Date will be the
arithmetic mean of the quotations. If fewer than two quotations are provided, LIBOR-Telerate in
respect of such Interest Determination will be the arithmetic mean of the rates quoted by three
major banks in The City of New York, selected by the Calculation Agent, at approximately 11:00 a.m.
New York time, on such Interest Determination Date for loans in U.S. Dollars to leading European
banks, having the Index Maturity and in a principal amount equal to an amount 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 as described in this sentence,
LIBOR-Telerate on such Interest Determination Date will be equal to LIBOR-Telerate in effect on the
day preceding such Interest Determination Date.

     “London Banking Day” shall mean any day on which commercial banks are open for business (including
dealings in foreign exchange and foreign currency deposits) in London.

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     “Market Day” means a day which is a Business Day, a London Banking Day and a day on which markets
for U.S. government securities are open for regular trading in New York, New York.

     “Market Disruption Event” shall mean any of the following (as determined in good faith by the
Calculation Agent): (i) a suspension or material limitation in trading in securities generally on
the New York Stock Exchange (or any successor exchange or market) or the establishment of minimum
prices on such exchange (or market); (ii) a general moratorium on commercial banking activities
declared by either federal or New York state authorities; or (iii) an outbreak or escalation of
major hostilities involving the United States of America or the declaration by the United States of
a national emergency or war, other than any such outbreak, escalation or declaration arising out of
or relating to the U.S. war on terrorism that does not represent a significant departure from
conditions that exist at the date hereof.

     “Maturity Date” shall mean December 19, 2046; provided, however, that if the Maturity Date would
otherwise fall on a day that is not a Business Day, the Maturity Date will be the first following
day that is a Business Day, except that if such day falls in the next calendar month, the Maturity
Date will be the preceding day that is a Business Day.

     “Notes” has the meaning set forth in paragraph 1 hereof.

     “Redemption Amount” shall mean, as of the date of a Failed Remarketing, the sum of (i) the
principal amount of the Remarketed Notes, (ii) Accrued Interest applicable to the Remarketed Notes
as of such date if not previously paid and (iii) any accrued but unpaid interest on the principal
amount of the Remarketed Notes or on Accrued Interest applicable to the Remarketed Notes that has
not been included in Accrued Interest applicable to the Remarketed Notes in accordance with the
procedures set forth in herein.

     “Remarketed Notes” has the meaning set forth in subsection (b) of paragraph 6 hereof.

     “Repurchase Price” has the meaning set forth in subsection (g) of paragraph 6 hereof.

     “Rule 144A Information” has the meaning set forth in paragraph 12 hereof.

     “Securities Act” has the meaning set forth of the face of this Note.

     “Spread” means (i) with respect to the initial Interest Reset Date, 8 basis points and (ii) with
respect to any other Interest Reset Date, the Holder Designated Spread or the Dealer Designated
Spread, as the case may be, as determined for such Interest Reset Date.

     “Stated Principal Amount” has the meaning set forth on the face of this Note.

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     “Telerate Page 3750” shall mean the display page designated as page 3750 on the Dow Jones Telerate
Service (or such other page as may replace page 3750 on that service for the purpose of displaying
London interbank offered rates).

     “Trustee” has the meaning set forth in paragraph 1 hereof.

     “U.S. Dollars” or “US$” shall mean the lawful currency of the United States of America.

     3. Interest. (a) On each Interest Determination Date, the Calculation Agent shall determine
LIBOR-Telerate for the related Interest Reset Date and, upon request of the Trustee, shall notify
the Trustee of (i) LIBOR-Telerate and the Spread then in effect for this Note, if available, (ii)
if determined, LIBOR-Telerate and the Spread that shall become effective as a result of a
determination made on such Interest Determination Date with respect to this Note and (iii) the
amount of Accrued Interest as of the related Interest Reset Date.

     (b) Subject to its right to terminate the appointment of any such agent, the Company shall take
such action as is necessary to ensure that there shall at all relevant times be a qualified
financial institution appointed and acting as its agent for the purpose of performing the actions
contemplated hereby to be performed by the Calculation Agent (such agent, including any successor
agent, the “Calculation Agent”). The Company has initially appointed AIG Financial Products Corp.
as Calculation Agent.

     (c) Interest on this Note shall be computed on the basis of a 360-day year and the actual number
of days elapsed.

     (d) The interest rate on this Note will in no event be higher than the maximum rate permitted by
New York law as the same may be modified by United States law of general application.

     (e) Unless otherwise specified herein, all percentages resulting from any calculation of the rate
of interest 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 (e.g., 9.876545% (or .09876545) will be rounded upward to 9.87655% (or .0987655)), and all U.S. dollar amounts used in
or resulting from such calculation will be rounded to the nearest cent (with one-half cent being
rounded upward).

     4. Coupon Conversion. The Company shall have the right on any Interest Reset Date scheduled to
occur on December 19, 2007 or on any December 19 thereafter until the Maturity Date (any date so
designated, the “Conversion Date”), upon prior written notice delivered to the Trustee and each
Holder, at least 170 days prior to such Interest Reset Date, to elect to pay cash interest on this
Note on each Interest Payment Date on and after the Conversion Date. Any such election, once made,
shall be irrevocable. On the Conversion Date, the Accrued Interest on such Conversion Date shall
become due and payable in the same manner as provided for payments of interest on this Note.

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Following the Conversion Date, interest on the Stated Principal Amount shall be payable on each
Interest Payment Date at a rate equal to LIBOR-Telerate plus the Spread for the Interest Period
then ending.

     5. Holder Spread Adjustment. (a) Each Holder shall have the right to propose the Spread to be
applicable for one or more subsequent consecutive Interest Periods specified by such Holder for
which no Spread has been previously determined, beginning with or following the Interest Period
scheduled to begin on December 19, 2007 (each, a “Holder Designated Spread”) by notice given to the
Trustee not more than 40 days nor fewer than 30 days prior to the Interest Reset Date in respect of
such Interest Period or Interest Periods provided, however that for as long (but only for as long)
as this Note or any portion hereof is issued in the form of a Global Note, each beneficial owner of
the Notes represented by this Note may give such notice in respect of Notes beneficially owned by
it by causing the Agent Member through which such beneficial owner holds such Notes to provide to
the Trustee a notice substantially in the form of Exhibit A attached hereto. The Trustee, the
Calculation Agent and the Company shall be entitled to rely on any such notice so provided by the
Agent Member without independent investigation thereof. The Trustee shall promptly notify the
Calculation Agent of each Holder Designated Spread.

     (b) If Holders representing 100% of the outstanding Stated Principal Amount of Notes propose a
Holder Designated Spread and a common number of subsequent Interest Periods for which their
respective Holder Designated Spreads are to apply, in accordance with paragraph 8(a) above, the
Company shall notify each Holder, the Trustee and the Calculation Agent not later than 25 days
prior to the next Interest Reset Date whether the Company elects to have the highest Holder
Designated Spread be the applicable Spread for the applicable number of subsequent Interest
Periods, beginning on such Interest Reset Date. If the Company so elects, then such highest Holder
Designated Spread shall be the Spread for Interest Reset Dates relating to the applicable Interest
Periods. The adjustment of the Spread as specified in this paragraph 5 is referred to as a “Holder
Spread Adjustment”.

