As filed with the Securities and Exchange Commission
on September 27, 2023
Registration No. 333-
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
ALPINE INCOME PROPERTY TRUST, INC.
(Exact name of registrant as specified in its charter)
| Maryland |
84-2769895 |
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification Number.) |
|
369 N. New York Avenue, Suite 201
Winter Park, Florida 32789
Tel: (407) 904-3324 |
| (Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices) |
Daniel E. Smith, Esq.
Senior Vice President, General Counsel and Corporate Secretary
Alpine Income Property Trust, Inc.
1140 N. Williamson Blvd., Suite 140
Daytona Beach, Florida 32114
Tel: (386) 274-2202
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Copy to:
Zachary A. Swartz, Esq.
Vinson & Elkins L.L.P.
901 East Byrd Street, Suite 1500
Richmond, VA 23219
Tel: (804) 327-6324
Approximate date of commencement of proposed sale
to the public: From time to time after this registration statement becomes effective.
If
the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please
check the following box: ¨
If any of the securities being registered on this
Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities
offered only in connection with dividend or interest reinvestment plans, check the following box: x
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act,
please check the following box and list the Securities Act registration statement number of the earlier effective registration statement
for the same offering. ¨
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box
and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨
If
this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become
effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. ¨
If
this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register
additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following
box. ¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.
See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,”
and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer ¨ |
Accelerated Filer ¨ |
| Non-Accelerated Filer x |
Smaller Reporting Company x |
| |
Emerging Growth Company x |
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. x
The registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said
Section 8(a), may determine.
The information in this prospectus is not
complete and may be changed. No person may sell these securities until the registration statement filed with the Securities and Exchange
Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities
in any state where an offer or sale is not permitted.
Subject
to Completion, Dated September 27, 2023
PROSPECTUS
$350,000,000
Common Stock
Preferred Stock
Debt Securities
Warrants
Rights
Units
We may offer, issue and sell from time to time,
together or separately, the following securities, at an aggregate public offering price that will not exceed $350,000,000:
We will provide the specific terms of any securities
we may offer in supplements to this prospectus. You should read this prospectus and any applicable prospectus supplement carefully before
you invest. This prospectus may not be used to offer and sell any securities unless accompanied by a prospectus supplement describing
the amount of and terms of the offering of those securities.
We may offer and sell these securities to or through
one or more underwriters, dealers or agents, or directly to purchasers on a continuous or delayed basis. We reserve the sole right to
accept, and together with any underwriters, dealers and agents, reserve the right to reject, in whole or in part, any proposed purchase
of securities. The names of any underwriters, dealers or agents involved in the sale of any securities, the specific manner in which they
may be offered and any applicable commissions or discounts will be set forth in the prospectus supplement covering the sales of those
securities.
We elected to be taxed as a real estate investment
trust (“REIT”) for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2019. To assist
us in complying with certain U.S. federal income tax requirements applicable to REITs, among other purposes, our charter generally limits
beneficial and constructive ownership by any person to no more than 9.8% in value or in number of shares, whichever is more restrictive,
of the outstanding shares of any class or series of our capital stock. In addition, our charter contains various other restrictions on
the ownership and transfer of our common stock, $0.01 par value per share (“common stock”). See “Certain Provisions
of Maryland Law and of Our Charter and Bylaws—Restrictions on Ownership and Transfer.”
Our
common stock is listed on the New York Stock Exchange, or the NYSE, under the symbol “PINE.” The last reported sale price
of our common stock on the NYSE on September 26, 2023 was $16.07 per share. We have not yet determined whether any of the other
securities that may be offered by this prospectus will be listed on any exchange, inter-dealer quotation system or over-the-counter system.
If we decide to seek a listing for any of those securities, that will be disclosed in a prospectus supplement.
Investing in our securities involves risks.
Before making a decision to invest in our securities, you should carefully consider the risks described under the section entitled “Risk Factors” on page 5 of this prospectus and included in our most recent Annual Report on Form 10-K, subsequent Quarterly
Reports on Form 10-Q and other documents filed by us with the Securities and Exchange Commission, including any risks described in
any accompanying prospectus supplement.
Neither the U.S. Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this prospectus or any accompanying
prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is ,
2023
TABLE OF CONTENTS
Page
Unless otherwise indicated or unless the context
requires otherwise, all references in this prospectus or any accompanying prospectus supplement to “we,” “our,”
“us” and “our company” refer to Alpine Income Property Trust, Inc., a Maryland corporation (the “Company”),
together with its consolidated subsidiaries, including: (1) Alpine Income Property OP, LP (the “Operating Partnership”),
a Delaware limited partnership, and (2) Alpine Income Property GP, LLC (the “GP”), a Delaware limited liability company
that is our wholly-owned subsidiary and the sole general partner of our Operating Partnership.
You should rely only on the information contained
in or incorporated by reference into this prospectus or any accompanying prospectus supplement. We have not authorized anyone to provide
you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. You should
assume that the information contained in this prospectus and any accompanying prospectus supplement, as well as information that we have
previously filed with the U.S. Securities and Exchange Commission (the “SEC”), and incorporated by reference, is accurate
only as of the date of the applicable document. Our business, financial condition, results of operations and prospects may have changed
since those dates.
The distribution of this prospectus and any accompanying
prospectus supplement and the offering of our securities in certain jurisdictions may be restricted by law. If you possess this prospectus
or any accompanying prospectus supplement, you should find out about and observe these restrictions. This prospectus and any accompanying
prospectus supplement are not an offer to sell our securities and are not soliciting an offer to buy our securities in any jurisdiction
where the offer or sale is not permitted or where the person making the offer or sale is not qualified to do so or to any person to whom
it is not permitted to make such offer or sale. See “Plan of Distribution” in this prospectus.
About
This Prospectus
This prospectus is part of a “shelf”
registration statement that we have filed with the SEC. By using a shelf registration statement, we may sell, at any time and from time
to time, in one or more offerings, any combination of the securities described in this prospectus. The exhibits to our registration statement
and documents incorporated by reference contain the full text of certain contracts and other important documents that we have summarized
in this prospectus or that we may summarize in a prospectus supplement. Since these summaries may not contain all the information that
you may find important in deciding whether to purchase the securities we offer, you should review the full text of these documents. The
registration statement and the exhibits and other documents can be obtained from the SEC as indicated under the sections entitled “Where
You Can Find More Information” and “Incorporation by Reference of Information Filed with the SEC.”
This prospectus only provides you with a general
description of the securities we may offer, which is not meant to be a complete description of each security. Each time we offer securities,
we will provide a prospectus supplement that contains specific information about the terms of the offering and the securities being offered.
The prospectus supplement may also add, update or change information contained in this prospectus. If there is any inconsistency between
the information in this prospectus and any prospectus supplement, you should rely on the information in the prospectus supplement. You
should read carefully both this prospectus and any prospectus supplement together with the additional information described under the
sections entitled “Where You Can Find More Information” and “Incorporation by Reference of Information Filed with the
SEC.”
Incorporation
by Reference of Information Filed With the SEC
The SEC allows us to “incorporate by reference”
the information we file with the SEC, which means that we can disclose important information to you by referring to those documents. The
information incorporated by reference is an important part of this prospectus and any accompanying prospectus supplement. Any statement
contained in a document which is incorporated by reference into this prospectus and any accompanying prospectus supplement is automatically
updated and superseded if information contained in this prospectus or any accompanying prospectus supplement, or information that we later
file with the SEC, modifies or replaces this information. We incorporate by reference the following documents that we have filed with
the SEC:
| · | our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2023 and June 30, 2023, filed with the
SEC on April 20, 2023 and July 20, 2023, respectively; |
We are also incorporating by reference additional
documents that we file with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”): (i) after the date of the initial registration statement of which this prospectus is a part and
prior to effectiveness of the registration statement and (ii) after the date of this prospectus and prior to the termination of the
offering of the securities described in this prospectus. We are not, however, incorporating by reference any documents or portions thereof,
whether specifically listed above or filed in the future, that are not deemed “filed” with the SEC, including any information
furnished pursuant to Items 2.02 or 7.01 of Form 8-K or certain exhibits furnished pursuant to Item 9.01 of Form 8-K.
To receive a free copy of any of the documents
incorporated by reference into this prospectus, including exhibits, if they are specifically incorporated by reference into the documents,
call us at (407) 904-3324 or submit a written request to Alpine Income Property Trust, Inc., 369 N. New York Avenue, Suite 201,
Winter Park, Florida 32789.
Where
You Can Find More Information
We file annual, quarterly and current reports,
proxy statements and other information with the SEC. The SEC maintains a website that contains reports, proxy and information statements
and other information regarding registrants that file electronically with the SEC at http://www.sec.gov. In addition, we maintain
a website that contains information about us at http://www.alpinereit.com. The information found on, or otherwise accessible through,
our website is not incorporated by reference into, and does not form a part of, this prospectus or any accompanying prospectus supplement
or any other report or document we file with or furnish to the SEC.
We have filed with the SEC a registration statement
on Form S-3, of which this prospectus is a part, including exhibits, schedules and amendments filed with, or incorporated by reference
into, the registration statement, under the Securities Act of 1933, as amended (the “Securities Act”), with respect to the
securities registered hereby. This prospectus and any accompanying prospectus supplement do not contain all of the information set forth
in the registration statement and exhibits and schedules to the registration statement. For further information with respect to our company
and the securities registered hereby, reference is made to the registration statement, including the exhibits to the registration statement.
Statements contained in this prospectus and any accompanying prospectus supplement as to the contents of any contract or other document
referred to in, or incorporated by reference into, this prospectus and any accompanying prospectus supplement are not necessarily complete
and, where such contract or other document is an exhibit to the registration statement, each statement is qualified in all respects by
the exhibit to which the reference relates. The registration statement of which this prospectus is a part is available to you on the SEC’s
website.
Cautionary
Note Regarding Forward-Looking Statements
When used in this prospectus and any accompanying
prospectus supplement, including the documents that we have incorporated by reference, in future filings with the SEC or in press releases
or other written or oral communications, statements which are not historical in nature, including those containing words such as “believe,”
“expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,”
“should,” “may” or the negative of these words and phrases or similar words or phrases which are predictions of
or indicate future events or trends and which do not relate solely to historical matters, are intended to identify “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities
Act and Section 21E of the Exchange Act). In particular, statements pertaining to our trends, liquidity and capital resources, among
others, contain forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions.
Forward-looking statements involve numerous risks
and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions,
data or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions
and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual
results and future events to differ materially from those set forth or contemplated in the forward-looking statements:
| · | the factors identified under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K
for the fiscal year ended December 31, 2022, and other risks and uncertainties discussed herein and from time to time in our filings
with the SEC; |
| · | general business and economic conditions, including unstable macroeconomic conditions due to, among other things, the war in Ukraine,
the COVID-19 pandemic, inflation, regional bank failures and rising interest rates; |
| · | continued volatility and uncertainty in the credit markets and broader financial markets; |
| · | adverse changes in the real estate and real estate capital markets; |
| · | other risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters,
illiquidity of real estate investments and potential damages from natural disasters; |
| · | availability of suitable properties to acquire and our ability to acquire and lease those properties on favorable terms; |
| · | ability to renew leases, lease vacant space or re-lease space as existing leases expire or are terminated; |
| · | the degree and nature of our competition; |
| · | our failure to generate sufficient cash flows to service our outstanding indebtedness; |
| · | our ability to satisfy the covenants in our existing and any future debt agreements, including our $250 million senior unsecured
revolving credit facility (the “Revolver”), our $100 million term loan facility maturing in January 2027 (the “2027
Term Loan” and, together with the Revolver, the “Credit Facility”), and our $100 million term loan facility maturing
in May 2026 (the “2026 Term Loan”); |
| · | fluctuations in interest rates; |
| · | our failure to effectively hedge our interest rate risk; |
| · | the occurrence of natural disasters, acts of violence or other events impacting our properties or our business generally; |
| · | an epidemic or pandemic (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state
and local governments, agencies, law enforcement and/or health authorities implement to address it, which may significantly disrupt or
prevent us or our tenants from operating our business or their businesses in the ordinary course for an extended period; |
| · | the effects of climate change; |
| · | the occurrence of uninsured losses; |
| · | our ability to deploy the debt and equity capital we raise; |
| · | our ability to raise additional equity and debt capital on terms that are attractive or at all; |
| · | our ability to make distributions to our stockholders in the future at the level contemplated by our stockholders or the market generally,
or at all; |
| · | expectations regarding the timing and/or completion of any acquisition; |
| · | general volatility of the market price of our securities; |
| · | changes in our business or our investment or financing strategy; |
| · | the ability of our external manager, Alpine Income Property Manager, LLC (the “Manager”), to attract, retain and make
available to us, qualified personnel or the termination of our Manager; |
| · | conflicts of interest with CTO Realty Growth, Inc., a publicly traded, diversified REIT and the sole member of our Manager (“CTO”),
and its affiliates, including our Manager; |
| · | changes in accounting policies generally accepted in the United States of America; |
| · | changes in the tax treatment of our distributions; |
| · | changes in, or the failure or inability to comply with, government regulation, including Maryland law; |
| · | our failure to maintain our qualification as a REIT for U.S. federal income tax purposes; |
| · | changes in U.S. tax law and other U.S. laws, whether or not specific to REITs; and |
| · | limitations imposed on our business and our ability to satisfy complex rules relating to REIT qualification for U.S. federal
income tax purposes. |
While forward-looking statements reflect our good
faith beliefs, they are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statement
to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other changes, except as
required by applicable law. You should not place undue reliance on any forward-looking statements that are based on information currently
available to us or the third parties making the forward-looking statements.
Alpine
Income Property Trust, Inc.
Alpine Income Property Trust, Inc. was incorporated
in Maryland on August 19, 2019 and owns and operates a high-quality portfolio of single-tenant net leased commercial income properties
located in the United States. We are externally managed and advised by our Manager. Our Manager is a wholly owned subsidiary of CTO.
We hold our properties and conduct our operations
through our Operating Partnership. Our wholly owned subsidiary is the sole general partner of the Operating Partnership. As of June 30,
2023, we have a total ownership interest in the Operating Partnership of approximately 89.2%, with CTO holding, directly and indirectly,
a 7.8% ownership interest in the Operating Partnership.
Our investment objective is to maximize cash flow
and value per share by generating stable and growing cash flows and attractive risk-adjusted returns through owning, operating and growing
a diversified portfolio of high-quality net leased commercial properties with strong long-term real estate fundamentals.
We elected to be taxed as a REIT for U.S. federal
income tax purposes commencing with our short taxable year ended December 31, 2019. We believe that, commencing with such short taxable
year, we have been organized and have operated in conformity with the requirements for qualification and taxation as a REIT under the
Internal Revenue Code of 1986, as amended (the “Code”), and that our organization and current and proposed method of operations
will enable us to continue to meet the requirements for qualification and taxation as a REIT. As a REIT, we generally are not subject
to U.S. federal income tax on our REIT taxable income that we distribute currently to our stockholders.
We completed our initial public offering on November 26,
2019. We are an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We
have elected to opt out of the extended transition period for complying with new or revised accounting standards, and such election is
irrevocable. We will remain an emerging growth company until the earliest to occur of (i) the last day of the fiscal year during
which our total annual gross revenue equals or exceeds $1.235 billion (subject to adjustment for inflation), (ii) the last day of
the fiscal year following the fifth anniversary of our initial public offering, (iii) the date on which we have, during the previous
three-year period, issued more than $1 billion in non-convertible debt securities and (iv) the date on which we are deemed to be
a “large accelerated filer” under the Exchange Act.
Our common stock is listed on the NYSE under the
symbol “PINE.” Our principal executive offices are located at 369 N. New York Avenue, Suite 201, Winter Park, Florida
32789. Our telephone number is (407) 904-3324. Our website is located at http://www.alpinereit.com. Except for the documents incorporated
by reference in this prospectus as described under the heading “Incorporation by Reference of Information Filed with the SEC,”
the information found on, or otherwise accessible through, our website is not incorporated by reference into, and does not form a part
of, this prospectus or any accompanying prospectus supplement or any other report or document we file with or furnish to the SEC and should
not be relied upon in connection with making any investment in our securities.
Risk
Factors
Before purchasing any securities offered by this
prospectus, you should carefully consider the risk factors under the heading “Risk Factors” contained in Part I, Item
1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which are incorporated by reference into this
prospectus, the risks, uncertainties and additional information set forth in our SEC reports on Forms 10-K, 10-Q and 8-K and in the other
documents incorporated by reference into this prospectus, and any risks described in any accompanying prospectus supplement. For a description
of these reports and documents, and information about where you can find them, see “Where You Can Find More Information” and
“Incorporation by Reference of Information Filed with the SEC.” Additional risks not presently known or that are currently
deemed immaterial could also materially and adversely affect our financial condition, results of operations, business and prospects.
Use
of Proceeds
Unless otherwise set forth in a prospectus supplement,
we intend to use the net proceeds from the offering of securities by us under this prospectus for general corporate purposes, including
funding acquisitions, repayment of indebtedness and working capital. Further details relating to the use of the net proceeds from the
offering of securities under this prospectus will be set forth in the applicable prospectus supplement.
Description
of Capital Stock
The following is a summary of the material
terms of our capital stock. While we believe that the following description covers the material terms of our capital stock, the description
may not contain all of the information that is important to you. We encourage you to read carefully this entire prospectus, the Maryland
General Corporation Law (the “MGCL”) and our charter and bylaws, which are incorporated herein by reference to the Company’s
SEC filings. See “Where You Can Find More Information.”
General
Pursuant to our charter, we are currently authorized
to designate and issue up to 500,000,000 shares of common stock, $0.01 par value per share (our “common stock”), and up to
100,000,000 shares of preferred stock, $0.01 par value per share (our “preferred stock”). A majority of our entire board of
directors has the power, without stockholder approval, to amend our charter to increase or decrease the aggregate number of shares of
stock or the number of shares of stock of any class or series that we are authorized to issue.
As of July 13, 2023, we had 14,049,941 shares
of our common stock outstanding and no shares of our preferred stock outstanding.
Under Maryland law, stockholders generally are
not liable for a corporation’s debts or obligations solely as a result of their status as stockholders.
Description of Common Stock
General
Our charter provides that we have authority to
issue up to 500,000,000 shares of common stock.
Distribution, Liquidation and Other Rights
Stockholders are entitled to receive distributions
when authorized by our board of directors and declared by us out of assets legally available for the payment of dividends. Stockholders
are also entitled to share ratably in our assets legally available for distribution to our stockholders in the event of our liquidation,
dissolution, or winding up, after payment of, or adequate provision for, all of our known debts and liabilities. These rights are subject
to the preferential rights of any other class or series of our stock, including any shares of preferred stock we may issue, and to the
provisions of our charter regarding restrictions on ownership and transfer of our stock. See “Certain Provisions of Maryland Law
and of Our Charter and Bylaws—Restrictions on Ownership and Transfer.”
Our common stockholders have no preference, conversion,
exchange, sinking fund or redemption rights and have no preemptive rights to subscribe for any of our capital stock. Our charter provides
that our stockholders generally have no appraisal rights unless our board of directors determines that appraisal rights will apply to
one or more transactions in which our common stockholders would otherwise be entitled to exercise such rights. Subject to our charter
restrictions on ownership and transfer of our stock, holders of shares of our common stock have equal dividend, liquidation and other
rights.
Voting Rights
Subject to our charter restrictions on ownership
and transfer of our stock and the terms of any other class or series of our stock, each outstanding share of our common stock entitles
the holder thereof to one vote on all matters submitted to a vote of stockholders, including the election of directors. Cumulative voting
in the election of directors is not permitted. Directors will be elected by a plurality of the votes cast at the meeting in which directors
are being elected and at which a quorum is present. This means that the holders of a majority of the outstanding shares of our common
stock can elect all of the directors then standing for election, and the holders of the remaining shares will not be able to elect any
directors.
Listing
Our common stock is listed on the NYSE under the
trading symbol “PINE.”
Transfer Agent and Registrar
The transfer agent and registrar for our common
stock is Computershare Trust Company, N.A.
Description of Preferred Stock
General
We are authorized to issue up to 100,000,000 shares
of preferred stock. Our charter provides that our board of directors has the authority, without action by our stockholders, to classify,
designate and issue shares of preferred stock in one or more classes or series and to fix the designation, number of shares, preferences,
conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms
and conditions of redemption of any class or series of preferred stock.
Any future issuance of shares of preferred stock
could adversely affect the voting power and distribution and liquidation rights of holders of common stock and the likelihood that the
holders will receive dividend payments and payments upon liquidation and could also have the effect of delaying, deferring or preventing
a change in control that might otherwise be favorable to our common stockholders.
A prospectus supplement relating to any series
of preferred stock being offered will include specific terms relating to the offering. They will include, where applicable:
| · | the title and par value of the preferred stock; |
| · | the number of shares of the preferred stock offered, the liquidation preference per share and the offering price of the preferred
stock; |
| · | the dividend rate(s), period(s) and/or payment date(s) or method(s) of calculation thereof applicable to the preferred
stock; |
| · | whether dividends will be cumulative or non-cumulative and, if cumulative, the date from which dividends on the preferred stock shall
accumulate; |
| · | the procedures for an auction and remarketing, if any, of the preferred stock; |
| · | the provisions for a sinking fund, if any, for the preferred stock; |
| · | any voting rights of the preferred stock; |
| · | the provisions for redemption, if applicable, of the preferred stock; |
| · | any listing of the preferred stock on any securities exchange; |
| · | information with respect to book-entry registration procedures, if any; |
| · | the terms and conditions, if applicable, upon which the preferred stock will be convertible into or exchangeable for our common stock,
preferred stock or other securities including the conversion price or the manner of calculating the conversion price and conversion period; |
| · | if appropriate, a discussion of U.S. federal income tax consequences applicable to the preferred stock; |
| · | any limitations on direct or beneficial ownership and restrictions on transfer, in each case as may be appropriate to assist us in
maintaining our qualification as a REIT or otherwise; |
| · | the priority of the preferred stock with respect to payment of dividends and distribution of assets upon liquidation; and |
| · | any other specific terms, preferences, rights, limitations or restrictions on the preferred stock. |
Conversion or Exchange
The terms, if any, on which the preferred stock
may be convertible into or exchangeable for our common stock, preferred stock or other securities will be stated in the prospectus supplement
relating to the preferred stock. The terms will include provisions as to whether conversion or exchange is mandatory, at the option of
the holder or at our option, and may include provisions pursuant to which the number of shares of our common stock or other securities
to be received by the holders of preferred stock would be subject to adjustment.
Power to Reclassify Unissued Stock
Our charter authorizes our board of directors
to classify and reclassify any unissued shares of our common stock or preferred stock into other classes or series of capital stock. Prior
to issuance of shares of each class or series, our board of directors is required by Maryland law and by our charter to set, subject to
our charter restrictions on ownership and transfer of shares of our capital stock, the preferences, conversion and other rights, voting
powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of each
class or series. Therefore, our board of directors could authorize the issuance of shares of common stock or preferred stock with terms
and conditions that could have the effect of delaying, deferring or preventing a change in control or other transaction that might involve
a premium price for shares of our stock or that our then-existing stockholders otherwise believe to be in their best interests.
Description
of Debt Securities
General
The debt securities offered by this prospectus
will be our direct unsecured general obligations. This prospectus describes certain general terms of the debt securities offered through
this prospectus. In the following discussion, we refer to any of our direct unsecured general obligations as the “Debt Securities.”
When we offer to sell a particular series of Debt Securities, we will describe the specific terms of that series in a prospectus supplement
or any free writing prospectus. The Debt Securities will be issued under an open-ended Indenture (for Debt Securities) between us and
a trustee to be elected by us at or about the time we offer our Debt Securities. The open-ended Indenture (for Debt Securities) is incorporated
by reference into the registration statement of which this prospectus is a part and is filed as an exhibit to the registration statement.
In this prospectus we refer to the Indenture (for Debt Securities) as the “Debt Securities Indenture.” We refer to the trustee
under any Debt Securities Indenture as the “Debt Securities Trustee.”
The prospectus supplement or any free writing
prospectus applicable to a particular series of Debt Securities may state that a particular series of Debt Securities will be our subordinated
obligations. The form of Debt Securities Indenture referred to above includes optional provisions (designated by brackets (“[ ]”))
that we would expect to appear in a separate indenture for subordinated debt securities in the event we issue subordinated debt securities.
In the following discussion, we refer to any of our subordinated obligations as the “Subordinated Debt Securities.” Unless
the applicable prospectus supplement or any free writing prospectus provides otherwise, we will use a separate Debt Securities Indenture
for any Subordinated Debt Securities that we may issue. Our Debt Securities Indenture will be qualified under the Trust Indenture Act
of 1939, as amended (the “Trust Indenture Act”), and you should refer to the Trust Indenture Act for the provisions that apply
to the Debt Securities.
We have summarized selected provisions of the
Debt Securities Indenture below. Each Debt Securities Indenture will be independent of any other Debt Securities Indenture unless otherwise
stated in a prospectus supplement or any free writing prospectus. The summary that follows is not complete and the summary is qualified
in its entirety by reference to the provisions of the applicable Debt Securities Indenture. You should consult the applicable Debt Securities,
Debt Securities Indenture, any supplemental indentures, officers’ certificates and other related documents for more complete information
on the Debt Securities. These documents appear as exhibits to, or are incorporated by reference into, the registration statement of which
this prospectus is a part, or will appear as exhibits to other documents that we will file with the SEC, which will be incorporated by
reference into this prospectus. In the summary below, we have included references to applicable section numbers of the Debt Securities
Indenture so that you can easily locate these provisions.
Ranking
Our Debt Securities that are not designated Subordinated
Debt Securities will be effectively subordinated to all secured indebtedness that we have outstanding from time to time to the extent
of the value of the collateral securing such secured indebtedness. Our Debt Securities that are designated Subordinated Debt Securities
will be subordinate to all outstanding secured indebtedness as well as Debt Securities that are not designated Subordinated Debt Securities.
The Indenture (for Debt Securities) does not limit the amount of secured indebtedness that we may issue or incur.
Our ability to meet our financial obligations
with respect to any future Debt Securities, and cash needs generally, is dependent on our operating cash flow, our ability to access various
sources of short- and long-term liquidity, including our bank facilities, and the capital markets. Holders of our Debt Securities will
effectively have a junior position to claims of our creditors, including trade creditors, debt holders, secured creditors, taxing authorities
and guarantee holders.
Provisions of a Particular Series
The Debt Securities may from time to time be issued
in one or more series. You should consult the prospectus supplement or free writing prospectus relating to any particular series of Debt
Securities for the following information:
| · | the title of the Debt Securities; |
| · | any limit on aggregate principal amount of the Debt Securities or the series of which they are a part; |
| · | the date(s), or method for determining the date(s), on which the principal of the Debt Securities will be payable; |
| · | the rate, including the method of determination if applicable, at which the Debt Securities will bear interest, if any, and the date
from which any interest will accrue; |
| · | the dates on which we will pay interest; |
| · | our ability to defer interest payments and any related restrictions during any interest deferral period; |
| · | the record date for any interest payable on any interest payment date; |
| · | the principal of, premium, if any, and interest on the Debt Securities will be payable; |
| · | you may register transfer of the Debt Securities; |
| · | you may exchange the Debt Securities; and |
| · | you may serve notices and demands upon us regarding the Debt Securities; |
| · | the security registrar for the Debt Securities and whether the principal of the Debt Securities is payable without presentment or
surrender of them; |
| · | the terms and conditions upon which we may elect to redeem any Debt Securities, including any replacement capital or similar covenants
limiting our ability to redeem any Subordinated Debt Securities; |
| · | the denominations in which we may issue Debt Securities, if other than $1,000 and integral multiples of $1,000; |
| · | the terms and conditions upon which the Debt Securities must be redeemed or purchased due to our obligations pursuant to any sinking
fund or other mandatory redemption or tender provisions, or at the holder’s option, including any applicable exceptions to notice
requirements; |
| · | the currency, if other than United States currency, in which payments on the Debt Securities will be payable; |
| · | the terms according to which elections can be made by us or the holder regarding payments on the Debt Securities in currency other
than the currency in which the Debt Securities are stated to be payable; |
| · | if payments are to be made on the Debt Securities in securities or other property, the type and amount of the securities and other
property or the method by which the amount shall be determined; |
| · | the manner in which we will determine any amounts payable on the Debt Securities that are to be determined with reference to an index
or other fact or event ascertainable outside the applicable indenture; |
| · | if other than the entire principal amount, the portion of the principal amount of the Debt Securities payable upon declaration of
acceleration of their maturity; |
| · | any addition to the events of default applicable to any Debt Securities and any additions to our covenants for the benefit of the
holders of the Debt Securities; |
| · | the terms applicable to any rights to convert Debt Securities into or exchange them for other of our securities or those of any other
entity; |
| · | whether we are issuing Debt Securities as global securities, and if so, |
| · | any limitations on transfer or exchange rights or the right to obtain the registration of transfer; |
| · | any limitations on the right to obtain definitive certificates for the Debt Securities; and |
| · | any other matters incidental to the Debt Securities; |
| · | whether we are issuing the Debt Securities as bearer securities; |
| · | any limitations on transfer or exchange of Debt Securities or the right to obtain registration of their transfer, and the terms and
amount of any service charge required for registration of transfer or exchange; |
| · | any exceptions to the provisions governing payments due on legal holidays, or any variations in the definition of business day with
respect to the Debt Securities; |
| · | any collateral security, assurance, guarantee or other credit enhancement applicable to the Debt Securities; |
| · | any other terms of the Debt Securities not in conflict with the provisions of the applicable Debt Securities Indenture; and |
| · | the material U.S. federal income tax consequences applicable to the Debt Securities. |
For more information, see Section 301 of
the applicable Debt Securities Indenture.
Debt Securities may be sold at a substantial discount
below their principal amount. You should consult the applicable prospectus supplement or free writing prospectus for a description of
certain material U.S. federal income tax considerations that may apply to Debt Securities sold at an original issue discount.
Unless the applicable prospectus supplement or
free writing prospectus states otherwise, the covenants contained in the applicable indenture will not afford holders of Debt Securities
protection in the event we have a change in control or are involved in a highly-leveraged transaction.
Subordination
The applicable prospectus supplement or free writing
prospectus may provide that a series of Debt Securities will be Subordinated Debt Securities, subordinate and junior in right of payment
to all of our Senior Indebtedness, as defined below. If so, we will issue these securities under a separate Debt Securities Indenture
for Subordinated Debt Securities. For more information, see Article XV of the form of Debt Securities Indenture.
Unless the applicable prospectus supplement or
free writing prospectus states otherwise, no payment of principal of, including redemption and sinking fund payments, or any premium or
interest on, the Subordinated Debt Securities may be made if:
| · | there occur certain acts of bankruptcy, insolvency, liquidation, dissolution or other winding up of our company; |
| · | any Senior Indebtedness is not paid when due; |
| · | any applicable grace period with respect to other defaults with respect to any Senior Indebtedness has ended, the default has not
been cured or waived and the maturity of such Senior Indebtedness has been accelerated because of the default; or |
| · | the maturity of the Subordinated Debt Securities of any series has been accelerated because of a default and Senior Indebtedness is
then outstanding. |
Upon any distribution of our assets to creditors
upon any dissolution, winding-up, liquidation or reorganization, whether voluntary or involuntary or in bankruptcy, insolvency, receivership
or other proceedings, all principal of, and any premium and interest due or to become due on, all outstanding Senior Indebtedness must
be paid in full before the holders of the Subordinated Debt Securities are entitled to payment. For more information, see Section 1502
of the applicable Debt Securities Indenture. The rights of the holders of the Subordinated Debt Securities will be subrogated to the rights
of the holders of Senior Indebtedness to receive payments or distributions applicable to Senior Indebtedness until all amounts owing on
the Subordinated Debt Securities are paid in full. For more information, see Section 1504 of the applicable Debt Securities Indenture.
Unless the applicable prospectus supplement or
free writing prospectus states otherwise, the term “Senior Indebtedness” means all obligations (other than non-recourse obligations
and the indebtedness issued under the Subordinated Debt Securities Indenture) of, or guaranteed or assumed by, us:
| · | for borrowed money (including both senior and subordinated indebtedness for borrowed money, but excluding the Subordinated Debt Securities); |
| · | for the payment of money relating to any lease that is capitalized on our consolidated balance sheet in accordance with generally
accepted accounting principles; or |
| · | indebtedness evidenced by bonds, debentures, notes or other similar instruments. |
In the case of any such indebtedness or obligations,
Senior Indebtedness includes amendments, renewals, extensions, modifications and refundings, whether existing as of the date of the Subordinated
Debt Securities Indenture or subsequently incurred by us.
The Subordinated Debt Securities Indenture does
not limit the aggregate amount of Senior Indebtedness that we may issue.
Form, Exchange and Transfer
Unless the applicable prospectus supplement or
free writing prospectus states otherwise, we will issue Debt Securities only in fully registered form without coupons and in denominations
of $1,000 and integral multiples of that amount. For more information, see Sections 201 and 302 of the applicable Debt Securities Indenture.
Holders may present Debt Securities for exchange
or for registration of transfer, duly endorsed or accompanied by a duly executed instrument of transfer, at the office of the security
registrar or at the office of any transfer agent we may designate. Exchanges and transfers are subject to the terms of the applicable
indenture and applicable limitations for global securities. We may designate ourselves the security registrar.
No charge will be made for any registration of
transfer or exchange of Debt Securities, but we may require payment of a sum sufficient to cover any tax or other governmental charge
that the holder must pay in connection with the transaction. Any transfer or exchange will become effective upon the security registrar
or transfer agent, as the case may be, being satisfied with the documents of title and identity of the person making the request. For
more information, see Section 305 of the applicable Debt Securities Indenture.
The applicable prospectus supplement or free writing
prospectus will state the name of any transfer agent, in addition to the security registrar initially designated by us, for any Debt Securities.
We may at any time designate additional transfer agents or withdraw the designation of any transfer agent or make a change in the office
through which any transfer agent acts. We must, however, maintain a transfer agent in each place of payment for the Debt Securities of
each series. For more information, see Section 602 of the applicable Debt Securities Indenture.
We will not be required to:
| · | issue, register the transfer of, or exchange any Debt Securities or any tranche of any Debt Securities during a period beginning at
the opening of business 15 days before the day of mailing of a notice of redemption of any Debt Securities called for redemption and ending
at the close of business on the day of mailing; or |
| · | register the transfer of, or exchange any Debt Securities selected for redemption except the unredeemed portion of any Debt Securities
being partially redeemed. |
For more information, see Section 305 of
the applicable Debt Securities Indenture.
Payment and Paying Agents
Unless the applicable prospectus supplement or
free writing prospectus states otherwise, we will pay interest on a Debt Security on any interest payment date to the person in whose
name the Debt Security is registered at the close of business on the regular record date for the interest payment. For more information,
see Section 307 of the applicable Debt Securities Indenture.
Unless the applicable prospectus supplement or
free writing prospectus provides otherwise, we will pay principal and any premium and interest on Debt Securities at the office of the
paying agent whom we will designate for this purpose. Unless the applicable prospectus supplement or free writing prospectus states otherwise,
the corporate trust office of the Debt Securities Trustee in New York City will be designated as our sole paying agent for payments with
respect to Debt Securities of each series. Any other paying agents initially designated by us for the Debt Securities of a particular
series will be named in the applicable prospectus supplement or free writing prospectus. We may at any time add or delete paying agents
or change the office through which any paying agent acts. We must, however, maintain a paying agent in each place of payment for the Debt
Securities of a particular series. For more information, see Section 602 of the applicable Debt Securities Indenture.
All money we pay to a paying agent for the payment
of the principal and any premium or interest on any Debt Security that remains unclaimed at the end of two years after payment is due
will be repaid to us. After that date, the holder of that Debt Security shall be deemed an unsecured general creditor and may look only
to us for these payments. For more information, see Section 603 of the applicable Debt Securities Indenture.
Redemption
You should consult the applicable prospectus supplement
or free writing prospectus for any terms regarding optional or mandatory redemption of Debt Securities. Except for any provisions in the
applicable prospectus supplement or free writing prospectus regarding Debt Securities redeemable at the holder’s option, Debt Securities
may be redeemed only upon notice by mail not less than 30 nor more than 60 days prior to the redemption date. Further, if less than all
of the Debt Securities of a series, or any tranche of a series, are to be redeemed, the Debt Securities to be redeemed will be selected
by the method provided for the particular series. In the absence of a selection provision, the Debt Securities Trustee will select a fair
and appropriate method of selection. For more information, see Sections 403 and 404 of the applicable Debt Securities Indenture.
A notice of redemption we provide may state:
| · | that redemption is conditioned upon receipt by the paying agent on or before the redemption date of money sufficient to pay the principal
of and any premium and interest on the Debt Securities; and |
| · | that if the money has not been received, the notice will be ineffective and we will not be required to redeem the Debt Securities. |
For more information, see Section 404 of
the applicable Debt Securities Indenture.
Consolidation, Merger and Sale of Assets
We may not consolidate with or merge into any
other person, nor may we transfer or lease substantially all of our assets and property to any other person, unless the corporation formed
by the consolidation or into which we are merged, or the person that acquires by conveyance or transfer, or that leases, substantially
all of our property and assets:
| · | is organized and validly existing under the laws of any domestic jurisdiction; |
| · | expressly assumes by supplemental indenture our obligations on the Debt Securities and under the applicable indentures; |
| · | immediately after giving effect to the transaction, no event of default, and no event that would become an event of default, has occurred
and is continuing; and |
| · | we have delivered to the Debt Securities Trustee an officer’s certificate and opinion of counsel as provided in the applicable
indentures. |
For more information, see Section 1101 of
the applicable Debt Securities Indenture.
Events of Default
Unless the applicable prospectus supplement or
free writing prospectus states otherwise, “event of default” under the applicable indenture with respect to Debt Securities
of any series means any of the following:
| · | failure to pay any interest due on any Debt Security of that series within 30 days after it becomes due; |
| · | failure to pay principal or premium, if any, when due on any Debt Security of that series; |
| · | failure to make any required sinking fund payment on any Debt Securities of that series; |
| · | breach of or failure to perform any other covenant or warranty in the applicable indenture with respect to Debt Securities of that
series for 60 days (subject to extension under certain circumstances for another 120 days) after we receive notice from the Debt Securities
Trustee, or we and the Debt Securities Trustee receive notice from the holders of at least 33% in principal amount of the Debt Securities
of that series outstanding under the applicable indenture according to the provisions of the applicable indenture; |
| · | certain events of bankruptcy, insolvency or reorganization; or |
| · | any other event of default set forth in the applicable prospectus supplement or free writing prospectus. |
For more information, see Section 801 of
the applicable Debt Securities Indenture.
An event of default with respect to a particular
series of Debt Securities does not necessarily constitute an event of default with respect to the Debt Securities of any other series
issued under the applicable indenture.
If an event of default with respect to a particular
series of Debt Securities occurs and is continuing, either the Debt Securities Trustee or the holders of at least 33% in principal amount
of the outstanding Debt Securities of that series may declare the principal amount of all of the Debt Securities of that series to be
due and payable immediately. If the Debt Securities of that series are discount securities or similar Debt Securities, only the portion
of the principal amount as specified in the applicable prospectus supplement or free writing prospectus may be immediately due and payable.
If an event of default occurs and is continuing with respect to all series of Debt Securities issued under a Debt Securities Indenture,
including all events of default relating to bankruptcy, insolvency or reorganization, the Debt Securities Trustee or the holders of at
least 33% in principal amount of the outstanding Debt Securities of all series issued under that Debt Securities Indenture, considered
together, may declare an acceleration of the principal amount of all series of Debt Securities issued under that Debt Securities Indenture.
There is no automatic acceleration, even in the event of our bankruptcy or insolvency.
The applicable prospectus supplement or free writing
prospectus may provide, with respect to a series of Debt Securities to which a credit enhancement is applicable, that the provider of
the credit enhancement may, if a default has occurred and is continuing with respect to the series, have all or any part of the rights
with respect to remedies that would otherwise have been exercisable by the holder of that series.
At any time after a declaration of acceleration
with respect to the Debt Securities of a particular series, and before a judgment or decree for payment of the money due has been obtained,
the event of default giving rise to the declaration of acceleration will, without further action, be deemed to have been waived, and the
declaration and its consequences will be deemed to have been rescinded and annulled, if:
| · | we have paid or deposited with the Debt Securities Trustee a sum sufficient to pay: |
| · | all overdue interest on all Debt Securities of the particular series; |
| · | the principal of and any premium on any Debt Securities of that series that have become due otherwise than by the declaration of acceleration
and any interest at the rate prescribed in the Debt Securities; |
| · | interest upon overdue interest at the rate prescribed in the Debt Securities, to the extent payment is lawful; and |
| · | all amounts due to the Debt Securities Trustee under the applicable indenture; and |
| · | any other event of default with respect to the Debt Securities of the particular series, other than the failure to pay the principal
of the Debt Securities of that series that has become due solely by the declaration of acceleration, has been cured or waived as provided
in the applicable indenture. |
For more information, see Section 802 of
the applicable Debt Securities Indenture.
The applicable Debt Securities Indenture includes
provisions as to the duties of the Debt Securities Trustee in case an event of default occurs and is continuing. Consistent with these
provisions, the Debt Securities Trustee will be under no obligation to exercise any of its rights or powers at the request or direction
of any of the holders unless those holders have offered to the Debt Securities Trustee reasonable indemnity against the costs, expenses
and liabilities that may be incurred by it in compliance with such request or direction. For more information, see Section 903 of
the applicable Debt Securities Indenture. Subject to these provisions for indemnification, the holders of a majority in principal amount
of the outstanding Debt Securities of any series may direct the time, method and place of conducting any proceeding for any remedy available
to the Debt Securities Trustee, or exercising any trust or power conferred on the Debt Securities Trustee, with respect to the Debt Securities
of that series. For more information, see Section 812 of the applicable Debt Securities Indenture.
No holder of Debt Securities may institute any
proceeding regarding the applicable indenture, or for the appointment of a receiver or a trustee, or for any other remedy under the applicable
indenture unless:
| · | the holder has previously given to the Debt Securities Trustee written notice of a continuing event of default of that particular
series; |
| · | the holders of a majority in principal amount of the outstanding Debt Securities of all series with respect to which an event of default
is continuing have made a written request to the Debt Securities Trustee, and have offered reasonable indemnity to the Debt Securities
Trustee, to institute the proceeding as trustee; and |
| · | the Debt Securities Trustee has failed to institute the proceeding, and has not received from the holders of a majority in principal
amount of the outstanding Debt Securities of that series a direction inconsistent with the request, within 60 days after notice, request
and offer of reasonable indemnity. |
For more information, see Section 807 of
the applicable Debt Securities Indenture.
The preceding limitations do not apply, however,
to a suit instituted by a holder of a Debt Security for the enforcement of payment of the principal of or any premium or interest on the
Debt Securities on or after the applicable due date stated in the Debt Securities. For more information, see Section 808 of the applicable
Debt Securities Indenture.
We must furnish annually to the Debt Securities
Trustee a statement by an appropriate officer as to that officer’s knowledge of our compliance with all conditions and covenants
under each of the indentures for Debt Securities. Our compliance is to be determined without regard to any grace period or notice requirement
under the respective indenture. For more information, see Section 606 of the applicable Debt Securities Indenture.
Modification and Waiver
We and the Debt Securities Trustee, without the
consent of the holders of the Debt Securities, may enter into one or more supplemental indentures for any of the following purposes:
| · | to evidence the assumption by any permitted successor of our covenants in the applicable indenture and the Debt Securities; |
| · | to add one or more covenants or other provisions for the benefit of the holders of outstanding Debt Securities or to surrender any
right or power conferred upon us by the applicable indenture; |
| · | to add any additional events of default; |
| · | to change or eliminate any provision of the applicable indenture or add any new provision to it, but if this action would adversely
affect the interests of the holders of any particular series of Debt Securities in any material respect, the action will not become effective
with respect to that series while any Debt Securities of that series remain outstanding under the applicable indenture; |
| · | to provide collateral security for the Debt Securities; |
| · | to establish the form or terms of Debt Securities according to the provisions of the applicable indenture; |
| · | to evidence the acceptance of appointment of a successor Debt Securities Trustee under the applicable indenture with respect to one
or more series of the Debt Securities and to add to or change any of the provisions of the applicable indenture as necessary to provide
for trust administration under the applicable indenture by more than one trustee; |
| · | to provide for the procedures required to permit the use of a non-certificated system of registration for any series of Debt Securities; |
| · | to change any place where: |
| · | the principal of and any premium and interest on any Debt Securities are payable; |
| · | any Debt Securities may be surrendered for registration of transfer or exchange; or |
| · | notices and demands to or upon us regarding Debt Securities and the applicable indentures may be served; or |
| · | to cure any ambiguity or inconsistency, but only by means of changes or additions that will not adversely affect the interests of
the holders of Debt Securities of any series in any material respect. |
For more information, see Section 1201 of
the applicable Debt Securities Indenture.
The holders of at least a majority in aggregate
principal amount of the outstanding Debt Securities of any series may waive:
| · | compliance by us with certain provisions of the applicable indenture (see Section 607 of the applicable Debt Securities Indenture);
and |
| · | any past default under the applicable indenture, except a default in the payment of principal, premium, or interest and certain covenants
and provisions of the applicable indenture that cannot be modified or amended without consent of the holder of each outstanding Debt Security
of the series affected (see Section 813 of the applicable Debt Securities Indenture). |
The Trust Indenture Act may be amended after the
date of the applicable indenture to require changes to the indenture. In this event, the indenture will be deemed to have been amended
so as to effect the changes, and we and the Debt Securities Trustee may, without the consent of any holders, enter into one or more supplemental
indentures to evidence or effect the amendment. For more information, see Section 1201 of the applicable Debt Securities Indenture.
Except as provided in this section, the consent
of the holders of a majority in aggregate principal amount of the outstanding Debt Securities issued pursuant to a Debt Securities Indenture,
considered as one class, is required to change in any manner the applicable indenture pursuant to one or more supplemental indentures.
