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"Certain portions of this Exhibit have been omitted and filed separately with the Commission based upon a request for confidential treatment."

Exhibit 10.33  

 
 

CONTRACT FOR THE SALE OF
  URANIUM CONCENTRATES    
    

THIS CONTRACT is made with effect as of the 15th day of June 2005. 

BETWEEN:  

URI, Inc., a company under the laws of the State of Delaware having its principal office in Dallas, Texas
("URI"or "Seller") 

AND:  

ITOCHU Corporation, a company having its principal office at 5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo
107-8077, Japan ("ITOCHU" or "Buyer") with ITOCHU Petroleum Co., (Hong Kong) Ltd., a
corporation organized and existing under and by virtue of the laws of Hong Kong, with having its principal office at 28th Floor, United Centre, 95 Queensway, Hong Kong ("Buyer's Payment
Assignee") on the other. 

WHEREAS URI has offered to sell and ITOCHU wishes to purchase a quantity of uranium concentrates on the terms and conditions set forth in this
Agreement, 

NOW THEREFORE, in consideration of the premises and the mutual obligations hereinafter described and intending to be legally bound, the Parties agree as
follows: 

ARTICLE I

INTERPRETATION  

        1.01    Definitions:    In this Agreement the following terms and expressions shall have the following meanings: 

	(a)
	"Agreed
Rate" means a rate per annum that is equal to two (2%) percentage points in excess of the prime rate of interest per annum announced by the JP Morgan Chase Bank at New York,
New York, as its prime rate of interest for U.S. dollar commercial loans;

	(b)
	"Book
Transfer" means the transfer of U3O8 on the books of the Converter from the account of URI, or an account designated by URI, to the account of ITOCHU, or
an account designated by ITOCHU;

	(c)
	"Business
Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in the United States of America;

	(d)
	"Converter"
means the conversion facilities of ConverDyn, located in Metropolis, IL.

	(e)
	"Concentrates"
means mill concentrates containing U3O8;

	(f)
	"Concentrates
Price" is the price payable by ITOCHU to URI per pound of U3O8 delivered hereunder and shall be determined as the Market Price less a fixed,
non-escalated discount of $[REDACTED] per pound U3O8;

	(g)
	"Delivery
Certificate" means a document including the information of Delivery Date, delivered quantity and origin by which the Converter confirms Book Transfer of Concentrates 

1

 

for
the account of and on behalf of Buyer, and which has been signed by an authorised person of the Converter; 

	(h)
	"Delivery
Date" means any date, between July 1, 2007 and December 31, 2007, upon which URI delivers Concentrates to ITOCHU, URI shall provide a non-binding
estimate to ITOCHU no later than December 1, 2006;

	(i)
	"Delivery
Notice" means the written notice issued by URI and provided to ITOCHU 120 days prior to a Delivery Date.

	(j)
	"Delivery
Quantity" means a total of 345,000 pounds U3O8 which may be delivered by URI in up to three separate deliveries to ITOCHU;

	(k)
	"Market
Price" means the average of the month end spot prices for U3O8 published for the month immediately preceding the month in which a Delivery Date occurs
by TradeTech and the Ux Consulting Co., LLC. Both spot prices shall be applicable to origins of U3O8 legally acceptable for use in U.S. reactors on the Delivery Date.

	(j)
	"Origin"
means the country in which the Delivery Quantity was mined and milled;

	(k)
	"Party"
means either ITOCHU or URI and "Parties" means both of them;

	(l)
	"Suspension
Agreement" means the suspension agreement which has been entered into and is still in force as of the date of execution of this Agreement between the United States
Department of Commerce and The Russian Federation concerning the import of uranium into the United States of America as such agreement may be amended or replaced; and

	(m)
	"U3O8"
means natural uranium concentrates expressed as triuranium octoxide. 

        1.02    Headings:    The division of this Agreement into articles and sections, and the insertion of headings, are for
convenience of reference only and shall not affect the construction or interpretation of this Agreement. Any reference herein to an article, section or other subdivision is a reference to such
provision as contained in this Agreement. 

        1.03    Expanded Meanings:    In this Agreement, unless there is something in the subject matter or context
inconsistent therewith, the singular shall include the plural and the plural shall include the singular. 

        1.04    Calculation of Number of Days:    In any case in which a number of days is prescribed in this
Agreement, the same shall be determined exclusive of the first day and inclusive of the last day. 

        1.05    Rounding of Numerical Figures:    Whenever a numerical figure is to be rounded or calculated to fewer digits
than the number of digits available, the following procedure shall be applied unless otherwise specified herein: 

	(a)
	if
the first digit discarded is less than five (5), the last digit retained will not be changed; and

	(b)
	if
the first digit discarded is equal to or greater than five (5), the last digit retained will be increased by one (1). 

        1.06    Currency:    All amounts and sums of money referred to in this Agreement are expressed in terms of United
States dollars and all amounts and sums payable hereunder shall be paid in lawful money of the United States of America. 

        1.07    Entire Agreement:    This Agreement contains all the terms of the mutual understanding between the Parties
with respect to the subject matter of this Agreement and supersedes and replaces any and all written and oral arrangements, correspondence, conversations, and documents made and exchanged between the
Parties with respect to the subject matter of this Agreement prior to the execution of this Agreement except as otherwise specifically provided for herein. Any modification, 

2

 

alteration,
or amendment of this Agreement shall be in writing dated after the date hereof and duly executed by both Parties. 

ARTICLE II

BASIC TERMS OF PURCHASE AND SALE  

        2.01    Basic Agreement:    On the terms and conditions set forth in this Agreement, URI shall sell and deliver to
ITOCHU, and ITOCHU shall purchase, pay for and take delivery from URI of the Delivery Quantity on the Delivery Date. 

        2.02    Delivery, Delivery location and Delivery Date:    On the Delivery Date, URI shall deliver the Delivery
Quantity to ITOCHU by Book Transfer at the Converter. Delivery of the Delivery Quantity shall occur at the time the Converter makes the Book Transfer. 

        2.03    Origin:    The Delivery Quantity may be of any Origin or combination of Origins that are deliverable to and
usable by nuclear electric generating facilities in the United States of America without the imposition of any tariffs, duties or similar charges. 

        2.04    Conveyance:    URI shall issue to the Converter an instruction to Book Transfer the Delivery Quantity on the
Delivery Date. URI shall instruct the Converter to provide ITOCHU and URI with a copy of the Delivery Certificate by facsimile transmission immediately following the conclusion of such Book Transfer. 

        2.05    Representation and Warranties by URI:    URI represents and warrants to ITOCHU that: 

	(a)
	URI
will have good and marketable title to the Delivery Quantity being sold to ITOCHU and will convey good and marketable title thereto, free and clear of any liens, charges or
encumbrances of any description;

	(b)
	the
Delivery Quantity will conform to the Origin requirements described in Section 2.03;

	(c)
	no
portion of the Delivery Quantity will have been obtained by URI under or through any arrangement, swap, or exchange that violates any of the laws of the United States of America
regarding the importation or use of U3O8 or is designed to circumvent the import limits for uranium under the Suspension Agreement; and

	(d)
	the
transaction set forth in this Agreement is not part of any arrangement, swap, or exchange by URI that violates any of the laws of the United States of America regarding the
importation or use of U3O8 or is designed to circumvent the import limits for uranium under the Suspension Agreement. 

        The
foregoing representations and warranties constitute continuing representations and warranties for the benefit of URI and survive the completion of the transactions contemplated by
this Agreement. 

        2.06    Representations and Warranties of ITOCHU:    ITOCHU represents and warrants to URI that: 

	(a)
	The
Delivery Quantity will be used exclusively for peaceful, non-explosive purposes in accordance with all applicable laws and regulations;

	(b)
	the
transaction set forth in this Agreement is not part of any arrangement, swap, or exchange by ITOCHU that violates any of the laws of the United States of America regarding the
importation or use of uranium or which is designed to circumvent the import limits for uranium under the Suspension Agreement; and

	(c)
	ITOCHU
will impose the obligations in Section 2.06 (a) and (b) on any person, company or other entity with which ITOCHU enters into an arrangement for the sale,
transfer exchange or other disposition of any portion of the Delivery Quantity. 

3

 

        The
foregoing representations and warranties constitute continuing representations and warranties for the benefit of URI and survive the completion of the transactions contemplated by
this Agreement. 

        2.07    Exclusivity of Warranties:    THE EXPRESS WARRANTIES SET FORTH HEREIN ARE EXCLUSIVE, AND NO OTHER WARRANTIES
OF ANY KIND, WHETHER STATUTORY, WRITTEN, ORAL OR IMPLIED (INCLUDING WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OR MERCHANTABILITY), SHALL APPLY. 

        2.08    Permits:    Each Party shall, at its own expense, be responsible for obtaining all approvals, authorization,
consents, licenses, and permits necessary to carry out its obligations hereunder, and to the extent necessary, the other party shall co-operate as to the obtaining of such approvals,
authorizations, consents, licenses, and permits. 

        2.09    Costs:    URI will assume any fees, costs or charges incurred in carrying out the Book Transfer. 

ARTICLE III

PURCHASE PRICE AND PAYMENT  

        3.01    Concentrates Price:    The amount payable per pound U3O8 by ITOCHU for the Delivery
Quantity delivered by URI pursuant to this Agreement shall be the Market Price as defined in Article 1.01(j) less a fixed, non-escalated discount of
$[REDACTED] per pound. 

        3.02    Invoices:    At the Delivery Date, URI shall send ITOCHU an invoice together with the back-up data
necessary to enable ITOCHU to verify the price indicators and/or published statistics used to calculate the Purchase Price. 

        3.03    Payment:    Buyer's Payment Assignee shall pay the invoice within 30 days of the Delivery Date subject
to ITOCHU's prior receipt of Converter's Delivery Certificate and URI's invoice detailing correct payment instructions. If such day on which payment is due is not a Business Day, the previous Business
Day will be substituted. Payment to URI of the full amount invoiced shall be made by electronic transfer of funds immediately available to URI at the bank account designated on the invoice, free from
all charges or deductions. 

        3.04    Interest:    If the amount on URI's invoice, calculated in accordance with Section 3.01, is not paid at
or within the times specified in Section 3.03, such amount shall bear interest from the due date until the actual date of payment at the Agreed Rate. 

ARTICLE IV

TAXES, DUTIES OR CHARGES  

        4.01    Taxes, Duties or Charges:    URI shall be responsible for and shall pay any taxes, imposts, or duties imposed
or levied by or payable to any taxing authority upon or with respect to any or all of such Delivery Quantity prior to delivery Buyer's Payment Assignee shall be responsible for and shall pay any
taxes, imposts, or duties imposed or levied by or payable to any taxing authority upon or with respect to any or all of the Delivery Quantity, or the use thereof, after delivery of the Delivery
Quantity to ITOCHU. 

ARTICLE V

TITLE AND RISK OF LOSS  

        5.01    Title and Risk of Loss:    Upon completion of the Book Transfer, title to the Delivery Quantity and, as
between URI and ITOCHU, all risk of loss of or damage to the Delivery Quantity and to persons or properties caused by the Delivery Quantity shall pass from URI to ITOCHU. 

4

 
ARTICLE VI

LIMITATION OF REMEDIES AND DAMAGES  

        6.01    Failure to Transfer:    In the event of failure to effect a Book Transfer on the Delivery Date for any reason,
other than an Event of Force Majeure pursuant to Article VII, URI's liability to ITOCHU for claims of any kind shall be limited to the difference between ITOCHU's reasonable, direct cost of
purchasing a pound of replacement U3O8 times the number of pounds of U3O8 not delivered under this Agreement, and the Concentrates Price times the
number of pounds of U3O8 not delivered. 

        6.02    Consequential Damages:    Except as otherwise specifically set forth herein, in no event, whether under
contract, tort (including negligence or strict liability), warranty, or otherwise, shall either Party to this Agreement be liable to the other Party for any incidental or consequential damages or
losses of any nature arising out of or, connected with or resulting from the performance of or failure to perform this Agreement, including without limitation, loss of profits, loss of use of
facilities, or costs of capital. 

ARTICLE VII

FORCE MAJEURE  

        7.01    Definition:    "Event of Force Majeure" means an event which prevents or delays the performance by a Party of
its obligations under this Agreement and arises out of causes beyond the reasonable control and without the fault or negligence of such Party. An Event of Force Majeure includes but is not limited to
acts of God, fire, flood, explosion, strikes, labour disputes, sabotage, riots, acts of any civil or military authority, government legislation, regulations, actions or inactions, judgment or decision
of a court of law or other authority with the force of law, wars, major equipment failure or unavailability of transportation facilities, including any failure or inability due to claim of Force
Majeure by the Converter to comply with the instructions of URI to effect delivery of the Delivery Quantity to ITOCHU. 

        7.02    Non-Liability for Event of Force Majeure:    Subject to the provisions of this Article, where
either Party is prevented from performing its obligations hereunder by an Event of Force Majeure, other than the obligation to pay money, the obligations of both Parties are suspended for the
duration of such Event of Force Majeure and neither Party shall be liable to the other for such failure to fulfil obligations. 

        7.03    Notices:    A Party whose performance is affected by an Event of Force Majeure shall promptly give the other
Party notice of the occurrence of the Event of Force Majeure and its anticipated effect on the Party's performance under this Agreement, of any significant change in the nature of the Event of Force
Majeure and of any progress made in eliminating it, and of the termination of any Event of Force Majeure and of the anticipated date of resumed performance of contractual obligations. 

        7.04    Obligations of Affected Party:    A Party which fails to fulfil its obligations because of an Event of Force
Majeure shall use commercially reasonable efforts to minimize or eliminate the Event of Force Majeure but shall not be required to settle a strike, lockout, work slowdown, work stoppage, or other
labour dispute, and shall otherwise fulfil its obligations at a time to be agreed upon by the Parties that will be as soon as is reasonably possible after the elimination of the Event of Force
Majeure. 

        7.05    Cancellation of the Delivery:    If a delivery cannot be made within sixty (60) days from the original
Delivery Date because of an Event of Force Majeure, the Party not claiming Force Majeure may terminate the affected Delivery. In the case that the Event of Force Majeure would continue after the date
of termination of the affected Delivery, the Party not claiming Force Majeure may, at its 

5

 

option,
reduce or postpone future Deliveries or terminate all or part of the remaining Deliveries. Regarding the terminated Deliveries or this Agreement, neither Party shall have any liability to the
other Party due to the transaction contemplated by this Agreement not taking place. 

ARTICLE VIII

NOTICES  

        8.01    Notices:    Any notice, invoice, or other written communication required or permitted to be given hereunder
shall be in writing and either be delivered personally to the Party to whom it is directed or sent by facsimile and shall be effective on the day of receipt of the notice if received during normal
business hours of the addressee, and if not received during such normal business hours, then on the first business day of the addressee after such receipt. 

        8.02    Addresses:    The addresses of the Parties to which all such notices shall be forwarded are as follows: 

	if to ITOCHU:	 	ITOCHU Corporation and Buyer's Payment Assignee

TOKMQ Section

5-1, Kita-Aoyama 2-Chome

Minato-Ku, Tokyo 107-8077

Japan
	 	 	Attention:	 	Nuclear Energy Group

On behalf of ITOCHU Petroleum Co., (Hong Kong) Ltd.
	 	 	Facsimile:	 	81-3-3497-6655
	

 	
 	

With copy to:	
 	

ITOCHU International Inc.

Two Lafayette Centre, Suite 200

1133 Twenty-first Street, NW

Washington, DC 20036

Attn: Harry Maeda

Facsimile: 202.835.9764
	

if to URI:	
 	

URI, Inc.

650 South Edmonds Lane

Suite 108

Lewisville, TX 75067

Attention: Thomas H. Ehrlich

Facsimile: 972.219.3311

        The
address of a Party for notices may be changed by notice given to the other Party in accordance with this Article VIII. 

ARTICLE IX

ASSIGNMENTS  

        9.01    Consent Required for Assignment:    Neither Party may assign any of its rights under this Agreement without
the prior written consent of the other Party, which consent shall not unreasonably be withheld;
provided, however, that either Party may assign any of its rights hereunder, without such consent, to its parent company, its affiliates, or its bank or other financial institution. No such assignment
shall relieve the assignor from any of its obligations hereunder. 

        9.02    Enurement:    This Agreement shall enure to the benefit of and be binding upon the Parties and their
respective successors and permitted assigns. 

6

 

ARTICLE X

APPLICABLE LAW  

        10.01    Governing Law:    This Agreement shall be governed by and construed in accordance with the substantive laws
of the State of New York. 

ARTICLE XI

WAIVER  

        11.01    Waiver:    No waiver, alteration, amendment, modification of this Agreement, or any covenant, condition, or
limitation herein contained is valid unless in writing and duly executed by the Party to be charged therewith. Furthermore, no evidence of any waiver, alteration, amendment, or modification shall be
offered or received in evidence in any proceeding, arbitration, or litigation between the Parties arising out of or affecting this Agreement, or the rights or obligations of any Party hereunder,
unless such waiver, alteration, amendment, or modification is in writing, and duly executed. Further, the provisions of this Article may not be waived. 

ARTICLE XII

CONFIDENTIALITY  

        12.01    Confidentiality:    The Parties shall treat this Agreement as confidential, and neither Party shall disclose
its contents without the prior written consent of the other Party to any person except to its affiliates, legal advisors, financers or auditors. If disclosure is required to comply with the laws or
regulations of a government or government agency or by a court having jurisdiction over one of the Parties or if a Party is required by the rules of a stock exchange to make timely disclosure of
developments, such Party may so disclose notwithstanding the foregoing upon prior notice to the other Party. 

        IN WITNESS WHEREOF the Parties have executed this Agreement as at the day and year first above written. 

	 	 	ITOCHU CORPORATION
	

 	
 	

By:	
 	

    

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	
URI INC.
	

 	
 	

By:	
 	

    

	

 	
 	

Name:	
 	

 
	 	 	 	 	

7

QuickLinks

CONTRACT FOR THE SALE OF URANIUM CONCENTRATESExhibit 4.1

 

 

 

AMENDED AND RESTATED TRUST AGREEMENT

among

 

 

iSTAR FINANCIAL INC.,

as Depositor

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

as Property Trustee

CHASE BANK USA, NATIONAL ASSOCIATION,

as Delaware Trustee

and

THE ADMINISTRATIVE TRUSTEES NAMED HEREIN

as Administrative Trustees

Dated as of September 14, 2005

iStar Financial Statutory Trust I

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I.

  	
  DEFINED TERMS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  THE TRUST

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.2.

  	
  Office of the Delaware
  Trustee; Principal Place of Business

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.3.

  	
  Initial Contribution
  of Trust Property; Fees, Costs and Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.4.

  	
  Purposes of Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.5.

  	
  Authorization to Enter
  into Certain Transactions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.6.

  	
  Assets of Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.7.

  	
  Title to Trust
  Property

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
  PAYMENT ACCOUNT; PAYING AGENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Payment Account

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.2.

  	
  Appointment of Paying
  Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  DISTRIBUTIONS; REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.2.

  	
  Redemption

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.3.

  	
  Subordination of
  Common Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.4.

  	
  Payment Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.5.

  	
  Withholding Tax

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.6.

  	
  Tax Returns and Other
  Reports

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.7.

  	
  Payment of Taxes,
  Duties, Etc. of the Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.8.

  	
  Payments under
  Indenture or Pursuant to Direct Actions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.9.

  	
  Exchanges

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.10.

  	
  Calculation Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.11.

  	
  Certain Accounting
  Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
  SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Initial
  Ownership

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.2.

  	
  Authorized
  Trust Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.3.

  	
  Issuance of
  the Common Securities; Subscription and Purchase of Notes

  	
   

  

 

i

 

	
  Section 5.4.

  	
  The
  Securities Certificates

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.5.

  	
  Rights of Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.6.

  	
  Book-Entry
  Preferred Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.7.

  	
  Registration
  of Transfer and Exchange of Preferred Securities Certificates

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.8.

  	
  Mutilated,
  Destroyed, Lost or Stolen Securities Certificates

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.9.

  	
  Persons
  Deemed Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.10.

  	
  Cancellation

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.11.

  	
  Ownership
  of Common Securities by Depositor

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.12.

  	
  Restricted
  Legends

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.13.

  	
  Form of
  Certificate of Authentication

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  MEETINGS;
  VOTING; ACTS OF HOLDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  Notice of
  Meetings

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.2.

  	
  Meetings of
  Holders of the Preferred Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.3.

  	
  Voting Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.4.

  	
  Proxies, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.5.

  	
  Holder
  Action by Written Consent

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.6.

  	
  Record Date
  for Voting and Other Purposes

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.7.

  	
  Acts of Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.8.

  	
  Inspection of
  Records

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.9.

  	
  Limitations
  on Voting Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.10.

  	
  Acceleration
  of Maturity; Rescission of Annulment; Waivers of Past Defaults

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
  Representations
  and Warranties of the Property Trustee and the Delaware Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.2.

  	
  Representations
  and Warranties of Depositor

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
  THE TRUSTEES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
  Number of
  Trustees

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.2.

  	
  Property
  Trustee Required

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.3.

  	
  Delaware
  Trustee Required

  	
   

  

 

ii

 

	
  Section 8.4.

  	
  Appointment
  of Administrative Trustees

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.5.

  	
  Duties and
  Responsibilities of the Trustees

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.6.

  	
  Notices of
  Defaults

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.7.

  	
  Certain
  Rights of Property Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.8.

  	
  Delegation of
  Power

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.9.

  	
  May Hold
  Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.10.

  	
  Compensation;
  Reimbursement; Indemnity

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.11.

  	
  Resignation
  and Removal; Appointment of Successor

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.12.

  	
  Acceptance
  of Appointment by Successor

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.13.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.14.

  	
  Not
  Responsible for Recitals or Issuance of Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.15.

  	
  Property
  Trustee May File Proofs of Claim

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.16.

  	
  Reports to
  the Property Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
  TERMINATION,
  LIQUIDATION AND MERGER

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
  Dissolution
  Upon Expiration Date

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.2.

  	
  Early
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.3.

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.4.

  	
  Liquidation

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.5.

  	
  Mergers,
  Consolidations, Amalgamations or Replacements of Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X.

  	
  MISCELLANEOUS
  PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
  Limitation
  of Rights of Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.2.

  	
  Agreed Tax
  Treatment of Trust and Trust Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.3.

  	
  Amendment

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.4.

  	
  Separability

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.5.

  	
  Governing
  Law

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.6.

  	
  Successors

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.7.

  	
  Headings

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.8.

  	
  Reports,
  Notices and Demands

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.9.

  	
  Agreement
  Not to Petition

  	
   

  

 

iii

 

	
  Section 10.10.

  	
  Counterparts

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  Certificate of Trust of iStar
  Financial Statutory Trust I

  	
   

  
	
  Exhibit B

  	
  Form of Common Securities Certificate

  	
   

  
	
  Exhibit C

  	
  Form of Preferred Securities Certificate

  	
   

  
	
  Exhibit D

  	
  Form of Junior Subordinated Note

  	
   

  
	
  Exhibit E

  	
  Form of Transferor Certificate

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule A

  	
  Determination of LIBOR

  	
   

  
				

 

iv

 

THIS AMENDED AND RESTATED
TRUST AGREEMENT, dated as of September 14,
2005, among (i) iStar Financial Inc.,
a Maryland corporation (including any
successors or permitted assigns, the “Depositor”), (ii) JPMorgan Chase Bank, National
Association, as property trustee (in such capacity, the “Property Trustee”), (iii) Chase
Bank USA, National Association, a national banking association, as Delaware
trustee (in such capacity, the “Delaware Trustee”), (iv) Catherine
D. Rice, an individual, and Andrew C.
Richardson, an individual, each of whose address is c/o 1114 Avenue of the Americas, 27th Floor, New York, NY 10036 as administrative trustees (in such
capacities, each an “Administrative Trustee” and, collectively, the “Administrative Trustees” and,
together with the Property Trustee and the Delaware Trustee, the “Trustees”) and (v) the
several Holders, as hereinafter defined.

 

WITNESSETH

 

WHEREAS, the
Depositor, the Property Trustee and the Delaware Trustee have heretofore
created a Delaware statutory trust pursuant to the Delaware Statutory Trust Act
by entering into a Trust Agreement, dated as of September 12,
2005 (the “Original Trust
Agreement”), and by executing and filing with the Secretary of State
of the State of Delaware the Certificate of Trust, substantially in the form
attached as Exhibit A; and

 

WHEREAS, the
Depositor and the Trustees desire to amend and restate the Original Trust
Agreement in its entirety as set forth herein to provide for, among other
things, (i) the issuance of the Common Securities by the Trust to the
Depositor, (ii) the issuance and sale of the Preferred Securities by the
Trust pursuant to the Purchase Agreements and (iii) the acquisition by the
Trust from the Depositor of all of the right, title and interest in and to the
Notes;

 

NOW, THEREFORE, in
consideration of the agreements and obligations set forth herein and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each party, for the benefit of the other parties and for
the benefit of the Holders, hereby amends and restates the Original Trust
Agreement in its entirety and agrees as follows:

 

ARTICLE I.

DEFINED TERMS

 

SECTION 1.1.                       Definitions.

 

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

 

(a)                                  the
terms defined in this Article I have the meanings assigned to them in this
Article I;

 

(b)                                 the
words “include”, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”;

 

 

(c)                                  all
accounting terms used but not defined herein have the meanings assigned to them
in accordance with United States generally accepted accounting principles;

 

(d)                                 unless
the context otherwise requires, any reference to an “Article”, a “Section”, a “Schedule”
or an “Exhibit” refers to an Article, a Section, a Schedule or an Exhibit,
as the case may be, of or to this Trust Agreement;

 

(e)                                  the
words “hereby”, “herein”, “hereof” and “hereunder” and other words of similar
import refer to this Trust Agreement as a whole and not to any particular
Article, Section or other subdivision;

 

(f)                                    a
reference to the singular includes the plural and vice versa; and

 

(g)                                 the
masculine, feminine or neuter genders used herein shall include the masculine,
feminine and neuter genders.