     (c) Upon the occurrence of a Holder Spread Adjustment, the Holder Designated Spread, as determined
pursuant to paragraphs 5(a) and 5(b) above, shall be the Spread until the earliest of (i) the
Maturity Date, (ii) the next Holder Spread Adjustment and (iii) the next Dealer Spread Adjustment.

     (d) If Holders representing 100% of the outstanding Stated Principal Amount of the Notes do not
propose a Holder Designated Spread and a common number of subsequent Interest Periods for which
their respective Holder Designated Spreads are to apply, in accordance with paragraph 5(a) above,
for an Interest Reset Date for which no Spread has been previously determined, or if the Company
fails to make the election specified in paragraph 5(b) above with respect to such an Interest Reset
Date, then the procedures contained in paragraph 6 below shall apply with respect to such an
Interest

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Reset Date. The Company shall notify the Trustee and each Holder of such result not fewer than 25
days prior to any such Interest Reset Date.

     6. Dealer Spread Adjustment. (a) The provisions of this paragraph 6 shall apply with respect to
each Interest Reset Date for which the Spread is not adjusted pursuant to the Holder Spread
Adjustment procedure set forth in paragraph 5 above, except that the provisions of this paragraph 6
shall not in any case apply with respect to any Interest Reset Date scheduled to occur before
December 19, 2007. The procedure by which the Spread is adjusted in accordance with the provisions
of this paragraph is referred to herein as a “Dealer Spread Adjustment”.

     (b) Notwithstanding the purchase of Notes on an Interest Reset Date by the Final Dealer as
contemplated in paragraph 6(e) below, each Holder may elect to retain all or a portion of its Notes
by providing notice of such election (a “Hold Notice”) to the Trustee not later than 20 days prior
to such Interest Reset Date. The Trustee shall promptly notify the Company and the Calculation
Agent of all such Hold Notices. Notwithstanding the foregoing, if, with respect to a particular
Interest Reset Date, Holders (“Electing Holders") deliver Hold Notices with respect to Notes
representing more than 80% of the outstanding Stated Principal Amount of Notes (the “Hold Notice
Ceiling”), a portion of the Notes subject to Hold Notices (not exceeding 20% of the outstanding
Stated Principal Amount of Notes) shall nonetheless be subject to remarketing pursuant to this
paragraph 6, selected by the Trustee by lot from among Electing Holders, to the extent necessary so
that the total amount of Notes remarketed shall equal 20% of the outstanding Stated Principal
Amount of Notes. Such Notes (if any), together with those Notes as to which no Hold Notice has
been delivered, are referred to as “Remarketed Notes” for the respective Interest Reset Date. If,
with respect to any Interest Reset Date, Hold Notices are delivered in respect of Notes in excess
of the Hold Notice Ceiling, the Trustee shall, upon written instructions from the Company, give
written notice to Electing Holders, not later than 5:00 p.m. New York time on the fifteenth day
prior to the Interest Reset Date, of the amount of such Notes that, pursuant to this paragraph
6(b), will be Remarketed Notes, subject to the remarketing procedures set forth in this paragraph 6
for such Interest Reset Date.

     (c) The Spread on all Notes, whether or not they are Remarketed Notes, will be subject to any
Dealer Spread Adjustment that occurs pursuant to this paragraph 6. In the case of a Failed
Remarketing, the Company shall be obligated to purchase, and certain Holders shall be obligated to
sell, Notes on the relevant Interest Reset Date as set forth in section (g) of this paragraph 6.

     (d) On the sixth Market Day prior to each Interest Reset Date to which this paragraph 6 applies
(each, a “Calculation Date”), the Calculation Agent shall take the following actions (all
underlined times noted below are indicative and all references to a specific time are references to
New York City time):

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     (i) 9:00 a.m.: The Company shall provide to the Calculation Agent the name of a Reference
Dealer, and shall provide, for such Reference Dealer so named, the name of, and telephone and
facsimile numbers and email addresses for, one individual who will represent such Reference Dealer;
in addition, the Calculation Agent shall select two additional Reference Dealers such that there
are a total of three Reference Dealers with respect to such Calculation Date (which Reference
Dealer(s) may be (or include) AIG-FS at the Calculation Agent’s option);

     (ii) 9:15 a.m.: The Calculation Agent promptly shall contact each of the Reference Dealers and
request that each Reference Dealer provide to the Calculation Agent the following firm bid for the
benefit of Holders of Remarketed Notes (which bid shall remain firm for 30 minutes): a firm bid
(on an all-in basis) to purchase, for settlement on the related Interest Reset Date, the Remarketed
Notes from their respective Holders for a purchase price equal to the principal amount of the
Remarketed Notes plus (except where the Interest Reset Date is also an Interest Payment Date) the
amount of Accrued Interest applicable to the Remarketed Notes, each as of the applicable Interest
Reset Date, for settlement on the Interest Reset Date, which bid shall designate the Spread
proposed by the Reference Dealer (the “Dealer Designated Spread”) to be effective for the Interest
Period commencing on such Interest Reset Date.

     (e) Provided that neither a Market Disruption Event nor a Failed Remarketing has occurred, on the
second London Banking Day prior to the applicable Interest Reset Date, the following actions shall
occur:

          (i) The Calculation Agent shall notify the Company of the “Final Dealer Designated Spread”,
which shall be the lowest Dealer Designated Spread received by the Calculation Agent in accordance
with the procedures set forth in this paragraph 6.

          (ii) The Spread shall equal, for the Interest Period commencing on such Interest Reset Date,
the Final Dealer Designated Spread.

          (iii) The Reference Dealer providing the Final Dealer Designated Spread shall be deemed the
"Final Dealer”, provided that if two or more Reference Dealers shall have quoted the Final
Dealer Designated Spread, the Company shall determine which of the Reference Dealers is the Final
Dealer or the Final Dealers (and in the latter case, the allocation of Remarketed Notes to be made
between them).

          (iv) The Company shall notify the Trustee that the Final Dealer(s) will purchase, on the
Interest Reset Date, the Remarketed Notes at a price equal to the principal amount of the
Remarketed Notes, plus (except where the Interest Reset Date is also an Interest Payment Date) the
amount of Accrued Interest applicable to the Remarketed Notes, each as of the applicable Interest
Reset Date (such sum, the “Final Dealer Purchase Price”).

     (f) Each Holder of Remarketed Notes shall sell its Remarketed Notes to the Final Dealers on the
Interest Reset Date for a price equal to the percentage of the Final Dealer

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Purchase Price applicable to such Holder’s Remarketed Notes, and in the case of more than one Final
Dealer, according to the allocation designated by the Company under clause (e)(iii) above.

