Document:

Exh 4.2 Supplemental Indenture No. 6

                Exhibit
      4.2

    
 

    Equity
      One, Inc.

     

    

     

    Issuer,

     

    the

     

    Guarantors

     

    SET
      FORTH ON THE SIGNATURE PAGES ATTACHED HERETO

     

    and

     

    SUNTRUST
      BANK, as

     

    Trustee

     

    —————————————————--

     

    Supplemental
      Indenture No. 6

     

    Dated
      as of May 20, 2005

     

    —————————————————--

     

    GUARANTEE
      OF SENIOR DEBT SECURITIES

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SUPPLEMENTAL
      INDENTURE NO. 6,
      dated
      as of May 20, 2005 (this “Supplemental
      Indenture”),
      among
Equity
      One, Inc.,
      a
      corporation duly organized and existing under the laws of the State of Maryland
      (the “Company”),
      each
      of the Guarantors
      set
      forth on the signature pages attached hereto (the “Guarantors”),
      and
SunTrust
      Bank (formerly
      known as SunTrust Bank, Atlanta), a
      Georgia
      banking corporation duly organized and existing under the laws of the State
      of
      Georgia, as Trustee (the “Trustee”).

     

    R
      E C I T A L S

     

    WHEREAS,
      the
      Company, as successor by merger to IRT Property Company, and the Trustee have
      heretofore entered into an Indenture dated as of September 9, 1998 (the
“Original
      Indenture”
      and as
      amended, supplemented or otherwise modified through the date hereof, the
“Indenture”),
      which
      has been filed with the Securities and Exchange Commission under the Securities
      Act of 1933, as amended, as an exhibit to the Company’s Registration Statement
      on Form S-3 (Registration No. 333-106909), providing for the issuance from
      time
      to time of senior debt securities of the Company (“Securities”);

     

    WHEREAS,
      the
      Guarantors will provide the guaranty herein set forth (the “Guaranty”)
      of the
      Obligations (as defined herein);

     

    WHEREAS,
      Sections 901(6) and 901(10) of the Indenture permit the Company and the Trustee
      to enter into indentures supplemental thereto without the consent of any Holder
      of Securities to evidence the Guaranty of each Guarantor and to make any change
      to the Indenture, provided that such change does not adversely affect the
      interests of the Holders of Securities of any series or any related coupons
      in
      any material respect;

     

    WHEREAS,
      each
      Guarantor has determined that its execution, delivery and performance of this
      Supplemental Indenture directly benefits, and are within the purposes and best
      interests of, the Guarantor;

     

    WHEREAS,
      the
      Board of Directors of the Company has duly adopted resolutions authorizing
      the
      Company to execute and deliver this Supplemental Indenture and the Board of
      Directors (or equivalent governing body) of each Guarantor has duly adopted
      resolutions authorizing such Guarantor to execute and deliver this Supplemental
      Indenture; and

     

    WHEREAS,
      all
      other conditions and requirements necessary to make this Supplemental Indenture,
      when duly executed and delivered, a valid and binding agreement in accordance
      with its terms and for the purposes herein expressed, have been performed and
      fulfilled.

     

    NOW,
      THEREFORE, THIS INDENTURE WITNESSETH:

     

    For
      and
      in consideration of the premises and other good and valuable consideration,
      the
      receipt and sufficiency of which is hereby acknowledged, the Company and each
      Guarantor agrees as follows:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      ONE

    DEFINITIONS

     

    SECTION
      1.1. Definitions.
      For all
      purposes of this Supplemental Indenture, except as otherwise expressly provided
      for or unless the context otherwise requires: 

     

    (a) capitalized
      terms used but not defined herein shall have the respective meanings assigned
      to
      them in the Indenture; 

     

    (b) all
      references herein to Articles and Sections refer to the corresponding Articles
      and Sections of this Supplemental Indenture; and 

     

    (c) as
      used
      herein the following terms have the following meanings:

     

    “Guaranteed
      Securities”
      means
      all Securities issued under the Indenture as of the date hereof.

     

    “Obligations”
      means
      (x) all payment and performance obligations of the Company (i) under the
      Indenture with respect to the Guaranteed Securities, (ii) under the Guaranteed
      Securities and (iii) as a result of the issuance of the Guaranteed Securities
      and (y) the obligation to pay an amount equal to the amount of any and all
      damages which the Trustee and the Holders, or any of them, may suffer by reason
      of a breach by either the Company or any other obligor of any obligation,
      covenant or undertaking under (i) the Indenture with respect to the Guaranteed
      Securities or (ii) the Guaranteed Securities.

     

    ARTICLE
      TWO

    GUARANTY

     

    SECTION
      2.1. Guaranty.
      Each
      Guarantor hereby unconditionally guarantees to the Trustee and the Holders
      full
      and prompt payment and performance when due, whether at maturity, by
      acceleration or otherwise, of all Obligations. Each Obligation shall rank pari
      passu with each other Obligation.