 

“Act” has
the meaning specified in Section 6.7.

 

“Additional Interest” has
the meaning specified in Section 1.1 of the Indenture.

 

“Additional Interest Amount” means,
with respect to Trust Securities of a given Liquidation Amount and/or a given
period, the amount of Additional Interest paid by the Depositor on a Like
Amount of Notes for such period.

 

“Additional Taxes” has
the meaning specified in Section 1.1 of the Indenture.

 

“Additional Tax Sums” has
the meaning specified in Section 10.5 of the Indenture.

 

“Administrative Trustee” means
each of the Persons identified as an “Administrative
Trustee” in the preamble to this Trust Agreement, solely in each
such Person’s capacity as Administrative Trustee of the Trust and not in such
Person’s individual capacity, or any successor Administrative Trustee appointed
as herein provided.

 

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

 

“Applicable Depositary
Procedures” means, with respect to any transfer or
transaction involving a Book-Entry Preferred Security, the rules and
procedures of the Depositary for such Book-Entry Preferred Security, in each
case to the extent applicable to such transaction and as in effect from time to
time.

 

2

 

“Bankruptcy Event”
means, with respect to any Person:

 

(a)  the entry of a decree or order by a court
having jurisdiction in the premises (i) judging such Person a bankrupt or
insolvent, (ii) approving as properly filed a petition seeking
reorganization, arrangement, adjudication or composition of or in respect of
such Person under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law, (iii) appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official
of such Person or of any substantial part of its property or (iv) ordering
the winding up or liquidation of its affairs, and the continuance of any such
decree or order unstayed and in effect for a period of sixty (60) consecutive
days; or

 

(b)  the institution by such Person of
proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to
the institution of bankruptcy or insolvency proceedings against it, or the
filing by it of a petition or answer or consent seeking reorganization or
relief under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law, or the consent by it to the filing of any
such petition or to the appointment of a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of such Person 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 and its willingness to be adjudicated a
bankrupt or insolvent, or the taking of corporate action by such Person in
furtherance of any such action.

 

“Bankruptcy Laws”
means all Federal and state bankruptcy, insolvency, reorganization and other
similar laws, including the United States Bankruptcy Code.

 

“Book-Entry Preferred
Security” means a Preferred Security, the ownership
and transfers of which shall be made through book entries by a Depositary.

 

“Business Day”
means a day other than (a) a Saturday or Sunday, (b) a day on which
banking institutions in the City of New York are authorized or required by law
or executive order to remain closed or (c) a day on which the Corporate
Trust Office is closed for business.

 

“Calculation Agent” has the meaning specified
in Section 4.10.

 

“Closing Date”
has the meaning specified in the Purchase Agreement.

 

“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

“Commission”
means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act or, if at any time after the execution of this
Trust

 

3

 

Agreement such Commission is not existing and
performing the duties assigned to it, then the body performing such duties at
such time.

 

“Common Securities
Certificate” means a certificate evidencing ownership
of Common Securities, substantially in the form attached as Exhibit B.

 

“Common Security”
means an undivided beneficial interest in the assets of the Trust, having a
Liquidation Amount of $1,000 and having the rights provided therefor in this
Trust Agreement.

 

“Common Securities Subscription
Agreement” means the agreement of even date herewith by and
between the Depositor and the Trust pertaining to the sale and purchase of the
Common Securities.

 

“Corporate Trust Office”
means the principal office of the Property Trustee at which any particular time
its corporate trust business shall be administered, which office at the date of
this Trust Agreement is located at 600 Travis, 50th Floor, Houston,
Texas 77002, Attention:  Worldwide Securities
Services—iStar Financial Statutory Trust I.

 

“Definitive Preferred
Securities Certificates” means Preferred Securities
issued in certificated, fully registered form that are not Global Preferred
Securities.

 

“Delaware Statutory  Trust Act” means Chapter 38 of
Title 12 of the Delaware Code, 12 Del. Code § 3801 et seq.,
or any successor statute thereto, in each case as amended from time to time.

 

“Delaware Trustee”
means the Person identified as the “Delaware Trustee”
in the preamble to this Trust Agreement, solely in its capacity as Delaware
Trustee of the Trust and not in its individual capacity, or its successor in
interest in such capacity, or any successor Delaware Trustee appointed as
herein provided.

 

“Depositary”
means an organization registered as a clearing agency under the Exchange Act
that is designated as Depositary by the Depositor or any successor
thereto.  DTC will be the initial
Depositary.

 

“Depositary Participant”
means a broker, dealer, bank, other financial institution or other Person for
whom from time to time the Depositary effects book-entry transfers and pledges
of securities deposited with the Depositary.

 

“Depositor”
has the meaning specified in the preamble to this Trust Agreement and any
successors and permitted assigns.

 

“Depositor Affiliate”
has the meaning specified in Section 4.9.

 

“Distribution Date”
has the meaning specified in Section 4.1(a)(i).

 

“Distributions”
means amounts payable in respect of the Trust Securities as provided in Section 4.1.

 

4

 

“DTC”
means The Depository Trust Company, a New York corporation, or any successor
thereto.

 

“Early Termination Event”
has the meaning specified in Section 9.2.

 

“Event of Default”
means any one of the following events (whatever the reason for such event 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):

 

(a)  the occurrence of a Note Event of Default;
or

 

(b)  default by the Trust in the payment of any
Distribution when it becomes due and payable, and continuation of such default
for a period of thirty (30) days; or

 

(c)  default by the Trust in the payment of any Redemption
Price of any Trust Security when it becomes due and payable; or

 

(d)  default in the performance, or breach, in
any material respect of any covenant or warranty of the Trustees in this Trust
Agreement (other than those specified in clause (b) or (c) above) and
continuation of such default or breach for a period of thirty (30) days after
there has been given, by registered or certified mail, to the Trustees and to
the Depositor by the Holders of at least twenty five percent (25%) in aggregate
Liquidation Amount of the Outstanding Preferred Securities 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

 

(e)  the occurrence of a Bankruptcy Event with respect
to the Property Trustee if a successor Property Trustee has not been appointed
within ninety (90) days thereof.

 

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

 

“Expiration Date”
has the meaning specified in Section 9.1.

 

“Extension Period”
has the meaning specified in Section 4.1(a)(ii).

 

“Fiscal
Year” shall be the fiscal year of the Trust, which shall be
the calendar year, or such other period as is required by the Code.

 

“Global Preferred
Security” means a Preferred Securities Certificate
evidencing ownership of Book-Entry Preferred Securities.

 

5

 

“Holder”
means a Person in whose name a Trust Security or Trust Securities are
registered in the Securities Register; any such Person shall be deemed to be a
beneficial owner within the meaning of the Delaware Statutory Trust Act.

 

“Indemnified Person”
has the meaning specified in Section 8.10(c).

 

“Indenture”
means the Junior Subordinated Indenture executed and delivered by the Depositor
and the Note Trustee contemporaneously with the execution and delivery of this
Trust Agreement, for the benefit of the holders of the Notes a copy of which is
attached hereto as Exhibit D, as amended or supplemented from time
to time.

 

“Initial Purchaser”
shall mean the initial purchasers of the Preferred Securities.

 

“Interest
Payment Date” has the meaning specified in Section 1.1 of the
Indenture.

 

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

 

“Investment
Company Event” has the meaning specified in Section 1.1 of the
Indenture.

 

“Junior Subordinated Note
Purchase Agreement” means the agreement of even date herewith
by and between the Depositor and the Trust pertaining to the issuance and
purchase of the Notes.

 

“LIBOR”
has the meaning specified in Schedule A.

 

“LIBOR
Business Day” has the meaning specified in Schedule A.

 

“LIBOR
Determination Date” has the meaning specified in Schedule A.

 

“Lien”
means any lien, pledge, charge, encumbrance, mortgage, deed of trust, adverse
ownership interest, hypothecation, assignment, security interest or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever.

 

“Like Amount”
means (a) with respect to a redemption of any Trust Securities, Trust
Securities having a Liquidation Amount equal to the principal amount of Notes
to be contemporaneously redeemed or paid at maturity in accordance with the
Indenture, the proceeds of which will be used to pay the Redemption Price of
such Trust Securities, (b) with respect to a distribution of Notes to
Holders of Trust Securities in connection with a dissolution of the Trust,
Notes having a principal amount equal to the Liquidation Amount of the Trust
Securities of the Holder to whom such Notes are distributed and (c) with
respect to any distribution of Additional Interest Amounts to Holders of Trust
Securities, Notes having a principal amount equal to the Liquidation Amount of
the Trust Securities in respect of which such distribution is made.

 

“Liquidation Amount”
means the stated amount of $1,000 per Trust Security.

 

“Liquidation Date”
means the date on which assets are to be distributed to Holders in accordance
with Section 9.4(a) hereunder following dissolution of the
Trust.

 

6

 

“Liquidation Distribution”
has the meaning specified in Section 9.4(d).

 

“Majority in Liquidation
Amount” means Common or Preferred Securities, as the
case may be, representing more than fifty percent (50%) of the aggregate
Liquidation Amount of all (or a specified group of) then Outstanding Common or
Preferred Securities, as the case may be.

 

“Note Event of Default”
means any “Event of Default”
specified in Section 5.1 of the Indenture.

 

“Note Redemption Date”
means, with respect to any Notes to be redeemed under the Indenture, the date
fixed for redemption of such Notes under the Indenture.

 

“Note Trustee”
means the Person identified as the “Trustee”
in the Indenture, solely in its capacity as Trustee pursuant to the Indenture
and not in its individual capacity, or its successor in interest in such
capacity, or any successor Trustee appointed as provided in the Indenture.

 

“Notes”
means the Depositor’s Junior Subordinated Notes issued pursuant to the
Indenture.

 

“Officers’ Certificate”
means a certificate signed by the Chief Executive Officer, the President or an
Executive Vice President, and by the Chief Financial Officer, Treasurer or an
Assistant Treasurer, of the Depositor, and delivered to the Trustees. Any
Officers’ Certificate delivered with respect to compliance with a condition or
covenant provided for in this Trust Agreement (other than the certificate
provided pursuant to Section 8.16 which is not an Officers’
Certificate) shall include:

 

(a)  a statement by each officer signing the
Officers’ Certificate that such officer has read the covenant or condition and
the definitions relating thereto;

 

(b)  a brief statement of the nature and
scope of the examination or investigation undertaken by such officer in
rendering the Officers’ Certificate;

 

(c)  a statement that such officer has made
such examination or investigation as, in such officer’s opinion, is necessary
to enable such officer to express an informed opinion as to whether or not such
covenant or condition has been complied with; and

 

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

 

“Operative Documents”
means the Purchase Agreement, the Indenture, the Trust Agreement, the Notes and
the Trust Securities.

 

“Opinion of Counsel”
means a written opinion of counsel, who may be counsel for, or an employee of,
the Depositor or any Affiliate of the Depositor.

 

7

 

“Optional Redemption
Price” means, with respect to any Trust Security, an
amount equal to one hundred percent (100%) of the Liquidation Amount of such
Trust Security on the Redemption Date, plus accumulated and unpaid
Distributions to, but excluding, the Redemption Date, plus the related amount
of the premium, if any, and/or accrued interest, including Additional Interest,
if any, thereon paid by the Depositor upon the concurrent redemption or payment
at maturity of a Like Amount of Notes.

 

“Optional Note Redemption
Price” means, with respect to any Note to be redeemed
on any Redemption Date under the Indenture, an amount equal to one hundred
percent (100%) of the outstanding principal amount of such Note, together with
accrued interest, including any Additional Interest (to the extent legally
enforceable), thereon through but not including the date fixed as such
Redemption Date.

 

“Original Issue Date”
means the date of original issuance of the Trust Securities.

 

“Original Trust Agreement” has the meaning specified in
the recitals to this Trust Agreement.

 

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

 

(a)  Trust Securities theretofore canceled
by the Property Trustee or delivered to the Property Trustee for cancellation;

 

(b)  Trust Securities for which payment or
redemption money in the necessary amount has been theretofore deposited with
the Property Trustee or any Paying Agent in trust for the Holders of such Trust
Securities; provided,  that
if such Trust Securities are to be redeemed, notice of such redemption has been
duly given pursuant to this Trust Agreement; and

 

(c)  Trust Securities that have been paid or
in exchange for or in lieu of which other Trust Securities have been executed
and delivered pursuant to the provisions of this Trust Agreement, unless proof
satisfactory to the Property Trustee is presented that any such Trust
Securities are held by Holders in whose hands such Trust Securities are valid,
legal and binding obligations of the Trust;

 

provided, that
in determining whether the Holders of the requisite Liquidation Amount of the
Outstanding Preferred Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Preferred Securities owned by
the Depositor, any Trustee or any Affiliate of the Depositor or of any Trustee shall
be disregarded and deemed not to be Outstanding, except that (i) in
determining whether any Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Preferred Securities that such Trustee knows to be so owned shall be so
disregarded and (ii) the foregoing shall not apply at any time when all of
the Outstanding Preferred Securities are owned by the Depositor, one or more of
the Trustees and/or any such Affiliate. Preferred Securities so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Administrative Trustees the pledgee’s
right so to act with

 

8

 

respect to such Preferred
Securities and that the pledgee is not the Depositor, any Trustee or any
Affiliate of the Depositor or of any Trustee.

 

“Owner”
means each Person who is the beneficial owner of Book-Entry Preferred
Securities as reflected in the records of the Depositary or, if a Depositary
Participant is not the beneficial owner, then the beneficial owner as reflected
in the records of the Depositary Participant.

 

“Paying Agent”
means any Person authorized by the Administrative Trustees to pay Distributions
or other amounts in respect of any Trust Securities on behalf of the Trust.

 

“Payment Account”
means a segregated non-interest-bearing corporate trust account maintained by
the Property Trustee for the benefit of the Holders in which all amounts paid
in respect of the Notes will be held and from which the Property Trustee,
through the Paying Agent, shall make payments to the Holders in accordance with
Sections 3.1, 4.1 and 4.2.

 

“Person”
means a legal person, including any individual, corporation, estate, partnership,
joint venture, association, joint stock company, company, limited liability
company, trust, unincorporated association or government, or any agency or
political subdivision thereof, or any other entity of whatever nature.

 

“Preferred Security”
means an undivided beneficial interest in the assets of the Trust, having a
Liquidation Amount of $1,000 and having the rights provided therefor in this
Trust Agreement.

 

“Preferred Securities
Certificate” means a certificate evidencing ownership
of Preferred Securities, substantially in the form attached as Exhibit C.

 

“Property Trustee”
means the Person identified as the “Property Trustee”
in the preamble to this Trust Agreement, solely in its capacity as Property
Trustee of the Trust and not in its individual capacity, or its successor in
interest in such capacity, or any successor Property Trustee appointed as
herein provided.

 

“Purchase Agreements”
means each of the Purchase Agreements executed and delivered by the Trust, the
Depositor and each Purchaser thereunder, as purchaser, contemporaneously with
the execution and delivery of this Trust Agreement, as amended from time to
time.

 

“QIB” means a “Qualified Institutional Buyer” as
defined in Rule 144A under the Securities Act of 1933, as amended.

 

“QP” means a “Qualified
Purchaser” as defined in Section 2(a)(51) of the Investment Company Act of
1940, as amended.

 

“QIB/QP” means
a QIB that is also a QP.

 

“Redemption Date”
means, with respect to any Trust Security to be redeemed, the date fixed for
such redemption by or pursuant to this Trust Agreement; provided,  that
each Note

 

9

 

Redemption Date and the stated maturity (or any date
of principal repayment upon early maturity) of the Notes shall be a Redemption
Date for a Like Amount of Trust Securities.

 

“Redemption Price”
means the Special Redemption Price or Optional Redemption Price, as
applicable.  If the Depositor has
redeemed the Notes at the Special Note Redemption Price, the Trust shall redeem
the Trust Securities at the Special Redemption Price.  If the Depositor has redeemed the Notes at
the Optional Note Redemption Price, the Trust shall redeem the Trust Securities
at the Optional Redemption Price.

 

“Reference
Banks” has the meaning specified in Schedule A.

 

“Responsible Officer” means,
with respect to the Property Trustee, the officer in the Institutional Trust
Services department of the Property Trustee having direct responsibility for
the administration of this Trust Agreement.

 

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

 

“Securities Certificate”
means any one of the Common Securities Certificates or the Preferred Securities
Certificates.

 

“Securities Register”
and “Securities Registrar” have the
respective meanings specified in Section 5.7.

 

“Special Note Redemption
Price” means, with respect to any Note to be redeemed
on any Redemption Date under the Indenture, an amount equal to one hundred
percent (100%) of the outstanding principal amount of such Note, together with
accrued interest, including Additional Interest, thereon through but not
including the date fixed as such Redemption Date.

 

“Special Redemption Price”
means, with respect to any Trust Security, an amount equal to one hundred
percent (100%) of the Liquidation Amount of such Trust Security on the
Redemption Date, plus accumulated and unpaid Distributions to, but excluding,
the Redemption Date and/or accrued interest, including Additional Interest, if
any, thereon paid by the Depositor upon the concurrent redemption or payment at
maturity of a Like Amount of Notes.

 

“Successor Securities”
has the meaning specified in Section 9.5(a).

 

“Tax Event”
has the meaning specified in Section 1.1 of the Indenture.

 

“Trust”
means the Delaware statutory trust known as “iStar
Financial Statutory Trust I,” which was created on September 12, 2005 under the Delaware
Statutory Trust Act pursuant to the Original Trust Agreement and the filing of
the Certificate of Trust, and continued pursuant to this Trust Agreement.

 

“Trust Agreement”
means this Amended and Restated Trust Agreement, as the same may be modified,
amended or supplemented from time to time in accordance with the applicable
provisions hereof, including all Schedules and Exhibits.

 

10

 

“Trustees”
means the Administrative Trustees, the Property Trustee and the Delaware
Trustee, each as defined in this Article I.

 

“Trust Property”
means (a) the Notes, (b) any cash on deposit in, or owing to, the
Payment Account and (c) all proceeds and rights in respect of the
foregoing and any other property and assets for the time being held or deemed
to be held by the Property Trustee pursuant to the trusts of this Trust
Agreement.

 

“Trust Security”
means any one of the Common Securities or the Preferred Securities.

 

ARTICLE II.

THE TRUST

 

SECTION 2.1.                       Name.

 

The trust continued
hereby shall be known as “iStar Financial
Statutory Trust I”, as such name may be modified from time to time by
the Administrative Trustees following written notice to the Holders of Trust
Securities and the other Trustees, in which name the Trustees may conduct the
business of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued.

 

SECTION 2.2.                       Office of the
Delaware Trustee; Principal Place of Business.

 

The address of the
Delaware Trustee in the State of Delaware is Chase Bank USA, National
Association, 500 Stanton Christiana Road, Building 4 (3rd Floor),
Newark, DE 19713, Attention: 
Institutional Trust Services, or such other address in the State of
Delaware as the Delaware Trustee may designate by written notice to the
Holders, the Depositor, the Property Trustee and the Administrative Trustees.
The principal executive office of the Trust is 1114
Avenue of the Americas, 27th Floor, New
York, NY 10036, Attention: Andrew C.
Richardson, as such address may be changed from time to time by the
Administrative Trustees following written notice to the Holders and the other
Trustees.

 

SECTION 2.3.                       Initial Contribution
of Trust Property; Fees, Costs and Expenses.

 

The Property Trustee
acknowledges receipt from the Depositor in connection with the Original Trust
Agreement of the sum of ten dollars ($10), which constituted the initial Trust
Property. The Depositor shall pay all fees, costs and expenses of the Trust
(except with respect to the Trust Securities) as they arise or shall, upon
request of any Trustee, promptly reimburse such Trustee for any such fees,
costs and expenses paid by such Trustee. The Depositor shall make no claim upon
the Trust Property for the payment of such fees, costs or expenses.

 

SECTION 2.4.                       Purposes of Trust.

 

(a)                                  The
exclusive purposes and functions of the Trust are to (i) issue and sell
Trust Securities and use the proceeds from such sale to acquire the Notes and (ii) 
engage in only those

 

11

 

activities necessary or incidental thereto. The
Delaware Trustee, the Property Trustee and the Administrative Trustees are
trustees of the Trust, and have all the rights, powers and duties to the extent
set forth herein.  The Trustees hereby
acknowledge that they are trustees of the Trust.

 

(b)                                 So
long as this Trust Agreement remains in effect, the Trust (or the Trustees
acting on behalf of the Trust) shall not undertake any business, activities or
transaction except as expressly provided herein or contemplated hereby. In
particular, the Trust (or the Trustees acting on behalf of the Trust) shall not
(i) acquire any investments or engage in any activities not authorized by
this Trust Agreement, (ii) sell, assign, transfer, exchange, mortgage,
pledge, set-off or otherwise dispose of any of the Trust Property or interests
therein, including to Holders, except as expressly provided herein, (iii) incur
any indebtedness for borrowed money or issue any other debt, (iv) take or
consent to any action that would result in the placement of a Lien on any of
the Trust Property, (v) take or consent to any action that would reasonably
be expected to cause the Trust to become taxable as a corporation or classified
as other than a grantor trust for United States federal income tax purposes, (vi) take
or consent to any action that would cause the Notes to be treated as other than
indebtedness of the Depositor for United States federal income tax purposes or (vii) take
or consent to any action that would cause the Trust to be deemed to be an “investment
company” required to be registered under the Investment Company Act.

 

SECTION 2.5.                       Authorization to
Enter into Certain Transactions.

 

(a)                                  The
Trustees shall conduct the affairs of the Trust in accordance with and subject
to the terms of this Trust Agreement. In accordance with the following
provisions (i) and (ii), the Trustees shall have the authority to enter
into all transactions and agreements determined by the Trustees to be
appropriate in exercising the authority, express or implied, otherwise granted
to the Trustees, under this Trust Agreement, and to perform all acts in furtherance
thereof, including the following:

 

(i)                                     As
among the Trustees, each Administrative Trustee shall severally have the power
and authority to act on behalf of the Trust with respect to the following
matters:

 

(A)                              the
issuance and sale of the Trust Securities;

 

(B)                                to
cause the Trust to enter into, and to execute, deliver and perform on behalf of
the Trust, such agreements as may be necessary or desirable in connection with
the purposes and function of the Trust, including, without limitation, a Common
Securities Subscription Agreement and a Junior Subordinated Note Purchase Agreement;

 

(C)                                assisting
in the sale of the Preferred Securities in one or more transactions exempt from
registration under the Securities Act, and in compliance with applicable state
securities or blue sky laws;

 

(D)                               assisting
in the sending of notices (other than notices of default) and other information
regarding the Trust Securities and the Notes to the Holders in accordance with
this Trust Agreement;

 

12

 

(E)                                 the
appointment of a Paying Agent and Securities Registrar in accordance with this
Trust Agreement;

 

(F)                                 execution
of the Trust Securities on behalf of the Trust in accordance with this Trust
Agreement;

 

(G)                                execution
and delivery of closing certificates, if any, pursuant to the Purchase
Agreement and application for a taxpayer identification number for the Trust;

 

(H)                               preparation
and filing of all applicable tax returns and tax information reports that are
required to be filed on behalf of the Trust;

 

(I)                                    establishing
a record date with respect to all actions to be taken hereunder that require a
record date to be established, except as provided in Section 6.10(a);

 

(J)                                   unless
otherwise required by the Delaware Statutory Trust Act to execute on behalf of
the Trust (either acting alone or together with the other Administrative
Trustees) any documents that such Administrative Trustee has the power to
execute pursuant to this Trust Agreement; and

 

(K)                               the
taking of any action incidental to the foregoing as such Administrative Trustee
may from time to time determine is necessary or advisable to give effect to the
terms of this Trust Agreement.

 

(ii)                                  As
among the Trustees, the Property Trustee shall have the power, duty and
authority to act on behalf of the Trust with respect to the following matters:

 

(A)                              the
receipt and holding of legal title of the Notes;

 

(B)                                the
establishment of the Payment Account;

 

(C)                                the
collection of interest, principal and any other payments made in respect of the
Notes and the holding of such amounts in the Payment Account;

 

(D)                               the
distribution through the Paying Agent of amounts distributable to the Holders
in respect of the Trust Securities;

 

(E)                                 the
exercise of all of the rights, powers and privileges of a holder of the Notes
in accordance with the terms of this Trust Agreement;

 

(F)                                 the
sending of notices of default and other information regarding the Trust
Securities and the Notes to the Holders in accordance with this Trust
Agreement;

 

(G)                                the
distribution of the Trust Property in accordance with the terms of this Trust
Agreement;

 

13

 

(H)                               to
the extent provided in this Trust Agreement, the winding up of the affairs of
and liquidation of the Trust, provided that the Administrative Trustees shall
have the power, duty and authority to act on behalf of the Trust with respect
to the preparation, execution and filing of the certificate of cancellation of
the Trust with the Secretary of State of the State of Delaware; and

 

(I)                                    the
taking of any action incidental to the foregoing as the Property Trustee may
from time to time determine is necessary or advisable to give effect to the
terms of this Trust Agreement and protect and conserve the Trust Property for
the benefit of the Holders (without consideration of the effect of any such
action on any particular Holder).