     (g) Notwithstanding the foregoing, if the Calculation Agent determines that, on the applicable
Calculation Date, (i) a Market Disruption Event has occurred or is continuing or (ii) no Reference
Dealer has provided a firm bid in a timely manner in accordance with this paragraph 6 in a manner
satisfactory to the Calculation Agent in its sole discretion (any such occurrence described in this
clause (ii), a “Failed Remarketing”), the steps contemplated above shall be taken on the next
Market Day on which the Calculation Agent determines that no Market Disruption Event or Failed
Remarketing has occurred and is continuing. If the Calculation Agent determines in its sole
discretion that a Market Disruption Event and/or a Failed Remarketing has occurred or is continuing
for at least four consecutive Market Days starting on the applicable Calculation Date, then (A) the
Calculation Agent shall notify the Company of such determination promptly after the close of
business on such fourth Market Day and (B) the Company shall be obligated to purchase, and Holders
shall be obligated to sell, those Notes that would have been otherwise deemed Remarketed Notes had
such Failed Remarketing not occurred. Notwithstanding the foregoing, if with respect to a
particular Interest Reset Date to which the preceding sentence applies, Electing Holders had
delivered Hold Notices with respect to Notes representing less than 20% of the outstanding Stated
Principal Amount of Notes (the “Hold Notice Floor”), the Company shall be obligated to purchase all
Notes, and all Holders, including those Electing Holders who have delivered Hold Notices not
meeting the Hold Notice Floor, shall be obligated to sell all Notes, on the relevant Interest Reset
Date. The Company shall repurchase Notes pursuant to this section (g) on the applicable Interest
Reset Date from the Holders thereof at a purchase price equal to the Stated Principal Amount plus
(except where the Interest Reset Date is also an Interest Payment Date) Accrued Interest and any
accrued but unpaid interest on the Stated Principal Amount that has not been included in Accrued
Interest in accordance with the procedures set forth in paragraph 4 hereof (the “Repurchase
Price”). For the avoidance of doubt, for those Notes as to which (x) Hold Notices have been
delivered and (y) the Hold Notice Floor has been met or exceeded, the Spread shall equal, for the
Interest Period commencing on such Interest Reset Date, the Spread in effect during the immediately
preceding Interest period (except in the case of the initial Interest Reset Date, wherein the
Spread shall be 8 basis points). With respect to those Notes that will be repurchased by the
Company pursuant to this section (g), the Company shall give notice to the Holder that this Note
will be repurchased by the Company on the applicable Interest Reset Date at the price specified
above, from the Holder on such Interest Reset Date, such notice to be given no later than such
second London Banking Day prior to the Interest Reset Date in the manner described below.

     (h) Unless otherwise expressly stated in this paragraph 6, each notice, bid or offer required by
this paragraph 6 to be given by the Reference Dealers shall be given telephonically and shall be
confirmed as soon as possible by fax (or such other means as

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the Calculation Agent may determine)
to each of the Trustee, the Calculation Agent and the Company.

     7. Settlement Procedures. For as long (but only for as long) as this Note or any portion hereof
is issued in the form of a Global Note, the provisions of paragraph 7(a) through 7(f) below,
inclusive, shall apply with respect to this Note or such portion, as the case may be.

     (a) If, on any Interest Reset Date, the Remarketed Notes are purchased by the respective Final
Dealer(s) pursuant to paragraph 6 hereof,

all beneficial interests in the Remarketed Notes held by
or through Agent Members (as defined below) shall be transferred to Depositary

account(s) designated by such Final Dealer(s). The transfers shall be made automatically, without any action
on the part of any holder or beneficial owner, by book entry through the facilities of the
Depositary. Such Final Dealer(s) shall be obligated to make payment of the relevant percentage of
the Final Dealer Purchase Price for the Remarketed Notes to the Depositary or its nominee, for
credit to the account(s) of the Agent Member(s) by or through which beneficial interests in the
Remarketed Notes are held, by the close of business on the applicable Interest Reset Date. Each
such transfer shall be made against the corresponding payment, and each such payment shall be made
against the corresponding transfer, in accordance with the Depositary’s Applicable Procedures. In
all cases, the Company shall remain obligated to make payment of accrued and unpaid interest on
this Note if such Interest Reset Date shall also be an Interest Payment Date (including Accrued
Interest if such Interest Payment Date is also the Conversion Date), with interest payable on the
applicable (or any prior) Interest Payment Date being payable to the Holder of this Note on the
corresponding Regular Record Date.

     (b) If the Final Dealer(s) (or any of them, if more than one) fails to pay the applicable purchase
price for the Remarketed Notes which it is obligated to purchase on the applicable Interest Reset
Date, then a Failed Remarketing shall be deemed to have occurred, and the Company will be obligated
to pay, not later than two Business Days following the applicable Interest Reset Date, the
Redemption Amount for the Remarketed Notes or, if the Hold Notice Floor is not met, the Repurchase
Price for the Notes calculated as of the date of purchase, with settlement otherwise occurring as
described in paragraph 7(a); provided that if the Company concludes, with the concurrence of the
Calculation Agent, that any such failure was solely the result of an operational or administrative
error, and the Final Dealer(s) in question makes payment of the Final Dealer Purchase Price
(together with interest thereon, as determined by the Calculation Agent, to account for the delay)
not later than such second Business Day, no Failed Remarketing shall be deemed to have occurred and
settlement shall take place on such second Business Day as though it was the Interest Reset Date.

     (c) As used herein, (i) “Agent Member” means, at any time, any person who is a member of, or
participant in, the Depositary at such time and (ii) “Applicable Procedures” means, with respect to
any payment, transfer or other transaction to be

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effected with respect to a Global Note, through
the facilities of the Depositary at any time, the policies and procedures of the Depositary
applicable to such transaction, as in effect at such time.

     (d) If the Company is required to purchase the Remarketed Notes or the Notes, then, on the
applicable Interest Reset Date, all beneficial interests in the Remarketed Notes or the Notes held
by or through Agent Members shall be transferred to a Depositary account designated by the Company.
The transfers shall be made automatically, without any action on the part of any Holder or
beneficial owner of the Remarketed Notes or the Notes, by book entry through the facilities of the
Depositary. The Company shall be obligated to make payment of the Redemption Amount for the
Remarketed Notes or the Repurchase Price for the Notes to the Depositary or its nominee, for credit
to the accounts of the Agent Members by or through which beneficial interests in the Remarketed
Notes or the Notes are held, by the close of business on the applicable Interest Reset Date. Each
such transfer shall be made against the corresponding payment, and each such payment shall be made
against the corresponding transfer, in accordance with the Depositary’s Applicable Procedures. If
the Company fails to pay the Redemption Amount for the Remarketed Notes or Repurchase Price for the
Notes when such payment is due, interest will continue to accrue on the Remarketed Notes or the
Notes (including on Accrued Interest) from such Interest Reset Date to the date the payment is
made, at the rate in effect immediately prior to such Interest Reset Date plus one percent, and
shall be payable as part of such Redemption Amount or Repurchase Price, in the same manner and for
credit to the same accounts as such Redemption Amount or Repurchase Price. Whether or not the
Company purchases the Remarketed Notes, the Company shall remain obligated to make payment of
accrued and unpaid interest on this Note on the applicable Interest Reset Date, if it shall also be
an Interest Payment Date (including Accrued Interest if such Interest Payment Date is also the
Conversion Date), with interest being payable to the Holder on the corresponding Regular Record
Date as provided herein.