     

    SECTION
      2.2. Obligations
      Several.
      Regardless of whether any proposed Guarantor or any other Person or Persons
      is,
      are or shall become in any other way responsible to the Trustee and the Holders,
      or any of them, for or in respect of the Obligations or any part thereof, and
      regardless of whether or not any Person or Persons now or hereafter responsible
      to the Trustee and the Holders, or any of them, for the Obligations or any
      part
      thereof, whether under the Guaranty or otherwise, shall cease to be so liable,
      each Guarantor hereby declares and agrees that the Guaranty provided thereby
      is
      and shall continue to be a several obligation (as well as a joint one), shall
      be
      a continuing guaranty and shall be operative and binding on such Guarantor.
      Each
      Guarantor hereby agrees that it will not exercise any rights which it may
      acquire by way of subrogation under the Guaranty, by any payment made hereunder
      or otherwise, unless and until all of the Obligations shall have been paid
      in
      full. If any amount shall be paid to any Guarantor on account of such
      subrogation rights at any time when all of the Obligations shall not have been
      paid in full, such amount shall be held in trust for the benefit of the Trustee
      and the Holders and shall forthwith be paid to the Trustee to be credited and
      applied upon the Obligations, whether matured or unmatured, in accordance with
      the terms of the Indenture, but subject to the provisions of Section
2.7
      hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      2.3. Guaranty
      Final.
      Upon
      the execution and delivery of this Supplemental Indenture by the parties hereto,
      this Supplemental Indenture shall be deemed to be finally executed and delivered
      by the parties hereto and shall not be subject to or affected by any promise
      or
      condition affecting or limiting any Guarantor’s liability, and no statement,
      representation, agreement or promise on the part of the Trustee, the Holders,
      the Company, or any of them, or any officer, employee or agent thereof, unless
      contained herein forms any part of this Supplemental Indenture or has induced
      the making hereof or shall be deemed in any way to affect any Guarantor’s
      liability hereunder. The Guarantors’ obligations hereunder shall remain in full
      force and effect until all Obligations shall have been paid in
      full.

     

    SECTION
      2.4. Dealings
      With the Company.
      The
      Company, the Trustee and the Holders, or any of them, may, from time to time,
      without exonerating or releasing any Guarantor in any way under the Guaranty,
      (i) take such further or other security or securities for the Obligations or
      any
      part thereof as the Trustee and the Holders, or any of them, may deem proper,
      consistent with the Indenture, or (ii) release, discharge, abandon or otherwise
      deal with or fail to deal with any Guarantor of the Obligations or any security
      or securities therefor or any part thereof now or hereafter held by the Trustee
      and the Holders, or any of them, as the Trustee and the Holders, or any of
      them,
      may deem proper, consistent with the Indenture, or (iii) consistent with the
      Indenture, amend, modify, extend, accelerate or waive in any manner any of
      the
      provisions, terms, or conditions of the Indenture and the Guaranteed Securities,
      all as the Company, the Trustee and the Holders, or any of them, may consider
      expedient or appropriate in their sole discretion. Without limiting the
      generality of the foregoing, or of Section 2.5
      hereof,
      it is understood that the Company, the Trustee and the Holders, or any of them,
      may, without exonerating or releasing any Guarantor, give up, or modify or
      abstain from perfecting or taking advantage of any security for the Obligations
      and accept or make any compositions or arrangements, and realize upon any
      security for the Obligations when, and in such manner, as the Trustee and the
      Holders, or any of them, may deem expedient, consistent with the Indenture,
      all
      without notice to any Guarantor.

     

    SECTION
      2.5. Guaranty
      Unconditional.
      Each
      Guarantor acknowledges and agrees that no change in the nature or terms of
      the
      Obligations, the Indenture or the Guaranteed Securities, or other agreements,
      instruments or contracts evidencing, related to or attendant with the
      Obligations (including any novation), nor any determination of lack of
      enforceability thereof, shall discharge all or any part of the liabilities
      and
      obligations of such Guarantor pursuant to the Guaranty; it being the purpose
      and
      intent of the Guarantors, the Company, the Trustee and the Holders that the
      covenants, agreements and all liabilities and obligations of the Guarantors
      hereunder are absolute, unconditional and irrevocable under any and all
      circumstances. Without limiting the generality of the foregoing, each Guarantor
      agrees that until each and every one of the covenants and agreements of this
      Supplemental Indenture is fully performed, such Guarantor’s undertakings
      hereunder shall not be released, in whole or in part, by any action or thing
      which might, but for this Section 2.5,
      be
      deemed a legal or equitable discharge of a surety or guarantor, or by reason
      of
      any waiver or omission of the Company, the Trustee and the Holders, or any
      of
      them, or their failure to proceed promptly or otherwise, or by reason of any
      action taken or omitted by the Company, the Trustee and the Holders, or any
      of
      them, whether or not such action or failure to act varies or increases the
      risk
      of, or affects the rights or remedies of, such Guarantor or by reason of any
      further dealings among the Company, the Trustee and the Holders, or any of
      them,
      or any other guarantor or surety, and each Guarantor hereby expressly waives
      and
      surrenders any defense to its liability hereunder, or any right of counterclaim
      or offset of any nature or description which it may have or which may exist
      based upon, and shall be deemed to have consented to, any of the foregoing
      acts,
      omissions, things, agreements or waivers.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      2.6. Bankruptcy.
      Each
      Guarantor agrees that upon the bankruptcy or winding up or other distribution
      of
      assets of the Company or any Subsidiary of the Company (other than such
      Guarantor) or of any other Guarantor or surety or guarantor for the Obligations,
      the rights of the Trustee and the Holders, or any of them, against such
      Guarantor shall not be affected or impaired by the omission of the Trustee
      or
      the Holders, or any of them, to prove its or their claim, as appropriate, or
      to
      prove its or their full claim, as appropriate, and the Trustee and the Holders
      may prove such claims as they see fit and may refrain from proving any claim
      and
      in their respective discretion they may value as they see fit or refrain from
      valuing any security held by the Trustee and the Holders, or any of them,
      without in any way releasing, reducing or otherwise affecting the liability
      to
      the Trustee and the Holders of such Guarantor. If acceleration of the time
      for
      payment of any amount payable by the Company under the Indenture or the
      Guaranteed Securities of any series is stayed upon the insolvency, bankruptcy
      or
      reorganization of the Company, all such amounts otherwise subject to
      acceleration under the terms of the Indenture or the Guaranteed Securities
      of
      that series shall nonetheless be payable by each Guarantor hereunder forthwith
      on demand by the Trustee made at the written request of the Holders of not
      less
      than 25% in principal amount of the outstanding Guaranteed Securities of that
      series. If at any time any payment of the principal of or interest on any
      Guaranteed Security or any other amount payable by the Company under the
      Indenture is rescinded or must be otherwise restored or returned upon the
      insolvency, bankruptcy or reorganization of the Company, any other Guarantor
      or
      otherwise, the Guarantors’ obligations hereunder with respect to such payment
      shall be reinstated as though such payment had been due but not made at such
      time.

