Document:

EXHIBIT 10.47

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), dated as of September 25,
2006 by and between Power2Ship, Inc., a Nevada Corporation, its affiliates and
assigns (the "Company"), and John M. Urbanowicz (the "Employee").

                              W I T N E S S E T H:

         WHEREAS, the Company, through its wholly owned subsidiary Freight Rate,
Inc., entered into an Employment Agreement with Employee dated January 1, 2003;
and

         WHEREAS, the Company and Employee mutually desire to terminate without
cause the aforementioned Employment Agreement; and

         WHEREAS, the Company desires to continue employing the Employee as its
Executive Vice President of Information Technology and the Employee desires to
continue to be so employed; and

         WHEREAS, Employee and the Company desire to set forth in writing all of
their respective duties, rights and obligations with respect to the Employee's
employment by the Company

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and obligations hereinafter set forth, the parties hereto, intending
to be legally bound, hereby agree as follows:

1.       Employment and Term. The Company hereby agrees to employ the Employee,
         and the Employee hereby accepts such continued employment by the
         Company, in the capacity and upon the terms and conditions hereinafter
         set forth. The term of employment under this Agreement shall be for the
         period commencing as of September 25, 2006 (the "Commencement Date")
         and ending on the second anniversary of the Commencement Date or
         September 25, 2008) unless earlier terminated as herein provided (the
         "Term of Employment"). Thereafter, this Agreement shall be renewed for
         successive one (1) year terms unless previously terminated pursuant to
         Section 5 herein or if either party elects to terminate his Agreement
         by written notice to the other party at least ninety (90) days prior to
         the expiration of the then-current Term of Employment. The last day of
         the Employee's Term of Employment shall be referred to in this
         Agreement as the "Date of Termination."

2.       Duties. During the Term of Employment, the Employee shall serve as the
         Company's Executive Vice President of Information Technology and shall
         assume those responsibilities customarily associated with and incident
         to the position of Executive Vice President of Information Technology.
         The Employee shall serve the Company faithfully, conscientiously and to
         the best of the Employee's ability and shall promote the interests and
         reputation of the Company. Unless prevented by sickness or disability,
         the Employee shall devote all of his time, attention, knowledge, energy
         and skills, during normal working hours, and at such other times as the
         Employee's duties may reasonably require, to the duties of the
         Employee's employment. The principal place of employment of the
         Employee shall be the Company's principal executive offices or at such
         other place(s) to be determined by the Company and Employee. The
         Employee acknowledges that in the course of his employment, Employee
         may be required, from time to time, to travel on behalf of the Company

<PAGE>
         at the Company's expense. The Employee's principal work place shall be
         in the suburbs of Chicago, Illinois. The Company shall not prohibit
         Employee from additional opportunities in his free time as long as
         there is not a conflict of interest now or in the future with
         Power2Ship and its affiliates. Employee must receive prior permission
         in writing from the Company's Chief Executive Officer to execute
         additional opportunities.

3.       Compensation and Benefits. As full and complete compensation for the
         Employee's execution and delivery of this Agreement and performance of
         any services hereunder, the Company shall pay, grant or provide the
         Employee with the following beginning upon the Commencement Date:

         (a)      Base Salary. The Company shall pay the Employee a base salary
                  (the "Base Salary") at an annual rate of no less than
                  $150,000. Base salary shall be payable at such times and in
                  accordance with the standard payroll practices of the Company,
                  but in no event less than twice per month.

         (b)      Options. Effective on the Commencement Date, the Employee
                  foregoes all unexpired common stock options that he, his
                  affiliates or assigns may have been granted by the Company and
                  he will be granted fully vested options to purchase 5,000,000
                  shares of common stock at a strike price of $0.025. These
                  options will expire five years after their grant date.

         (c)      Employee Benefits. The Company shall afford the Employee the
                  opportunity to participate during the Term of Employment in
                  any medical, dental, disability and life insurance,
                  retirement, savings and any other employee benefits plans or
                  programs (including perquisites) which the Company maintains
                  for its senior executives.

         (d)      Expenses. The Employee shall be entitled to reimbursement of
                  all reasonable business expenses (in accordance with the
                  Company's policies for its senior executives, as the same may
                  be amended from time to time in the Company's sole
                  discretion), within one week following the Employee's
                  submission of an appropriate expense report and related
                  receipts and/or vouchers to the Company.

         (e)      Vacations, Holidays or Temporary Leave. The Employee shall be
                  entitled to take vacations in accordance with the Company's
                  vacation policy for other senior executives. Such vacation(s)
                  shall be taken at such time or times, and as a whole or in
                  increments, as the Employee shall elect, consistent with the
                  reasonable needs of the Company's business. The Employee shall
                  further be entitled to the number of paid holidays and leaves
                  for illness or temporary disability in accordance with the
                  policies of the Company for its senior executives (as such
                  policies may be amended from time to time or terminated in the
                  Company's sole discretion).

4.       Restrictive Covenant; Protection of Confidential Information.

         (a)      The Employee recognizes and acknowledges that certain
                  confidential business and technical information used by the
                  Employee in connection with his duties hereunder including,
                  without limitation, certain confidential and proprietary
                  information relating to the design, development, construction

                                       2
<PAGE>
                  and marketing of Internet services, is a valuable, special and
                  unique asset of the Company, such information, subject to
                  Section 4(c) below, collectively being referred to as the
                  "Confidential Information". During and subsequent to the Term
                  of Employment, the Employee shall not (a) use Confidential
                  Information or any part thereof other than in connection with
                  his duties hereunder, (b) disclose such information to any
                  person, firm, corporation, association or other entity for any
                  purpose or reason unless directed to do so by the Board of
                  Directors. Notwithstanding the foregoing, the Employee is
                  being hired as an expert in the field of logistics and,
                  therefore, logistic practices are excluded from this
                  provision.

         (b)      During the Term of Employment and for all time thereafter, the
                  Employee shall not, directly or indirectly, furnish or make
                  accessible to any person, firm, corporation or other business
                  entity, whether or not he competes with the business of the
                  Company, any trade secret obtained by the Employee during his
                  employment by the Company which relates to the business
                  practices, methods, processes or other confidential or secret
                  aspects of the business of the Company without the prior
                  written consent from the Company (such information being
                  referred to as the "Company Confidential Information").

         (c)      Confidential Information and Company Confidential Information
                  shall not include any information or documents that (a) are,
                  or become, publicly available without breach by the Employee
                  of this Section 4, (b) the Employee receives from any third
                  party who, to the best of the Employee's knowledge upon
                  reasonable inquiry, is not in breach of an obligation of
                  confidence with the Company, or (c) is required to be
                  disclosed by law, statute, governmental or judicial
                  proceeding; provided, however, that in the event that the
                  Employee is requested by any governmental or judicial
                  authority to disclose any Confidential Information, the
                  Employee shall give the Company prompt notice of such request,
                  such that the Company may seek a protective order or other
                  appropriate relief, and in any such proceeding the Employee
                  shall disclose only so much of the Confidential Information as
                  is required to be disclosed.