If less than all of the series of Debt Securities outstanding under a Debt Securities Indenture are directly affected by a proposed supplemental
indenture, however, only the consent of the holders of a majority in aggregate principal amount of the outstanding Debt Securities of
all series directly affected, considered as one class, will be required. Furthermore, if the Debt Securities of any series have been issued
in more than one tranche and if the proposed supplemental indenture directly affects the rights of the holders of one or more, but not
all, tranches, only the consent of the holders of a majority in aggregate principal amount of the outstanding Debt Securities of all tranches
directly affected, considered as one class, will be required. In addition, an amendment or modification:
| · | may not, without the consent of the holder of each outstanding Debt Security affected: |
| · | change the maturity of the principal of, or any installment of principal of or interest on, any Debt Securities; |
| · | reduce the principal amount or the rate of interest, or the amount of any installment of interest, or change the method of calculating
the rate of interest; |
| · | reduce any premium payable upon the redemption of the Debt Securities; |
| · | reduce the amount of the principal of any Debt Security originally issued at a discount from the stated principal amount that would
be due and payable upon a declaration of acceleration of maturity; |
| · | change the currency or other property in which a Debt Security or premium or interest on a Debt Security is payable; or |
| · | impair the right to institute suit for the enforcement of any payment on or after the stated maturity, or in the case of redemption,
on or after the redemption date, of any Debt Securities; |
| · | may not reduce the percentage of principal amount requirement for consent of the holders for any supplemental indenture, or for any
waiver of compliance with any provision of or any default under the applicable indenture, or reduce the requirements for quorum or voting,
without the consent of the holder of each outstanding Debt Security of each series or tranche affected; and |
| · | may not modify provisions of the applicable indenture relating to supplemental indentures, waivers of certain covenants and waivers
of past defaults with respect to the Debt Securities of any series, or any tranche of a series, without the consent of the holder of each
outstanding Debt Security affected. |
| · | A supplemental indenture will be deemed not to affect the rights under the applicable indenture of the holders of any series or tranche
of the Debt Securities if the supplemental indenture: |
| · | changes or eliminates any covenant or other provision of the applicable indenture expressly included solely for the benefit of one
or more other particular series of Debt Securities or tranches thereof; or |
| · | modifies the rights of the holders of Debt Securities of any other series or tranches with respect to any covenant or other provision. |
For more information, see Section 1202 of
the applicable Debt Securities Indenture.
If we solicit from holders of the Debt Securities
any type of action, we may at our option by board resolution fix in advance a record date for the determination of the holders entitled
to vote on the action. We shall have no obligation, however, to do so. If we fix a record date, the action may be taken before or after
the record date, but only the holders of record at the close of business on the record date shall be deemed to be holders for the purposes
of determining whether holders of the requisite proportion of the outstanding Debt Securities have authorized the action. For that purpose,
the outstanding Debt Securities shall be computed as of the record date. Any holder action shall bind every future holder of the same
security and the holder of every security issued upon the registration of transfer of or in exchange for or in lieu of the security in
respect of anything done or permitted by the Debt Securities Trustee or us in reliance on that action, whether or not notation of the
action is made upon the security. For more information, see Section 104 of the applicable Debt Securities Indenture.
Defeasance
Unless the applicable prospectus supplement or
free writing prospectus provides otherwise, any Debt Security, or portion of the principal amount of a Debt Security, will be deemed to
have been paid for purposes of the applicable indenture, and, at our election, our entire indebtedness in respect of the Debt Security,
or portion thereof, will be deemed to have been satisfied and discharged, if we have irrevocably deposited with the Debt Securities Trustee
or any paying agent other than us, in trust money, certain eligible obligations, as defined in the applicable indenture, or a combination
of the two, sufficient to pay principal of and any premium and interest due and to become due on the Debt Security or portion thereof.
For more information, see Section 701 of the applicable Debt Securities Indenture. For this purpose, unless the applicable prospectus
supplement or free writing prospectus provides otherwise, eligible obligations include direct obligations of, or obligations unconditionally
guaranteed by, the United States, entitled to the benefit of full faith and credit of the United States, and certificates, depositary
receipts or other instruments that evidence a direct ownership interest in those obligations or in any specific interest or principal
payments due in respect of those obligations.
Resignation, Removal of Debt Securities Trustee; Appointment of
Successor
The Debt Securities Trustee may resign at any
time by giving written notice to us or may be removed at any time by an action of the holders of a majority in principal amount of outstanding
Debt Securities delivered to the Debt Securities Trustee and us. No resignation or removal of the Debt Securities Trustee and no appointment
of a successor trustee will become effective until a successor trustee accepts appointment in accordance with the requirements of the
applicable indenture. So long as no event of default or event that would become an event of default has occurred and is continuing, and
except with respect to a Debt Securities Trustee appointed by an action of the holders, if we have delivered to the Debt Securities Trustee
a resolution of our board of trustees appointing a successor trustee and the successor trustee has accepted the appointment in accordance
with the terms of the applicable indenture, the Debt Securities Trustee will be deemed to have resigned and the successor trustee will
be deemed to have been appointed as trustee in accordance with the applicable indenture. For more information, see Section 910 of
the applicable Debt Securities Indenture.
Notices
We will give notices to holders of Debt Securities
by mail to their addresses as they appear in the Debt Security Register. For more information, see Section 106 of the applicable
Debt Securities Indenture.
Title
The Debt Securities Trustee and its agents, and
we and our agents, may treat the person in whose name a Debt Security is registered as the absolute owner of that Debt Security, whether
or not that Debt Security may be overdue, for the purpose of making payment and for all other purposes. For more information, see Section 308
of the applicable Debt Securities Indenture.
Governing Law
The Debt Securities Indentures and the Debt Securities,
including any Subordinated Debt Securities Indentures and Subordinated Debt Securities, will be governed by, and construed in accordance
with, the law of the State of New York. For more information, see Section 112 of the applicable Debt Securities Indenture.
Description
of Warrants
This section describes the general terms and provisions
of the warrants that we may offer by this prospectus. The applicable prospectus supplement will describe the specific terms of the warrants
then offered, and the terms and provisions described in this section will apply only to the extent not superseded by the terms of the
applicable prospectus supplement.
We may issue warrants for the purchase of shares
of common stock or preferred stock, respectively referred to as common stock warrants and preferred stock warrants. Warrants may be issued
independently or together with any other securities offered by this prospectus and any applicable prospectus supplement and may be attached
to or separate from such other securities. Each issuance of the warrants will be issued under a separate warrant agreement to be entered
into by us and a bank or trust company, as warrant agent, all as set forth in the prospectus supplement relating to the particular issue
of offered warrants. Each issue of warrants will be evidenced by warrant certificates. The warrant agent will act solely as an agent of
ours in connection with the warrant certificates and will not assume any obligation or relationship of agency or trust for or with any
holder of warrant certificates or beneficial owners of warrants.
If we offer warrants pursuant to this prospectus
in the future, the applicable prospectus supplement will describe the terms of such warrants, including the following, where applicable:
| · | the aggregate number of shares purchasable upon exercise of such warrants, and in the case of warrants for preferred stock, the designation,
aggregate number, and terms of the class or series of preferred stock purchasable upon exercise of such warrants; |
| · | the designation and terms of the securities with which such warrants are being offered, if any, and the number of such warrants being
offered with each such security; |
| · | the date on and after which such warrants and any related securities will be transferable separately; |
| · | the number of shares of preferred stock or common stock purchasable upon exercise of each of such warrants and the price at which
such number of shares of preferred stock or common stock may be purchased upon such exercise; |
| · | the date on which the right to exercise such warrants shall commence and the expiration date on which such right shall expire; |
| · | material U.S. federal income tax considerations applicable to such warrants; and |
| · | any other material terms of such warrants. |
Holders of future warrants, if any, will not be
entitled by virtue of being such holders, to vote, to consent, to receive dividends, to receive notice with respect to any meeting of
stockholders for the election of our directors or any other matter, or to exercise any rights whatsoever as stockholders of the Company.
If warrants for the purchase of shares of preferred
stock are offered, the applicable prospectus supplement will also describe the terms of the preferred stock into which the warrants are
exercisable as described under “Description of Capital Stock—Description of Preferred Stock.”
Description
of Rights
This section describes the general terms and provisions
of the rights that we may offer by this prospectus. The applicable prospectus supplement will describe the specific terms of the rights
then offered, and the terms and provisions described in this section will apply only to the extent not superseded by the terms of the
applicable prospectus supplement.
We may issue rights to our stockholders for the
purchase of shares of our common stock or preferred stock. Each series of rights will be issued under a separate rights agreement to be
entered into between us and a bank or trust company, as rights agent, all as set forth in the prospectus supplement relating to the particular
issue of rights. The rights agent will act solely as our agent in connection with the certificates relating to the rights of such series
and will not assume any obligation or relationship of agency or trust for or with any holders or beneficial owners of the rights. The
rights agreement and the form of rights certificates relating to each series of rights will be filed with the SEC and incorporated by
reference as an exhibit to the registration statement of which this prospectus is a part.
The applicable prospectus supplement will describe
the following terms, where applicable, of the rights in respect of which this prospectus and the applicable prospectus supplement are
being delivered:
| · | the date for determining the stockholders entitled to the rights distribution; |
| · | the aggregate number of shares of common stock or preferred stock purchasable upon exercise of the rights and the exercise price; |
| · | the designation and terms of the preferred stock purchasable upon exercise of the rights, if applicable; |
| · | the aggregate number of rights being issued; |
| · | the date, if any, on and after which the rights may be transferable separately; |
| · | the date on which the right to exercise such rights shall commence and the date on which such right shall expire; |
| · | any listing of the rights and the shares of common stock or preferred stock purchasable upon exercise of the rights on any securities
exchange; |
| · | if appropriate, a discussion of any additional material U.S. federal income tax considerations applicable to the rights; and |
| · | any other material terms of the rights, including terms, procedures and limitations relating to the distribution, exchange and exercise
of such rights. |
Description
of Units
This section describes some of the general terms
and provisions applicable to units we may issue from time to time. We will describe the specific terms of a series of units and the applicable
unit agreement in the applicable prospectus supplement. The following description and any description of the units in the applicable prospectus
supplement may not be complete and is subject to and qualified in its entirety by reference to the terms and provisions of the applicable
unit agreement. A form of the unit agreement reflecting the particular terms and provisions of a series of offered units will be filed
with the SEC in connection with the offering and incorporated by reference in the registration statement and this prospectus.
We may issue units from time to time in such amounts
and in as many distinct series as we determine. We will issue each series of units under a unit agreement to be entered into between us
and a unit agent to be designated in the applicable prospectus supplement. When we refer to a series of units, we mean all units issued
as part of the same series under the applicable unit agreement.
We may issue units consisting of any combination
of two or more securities described in this prospectus. Each unit will be issued so that the holder of the unit is also the holder of
each security included in the unit. Thus, the holder of a unit will have the rights and obligations of a holder of each included security.
The unit agreement under which a unit is issued may provide that the securities included in the unit may not be held or transferred separately,
at any time or at any time before a specified date.
The applicable prospectus supplement will describe
the terms of the units offered pursuant to it, including one or more of the following:
| · | the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances
those securities may be held or transferred separately; |
| · | the aggregate number of, and the price at which we will issue, the units; |
| · | any provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units; |
| · | whether the units will be issued in fully registered or global form; |
| · | the name of the unit agent; |
| · | a description of the terms of any unit agreement to be entered into between us and a bank or trust company, as unit agent, governing
the units; |
| · | if appropriate, a discussion of the material U.S. federal income tax consequences applicable to the units; and |
| · | whether the units will be listed on any securities exchange. |
Additionally, in order to enable us to maintain
our status as a REIT, we may take certain actions to restrict ownership and transfer of our outstanding securities, including any units.
The prospectus supplement related to the offering of any units will specify any additional ownership limitation relating to the units
being offered thereby.
Legal
Ownership of Securities
We can issue securities in registered form or
in the form of one or more global securities. We describe global securities in greater detail below. We refer to those persons who have
securities registered in their own names on the books that we or any applicable trustee maintain for this purpose as the “holders”
of those securities. These persons are the legal holders of the securities. We refer to those persons who, indirectly through others,
own beneficial interests in securities that are not registered in their own names, as “indirect holders” of those securities.
As we discuss below, indirect holders are not legal holders, and investors in securities issued in book-entry form or in street name will
be indirect holders.
Book-Entry Holders
We may issue securities in book-entry form only,
as we will specify in the accompanying prospectus supplement. This means securities may be represented by one or more global securities
registered in the name of a financial institution that holds them as depositary on behalf of other financial institutions that participate
in the depositary’s book-entry system. These participating institutions, which are referred to as participants, in turn, hold beneficial
interests in the securities on behalf of themselves or their customers.
Only the person in whose name a security is registered
is recognized as the holder of that security. Securities issued in global form will be registered in the name of the depositary or its
participants. Consequently, for securities issued in global form, we will recognize only the depositary as the holder of the securities,
and we will make all payments on the securities to the depositary. The depositary passes along the payments it receives to its participants,
which in turn pass the payments along to their customers who are the beneficial owners. The depositary and its participants do so under
agreements they have made with one another or with their customers; they are not obligated to do so under the terms of the securities.
As a result, investors in a book-entry security
will not own securities directly. Instead, they will own beneficial interests in a global security, through a bank, broker or other financial
institution that participates in the depositary’s book-entry system or holds an interest through a participant. As long as the securities
are issued in global form, investors will be indirect holders, and not holders, of the securities.
Street Name Holders
We may terminate a global security or issue securities
in non-global form. In these cases, investors may choose to hold their securities in their own names or in “street name.”
Securities held by an investor in street name would be registered in the name of a bank, broker or other financial institution that the
investor chooses, and the investor would hold only a beneficial interest in those securities through an account he or she maintains at
that institution.
For securities held in street name, we will recognize
only the intermediary banks, brokers and other financial institutions in whose names the securities are registered as the holders of those
securities, and we will make all payments on those securities to them. These institutions pass along the payments they receive to their
customers who are the beneficial owners, but only because they agree to do so in their customer agreements or because they are legally
required to do so. Investors who hold securities in street name will be indirect holders, not holders, of those securities.
Legal Holders
Our obligations run only to the legal holders
of the securities. We do not have obligations to investors who hold beneficial interests in global securities, in street name or by any
other indirect means. This will be the case whether an investor chooses to be an indirect holder of a security or has no choice because
we are issuing the securities only in global form. For example, once we make a payment or give a notice to the holder, we have no further
responsibility for the payment or notice even if that holder is required, under agreements with depositary participants or customers or
by law, to pass it along to the indirect holders but does not do so. Whether and how the holders contact the indirect holders is up to
the holders.
Special Considerations for Indirect Holders
If you hold securities through a bank, broker
or other financial institution, either in book-entry form or in street name, you should check with your own institution to find out:
| · | how it handles securities payments and notices; |
| · | whether it imposes fees or charges; |
| · | how it would handle a request for the holders’ consent, if ever required; |
| · | whether and how you can instruct it to send you securities registered in your own name so you can be a holder, if that is permitted
in the future; |
| · | how it would exercise rights under the securities if there were a default or other event triggering the need for holders to act to
protect their interests; and |
| · | if the securities are in book-entry form, how the depositary’s rules and procedures will affect these matters. |
Global Securities
A global security is a security held by a depositary
that represents one or any other number of individual securities. Generally, all securities represented by the same global securities
will have the same terms.
Each security issued in book-entry form will be
represented by a global security that we deposit with and register in the name of a financial institution or its nominee that we select.
The financial institution that we select for this purpose is called the depositary. Unless we specify otherwise in the accompanying prospectus
supplement, The Depository Trust Company, New York, New York, or DTC, will be the depositary for all securities issued in book-entry form.
A global security may not be transferred to or
registered in the name of anyone other than the depositary, its nominee or a successor depositary, unless special termination situations
arise. We describe those situations below under “— Special Situations When a Global Security Will Be Terminated.” As
a result of these arrangements, the depositary, or its nominee, will be the sole registered owner and holder of all securities represented
by a global security, and investors will be permitted to own only beneficial interests in a global security. Beneficial interests must
be held by means of an account with a broker, bank or other financial institution that in turn has an account with the depositary or with
another institution that does. Thus, an investor whose security is represented by a global security will not be a holder of the security,
but only an indirect holder of a beneficial interest in the global security.
If the prospectus supplement for a particular
security indicates that the security will be issued in global form only, then the security will be represented by a global security at
all times unless and until the global security is terminated. If termination occurs, we may issue the securities through another book-entry
clearing system or decide that the securities may no longer be held through any book-entry clearing system.
Special Considerations for Global Securities
As an indirect holder, an investor’s rights
relating to a global security will be governed by the account rules of the investor’s financial institution and of the depositary,
as well as general laws relating to securities transfers. We do not recognize an indirect holder as a holder of securities and instead
deal only with the depositary that holds the global security.
If securities are issued only in the form of a
global security, an investor should be aware of the following:
| · | An investor cannot cause the securities to be registered in his or her name, and cannot obtain non-global certificates for his or
her interest in the securities, except in the special situations we describe below; |
| · | An investor will be an indirect holder and must look to his or her own bank or broker for payments on the securities and protection
of his or her legal rights relating to the securities, as we describe under “Legal Ownership of Securities” above; |
| · | An investor may not be able to sell interests in the securities to some insurance companies and to other institutions that are required
by law to own their securities in non-book-entry form; |
| · | An investor may not be able to pledge his or her interest in a global security in circumstances where certificates representing the
securities must be delivered to the lender or other beneficiary of the pledge in order for the pledge to be effective; |
| · | The depositary’s policies, which may change from time to time, will govern payments, transfers, exchanges and other matters
relating to an investor’s interest in a global security. We and any applicable trustee have no responsibility for any aspect of
the depositary’s actions or for its records of ownership interests in a global security. We and the trustee also do not supervise
the depositary in any way; |
| · | The depositary may, and we understand that DTC will, require that those who purchase and sell interests in a global security within
its book-entry system use immediately available funds, and your broker or bank may require you to do so as well; and |
| · | Financial institutions that participate in the depositary’s book-entry system, and through which an investor holds its interest
in a global security, may also have their own policies affecting payments, notices and other matters relating to the securities. There
may be more than one financial intermediary in the chain of ownership for an investor. We do not monitor and are not responsible for the
actions of any of those intermediaries. |
Special Situations When a Global Security Will Be Terminated
In a few special situations described below, the
global security will terminate and interests in it will be exchanged for physical certificates representing those interests. After that
exchange, the choice of whether to hold securities directly or in street name will be up to the investor. Investors must consult their
own banks or brokers to find out how to have their interests in securities transferred to their own name, so that they will be direct
holders. We have described the rights of holders and street name investors above.
The global security will terminate when any of
the following special situations occur:
| · | if the depositary notifies us that it is unwilling, unable or no longer qualified to continue as depositary for that global security
and we do not appoint another institution to act as depositary within 90 days; |
| · | if we notify any applicable trustee that we wish to terminate that global security; or |
| · | if an event of default has occurred with regard to securities represented by that global security and has not been cured or waived. |
The prospectus supplement may also list additional
situations for terminating a global security that would apply only to the particular series of securities covered by the prospectus supplement.
When a global security terminates, the depositary, and not we or any applicable trustee, is responsible for deciding the names of the
institutions that will be the initial direct holders.
Certain
Provisions of Maryland Law and of Our Charter and Bylaws
The following summary of certain provisions of
Maryland law and of our charter and bylaws does not purport to be complete and is subject to and qualified in its entirety by reference
to our charter and bylaws, which are incorporated herein by reference to the Company’s SEC filings, and to Maryland law. See “Where
You Can Find More Information.”
Our Board of Directors
Under our charter and bylaws, the number of directors
of our company may be established, increased or decreased only by a majority of our entire board of directors but may not be fewer than
the minimum number required under the MGCL (which is one) nor, unless our bylaws are amended, more than 15.
Removal of Directors
Our charter provides that, subject to the rights
of holders of one or more classes or series of preferred stock to elect or remove one or more directors, a director may be removed, but
only for cause (as defined in our charter), and then only by the affirmative vote of at least two-thirds of the votes entitled to be cast
generally in the election of directors.
Business Combinations
Under the MGCL, certain “business combinations”
(including a merger, consolidation, statutory share exchange or, in certain circumstances specified under the statute, an asset transfer
or issuance or reclassification of equity securities) between a Maryland corporation and any interested stockholder, or an affiliate of
such an interested stockholder, are prohibited for five years after the most recent date on which the interested stockholder becomes an
interested stockholder. Maryland law defines an interested stockholder as:
| · | any person who beneficially owns, directly or indirectly, 10% or more of the voting power of the corporation’s outstanding voting
stock; or |
| · | an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial
owner of 10% or more of the voting power of the then-outstanding voting stock of the corporation. |
A person is not an interested stockholder under
the MGCL if the board of directors approved in advance the transaction by which the person otherwise would have become an interested stockholder.
In approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of the
approval, with any terms and conditions determined by it.
After such five-year period, any such business
combination must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:
| · | 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and |
| · | two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested
stockholder with whom (or with whose affiliate) the business combination is to be effected or held by an affiliate or associate of the
interested stockholder. |
These supermajority approval requirements do not
apply if, among other conditions, the corporation’s common stockholders receive a minimum price (as defined in the MGCL) for their
shares and the consideration is received in cash or in the same form as previously paid by the interested stockholder for its shares.
These provisions of the MGCL do not apply, however,
to business combinations that are approved or exempted by a corporation’s board of directors prior to the time that the interested
stockholder becomes an interested stockholder. As permitted by the MGCL, our board of directors has adopted a resolution exempting any
business combination between us and any other person from the provisions of this statute. Consequently, the five-year prohibition and
the supermajority vote requirements will not apply to business combinations involving us. As a result, any person will be able to enter
into business combinations with us that may not be in the best interests of our stockholders, without compliance with the supermajority
vote requirements and other provisions of the statute. However, our board of directors may repeal or modify this resolution at any time
in the future, in which case the applicable provisions of the MGCL will become applicable to business combinations between us and interested
stockholders.
Control Share Acquisitions
The MGCL provides that a holder of “control
shares” of a Maryland corporation acquired in a “control share acquisition” has no voting rights with respect to those
shares except to the extent approved by the affirmative vote of at least two-thirds of the votes entitled to be cast by stockholders entitled
to exercise or direct the exercise of the voting power in the election of directors generally but excluding: (1) the person who has
made or proposes to make the control share acquisition; (2) any officer of the corporation; or (3) any employee of the corporation
who is also a director of the corporation. “Control shares” are voting shares of stock that, if aggregated with
all other such shares of stock previously acquired by the acquirer or in respect of which the acquirer is able to exercise or direct the
exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing
directors within one of the following ranges:
| · | one-tenth or more but less than one-third; |
| · | one-third or more but less than a majority; or |
| · | a majority or more of all voting power. |
Control shares do not include shares that the
acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A “control share
acquisition” means the acquisition, directly or indirectly, of ownership of, or the power to direct the exercise of voting
power with respect to, issued and outstanding control shares, subject to certain exceptions.
A person who has made or proposes to make a control
share acquisition, upon satisfaction of certain conditions (including an undertaking to pay expenses and making an “acquiring person
statement” as described in the MGCL), may compel the board of directors of the Company to call a special meeting of stockholders
to be held within 50 days of demand to consider the voting rights of the control shares. If no request for a special meeting is made,
the corporation may itself present the question at any stockholders meeting.
If voting rights of control shares are not approved
at the meeting or if the acquiring person does not deliver an “acquiring person statement” as required by the statute, then,
subject to certain conditions and limitations, the corporation may redeem any or all of the control shares (except those for which voting
rights have previously been approved) for fair value determined, without regard to the absence of voting rights for the control shares,
as of the date of the last control share acquisition by the acquirer or, if a meeting of stockholders at which the voting rights of such
shares are considered and not approved is held, as of the date of such meeting. If voting rights for control shares are approved at a
stockholders meeting and the acquirer becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise
appraisal rights. The fair value of the shares as determined for purposes of such appraisal rights may not be less than the highest price
per share paid by the acquirer in the control share acquisition.
The control share acquisition statute does not
apply (1) to shares acquired in a merger, consolidation or statutory share exchange if the corporation is a party to the transaction
or (2) to acquisitions approved or exempted by the charter or bylaws of the corporation.
Our bylaws contain a provision exempting from
the control share acquisition statute any and all control share acquisitions by any person of shares of our stock. There can be no assurance
that such provision will not be amended or eliminated at any time in the future.
Subtitle 8
Subtitle 8 of Title 3 of the MGCL permits a Maryland
corporation with a class of equity securities registered under the Exchange Act and at least three independent directors to elect, by
provision in its charter or bylaws or a resolution of its board of directors and notwithstanding any contrary provision in the charter
or bylaws, to be subject to any or all of the following five provisions:
| · | a two-thirds vote requirement for removing a director; |
| · | a requirement that the number of directors be fixed only by vote of the directors; |
| · | a requirement that a vacancy on the board be filled only by a vote of the remaining directors (whether or not they constitute a quorum)
and for the remainder of the full term of the class of directors in which the vacancy occurred and until a successor is elected and qualifies;
or |
| · | a provision requiring that a special meeting of stockholders be called upon the written request of stockholders entitled to cast a
majority of all the votes entitled to be cast at such meeting. |
Our charter provides that vacancies on our board
of directors may be filled only by the affirmative vote of a majority of the directors remaining in office, even if the remaining directors
do not constitute a quorum, and any director elected to fill a vacancy will serve for the remainder of the full term of the directorship.
We have not elected to be subject to any of the other provisions of Subtitle 8, including the provisions that would permit us to classify
our board of directors without stockholder approval. Moreover, our charter provides that, without the affirmative vote of a majority of
the votes cast on the matter by stockholders entitled to vote generally in the election of directors, we may not elect to be subject to
any of these additional provisions of Subtitle 8. Through provisions in our charter and bylaws unrelated to Subtitle 8, we (1) vest
in our board of directors the exclusive power to fix the number of directors, (2) require, unless called by our chairman, our chief
executive officer, our president or our board of directors, the request of stockholders entitled to cast not less than a majority of all
the votes entitled to be cast at the meeting to call a special meeting of stockholders and (3) provide that, subject to the rights
of holders of one or more classes or series of preferred stock to elect or remove one or more directors, a director may be removed, but
only for cause (as defined in our charter), and then only by the affirmative vote of at least two-thirds of the votes entitled to be cast
generally in the election of directors.
Amendments to Our Charter and Bylaws
Except as described herein and as provided in
the MGCL, amendments to our charter must be advised by our board of directors and approved by the affirmative vote of our stockholders
entitled to cast a majority of all of the votes entitled to be cast on the matter. Any amendment to the provisions of our charter relating
to the removal of directors, the ownership and transfer restrictions relating to our REIT status or the provisions in our charter setting
the vote required to amend such provisions of our charter requires the affirmative vote of at least two-thirds of all the votes entitled
to be cast on the matter. Our board of directors has the power to amend or repeal any provision of our bylaws. In addition, without the
approval of our board of directors, our stockholders may amend or repeal any provision of our bylaws and adopt new bylaw provisions if
any such amendment, repeal or adoption is approved by the affirmative vote of a majority of the votes entitled to be cast on the matter.
Meetings of Stockholders
Under our bylaws and pursuant to Maryland law,
annual meetings of stockholders will be held each year at a date and at the time and place determined by our board of directors. Special
meetings of stockholders may be called by our board of directors, the chairman of our board of directors, our president or our chief executive
officer. Additionally, subject to the provisions of our bylaws, special meetings of the stockholders to act on any matter must be called
by our secretary upon the written request of stockholders entitled to cast a majority of all the votes entitled to be cast on such matter
at such meeting who have requested the special meeting in accordance with the procedures set forth in, and provided the information and
certifications required by, our bylaws. Only matters set forth in the notice of the special meeting may be considered and acted upon at
such a meeting. Our secretary will inform the requesting stockholders of the reasonably estimated cost of preparing and delivering the
notice of meeting (including our proxy materials), and the requesting stockholder must pay such estimated cost before our secretary may
prepare and deliver the notice of the special meeting.
Corporate Opportunities
Our charter provides that, to the maximum extent
permitted by Maryland law, each of CTO, its affiliates, each of their representatives, and each of our directors or officers who is also
an officer, employee, agent, affiliate or designee of CTO or any of CTO’s affiliates has the right to, and has no duty not to, (x) directly
or indirectly engage in the same or similar business activities or lines of business as us, including those deemed to be competing with
us, or (y) directly or indirectly do business with any of our clients, customers or suppliers. In the event that CTO or any of its
affiliates or employees, or any of their representatives or designees, acquires knowledge of a potential transaction or matter that may
be a corporate opportunity for us, CTO, its affiliates and employees and any of their representatives or designees shall have no duty
to communicate or present such corporate opportunity to us or any of our affiliates and shall not be liable to us or any of our affiliates,
subsidiaries, stockholders or other equity holders for breach of any duty by reason of the fact that CTO or any of its affiliates or employees,
or any of their representatives or designees, directly or indirectly, pursues or acquires such opportunity for themselves, directs such
opportunity to another person, or does not present such opportunity to us or any of our affiliates; provided, however, that
such corporate opportunity is not presented to such person in his or her capacity as a director or officer of us.
Charter Amendments and Extraordinary Transactions
Under Maryland law, a Maryland corporation generally
cannot dissolve, amend its charter, merge, sell all or substantially all of its assets, convert into another form of entity, engage in
a statutory share exchange or engage in similar transactions unless such transaction is declared advisable by the board of directors and
approved by the affirmative vote of stockholders entitled to cast at least two-thirds of all of the votes entitled to be cast on the matter
unless a lesser percentage (but not less than a majority of the votes entitled to be cast on the matter) is set forth in the corporation’s
charter. Our charter provides for approval of these matters by the affirmative vote of stockholders entitled to cast a majority of the
votes entitled to be cast on such matter, except that the affirmative vote of stockholders holding at least two-thirds of the shares entitled
to vote on such matter is required to amend the provisions of our charter relating to the removal of directors, the provisions relating
to our ownership and transfer restrictions and the vote required to amend the removal provisions. Maryland law also permits a corporation
to transfer all or substantially all of its assets without the approval of its stockholders to an entity all of the equity interests of
which are owned, directly or indirectly, by the corporation. Because our operating assets may be held by our Operating Partnership or
its wholly-owned subsidiaries, these subsidiaries may be able to merge or transfer all or substantially all of their assets without the
approval of our stockholders.
Advance Notice of Director Nominations and New Business
Our bylaws provide that:
| · | with respect to an annual meeting of stockholders, nominations of individuals for election to our board of directors and the proposal
of business to be considered by stockholders at the annual meeting may be made only: |
| · | pursuant to our notice of the meeting; |
| · | by or at the direction of our board of directors; or |
| · | by a stockholder who was a stockholder of record at the record date set by the board of directors for the meeting, at the time of
giving of the notice of the meeting and at the time of the annual meeting (and any postponement or adjustment thereof), who is entitled
to vote at the meeting in the election of each individual so nominated or on such other business and who has complied with the advance
notice procedures set forth in, and provided the information and certifications required by, our bylaws; and |
| · | with respect to special meetings of stockholders, only the business specified in our company’s notice of meeting may be brought
before the special meeting of stockholders, and nominations of individuals for election to our board of directors may be made only: |
| · | by or at the direction of our board of directors; or |
| · | provided that the special meeting has been called in accordance with our bylaws for the purpose of electing directors, by any stockholder
who is a stockholder of record at the record date for the special meeting, at the time of giving of the notice required by our bylaws
and at the time of the meeting (and any postponement or adjustment thereof), who is entitled to vote at the meeting in the election of
each individual so nominated and who has complied with the advance notice provisions set forth in, and provided the information and certifications
required by, our bylaws. |
The purpose of requiring stockholders to give
advance notice of nominations and other proposals is to afford our board of directors and our stockholders the opportunity to consider
the qualifications of the proposed nominees or the advisability of the other proposals and, to the extent considered necessary by our
board of directors, to inform stockholders and make recommendations regarding the nominations or other proposals. Although our bylaws
do not give our board of directors the power to disapprove timely stockholder nominations and proposals, our bylaws may have the effect
of precluding a contest for the election of directors or proposals for other action if the proper procedures are not followed, and of
discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors to our board of
directors or to approve its own proposal.
Anti-takeover Effect of Certain Provisions of Maryland Law and of
Our Charter and Bylaws
The restrictions on ownership and transfer of
our stock discussed below, the supermajority vote required to remove directors and to amend certain provisions of our charter, our election
to be subject to the provision of Subtitle 8 vesting in our board of directors the exclusive power to fill vacancies on our board of directors,
and the advance notice provisions of our bylaws could delay, defer or prevent a transaction or a change of control of our company. Likewise,
if our board of directors were to elect for us to be subject to the business combination provisions of the MGCL or if the provision in
our bylaws opting out of the control share acquisition provisions of the MGCL were amended or rescinded, these provisions of the MGCL
could have similar anti-takeover effects.
Further, a majority of our entire board of directors
has the power to increase or decrease the aggregate number of authorized shares of stock or the number of shares of any class or series
of stock that we are authorized to issue, to classify and reclassify any unissued shares of our stock into other classes or series of
stock and to authorize us to issue the newly classified shares, as discussed under the headings “Description of Capital Stock—General”
and “Description of Capital Stock—Power to Reclassify Unissued Stock,” and could authorize the issuance of shares of
common stock or another class or series of stock, including a class or series of preferred stock, that could have the effect of delaying,
deferring or preventing a change in control of us. These actions may be taken without stockholder approval unless such approval is required
by applicable law, the terms of any other class or series of our stock or the rules of any stock exchange or automated quotation
system on which any of our stock is listed or traded. We believe that the power of our board of directors to increase or decrease the
number of authorized shares of stock and to classify or reclassify unissued shares of our common stock or preferred stock and thereafter
to cause us to issue such shares of stock will provide us with increased flexibility in structuring possible future financings and acquisitions
and in meeting other needs which might arise.
Our charter and bylaws also provide that the number
of directors may be established only by our board of directors, which prevents our stockholders from increasing the number of our directors
and filling any vacancies created by such increase with their own nominees. The provisions of our bylaws discussed above under the headings
“—Meetings of Stockholders” and “—Advance Notice of Director Nominations and New Business” require
stockholders seeking to call a special meeting, nominate an individual for election as a director or propose other business at an annual
or special meeting to comply with certain notice and information requirements. We believe that these provisions will help to assure the
continuity and stability of our business strategies and policies as determined by our board of directors and promote good corporate governance
by providing us with clear procedures for calling special meetings, information about a stockholder proponent’s interest in us and
adequate time to consider stockholder nominees and other business proposals. However, these provisions, alone or in combination, could
make it more difficult for our stockholders to remove incumbent directors or fill vacancies on our board of directors with their own nominees
and could delay, defer or prevent a change in control, including a proxy contest or tender offer that might involve a premium price for
our common stockholders or otherwise be in the best interest of our stockholders.
Exclusive Forum
Our bylaws provide that, unless we consent in
writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland, or, if that court does not have jurisdiction,
the United States District Court for the District of Maryland, Northern Division, will be the sole and exclusive forum for (a) any
Internal Corporate Claim, as such term is defined in the MGCL, (b) any derivative action or proceeding brought on our behalf other
than actions arising under the federal securities laws, (c) any action asserting a claim of breach of any duty owed by any of our
directors, officers or other employees to us or to our stockholders, (d) any action asserting a claim against us or any of our directors,
officers or other employees arising pursuant to any provision of the MGCL or our charter or bylaws or (e) any other action asserting
a claim against us or any of our directors, officers or other employees that is governed by the internal affairs doctrine.
Limitation of Liability and Indemnification of Directors and Officers
Maryland law permits a Maryland corporation to
include in its charter a provision eliminating the liability of its directors and officers to the corporation and its stockholders for
money damages except for liability resulting from actual receipt of an improper benefit or profit in money, property or services or active
and deliberate dishonesty that is established by a final judgment and is material to the cause of action. Our charter contains such a
provision that eliminates such liability to the maximum extent permitted by Maryland law.
The MGCL requires a Maryland corporation (unless
its charter provides otherwise, which our charter does not) to indemnify a director or officer who has been successful, on the merits
or otherwise, in the defense of any proceeding to which he or she is made or threatened to be made a party by reason of his or her service
in that capacity. The MGCL permits a Maryland corporation to indemnify its present and former directors and officers, among others, against
judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to or in
which they may be made or are threatened to be made a party or witness by reason of their service in those or other capacities unless
it is established that:
| · | the act or omission of the director or officer was material to the matter giving rise to the proceeding and: |
| · | was committed in bad faith; or |
| · | was the result of active and deliberate dishonesty; |
| · | the director or officer actually received an improper personal benefit in money, property or services; or |
| · | in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. |
However, under the MGCL, a Maryland corporation
may not indemnify a director or officer for an adverse judgment in a suit by or on behalf of the corporation or if the director or officer
was adjudged liable on the basis that personal benefit was improperly received, unless, in either case, a court orders indemnification,
and then only for expenses. A court may order indemnification if it determines that the director or officer is fairly and reasonably entitled
to indemnification, even though the director or officer did not meet the prescribed standard of conduct or was adjudged liable on the
basis that personal benefit was improperly received.
In addition, the MGCL permits a Maryland corporation
to advance reasonable expenses to a director or officer upon the corporation’s receipt of:
| · | a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary
for indemnification by the corporation; and |
| · | a written undertaking, which may be unsecured, by the director or officer or on the director’s or officer’s behalf to
repay the amount paid if it shall ultimately be determined that the standard of conduct has not been met. |
Our charter obligates us, to the maximum extent
permitted by Maryland law in effect from time to time, to indemnify and to pay or reimburse reasonable expenses in advance of final disposition
of a proceeding without requiring a preliminary determination of the director’s or officer’s ultimate entitlement to indemnification
to:
| · | any individual who is a present or former director or officer and who is made or threatened to be made a party to, or witness in,
the proceeding by reason of his or her service in that capacity; or |
| · | any individual who, while a director or officer of our company and at our request, serves or has served as a director, officer, partner,
member, manager, trustee, employee or agent of another corporation, real estate investment trust, partnership, limited liability company,
joint venture, trust, employee benefit plan or any other enterprise and who is made or threatened to be made a party to, or witness in,
the proceeding by reason of his or her service in that capacity. |
The rights to indemnification and advance of expenses
described above vest immediately upon election of a director or officer. Our charter also permits us, with the approval of our board of
directors, to indemnify and advance expenses to any person who served a predecessor of ours in any of the capacities described above and
to any employee or agent of our company or a predecessor of our company.
We maintain directors’ and officers’
liability insurance which would indemnify our directors and officers against damages arising out of certain kinds of claims which might
be made against them based on their negligent acts or omissions while acting in their capacity as such.
Indemnification Agreements
We have entered into indemnification agreements
with each of our directors and executive officers that obligate us to indemnify them to the maximum extent permitted by Maryland law as
discussed above under “—Limitation of Liability and Indemnification of Directors and Officers.” The indemnification
agreements provide that, if a director or executive officer is a party to, or witness in, or is threatened to be made a party to, or witness
in, any proceeding by reason of his or her service as a director, officer, employee or agent of our company or as a director, officer,
partner, member, manager, fiduciary, employee, agent or trustee of any other foreign or domestic corporation, real estate investment trust,
partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that he or she is or was serving
in such capacity at our request, or the request of our external manager, we must indemnify the director or executive officer for all expenses
and liabilities actually and reasonably incurred by him or her, or on his or her behalf, to the maximum extent permitted under Maryland
law, including in any proceeding brought by the director or executive officer to enforce his or her rights under the indemnification agreement,
to the extent provided by the agreement. The indemnification agreements also require us to advance reasonable expenses incurred by the
indemnitee within ten days of the receipt by us of a statement from the indemnitee requesting the advance, provided the statement evidences
the expenses and is accompanied or preceded by:
| · | a written affirmation of the indemnitee’s good faith belief that he or she has met the standard of conduct necessary for indemnification;
and |
| · | a written undertaking, which may be unsecured, by the indemnitee or on his or her behalf to repay the amount paid if it shall ultimately
be established that the standard of conduct has not been met. |
The indemnification agreements also provide for
procedures for the determination of entitlement to indemnification, including requiring such determination be made by independent counsel
after a change of control of us.
REIT Qualification
Our charter provides that our board of directors
may revoke or otherwise terminate our election to be taxed as a REIT for U.S. federal income tax purposes, without approval of our stockholders,
if it determines that it is no longer in our best interest to continue to qualify as a REIT.
Restrictions on Ownership and Transfer
For us to maintain our qualification as a REIT,
during each taxable year commencing with our taxable year ended December 31, 2020, our shares of stock must be beneficially owned
by 100 or more persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year.
Also, not more than 50% of the value of our outstanding shares of stock may be owned, directly or indirectly, by five or fewer individuals
(as defined in the Code, to include certain entities) during the last half of a taxable year commencing with our taxable year ended December 31,
2020.
Because our board of directors believes it is
at present essential for us to qualify as a REIT, our charter, subject to certain exceptions, restricts the amount of our shares of stock
that a person may beneficially or constructively own. Our charter provides that, subject to certain exceptions, no person may beneficially
or constructively own more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of any
class or series of our capital stock.
Our charter also prohibits any person from (i) beneficially
or constructively owning shares of our capital stock to the extent that such beneficial or constructive ownership would result in our
being “closely held” within the meaning of Section 856(h) of the Code (without regard to whether the ownership interest
is held during the last half of the taxable year), (ii) transferring shares of our capital stock to the extent that such transfer,
if effective, would result in shares of our capital stock being beneficially owned by less than 100 persons (determined under the principles
of Section 856(a)(5) of the Code) (the restriction described in this subsection (ii), the “100 Holder Limit”), (iii) beneficially
or constructively owning shares of our capital stock to the extent such beneficial or constructive ownership would cause us to constructively
own 10% or more of the ownership interests in a tenant (other than a taxable REIT subsidiary (“TRS”) (as defined in Section 856(l) of
the Code)) of our real property within the meaning of Section 856(d)(2)(B) of the Code or (iv) beneficially or constructively
owning or transferring shares of our capital stock if such ownership or transfer would otherwise cause us to fail to qualify as a REIT.
Any person who acquires or attempts or intends to acquire beneficial or constructive ownership of shares of our capital stock that will
or may violate any of the foregoing restrictions on transferability and ownership, or any person who would have owned shares of our capital
stock that resulted in a transfer of shares of our capital stock to a charitable trust as described below, is required to give written
notice immediately to us, or in the case of a proposed or attempted transaction, to give at least 15 days’ prior written notice,
and provide us with such other information as we may request in order to determine the effect of such transfer on our qualification as
a REIT. The foregoing restrictions on transferability and ownership will not apply if our board of directors determines that it is no
longer in our best interests to continue to qualify as a REIT.
Our board of directors, in its sole discretion,
may prospectively or retroactively exempt a person from the limits described above and may establish or increase an excepted holder percentage
limit for such person. The person seeking an exemption must provide to our board of directors such representations, covenants and undertakings
as our board of directors may deem appropriate in order to conclude that granting the exemption will not cause us to fail to qualify as
a REIT. Our board of directors may not grant such an exemption to any person if such exemption would result in our failing to qualify
as a REIT. Prior to granting any exception, our board of directors may require a ruling from the Internal Revenue Service (“IRS”)
or an opinion of counsel, in either case in form and substance satisfactory to the board of directors, in its sole discretion, in order
to determine or ensure our status as a REIT.
Any attempted transfer of shares of our capital
stock which, if effective, would violate any of the restrictions described above will result in the number of shares causing the violation
(rounded up to the nearest whole share) to be automatically transferred to a trust for the exclusive benefit of one or more charitable
beneficiaries, except that any transfer that results in the violation of the 100 Holder Limit will be void ab initio. In either case,
the proposed transferee will not acquire any rights in such shares. The automatic transfer will be deemed to be effective as of the close
of business on the business day prior to the date of the purported transfer or other event that results in the transfer to the trust.
Shares held by the trustee will be issued and outstanding shares. The proposed transferee will not benefit economically from ownership
of any shares held by the trustee, will have no rights to dividends or other distributions and will have no rights to vote or other rights
attributable to the shares held in the trust. The trustee of the trust will have all voting rights and rights to dividends or other distributions
with respect to shares held in the trust. These rights will be exercised for the exclusive benefit of the charitable beneficiary. Any
dividend or other distribution paid to a proposed transferee prior to our discovery that shares have been transferred to the trustee will
be paid by the recipient to the trustee upon demand. Any distribution authorized but unpaid will be paid when due to the trustee. Any
dividend or other distribution paid to the trustee will be held in trust for the charitable beneficiary. Subject to Maryland law, the
trustee will have the authority, in the trustee’s sole and absolute discretion, to (i) rescind as void any vote cast by the
proposed transferee prior to our discovery that the shares have been transferred to the trust and (ii) recast the vote in accordance
with the desires of the trustee acting for the benefit of the charitable beneficiary. However, if we have already taken irreversible corporate
action, then the trustee will not have the authority to rescind and recast the vote.
Within 20 days of receiving notice from us that
shares of our capital stock have been transferred to the trust, the trustee will sell the shares to a person designated by the trustee,
whose ownership of the shares will not violate the above ownership and transfer limitations. Upon the sale, the interest of the charitable
beneficiary in the shares sold will terminate and the trustee will distribute the net proceeds of the sale to the proposed transferee
and to the charitable beneficiary as follows. The proposed transferee will receive the lesser of (i) the price paid by the proposed
transferee for the shares or, if the proposed transferee did not give value for the shares in connection with the event causing the shares
to be held in the trust (e.g., a gift, devise or other similar transaction), the Market Price (as defined in our charter) of the shares
on the day of the event causing the shares to be held in the trust and (ii) the price received by the trustee (net of any commission
and other expenses of sale) from the sale or other disposition of the shares. The trustee may reduce the amount payable to the proposed
transferee by the amount of dividends or other distributions paid to the proposed transferee and owed by the proposed transferee to the
trustee. Any net sale proceeds in excess of the amount payable to the proposed transferee will be paid immediately to the charitable beneficiary.
If, prior to our discovery that shares of our capital stock have been transferred to the trustee, the shares are sold by the proposed
transferee, then (i) the shares shall be deemed to have been sold on behalf of the trust and (ii) to the extent that the proposed
transferee received an amount for the shares that exceeds the amount he, she or it was entitled to receive, the excess shall be paid to
the trustee upon demand.
In addition, shares of our capital stock held
in the trust will be deemed to have been offered for sale to us, or our designee, at a price per share equal to the lesser of (i) the
price per share in the transaction that resulted in the transfer to the trust (or, in the case of a devise or gift, the Market Price at
the time of the devise or gift) and (ii) the Market Price on the date we, or our designee, accept the offer, which we may reduce
by the amount of dividends and distributions paid to the proposed transferee and owed by the proposed transferee to the trustee. We will
have the right to accept the offer until the trustee has sold the shares. Upon a sale to us, the interest of the charitable beneficiary
in the shares sold will terminate and the trustee will distribute the net proceeds of the sale to the proposed transferee and any dividends
or other amounts held by the trustee with respect to the shares will be distributed to the charitable beneficiary.
If a transfer to a charitable trust, as described
above, would be ineffective for any reason to prevent a violation of a restriction, the transfer that would have resulted in such violation
will be void ab initio, and the proposed transferee shall acquire no rights in such shares.
Every owner of 5% or more (or such lower percentage
as required by the Code or the regulations promulgated thereunder) of shares of our capital stock, within 30 days after the end of each
taxable year, is required to give us written notice, stating his, her or its name and address, the number of shares of each class and/or
series of our stock that he, she or it beneficially owns and a description of the manner in which the shares are held. Each such owner
must provide us with such additional information as we may request in order to determine the effect, if any, of his, her or its beneficial
ownership on our status as a REIT and to ensure compliance with the ownership limits. In addition, each stockholder and each person (including
the stockholder of record) holding capital stock for a beneficial or constructive owner is required, upon demand, to provide us with such
information as we may request in order to determine our status as a REIT and to comply with the requirements of any taxing authority or
governmental authority or to determine such compliance and to ensure compliance with the ownership limit.