     

    SECTION
      2.7. Application
      of Payments.
      The
      Trustee hereby acknowledges and agrees, and each Holder shall be deemed to
      hereby acknowledge and agree, that to the extent any of the Existing Senior
      Obligations (as defined below) is then in default, any funds, payments, claims
      or distributions (the “Guaranty
      Proceeds”)
      actually received hereunder shall be made available for distribution equally
      and
      ratably (based on the principal amounts then outstanding) among (a) the holders
      of the Obligations and (b) the holders of the Existing Senior Obligations.
      For
      purposes hereof, “Existing
      Senior Obligations”
      shall
      mean Debt for borrowed money owed or guaranteed in connection with any unsecured
      and non-subordinated Debt for borrowed money of the Company or the Guarantor
      (aa) issued in offerings registered under the Securities Act of 1933, as amended
      or in placements exempt from registration pursuant to Rule 144A or Regulation
      S
      thereunder, or (bb) otherwise incurred, which is, in either case, outstanding
      on
      the date hereof or incurred hereafter in accordance with the Indenture
      (including, without limitation, the Debt of the Company incurred in connection
      with the Credit Agreement dated as of February 7, 2003, as amended or
      supplemented from time to time, among the Company, Wells Fargo Bank, National
      Association, as Administrative Agent under the Credit Agreement, and the lenders
      named therein, and certain other lenders party thereto from time to time).
      This
      Section 2.7
      shall
      not apply to any payments, funds, claims or distributions received by the
      Trustee or any Holder directly or indirectly from the Company or any other
      Person other than from the Guarantors hereunder. Each Guarantor acknowledges
      and
      agrees with the Trustee and each Holder as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a) to
      the
      extent any Guaranty Proceeds are distributed to the holders of the Existing
      Senior Obligations, the Obligations shall not be deemed reduced by any such
      distribution (other than a distribution made in respect of the Guaranteed
      Securities), and the Guarantors will continue to make payments pursuant to
      the
      Guaranty until such time as the Obligations have been paid in full after taking
      into effect any distributions of Guaranty Proceeds to the holders of Existing
      Senior Obligations;

     

    (b) nothing
      contained herein shall be deemed to limit, modify or alter the rights of the
      Trustee and the Holders or be deemed to subordinate the Obligations to the
      Existing Senior Obligations, nor give to any holder of Existing Senior
      Obligations any rights of subrogation;

     

    (c) nothing
      contained herein shall be deemed for the benefit of any holders of Existing
      Senior Obligations nor shall anything be construed to impose on the Trustee
      or
      any Holder any fiduciary duties, obligations or responsibilities to the holders
      of the Existing Senior Obligations; and

     

    (d) the
      Guaranty is for the sole benefit of the Trustee and the Holders and their
      respective successors and assigns, and any amounts received by the Trustee
      and
      the Holders, or any of them, from whatever source and applied toward the payment
      of the Obligations shall be applied in such order of application as is set
      forth
      in the Indenture, if any.

     

    SECTION
      2.8. Waivers
      by Guarantors.
      Each
      Guarantor hereby expressly waives: (a) notice of acceptance of the
      Guaranty, (b)  notice of the existence or creation of all or any of
      the
      Obligations, (c) presentment, demand, notice of dishonor, protest, and
      all
      other notices whatsoever, (d) all diligence in collection or protection
      of
      or realization upon the Obligations or any part thereof, any obligation
      hereunder, or any security for any of the foregoing and (e) all rights
      of
      subrogation, indemnification, contribution and reimbursement against the
      Company, all rights to enforce any remedy the Trustee and the Holders, or any
      of
      them, may have against the Company, and any benefit of, or right to participate
      in, any collateral or security now or hereinafter held by the Trustee and the
      Holders, or any of them, in respect of the Obligations, even upon payment in
      full of the Obligations. Any money received by any Guarantor in violation of
      this Section 2.8
      shall be
      held in trust by such Guarantor for the benefit of the Trustee and the Holders.
      If a claim is ever made upon the Trustee and the Holders, or any of them, for
      the repayment or recovery of any amount or amounts received by any of them
      in
      payment of any of the Obligations and the Trustee or the Holders repays all
      or
      part of such amount by reason of (a) any judgment, decree, or order of any
      court
      or administrative body having jurisdiction over the Trustee or the Holders
      or
      any of its or their property, or (b) any good faith settlement or compromise
      of
      any such claim effected by the Trustee or the Holders with any such claimant,
      including the Company, then in such event each Guarantor agrees that any such
      judgment, decree, order, settlement, or compromise shall be binding upon such
      Guarantor, notwithstanding any revocation hereof or the cancellation of any
      promissory note or other instrument evidencing any of the Obligations, and
      such
      Guarantor shall be and remain obligated to the Trustee and the Holders hereunder
      for the amount so repaid or recovered to the same extent as if such amount
      had
      never originally been received thereby.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      2.9. Remedies
      Cumulative.
      No
      delay by the Trustee and the Holders, or any of them, in the exercise of any
      right or remedy shall operate as a waiver thereof, and no single or partial
      exercise by the Trustee and the Holders, or any of them, of any right or remedy
      shall preclude other or further exercise thereof or the exercise of any other
      right or remedy. No action by the Trustee and the Holders, or any of them,
      permitted hereunder shall in any way impair or affect the Guaranty. For the
      purpose of the Guaranty, the Obligations shall include, without limitation,
      all
      Obligations of the Company to the Trustee and the Holders, notwithstanding
      any
      right or power of any third party, individually or in the name of the Company
      or
      any other Person, to assert any claim or defense as to the invalidity or
      unenforceability of any such Obligation, and no such claim or defense shall
      impair or affect the obligations of any Guarantor hereunder.