         (d)      The Employee acknowledges that his services are of a special,
                  unique and extraordinary character and, his position with the
                  Company places him in a position of confidence and trust with
                  the clients and employees of the Company, and in connection
                  with his services to the Company, the Employee will have
                  access to Confidential Information vital to the Company's
                  business. The Employee further acknowledges that in view of
                  the nature of the business, in which the Company is engaged,
                  the foregoing confidentiality provision is reasonable and
                  necessary in order to protect the legitimate interests of the
                  Company and that violation thereof would result in irreparable
                  injury to the Company. Accordingly, the Employee consents and
                  agrees that if the Employee violates or threatens to violate
                  any of the provisions of Section 4 hereof, the Company would
                  sustain irreparable harm and, therefore, the Company will be
                  entitled to obtain from any court of competent jurisdiction,
                  without posting any bond or other security, preliminary and

                                       3
<PAGE>
                  permanent injunctive relief as well as damages and an
                  equitable accounting of all earnings, profits and other
                  benefits arising from such violation, which rights shall be
                  cumulative and in addition to any other rights or remedies in
                  law or equity to which the Company may be entitled.

5.       Termination of Employment:

         (a)      The Employee's employment with the Company shall terminate
                  upon the occurrence of any of the following events:

                  (i)   The Scheduled Date of Termination;

                  (ii)  The death of the Employee during the Term of Employment;

                  (iii) The Disability (as defined below) of Employee during the
                        Term of Employment; or

                  (iv)  Upon written notice to the Employee by the Company of
                        termination of his employment for Cause (as defined in
                        Section 5(c)).

                  (v)   Resignation without good reason

                  (vi)  Termination without cause (as defined below)

         (b)      For purposes of this Agreement, the "Disability" of the
                  Employee shall mean his inability, because of mental or
                  physical illness or incapacity, whether total or partial, to
                  perform his full time duties under this Agreement with
                  reasonable accommodation for a period aggregating 90 days out
                  of any 12-month period under circumstances where, in the
                  opinion of a qualified physician reasonably acceptable to the
                  Company, it is reasonably certain that the Employee will not
                  be able to resume his duties on a regular full time basis
                  within 30 days of the date the Employee receives notice of
                  termination for Disability.

         (c)      For purposes of this Agreement, the term "Cause" shall mean
                  the Employee's i) conviction or entry of a plea of guilty or
                  nolo contendere, with respect to any felony; (ii) commission
                  of any act of willful misconduct, gross negligence, fraud or
                  dishonesty that materially affects the Company as stated in
                  the Power2Ship Employee Handbook Code of Conduct; or (iii)
                  violation of any material term of this Agreement or any
                  material written policy of the Company, provided that the
                  Company first deliver written notice thereof to the Employee
                  and the Employee shall not have cured such violation within
                  thirty (30) days after receipt of such written notice.

6.       Payments upon Termination of Employment:

         (a)      Death or Disability: If the Employee's employment hereunder is
                  terminated due to the Employee's death or disability pursuant
                  to Sections 5(a)(ii)(iii), the Company shall pay or provide to
                  the Employee, his designated beneficiary or his estate (i) all
                  Base Salary pursuant to Section 3(a) hereof, any expenses
                  pursuant to 3(c), any accrued vacation pursuant to Section
                  3(e) and any bonus pursuant to Section 3(f) hereof, in each
                  case which has been earned but unpaid, or incurred but not

                                       4
<PAGE>
                  reimbursed, as of the Date of Termination; and (ii) any
                  benefits to which the Employee may be entitled under any
                  employee benefits plan or program pursuant to Section 3(b)
                  hereof in which he is a participant in accordance with the
                  terms of such plan or program up to and including the Date of
                  Termination. Should the Company wish to purchase insurance to
                  cover the costs associated with the Employee's termination of
                  employment pursuant to Sections 5(a) (i), (ii), (iii), the
                  Employee agrees to execute any and all necessary documents
                  necessary to effectuate said insurance.

         (b)      Termination for Cause, Resignation Without Good Reason, or
                  Expiration of Term of Employment: If the Employee's employment
                  hereunder is terminated due to the termination of the
                  Employee's employment by the Company for "Cause" pursuant to
                  Section 5(a)(iv) or due to the Employee's resignation Without
                  Good Reason pursuant, the Company shall pay or provide to the
                  Employee (i) all base salary pursuant to Section 3(a) hereof
                  and any vacation pay pursuant to Section 3(e) hereof, in each
                  case which has been earned but unpaid as of the Date of
                  Termination and (ii) any benefits to which the Employee may be
                  entitled under any employee benefits plan or program pursuant
                  to Section 3(b) hereof in which he is a participant in
                  accordance with the terms of such plan or program up to and
                  including the Date of Termination.

         (c)      Termination Without Cause: If the Employee's employment
                  hereunder is terminated due to the termination of the
                  Employee's employment by the Company Without Cause the
                  Employee shall be entitled to all compensation for the term of
                  the Contract to be paid in a lump sum payment within ten (10)
                  days of termination.

         (d)      No Other Payments. Employee shall not be entitled to receive
                  any other payments or benefits from the Company due to the
                  termination of his employment, including but not limited to,
                  any employee benefits under any of the Company's employee
                  benefits plans or programs (other than at the Employee's
                  expense under the Consolidated Omnibus Budget Reconciliation
                  Act of 1985 or pursuant to the terms of any pension plan which
                  the Company may have in effect from time to time). Upon
                  termination, all unvested options provided to Employee shall
                  be deemed null and void unless under the circumstances defined
                  in Section 5(a) (vi) or 5(d) (iii). Unvested options shall not
                  vest after Employee's receipt of a notice of termination
                  pursuant to Section 5(a)(iv) hereof provided, however, if such
                  notice was provided pursuant to Section 5(c)(iii) hereof and
                  Employee cures such breach within the applicable time period,
                  Employee's options may vest subsequent thereto.

7.       No Conflicting Agreements; Indemnification:

         (a)      The Employee hereby represents and warrants that he is not a
                  party to any agreement, or non-competition or other covenant
                  or restriction contained in any agreement, commitment,
                  arrangement or understanding (whether oral or written), which
                  would in any way conflict with or limit his ability to
                  commence work on the first day of the Term of Employment or
                  would otherwise limit his ability to perform all
                  responsibilities in accordance with the terms and subject to
                  the conditions of this Agreement.
                                       5
<PAGE>
         (b)      The Employee agrees that the compensation provided for in
                  Section 3 represents the minimum compensation to be paid to
                  Employee in respect of the services performed or to be
                  performed for the Company by Employee.

8.       Deductions and Withholding. The Employee agrees that the Company shall
         withhold from any and all compensation required to be paid to the
         Employee pursuant to this Agreement all federal, state, local and/or
         other taxes which the Company determines are required to be withheld in
         accordance with applicable statutes and/or regulations from time to
         time in effect and all amounts required to be deducted in respect of
         the Employee's coverage under applicable employee benefit plans.