These ownership limitations could delay, defer
or prevent a transaction or a change in control that might involve a premium price for our capital stock or otherwise be in the best interest
of our stockholders.
Material
U.S. Federal Income Tax Considerations
This section summarizes the material U.S. federal
income tax considerations that you, as a prospective holder of our securities, may consider relevant in connection with the purchase,
ownership and disposition of our securities. Vinson & Elkins L.L.P. has acted as our counsel, has reviewed this summary, and
is of the opinion that the discussion contained herein is accurate in all material respects. Because this section is a summary, it does
not address all aspects of taxation that may be relevant to particular securityholders in light of their personal investment or tax circumstances,
or to certain types of securityholders that are subject to special treatment under the U.S. federal income tax laws, such as:
| · | tax-exempt organizations (except to the limited extent discussed in “—Taxation of Tax-Exempt Stockholders” below); |
| · | financial institutions or broker-dealers; |
| · | non-U.S. individuals and foreign corporations (except to the limited extent discussed in “—Taxation of Non-U.S. Stockholders”
below); |
| · | persons who mark-to-market our securities; |
| · | subchapter S corporations; |
| · | U.S. stockholders (as defined below) whose functional currency is not the U.S. dollar; |
| · | regulated investment companies and REITs; |
| · | holders who receive our securities through the exercise of employee stock options or otherwise as compensation; |
| · | persons holding our securities as part of a “straddle,” “hedge,” “conversion transaction,” “synthetic
security” or other integrated investment; |
| · | persons subject to the alternative minimum tax provisions of the Code; |
| · | persons subject to special tax accounting rules as a result of their use of applicable financial statements within the meaning
of Section 451(b)(3) of the Code; and |
| · | persons holding our securities through a partnership or similar pass-through entity. |
This summary assumes that securityholders hold
our securities as a capital asset for U.S. federal income tax purposes, which generally means property held for investment.
The statements in this section are not intended
to be, and should not be construed as, tax advice. The statements in this section are based on the Code, final, temporary and proposed
Treasury Regulations, the legislative history of the Code, current administrative interpretations and practices of the IRS and court decisions.
The reference to IRS interpretations and practices includes the IRS practices and policies endorsed in private letter rulings, which are
not binding on the IRS except with respect to the taxpayer that receives the ruling. In each case, these sources are relied upon as they
exist on the date of this discussion. Future legislation, Treasury Regulations, administrative interpretations and court decisions could
change the current law or adversely affect existing interpretations of current law on which the information in this section is based.
Any such change could apply retroactively. We have not received any rulings from the IRS concerning our qualification as a REIT. Accordingly,
even if there is no change in the applicable law, no assurance can be provided that the statements made in the following discussion, which
do not bind the IRS or the courts, will not be challenged by the IRS or will be sustained by a court if so challenged.
WE URGE YOU TO CONSULT YOUR TAX ADVISOR REGARDING
THE SPECIFIC TAX CONSEQUENCES TO YOU OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR SECURITIES AND OF OUR ELECTION TO BE TAXED AS A
REIT. SPECIFICALLY, WE URGE YOU TO CONSULT YOUR TAX ADVISOR REGARDING THE U.S. FEDERAL, STATE, LOCAL, FOREIGN AND OTHER TAX CONSEQUENCES
OF SUCH PURCHASE, OWNERSHIP, DISPOSITION AND ELECTION AND REGARDING POTENTIAL CHANGES IN APPLICABLE TAX LAWS.
Taxation of Our Company
We were formed in August 2019 as a Maryland
corporation. We initially elected to be taxed as a pass-through entity under subchapter S of the Code, but revoked our S corporation election
effective November 22, 2019. We elected to be taxed as a REIT for U.S. federal income tax purposes commencing with our short taxable
year that commenced upon the revocation of our S corporation election and ended December 31, 2019. We believe that, commencing with
such short taxable year, we have been organized and have operated in a manner that has enabled us to qualify for taxation as a REIT under
the U.S. federal income tax laws, and we intend to continue to operate in such a manner, but no assurance can be given that we will operate
in a manner so as to remain qualified as a REIT. This section discusses the laws governing the U.S. federal income tax treatment of a
REIT and its stockholders. These laws are highly technical and complex.
In the opinion of Vinson & Elkins L.L.P.,
we qualified to be taxed as a REIT under the U.S. federal income tax laws for our taxable years ended December 31, 2019 through December 31,
2022, and our organization and current and proposed method of operations will enable us to continue to satisfy the requirements for qualification
and taxation as a REIT under the U.S. federal income tax laws for our taxable years ending December 31, 2023 and thereafter. Investors
should be aware that Vinson & Elkins L.L.P.’s opinion is based upon various customary assumptions relating to our organization
and operation, and is conditioned upon certain representations and covenants made by our management as to factual matters, including representations
regarding our organization, the nature of our assets and income and the conduct of our business operations. Vinson & Elkins L.L.P.’s
opinion is not binding upon the IRS or any court and speaks as of the date issued. In addition, Vinson & Elkins L.L.P.’s
opinion is based on existing U.S. federal income tax law governing qualification as a REIT, which is subject to change either prospectively
or retroactively.
Moreover, our qualification and taxation as a
REIT depends upon our ability to meet, on a continuing basis, through actual annual and quarterly operating results, certain qualification
tests set forth in the U.S. federal income tax laws. Those qualification tests involve the percentage of income that we earn from specified
sources, the percentage of our assets that fall within specified categories, the diversity of ownership of our stock and the percentage
of our earnings that we distribute. Vinson & Elkins L.L.P. will not review our compliance with those tests on a continuing basis.
Accordingly, no assurance can be given that our actual results of operations for any particular taxable year will satisfy such requirements.
While we intend to operate so that we will continue to qualify as a REIT, given the highly complex nature of the rules governing
REITs, the ongoing importance of factual determinations and the possibility of future changes in our circumstances, no assurance can be
given by tax counsel or by us that we will qualify as a REIT for any particular year. Vinson & Elkins L.L.P.’s opinion
does not foreclose the possibility that we may have to use one or more of the REIT savings provisions described below, which could require
us to pay an excise or penalty tax (which could be material), in order for us to maintain our REIT qualification. For a discussion of
the tax consequences of our failure to qualify as a REIT, see “—Failure to Qualify.”
If we qualify as a REIT, we generally will not
be subject to U.S. federal income tax on the taxable income that we distribute to our stockholders. The benefit of that tax treatment
is that it avoids the “double taxation,” or taxation at both the corporate and stockholder levels, that generally applies
to distributions by a corporation to its stockholders. However, even if we qualify as a REIT, we will be subject to U.S. federal tax in
the following circumstances:
| · | We will pay U.S. federal income tax on any taxable income, including net capital gain, that we do not distribute to stockholders during,
or within a specified time period after, the calendar year in which the income is earned. |
| · | We will pay income tax at the highest U.S. federal corporate income tax rate on: |
| · | net income from the sale or other disposition of property acquired through foreclosure (“foreclosure property”) that we
hold primarily for sale to customers in the ordinary course of business, and |
| · | other non-qualifying income from foreclosure property. |
| · | We will pay a 100% tax on our net income from sales or other dispositions of property, other than foreclosure property, that we hold
primarily for sale to customers in the ordinary course of business. |
| · | If we fail to satisfy one or both of the 75% gross income test or the 95% gross income test, as described below under “—Gross
Income Tests,” and nonetheless continue to qualify as a REIT because we meet other requirements, we will pay a 100% tax on: |
| · | the gross income attributable to the greater of the amount by which we fail the 75% gross income test or the 95% gross income test,
in either case, multiplied by a fraction intended to reflect our profitability. |
| · | If, during a calendar year, we fail to distribute at least the sum of (1) 85% of our REIT ordinary income for the year, (2) 95%
of our REIT capital gain net income for the year and (3) any undistributed taxable income required to be distributed from earlier
periods, we will pay a 4% nondeductible excise tax on the excess of the required distribution over the amount we actually distributed. |
| · | We may elect to retain and pay income tax on our net long-term capital gain. In that case, a stockholder would be taxed on its proportionate
share of our undistributed long-term capital gain (to the extent that we made a timely designation of such gain to the stockholders) and
would receive a credit or refund for its proportionate share of the tax we paid. |
| · | We will be subject to a 100% excise tax on transactions with any TRS we may form in the future that are not conducted on an arm’s-length
basis. |
| · | If we fail to satisfy any of the asset tests, other than a de minimis failure of the 5% asset test, the 10% vote or the 10% value
test, as described below under “—Asset Tests,” as long as the failure was due to reasonable cause and not to willful
neglect, we file a schedule with the IRS describing each asset that caused such failure and we dispose of the assets causing the failure
or otherwise comply with the asset tests within six months after the last day of the quarter in which we identify such failure, we will
pay a tax equal to the greater of $50,000 or the highest U.S. federal corporate income tax rate (currently 21%) on the net income from
the non-qualifying assets during the period in which we failed to satisfy the asset tests. |
| · | If we fail to satisfy one or more requirements for REIT qualification, other than the gross income tests and the asset tests, and
such failure is due to reasonable cause and not to willful neglect, we will be required to pay a penalty of $50,000 for each such failure. |
| · | If we acquire any asset from an entity treated as a C corporation (i.e., a corporation that generally is subject to full corporate-level
tax) in a merger or other transaction in which we acquire a basis in the asset that is determined by reference either to such entity’s
basis in the asset or to another asset, we will pay tax at the highest applicable regular U.S. federal corporate income tax rate (currently
21%) if we recognize gain on the sale or disposition of the asset during the five-year period after we acquire the asset provided no election
is made for the transaction to be taxable on a current basis. The amount of gain on which we will pay tax is the lesser of: |
| · | the amount of gain that we recognize at the time of the sale or disposition, and |
| · | the amount of gain that we would have recognized if we had sold the asset at the time we acquired the asset. |
| · | We may be required to pay monetary penalties to the IRS in certain circumstances, including if we fail to meet recordkeeping requirements
intended to monitor our compliance with rules relating to the composition of a REIT’s stockholders, as described below in “—Recordkeeping
Requirements.” |
| · | The earnings of our lower-tier entities that are treated as C corporations, including any TRS we may form in the future, will be subject
to U.S. federal corporate income tax. |
In addition, notwithstanding our qualification
as a REIT, we may also have to pay certain state and local income taxes because not all states and localities treat REITs in the same
manner that they are treated for U.S. federal income tax purposes. Moreover, as further described below, any TRS we may form in the future
will be subject to U.S. federal, state and local corporate income tax on its taxable income.
Requirements for Qualification
A REIT is a corporation, trust or association
that meets each of the following requirements:
| 1. | It is managed by one or more trustees or directors. |
| 2. | Its beneficial ownership is evidenced by transferable shares or by transferable certificates of beneficial interest. |
| 3. | It would be taxable as a domestic corporation, but for the REIT provisions of the U.S. federal income tax laws. |
| 4. | It is neither a financial institution nor an insurance company subject to special provisions of the U.S. federal income tax laws. |
| 5. | At least 100 persons are beneficial owners of its shares or ownership certificates. |
| 6. | Not more than 50% in value of its outstanding shares or ownership certificates is owned, directly or indirectly, by five or fewer
individuals, which the Code defines to include certain entities, during the last half of any taxable year. |
| 7. | It elects to be a REIT, or has made such election for a previous taxable year, and satisfies all relevant filing and other administrative
requirements established by the IRS that must be met to elect and maintain REIT status. |
| 8. | It meets certain other qualification tests, described below, regarding the nature of its income and assets and the distribution of
its income. |
| 9. | It uses a calendar year for U.S. federal income tax purposes and complies with the recordkeeping requirements of the U.S. federal
income tax laws. |
| 10. | It has not been a party to a spin-off transaction that is tax-deferred under Section 355 of the Code during the applicable period. |
We must meet requirements 1 through 4, 8 and 9
during our entire taxable year and must meet requirement 5 during at least 335 days of a taxable year of 12 months, or during a proportionate
part of a taxable year of less than 12 months. Requirements 5 and 6 applied to us beginning with our 2020 taxable year. If we comply with
all the requirements for ascertaining the ownership of our outstanding stock in a taxable year and have no reason to know that we violated
requirement 6, we will be deemed to have satisfied requirement 6 for that taxable year. For purposes of determining stock ownership under
requirement 6, an “individual” generally includes a supplemental unemployment compensation benefits plan, a private foundation
or a portion of a trust permanently set aside or used exclusively for charitable purposes. An “individual,” however, generally
does not include a trust that is a qualified employee pension or profit sharing trust under the U.S. federal income tax laws, and beneficiaries
of such a trust will be treated as holding our stock in proportion to their actuarial interests in the trust for purposes of requirement
6.
Our charter provides restrictions regarding the
transfer and ownership of shares of our outstanding capital stock (see “Certain Provisions of Maryland Law and of Our Charter and
Bylaws —Restrictions on Ownership and Transfer”). We believe that we have issued sufficient stock with sufficient diversity
of ownership to satisfy requirements 5 and 6 above. The restrictions in our charter are intended (among other things) to assist us in
continuing to satisfy requirements 5 and 6 above. These restrictions, however, may not ensure that we will, in all cases, be able to satisfy
such stock ownership requirements. If we fail to satisfy these stock ownership requirements, we may fail to remain qualified as a REIT.
Qualified
REIT Subsidiaries. A corporation that is a “qualified REIT subsidiary” is not treated as a corporation separate
from its parent REIT. All assets, liabilities and items of income, deduction and credit of a “qualified REIT subsidiary” are
treated as assets, liabilities and items of income, deduction and credit of the REIT. A “qualified REIT subsidiary” is a corporation,
other than a TRS, all of the stock of which is owned by the REIT. Thus, in applying the requirements described herein, any “qualified
REIT subsidiary” that we own will be ignored, and all assets, liabilities and items of income, deduction and credit of such subsidiary
will be treated as our assets, liabilities and items of income, deduction and credit.
Other
Disregarded Entities and Partnerships. An unincorporated domestic entity, such as a partnership or limited liability company
that has a single owner for U.S. federal income tax purposes, generally is not treated as an entity separate from its owner for U.S. federal
income tax purposes. An unincorporated domestic entity with two or more owners for U.S. federal income tax purposes is generally treated
as a partnership for U.S. federal income tax purposes. In the case of a REIT that is a partner in a partnership that has other partners,
the REIT is treated as owning its proportionate share of the assets of the partnership and as earning its allocable share of the gross
income of the partnership for purposes of the applicable REIT qualification tests. Our proportionate share for purposes of the 10% value
test (see “—Asset Tests”) is based on our proportionate interest in the equity interests and certain debt securities
issued by the partnership. For all of the other asset and income tests, our proportionate share is based on our proportionate interest
in the capital interests in the partnership. Our proportionate share of the assets, liabilities and items of income of any partnership,
joint venture or limited liability company that is treated as a partnership for U.S. federal income tax purposes in which we acquire an
equity interest, directly or indirectly, will be treated as our assets and gross income for purposes of applying the various REIT qualification
requirements.
We have control of our Operating Partnership and
intend to control any subsidiary partnerships and limited liability companies, and we intend to operate them in a manner consistent with
the requirements for our qualification as a REIT. We may from time to time be a limited partner or non-managing member in some of our
partnerships and limited liability companies. If a partnership or limited liability company in which we own an interest takes or expects
to take actions that could jeopardize our status as a REIT or require us to pay tax, we may be forced to dispose of our interest in such
entity. In addition, it is possible that a partnership or limited liability company could take an action which could cause us to fail
a gross income or asset test and that we would not become aware of such action in time to dispose of our interest in the partnership or
limited liability company or take other corrective action on a timely basis. In that case, we could fail to qualify as a REIT unless we
were able to qualify for a statutory REIT “savings” provision, which could require us to pay a significant penalty tax to
maintain our REIT qualification.
Taxable
REIT Subsidiaries. A REIT may own up to 100% of the stock of one or more TRSs. A TRS is a fully taxable corporation that may
earn income that would not be qualifying income if earned directly by the parent REIT. The subsidiary and the REIT must jointly elect
to treat the subsidiary as a TRS. A corporation (other than a REIT) of which a TRS directly or indirectly owns more than 35% of the voting
power or value of the outstanding securities will automatically be treated as a TRS. We will not be treated as holding the assets of a
TRS or as receiving any income that the TRS earns. Rather, the stock issued by a TRS to us will be an asset in our hands, and we will
treat the distributions paid to us from such TRS, if any, as income to the extent of the TRS’s earnings and profits. This treatment
may affect our compliance with the gross income and asset tests. Because we will not include the assets and gross income of TRSs in determining
our compliance with the REIT requirements, we may use such entities to undertake activities indirectly, such as earning fee income, that
the REIT rules might otherwise preclude us from doing directly or through pass-through subsidiaries. Overall, no more than 20% of
the value of a REIT’s assets may consist of stock or securities of one or more TRSs.
Several provisions of the Code regarding the arrangements
between a REIT and its TRSs ensure that a TRS will be subject to an appropriate level of U.S. federal income tax. For example, deductions
are disallowed for business interest expense (even if paid to third parties) in excess of the sum of a taxpayer’s business interest
income and 30% (adjusted, in the absence of an election otherwise, to 50% for the 2020 taxable year under the Coronavirus Aid, Relief,
and Economic Security Act of 2020 (the “CARES Act”)) of the adjusted taxable income of the business, which is its taxable
income computed without regard to business interest income or expense, net operating losses (“NOLs”) or the pass-through income
deduction (and for taxable years before 2022, excluded depreciation and amortization). Such limitations may also impact the amount of
U.S. federal income tax paid by a TRS. Further, the TRS rules impose a 100% excise tax on certain transactions between a TRS and
its parent REIT, such as intercompany loans, or the REIT’s tenants that are not conducted on an arm’s length basis. We intend
to scrutinize all of our transactions with any TRSs and to conduct such transactions on an arm’s-length basis; however, we cannot
assure you that we will be successful in avoiding this excise tax.
Rent that we receive from a TRS will qualify as
“rents from real property” as long as (1) at least 90% of the leased space in the property is leased to persons other
than TRSs and related-party tenants and (2) the amount paid by the TRS to rent space at the property is substantially comparable
to rents paid by other tenants of the property for comparable space, as described in further detail below under “—Gross Income
Tests—Rents from Real Property.” If we lease space to a TRS in the future, we will seek to comply with these requirements.
Gross Income Tests
We must satisfy two gross income tests annually
to qualify as a REIT. First, at least 75% of our gross income for each taxable year must consist of defined types of income that we derive,
directly or indirectly, from investments relating to real property or mortgages on real property or qualified temporary investment income.
Qualifying income for purposes of the 75% gross income test generally includes:
| · | rents from real property; |
| · | interest on debt secured by mortgages on real property or on interests in real property; |
| · | dividends or other distributions on, and gain from the sale of, shares in other REITs; |
| · | gain from the sale of real estate assets, other than |
| · | property held primarily for sale to customers in the ordinary course of business, and |
| · | debt instruments issued by “publicly offered REITs” (i.e., REITs that are required to file annual and periodic reports
with the Securities and Exchange Commission under the Exchange Act), unless the debt instrument is secured by real property or an interest
in real property; |
| · | income derived from the operation, and gain from the sale, of foreclosure property; |
| · | amounts (other than amounts the determination of which depends in whole or in part on the income or profits of any person) received
or accrued as consideration for entering into agreements to make loans secured by mortgages on real property or interests in real property
or to purchase or lease real property (including interests in real property and interests in mortgages on real property); and |
| · | income derived from the temporary investment of new capital that is attributable to the issuance of our stock or a public offering
of our debt with a maturity date of at least five years and that we receive during the one-year period beginning on the date on which
we received such new capital. |
Second, in general, at least 95% of our gross
income for each taxable year must consist of income that is qualifying income for purposes of the 75% gross income test, other types of
interest and dividends, gain from the sale or disposition of shares or securities, or any combination of these. Cancellation of indebtedness
income and gross income from our sale of property that we hold primarily for sale to customers in the ordinary course of business are
excluded from both the numerator and the denominator in both gross income tests. In addition, income and gain from “hedging transactions”
that we enter into to hedge indebtedness incurred or to be incurred to acquire or carry real estate assets and that are clearly and timely
identified as such will be excluded from both the numerator and the denominator for purposes of the 75% and 95% gross income tests. See
“—Hedging Transactions.” In addition, certain foreign currency gains will be excluded from gross income for purposes
of one or both of the gross income tests. See “—Foreign Currency Gain.” The following paragraphs discuss the specific
application of the gross income tests to us.
Rents
from Real Property. “Rents from real property” is qualifying income for both the 75% and 95% gross income tests.
Rents will qualify as “rents from real property” only if each of the following conditions is met:
| · | First, the rent must not be based, in whole or in part, on the income or profits of any person, but may be based on a fixed percentage
or percentages of gross receipts or sales. |
| · | Second, neither we nor a direct or indirect owner of 10% or more of our stock may own, actually or constructively, 10% or more of
a tenant from whom we receive rent, other than a TRS. |
| · | Third, if the rent attributable to personal property leased in connection with a lease of real property is 15% or less of the total
rent received under the lease, then the rent attributable to personal property will qualify as rents from real property. The allocation
of rent between real and personal property is based on the relative fair market values of the real and personal property. However, if
the 15% threshold is exceeded, the rent attributable to personal property will not qualify as rents from real property. |
| · | Fourth, we generally must not operate or manage our real property or furnish or render services to our tenants, other than through
an “independent contractor” who is adequately compensated and from whom we do not derive revenue. However, we need not provide
services through an “independent contractor,” but instead may provide services directly to our tenants, if the services are
“usually or customarily rendered” in connection with the rental of space for occupancy only and are not considered to be provided
for the tenants’ convenience. In addition, we may provide a minimal amount of “non-customary” services to the tenants
of a property, other than through an independent contractor, as long as our income from the services (valued at not less than 150% of
our direct cost of performing such services) does not exceed 1% of our income from the related property. Furthermore, we may own up to
100% of the stock of a TRS which may provide customary and non-customary services to our tenants without tainting our rental income from
the related properties. |
If a portion of the rent that we receive from
a property does not qualify as “rents from real property” because the rent attributable to personal property exceeds 15% of
the total rent for a taxable year, the portion of the rent that is attributable to personal property will not be qualifying income for
purposes of either the 75% or 95% gross income test. Thus, if such rent attributable to personal property, plus any other income that
is non-qualifying income for purposes of the 95% gross income test, during a taxable year exceeds 5% of our gross income during the year,
we would lose our REIT qualification. If, however, the rent from a particular property does not qualify as “rents from real property”
because either (1) the rent is considered based on the income or profits of the related tenant, (2) the tenant either is a related
party tenant or fails to qualify for the exceptions to the related party tenant rule for TRSs or (3) we furnish non-customary
services to tenants of the property in excess of the 1% threshold, other than through a qualifying independent contractor or a TRS, none
of the rent from that property would qualify as “rents from real property.”
We do not lease or intend to lease significant
amounts of personal property pursuant to our leases. Moreover, we do not perform or intend to perform any services other than customary
ones for our tenants, unless such services are provided through independent contractors from whom we do not receive or derive income or
a TRS. Accordingly, we believe that our leases generally produce rent that qualifies as “rents from real property” for purposes
of the 75% and 95% gross income tests.
In addition to the rent, the tenants may be required
to pay certain additional charges. To the extent that such additional charges represent reimbursements of amounts that we are obligated
to pay to third parties such charges generally will qualify as “rents from real property.” To the extent such additional charges
represent penalties for nonpayment or late payment of such amounts, such charges should qualify as “rents from real property.”
However, to the extent that late charges do not qualify as “rents from real property,” they instead will be treated as interest
that qualifies for the 95% gross income test.
In addition, as described above, we may own up
to 100% of the stock of one or more TRSs. Under an exception to the related-party tenant rule described above, rent that we receive
from a TRS will qualify as “rents from real property” as long as (1) at least 90% of the leased space at the property
is leased to persons other than TRSs and related-party tenants and (2) the amount paid by the TRS to rent space at the property is
substantially comparable to rents paid by other tenants of the property for comparable space. The “substantially comparable”
requirement must be satisfied when the lease is entered into, when it is extended, and when the lease is modified, if the modification
increases the rent paid by the TRS. If the requirement that at least 90% of the leased space in the related property is rented to unrelated
tenants is met when a lease is entered into, extended or modified, such requirement will continue to be met as long as there is no increase
in the space leased to any TRS or related party tenant. Any increased rent attributable to a modification of a lease with a TRS in which
we own directly or indirectly more than 50% of the voting power or value of the stock will not be treated as “rents from real property.”
If in the future we receive rent from a TRS, we will seek to comply with this exception.
Interest.
The term “interest” generally does not include any amount received or accrued, directly or indirectly, if the determination
of such amount depends in whole or in part on the income or profits of any person. However, interest generally includes the following:
| · | an amount that is based on a fixed percentage or percentages of gross receipts or sales; and |
| · | an amount that is based on the income or profits of a debtor, as long as the debtor derives substantially all of its income from the
real property securing the debt by leasing substantially all of its interest in the property, and only to the extent that the amounts
received by the debtor would be qualifying “rents from real property” if received directly by a REIT. |
If a loan contains a provision that entitles a
REIT to a percentage of the borrower’s gain upon the sale of the real property securing the loan or a percentage of the appreciation
in the property’s value as of a specific date, income attributable to that loan provision will be treated as gain from the sale
of the property securing the loan, which generally is qualifying income for purposes of both gross income tests.
We currently do not intend to, but may in the
future, on a limited basis, originate or invest in mortgage debt and/or mezzanine loans. Interest on debt secured by a mortgage on real
property or on interests in real property generally is qualifying income for purposes of the 75% gross income test. Other than to the
extent described below, if a loan is secured by real property and other property and the highest principal amount of a loan outstanding
during a taxable year exceeds the fair market value of the real property securing the loan as of the date the REIT agreed to originate
or acquire the loan (or, if there has been a “significant modification” to the loan since its origination or acquisition by
the REIT, then as of the date of that “significant modification”), a portion of the interest income from such loan will not
be qualifying income for purposes of the 75% gross income test, but will be qualifying income for purposes of the 95% gross income test.
The portion of the interest income that will not be qualifying income for purposes of the 75% gross income test will be equal to the interest
income attributable to the portion of the principal amount of the loan that is not secured by real property, that is, the amount by which
the loan exceeds the value of the real estate that is security for the loan. However, in the case of a loan that is secured by both real
property and personal property, if the fair market value of such personal property does not exceed 15% of the total fair market value
of all property securing the loan, then the personal property securing the loan will be treated as real property for purposes of determining
the interest on such loan is qualifying income for purposes of the 75% gross income test.
Mezzanine loans are loans secured by equity interests
in an entity that directly or indirectly owns real property, rather than by a direct mortgage of the real property. IRS Revenue Procedure
2003-65 provides a safe harbor pursuant to which a mezzanine loan, if it meets each of the requirements contained in the Revenue Procedure,
will be treated by the IRS as a real estate asset for purposes of the REIT asset tests described below, and interest derived from it will
be treated as qualifying mortgage interest for purposes of the 75% gross income test. Although the Revenue Procedure provides a safe harbor
on which taxpayers may rely, it does not prescribe rules of substantive tax law. Moreover, we anticipate that any mezzanine loans
we may originate or acquire may not meet all of the requirements for reliance on this safe harbor. We intend to invest in any mortgage
debt and mezzanine loans in a manner that will enable us to continue to satisfy the gross income tests.
Dividends.
Our share of any dividends received from any corporation (including any TRS, but excluding any REIT) in which we own an equity interest
will qualify for purposes of the 95% gross income test but not for purposes of the 75% gross income test. Our share of any dividends received
from any other REIT in which we own an equity interest, if any, will be qualifying income for purposes of both gross income tests.
Prohibited
Transactions. A REIT will incur a 100% tax on the net income (including foreign currency gain) derived from any sale or other
disposition of property, other than foreclosure property, that the REIT holds primarily for sale to customers in the ordinary course of
a trade or business. We believe that none of our properties have been or will be held primarily for sale to customers and that any sales
of any of our properties have not been and will not be in the ordinary course of our business. Whether a REIT holds a property “primarily
for sale to customers in the ordinary course of a trade or business” depends, however, on the facts and circumstances in effect
from time to time, including those related to a particular property. A safe harbor to the characterization of the sale of property that
is a real estate asset by a REIT as a prohibited transaction and the 100% prohibited transaction tax is available if the following requirements
are met:
| · | the REIT has held the property for not less than two years; |
| · | the aggregate expenditures made by the REIT, or any partner of the REIT, during the two-year period preceding the date of the sale
that are includable in the basis of the property do not exceed 30% of the net selling price of the property; |
| · | either (1) during the year in question, the REIT did not make more than seven sales of property other than foreclosure property
or sales to which Section 1033 of the Code applies, (2) the aggregate adjusted bases of all such properties sold by the REIT
during the year did not exceed 10% of the aggregate bases of all of the assets of the REIT at the beginning of the year, (3) the
aggregate fair market value of all such properties sold by the REIT during the year did not exceed 10% of the aggregate fair market value
of all of the assets of the REIT at the beginning of the year, (4) (i) the aggregate adjusted bases of all such property sold
by the REIT during the year did not exceed 20% of the aggregate adjusted bases of all property of the REIT at the beginning of the year
and (ii) the average annual percentage of properties sold by the REIT compared to all the REIT’s properties (measured by adjusted
bases) in the current and two prior years did not exceed 10% or (5) (i) the aggregate fair market value of all such property
sold by the REIT during the year did not exceed 20% of the aggregate fair market value of all property of the REIT at the beginning of
the year and (ii) the average annual percentage of properties sold by the REIT compared to all the REIT’s properties (measured
by fair market value) in the current and two prior years did not exceed 10%; |
| · | in the case of property consisting of land or improvements (except for property acquired through foreclosure or lease termination),
the REIT has held the property for at least two years for the production of rental income; and |
| · | if the REIT has made more than seven sales of non-foreclosure property during the taxable year, substantially all of the marketing
and development expenditures with respect to the property were made through an independent contractor from whom the REIT derives no income
or a TRS. |
We will attempt to comply with the terms of the
safe-harbor provisions in the U.S. federal income tax laws prescribing when a property sale will not be characterized as a prohibited
transaction. We cannot assure you, however, that we can comply with the safe-harbor provisions or that we will avoid owning property that
may be characterized as property that we hold “primarily for sale to customers in the ordinary course of a trade or business.”
The 100% tax will not apply to gains from the sale of property that is held through a TRS or other taxable corporation, although such
income will be taxed to the TRS at regular U.S. federal corporate income tax rates.
Fee
Income. Fee income generally will not be qualifying income for purposes of the 75% and 95% gross income tests. Any fees earned
by any TRS we form will not be included for purposes of the gross income tests, but will be subject to U.S. federal corporate income tax,
as described above. In addition, we will be subject to a 100% excise tax on any fees earned by a TRS for services provided to us if such
fees were pursuant to an agreement determined by the IRS to be not on an arm’s-length basis.
Foreclosure
Property. We will be subject to tax at the maximum U.S. federal corporate income tax rate (currently 21%) on any income from
foreclosure property, which includes certain foreign currency gains and related deductions, other than income that otherwise would be
qualifying income for purposes of the 75% gross income test, less expenses directly connected with the production of that income. However,
gross income from foreclosure property will qualify under the 75% and 95% gross income tests. Foreclosure property is any real property,
including interests in real property, and any personal property incident to such real property:
| · | that is acquired by a REIT as the result of the REIT having bid on such property at foreclosure, or having otherwise reduced such
property to ownership or possession by agreement or process of law, after there was a default or when default was imminent on a lease
of such property or on indebtedness that such property secured; |
| · | for which the related loan was acquired by the REIT at a time when the default was not imminent or anticipated; and |
| · | for which the REIT makes a proper election to treat the property as foreclosure property. |
A REIT will not be considered to have foreclosed
on a property where the REIT takes control of the property as a mortgagee-in-possession and cannot receive any profit or sustain any loss
except as a creditor of the mortgagor. Property generally ceases to be foreclosure property at the end of the third taxable year following
the taxable year in which the REIT acquired the property, or longer if an extension is granted by the Secretary of the Treasury. However,
this grace period terminates and foreclosure property ceases to be foreclosure property on the first day:
| · | on which a lease is entered into for the property that, by its terms, will give rise to income that does not qualify for purposes
of the 75% gross income test, or any amount is received or accrued, directly or indirectly, pursuant to a lease entered into on or after
such day that will give rise to income that does not qualify for purposes of the 75% gross income test; |
| · | on which any construction takes place on the property, other than completion of a building or any other improvement where more than
10% of the construction was completed before default became imminent; or |
| · | which is more than 90 days after the day on which the REIT acquired the property and the property is used in a trade or business which
is conducted by the REIT, other than through an independent contractor from whom the REIT itself does not derive or receive any income
or a TRS. |
Hedging
Transactions. From time to time, we or our Operating Partnership may enter into hedging transactions with respect to one or
more of our assets or liabilities. Our hedging activities may include entering into interest rate swaps, caps and floors, options to purchase
such items and futures and forward contracts. Income and gain from “hedging transactions” will be excluded from gross income
for purposes of both the 75% and 95% gross income tests provided we satisfy the identification requirements discussed below. A “hedging
transaction” means either (1) any transaction entered into in the normal course of our or our Operating Partnership’s
trade or business primarily to manage the risk of interest rate, price changes or currency fluctuations with respect to borrowings made,
or to be made, or ordinary obligations incurred or to be incurred, to acquire or carry real estate assets, (2) any transaction entered
into primarily to manage the risk of currency fluctuations with respect to any item of income or gain that would be qualifying income
under the 75% or 95% gross income test (or any property which generates such income or gain) and (3) any transaction entered into
to “offset” transactions described in (1) or (2) if a portion of the hedged indebtedness is extinguished or the
related property disposed of. We are required to clearly identify any such hedging transaction before the close of the day on which it
was acquired, originated or entered into and to satisfy other identification requirements. We intend to structure any hedging transactions
in a manner that does not jeopardize our qualification as a REIT.
Foreign
Currency Gain. Certain foreign currency gains will be excluded from gross income for purposes of one or both of the gross income
tests. “Real estate foreign exchange gain” will be excluded from gross income for purposes of the 75% and 95% gross income
tests. Real estate foreign exchange gain generally includes foreign currency gain attributable to any item of income or gain that is qualifying
income for purposes of the 75% gross income test, foreign currency gain attributable to the acquisition or ownership of (or becoming or
being the obligor under) obligations secured by mortgages on real property or an interest in real property and certain foreign currency
gain attributable to certain “qualified business units” of a REIT. “Passive foreign exchange gain” will be excluded
from gross income for purposes of the 95% gross income test. Passive foreign exchange gain generally includes real estate foreign exchange
gain as described above and also includes foreign currency gain attributable to any item of income or gain that is qualifying income for
purposes of the 95% gross income test and foreign currency gain attributable to the acquisition or ownership of (or becoming or being
the obligor under) obligations. These exclusions for real estate foreign exchange gain and passive foreign exchange gain do not apply
to any certain foreign currency gain derived from dealing, or engaging in substantial and regular trading, in securities. Such gain is
treated as non-qualifying income for purposes of both the 75% and 95% gross income tests.
Failure
to Satisfy Gross Income Tests. If we fail to satisfy one or both of the gross income tests for any taxable year, we nevertheless
may qualify as a REIT for that year if we qualify for relief under certain provisions of the U.S. federal income tax laws. Those relief
provisions are generally available if:
| · | our failure to meet those tests is due to reasonable cause and not to willful neglect; and |
| · | following such failure for any taxable year, we file a schedule of the sources of our income in accordance with regulations prescribed
by the Secretary of the Treasury. |
We cannot predict, however, whether in all circumstances
we would qualify for the relief provisions. In addition, as discussed above in “—Taxation of Our Company,” even if the
relief provisions apply, we would incur a 100% tax on the gross income attributable to the greater of the amount by which we fail the
75% gross income test or the 95% gross income test multiplied, in either case, by a fraction intended to reflect our profitability.
Asset Tests
To qualify as a REIT, we also must satisfy the
following asset tests at the end of each quarter of each taxable year. First, at least 75% of the value of our total assets must consist
of:
| · | cash or cash items, including certain receivables and money market funds and, in certain circumstances, foreign currencies; |
| · | interests in real property, including leaseholds, options to acquire real property and leaseholds and personal property, to the extent
such personal property is leased in connection with real property and rents attributable to such personal property are treated as “rents
from real property”; |
| · | interests in mortgage loans secured by real property; |
| · | shares in other REITs and debt instruments issued by “publicly offered REITs”; and |
| · | investments in shares or debt instruments during the one-year period following our receipt of new capital that we raise through equity
offerings or public offerings of debt with at least a five-year term. |
Second, of our investments not included in the
75% asset class, the value of our interest in any one issuer’s securities may not exceed 5% of the value of our total assets, or
the 5% asset test.
Third, of our investments not included in the
75% asset class, we may not own more than 10% of the voting power of any one issuer’s outstanding securities or 10% of the value
of any one issuer’s outstanding securities, or the 10% vote test and the 10% value test, respectively.
Fourth, no more than 20% of the value of our total
assets may consist of the securities of one or more TRSs.
Fifth, no more than 25% of the value of our total
assets may consist of the securities of TRSs, other non-TRS taxable subsidiaries, and other assets that are not qualifying assets for
purposes of the 75% asset test, or the 25% securities test.
Sixth, no more than 25% of the value of our total
assets may consist of debt instruments issued by “publicly offered REITs” to the extent not secured by real property or interests
in real property.
For purposes of the 5% asset test, the 10% vote
and the 10% value test, the term “securities” does not include shares in another REIT, debt of “publicly offered REITs”,
equity or debt securities of a qualified REIT subsidiary or a TRS, mortgage loans that constitute real estate assets or equity interests
in a partnership. The term “securities,” however, generally includes debt securities issued by a partnership or another REIT
(other than a “publicly offered REIT”), except that for purposes of the 10% value test, the term “securities”
does not include:
| · | “Straight debt” securities, which is defined as a written unconditional promise to pay on demand or on a specified date
a sum certain in money if (1) the debt is not convertible, directly or indirectly, into equity and (2) the interest rate and
interest payment dates are not contingent on profits, the borrower’s discretion or similar factors. “Straight debt”
securities do not include any securities issued by a partnership or a corporation in which we or any controlled TRS (i.e., a TRS in which
we own directly or indirectly more than 50% of the voting power or value of the stock) hold non-“straight debt” securities
that have an aggregate value of more than 1% of the issuer’s outstanding securities. However, “straight debt” securities
include debt subject to the following contingencies: |
| · | a contingency relating to the time of payment of interest or principal, as long as either (1) there is no change to the effective
yield of the debt obligation, other than a change to the annual yield that does not exceed the greater of 0.25% or 5% of the annual yield
or (2) neither the aggregate issue price nor the aggregate face amount of the issuer’s debt obligations held by us exceeds
$1 million and no more than 12 months of unaccrued interest on the debt obligations can be required to be prepaid; and |
| · | a contingency relating to the time or amount of payment upon a default or prepayment of a debt obligation, as long as the contingency
is consistent with customary commercial practice. |
| · | Any loan to an individual or an estate; |
| · | Any “Section 467 rental agreement,” other than an agreement with a related party tenant; |
| · | Any obligation to pay “rents from real property”; |
| · | Certain securities issued by governmental entities; |
| · | Any security issued by a REIT; |
| · | Any debt instrument issued by an entity treated as a partnership for U.S. federal income tax purposes in which we are a partner to
the extent of our proportionate interest in the equity and debt securities of the partnership; and |
| · | Any debt instrument issued by an entity treated as a partnership for U.S. federal income tax purposes not described in the preceding
bullet points if at least 75% of the partnership’s gross income, excluding income from prohibited transactions, is qualifying income
for purposes of the 75% gross income test described above in “—Gross Income Tests.” |
For purposes of the 10% value test, our proportionate
share of the assets of a partnership is our proportionate interest in any securities issued by the partnership, without regard to the
securities described in the last two bullet points above.
As described above, we currently do not intend
to, but may in the future, on a limited basis, originate or invest in mortgage debt and/or mezzanine loans. We expect that any investments
in mortgage loans will generally be treated as real estate assets. Although we expect that any investments in mezzanine loans will generally
be treated as real estate assets, we anticipate that the mezzanine loans in which we would invest may not meet all the requirements of
the safe harbor in IRS Revenue Procedure 2003-65. Thus, no assurance can be provided that the IRS will not challenge our treatment of
any mezzanine loans as real estate assets. We intend to invest in any mortgage debt and mezzanine loans in a manner that will enable us
to continue to satisfy the asset income test requirements.
We will monitor the status of our assets for purposes
of the various asset tests and will manage our portfolio in order to comply at all times with such tests. However, there is no assurance
that we will not inadvertently fail to comply with such tests. If we fail to satisfy the asset tests at the end of a calendar quarter,
we will not lose our REIT qualification if:
| · | we satisfied the asset tests at the end of the preceding calendar quarter; and |
| · | the discrepancy between the value of our assets and the asset test requirements arose from changes in the market values of our assets
and was not wholly or partly caused by the acquisition of one or more non-qualifying assets. |
If we did not satisfy the condition described
in the second item, above, we still could avoid disqualification by eliminating any discrepancy within 30 days after the close of the
calendar quarter in which it arose.
If we violate the 5% asset test, the 10% vote
test or the 10% value test described above at the end of any quarter of each taxable year, we will not lose our REIT qualification if
(1) the failure is de minimis (up to the lesser of 1% of the value of our assets or $10 million) and (2) we dispose of assets
causing the failure or otherwise comply with the asset tests within six months after the last day of the quarter in which we identify
such failure. In the event of a failure of any of the asset tests (other than de minimis failures described in the preceding sentence),
as long as the failure was due to reasonable cause and not to willful neglect, we will not lose our REIT qualification if we (1) dispose
of assets causing the failure or otherwise comply with the asset tests within six months after the last day of the quarter in which we
identify the failure, (2) we file a schedule with the IRS describing each asset that caused the failure and (3) pay a tax equal
to the greater of $50,000 or 21% of the net income from the assets causing the failure during the period in which we failed to satisfy
the asset tests.
Currently, we believe that our assets satisfy
the foregoing asset test requirements. However, we will not obtain independent appraisals to support our conclusions as to the value of
our assets. Moreover, the values of some assets may not be susceptible to a precise determination. As a result, there can be no assurance
that the IRS will not contend that our ownership of assets violates one or more of the asset tests applicable to REITs.
Distribution Requirements
Each taxable year, we must distribute dividends,
other than capital gain dividends and deemed distributions of retained capital gain, to our stockholders in an aggregate amount at least
equal to:
| · | 90% of our “REIT taxable income,” computed without regard to the dividends paid deduction and our net capital gain or
loss; and |
| · | 90% of our after-tax net income, if any, from foreclosure property; minus |
| · | the excess of the sum of specified items of non-cash income over 5% of our REIT taxable income, computed without regard to the dividends
paid deduction and our net capital gain. |
We must pay such distributions in the taxable
year to which they relate, or in the following taxable year if either (1) we declare the distribution before we timely file our U.S.
federal income tax return for the year, pay the distribution on or before the first regular dividend payment date after such declaration
and elect in our tax return to have a specified dollar amount of such distribution treated as if paid during the prior year or (2) we
declare the distribution in October, November or December of the taxable year, payable to stockholders of record on a specified
day in any such month, and we actually pay the dividend before the end of January of the following year. The distributions under
clause (1) are taxable to the stockholders in the year in which paid, and the distributions in clause (2) are treated as paid
on December 31st of the prior taxable year to the extent of our earnings and profits. In both instances, these distributions relate
to our prior taxable year for purposes of the 90% distribution requirement.
Further, to the extent we are not a “publicly
offered REIT,” in order for our distributions to be counted as satisfying the annual distribution requirement for REITs and to provide
us with the REIT-level tax deduction, such distributions must not be “preferential dividends.” A dividend is not a preferential
dividend if that distribution is (1) pro rata among all outstanding shares within a particular class and (2) in accordance with
the preferences among different classes of shares as set forth in our organizational documents. However, the preferential dividend rule does
not apply to “publicly offered REITs.” Currently, we are a “publicly offered REIT.”
We will pay U.S. federal income tax on taxable
income, including net capital gain, that we do not distribute to stockholders. Furthermore, if we fail to distribute during a calendar
year, or by the end of January following the calendar year in the case of distributions with declaration and record dates falling
in the last three months of the calendar year, at least the sum of:
| · | 85% of our REIT ordinary income for such year; |
| · | 95% of our REIT capital gain income for such year; and |
| · | any undistributed taxable income (ordinary and capital gain) from all prior periods; |
we will incur a 4% nondeductible excise tax on the excess of such required
distribution over the amounts we actually distribute.
We may elect to retain and pay income tax on the
net long-term capital gain we receive in a taxable year. If we so elect, we will be treated as having distributed any such retained amount
for purposes of the 4% nondeductible excise tax described above. We intend to make timely distributions sufficient to satisfy the annual
distribution requirements and to avoid U.S. federal corporate income tax and the 4% nondeductible excise tax.
It is possible that, from time to time, we may
experience timing differences between the actual receipt of income and actual payment of deductible expenses and the inclusion of that
income and deduction of such expenses in arriving at our REIT taxable income. For example, we may not deduct recognized capital losses
from our “REIT taxable income.” Further, we may be allocated a share of net capital gain attributable to the sale of depreciated
property that exceeds our allocable share of cash attributable to that sale. Additionally, we generally will be required to recognize
certain amounts as income no later than the time such amounts are reflected on certain financial statements.
In addition, a taxpayer’s net interest expense
deduction may be limited to 30% (adjusted, in the absence of an election otherwise, to 50% for non-partnership entities for their 2019
and 2020 taxable years and for partnerships for their 2020 taxable years under the CARES Act) of the sum of adjusted taxable income, business
interest and certain other amounts. Adjusted taxable income does not include items of income or expense not allocable to a trade or business,
business interest or expense, the deduction for qualified business income, NOLs, and for years prior to 2022, deductions for depreciation,
amortization or depletion. Under the CARES Act, a taxpayer could elect to use its adjusted taxable income from its 2019 taxable year for
purposes of calculating its limitation in its 2020 taxable year. For partnerships, the interest deduction limit is applied at the partnership
level, subject to certain adjustments to the partners for unused deduction limitation at the partnership level. Disallowed interest expense
is carried forward indefinitely (subject to special rules for partnerships). A “real property trade or business” may
elect out of this interest limit so long as it uses a 40-year recovery period for nonresidential real property, a 30-year recovery period
for residential real property and a 20-year recovery period for related improvements. For this purpose, a real property trade or business
is any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operating, management,
leasing or brokerage trade or business. Our Operating Partnership has elected out of these limits on interest deductibility.
In addition, for taxable years beginning after
January 30, 2020, the NOL deduction is generally limited to 80% of taxable income (before the deduction), but this limitation has
been lifted for taxable years beginning before January 1, 2021 by the CARES Act. REITs may indefinitely carryforward (but not carryback)
NOLs.