     

    SECTION
      2.10. Miscellaneous.
      The
      Guaranty is a guaranty of payment and not of collection. In the event of a
      demand upon any Guarantor under the Guaranty, such Guarantor shall be held
      and
      bound to the Trustee and the Holders directly as debtor in respect of the
      payment of the amounts hereby guaranteed. All reasonable costs and expenses,
      including attorneys’ fees and expenses, incurred by the Trustee and the Holders,
      or any of them, in obtaining performance of or collecting payments due under
      the
      Guaranty shall be deemed part of the Obligations guaranteed hereby. The
      provisions of the Guaranty are for the benefit of the Trustee and the Holders
      and may not be relied upon or enforced by any other Person and, as to
      enforcement, may only be enforced in accordance with this Supplemental Indenture
      and the Indenture.

     

    SECTION
      2.11. Benefit
      to Guarantor.
      Each
      Guarantor expressly represents and acknowledges that the issuance and sale
      of
      the Guaranteed Securities under the Indenture has been, and will be, of direct
      interest, benefit and advantage to such Guarantor.

     

    SECTION
      2.12. Solvency.
      Each
      Guarantor expressly represents and warrants that as of the date hereof and
      after
      giving effect to the transactions contemplated by the Indenture (a) the capital
      of such Guarantor will not be unreasonably small to conduct its business;
      (b) such Guarantor will not have incurred debts, or have intended to
      incur
      debts, beyond its ability to pay such debts as they mature; and (c) the present
      fair salable value of the assets of such Guarantor is greater than the amount
      that will be required to pay its probable liabilities (including debts) as
      they
      become absolute and matured. For purposes of this Section 2.12,
      “debt”
      means
      any liability on a claim, and “claim”
      means
      (x) the right to payment, whether or not such right is reduced to judgment,
      liquidated, unliquidated, fixed, contingent, matured, unmatured, undisputed,
      legal, equitable, secured or unsecured, or (y) the right to an equitable remedy
      for breach of performance if such breach gives rise to a right to payment,
      whether or not such right to an equitable remedy is reduced to judgment, fixed,
      contingent, matured, unmatured, undisputed, secured or
      unsecured.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      2.13. Additional
      Guarantors; Release of Guarantors.
      Any
      Subsidiary of the Company or any other entity may become a party to this
      Guaranty by executing and delivering a Supplemental Indenture providing for
      a
      guaranty of the Obligations under the terms of this Article Two, provided that
      such Supplemental Indenture conforms to the requirements of Article Nine of
      the
      Indenture. Under certain circumstances, a Guarantor may be released by the
      Trustee of its obligations under this Guaranty. Each other Guarantor consents
      and agrees to any such releases and agrees that no such release shall affect
      its
      obligations hereunder, except as to the Guarantor so released.

     

    SECTION
      2.14. Contribution
      Agreement.
      To the
      extent that any Guarantor shall, under the Guaranty, make a payment (a
“Guarantor
      Payment”)
      of a
      portion of the Obligations, then, without limiting its rights of subrogation
      against the Company, such Guarantor shall be entitled to contribution and
      indemnification from, and be reimbursed by, each of the other Guarantors and
      the
      Company (each of the foregoing referred to herein individually as a
“Contributing
      Party”
      and
      collectively as the “Contributing
      Parties”)
      in an
      amount, for each such Contributing Party, equal to a fraction of such Guarantor
      Payment, the numerator of which fraction is such Contributing Party’s Allocable
      Amount (as defined below) and the denominator of which is the sum of the
      Allocable Amounts of all of the Contributing Parties.

     

    As
      of any
      date of determination, the “Allocable
      Amount”
      of each
      Contributing Party shall be equal to the maximum amount of liability which
      could
      be asserted against such Contributing Party hereunder with respect to the
      applicable Guarantor Payment without (i) rendering such Contributing Party
      “insolvent” within the meaning of Section 101(31) of the Federal Bankruptcy Code
      (the “Bankruptcy
      Code”)
      or
      Section 2 of either the Uniform Fraudulent Transfer Act (the “UFTA”)
      or the
      Uniform Fraudulent Conveyance Act (the “UFCA”),
      (ii)
      leaving such Contributing Party with unreasonably small capital, within the
      meaning of Section 548 of the Bankruptcy Code or Section 4 of the UFTA or
      Section 5 of the UFCA, or (iii) leaving such Contributing Party unable to pay
      its debts as they become due within the meaning of Section 548 of the Bankruptcy
      Code or Section 4 of the UFTA or Section 6 of the UFCA or in any case, any
      successor to the Bankruptcy Code or any such section thereof or any successor
      to
      the UFTA or the UFCA or any such sections thereof.