9.       Entire Agreement. This Agreement embodies the entire agreement of the
         parties with respect to the Employee's employment and supersedes any
         other prior oral or written agreements between the Employee and the
         Company, including but not limited to, the Original Employment
         Agreement. This Agreement may not be changed or terminated orally but
         only by an agreement in writing signed by the parties hereto.

10.      Waiver. The waiver by the Company or a breach of any provision of this
         Agreement by the Employee shall not operate or be construed as a waiver
         of any subsequent breach by the Employee. The waiver by the Employee of
         a breach of any provision of this Agreement by the Company shall not
         operate or be construed as a waiver of any subsequent breach by the
         Company.

11.      Governing Law. This Agreement shall be subject to, and governed by, the
         laws of the State of Florida applicable to contracts made and to be
         performed in the State of Florida, regardless of where the Employee is
         in fact required to work. Arbitration clause would be appropriate

12.      Jurisdiction. Any legal suit, action or proceeding against any party
         hereto arising out of or relating to this Agreement shall be instituted
         in a federal or state court in the State of Florida, and each party
         hereto waives any objection which it may now or hereafter have to the
         laying of venue of any such suit, action or proceeding and each party
         hereto irrevocably submits to the jurisdiction of any such court in any
         suit, action or proceeding.

13.      Assignability. The obligations of the Employee may not be delegated
         and, except as expressly provided in Section 5 relating to the
         designation of beneficiaries, the Employee may not, without the
         Company's written consent thereto, assign, transfer, convey, pledge,
         encumber, hypothecate or otherwise dispose of this Agreement or any
         interest therein. Any such attempted delegation or disposition shall be
         null and void and without effect. The Company and the Employee agree
         that this Agreement and all of the Company's rights and obligations
         hereunder may be assigned or transferred by the Company to, and may be
         assumed by, may become binding upon, and may inure to the benefit of,
         any successor to the Company. The term "successor" shall mean, with
         respect to the Company, any other corporation or other entity that by
         merger, consolidation or purchase, acquires all or a material part of
         the assets of the Company. Any assignment by the Company of its rights
         and obligations hereunder to any successor shall not be considered a
         termination of employment for purposes of this Agreement.

14.      Severability. If any provision of this Agreement as applied to either
         party or to any circumstances shall be adjudged by a court of competent
         jurisdiction to be void or unenforceable, the same shall in no way

                                       6
<PAGE>
         affect any other provision of this Agreement or the validity or
         enforceability of this Agreement.

15.      Notices. All notices to the Employee hereunder shall be in writing and
         shall be delivered personally or sent by registered or certified mail,
         return receipt

                                   John M. Urbanowicz
                                   {Employee has requested
                                   that his personal address
                                   remain confidential}

16.      All notices to the Company hereunder shall be in writing and shall
         be delivered personally or sent by registered or certified mail, return
         receipt requested, to:

                                   Power2Ship, Inc.
                                   903 Clint Moore Rd.
                                   Boca Raton, FL 33487

         Either party may change the address to which notices shall be sent by
         sending written notice of such change of address to the other party.

17.      Section Headings. The section headings contained in this Agreement are
         for reference purposes only and shall not affect in any way the meaning
         or interpretation of this Agreement.

18.      Counterparts. This Agreement may be executed in one or more
         counterparts, each of which shall be deemed to be an original, but all
         of which taken together shall constitute one and the same instrument.

19.      Attorneys' Fees. In the event that either party hereto commences
         litigation against the other to enforce such party's rights hereunder,
         the prevailing party shall be entitled to recover all costs, expenses
         and fees, including reasonable attorneys' fees.

20.      Neutral Construction. Each party to this Agreement was represented by
         counsel, or had the opportunity to consult with counsel. No party may
         rely on any drafts of this Agreement in any interpretation of the
         Agreement. Each party to this Agreement has reviewed this Agreement and
         has participated in its drafting and, accordingly, no party shall
         attempt to invoke the normal rule of construction to the effect that
         ambiguities are to be resolved against the drafting party in any
         interpretation of this Agreement.

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

                                  POWER2SHIP, INC.,
                                  a Nevada Corporation

                                  By: /s/ David S. Brooks
                                      -------------------
                                       David Brooks, Chief Executive Officer

                                  EMPLOYEE

                                  By: /s/ John M. Urbanowicz
                                      ----------------------
                                      John M. Urbanowicz
                                       7Exhibit
4.1

 

No. A-1

	
  CUSIP
  NO. 40414L AA7

  	
  PRINCIPAL AMOUNT

  

 

 

$500,000,000

 

HCP,
INC.

 

6.70%
SENIOR NOTES DUE 2018

 

THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING SET FORTH IN THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY.
THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND, UNLESS AND UNTIL IT IS EXCHANGED FOR
SECURITIES IN DEFINITIVE FORM AS AFORESAID, MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ITS NOMINEE TO A SUCCESSOR DEPOSITARY OR ITS NOMINEE.

 

UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”),
55 WATER STREET, NEW YORK, NEW YORK TO THE ISSUER OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH NOTE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO., OR SUCH OTHER NAME AS 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, SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

 

HCP, INC., a Maryland
corporation (the “Company”, which term shall include any successor under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to CEDE & CO., or registered assigns, the principal sum of Five Hundred
Million Dollars ($500,000,000) on January 30, 2018, and to pay interest thereon
from October 15, 2007 or from the most recent interest payment date on which
interest has been paid or duly provided for, semi-annually in arrears on January
30 and July 30 (each, an “Interest Payment Date”) of each year (or if such date
is not a Business Day, on the next Business Day thereafter; no interest will
accrue on such payment for the period from and after such Interest Payment Date
to the date of such payment on the next succeeding Business Day), commencing January
30, 2008, at the rate of 6.70% per annum, until the entire principal amount
hereof is paid or duly provided for. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
the Indenture, be paid to the Holder in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the Regular Record
Date for such interest, which shall be the date that is 15 calendar days prior
to such Interest Payment Date, whether or not a Business Day. 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 Holder
in whose name this Note (or one or more predecessor Notes) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders
of Notes of this series not less 

 

 

than 10 days prior to such
Special Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Notes may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in the Indenture. Interest will be computed on the
basis of a 360-day year of twelve 30-day months. Payments of principal,
premium, if any, and interest in respect of this Note will be made by the
Company in immediately available funds.

 

Payment of the principal of
and interest on this Note shall be payable at the Corporate Trust Office of The
Bank of New York Trust Company, N.A., located at 101 Barclay Street, Floor 8 W,
New York, New York 10286 or at such other office or agency of the Company
maintained for that purpose in The City of New York, in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that, at the option of
the Company, interest may be paid by check mailed to the address of the Person
entitled thereto as such address shall appear on the Security Register or by
transfer to an account maintained by the payee with a bank located in the
United States; and, provided, further, that so long as this Note is registered
in the name of DTC or its nominee, principal and interest payments will be paid
to DTC or its nominee, as the Holder, by wire transfer in same-day funds.