As a result of the foregoing, we may have less
cash than is necessary to distribute taxable income sufficient to avoid U.S. federal corporate income tax and the excise tax imposed on
certain undistributed income or even to meet the 90% distribution requirement. In such a situation, we may need to borrow funds or, if
possible, pay taxable dividends of our stock or debt securities.
We may satisfy the 90% distribution test with
taxable distributions of our stock or debt securities. The IRS has issued Revenue Procedure 2017-45 authorizing elective cash/stock dividends
to be made by “publicly offered REITs.” Pursuant to Revenue Procedure 2017-45, the IRS will treat the distribution of stock
pursuant to an elective cash/stock dividend as a distribution of property under Section 301 of the Code (i.e., a dividend), as long
as at least 20% of the total dividend is available in cash and certain other parameters detailed in the Revenue Procedure are satisfied.
Although we do not currently intend to pay dividends in our stock, if in the future we choose to pay dividends in our stock, our stockholders
may be required to pay tax in excess of the cash that they receive.
Under certain circumstances, we may be able to
correct a failure to meet the distribution requirement for a year by paying “deficiency dividends” to our stockholders in
a later year. We may include such deficiency dividends in our deduction for dividends paid for the earlier year. Although we may be able
to avoid income tax on amounts distributed as deficiency dividends, we will be required to pay interest to the IRS based upon the amount
of any deduction we take for deficiency dividends.
Recordkeeping Requirements
We must maintain certain records in order to qualify
as a REIT. In addition, to avoid a monetary penalty, we must request on an annual basis information from our stockholders designed to
disclose the actual ownership of our outstanding stock. We intend to comply with these requirements.
Failure to Qualify
If we fail to satisfy one or more requirements
for REIT qualification, other than the gross income tests and the asset tests, we could avoid disqualification if our failure is due to
reasonable cause and not to willful neglect and we pay a penalty of $50,000 for each such failure. In addition, there are relief provisions
for a failure of the gross income tests and asset tests, as described in “—Gross Income Tests” and “—Asset
Tests.”
If we fail to qualify as a REIT in any taxable
year, and no relief provision applies, we would be subject to U.S. federal income tax on our taxable income at regular U.S. federal corporate
income tax rates, plus potential penalties and/or interest. In calculating our taxable income in a year in which we fail to qualify as
a REIT, we would not be able to deduct amounts paid out to stockholders. In fact, we would not be required to distribute any amounts to
stockholders in that year. In such event, to the extent of our current and accumulated earnings and profits, distributions to stockholders
generally would be taxable as ordinary dividend income. Subject to certain limitations of the U.S. federal income tax laws, corporate
stockholders may be eligible for the dividends received deduction and non-corporate U.S. stockholders may be eligible for the reduced
U.S. federal income tax rate of up to 20% on such dividends. Unless we qualified for relief under specific statutory provisions, we also
would be disqualified from taxation as a REIT for the four taxable years following the year during which we ceased to qualify as a REIT.
We cannot predict whether we would qualify for such statutory relief in all circumstances.
Taxation of Taxable U.S. Stockholders
This section is a summary of the rules governing
the U.S. federal income taxation of U.S. stockholders and is for general information only. We urge you to consult your tax advisors
to determine the impact of U.S. federal, state and local income tax laws on the purchase, ownership and disposition of our capital stock.
As used herein, the term “U.S. stockholder”
means a beneficial owner of our capital stock that for U.S. federal income tax purposes is:
| · | a citizen or resident of the United States; |
| · | a corporation (including an entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under
the laws of the United States, any of its states or the District of Columbia; |
| · | an estate whose income is subject to U.S. federal income taxation regardless of its source; or |
| · | any trust if (1) a court is able to exercise primary supervision over the administration of such trust and one or more United
States persons (as defined in Section 7701(a)(30) of the Code) have the authority to control all substantial decisions of the trust
or (2) it has a valid election in place to be treated as a United States person. |
If a partnership, entity or arrangement treated
as a partnership for U.S. federal income tax purposes holds our capital stock, the U.S. federal income tax treatment of a partner in the
partnership will generally depend on the status of the partner and the activities of the partnership. If you are a partner in a partnership
holding our capital stock, you should consult your tax advisor regarding the consequences of the ownership and disposition of our capital
stock by the partnership.
Distributions
As long as we qualify as a REIT, a taxable U.S.
stockholder must generally take into account as ordinary income distributions made out of our current or accumulated earnings and profits
that we do not designate as capital gain dividends or retained long-term capital gain. For purposes of determining whether a distribution
is made out of our current or accumulated earnings and profits, our earnings and profits will be allocated first to our preferred stock
dividends, if any, and then to our common stock dividends. Individuals, trusts and estates generally may deduct 20% of the “qualified
REIT dividends” (i.e., REIT dividends other than capital gain dividends and portions of REIT dividends designated as “qualified
dividend income,” which in each case are already eligible for capital gain tax rates) they receive. The deduction for qualified
REIT dividends is not subject to the wage and property basis limits that apply to other types of “qualified business income.”
However, to qualify for this deduction, the U.S. stockholder receiving such dividends must hold the dividend-paying REIT stock for at
least 46 days (taking into account certain special holding period rules) of the 91-day period beginning 45 days before the stock becomes
ex-dividend and cannot be under an obligation to make related payments with respect to a position in substantially similar or related
property. The 20% deduction for qualified REIT dividends results in a maximum 29.6% U.S. federal income tax rate on ordinary REIT dividends,
not including the 3.8% Medicare tax, discussed below. Without further legislation, this deduction will sunset after 2025.
A U.S. stockholder will not qualify for the dividends
received deduction generally available to corporations. Additionally, because we are not generally subject to U.S. federal income tax
on the portion of our REIT taxable income distributed to our stockholders (See “—Taxation of Our Company” above), our
dividends generally will not be eligible for the 20% U.S. federal income tax rate on “qualified dividend income” (generally,
dividends paid by domestic C corporations and certain qualified foreign corporations to U.S. stockholders that are taxed at individual
rates). As a result, our ordinary REIT dividends will be taxed at the higher tax rate applicable to ordinary income. The maximum income
tax rate for qualified dividend income received by U.S. stockholders taxed at individual rates is currently 20%, plus the 3.8% Medicare
tax on net investment income, if applicable. By contrast, the maximum U.S. federal income tax rates on ordinary income and REIT dividend
income are currently 37% and 29.6%, respectively, plus the 3.8% Medicare tax on net investment income, if applicable.
However, the 20% U.S. federal income tax rate
for qualified dividend income will apply to our ordinary REIT dividends, if any, that are (1) attributable to dividends received
by us from non-REIT corporations, such as any TRS we may form and (2) attributable to income upon which we have paid U.S. federal
corporate income tax (e.g., to the extent that we distribute less than 100% of our taxable income). In general, to qualify for the reduced
tax rate on qualified dividend income, a stockholder must hold our capital stock for more than 60 days during the 121-day period beginning
on the date that is 60 days before the date on which our capital stock becomes ex-dividend.
Individuals, trusts and estates whose income exceeds
certain thresholds are also subject to an additional 3.8% Medicare tax on dividends received from us. U.S. stockholders are urged to consult
their tax advisors regarding the implications of the additional Medicare tax resulting from an investment in our capital stock.
A U.S. stockholder generally will recognize distributions
that we designate as capital gain dividends as long-term capital gain without regard to how long the U.S. stockholder has held our capital
stock. We generally will designate our capital gain dividends as either 20% or 25% U.S. federal income tax rate distributions. See “—Capital
Gains and Losses.” A corporate U.S. stockholder, however, may be required to treat up to 20% of certain capital gain dividends as
ordinary income.
We may elect to retain and pay income tax on the
net long-term capital gain that we recognize in a taxable year. In that case, to the extent that we designate such amount in a timely
notice to such stockholder, a U.S. stockholder would be taxed on its proportionate share of our undistributed long-term capital gain.
The U.S. stockholder would receive a credit for its proportionate share of the tax we paid. The U.S. stockholder would increase the basis
in its stock by the amount of its proportionate share of our undistributed long-term capital gain, minus its share of the tax we paid.
A U.S. stockholder will not incur tax on a distribution
in excess of our current and accumulated earnings and profits if the distribution does not exceed the adjusted basis of the U.S. stockholder’s
capital stock. Instead, the distribution will reduce the U.S. stockholder’s adjusted basis in such stock. If a U.S. stockholder
receives a distribution in excess of both our current and accumulated earnings and profits and the U.S. stockholder’s adjusted basis
in his or her stock, the U.S. stockholder will recognize the distribution as long-term capital gain, or short-term capital gain if the
stock has been held for one year or less, assuming the stock is a capital asset in the hands of the U.S. stockholder. In addition, if
we declare a distribution in October, November or December of any year that is payable to a U.S. stockholder of record on a
specified date in any such month, such distribution will be treated as both paid by us and received by the U.S. stockholder on December 31
of such year to the extent of our earnings and profits, provided that we actually pay the distribution during January of the following
calendar year.
U.S. stockholders may not include in their individual
income tax returns any of our net operating losses or capital losses. Instead, these losses are generally carried over by us for potential
offset against our future income. Taxable distributions from us and gain from the disposition of our capital stock will not be treated
as passive activity income and, therefore, stockholders generally will not be able to apply any “passive activity losses,”
such as losses from certain types of limited partnerships in which the U.S. stockholder is a limited partner, against such income or gain.
In addition, taxable distributions from us and gain from the disposition of our capital stock generally will be treated as investment
income for purposes of the investment interest limitations. We will notify U.S. stockholders after the close of our taxable year as to
the portions of the distributions attributable to that year that constitute ordinary dividend income, qualified REIT dividends, capital
gain distributions and return of capital.
Taxation of U.S. Stockholders on the Disposition of Capital Stock
A U.S. stockholder who is not a dealer in securities
must generally treat any gain or loss realized upon a taxable disposition of our capital stock as long-term capital gain or loss if the
U.S. stockholder has held our capital stock for more than one year and otherwise as short-term capital gain or loss. In general, a U.S.
stockholder will realize gain or loss in an amount equal to the difference between the sum of the fair market value of any property and
the amount of cash received in such disposition and the U.S. stockholder’s adjusted tax basis. A stockholder’s adjusted tax
basis generally will equal the U.S. stockholder’s acquisition cost, increased by the excess of net capital gains deemed distributed
to the U.S. stockholder (discussed above) less tax deemed paid on such gains and reduced by any returns of capital. However, a U.S. stockholder
must treat any loss upon a sale or exchange of capital stock held by such stockholder for six months or less as a long-term capital loss
to the extent of capital gain dividends and any other actual or deemed distributions from us that such U.S. stockholder treats as long-term
capital gain. All or a portion of any loss that a U.S. stockholder realizes upon a taxable disposition of our capital stock may be disallowed
if the U.S. stockholder purchases substantially identical stock within 30 days before or after the disposition.
Taxation of U.S. Stockholders on a Conversion of Preferred Stock
Except as provided below, (i) a U.S. stockholder
generally will not recognize gain or loss upon the conversion of preferred stock into our common stock, and (ii) a U.S. stockholder’s
basis and holding period in our common stock received upon conversion generally will be the same as those of the converted shares of preferred
stock (but the basis will be reduced by the portion of adjusted tax basis allocated to any fractional share exchanged for cash). Any of
our shares of common stock received in conversion that are attributable to accumulated and unpaid dividends on the converted shares of
preferred stock will be treated as a distribution that is potentially taxable as a dividend. Cash received upon conversion in lieu of
a fractional share generally will be treated as payment in exchange for such fractional share, and gain or loss will be recognized on
the receipt of cash in an amount equal to the difference between the amount of cash received and the adjusted tax basis allocable to the
fractional share deemed exchanged. This gain or loss will be long-term capital gain or loss if the U.S. stockholder has held the preferred
stock for more than one year at the time of conversion. U.S. stockholders are urged to consult with their tax advisors regarding the U.S.
federal income tax consequences of any transaction by which such U.S. stockholder exchanges our common stock received on a conversion
of preferred stock for cash or other property.
Taxation of U.S. Stockholders on a Redemption of Preferred Stock
In general, a redemption of any preferred stock
will be treated under Section 302 of the Code as a distribution that is taxable at ordinary U.S. federal income tax rates as a dividend
(to the extent of our current or accumulated earnings and profits), unless the redemption satisfies certain tests set forth in Section 302(b) of
the Code enabling the redemption to be treated as a sale of the preferred stock (in which case the redemption will be treated in the same
manner as a sale described in “— Taxation of U.S. Stockholders on the Disposition of Capital Stock” above). The redemption
will satisfy such tests and be treated as a sale of the preferred stock if the redemption, within the meaning of Section 302(b) of
the Code:
| · | is “substantially disproportionate” with respect to the U.S. stockholder’s interest in our stock; |
| · | results in a “complete termination” of the U.S. stockholder’s interest in all classes of our stock; or |
| · | is “not essentially equivalent to a dividend” with respect to the U.S. stockholder. |
In determining whether any of these tests have
been met, stock considered to be owned by the U.S. stockholder by reason of certain constructive ownership rules set forth in the
Code, as well as stock actually owned, generally must be taken into account. Because the determination as to whether any of the three
alternative tests of Section 302(b) of the Code described above will be satisfied with respect to any particular U.S. stockholder
of the preferred stock depends upon the facts and circumstances at the time that the determination must be made, prospective investors
are advised to consult their tax advisors to determine such tax treatment.
If a redemption of preferred stock does not meet
any of the three tests described above, the redemption proceeds will be treated as a distribution, as described in “—Taxation
of Taxable U.S. Stockholders” above. In that case, a U.S. stockholder’s adjusted tax basis in the redeemed preferred stock
will be transferred to such U.S. stockholder’s remaining stock holdings in our company. If the U.S. stockholder does not retain
any of our stock, such basis could be transferred to a related person that holds our stock or it may be lost.
Under previously proposed Treasury Regulations,
if any portion of the amount received by a U.S. stockholder on a redemption of any class of our preferred stock is treated as a distribution
with respect to our stock but not as a taxable dividend, then such portion will be allocated to all shares of the redeemed class of stock
held by the redeemed stockholder just before the redemption on a pro-rata, share-by-share, basis. The amount applied to each share will
first reduce the redeemed U.S. stockholder’s basis in that share and any excess after the basis is reduced to zero will result in
taxable gain. If the redeemed stockholder has different bases in its stock, then the amount allocated could reduce some of the basis in
certain shares while reducing all the basis and giving rise to taxable gain in others. Thus, the redeemed U.S. stockholder could have
gain even if such U.S. stockholder’s basis in all its stock of the redeemed class exceeded such portion.
The proposed Treasury Regulations permit the transfer
of basis in the redeemed preferred stock to the redeemed U.S. stockholder’s remaining, unredeemed preferred stock of the same class
(if any), but not to any other class of stock held (directly or indirectly) by the redeemed U.S. stockholder. Instead, any unrecovered
basis in the redeemed preferred stock would be treated as a deferred loss to be recognized when certain conditions are satisfied. As of
March 28, 2019, these proposed Treasury Regulations have been withdrawn. As a result, the treatment governing adjustments to the
basis of a U.S. holder’s preferred stock with respect to amounts treated as a distribution with respect to preferred stock, but
not as a dividend, as well as the treatment of the basis of any unredeemed shares, may be less certain.
Capital Gains and Losses
A taxpayer generally must hold a capital asset
for more than one year for gain or loss derived from its sale or exchange to be treated as long-term capital gain or loss. The highest
marginal U.S. federal individual income tax rate currently is 37%. The maximum U.S. federal income tax rate on long-term capital gain
applicable to U.S. taxpayers taxed at individual rates is 20%. The maximum U.S. federal income tax rate on long-term capital gain from
the sale or exchange of “Section 1250 property,” or depreciable real property, is 25%, which applies to the lesser of
the total amount of the gain or the accumulated depreciation on the Section 1250 property.
Individuals, trusts and estates whose income exceeds
certain thresholds are also subject to an additional 3.8% Medicare tax on gain from the sale of our capital stock. U.S. stockholders are
urged to consult their tax advisors regarding the implications of the additional Medicare tax resulting from an investment in our stock.
With respect to distributions that we designate
as capital gain dividends and any retained capital gain that we are deemed to distribute, we generally may designate whether such a distribution
is taxable at a 20% or 25% rate to our U.S. stockholders taxed at individual rates. Thus, the tax rate differential between capital gain
and ordinary income for those taxpayers may be significant. In addition, the characterization of income as capital gain or ordinary income
may affect the deductibility of capital losses. A non-corporate taxpayer may deduct capital losses not offset by capital gains against
its ordinary income only up to a maximum annual amount of $3,000 ($1,500 for married individuals filing separate returns). A non-corporate
taxpayer may carry forward unused capital losses indefinitely. A corporate taxpayer must pay tax on its net capital gain at ordinary U.S.
federal corporate income tax rates. A corporate taxpayer may deduct capital losses only to the extent of capital gains, with unused losses
being carried back three years and forward five years.
FATCA Withholding
Under the Foreign Account Tax Compliance Act,
or FATCA, a U.S. withholding tax at a 30% rate will be imposed on dividends paid to certain U.S. stockholders who own our shares through
foreign accounts or foreign intermediaries if certain disclosure requirements related to U.S. accounts or ownership are not satisfied.
We will not pay any additional amounts in respect of any amounts withheld.
Taxation of Tax-Exempt Stockholders
This section is a summary of rules governing
the U.S. federal income taxation of U.S. stockholders that are tax-exempt entities and is for general information only. We urge tax-exempt
stockholders to consult their tax advisors to determine the impact of U.S. federal, state and local income tax laws on the purchase, ownership
and disposition of our capital stock, including any reporting requirements.
Tax-exempt entities, including qualified employee
pension and profit sharing trusts and individual retirement accounts, generally are exempt from U.S. federal income tax. However, they
are subject to taxation on their unrelated business taxable income (“UBTI”). Although many investments in real estate generate
UBTI, the IRS has issued a ruling that dividend distributions from a REIT to an exempt employee pension trust do not constitute UBTI so
long as the exempt employee pension trust does not otherwise use the shares of the REIT in an unrelated trade or business of the pension
trust. Based on that ruling, amounts that we distribute to tax-exempt stockholders generally should not constitute UBTI. However, if a
tax-exempt stockholder were to finance (or be deemed to finance) its acquisition of our capital stock with debt, a portion of the income
that it receives from us would constitute UBTI pursuant to the “debt-financed property” rules. Moreover, social clubs, voluntary
employee benefit associations, supplemental unemployment benefit trusts and qualified group legal services plans that are exempt from
taxation under special provisions of the U.S. federal income tax laws are subject to different UBTI rules, which generally will require
them to characterize distributions that they receive from us as UBTI. Finally, in certain circumstances, a qualified employee pension
or profit sharing trust that owns more than 10% of our stock must treat a percentage of the dividends that it receives from us as UBTI.
Such percentage is equal to the gross income we derive from an unrelated trade or business, determined as if we were a pension trust,
divided by our total gross income for the year in which we pay the dividends. That rule applies to a pension trust holding more than
10% of our stock only if:
| · | the percentage of our dividends that the tax-exempt trust must treat as UBTI is at least 5%; |
| · | we qualify as a REIT by reason of the modification of the rule requiring that no more than 50% of our stock be owned by five
or fewer individuals that allows the beneficiaries of the pension trust to be treated as holding our stock in proportion to their actuarial
interests in the pension trust; and |
| · | one pension trust owns more than 25% of the value of our stock; or |
| · | a group of pension trusts individually holding more than 10% of the value of our stock collectively owns more than 50% of the value
of our stock. |
Taxation of Non-U.S. Stockholders
This section is a summary of the rules governing
the U.S. federal income taxation of non-U.S. stockholders. As used herein, the term “non-U.S. stockholder” means a beneficial
owner of our capital stock that is not a U.S. stockholder, a partnership (or entity treated as a partnership for U.S. federal income tax
purposes) or a tax-exempt stockholder. The rules governing U.S. federal income taxation of non-U.S. stockholders are complex, and
this summary is for general information only. We urge non-U.S. stockholders to consult their tax advisors to determine the impact of
U.S. federal, state and local income tax laws on the purchase, ownership and disposition of our capital stock, including any reporting
requirements.
Distributions
A non-U.S. stockholder that receives a distribution
that is not attributable to gain from our sale or exchange of a “United States real property interest” (“USRPI”),
as defined below, and that we do not designate as a capital gain dividend or retained capital gain will recognize ordinary income to the
extent that we pay such distribution out of our current or accumulated earnings and profits. A withholding tax equal to 30% of the gross
amount of the distribution ordinarily will apply to such distribution unless an applicable tax treaty reduces or eliminates the tax.
However, if a distribution is treated as effectively
connected with the non-U.S. stockholder’s conduct of a U.S. trade or business, the non-U.S. stockholder generally will be subject
to U.S. federal income tax on the distribution at graduated rates, in the same manner as U.S. stockholders are taxed with respect to such
distribution, and a non-U.S. stockholder that is a corporation also may be subject to a 30% branch profits tax with respect to that distribution.
The branch profits tax may be reduced by an applicable tax treaty. We plan to withhold U.S. income tax at the rate of 30% on the gross
amount of any such distribution paid to a non-U.S. stockholder unless either:
| · | a lower treaty rate applies and the non-U.S. stockholder provides us with an IRS Form W-8BEN or W-8BEN-E, as applicable, evidencing
eligibility for that reduced rate; |
| · | the non-U.S. stockholder provides us with an IRS Form W-8ECI claiming that the distribution is effectively connected with the
conduct of a U.S. trade or business; or |
| · | the distribution is treated as attributable to a sale of a USRPI under the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”)
(discussed below). |
A non-U.S. stockholder will not incur tax on a
distribution in excess of our current and accumulated earnings and profits if the excess portion of such distribution does not exceed
the adjusted basis of its capital stock. Instead, the excess portion of such distribution will reduce the non-U.S. stockholder’s
adjusted basis in such stock. A non-U.S. stockholder will be subject to tax on a distribution that exceeds both our current and accumulated
earnings and profits and the adjusted basis of its capital stock, if the non-U.S. stockholder otherwise would be subject to tax on gain
from the sale or disposition of its capital stock, as described below. We must withhold 15% of any distribution that exceeds our current
and accumulated earnings and profits. Consequently, although we intend to withhold at a rate of 30% on the entire amount of any distribution,
to the extent that we do not do so, we will withhold at a rate of 15% on any portion of a distribution not subject to withholding at a
rate of 30%. Because we generally cannot determine at the time we make a distribution whether the distribution will exceed our current
and accumulated earnings and profits, we normally will withhold tax on the entire amount of any distribution at the same rate as we would
withhold on a dividend. However, by filing a U.S. tax return, a non-U.S. stockholder may claim a refund of amounts that we withhold if
we later determine that a distribution in fact exceeded our current and accumulated earnings and profits.
For any year in which we qualify as a REIT, a
non-U.S. stockholder may incur tax on distributions that are attributable to gain from our sale or exchange of a USRPI under FIRPTA. A
USRPI includes certain interests in real property and shares in corporations at least 50% of whose assets consist of interests in real
property. Under FIRPTA, subject to the exceptions discussed below for (1) distributions on a class of stock that is regularly traded
on an established securities market to a less-than-10% holder of such stock and (2) distributions to “qualified shareholders”
and a “qualified foreign pension funds,” a non-U.S. stockholder is taxed on distributions attributable to gain from sales
of USRPIs as if such gain were effectively connected with a U.S. business of the non-U.S. stockholder. A non-U.S. stockholder thus would
be taxed on such a distribution at the normal U.S. federal capital gains rates applicable to U.S. stockholders, subject to applicable
alternative minimum tax and a special alternative minimum tax in the case of a nonresident alien individual. A corporate non-U.S. stockholder
not entitled to treaty relief or exemption also may be subject to the 30% branch profits tax on such a distribution. Unless the exception
described in the next paragraph applies, we must withhold 21% of any distribution that we could designate as a capital gain dividend.
A non-U.S. stockholder may receive a credit against its tax liability for the amount we withhold.
However, if the applicable class of our capital
stock is regularly traded on an established securities market in the United States, capital gain distributions on such class of our capital
stock that are attributable to our sale of a USRPI will be treated as ordinary dividends rather than as gain from the sale of a USRPI,
as long as the non-U.S. stockholder did not own more than 10% of the applicable class of our capital stock at any time during the one-year
period preceding the distribution or the non-U.S. stockholder was treated as a “qualified shareholder” and “qualified
foreign pension fund.” In such a case, non-U.S. stockholders generally will be subject to withholding tax on such capital gain distributions
in the same manner as they are subject to withholding tax on ordinary dividends. We believe that our common stock is regularly traded
on an established securities market in the United States. If our common stock is not regularly traded on an established securities market
in the United States or the non-U.S. stockholder owned more than 10% of our common stock at any time during the one-year period preceding
the distribution, capital gain distributions that are attributable to our sale of USRPIs will be subject to tax under FIRPTA, as described
above. In that case, we must withhold 21% of any distribution that we could designate as a capital gain dividend. A non-U.S. stockholder
may receive a credit against its tax liability for the amount we withhold.
Moreover, if a non-U.S. stockholder disposes of
our common stock during the 30-day period preceding a dividend payment, and such non-U.S. stockholder (or a person related to such non-U.S.
stockholder) acquires or enters into a contract or option to acquire our common stock within 61 days of the first day of the 30-day period
described above, and any portion of such dividend payment would, but for the disposition, be treated as a USRPI capital gain to such non-U.S.
stockholder, then such non-U.S. stockholder will be treated as having USRPI capital gain in an amount that, but for the disposition, would
have been treated as USRPI capital gain.
Although the law is not clear on the matter, it
appears that amounts we designate as retained capital gains in respect of our capital stock held by U.S. stockholders generally should
be treated with respect to non-U.S. stockholders in the same manner as actual distributions by us of capital gain dividends. Under this
approach, a non-U.S. stockholder would be able to offset as a credit against its U.S. federal income tax liability resulting from its
proportionate share of the tax paid by us on such retained capital gains, and to receive from the IRS a refund to the extent of the non-U.S.
stockholder’s proportionate share of such tax paid by us exceeds its actual U.S. federal income tax liability, provided that the
non-U.S. stockholder furnishes required information to the IRS on a timely basis.
Qualified
Shareholders. Subject to the exception discussed below, any distribution to a “qualified shareholder” who holds
our capital stock directly or indirectly (through one or more partnerships) will not be subject to U.S. federal income tax as income effectively
connected with a U.S. trade or business and thus will not be subject to FIRPTA withholding as described above. However, while a “qualified
shareholder” will not be subject to FIRPTA withholding on our distributions, non-U.S. persons who hold interests in the “qualified
shareholder” (other than interests solely as a creditor) and hold more than 10% of our capital stock, either through the “qualified
shareholder” or otherwise, will still be subject to FIRPTA withholding. REIT distributions received by a “qualified shareholder”
that are exempt from FIRPTA withholding may still be subject to regular U.S. federal withholding tax.
A “qualified shareholder” is a foreign
person that either (1) is eligible for the benefits of a comprehensive income tax treaty that includes an exchange of information
program and whose principal class of interests is listed and regularly traded on one or more recognized stock exchanges (as defined in
such income tax treaty), or is a foreign partnership that is created or organized under foreign law as a limited partnership in a jurisdiction
that has an agreement for the exchange of information with respect to taxes with the United States and has a class of limited partnership
units that represents more than 50% of the value of all of the partnership’s units and is regularly traded on the NYSE or NASDAQ
markets, (2) is a “qualified collective investment vehicle” (as defined below) and (3) maintains records of the
identity of each person who, at any time during the foreign person’s taxable year, is the direct owner of 5% or more the class of
interests or units (as applicable) described in (1), above.
A “qualified collective investment vehicle”
is a foreign person that (1) would be eligible for a reduced rate of withholding under the comprehensive income tax treaty described
above, even if such entity owns more than 10% of the stock of the REIT, (2) is publicly traded, is treated as a partnership under
the Code, is a withholding foreign partnership and would be treated as “United States real property holding corporation” (“USRPHC”),
under FIRPTA if it were a domestic corporation or (3) is designated as such by the Secretary of the Treasury and is either (a) “fiscally
transparent” within the meaning of Section 894 of the Code or (b) required to include dividends in its gross income, but
is entitled to a deduction for distributions to its investors.
Qualified
Foreign Pension Funds. Any distribution to a “qualified foreign pension fund” or an entity all of the interests
of which are held by one or more “qualified foreign pension funds” who holds our capital stock directly or indirectly (through
one or more partnerships) generally will not be subject to U.S. federal income tax as income effectively connected with the conduct of
a U.S. trade or business and thus will not be subject to FIRPTA withholding as described above. REIT distributions received by a “qualified
foreign pension fund” that are exempt from FIRPTA withholding may still be subject to regular U.S. federal withholding tax.
A “qualified foreign pension fund”
is any trust, corporation or other organization or arrangement (1) which is created or organized under the laws of a country other
than the United States or a political subdivision thereof, (2) which is established to provide retirement or pension benefits to
participants or beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers
in consideration for services rendered, (3) which does not have a single participant or beneficiary with a right to more than 5%
of its assets or income, taking in account certain attribution rules, (4) which is subject to government regulation and provides
annual information reporting about its beneficiaries to the relevant tax or other governmental authorities in the country in which it
is established or operates and (5) with respect to which, under the laws of the country in which it is established or operates, and
subject to a de minimis exception, (a) contributions to such organization or arrangement that would otherwise be subject to tax under
such laws are deductible or excluded from the gross income of such entity or taxed at a reduced rate or (b) taxation of any investment
income of such organization or arrangement is deferred or such income is taxed at a reduced rate.
FATCA.
Under FATCA, a U.S. withholding tax at a 30% rate will be imposed on dividends paid to certain non-U.S. stockholders if certain disclosure
requirements related to U.S. accounts or ownership are not satisfied. If payment of withholding taxes is required, non-U.S. stockholders
that are otherwise eligible for an exemption from, or reduction of, U.S. withholding taxes with respect to such dividends will be required
to seek a refund from the IRS to obtain the benefit of such exemption or reduction. We will not pay any additional amounts in respect
of any amounts withheld.
Dispositions
Subject to the discussion below regarding dispositions
by “qualified shareholders” and “qualified foreign pension funds,” non-U.S. stockholders could incur tax under
FIRPTA with respect to gain realized upon a disposition of our common stock if we are a USRPHC during a specified testing period. If at
least 50% of a REIT’s assets are USRPIs, then the REIT will be a USRPHC. We believe that we are a USRPHC. However, even if we are
a USRPHC, a non-U.S. stockholder generally would not incur tax under FIRPTA on gain from the sale of our stock if we are a “domestically
controlled qualified investment entity.”
A “domestically controlled qualified investment
entity” includes a REIT in which, at all times during a specified testing period, less than 50% in value of its shares are held
directly or indirectly by non-U.S. stockholders. We cannot assure you that this test has been or will be met.
If the applicable class of our capital stock is
regularly traded on an established securities market, an additional exception to the tax under FIRPTA will be available with respect to
a non-U.S. stockholder’s disposition of such stock, even if we do not qualify as a domestically controlled qualified investment
entity at the time the non-U.S. stockholder sells such stock. Under this additional exception, the gain from such a sale by a non-U.S.
stockholder will not be subject to tax under FIRPTA if (1) the applicable class of our capital stock is treated as being regularly
traded on an established securities market under applicable Treasury Regulations and (2) the non-U.S. stockholder owned, actually
or constructively, 10% or less of that class of our common stock at all times during a specified testing period. We believe that our common
stock is regularly traded on an established securities market.
In addition, a sale of our capital stock by a
“qualified shareholder” or a “qualified foreign pension fund” who holds our capital stock directly or indirectly
(through one or more partnerships) will not be subject to U.S. federal income tax under FIRPTA. However, while a “qualified shareholder”
will not be subject to FIRPTA withholding on a sale of our capital stock, non-U.S. persons who hold interests in the “qualified
shareholder” (other than interests solely as a creditor) and hold more than 10% of our capital stock, either through the “qualified
shareholder” or otherwise, will still be subject to FIRPTA withholding.
If the gain on the sale of our capital stock were
taxed under FIRPTA, a non-U.S. stockholder would be taxed on that gain in the same manner as U.S. stockholders, subject to applicable
alternative minimum tax and a special alternative minimum tax in the case of nonresident alien individuals. In addition, distributions
that are subject to tax under FIRPTA also may be subject to a 30% branch profits tax when made to a non-U.S. stockholder treated as a
corporation (under U.S. federal income tax principles) that is not otherwise entitled to treaty exemption. Finally, if we are not a domestically
controlled qualified investment entity at the time our capital stock is sold and the non-U.S. stockholder does not qualify for the exemptions
described in the preceding paragraph, under FIRPTA the purchaser of our capital stock also may be required to withhold 15% of the purchase
price and remit this amount to the IRS on behalf of the selling non-U.S. stockholder.
With respect to individual non-U.S. stockholders,
even if not subject to FIRPTA, capital gains recognized from the sale of our capital stock will be taxable to such non-U.S. stockholder
if he or she is a non-resident alien individual who is present in the United States for 183 days or more during the taxable year and some
other conditions apply, in which case the non-resident alien individual may be subject to a U.S. federal income tax on his or her U.S.
source capital gain.
Conversion of Preferred Stock
So long our preferred stock does not constitute
a USRPI under FIRPTA, the tax consequences to a non-U.S. stockholder of the conversion of our preferred stock into common stock will generally
be the same as those described above for a U.S. stockholder. If our preferred stock does constitute a USRPI, the conversion of our preferred
stock into our common stock may be a taxable exchange for a non-U.S. stockholder. However, even if our preferred stock does constitute
a USRPI, provided our common stock also constitutes a USRPI, a non-U.S. stockholder generally will not recognize gain or loss upon a conversion
of our preferred stock into our common stock so long as certain FIRPTA-related reporting requirements are satisfied. If our preferred
stock does constitute a USRPI and such requirements are not satisfied, however, a conversion will be treated as a taxable exchange of
our preferred stock for our common stock. Such a deemed taxable exchange will be subject to tax under FIRPTA at the rate of tax, including
any applicable capital gains rates, that would apply to a U.S. stockholder of the same type (e.g., an individual or a corporation, as
the case may be) on the excess, if any, of the fair market value of such non-U.S. stockholder’s common stock received over such
non-U.S. stockholder’s adjusted basis in its preferred stock. Collection of such tax will be enforced by a refundable withholding
tax at a rate of 15% of the value of the common stock. Non-U.S. stockholders are urged to consult their tax advisors regarding the U.S.
federal income tax consequences of any transaction by which such stockholder exchanges shares received on a conversion of our preferred
stock for cash or other property.
Redemption of Preferred Stock
For a discussion of the treatment of a redemption
of our preferred stock for a non-U.S. stockholder, see “—Taxation of U.S. Stockholders on a Redemption of Preferred Stock.”
Information Reporting Requirements and Withholding
We will report to our stockholders and to the
IRS the amount of distributions we pay during each calendar year and the amount of tax we withhold, if any. Under the backup withholding
rules, a stockholder may be subject to backup withholding at a rate of 24% with respect to distributions unless the stockholder:
| · | is a corporation or qualifies for certain other exempt categories and, when required, demonstrates this fact; or |
| · | provides a taxpayer identification number, certifies as to no loss of exemption from backup withholding and otherwise complies with
the applicable requirements of the backup withholding rules. |
A stockholder who does not provide us with its
correct taxpayer identification number also may be subject to penalties imposed by the IRS. Any amount paid as backup withholding will
be creditable against the stockholder’s income tax liability. In addition, we may be required to withhold a portion of capital gain
distributions to any stockholders who fail to certify their non-foreign status to us.
Backup withholding will generally not apply to
payments of dividends made by us or our paying agents, in their capacities as such, to a non-U.S. stockholder provided that the non-U.S.
stockholder furnishes to us or our paying agent the required certification as to its non-U.S. status, such as providing a valid IRS Form W-8BEN,
W-8BEN-E or W-8ECI, or certain other requirements are met. Notwithstanding the foregoing, backup withholding may apply if either we or
our paying agent has actual knowledge, or reason to know, that the holder is a U.S. person that is not an exempt recipient. Payments of
the proceeds from a disposition or a redemption effected outside the United States by a non-U.S. stockholder made by or through a foreign
office of a broker generally will not be subject to information reporting or backup withholding. However, information reporting (but not
backup withholding) generally will apply to such a payment if the broker has certain connections with the United States unless the broker
has documentary evidence in its records that the beneficial owner is a non-U.S. stockholder and specified conditions are met or an exemption
is otherwise established. Payment of the proceeds from a disposition by a non-U.S. stockholder of common stock made by or through the
U.S. office of a broker is generally subject to information reporting and backup withholding unless the non-U.S. stockholder certifies
under penalties of perjury that it is not a United States person and satisfies certain other requirements, or otherwise establishes an
exemption from information reporting and backup withholding.
Backup withholding is not an additional tax. Any
amounts withheld under the backup withholding rules may be refunded or credited against the stockholder’s U.S. federal income
tax liability if certain required information is furnished to the IRS. Stockholders should consult their tax advisors regarding application
of backup withholding to them and the availability of, and procedure for obtaining an exemption from, backup withholding.
Other Tax Consequences
Tax Aspects of Our Investments in Our Operating Partnership and
Subsidiary Partnerships
The following discussion summarizes certain U.S.
federal income tax considerations applicable to our direct or indirect investments in our Operating Partnership and any subsidiary partnerships
or limited liability companies that we form or acquire (each individually, a “Partnership” and, collectively, the “Partnerships”).
The discussion does not cover state or local tax laws or any U.S. federal tax laws other than income tax laws.
Classification
as Partnerships. We will include in our income our distributive share of each Partnership’s income and deduct our distributive
share of each Partnership’s losses only if such Partnership is classified for U.S. federal income tax purposes as a partnership
(or an entity that is disregarded for U.S. federal income tax purposes if the entity is treated as having only one owner for U.S. federal
income tax purposes) rather than as a corporation or an association taxable as a corporation. An unincorporated entity with at least two
owners or members will be classified as a partnership, rather than as a corporation, for U.S. federal income tax purposes if it:
| · | is treated as a partnership under the Treasury Regulations relating to entity classification, or the check-the-box regulations; and |
| · | is not a “publicly traded partnership.” |
Under the check-the-box regulations, an unincorporated
entity with at least two owners or members may elect to be classified either as an association taxable as a corporation or as a partnership.
If such an entity does not make an election, it will generally be treated as a partnership (or an entity that is disregarded for U.S.
federal income tax purposes if the entity is treated as having only one owner or member for U.S. federal income tax purposes) for U.S.
federal income tax purposes. Our Operating Partnership intends to be classified as a partnership for U.S. federal income tax purposes
and will not elect to be treated as an association taxable as a corporation under the check-the-box regulations.
A publicly traded partnership is a partnership
whose interests are traded on an established securities market or are readily tradable on a secondary market or the substantial equivalent
thereof. A publicly traded partnership will not, however, be treated as a corporation for any taxable year if, for each taxable year beginning
after December 31, 1987 in which it was classified as a publicly traded partnership, 90% or more of the partnership’s gross
income for such year consists of certain passive-type income, including real property rents, gains from the sale or other disposition
of real property, interest and dividends, or the 90% passive income exception. Treasury Regulations provide limited safe harbors from
the definition of a publicly traded partnership. Pursuant to one of those safe harbors, or the private placement exclusion, interests
in a partnership will not be treated as readily tradable on a secondary market or the substantial equivalent thereof if (1) all interests
in the partnership were issued in a transaction or transactions that were not required to be registered under the Securities Act and (2) the
partnership does not have more than 100 partners at any time during the partnership’s taxable year. In determining the number of
partners in a partnership, a person owning an interest in a partnership, grantor trust or S corporation that owns an interest in the partnership
is treated as a partner in such partnership only if (1) substantially all of the value of the owner’s interest in the entity
is attributable to the entity’s direct or indirect interest in the partnership and (2) a principal purpose of the use of the
entity is to permit the partnership to satisfy the 100-partner limitation. We believe that our Operating Partnership and any other Partnership
in which we own an interest qualifies for the private placement exception.
We have not requested, and do not intend to request,
a ruling from the IRS that our Operating Partnership will be classified as a Partnership for U.S. federal income tax purposes. If for
any reason our Operating Partnership were taxable as a corporation, rather than as a partnership, for U.S. federal income tax purposes,
we likely would not be able to qualify as a REIT unless we qualified for certain relief provisions. See “—Gross Income Tests”
and “—Asset Tests.” In addition, any change in a Partnership’s status for U.S. federal income tax purposes might
be treated as a taxable event, in which case we might incur tax liability without any related cash distribution. Further, items of income
and deduction of such Partnership would not pass through to its partners, and its partners would be treated as stockholders for U.S. federal
income tax purposes. Consequently, such Partnership would be required to pay tax at U.S. federal corporate income tax rates on its net
income, and distributions to its partners would constitute dividends that would not be deductible in computing such Partnership’s
taxable income.
Income Taxation of the Partnerships and their Partners
Partners,
Not the Partnerships, Subject to Tax. A partnership is generally not a taxable entity for U.S. federal income tax purposes.
Rather, we are required to take into account our allocable share of each Partnership’s income, gains, losses, deductions and credits
for any taxable year of such Partnership ending within or with our taxable year, without regard to whether we have received or will receive
any distribution from such Partnership. However, as discussed below, the tax liability for adjustments to a partnership’s tax returns
made as a result of an audit by the IRS will be imposed on the partnership itself in certain circumstances absent an election to the contrary
(if available).
Partnership
Allocations. Although a partnership agreement generally will determine the allocation of income and losses among partners,
such allocations will be disregarded for U.S. federal income tax purposes if they do not comply with the provisions of the U.S. federal
income tax laws governing partnership allocations. If an allocation is not recognized for U.S. federal income tax purposes, the item subject
to the allocation will be reallocated in accordance with the partners’ interests in the partnership, which will be determined by
taking into account all of the facts and circumstances relating to the economic arrangement of the partners with respect to such item.
Each Partnership’s allocations of taxable income, gain and loss are intended to comply with the requirements of the U.S. federal
income tax laws governing partnership allocations.
Tax
Allocations with Respect to Partnership Properties. Income, gain, loss and deduction attributable to appreciated or depreciated
property that is contributed to a partnership in exchange for an interest in the partnership must be allocated in a manner such that the
contributing partner is charged with, or benefits from, respectively, the unrealized gain or unrealized loss associated with the property
at the time of the contribution pursuant to the rules set forth in Section 704(c) of the Code (the “704(c) Allocations”).
The amount of the unrealized gain or unrealized loss, or built-in gain or built-in loss, respectively, is generally equal to the difference
between the fair market value of the contributed property at the time of contribution and the adjusted tax basis of such property at the
time of contribution, or a book-tax difference. Any property purchased for cash initially will have an adjusted tax basis equal to its
fair market value, resulting in no book-tax difference. A book-tax difference generally is decreased on an annual basis as a result of
depreciation deductions to the contributing partner for book purposes but not for tax purposes. The 704(c) Allocations are solely
for U.S. federal income tax purposes and do not affect the book capital accounts or other economic or legal arrangements among the partners.
In the future, our Operating Partnership may acquire property that may have a built-in gain or a built-in loss in exchange for OP units.
Our Operating Partnership will have a carryover, rather than a fair market value, adjusted tax basis in such contributed assets equal
to the adjusted tax basis of the contributors in such assets, resulting in a book-tax difference. As a result of that book-tax difference,
we will have a lower adjusted tax basis with respect to that portion of our Operating Partnership’s assets than we would have with
respect to assets having a tax basis equal to fair market value at the time of acquisition. This could result in lower depreciation deductions
with respect to the portion of our Operating Partnership’s assets attributable to such contributions.
The U.S. Treasury Department has issued regulations
requiring partnerships to use a “reasonable method” for allocating items with respect to which there is a book-tax difference
and outlining several reasonable allocation methods. Under certain available methods, the carryover basis of contributed properties in
the hands of our Operating Partnership (1) could cause us to be allocated lower amounts of depreciation deductions for tax purposes
than would be allocated to us if all contributed properties were to have a tax basis equal to their fair market value at the time of the
contribution and (2) in the event of a sale of such properties, could cause us to be allocated taxable gain in excess of the economic
or book gain allocated to us as a result of such sale, with a corresponding benefit to the contributing partners. An allocation described
in (2) above might cause us to recognize taxable income in excess of cash proceeds in the event of a sale or other disposition of
property, which may adversely affect our ability to comply with the REIT distribution requirements and may result in a greater portion
of our distributions being taxed as dividends. The Operating Partnership uses the “traditional method” to account for book-tax
differences.
Sale of a Partnership’s Property
Generally, any gain realized by a Partnership
on the sale of property held by the Partnership for more than one year will be long-term capital gain, except for any portion of such
gain that is treated as depreciation or cost recovery recapture. Under the 704(c) Allocations, any gain or loss recognized by a Partnership
on the disposition of contributed properties will be allocated first to the partners of the Partnership who contributed such properties
to the extent of their built-in gain or built-in loss on those properties for U.S. federal income tax purposes. The partners’ built-in
gain or built-in loss on such contributed properties will equal the difference between the partners’ proportionate share of the
book value of those properties and the partners’ tax basis allocable to those properties at the time of the contribution as reduced
for any decrease in the “book-tax difference.” See “—Income Taxation of the Partnerships and their Partners—Tax
Allocations with Respect to Partnership Properties.” Any remaining gain or loss recognized by the Partnership on the disposition
of the contributed properties, and any gain or loss recognized by the Partnership on the disposition of the other properties, will be
allocated among the partners in accordance with their respective percentage interests in the Partnership.
Our share of any gain realized by a Partnership
on the sale of any property held by the Partnership as inventory or other property held primarily for sale to customers in the ordinary
course of the Partnership’s trade or business will be treated as income from a prohibited transaction that is subject to a 100%
penalty tax. Such prohibited transaction income may have an adverse effect upon our ability to satisfy the income tests for REIT status.
See “—Gross Income Tests.” We do not presently intend to acquire or hold or to allow any Partnership to acquire or hold
any property that represents inventory or other property held primarily for sale to customers in the ordinary course of our or such Partnership’s
trade or business.
Partnership Audit Rules
Under the rules applicable to U.S. federal
income tax audits of partnerships, any audit adjustments to items of income, gain, loss, deduction or credit of a partnership (and any
partner’s distributive share thereof) are now determined, and taxes, interest or penalties attributable thereto are assessed and
collected, at the partnership level. The partnership itself may be liable for a hypothetical increase in partner-level taxes (including
interest and penalties) resulting from an adjustment of “partnership-related items” on audit (the “imputed adjustment
amount”), regardless of changes in the composition of the partners (or their relative ownership) between the year under audit and
the year of the adjustment (and thus potentially causing the partners at the time of the audit adjustment to bear taxes attributable to
former partners). The rules also include an elective alternative method under which the additional taxes resulting from the adjustment
are assessed against the affected partners (often referred to as a “push-out election”), subject to a higher rate of interest
than otherwise would apply. These partnership audit rules could increase the U.S. federal income tax, interest, and/or penalties
otherwise borne by us in the event of a U.S. federal income tax audit of any of the Partnerships.