     (e) The transactions described in paragraphs 7(a) and 7(b) above shall be executed on the
applicable Interest Reset Date through the facilities of the Depositary in accordance with its
Applicable Procedures, and the accounts of the respective Agent Members shall be debited and
credited and beneficial interests in the Remarketed Notes shall be delivered by book entry as
necessary to effect the purchases and sales provided for above. Unless the Depositary’s Applicable
Procedures require otherwise, such transactions shall settle, and all other payments in respect of
the Notes shall be made, in immediately available funds through DTC’s Same-Day Funds Settlement
System. Notwithstanding any provision hereof or of the Indenture, neither the Company, the Trustee
nor the Calculation Agent, nor any agent of any such person, shall have any responsibility with
respect to the Applicable Procedures or for any payments, transfers or other transactions, or any
notices or other communications, among the Depositary, its Agent Members, any other direct or
indirect participants therein and any beneficial owners of a Global Note. For all purposes of this
Note and the Indenture, any payment or notice to be made or given with respect to this Note by the
Company or the Calculation

-19-

 

Agent shall be deemed made or given when made or given to the Depositary or its nominee, in
accordance with its Applicable Procedures.

     (f) The settlement procedures described in this paragraph 7 may be modified, notwithstanding any
contrary terms of the Notes or the Indenture, to the extent required by the Depositary. In
addition, notwithstanding any contrary terms of the Notes or the Indenture, the Company may modify
the settlement procedures described in this paragraph 7 in order to facilitate the settlement
process.

     If any Notes are issued in non-book-entry form, the Company shall modify the procedures
contemplated by the provisions of paragraph 7(a) through 7(e) above, inclusive, so as to ensure
that Interest Reset Date settlements of transactions in such Notes are effected in as comparable a
manner as practical, provided that such modified procedures shall not adversely affect the
interests of the holders of the outstanding Notes in any material respect.

     The settlement procedures contained in this paragraph 7 may be modified, regardless of any contrary
terms of this Note or the Indenture, to the extent required by DTC or, if the book-entry system is
no longer available for the Notes at the relevant time, to the extent required to facilitate these
transactions in non-book-entry form. In addition, the Calculation Agent may modify the settlement
procedures contained in this paragraph 7 in order to facilitate the settlement process.

     8. Sinking
Fund. The Notes do not have the benefit of any sinking fund obligation.

     9. Defeasance. The defeasance provisions in Article Thirteen of the Indenture apply to the Notes.
Pursuant to these provisions, the entire indebtedness of this Note or certain restrictive
covenants and Events of Default with respect to this Note may be defeased at any time, in each case
upon compliance with certain conditions set forth in the Indenture.

     10. Events
of Default; Remedies. (a) If an Event of Default with respect to Notes of this series
shall occur and be continuing, the principal of the Notes of this series may be declared due and
payable in the manner and with the effect provided in the Indenture.

     (b) As set forth in, and subject to, the provisions of the Indenture, no Holder of this Note will
have any right to institute any proceeding with respect to the Indenture or for any remedy
thereunder, unless such Holder shall have previously given to the Trustee written notice of a
continuing Event of Default, the Holders of not less than 25% of the outstanding Stated Principal
Amount of Notes shall have made written request, and offered reasonable indemnity, to the Trustee
to institute such proceeding as trustee, and the Trustee shall not have received from the Holders
of a majority in outstanding Stated Principal Amount of Notes a direction inconsistent with such
request and shall have failed to institute such proceeding within 60 days; provided, however, that
such

-20-

 

limitations do not apply to a suit instituted by the Holder hereof for the enforcement of
payment of the principal of (and premium, if any) or any interest of this Note on or after the
respective due date expressed herein.

     11. Covenants. The Notes are entitled to the benefits of the covenants of the Company set forth
in Article Ten of the Indenture.

     12. Rule 144A
Information. At any time when the Company is not subject to Section 13 or 15(d) of
the Exchange Act, upon the request of a Holder of a Note or of a beneficial owner of an interest in
a Global Note, the Company will promptly furnish or cause to be furnished Rule 144A Information (as
defined below) to such Holder or beneficial owner, or to a prospective purchaser of a Note or a
beneficial interest in a Global Note designated by such Holder or beneficial owner of such interest
in order to permit compliance by such Holder or beneficial owner with Rule 144A under the
Securities Act. “Rule 144A Information” shall be such information as is specified pursuant to
paragraph (d)(4) of Rule 144A under the Securities Act (or any successor provision thereto), as
such provision (or successor provision) may be amended from time to time.

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

     14. Form;
Denomination. The Notes of this series are issuable only in fully registered form
without coupons in denominations of $100,000 and any multiple of $1,000 in excess thereof. As
provided in the Indenture and subject to certain limitations therein set forth, the Notes of this
series are exchangeable for a like aggregate principal amount of Notes of this series and of like
tenor of a different authorized denomination, as requested by the Holder surrendering the same.

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

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

-21-

 

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

Section 2.4
Form of Trustee’s Certificate of Authentication of the
Notes

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

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK 
                    ,

As Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Section 2.5
Title and Terms

     The Notes shall be issued in one series. The aggregate principal amount of the Notes that may
initially be authenticated and delivered under this First Supplemental Indenture is limited to
$500,000,000, except for Notes authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Notes pursuant to Section 304, 305, 306 or 906 of the Existing
Indenture or Article Two of this First Supplemental Indenture. The Company may, without the
consent of the Holders of the Notes, issue additional notes having the same ranking, interest rate,
Stated Maturity and CUSIP number and terms as to status, redemption or otherwise as the Notes, in
which event such notes and the Notes shall constitute one series for all purposes under the
Indenture, including without limitation, amendments, waivers and redemptions.

     The Stated Maturity of the Notes shall be December 19, 2046.

     The Company shall have no obligation to redeem or purchase the Notes pursuant to any sinking fund
or analogous provision, or at the option of a Holder thereof, except as otherwise contemplated by
paragraphs (6) and (7) on the Form of Reverse of the Notes.

     The Notes shall be subject to the defeasance and discharge provisions of Section 1302 of the
Existing Indenture and the defeasance of certain obligations and certain events of default
provisions of Section 1303 of the Existing Indenture.

-22-

 

     The Notes shall be issuable only in fully registered form without coupons and only in denominations
of $100,000 and multiples of $1,000 in excess thereof.

     The Notes shall be executed, authenticated, delivered and dated in accordance with Section 303 of
the Existing Indenture.

Section 2.6
Transfer and Exchanges; Restricted Notes Legends

     (a) Certain Transfers and Exchanges. Transfers and exchanges of Notes and beneficial interests in
a Global Note of the kinds specified in this Section 2.6(a) shall be made only in accordance with
this Section 2.6(a). A Note that is not a Global Note may be transferred, in whole or in part, to
a Person who takes delivery in the form of another Note that is not a Global Note as provided in
Section 305 of the Existing Indenture, provided that the Trustee shall have received a Restricted
Notes Certificate, satisfactory to the Company and duly executed by the transferor Holder or his
attorney duly authorized in writing, in which case the transferee Holder shall take delivery in the
form of a Restricted Note.

     (b) Restricted Notes Legends. The Notes and their Successor Notes shall bear the Restricted Notes
Legend, subject to the following:

     (i) a Note or any portion thereof which is exchanged, upon transfer or otherwise, for a Global Note
or any portion thereof shall bear the Restricted Notes Legend borne by such Global Note while
represented thereby;

     (ii) a new Note which is not a Global Note and is issued in exchange for another Note (including a
Global Note) or any portion thereof, upon transfer or otherwise, shall bear the Restricted Notes
Legend borne by such other Note, provided that, if such new Note is required pursuant to Section
2.6(a) to be issued in the form of a Restricted Note, it shall bear the Restricted Notes Legend;
and

     (iii) a new Note which does not bear a Restricted Notes Legend may be issued in exchange for or in
lieu of a Note (other than a Global Note) or any portion thereof which bears such a legend if, in
the judgment of the Company, placing such a legend upon such new Note is not necessary to ensure
compliance with the registration requirements of the Securities Act, and the Trustee, at the
direction of the Company, shall authenticate and deliver such a new Note as provided in this
Article Two.