 

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

 

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

 

2

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed this 15th day of October,
2007.

 

	
   

  	
  HCP, Inc.,

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark A. Wallace

  	
   

  
	
   

  	
  Name:

  	
  Mark A. Wallace

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Financial

  
	
   

  	
   

  	
  Officer and Treasurer

  
	
   

  	
   

  
	
  Attest:

  
	
   

  
	
   

  
	
  By:

  	
  /s/
  Edward J. Henning

  	
   

  
	
  Name:

  	
  Edward
  J. Henning

  
	
  Title:

  	
  Executive
  Vice President, General Counsel

  
	
   

  	
  and
  Corporate Secretary

  
						

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION:

 

This is one of the Notes of
the series designated herein referred to in the within-mentioned Indenture.

 

The Bank of New York Trust
Company, N.A., as Trustee

 

	
  By:

  	
  /s/ Raymond Torres

  	
   

  
	
  Authorized Signatory

  
	
   

  
	
  Dated:
  October 15, 2007

  

 

This Note is one of a duly
authorized issue of securities (herein called the “Notes”) of HCP, Inc., a
Maryland Corporation, and any of its successors and assigns (the “Company”),
issued as a series of securities under an indenture dated as of September 1,
1993 (the “Indenture”), between the Company and The Bank of New York Trust
Company, N.A., as successor trustee to The Bank of New York (the “Trustee,”
which term includes any successor trustee under the Indenture with respect to
the Notes), to which Indenture and all indentures supplemental thereto,
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Notes and of the terms upon which the Notes are, and are to be,
authenticated and delivered. This Note is one of a duly authorized series of
securities of the Company designated as the “6.70% Senior Notes Due 2018,”
originally limited (subject to exceptions provided in the Indenture) in
aggregate principal amount to $600,000,000; however, from time to time, without
giving notice or seeking consent of the Holders of the Notes, the Company may
issue additional Notes of this series having the same ranking, interest rate
and maturity and other terms as this Note. All terms used in this Note which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

 

If an Event of Default with
respect to the Notes shall occur and be continuing, the principal of the Notes
may be declared due and payable in the manner and with the effect provided in
the Indenture.

 

The Notes are not subject to
any sinking fund.

 

The Notes may be redeemed,
in whole or in part, at any time at the option of the Company at a Redemption
Price equal to the greater of: (1) 100% of the principal amount of the Notes to
be redeemed, or (2) the sum of the present values of the remaining scheduled
payments of principal and interest thereon (exclusive of interest accrued to
the Redemption Date) discounted to the Redemption Date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the applicable
treasury rate (as defined below) plus 35 basis points, plus accrued and unpaid
interest on the amount being redeemed to the Redemption Date.

 

“Treasury rate” means, with
respect to any Redemption Date:

 

• the yield, under the heading which represents
the average for the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Board of Governors of the Federal
Reserve System and which establishes yields on actively traded U.S. Treasury 

 

 

securities adjusted to
constant maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the comparable treasury issue (if no maturity is
within three months before or after the remaining life (as defined below),
yields for the two published maturities most closely corresponding to the
comparable treasury issue will be determined and the treasury rate will be interpolated
or extrapolated from such yields on a straight line basis, rounding to the
nearest month); or

 

• if such release (or any successor release) is
not published during the week preceding the calculation date or does not
contain such yields, the rate per annum equal to the semi-annual equivalent
yield to maturity of the comparable treasury issue, calculated using a price
for the comparable treasury issue (expressed as a percentage of its principal
amount) equal to the comparable treasury price for such Redemption Date.

 

The treasury rate will be
calculated by the Independent Investment Banker on the third Business Day
preceding the date fixed for redemption.

 

“Comparable treasury issue”
means the U.S. Treasury security selected by an Independent Investment Banker
as having a maturity comparable to the remaining term (“remaining life”) of the
Notes to be redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such
Notes.

 

“Comparable treasury price” means (1) the average of
five Reference Treasury Dealer quotations for such Redemption Date, after excluding the highest and
lowest Reference Treasury Dealer Quotations, or (2) if the Independent
Investment Banker obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations.

 

“Independent Investment
Banker” means one of the Reference Treasury Dealers appointed by the Company to
act as the “Independent Investment Banker.”

 

“Reference Treasury Dealers”
means each of Barclays Capital Inc., UBS Securities LLC and Banc of America
Securities LLC and their respective successors and two other nationally
recognized investment banking firms that are Primary Treasury Dealers specified
from time to time by the Company; provided, however, that if any of the
foregoing shall cease to be a primary US Government securities dealer in the
United States (a “Primary Treasury Dealer”), the Company shall substitute
therefor another nationally recognized investment banking firm that is a
Primary Treasury Dealer.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the comparable treasury
issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Independent Investment Banker at 5:00 p.m., New York City time,
on the third Business Day preceding such redemption date.

 

The Company may redeem the
Notes in increments of $1,000. If the Company redeems less than all of the
Notes, the Trustee will select the Notes to be redeemed using a method it
considers fair and appropriate. The Company will cause notices of redemption to
be mailed by first-class mail at least 30 but not more than 60 days before the
Redemption Date to each Holder of Notes to be redeemed at its registered
address.

 

 

If this Note is to be redeemed
in part only, the notice of redemption that relates to this Note will state the
portion of the principal amount thereof to be redeemed. The Company will issue
a Note in principal amount equal to the unredeemed portion of this Note in the
name of the Holder hereof upon cancellation of the original Note. Any Notes
called for redemption will become due on the Redemption Date. On or after the
Redemption Date, interest will cease to accrue on the Notes or portions of them
called for redemption.

 

If a Change of Control
Repurchase Event (defined below) occurs, unless the Company has previously
exercised its right to otherwise redeem the Notes as described above, the
Company will make an offer to each Holder of Notes to repurchase all or any
part (in multiples of $1,000 principal amount) of that Holder’s Notes at a
repurchase price in cash equal to 101% of the aggregate principal amount of
Notes repurchased plus any accrued and unpaid interest on the Notes repurchased
to the date of repurchase. Within 30 days following any Change of Control
Repurchase Event or, at the Company’s option, prior to any Change of Control
(defined below), but after the public announcement of the Change of Control,
the Company will mail a notice to each Holder describing the transaction or
transactions that constitute or may constitute the Change of Control Repurchase
Event and offering to repurchase Notes on the payment date specified in the
notice, which date will be no earlier than 30 days and no later than 60 days
from the date such notice is mailed. The notice shall, if mailed prior to the
date of consummation of the Change of Control, state that the offer to
repurchase is conditioned on the Change of Control Repurchase Event occurring
on or prior to the payment date specified in the notice.