Legislative or Other Actions Affecting REITs
The present U.S. federal income tax treatment
of REITs may be modified, possibly with retroactive effect, by legislative, judicial or administrative action at any time, which could
affect the U.S. federal income tax treatment of an investment in our securities. The REIT rules are constantly under review by persons
involved in the legislative process and by the IRS and the U.S. Treasury Department, which may result in statutory changes as well as
revisions to regulations and interpretations. Additionally, several of the tax considerations described herein are currently under review
and are subject to change. Prospective securityholders are urged to consult with their tax advisors regarding the effect of potential
changes to the U.S. federal income tax laws on an investment in our securities.
State and Local Taxes
We and/or our securityholders may be subject to
taxation by various states and localities, including those in which we or a securityholder transacts business, owns property or resides.
The state and local tax treatment may differ from the U.S. federal income tax treatment described above. Consequently, prospective securityholders
should consult their tax advisors regarding the effect of state and local tax laws upon an investment in our securities.
Plan
of Distribution
We may sell the securities being offered hereby
in one or more of the following ways from time to time:
| · | through agents to the public or to investors; |
| · | to underwriters or dealers for resale to the public or to investors; |
| · | in “at-the-market” offerings, within the meaning of Rule 415 under the Securities Act to or through a market maker
or into an existing trading market on an exchange or otherwise; |
| · | through a combination of any of these methods of sale; or |
| · | in any manner, as provided in the accompanying prospectus supplement. |
We may also effect a distribution of the securities
offered hereby through the issuance of derivative securities, including without limitation, warrants, forward delivery contracts and the
writing of options. In addition, the manner in which we may sell some or all of the securities covered by this prospectus includes, without
limitation, through:
| · | a block trade in which a broker-dealer will attempt to sell as agent, but may position or resell a portion of the block, as principal,
in order to facilitate the transaction; |
| · | purchases by a broker-dealer, as principal, and resale by the broker-dealer for its account; |
| · | ordinary brokerage transactions and transactions in which a broker solicits purchasers; or |
| · | privately negotiated transactions. |
Subject to maintaining our qualification as a
REIT, we may also enter into hedging transactions. For example, we may:
| · | enter into transactions with a broker-dealer or affiliate thereof in connection with which such broker-dealer or affiliate will engage
in short sales of securities offered pursuant to this prospectus, in which case such broker-dealer or affiliate may use securities issued
pursuant to this prospectus close out its short positions; |
| · | sell securities short and redeliver such shares to close out our short positions; |
| · | enter into option or other types of transactions that require us to deliver securities to a broker-dealer or an affiliate thereof,
who will then resell or transfer securities under this prospectus; or |
| · | loan or pledge securities to a broker-dealer or an affiliate thereof, who may sell the loaned securities or, in an event of default
in the case of a pledge, sell the pledged securities pursuant to this prospectus. |
We will set forth in a prospectus supplement the
terms of the offering of securities, including:
| · | the name or names of any agents or underwriters; |
| · | the purchase price of the securities being offered and the proceeds we will receive from the sale; |
| · | the terms of the securities offered; |
| · | any over-allotment options under which underwriters or agents may purchase or place additional securities; |
| · | any agency fees or underwriting discounts and other items constituting agents’ or underwriters’ compensation; |
| · | any public offering price; |
| · | any discounts or concessions allowed or reallowed or paid to dealers; and |
| · | any securities exchanges on which such securities may be listed. |
Agents
We may designate agents who agree to use their
reasonable efforts to solicit purchases for the period of their appointment or to sell the securities being offered hereby on a continuing
basis, unless otherwise provided in a prospectus supplement.
We may from time to time engage a broker-dealer
to act as our offering agent for one or more offerings of our securities. If we reach agreement with an offering agent with respect to
a specific offering, including the number of securities and any minimum price below which sales may not be made, then the offering agent
will try to sell such common stock on the agreed terms. The offering agent could make sales in privately negotiated transactions and/or
any other method permitted by law, including sales deemed to be an “at-the-market” offering as defined in Rule 415 promulgated
under the Securities Act, including sales made directly on the NYSE, or sales made to or through a market maker other than on an exchange.
The offering agent will be deemed to be an “underwriter” within the meaning of the Securities Act, with respect to any sales
effected through an “at-the-market” offering.
Underwriters
If we use underwriters for a sale of securities,
the underwriters will acquire the securities, and may resell the securities in one or more transactions, including negotiated transactions,
at a fixed public offering price or at varying prices determined at the time of sale. The obligations of the underwriters to purchase
the securities will be subject to the conditions set forth in the applicable underwriting agreement. We may change from time to time any
public offering price and any discounts or concessions the underwriters allow or reallow or pay to dealers. We may use underwriters with
whom we have a material relationship. We will describe in the prospectus supplement naming the underwriter the nature of any such relationship.
Institutional Purchasers
We may authorize underwriters, dealers or agents
to solicit certain institutional investors, approved by us, to purchase our securities on a delayed delivery basis or pursuant to delayed
delivery contracts provided for payment and delivery on a specified future date. These institutions may include commercial and savings
banks, insurance companies, pension funds, investment companies and educational and charitable institutions. We will describe in the prospectus
supplement details of any such arrangement, including the offering price and applicable sales commissions payable on such solicitations.
Direct Sales
We may also sell securities directly to one or
more purchasers without using underwriters or agents. Underwriters, dealers and agents that participate in the distribution of the securities
may be underwriters as defined in the Securities Act and any discounts or commissions they receive from us and any profit on their resale
of the securities may be treated as underwriting discounts and commissions under the Securities Act. We will identify in the accompanying
prospectus supplement any underwriters, dealers or agents and will describe their compensation. We may have agreements with the underwriters,
dealers and agents to indemnify them against specified civil liabilities, including liabilities under the Securities Act. Underwriters,
dealers and agents may engage in transactions with or perform services for us in the ordinary course of their businesses from time to
time.
Underwriting Compensation
Any underwriting compensation paid by us to underwriters,
dealers or agents in connection with the offering of securities, and any discounts, concessions or commissions allowed by underwriters
to participating dealers, will be set forth in the applicable prospectus supplement. Dealers and agents participating in the distribution
of the securities may be deemed to be underwriters, and any discounts and commissions received by them and any profit realized by them
on resale of the securities may be deemed to be underwriting discounts and commissions under the Securities Act. In compliance with the
guidelines of the Financial Industry Regulatory Authority, Inc., or FINRA, the maximum compensation to be paid to underwriters participating
in any offering made pursuant to this prospectus will not exceed 8% of the gross proceeds from that offering. In the event that FINRA
Rule 5121 applies to any such offering due to the presence of a “conflict of interest” (as that term is defined in FINRA
Rule 5121), the prospectus supplement for that offering will contain prominent disclosure with respect to such conflict of interest
as required by that rule. Underwriters, dealers and agents may be entitled, under agreements entered into with us and our Operating Partnership,
to indemnification against and contribution toward civil liabilities, including liabilities under the Securities Act. We will describe
any indemnification agreement in the applicable prospectus supplement.
Trading Markets and Listing of Securities
Unless otherwise specified in the accompanying
prospectus supplement, each class or series of securities covered by this prospectus will be a new issue with no established trading market,
other than our common stock, which is listed on the NYSE. We may elect to list any other class or series of securities on any exchange,
but we are not obligated to do so. It is possible that one or more underwriters may make a market in a class or series of securities,
but the underwriters will not be obligated to do so and may discontinue any market making at any time without notice. We cannot give any
assurance as to the liquidity of the trading market for any of the securities.
Stabilization Activities
In accordance with Regulation M under the Exchange
Act, underwriters may engage in over-allotment, stabilizing or short covering transactions or penalty bids in connection with an offering
of our securities. Over-allotment transactions involve sales in excess of the offering size, which create a short position. Stabilizing
transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum price.
Short covering transactions involve purchases of the securities in the open market after the distribution is completed to cover short
positions. Penalty bids permit the underwriters to reclaim a selling concession from a dealer when the securities originally sold by the
dealer are purchased in a covering transaction to cover short positions. Those activities may cause the price of the securities to be
higher than they would otherwise be. If commenced, the underwriters may discontinue any of the activities at any time.
Legal
Matters
Certain legal matters in connection with the offering
of securities covered by this prospectus will be passed upon for us by Vinson & Elkins L.L.P. and, with respect to certain matters
of Maryland law, Venable LLP.
Experts
The audited financial statements incorporated
by reference in this prospectus and elsewhere in the registration statement have been so incorporated by reference in reliance upon the
report of Grant Thornton LLP, independent registered public accountants, upon the authority of said firm as experts in accounting and
auditing.
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
| Item 14. | Other Expenses of Issuance and Distribution. |
The following table itemizes the expenses incurred
by us in connection with the issuance and registration of the securities being registered hereunder.
| |
|
Amount |
|
| SEC registration fee |
|
$ |
13,524.51 |
(1) |
| Printing fees |
|
|
* |
|
| Legal fees and expenses |
|
|
* |
|
| Accountants’ fees and expenses |
|
|
* |
|
| Miscellaneous |
|
|
* |
|
| Total |
|
$ |
* |
|
| (1) | We previously registered $350,000,000 in aggregate offering price of our
common stock, par value $0.01 per share, preferred stock, par value $0.01 per share, warrants, rights and units pursuant to the Registration
Statement on Form S-3 (No. 333-251057) filed with the SEC on December 1, 2020 and declared effective on December 11,
2020 (the “2020 Registration Statement”), $229,564,485 of which remains unsold (the “Unsold Securities”). Pursuant
to Rule 457(p) under the Securities Act, we are offsetting the registration fee due under this registration statement by
$25,045.49, which represents a portion of the registration fee relating to the Unsold Securities previously paid in connection with the
2020 Registration Statement (based on the filing fee rate in effect at the time of the filing of the 2020 Registration Statement). A filing
fee of $13,524.51 with respect to the newly registered securities hereunder, which represents the total registration fee adjusted
for the total fee offset with respect to the Unsold Securities, is being paid herewith. Pursuant to Rule 457(p) under the Securities
Act, the offering of the Unsold Securities under the 2020 Registration Statement is terminated as of the filing of this registration statement. |
| * | These fees and expenses are calculated based on the number of issuances and amount of securities offered and accordingly cannot be
estimated at this time. |
All amounts in the table above, except the SEC
registration fee, are estimated. These amounts do not include expenses of preparing and printing any accompanying prospectus supplements,
listing fees, trustee fees and expenses, transfer agent fees and other expenses related to offerings of particular securities from time
to time. Estimated fees and expenses associated with future offerings will be provided in the applicable prospectus supplement.
| Item 15. | Indemnification of Directors and Officers. |
Maryland law permits a Maryland corporation to
include in its charter a provision eliminating the liability of its directors and officers to the corporation and its stockholders for
money damages except for liability resulting from actual receipt of an improper benefit or profit in money, property or services or active
and deliberate dishonesty that is established by a final judgment and is material to the cause of action. Our charter contains such a
provision that eliminates such liability to the maximum extent permitted by Maryland law.
The MGCL requires a Maryland corporation (unless
its charter provides otherwise, which our charter does not) to indemnify a director or officer who has been successful, on the merits
or otherwise, in the defense of any proceeding to which he or she is made or threatened to be made a party by reason of his or her service
in that capacity. The MGCL permits a Maryland corporation to indemnify its present and former directors and officers, among others, against
judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to or in
which they may be made or are threatened to be made a party or witness by reason of their service in those or other capacities unless
it is established that:
| · | the act or omission of the director or officer was material to the matter giving rise to the proceeding and: |
| · | was committed in bad faith; or |
| · | was the result of active and deliberate dishonesty; |
| · | the director or officer actually received an improper personal benefit in money, property or services; or |
| · | in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. |
However, under the MGCL, a Maryland corporation
may not indemnify a director or officer for an adverse judgment in a suit by or on behalf of the corporation or if the director or officer
was adjudged liable on the basis that personal benefit was improperly received, unless, in either case, a court orders indemnification
and then only for expenses. A court may order indemnification if it determines that the director or officer is fairly and reasonably entitled
to indemnification, even though the director or officer did not meet the prescribed standard of conduct or was adjudged liable on the
basis that personal benefit was improperly received.
In addition, the MGCL permits a Maryland corporation
to advance reasonable expenses to a director or officer upon the corporation’s receipt of:
| · | a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary
for indemnification by the corporation; and |
| · | a written undertaking, which may be unsecured, by the director or officer or on the director’s or officer’s behalf to
repay the amount paid if it shall ultimately be determined that the standard of conduct has not been met. |
Our charter obligates us, to the maximum extent
permitted by Maryland law in effect from time to time, to indemnify and to pay or reimburse reasonable expenses in advance of final disposition
of a proceeding without requiring a preliminary determination of the director’s or officer’s ultimate entitlement to indemnification
to:
| · | any individual who is a present or former director or officer and who is made, or threatened to be made, a party to, or witness in,
the proceeding by reason of his or her service in that capacity; or |
| · | any individual who, while a director or officer of our company and at our request, serves or has served as a director, officer, partner,
member, manager or trustee of another corporation, real estate investment trust, partnership, limited liability company, joint venture,
trust, employee benefit plan or any other enterprise and who is made or threatened to be made a party to, or witness in, the proceeding
by reason of his or her service in that capacity. |
The rights to indemnification and advance of expenses
described above vest immediately upon election of a director or officer. Our charter also permits us, with the approval of our board of
directors, to indemnify and advance expenses to any person who served a predecessor of ours in any of the capacities described above and
to any employee or agent of our company or a predecessor of our company.
We maintain directors’ and officers’
liability insurance which would indemnify our directors and officers against damages arising out of certain kinds of claims which might
be made against them based on their negligent acts or omissions while acting in their capacity as such.
We have entered into indemnification agreements
with each of our directors and executive officers that obligate us to indemnify them to the maximum extent permitted by Maryland law.
The indemnification agreements provide that, if a director or executive officer is a party to, or witness in, or is threatened to be made
a party to, or witness in, any proceeding by reason of his or her service as a director, officer, employee or agent of our company or
as a director, officer, partner, member, manager, fiduciary, employee, agent or trustee of any other foreign or domestic corporation,
real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise
that he or she is or was serving in such capacity at our request, or the request of our Manager, we must indemnify the director or executive
officer for all expenses and liabilities actually and reasonably incurred by him or her, or on his or her behalf, to the maximum extent
permitted under Maryland law, including in any proceeding brought by the director or executive officer to enforce his or her rights under
the indemnification agreement, to the extent provided by the agreement. The indemnification agreements also require us to advance reasonable
expenses incurred by the indemnitee within ten days of the receipt by us of a statement from the indemnitee requesting the advance, provided
the statement evidences the expenses and is accompanied or preceded by:
| · | a written affirmation of the indemnitee’s good faith belief that he or she has met the standard of conduct necessary for indemnification;
and |
| · | a written undertaking, which may be unsecured, by the indemnitee or on his or her behalf to repay the amount paid if it shall ultimately
be established that the standard of conduct has not been met. |
The indemnification agreements provide for procedures
for the determination of entitlement to indemnification, including requiring such determination be made by independent counsel after a
change of control of us.
In addition, our directors and officers may be
entitled to indemnification pursuant to the terms of the partnership agreement of our operating partnership.
Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to directors, officers or persons controlling our company pursuant to the foregoing provisions,
we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act
and is therefore unenforceable.
| Item 16. | Index to Exhibits. |
The following exhibits are filed as part of, or
incorporated by reference into, this registration statement on Form S-3:
| * | To be filed by amendment or incorporated by reference in connection with the offering of a particular class or series of securities. |
| *** | Where applicable, to be filed subsequently in accordance with Section 305(b)(2) of the Trust Indenture Act of 1939, as amended. |
| (a) | The undersigned registrant hereby undertakes: |
(1) To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes
in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration
Fee” table in the effective registration statement; and
(iii) To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement;
Provided,
however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) above do not apply if the information required to be included
in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant
pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration
statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
(2) That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
(3) To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination
of the offering.
(4) That,
for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
(A) Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of
the date the filed prospectus was deemed part of and included in the registration statement; and
(B) Each prospectus
required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as part of a registration statement in reliance on Rule 430B
relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required
by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the
earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities
in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that
is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities
in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or
prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale
prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part
of the registration statement or made in any such document immediately prior to such effective date.
(5) That,
for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
of the securities:
The undersigned registrant undertakes that in
a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to
such purchaser:
(i) Any
preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii) Any
free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the
undersigned registrant;
(iii) The
portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and
(iv) Any
other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(b) The
undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing
of the registrant’s annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and,
where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(c) Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid
by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted
by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of
such issue.
(d) The
undersigned registrant hereby further undertakes that:
(1) For
purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part
of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant
to Rule 424(b)(1) or (4), or 497(h) under the Securities Act shall be deemed to be part of this registration statement
as of the time it was declared effective.
(2) For
the purposes of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.
SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it has met all of the requirements for
filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Winter Park, State of Florida, on September 27, 2023.
| |
ALPINE INCOME PROPERTY TRUST, INC. |
| |
|
| |
By: |
/s/ John P. Albright |
| |
|
John P. Albright |
| |
|
President and Chief Executive Officer (Principal Executive Officer) |
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints each of Matthew M. Partridge and Daniel E. Smith with full power to act
without the other, such person’s true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution,
for him or her and in his or her name, place and stead, in any and all capacities, to sign this registration statement and any and all
amendments thereto (including post-effective amendments) and any related registration statement filed pursuant to Rule 462(b) under
the Securities Act of 1933, as amended, and to file the same, with exhibits and schedules thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto each said attorney-in-fact and agent full power and authority to do and perform
each and every act and thing necessary or desirable to be done in and about the premises, as fully to all intents and purposes as he or
she might or could do in person, hereby ratifying and confirming all that each said attorney-in-fact and agent or his or her substitute
or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
|
Signature |
Title |
Date |
|
/s/ John P. Albright |
President and Chief Executive Officer and Director |
September 27, 2023 |
| John P. Albright |
(Principal Executive Officer) |
|
| |
|
|
|
/s/ Matthew M.
Partridge |
Senior Vice President and Chief Financial Officer and Treasurer |
September 27, 2023 |
| Matthew M. Partridge |
(Principal Financial Officer) |
|
| |
|
|
|
/s/ Lisa M. Vorakoun |
Vice President and Chief Accounting Officer |
September 27, 2023 |
| Lisa M. Vorakoun |
(Principal Accounting Officer) |
|
| |
|
|
|
/s/ Andrew C.
Richardson |
Director |
September 27, 2023 |
| Andrew C. Richardson |
|
|
| |
|
|
|
/s/ Mark O. Decker, Jr. |
Director |
September 27, 2023 |
| Mark O. Decker, Jr. |
|
|
| |
|
|
|
/s/ M. Carson
Good |
Director |
September 27, 2023 |
| M. Carson Good |
|
|
| |
|
|
|
/s/ Rachel Elias
Wein |
Director |
September 27, 2023 |
|
Rachel Elias Wein
|
|
|
| |
|
|
|
/s/ Jeffrey S.
Yarckin |
Director |
September 27, 2023 |
| Jeffrey S. Yarckin |
|
|
Exhibit 4.5
ALPINE
INCOME PROPERTY TRUST, INC.
TO
,
Trustee
Indenture
(For [Subordinated]* Debt Securities)
Dated
as of , 20
TABLE
OF CONTENTS†
Page
| RECITAL OF THE COMPANY |
1 |
| |
|
| Article I DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION |
1 |
| |
|
| |
Section 1.01 |
Definitions |
1 |
| |
Section 1.02 |
Compliance Certificates and Opinions |
8 |
| |
Section 1.03 |
Form of Documents Delivered to Trustee |
9 |
| |
Section 1.04 |
Acts of Holders |
10 |
| |
Section 1.05 |
Notices, Etc. to Trustee and Company |
11 |
| |
Section 1.06 |
Notice to Holders of Debt Securities; Waiver |
12 |
| |
Section 1.07 |
Conflict with Trust Indenture Act |
12 |
| |
Section 1.08 |
Effect of Headings and Table of Contents |
12 |
| |
Section 1.09 |
Successors and Assigns |
13 |
| |
Section 1.10 |
Separability Clause |
13 |
| |
Section 1.11 |
Benefits of Indenture |
13 |
| |
Section 1.12 |
Governing Law |
13 |
| |
Section 1.13 |
Legal Holidays |
13 |
| |
|
|
|
| Article II DEBT SECURITY FORMS |
13 |
| |
|
| |
Section 2.01 |
Forms Generally |
13 |
| |
Section 2.02 |
Form of Trustee’s Certificate of Authentication |
14 |
| |
Section 2.03 |
Debt Securities Issuable in the Form of a Global
Security |
14 |
| |
|
|
|
| Article III THE DEBT SECURITIES |
17 |
| |
|
| |
Section 3.01 |
Amount Unlimited; Issuable in Series |
17 |
| |
Section 3.02 |
Denominations |
20 |
| |
Section 3.03 |
Execution, Authentication, Delivery and Dating |
20 |
| |
Section 3.04 |
Temporary Debt Securities |
23 |
| |
Section 3.05 |
Registration, Registration of Transfer and Exchange |
23 |
| |
Section 3.06 |
Mutilated, Destroyed, Lost and Stolen Debt Securities |
25 |
| |
Section 3.07 |
Payment of Interest and Additional Interest; Interest
Rights Preserved |
25 |
| |
Section 3.08 |
Persons Deemed Owners |
27 |
| |
Section 3.09 |
Cancellation by Debt Security Registrar |
27 |
| |
Section 3.10 |
Computation of Interest |
27 |
| |
Section 3.11 |
Payment to be in Proper Currency |
28 |
| |
Section 3.12 |
[Extension of Interest Payment]* |
28 |
| |
|
|
|
| Article IV REDEMPTION OF DEBT SECURITIES |
28 |
| |
|
| |
Section 4.01 |
Applicability of Article |
28 |
| |
Section 4.02 |
Election to Redeem; Notice to Trustee |
28 |
| |
Section 4.03 |
Selection of Debt Securities to be Redeemed |
29 |
| |
Section 4.04 |
Notice of Redemption |
29 |
| † | This table of contents shall not, for any purpose, be deemed
to be a part of the Indenture. |
| * | Bracketed language will be inserted in the Indenture under which
subordinated Debt Securities will be issued. |
| |
Section 4.05 |
Debt Securities Payable on Redemption Date |
31 |
| |
Section 4.06 |
Debt Securities Redeemed in Part |
31 |
| |
|
|
|
| Article V SINKING FUNDS |
31 |
| |
|
| |
Section 5.01 |
Applicability of Article |
31 |
| |
Section 5.02 |
Satisfaction of Sinking Fund Payments with Debt Securities |
32 |
| |
Section 5.03 |
Redemption of Debt Securities for Sinking Fund |
32 |
| |
|
|
|
| Article VI COVENANTS |
33 |
| |
|
| |
Section 6.01 |
Payment of Principal, Premium and Interest |
33 |
| |
Section 6.02 |
Maintenance of Office or Agency |
33 |
| |
Section 6.03 |
Money for Debt Securities Payments to be Held in Trust |
34 |
| |
Section 6.04 |
Corporate Existence |
35 |
| |
Section 6.05 |
Maintenance of Properties |
35 |
| |
Section 6.06 |
Annual Officer’s Certificate as to Compliance |
35 |
| |
Section 6.07 |
Waiver of Certain Covenants |
36 |
| |
|
|
|
| Article VII SATISFACTION AND DISCHARGE |
36 |
| |
|
| |
Section 7.01 |
Satisfaction and Discharge of Debt Securities |
36 |
| |
Section 7.02 |
Satisfaction and Discharge of Indenture |
39 |
| |
Section 7.03 |
Application of Trust Money |
39 |
| |
|
|
|
| Article VIII EVENTS OF DEFAULT; REMEDIES |
40 |
| |
|
| |
Section 8.01 |
Events of Default |
40 |
| |
Section 8.02 |
Acceleration of Maturity; Rescission and Annulment |
41 |
| |
Section 8.03 |
Collection of Indebtedness and Suits for Enforcement
by Trustee |
43 |
| |
Section 8.04 |
Trustee May File Proofs of Claim |
43 |
| |
Section 8.05 |
Trustee May Enforce Claims without Possession
of Debt Securities |
44 |
| |
Section 8.06 |
Application of Money Collected |
44 |
| |
Section 8.07 |
Limitation on Suits |
45 |
| |
Section 8.08 |
Unconditional Right of Holders to Receive Principal,
Premium and Interest |
45 |
| |
Section 8.09 |
Restoration of Rights and Remedies |
45 |
| |
Section 8.10 |
Rights and Remedies Cumulative |
46 |
| |
Section 8.11 |
Delay or Omission Not Waiver |
46 |
| |
Section 8.12 |
Control by Holders of Debt Securities |
46 |
| |
Section 8.13 |
Waiver of Past Defaults |
47 |
| |
Section 8.14 |
Undertaking for Costs |
47 |
| |
Section 8.15 |
Waiver of Stay or Extension Laws |
47 |
| |
|
|
|
| Article IX THE TRUSTEE |
48 |
| |
|
| |
Section 9.01 |
Certain Duties and Responsibilities |
48 |
| |
Section 9.02 |
Notice of Defaults |
49 |
| |
Section 9.03 |
Certain Rights of Trustee |
49 |
| |
Section 9.04 |
Not Responsible for Recitals or Issuance of Debt Securities |
50 |
| † | This table of contents shall not, for any purpose, be deemed
to be a part of the Indenture. |
| * | Bracketed language will be inserted in the Indenture under which
subordinated Debt Securities will be issued. |
| |
Section 9.05 |
May Hold Debt Securities |
51 |
| |
Section 9.06 |
Money Held in Trust |
51 |
| |
Section 9.07 |
Compensation and Reimbursement |
51 |
| |
Section 9.08 |
Disqualification; Conflicting Interests |
52 |
| |
Section 9.09 |
Corporate Trustee Required; Eligibility |
52 |
| |
Section 9.10 |
Resignation and Removal; Appointment of Successor |
53 |
| |
Section 9.11 |
Acceptance of Appointment by Successor |
54 |
| |
Section 9.12 |
Merger, Conversion, Consolidation or Succession to
Business |
55 |
| |
Section 9.13 |
Preferential Collection of Claims Against Company |
56 |
| |
Section 9.14 |
Co-Trustees and Separate Trustees |
56 |
| |
Section 9.15 |
Appointment of Authenticating Agent |
57 |
| |
|
|
|
| Article X HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND COMPANY |
59 |
| |
|
| |
Section 10.01 |
Lists of Holders |
59 |
| |
Section 10.02 |
Reports by Trustee and Company |
60 |
| |
|
|
|
| Article XI CONSOLIDATION, MERGER,
CONVEYANCE OR OTHER TRANSFER |
60 |
| |
|
| |
Section 11.01 |
Company May Consolidate, Etc., Only on Certain
Terms |
60 |
| |
Section 11.02 |
Successor Corporation Substituted |
61 |
| |
|
|
|
| Article XII SUPPLEMENTAL INDENTURES |
61 |
| |
|
| |
Section 12.01 |
Supplemental Indentures Without Consent of Holders |
61 |
| |
Section 12.02 |
Supplemental Indentures With Consent of Holders |
63 |
| |
Section 12.03 |
Execution of Supplemental Indentures |
64 |
| |
Section 12.04 |
Effect of Supplemental Indentures |
65 |
| |
Section 12.05 |
Conformity With Trust Indenture Act |
65 |
| |
Section 12.06 |
Reference in Debt Securities to Supplemental Indentures |
65 |
| |
Section 12.07 |
Modification without Supplemental Indenture |
65 |
| |
|
|
|
| Article XIII MEETINGS OF HOLDERS;
ACTION WITHOUT MEETING |
66 |
| |
|
| |
Section 13.01 |
Purposes for which Meetings may be Called |
66 |
| |
Section 13.02 |
Call, Notice and Place of Meetings |
66 |
| |
Section 13.03 |
Persons Entitled to Vote at Meetings |
66 |
| |
Section 13.04 |
Quorum; Action |
67 |
| |
Section 13.05 |
Attendance at Meetings; Determination of Voting Rights;
Conduct and Adjournment of Meetings |
68 |
| |
Section 13.06 |
Counting Votes and Recording Action of Meetings |
69 |
| |
Section 13.07 |
Action Without Meeting |
69 |
| |
|
|
|
| Article XIV IMMUNITY OF INCORPORATORS,
STOCKHOLDERS, OFFICERS AND DIRECTORS |
69 |
| |
|
| |
Section 14.01 |
Liability Solely Corporate |
69 |
| |
|
|
|
| Article XV [SUBORDINATION OF SECURITIES]* |
70 |
| |
|
| |
Section 15.01 |
Securities Subordinate to Senior Indebtedness |
70 |
| † | This table of contents shall not, for any purpose, be deemed
to be a part of the Indenture. |
| * | Bracketed language will be inserted in the Indenture under which
subordinated Debt Securities will be issued. |
| |
Section 15.02 |
Payment Over of Proceeds of Securities |
70 |
| |
Section 15.03 |
Disputes with Holders of Certain Senior Indebtedness |
72 |
| |
Section 15.04 |
Subrogation |
72 |
| |
Section 15.05 |
Unconditional Obligation of the Company |
73 |
| |
Section 15.06 |
Priority of Senior Indebtedness Upon Maturity |
73 |
| |
Section 15.07 |
Trustee as Holder of Senior Indebtedness |
74 |
| |
Section 15.08 |
Notice to Trustee to Effectuate Subordination |
74 |
| |
Section 15.09 |
Modification, Extension, Etc. of Senior Indebtedness |
74 |
| |
Section 15.10 |
Trustee Has No Fiduciary Duty to Holders of Senior
Indebtedness |
74 |
| |
Section 15.11 |
Paying Agents other than the Trustee |
75 |
| |
Section 15.12 |
Rights of Holders of Senior Indebtedness Not Impaired |
75 |
| |
Section 15.13 |
This Article Not To Prevent Events of Default |
75 |
| |
Section 15.14 |
Effect of Subordination Provisions; Termination |
75 |
| † | This table of contents shall not, for any purpose, be deemed
to be a part of the Indenture. |
| * | Bracketed language will be inserted in the Indenture under which
subordinated Debt Securities will be issued. |
RECONCILIATION
AND TIE BETWEEN TRUST INDENTURE ACT OF 1939
AND INDENTURE, DATED AS OF , 20
Trust Indenture
Action Section |
Indenture
Section |
| |
|
|
| §310 |
(a)(1) |
9.09 |
| |
(a)(2) |
9.09 |
| |
(a)(3) |
9.14 |
| |
(a)(4) |
Not Applicable |
| |
(b) |
9.08, 9.10 |
| §311 |
(a) |
9.13 |
| |
(b) |
9.13 |
| §312 |
(a) |
10.01 |
| |
(b) |
10.01 |
| |
(c) |
10.01 |
| §313 |
(a) |
10.02 |
| |
(b) |
10.02 |
| |
(c) |
10.02 |
| |
(d) |
10.02 |
| §314 |
(a) |
10.02 |
| |
(a)(4) |
6.06 |
| |
(b) |
Not Applicable |
| |
(c)(1) |
1.02 |
| |
(c)(2) |
1.02 |
| |
(c)(3) |
Not Applicable |
| |
(d) |
Not Applicable |
| |
(e) |
1.02 |
| §315 |
(a) |
9.01, 9.03 |
| |
(b) |
9.02 |
| |
(c) |
9.01 |
| |
(d) |
9.01 |
| |
(e) |
8.14 |
| §316 |
(a) |
8.12, 8.13 |
| |
(a)(1)(A) |
8.02, 8.12 |
| |
(a)(1)(B) |
8.13 |
| |
(a)(2) |
Not Applicable |
| |
(b) |
8.08 |
| |
(c) |
1.04(g) |
| §317 |
(a)(1) |
8.03 |
| |
(a)(2) |
8.04 |
| |
(b) |
6.03 |
| §318 |
(a) |
1.07 |
INDENTURE
(FOR [SUBORDINATED]* DEBT SECURITIES), dated as of , 20 , between
ALPINE INCOME PROPERTY TRUST, INC., a corporation duly organized and existing under the laws of the State of Maryland (herein called
the “Company”), having its principal office at 369 N. New York Avenue, Suite 201, Winter Park, Florida 32789,
and [TRUSTEE], a , having its principal corporate trust office at ,
as Trustee (herein called the “Trustee”).
RECITAL OF THE COMPANY
The Company has duly authorized
the execution and delivery of this Indenture to provide for the issuance from time to time of certain of its [subordinated]* debentures,
notes or other evidences of indebtedness (herein called the “Debt Securities”), in an unlimited aggregate principal
amount, to be issued in one or more series as contemplated herein; and all acts necessary to make this Indenture a valid agreement of
the Company have been performed.
For all purposes of this Indenture,
except as otherwise expressly provided or unless the context otherwise requires, capitalized terms used herein shall have the meanings
assigned to them in Article I of this Indenture.
NOW, THEREFORE, THIS INDENTURE
WITNESSETH:
For and in consideration of
the premises and the purchase of the Debt Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate
benefit of all Holders of the Debt Securities or of series thereof, as follows:
Article I
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 1.01 Definitions.
For all purposes of this Indenture,
except as otherwise expressly provided or unless the context otherwise requires:
(a) the
terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular;
(b) all
terms used herein without definition that are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
(c) all
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles
in the United States, and, except as otherwise herein expressly provided, the term “generally accepted accounting principles”
with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted in the
United States at the date of such computation or, at the election of the Company from time to time, at the date of the execution and delivery
of this Indenture; provided, however, that in determining generally accepted accounting principles applicable to the Company,
the Company shall, to the extent required, conform to any order, rule or regulation of any administrative agency, regulatory authority
or other governmental body having jurisdiction over the Company; and
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(d) the
words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture
as a whole and not to any particular Article, Section or other subdivision.
Certain terms, used principally
in Article IX, are defined in that Article.
“Act” when
used with respect to any Holder of a Debt Security, has the meaning specified in Section 1.04.
“Additional Interest”
means the interest, if any, that shall accrue on any interest on the Debt Securities of any series, the payment of which has not been
made on the applicable Interest Payment Date and which shall accrue at the rate per annum specified or determined as specified in such
Debt Security.
“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified
Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative
to the foregoing.
“Authenticating Agent”
means any Person (other than the Company or an Affiliate of the Company) authorized by the Trustee pursuant to Section 9.15
to act on behalf of the Trustee to authenticate one or more series of Debt Securities or Tranche thereof.
“Authorized Officer”
means the Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, any Vice President, the Treasurer
or any other duly authorized officer of the Company.
“Board of Directors”
means either the board of directors of the Company or any committee thereof duly authorized to act or any director or directors and/or
officer or officers of the Company to whom that board or committee shall have duly delegated its authority in respect of matters relating
to this Indenture.
“Board Resolution”
means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board
of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.
“Business Day,”
when used with respect to a Place of Payment or any other particular location specified in the Debt Securities or this Indenture, means
any day, other than a Saturday or Sunday, which is not a day on which banking institutions or trust companies in such Place of Payment
or other location are generally authorized or required by law, regulation or executive order to remain closed, except as may be otherwise
specified as contemplated by Section 3.01.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
“Commission”
means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after
the date of execution and delivery of this Indenture such Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body, if any, performing such duties at such time.
“Company”
means the Person named as the “Company” in the first paragraph of this Indenture until a successor Person shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person.
“Company Request”
or “Company Order” means a written request or order signed in the name of the Company by an Authorized Officer and
delivered to the Trustee.
“Corporate Trust
Office” means the office of the Trustee at which at any particular time this Indenture shall be principally administered, which
office at the date of execution and delivery of this Indenture is located at .
“Corporation”
means a real estate investment trust, corporation, association, company, limited liability company, joint stock company or business trust.
“Debt Securities”
has the meaning stated in the first recital of this Indenture and more particularly means any securities authenticated and delivered under
this Indenture.
“Debt Security Register”
and “Debt Security Registrar” have the respective meanings specified in Section 3.05.
“Defaulted Interest”
has the meaning specified in Section 3.07.
“Depositary”
shall mean, with respect to Debt Securities of any series, for which the Company shall determine that such Debt Securities will be issued
as a Global Security, The Depository Trust Company, New York, New York, another clearing agency or any successor registered as a clearing
agency under the Exchange Act or other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant
to Section 2.03(c).
“Discount Debt Security”
means any Debt Security that provides for an amount less than the principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 8.02.
“Dollar”
or “$” means a dollar or other equivalent unit in such coin or currency of the United States as at the time shall be
legal tender for the payment of public and private debts.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
“Eligible Obligations”
means:
(a) with
respect to Debt Securities denominated in Dollars, Government Obligations; or
(b) with
respect to Debt Securities denominated in a currency other than Dollars or in a composite currency, such other obligations or instruments
as shall be specified with respect to such Debt Securities, as contemplated by Section 3.01.
“Event of Default”
has the meaning specified in Section 8.01.
“Exchange Act”
means the Securities Exchange Act of 1934, as amended.
“Global Security”
means, with respect to the Debt Securities, a Debt Security executed by the Company and delivered by the Trustee to the Depositary or
pursuant to the Depositary’s instruction, all in accordance with this Indenture, which shall be registered in the name of the Depositary
or its nominee.
“Governmental Authority”
means the government of the United States or of any state or territory thereof or of the District of Columbia or of any county, municipality
or other political subdivision of any thereof, or any department, agency, authority or other instrumentality of any of the foregoing.
“Government Obligations”
means:
(a) direct
obligations of, or obligations the timely payment of principal of and interest on which are unconditionally guaranteed by, the United
States entitled to the benefit of the full faith and credit thereof; and
(b) certificates,
depositary receipts or other instruments that evidence a direct ownership interest in obligations described in clause (a) above
or in any specific interest or principal payments due in respect thereof; provided, however, that the custodian of such
obligations or specific interest or principal payments shall be a bank or trust company (which may include the Trustee or any Paying Agent)
subject to federal or state supervision or examination with a combined capital and surplus of at least $100,000,000; and provided,
further, that except as may be otherwise required by law, such custodian shall be obligated to pay to the holders of such certificates,
depositary receipts or other instruments the full amount received by such custodian in respect of such obligations or specific payments
and shall not be permitted to make any deduction therefrom.
“Holder”
means a Person in whose name a Debt Security is registered in the Debt Security Register.
“Indenture”
means this instrument as originally executed and delivered and as it may from time to time be supplemented or amended by one or more indentures
or Officer’s Certificates supplemental hereto entered into pursuant to the applicable provisions hereof and shall include the terms
of particular series of Debt Securities established as contemplated by Section 3.01.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
“Interest”
with respect to a Discount Debt Security means interest, if any, borne by such Debt Security at a Stated Interest Rate.
“Interest Payment
Date,” when used with respect to any Debt Security, means the Stated Maturity of an installment of interest on such Debt Security.
“Maturity,”
when used with respect to any Debt Security, means the date on which the principal of such Debt Security or an installment of principal
becomes due and payable as provided in such Debt Security or in this Indenture, whether at the Stated Maturity, by declaration of acceleration,
upon call for redemption or otherwise.
“Officer’s
Certificate” means a certificate signed by an Authorized Officer and delivered to the Trustee.
“Opinion of Counsel”
means a written opinion of counsel, who may be counsel for the Company, or other counsel acceptable to the Trustee.
“Outstanding,”
when used with respect to Debt Securities, means, as of the date of determination, all Debt Securities theretofore authenticated and delivered
under this Indenture, except:
(a) Debt
Securities theretofore canceled by the Trustee or the Debt Security Registrar or delivered to the Trustee or the Debt Security Registrar
for cancellation;
(b) Debt
Securities deemed to have been paid in accordance with Section 7.01; and
(c) Debt
Securities that have been paid pursuant to Section 3.06 or in exchange for or in lieu of which other Debt Securities have
been authenticated and delivered pursuant to this Indenture, other than any such Debt Securities in respect of which there shall have
been presented to the Trustee proof satisfactory to it and the Company that such Debt Securities are held by a bona fide purchaser or
purchasers in whose hands such Debt Securities are valid obligations of the Company;
provided,
however, that in determining whether or not the Holders of the requisite principal amount of the Debt Securities Outstanding under
this Indenture, or the Outstanding Debt Securities of any series or Tranche, have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or whether or not a quorum is present at a meeting of Holders of Debt Securities,
(x) Debt
Securities owned by the Company or any other obligor upon the Debt Securities or any Affiliate of the Company or of such other obligor
(unless the Company, such Affiliate or such obligor owns all Debt Securities Outstanding under this Indenture, or all Outstanding Debt
Securities of each such series and each such Tranche, as the case may be, determined without regard to this clause (x)) shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver or upon any such determination as to the presence of a quorum, only
Debt Securities that the Trustee knows to be so owned shall be so disregarded; provided, however, that Debt Securities so
owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee
the pledgee’s right so to act with respect to such Debt Securities and that the pledgee is not the Company or any other obligor
upon the Debt Securities or any Affiliate of the Company or of such other obligor; and
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(y) the
principal amount of a Discount Debt Security that shall be deemed to be Outstanding for such purposes shall be the amount of the principal
thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof
pursuant to Section 8.02;
provided,
further, that, in the case of any Debt Security the principal of which is payable from time to time without presentment or surrender,
the principal amount of such Debt Security that shall be deemed to be Outstanding at any time for all purposes of this Indenture shall
be the original principal amount thereof less the aggregate amount of principal thereof theretofore paid.
“Paying Agent”
means any Person, including the Company, authorized by the Company to pay the principal of and premium, if any, or interest (including
Additional Interest), if any, on any Debt Securities on behalf of the Company.
“Periodic Offering”
means an offering of Debt Securities of a series from time to time any or all of the specific terms of which Debt Securities, including
without limitation the rate or rates of interest (including Additional Interest), if any, thereon, the Stated Maturity or Maturities thereof
and the redemption provisions, if any, with respect thereto, are to be determined by the Company or its agents upon the issuance of such
Debt Securities.
“Person”
means any individual, Corporation, partnership, joint venture, trust or unincorporated organization or any Governmental Authority.
“Place of Payment,”
when used with respect to the Debt Securities of any series, or Tranche thereof, means the place or places, specified as contemplated
by Section 3.01, at which, subject to Section 6.02, principal of and premium, if any, and interest (including
Additional Interest), if any, on the Debt Securities of such series or Tranche are payable.
“Predecessor Debt
Security” of any particular Debt Security means every previous Debt Security evidencing all or a portion of the same debt as
that evidenced by such particular Debt Security; and, for the purposes of this definition, any Debt Security authenticated and delivered
under Section 3.06 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Debt Security shall be deemed (to
the extent lawful) to evidence the same debt as the mutilated, destroyed, lost or stolen Debt Security.
“Redemption Date,”
when used with respect to any Debt Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
“Redemption Price,”
when used with respect to any Debt Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture.
“Regular Record Date”
for the interest payable on any Interest Payment Date on the Debt Securities of any series means the date specified for that purpose as
contemplated by Section 3.01.
“Required Currency”
has the meaning specified in Section 3.11.
“Responsible Officer,”
when used with respect to the Trustee, means the officer of the Trustee at its Corporate Trust Office assigned by the Trustee to administer
this Indenture, and any other duly authorized officer of the Trustee to whom a matter arising under this Indenture may be referred.
[“Senior Indebtedness”
means all (i) obligations (other than non-recourse obligations and the indebtedness issued under this Indenture) of, or guaranteed
or assumed by, the Company for borrowed money, including both senior and subordinated indebtedness for borrowed money (other than the
Debt Securities), or for the payment of money relating to any lease that is capitalized on the consolidated balance sheet of the Company
and its subsidiaries in accordance with generally accepted accounting principles as in effect from time to time, (ii) indebtedness
evidenced by bonds, debentures, notes or other similar instruments, (iii) obligations with respect to letters of credit, bankers’
acceptances or similar facilities issued for the account of the Company, (iv) obligations issued or assumed as the deferred purchase
price of property or services, but excluding trade accounts payable or accrued liabilities arising in the ordinary course of business,
(v) obligations for claims, as defined in Section 101(5) of the United States Bankruptcy Code of 1978, as amended, in respect
of derivative products such as interest and foreign exchange rate contracts, commodity contracts and similar arrangements; and (vi) obligations
of the type referred to in each of the preceding clauses (i) through (v) of another Person, the payment of which the Company
has guaranteed or is responsible or liable for directly or indirectly, as obligor or otherwise; and in each case, amendments, renewals,
extensions, modifications and refundings of any such indebtedness or obligations, whether existing as of the date of this Indenture or
subsequently incurred by the Company.]*
“Special Record Date”
for the payment of any Defaulted Interest on the Debt Securities of any series means a date fixed by the Trustee pursuant to Section 3.07.
“Stated Interest
Rate” means a rate (whether fixed or variable) at which an obligation by its terms is stated to bear interest. Any calculation
or other determination to be made under this Indenture by reference to the Stated Interest Rate on a Debt Security shall be made without
regard to the effective interest cost to the Company of such Debt Security and without regard to the Stated Interest Rate on, or the effective
cost to the Company of, any other indebtedness in respect of which the Company’s obligations are evidenced or secured in whole or
in part by such Debt Security.
“Stated Maturity,”
when used with respect to any obligation or any installment of principal thereof or interest thereon, means the date on which the principal
of such obligation or such installment of principal or interest is stated to be due and payable (without regard to any provisions for
redemption, prepayment, acceleration, purchase or extension).
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
“Tranche”
means a group of Debt Securities that (a) are of the same series and (b) have identical terms except as to principal amount.
“Trust Indenture
Act” means the Trust Indenture Act of 1939, as amended, as in force and effect as of the date of execution of this Indenture;
provided, however, that in the event the Trust Indenture Act of 1939 is succeeded by another statute or is amended after
such date, “Trust Indenture Act” shall mean such successor statute or the Trust Indenture Act of 1939, as so amended, to the
extent such successor statute or amendment is applicable to this Indenture or to the actions of the Company or the Trustee under or pursuant
to this Indenture.
“Trustee”
means the Person named as the “Trustee” in the first paragraph of this Indenture until a successor Trustee shall have become
such with respect to one or more series of Debt Securities pursuant to the applicable provisions of this Indenture, and thereafter “Trustee”
shall mean or include each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee”
as used with respect to the Debt Securities of any series shall mean the Trustee with respect to Debt Securities of that series.
“United States”
means the United States of America, its territories, its possessions and other areas subject to its political jurisdiction.
Section 1.02 Compliance
Certificates and Opinions.
Except as otherwise expressly
provided in this Indenture, upon any application or request by the Company to the Trustee to take any action under any provision of this
Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent, if any, have been complied with, except that in the case of any such application or request
as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application
or request, no additional certificate or opinion need be furnished.
Every certificate or opinion
with respect to compliance with a condition or covenant provided for in this Indenture shall include:
(a) a
statement that each Person signing such certificate or opinion has read such covenant or condition and the definitions herein relating
thereto;
(b) a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(c) a
statement that, in the opinion of each such Person, such Person has made such examination or investigation as is necessary to enable such
Person to express an informed opinion as to whether or not such covenant or condition has been complied with; and
(d) a
statement as to whether, in the opinion of each such Person, such condition or covenant has been complied with.