 

(b)                                 In
connection with the issue and sale of the Preferred Securities, the Depositor
shall have the right and responsibility to assist the Trust with respect to, or
effect on behalf of the Trust, the following (and any actions taken by the
Depositor in furtherance of the following prior to the date of this Trust
Agreement are hereby ratified and confirmed in all respects):

 

(i)                                     the
negotiation of the terms of, and the execution and delivery of, the Purchase
Agreement providing for the sale of the Preferred Securities in one or more
transactions exempt from registration under the Securities Act, and in
compliance with applicable state securities or blue sky laws; and

 

(ii)                                  the
taking of any other actions necessary or desirable to carry out any of the
foregoing activities.

 

(c)                                  Notwithstanding
anything herein to the contrary, the Administrative Trustees are authorized and
directed to conduct the affairs of the Trust and authorized to operate the
Trust so that the Trust will not be taxable as a corporation or classified as
other than a grantor trust for United States federal income tax purposes, so
that the Notes will be treated as indebtedness of the Depositor for United
States federal income tax purposes and so that the Trust will not be deemed to
be an “investment company” required to be registered under the Investment
Company Act.  In respect thereof, each
Administrative Trustee is authorized to take any action, not inconsistent with
applicable law, the Certificate of Trust or this Trust Agreement, that such
Administrative Trustee determines in his or her discretion to be necessary or
desirable for such purposes, as long as such action does not adversely affect in
any material respect the interests of the Holders of the Outstanding Preferred
Securities.  In no event shall the
Administrative Trustees be liable to the Trust or the Holders for any failure
to comply with this Section 2.5 to the extent that such failure
results solely from a change in law or regulation or in the interpretation
thereof.

 

(d)                                 Any
action taken by a Trustee in accordance with its powers shall constitute the
act of and serve to bind the Trust.  In
dealing with any Trustee acting on behalf of the Trust, no Person shall be
required to inquire into the authority of such Trustee to bind the Trust.  Persons dealing with the Trust are entitled
to rely conclusively on the power and authority of any Trustee as set forth in
this Trust Agreement.

 

14

 

SECTION 2.6.                       Assets of Trust.

 

The assets of the Trust
shall consist of the Trust Property.

 

SECTION 2.7.                       Title to Trust
Property.

 

(a)                                  Legal
title to all Trust Property shall be vested at all times in the Property
Trustee and shall be held and administered by the Property Trustee in trust for
the benefit of the Trust and the Holders in accordance with this Trust
Agreement.

 

(b)                                 The
Holders shall not have any right or title to the Trust Property other than the undivided
beneficial interest in the assets of the Trust conferred by their Trust
Securities and they shall have no right to call for any partition or division
of property, profits or rights of the Trust except as described below. The
Trust Securities shall be personal property giving only the rights specifically
set forth therein and in this Trust Agreement.

 

ARTICLE III.

PAYMENT ACCOUNT;  PAYING AGENTS

 

SECTION 3.1.                       Payment Account.

 

(a)                                  On
or prior to the Closing Date, the Property Trustee shall establish the Payment
Account. The Property Trustee and the Paying Agent shall have exclusive control
and sole right of withdrawal with respect to the Payment Account for the
purpose of making deposits in and withdrawals from the Payment Account in
accordance with this Trust Agreement. All monies and other property deposited
or held from time to time in the Payment Account shall be held by the Property
Trustee in the Payment Account for the exclusive benefit of the Holders and for
Distribution as herein provided.

 

(b)                                 The
Property Trustee shall deposit in the Payment Account, promptly upon receipt,
all payments of principal of or interest on, and any other payments with
respect to, the Notes. Amounts held in the Payment Account shall not be
invested by the Property Trustee pending distribution thereof.

 

SECTION 3.2.                       Appointment of Paying
Agents.

 

The Paying Agent shall
initially be the Property Trustee. The Paying Agent shall make Distributions to
Holders from the Payment Account and shall report the amounts of such
Distributions to the Property Trustee and the Administrative Trustees. Any
Paying Agent shall have the revocable power to withdraw funds from the Payment
Account solely for the purpose of making the Distributions referred to above.
The Administrative Trustees may revoke such power and remove the Paying Agent
in their sole discretion. Any Person acting as Paying Agent shall be permitted
to resign as Paying Agent upon thirty (30) days’ written notice to the
Administrative Trustees and the Property Trustee. If the Property Trustee shall
no longer be the Paying Agent or a successor Paying Agent shall resign or its
authority to act be revoked, the Administrative

 

15

 

Trustees shall appoint a successor (which shall be a
bank or trust company) to act as Paying Agent. 
Such successor Paying Agent appointed by the Administrative Trustees
shall execute and deliver to the Trustees an instrument in which such successor
Paying Agent shall agree with the Trustees that as Paying Agent, such successor
Paying Agent will hold all sums, if any, held by it for payment to the Holders
in trust for the benefit of the Holders entitled thereto until such sums shall
be paid to such Holders. The Paying Agent shall return all unclaimed funds to
the Property Trustee and upon removal of a Paying Agent such Paying Agent shall
also return all funds in its possession to the Property Trustee. The provisions
of Article VIII shall apply to the Property Trustee also in its
role as Paying Agent, for so long as the Property Trustee shall act as Paying
Agent and, to the extent applicable, to any other Paying Agent appointed
hereunder. Any reference in this Trust Agreement to the Paying Agent shall
include any co-paying agent unless the context requires otherwise.

 

ARTICLE IV.

DISTRIBUTIONS; REDEMPTION

 

SECTION 4.1.                       Distributions.

 

(a)                                  The
Trust Securities represent undivided beneficial interests in the Trust
Property, and Distributions (including any Additional Interest Amounts) will be
made on the Trust Securities at the rate and on the dates that payments of
interest (including any Additional Interest) are made on the Notes.
Accordingly:

 

(i)                                     Distributions
on the Trust Securities shall be cumulative, and shall accumulate whether or
not there are funds of the Trust available for the payment of
Distributions.  Distributions shall
accumulate from September 14, 2005,
and, except as provided in clause (ii) below, shall be payable quarterly
in arrears on January 30, April 30, July 30
and October 30 of each year, commencing on October 30,
2005.  If any date on which a
Distribution is otherwise payable on the Trust Securities is not a Business
Day, then the payment of such Distribution shall be made on the next succeeding
Business Day (and no interest shall accrue in respect of the amounts whose
payment is so delayed for the period from and after each such date until the
next succeeding Business Day), except that, if such Business Day falls in the
next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case, with the same force and effect as if made
on such date (each date on which Distributions are payable in accordance with
this Section 4.1(a)(i), a “Distribution Date”);

 

(ii)                                  in
the event (and to the extent) that the Depositor exercises its right under the
Indenture to defer the payment of interest on the Notes, Distributions on the
Trust Securities shall be deferred. 
Under the Indenture, so long as no Note Event of Default has occurred
and is continuing, the Depositor shall have the right, at any time and from
time to time during the term of the Notes, to defer the payment of interest on
the Notes for a period of up to an aggregate of eight (8) consecutive
quarterly  interest payment

 

16

 

periods (each such extended interest payment period,
an “Extension Period”), during which
Extension Period no interest on the Notes shall be due and payable (except any
Additional Tax Sums that may be due and payable).  At the end of any
such Extension Period, the Depositor shall pay all interest then accrued and
unpaid together with such Additional Interest. 
Prior to the termination of any such Extension Period, the Depositor may
further defer the payment of interest; provided, that all such previous
and further extensions comprising such Extension Period do not exceed eight (8) quarterly interest
payment periods in the aggregate, together with all previous Extension
Periods.  While no interest on the Notes
shall be due and payable during an Extension Period, except at the end thereof,
each installment of interest that would otherwise have been due and payable
during such Extension Period shall bear Additional Interest (to the extent
payment of such interest would be legally enforceable) at a variable rate equal to LIBOR plus 1.50% per annum compounded quarterly, from the dates on which amounts would have otherwise
been due and payable until paid or until funds for the payment thereof have
been made available for payment.  If
Distributions are deferred, the deferred Distributions (including Additional
Interest Amounts) shall be paid on the date that the related Extension Period
terminates, to Holders of the Trust Securities as they appear on the books and
records of the Trust on the record date immediately preceding such termination
date.

 

(iii)                               Distributions
shall accumulate in respect of the Trust Securities at a variable rate
equal to LIBOR plus 1.50% per annum of
the Liquidation Amount of the Trust Securities, such rate being the rate of
interest payable on the Notes.  LIBOR
shall be determined by the Calculation Agent in accordance with Schedule A.
The amount of Distributions payable shall be computed on the basis of a 360-day
year and the actual number of days elapsed in the relevant Distribution period.
The amount of Distributions payable for any period shall include any Additional
Interest Amounts in respect of such period; and

 

(iv)                              Distributions
on the Trust Securities shall be made by the Paying Agent from the Payment
Account and shall be payable on each Distribution Date only to the extent that
the Trust has funds then on hand and available in the Payment Account for the
payment of such Distributions.

 

(b)                                 Distributions
on the Trust Securities with respect to a Distribution Date shall be payable to
the Holders thereof as they appear on the Securities Register for the Trust
Securities at the close of business on the relevant record date, which shall be
at the close of business on the fifteenth day (whether or not a Business Day)
preceding the relevant Distribution Date, except that Distributions and any
Additional Interest Amounts payable on the stated maturity (or any date of
principal repayment upon early maturity) of the principal of a Trust Security
or on a Redemption Date shall be paid to the Person to whom principal is
paid.  Distributions payable on any Trust
Securities that are not punctually paid on any Distribution Date as a result of
the Depositor having failed to make an interest payment under the Notes will
cease to be payable to the Person in whose name such Trust Securities are
registered on the relevant record date, and such defaulted Distributions and
any Additional Interest Amounts will instead be payable to the Person in whose
name such Trust Securities are registered on the special record date, or other

 

17

 

specified date for determining Holders entitled to
such defaulted Distribution and Additional Interest Amount, established in the
same manner, and on the same date, as such is established with respect to the
Notes under the Indenture.

 

(c)                                  As
a condition to the payment of any principal of or interest on the Trust
Securities without the imposition of withholding tax, the Administrative
Trustees shall require the previous delivery of properly completed and signed
applicable U.S. federal income tax certifications (generally, an Internal
Revenue Service Form W-9 (or applicable successor form) in the case of a
person that is a “United States person” within the meaning of Section 7701(a)(30)
of the Code or an Internal Revenue Service Form W-8 (or applicable
successor form) in the case of a person that is not a “United States person”
within the meaning of Section 7701(a)(30) of the Code) and any other
certification acceptable to it to enable the Property Trustee or any Paying
Agent to determine their respective duties and liabilities with respect to any
taxes or other charges that they may be required to pay, deduct or withhold in
respect of such Trust Securities.

 

SECTION 4.2.                       Redemption.

 

(a)                                  On
each Note Redemption Date and on the stated maturity (or any date of principal
repayment upon early maturity) of the Notes and on each other date on (or in
respect of) which any principal on the Notes is repaid, the Trust will be
required to redeem a Like Amount of Trust Securities at the Redemption Price.

 

(b)                                 Notice
of redemption shall be given by the Property Trustee by first-class mail,
postage prepaid, mailed not less than thirty (30) nor more than sixty (60) days
prior to the Redemption Date to each Holder of Trust Securities to be redeemed,
at such Holder’s address appearing in the Securities Register. All notices of
redemption shall state:

 

(i)                                     the
Redemption Date;

 

(ii)                                  the
Redemption Price or, if the Redemption Price cannot be calculated prior to the
time the notice is required to be sent, the estimate of the Redemption Price
provided pursuant to the Indenture, as calculated by the Depositor, together
with a statement that it is an estimate and that the actual Redemption Price
will be calculated by the Calculation Agent on the fifth Business Day prior to
the Redemption Date (and if an estimate is provided, a further notice shall be
sent of the actual Redemption Price on the date that such Redemption Price is
calculated);

 

(iii)                               if
less than all the Outstanding Trust Securities are to be redeemed, the
identification (and, in the case of partial redemption, the respective amounts)
and Liquidation Amounts of the particular Trust Securities to be redeemed;

 

(iv)                              that
on the Redemption Date, the Redemption Price will become due and payable upon
each such Trust Security, or portion thereof, to be redeemed and that
Distributions thereon will cease to accumulate on such Trust Security or such
portion, as the case may be, on and after said date, except as provided in Section 4.2(d);

 

(v)                                 the
place or places where the Trust Securities are to be surrendered for the
payment of the Redemption Price; and

 

18

 

(vi)                              such
other provisions as the Property Trustee deems relevant.

 

(c)                                  The
Trust Securities (or portion thereof) redeemed on each Redemption Date shall be
redeemed at the Redemption Price with the proceeds from the contemporaneous
redemption or payment at maturity of Notes. Redemptions of the Trust Securities
(or portion thereof) shall be made and the Redemption Price shall be payable on
each Redemption Date only to the extent that the Trust has funds then on hand
and available in the Payment Account for the payment of such Redemption Price.  Under the Indenture, the Notes may be
redeemed by the Depositor on any Interest Payment Date, at the Depositor’s
option, on or after October 30, 2010, in whole or in part, from time to time at
the Optional Note Redemption Price.  The
Notes may also be redeemed by the Depositor, at its option pursuant to the
terms of the Indenture, in whole but not in part, upon the occurrence and
during the continuation of an Investment Company Event or a Tax Event, at the
Special Note Redemption Price.

 

(d)                                 If
the Property Trustee gives a notice of redemption in respect of any Preferred
Securities, then by 10:00 A.M., New York City time, on the Redemption
Date, the Depositor shall deposit sufficient funds with the Property Trustee to
pay the Redemption Price.  If such deposit
has been made by such time, then by 12:00 noon, New York City time, on the
Redemption Date, the Property Trustee will, with respect to Book-Entry
Preferred Securities, irrevocably deposit with the Depositary for such
Book-Entry Preferred Securities, to the extent available therefor, funds
sufficient to pay the applicable Redemption Price and will give such Depositary
irrevocable instructions and authority to pay the Redemption Price to the
Holders of the Preferred Securities. With respect to Preferred Securities that
are not Book-Entry Preferred Securities, the Property Trustee will irrevocably
deposit with the Paying Agent, to the extent available therefor, funds
sufficient to pay the applicable Redemption Price and will give the Paying
Agent irrevocable instructions and authority to pay the Redemption Price to the
Holders of the Preferred Securities upon surrender of their Preferred
Securities Certificates. Notwithstanding the foregoing, Distributions payable
on or prior to the Redemption Date for any Trust Securities (or portion thereof)
called for redemption shall be payable to the Holders of such Trust Securities
as they appear on the Securities Register on the relevant record dates for the
related Distribution Dates. If notice of redemption shall have been given and
funds deposited as required, then upon the date of such deposit, all rights of
Holders holding Trust Securities (or portion thereof) so called for redemption
will cease, except the right of such Holders to receive the Redemption Price and
any Distribution payable in respect of the Trust Securities on or prior to the
Redemption Date, but without interest, and, in the case of a partial
redemption, the right of such Holders to receive a new Trust Security or
Securities of authorized denominations, in aggregate Liquidation Amount equal
to the unredeemed portion of such Trust Security or Securities, and such
Securities (or portion thereof) called for redemption will cease to be
Outstanding. In the event that any date on which any Redemption Price is
payable is not a Business Day, then payment of the Redemption Price payable on
such date will be made on the next succeeding Business Day (and no interest
shall accrue in respect of the amounts whose payment is so delayed for the
period from and after each such date until the next succeeding Business Day),
except that, if such Business Day falls in the next succeeding calendar year,
such payment shall be made on the immediately preceding Business Day, in each
case, with the same force and effect as if made on such date. In the event that
payment of the Redemption Price in respect of any Trust Securities (or portion

 

19

 

thereof) called for redemption is improperly withheld
or refused and not paid either by the Trust, Distributions on such Trust
Securities (or portion thereof) will continue to accumulate, as set forth in Section 4.1,
from the Redemption Date originally established by the Trust for such Trust
Securities (or portion thereof) to the date such Redemption Price is actually
paid, in which case the actual payment date will be the date fixed for
redemption for purposes of calculating the Redemption Price.

 

(e)                                  Subject
to Section 4.3(a), if less than all the Outstanding Trust
Securities are to be redeemed on a Redemption Date, then the aggregate
Liquidation Amount of Trust Securities to be redeemed shall be allocated pro rata
to the Common Securities and the Preferred Securities based upon the relative
aggregate Liquidation Amounts of the Common Securities and the Preferred
Securities.  Upon such a partial redemption, the Preferred Securities to be redeemed from each Holder of
Preferred Securities shall
be selected on a pro rata basis based upon the respective
Liquidation Amounts of the Preferred Securities
then held by each Holder of the Preferred Securities  not
more than sixty (60) days prior to the Redemption Date by the Property Trustee
from the Outstanding Preferred Securities not previously called for redemption;
provided, that with respect to Holders
that would be required to hold less than one hundred (100) but more than zero
(0) Trust Securities as a result of such redemption, the Trust shall redeem
Trust Securities of each such Holder so that after such redemption such Holder
shall hold either one hundred (100) Trust Securities or such Holder no longer
holds any Trust Securities, and shall use such method (including, without
limitation, by lot) as the Trust shall deem fair and appropriate; and provided, further, that
so long as the Preferred Securities are Book-Entry Preferred Securities, such
selection shall be made in accordance with the Applicable Depositary Procedures
for the Preferred Securities by such Depositary. The Property Trustee
shall promptly notify the Securities Registrar in writing of the Preferred
Securities (or portion thereof) selected for redemption and, in the case of any
Preferred Securities selected for partial redemption, the Liquidation Amount
thereof to be redeemed. For all purposes of this Trust Agreement, unless the context
otherwise requires, all provisions relating to the redemption of Preferred
Securities shall relate, in the case of any Preferred Securities redeemed or to
be redeemed only in part, to the portion of the aggregate Liquidation Amount of
Preferred Securities that has been or is to be redeemed.

 

(f)                                    The
Trust in issuing the Trust Securities may use “CUSIP” numbers (if then
generally in use), and, if so, the Property Trustee shall indicate the “CUSIP”
numbers of the Trust Securities in notices of redemption and related materials
as a convenience to Holders; provided, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Trust Securities or as contained in any notice of redemption and related
materials.

 

SECTION 4.3.                       Subordination of
Common Securities.

 

(a)                                  Payment
of Distributions (including any Additional Interest Amounts) on, the Redemption
Price of and the Liquidation Distribution in respect of, the Trust Securities,
as applicable, shall be made, pro rata among the Common Securities and the Preferred
Securities based on the Liquidation Amount of the respective Trust Securities; provided,  that
if on any Distribution Date, Redemption Date or Liquidation Date an Event of
Default shall have occurred and be continuing, no payment of any Distribution
(including any Additional Interest Amounts) on, Redemption Price of or
Liquidation Distribution in respect of, any Common Security, and no other
payment on account of the redemption, liquidation or other acquisition of
Common

 

20

 

Securities, shall be made unless payment in full in
cash of all accumulated and unpaid Distributions (including any Additional
Interest Amounts) on all Outstanding Preferred Securities for all Distribution
periods terminating on or prior thereto, or in the case of payment of the
Redemption Price the full amount of such Redemption Price on all Outstanding
Preferred Securities then called for redemption, or in the case of payment of
the Liquidation Distribution the full amount of such Liquidation Distribution
on all Outstanding Preferred Securities, shall have been made or provided for,
and all funds immediately available to the Property Trustee shall first be
applied to the payment in full in cash of all Distributions (including any
Additional Interest Amounts) on, or the Redemption Price of or the Liquidation
Distribution in respect of, the Preferred Securities then due and payable.

 

(b)                                 In
the case of the occurrence of any Event of Default, the Holders of the Common
Securities shall have no right to act with respect to any such Event of Default
under this Trust Agreement until all such Events of Default with respect to the
Preferred Securities have been cured, waived or otherwise eliminated. Until all
such Events of Default under this Trust Agreement with respect to the Preferred
Securities have been so cured, waived or otherwise eliminated, the Property
Trustee shall act solely on behalf of the Holders of the Preferred Securities
and not on behalf of the Holders of the Common Securities, and only the Holders
of all the Preferred Securities will have the right to direct the Property
Trustee to act on their behalf.

 

SECTION 4.4.                       Payment Procedures.

 

Payments of Distributions
(including any Additional Interest Amounts), the Redemption Price, Liquidation
Amount or any other amounts in respect of the Preferred Securities shall be
made by wire transfer at such place and to such account at a banking
institution in the United States as may be designated in writing at least ten (10) Business
Days prior to the date for payment by the Person entitled thereto unless proper
written transfer instructions have not been received by the relevant record
date, in which case such payments shall be made by check mailed to the address
of such Person as such address shall appear in the Securities Register.  If any Preferred Securities are held by a
Depositary, such Distributions thereon shall be made to the Depositary in
immediately available funds. Payments in respect of the Common Securities shall
be made in such manner as shall be mutually agreed between the Property Trustee
and the Holder of all the Common Securities.

 

SECTION 4.5.                       Withholding Tax.

 

(a)                                  The
Trust and the Administrative Trustees shall comply with all withholding and
backup withholding tax requirements under United States federal, state and
local law.  The Administrative Trustees
on behalf of the Trust shall request, and the Holders shall provide to the
Trust, such forms or certificates as are necessary to establish an exemption
from withholding and backup withholding tax with respect to each Holder and any
representations and forms as shall reasonably be requested by the
Administrative Trustees on behalf of the Trust to assist it in determining the
extent of, and in fulfilling, its withholding and backup withholding tax
obligations.  The Administrative Trustees
shall file required forms with applicable jurisdictions and, unless an
exemption from withholding and backup withholding tax is properly established
by a Holder, shall remit amounts withheld with respect to the Holder to
applicable jurisdictions.  To the extent
that the Trust is required to withhold and pay over any amounts to any
jurisdiction

 

21

 

with respect to Distributions or allocations to any
Holder, the amount withheld shall be deemed to be a Distribution in the amount
of the withholding to the Holder.  In the
event of any claimed overwithholding, Holders shall be limited to an action
against the applicable jurisdiction.  If
the amount required to be withheld was not withheld from actual Distributions
made, the Administrative Trustees on behalf of the Trust may reduce subsequent
Distributions by the amount of such required withholding.

 

SECTION 4.6.                       Tax Returns and Other
Reports.

 

The Administrative Trustees shall prepare (or cause to be prepared) at
the principal office of the Trust in the United States, as defined for purposes
of Treasury regulations section 301.7701-7, at the Depositor’s expense,
and file, all United States federal, state and local tax and information
returns and reports required to be filed by or in respect of the Trust.  The Administrative Trustees shall prepare at
the principal office of the Trust in the United States, as defined for purposes
of Treasury regulations section 301.7701-7, and furnish (or cause to be
prepared and furnished), by January 31 in each taxable year of the Trust
to each Holder all Internal Revenue Service forms and returns required to be
provided by the Trust. The Administrative Trustees shall provide the Depositor,
Cohen Bros. & Company and the Property Trustee with a copy of all such
returns and reports promptly after such filing or furnishing.

 

SECTION 4.7.                       Payment of Taxes,
Duties, Etc. of the Trust.

 

Upon receipt under the
Notes of Additional Tax Sums and upon the written direction of the
Administrative Trustees, the Property Trustee shall promptly pay, solely out of
monies on deposit pursuant to this Trust Agreement, any Additional Taxes
imposed on the Trust by the United States or any other taxing authority.

 

SECTION 4.8.                       Payments under
Indenture or Pursuant to Direct Actions.

 

Any amount payable
hereunder to any Holder of Preferred Securities shall be reduced by the amount
of any corresponding payment such Holder (or any Owner with respect thereto)
has directly received pursuant to Section 5.8 of the Indenture or Section 6.10(b) of
this Trust Agreement.

 

SECTION 4.9.                       Exchanges.

 

(a)                                  If
at any time the Depositor or any of its Affiliates (in either case, a “Depositor Affiliate”) is the
Owner or Holder of any Preferred Securities, such Depositor Affiliate shall
have the right to deliver to the Property Trustee all or such portion of its
Preferred Securities as it elects and, subject to compliance with Sections 2.2
and 3.5 of the Indenture, receive, in exchange therefor, a Like Amount of
Notes.  Such election shall be
exercisable effective on any Distribution Date by such Depositor Affiliate
delivering to the Property Trustee (i) at least ten (10) Business
Days prior to the Distribution Date on which such exchange is to occur, the
registration instructions and the documentation, if any, required pursuant to
Sections 2.2 and 3.5 of the Indenture to enable the Indenture Trustee to issue
the requested Like Amount of Notes, (ii) a written notice of such election
specifying the Liquidation Amount of Preferred Securities with respect to which
such election is being made and the Distribution Date on which such exchange

 

22

 

shall occur, which Distribution Date shall be not less
than ten (10) Business Days after the date of receipt by the Property
Trustee of such election notice and (iii) shall be conditioned upon such
Depositor Affiliate having delivered or caused to be delivered to the Property
Trustee or its designee the Preferred Securities that are the subject of such
election by 10:00 A.M. New York time, on the Distribution Date on which
such exchange is to occur.  After the
exchange, such Preferred Securities will be canceled and will no longer be
deemed to be Outstanding and all rights of the Depositor Affiliate with respect
to such Preferred Securities will cease.