 

The Company will comply with
the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as
amended, (the “Exchange Act”), and any other securities laws and regulations to
the extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control Repurchase Event. To
the extent that the provisions of any securities laws or regulations conflict
with the Change of Control Repurchase Event provisions of the Notes, the
Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under the Change of Control
Repurchase Event provisions of the Notes by virtue of such conflict.

 

On the Change of Control
Repurchase Event payment date, the Company will, to the extent lawful:

 

(1)               accept for payment all Notes or portions of Notes
properly tendered pursuant to its offer;

 

(2)               deposit with the paying agent an amount equal to the
aggregate purchase price in respect of all Notes or portions of Notes properly
tendered; and

 

(3)               deliver or cause to be delivered to the Trustee the
Notes properly accepted, together with an officers’ certificate stating the
aggregate principal amount of Notes being purchased by the Company.

 

The Paying Agent will
promptly pay, from funds deposited by the Company for such purpose, to each
Holder of Notes properly tendered the purchase price for the Notes, and the
Trustee will promptly authenticate and mail (or cause to be transferred by
book-entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of any Notes surrendered.

 

 

The Company will not be
required to make an offer to repurchase the Notes upon a Change of Control
Repurchase Event if a third party makes an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the
Company and such third party purchases all Notes properly tendered and not
withdrawn under its offer.

 

For purposes of the Notes:

 

“Change of Control Repurchase
Event” means the occurrence of both a Change of Control and a Below Investment
Grade Rating Event.

 

“Change of Control” means
the occurrence of any of the following:

 

(1)               the direct or indirect sale, transfer, conveyance or
other disposition (other than by way of merger or consolidation), in one or a
series of related transactions, of all or substantially all of the Company’s
properties or assets and those of its subsidiaries, taken as a whole, to any “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), other than the
Company or one of its wholly owned subsidiaries; or

 

(2)               the adoption of a plan relating to the liquidation or
dissolution of the Company; or

 

(3)               the consummation of any transaction (including,
without limitation, any merger or consolidation) the result of which is that
any “person” (as that term is used in Section 13(d)(3) of the Exchange Act),
other than the Company or one of its wholly owned subsidiaries (provided that
this exception does not include any transaction in which public stockholders
cease to own Voting Stock entitling public stockholders to elect the same
percentage of the members of the Company’s board of directors as public
stockholders are entitled to elect on October 10, 2007), becomes the beneficial
owner, directly or indirectly, of more than 50% of the Company’s Voting Stock,
measured by voting power rather than number of shares; or

 

(4)               the first day on which a majority of the members of
the Company’s board of directors are not Continuing Directors.

 

Notwithstanding the
foregoing, a transaction effected to create a holding company for the Company
will not be deemed to involve a Change of Control if (1) pursuant to such
transaction the Company becomes a wholly owned subsidiary of such holding
company and (2) the holders of the Voting Stock of such holding company
immediately following such transaction are the same as the holders of the
Company’s Voting Stock immediately prior to such transaction.

 

“Continuing Directors”
means, as of any date of determination, any member of the Company’s board of
directors who:

 

(1)               was a member of such board of directors on October 15,
2007; or

 

(2)               was nominated for election or elected to the Company’s
board of directors with the approval of a majority of the Continuing Directors
who were members of the Company’s board of directors at the time of such
nomination or election.

 

“Voting Stock” as applied to
stock of any person, means shares, interests, participations or other
equivalents in the equity interest (however designated) in such person having
ordinary voting power for the election of the directors (or the equivalent) of
such person, other than shares, interests, participations or other equivalents
having such power only by reason of the occurrence of a contingency.

 

 

“Below Investment Grade
Rating Event” means the Notes are rated below Investment Grade by both Rating
Agencies on any date from the date of the public notice of an arrangement that
could result in a Change of Control until the end of the 60-day period
following public notice of the occurrence of a Change of Control (which period
shall be extended so long as the rating of the Notes is under publicly
announced consideration for possible downgrade by either of the Rating
Agencies); provided that a Below Investment Grade Rating Event otherwise
arising by virtue of a particular reduction in rating shall not be deemed to
have occurred in respect of a particular Change of Control (and thus shall not
be deemed a Below Investment Grade Rating Event for purposes of the definition
of Change of Control Repurchase Event) if the Rating Agencies making the
reduction in rating to which this definition would otherwise apply do not
announce or publicly confirm or inform the Trustee in writing at its request
that the reduction was the result, in whole or in part, of any event or
circumstance comprised of or arising as a result of, or in respect of, the
applicable Change of Control (whether or not the applicable Change of Control
shall have occurred at the time of the Below Investment Grade Rating Event).

 

“Investment Grade” means a
rating of Baa3 or better by Moody’s (or its equivalent under any successor
rating categories of Moody’s) and BBB- or better by S&P (or its equivalent
under any successor rating categories of S&P) (or, in each case, if such
Rating Agency ceases to rate the Notes for reasons outside of the Company’s
control, the equivalent investment grade credit rating from any Rating Agency
selected by the Company as a replacement Rating Agency).

 

“Rating Agency” means:

 

(1)               each of Moody’s and S&P; and

 

(2)               if either of Moody’s or S&P ceases to rate the
Notes or fails to make a rating of the Notes publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange
Act selected by the Company as a replacement agency for Moody’s or S&P, or
both, as the case may be.

 

“Moody’s” means Moody’s
Investors Service, Inc.

 

“S&P” means Standard
& Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

 

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

 

 

The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Notes under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Notes. The Indenture also
contains provisions permitting the Holders of not less than a majority in
principal amount of the Notes at the time Outstanding, on behalf of the Holders
of all Notes, to waive compliance by the Company with certain provisions of the
Indenture. Furthermore, provisions in the Indenture permit the Holders of not
less than a majority of the aggregate principal amount of the Outstanding Notes
to waive, in certain circumstances, on behalf of all Holders of the Notes,
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note
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 Note.

 

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

 

As provided in the Indenture
and subject to certain limitations set forth therein, the transfer of this Note
may be registered on the Security Register upon surrender of this Note for
registration of transfer at the office or agency of the Company maintained for
the purpose in any place where the principal of and interest on this Note are
payable, duly endorsed by or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Security Registrar duly executed by
the Holder hereof or by his attorney duly authorized in writing, and thereupon
one or more new Notes of this series, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or
transferees.

 

This Note may be
transferred, in whole but not in part, only to a nominee of DTC, or by a
nominee of DTC to DTC, or to a successor to DTC for such Global Security
selected or approved by the Company or to a nominee of such successor to DTC.
If at any time DTC notifies the Company that it is unwilling or unable to
continue as depositary for the Notes or if at any time DTC ceases to be a
clearing agency registered under the Exchange Act, if so required by applicable
law or regulation, the Company shall appoint a successor depositary with respect
to the Notes. If (a) a successor depositary for the Notes is not appointed by
the Company within 90 days after the Company receives such notice or becomes
aware of such unwillingness, inability or ineligibility, (b) an Event of
Default has occurred and is continuing and the beneficial owners representing a
majority in principal amount of the Notes advise DTC to cease acting as
depositary for such Notes, or (c) the Company, in its sole discretion,
determines at any time that all Notes (but not less than all) of this series
shall no longer be represented by such Global Note or Notes, then the Company
shall execute, and the Trustee shall authenticate and deliver, definitive Notes
of like series, rank, tenor and terms in definitive form in an aggregate principal
amount equal to the principal amount of such Note or Notes.