Section 1.03 Form of
Documents Delivered to Trustee.
In any case where several
matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but
one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and
any such Person may certify or give an opinion as to such matters in one or several documents.
Any certificate or opinion
of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which such officer’s certificate or opinion are based are erroneous. Any such certificate or Opinion
of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer
or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless
such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect
to such matters are erroneous.
Where any Person is required
to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this
Indenture, they may, but need not, be consolidated and form one instrument.
Whenever, subsequent to the
receipt by the Trustee of any Board Resolution, Officer’s Certificate, Opinion of Counsel or other document or instrument, a clerical,
typographical or other inadvertent or unintentional error or omission shall be discovered therein, a new document or instrument may be
substituted therefor in corrected form with the same force and effect as if originally filed in the corrected form and, irrespective of
the date or dates of the actual execution and/or delivery thereof, such substitute document or instrument shall be deemed to have been
executed and/or delivered as of the date or dates required with respect to the document or instrument for which it is substituted. Anything
in this Indenture to the contrary notwithstanding, if any such corrective document or instrument indicates that action has been taken
by or at the request of the Company which could not have been taken had the original document or instrument not contained such error or
omission, the action so taken shall not be invalidated or otherwise rendered ineffective but shall be and remain in full force and effect
(except to the extent that such action was a result of willful misconduct or bad faith or had or could be expected to have a material
adverse effect on the Holders of any Debt Securities issued hereunder).
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Without limiting the generality
of the foregoing, any Debt Securities issued under the authority of such defective document or instrument shall nevertheless be the valid
obligations of the Company entitled to the benefits of this Indenture equally and ratably with all other Outstanding Debt Securities.
Section 1.04 Acts
of Holders.
(a) Any
request, demand, authorization, direction, notice, consent, election, waiver or other action provided by this Indenture to be made, given
or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders
in person or by an agent duly appointed in writing or, alternatively, may be embodied in and evidenced by the record of Holders voting
in favor thereof, either in person or by proxies duly appointed in writing, at any meeting of Holders duly called and held in accordance
with the provisions of Article XIII, or a combination of such instruments and any such record. Except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments or record or both are delivered to the Trustee
and, where it is hereby expressly required, to the Company. Such instrument or instruments and any such record (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument
or instruments and so voting at any such meeting. Proof of execution of any such instrument or of a writing appointing any such agent,
or of the holding by any Person of a Debt Security, shall be sufficient for any purpose of this Indenture and (subject to Section 9.01)
conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. The record of any meeting of Holders
shall be proved in the manner provided in Section 13.06.
(b) The
fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution
or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof or may be proved in any other manner that the Trustee and
the Company deem sufficient. Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate
or affidavit shall also constitute sufficient proof of his authority.
(c) The
principal amount (except as otherwise contemplated in clause (y) of the proviso to the definition of Outstanding) and serial
numbers of Debt Securities held by any Person, and the date of holding the same, shall be proved by the Debt Security Register.
(d) Any
request, demand, authorization, direction, notice, consent, election, waiver or other Act of a Holder shall bind every future Holder of
the same Debt Security and the Holder of every Debt Security issued upon the registration of transfer thereof or in exchange therefor
or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance thereon, whether
or not notation of such action is made upon such Debt Security.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(e) Until
such time as written instruments shall have been delivered to the Trustee with respect to the requisite percentage of principal amount
of Debt Securities for the action contemplated by such instruments, any such instrument executed and delivered by or on behalf of a Holder
may be revoked with respect to any or all of such Debt Securities by written notice by such Holder or any subsequent Holder, proven in
the manner in which such instrument was proven.
(f) Debt
Securities of any series, or any Tranche thereof, authenticated and delivered after any Act of Holders may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any action taken by such Act of Holders. If the Company shall so determine,
new Debt Securities of any series, or any Tranche thereof, so modified as to conform, in the opinion of the Trustee and the Company, to
such action may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Debt
Securities of such series or Tranche.
(g) If
the Company shall solicit from Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company
may, at its option, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only
the Holders of record at the close of business on the record date shall be deemed to be Holders for the purposes of determining whether
Holders of the requisite proportion of the Outstanding Debt Securities have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Debt Securities shall be computed
as of the record date.
Section 1.05 Notices,
Etc. to Trustee and Company.
Any request, demand, authorization,
direction, notice, consent, election, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon,
given or furnished to, or filed with, the Trustee by any Holder or by the Company, or the Company by the Trustee or by any Holder, shall
be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and delivered personally to an officer
or other responsible employee of the addressee, or transmitted by facsimile transmission or other direct written electronic means to such
telephone number or other electronic communications address as the parties hereto shall from time to time designate, or transmitted by
certified or registered mail, charges prepaid, to the applicable address set opposite such party’s name below or to such other address
as either party hereto may from time to time designate:
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
If to the Trustee, to:
[Trustee]
[Address]
Attention:
Telephone:
| |
If to the Company, to: |
With a copy to: |
| |
|
| |
Alpine Income Property Trust, Inc. |
Vinson & Elkins L.L.P. |
| |
1140 N. Williamson Blvd., Suite 140 |
901 East Byrd Street, Suite 1500 |
| |
Daytona Beach, Florida 32114 |
Richmond, Virginia 23219 |
| |
Attention: Daniel E. Smith |
Attention: Zachary A. Swartz |
| |
Telephone: (386) 274-2202 |
Telephone: (804) 327-6324 |
Any communication contemplated
herein shall be deemed to have been made, given, furnished and filed if personally delivered, on the date of delivery, if transmitted
by facsimile transmission or other direct written electronic means, upon date of receipt of the transmission, and if transmitted by certified
or registered mail, on the date of receipt.
Section 1.06 Notice
to Holders of Debt Securities; Waiver.
Except as otherwise expressly
provided herein, where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given, and shall
be deemed given, to Holders if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at the address
of such Holder as it appears in the Debt Security Register, not later than the latest date, and not earlier than the earliest date, prescribed
for the giving of such notice.
In case by reason of the suspension
of regular mail service or by reason of any other cause it shall be impracticable to give such notice to Holders by mail, then such notification
as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. In any case
where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other Holders.
Any notice required by this
Indenture may be waived in writing by the Person entitled to receive such notice, either before or after the event otherwise to be specified
therein, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.
Section 1.07 Conflict
with Trust Indenture Act.
If any provision of this Indenture
limits, qualifies or conflicts with another provision hereof that is required or deemed to be included in this Indenture by, or is otherwise
governed by, any of the provisions of the Trust Indenture Act, such other provision shall control; and if any provision hereof otherwise
conflicts with the Trust Indenture Act, the Trust Indenture Act shall control.
Section 1.08 Effect
of Headings and Table of Contents.
The Article and Section headings
in this Indenture and the Table of Contents are for convenience only and shall not affect the construction hereof.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 1.09 Successors
and Assigns.
All covenants and agreements
in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not.
Section 1.10 Separability
Clause.
In case any provision in this
Indenture or the Debt Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.
Section 1.11 Benefits
of Indenture.
Nothing in this Indenture
or the Debt Securities, express or implied, shall give to any Person, other than the parties hereto, their successors hereunder, the Holders,
[and so long as the notice described in Section 15.14 hereof has not been given, the holders of Senior Indebtedness,]* any
benefit or any legal or equitable right, remedy or claim under this Indenture.
Section 1.12 Governing
Law.
This Indenture and the Debt
Securities shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of law
principles thereof, except to the extent that the law of any other jurisdiction shall be mandatorily applicable.
Section 1.13 Legal
Holidays.
In any case where any Interest
Payment Date, Redemption Date or Stated Maturity of any Debt Security shall not be a Business Day at any Place of Payment, then (notwithstanding
any other provision of this Indenture or of the Debt Securities other than a provision in Debt Securities of any series, or any Tranche
thereof, or in the indenture supplemental hereto, Board Resolution or Officer’s Certificate that establishes the terms of the Debt
Securities of such series or Tranche, which specifically states that such provision shall apply in lieu of this Section) payment of interest
or principal and premium, if any, need not be made at such Place of Payment on such date, but may be made on the next succeeding Business
Day at such Place of Payment with the same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, and, if such payment is made or duly provided for on such Business Day, no interest shall accrue on the amount so payable for
the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be, to such Business Day.
Article II
DEBT SECURITY FORMS
Section 2.01 Forms
Generally.
The definitive Debt Securities
of each series shall be in substantially the form or forms thereof established in the indenture supplemental hereto establishing such
series or in a Board Resolution establishing such series, or in an Officer’s Certificate pursuant to such supplemental indenture
or Board Resolution, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted
by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon
as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be determined by the officers
executing such Debt Securities, as evidenced by their execution of the Debt Securities. If the form or forms of Debt Securities of any
series are established in a Board Resolution or in an Officer’s Certificate pursuant to an indenture supplement hereto or to a Board
Resolution, such Board Resolution and Officer’s Certificate, if any, shall be delivered to the Trustee at or prior to the delivery
of the Company Order contemplated by Section 3.03 for the authentication and delivery of such Debt Securities.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Unless otherwise specified
as contemplated by Sections 3.01 or 12.01(g), the Debt Securities of each series shall be issuable in registered form
without coupons. The definitive Debt Securities shall be produced in such manner as shall be determined by the officers executing such
Debt Securities, as evidenced by their execution thereof.
Section 2.02 Form of
Trustee’s Certificate of Authentication.
The Trustee’s certificate
of authentication shall be in substantially the form set forth below:
This is one of the Debt Securities
of the series designated therein referred to in the within-mentioned Indenture.
Dated:
_____________________________,
as Trustee
By:___________________________
Authorized Representative
Section 2.03 Debt
Securities Issuable in the Form of a Global Security.
(a) If
the Company shall establish pursuant to Section 3.01 that the Debt Securities of a particular series are to be issued in whole
or in part in the form of one or more Global Securities, then the Company shall execute and the Trustee shall, in accordance with Section 3.03
and the Company Order delivered to the Trustee thereunder, authenticate and deliver such Global Security or Securities, which (i) shall
represent, and shall be denominated in an amount equal to the aggregate principal amount of the Outstanding Debt Securities of such series
to be represented by such Global Security or Securities, (ii) may provide that the aggregate amount of Outstanding Debt Securities
represented thereby may from time to time be increased or reduced to reflect exchanges, (iii) shall be registered in the name of
the Depositary for such Global Security or Securities or its nominee, (iv) shall be delivered by the Trustee to the Depositary or
pursuant to the Depositary’s instruction and (v) shall bear a legend in accordance with the requirements of the Depositary.
The Trustee shall enter into any agreement with the Depositary related to such Global Securities as the Company may direct in such Company
Order.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(b) Notwithstanding
any other provision of this Section or of Section 3.05, except as contemplated by the provisions of paragraph (c) below,
unless the terms of a Global Security expressly permit such Global Security to be exchanged in whole or in part for individual Debt Securities,
a Global Security may be transferred, in whole but not in part and in the manner provided in Section 3.05, only to a nominee
of the Depositary for such Global Security, or to the Depositary, or to a successor Depositary for such Global Security selected or approved
by the Company, or to a nominee of such successor Depositary.
(c) (1) If
at any time the Depositary for a Global Security notifies the Company that it is unwilling or unable to continue as the Depositary for
such Global Security or if at any time the Depositary for the Debt Securities for such series shall no longer be eligible or in good standing
under the Exchange Act, or other applicable statute or regulation, the Company shall appoint a successor Depositary with respect to such
Global Security. If a successor Depositary for such Global Security is not appointed by the Company within 90 days after the Company receives
such notice or becomes aware of such ineligibility, the Company will execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of Debt Securities of such series in the form of definitive certificates in exchange for such Global Security,
will authenticate and deliver Debt Securities of such series in the form of definitive certificates of like tenor and terms in an aggregate
principal amount equal to the principal amount of the Global Security in exchange for such Global Security. Such Debt Securities will
be issued to and registered in the name of such Person or Persons as are specified by the Depositary.
(2) To
the extent legally permitted and subject to the rules and regulations of the acting Depositary, the Company may at any time and in
its sole discretion determine that the Debt Securities of any series issued or issuable in the form of one or more Global Securities shall
no longer be represented by such Global Security or Securities. In any such event the Company will execute, and the Trustee, upon receipt
of a Company Request for the authentication and delivery of Debt Securities in the form of definitive certificates in exchange in whole
or in part for such Global Security, will authenticate and deliver without service charge to each Person specified by the Depositary Debt
Securities in the form of definitive certificates of like tenor and terms in an aggregate principal amount equal to the principal amount
of such Global Security representing such series, or the aggregate principal amount of such Global Securities representing such series,
in exchange for such Global Security or Securities.
(3) If
specified by the Company pursuant to Section 3.01 with respect to Debt Securities issued or issuable in the form of a Global
Security, the Depositary for such Global Security may surrender such Global Security in exchange in whole or in part for Debt Securities
in the form of definitive certificates of like tenor and terms on such terms as are acceptable to the Company and such Depositary. Thereupon
the Company shall execute, and the Trustee shall authenticate and deliver, without service charge, (A) to each Person specified by
such Depositary a new Debt Security or Securities of the same series of like tenor and terms and any authorized denomination as requested
by such Person in an aggregate principal amount equal to and in exchange for such Person’s beneficial interest in the Global Security
and (B) to such Depositary a new Global Security of like tenor and terms and in an authorized denomination equal to the difference,
if any, between the principal amount of the surrendered Global Security and the aggregate principal amount of Debt Securities delivered
to Holders thereof.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(4) In
any exchange provided for in any of the preceding three subparagraphs, the Company shall execute and the Trustee shall authenticate and
deliver Debt Securities in the form of definitive certificates in authorized denominations. Upon the exchange of the entire principal
amount of a Global Security for Debt Securities in the form of definitive certificates, such Global Security shall be canceled by the
Trustee. Except as provided in the immediately preceding subparagraph, Debt Securities issued in exchange for a Global Security pursuant
to this Section shall be registered in such names and in such authorized denominations as the Depositary for such Global Security,
acting pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. Provided that
the Company and the Trustee have so agreed, the Trustee shall deliver such Debt Securities to the Persons in whose names the Debt Securities
are so to be registered.
(5) Any
endorsement of a Global Security to reflect the principal amount thereof, or any increase or decrease in such principal amount, or changes
in the rights of Holders of Outstanding Debt Securities represented thereby shall be made in such manner and by such Person or Persons
as shall be specified in or pursuant to any applicable letter of representations or other arrangement entered into with, or procedures
of, the Depositary with respect to such Global Security or in the Company Order delivered or to be delivered pursuant to Section 3.03
with respect thereto. Subject to the provisions of Section 3.03, the Trustee shall deliver and redeliver any such Global Security
in the manner and upon instructions given by the Person or Persons specified in or pursuant to any applicable letter of representations
or other arrangement entered into with, or procedures of, the Depositary with respect to such Global Security or in any applicable Company
Order. If a Company Order pursuant to Section 3.03 is so delivered, any instructions by the Company with respect to such Global
Security contained therein shall be in writing but need not be accompanied by or contained in an Officer’s Certificate and need
not be accompanied by an Opinion of Counsel.
(6) The
Depositary or, if there be one, its nominee, shall be the Holder of a Global Security for all purposes under this Indenture; and beneficial
owners with respect to such Global Security shall hold their interests pursuant to applicable procedures of such Depositary. The Company,
the Trustee and the Debt Security Registrar shall be entitled to deal with such Depositary for all purposes of this Indenture relating
to such Global Security (including the payment of principal, premium, if any, and interest (including Additional Interest) and the giving
of instructions or directions by or to the beneficial owners of such Global Security as the sole Holder of such Global Security, and shall
have no obligations to the beneficial owners thereof (including any direct or indirect participants in such Depositary). None of the Company,
the Trustee, any Paying Agent or the Debt Security Registrar shall have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests of a Global Security in or pursuant to any applicable letter
of representations or other arrangement entered into with, or procedures of, the Depositary with respect to such Global Security or for
maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Article III
THE DEBT SECURITIES
Section 3.01 Amount
Unlimited; Issuable in Series.
The aggregate principal amount
of Debt Securities that may be authenticated and delivered under this Indenture is unlimited.
The Debt Securities may be
issued in one or more series. Subject to the last paragraph of this Section, prior to the authentication and delivery of Debt Securities
of any series there shall be established by specification in a supplemental indenture or in a Board Resolution, or in an Officer’s
Certificate pursuant to a supplemental indenture or a Board Resolution:
(a) the
title of the Debt Securities of such series (which shall distinguish the Debt Securities of such series from Debt Securities of all other
series);
(b) any
limit upon the aggregate principal amount of the Debt Securities of such series that may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Debt Securities
of the series pursuant to Sections 3.04, 3.05, 3.06, 4.06 or 12.06 and, except for any Debt Securities
that, pursuant to Section 3.03, are deemed never to have been authenticated and delivered hereunder);
(c) the
Person or Persons (without specific identification) to whom interest on Debt Securities of such series, or any Tranche thereof, shall
be payable on any Interest Payment Date, if other than the Persons in whose names such Debt Securities (or one or more Predecessor Debt
Securities) are registered at the close of business on the Regular Record Date for such interest;
(d) the
date or dates on which the principal of the Debt Securities of such series, or any Tranche thereof, is payable or any formulary or other
method or other means by which such date or dates shall be determined, by reference to an index or other fact or event ascertainable outside
of this Indenture or otherwise (without regard to any provisions for redemption, prepayment, acceleration, purchase or extension);
(e) the
rate or rates at which the Debt Securities of such series, or any Tranche thereof, shall bear interest, if any (including (i) the
rate or rates at which overdue principal shall bear interest, if different from the rate or rates at which such Debt Securities shall
bear interest prior to Maturity, (ii) and, if applicable, the rate or rates at which overdue premium shall bear interest, if any,
and (iii) the rate or rates and the extent to which Additional Interest, if any, shall be payable), the period or periods during
which such rate or rates shall be applicable, or any formulary or other method or other means by which such rate or rates, and any period
or periods, shall be determined, by reference to an index or other fact or event ascertainable outside of this Indenture or otherwise;
the date or dates from which such interest shall accrue; the Interest Payment Dates on which such interest shall be payable and the Regular
Record Date, if any, for the interest payable on such Debt Securities on any Interest Payment Date[; the right of the Company, if any,
to extend the interest payment periods and the duration of any such extension as contemplated by Section 3.12]*; and the basis
of computation of interest, if other than as provided in Section 3.10;
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(f) the
place or places at which or methods by which (i) the principal of and premium, if any, and interest (including Additional Interest),
if any, on Debt Securities of such series, or any Tranche thereof, shall be payable, (ii) registration of transfer of Debt Securities
of such series, or any Tranche thereof, may be effected, (iii) exchanges of Debt Securities of such series, or any Tranche thereof,
may be effected and (iv) notices and demands to or upon the Company in respect of the Debt Securities of such series, or any Tranche
thereof, and this Indenture may be served; the Debt Security Registrar for such series; and if such is the case, that the principal of
such Debt Securities shall be payable without presentment or surrender thereof;
(g) the
period or periods within which, or the date or dates on which, the price or prices at which and the terms and conditions upon which the
Debt Securities of such series, or any Tranche thereof, may be redeemed, in whole or in part, at the option of the Company and any restrictions
on such redemptions, including but not limited to a restriction on a partial redemption by the Company of the Debt Securities of any series,
or any Tranche thereof, resulting in delisting of such Debt Securities from any national exchange;
(h) the
obligation or obligations, if any, of the Company to redeem or purchase the Debt Securities of such series, or any Tranche thereof, pursuant
to any sinking fund or other mandatory redemption or tender provisions or at the option of a Holder thereof and the period or periods
within which or the date or dates on which, the price or prices at which and the terms and conditions upon which such Debt Securities
shall be redeemed or purchased, in whole or in part, pursuant to such obligation, and applicable exceptions to the requirements of Section 4.04
in the case of mandatory redemption or redemption at the option of the Holder;
(i) the
denominations in which Debt Securities of such series, or any Tranche thereof, shall be issuable if other than denominations of $1,000
and any integral multiple thereof;
(j) the
currency or currencies, including composite currencies, in which payment of the principal of and premium, if any, and interest (including
Additional Interest), if any, on the Debt Securities of such series, or any Tranche thereof, shall be payable (if other than in Dollars);
(k) if
the principal of or premium, if any, or interest (including Additional Interest), if any, on the Debt Securities of such series, or any
Tranche thereof, are to be payable, at the election of the Company or a Holder thereof, in a coin or currency other than that in which
the Debt Securities are stated to be payable, the period or periods within which and the terms and conditions upon which, such election
may be made;
(l) if
the principal of or premium, if any, or interest (including Additional Interest), if any, on the Debt Securities of such series, or any
Tranche thereof, are to be payable, or are to be payable at the election of the Company or a Holder thereof, in securities or other property,
the type and amount of such securities or other property, or the formulary or other method or other means by which such amount shall be
determined, and the period or periods within which, and the terms and conditions upon which, any such election may be made;
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(m) if
the amount payable in respect of principal of or premium, if any, or interest, if any, on the Debt Securities of such series, or any Tranche
thereof, may be determined with reference to an index or other fact or event ascertainable outside this Indenture, the manner in which
such amounts shall be determined to the extent not established pursuant to clause (e) of this paragraph;
(n) if
other than the principal amount thereof, the portion of the principal amount of Debt Securities of such series, or any Tranche thereof,
that shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 8.02;
(o) any
Events of Default, in addition to those specified in Section 8.01, with respect to the Debt Securities of such series, and
any covenants of the Company for the benefit of the Holders of the Debt Securities of such series, or any Tranche thereof, in addition
to those set forth in Article VI;
(p) the
terms, if any, pursuant to which the Debt Securities of such series, or any Tranche thereof, may be converted into or exchanged for shares
of beneficial interest or other securities of the Company or any other Person;
(q) the
obligations or instruments, if any, that shall be considered to be Eligible Obligations in respect of the Debt Securities of such series,
or any Tranche thereof, denominated in a currency other than Dollars or in a composite currency, and any additional or alternative provisions
for the reinstatement of the Company’s indebtedness in respect of such Debt Securities after the satisfaction and discharge thereof
as provided in Section 7.01;
(r) whether
the Debt Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities; the terms and conditions,
if any, upon which such Global Security or Securities may be exchanged in whole or in part for certificated Debt Securities of such series
and of like tenor of any authorized denomination and the circumstances under which such exchange may occur, if other than in the manner
provided for in Section 2.03; the Depositary for such Global Security or Securities; and the form of any legend or legends
to be borne by any such Global Security in addition to or in lieu of the legend referred to in Section 2.03;
(s) if
the Debt Securities of such series, or any Tranche thereof, are to be issuable in bearer form, any and all matters incidental thereto
that are not specifically addressed in a supplemental indenture as contemplated by Section 12.01(g);
(t) to
the extent not established pursuant to clause (r) of this paragraph, any limitations on the rights of the Holders of the Debt
Securities of such series, or any Tranche thereof, to transfer or exchange such Debt Securities or to obtain the registration of transfer
thereof; and if a service charge will be made for the registration of transfer or exchange of Debt Securities of such series, or any Tranche
thereof, the amount or terms thereof;
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(u) any
exceptions to Section 1.13, or variation in the definition of Business Day, with respect to the Debt Securities of such series,
or any Tranche thereof;
(v) any
collateral security, assurance or guarantee for such series of Debt Securities;
(w) any
credit enhancement applicable to the Debt Securities of such series; and
(x) any
other terms of the Debt Securities of such series, or any Tranche thereof, not inconsistent with the provisions of this Indenture.
[The Debt Securities of each
series, or any Tranche thereof, shall be subordinated in the right of payment to Senior Indebtedness as provided in Article XV.]*
With respect to Debt Securities
of a series subject to a Periodic Offering, the indenture supplemental hereto or the Board Resolution that establishes such series, or
the Officer’s Certificate pursuant to such supplemental indenture or Board Resolution, as the case may be, may provide general terms
or parameters for Debt Securities of such series and provide either that the specific terms of Debt Securities of such series, or any
Tranche thereof, shall be specified in a Company Order or that such terms shall be determined by the Company or its agents in accordance
with procedures specified in a Company Order as contemplated by clause (b) of the third paragraph of Section 3.03.
Section 3.02 Denominations.
Unless otherwise provided
as contemplated by Section 3.01 with respect to any series of Debt Securities, or any Tranche thereof, the Debt Securities
of each series shall be issuable in denominations of $1,000 and any integral multiple thereof.
Section 3.03 Execution,
Authentication, Delivery and Dating.
Unless otherwise provided
as contemplated by Section 3.01 with respect to any series of Debt Securities, or any Tranche thereof, the Debt Securities
shall be executed on behalf of the Company by an Authorized Officer and may have the corporate seal of the Company affixed thereto or
reproduced thereon attested by any other Authorized Officer. The signature of any or all of these officers on the Debt Securities may
be manual or facsimile.
Debt Securities bearing the
manual or facsimile signatures of individuals who were at the time of execution Authorized Officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such
Debt Securities or did not hold such offices at the date of such Debt Securities.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
The Trustee shall authenticate
and deliver Debt Securities of a series, for original issue, at one time or from time to time in accordance with the Company Order referred
to below, upon receipt by the Trustee of:
(a) the
instrument or instruments establishing the form or forms and terms of such series, as provided in Sections 2.01 and 3.01;
(b) a
Company Order requesting the authentication and delivery of such Debt Securities and, to the extent that the terms of such Debt Securities
shall not have been established in an indenture supplemental hereto or in a Board Resolution, or in an Officer’s Certificate pursuant
to a supplemental indenture or Board Resolution, all as contemplated by Sections 2.01 and 3.01, either (i) establishing
such terms or (ii) in the case of Debt Securities of a series subject to a Periodic Offering, specifying procedures, acceptable to
the Trustee, by which such terms are to be established (which procedures may provide, to the extent acceptable to the Trustee, for authentication
and delivery pursuant to oral or electronic instructions from the Company or any agent or agents thereof, which oral instructions are
to be promptly confirmed electronically or in writing), in either case in accordance with the instrument or instruments delivered pursuant
to clause (a) above;
(c) the
Debt Securities of such series, executed on behalf of the Company by an Authorized Officer;
(d) an
Opinion of Counsel to the effect that:
(i) the
form or forms of such Debt Securities have been duly authorized by the Company and have been established in conformity with the provisions
of this Indenture;
(ii) the
terms of such Debt Securities have been duly authorized by the Company and have been established in conformity with the provisions of
this Indenture; and
(iii) assuming
authentication and delivery by the Trustee and subject to any conditions specified in such Opinion of Counsel, such Debt Securities will
have been duly issued under this Indenture and will be legal, valid and binding obligations of the Company, enforceable in accordance
with their terms, subject, as to enforcement, to laws relating to or affecting generally the enforcement of creditors’ rights,
including, without limitation, bankruptcy and insolvency laws and to general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law);
provided,
however, that, with respect to Debt Securities of a series subject to a Periodic Offering, the Trustee shall be entitled to receive
such Opinion of Counsel only once at or prior to the time of the first authentication of such Debt Securities (provided that such
Opinion of Counsel addresses the authentication and delivery of all Debt Securities of such series) and that in lieu of the opinions described
in clauses (ii) and (iii) above Counsel may opine that:
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(x) when
the terms of such Debt Securities shall have been established pursuant to a Company Order or Orders or pursuant to such procedures (acceptable
to the Trustee) as may be specified from time to time by a Company Order or Orders, all as contemplated by and in accordance with the
instrument or instruments delivered pursuant to clause (a) above, such terms will have been duly authorized by the Company and
will have been established in conformity with the provisions of this Indenture; and
(y) such
Debt Securities, when authenticated and delivered by the Trustee in accordance with this Indenture and the Company Order or Orders or
specified procedures referred to in paragraph (x) above and issued and delivered by the Company in the manner and subject to
any conditions specified in such Opinion of Counsel, will have been duly issued under this Indenture and will constitute valid and legally
binding obligations of the Company, entitled to the benefits provided by the Indenture, and enforceable in accordance with their terms,
subject, as to enforcement, to laws relating to or affecting generally the enforcement of creditors’ rights, including, without
limitation, bankruptcy and insolvency laws and to general principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).
With respect to Debt Securities
of a series subject to a Periodic Offering, the Trustee may conclusively rely, as to the authorization by the Company of any of such Debt
Securities, the form and terms thereof and the legality, validity, binding effect and enforceability thereof, upon the Opinion of Counsel
and other documents delivered pursuant to Sections 2.01 and 3.01 and this Section, as applicable, at or prior to the
time of the first authentication of Debt Securities of such series unless and until such opinion or other documents have been superseded
or revoked or expire by their terms. In connection with the authentication and delivery of Debt Securities of a series subject to a Periodic
Offering, the Trustee shall be entitled to assume that the Company’s instructions to authenticate and deliver such Debt Securities
do not violate any rules, regulations or orders of any Governmental Authority having jurisdiction over the Company.
If the form or terms of the
Debt Securities of any series have been established by or pursuant to a Board Resolution or an Officer’s Certificate as permitted
by Sections 2.01 and 3.01, the Trustee shall not be required to authenticate such Debt Securities if the issuance of
such Debt Securities pursuant to this Indenture will materially or adversely affect the Trustee’s own rights, duties or immunities
under the Debt Securities and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.
Unless otherwise specified as contemplated by
Section 3.01 with respect to any series of Debt Securities, or any Tranche thereof, each Debt Security shall be dated the
date of its authentication.
Unless otherwise specified
as contemplated by Section 3.01 with respect to any series of Debt Securities, or any Tranche thereof, no Debt Security shall
be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Debt Security a
certificate of authentication substantially in the form provided for herein executed by the Trustee or its agent by manual signature,
and such certificate upon any Debt Security shall be conclusive evidence, and the only evidence, that such Debt Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the foregoing, if any Debt Security
shall have been authenticated and delivered hereunder to the Company, or any Person acting on its behalf, but shall never have been issued
and sold by the Company, and the Company shall deliver such Debt Security to the Debt Security Registrar for cancellation as provided
in Section 3.09 together with a written statement (which need not comply with Section 1.02 and need not be accompanied
by an Opinion of Counsel) stating that such Debt Security has never been issued and sold by the Company, for all purposes of this Indenture
such Debt Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits
hereof.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 3.04 Temporary
Debt Securities.
Pending the preparation of
definitive Debt Securities of any series, or any Tranche thereof, the Company may execute, and upon Company Order the Trustee shall authenticate
and deliver, temporary Debt Securities that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Debt Securities in lieu of which they are issued, with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such Debt Securities may determine, as evidenced by their execution
of such Debt Securities; provided, however, that temporary Debt Securities need not recite specific redemption, sinking
fund, conversion or exchange provisions.
Unless otherwise specified
as contemplated by Section 3.01 with respect to the Debt Securities of any series, or any Tranche thereof, after the preparation
of definitive Debt Securities of such series or Tranche, the temporary Debt Securities of such series or Tranche shall be exchangeable,
without charge to the Holder thereof, for definitive Debt Securities of such series or Tranche, upon surrender of such temporary Debt
Securities at the office or agency of the Company maintained pursuant to Section 6.02 in a Place of Payment for such Debt
Securities. Upon such surrender of temporary Debt Securities, the Company shall, except as aforesaid, execute and the Trustee shall authenticate
and deliver in exchange therefor definitive Debt Securities of the same series and Tranche, of authorized denominations and of like tenor
and aggregate principal amount.
Until exchanged in full as
hereinabove provided, temporary Debt Securities shall in all respects be entitled to the same benefits under this Indenture as definitive
Debt Securities of the same series and Tranche and of like tenor authenticated and delivered hereunder.
Section 3.05 Registration,
Registration of Transfer and Exchange.
The Company shall cause to
be kept in each office designated pursuant to Section 6.02, with respect to the Debt Securities of each series or any Tranche
thereof, a register (all registers kept in accordance with this Section being collectively referred to as the “Debt Security
Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration
of Debt Securities of such series or Tranche and the registration of transfer thereof. The Company shall designate one Person to maintain
the Debt Security Register for the Debt Securities of each series on a consolidated basis, and such Person is referred to herein, with
respect to such series, as the “Debt Security Registrar.” Anything herein to the contrary notwithstanding, the Company
may designate one or more of its offices as an office in which the Debt Security Register shall be maintained, and the Company may designate
itself the Debt Security Registrar with respect to one or more of such series. The Debt Security Register shall be open for inspection
by the Trustee and the Company at all reasonable times.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Except as otherwise specified
as contemplated by Section 3.01 with respect to the Debt Securities of any series, or any Tranche thereof, upon surrender
for registration of transfer of any Debt Security of such series or Tranche at the office or agency of the Company maintained pursuant
to Section 6.02 in a Place of Payment for such series or Tranche, the Company shall execute, and the Trustee shall authenticate
and deliver, in the name of the designated transferee or transferees, one or more new Debt Securities of the same series and Tranche,
of authorized denominations and of like tenor and aggregate principal amount.
Except as otherwise specified
as contemplated by Section 3.01 with respect to the Debt Securities of any series, or any Tranche thereof, any Debt Security
of such series or Tranche may be exchanged at the option of the Holder for one or more new Debt Securities of the same series and Tranche,
of authorized denominations and of like tenor and aggregate principal amount, upon surrender of the Debt Securities to be exchanged at
any such office or agency. Whenever any Debt Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Debt Securities that the Holder making the exchange is entitled to receive.
All Debt Securities delivered
upon any registration of transfer or exchange of Debt Securities shall be valid obligations of the Company, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Debt Securities surrendered upon such registration of transfer or exchange.
Every Debt Security presented
or surrendered for registration of transfer or for exchange shall (if so required by the Company, the Trustee or the Debt Security Registrar)
be duly endorsed or shall be accompanied by a written instrument of transfer in form satisfactory to the Company, the Trustee or the Debt
Security Registrar, as the case may be, duly executed by the Holder thereof or his attorney duly authorized in writing.
Unless otherwise specified
as contemplated by Section 3.01 with respect to Debt Securities of any series, or any Tranche thereof, no service charge shall
be made for any registration of transfer or exchange of Debt Securities, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Debt Securities,
other than exchanges pursuant to Sections 3.04, 4.06 or 12.06 not involving any transfer.
The Company shall not be required
to execute or to provide for the registration of transfer of or the exchange of (a) Debt Securities of any series, or any Tranche
thereof, during a period of 15 days immediately preceding the day the mailing of a notice of redemption of the Debt Securities of such
series or Tranche is to be made or (b) any Debt Security so selected for redemption in whole or in part, except the unredeemed portion
of any Debt Security being redeemed in part.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
None of the Company, the Trustee,
any Paying Agent or the Debt Security Registrar will have any responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.
Section 3.06 Mutilated,
Destroyed, Lost and Stolen Debt Securities.
If any mutilated Debt Security
is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Debt
Security of the same series, and of like tenor and principal amount and bearing a number not contemporaneously outstanding.
If there shall be delivered
to the Company and the Trustee (a) evidence to their satisfaction of the ownership of and the destruction, loss or theft of any Debt
Security and (b) such security or indemnity as may be reasonably required by them to save each of them and any agent of either of
them harmless, then, in the absence of notice to the Company or the Trustee that such Debt Security is held by a Person purporting to
be the owner of such Debt Security, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any such destroyed,
lost or stolen Debt Security, a new Debt Security of the same series and Tranche, and of like tenor and principal amount and bearing a
number not contemporaneously outstanding.
Notwithstanding the foregoing,
in case any such mutilated, destroyed, lost or stolen Debt Security has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Debt Security, pay such Debt Security.
Upon the issuance of any new
Debt Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other reasonable expenses (including the fees and expenses of the Trustee) connected therewith.
Every new Debt Security of
any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Debt Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or stolen Debt Security shall be at any time enforceable by
anyone other than the Holder of such new Debt Security, and any such new Debt Security shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Debt Securities of such series duly issued hereunder.
The provisions of this Section are
exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Debt Securities.
Section 3.07 Payment
of Interest and Additional Interest; Interest Rights Preserved.
Unless otherwise specified
as contemplated by Section 3.01 with respect to the Debt Securities of any series, or any Tranche thereof, interest and Additional
Interest, if any, on any Debt Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Debt Security (or one or more Predecessor Debt Securities) is registered at the close of business
on the Regular Record Date for such interest.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
[Subject to Section 3.12]*
any interest on any Debt Security of any series that is payable, but is not punctually paid or duly provided for, on any Interest Payment
Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on the related Regular
Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case,
as provided in clause (a) or (b) below:
(a) The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Debt Securities of such series (or their
respective Predecessor Debt Securities) are registered at the close of business on a date (herein called a “Special Record Date”)
for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing
of the amount of Defaulted Interest proposed to be paid on each Debt Security of such series and the date of the proposed payment, and
at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect
of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment,
such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest, which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall promptly cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor
to be mailed, first-class postage prepaid, to each Holder of Debt Securities of such series at the address of such Holder as it appears
in the Debt Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names
the Debt Securities of such series (or their respective Predecessor Debt Securities) are registered at the close of business on such Special
Record Date.
(b) The
Company may make payment of any Defaulted Interest on the Debt Securities of any series in any other lawful manner not inconsistent with
the requirements of any securities exchange on which such Debt Securities may be listed, and upon such notice as may be required by such
exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment
shall be deemed practicable by the Trustee.
Subject to the foregoing provisions
of this Section and Section 3.05, each Debt Security delivered under this Indenture upon registration of transfer of
or in exchange for or in lieu of any other Debt Security shall carry the rights to interest (including any Additional Interest) accrued
and unpaid, and to accrue, that were carried by such other Debt Security.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 3.08 Persons
Deemed Owners.
Prior to due presentment of
a Debt Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person
in whose name such Debt Security is registered as the absolute owner of such Debt Security for the purpose of receiving payment of principal
of and premium, if any, and (subject to Sections 3.05 and 3.07) interest, if any, on such Debt Security and for all
other purposes whatsoever, whether or not such Debt Security is overdue, and neither the Company, the Trustee nor any agent of the Company
or the Trustee shall be affected by notice to the contrary.
Section 3.09 Cancellation
by Debt Security Registrar.
All Debt Securities surrendered
for payment, redemption, registration of transfer or exchange shall, if surrendered to any Person other than the Debt Security Registrar,
be delivered to the Debt Security Registrar and, if not theretofore canceled, shall be promptly canceled by the Debt Security Registrar.
The Company may at any time deliver to the Debt Security Registrar for cancellation any Debt Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever or which the Company shall not have issued and sold, and all Debt
Securities so delivered shall be promptly canceled by the Debt Security Registrar. No Debt Securities shall be authenticated in lieu of
or in exchange for any Debt Securities canceled as provided in this Section, except as expressly permitted by this Indenture. All certificates
representing canceled Debt Securities held by the Debt Security Registrar shall be disposed of in accordance with the customary practices
of the Debt Security Registrar at the time in effect, and the Debt Security Registrar shall not be required to destroy any such certificates.
The Debt Security Registrar, if other than the Trustee, shall promptly deliver a certificate of disposition with respect to such disposed
certificates to the Trustee and the Company unless, by a Company Order, similarly delivered, the Company shall direct that canceled Debt
Securities be returned to it. The Debt Security Registrar shall promptly deliver evidence of any cancellation of a Debt Security in accordance
with this Section to the Trustee and the Company. If the Trustee is the entity acting as Debt Security Registrar, it shall promptly
deliver to the Company a certificate of disposition with respect to any certificates disposed of and/or evidence of any cancellation of
a Debt Security, in each case in accordance with this Section, if so requested by a Company Order.
Section 3.10 Computation
of Interest.
Except as otherwise specified
as contemplated by Section 3.01 for Debt Securities of any series, or any Tranche thereof, interest on the Debt Securities
of each series shall be computed on the basis of a 360-day year consisting of twelve 30-day months and on the basis of the actual number
of days elapsed within any month in relation to the deemed 30 days of such month.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 3.11 Payment
to be in Proper Currency.
In the case of the Debt Securities
of any series, or any Tranche thereof, denominated in any currency other than Dollars or in a composite currency (the “Required
Currency”), except as otherwise specified with respect to such Debt Securities as contemplated by Section 3.01,
the obligation of the Company to make any payment of the principal thereof, or the premium or interest thereon, shall not be discharged
or satisfied by any tender by the Company, or recovery by the Trustee, in any currency other than the Required Currency, except to the
extent that such tender or recovery shall result in the Trustee timely holding the full amount of the Required Currency then due and payable.
If any such tender or recovery is in a currency other than the Required Currency, the Trustee may take such actions as it considers appropriate
to exchange such currency for the Required Currency. The costs and risks of any such exchange, including without limitation the risks
of delay and exchange rate fluctuation, shall be borne by the Company, the Company shall remain fully liable for any shortfall or delinquency
in the full amount of Required Currency then due and payable, and in no circumstances shall the Trustee be liable therefor except in the
case of its negligence or willful misconduct.
Section 3.12 [Extension
of Interest Payment]*.
[The Company shall have the
right at any time, so long as the Company is not in default in the payment of interest on the Debt Securities of any series hereunder,
to extend interest payment periods on all Debt Securities of one or more series, or Tranches thereof, if so specified as contemplated
by Section 3.01 with respect to such Debt Securities and upon such terms as may be specified as contemplated by Section 3.01
with respect to such Debt Securities.]*
Article IV
REDEMPTION OF DEBT SECURITIES
Section 4.01 Applicability
of Article.
Debt Securities of any series,
or any Tranche thereof, that are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except
as otherwise specified as contemplated by Section 3.01 for Debt Securities of such series or Tranche) in accordance with this
Article.
Section 4.02 Election
to Redeem; Notice to Trustee.
The election of the Company
to redeem any Debt Securities shall be evidenced by a Board Resolution and/or an Officer’s Certificate. The Company shall, at least
45 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee
in writing of such Redemption Date and of the principal amount of such Debt Securities to be redeemed. In the case of any redemption of
Debt Securities (a) prior to the expiration of any restriction on such redemption provided in the terms of such Debt Securities or
elsewhere in this Indenture or (b) pursuant to an election of the Company that is subject to a condition specified in the terms of
such Debt Securities, the Company shall furnish the Trustee with an Officer’s Certificate evidencing compliance with such restriction
or condition.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 4.03 Selection
of Debt Securities to be Redeemed.
If less than all the Debt
Securities of any series, or any Tranche thereof, are to be redeemed, the particular Debt Securities to be redeemed shall be selected
by the Trustee from the Outstanding Debt Securities of such series or Tranche not previously called for redemption, by such method as
shall be provided for any particular series, or, in the absence of any such provision, by such method of random selection as the Trustee
shall deem fair and appropriate and which may, in any case, provide for the selection for redemption of portions (equal to the minimum
authorized denomination for Debt Securities of such series or Tranche or any integral multiple thereof) of the principal amount of Debt
Securities of such series or Tranche of a denomination larger than the minimum authorized denomination for Debt Securities of such series
or Tranche; provided, however, that if, as indicated in an Officer’s Certificate, the Company shall have offered to
purchase all or any principal amount of the Debt Securities then Outstanding of any series, or any Tranche thereof, and less than all
of such Debt Securities as to which such offer was made shall have been tendered to the Company for such purchase, the Trustee, if so
directed by Company Order, shall select for redemption all or any principal amount of such Debt Securities that have not been so tendered.
If the Debt Securities are
then held in the form of a Global Security, the Debt Securities to be redeemed shall be selected in accordance with the customary procedures
of the Depositary.
The Trustee shall promptly
notify the Company and the Debt Security Registrar in writing of the Debt Securities selected for redemption and, in the case of any Debt
Securities selected to be redeemed in part, the principal amount thereof to be redeemed.
For all purposes of this Indenture,
unless the context otherwise requires, all provisions relating to the redemption of Debt Securities shall relate, in the case of any Debt
Securities redeemed or to be redeemed only in part, to the portion of the principal amount of such Debt Securities that has been or is
to be redeemed.
Section 4.04 Notice
of Redemption.
Notice of redemption shall
be given in the manner provided in Section 1.06 to the Holders of the Debt Securities to be redeemed not less than 30 nor
more than 60 days prior to the Redemption Date.
All notices of redemption
shall state:
(a) the
Redemption Date,
(b) the
Redemption Price,
(c) if
less than all the Debt Securities of any series or Tranche are to be redeemed, the identification of the particular Debt Securities to
be redeemed and the portion of the principal amount of any Debt Security to be redeemed in part,
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(d) that
on the Redemption Date, the Redemption Price, together with accrued interest (including Additional Interest), if any, to the Redemption
Date, will become due and payable upon each such Debt Security to be redeemed and, if applicable and provided that the Redemption
Price is received by the Paying Agent or Agents on or prior to the Redemption Date, that interest (including any Additional Interest)
thereon will cease to accrue on and after said date,
(e) the
place or places where such Debt Securities are to be surrendered for payment of the Redemption Price and accrued interest, if any, unless
it shall have been specified as contemplated by Section 3.01 with respect to such Debt Securities that such surrender shall
not be required,
(f) that
the redemption is for a sinking or other fund, if such is the case, and
(g) such
other matters as the Company shall deem desirable or appropriate (including CUSIP numbers with respect to such Debt Securities, if the
Company shall so elect, in which event such notice of redemption may contain a disclaimer as to the correctness of such numbers either
as printed on the Debt Securities or on such notice of redemption).
Unless otherwise specified with respect to any
Debt Securities in accordance with Section 3.01, with respect to any notice of redemption of Debt Securities at the election
of the Company, unless, upon the giving of such notice, such Debt Securities shall be deemed to have been paid in accordance with Section 7.01,
such notice may state that such redemption shall be conditional upon the receipt by the Paying Agent or Agents for such Debt Securities,
on or prior to the date fixed for such redemption, of money sufficient to pay the principal of and premium, if any, and interest (including
Additional Interest), if any, on such Debt Securities and that if such money shall not have been so received such notice shall be of no
force or effect and the Company shall not be required to redeem such Debt Securities. In the event that such notice of redemption contains
such a condition and such money is not so received, the redemption shall not be made and within a reasonable time thereafter notice shall
be given, in the manner in which the notice of redemption was given, that such money was not so received and such redemption was not required
to be made, and the Paying Agent or Agents for the Debt Securities otherwise to have been redeemed shall promptly return to the Holders
thereof any of such Debt Securities that had been surrendered for payment upon such redemption.
Notice of redemption of Debt
Securities to be redeemed at the election of the Company, and any notice of non-satisfaction of a condition for redemption as aforesaid,
shall be given by the Company or, at the Company’s request, by the Debt Security Registrar in the name and at the expense of the
Company. Notice of mandatory redemption of Debt Securities shall be given by the Debt Security Registrar in the name and at the expense
of the Company.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 4.05 Debt
Securities Payable on Redemption Date.