 

(b)                                 In
the case of an exchange described in Section 4.9(a), the Property
Trustee on behalf of the Trust will, on the date of such exchange, exchange
Notes having a principal amount equal to a proportional amount of the aggregate
Liquidation Amount of the Outstanding Common Securities, based on the ratio of
the aggregate Liquidation Amount of the Preferred Securities exchanged pursuant
to Section 4.9(a) divided by the aggregate Liquidation Amount
of the Preferred Securities Outstanding immediately prior to such exchange, for
such proportional amount of Common Securities held by the Depositor (which
contemporaneously shall be canceled and no longer be deemed to be Outstanding);
provided,
that the Depositor delivers or causes to be delivered to the Property Trustee
or its designee the required amount of Common Securities to be exchanged by 10:00 A.M.
New York time, on the Distribution Date on which such exchange is to occur.

 

SECTION 4.10.                 Calculation Agent.

 

(a)                                  The
Calculation Agent may be removed by the Administrative Trustees at any
time.  Notwithstanding the foregoing, the
Property Trustee shall initially, and for so long as it holds any of the Notes,
be the Calculation Agent for purposes of determining LIBOR for each
Distribution Date.  If the Calculation
Agent is unable or unwilling to act as such or is removed by the Administrative
Trustees, the Administrative Trustees will promptly appoint as a replacement
Calculation Agent the London office of a leading bank which is engaged in
transactions in three-month Eurodollar deposits in the international Eurodollar
market and which does not control or is not controlled by or under common
control with the Administrative Trustee or its Affiliates.  The Calculation Agent may not resign its
duties without a successor having been duly appointed.

 

(b)                                 The
Calculation Agent shall be required to agree that, as soon as possible after
11:00 a.m. (London time) on each LIBOR Determination Date, but in no event
later than 11:00 a.m. (London time) on the Business Day immediately
following each LIBOR Determination Date, the Calculation Agent will calculate
the interest rate (rounded to the nearest cent, with half a cent being rounded
upwards) for the related Distribution Date, and will communicate such rate and
amount to the Depositor, the Administrative Trustees, the Note Trustee, each
Paying Agent and the Depositary. The Calculation Agent will also specify to the
Administrative Trustee the quotations upon which the foregoing rates and
amounts are based and, in any event, the Calculation Agent shall notify the
Administrative Trustees before 5:00 p.m. (London time) on each LIBOR
Determination Date that either:  (i) it
has determined or is in the process of determining the foregoing rates and
amounts or (ii) it has not determined and is not in the process of
determining the foregoing rates and amounts, together with its reasons
therefor.  The Calculation Agent’s
determination of the foregoing rates and amounts for any Distribution Date will
(in the absence of manifest error) be final and binding upon all parties.  For the sole purpose

 

23

 

of calculating the interest rate for the Trust
Securities, “Business Day” shall be defined as any day on which dealings in
deposits in Dollars are transacted in the London interbank market.

 

SECTION 4.11.                 Certain
Accounting Matters.

 

(a)                                  At
all times during the existence of the Trust, the Administrative Trustees shall
keep, or cause to be kept at the principal office of the Trust in the United
States, as defined for purposes of Treasury Regulations section 301.7701-7,
full books of account, records and supporting documents, which shall reflect in
reasonable detail each transaction of the Trust.  The books of account shall be maintained on
the accrual method of accounting, in accordance with generally accepted
accounting principles, consistently applied.

 

(b)                                 The
Administrative Trustees shall either (i) if the Depositor is then subject
to such reporting requirements, cause each Form 10-K and Form 10-Q
prepared by the Depositor and filed with the Commission in accordance with the
Exchange Act to be delivered to each Holder, with a copy to the Property
Trustee, within thirty (30) days after the filing thereof or (ii) cause
to be prepared at the principal office of the Trust in the United States, as
defined for purposes of Treasury Regulations section 301.7701-7, and
delivered to each of the Holders, with a copy to the Property Trustee, within
ninety (90) days after the end of each Fiscal Year, annual financial statements
of the Trust, including a balance sheet of the Trust as of the end of such
Fiscal Year, and the related statements of income or loss.

 

(c)                                  If
the Depositor intends to file its annual and quarterly information with the
Commission in electronic form pursuant to Regulation S-T of the Commission
using the Commission’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system, the Administrative
Trustees shall notify the Property Trustee in the manner prescribed herein of
each such annual and quarterly filing. 
The Property Trustee is hereby authorized and directed to access the
EDGAR system for purposes of retrieving the financial information so
filed.  Compliance with the foregoing
shall constitute delivery by the Administrative Trustees of its financial
statements to the Property Trustee in compliance with the provisions of Section 314(a) of
the Trust Indenture Act, if applicable. 
The Property Trustee shall have no duty to search for or obtain any
electronic or other filings that the Depositor makes with the Commission,
regardless of whether such filings are periodic, supplemental or
otherwise.  Delivery of reports,
information and documents to the Property Trustee pursuant to this Section 4.11(c) shall
be solely for purposes of compliance with this Section 4.11 and, if
applicable, with Section 314(a) of the Trust Indenture Act.  The Property Trustee’s receipt of such
reports, information and documents shall not constitute notice to it of the
content thereof or any matter determinable from the content thereof, including
the Depositor’s compliance with any of its covenants hereunder, as to which the
Property Trustee is entitled to rely upon Officers’ Certificates.

 

(d)                                 The
Trust shall maintain one or more bank accounts in the United States, as defined
for purposes of Treasury Regulations section 301.7701-7, in the name and for
the sole benefit of the Trust; provided, however,
that all payments of funds in respect of the Notes held by the Property Trustee
shall be made directly to the Payment Account and no other funds of the Trust
shall be deposited in the Payment Account. 
The sole signatories for such accounts (including the Payment Account)
shall be designated by the Property Trustee.

 

24

 

ARTICLE V.

SECURITIES

 

SECTION 5.1.        Initial Ownership.

 

Upon the creation of the Trust and the contribution by
the Depositor referred to in Section 2.3 and until the issuance of
the Trust Securities, and at any time during which no Trust Securities are Outstanding,
the Depositor shall be the sole beneficial owner of the Trust.

 

SECTION 5.2.        Authorized Trust
Securities.

 

The Trust shall be authorized to issue one series of
Preferred Securities having an aggregate Liquidation Amount of $100,000,000 and one series of Common Securities
having an aggregate Liquidation Amount of $3,093,000.

 

SECTION 5.3.        Issuance of the
Common Securities; Subscription and Purchase of Notes.

 

On the Closing Date, an Administrative Trustee, on
behalf of the Trust, shall execute and deliver to the Depositor Common
Securities Certificates, registered in the name of the Depositor, evidencing an
aggregate of 3,093 Common Securities
having an aggregate Liquidation Amount of Three
Million Ninety Three Thousand Dollars ($3,093,000), against
receipt by the Trust of the aggregate purchase price of such Common Securities
of Three Million Ninety Three Thousand
Dollars ($3,093,000). Contemporaneously
therewith and with the sale by the Trust to the Holders of an aggregate of 100,000 Preferred Securities having an
aggregate Liquidation Amount of One Hundred
Million Dollars ($100,000,000) an
Administrative Trustee, on behalf of the Trust, shall purchase from the
Depositor Notes, to be registered in the name of the Property Trustee on behalf
of the Trust and having an aggregate principal amount equal to One Hundred Three Million Ninety Three ThousandDollars
($103,093,000), and, in satisfaction of
the purchase price for such Notes, the Property Trustee, on behalf of the
Trust, shall deliver to the Depositor the sum of One Hundred Three Million Ninety Three Thousand Dollars ($103,093,000) (being the aggregate amount paid
by the Holders for the Preferred Securities, and the amount paid by the
Depositor for the Common Securities).

 

SECTION 5.4.        The Securities
Certificates.

 

(a)           The
Preferred Securities Certificates shall be issued in minimum denominations of
$100,000 Liquidation Amount and integral multiples of $1,000 in excess thereof,
and the Common Securities Certificates shall be issued in minimum denominations
of $10,000 Liquidation Amount and integral multiples of $1,000 in excess
thereof.  The Securities Certificates
shall be executed on behalf of the Trust by manual or facsimile signature of at
least one Administrative Trustee. 
Securities Certificates bearing the signatures of individuals who were,
at the time when such signatures shall have been affixed, authorized to sign
such Securities Certificates on behalf of the Trust shall be validly issued and
entitled to the benefits of this Trust Agreement, notwithstanding that such
individuals or any of them shall have ceased to be so authorized prior to the
delivery of such Securities Certificates or did not have such authority at the
date of delivery of such Securities Certificates.

 

25

 

(b)           On
the Closing Date, upon the written order of an authorized officer of the
Depositor, the Administrative Trustees shall cause Securities Certificates to
be executed on behalf of the Trust and delivered, without further corporate
action by the Depositor, in authorized denominations.

 

(c)           The
Preferred Securities issued to QIBs/QPs may be, except as provided in Section
5.6, Book-Entry Preferred Securities issued in the form of one or more
Global Preferred Securities registered in the name of the Depositary, or its
nominee and deposited with the Depositary or a custodian for the Depositary for
credit by the Depositary to the respective accounts of the Depositary
Participants thereof (or such other accounts as they may direct).  The Preferred Securities issued to a Person
other than a QIB/QP shall be issued in the form of Definitive Preferred
Securities Certificates.

 

(d)           A
Preferred Security shall not be valid until authenticated by the manual
signature of an authorized signatory of the Property Trustee.  Such signature shall be conclusive evidence
that the Preferred Security has been authenticated under this Trust
Agreement.  Upon written order of the
Trust signed by one Administrative Trustee, the Property Trustee shall
authenticate the Preferred Securities for original issue.  The Property Trustee may appoint an
authenticating agent that is a U.S. Person acceptable to the Trust to
authenticate the Preferred Securities.  A
Common Security need not be so authenticated and shall be valid upon execution
by one or more Administrative Trustees. 
The form of this certificate of authentication can be found in Section
5.13.

 

SECTION 5.5.        Rights of Holders.

 

The Trust Securities shall have no preemptive or
similar rights and when issued and delivered to Holders against payment of the
purchase price therefor will be fully paid and non-assessable by the
Trust.  Except as provided in Section
5.11(b), the Holders of the Trust Securities, in their capacities as such,
shall be entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the General
Corporation Law of the State of Delaware.

 

SECTION 5.6.         Book-Entry Preferred
Securities.

 

(a)           A
Global Preferred Security may be exchanged, in whole or in part, for Definitive
Preferred Securities Certificates registered in the names of the Owners only if
such exchange complies with Section 5.7 and (i) the Depositary
advises the Administrative Trustees and the Property Trustee in writing that
the Depositary is no longer willing or able properly to discharge its
responsibilities with respect to the Global Preferred Security, and no
qualified successor is appointed by the Administrative Trustees within ninety
(90) days of receipt of such notice, (ii) the Depositary ceases to be a
clearing agency registered under the Exchange Act and the Administrative
Trustees fail to appoint a qualified successor within ninety (90) days of
obtaining knowledge of such event, (iii) the Administrative Trustees at
their option advise the Property Trustee in writing that the Trust elects to
terminate the book-entry system through the Depositary or (iv) a Note
Event of Default has occurred and is continuing. Upon the occurrence of any
event specified in clause (i), (ii), (iii) or (iv) above, the Administrative
Trustees shall notify the Depositary and instruct the Depositary to notify all
Owners of Book-Entry Preferred Securities,

 

26

 

the Delaware Trustee and
the Property Trustee of the occurrence of such event and of the availability of
the Definitive Preferred Securities Certificates to Owners of the Preferred
Securities requesting the same. Upon the issuance of Definitive Preferred
Securities Certificates, the Trustees shall recognize the Holders of the
Definitive Preferred Securities Certificates as Holders.  Notwithstanding the foregoing, if an Owner of
a beneficial interest in a Global Preferred Security wishes at any time to
transfer an interest in such Global Preferred Security to a Person other than a
QIB/QP, such transfer shall be effected, subject to the Applicable Depositary
Procedures, in accordance with the provisions of this Section 5.6 and Section
5.7, and the transferee shall receive a Definitive Preferred Securities
Certificate in connection with such transfer. 
A holder of a Definitive Preferred Securities Certificate that is a
QIB/QP may, upon request and in accordance with the provisions of this Section
5.6 and Section 5.7, exchange such Definitive Preferred Securities
Certificate for a beneficial interest in a Global Preferred Security.

 

(b)           If
any Global Preferred Security is to be exchanged for Definitive Preferred
Securities Certificates or canceled in part, or if any Definitive Preferred
Securities Certificate is to be exchanged in whole or in part for any Global
Preferred Security, then either (i) such Global Preferred Security shall be so
surrendered for exchange or cancellation as provided in this Article V
or (ii) the aggregate Liquidation Amount represented by such Global Preferred
Security shall be reduced, subject to Section 5.4, or increased by an
amount equal to the Liquidation Amount represented by that portion of the
Global Preferred Security to be so exchanged or canceled, or equal to the
Liquidation Amount represented by such Definitive Preferred Securities
Certificates to be so exchanged for any Global Preferred Security, as the case
may be, by means of an appropriate adjustment made on the records of the
Securities Registrar, whereupon the Property Trustee, in accordance with the
Applicable Depositary Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender to the Administrative Trustees or the Securities
Registrar of any Global Preferred Security or Securities by the Depositary,
accompanied by registration instructions, the Administrative Trustees, or any
one of them, shall execute the Definitive Preferred Securities Certificates in
accordance with the instructions of the Depositary.  None of the Securities Registrar or the
Trustees shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be fully protected in relying on, such
instructions.

 

(c)           Every
Definitive Preferred Securities Certificate executed and delivered upon
registration or transfer of, or in exchange for or in lieu of, a Global
Preferred Security or any portion thereof shall be executed and delivered in
the form of, and shall be, a Global Preferred Security, unless such Definitive
Preferred Securities Certificate is registered in the name of a Person other
than the Depositary for such Global Preferred Security or a nominee thereof.

 

(d)           The
Depositary or its nominee, as registered owner of a Global Preferred Security,
shall be the Holder of such Global Preferred Security for all purposes under
this Trust Agreement and the Global Preferred Security, and Owners with respect
to a Global Preferred Security shall hold such interests pursuant to the
Applicable Depositary Procedures. The Securities Registrar and the Trustees
shall be entitled to deal with the Depositary for all purposes of this Trust
Agreement relating to the Global Preferred Securities (including the payment of
the Liquidation Amount of and Distributions on the Book-Entry Preferred
Securities represented thereby and the giving of instructions or directions by
Owners of Book-Entry Preferred Securities represented thereby and the giving of
notices) as the sole Holder of the Book-Entry

 

27

 

Preferred Securities
represented thereby and shall have no obligations to the Owners thereof.  None of the Trustees nor the Securities
Registrar shall have any liability in respect of any transfers effected by the
Depositary.

 

(e)           The
rights of the Owners of the Book-Entry Preferred Securities shall be exercised
only through the Depositary and shall be limited to those established by law,
the Applicable Depositary Procedures and agreements between such Owners and the
Depositary and/or the Depositary Participants; provided, that
solely for the purpose of determining whether the Holders of the requisite
amount of Preferred Securities have voted on any matter provided for in this
Trust Agreement, to the extent that Preferred Securities are represented by a
Global Preferred Security, the Trustees may conclusively rely on, and shall be
fully protected in relying on, any written instrument (including a proxy)
delivered to the Property Trustee by the Depositary setting forth the Owners’
votes or assigning the right to vote on any matter to any other Persons either
in whole or in part.  To the extent that
Preferred Securities are represented by a Global Preferred Security, the
initial Depositary will make book-entry transfers among the Depositary
Participants and receive and transmit payments on the Preferred Securities that
are represented by a Global Preferred Security to such Depositary Participants,
and none of the Depositor or the Trustees shall have any responsibility or
obligation with respect thereto.

 

(f)            To
the extent that a notice or other communication to the Holders is required
under this Trust Agreement, for so long as Preferred Securities are represented
by a Global Preferred Security, the Trustees shall give all such notices and
communications to the Depositary, and shall have no obligations to the Owners.

 

SECTION 5.7.        Registration of
Transfer and Exchange of Preferred Securities Certificates.

 

(a)           The
Property Trustee shall keep or cause to be kept, at the Corporate Trust Office,
a register or registers (the “Securities Register”)
in which the registrar and transfer agent with respect to the Trust Securities
(the “Securities Registrar”), subject
to such reasonable regulations as it may prescribe, shall provide for the
registration of Preferred Securities Certificates and Common Securities
Certificates and registration of transfers and exchanges of Preferred
Securities Certificates as herein provided. The Person acting as the Property
Trustee shall at all times also be the Securities Registrar.  The provisions of Article VIII shall
apply to the Property Trustee in its role as Securities Registrar.

 

(b)           Subject
to Section 5.7(d), upon surrender for registration of transfer of any Preferred
Securities Certificate at the office or agency maintained pursuant to Section 5.7(f),
the Administrative Trustees or any one of them shall execute by manual or
facsimile signature and deliver to the Property Trustee, and the Property
Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Preferred Securities Certificates in
authorized denominations of a like aggregate Liquidation Amount as may be
required by this Trust Agreement dated the date of execution by such
Administrative Trustee or Trustees.  At
the option of a Holder, Preferred Securities Certificates may be exchanged for
other Preferred Securities Certificates in authorized denominations and of a
like aggregate Liquidation Amount upon surrender of the Preferred Securities
Certificate to be exchanged at the office or agency maintained pursuant to Section
5.7(f).  Whenever any Preferred
Securities Certificates

 

28

 

are so surrendered for
exchange, the Administrative Trustees or any one of them shall execute by
manual or facsimile signature and deliver to the Property Trustee, and the
Property Trustee shall authenticate and deliver, the Preferred Securities
Certificates that the Holder making the exchange is entitled to receive.

 

(c)           The
Securities Registrar shall not be required, (i) to issue, register the
transfer of or exchange any Preferred Security during a period beginning at the
opening of business fifteen (15) days before the day of selection for
redemption of such Preferred Securities pursuant to Article IV and
ending at the close of business on the day of mailing of the notice of
redemption or (ii) to register the transfer of or exchange any Preferred
Security so selected for redemption in whole or in part, except, in the case of
any such Preferred Security to be redeemed in part, any portion thereof not to
be redeemed.

 

(d)           Every
Preferred Securities Certificate presented or surrendered for registration of
transfer or exchange shall be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Securities Registrar duly
executed by the Holder or such Holder’s attorney duly authorized in writing and
accompanied by a certificate of the transferor substantially in the form set
forth as Exhibit E hereto.

 

(e)           No
service charge shall be made for any registration of transfer or exchange of
Preferred Securities Certificates, but the Property Trustee on behalf of the
Trust may require payment of a sum sufficient to cover any tax or governmental
charge that may be imposed in connection with any transfer or exchange of
Preferred Securities Certificates.

 

(f)            The
Administrative Trustees shall designate an office or offices or agency or
agencies where Preferred Securities Certificates may be surrendered for
registration of transfer or exchange and initially designate the Corporate
Trust Office as its office and agency for such purposes. The Administrative
Trustees shall give prompt written notice to the Depositor, the Property
Trustee and to the Holders of any change in the location of any such office or
agency.

 

(g)           The
Preferred Securities may only be transferred to a “Qualified Purchaser” as such
term is defined in Section 2(a)(51) of the Investment Company Act.

 

(h)           Neither
the Property Trustee nor the Securities Registrar shall be responsible for
ascertaining whether any transfer hereunder complies with the registration
provisions of or any exemptions from the Securities Act, applicable state
securities laws or the applicable laws of any other jurisdiction, ERISA, the
Code or the Investment Company Act; provided, that if a certificate is
specifically required by the express terms of this Section 5.7 to be delivered
to the Trustee or the Securities Registrar, such party shall be under a duty to
receive and examine the same to determine whether or not the certificate
substantially conforms on its face to the requirements of this Indenture and
shall promptly notify the party delivering the same if such certificate does
not comply with such terms.

 

SECTION 5.8.        Mutilated, Destroyed,
Lost or Stolen Securities Certificates.

 

(a)           If
any mutilated Securities Certificate shall be surrendered to the Securities
Registrar together with such security or indemnity as may be required by the
Securities Registrar to save each of the Trustees harmless, the Administrative
Trustees, or any one of them, on behalf

 

29

 

of the Trust, shall
execute and make available for delivery in exchange therefor a new Securities
Certificate of like class, tenor and denomination.

 

(b)           If
the Securities Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Securities Certificate and there shall
be delivered to the Securities Registrar such security or indemnity as may be
required by it to save each of the Trustees harmless, then in the absence of
notice that such Securities Certificate shall have been acquired by a protected
purchaser, the Administrative Trustees, or any one of them, on behalf of the
Trust, shall execute and make available for delivery, and, with respect to
Preferred Securities, the Property Trustee shall authenticate, in exchange for
or in lieu of any such destroyed, lost or stolen Securities Certificate, a new
Securities Certificate of like class, tenor and denomination.

 

(c)           In
connection with the issuance of any new Securities Certificate under this Section 5.8,
the Administrative Trustees or the Securities Registrar may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith.

 

(d)           Any
duplicate Securities Certificate issued pursuant to this Section 5.8
shall constitute conclusive evidence of an undivided beneficial interest in the
assets of the Trust corresponding to that evidenced by the mutilated, lost,
stolen or destroyed Securities Certificate, as if originally issued, whether or
not the lost, stolen or destroyed Securities Certificate shall be found at any
time.

 

(e)           If
any such mutilated, destroyed, lost or stolen Securities Certificate has become
or is about to become due and payable, the Depositor in its discretion may
provide the Property Trustee with the funds to pay such Trust Security and upon
receipt of such funds, the Property Trustee shall pay such Trust Security
instead of issuing a new Securities Certificate.

 

(f)            The
provisions of this Section 5.8 are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement of
mutilated, destroyed, lost or stolen Securities Certificates.

 

SECTION 5.9.        Persons Deemed
Holders.

 

The Trustees and the Securities Registrar shall each
treat the Person in whose name any Securities Certificate shall be registered
in the Securities Register as the owner of such Securities Certificate for the
purpose of receiving Distributions and for all other purposes whatsoever, and
none of the Trustees and the Securities Registrar shall be bound by any notice
to the contrary.

 

SECTION 5.10.      Cancellation.

 

All Preferred Securities Certificates surrendered for
registration of transfer or exchange or for payment shall, if surrendered to
any Person other than the Property Trustee, be delivered to the Property
Trustee, and any such Preferred Securities Certificates and Preferred
Securities Certificates surrendered directly to the Property Trustee for any
such purpose shall be promptly canceled by it. 
The Administrative Trustees may at any time deliver to the Property
Trustee for cancellation any Preferred Securities Certificates previously
delivered hereunder that the Administrative Trustees may have acquired in any
manner whatsoever, and all Preferred

 

30

 

Securities Certificates
so delivered shall be promptly canceled by the Property Trustee.  No Preferred Securities Certificates shall be
executed and delivered in lieu of or in exchange for any Preferred Securities
Certificates canceled as provided in this Section 5.10, except as
expressly permitted by this Trust Agreement. 
All canceled Preferred Securities Certificates shall be retained by the
Property Trustee in accordance with its customary practices.

 

SECTION 5.11.      Ownership of Common
Securities by Depositor.

 

(a)           On
the Closing Date, the Depositor shall acquire, and thereafter shall retain,
beneficial and record ownership of the Common Securities. Neither the Depositor
nor any successor Holder of the Common Securities may transfer less than all
the Common Securities, and the Depositor or any such successor Holder may
transfer the Common Securities only (i) in connection with a consolidation
or merger of the Depositor into another Person, or any conveyance, transfer or
lease by the Depositor of its properties and assets substantially as an
entirety to any Person (in which event such Common Securities will be
transferred to such surviving entity, transferee or lessee, as the case may
be), pursuant to Section 8.1 of the Indenture or (ii) to the
Depositor or an Affiliate of the Depositor, in each such case in compliance
with applicable law (including the Securities Act, and applicable state
securities and blue sky laws). To the fullest extent permitted by law, any
attempted transfer of the Common Securities other than as set forth in the
immediately preceding sentence shall be void. The Administrative Trustees shall
cause each Common Securities Certificate issued to the Depositor to contain a
legend stating substantially “THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN
COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE TRUST AGREEMENT.”

 

(b)           Any
Holder of the Common Securities shall be liable for the debts and obligations
of the Trust in the manner and to the extent set forth with respect to the
Depositor and agrees that it shall be subject to all liabilities to which the
Depositor may be subject and, prior to becoming such a Holder, shall deliver to
the Administrative Trustees an instrument of assumption satisfactory to such
Trustees.

 

SECTION 5.12.      Restricted Legends.

 

(a)           Each
Preferred Security Certificate shall bear a legend in substantially the
following form:

 

“[IF THIS SECURITY IS A
GLOBAL SECURITY INSERT: THIS PREFERRED SECURITY IS A GLOBAL SECURITY
WITHIN THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF
DTC.  THIS PREFERRED SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC
OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST
AGREEMENT, AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER OF
THIS PREFERRED SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE
OF DTC TO DTC OR

 

31

 

ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN
LIMITED CIRCUMSTANCES.

 

UNLESS THIS PREFERRED SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO ISTAR
FINANCIAL STATUTORY TRUST I OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON 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.]

 

THE PREFERRED SECURITIES REPRESENTED BY THIS
CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND SUCH
PREFERRED SECURITIES OR ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM.  EACH PURCHASER OF
ANY PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED
SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

 

THE HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY
THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT (A)
SUCH PREFERRED SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY
(I) TO THE TRUST, OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED
PURCHASER” (AS DEFINED IN SECTION 2(A)(51) OF THE INVESTMENT COMPANY ACT OF
1940, AS AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY
PREFERRED SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A)
ABOVE.