 

 

The Notes are issuable only
in registered form without coupons and may be sold in denominations of $1,000
and any integral multiple thereof. As provided in the Indenture and subject to
certain limitations therein set forth, the Notes of this series are
exchangeable for a like aggregate principal amount of Notes of this series in
authorized denominations as requested by the Holders surrendering the same. No
service charge shall be made for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.

 

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

 

The Indenture contains
provisions whereby (i) the Indenture shall cease to be of further effect
with respect to the Notes (subject to the survival of certain provisions
thereof), (ii) the Company may be discharged from its obligations with
respect to the Notes (subject to certain exceptions), or (iii) the Company
may be released from its obligations under specified covenants and agreements
in the Indenture, in each case if the Company satisfies certain conditions provided
in the Indenture.

 

No recourse shall be had for
the payment of the principal of or interest on this Note, or for any claim
based hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against any past, present or
future stockholder, employee, officer or director, as such, of the Company or
of any successor, either directly or through the Company or any successor,
whether by virtue of any constitution, statute or rule of law or by the
enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.

 

THE INDENTURE AND THE NOTE
SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF
CALIFORNIA, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS
OF SAID STATE.

 

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

 

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

 

 

ASSIGNMENT
FORM

FOR VALUE RECEIVED, THE UNDERSIGNED HEREBY

SELLS, ASSIGNS AND TRANSFERS TO

 

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

 

	
   

  
	
   

  
	
   

  

 

(Please Print or Typewrite
Name and Address

including Zip Code of Assignee)

 

	
   

  
	
  the within Note of

  	
   

  	
  and

  	
   

  	
  hereby does irrevocably
  constitute and appoint

  
	
   

  

 

Attorney to transfer said
Note on the books of the within-named Company with full power of substitution
in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  

 

 

NOTICE: The signature to
this assignment must correspond with the name as it appears on the first page
of the within Note in every particular, without alteration or enlargement or
any change whatever.

 

 

No. A-2

	
  CUSIP NO. 40414L AA7

  	
  PRINCIPAL AMOUNT

  

 

 

$100,000,000

 

HCP,
INC.

 

6.70%
SENIOR NOTES DUE 2018

 

THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING SET FORTH IN THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY.
THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND, UNLESS AND UNTIL IT IS EXCHANGED FOR SECURITIES
IN DEFINITIVE FORM AS AFORESAID, MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY
TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR
ITS NOMINEE TO A SUCCESSOR DEPOSITARY OR ITS NOMINEE.

 

UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(“DTC”), 55 WATER STREET, NEW YORK, NEW YORK TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS 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, SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

HCP, INC., a Maryland
corporation (the “Company”, which term shall include any successor under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to CEDE & CO., or registered assigns, the principal sum of One Hundred
Million Dollars ($100,000,000) on January 30, 2018, and to pay interest thereon
from October 15, 2007 or from the most recent interest payment date on which
interest has been paid or duly provided for, semi-annually in arrears on
January 30 and July 30 (each, an “Interest Payment Date”) of each year (or if
such date is not a Business Day, on the next Business Day thereafter; no
interest will accrue on such payment for the period from and after such
Interest Payment Date to the date of such payment on the next succeeding
Business Day), commencing January 30, 2008, at the rate of 6.70% per annum,
until the entire principal amount hereof is paid or duly provided for. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Holder in whose
name this Note (or one or more predecessor Notes) is registered at the close of
business on the Regular Record Date for such interest, which shall be the date
that is 15 calendar days prior to such Interest Payment Date, whether or not a
Business Day. 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 Holder in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Notes of this series not less 

 

 

than 10 days prior to such
Special Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Notes may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in the Indenture. Interest will be computed on the
basis of a 360-day year of twelve 30-day months. Payments of principal,
premium, if any, and interest in respect of this Note will be made by the
Company in immediately available funds.

 

Payment of the principal of
and interest on this Note shall be payable at the Corporate Trust Office of The
Bank of New York Trust Company, N.A., located at 101 Barclay Street, Floor 8 W,
New York, New York 10286 or at such other office or agency of the Company
maintained for that purpose in The City of New York, in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that, at the option of
the Company, interest may be paid by check mailed to the address of the Person
entitled thereto as such address shall appear on the Security Register or by
transfer to an account maintained by the payee with a bank located in the
United States; and, provided, further, that so long as this Note is registered
in the name of DTC or its nominee, principal and interest payments will be paid
to DTC or its nominee, as the Holder, by wire transfer in same-day funds.

 

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

 

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

 

2

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed this 15th day of
October, 2007.

 

	
   

  	
  HCP, Inc.,

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark A. Wallace

  	
   

  
	
   

  	
  Name:

  	
  Mark A. Wallace

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Financial

  
	
   

  	
   

  	
  Officer and Treasurer

  
	
   

  	
   

  
	
  Attest:

  
	
   

  
	
   

  
	
  By:

  	
  /s/
  Edward J. Henning

  	
   

  
	
  Name:

  	
  Edward
  J. Henning

  
	
  Title:

  	
  Executive
  Vice President, General Counsel

  
	
   

  	
  and
  Corporate Secretary

  
						

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

 

This is one of the Notes of
the series designated herein referred to in the within-mentioned Indenture.

 

The Bank of New York Trust
Company, N.A., as Trustee

 

	
  By:

  	
  /s/ Raymond Torres

  	
   

  
	
  Authorized Signatory

  
	
   

  
	
  Dated:
  October 15, 2007

  

 

This Note is one of a duly
authorized issue of securities (herein called the “Notes”) of HCP, Inc., a
Maryland Corporation, and any of its successors and assigns (the “Company”),
issued as a series of securities under an indenture dated as of September 1,
1993 (the “Indenture”), between the Company and The Bank of New York Trust
Company, N.A., as successor trustee to The Bank of New York (the “Trustee,”
which term includes any successor trustee under the Indenture with respect to
the Notes), to which Indenture and all indentures supplemental thereto,
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Notes and of the terms upon which the Notes are, and are to be,
authenticated and delivered. This Note is one of a duly authorized series of
securities of the Company designated as the “6.70% Senior Notes Due 2018,”
originally limited (subject to exceptions provided in the Indenture) in
aggregate principal amount to $600,000,000; however, from time to time, without
giving notice or seeking consent of the Holders of the Notes, the Company may
issue additional Notes of this series having the same ranking, interest rate
and maturity and other terms as this Note. All terms used in this Note which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

 

If an Event of Default with
respect to the Notes shall occur and be continuing, the principal of the Notes
may be declared due and payable in the manner and with the effect provided in the
Indenture.