-23-

 

ARTICLE THREE

MISCELLANEOUS

Section 3.1 Relationship to Existing Indenture

     The First Supplemental Indenture is a supplemental indenture within the meaning of the Existing
Indenture. The Existing Indenture, as supplemented and amended by this First Supplemental
Indenture, is in all respects ratified, confirmed and approved and, with respect to the Notes, the
Existing Indenture, as supplemented and amended by this First Supplemental Indenture, shall be
read, taken and construed as one and the same instrument.

Section 3.2 Modification of the Existing Indenture

     Except as expressly modified by this First Supplemental Indenture, the provisions of the Existing
Indenture shall govern the terms and conditions of the Notes.

Section 3.3 Governing Law

     This instrument shall be governed by and construed in accordance with the laws of the State of New
York.

Section 3.4 Counterparts

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

Section 3.5 Trustee Makes No Representation

     The recitals contained herein are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this First Supplemental Indenture.

-24-

 

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

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By  	/s/
ROBERT A. GENDER
 	 
	 	 	Name:  	Robert A. Gender 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

Attest:

/s/
KATHLEEN E. SHANNON 

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as Trustee

 	 
	 	By  	/s/
JULIE SALOVITCH-MILLER	 
	 	 	Name:  	JULIE SALOVITCH-MILLER	 
	 	 	Title:  	VICE PRESIDENT	 
	 

-25-

 

ANNEX A — Form of Restricted

Notes Certificate

RESTRICTED NOTES CERTIFICATE

The Bank of New York

101 Barclay Street, Floor 8 West

New York, New York 10286

Attn: Corporate Trust Administration

			
	Re:	 	Resetable Floating Rate Notes Due 2046 of American International Group, Inc. (the “Notes”)

     Reference is made to the Indenture, dated as of October 12, 2006, between American International
Group, Inc. (the “Company”) and The Bank of New York, as Trustee, as supplemented (the
“Indenture”). Terms used herein and defined in the Indenture or in Rule 144A or Rule 144 under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), are used herein as so defined.

     This certificate relates to U.S.$                     principal amount of Notes, which are evidenced by
the following certificate(s) (the “Specified Securities”):

     CUSIP No(s).

     CERTIFICATE No(s).                     

     The person in whose name this certificate is executed below (the “Undersigned”) hereby certifies
that (i) it is the sole beneficial owner of the Specified Securities, (ii) it is acting on behalf
of all the beneficial owners of the Specified Securities and is duly authorized by them to do so or
(iii) it is the Holder of a Global Note and has received a certification to the effect set forth
below. Such beneficial owner or owners are referred to herein collectively as the “Owner”. If the
Specified Securities are represented by a Global Note, they are held through the Depositary or an
Agent Member in the name of the Undersigned, as or on behalf of the Owner. If the Specified
Securities are not represented by a Global Note, they are registered in the name of the
Undersigned, as or on behalf of the Owner.

     The Owner has requested that the Specified Securities be transferred to a person (the “Transferee”)
who will take delivery in the form of a Restricted Note. In connection with such transfer, the
Owner hereby certifies that such transfer is being effected in accordance with Rule 144A or Rule
144 under the Securities Act and all applicable securities laws of the states of the United States
and other jurisdictions. Accordingly, the Owner hereby further certifies as follows:

     (1) Rule 144A Transfers. If the transfer is being effected in accordance with Rule 144A:

A-1

 

     (A) the Specified Securities are being transferred to a person that the Owner and any person acting
on its behalf reasonably believe is a “qualified institutional buyer” within the meaning of Rule
144A, acquiring for its own account or for the account of a qualified institutional buyer; and

     (B) the Owner and any person acting on its behalf have taken reasonable steps to ensure that the
Transferee is aware that the Owner may be relying on Rule 144A in connection with the transfer; and

     (2) Rule 144 Transfers. If the transfer is being effected pursuant to Rule 144:

the transfer is occurring after a holding period of at least one year (computed in accordance with
paragraph (d) of Rule 144) has elapsed since the Specified Securities were last acquired from the
Company or from an affiliate of the Company, whichever is later, and is being effected in
accordance with the applicable amount, manner of sale and notice requirements of Rule 144.

     This certificate and the statements contained herein are made for your benefit and the benefit of
the Company.

Dated:

 
(Print the name of the Undersigned, as such term is defined in the third paragraph of this certificate.)

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

(If the Undersigned is a corporation, partnership or fiduciary, the title of the person signing on behalf of the Undersigned must be stated.)

A-2

 

ANNEX B — Form of

Notice (including Exhibit A)

American International Group, Inc.

INSTRUCTION
TO DTC PARTICIPANTS

                           , 20      [Date of Mailing]

[N.B.: Insert date that is 45 days prior to each Interest Reset Date beginning with or following 12/19/07]

URGENT — IMMEDIATE ATTENTION REQUESTED

DEADLINE FOR RESPONSE:
                           , 20      [DATE]

[N.B.: Insert date 30 days prior to Interest Reset Dates beginning with or following 6/19/07]

The Depository Trust Company (“DTC”) has identified you as a DTC Participant through which
beneficial interests in the American International Group, Inc. (the “Company”) $500,000,000
Resetable Floating Rate Notes Due December 19, 2046, Cusip No. 026874BC0 (the “Notes”) are held.
Terms used but not defined herein shall have the meanings assigned to them in the Notes.

Pursuant to paragraph 6(a) of the Notes, for as long (but only for as long) as the Notes or any
portion thereof are issued in the form of a Global Note, each beneficial owner of the Notes shall
have the right to propose a Holder Designated Spread to be the Spread applicable for one or more
consecutive Interest Periods (beginning with or following the Interest Period scheduled to begin on
December 19, 2007) by notice given to the Trustee not more than 40 days nor fewer than 30 days
prior to the Interest Reset Date in respect of such Interest Period. A beneficial owner may give
such notice in respect of Notes beneficially owned by it by causing the Agent Member/DTC
Participant through which such beneficial owner holds such Notes to provide to the Trustee, on
behalf of such beneficial owner, a notice including such beneficial owner’s Holder Designated
Spread. Such notice from the Agent Member/DTC Participant must be substantially in the form of
Exhibit A attached hereto.

     Pursuant to paragraph 7(b) of the Notes, in the event the Spread is not adjusted pursuant to the
Holder Spread Adjustment procedure set forth in paragraph 6 of the Notes, each Holder of the Notes
may elect to retain all or a portion of its Notes by providing a Hold Notice to the Trustee not
later than 20 days prior to such Interest Reset Date. For as long as the Notes are issued in the
form of a Global Note, such notice must be given to the Trustee by the Depositary, or its nominee,
as Holder of the Notes. In order to facilitate such notice, the Agent Member/DTC Participant must
provide, on behalf of beneficial owners, Hold Notice information to the Depositary in accordance
with the Depositary’s Applicable Procedures and by providing to the Trustee a notice including such
Hold Notice information. Such notice from the Agent Member/DTC Participant must be substantially
in the form of Exhibit A attached hereto.