 

THE PREFERRED SECURITIES WILL BE ISSUED AND MAY BE
TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE LIQUIDATION AMOUNT OF NOT LESS
THAN $100,000. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED TRANSFER
OF PREFERRED SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN
AGGREGATE LIQUIDATION AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000 IN
EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE
DEEMED NOT TO BE THE HOLDER OF SUCH PREFERRED SECURITIES FOR ANY PURPOSE,
INCLUDING, BUT NOT

 

32

 

LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST ON
SUCH PREFERRED SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED
TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH PREFERRED
SECURITIES.

 

THE HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN,
BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT
IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED (“ERISA”), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN
ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON
INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS PREFERRED SECURITY
OR ANY INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE PREFERRED SECURITIES OR
ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND
HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF
SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE
BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE.”

 

(b)           The
above legend shall not be removed from any of the Preferred Securities
Certificates unless there is delivered to the Property Trustee and the
Depositor satisfactory evidence, which may include an opinion of counsel, as
may be reasonably required to ensure that any future transfers thereof may be
made without restriction under the provisions of the Securities Act and other
applicable law.  Upon provision of such
satisfactory evidence, one or more of the Administrative Trustees on behalf of
the Trust shall execute and deliver to the Property Trustee, and the Property
Trustee shall deliver, at the written direction of the Administrative Trustees
and the Depositor, Preferred Securities Certificates that do not bear the
legend.

 

SECTION
5.13.      Form of Certificate of Authentication.

 

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

 

This is one of the Preferred Securities referred to in
the within-mentioned Trust Agreement.

 

Dated:                                                                                                                                                                                                                                                             JPMORGAN
CHASE BANK, NATIONAL ASSOCIATION, not in its individual capacity, but solely as
Property Trustee

 

33

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Authorized signatory

  

 

ARTICLE VI.

MEETINGS; VOTING; ACTS OF HOLDERS

 

SECTION 6.1.        Notice of Meetings.

 

Notice of all meetings of the Holders of the Preferred
Securities, stating the time, place and purpose of the meeting, shall be given
by the Property Trustee pursuant to Section 10.8 to each Holder of
Preferred Securities, at such Holder’s registered address, at least fifteen
(15) days and not more than ninety (90) days before the meeting. At any such
meeting, any business properly before the meeting may be so considered whether
or not stated in the notice of the meeting. Any adjourned meeting may be held
as adjourned without further notice.

 

SECTION 6.2.        Meetings of Holders
of the Preferred Securities.

 

(a)           No
annual meeting of Holders is required to be held. The Property Trustee,
however, shall call a meeting of the Holders of the Preferred Securities to
vote on any matter upon the written request of the Holders of at least twenty
five percent (25%) in aggregate Liquidation Amount of the Outstanding Preferred
Securities and the Administrative Trustees or the Property Trustee may, at any
time in their discretion, call a meeting of the Holders of the Preferred
Securities to vote on any matters as to which such Holders are entitled to
vote.

 

(b)           The
Holders of at least a Majority in Liquidation Amount of the Preferred
Securities, present in person or by proxy, shall constitute a quorum at any
meeting of the Holders of the Preferred Securities.

 

(c)           If
a quorum is present at a meeting, an affirmative vote by the Holders present,
in person or by proxy, holding Preferred Securities representing at least a
Majority in Liquidation Amount of the Preferred Securities held by the Holders
present, either in person or by proxy, at such meeting shall constitute the
action of the Holders of the Preferred Securities, unless this Trust Agreement
requires a lesser or greater number of affirmative votes.

 

SECTION 6.3.        Voting Rights.

 

Holders shall be entitled to one vote for each $10,000
of Liquidation Amount represented by their Outstanding Trust Securities in
respect of any matter as to which such Holders are entitled to vote.

 

SECTION 6.4.        Proxies, Etc.

 

At any meeting of Holders, any Holder entitled to vote
thereat may vote by proxy, provided, that no proxy shall be voted at any meeting unless
it shall have been placed on file with the Administrative Trustees, or with
such other officer or agent of the Trust as the

 

34

 

Administrative Trustees
may direct, for verification prior to the time at which such vote shall be
taken. Pursuant to a resolution of the Property Trustee, proxies may be
solicited in the name of the Property Trustee or one or more officers of the
Property Trustee. Only Holders of record shall be entitled to vote. When Trust
Securities are held jointly by several Persons, any one of them may vote at any
meeting in person or by proxy in respect of such Trust Securities, but if more
than one of them shall be present at such meeting in person or by proxy, and
such joint owners or their proxies so present disagree as to any vote to be
cast, such vote shall not be received in respect of such Trust Securities. A
proxy purporting to be executed by or on behalf of a Holder shall be deemed
valid unless challenged at or prior to its exercise, and the burden of proving
invalidity shall rest on the challenger. No proxy shall be valid more than
three years after its date of execution.

 

SECTION 6.5.        Holder Action by
Written Consent.

 

Any action that may be taken by Holders at a meeting
may be taken without a meeting and without prior notice if Holders holding at
least a Majority in Liquidation Amount of all Preferred Securities entitled to
vote in respect of such action (or such lesser or greater proportion thereof as
shall be required by any other provision of this Trust Agreement) shall consent
to the action in writing; provided, that notice of such action is promptly provided to
the Holders of Preferred Securities that did not consent to such action.  Any action that may be taken by the Holders
of all the Common Securities may be taken without a meeting and without prior
notice if such Holders shall consent to the action in writing.

 

SECTION 6.6.        Record Date for
Voting and Other Purposes.

 

Except as provided in Section 6.10(a), for the
purposes of determining the Holders who are entitled to notice of and to vote
at any meeting or to act by written consent, or to participate in any
distribution on the Trust Securities in respect of which a record date is not
otherwise provided for in this Trust Agreement, or for the purpose of any other
action, the Administrative Trustees may from time to time fix a date, not more
than ninety (90) days prior to the date of any meeting of Holders or the
payment of a Distribution or other action, as the case may be, as a record date
for the determination of the identity of the Holders of record for such
purposes.

 

SECTION 6.7.        Acts of Holders.

 

(a)           Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Trust Agreement 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
thereof duly appointed in writing; and, except as otherwise expressly provided
herein, such action shall become effective when such instrument or instruments
are delivered to an Administrative Trustee. 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 Trust Agreement and conclusive in favor of the
Trustees, if made in the manner provided in this Section 6.7.

 

35

 

(b)           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 such signer’s
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of such signer’s 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 that any Trustee receiving the
same deems sufficient.

 

(c)           The
ownership of Trust Securities shall be proved by the Securities Register.

 

(d)           Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of the Holder of any Trust Security shall bind every future Holder of the same
Trust Security and the Holder of every Trust 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 Trustees, the
Administrative Trustees or the Trust in reliance thereon, whether or not
notation of such action is made upon such Trust Security.

 

(e)           Without
limiting the foregoing, a Holder entitled hereunder to take any action
hereunder with regard to any particular Trust Security may do so with regard to
all or any part of the Liquidation Amount of such Trust 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 Liquidation Amount.

 

(f)            If
any dispute shall arise among the Holders or the Trustees with respect to the
authenticity, validity or binding nature of any request, demand, authorization,
direction, notice, consent, waiver or other Act of such Holder or Trustee under
this Article VI, then the determination of such matter by the Property
Trustee shall be conclusive with respect to such matter.

 

SECTION 6.8.        Inspection of Records.

 

Upon reasonable written notice to the Administrative
Trustees and the Property Trustee, the records of the Trust shall be open to
inspection by any Holder during normal business hours for any purpose
reasonably related to such Holder’s interest as a Holder.

 

SECTION 6.9.        Limitations on Voting
Rights.

 

(a)           Except
as expressly provided in this Trust Agreement and in the Indenture and as
otherwise required by law, no Holder of Preferred Securities shall have any
right to vote or in any manner otherwise control the administration, operation
and management of the Trust or the obligations of the parties hereto, nor shall
anything herein set forth, or contained in the terms of the Securities
Certificates, be construed so as to constitute the Holders from time to time as
partners or members of an association.

 

(b)           So
long as any Notes are held by the Property Trustee on behalf of the Trust, the
Property Trustee shall not (i) direct the time, method and place of
conducting any proceeding for

 

36

 

any remedy available to
the Note Trustee, or exercise any trust or power conferred on the Property
Trustee with respect to the Notes, (ii) waive any past default that may be
waived under Section 5.13 of the Indenture or waive compliance with any
covenant or condition under Section 10.7 of the Indenture, (iii) exercise
any right to rescind or annul a declaration that the principal of all the Notes
shall be due and payable or (iv) consent to any amendment, modification or
termination of the Indenture or the Notes, where such consent shall be
required, without, in each case, obtaining the prior approval of the Holders of
at least a Majority in Liquidation Amount of the Preferred Securities; provided,  that
where a consent under the Indenture would require the consent of each holder of
Notes (or each Holder of Preferred Securities) affected thereby, no such
consent shall be given by the Property Trustee without the prior written
consent of each Holder of Preferred Securities. The Property Trustee shall not
revoke any action previously authorized or approved by a vote of the Holders of
the Preferred Securities, except by a subsequent vote of the Holders of the
Preferred Securities.  In addition to
obtaining the foregoing approvals of the Holders of the Preferred Securities,
prior to taking any of the foregoing actions, the Property Trustee shall, at
the expense of the Depositor, obtain an Opinion of Counsel experienced in such
matters to the effect that such action shall not cause the Trust to be taxable
as a corporation or classified as other than a grantor trust for United States
federal income tax purposes.

 

(c)           If
any proposed amendment to the Trust Agreement provides for, or the Trustees
otherwise propose to effect, (i) any action that would adversely affect in
any material respect the powers, preferences or special rights of the Preferred
Securities, whether by way of amendment to the Trust Agreement or otherwise or
(ii) the dissolution, winding-up or termination of the Trust, other than
pursuant to the terms of this Trust Agreement, then the Holders of Outstanding
Preferred Securities as a class will be entitled to vote on such amendment or
proposal and such amendment or proposal shall not be effective except with the
approval of the Holders of at least a Majority in Liquidation Amount of the
Preferred Securities. Notwithstanding any other provision of this Trust
Agreement, no amendment to this Trust Agreement may be made if, as a result of
such amendment, it would cause the Trust to be taxable as a corporation or
classified as other than a grantor trust for United States federal income tax
purposes.

 

SECTION 6.10.      Acceleration of
Maturity; Rescission of Annulment; Waivers of Past Defaults.

 

(a)           For
so long as any Preferred Securities remain Outstanding, if, upon a Note Event
of Default, the Note Trustee fails or the holders of not less than twenty five
percent (25%) in principal amount of the outstanding Notes fail to declare the
principal of all of the Notes to be immediately due and payable, the Holders of
at least twenty five percent (25%) in Liquidation Amount of the Preferred
Securities then Outstanding shall have the right to make such declaration by a
notice in writing to the Property Trustee, the Depositor and the Note
Trustee.  At any time after a declaration
of acceleration with respect to the Notes has been made and before a judgment
or decree for payment of the money due has been obtained by the Note Trustee as
provided in the Indenture, the Holders of at least a Majority in Liquidation
Amount of the Preferred Securities, by written notice to the Property Trustee,
the Depositor and the Note Trustee, may rescind and annul such declaration and
its consequences if:

 

37

 

(i)            the
Depositor has paid or deposited with the Note Trustee a sum sufficient to pay:

 

(A)          all
overdue installments of interest on all of the Notes;

 

(B)           any
accrued Additional Interest on all of the Notes;

 

(C)           the
principal of and any premium, if any, on any Notes that have become due
otherwise than by such declaration of acceleration and interest and Additional
Interest thereon at the rate borne by the Notes; and

 

(D)          all
sums paid or advanced by the Note Trustee under the Indenture and the
reasonable compensation, expenses, disbursements and advances of the Note
Trustee, the Property Trustee and their agents and counsel; and

 

(ii)           all
Note Events of Default, other than the non-payment of the principal of the
Notes that has become due solely by such acceleration, have been cured or
waived as provided in Section 5.13 of the Indenture.

 

Upon receipt by the Property Trustee of written notice
requesting such an acceleration, or rescission and annulment thereof, by
Holders of any part of the Preferred Securities, a record date shall be
established for determining Holders of Outstanding Preferred Securities
entitled to join in such notice, which record date shall be at the close of
business on the day the Property Trustee receives such notice. The Holders on
such record date, or their duly designated proxies, and only such Persons,
shall be entitled to join in such notice, whether or not such Holders remain
Holders after such record date; provided, that, unless such declaration of acceleration, or
rescission and annulment, as the case may be, shall have become effective by
virtue of the requisite percentage having joined in such notice prior to the
day that is ninety (90) days after such record date, such notice of declaration
of acceleration, or rescission and annulment, as the case may be, shall
automatically and without further action by any Holder be canceled and of no
further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of
a Holder, from giving, after expiration of such ninety (90)-day period, a new
written notice of declaration of acceleration, or rescission and annulment
thereof, as the case may be, that is identical to a written notice that has
been canceled pursuant to the proviso to the preceding sentence, in which event
a new record date shall be established pursuant to the provisions of this Section 6.10(a).

 

(b)           For
so long as any Preferred Securities remain Outstanding, to the fullest extent
permitted by law and subject to the terms of this Trust Agreement and the
Indenture, upon a Note Event of Default specified in paragraph (a) or (b) of
Section 5.1 of the Indenture, any Holder of Preferred Securities shall
have the right to institute a proceeding directly against the Depositor,
pursuant to Section 5.8 of the Indenture, for enforcement of payment to
such Holder of any amounts payable in respect of Notes having an aggregate
principal amount equal to the aggregate Liquidation Amount of the Preferred
Securities of such Holder.  Except as set
forth in Section 6.10(a) and this Section 6.10(b), the
Holders of Preferred Securities shall have no right to exercise directly any
right or remedy available to the holders of, or in respect of, the Notes.

 

(c)           Notwithstanding
paragraphs (a) and (b) of this Section 6.10, the Holders of at least a
Majority in Liquidation Amount of the Preferred Securities may, on behalf of
the Holders

 

38

 

of all the Preferred
Securities, waive any Note Event of Default, except any Note Event of Default
arising from the failure to pay any principal of or any premium, if any, or
interest on (including any Additional Interest) the Notes (unless such Note
Event of Default has been cured and a sum sufficient to pay all matured
installments of interest and all principal and premium, if any, on all Notes
due otherwise than by acceleration has been deposited with the Note Trustee) or
a Note Event of Default in respect of a covenant or provision that under the
Indenture cannot be modified or amended without the consent of the holder of
each outstanding Note.  Upon any such
waiver, such Note Event of Default shall cease to exist and any Note Event of
Default arising therefrom shall be deemed to have been cured for every purpose
of the Indenture; but no such waiver shall affect any subsequent Note Event of
Default or impair any right consequent thereon.

 

(d)           Notwithstanding
paragraphs (a) and (b) of this Section 6.10, the Holders of at least a
Majority in Liquidation Amount of the Preferred Securities may, on behalf of
the Holders of all the Preferred Securities, waive any past Event of Default
and its consequences.  Upon such waiver,
any such Event of Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Trust Agreement, but no such waiver shall extend to any subsequent or other
Event of Default or impair any right consequent thereon.

 

(e)           The
Holders of a Majority in Liquidation Amount of the Preferred Securities shall
have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Property Trustee in respect of this
Trust Agreement or the Notes or exercising any trust or power conferred upon
the Property Trustee under this Trust Agreement; provided,  that,
subject to Sections 8.5 and 8.7, the Property Trustee shall have
the right to decline to follow any such direction if the Property Trustee being
advised by counsel determines that the action so directed may not lawfully be
taken, or if the Property Trustee in good faith shall, by an officer or
officers of the Property Trustee, determine that the proceedings so directed
would be illegal or involve it in personal liability or be unduly prejudicial
to the rights of Holders not party to such direction, and provided, further,  that
nothing in this Trust Agreement shall impair the right of the Property Trustee
to take any action deemed proper by the Property Trustee and which is not
inconsistent with such direction.

 

ARTICLE VII.

REPRESENTATIONS AND WARRANTIES

 

SECTION 7.1.        Representations and
Warranties of the Property Trustee and the Delaware Trustee.

 

The Property Trustee and the Delaware Trustee, each
severally on behalf of and as to itself, hereby represents and warrants for the
benefit of the Depositor and the Holders that:

 

(a)           the
Property Trustee is a national banking association, duly organized and validly
existing under the laws of the United States of America;

 

39

 

(b)           the
Property Trustee has full corporate power, authority and legal right to
execute, deliver and perform its obligations under this Trust Agreement and has
taken all necessary action to authorize the execution, delivery and performance
by it of this Trust Agreement;

 

(c)           the
Delaware Trustee is a national banking association, duly formed and validly
existing under the laws of the United States;

 

(d)           the
Delaware Trustee has full corporate power, authority and legal right to
execute, deliver and perform its obligations under this Trust Agreement and has
taken all necessary action to authorize the execution, delivery and performance
by it of this Trust Agreement;

 

(e)           this
Trust Agreement has been duly authorized, executed and delivered by the
Property Trustee and the Delaware Trustee and constitutes the legal, valid and
binding agreement of each of the Property Trustee and the Delaware Trustee
enforceable against each of them in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws affecting creditors’ rights generally and to
general principles of equity;

 

(f)            the
execution, delivery and performance of this Trust Agreement have been duly
authorized by all necessary corporate or other action on the part of the
Property Trustee and the Delaware Trustee and do not require any approval of
stockholders of the Property Trustee and the Delaware Trustee and such
execution, delivery and performance will not (i) violate the respective
Articles of Association or By-laws of the Property Trustee or the Delaware
Trustee, (ii) violate any provision of, or constitute, with or without notice
or lapse of time, a default under, or result in the imposition of any lien on
any properties included in the Trust Property pursuant to the provisions of any
indenture, mortgage, credit agreement, license or other agreement or instrument
to which the Property Trustee or the Delaware Trustee is a party or by which it
is bound, or (iii) violate any applicable law, governmental rule or
regulation of the United States or the State of Delaware, as the case may be,
governing the banking, trust or general powers of the Property Trustee or the
Delaware Trustee or any order, judgment or decree applicable to the Property
Trustee or the Delaware Trustee;

 

(g)           neither
the authorization, execution or delivery by the Property Trustee or the
Delaware Trustee of this Trust Agreement nor the consummation of any of the
transactions by the Property Trustee or the Delaware Trustee contemplated
herein requires the consent or approval of, the giving of notice to, the
registration with or the taking of any other action with respect to any
governmental authority or agency under any existing law of the United States or
the State of Delaware governing the banking, trust or general powers of the
Property Trustee or the Delaware Trustee, as the case may be; and

 

(h)           to
the best of each of the Property Trustee’s and the Delaware Trustee’s knowledge,
there are no proceedings pending or threatened against or affecting the
Property Trustee or the Delaware Trustee in any court or before any
governmental

 

40

 

authority, agency or
arbitration board or tribunal that, individually or in the aggregate, would
materially and adversely affect the Trust or would question the right, power
and authority of the Property Trustee or the Delaware Trustee, as the case may
be, to enter into or perform its obligations as one of the Trustees under this
Trust Agreement.

 

SECTION 7.2.        Representations and
Warranties of Depositor.

 

The Depositor hereby represents and warrants for the
benefit of the Holders that:

 

(a)           the
Depositor is a corporation duly organized, validly existing and in good
standing under the laws of its state of incorporation;

 

(b)           the
Depositor has full corporate power, authority and legal right to execute,
deliver and perform its obligations under this Trust Agreement and has taken
all necessary action to authorize the execution, delivery and performance by it
of this Trust Agreement;

 

(c)           this
Trust Agreement has been duly authorized, executed and delivered by the
Depositor and constitutes the legal, valid and binding agreement of the
Depositor enforceable against the Depositor in accordance with its terms,
subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and to general principles of equity;

 

(d)           the
Securities Certificates issued at the Closing Date on behalf of the Trust have
been duly authorized and will have been duly and validly executed, issued and
delivered by the applicable Trustees pursuant to the terms and provisions of,
and in accordance with the requirements of, this Trust Agreement and the Holders
will be, as of such date, entitled to the benefits of this Trust Agreement;

 

(e)           the
execution, delivery and performance of this Trust Agreement have been duly
authorized by all necessary corporate or other action on the part of the
Depositor and do not require any approval of stockholders of the Depositor and
such execution, delivery and performance will not (i) violate the articles
or certificate of incorporation or by-laws (or other organizational documents)
of the Depositor or (ii) violate any applicable law, governmental rule or
regulation governing the Depositor or any material portion of its property or
any order, judgment or decree applicable to the Depositor or any material
portion of its property;

 

(f)            neither
the authorization, execution or delivery by the Depositor of this Trust
Agreement nor the consummation of any of the transactions by the Depositor
contemplated herein requires the consent or approval of, the giving of notice
to, the registration with or the taking of any other action with respect to any
governmental authority or agency under any existing law governing the Depositor
or any material portion of its property; and

 

(g)           there
are no proceedings pending or, to the best of the Depositor’s knowledge,
threatened against or affecting the Depositor or any material portion of its
property in any court or before any governmental authority, agency or
arbitration board

 

41

 

or tribunal that,
individually or in the aggregate, would materially and adversely affect the
Trust or would question the right, power and authority of the Depositor, as the
case may be, to enter into or perform its obligations under this Trust
Agreement.

 

ARTICLE VIII.

THE TRUSTEES

 

SECTION 8.1.        Number of Trustees.

 

The number of Trustees shall be four (4); provided, that
the Property Trustee and the Delaware Trustee may be the same Person, in which
case the number of Trustees shall be three (3). 
The number of Trustees may be increased or decreased by Act of the
Holder of the Common Securities subject to Sections 8.2, 8.3, and
8.4.  The death, resignation,
retirement, removal, bankruptcy, incompetence or incapacity to perform the
duties of a Trustee shall not operate to annul, dissolve or terminate the
Trust.

 

SECTION 8.2.        Property Trustee
Required.

 

There shall at all times be a Property Trustee
hereunder with respect to the Trust Securities. The Property Trustee shall be a
corporation organized and doing business under the laws of the United States or
of any state thereof, authorized to exercise corporate trust powers, having a
combined capital and surplus of at least fifty million dollars ($50,000,000),
subject to supervision or examination by federal or state authority and having
an office within the United States.  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 8.2, 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
Property Trustee shall cease to be eligible in accordance with the provisions
of this Section 8.2, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article VIII.

 

SECTION 8.3.        Delaware Trustee
Required.

 

(a)           If
required by the Delaware Statutory Trust Act, there shall at all times be a
Delaware Trustee with respect to the Trust Securities. The Delaware Trustee
shall either be (i) a natural person who is at least 21 years of age and a
resident of the State of Delaware or (ii) a legal entity that has its
principal place of business in the State of Delaware, otherwise meets the
requirements of applicable Delaware law and shall act through one or more
persons authorized to bind such entity. 
If at any time the Delaware Trustee shall cease to be eligible in
accordance with the provisions of this Section 8.3, it shall resign
immediately in the manner and with the effect hereinafter specified in this Article
VIII.  The Delaware Trustee shall
have the same rights, privileges and immunities as the Property Trustee.

 

(b)           The
Delaware Trustee shall not be entitled to exercise any powers, nor shall the
Delaware Trustee have any of the duties and responsibilities, of the Property
Trustee or the

 

42

 

Administrative Trustees
set forth herein. The Delaware Trustee shall be one of the trustees of the
Trust for the sole and limited purpose of fulfilling the requirements of
Section 3807 of the Delaware Statutory Trust Act and for taking such
actions as are required to be taken by a Delaware trustee under the Delaware
Statutory Trust Act.  The duties
(including fiduciary duties), liabilities and obligations of the Delaware
Trustee shall be limited to (a) accepting legal process served on the Trust in
the State of Delaware and (b) the execution of any certificates required to be
filed with the Secretary of State of the State of Delaware that the Delaware
Trustee is required to execute under Section 3811 of the Delaware Statutory
Trust Act and there shall be no other duties (including fiduciary duties) or
obligations, express or implied, at law or in equity, of the Delaware Trustee.

 

SECTION 8.4.        Appointment of
Administrative Trustees.

 

(a)           There
shall at all times be one or more Administrative Trustees hereunder with
respect to the Trust Securities. Each Administrative Trustee shall be either a
natural person who is at least 21 years of age or a legal entity that shall act
through one or more persons authorized to bind that entity.  Each of the individuals identified as an “Administrative Trustee” in the
preamble of this Trust Agreement hereby accepts his or her appointment as such.

 

(b)           Except
where a requirement for action by a specific number of Administrative Trustees
is expressly set forth in this Trust Agreement, any act required or permitted
to be taken by, and any power of the Administrative Trustees may be exercised
by, or with the consent of, any one such Administrative Trustee.  Whenever a vacancy in the number of
Administrative Trustees shall occur, until such vacancy is filled by the
appointment of an Administrative Trustee in accordance with Section 8.11,
the Administrative Trustees in office, regardless of their number (and
notwithstanding any other provision of this Trust Agreement), shall have all
the powers granted to the Administrative Trustees and shall discharge all the
duties imposed upon the Administrative Trustees by this Trust Agreement.

 

SECTION 8.5.        Duties and
Responsibilities of the Trustees.