     

    This
      Section 2.14
      is
      intended only to define the relative rights of the Contributing Parties, and
      nothing set forth in this Agreement is intended to or shall impair the
      obligations of the Guarantors, jointly and severally, to pay any amounts, as
      and
      when the same shall become due and payable in accordance with the terms of
      the
      Guaranty. 

     

    The
      parties hereto acknowledge that the rights of contribution and indemnification
      hereunder shall constitute assets in favor of each Guarantor to which such
      contribution and indemnification is owing.

     

    This
      Section 2.14
      shall
      continue in full force and effect and may not be terminated or otherwise revoked
      by any Contributing Party until all of the Guaranteed Obligations shall have
      been indefeasibly paid in full (in lawful money of the United States of America)
      and discharged and the Indenture and Guaranteed Securities shall have been
      terminated. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      2.15. NO
      NOVATION.
      THE
      PARTIES DO NOT INTEND THIS SUPPLEMENTAL INDENTURE, NOR THE TRANSACTIONS
      CONTEMPLATED HEREBY, TO BE, AND THIS SUPPLEMENTAL INDENTURE AND THE TRANSACTIONS
      CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OR WAIVER OF ANY
      OF
      THE OBLIGATIONS OWING BY ANY GUARANTOR OF ANY OBLIGATIONS UNDER OR IN CONNECTION
      WITH ANY GUARANTY IN EXISTENCE AS OF THE DATE OF THIS SUPPLEMENTAL
      INDENTURE.

     

    ARTICLE
      THREE

    MISCELLANEOUS
      PROVISIONS

     

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

     

    SECTION
      3.2. Governing
      Law.
      This
      Supplemental Indenture shall be governed by and construed in accordance with
      the
      laws of the State of Georgia. This Supplemental Indenture is subject to the
      provisions of the Trust Indenture Act of 1939, as amended and shall, to the
      extent applicable, be governed by such provisions.

     

    SECTION
      3.3. Counterparts.
      This
      Supplemental Indenture may be executed in any number of counterparts, each
      of
      which so executed shall be deemed to be an original, but all such counterparts
      shall together constitute but one and the same instrument.

     

    SECTION
      3.4. Notices.
      Any
      notice required or permitted hereunder or under the Indenture to be given or
      made to the Company or a Guarantor shall be given or made in writing and mailed,
      first class postage prepaid, (i) to the Company or (ii) to such Guarantor care
      of the Company, at the address of the Company set forth below its signature
      hereon, or at any other address previously furnished in writing to the Trustee
      and the Company by such Guarantor, with a copy to the Company given or made
      in
      accordance with Section 105 of the Indenture.

     

    SECTION
      3.5. Successors
      and Assigns.
      This
      Supplemental Indenture shall be binding upon the Company and each Guarantor,
      and
      their respective successors and assigns and inure to the benefit of the
      respective successors and assigns of the Trustee and the
      Holders.

     

    SECTION
      3.6. Time
      of the Essence.
      Time is
      of the essence with regard to the Company’s and the Guarantors’ performance of
      their respective obligations hereunder.

     

    SECTION
      3.7. Rights
      of Holders Limited.
      Notwithstanding anything herein to the contrary, the rights of Holders with
      respect to this Supplemental Indenture and the Guaranty shall be limited in
      the
      manner and to the extent the rights of Holders are limited under the Indenture
      with respect to the Indenture and the Securities. 

     

    SECTION
      3.8. Rights
      and Duties of Trustee.
      The
      rights and duties of the Trustee shall be determined by the express provisions
      of the Original Indenture and, except as expressly set forth in this
      Supplemental Indenture, nothing in this Supplemental Indenture shall in any
      way
      modify or otherwise affect the Trustee’s rights and duties thereunder. The
      Trustee makes no representation or warranty as to the validity of this
      Supplemental Indenture and, except insofar as relates to the validity hereof
      with respect to the Trustee specifically, the Trustee shall not be liable in
      connection therewith. The Trustee makes no representation or warranty, express
      or implied, as to the accuracy or completeness of any information contained
      in
      any offering or disclosure document related to the sale of the Securities,
      except for such information that specifically pertains to the Trustee itself,
      or
      any information incorporated therein by reference.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      3.9. Amendment
      and Waiver.
      This
      Supplemental Indenture shall not be amended unless such amendment (i) complies
      with the terms of the Indenture, (ii) is in writing and (iii) is executed by
      each of the parties hereto. No alteration or waiver of this Supplemental
      Indenture or of any of its terms, provisions or conditions shall be binding
      upon
      the parties against whom enforcement is sought unless made in writing and signed
      by an authorized officer of such party or its general partner, as
      applicable.

     

    SECTION
      3.10. Conflicts.
      In the
      event of any conflict between the terms of this Supplemental Indenture and
      the
      terms of the Indenture, the terms of this Supplemental Indenture shall
      control.

     

    [Signatures
      on Next Page]

     

     

     

     

     

    
 

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Supplemental Indenture to be duly executed
      by
      their respective officers hereunto duly authorized, all as of the day and year
      first written above.

     

    EQUITY
      ONE, INC., Issuer

     

    By:
      /s/ Chaim Katzman                    

    Name: 
      Chaim Katzman

    Title:   
      President

     

    Address:

    1600
      N.E.
      Miami Gardens Drive

    Miami,
      Florida 33179

    Attention:
      Chief Financial Officer

     

    GUARANTORS
      

     

    Equity
      One (Cambridge Project) LLC

    Equity
      One (Quincy Project) LLC

    Equity
      One (West Roxbury) LLC

    Equity
      One (Homestead Land) Inc.