B-1

 

     It is important that beneficial owners of the Notes receive a copy of the enclosed materials and
that you coordinate with them as soon as possible. The beneficial owners’ rights to propose a
Holder Designated Spread and to submit Hold Notice information depend upon your providing the
notices described above to the Trustee by                           , 20      [Deadline For Response].
Please forward a copy of
the enclosed materials to each beneficial owner that holds interests in the Notes through you. A
separate Notice in the form of Exhibit A should be provided by you to the Trustee for each
beneficial owner that holds interests in the Notes through you. If you require more copies of this
material or have any questions pertaining to this matter, please contact the Trustee.

B-2

 

American International Group, Inc.

Notice to Beneficial Holders of Holders’ Rights to Provide Holder Designated Spreads and Hold Notices

                           , 20      [Date]

[N.B.: Not less than 40 days prior to the Interest Reset Date]

URGENT — IMMEDIATE ATTENTION REQUESTED

Reference is hereby made to the American International Group, Inc. (the “Company”) $500,000,000
Resetable Floating Rate Notes Due December 19, 2046, Cusip No. 026874BC0 (the “Notes”). Terms used
but not defined herein shall have the meanings assigned to them in the Notes.

Pursuant to paragraph 6(a) of the Notes, for as long as the Notes or any portion thereof are issued
in the form of a Global Note, each beneficial owner of the Notes shall have the right to propose a
Holder Designated Spread to be the Spread applicable for one or more consecutive Interest Periods
(beginning with or following the Interest Period scheduled to begin on December 19, 2007) by notice
given to the Trustee not more than 40 days nor fewer than 30 days prior to the Interest Reset Date
in respect of such Interest Period. You, as a beneficial owner, may give such notice in respect of
Notes beneficially owned by you by causing the Agent Member/DTC Participant through which you hold
such Notes to provide to the Trustee, on your behalf, a notice including your Holder Designated
Spread. Such notice from the Agent Member/DTC Participant must be substantially in the form of
Exhibit A attached hereto.

Pursuant to paragraph 7(b) of the Notes, in the event the Spread is not adjusted pursuant to the
Holder Spread Adjustment procedure set forth in paragraph 6 of the Notes, each Holder of the Notes
may elect to retain all or a portion of its Notes by providing a Hold Notice to the Trustee not
later than 20 days prior to such Interest Reset Date. For as long as the Notes are issued in the
form of a Global Note, such notice must be given to the Trustee by the Depositary, or its nominee,
as Holder of the Notes. In order to facilitate such notice, the Agent Member/DTC Participant must
provide, on your behalf, Hold Notice information to the Depositary in accordance with the
Depositary’s Applicable Procedures and by providing to the Trustee a notice including your Hold
Notice information. Such notice from the Agent Member/DTC Participant must be substantially in the
form of Exhibit A attached hereto.

If you, as a beneficial owner of Notes, wish to provide a Holder Designated Spread and/or Hold
Notice information, it is important that you forward such information to the Agent Member/DTC
Participant through which you hold such Notes as soon as possible and request that such Agent
Member/DTC Participant submit a notice in the form of Exhibit A on your behalf. Your rights to
propose a Holder Designated Spread and to submit Hold Notice information depend upon the Agent
Member/DTC Participant

B-3

 

providing
the notices described above to the Trustee on your behalf by                           , 20      [Deadline For Response]. Please provide to your Agent Member/DTC
Participant the information that it will need to complete Exhibit A on your behalf. Do not forward
Exhibit A directly to the Trustee as Exhibit A must be forwarded by your Agent Member/DTC
Participant. If you have any questions pertaining to this matter, please contact your Agent
Member/DTC Participant.

B-4

 

Exhibit A

FORM OF LETTER FROM AGENT MEMBERS

The Bank of New York,

As Trustee

101 Barclay Street, Floor 8 West

New York, New York 10286

The Depository Trust Company

55 Water Street

New York, New York 10041

Ladies and Gentlemen:

Reference is made to the note (Cusip No. 026874BC0 ) registered in the name of Cede & Co. as
nominee of the Depository Trust Company (“DTC”), representing $500,000,000 stated principal amount
of Resetable Floating Rate Notes due December 19, 2046 (the “Notes”) of American International
Group, Inc., a Delaware corporation (the “Company”).

The undersigned hereby confirms that it is a DTC participant (DTC Participant No.
                    ) and that $                     in aggregate outstanding Stated Principal Amount of
the Notes is held through the undersigned. The undersigned acknowledges that the Company, the
Calculation Agent, the Trustee and others will rely upon the information contained herein.

This letter relates to                     ** stated principal amount of the Notes held by us on
behalf of the beneficial owner of such Notes.

On behalf of and upon the instructions of the beneficial owner of such Notes, the undersigned
hereby provides the following information pursuant to paragraphs 6 and 7 of the Notes:

The beneficial owner wishes to propose a Holder Designated Spread. Yes      ** No      **

If yes, proposed Holder Designated Spread:      ** per cent. (      ** basis points)

If yes, proposed number of Interest Periods for which Holder Designated Spread is to apply:      

B-5

 

The beneficial owner wishes to deliver a Hold Notice. Yes      ** No      **

If yes, principal amount for which Hold Notice is applicable:                     **

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[Name of DTC Participant]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

 

			
	**	 	Denotes information to be provided by the beneficial owner to the Agent
Member.

B-6

 

AMERICAN INTERNATIONAL GROUP, INC.

 

Second Supplemental

Indenture

Dated as of January 18, 2007

 

(Supplemental to Indenture Dated as of October 12, 2006)

 

THE BANK OF NEW YORK,

as Trustee

 

 

     SECOND SUPPLEMENTAL INDENTURE, dated as of January 18, 2007 (the “Second Supplemental
Indenture”), between American International Group, Inc., a corporation duly organized and existing
under the laws of the State of Delaware (herein called the “Company”), and The Bank of New York, a
New York banking corporation, as Trustee (herein called “Trustee”);

R E C I T A L S:

     WHEREAS, the Company has heretofore executed and delivered to The Bank of New York, as
trustee, an Indenture, dated as of October 12, 2006 (the “Base Indenture”) (the Base Indenture, as
the same may be amended or supplemented from time to time, including by this Second Supplemental
Indenture, the “Indenture”), providing for the issuance from time to time of the Company’s
unsecured debentures, notes or other evidences of indebtedness (herein and therein called the
“Securities”), to be issued in one or more series as provided in the Indenture, and the First
Supplemental Indenture, dated as of December 19, 2006, to the Base Indenture, establishing a series
of Securities under the Base Indenture;

     WHEREAS, Section 901(5) of the Base Indenture permits the Company and the Trustee to enter
into an indenture supplemental to the Base Indenture to add to, change or eliminate any of the
provisions in the Indenture in respect of one or more series of Securities, provided
that any such addition, change or elimination (A) shall neither (i) apply to any Security of
any series created prior to the execution of such supplemental indenture and entitled to the
benefit of such provision nor (ii) modify the rights of the Holder of any such Security with
respect to such provision or (B) shall become effective only when there is no Security described in
clause (i) Outstanding;