Notice of redemption having
been given as aforesaid, and the conditions, if any, set forth in such notice having been satisfied, the Debt Securities or portions thereof
so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after
such date (unless, in the case of an unconditional notice of redemption, the Company shall default in the payment of the Redemption Price
and accrued interest (including Additional Interest), if any) such Debt Securities or portions thereof, if interest-bearing, shall cease
to bear interest. Upon surrender of any such Debt Security for redemption in accordance with such notice, such Debt Security or portion
thereof shall be paid by the Company at the Redemption Price, together with accrued interest (including Additional Interest), if any,
to the Redemption Date; provided, however, that no such surrender shall be a condition to such payment if so specified as
contemplated by Section 3.01 with respect to such Debt Security; and provided, further, that except as otherwise
specified as contemplated by Section 3.01 with respect to such Debt Security, any installment of interest on any Debt Security
the Stated Maturity of which installment is on or prior to the Redemption Date shall be payable to the Holder of such Debt Security, or
one or more Predecessor Debt Securities, registered as such at the close of business on the related Regular Record Date according to the
terms of such Debt Security and subject to the provisions of Section 3.07.
Section 4.06 Debt
Securities Redeemed in Part.
Upon the surrender of any
Debt Security that is to be redeemed only in part at a Place of Payment therefor (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or his attorney duly authorized in writing), the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of
such Debt Security, without service charge, a new Debt Security or Debt Securities of the same series and Tranche, of any authorized denomination
requested by such Holder and of like tenor and in aggregate principal amount equal to and in exchange for the unredeemed portion of the
principal of the Debt Security so surrendered.
Article V
SINKING FUNDS
Section 5.01 Applicability
of Article.
The provisions of this Article shall
be applicable to any sinking fund for the retirement of the Debt Securities of any series, or any Tranche thereof, except as otherwise
specified as contemplated by Section 3.01 for Debt Securities of such series or Tranche.
The minimum amount of any
sinking fund payment provided for by the terms of Debt Securities of any series, or any Tranche thereof, is herein referred to as a “mandatory
sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of Debt Securities of any series,
or any Tranche thereof, is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Debt
Securities of any series, or any Tranche thereof, the cash amount of any sinking fund payment may be subject to reduction as provided
in Section 5.02. Each sinking fund payment shall be applied to the redemption of Debt Securities of the series or Tranche
in respect of which it was made as provided for by the terms of such Debt Securities.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 5.02 Satisfaction
of Sinking Fund Payments with Debt Securities.
The Company (a) may deliver
to the Trustee Outstanding Debt Securities (other than any previously called for redemption) of a series or Tranche in respect of which
a mandatory sinking fund payment is to be made and (b) may apply as a credit Debt Securities of such series or Tranche that have
been purchased by the Company or redeemed either at the election of the Company pursuant to the terms of such Debt Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such Debt Securities, in each case in satisfaction
of all or any part of such mandatory sinking fund payment; provided, however, that no Debt Securities shall be applied in
satisfaction of a mandatory sinking fund payment if such Debt Securities shall have been previously so applied. Debt Securities so applied
shall be received and credited for such purpose by the Trustee at the Redemption Price specified in such Debt Securities for redemption
through operation of the sinking fund and the amount of such mandatory sinking fund payment shall be reduced accordingly.
Section 5.03 Redemption
of Debt Securities for Sinking Fund.
Not less than 45 days prior
to each sinking fund payment date for the Debt Securities of any series, or any Tranche thereof, the Company shall deliver to the Trustee
an Officer’s Certificate specifying:
(a) the
amount of the next succeeding mandatory sinking fund payment for such series or Tranche;
(b) the
amount, if any, of the optional sinking fund payment to be made together with such mandatory sinking fund payment;
(c) the
aggregate sinking fund payment;
(d) the
portion, if any, of such aggregate sinking fund payment that is to be satisfied by the payment of cash; and
(e) the
portion, if any, of such aggregate sinking fund payment that is to be satisfied by delivering and crediting Debt Securities of such series
or Tranche pursuant to Section 5.02 and stating the basis for such credit and that such Debt Securities have not previously
been so credited, and, if it has not already done so, the Company shall also deliver to the Trustee any Debt Securities to be so delivered.
If the Company shall not have
delivered such Officer’s Certificate and, to the extent applicable, all such Debt Securities, on or prior to the 45th day prior
to such sinking fund payment date, the sinking fund payment for such series or Tranche in respect of such sinking fund payment date shall
be made entirely in cash in the amount of the mandatory sinking fund payment. Not less than 30 days before each such sinking fund payment
date the Trustee shall select the Debt Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 4.03
and the Debt Security Registrar shall cause notice of the redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 4.04. Such notice having been duly given, the redemption of such Debt Securities shall be
made upon the terms and in the manner stated in Sections 4.05 and 4.06.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Article VI
COVENANTS
Section 6.01 Payment
of Principal, Premium and Interest.
The Company shall pay the
principal of and premium, if any, and interest, if any, on the Debt Securities of each series in accordance with the terms of such Debt
Securities and this Indenture.
Section 6.02 Maintenance
of Office or Agency.
The Company shall maintain
in each Place of Payment for the Debt Securities of each series, or any Tranche thereof, an office or agency where payment of such Debt
Securities shall be made, where the registration of transfer or exchange of such Debt Securities may be effected and where notices and
demands to or upon the Company in respect of such Debt Securities and this Indenture may be served. The Company shall give prompt written
notice to the Trustee of the location, and any change in the location, of each such office or agency and prompt notice to the Holders
of any such change in the manner specified in Section 1.06. If at any time the Company shall fail to maintain any such required
office or agency in respect of Debt Securities of any series, or any Tranche thereof, or shall fail to furnish the Trustee with the address
thereof, payment of such Debt Securities shall be made, registration of transfer or exchange thereof may be effected and notices and demands
in respect thereof may be served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent
for all such purposes in any such event.
The Company may also from
time to time designate one or more other offices or agencies with respect to the Debt Securities of one or more series, or any Tranche
thereof, for any or all of the foregoing purposes and may from time to time rescind such designations; provided, however,
that, unless otherwise specified as contemplated by Section 3.01 with respect to the Debt Securities of such series or Tranche
no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency for such purposes
in each Place of Payment for such Debt Securities in accordance with the requirements set forth above. The Company shall give prompt written
notice to the Trustee, and prompt notice to the Holders in the manner specified in Section 1.06, of any such designation or
rescission and of any change in the location of any such other office or agency.
Anything herein to the contrary
notwithstanding, any office or agency required by this Section may be maintained at an office of the Company, in which event the
Company shall perform all functions to be performed at such office or agency.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 6.03 Money
for Debt Securities Payments to be Held in Trust.
If the Company shall at any
time act as its own Paying Agent with respect to the Debt Securities of any series, or any Tranche thereof, it shall, on or before each
due date of the principal of and premium, if any, and interest (including Additional Interest), if any, on any of such Debt Securities,
segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal and premium or interest
(including Additional Interest) so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided.
The Company shall promptly notify the Trustee of any failure by the Company (or any other obligor on such Debt Securities) to make any
payment of principal of or premium, if any, or interest (including Additional Interest), if any, on such Debt Securities.
Whenever the Company shall
have one or more Paying Agents for the Debt Securities of any series, or any Tranche thereof, it shall, on or before each due date of
the principal of and premium, if any, and interest (including Additional Interest), if any, on such Debt Securities, deposit with such
Paying Agents sums sufficient (without duplication) to pay the principal and premium or interest (including Additional Interest) so becoming
due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest (including Additional
Interest), and (unless such Paying Agent is the Trustee) the Company shall promptly notify the Trustee of any failure by it so to act.
The Company shall cause each
Paying Agent for the Debt Securities of any series, or any Tranche thereof, other than the Company or the Trustee, to execute and deliver
to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that
such Paying Agent shall:
(a) hold
all sums held by it for the payment of the principal of and premium, if any, or interest (including Additional Interest), if any, on such
Debt Securities in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed
of as herein provided;
(b) give
the Trustee notice of any failure by the Company (or any other obligor upon such Debt Securities) to make any payment of principal of
or premium, if any, or interest, (including Additional Interest) if any, on such Debt Securities; and
(c) at
any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such Paying Agent and furnish to the Trustee such information as it possesses regarding the names and addresses of the
Persons entitled to such sums.
The Company may at any time
pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such
sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent and, if
so stated in a Company Order delivered to the Trustee, in accordance with the provisions of Article VII; and, upon such payment
by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of and premium, if any, or interest
(including Additional Interest), if any, on any Debt Security and remaining unclaimed for two years after such principal and premium,
if any, or interest (including Additional Interest) has become due and payable shall be paid to the Company on Company Request, or, if
then held by the Company, shall be discharged from such trust; and, upon such payment or discharge, the Holder of such Debt Security shall,
as an unsecured general creditor and not as a Holder of an Outstanding Debt Security, look only to the Company for payment of the amount
so due and payable and remaining unpaid, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such payment to the Company, may at the expense of the Company cause to be mailed, on one occasion only,
notice to such Holder that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days
from the date of such mailing, any unclaimed balance of such money then remaining will be paid to the Company.
Section 6.04 Corporate
Existence.
Subject to the rights of the
Company under Article XI, the Company shall do or cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence.
Section 6.05 Maintenance
of Properties.
The Company shall cause (or,
with respect to property owned in common with others, make reasonable effort to cause) all its properties used or useful in the conduct
of its business to be maintained and kept in good condition, repair and working order and shall cause (or, with respect to property owned
in common with others, make reasonable effort to cause) to be made all necessary repairs, renewals, replacements, betterments and improvements
thereof, all as, in the judgment of the Company, may be necessary so that the business carried on in connection therewith may be properly
conducted; provided, however, that nothing in this Section shall prevent the Company from discontinuing, or causing
the discontinuance of, the operation and maintenance of any of its properties if such discontinuance is, in the judgment of the Company,
desirable in the conduct of its business.
Section 6.06 Annual
Officer’s Certificate as to Compliance.
Not later than in each year,
commencing , the Company shall deliver to the Trustee an Officer’s Certificate, which need not comply with Section 1.02,
executed by the principal executive officer, the principal financial officer or the principal accounting officer of the Company, stating
whether, to such officer’s knowledge, the Company is in compliance with all conditions and covenants under this Indenture, such
compliance to be determined without regard to any period of grace or requirement of notice under this Indenture, and making any other
statements as may be required by the provisions of Section 314(a)(4) of the Trust Indenture Act.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 6.07 Waiver
of Certain Covenants.
The Company may omit in any
particular instance to comply with any term, provision or condition set forth in (a) Section 6.02 or any additional covenant
or restriction specified with respect to the Debt Securities of any series, or any Tranche thereof, as contemplated by Section 3.01
if before the time for such compliance the Holders of at least a majority in aggregate principal amount of the Outstanding Debt Securities
of all series and Tranches with respect to which compliance with Section 6.02 or such additional covenant or restriction is
to be omitted, considered as one class, shall, by Act of such Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition and (b) Sections 6.04, 6.05, 6.06 or Article XI
if before the time for such compliance the Holders of at least a majority in principal amount of Debt Securities Outstanding under this
Indenture shall, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such term, provision
or condition; but, in the case of (a) or (b), no such waiver shall extend to or affect such term, provision or condition except
to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the
Trustee in respect of any such term, provision or condition shall remain in full force and effect.
Article VII
SATISFACTION AND DISCHARGE
Section 7.01 Satisfaction
and Discharge of Debt Securities.
Any Debt Security or Debt
Securities, or any portion of the principal amount thereof, shall be deemed to have been paid for all purposes of this Indenture, and
the entire indebtedness of the Company in respect thereof shall be deemed to have been satisfied and discharged, if there shall have been
irrevocably deposited with the Trustee or any Paying Agent (other than the Company), in trust:
(a) money
in an amount that shall be sufficient, or
(b) in
the case of a deposit made prior to the Maturity of such Debt Securities or portions thereof, Eligible Obligations, which shall not contain
provisions permitting the redemption or other prepayment thereof at the option of the issuer thereof, the principal of and the interest
on that when due, without any regard to reinvestment thereof, will provide moneys which, together with the money, if any, deposited with
or held by the Trustee or such Paying Agent, shall be sufficient, or
(c) a
combination of (a) or (b) that shall be sufficient,
to pay when due the principal of and premium,
if any, and interest (including Additional Interest), if any, due and to become due on such Debt Securities or portions thereof on or
prior to Maturity; provided, however, that in the case of the provision for payment or redemption of less than all the Debt
Securities of any series or Tranche, such Debt Securities or portions thereof shall have been selected by the Trustee as provided herein
and, in the case of a redemption, the notice requisite to the validity of such redemption shall have been given or irrevocable authority
shall have been given by the Company to the Trustee to give such notice, under arrangements satisfactory to the Trustee; and provided,
further, that the Company shall have delivered to the Trustee and such Paying Agent:
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(x) if
such deposit shall have been made prior to the Maturity of such Debt Securities, a Company Order stating that the money and Eligible Obligations
deposited in accordance with this Section shall be held in trust, as provided in Section 7.03;
(y) if
Eligible Obligations shall have been deposited, an Opinion of Counsel that the obligations so deposited constitute Eligible Obligations
and do not contain provisions permitting the redemption or other prepayment at the option of the issuer thereof, and an opinion of an
independent public accountant of nationally recognized standing, selected by the Company, to the effect that the requirements set forth
in clause (b) above have been satisfied; and
(z) if
such deposit shall have been made prior to the Maturity of such Debt Securities, an Officer’s Certificate stating the Company’s
intention that, upon delivery of such Officer’s Certificate, its indebtedness in respect of such Debt Securities or portions thereof
will have been satisfied and discharged as contemplated in this Section.
If the Company shall make
any deposit of money and/or Eligible Obligations with respect to any Debt Securities, or any portion of the principal amount thereof,
as contemplated by this section, the Company shall not deliver an Officer’s Certificate described in clause (z) above
unless the Company shall also deliver to the Trustee, together with such Officer’s Certificate, an Opinion of Counsel to the effect
that, as a result of a change in law occurring after the date of this Indenture, the Holders of such Debt Securities, or portions thereof,
will not recognize income, gain or loss for United States federal income tax purposes as a result of the satisfaction and discharge of
the Company’s indebtedness in respect thereof and will be subject to United States federal income tax on the same amounts, at the
same times and in the same manner as if such satisfaction and discharge had not been effected.
Upon the deposit of money
or Eligible Obligations, or both, in accordance with this Section, together with the documents required by clauses (x), (y) and
(z) above, the Trustee shall, upon receipt of a Company Request, acknowledge in writing that the Debt Security or Debt Securities
or portions thereof with respect to which such deposit was made are deemed to have been paid for all purposes of this Indenture and that
the entire indebtedness of the Company in respect thereof has been satisfied and discharged as contemplated in this Section. In the event
that all of the conditions set forth in the first paragraph of this Section shall have been satisfied in respect of any Debt Securities
or portions thereof except that, for any reason, the Officer’s Certificate specified in clause (z) shall not have been
delivered, such Debt Securities or portions thereof shall nevertheless be deemed to have been paid for all purposes of this Indenture,
and the Holders of such Debt Securities or portions thereof shall nevertheless be no longer entitled to the benefits of this Indenture
or of any of the covenants of the Company under Article VI (except the covenants contained in Sections 6.02 and
6.03) or any other covenants made in respect of such Debt Securities or portions thereof as contemplated by Section 3.01,
but the indebtedness of the Company in respect of such Debt Securities or portions thereof shall not be deemed to have been satisfied
and discharged prior to Maturity for any other purpose, and the Holders of such Debt Securities or portions thereof shall continue to
be entitled to look to the Company for payment of the indebtedness represented thereby; and, upon receipt of a Company Request, the Trustee
shall acknowledge in writing that such Debt Securities or portions thereof are deemed to have been paid for all purposes of this Indenture.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
If payment at Stated Maturity
of less than all of the Debt Securities of any series, or any Tranche thereof, is to be provided for in the manner and with the effect
provided in this Section, the Trustee shall select such Debt Securities, or portions of principal amount thereof, in the manner specified
by Section 4.03 for selection for redemption of less than all the Debt Securities of a series or Tranche.
In the event that Debt Securities
that shall be deemed to have been paid for purposes of this Indenture, and, if such is the case, in respect of which the Company’s
indebtedness shall have been satisfied and discharged, all as provided in this Section, do not mature and are not to be redeemed within
the 60 day period commencing with the date of the deposit of moneys or Eligible Obligations, as aforesaid, the Company shall, as promptly
as practicable, give a notice, in the same manner as a notice of redemption with respect to such Debt Securities, to the Holders of such
Debt Securities to the effect that such deposit has been made and the effect thereof.
Notwithstanding that any Debt
Securities shall be deemed to have been paid for purposes of this Indenture, as aforesaid, the obligations of the Company and the Trustee
in respect of such Debt Securities under Sections 3.04, 3.05, 3.06, 4.04, 5.03 (as to notice of
redemption), Sections 6.02, 6.03, 9.07, 9.14 and 9.15 and this Article shall survive.
The Company shall pay, and
shall indemnify the Trustee or any Paying Agent with which Eligible Obligations shall have been deposited as provided in this Section against
any tax, fee or other charge imposed on or assessed against such Eligible Obligations or the principal or interest received in respect
of such Eligible Obligations, including, but not limited to, any such tax payable by any entity deemed, for tax purposes, to have been
created as a result of such deposit.
Anything herein to the contrary
notwithstanding, (a) if, at any time after a Debt Security would be deemed to have been paid for purposes of this Indenture, and,
if such is the case, the Company’s indebtedness in respect thereof would be deemed to have been satisfied or discharged, pursuant
to this Section (without regard to the provisions of this paragraph), the Trustee or any Paying Agent, as the case may be, shall
be required to return the money or Eligible Obligations, or combination thereof, deposited with it as aforesaid to the Company or its
representative under any applicable federal or state bankruptcy, insolvency or other similar law, such Debt Security shall thereupon be
deemed retroactively not to have been paid and any satisfaction and discharge of the Company’s indebtedness in respect thereof shall
retroactively be deemed not to have been effected, and such Debt Security shall be deemed to remain Outstanding and (b) any satisfaction
and discharge of the Company’s indebtedness in respect of any Debt Security shall be subject to the provisions of the last paragraph
of Section 6.03.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 7.02 Satisfaction
and Discharge of Indenture.
This Indenture shall upon
Company Request cease to be of further effect (except as hereinafter expressly provided), and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when
(a) no
Debt Securities remain Outstanding hereunder; and
(b) the
Company has paid or caused to be paid all other sums payable hereunder by the Company;
provided,
however, that if, in accordance with the last paragraph of Section 7.01, any Debt Security, previously deemed to have
been paid for purposes of this Indenture, shall be deemed retroactively not to have been so paid, this Indenture shall thereupon be deemed
retroactively not to have been satisfied and discharged, as aforesaid, and to remain in full force and effect, and the Company shall execute
and deliver such instruments as the Trustee shall reasonably request to evidence and acknowledge the same.
Notwithstanding the satisfaction
and discharge of this Indenture as aforesaid, the obligations of the Company and the Trustee under Sections 3.04, 3.05,
3.06, 4.04, 5.03 (as to notice of redemption), Sections 6.02, 6.03, 9.07, 9.14 and
9.15 and this Article shall survive.
Upon satisfaction and discharge
of this Indenture as provided in this Section, the Trustee shall assign, transfer and turn over to the Company, subject to the lien provided
by Section 9.07, any and all money, securities and other property then held by the Trustee for the benefit of the Holders
of the Debt Securities other than money and Eligible Obligations held by the Trustee pursuant to Section 7.03.
Section 7.03 Application
of Trust Money.
Neither the Eligible Obligations
nor the money deposited pursuant to Section 7.01, nor the principal or interest payments on any such Eligible Obligations,
shall be withdrawn or used for any purpose other than, and shall be held in trust for, the payment of the principal of, and premium, if
any, and interest (including Additional Interest), if any, on, the Debt Securities or portions of principal amount thereof in respect
of which such deposit was made, all subject, however, to the provisions of Section 6.03; provided, however,
that, so long as there shall not have occurred and be continuing an Event of Default, or an event that, with the giving of notice or the
passage of time, would become an Event of Default, any cash received from such principal or interest payments on such Eligible Obligations,
if not then needed for such purpose, shall, to the extent practicable, be invested in Eligible Obligations of the type described Section 7.01(b) maturing
at such times and in such amounts as shall be sufficient to pay when due the principal of and premium, if any, and interest (including
Additional Interest), if any, due and to become due on such Debt Securities or portions thereof on and prior to the Maturity thereof,
and interest earned from such reinvestment shall be paid over to the Company as received, free and clear of any trust, lien or pledge
under this Indenture except the lien provided by Section 9.07; and provided, further, that, so long as there
shall not have occurred and be continuing an Event of Default, or an event that, with the giving of notice or the passage of time, would
become an Event of Default, any moneys held in accordance with this Section on the Maturity of all such Debt Securities in excess
of the amount required to pay the principal of and premium, if any, and interest (including Additional Interest), if any, then due on
such Debt Securities shall be paid over to the Company free and clear of any trust, lien or pledge under this Indenture except the lien
provided by Section 9.07; and provided, further, that if an Event of Default, or an event that, with the giving
of notice or the passage of time, would become an Event of Default, shall have occurred and be continuing, moneys to be paid over to the
Company pursuant to this Section shall be held until such Event of Default, or event that, with the giving of notice or the passage
of time, would become an Event of Default, shall have been waived or cured.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Article VIII
EVENTS OF DEFAULT; REMEDIES
Section 8.01 Events
of Default.
“Event of Default,”
wherever used herein with respect to Debt Securities of any series, means any one of the following events:
(a) failure
to pay interest (including Additional Interest), if any, on any Debt Security of such series within 30 days after the same becomes due
and payable [(whether or not payment is prohibited by the provisions of Article XV hereof);]* [provided, however,
that a valid extension of the interest payment period by the Company as contemplated in Section 3.12 of this Indenture shall
not constitute a failure to pay interest for this purpose] *; or
(b) failure
to pay the principal of or premium, if any, on any Debt Security of such series when due and payable under this Indenture [(whether or
not payment is prohibited by the provisions of Article XV hereof)] *; or
(c) failure
to make any sinking fund payment with respect to such series when due; or
(d) failure
to perform or breach of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty a default in the
performance of which or breach of which is elsewhere in this Section specifically dealt with or which has expressly been included
in this Indenture solely for the benefit of one or more series of Debt Securities other than such series) for a period of 60 days after
there has been given, by registered or certified mail, to the Company by the Trustee, or to the Company and the Trustee by the Holders
of at least 33% in principal amount of the Outstanding Debt Securities of such series, a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder, unless the Trustee,
or the Trustee and the Holders of a principal amount of Debt Securities of such series not less than the principal amount of Debt Securities
the Holders of which gave such notice, as the case may be, shall agree in writing to an extension of such period prior to its expiration;
provided, however, that the Trustee, or the Trustee and the Holders of such principal amount of Debt Securities of such
series, as the case may be, shall be deemed to have agreed to an extension of such period for a maximum of one hundred twenty (120) days
if corrective action is initiated by the Company within such period and is being diligently pursued; or
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(e) the
entry by a court having jurisdiction in the premises of (i) a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other similar law or (ii) a decree
or order adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition by one or more Persons other than the
Company seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable federal or
state law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official for the Company
or for any substantial part of its property, or ordering the winding up or liquidation of its affairs, and any such decree or order for
relief or any such other decree or order shall have remained unstayed and in effect for a period of 90 consecutive days; or
(f) the
commencement by the Company of a voluntary case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization
or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of
a decree or order for relief in respect of the Company in a case or proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing
by it of a petition or answer or consent seeking reorganization or relief under any applicable federal or state law, or the consent by
it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator or similar official of the Company or of any substantial part of its property, or the making by it of an assignment for the
benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the authorization
of such action by the Board of Directors; or
(g) any
other Event of Default specified with respect to Debt Securities of such series.
Section 8.02 Acceleration
of Maturity; Rescission and Annulment.
If an Event of Default due
to the default in payment of principal of, or premium, if any, or interest (including Additional Interest) on, any series of Debt Securities
or due to the default in the performance or breach of any other covenant or warranty of the Company applicable to the Debt Securities
of such series but not applicable to all Outstanding Debt Securities shall have occurred and be continuing, either the Trustee or the
Holders of not less than 33% in principal amount of the Debt Securities of such series may then declare the principal amount (or, if any
of the Debt Securities of such series are Discount Debt Securities, such portion of the principal amount as may be specified in the terms
thereof as contemplated by Section 3.01) of all Debt Securities of such series and premium, if any, and interest (including
Additional Interest) accrued thereon to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given
by the Holders). If an Event of Default due to default in the performance of any other of the covenants or warranties herein applicable
to all Outstanding Debt Securities or an Event of Default specified in Sections 8.01(e) or (f) shall have
occurred and be continuing, either the Trustee or the Holders of not less than 33% in principal amount of all Debt Securities then Outstanding
(considered as one class), and not the Holders of the Debt Securities of any one of such series, may declare the principal amount (or,
if any of the Debt Securities are Discount Debt Securities, such portion of the principal amount of such Debt Securities as may be specified
in the terms thereof as contemplated by Section 3.01) of all Debt Securities and premium, if any, and interest accrued thereon
to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders). As a consequence
of each such declaration (herein referred to as a declaration of acceleration) with respect to Debt Securities of any series, the principal
amount (or portion thereof in the case of Discount Debt Securities) of such Debt Securities, premium, if any, and interest (including
Additional Interest) accrued thereon shall become due and payable immediately [(provided that the payment of principal of such
Debt Securities shall remain subordinated to the extent provided in Article XV hereof)] *.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
With respect to a series of
Debt Securities to which a credit enhancement is applicable, the applicable supplemental indenture may provide that the provider of such
credit enhancement may, if default has occurred and is continuing with respect to such series, and subject to certain conditions, have
all the rights with respect to remedies that would otherwise have been exercisable by the Holders of Debt Securities of that series.
At any time after such a declaration
of acceleration with respect to Debt Securities of any series shall have been made and before a judgment or decree for payment of the
money due shall have been obtained by the Trustee as hereinafter in this Article provided, the Event or Events of Default giving
rise to such declaration of acceleration shall, without further act, be deemed to have been waived, and such declaration and its consequences
shall, without further act, be deemed to have been rescinded and annulled, if
(a) the
Company shall have paid or deposited with the Trustee a sum sufficient to pay
(1) all
overdue interest on all Debt Securities of such series;
(2) the
principal of and premium, if any, on any Debt Securities of such series that have become due otherwise than by such declaration of acceleration
and interest (including Additional Interest) thereon at the rate or rates prescribed therefor in such Debt Securities;
(3) to
the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such Debt
Securities;
(4) all
amounts due to the Trustee under Section 9.07; and
(b) any
other Event or Events of Default with respect to Debt Securities of such series, other than the non-payment of the principal of Debt Securities
of such series that shall have become due solely by reason of such declaration of acceleration, shall have been cured or waived as provided
in Section 8.13.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
No such rescission shall affect any subsequent
Event of Default or impair any right consequent thereon.
Section 8.03 Collection
of Indebtedness and Suits for Enforcement by Trustee.
If an Event of Default described
in clause (a), (b) or (c) of Section 8.01 shall have occurred and be continuing, the Company shall, upon demand
of the Trustee, pay to it, for the benefit of the Holders of the Debt Securities of the series with respect to which such Event of Default
shall have occurred, the whole amount then due and payable on such Debt Securities for principal and premium, if any, and interest, if
any, and, to the extent permitted by law, (i) interest on premium, if any, (ii) interest on any overdue principal and (iii) Additional
Interest, at the rate or rates prescribed therefor in such Debt Securities, and, in addition thereto, such further amount as shall be
sufficient to cover any amounts due to the Trustee under Section 9.07.
If the Company shall fail
to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce
the same against the Company or any other obligor upon such Debt Securities and collect the moneys adjudged or decreed to be payable in
the manner provided by law out of the property of the Company or any other obligor upon such Debt Securities, wherever situated.
If an Event of Default with
respect to Debt Securities of any series shall have occurred and be continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Debt Securities of such series under the Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.
Section 8.04 Trustee
May File Proofs of Claim.
In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding
relative to the Company or any other obligor upon the Debt Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Debt Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue
principal or interest (including Additional Interest)) shall be entitled and empowered, by intervention in such proceeding or otherwise,
(a) to
file and prove a claim for the whole amount of principal, premium, if any, and interest (including Additional Interest), if any, owing
and unpaid in respect of the Debt Securities and to file such other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee (including any claim for amounts due to the Trustee under Section 9.07) and of the Holders allowed
in such judicial proceeding, and
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(b) to
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly
to the Holders, to pay to the Trustee any amounts due it under Section 9.07.
Nothing herein contained shall
be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Debt Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect
of the claim of any Holder in any such proceeding.
Section 8.05 Trustee
May Enforce Claims without Possession of Debt Securities.
All rights of action and claims
under this Indenture or the Debt Securities may be prosecuted and enforced by the Trustee without the possession of any of the Debt Securities
or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its
own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders in respect of which
such judgment has been recovered.
Section 8.06 Application
of Money Collected.
[Subject to the provisions
of Article XV,]* any money collected by the Trustee pursuant to this Article shall be applied in the following order,
at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal or premium, if any, or
interest (including Additional Interest), if any, upon presentation of the Debt Securities in respect of which or for the benefit of which
such money shall have been collected and the notation thereon of the payment if only partially paid and upon surrender thereof if fully
paid:
FIRST: To the payment of all
amounts due the Trustee under Section 9.07;
SECOND: To the payment of
the amounts then due and unpaid upon the Debt Securities for principal of and premium, if any, and interest (including Additional Interest),
if any, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any
kind, according to the amounts due and payable on such Debt Securities for principal, premium, if any, and interest (including Additional
Interest), if any, respectively; and
THIRD: To the payment of the
remainder, if any, to the Company, or to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction
may direct.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 8.07 Limitation
on Suits.
No Holder shall have any right
to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or
for any other remedy hereunder, unless:
(a) such
Holder shall have previously given written notice to the Trustee of a continuing Event of Default with respect to the Debt Securities
of such series;
(b) the
Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of all series in respect of which
an Event of Default shall have occurred and be continuing, considered as one class, shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;
(c) such
Holder or Holders shall have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request;
(d) the
Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have failed to institute any such proceeding;
and
(e) no
direction inconsistent with such written request shall have been given to the Trustee during such 60-day period by the Holders of a majority
in aggregate principal amount of the Outstanding Debt Securities of all series in respect of which an Event of Default shall have occurred
and be continuing, considered as one class;
it being understood and intended that no one or
more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other of such Holders or to obtain or to seek to obtain priority or preference over any other of
such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit
of all of such Holders.
Section 8.08 Unconditional
Right of Holders to Receive Principal, Premium and Interest.
Notwithstanding any other
provision in this Indenture, the Holder of any Debt Security shall have the right, which is absolute and unconditional, to receive payment
of the principal of and premium, if any, and (subject to Section 3.07 [and 3.12] *) interest (including Additional
Interest), if any, on such Debt Security on the Stated Maturity or Maturities expressed in such Debt Security (or, in the case of redemption,
on the Redemption Date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the
consent of such Holder.
Section 8.09 Restoration
of Rights and Remedies.
If the Trustee or any Holder
has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding shall have been discontinued or
abandoned for any reason, or shall have been determined adversely to the Trustee or to such Holder, then and in every such case, subject
to any determination in such proceeding, the Company, Trustee and such Holder shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and such Holder shall continue as though no such proceeding
had been instituted.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 8.10 Rights
and Remedies Cumulative.
Except as otherwise provided
in the last paragraph of Section 3.06, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders
is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion
or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate
right or remedy.
Section 8.11 Delay
or Omission Not Waiver.
No delay or omission of the
Trustee or of any Holder to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute
a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the
case may be.
Section 8.12 Control
by Holders of Debt Securities.
If an Event of Default shall
have occurred and be continuing in respect of a series of Debt Securities, the Holders of a majority in principal amount of the Outstanding
Debt Securities of such series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Debt Securities of such series; provided,
however, that if an Event of Default shall have occurred and be continuing with respect to more than one series of Debt Securities,
the Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of all such series, considered as one class,
shall have the right to make such direction, and not the Holders of the Debt Securities of any one of such series; and provided,
further, that
(a) such
direction shall not be in conflict with any rule of law or with this Indenture, and may not involve the Trustee in personal liability
in circumstances where indemnity would not in the Trustee’s reasonable discretion be adequate, and
(b) the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.
Before proceeding to exercise
any right or power hereunder at the direction of such Holders, the Trustee shall be entitled to receive from such Holders reasonable security
or indemnity against the costs, expenses and liabilities that might be incurred by it in compliance with any such direction.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 8.13 Waiver
of Past Defaults.
The Holders of not less than
a majority in principal amount of the Outstanding Debt Securities of any series may on behalf of the Holders of all the Debt Securities
of such series waive any past default hereunder with respect to such series and its consequences, except a default
(a) in
the payment of the principal of or premium, if any, or interest (including Additional Interest), if any, on any Debt Security of such
series, or
(b) in
respect of a covenant or provision hereof that under Section 12.02 cannot be modified or amended without the consent of the
Holder of each Outstanding Debt Security of such series affected.
Upon any such waiver, such
default shall cease to exist, and any and all Events of Default arising therefrom shall be deemed to have been cured for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.
Section 8.14 Undertaking
for Costs.
The Company and the Trustee
agree, and each Holder by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered
or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such
court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall
not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group
of Holders, holding in the aggregate more than 10% in aggregate principal amount of the Outstanding Debt Securities of all series in respect
of which such suit may be brought, considered as one class, or to any suit instituted by any Holder for the enforcement of the payment
of the principal of or premium, if any, or interest (including Additional Interest), if any, on any Debt Security on or after the Stated
Maturity or Maturities expressed in such Debt Security (or, in the case of redemption, on or after the Redemption Date).
Section 8.15 Waiver
of Stay or Extension Laws.
The Company covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants
or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been enacted.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Article IX
THE TRUSTEE
Section 9.01 Certain
Duties and Responsibilities.
(a) The
Trustee shall have and be subject to all the duties and responsibilities specified with respect to an indenture trustee in the Trust Indenture
Act, and no implied covenants or obligations shall be read into this Indenture against the Trustee.
(b) The
Trustee, prior to the occurrence of an Event of Default and after the curing or waiving of all Events of Default that may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default of
which a Responsible Officer of the Trustee has knowledge has occurred and is continuing, the Trustee shall exercise such of the rights
and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of such person’s own affairs.
(c) No
provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that prior to the occurrence of an Event of Default and after the curing or waiving
of all Events of Default that may have occurred
(i) the
duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture, and the Trustee shall not
be liable except for the performance of, or failure to perform, such duties and obligations as are specifically set forth in this Indenture,
and no implied covenants or obligations shall be read into this Indenture against the Trustee; and
(ii) in
the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but, in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished
to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of
this Indenture.
(d) The
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith, in accordance with the direction
of the Holders of Debt Securities pursuant to Section 8.12, relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(e) No
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that it is not reasonably assured of receiving (i) repayment of such funds or (ii) indemnity, in an amount deemed
adequate to the Trustee in its reasonable judgment, against such risk or liability.
(f) Notwithstanding
anything contained in this Indenture to the contrary, the duties and responsibilities of the Trustee under this Indenture shall be subject
to the protections, exculpations and limitations on liability afforded to the Trustee under the provisions of the Trust Indenture Act,
including those provisions of such Act deemed by such Act to be included herein.
(g) Whether
or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section.
Section 9.02 Notice
of Defaults.
The Trustee shall give the
Holders notice of any default hereunder with respect to the Debt Securities of any series to the Holders of Debt Securities of such series
of which it has knowledge (within the meaning of Section 9.03(h)) in the manner and to the extent required to do so by the
Trust Indenture Act, unless such default shall have been cured or waived; provided, however, that in the case of any default
of the character specified in Section 8.01(d), no such notice to Holders shall be given until at least 60 days after the occurrence
thereof. For the purpose of this Section, the term “default” means any event that is, or after notice or lapse of time, or
both, would become, an Event of Default.
Section 9.03 Certain
Rights of Trustee.
Subject to the provisions
of Section 9.01 and to the applicable provisions of the Trust Indenture Act:
(a) the
Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or parties;
(b) any
request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order, or as otherwise
expressly provided herein, and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;
(c) whenever
in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officer’s Certificate;
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(d) the
Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;
(e) the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction
of any Holder pursuant to this Indenture, unless such Holder shall have offered to the Trustee reasonable security or indemnity against
the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction;
(f) the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see
fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall (subject to applicable legal requirements)
be entitled to examine, during normal business hours, the books, records and premises of the Company, personally or by agent or attorney;
(g) the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder; and
(h) the
Trustee shall not be charged with knowledge of any default or Event of Default with respect to the Debt Securities of any series for
which it is acting as Trustee unless either (i) a Responsible Officer of the Trustee shall have knowledge of the default or Event
of Default or (ii) written notice of such default or Event of Default shall have been given to the Trustee by the Company, any other
obligor on such Debt Securities or by any Holder of such Debt Securities.
Section 9.04 Not
Responsible for Recitals or Issuance of Debt Securities.
The recitals contained herein
and in the Debt Securities (except the Trustee’s certificates of authentication) shall be taken as the statements of the Company,
and neither the Trustee nor any Authenticating Agent assumes responsibility for their correctness. The Trustee makes no representations
as to the validity or sufficiency of this Indenture or of the Debt Securities. Neither the Trustee nor any Authenticating Agent shall
be accountable for the use or application by the Company of Debt Securities or the proceeds thereof. The Trustee shall not incur any liability
for non-performance or breach of any obligation hereunder to the extent that the Trustee is delayed in performing, unable to perform or
breaches such obligation because of acts of God, war, terrorism, fire, floods, electrical outages or other causes reasonably beyond its
control; provided, however, that the Trustee shall use commercially reasonable efforts consistent with accepted practices
for corporate trustees to maintain performance without delay or resume performance as soon as reasonably practicable under the circumstances.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 9.05 May Hold
Debt Securities.
Each of the Trustee, any Authenticating
Agent, any Paying Agent, any Debt Security Registrar or any other agent of the Company, in its individual or any other capacity, may become
the owner or pledgee of Debt Securities and, subject to Sections 9.08 and 9.13, may otherwise deal with the Company
with the same rights it would have if it were not the Trustee, Authenticating Agent, Paying Agent, Debt Security Registrar or such other
agent.
Section 9.06 Money
Held in Trust.
Money held by the Trustee
in trust hereunder need not be segregated from other funds, except to the extent required by law. The Trustee shall be under no liability
for interest on investment of any money received by it hereunder except as expressly provided herein or otherwise agreed with, and for
the sole benefit of, the Company.
Section 9.07 Compensation
and Reimbursement.
The Company shall
(a) pay
to the Trustee from time to time reasonable compensation for all services rendered by it hereunder (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an express trust);
(b) except
as otherwise expressly provided herein, reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances
reasonably incurred or made by the Trustee in accordance with any provision of this Indenture, including the costs of collection (including
the reasonable compensation and the expenses and disbursements of its agents and counsel), except to the extent that any such expense,
disbursement or advance may be attributable to its negligence, willful misconduct or bad faith; and
(c) indemnify
the Trustee and hold it harmless from and against any and all losses, demands, claims, liabilities, causes of action or expenses (including
reasonable attorneys’ fees and expenses) incurred by it arising out of or in connection with the acceptance or administration of
the trust or trusts hereunder or the performance of its duties hereunder, including the reasonable costs and expenses of defending itself
against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the
extent any such loss, demand, claim, liability, cause of action or expense may be attributable to its negligence, willful misconduct or
bad faith and may assume the defense of the Trustee with counsel acceptable to the Trustee, unless the Trustee shall have been advised
by counsel that there may be one or more legal defenses available to it that are different from or additional to those available to the
Company, in which case the Trustee may engage separate counsel, and the fees and expenses of such counsel shall be assumed by the Company.
As security for the performance
of the obligations of the Company under this Section, the Trustee shall have a lien prior to the Debt Securities upon all property and
funds held or collected by the Trustee as such other than property and funds held in trust for the payment of principal, premium, if any,
and interest on Debt Securities. “Trustee” for purposes of this Section shall include any predecessor Trustee;
provided, however, that the negligence, willful misconduct or bad faith of any Trustee hereunder shall not affect the rights
of any other Trustee hereunder. When a Trustee incurs expenses or renders services in connection with an Event of Default specified in
Sections 8.01(e) or (f), the expenses (including the reasonable charges and expenses of its counsel) and the compensation
for the services are intended to constitute expenses of administration under any applicable federal or state bankruptcy, insolvency or
other similar law. The provisions of this Section shall survive termination of this Indenture and the resignation or removal of the
Trustee.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 9.08 Disqualification;
Conflicting Interests.
If the Trustee shall have
or acquire any conflicting interest within the meaning of the Trust Indenture Act, it shall either eliminate such conflicting interest
or resign to the extent, in the manner and with the effect, and subject to the conditions, provided in the Trust Indenture Act and this
Indenture. For purposes of Section 310(b)(1) of the Trust Indenture Act and to the extent permitted thereby, the Trustee shall
not be deemed to have a conflicting interest by virtue of being a Trustee under (a) this Indenture with respect to Debt Securities
of one or more series or (b) any other indenture to which the Trustee and the Company are a party, if any, or with respect to the
securities issued thereunder, if any.
Section 9.09 Corporate
Trustee Required; Eligibility.
There shall at all times be
a Trustee hereunder which shall be
(a) a
corporation organized and doing business under the laws of the United States, any state or territory thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $100,000,000 and subject
to supervision or examination by federal or state authority, or
(b) if
and to the extent permitted by the Commission by rule, regulation or order upon application, a corporation or other Person organized and
doing business under the laws of a foreign government, authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $100,000,000 or the Dollar equivalent of the applicable foreign currency and subject to supervision or
examination by authority of such foreign government or a political subdivision thereof substantially equivalent to supervision or examination
applicable to United States institutional trustees,
and, in either case, qualified and eligible under
this Article and the Trust Indenture Act. If such corporation publishes reports of condition at least annually, pursuant to law or
to the requirements of such supervising or examining authority, then for the purposes of this Section, the combined capital and surplus
of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 9.10 Resignation
and Removal; Appointment of Successor.
(a) No
resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until
the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 9.11.
(b) The
Trustee may resign at any time with respect to the Debt Securities of one or more series by giving written notice thereof to the Company.
If the instrument of acceptance by a successor Trustee required by Section 9.11 shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction
for the appointment of a successor Trustee with respect to the Debt Securities of such series.
(c) The
Trustee may be removed at any time with respect to the Debt Securities of any series by Act of the Holders of a majority in principal
amount of the Outstanding Debt Securities of such series delivered to the Trustee and to the Company.
(d) If
at any time:
(1) the
Trustee shall fail to comply with Section 9.08 after written request therefor by the Company or by any Holder who has been
a bona fide Holder for at least six months, or
(2) the
Trustee shall cease to be eligible under Section 9.09 and shall fail to resign after written request therefor by the Company
or by any such Holder, or
(3) the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property
shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation,
then, in any such case, (x) the Company by
a Board Resolution may remove the Trustee with respect to all Debt Securities or (y) subject to Section 8.14, any Holder
who has been a bona fide Holder for at least six months may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee with respect to all Debt Securities and the appointment of a successor Trustee
or Trustees.
(e) If
the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause
(other than as contemplated in clause (y) in Subsection (d) of this Section), with respect to the Debt Securities
of one or more series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the
Debt Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Debt
Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Debt Securities
of any particular series) and shall comply with the applicable requirements of Section 9.11. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Debt Securities of any
series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Debt Securities of such series delivered
to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment
in accordance with the applicable requirements of Section 9.11, become the successor Trustee with respect to the Debt Securities
of such series and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the
Debt Securities of any series shall have been so appointed by the Company or the Holders and accepted appointment in the manner required
by Section 9.11, any Holder who has been a bona fide Holder of a Debt Security of such series for at least six months may,
on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Debt Securities of such series.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(f) So
long as no event that is, or after notice or lapse of time, or both, would become, an Event of Default shall have occurred and be continuing,
and except with respect to a Trustee appointed by Act of the Holders of a majority in principal amount of the Outstanding Debt Securities
pursuant to Subsection (e) of this Section, if the Company shall have delivered to the Trustee (i) a Board Resolution appointing
a successor Trustee, effective as of a date specified therein, and (ii) an instrument of acceptance of such appointment, effective
as of such date, by such successor Trustee in accordance with Section 9.11, the Trustee shall be deemed to have resigned as
contemplated in Subsection (b) of this Section, the successor Trustee shall be deemed to have been appointed by the Company
pursuant to Subsection (e) of this Section and such appointment shall be deemed to have been accepted as contemplated in
Section 9.11, all as of such date, and all other provisions of this Section and Section 9.11 shall be applicable
to such resignation, appointment and acceptance except to the extent inconsistent with this Subsection (f).
(g) The
Company or, should the Company fail so to act promptly, the successor Trustee, at the expense of the Company, shall give notice of each
resignation and each removal of the Trustee with respect to the Debt Securities of any series and each appointment of a successor Trustee
with respect to the Debt Securities of any series by mailing written notice of such event by first-class mail, postage prepaid, to all
Holders of Debt Securities of such series as their names and addresses appear in the Debt Security Register. Each notice shall include
the name of the successor Trustee with respect to the Debt Securities of such series and the address of its corporate trust office.
Section 9.11 Acceptance
of Appointment by Successor.
(a) In
case of the appointment hereunder of a successor Trustee with respect to the Debt Securities of all series, every such successor Trustee
so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon payment of all sums owed to it, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver
to such successor Trustee all property and money held by such retiring Trustee hereunder.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(b) In
case of the appointment hereunder of a successor Trustee with respect to the Debt Securities of one or more (but not all) series, the
Company, the retiring Trustee and each successor Trustee with respect to the Debt Securities of one or more series shall execute and deliver
an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (i) shall contain such provisions
as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Debt Securities of that or those series to which the appointment of such successor
Trustee relates, (ii) if the retiring Trustee is not retiring with respect to all Debt Securities, shall contain such provisions
as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Debt Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring
Trustee and (iii) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture
shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such
supplemental indenture, the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each
such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Debt Securities of that or those series to which the appointment of such successor Trustee
relates; but, on request of the Company or any successor Trustee, such retiring Trustee, upon payment of all sums owed to it, shall duly
assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to
the Debt Securities of that or those series to which the appointment of such successor Trustee relates.
(c) Upon
request of any such successor Trustee, the Company shall execute any instruments that fully vest in and confirm to such successor Trustee
all such rights, powers and trusts referred to in Subsection (a) or (b) of this Section, as the case may be.
(d) No
successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible
under this Article.
Section 9.12 Merger,
Conversion, Consolidation or Succession to Business.
Any corporation into which
the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible
under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case
any Debt Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion
or consolidation to such authenticating Trustee may adopt such authentication and deliver the Debt Securities so authenticated with the
same effect as if such successor Trustee had itself authenticated such Debt Securities.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 9.13 Preferential
Collection of Claims Against Company.