 

(a)           The
rights, immunities, duties and responsibilities of the Trustees shall be as
provided by this Trust Agreement and there shall be no other duties (including
fiduciary duties) or obligations, express or implied, at law or in equity, of
the Trustees; provided, however,
that if an Event of Default known to the Property Trustee has occurred and is
continuing, the Property Trustee shall, prior to the receipt of directions, if
any, from the Holders of at least a Majority in Liquidation Amount of the
Preferred Securities, exercise such of the rights and powers vested in it by
this Trust Agreement, and use the same degree of care and skill in its
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person’s own affairs. 
Notwithstanding the foregoing, no provision of this Trust Agreement
shall require any of the Trustees 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 or their rights or powers, if it or
they 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 herein expressly so provided, every provision of this
Trust Agreement relating to the conduct or affecting the liability of or
affording protection to the Trustees shall be subject to the provisions of this
Section 8.5.  Nothing in this
Trust Agreement shall be construed to release any

 

43

 

Administrative Trustee
from liability for his or her own negligent action, negligent failure to act;
or his or her own willful misconduct.  To
the extent that, at law or in equity, a Trustee has duties and liabilities
relating to the Trust or to the Holders, such Trustee shall not be liable to
the Trust or to any Holder for such Trustee’s good faith reliance on the provisions
of this Trust Agreement. The provisions of this Trust Agreement, to the extent
that they restrict the duties and liabilities of the Trustees otherwise
existing at law or in equity, are agreed by the Depositor and the Holders to
replace such other duties and liabilities of the Trustees.

 

(b)           All
payments made by the Property Trustee or a Paying Agent in respect of the Trust
Securities shall be made only from the revenue and proceeds from the Trust
Property and only to the extent that there shall be sufficient revenue or
proceeds from the Trust Property to enable the Property Trustee or a Paying
Agent to make payments in accordance with the terms hereof. Each Holder, by its
acceptance of a Trust Security, agrees that it will look solely to the revenue
and proceeds from the Trust Property to the extent legally available for
distribution to it as herein provided and that the Trustees are not personally
liable to it for any amount distributable in respect of any Trust Security or
for any other liability in respect of any Trust Security. This Section 8.5(b)
does not limit the liability of the Trustees expressly set forth elsewhere in
this Trust Agreement.

 

(c)           No
provisions of this Trust Agreement shall be construed to relieve the Property
Trustee from liability with respect to matters that are within the authority of
the Property Trustee under this Trust Agreement for its own negligent action,
negligent failure to act or willful misconduct, except that:

 

(i)            the
Property Trustee shall not be liable for any error or judgment made in good
faith by an authorized officer of the Property Trustee, unless it shall be
proved that the Property Trustee was negligent in ascertaining the pertinent
facts;

 

(ii)           the
Property Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders of at least a Majority in Liquidation Amount of the Preferred
Securities relating to the time, method and place of conducting any proceeding
for any remedy available to the Property Trustee hereunder or under the
Indenture, or exercising any trust or power conferred upon the Property Trustee
under this Trust Agreement;

 

(iii)          the
Property Trustee’s sole duty with respect to the custody, safe keeping and physical
preservation of the Notes and the Payment Account shall be to deal with such
Property in a similar manner as the Property Trustee deals with similar
property for its own account, subject to the protections and limitations on
liability afforded to the Property Trustee under this Trust Agreement;

 

(iv)          the
Property Trustee shall not be liable for any interest on any money received by
it except as it may otherwise agree in writing with the Depositor; and money
held by the Property Trustee need not be segregated from other funds held by it
except in relation to the Payment Account maintained by the Property Trustee
pursuant to Section 3.1 and except to the extent otherwise required
by law; and

 

44

 

(v)           the
Property Trustee shall not be responsible for monitoring the compliance by the
Administrative Trustees or the Depositor with their respective duties under
this Trust Agreement, nor shall the Property Trustee be liable for the default
or misconduct of any other Trustee or the Depositor.

 

SECTION 8.6.        Notices of Defaults
and Extensions.

 

(a)           Within
ninety (90) days after the occurrence of a default actually known to the
Property Trustee, the Property Trustee shall transmit notice of such default to
the Holders, the Administrative Trustees and the Depositor, unless such default
shall have been cured or waived.  For the
purpose of this Section 8.6, the term “default” means any event that is, or after notice or lapse
of time or both would become, an Event of Default.

 

(b)           Within
five (5) Business Days after the receipt of notice of the Depositor’s exercise
of its right to defer the payment of interest on the Notes pursuant to the
Indenture, the Property Trustee shall transmit, in the manner and to the extent
provided in Section 10.8, notice of such exercise to the Holders and the
Administrative Trustees, unless such exercise shall have been revoked.

 

(c)           The
Property Trustee shall not be charged with knowledge of any Event of Default
unless either (i) a Responsible Officer of the Property Trustee shall have
actual knowledge or (ii) the Property Trustee shall have received written
notice thereof from the Depositor, an Administrative Trustee or a Holder.

 

(d)           The
Property Trustee shall notify all Holders of the Preferred Securities of any
notice of default received with respect to the Notes.

 

SECTION 8.7.        Certain Rights of
Property Trustee.

 

Subject to the provisions of Section 8.5:

 

(a)           the
Property Trustee may conclusively rely and shall be protected in acting or refraining
from acting in good faith and in accordance with the terms hereof upon any
resolution, Opinion of Counsel, certificate, written representation of a Holder
or transferee, certificate of auditors or any other resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, appraisal, 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;

 

(b)           if
(i) in performing its duties under this Trust Agreement the Property
Trustee is required to decide between alternative courses of action,
(ii) in construing any of the provisions of this Trust Agreement the
Property Trustee finds a provision ambiguous or inconsistent with any other
provisions contained herein or (iii) the Property Trustee is unsure of the
application of any provision of this Trust Agreement, then, except as to any
matter as to which the Holders of the Preferred Securities are entitled to vote
under the terms of this Trust Agreement, the Property Trustee shall deliver a
notice to the Depositor requesting the Depositor’s written instruction as to
the course of action to be taken and the Property Trustee shall take such
action, or refrain from taking such

 

45

 

action, as the Property
Trustee shall be instructed in writing to take, or to refrain from taking, by
the Depositor; provided,
that if the Property Trustee does not receive such instructions of the
Depositor within ten (10) Business Days after it has delivered such notice or
such reasonably shorter period of time set forth in such notice, the Property
Trustee may, but shall be under no duty to, take such action, or refrain from
taking such action, as the Property Trustee shall deem advisable and in the
best interests of the Holders, in which event the Property Trustee shall have
no liability except for its own negligence, bad faith or willful misconduct;

 

(c)           any
direction or act of the Depositor contemplated by this Trust Agreement shall be
sufficiently evidenced by an Officers’ Certificate unless otherwise expressly
provided herein;

 

(d)           any
direction or act of an Administrative Trustee contemplated by this Trust
Agreement shall be sufficiently evidenced by a certificate executed by such
Administrative Trustee and setting forth such direction or act;

 

(e)           the
Property Trustee shall have no duty to see to any recording, filing or
registration of any instrument (including any financing or continuation
statement or any filing under tax or securities laws) or any re-recording,
re-filing or re-registration thereof;

 

(f)            the
Property Trustee may consult with counsel (which counsel may be counsel to the
Property Trustee, the Depositor or any of its Affiliates, and may include any
of its employees) and the advice of such 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 and in accordance
with such advice; the Property Trustee shall have the right at any time to seek
instructions concerning the administration of this Trust Agreement from any
court of competent jurisdiction;

 

(g)           the
Property Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Trust Agreement at the request or direction of any
of the Holders pursuant to this Trust Agreement, unless such Holders shall have
offered to the Property Trustee reasonable security or indemnity against the
costs, expenses (including reasonable attorneys’ fees and expenses) and
liabilities that might be incurred by it in compliance with such request or
direction, including reasonable advances as may be requested by the Property
Trustee; provided, however, that
nothing contained in this Section 8.7(g) shall be construed to relieve
the Property Trustee, upon the occurrence of an Event of Default, of its
obligation to exercise the rights and powers in it vested by this Trust
Agreement; provided, further, that nothing contained in this Section 8.7(g)
shall prevent the Property Trustee from exercising its rights under Section
8.11 hereof;

 

(h)           the
Property 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, approval, bond, debenture,
note or other evidence of indebtedness or other paper or document, unless
requested in writing to do so by one or more Holders, but the Property Trustee
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Property Trustee shall

 

46

 

determine to make such
inquiry or investigation, it shall be entitled to examine the books, records
and premises of the Depositor, personally or by agent or attorney;

 

(i)            the
Property Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through its agents, attorneys,
custodians or nominees and the Property Trustee shall not be responsible for
any negligence or misconduct on the part of any such agent, attorney, custodian
or nominee appointed with due care by it hereunder;

 

(j)            whenever
in the administration of this Trust Agreement the Property Trustee shall deem
it desirable to receive instructions with respect to enforcing any remedy or
right hereunder, the Property Trustee (i) may request instructions from
the Holders (which instructions may only be given by the Holders of the same
proportion in Liquidation Amount of the Trust Securities as would be entitled
to direct the Property Trustee under this Trust Agreement in respect of such
remedy, right or action), (ii) may refrain from enforcing such remedy or
right or taking such other action until such instructions are received and
(iii) shall be protected in acting in accordance with such instructions;

 

(k)           except
as otherwise expressly provided by this Trust Agreement, the Property Trustee
shall not be under any obligation to take any action that is discretionary
under the provisions of this Trust Agreement;

 

(l)            without
prejudice to any other rights available to the Property Trustee under
applicable law, when the Property Trustee incurs expenses or renders services
in connection with a Bankruptcy Event, such expenses (including legal fees and
expenses of its agents and counsel) and the compensation for such services are
intended to constitute expenses of administration under any bankruptcy law or
law relating to creditors rights generally; and

 

(m)          whenever
in the administration of this Trust Agreement the Property Trustee shall deem
it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Property Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its
part, request and rely on an Officers’ Certificate which, upon receipt of such
request, shall be promptly delivered by the Depositor.

 

No provision of this Trust Agreement shall be deemed
to impose any duty or obligation on any Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it, in
any jurisdiction in which it shall be illegal, or in which such Person shall be
unqualified or incompetent in accordance with applicable law, to perform any
such act or acts, or to exercise any such right, power, duty or obligation.

 

SECTION 8.8.        Delegation of Power.

 

Any Trustee may, by power of attorney consistent with
applicable law, delegate to any other natural person over the age of 21 its,
his or her power for the purpose of executing any documents contemplated in Section 2.5.  The Trustees shall have power to delegate
from time to

 

47

 

time to such of their
number or to the Depositor the doing of such things and the execution of such
instruments either in the name of the Trust or the names of the Trustees or
otherwise as the Trustees may deem expedient, to the extent such delegation is
not prohibited by applicable law or contrary to the provisions of this Trust
Agreement.

 

SECTION 8.9.        May Hold Securities.

 

Any Trustee or any other agent of any Trustee or the
Trust, in its individual or any other capacity, may become the owner or pledgee
of Trust Securities and except as provided in the definition of the term “Outstanding” in Article I,
may otherwise deal with the Trust with the same rights it would have if it were
not a Trustee or such other agent.

 

SECTION
8.10.      Compensation; Reimbursement; Indemnity.

 

The Depositor agrees:

 

(a)           to
pay to the Trustees from time to time such reasonable compensation for all
services rendered by them hereunder as may be agreed by the Depositor and the
Trustees from time to time (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust);

 

(b)           to
reimburse the Trustees upon request for all reasonable expenses, disbursements
and advances incurred or made by the Trustees in accordance with any provision
of this Trust Agreement (including the reasonable compensation and the expenses
and disbursements of their agents and counsel), except any such expense,
disbursement or advance as may be attributable to their gross negligence, bad
faith or willful misconduct; and

 

(c)           to
the fullest extent permitted by applicable law, to indemnify and hold harmless
(i) each Trustee, (ii) any Affiliate of any Trustee, (iii) any
officer, director, shareholder, employee, representative or agent of any
Trustee or any Affiliate of any Trustee and (iv) any employee or agent of
the Trust (referred to herein as an “Indemnified
Person”) from and against any loss, damage, liability, tax (other
than income, franchise or other taxes imposed on amounts paid pursuant to Section
8.10(a) or (b) hereof), penalty, expense or claim of any kind or
nature whatsoever incurred without negligence, bad faith or willful misconduct
on its part, arising out of or in connection with the acceptance or administration
of the Trust hereunder, including the advancement of funds to cover the costs
and expenses of defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder.

 

The Trust shall have no payment, reimbursement or
indemnity obligations to the Trustees under this Section 8.10.  The provisions of this Section 8.10
shall survive the termination of this Trust Agreement and the earlier removal
or resignation of any Trustee.

 

No Trustee may claim any Lien on any Trust Property
whether before or after termination of the Trust as a result of any amount due
pursuant to this Section 8.10.

 

48

 

To the fullest extent permitted by law, in no event shall
the Property Trustee and the Delaware Trustee be liable for any indirect,
special, punitive or consequential loss or damage of any kind whatsoever,
including, but not limited to, lost profits, even if the Trustee has been
advised of the likelihood of such loss or damage and regardless of the form of
action.

 

In no event shall the Property Trustee and the
Delaware Trustee be liable for any failure or delay in the performance of its
obligations hereunder because of circumstances beyond its control, including,
but not limited to, acts of God, flood, war (whether declared or undeclared),
terrorism, fire, riot, embargo, government action, including any laws,
ordinances, regulations, governmental action or the like which delay, restrict
or prohibit the providing of the services contemplated by this Trust Agreement.

 

SECTION 8.11.      Resignation and
Removal; Appointment of Successor.

 

(a)           No
resignation or removal of any Trustee and no appointment of a successor Trustee
pursuant to this Article VIII shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 8.12.

 

(b)           A
Trustee may resign at any time by giving written notice thereof to the
Depositor and, in the case of the Property Trustee and the Delaware Trustee, to
the Holders.

 

(c)           Unless
an Event of Default shall have occurred and be continuing, the Property Trustee
or the Delaware Trustee, or both of them, may be removed (with or without
cause) at any time by Act of the Holder of Common Securities.  If an Event of Default shall have occurred
and be continuing, the Property Trustee or the Delaware Trustee, or both of
them, may be removed (with or without cause) at such time by Act of the Holders
of at least a Majority in Liquidation Amount of the Preferred Securities,
delivered to the removed Trustee (in its individual capacity and on behalf of
the Trust).  An Administrative Trustee
may be removed (with or without cause) only by Act of the Holder of the Common
Securities at any time.

 

(d)           If any
Trustee shall resign, be removed or become incapable of acting as Trustee, or
if a vacancy shall occur in the office of any Trustee for any reason, at a time
when no Event of Default shall have occurred and be continuing, the Holder of
the Common Securities, by Act of the Holder of the Common Securities, shall
promptly appoint a successor Trustee or Trustees, and such successor Trustee
and the retiring Trustee shall comply with the applicable requirements of Section
8.12.  If the Property Trustee or the
Delaware Trustee shall resign, be removed or become incapable of continuing to
act as the Property Trustee or the Delaware Trustee, as the case may be, at a
time when an Event of Default shall have occurred and be continuing, the
Holders of the Preferred Securities, by Act of the Holders of a Majority in
Liquidation Amount of the Preferred Securities, shall promptly appoint a
successor Property Trustee or Delaware Trustee, and such successor Property
Trustee or Delaware Trustee and the retiring Property Trustee or Delaware
Trustee shall comply with the applicable requirements of Section 8.12.  If an Administrative Trustee shall resign, be
removed or become incapable of acting as Administrative Trustee, at a time when
an Event of Default shall have occurred and be continuing, the Holder of the
Common Securities by Act of the Holder of Common Securities shall promptly
appoint a successor Administrative Trustee and such successor Administrative
Trustee and the retiring Administrative Trustee shall comply with the
applicable requirements of

 

49

 

Section 8.12.  If no successor Trustee shall have been so
appointed by the Holder of the Common Securities or Holders of the Preferred
Securities, as the case may be, and accepted appointment in the manner required
by Section 8.12 within thirty (30) days after the giving of a notice of
resignation by a Trustee, the removal of a Trustee, or a Trustee becoming
incapable of acting as such Trustee, any Holder who has been a Holder of
Preferred Securities for at least six (6) months may, on behalf of himself and
all others similarly situated, and any resigning Trustee may, in each case, at
the expense of the Depositor, petition any court of competent jurisdiction for
the appointment of a successor Trustee.

 

(e)           The
Depositor shall give notice of each resignation and each removal of the
Property Trustee or the Delaware Trustee and each appointment of a successor
Property Trustee or Delaware Trustee to all Holders in the manner provided in Section
10.8.  Each notice shall include the
name of the successor Property Trustee or Delaware Trustee and the address of
its Corporate Trust Office if it is the Property Trustee.

 

(f)            Notwithstanding
the foregoing or any other provision of this Trust Agreement, in the event any
Administrative Trustee or a Delaware Trustee who is a natural person dies or
becomes, in the opinion of the Holder of Common Securities, incompetent or
incapacitated, the vacancy created by such death, incompetence or incapacity
may be filled by (i) the act of the remaining Administrative Trustee or
Trustees, or (ii) otherwise by the Holder of the Common Securities (with the
successor in each case being a Person who satisfies the eligibility requirement
for Administrative Trustees or Delaware Trustee, as the case may be, set forth
in Sections 8.3 and 8.4).

 

(g)           Upon
the appointment of a successor Delaware Trustee, such successor Delaware
Trustee shall file a Certificate of Amendment to the Certificate of Trust in
accordance with Section 3810 of the Delaware Statutory Trust Act.

 

SECTION 8.12.      Acceptance of
Appointment by Successor.

 

(a)           In
case of the appointment hereunder of a successor Trustee, each successor
Trustee shall execute and deliver to the Depositor and to the retiring Trustee
an instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Trustee shall become effective 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; but, on
request of the Trust or any successor Trustee such retiring Trustee shall, upon
payment of its charges, duly assign, transfer and deliver to such successor
Trustee all Trust Property, all proceeds thereof and money held by such
retiring Trustee hereunder with respect to the Trust Securities and the Trust.

 

(b)           Upon
request of any such successor Trustee, the Trust (or the retiring Trustee if
requested by the Depositor) 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 preceding paragraph.

 

(c)           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
VIII.

 

50

 

SECTION 8.13.      Merger, Conversion,
Consolidation or Succession to Business.

 

Any Person into which the Property Trustee or the
Delaware Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Trustee shall be a party, or any Person succeeding
to all or substantially all the corporate trust business of such Trustee, shall
be the successor of such Trustee hereunder, without the execution or filing of
any paper or any further act on the part of any of the parties hereto, provided,
that such Person shall be otherwise qualified and eligible under this Article
VIII.

 

SECTION 8.14.      Not Responsible for
Recitals, Issuance of Securities, or Representations.

 

The recitals contained herein and in the Securities
Certificates shall be taken as the statements of the Trust and the Depositor,
and the Trustees do not assume any responsibility for their correctness.  The Trustees make no representations as to
the title to, or value or condition of, the property of the Trust or any part
thereof, nor as to the validity or sufficiency of this Trust Agreement, the
Notes or the Trust Securities.  The
Trustees shall not be accountable for the use or application by the Depositor
of the proceeds of the Notes.  It is expressly
understood and agreed by the parties hereto that insofar as any document,
agreement or certificate is executed on behalf of the Trust by any Trustee (i)
such document, agreement or certificate is executed and delivered by such
Trustee, not in its individual capacity but solely as Trustee under this Trust
Agreement in the exercise of the powers and authority conferred and vested in
it, (ii) each of the representations, undertakings and agreements made on the
part of the Trust is made and intended not as representations, warranties,
covenants, undertakings and agreements by any Trustee in its individual
capacity but is made and intended for the purpose of binding only the Trust and
(iii) under no circumstances shall any Trustee in its individual capacity be
personally liable for the payment of any indebtedness or expenses of the Trust
or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Trust under this Trust Agreement
or any other document, agreement or certificate.

 

SECTION 8.15.      Property Trustee May
File Proofs of Claim.

 

(a)           In
case of any Bankruptcy Event (or event that with the passage of time would
become a Bankruptcy Event) relative to the Trust or any other obligor upon the
Trust Securities or the property of the Trust or of such other obligor or their
creditors, the Property Trustee (irrespective of whether any Distributions on
the Trust Securities shall then be due and payable and irrespective of whether
the Property Trustee shall have made any demand on the Trust for the payment of
any past due Distributions) shall be entitled and empowered, to the fullest
extent permitted by law, by intervention in such proceeding or otherwise:

 

(i)            to
file and prove a claim for the whole amount of any Distributions owing and
unpaid in respect of the Trust Securities and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Property Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Property Trustee, its agents and
counsel) and of the Holders allowed in such judicial proceeding; and

 

51

 

(ii)           to
collect and receive any monies 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 proceeding is
hereby authorized by each Holder to make such payments to the Property Trustee
and, in the event the Property Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Property Trustee first any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Property Trustee, its agents and counsel, and any other amounts
due the Property Trustee.

 

(b)           Nothing
herein contained shall be deemed to authorize the Property Trustee to authorize
or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or compensation affecting the Trust Securities
or the rights of any Holder thereof or to authorize the Property Trustee to
vote in respect of the claim of any Holder in any such proceeding.

 

SECTION 8.16.      Reports to the Property
Trustee.

 

(a)           The
Depositor and the Administrative Trustees shall deliver to the Property
Trustee, not later than forty five (45) days after the end of each of the first
three fiscal quarters of the Depositor and not later than ninety (90) days
after the end of each fiscal year of the Trust ending after the date of this
Trust Agreement, an Officers’ Certificate covering the preceding fiscal year,
stating whether or not to the knowledge of the signers thereof the Depositor
and the Trust are in default in the performance or observance of any of the
terms, provisions and conditions of this Trust Agreement (without regard to any
period of grace or requirement of notice provided hereunder) and, if the
Depositor or the Trust shall be in default, specifying all such defaults and
the nature and status thereof of which they have knowledge.

 

(b)           The
Depositor shall furnish to each of (i) the Trustee, (ii) the Holders and to
subsequent holders of Securities, (iii) Taberna
Capital Management, LLC (at 450 Park Avenue, 23rd Floor, New York, New York
10022 or such other address as designated by Taberna Capital Management, LLC) and (iv) any beneficial owner of
the Securities reasonably identified to the Depositor (which identification may
be made either by such beneficial owner or by Taberna
Capital Management, LLC), (1) the unaudited consolidated balance sheet
and income statement of the Depositor and its consolidated subsidiaries for
each completed fiscal quarter in which the Securities remain outstanding, and
(2) the audited consolidated financial statements of the Depositor and its
consolidated subsidiaries, including the notes thereto and a report of the Depositor’s
independent accountants thereon, for each completed fiscal year in which the
Securities remain outstanding, which financial statements shall be so furnished
by the Depositor not later than forty-five (45) days after the end of each of
the first three fiscal quarters of each fiscal year of the Depositor, in the
case of the quarterly financial information, and not later than ninety (90)
days after the end of each fiscal year of the Depositor in the case of the
annual financial statements.

 

The Property Trustee shall obtain all reports,
certificate and information, which it is entitled to obtain under each of the
Operative Documents.

 

52

 

ARTICLE IX.

TERMINATION, LIQUIDATION AND MERGER

 

SECTION 9.1.        Dissolution Upon
Expiration Date.

 

Unless earlier dissolved, the Trust shall
automatically dissolve on September 14, 2040
(the “Expiration Date”), and the Trust
Property shall be liquidated in accordance with Section 9.4.

 

SECTION 9.2.        Early Termination.

 

The first to occur of any of the following events is
an “Early Termination Event”, upon
the occurrence of which the Trust shall be dissolved:

 

(a)           the
occurrence of a Bankruptcy Event in respect of, or the dissolution or
liquidation of, the Depositor, in its capacity as the Holder of the Common
Securities, unless the Depositor shall have transferred the Common Securities
as provided by Section 5.11, in which case this provision shall refer
instead to any such successor Holder of the Common Securities;

 

(b)           the
written direction to the Property Trustee from the Holder of the Common
Securities at any time to dissolve the Trust and, after satisfaction of any
liabilities of the Trust as required by applicable law, to distribute the Notes
to Holders in exchange for the Preferred Securities (which direction is
optional and wholly within the discretion of the Holder of the Common
Securities);

 

(c)           the
redemption of all of the Preferred Securities in connection with the payment at
maturity or redemption of all the Notes; and

 

(d)           the
entry of an order for dissolution of the Trust by a court of competent
jurisdiction.

 

SECTION 9.3.        Termination.

 

The respective obligations and responsibilities of the
Trustees and the Trust shall terminate upon the latest to occur of the
following: (a) the distribution by the Property Trustee to Holders of all
amounts required to be distributed hereunder upon the liquidation of the Trust
pursuant to Section 9.4, or upon the redemption of all of the Trust
Securities pursuant to Section 4.2; (b) the satisfaction of
any expenses owed by the Trust; and (c) the discharge of all
administrative duties of the Administrative Trustees, including the performance
of any tax reporting obligations with respect to the Trust or the Holders.

 

SECTION 9.4.        Liquidation.

 

(a)           If
an Early Termination Event specified in Section 9.2(a), (b) or (d)
occurs or upon the Expiration Date, the Trust shall be liquidated by the
Property Trustee as expeditiously as the Property Trustee shall determine to be
possible by distributing, after satisfaction of

 

53

 

liabilities to creditors
of the Trust as provided by applicable law, to each Holder a Like Amount of
Notes, subject to Section 9.4(d). Notice of liquidation shall be
given by the Property Trustee not less than thirty (30) nor more than sixty
(60) days prior to the Liquidation Date to each Holder of Trust Securities at
such Holder’s address appearing in the Securities Register. All such notices of
liquidation shall:

 

(i)            state
the Liquidation Date;

 

(ii)           state
that from and after the Liquidation Date, the Trust Securities will no longer
be deemed to be Outstanding and (subject to Section 9.4(d)) any Securities
Certificates not surrendered for exchange will be deemed to represent a Like
Amount of Notes; and

 

(iii)          provide
such information with respect to the mechanics by which Holders may exchange
Securities Certificates for Notes, or if Section 9.4(d) applies,
receive a Liquidation Distribution, as the Property Trustee shall deem
appropriate.