 

The Notes are not subject to
any sinking fund.

 

The Notes may be redeemed,
in whole or in part, at any time at the option of the Company at a Redemption
Price equal to the greater of: (1) 100% of the principal amount of the Notes to
be redeemed, or (2) the sum of the present values of the remaining scheduled
payments of principal and interest thereon (exclusive of interest accrued to
the Redemption Date) discounted to the Redemption Date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the applicable
treasury rate (as defined below) plus 35 basis points, plus accrued and unpaid
interest on the amount being redeemed to the Redemption Date.

 

“Treasury rate” means, with
respect to any Redemption Date:

 

• the yield, under the heading which represents
the average for the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Board of Governors of the Federal
Reserve System and which establishes yields on actively traded U.S. Treasury 

 

 

securities adjusted to
constant maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the comparable treasury issue (if no maturity is
within three months before or after the remaining life (as defined below),
yields for the two published maturities most closely corresponding to the
comparable treasury issue will be determined and the treasury rate will be
interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month); or

 

• if such release (or any successor release) is
not published during the week preceding the calculation date or does not
contain such yields, the rate per annum equal to the semi-annual equivalent
yield to maturity of the comparable treasury issue, calculated using a price
for the comparable treasury issue (expressed as a percentage of its principal
amount) equal to the comparable treasury price for such Redemption Date.

 

The treasury rate will be
calculated by the Independent Investment Banker on the third Business Day
preceding the date fixed for redemption.

 

“Comparable treasury issue”
means the U.S. Treasury security selected by an Independent Investment Banker
as having a maturity comparable to the remaining term (“remaining life”) of the
Notes to be redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such
Notes.

 

“Comparable treasury price” means (1) the average of
five Reference Treasury Dealer quotations for such Redemption Date, after excluding the highest and
lowest Reference Treasury Dealer Quotations, or (2) if the Independent
Investment Banker obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations.

 

“Independent Investment
Banker” means one of the Reference Treasury Dealers appointed by the Company to
act as the “Independent Investment Banker.”

 

“Reference Treasury Dealers”
means each of Barclays Capital Inc., UBS Securities LLC and Banc of America
Securities LLC and their respective successors and two other nationally
recognized investment banking firms that are Primary Treasury Dealers specified
from time to time by the Company; provided, however, that if any of the
foregoing shall cease to be a primary US Government securities dealer in the
United States (a “Primary Treasury Dealer”), the Company shall substitute
therefor another nationally recognized investment banking firm that is a
Primary Treasury Dealer.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the comparable treasury
issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Independent Investment Banker at 5:00 p.m., New York City
time, on the third Business Day preceding such redemption date.

 

The Company may redeem the
Notes in increments of $1,000. If the Company redeems less than all of the
Notes, the Trustee will select the Notes to be redeemed using a method it
considers fair and appropriate. The Company will cause notices of redemption to
be mailed by first-class mail at least 30 but not more than 60 days before the
Redemption Date to each Holder of Notes to be redeemed at its registered
address.

 

 

If this Note is to be
redeemed in part only, the notice of redemption that relates to this Note will
state the portion of the principal amount thereof to be redeemed. The Company
will issue a Note in principal amount equal to the unredeemed portion of this
Note in the name of the Holder hereof upon cancellation of the original Note.
Any Notes called for redemption will become due on the Redemption Date. On or
after the Redemption Date, interest will cease to accrue on the Notes or
portions of them called for redemption.

 

If a Change of Control Repurchase
Event (defined below) occurs, unless the Company has previously exercised its
right to otherwise redeem the Notes as described above, the Company will make
an offer to each Holder of Notes to repurchase all or any part (in multiples of
$1,000 principal amount) of that Holder’s Notes at a repurchase price in cash
equal to 101% of the aggregate principal amount of Notes repurchased plus any
accrued and unpaid interest on the Notes repurchased to the date of repurchase.
Within 30 days following any Change of Control Repurchase Event or, at the
Company’s option, prior to any Change of Control (defined below), but after the
public announcement of the Change of Control, the Company will mail a notice to
each Holder describing the transaction or transactions that constitute or may
constitute the Change of Control Repurchase Event and offering to repurchase
Notes on the payment date specified in the notice, which date will be no
earlier than 30 days and no later than 60 days from the date such notice is mailed.
The notice shall, if mailed prior to the date of consummation of the Change of
Control, state that the offer to repurchase is conditioned on the Change of
Control Repurchase Event occurring on or prior to the payment date specified in
the notice.

 

The Company will comply with
the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as
amended, (the “Exchange Act”), and any other securities laws and regulations to
the extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control Repurchase Event. To
the extent that the provisions of any securities laws or regulations conflict
with the Change of Control Repurchase Event provisions of the Notes, the
Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under the Change of Control
Repurchase Event provisions of the Notes by virtue of such conflict.

 

On the Change of Control
Repurchase Event payment date, the Company will, to the extent lawful:

 

(1)               accept for payment all Notes or portions of Notes
properly tendered pursuant to its offer;

 

(2)               deposit with the paying agent an amount equal to the
aggregate purchase price in respect of all Notes or portions of Notes properly
tendered; and

 

(3)               deliver or cause to be delivered to the Trustee the
Notes properly accepted, together with an officers’ certificate stating the
aggregate principal amount of Notes being purchased by the Company.

 

The Paying Agent will
promptly pay, from funds deposited by the Company for such purpose, to each
Holder of Notes properly tendered the purchase price for the Notes, and the
Trustee will promptly authenticate and mail (or cause to be transferred by
book-entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of any Notes surrendered.

 

 

The Company will not be
required to make an offer to repurchase the Notes upon a Change of Control
Repurchase Event if a third party makes an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the
Company and such third party purchases all Notes properly tendered and not
withdrawn under its offer.

 

For purposes of the Notes:

 

“Change of Control
Repurchase Event” means the occurrence of both a Change of Control and a Below
Investment Grade Rating Event.

 

“Change of Control” means
the occurrence of any of the following:

 

(1)               the direct or indirect sale, transfer, conveyance or
other disposition (other than by way of merger or consolidation), in one or a
series of related transactions, of all or substantially all of the Company’s
properties or assets and those of its subsidiaries, taken as a whole, to any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), other
than the Company or one of its wholly owned subsidiaries; or

 

(2)               the adoption of a plan relating to the liquidation or
dissolution of the Company; or

 

(3)               the consummation of any transaction (including,
without limitation, any merger or consolidation) the result of which is that
any “person” (as that term is used in Section 13(d)(3) of the Exchange Act),
other than the Company or one of its wholly owned subsidiaries (provided that
this exception does not include any transaction in which public stockholders
cease to own Voting Stock entitling public stockholders to elect the same
percentage of the members of the Company’s board of directors as public
stockholders are entitled to elect on October 10, 2007), becomes the beneficial
owner, directly or indirectly, of more than 50% of the Company’s Voting Stock,
measured by voting power rather than number of shares; or

 

(4)               the first day on which a majority of the members of
the Company’s board of directors are not Continuing Directors.