     WHEREAS, pursuant to the terms of the Base Indenture and this Second Supplemental Indenture,
on January 18, 2007, the Company intends to issue $10,000,000 principal amount of its Securities to
be known as its US Dollar Zero Coupon Callable Notes due January 18, 2047 (the “Notes”), to be
issued as part of its Medium-Term Notes, Series AIG-FP;

     WHEREAS, the Company and the Trustee wish to amend the terms of Section 1104 of the Base
Indenture as it applies to the Notes to reduce the minimum period for the giving of a notice of
redemption to Holders of Securities pursuant to Article 11 of the Base Indenture;

     WHEREAS, pursuant to resolutions of (i) the Board of Directors of the Company adopted at a
meeting duly called on March 15, 2006 and (ii) the Finance Committee of the Board of Directors of
the Company adopted at a meeting duly called on December 14, 2006, the Company has duly authorized
the execution and delivery of this Second Supplemental Indenture; and

 

 

     WHEREAS, all things necessary to make this Second Supplemental Indenture a valid agreement
according to its terms have been done;

     NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH:

     The Company covenants and agrees with the Trustee as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 1.1 Relation to Base Indenture

     This Second Supplemental Indenture constitutes a part of the Base Indenture in respect of the
Notes, but shall not modify, amend or otherwise affect the Base Indenture insofar as it relates to
any other Securities.

Section 1.2 Definitions

     For all purposes of this Second Supplemental Indenture, the capitalized terms used herein
which are defined in the Base Indenture have the respective meanings assigned thereto in the Base
Indenture.

ARTICLE TWO

GENERAL TERMS AND CONDITIONS OF THE SECURITIES

Section 2.1 Notice of Redemption

     The first paragraph of Section 1104 of the Base Indenture is amended and restated as follows:

     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
10 days nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed, at his address appearing in the Security Register.

-2-

 

ARTICLE THREE

MISCELLANEOUS

Section 3.1 Relationship to Base Indenture

     The Second Supplemental Indenture is a supplemental indenture within the meaning of the Base
Indenture. The Base Indenture, as supplemented and amended by this Second Supplemental Indenture,
is in all respects ratified, confirmed and approved and, as supplemented and amended by this Second
Supplemental Indenture, shall be read, taken and construed as one and the same instrument.

Section 3.2 Modification of the Base Indenture

     Except as expressly modified by this Second Supplemental Indenture, the provisions of the Base
Indenture shall continue to apply to each Security issued thereunder.

Section 3.3 Governing Law

     This instrument shall be governed by and construed in accordance with the laws of the State of
New York.

Section 3.4 Counterparts

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

Section 3.5 Trustee Makes No Representation

     The recitals contained herein are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Second Supplemental Indenture.

-3-

 

     In Witness Whereof, the parties hereto have caused this Second Supplemental Indenture
to be duly executed all as of the day and year first above written.

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By  	/s/
ROBERT A. GENDER	 
	 	 	Name:  	Robert A. Gender	 
	 	 	Title:  	Vice President and Treasurer	 
	 

Attest:

/s/
KATHLEEN
E. SHANNON

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as Trustee

 	 
	 	By  	/s/
JULIE SALOVITCH-MILLER
	 
	 	 	Name:  	Julie Salovitch-Miller	 
	 	 	Title:  	VICE PRESIDENT	 
	 

 

AMERICAN INTERNATIONAL GROUP, INC.

 

Third Supplemental

Indenture

Dated as of March 23, 2007

 

(Supplemental to Indenture Dated as of October 12, 2006)

 

THE BANK OF NEW YORK,

as Trustee

 

     THIRD SUPPLEMENTAL INDENTURE, dated as of March 23, 2007 (the “Third Supplemental Indenture”),
between American International Group, Inc., a corporation duly organized and existing under the
laws of the State of Delaware (herein called the “Company”), and The Bank of New York, a New York
banking corporation, as Trustee (herein called “Trustee”);

R E C I T A L S:

     WHEREAS, the Company has heretofore executed and delivered to The Bank of New York, as
trustee, an Indenture, dated as of October 12, 2006 (the “Base Indenture”) (the Base Indenture, as
the same may be amended or supplemented from time to time, including by this Third Supplemental
Indenture, the “Indenture”), providing for the issuance from time to time of the Company’s
unsecured debentures, notes or other evidences of indebtedness (herein and therein called the
“Securities”), to be issued in one or more series as provided in the Indenture, the First
Supplemental Indenture, dated as of December 19, 2006, to the Base Indenture, establishing a series
of Securities under the Base Indenture, the Second Supplemental Indenture, dated as of January 18,
2007, to the Base Indenture, amending the redemption provisions of the Base Indenture in connection
with a specific issuance of securities;

     WHEREAS, Section 901(5) of the Base Indenture permits the Company and the Trustee to enter
into an indenture supplemental to the Base Indenture to add to, change or eliminate any of the
provisions in the Indenture in respect of one or more series of Securities, provided
that any such addition, change or elimination (A) shall neither (i) apply to any Security of
any series created prior to the execution of such supplemental indenture and entitled to the
benefit of such provision nor (ii) modify the rights of the Holder of any such Security with
respect to such provision or (B) shall become effective only when there is no Security described in
clause (i) Outstanding;

     WHEREAS, pursuant to the terms of the Base Indenture and this Third Supplemental Indenture, on
March 23, 2007, the Company intends to issue $15,000,000 principal amount of its Securities to be
known as its CMS Curve Accrual Notes due March 23, 2022 (the “Notes”), to be issued as part of its
Medium-Term Notes, Series AIG-FP;

     WHEREAS, the Company and the Trustee wish to amend the terms of Section 1104 of the Base
Indenture as it applies to the Notes to reduce the minimum period for the giving of a notice of
redemption to Holders of Securities pursuant to Article 11 of the Base Indenture;

     WHEREAS, pursuant to resolutions of (i) the Board of Directors of the Company adopted at a
meeting duly called on March 15, 2006 and (ii) the Finance Committee of the Board of Directors of
the Company adopted at a meeting duly called on

 

December 14, 2006, the Company has duly authorized the execution and delivery of this Third Supplemental
Indenture; and

     WHEREAS, all things necessary to make this Third Supplemental Indenture a valid agreement
according to its terms have been done;

     NOW, THEREFORE, THIS THIRD SUPPLEMENTAL INDENTURE WITNESSETH:

     The Company covenants and agrees with the Trustee as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 1.1 Relation to Base Indenture

     This Third Supplemental Indenture constitutes a part of the Base Indenture in respect of the
Notes, but shall not modify, amend or otherwise affect the Base Indenture insofar as it relates to
any other Securities.

Section 1.2 Definitions

     For all purposes of this Third Supplemental Indenture, the capitalized terms used herein which
are defined in the Base Indenture have the respective meanings assigned thereto in the Base
Indenture.

ARTICLE TWO

GENERAL TERMS AND CONDITIONS OF THE SECURITIES

Section 2.1 Notice of Redemption

     The first paragraph of Section 1104 of the Base Indenture is amended and restated as follows:

     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
5 days nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed, at his address appearing in the Security Register.

-2-

 

ARTICLE THREE

MISCELLANEOUS

Section 3.1 Relationship to Base Indenture

     The Third Supplemental Indenture is a supplemental indenture within the meaning of the Base
Indenture. The Base Indenture, as supplemented and amended by this Third Supplemental Indenture,
is in all respects ratified, confirmed and approved and, as supplemented and amended by this Third
Supplemental Indenture, shall be read, taken and construed as one and the same instrument.