 

(b)           Except
where Section 9.2(c) or 9.4(d) applies, in order to effect the
liquidation of the Trust and distribution of the Notes to Holders, the Property
Trustee, either itself acting as exchange agent or through the appointment of a
separate exchange agent, shall establish a record date for such distribution
(which shall not be more than forty five (45) days prior to the Liquidation
Date nor prior to the date on which notice of such liquidation is given to the
Holders) and establish such procedures as it shall deem appropriate to effect
the distribution of Notes in exchange for the Outstanding Securities
Certificates.

 

(c)           Except
where Section 9.2(c) or 9.4(d) applies, after the Liquidation
Date, (i) the Trust Securities will no longer be deemed to be Outstanding,
(ii) certificates representing a Like Amount of Notes will be issued to
Holders of Securities Certificates, upon surrender of such Certificates to the
exchange agent for exchange, (iii) the Depositor shall use its best efforts to
have the Notes listed on the New York Stock Exchange or on such other exchange,
interdealer quotation system or self-regulatory organization on which the
Preferred Securities are then listed, if any, (iv) Securities Certificates not
so surrendered for exchange will be deemed to represent a Like Amount of Notes
bearing accrued and unpaid interest in an amount equal to the accumulated and
unpaid Distributions on such Securities Certificates until such certificates
are so surrendered (and until such certificates are so surrendered, no payments
of interest or principal will be made to Holders of Securities Certificates
with respect to such Notes) and (v) all rights of Holders holding Trust Securities
will cease, except the right of such Holders to receive Notes upon surrender of
Securities Certificates.

 

(d)           Notwithstanding
the other provisions of this Section 9.4, if distribution of the
Notes in the manner provided herein is determined by the Property Trustee not
to be permitted or practical, the Trust Property shall be liquidated, and the
Trust shall be wound up by the Property Trustee in such manner as the Property
Trustee determines.  In such event,
Holders will be entitled to receive out of the assets of the Trust available
for distribution to Holders, after satisfaction of liabilities to creditors of
the Trust as provided by applicable law, an amount equal to the Liquidation
Amount per Trust Security plus accumulated and unpaid Distributions thereon to
the date of payment (such amount being the “Liquidation
Distribution”). If, upon any such

 

54

 

winding up the
Liquidation Distribution can be paid only in part because the Trust has
insufficient assets available to pay in full the aggregate Liquidation
Distribution, then, subject to the next succeeding sentence, the amounts
payable by the Trust on the Trust Securities shall be paid on a pro rata
basis (based upon Liquidation Amounts). The Holder of the Common Securities
will be entitled to receive Liquidation Distributions upon any such winding up pro rata
(based upon Liquidation Amounts) with Holders of all Trust Securities, except
that, if an Event of Default has occurred and is continuing, the Preferred
Securities shall have a priority over the Common Securities as provided in Section
4.3.

 

SECTION 9.5.        Mergers,
Consolidations, Amalgamations or Replacements of Trust.

 

The Trust may not merge with or into, consolidate,
amalgamate, or be replaced by, or convey, transfer or lease its properties and
assets substantially as an entirety to, any Person except pursuant to this Article
IX. At the request of the Holders of the Common Securities, without the
consent of the Holders of the Preferred Securities, the Trust may merge with or
into, consolidate, amalgamate, or be replaced by or convey, transfer or lease
its properties and assets substantially as an entirety to a trust organized as
such under the laws of any State; provided,  that:

 

(a)            such
successor entity either (i) expressly assumes all of the obligations of
the Trust under this Trust Agreement with respect to the Preferred Securities
or (ii) substitutes for the Preferred Securities other securities having
substantially the same terms as the Preferred Securities (such other
Securities, the “Successor Securities”)
so long as the Successor Securities have the same priority as the Preferred
Securities with respect to distributions and payments upon liquidation,
redemption and otherwise;

 

(b)            a
trustee of such successor entity possessing substantially the same powers and
duties as the Property Trustee is appointed to hold the Notes;

 

(c)           if
immediately prior to the consummation of the transaction, the Preferred
Securities are listed on a national securities exchange or interdealer
quotation system, the Preferred Securities will continue to be so listed, or
any Successor Securities will be listed upon notice of issuance, following
completion of such transaction;

 

(d)           such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not adversely affect the rights, preferences and privileges of the Holders
of the Preferred Securities (including any Successor Securities) in any
material respect;

 

(e)           such
successor entity has a purpose substantially identical to that of the Trust;

 

(f)            prior
to such merger, consolidation, amalgamation, replacement, conveyance, transfer
or lease, the Depositor has received an Opinion of Counsel to the effect that
(i) such merger, consolidation, amalgamation, replacement, conveyance,
transfer or lease does not adversely affect the rights, preferences and
privileges of the Holders of the Preferred Securities (including any Successor
Securities) in any material respect; (ii) following such merger, consolidation,
amalgamation, replacement,

 

55

 

conveyance, transfer or
lease, neither the Trust nor such successor entity will be required to register
as an “investment company” under the Investment Company Act and (iii) following
such merger, consolidation, amalgamation, replacement, conveyance, transfer or
lease, the Trust (or the successor entity) will continue to be classified as a
grantor trust for U.S. federal income tax purposes; and

 

(g)           the
Depositor or its permitted transferee owns all of the common securities of such
successor entity.

 

Notwithstanding the foregoing, the Trust shall not,
except with the consent of Holders of all of the Preferred Securities,
consolidate, amalgamate, merge with or into, or be replaced by or convey,
transfer or lease its properties and assets substantially as an entirety to any
other Person or permit any other entity to consolidate, amalgamate, merge with
or into, or replace, the Trust if such consolidation, amalgamation, merger,
replacement, conveyance, transfer or lease would cause the Trust or the
successor entity to be taxable as a corporation or classified as other than a
grantor trust for United States federal income tax purposes or cause the Notes
to be treated as other than indebtedness of the Depositor for United States
federal income tax purposes.

 

ARTICLE X.

MISCELLANEOUS PROVISIONS

 

SECTION 10.1.      Limitation of Rights
of Holders.

 

Except as set forth in Section 9.2, the death,
bankruptcy, termination, dissolution or incapacity of any Person having an
interest, beneficial or otherwise, in Trust Securities shall not operate to
terminate this Trust Agreement, nor annul, dissolve or terminate the Trust nor
entitle the legal representatives or heirs of such Person or any Holder for
such Person, to claim an accounting, take any action or bring any proceeding in
any court for a partition or winding up of the arrangements contemplated
hereby, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

 

SECTION 10.2.      Agreed Tax Treatment
of Trust and Trust Securities.

 

The parties hereto and, by its acceptance or
acquisition of a Trust Security or a beneficial interest therein, the Holder
of, and any Person that acquires a beneficial interest in, such Trust Security
intend and agree to treat the Trust as a grantor trust for United States
federal, state and local tax purposes, and to treat the Trust Securities
(including all payments and proceeds with respect to such Trust Securities) as
undivided beneficial ownership interests in the Trust Property (and payments
and proceeds therefrom, respectively) for United States federal, state and
local tax purposes and to treat the Notes as indebtedness of the Depositor for
United States federal, state and local tax purposes.  The provisions of this Trust Agreement shall
be interpreted to further this intention and agreement of the parties set forth
in this Section 10.2.

 

56

 

SECTION 10.3.                 Amendment.

 

(a)                                  This
Trust Agreement may be amended from time to time by the Property Trustee, the
Administrative Trustees and the Holder of all the Common Securities, without
the consent of any Holder of the Preferred Securities, (i) to cure any
ambiguity, correct or supplement any provision herein that may be defective or
inconsistent with any other provision herein, or to make or amend any other
provisions with respect to matters or questions arising under this Trust
Agreement, which shall not be inconsistent with the other provisions of this
Trust Agreement, (ii) to modify, eliminate or add to any provisions of
this Trust Agreement to such extent as shall be necessary to ensure that the
Trust will neither be taxable as a corporation nor be classified as other than
a grantor trust for United States federal income tax purposes at all times that
any Trust Securities are Outstanding or to ensure that the Notes are treated as
indebtedness of the Depositor for United States federal income tax purposes, or
to ensure that the Trust will not be required to register as an “investment
company” under the Investment Company Act or (iii) to add to the covenants,
restrictions or obligations of the Depositor; provided, that in the case of
clauses (i), (ii) or (iii), such action shall not adversely affect in any
material respect the interests of any Holder.

 

(b)                                 Except
as provided in Section 10.3(c), any provision of this Trust Agreement may be
amended by the Property Trustee, the Administrative Trustees and the Holder of
all of the Common Securities and with (i) the consent of Holders of at least a
Majority in Liquidation Amount of the Preferred Securities and (ii) receipt by
the Trustees of an Opinion of Counsel to the effect that such amendment or the
exercise of any power granted to the Trustees in accordance with such amendment
will not cause the Trust to be taxable as a corporation or classified as other
than a grantor trust for United States federal income tax purposes or affect
the treatment of the Notes as indebtedness of the Depositor for United States
federal income tax purposes or affect the Trust’s exemption from status (or
from any requirement to register) as an “investment company” under the
Investment Company Act.  In addition to
and subject to the foregoing, the Distribution Dates, Redemption Date and
Stated Maturity (as defined in the Indenture) with respect to the Preferred
Securities or a portion of the Preferred Securities shall be conformed in
connection with any modification of the Interest Payment Date, Redemption Date
or Stated Maturity of the Junior Subordinated Notes made by the Depositor and
the Trust at the direction of any Holder of the Preferred Securities or a
portion of the Preferred Securities as set forth in Section 6 of the respective
Purchase Agreements.

 

(c)                                  Notwithstanding
any other provision of this Trust Agreement, without the consent of each
Holder, this Trust Agreement may not be amended to (i) change the accrual
rate, amount, currency or timing of any Distribution on or the redemption price
of the Trust Securities or otherwise adversely affect the amount of any
Distribution or other payment required to be made in respect of the Trust
Securities as of a specified date, except as set forth in the last sentence of
Section 10.3(b) above, (ii) restrict or impair the right of a Holder to
institute suit for the enforcement of any such payment on or after such date,
(iii) reduce the percentage of aggregate Liquidation Amount of Outstanding
Preferred Securities, the consent of whose Holders is required for any such
amendment, or the consent of whose Holders is required for any waiver of
compliance with any provision of this Trust Agreement or of defaults hereunder
and their consequences provided for in this Trust Agreement; (iv) impair or
adversely affect the rights and interests of the Holders in the Trust Property,
or permit the creation of any Lien on any portion

 

57

 

of the Trust Property; or
(v) modify the definition of “Outstanding,” this Section 10.3(c), Sections
4.1, 4.2, 4.3, 6.10(e) or Article IX.

 

(d)                                 Notwithstanding
any other provision of this Trust Agreement, no Trustee shall enter into or
consent to any amendment to this Trust Agreement that would cause the Trust to
be taxable as a corporation or to be classified as other than a grantor trust
for United States federal income tax purposes or that would cause the Notes to
fail or cease to be treated as indebtedness of the Depositor for United States
federal income tax purposes or that would cause the Trust to fail or cease to
qualify for the exemption from status (or from any requirement to register) as
an “investment company” under the Investment Company Act.

 

(e)                                  If
any amendment to this Trust Agreement is made, the Administrative Trustees or
the Property Trustee shall promptly provide to the Depositor and the Note
Trustee a copy of such amendment.

 

(f)                                    No
Trustee shall be required to enter into any amendment to this Trust Agreement
that affects its own rights, duties or immunities under this Trust
Agreement.  The Trustees shall be
entitled to receive an Opinion of Counsel and an Officers’ Certificate stating
that any amendment to this Trust Agreement is in compliance with this Trust
Agreement and all conditions precedent herein provided for relating to such
action have been met.

 

(g)                                 No
amendment or modification to this Trust Agreement that adversely affects in any
material respect the rights, duties, liabilities, indemnities or immunities of
the Delaware Trustee hereunder shall be permitted without the prior written
consent of the Delaware Trustee.

 

SECTION 10.4.                 Separability.

 

If any provision in this Trust Agreement or in the
Securities Certificates 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, and there shall be deemed substituted
for the provision at issue a valid, legal and enforceable provision as similar
as possible to the provision at issue.

 

SECTION 10.5.                 Governing Law.

 

THIS TRUST AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
EACH OF THE HOLDERS, THE TRUST, THE DEPOSITOR AND THE TRUSTEES WITH RESPECT TO
THIS TRUST AGREEMENT AND THE TRUST SECURITIES SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT
REFERENCE TO ITS CONFLICTS OF LAWS PROVISIONS.

 

SECTION 10.6.                 Successors.

 

This Trust Agreement shall be binding upon and shall
inure to the benefit of any successor to the Depositor, the Trust and any
Trustee, including any successor by operation of law. Except in connection with
a transaction involving the Depositor that is permitted under

 

58

 

Article VIII
of the Indenture and pursuant to which the assignee agrees in writing to
perform the Depositor’s obligations hereunder, the Depositor shall not assign
its obligations hereunder.

 

SECTION 10.7.                 Headings.

 

The Article and Section headings are for
convenience only and shall not affect the construction of this Trust Agreement

 

SECTION 10.8.                 Reports,
Notices and Demands.

 

(a)                                  Any
report, notice, demand or other communication that by any provision of this
Trust Agreement is required or permitted to be given or served to or upon any
Holder or the Depositor may be given or served in writing delivered in person,
or by reputable, overnight courier, by telecopy or by deposit thereof,
first-class postage prepaid, in the United States mail, addressed, (a) in
the case of a Holder of Preferred Securities, to such Holder as such Holder’s
name and address may appear on the Securities Register; and (b) in the
case of the Holder of all the Common Securities or the Depositor, to iStar Financial Inc. 1114 Avenue of the
Americas, 27th Floor, New York, NY 10036, Attention: Chief Financial Officer, or to such other address as may be
specified in a written notice by the Holder of all the Common Securities or the
Depositor, as the case may be, to the Property Trustee. Such report, notice,
demand or other communication to or upon a Holder or the Depositor shall be
deemed to have been given when received in person, within one (1) Business Day
following delivery by overnight courier, when telecopied with receipt
confirmed, or within three (3) Business Days following delivery by mail, except
that if a notice or other document is refused delivery or cannot be delivered
because of a changed address of which no notice was given, such notice or other
document shall be deemed to have been delivered on the date of such refusal or
inability to deliver.

 

(b)                                 Any
notice, demand or other communication that by any provision of this Trust
Agreement is required or permitted to be given or served to or upon the
Property Trustee, the Delaware Trustee, the Administrative Trustees or the
Trust shall be given in writing by deposit thereof, first-class postage
prepaid, in the U.S. mail, personal delivery or facsimile transmission,
addressed to such Person as follows: (i) with respect to the Property
Trustee to JPMorgan Chase Bank, National Association, 600 Travis, 50th
Floor, Houston, Texas 77002, Attention: Worldwide Securities Services—iStar Financial Statutory
Trust I, facsimile no. (713) 216-2101, (ii) with respect to the
Delaware Trustee, to Chase Bank USA, National Association, 500 Stanton
Christiana Road, Building 4 (3rd Floor), Newark, Delaware 19713,
Attention: Institutional Trust Services—iStar Financial Statutory Trust I, facsimile no. (302)
552-6280; (iii) with respect to the Administrative Trustees, to them at
the address above for notices to the Depositor, marked “Attention:
Administrative Trustees of iStar Financial
Statutory Trust I,”
and (iv) with respect to the Trust, to its principal executive office specified
in Section 2.2, with a copy to the Property Trustee. Such notice, demand
or other communication to or upon the Trust, the Property Trustee or the
Administrative Trustees shall be deemed to have been sufficiently given or made
only upon actual receipt of the writing by the Trust, the Property Trustee or
the Administrative Trustees.

 

59

 

SECTION 10.9.                 Agreement Not to
Petition.

 

Each of the Trustees and the Depositor agree for the
benefit of the Holders that, until at least one year and one day after the
Trust has been terminated in accordance with Article IX, they shall not
file, or join in the filing of, a petition against the Trust under any
Bankruptcy Law or otherwise join in the commencement of any proceeding against
the Trust under any Bankruptcy Law. If the Depositor takes action in violation
of this Section 10.9, the Property Trustee agrees, for the benefit
of Holders, that at the expense of the Depositor, it shall file an answer with
the applicable bankruptcy court or otherwise properly contest the filing of
such petition by the Depositor against the Trust or the commencement of such
action and raise the defense that the Depositor has agreed in writing not to
take such action and should be estopped and precluded therefrom and such other
defenses, if any, as counsel for the Property Trustee or the Trust may assert.

 

SECTION
10.10.           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.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK]

 

60

 

IN WITNESS WHEREOF, the parties hereto have executed
this Amended and Restated Trust Agreement as of the day and year first above
written.

 

	
   

  	
  iStar Financial Inc.,

  
	
   

  	
   

  
	
   

  	
  as
  Depositor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JPMorgan
  Chase Bank, National

  Association, as Property Trustee

  	
  Chase Bank USA, National Association, as

  Delaware Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        Administrative
  Trustee

  	
  Administrative
  Trustee

  
	
        Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
													

 

61

 

Exhibit A

 

CERTIFICATE OF TRUST

 

OF

 

iStar Financial Statutory Trust I

 

This Certificate of Trust of iStar Financial Statutory Trust I (the “Trust”) is being duly executed and filed on behalf of the
Trust by the undersigned, as trustees, to form a statutory trust under the
Delaware Statutory Trust Act (12 Del. C.
§3801 et  seq.)
(the “Act”).

 

1.                                       Name. 
The name of the statutory trust formed by this Certificate of Trust
is:  iStar
Financial Statutory Trust I.

 

2.                                       Delaware Trustee.  The name and business address of the trustee
of the Trust with its principal place of business in the State of Delaware are:

 

Chase Bank USA, National Association

c/o JPMorgan Chase Bank, National Association

500 Stanton Christiana Road, OPS4/3rd Floor

Newark, Delaware 19713

Attention: Worldwide Securities Services.

 

3.                                       Effective Date.  This Certificate of Trust shall be effective
upon its filing with the Secretary of State of the State of Delaware.

 

IN WITNESS WHEREOF, the undersigned have duly executed
this Certificate of Trust in accordance with Section 3811(a)(1) of the Act.

 

	
   

  	
  Chase Bank USA, National Association, not
  in

  its individual capacity, but solely as Delaware

  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-1

 

Exhibit B

 

[FORM OF COMMON SECURITIES CERTIFICATE]

 

THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION.  THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT
IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE TRUST AGREEMENT

 

	
  Certificate
  Number

  	
  Number of Common Securities: 3,093

  
	
   

  
	
   

  
	
   

  	
  C-   

  	
   

  
			

 

Certificate
Evidencing Common Securities

 

of

 

iStar Financial Statutory Trust I

 

Common Securities

 

(liquidation
amount $1,000 per Common Security)

 

iStar Financial Statutory Trust
I, a statutory trust created under the laws of the State of Delaware (the “Trust”), hereby certifies that iStar Financial Inc., a
Maryland corporation (the “Holder”) is the
registered owner of 3,093 common securities of the Trust representing undivided
common beneficial interests in the assets of the Trust and designated the iStar
Financial Statutory Trust I Common Securities (liquidation amount $1,000 per
Common Security) (the “Common Securities”).
Except in accordance with Section 5.11 of the Trust Agreement (as
defined below), the Common Securities are not transferable and, to the fullest
extent permitted by law, any attempted transfer hereof other than in accordance
therewith shall be void. The designations, rights, privileges, restrictions,
preferences and other terms and provisions of the Common Securities are set
forth in, and this certificate and the Common Securities represented hereby are
issued and shall in all respects be subject to the terms and provisions of, the
Amended and Restated Trust Agreement of the Trust, dated as of September 14,
2005 as the same may be amended from time to time (the “Trust
Agreement”), among iStar Financial Inc., as Depositor, JPMorgan
Chase Bank, National Association, as Property Trustee, Chase Bank USA, National
Association, as Delaware Trustee, the Administrative Trustees named therein and
the Holders, from time to time, of Trust Securities. The Trust will furnish a
copy of the Trust Agreement to the Holder without charge upon written request
to the Trust at its principal place of business or registered office.

 

B-1

 

Upon receipt of this certificate, the Holder is bound
by the Trust Agreement and is entitled to the benefits thereunder.

 

This Common Securities Certificate shall be governed
by and construed in accordance with the laws of the State of Delaware.

 

Terms used but not defined herein have the meanings
set forth in the Trust Agreement.

 

In Witness Whereof, one of the
Administrative Trustees of the Trust has executed on behalf of the Trust this
certificate this     day of
               ,
200  .

 

 

	
   

  	
  iStar
  Financial Statutory Trust I

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Administrative
  Trustee

  
					

 

B-2

 

Exhibit C

 

[FORM OF PREFERRED
SECURITIES CERTIFICATE]

 

“[IF THIS SECURITY IS A
GLOBAL SECURITY INSERT: THIS PREFERRED SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE
OF DTC.  THIS PREFERRED SECURITY IS
EXCHANGEABLE FOR PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
TRUST AGREEMENT, AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A
TRANSFER OF THIS PREFERRED SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY
A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN
LIMITED CIRCUMSTANCES.

 

UNLESS THIS PREFERRED SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO ISTAR
FINANCIAL STATUTORY TRUST I OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON 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.]

 

THE PREFERRED SECURITIES REPRESENTED BY THIS
CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND SUCH PREFERRED SECURITIES OR ANY INTEREST THEREIN MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. 
EACH PURCHASER OF ANY PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE
SELLER OF THE PREFERRED SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE
SECURITIES ACT.

 

THE HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY
THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT (A)
SUCH PREFERRED SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY
(I) TO THE TRUST, OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED
PURCHASER” (AS DEFINED IN SECTION 2(A)(51) OF THE INVESTMENT COMPANY ACT OF
1940, AS AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY
PREFERRED SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A)
ABOVE.

 

THE PREFERRED SECURITIES WILL BE ISSUED AND MAY BE
TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE LIQUIDATION AMOUNT OF NOT LESS
THAN

 

C-1

 

$100,000. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK
HAVING AN AGGREGATE LIQUIDATION AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF
$1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED
TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH PREFERRED SECURITIES
FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR
INTEREST ON SUCH PREFERRED SECURITIES, OR ANY INTEREST THEREIN, AND SUCH
PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH
PREFERRED SECURITIES.

 

THE HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN,
BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT
IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING
ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY,
AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS
PREFERRED SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE
PREFERRED SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED
BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN
WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF
THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS
OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE.

 

C-2

 

	
  Certificate
  Number: P-   

  	
   

  	
   

  
	
   

  	
   

  	
  Preferred
  Securities

  

 

CUSIP NO.

 

 

Certificate
Evidencing Preferred Securities

 

of

 

iStar Financial Statutory Trust I

 

Preferred
Securities

(liquidation amount $1,000 per Preferred Security)

 

iStar Financial Statutory Trust
I, a statutory trust created under the laws of the State of Delaware (the “Trust”), hereby certifies that                           (the “Holder”) is the registered owner of                        Preferred Securities [if the Preferred Security is a Global Security,
then insert — or such other number of Preferred Securities
represented hereby as may be set forth in the records of the Securities
Registrar hereinafter referred to in accordance with the Trust Agreement (as
defined below)] of the Trust representing an undivided preferred beneficial
interest in the assets of the Trust and designated the iStar Financial
Statutory Trust I Preferred Securities, (liquidation amount $1,000 per
Preferred Security) (the “Preferred Securities”).
Subject to the terms of the Trust Agreement (as defined below), the Preferred
Securities are transferable on the books and records of the Trust, in person or
by a duly authorized attorney, upon surrender of this certificate duly endorsed
and in proper form for transfer as provided in Section 5.7 of the Trust
Agreement (as defined below). The designations, rights, privileges,
restrictions, preferences and other terms and provisions of the Preferred
Securities are set forth in, and this certificate and the Preferred Securities represented
hereby are issued and shall in all respects be subject to the terms and
provisions of, the Amended and Restated Trust Agreement of the Trust, dated as
of September 14, 2005 as the same may be amended from time to time (the “Trust Agreement”), among iStar Financial Inc., as Depositor,
JPMorgan Chase Bank, National Association, as Property Trustee, Chase Bank USA,
National Association, as Delaware Trustee, the Administrative Trustees named
therein and the Holders, from time to time, of Trust Securities.  The Trust will furnish a copy of the Trust
Agreement to the Holder without charge upon written request to the Property
Trustee at its Corporate Trust Office.

 

Upon receipt of this certificate, the Holder is bound
by the Trust Agreement and is entitled to the benefits thereunder.

 

This Preferred Securities Certificate shall be
governed by and construed in accordance with the laws of the State of Delaware.

 

C-3

 

All capitalized terms used but not defined in this
Preferred Securities Certificate are used with the meanings specified in the
Trust Agreement, including the Schedules and Exhibits thereto.

 

In Witness Whereof, one of the
Administrative Trustees of the Trust has executed on behalf of the Trust this
certificate this __ day of               ,
2005.

 

	
   

  	
  iStar
  Financial Statutory Trust I

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Administrative Trustee

  

 

This is one of the Preferred Securities referred to in
the within-mentioned Trust Agreement.