 

Notwithstanding the
foregoing, a transaction effected to create a holding company for the Company
will not be deemed to involve a Change of Control if (1) pursuant to such
transaction the Company becomes a wholly owned subsidiary of such holding
company and (2) the holders of the Voting Stock of such holding company
immediately following such transaction are the same as the holders of the
Company’s Voting Stock immediately prior to such transaction.

 

“Continuing Directors”
means, as of any date of determination, any member of the Company’s board of
directors who:

 

(1)               was a member of such board of directors on October 15,
2007; or

 

(2)               was nominated for election or elected to the Company’s
board of directors with the approval of a majority of the Continuing Directors
who were members of the Company’s board of directors at the time of such
nomination or election.

 

“Voting Stock” as applied to
stock of any person, means shares, interests, participations or other
equivalents in the equity interest (however designated) in such person having
ordinary voting power for the election of the directors (or the equivalent) of
such person, other than shares, interests, participations or other equivalents
having such power only by reason of the occurrence of a contingency.

 

 

“Below Investment Grade
Rating Event” means the Notes are rated below Investment Grade by both Rating
Agencies on any date from the date of the public notice of an arrangement that
could result in a Change of Control until the end of the 60-day period following
public notice of the occurrence of a Change of Control (which period shall be
extended so long as the rating of the Notes is under publicly announced
consideration for possible downgrade by either of the Rating Agencies);
provided that a Below Investment Grade Rating Event otherwise arising by virtue
of a particular reduction in rating shall not be deemed to have occurred in
respect of a particular Change of Control (and thus shall not be deemed a Below
Investment Grade Rating Event for purposes of the definition of Change of
Control Repurchase Event) if the Rating Agencies making the reduction in rating
to which this definition would otherwise apply do not announce or publicly
confirm or inform the Trustee in writing at its request that the reduction was
the result, in whole or in part, of any event or circumstance comprised of or
arising as a result of, or in respect of, the applicable Change of Control
(whether or not the applicable Change of Control shall have occurred at the
time of the Below Investment Grade Rating Event).

 

“Investment Grade” means a
rating of Baa3 or better by Moody’s (or its equivalent under any successor
rating categories of Moody’s) and BBB- or better by S&P (or its equivalent
under any successor rating categories of S&P) (or, in each case, if such
Rating Agency ceases to rate the Notes for reasons outside of the Company’s
control, the equivalent investment grade credit rating from any Rating Agency
selected by the Company as a replacement Rating Agency).

 

“Rating Agency” means:

 

(1)               each of Moody’s and S&P; and

 

(2)               if either of Moody’s or S&P ceases to rate the
Notes or fails to make a rating of the Notes publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange
Act selected by the Company as a replacement agency for Moody’s or S&P, or
both, as the case may be.

 

“Moody’s” means Moody’s
Investors Service, Inc.

 

“S&P” means Standard
& Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

 

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

 

 

The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Notes under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in aggregate
principal amount of the Outstanding Notes. The Indenture also contains
provisions permitting the Holders of not less than a majority in principal
amount of the Notes at the time Outstanding, on behalf of the Holders of all
Notes, to waive compliance by the Company with certain provisions of the
Indenture. Furthermore, provisions in the Indenture permit the Holders of not
less than a majority of the aggregate principal amount of the Outstanding Notes
to waive, in certain circumstances, on behalf of all Holders of the Notes,
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note
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 Note.

 

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

 

As provided in the Indenture
and subject to certain limitations set forth therein, the transfer of this Note
may be registered on the Security Register upon surrender of this Note for
registration of transfer at the office or agency of the Company maintained for
the purpose in any place where the principal of and interest on this Note are
payable, duly endorsed by or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Security Registrar duly executed by
the Holder hereof or by his attorney duly authorized in writing, and thereupon
one or more new Notes of this series, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or
transferees.

 

This Note may be
transferred, in whole but not in part, only to a nominee of DTC, or by a
nominee of DTC to DTC, or to a successor to DTC for such Global Security
selected or approved by the Company or to a nominee of such successor to DTC.
If at any time DTC notifies the Company that it is unwilling or unable to
continue as depositary for the Notes or if at any time DTC ceases to be a
clearing agency registered under the Exchange Act, if so required by applicable
law or regulation, the Company shall appoint a successor depositary with
respect to the Notes. If (a) a successor depositary for the Notes is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such unwillingness, inability or ineligibility, (b) an
Event of Default has occurred and is continuing and the beneficial owners
representing a majority in principal amount of the Notes advise DTC to cease
acting as depositary for such Notes, or (c) the Company, in its sole
discretion, determines at any time that all Notes (but not less than all) of this
series shall no longer be represented by such Global Note or Notes, then the
Company shall execute, and the Trustee shall authenticate and deliver,
definitive Notes of like series, rank, tenor and terms in definitive form in an
aggregate principal amount equal to the principal amount of such Note or Notes.

 

 

The Notes are issuable only
in registered form without coupons and may be sold in denominations of $1,000
and any integral multiple thereof. As provided in the Indenture and subject to
certain limitations therein set forth, the Notes of this series are
exchangeable for a like aggregate principal amount of Notes of this series in
authorized denominations as requested by the Holders surrendering the same. No
service charge shall be made for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.

 

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

 

The Indenture contains
provisions whereby (i) the Indenture shall cease to be of further effect
with respect to the Notes (subject to the survival of certain provisions
thereof), (ii) the Company may be discharged from its obligations with
respect to the Notes (subject to certain exceptions), or (iii) the Company
may be released from its obligations under specified covenants and agreements
in the Indenture, in each case if the Company satisfies certain conditions
provided in the Indenture.

 

No recourse shall be had for
the payment of the principal of or interest on this Note, or for any claim
based hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against any past, present or
future stockholder, employee, officer or director, as such, of the Company or
of any successor, either directly or through the Company or any successor,
whether by virtue of any constitution, statute or rule of law or by the
enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.

 

THE INDENTURE AND THE NOTE
SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF
CALIFORNIA, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS
OF SAID STATE.

 

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

 

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

 

 

ASSIGNMENT
FORM

FOR VALUE RECEIVED, THE UNDERSIGNED HEREBY

SELLS, ASSIGNS AND TRANSFERS TO

 

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

 

	
   

  
	
   

  
	
   

  

 

(Please Print or Typewrite
Name and Address

including Zip Code of Assignee)

 

	
   

  
	
  the within
  Note of

  	
   

  	
  and

  	
   

  	
  hereby does
  irrevocably constitute and appoint

  
	
   

  

 

Attorney to transfer said
Note on the books of the within-named Company with full power of substitution
in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  

 

NOTICE: The signature to
this assignment must correspond with the name as it appears on the first page
of the within Note in every particular, without alteration or enlargement or
any change whatever.

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