    Equity
      One (Middle Beach) Inc.

     

    By: 
      /s/ Chaim Katzman                    

     
      Chaim Katzman

     
      President

     

    Equity
      (Texas) One Westgate Phase III LP

     

    By:
      Equity (Texas Holdings) One GP LLC, its general partner

     

     

    By: 
      /s/ Chaim Katzman                    

     
      Chaim Katzman

     
      President

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Equity
      (Texas) One Desoto LP

     

    By:
      Equity (Texas Holdings) One GP LLC, its general partner

     

     

    By: 
      /s/ Chaim Katzman                    

     
      Chaim Katzman

     
      President

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SUNTRUST
      BANK, as Trustee

     

    By:
      

    Name:
      

    Title:Exhibit 10.53

 

FORM OF

NON-EMPLOYEE DIRECTOR STOCK OPTION AGREEMENT

 

THIS
AGREEMENT, dated as of the date set forth on the signature page hereof and
identified as the “Grant Date” is made by and between Rockwood
Holdings, Inc., a Delaware corporation (hereinafter referred to as the “Company”),
and the individual whose name is set forth on the signature page hereof, a
member of the Board who is not an employee of the Company, hereinafter referred
to as the “Optionee.”  Capitalized
terms not otherwise defined herein shall have the same meanings as in the Plan
(as defined below).

 

WHEREAS, the Company desires to grant the Optionee shares of Common
Stock, pursuant to the terms and conditions of this agreement (the “Agreement”)
and the 2005 Amended and Restated Stock Purchase and Option Plan for the
Company and Subsidiaries (the “Plan”) (the terms of which are hereby
incorporated by reference and made a part of this Agreement); and

 

WHEREAS, the
Board has determined that it would be to the advantage and best interest of the
Company and its stockholders to grant the shares of Common Stock provided for
herein to the Optionee;

 

NOW,
THEREFORE, in consideration of the mutual covenants herein contained and other
good and valuable consideration, receipt of which is hereby acknowledged, the
parties hereto do hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Whenever the
following terms are used in this Agreement, they shall have the meaning
specified below unless the context clearly indicates to the contrary.

 

Section 1.1.   Option

 

“Option” shall
mean the Option to purchase shares of Common Stock granted under Section 2.1
of this Agreement.

 

Section 1.2.   Permanent Disability

 

“Permanent
Disability” shall mean the Optionee becomes physically or mentally
incapacitated and is therefore unable for a period of six (6) consecutive
months in any twelve (12) consecutive month period, to perform the Optionee’s
duties with the Company.  Any question as
to the existence of the Disability of the Optionee as to which the Optionee and
the Company cannot agree shall be determined in writing by a qualified
independent physician mutually acceptable to the Optionee and the Company.  If the Optionee and the Company cannot

 

 

 

 

agree as to a
qualified independent physician, each shall appoint such a physician and those
two physicians shall select a third who shall make such determination in
writing.  The determination of Permanent
Disability made in writing to the Company and the Optionee shall be final and
conclusive for all purposes of this Agreement.

 

ARTICLE II

 

GRANT OF
OPTION

 

Section 2.1.   Grant of Option

 

Subject to Section 2.4,
on and as of the date hereof, the Company irrevocably grants to the Optionee an
Option to purchase any part or all of an aggregate of the number of shares set
forth on the signature page hereof of its Common Stock upon the terms and
conditions set forth in this Agreement.

 

Section 2.2.   Exercise Price

 

Subject to Section 2.4,
the exercise price of the shares of Common Stock covered by the Option shall be
the price per share set forth on the signature page hereof as the “Exercise
Price” (which is the Fair Market Value per share of the Common Stock on the
Grant Date, determined without commission or other charge).

 

Section 2.3.   Optionee’s Continued Service on the
Board

 

Nothing
contained in this Agreement or in any other agreement entered into by the
Company and the Optionee guarantees that the Optionee will continue to serve as
a member of the Board for any specified period of time.

 

Section 2.4.   Adjustments to Option

 

Subject to
Sections 8 and 9 of the Plan, in the event that the outstanding shares of the
stock subject to an Option, are, from time to time, changed into or exchanged
for a different number or kind of shares of the Company or other securities of
the Company by reason of a merger, consolidation, recapitalization,
reclassification, stock split, stock dividend, combination of shares, or other
corporate event, the Committee shall make, as appropriate and equitable, an
adjustment in the number and kind of shares and/or the amount of consideration
as to which or for which, as the case may be, such Option, or portions thereof
then unexercised, shall be exercisable and/or, other than in an event that is a
Change of Control, shall pay to the Optionee a dividend in respect of the
shares of Common Stock subject to the Option, in any event in order to allow
the Optionee to participate in such corporate event in an equitable
manner.  Any such adjustment made by the
Committee shall be final and binding upon the Optionee, the Company and all
other interested persons.

 

 

ARTICLE III

 

PERIOD OF
EXERCISABILITY

 

Section 3.1.   Exercisability of Option

 

(a)                                  So long as the Optionee
continues to be a member of the Board, the Option shall become exercisable
pursuant to the following schedule:

 

	
  Date Option

  Becomes Exercisable

  	
   

  	
  Percentage of

  Shares As to Which

  Option Is Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  On or after
  the first anniversary of the Grant Date

  	
   

  	
  33 1/3%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  On or after
  the second anniversary of the Grant Date

  	
   

  	
  66 2/3%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  On or after
  the third anniversary of the Grant Date

  	
   

  	
  100%

  	
   

  

 

(b)                                 Notwithstanding the foregoing,
the Option shall become immediately exercisable (but only to the extent the
Option has not otherwise terminated or become exercisable) as to 100% of the
shares of Common Stock subject to such Option upon the first to occur of (i) a
Change of Control or (ii) the date on which the Optionee ceases to be a
member of the Board due to the Optionee’s death or Permanent Disability.