Section 3.2 Modification of the Base Indenture

     Except as expressly modified by this Third Supplemental Indenture, the provisions of the Base
Indenture shall continue to apply to each Security issued thereunder.

Section 3.3 Governing Law

     This instrument shall be governed by and construed in accordance with the laws of the State of
New York.

Section 3.4 Counterparts

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

Section 3.5 Trustee Makes No Representation

     The recitals contained herein are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Third Supplemental Indenture.

-3-

 

     In Witness Whereof, the parties hereto have caused this Third Supplemental Indenture
to be duly executed all as of the day and year first above written.

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By  	/s/
ROBERT A. GENDER	 
	 	 	Name:  	Robert A. Gender	 
	 	 	Title:  	Vice President and Treasurer	 
	 

Attest:

/s/
KATHLEEN
E. SHANNON

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as Trustee

 	 
	 	By  	/s/
JULIE SALOVITCH-MILLER	 
	 	 	Name:  	Julie Salovitch-Miller	 
	 	 	Title:  	VICE PRESIDENT	 
	 

 

AMERICAN INTERNATIONAL GROUP, INC.

 

Fourth Supplemental

Indenture

Dated as of April 18, 2007

 

(Supplemental to Indenture Dated as of October 12, 2006)

 

THE BANK OF NEW YORK,

as Trustee

 

 

     FOURTH SUPPLEMENTAL INDENTURE, dated as of April 18, 2007 (the “Fourth Supplemental
Indenture”), between American International Group, Inc., a corporation duly organized and existing
under the laws of the State of Delaware (herein called the “Company”), and The Bank of New York, a
New York banking corporation, as Trustee (herein called “Trustee”);

R E C I T A L S:

     WHEREAS, the Company has heretofore executed and delivered to The Bank of New York, as
trustee, an Indenture, dated as of October 12, 2006 (the “Base Indenture”) (the Base Indenture, as
the same may be amended or supplemented from time to time, including by this Fourth Supplemental
Indenture, the “Indenture”), providing for the issuance from time to time of the Company’s
unsecured debentures, notes or other evidences of indebtedness (herein and therein called the
“Securities”), to be issued in one or more series as provided in the Indenture, the First
Supplemental Indenture, dated as of December 19, 2006, to the Base Indenture, establishing a series
of Securities under the Base Indenture, the Second Supplemental Indenture, dated as of January 18,
2007, to the Base Indenture, amending the redemption provisions of the Base Indenture in connection
with a specific issuance of securities, and the Third Supplemental Indenture, dated as of March 23,
2007, amending the redemption provisions of the Base Indenture in connection with a specific
issuance of securities;

     WHEREAS, the Company has established the following series under the Indenture: Medium-Term
Notes, Series G; Medium-Term Notes, Series AIG-FP; and Medium-Term Notes, Series MP, Matched
Investment Program (each an “Existing Series”);

     WHEREAS, Section 901(5) of the Base Indenture permits the Company and the Trustee to enter
into an indenture supplemental to the Base Indenture to add to, change or eliminate any of the
provisions in the Indenture in respect of one or more series of Securities, provided
that any such addition, change or elimination (A) shall neither (i) apply to any Security of
any series created prior to the execution of such supplemental indenture and entitled to the
benefit of such provision nor (ii) modify the rights of the Holder of any such Security with
respect to such provision or (B) shall become effective only when there is no Security described in
clause (i) Outstanding;

     WHEREAS, the Company and the Trustee wish to amend the terms of Sections 301 and 1104 of the
Base Indenture to allow the Company to reduce the minimum period for the giving of a notice of
redemption to Holders of Securities pursuant to Article 11 of the Base Indenture;

     WHEREAS, the changes contemplated in this Fourth Supplemental Indenture comply with the
requirements of Section 901(5) of the Base Indenture;

 

 

     WHEREAS, pursuant to resolutions of (i) the Board of Directors of the Company adopted at a
meeting duly called on March 15, 2006 and (ii) the Finance Committee of the Board of Directors of
the Company adopted at a meeting duly called on December 14, 2006, the Company has duly authorized
the execution and delivery of this Fourth Supplemental Indenture; and

     WHEREAS, all things necessary to make this Fourth Supplemental Indenture a valid agreement
according to its terms have been done;

     NOW, THEREFORE, THIS FOURTH SUPPLEMENTAL INDENTURE WITNESSETH:

     The Company covenants and agrees with the Trustee as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 1.1 Relation to Base Indenture

     This Fourth Supplemental Indenture constitutes a part of the Base Indenture in respect of
Securities issued on or after the date hereof, including additional Securities issued under an
Existing Series, but shall not modify, amend or otherwise affect the Base Indenture insofar as it
relates to any other Securities, including any existing Securities issued under an Existing Series.

Section 1.2 Definitions

     For all purposes of this Fourth Supplemental Indenture, the capitalized terms used herein
which are defined in the Base Indenture have the respective meanings assigned thereto in the Base
Indenture.

ARTICLE TWO

GENERAL TERMS AND CONDITIONS OF THE SECURITIES

Section 2.1 Notice of Redemption

     The first paragraph of Section 1104 of the Base Indenture is amended and restated as follows:

     Unless otherwise specified as contemplated by Section 301, notice of redemption shall be given
by first-class mail, postage prepaid, mailed not less than 5 Business Days

-2-

 

nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed, at his address appearing in the Security Register.

Section 2.2 Terms of the Securities

     Section 301(7) of the Base Indenture is amended and restated as follows:

     (7) the period or periods within which, the price or prices at which and the terms and
conditions upon which (including the notice period, if different from the notice period set forth
in Section 1104) any Securities of the series may be redeemed, in whole or in part, at the option
of the Company and, if other than by a Board Resolution, the manner in which any election by the
Company to redeem the Securities shall be evidenced;

ARTICLE THREE

MISCELLANEOUS

Section 3.1 Relationship to Base Indenture

     The Fourth Supplemental Indenture is a supplemental indenture within the meaning of the Base
Indenture. The Base Indenture, as supplemented and amended by this Fourth Supplemental Indenture,
is in all respects ratified, confirmed and approved and, as supplemented and amended by this Fourth
Supplemental Indenture, shall be read, taken and construed as one and the same instrument.

Section 3.2 Modification of the Base Indenture

     Except as expressly modified by this Fourth Supplemental Indenture, the provisions of the Base
Indenture shall continue to apply to each Security issued thereunder.

Section 3.3 Governing Law

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

Section 3.4 Counterparts

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

-3-

 

Section 3.5 Trustee Makes No Representation

     The recitals contained herein are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Fourth Supplemental Indenture.

-4-

 

     In Witness Whereof, the parties hereto have caused this Fourth Supplemental Indenture
to be duly executed all as of the day and year first above written.

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By  	/s/
ROBERT A. GENDER	 
	 	 	Name:  	Robert A. Gender	 
	 	 	Title:  	Vice President and Treasurer	 
	 

Attest:

/s/
KATHLEEN
E. SHANNON

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as Trustee

 	 
	 	By  	/s/
JULIE SALOVITCH-MILLER	 
	 	 	Name:  	Julie Salovitch-Miller	 
	 	 	Title:  	VICE PRESIDENT

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