 

	
  Dated:

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

  not in its individual capacity, but solely as Property

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized signatory

  

 

C-4

 

[FORM OF REVERSE
OF SECURITY]

 

The Trust promises to pay Distributions from September 14, 2005, or from the most recent
Distribution Date to which Distributions have been paid or duly provided for, quarterly (subject to deferral as set
forth herein) in arrears on January 30, April 30, July 30 and October 30 of each year, commencing on October 30, 2005, at a variable rate equal to LIBOR plus 1.50% per annum of the Liquidation Amount of the Preferred
Securities represented by this Preferred Securities Certificate, together with
any Additional Interest Amounts, in respect to such period.

 

Distributions on the Trust Securities shall be made by
the Paying Agent from the Payment Account and shall be payable on each
Distribution Date only to the extent that the Trust has funds then on hand and
available in the Payment Account for the payment of such Distributions.

 

In the event (and to the extent) that the Depositor
exercises its right under the Indenture to defer the payment of interest on the
Notes, Distributions on the Preferred Securities shall be deferred.

 

Under the Indenture, so long as no Note Event of
Default has occurred and is continuing, the Depositor shall have the right, at
any time and from time to time during the term of the Notes, to defer the
payment of interest on the Notes for a period of up to an aggregate of eight (8)
consecutive quarterly
interest payment periods (each such extended interest payment period, an “Extension
Period”), during which Extension Period no interest shall be due and payable
(except any Additional Tax Sums that may be due and payable).  At the end of any such Extension Period, the Depositor
shall pay all interest then accrued and unpaid together with such Additional
Interest.  Prior to the termination of
any such Extension Period, the Depositor may further defer the payment of
interest; provided,
that (i) all such previous and further extensions comprising such
Extension Period do not exceed eight
(8) quarterly interest payment periods in the aggregate, together with
all previous Extension Periods. While no interest on the Notes shall be due and
payable during an Extension Period, except at the end thereof, each installment
of interest that would otherwise have been due and payable during such
Extension Period shall bear Additional Interest (to the extent payment of such
interest would be legally enforceable) at a variable rate equal to LIBOR plus 1.50% per annum compounded quarterly, from the
dates on which amounts would have otherwise been due and payable until paid or
until funds for the payment thereof have been made available for payment.  If Distributions are deferred, the deferred
Distributions (including Additional Interest Amounts) shall be paid on the date
that the related Extension Period terminates to Holders (as defined in the
Trust Agreement) of the Trust Securities as they appear on the books and
records of the Trust on the record date immediately preceding such termination
date.

 

Distributions on the Securities must be paid on the
dates payable to the extent that the Trust has funds available for the payment
of such Distributions in the Payment Account of the Trust.  The Trust’s funds available for Distribution
to the Holders of the Preferred Securities will be limited to payments received
from the Depositor.

 

During an Event of Default or Extension Period, the
Depositor shall not (i) declare or pay any dividends or distributions on, or
redeem, purchase, acquire or make a liquidation payment

 

C-5

 

with respect to, any of
the Depositor’s capital stock or (ii) make any payment of principal of or any
interest or premium, if any, on or repay, repurchase or redeem any debt
securities of the Depositor that rank pari passu in all respects with
or junior in interest to the Notes (other than (a) repurchases, redemptions or
other acquisitions of shares of capital stock of the Depositor in connection
with (1) any employment contract, benefit plan or other similar arrangement
with or for the benefit of any one or more employees, officers, directors or
consultants, (2) a dividend reinvestment or stockholder stock purchase plan or
(3) the issuance of capital stock of the Depositor (or securities convertible
into or exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to such Event of Default, (b) as a result of an
exchange or conversion of any class or series of the Depositor’s capital stock
(or any capital stock of a Subsidiary (as defined in the Indenture) of the
Depositor) for any class or series of the Depositor’s capital stock or of any
class or series of the Depositor’s indebtedness for any class or series of the
Depositor’s capital stock, (c) the purchase of fractional interests in shares
of the Depositor’s capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged,
(d) any declaration of a dividend in connection with any Rights Plan (as
defined in the Indenture), the issuance of rights, stock or other property
under any Rights Plan, or the redemption or repurchase of rights pursuant thereto
or (e) any dividend in the form of stock, warrants, options or other rights
where the dividend stock or the stock issuable upon exercise of such warrants,
options or other rights is the same stock as that on which the dividend is
being paid or ranks pari passu with or junior to such stock).

 

On each Note Redemption Date, on the stated maturity
(or any date of principal repayment upon early maturity) of the Notes and on
each other date on (or in respect of) which any principal on the Notes is
repaid, the Trust will be required to redeem a Like Amount of Trust Securities
at the Redemption Price.  Under the
Indenture, the Notes may be redeemed by the Depositor on any Interest Payment
Date, at the Depositor’s option, on or after October
30, 2010 in whole or in part from time to time at the Optional Note
Redemption Price of the principal amount thereof or the redeemed portion
thereof, as applicable, together, in the case of any such redemption, with
accrued interest, including any Additional Interest, to but excluding the date
fixed for redemption.  The Notes may also
be redeemed by the Depositor, at its option, at any time, in whole but not in
part, upon the occurrence of an Investment Company Event or a Tax Event at the
Special Note Redemption Price; provided,
that such Investment Company Event or a Tax Event is continuing on the
Redemption Date.

 

The Trust Securities redeemed on each Redemption Date
shall be redeemed at the Redemption Price with the proceeds from the
contemporaneous redemption or payment at maturity of Notes. Redemptions of the
Trust Securities (or portion thereof) shall be made and the Redemption Price
shall be payable on each Redemption Date only to the extent that the Trust has
funds then on hand and available in the Payment Account for the payment of such
Redemption Price.

 

Payments of Distributions (including any Additional
Interest Amounts), the Redemption Price, Liquidation Amount or any other
amounts in respect of the Preferred Securities shall be made by wire transfer
at such place and to such account at a banking institution in the United States
as may be designated in writing at least ten (10) Business Days prior to the
date for payment by the Person entitled thereto unless proper written transfer
instructions have not been received by the relevant record date, in which case
such payments shall be made by check mailed

 

C-6

 

to the address of such
Person as such address shall appear in the Security Register.  If any Preferred Securities are held by a
Depositary, such Distributions shall be made to the Depositary in immediately
available funds.

 

The indebtedness evidenced by the Notes is, to the
extent provided in the Indenture, subordinate and junior in right of payment to
the prior payment in full of all Senior Debt (as defined in the Indenture), and
this Security is issued subject to the provisions of the Indenture with respect
thereto.

 

C-7

 

ASSIGNMENT

 

For Value Received, the
undersigned assigns and transfers this Preferred Securities Certificate to:

 

	
   

  
	
  (Insert assignee’s social security or tax
  identification number)

  
	
   

  
	
   

  
	
  (Insert address and zip code of assignee)

  
	
   

  
	
  and
  irrevocably appoints

  
	
   

  

 

agent to transfer this Preferred Securities Certificate on the books of
the Trust. The agent may substitute another to act for him or her.

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  	
  (Sign exactly as your name
  appears on the other side of this Preferred Securities Certificate)

  	
   

  
					

 

The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program),
pursuant to S.E.C. Rule 17Ad-15.

 

C-8

 

Exhibit D

 

iStar
Financial Inc.

 

FORM OF JUNIOR
SUBORDINATED NOTE DUE 2035

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND SUCH SECURITIES,
AND ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF ANY SECURITIES IS HEREBY
NOTIFIED THAT THE SELLER OF THE SECURITIES MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER
THE SECURITIES ACT.

 

THE HOLDER OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITIES MAY
BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE COMPANY, OR (II) TO
A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS
DEFINED IN SECTION 2(A)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED),
AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES FROM
IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED
ONLY IN BLOCKS HAVING AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000.
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF SECURITIES,
OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF
LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO
BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH
SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
PRINCIPAL OF OR INTEREST ON SUCH SECURITIES, OR ANY INTEREST THEREIN, AND SUCH
PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH
SECURITIES.

 

THE HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN,
BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT
IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED (“ERISA”), OR
SECTION 4975 OF THE INTERNAL REVENUE

 

D-1

 

CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN
ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON
INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY
INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST
THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF
THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR
OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER
PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE
SUCH PURCHASE.

 

D-2

 

Form of Junior
Subordinated Note due 2035

 

No. D-1       $ 103,093,000

 

iStar
Financial Inc., a corporation organized and existing under the laws of Maryland (hereinafter
called the “Company,” which
term includes any successor Person under the Indenture hereinafter referred
to), for value received, hereby promises to pay to JPMorgan Chase Bank,
National Association, not in its individual capacity but solely as Trustee, or
registered assigns, the principal sum of One Hundred Three Million Ninety Three Thousand
Dollars ($103,093,000)
on October 30, 2035.  The Company further promises to pay interest
on said principal sum from September 14, 2005, or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, quarterly in arrears
on January 30, April 30,
July 30 and October 30, of each year, commencing October 30, 2005, or if any such day is not a
Business Day, on the next succeeding Business Day (and no interest shall accrue
in respect of the amounts whose payment is so delayed for the period from and
after such Interest Payment Date until such next succeeding Business Day),
except that, if such Business Day falls in the next succeeding calendar year,
such payment shall be made on the immediately preceding Business Day, in each
case, with the same force and effect as if made on the Interest Payment Date,
at a variable rate equal to
LIBOR plus 1.50% per annum, together with
Additional Tax Sums, if any, as provided in Section 10.5 of the
Indenture, until the principal hereof is paid or duly provided for or made
available for payment; provided, further,
that any overdue principal, premium, if any, or Additional Tax Sums and any
overdue installment of interest shall bear Additional Interest at a variable rate equal to LIBOR plus 1.50% per annum (to
the extent that the payment of such interest shall be legally enforceable),
compounded quarterly, from the
dates such amounts are due until they are paid or made available for payment,
and such interest shall be payable on demand.

 

The amount of interest payable on any Interest Payment
Date shall be computed on the basis of a 360-day year and the actual number of
days elapsed in the relevant interest period. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date shall, as
provided in the 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 installment.  Any such interest not so punctually paid or
duly provided for shall 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
not less than ten (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 may be listed, and upon such
notice as may be required by such exchange, all as more fully provided in the
Indenture.

 

So long as no Event of Default has occurred and is
continuing, the Company shall have the right, at any time and from time to time
during the term of this Security, to defer the payment

 

D-3

 

of interest on this
Security for a period of up to eight
(8) consecutive quarterly interest
payment periods (each such period, an “Extension Period”),
during which Extension Period(s), no interest shall be due and payable (except
any Additional Tax Sums that may be due and payable).  No Extension Period shall end on a date other
than an Interest Payment Date, and no Extension Period shall extend beyond the
Stated Maturity of the principal of this Security.  No interest shall be due and payable during
an Extension Period (except any Additional Tax Sums that may be due and
payable), except at the end thereof, but each installment of interest that
would otherwise have been due and payable during such Extension Period shall
bear Additional Interest (to the extent payment of such interest would be
legally enforceable) at a variable rate equal to LIBOR plus 1.50% per annum compounded quarterly, from the dates on which
amounts would have otherwise been due and payable until paid or made available
for payment.  At the end of any such
Extension Period, the Company shall pay all interest then accrued and unpaid on
this Security, together with such Additional Interest.  Prior to the termination of any such
Extension Period, the Company may further defer the payment of interest; provided,
that (i) all such previous and further extensions comprising such
Extension Period do not exceed eight
(8) quarterly interest payment periods in the aggregate, together with
all previous Extension Periods, (ii) no Extension Period shall end on a
date other than an Interest Payment Date and (iii) no Extension Period
shall extend beyond the Stated Maturity of the principal of this Security.  Upon the termination of any such Extension
Period and upon the payment of all accrued and unpaid interest and any
Additional Interest then due on any Interest Payment Date, the Company may
elect to begin a new Extension Period; provided, that (i) such
Extension Period does not exceed eight
(8) quarterly interest payment periods in the aggregate, together with
all previous Extension Periods, (ii) no Extension Period shall end on a
date other than an Interest Payment Date and (iii) no Extension Period
shall extend beyond the Stated Maturity of the principal of this Security.  The Company shall give the Holder of this
Security and the Trustee written notice of its election to begin any such
Extension Period at least one Business Day prior to the next succeeding
Interest Payment Date on which interest on this Security would be payable but for
such deferral.

 

During an Event of Default, the Company shall not (i)
declare or pay any dividends or distributions on, or redeem, purchase, acquire
or make a liquidation payment with respect to, any of the Company’s capital
stock or (ii) make any payment of principal of or any interest or premium, if
any, on or repay, repurchase or redeem any debt securities of the Company that
rank pari passu
in all respects with or junior in interest to this Security (other than (a)
repurchases, redemptions or other acquisitions of shares of capital stock of
the Company in connection with (1) any employment contract, benefit plan or
other similar arrangement with or for the benefit of any one or more employees,
officers, directors or consultants, (2) a dividend reinvestment or stockholder
stock purchase plan and (3) the issuance of capital stock of the Company (or
securities convertible into or exercisable for such capital stock) as
consideration in an acquisition transaction entered into prior to such Event of
Default or such Extension Period, as applicable,, (b) as a result of an
exchange or conversion of any class or series of the Company’s capital stock
(or any capital stock of a Subsidiary of the Company) for any class or series
of the Company’s capital stock or of any class or series of the Company’s
indebtedness for any class or series of the Company’s capital stock, (c) the
purchase of fractional interests in shares of the Company’s capital stock
pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, (d) any declaration of a dividend in
connection with any Rights Plan, the issuance of rights, stock or other
property under any Rights Plan, or the

 

D-4

 

redemption or repurchase
of rights pursuant thereto or (e) any dividend in the form of stock, warrants,
options or other rights where the dividend stock or the stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on
which the dividend is being paid or ranks pari passu with or junior to such
stock).

 

Payment of principal of, premium, if any, and interest
on this Security shall be made 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.  Payments of principal,
premium, if any, and interest due at the Maturity of this Security shall be
made at the Place of Payment
upon surrender of such Securities to the Paying Agent, and payments of interest
shall be made, subject to such surrender where applicable, by wire transfer at
such place and to such account at a banking institution in the United States as
may be designated in writing to the Paying Agent at least ten (10) Business
Days prior to the date for payment by the Person entitled thereto unless proper
written transfer instructions have not been received by the relevant record
date, in which case such payments shall be made by check mailed to the address
of such Person as such address shall appear in the Security Register.  Notwithstanding the foregoing, so long as the
Holder of this Security is the Property Trustee, the payment of the principal
of (and premium, if any) and interest (including any overdue installment of
interest and Additional Tax Sums, if any) on this Security will be made at such
place and to such account as may be designated by the Property Trustee.

 

The indebtedness evidenced by this Security is, to the
extent provided in the Indenture, subordinate and junior in right of payment to
the prior payment in full of all Senior Debt, and this Security is issued
subject to the provisions of the Indenture with respect thereto. Each Holder of
this Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his or her behalf to take
such actions as may be necessary or appropriate to effectuate the subordination
so provided and (c) appoints the Trustee his or her attorney-in-fact for any
and all such purposes. Each Holder hereof, by his or her acceptance hereof,
waives all notice of the acceptance of the subordination provisions contained
herein and in the Indenture by each holder of Senior Debt, whether now
outstanding or hereafter incurred, and waives reliance by each such holder upon
said provisions.

 

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

 

D-5

 

[FORM OF REVERSE
OF SECURITY]

 

This Security is one of a duly authorized issue of
securities of the Company (the “Securities”)
issued under the Junior Subordinated Indenture, dated as of September 14, 2005 (the “Indenture”),
between the Company and JPMorgan Chase Bank, National Association, as Trustee
(in such capacity, 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, the holders of
Senior Debt, the Holders of the Securities and the holders of the Preferred
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered.

 

All terms used in this Security that are defined in
the Indenture or in the Amended and
Restated Trust Agreement, dated as of September 14, 2005 (as modified, amended or
supplemented from time to time, the “Trust Agreement”),
relating to the iStar Financial Statutory Trust
I (the “Trust”) among
the Company, as Depositor, the Trustees named therein and the Holders from time
to time of the Trust Securities issued pursuant thereto, shall have the
meanings assigned to them in the Indenture or the Trust Agreement, as the case
may be.

 

The Company may, on any Interest Payment Date, at its
option, upon not less than thirty (30) days’ nor more than sixty (60) days’
written notice to the Holders of the Securities (unless a shorter notice period
shall be satisfactory to the Trustee) on or after October 30, 2010 and subject to the terms and conditions of Article
XI of the Indenture, redeem this Security in whole at any time or in part from
time to time at a Redemption Price equal to one hundred percent (100%) of the
principal amount hereof, together, in the case of any such redemption, with
accrued interest, including any Additional Interest, through but excluding the
date fixed as the Redemption Date.

 

In addition, upon the occurrence and during the
continuation of a Special Event, the Company may, at its option, upon not less
than thirty (30) days’ nor more than sixty (60) days’ written notice to the
Holders of the Securities (unless a shorter notice period shall be satisfactory
to the Trustee), redeem this Security, in whole but not in part, subject to the
terms and conditions of Article XI of the Indenture at a Redemption
Price equal to one hundred percent (100%) of the principal amount hereof,
together, in the case of any such redemption, with accrued interest, including
any Additional Interest, through but excluding the date fixed as the Redemption
Date.

 

In the event of redemption of this Security in part
only, a new Security or Securities for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.  If less than all the Securities are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than sixty (60) days prior to the Redemption Date by the Trustee from the
Outstanding Securities 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.

 

The Indenture permits, with certain exceptions as
therein provided, the Company and the Trustee at any time to enter into a
supplemental indenture or indentures for the purpose of modifying in any manner
the rights and obligations of the Company and of the Holders of the Securities,
with the consent of the Holders of not less than a majority in principal amount
of the

 

D-6

 

Outstanding Securities.
The Indenture also contains provisions permitting Holders of specified
percentages in principal amount of the Securities, on behalf of the Holders of
all Securities, 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.

 

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, if any, and interest, including any Additional Interest (to the
extent legally enforceable), 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 restricted to
transfers to “Qualified Purchasers” (as such term is defined in the Investment
Company Act of 1940, as amended), and is registrable in the Securities
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company maintained for such purpose, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Securities Registrar and duly executed by, the Holder hereof or
such Holder’s attorney duly authorized in writing, and thereupon one or more
new Securities, of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

 

The Securities are issuable only in registered form
without coupons in minimum denominations of $100,000 and any integral multiple
of $1,000 in excess thereof. As provided in the Indenture and subject to
certain limitations therein set forth, Securities are exchangeable for a like
aggregate principal amount of Securities 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.

 

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.

 

The Company and, by its acceptance of this Security or
a beneficial interest herein, the Holder of, and any Person that acquires a
beneficial interest in, this Security agree that, for United States federal,
state and local tax purposes, it is intended that this Security constitute
indebtedness.

 

D-7

 

This Security shall be construed and enforced in
accordance with and governed by the laws of the State of New York, without
reference to its conflict of laws provisions (other than Section 5-1401 of the
General Obligations Law).

 

D-8

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed on this       day of              ,
2005.

 

	
   

  	
  iStar
  Financial Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

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

 

Dated:                             ,
2005

 

	
   

  	
  JPMORGAN CHASE BANK,
  NATIONAL

  ASSOCIATION, not in its individual
  capacity, but

  solely  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized signatory

  	
   

  

 

D-9

 

Exhibit E

 

Form of Transferor Certificate

 

             ,
[     ]

 

JPMorgan Chase Bank, National Association
600 Travis, 50th Floor

Houston, Texas 77002

Attention:  Worldwide Securities Services

 

iStar
Financial Inc.
iStar Financial Statutory Trust I
1114 Avenue of the Americas, 27th Floor

New York, NY 10036

 

Re:                               Purchase
of $               
stated liquidation amount of Preferred Securities (the “Preferred Securities”)
of iStar Financial Statutory Trust I

 

Ladies and
Gentlemen:

 

In connection
with our purchase of the Preferred Securities we confirm that:

 

1.                                       We
understand that the Preferred Securities (the “Preferred Securities”) of iStar Financial Statutory Trust I (the “Trust”)
of iStar Financial Inc. (the “Company”)
executed in connection therewith) and the Junior Subordinated Notes due 2035 of
the Company (the “Subordinated Notes”) (the entire amount of the Trust’s
outstanding Preferred Securities and the Subordinated Notes together being
referred to herein as the “Offered Securities”), have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”), and may not be
offered or sold except as permitted in the following sentence. We agree on our
own behalf and on behalf of any investor account for which we are purchasing
the Offered Securities that, if we decide to offer, sell or otherwise transfer
any such Offered Securities, (i) such offer, sale or transfer will be made only
(a) to the Trust, (b) to a person we reasonably believe is a “Qualified
Purchaser” (a “QP”) (as defined in Section 2(a)(51) of the Investment Company
Act of 1940, as amended).  We understand
that the certificates for any Offered Security that we receive will bear a
legend substantially to the effect of the foregoing.

 

2.                                       We
are a “Qualified Purchaser” within the meaning of Section 2(a)(51) of the
Investment Company Act of 1940, as amended, and are purchasing for our own
account or for the account of such a “Qualified Purchaser,” and we have such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of our investment in the Offered Securities,
and we and any account for which we are acting are each able to bear the
economic risks of our or its investment.

 

3.                                       We
are acquiring the Offered Securities purchased by us for our own account (or
for one or more accounts as to each of which we exercise sole investment
discretion and have authority to make, and do make, the statements contained in
this letter) and not with a

 

E-1

 

view to any
distribution of the Offered Securities, subject, nevertheless, to the
understanding that the disposition of our property will at all times be and
remain within our control.

 

4.                                       In
the event that we purchase any Preferred Securities or any Subordinated Notes,
we will acquire such Preferred Securities having an aggregate stated
liquidation amount of not less than $100,000 or such Subordinated Notes having
an aggregate principal amount not less than $100,000, for our own account and
for each separate account for which we are acting.

 

5.                                       We
acknowledge that we are not a fiduciary of (i) an employee benefit, individual
retirement account or other plan or arrangement subject to Title I of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or
Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”)
(each a “Plan”); or (ii) an entity whose underlying assets include “plan assets”
by reason of any Plan’s investment in the entity, and are not purchasing any of
the Offered Securities on behalf of or with “plan assets” by reason of any Plan’s
investment in the entity.

 

6.                                       We
acknowledge that the Trust and the Company and others will rely upon the truth
and accuracy of the foregoing acknowledgments, representations, warranties and
agreements and agree that if any of the acknowledgments, representations,
warranties and agreements deemed to have been made by our purchase of any of
the Offered Securities are no longer accurate, we shall promptly notify the
Company.  If we are acquiring any Offered
Securities as a fiduciary or agent for one or more investor accounts, we
represent that we have sole discretion with respect to each such investor
account and that we have full power to make the foregoing acknowledgments,
representations and agreement on behalf of each such investor account.

 

 

	
   

  	
  (Name of Purchaser)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
					

 

Upon transfer, the
Preferred Securities (having a stated liquidation amount of $                   )
would be registered in the name of the new beneficial owner as follows.

 

	
  Name:

  
	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  
	
  Taxpayer ID Number:

  	
   

  	
   

  
					

 

E-2

 

DETERMINATION OF LIBOR

 

With respect to the Trust Securities, the London
interbank offered rate (“LIBOR”)
shall be determined by the Calculation Agent in accordance with the following
provisions (in each case rounded to the nearest .000001%):

 

(1)                                  On
the second LIBOR Business Day (as defined below) prior to a Distribution Date (each
such day, a “LIBOR Determination Date”),
LIBOR for any given security shall for the following interest payment period
equal the rate, as obtained by the Calculation Agent from Bloomberg Financial
Markets Commodities News, for three-month Eurodollar deposits that appears on Dow Jones
Telerate Page 3750 (as defined in the International Swaps and Derivatives
Association, Inc. 1991 Interest Rate and Currency Exchange Definitions), or
such other page as may replace such Page 3750, as of 11:00 a.m. (London time)
on such LIBOR Determination Date.

 

(2)                                  If,
on any LIBOR Determination Date, such rate does not appear on Dow Jones
Telerate Page 3750 or such other page as may replace such Page 3750, the
Calculation Agent shall determine the arithmetic mean of the offered quotations
of the Reference Banks (as defined below) to leading banks in the London
interbank market for three-month Eurodollar deposits in an amount determined by the
Calculation Agent by reference to requests for quotations as of approximately
11:00 a.m. (London time) on the LIBOR Determination Date made by the
Calculation Agent to the Reference Banks. 
If, on any LIBOR Determination Date, at least two of the Reference Banks
provide such quotations, LIBOR shall equal such arithmetic mean of such
quotations.  If, on any LIBOR
Determination Date, only one or none of the Reference Banks provide such
quotations, LIBOR shall be deemed to be the arithmetic mean of the offered
quotations that leading banks in the City of New York selected by the
Calculation Agent are quoting on the relevant LIBOR Determination Date for three
month Eurodollar deposits in an amount determined by the Calculation
Agent by reference to the principal London offices of leading banks in the
London interbank market; provided,
that if the Calculation Agent is required but is unable to determine a rate in
accordance with at least one of the procedures provided above, LIBOR shall be
LIBOR as determined on the previous LIBOR Determination Date.

 

(3)                                  As
used herein: “Reference Banks”
means four major banks in the London interbank market selected by the
Calculation Agent; and “LIBOR Business Day”
means a day on which commercial banks are open for business (including dealings
in foreign exchange and foreign currency deposits) in London.

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