 

(c)                                  Notwithstanding the foregoing, no
Option shall become exercisable as to any additional shares of Common Stock
(which does not otherwise become exercisable in accordance with Section 3.1(a) or
(b) above) following the cessation of the Optionee’s membership on the
Board for any reason and any Option, which is unexercisable as of such date,
shall be immediately cancelled without payment therefor.

 

Section 3.2.   Expiration of Option

 

The Optionee
may not exercise any vested portion of the Option to any extent after the first
to occur of the following events:

 

(a)                                  The tenth anniversary of the
Grant Date; or

 

(b)                                 The first anniversary of the
date the Optionee ceases to be a member of the Board, if the Optionee’s
employment is terminated by reason of death, Permanent Disability or retirement
from the Board on or after age 62 (unless earlier terminated as provided in Section 3.2(d) below);
or

 

(c)                                  Immediately upon the date the
Optionee ceases to be a member of the Board for any reason other than as
provided in Section 3.2(b) above; or

 

 

(d)                                 If the Committee so determines
pursuant to Section 9 of the Plan, the effective date of either the merger
or consolidation of the Company into another Person, or the exchange or
acquisition by another Person of all or substantially all of the Company’s
assets or 80% or more of its then outstanding voting stock, or the merger,
consolidation, exchange, acquisition, recapitalization, reclassification,
liquidation or dissolution of the Company.  At least ten (10) days
prior to the effective date of such merger, consolidation, exchange,
acquisition, recapitalization, reclassification, liquidation or dissolution,
the Committee shall give the Optionee notice of such event and the opportunity
to exercise the Option in full (whether or not otherwise exercisable, and to the
extent that the Option has then neither been previously fully exercised nor
become unexercisable under this Section 3.2).

 

ARTICLE IV

 

EXERCISE OF
OPTION

 

Section 4.1.   Person Eligible to Exercise

 

During the
lifetime of the Optionee, only the Optionee may exercise an Option or any
portion thereof.  After the death of the
Optionee, any exercisable portion of an Option may, prior to the time when an
Option becomes unexercisable under Section 3.2, be exercised by his
personal representative or by any person empowered to do so under the Optionee’s
will or under the then applicable laws of descent and distribution.

 

Section 4.2.   Partial Exercise

 

Any
exercisable portion of an Option or the entire Option, if then wholly
exercisable, may be exercised in whole or in part at any time prior to the time
when the Option or portion thereof becomes unexercisable under Section 3.2;
provided, however, that any partial exercise shall be for whole
shares of Common Stock only.

 

Section 4.3.   Manner of Exercise

 

An Option, or
any exercisable portion thereof, may be exercised solely by delivering to the
Secretary or his office all of the following prior to the time when the Option
or such portion becomes unexercisable under Section 3.2:

 

(a)                                  Notice in writing signed by the
Optionee or the other person then entitled to exercise the Option or portion
thereof, stating that the Option or portion thereof is thereby exercised, such
notice complying with all applicable rules established by the Committee;

 

(b)                                 Full payment (in cash, by check
or by a combination thereof) of the Option exercise price for the shares
identified in Section 2.2 above, with respect to which such Option or
portion thereof is exercised;

 

(c)                                  A bona fide written
representation and agreement, in a form satisfactory to the Committee, signed
by the Optionee or other person then entitled to exercise such Option or
portion thereof, stating that the shares of Common Stock are being acquired for
his own account,

 

 

for investment and without any present intention of distributing or
reselling said shares or any of them except as may be permitted under the
Securities Act of 1933, as amended (the “Act”), and then applicable rules and
regulations thereunder, and that the Optionee or other person then entitled to
exercise such Option or portion thereof will indemnify the Company against and
hold it free and harmless from any loss, damage, expense or liability resulting
to the Company if any sale or distribution of the shares by such person is
contrary to the representation and agreement referred to above; provided,
however, that the Committee may, in its reasonable discretion, take whatever
additional actions it deems reasonably necessary to ensure the observance and
performance of such representation and agreement and to effect compliance with
the Act and any other federal or state securities laws or regulations;

 

(d)                                 Full payment to the Company of
any amounts which, under federal, state or local law, it is required to
withhold upon exercise of the Option; and

 

(e)                                  In the event the Option or
portion thereof shall be exercised pursuant to Section 4.1 by any person
or persons other than the Optionee, appropriate proof of the right of such
person or persons to exercise the option.

 

Without
limiting the generality of the foregoing, the Committee may require an opinion
of counsel acceptable to it to the effect that any subsequent transfer of
shares acquired on exercise of an Option does not violate the Act, and may
issue stop-transfer orders covering such shares.  Share certificates evidencing stock issued on
exercise of this Option shall bear an appropriate legend referring to the
provisions of subsection (c) above and the agreements herein. The
written representation and agreement referred to in subsection (c) above
shall, however, not be required if the shares to be issued pursuant to such
exercise have been registered under the Act, and such registration is then
effective in respect of such shares.

 

Section 4.4.   Conditions to Issuance of Stock
Certificates

 

The shares of
stock deliverable upon the exercise of an Option, or any portion thereof, may
be either previously authorized but unissued shares or issued shares, which
have then been reacquired by the Company. 
Such shares shall be fully paid and nonassessable.  The Company shall not be required to issue or
deliver any certificate or certificates for shares of stock purchased upon the
exercise of an Option or portion thereof prior to fulfillment of all of the
following conditions:

 

(a)                                  The obtaining of approval or
other clearance from any state or federal governmental agency which the
Committee shall, in its reasonable and good faith discretion, determine to be
necessary or advisable; and

 

(b)                                 The lapse of such reasonable
period of time following the exercise of the Option as the Committee may from
time to time establish for reasons of administrative convenience or as may
otherwise be required by applicable law.

 

Section 4.5.   Rights as Stockholder

 

Except as
otherwise provided in Section 2.4 of this Agreement, the holder of an
Option shall not be, nor have any of the rights or privileges of, a stockholder
of the Company in

 

 

respect of any shares purchasable upon the exercise of the Option or
any portion thereof unless and until a certificate or certificates representing
such shares shall have been issued by the Company to such holder or, if the
Common Stock is listed on a national securities exchange, a book entry
representing such shares has been made by the registrar of the Company.

 

ARTICLE V

 

MISCELLANEOUS

 

Section 5.1.   Administration

 

The Committee
shall have the power to interpret the Plan and this Agreement and to adopt such
rules for the administration, interpretation and application of the Plan
as are consistent therewith and to interpret or revoke any such rules.  All actions taken and all interpretations and
determinations made by the Committee shall be final and binding upon the
Optionee, the Company and all other interested persons.  No member of the Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan or the Option. 
In its absolute discretion, the Board may at any time and from time to
time exercise any and all rights and duties of the Committee under the Plan and
this Agreement.

 

Section 5.2.   Option Not Transferable

 

Neither the
Option nor any interest or right therein or part thereof shall be liable for
the debts, contracts or engagements of the Optionee or his successors in
interest or shall be subject to disposition by transfer, alienation,
anticipation, pledge, encumbrance, assignment or any other means whether such
disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings
(including bankruptcy), and any attempted disposition thereof shall be null and
void and of no effect; provided, however, that this Section 5.2 shall not
prevent transfers by will or by the applicable laws of descent and
distribution.

 

Section 5.3.   Notices

 

Any notice to
be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary, and any notice to be given to the
Optionee shall be addressed to him at the address given beneath his signature
hereto.  By a notice given pursuant to
this Section 5.3, either party may hereafter designate a different address
for notices to be given to him.  Any
notice, which is required to be given to the Optionee, shall, if the Optionee
is then deceased, be given to the Optionee’s personal representative if such
representative has previously informed the Company of his status and address by
written notice under this Section 5.3. 
Any notice shall have been deemed duly given when enclosed in a properly
sealed envelope or wrapper addressed as aforesaid, deposited (with postage
prepaid) in a post office or branch post office regularly maintained by the
United States Postal Service.

 

 

Section 5.4.   Titles; Pronouns

 

Titles are
provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.  The masculine pronoun shall include the
feminine and neuter, and the singular the plural, where the context so
indicates.

 

Section 5.5.   Applicability of Plan

 

The Option and
the shares issued to the Optionee upon exercise of the Option shall be subject
to all of the terms and provisions of the Plan, to the extent applicable to the
Option and such shares.  In the event of
any conflict between this Agreement and the Plan, the terms of the Plan shall
control.

 

Section 5.6.   Amendment

 

This Agreement
may be amended only by a writing executed by the parties hereto, which
specifically states that it is amending this Agreement.

 

Section 5.7.   Governing Law

 

The laws of the State of Delaware shall govern the interpretation,
validity and performance of the terms of this Agreement regardless of the law
that might be applied under principles of conflicts of laws.

 

Section 5.8.   Arbitration

 

In
the event of
any controversy among the parties hereto arising out of, or relating to, this
Agreement which cannot be settled amicably by the parties, such controversy
shall be finally, exclusively and conclusively settled by mandatory arbitration
conducted expeditiously in accordance with the American Arbitration Association
rules, by a single independent arbitrator. 
If the parties are unable to agree on the selection of an arbitrator,
then any party may petition the American Arbitration Association for the
appointment of the arbitrator, which appointment shall be made within (10) days
of the petition therefore.  Either the
Company or the Optionee may
institute such arbitration proceeding by giving written notice to the other
party.  The arbitrator in New York or New
Jersey shall hold a hearing within thirty (30) days of his or her
appointment.  In preparation for their
presentation at such hearing, each party may depose a maximum of four
people.  Each such deposition shall last
no more than (6) hours.  Each side
may file with the arbitrator one brief note in excess of thirty (30) pages,
excluding exhibits.  Each side shall have
no more that eight (8) hours to present its position to the
arbitrator.  The hearing shall be no more
that three (3) days in length.  The
decision of the arbitrator shall be final and binding upon all parties hereto
and shall be rendered pursuant to a written decision, which contains a detailed
recital of the arbitrator’s reasoning. 
Judgment upon the award rendered may be entered in any court having
jurisdiction thereof.

 

[Signatures on next page.]

 

 

[Signature page to Non-Employee Director Stock
Option Agreement]

 

IN WITNESS
WHEREOF, this Agreement has been executed and delivered by the parties hereto.

 

	
   

  	
  ROCKWOOD HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTIONEE:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME]

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  

 

 

	
  Grant Date:

  	
   

  	
                     ,
  2005

  
	
   

  	
   

  	
   

  
	
  Exercise
  Price: 

  	
   

  	
  $             

  
	
   

  	
   

  	
   

  
	
  Aggregate
  number of shares of Common Stock for which the Option granted hereunder is
  exercisable (100% of number of shares):

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