If the Trustee shall be or
become a creditor of the Company or any other obligor upon the Debt Securities (other than by reason of a relationship described in Section 311(b) of
the Trust Indenture Act), the Trustee shall be subject to any and all applicable provisions of the Trust Indenture Act regarding the collection
of claims against the Company or such other obligor. For purposes of Section 311(b) of the Trust Indenture Act:
(a) the
term “cash transaction” means any transaction in which full payment for goods or securities sold is made within seven days
after delivery of the goods or securities in currency or in checks or other orders drawn upon banks or bankers and payable upon demand;
and
(b) the
term “self-liquidating paper” means any draft, bill of exchange, acceptance or obligation that is made, drawn, negotiated
or incurred by the Company for the purpose of financing the purchase, processing, manufacturing, shipment, storage or sale of goods, wares
or merchandise and that is secured by documents evidencing title to, possession of, or a lien upon, the goods, wares or merchandise or
the receivables or proceeds arising from the sale of the goods, wares or merchandise previously constituting the security, provided the
security is received by the Trustee simultaneously with the creation of the creditor relationship with the Company arising from the making,
drawing, negotiating or incurring of the draft, bill of exchange, acceptance or obligation.
Section 9.14 Co-Trustees
and Separate Trustees.
At any time or times, for
the purpose of meeting the legal requirements of any applicable jurisdiction, the Company and the Trustee shall have power to appoint,
and, upon the written request of the Trustee or of the Holders of at least 33% in principal amount of the Debt Securities then Outstanding,
the Company shall for such purpose join with the Trustee in the execution and delivery of all instruments and agreements necessary or
proper to appoint, one or more Persons approved by the Trustee either to act as co-trustee, jointly with the Trustee, or to act as separate
trustee, in either case with such powers as may be provided in the instrument of appointment, and to vest in such Person or Persons, in
the capacity aforesaid, any property, title, right or power deemed necessary or desirable, subject to the other provisions of this Section.
If the Company does not join in such appointment within 15 days after the receipt by it of a request so to do, or if an Event of Default
shall have occurred and be continuing, the Trustee alone shall have power to make such appointment.
Should any written instrument
or instruments from the Company be required by any co-trustee or separate trustee so appointed to more fully confirm to such co-trustee
or separate trustee such property, title, right or power, any and all such instruments shall, on request, be executed, acknowledged and
delivered by the Company.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Every co-trustee or separate
trustee shall, to the extent permitted by law, but to such extent only, be appointed subject to the following conditions:
(a) the
Debt Securities shall be authenticated and delivered, and all rights, powers, duties and obligations hereunder in respect of the custody
of securities, cash and other personal property held by, or required to be deposited or pledged with, the Trustee hereunder, shall be
exercised solely, by the Trustee;
(b) the
rights, powers, duties and obligations hereby conferred or imposed upon the Trustee in respect of any property covered by such appointment
shall be conferred or imposed upon and exercised or performed either by the Trustee or by the Trustee and such co-trustee or separate
trustee jointly, as shall be provided in the instrument appointing such co-trustee or separate trustee, except to the extent that under
any law of any jurisdiction in which any particular act is to be performed, the Trustee shall be incompetent or unqualified to perform
such act, in which event such rights, powers, duties and obligations shall be exercised and performed by such co-trustee or separate trustee;
(c) the
Trustee at any time, by an instrument in writing executed by it, with the concurrence of the Company, may accept the resignation of or
remove any co-trustee or separate trustee appointed under this Section, and, if an Event of Default shall have occurred and be continuing,
the Trustee shall have power to accept the resignation of, or remove, any such co-trustee or separate trustee without the concurrence
of the Company. Upon the written request of the Trustee, the Company shall join with the Trustee in the execution and delivery of all
instruments and agreements necessary or proper to effectuate such resignation or removal. A successor to any co-trustee or separate trustee
so resigned or removed may be appointed in the manner provided in this Section;
(d) no
co-trustee or separate trustee hereunder shall be personally liable by reason of any act or omission of the Trustee, or any other such
trustee hereunder, and the Trustee shall have no liability, personally or in its capacity as Trustee, for any act or omission of any co-trustee
or separate trustee hereunder; and
(e) any
Act of Holders delivered to the Trustee shall be deemed to have been delivered to each such co-trustee and separate trustee.
Section 9.15 Appointment
of Authenticating Agent.
The Trustee may appoint an
Authenticating Agent or Agents with respect to the Debt Securities of one or more series, or any Tranche thereof, which shall be authorized
to act on behalf of the Trustee to authenticate Debt Securities of such series or Tranche issued upon original issuance, exchange, registration
of transfer or partial redemption thereof or pursuant to Section 3.06, and Debt Securities so authenticated shall be entitled
to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever
reference is made in this Indenture to the authentication and delivery of Debt Securities by the Trustee or the Trustee’s certificate
of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating
Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall
be acceptable to the Company and shall at all times be a corporation organized and doing business under the laws of the United States,
any state or territory thereof or the District of Columbia or the Commonwealth of Puerto Rico, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by federal or state
authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time
an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Any corporation into which
an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency
or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided such corporation shall
be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or
the Authenticating Agent.
An Authenticating Agent may
resign at any time by giving 45 days written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate the
agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance
with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent that shall be acceptable to the Company.
Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section.
The Company agrees to pay
to each Authenticating Agent from time to time reasonable compensation for its services under this Section.
The provisions of Sections 3.08,
9.04 and 9.05 shall be applicable to each Authenticating Agent.
If an appointment with respect
to the Debt Securities of one or more series, or any Tranche thereof, shall be made pursuant to this Section, the Debt Securities of such
series or Tranche may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an alternate certificate
of authentication substantially in the following form:
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
This is one of the Debt Securities
of the series designated therein referred to in the within-mentioned Indenture.
| Date: |
By: |
|
| |
As Trustee |
| |
|
| |
By: |
|
| |
As Authenticating Agent |
| |
|
| |
By: |
|
| |
Authorized Signatory |
If all of the Debt Securities
of a series may not be originally issued at one time, and if the Trustee does not have an office capable of authenticating Debt Securities
upon original issuance located in a Place of Payment where the Company wishes to have Debt Securities of such series authenticated upon
original issuance, the Trustee, if so requested by the Company in writing (which writing need not comply with Section 1.02
and need not be accompanied by an Opinion of Counsel), shall appoint, in accordance with this Section and in accordance with such
procedures as shall be acceptable to the Trustee, an Authenticating Agent having an office in a Place of Payment designated by the Company
with respect to such series of Debt Securities.
Article X
HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 10.01 Lists
of Holders.
Semiannually, not later than
and in each
year, commencing with the year 20 , and at such other times as the Trustee
may request in writing, the Company shall furnish or cause to be furnished to the Trustee information as to the names and addresses of
the Holders, and the Trustee shall preserve such information and similar information received by it in any other capacity and afford to
the Holders access to information so preserved by it, all to such extent, if any, and in such manner as shall be required by the Trust
Indenture Act; provided, however, that no such list need be furnished so long as the Trustee shall be the Debt Security
Registrar. Every holder of Debt Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held accountable by reason of the disclosure of any such information
as to the names and addresses of the Holders of Debt Securities in accordance with Section 312 of the Trust Indenture Act, or any
successor Section of such Act, regardless of the source from which such information was derived, and that the Trustee shall not be
held accountable by reason of mailing any material pursuant to a request made under Section 312(b) of the Trust Indenture Act,
or any successor Section of such Act.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 10.02 Reports
by Trustee and Company.
Annually, not later than
in each year, commencing , the Trustee shall transmit to the Holders, the
Commission and each securities exchange upon which any Debt Securities are listed, a report, dated as of the next preceding ,
with respect to any events and other matters described in Section 313(a) of the Trust Indenture Act, in such manner and to the
extent required by the Trust Indenture Act. The Trustee shall transmit to the Holders, the Commission and each securities exchange upon
which any Debt Securities are listed, and the Company shall file with the Trustee (within 30 days after filing with the Commission in
the case of reports that pursuant to the Trust Indenture Act must be filed with the Commission and furnished to the Trustee) and transmit
to the Holders, such other information, reports and other documents, if any, at such times and in such manner, as shall be required by
the Trust Indenture Act.
The Company shall notify the
Trustee of the listing of any Debt Securities on any securities exchange. Delivery of such reports, information and documents by the Company
to the Trustee is for informational purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of
any information contained therein or determinable from information contained therein, including the Company’s compliance with any
of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).
Article XI
CONSOLIDATION, MERGER, CONVEYANCE OR OTHER TRANSFER
Section 11.01 Company
May Consolidate, Etc., Only on Certain Terms.
The Company shall not consolidate
with or merge into any other corporation, or convey or otherwise transfer or lease its properties and assets substantially as an entirety
to any Person, unless
(a) the
corporation formed by such consolidation or into which the Company is merged or the Person that acquires by conveyance or transfer, or
that leases, the properties and assets of the Company substantially as an entirety shall be a Person organized and existing under the
laws of the United States, any state thereof or the District of Columbia, and shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of, and premium,
if any, and interest (including Additional Interest), if any, on all Outstanding Debt Securities and the performance of every covenant
of this Indenture on the part of the Company to be performed or observed;
(b) immediately
after giving effect to such transaction and treating any indebtedness for borrowed money that becomes an obligation of the Company as
a result of such transaction as having been incurred by the Company at the time of such transaction, no Event of Default, and no event
that, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and
(c) the
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance, or other transfer or lease and such supplemental indenture comply with this Article and that all conditions
precedent herein provided for relating to such transactions have been complied with.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 11.02 Successor
Corporation Substituted.
Upon any consolidation by
the Company with or merger by the Company into any other corporation or any conveyance or other transfer or lease of the properties and
assets of the Company substantially as an entirety in accordance with Section 11.01, the successor corporation formed by such
consolidation or into which the Company is merged or the Person to which such conveyance, transfer or lease is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein, and thereafter, except in the case of a lease, the predecessor Person shall be relieved of
all obligations and covenants under this Indenture and the Debt Securities Outstanding hereunder.
Article XII
SUPPLEMENTAL INDENTURES
Section 12.01 Supplemental
Indentures Without Consent of Holders.
Without the consent of any
Holders, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in
form satisfactory to the Trustee, for any of the following purposes:
(a) to
evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company herein
and in the Debt Securities, all as provided in Article XI; or
(b) to
add one or more covenants of the Company or other provisions for the benefit of all Holders or for the benefit of the Holders of, or
to remain in effect only so long as there shall be Outstanding, Debt Securities of one or more specified series, or one or more specified
Tranches thereof, or to surrender any right or power herein conferred upon the Company; or
(c) to
add any additional Events of Default with respect to all or any series of Debt Securities Outstanding hereunder; or
(d) to
change or eliminate any provision of this Indenture or to add any new provision to this Indenture; provided, however, that
if such change, elimination or addition shall adversely affect the interests of the Holders of Debt Securities of any series or Tranche
Outstanding on the date of such indenture supplemental hereto in any material respect, such change, elimination or addition shall become
effective with respect to such series or Tranche only pursuant to the provisions of Section 12.02 hereof or when no Debt Security
of such series or Tranche remains Outstanding; or
(e) to
provide collateral security for the Debt Securities of any series or Tranche; or
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(f) to
establish the form or terms of Debt Securities of any series or Tranche as contemplated by Sections 2.01 and 3.01;
or
(g) to
provide for the authentication and delivery of bearer securities and coupons appertaining thereto representing interest, if any, thereon
and for the procedures for the registration, exchange and replacement thereof and for the giving of notice to, and the solicitation of
the vote or consent of, the holders thereof, and for any and all other matters incidental thereto; or
(h) to
evidence and provide for the acceptance of appointment hereunder by a separate or successor Trustee with respect to the Debt Securities
of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 9.11(b); or
(i) to
provide for the procedures required to permit the Company to utilize, at its option, a non-certificated system of registration for all,
or any series or Tranche of, the Debt Securities; or to provide for the authentication and delivery of bearer securities and coupons
appertaining thereto representing interest, if any, thereon and for the procedures for the registration, exchange and replacement thereof
and for the giving of notice to, and the solicitation of the vote or consent of, the holders thereof, and for any and all other matters
incidental thereto; or
(j) to
change any place or places where (i) the principal of and premium, if any, and interest (including Additional Interest), if any,
on all or any series of Debt Securities, or any Tranche thereof, shall be payable, (ii) all or any series of Debt Securities, or
any Tranche thereof, may be surrendered for registration of transfer, (iii) all or any series of Debt Securities, or any Tranche
thereof, may be surrendered for exchange and (iv) notices and demands to or upon the Company in respect of all or any series of Debt
Securities, or any Tranche thereof, and this Indenture may be served; or
(k) to
cure any ambiguity or to correct or supplement any provision herein that may be defective or inconsistent with any other provision herein;
provided that no such changes or additions shall adversely affect the interests of the Holders of Debt Securities of any series or Tranche
in any material respect.
Without limiting the generality
of the foregoing, if the Trust Indenture Act as in effect at the date of the execution and delivery of this Indenture or at any time thereafter
shall be amended and
(x) if
any such amendment shall require one or more changes to any provisions hereof or the inclusion herein of any additional provisions, or
shall by operation of law be deemed to effect such changes or incorporate such provisions by reference or otherwise, this Indenture shall
be deemed to have been amended so as to conform to such amendment to the Trust Indenture Act, and the Company and the Trustee may, without
the consent of any Holders, enter into an indenture supplemental hereto to effect or evidence such changes or additional provisions; or
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(y) if
any such amendment shall permit one or more changes to, or the elimination of, any provisions hereof that, at the date of the execution
and delivery hereof or at any time thereafter, are required by the Trust Indenture Act to be contained herein, this Indenture shall be
deemed to have been amended to effect such changes or elimination, and the Company and the Trustee may, without the consent of any Holders,
enter into an indenture supplemental hereto to evidence such amendment hereof, provided such amendment does not have a material adverse
effect on any Holders.
Section 12.02 Supplemental
Indentures With Consent of Holders.
With the consent of the Holders
of not less than a majority in aggregate principal amount of the Debt Securities of all series then Outstanding under this Indenture,
considered as one class, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution,
and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing
in any manner or eliminating any of the provisions of, this Indenture; provided, however, that if there shall be Debt Securities
of more than one series Outstanding hereunder and if a proposed supplemental indenture shall directly affect the rights of the Holders
of Debt Securities of one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate
principal amount of the Outstanding Debt Securities of all series so directly affected, considered as one class, shall be required; and
provided, further, that if the Debt Securities of any series shall have been issued in more than one Tranche and if the
proposed supplemental indenture shall directly affect the rights of the Holders of Debt Securities of one or more, but less than all,
of such Tranches, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Debt Securities
of all Tranches so directly affected, considered as one class, shall be required; and provided, further, that no such supplemental
indenture shall:
(a) change
the Stated Maturity of the principal of, or any installment of principal of or interest (including Additional Interest) on [(except as
provided in Section 3.12)]* any Debt Security, or reduce the principal amount thereof or the rate of interest thereon (or
the amount of any installment of interest thereon) or change the method of calculating such rate or reduce any premium payable upon the
redemption thereof, or reduce the amount of the principal of a Discount Debt Security that would be due and payable upon a declaration
of acceleration of the Maturity thereof pursuant to Section 8.02, or change the coin or currency (or other property) in which
any Debt Security or any premium or the interest (including Additional Interest) thereon is payable, or impair the right to institute
suit for the enforcement of any such payment on or after the Stated Maturity of any Debt Security (or, in the case of redemption, on or
after the Redemption Date), without, in any such case, the consent of the Holder of such Debt Security, or
(b) reduce
the percentage in principal amount of the Outstanding Debt Securities of any series or any Tranche thereof, the consent of the Holders
of which is required for any such supplemental indenture, or the consent of the Holders of which is required for any waiver of compliance
with any provision of this Indenture or of any default hereunder and its consequences, or reduce the requirements of Section 13.04
for quorum or voting, without, in any such case, the consent of the Holders of each Outstanding Debt Security of such series or Tranche,
or
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(c) modify
any of the provisions of this Section, Section 6.07 or Section 8.13 with respect to the Debt Securities of any
series, or any Tranche thereof (except to increase the percentages in principal amount referred to in this Section or such other
Sections or to provide that other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Debt Security affected thereby); provided, however, that this clause shall not be deemed to require the consent
of any Holder with respect to changes in the references to “the Trustee” and concomitant changes in this Section, or
the deletion of this proviso, in accordance with the requirements of Sections 9.11(b), 9.14 and 12.01(h).
A supplemental indenture that
changes or eliminates any covenant or other provision of this Indenture that has expressly been included solely for the benefit of one
or more particular series of Debt Securities, or of one or more Tranches thereof, or that modifies the rights of the Holders of Debt Securities
of such series or Tranches with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture
of the Holders of Debt Securities of any other series or Tranche.
Upon the request of the Company,
accompanied by a copy of the Board Resolution authorizing the execution of any such supplemental indenture, compliance by the Company
with Section 12.03 hereof, and the filing with the Trustee of evidence of the consent of the Holders of the Debt Securities
required hereunder with respect to the proposed supplemental indenture, the Trustee shall join with the Company in the execution of such
supplemental indenture unless the supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture,
or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental indenture.
It shall not be necessary
for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof. A waiver by a Holder of such Holder’s right to consent under this Section shall
be deemed to be a consent of such Holder.
Section 12.03 Execution
of Supplemental Indentures.
In executing, or accepting
the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be provided and (subject to Section 9.01) shall be fully protected in relying
upon an Officer’s Certificate and Opinion of Counsel, each stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 12.04 Effect
of Supplemental Indentures.
Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall
form a part of this Indenture for all purposes; and every Holder of Debt Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby. Any supplemental indenture permitted by this Article may restate this Indenture in its entirety,
and, upon the execution and delivery thereof, any such restatement shall supersede this Indenture as theretofore in effect for all purposes.
Section 12.05 Conformity
With Trust Indenture Act.
Every supplemental indenture
executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect.
Section 12.06 Reference
in Debt Securities to Supplemental Indentures.
Debt Securities of any series,
or any Tranche thereof, authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may,
and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Debt Securities of any series, or any Tranche thereof, so modified as to conform, in
the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated
and delivered by the Trustee in exchange for Outstanding Debt Securities of such series or Tranche.
Section 12.07 Modification
without Supplemental Indenture.
If the terms of any particular
series of Debt Securities shall have been established in a Board Resolution or an Officer’s Certificate pursuant to a Board Resolution
as contemplated by Section 3.01, and not in an indenture supplemental hereto, additions to, changes in or the elimination
of any of such terms may be effected by means of a supplemental Board Resolution or Officer’s Certificate, as the case may be, delivered
to, and accepted by, the Trustee; provided, however, that such supplemental Board Resolution or Officer’s Certificate
shall not be accepted by the Trustee or otherwise be effective unless all conditions set forth in this Indenture that would be required
to be satisfied if such additions, changes or elimination were contained in a supplemental indenture shall have been appropriately satisfied.
Upon the acceptance thereof by the Trustee, any such supplemental Board Resolution or Officer’s Certificate shall be deemed to be
a “supplemental indenture” for purposes of Sections 12.04 and 12.06.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Article XIII
MEETINGS OF HOLDERS; ACTION WITHOUT MEETING
Section 13.01 Purposes
for which Meetings may be Called.
A meeting of Holders of Debt
Securities of one or more, or all, series, or any Tranche or Tranches thereof, may be called at any time and from time to time pursuant
to this Article to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action provided
by this Indenture to be made, given or taken by Holders of Debt Securities of such series or Tranches.
Section 13.02 Call,
Notice and Place of Meetings.
(a) The
Trustee may at any time call a meeting of Holders of Debt Securities of one or more, or all, series, or any Tranche or Tranches thereof,
for any purpose specified in Section 13.01, to be held at such time and at such place in the Borough of Manhattan, The City
of New York, as the Trustee shall determine, or, with the approval of the Company, at any other place. Notice of every such meeting, setting
forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given, in
the manner provided in Section 1.06, not less than 21 nor more than 180 days prior to the date fixed for the meeting.
(b) If
the Trustee shall have been requested to call a meeting of the Holders of Debt Securities of one or more, or all, series, or any Tranche
or Tranches thereof, by the Company or by the Holders of at least 33% in aggregate principal amount of all of such series and Tranches,
considered as one class, for any purpose specified in Section 13.01, by written request setting forth in reasonable detail
the action proposed to be taken at the meeting, and the Trustee shall not have given the notice of such meeting within 21 days after receipt
of such request or shall not thereafter proceed to cause the meeting to be held as provided herein, then the Company or the Holders of
Debt Securities of such series and Tranches in the amount above specified, as the case may be, may determine the time and the place in
the Borough of Manhattan, The City of New York, or in such other place as shall be determined or approved by the Company, for such meeting
and may call such meeting for such purposes by giving notice thereof as provided in Subsection (a) of this Section.
(c) Any
meeting of Holders of Debt Securities of one or more, or all, series, or any Tranche or Tranches thereof, shall be valid without notice
if the Holders of all Outstanding Debt Securities of such series or Tranches are present in person or by proxy and if representatives
of the Company and the Trustee are present, or if notice is waived in writing before or after the meeting by the Holders of all Outstanding
Debt Securities of such series, or by such of them as are not present at the meeting in person or by proxy, and by the Company and the
Trustee.
Section 13.03 Persons
Entitled to Vote at Meetings.
To be entitled to vote at
any meeting of Holders of Debt Securities of one or more, or all, series, or any Tranche or Tranches thereof, a Person shall be (a) a
Holder of one or more Outstanding Debt Securities of such series or Tranches, or (b) a Person appointed by an instrument in writing
as proxy for a Holder or Holders of one or more Outstanding Debt Securities of such series or Tranches by such Holder or Holders. The
only Persons who shall be entitled to attend any meeting of Holders of Debt Securities of any series or Tranche shall be the Persons entitled
to vote at such meeting and their counsel, any representatives of the Trustee and its counsel and any representatives of the Company and
its counsel.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 13.04 Quorum;
Action.
The Persons entitled to vote
a majority in aggregate principal amount of the Outstanding Debt Securities of the series and Tranches with respect to which a meeting
shall have been called as hereinbefore provided, considered as one class, shall constitute a quorum for a meeting of Holders of Debt Securities
of such series and Tranches; provided, however, that if any action is to be taken at such meeting that this Indenture expressly
provides may be taken by the Holders of a specified percentage, which is less than a majority, in principal amount of the Outstanding
Debt Securities of such series and Tranches, considered as one class, the Persons entitled to vote such specified percentage in principal
amount of the Outstanding Debt Securities of such series and Tranches, considered as one class, shall constitute a quorum. In the absence
of a quorum within one hour of the time appointed for any such meeting, the meeting shall, if convened at the request of Holders of Debt
Securities of such series and Tranches, be dissolved. In any other case the meeting may be adjourned for such period as may be determined
by the chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such
adjourned meeting may be further adjourned for such period as may be determined by the chairman of the meeting prior to the adjournment
of such adjourned meeting. Except as provided by Section 13.05(e), notice of the reconvening of any meeting adjourned for
more than 30 days shall be given as provided Section 13.02(a) not less than ten days prior to the date on which the meeting
is scheduled to be reconvened. Notice of the reconvening of an adjourned meeting shall state expressly the percentage, as provided above,
of the principal amount of the Outstanding Debt Securities of such series and Tranches that shall constitute a quorum.
Except as limited by Section 12.02,
any resolution presented to a meeting or adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted only
by the affirmative vote of the Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of the series and
Tranches with respect to which such meeting shall have been called, considered as one class; provided, however, that, except
as so limited, any resolution with respect to any action that this Indenture expressly provides may be taken by the Holders of a specified
percentage, which is less than a majority, in principal amount of the Outstanding Debt Securities of such series and Tranches, considered
as one class, may be adopted at a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid by the
affirmative vote of the Holders of such specified percentage in principal amount of the Outstanding Debt Securities of such series and
Tranches, considered as one class.
Any resolution passed or decision
taken at any meeting of Holders of Debt Securities duly held in accordance with this Section shall be binding on all the Holders
of Debt Securities of the series and Tranches with respect to which such meeting shall have been held, whether or not present or represented
at the meeting.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 13.05 Attendance
at Meetings; Determination of Voting Rights; Conduct and Adjournment of Meetings.
(a) Attendance
at meetings of Holders of Debt Securities may be in person or by proxy; and, to the extent permitted by law, any such proxy shall remain
in effect and be binding upon any future Holder of the Debt Securities with respect to which it was given unless and until specifically
revoked by the Holder or future Holder of such Debt Securities before being voted.
(b) Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders
of Debt Securities in regard to proof of the holding of such Debt Securities and of the appointment of proxies and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and
such other matters concerning the conduct of the meeting as it shall deem appropriate. Except as otherwise permitted or required by any
such regulations, the holding of Debt Securities shall be proved in the manner specified in Section 1.04 and the appointment
of any proxy shall be proved in the manner specified in Section 1.04. Such regulations may provide that written instruments
appointing proxies, regular on their face, may be presumed valid and genuine without the proof specified in Section 1.04 or
other proof.
(c) The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by
the Company or by Holders as provided in Section 13.02(b), in which case the Company or the Holders of Debt Securities of
the series and Tranches calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman
and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in aggregate principal amount
of the Outstanding Debt Securities of all series and Tranches represented at the meeting, considered as one class.
(d) At
any meeting each Holder or proxy shall be entitled to one vote for each $1 principal amount of Debt Securities held or represented by
him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Debt Security challenged
as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right to
vote, except as a Holder of a Debt Security or proxy.
(e) Any
meeting duly called pursuant to Section 13.02 at which a quorum is present may be adjourned from time to time by Persons entitled
to vote a majority in aggregate principal amount of the Outstanding Debt Securities of all series and Tranches represented at the meeting,
considered as one class; and the meeting may be held as so adjourned without further notice.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 13.06 Counting
Votes and Recording Action of Meetings.
The vote upon any resolution
submitted to any meeting of Holders shall be by written ballots on which shall be subscribed the signatures of the Holders or of their
representatives by proxy and the principal amounts and serial numbers of the Outstanding Debt Securities, of the series and Tranches with
respect to which the meeting shall have been called, held or represented by them. The permanent chairman of the meeting shall appoint
two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports of all votes cast at the meeting. A record of the proceedings of each meeting
of Holders shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors
of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting forth a copy
of the notice of the meeting and showing that said notice was given as provided in Section 13.02 and, if applicable, Section 13.04.
Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one such copy shall
be delivered to the Company, and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots
voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated.
Section 13.07 Action
Without Meeting.
In lieu of a vote of Holders
at a meeting as hereinbefore contemplated in this Article, any request, demand, authorization, direction, notice, consent, waiver or other
action may be made, given or taken by Holders by written instruments as provided in Section 1.04.
Article XIV
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
Section 14.01 Liability
Solely Corporate.
No recourse shall be had for
the payment of the principal of or premium, if any, or interest (including Additional Interest), if any, on any Debt Securities, or any
part thereof, or for any claim based thereon or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any
obligation, covenant or agreement under this Indenture, against any incorporator, stockholder, officer or director, as such, past, present
or future, of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor
corporation), whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any assessment
or penalty or otherwise; it being expressly agreed and understood that this Indenture and all the Debt Securities are solely corporate
obligations, and that no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, officer or director,
past, present or future, of the Company or of any predecessor or successor corporation, either directly or indirectly through the Company
or any predecessor or successor corporation, because of the indebtedness hereby authorized or under or by reason of any of the obligations,
covenants or agreements contained in this Indenture or in any of the Debt Securities or to be implied herefrom or therefrom, and that
any such personal liability is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution
of this Indenture and the issuance of the Debt Securities.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Article XV
[SUBORDINATION OF SECURITIES]*
Section 15.01 Securities
Subordinate to Senior Indebtedness.
[The Company, for itself,
its successors and assigns, covenants and agrees, and each Holder of the Debt Securities of each series, by its acceptance thereof, likewise
covenants and agrees, that the payment of the principal of and premium, if any, and interest, if any, on each and all of the Debt Securities
is hereby expressly subordinated, to the extent and in the manner set forth in this Article, in right of payment to the prior payment
in full of all Senior Indebtedness.
Each Holder of the Debt Securities
of each series, by its acceptance thereof, authorizes and directs the Trustee on its behalf to take such action as may be necessary or
appropriate to effectuate the subordination as provided in this Article, and appoints the Trustee its attorney-in-fact for any and all
such purposes.
Without limiting the generality
of the foregoing, nothing contained in this Article shall restrict the right of the Trustee or the Holders of Debt Securities to
take any action to declare the Debt Securities to be due and payable prior to their stated maturity pursuant to Section 8.02
or to pursue any rights or remedies hereunder; provided, however, that all Senior Indebtedness then due and payable shall
first be paid in full before the Holders of the Debt Securities or the Trustee are entitled to receive any direct or indirect payment
from the Company of principal of, or premium, if any, or interest on the Debt Securities.
Section 15.02 Payment
Over of Proceeds of Securities.
In the event (a) of any insolvency or bankruptcy
proceedings or any receivership, liquidation, reorganization or other similar proceedings in respect of the Company or a substantial part
of its property, or of any proceedings for liquidation, dissolution or other winding up of the Company, whether or not involving insolvency
or bankruptcy, whether voluntary or involuntary or (b) subject to the provisions of Section 15.03, that (i) a default
shall have occurred with respect to the payment of principal of or interest on or other monetary amounts due and payable on any Senior
Indebtedness, or (ii) there shall have occurred a default (other than a default in the payment of principal or interest or other
monetary amounts due and payable) in respect of any Senior Indebtedness, as defined therein or in the instrument under which the same
is outstanding, permitting the holder or holders thereof to accelerate the maturity thereof (with notice or lapse of time, or both), and
such default shall have continued beyond the period of grace, if any, in respect thereof, and, in the cases of subclauses (i) and
(ii) of this clause (b), such default shall not have been cured or waived or shall not have ceased to exist, and, in the case
of subclause (ii) of this clause (b), the maturity of such Senior Indebtedness shall have been accelerated in accordance
with the default provisions thereof or (c) that the principal of and accrued interest on the Debt Securities of any series shall
have been declared due and payable pursuant to Section 8.01 and such declaration shall not have been rescinded and annulled
as provided in Section 8.02, then:
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
(1) the
holders of all Senior Indebtedness shall first be entitled to receive payment of the full amount due thereon, or provision shall be made
for such payment in money or money’s worth, before the Holders of any of the Debt Securities are entitled to receive a payment
on account of the principal of or interest on the indebtedness evidenced by the Debt Securities, including, without limitation, any payments
made pursuant to Articles IV and V;
(2) any
payment by, or distribution of assets of, the Company of any kind or character, whether in cash, property or securities, to which any
Holder or the Trustee would be entitled except for the provisions of this Article, shall be paid or delivered by the person making such
payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the holders of such
Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments
evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account
of such Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all Senior Indebtedness remaining
unpaid after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior Indebtedness,
before any payment or distribution is made to the Holder of the indebtedness evidenced by the Debt Securities or to the Trustee under
this Indenture; and
(3) in
the event that, notwithstanding the foregoing, any payment by, or distribution of assets of, the Company of any kind or character, whether
in cash, property or securities, in respect of principal of or interest on the Debt Securities or in connection with any repurchase by
the Company of the Debt Securities, shall be received by the Trustee or any Holder before all Senior Indebtedness is paid in full to the
extent required by Subsection (1) of this Section 15.02, or provision is made for such payment in money or money’s
worth, such payment or distribution in respect of principal of or interest on the Debt Securities or in connection with any repurchase
by the Company of the Debt Securities shall be paid over to the holders of such Senior Indebtedness or their representative or representatives
or to the trustee or trustees under any indenture under which any instruments evidencing any such Senior Indebtedness may have been issued,
ratably as aforesaid, for application to the payment of all Senior Indebtedness remaining unpaid until all such Senior Indebtedness shall
have been paid in full, after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior
Indebtedness.
Notwithstanding the foregoing,
at any time after the 123rd day following the date of deposit of cash or Eligible Obligations pursuant to Section 7.01 (provided
all conditions set out in such Section shall have been satisfied), the funds so deposited and any interest thereon will not be
subject to any rights of holders of Senior Indebtedness, including, without limitation, those arising under this Article; provided
that no event described in clauses (e) and (f) of Section 8.01 with respect to the Company has occurred
during such 123-day period.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
For purposes of this Article only,
the words “cash, property or securities” shall not be deemed to include shares of beneficial interest of the Company as reorganized
or readjusted, or securities of the Company or any other corporation provided for by a plan of reorganization or readjustment that are
subordinate in right of payment to all Senior Indebtedness that may at the time be outstanding to the same extent as, or to a greater
extent than, the Debt Securities are so subordinated as provided in this Article. The consolidation of the Company with, or the merger
of the Company into, another corporation or the liquidation or dissolution of the Company following the conveyance or transfer of its
property as an entirety, or substantially as an entirety, to another corporation upon the terms and conditions provided for in Article XI
hereof shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section 15.02
if such other corporation shall, as a part of such consolidation, merger, conveyance or transfer, comply with the conditions stated in
Article XI hereof. Nothing in Section 15.01 or in this Section 15.02 shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 9.07.
Section 15.03 Disputes
with Holders of Certain Senior Indebtedness.
Any failure by the Company
to make any payment on or perform any other obligation in respect of Senior Indebtedness, other than any indebtedness incurred by the
Company or assumed or guaranteed, directly or indirectly, by the Company for money borrowed (or any deferral, renewal, extension or refunding
thereof) or any other obligation as to which the provisions of this Section shall have been waived by the Company in the instrument
or instruments by which the Company incurred, assumed, guaranteed or otherwise created such indebtedness or obligation, shall not be deemed
a default under clause (b) of Section 15.02 if (i) the Company shall be disputing its obligation to make such
payment or perform such obligation and (ii) either (1) no final judgment relating to such dispute shall have been issued against
the Company that is in full force and effect and is not subject to further review, including a judgment that has become final by reason
of the expiration of the time within which a party may seek further appeal or review, or (2) in the event that a judgment that is
subject to further review or appeal has been issued, the Company shall in good faith be prosecuting an appeal or other proceeding for
review and a stay of execution shall have been obtained pending such appeal or review.
Section 15.04 Subrogation.
Senior Indebtedness shall
not be deemed to have been paid in full unless the holders thereof shall have received cash (or securities or other property satisfactory
to such holders) in full payment of such Senior Indebtedness then outstanding. Upon the payment in full of all Senior Indebtedness, the
Holders of the Debt Securities shall be subrogated to the rights of the holders of Senior Indebtedness to receive any further payments
or distributions of cash, property or securities of the Company applicable to the holders of the Senior Indebtedness until all amounts
owing on the Debt Securities shall be paid in full; and such payments or distributions of cash, property or securities received by the
Holders of the Debt Securities, by reason of such subrogation, which otherwise would be paid or distributed to the holders of such Senior
Indebtedness shall, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders, be deemed to
be a payment by the Company to or on account of Senior Indebtedness, it being understood that the provisions of this Article are
and are intended solely for the purpose of defining the relative rights of the Holders, on the one hand, and the holders of the Senior
Indebtedness, on the other hand.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
If any payment or distribution
to which the Holders of the Debt Securities would otherwise have been entitled but for the provisions of this Article shall have
been applied, pursuant to the provisions of this Article, to the payment of amounts payable under Senior Indebtedness, then and in such
case, the Holders of the Debt Securities shall be entitled to receive from the holders of such Senior Indebtedness any payments or distributions
received by such holders of Senior Indebtedness in excess of the amount required to make payment to the extent required by Section 15.02,
or provision for payment, of such Senior Indebtedness.
Section 15.05 Unconditional
Obligation of the Company.
Nothing contained in this
Article or elsewhere in this Indenture or in the Debt Securities is intended to or shall impair, as among the Company, its creditors
other than the holders of Senior Indebtedness and the Holders, the obligation of the Company, which is absolute and unconditional, to
pay to the Holders the principal of and interest on the Debt Securities as and when the same shall become due and payable in accordance
with their terms, or is intended to or shall affect the relative rights of the Holders and creditors of the Company other than the holders
of Senior Indebtedness, nor shall anything herein or therein prevent the Trustee or any Holder from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article of the holders of
Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy.
Upon any payment or distribution
of assets or securities of the Company referred to in this Article, the Trustee and the Holders shall be entitled to rely upon any order
or decree of a court of competent jurisdiction in which such bankruptcy, dissolution, winding up, liquidation or reorganization proceedings
are pending or upon a certificate of the receiver, trustee in bankruptcy, liquidating trustee agent or other person making such payment
or distribution delivered to the Trustee or to the Holders for the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon, and all other facts pertinent thereto or to this Article.
Section 15.06 Priority
of Senior Indebtedness Upon Maturity.
Upon the maturity of the principal
of any Senior Indebtedness by lapse of time, acceleration or otherwise, all matured principal of Senior Indebtedness and interest and
premium, if any, thereon shall first be paid in full before any payment of principal or premium or interest, if any, is made upon the
Debt Securities or before any Debt Securities can be acquired by the Company or any sinking fund payment is made with respect to the Debt
Securities (except that required sinking fund payments may be reduced by Debt Securities acquired before such maturity of such Senior
Indebtedness).
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 15.07 Trustee
as Holder of Senior Indebtedness.
The Trustee shall be entitled
to all rights set forth in this Article with respect to any Senior Indebtedness at any time held by it, to the same extent as any
other holder of Senior Indebtedness. Nothing in this Article shall deprive the Trustee of any of its rights as such holder.
Section 15.08 Notice
to Trustee to Effectuate Subordination.
The Company shall give prompt
written notice to the Trustee of any fact known to the Company that would prohibit the making of any payment to or by the Trustee in respect
of the Debt Securities pursuant to the provisions of this Article. Notwithstanding the provisions of this Article or any other provision
of the Indenture, the Trustee shall not be charged with knowledge of the existence of any facts that would prohibit the making of any
payment of moneys to or by the Trustee unless and until the Trustee shall have received written notice thereof from the Company, from
a Holder or from a holder of any Senior Indebtedness or from any representative or representatives of such holder and, prior to the receipt
of any such written notice, the Trustee shall be entitled, subject to Section 9.01, in all respects to assume that no such
facts exist; provided, however, that, if prior to the fifth Business Day preceding the date upon which by the terms hereof
any such moneys may become payable for any purpose, or in the event of the execution of an instrument pursuant to Section 7.02
acknowledging satisfaction and discharge of this Indenture, then if prior to the second Business Day preceding the date of such execution,
the Trustee shall not have received with respect to such moneys the notice provided for in this Section, then, anything herein contained
to the contrary notwithstanding, the Trustee may, in its discretion, receive such moneys and/or apply the same to the purpose for which
they were received, and shall not be affected by any notice to the contrary, which may be received by it on or after such date; provided,
however, that no such application shall affect the obligations under this Article of the persons receiving such moneys from
the Trustee.
Section 15.09 Modification,
Extension, Etc. of Senior Indebtedness.
The holders of Senior Indebtedness
may, without affecting in any manner the subordination of the payment of the principal of and premium, if any, and interest, if any, on
the Debt Securities, at any time or from time to time and in their absolute discretion, agree with the Company to change the manner, place
or terms of payment, change or extend the time of payment of, or renew or alter, any Senior Indebtedness, or amend or supplement any instrument
pursuant to which any Senior Indebtedness is issued, or exercise or refrain from exercising any other of their rights under the Senior
Indebtedness, including, without limitation, the waiver of default thereunder, all without notice to or assent from the Holders or the
Trustee.
Section 15.10 Trustee
Has No Fiduciary Duty to Holders of Senior Indebtedness.
With respect to the holders
of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants and objectives as are specifically
set forth in this Article, and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be read into
this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness, and
shall not be liable to any such holders if it shall mistakenly pay over or deliver to the Holders or the Company or any other Person,
cash, property or securities to which any holders of Senior Indebtedness shall be entitled by virtue of this Article or otherwise.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
Section 15.11 Paying
Agents other than the Trustee.
In case at any time any Paying
Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term “Trustee” as
used in this Article shall in such case (unless the context shall otherwise require) be construed as extending to and including such
Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in addition
to or in place of the Trustee; provided, however, that Sections 15.07, 15.08 and 15.10 shall not
apply to the Company if it acts as Paying Agent.
Section 15.12 Rights
of Holders of Senior Indebtedness Not Impaired.
No right of any present or
future holder of Senior Indebtedness to enforce the subordination herein shall at any time or in any way be prejudiced or impaired by
any act or failure to act on the part of the Company or by any noncompliance by the Company with the terms, provisions and covenants of
this Indenture, regardless of any knowledge thereof any such holder may have or be otherwise charged with.
Section 15.13 This
Article Not To Prevent Events of Default.
The failure to make a payment
on account of principal of, or premium, if any, or interest on the Debt Securities by reason of any provision of this Article shall
not be construed as preventing the occurrence of an Event of Default specified in paragraph (a) or (b) of Section 8.01.
Section 15.14 Effect
of Subordination Provisions; Termination.
Notwithstanding anything contained
herein to the contrary, other than as provided in the immediately succeeding sentence, all the provisions of this Indenture shall be subject
to the provisions of this Article, so far as the same may be applicable thereto.
Notwithstanding anything contained
herein to the contrary, the provisions of this Article XV shall be of no further effect, and the Debt Securities shall no
longer be subordinated in right of payment to the prior payment of Senior Indebtedness, if the Company shall have delivered to the Trustee
a notice to such effect. Any such notice delivered by the Company shall not be deemed to be a supplemental indenture for purposes of Article XII.]*
This instrument may be executed
in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.
| * | Bracketed language throughout this Indenture will be inserted
in the Indenture in the event that subordinated Debt Securities are issued. |
IN WITNESS WHEREOF, the parties
hereto have caused this Indenture to be duly executed, and their respective corporate seals to be hereunto affixed and attested, all as
of the day and year first above written.
| |
ALPINE INCOME PROPERTY TRUST, INC. |
| |
|
| |
By: |
|
| |
Name: |
|
| |
Title: |
|
[SEAL]
[ATTEST]
[Trustee’s signature page follows.]
| |
|
, Trustee |
| |
|
| |
By: |
|
| |
|
Authorized Representative |
[SEAL]
[ATTEST]
| |
|
| Authorized Representative |
|
Exhibit 5.1
September 27, 2023
|
Alpine Income Property Trust, Inc.
369 N. New York Ave., Suite 201
Winter Park, Florida 32789 |
|
| |
|
| Re: |
Registration Statement on Form S-3 |
|
Ladies and Gentlemen:
We have acted as special counsel
to Alpine Income Property Trust, Inc., a Maryland corporation (the “Company”), in connection with the Registration
Statement on Form S-3 (the “Registration Statement”) of the Company filed with the Securities and Exchange Commission
(the “Commission”) on the date hereof pursuant to the Securities Act of 1933, as amended (the “Securities
Act”), in connection with the registration of (i) shares of common stock, par value $0.01 per share, of the Company (the
“Common Stock”), (ii) shares of preferred stock, par value $0.01 per share, of the Company (the “Preferred
Stock”), (iii) debt securities of the Company (the “Debt Securities”), (iv) warrants to purchase
Common Stock or Preferred Stock (the “Warrants”), (v) stockholder rights to purchase Common Stock or Preferred
Stock (the “Rights”) and (vi) units comprising two or more of the preceding securities of the Company (the “Units,”
and, together with the Common Stock, Preferred Stock, Debt Securities, Warrants and Rights, the “Offered Securities”),
having an aggregate maximum offering price of $350,000,000. All capitalized terms that are not defined herein have the meanings assigned
to them in the Registration Statement.
The Debt Securities will be
issued pursuant to one or more indentures between the Company and trustees yet to be named in the form of the Indenture filed as Exhibit 4.5
to the Registration Statement (collectively, the “Indentures”).
As special counsel for the
Company, in addition to participating in the preparation of the Registration Statement, we have examined the following documents:
(a) the
Registration Statement, including the form of Indenture filed as Exhibit 4.5 to the Registration Statement;
(b) the
resolutions adopted by the Board of Directors of the Company (the “Board”) relating to, among other things, the preparation
and filing of the Registration Statement and the due authorization of the Offered Securities, certified on the date hereof by an officer
of the Company; and
(c) an
executed copy of the certificate of the Secretary of the Company, dated the date hereof, as to certain factual matters.
|
Vinson & Elkins LLP Attorneys at Law
Austin Dallas Dubai Houston London Los Angeles
New York
Richmond San Francisco Tokyo Washington
|
901 East Byrd Street, Suite 1500
Richmond, VA 23219
Tel +1.804.327.6300 Fax +1.804.327.6301 velaw.com |
 |
Alpine Income Property Trust, Inc. September 27, 2023 Page 1 |
For purposes of the opinion
expressed below, we have assumed (i) the authenticity of all documents submitted to us as originals, (ii) the conformity to
the originals of all documents submitted as certified or photostatic copies and the authenticity of the originals thereof, (iii) the
legal capacity of natural persons, (iv) the genuineness of all signatures and (v) the due authorization, execution and delivery
of all documents by all parties and the validity and binding effect and, with the exception of the Indentures, enforceability thereof
upon the Company. We have also assumed that at the time of execution, authentication, issuance and delivery of the Debt Securities, the
Indentures will be valid and legally binding obligations of the applicable trustees thereunder.
As to factual matters, we
have relied upon representations included in certificates of officers of the Company and in certificates of public officials.
Based upon the foregoing and
such other information and documents as we have considered necessary for the purposes hereof, we are of the opinion that:
1. With
respect to the Debt Securities, when (a) the applicable Indenture relating to the Debt Securities has been duly authorized and validly
executed and delivered by the Company, (b) the terms of the Debt Securities and their issuance and sale have been duly established
in conformity with the applicable Indenture so as not to violate any applicable law or result in a default under or breach of any agreement
or instrument binding upon the Company, if applicable, and so as to comply with any requirement or restriction imposed by any court or
governmental body having jurisdiction over the Company, if applicable, and (c) the Debt Securities have been duly executed, authenticated
in accordance with the applicable Indenture and issued and sold as contemplated by the Registration Statement (as declared effective by
the Commission), the prospectus contained therein and any applicable prospectus supplement, and if (i) all the foregoing actions
are taken pursuant to the authority granted by the Board, or a duly authorized committee thereof, and (ii) the Company has received
full payment therefor in accordance with the authorization of the Board, or a duly authorized committee thereof, then the Debt Securities
will constitute binding obligations of the Company, enforceable against the Company in accordance with the terms of such Debt Securities,
except as the enforceability thereof may be limited or otherwise affected by bankruptcy, insolvency, reorganization, moratorium, fraudulent
transfer and other laws affecting the rights of creditors generally and principles of equity, whether considered at law or equity.
In expressing the opinion
set forth above, we have assumed that (i) the applicable trustee will have been qualified under the Trust Indenture Act of 1939,
as amended, and a Statement of Eligibility of the Trustee on Form T-1 will have been properly filed with the Commission and (ii) each
of the applicable Debt Securities and Indentures will be governed by and construed in accordance with the laws of the State of New York.
We do not purport to express
an opinion on any laws other than the laws of the State of New York.
|
Alpine Income Property Trust, Inc. September 27, 2023 Page 3 |
This opinion letter is being
furnished to you for submission to the Commission as an exhibit to the Registration Statement in accordance with the requirements of Item
16 of Form S-3 and Item 601(b)(5)(i) of Regulation S-K promulgated under the Securities Act. We consent to the filing of this
opinion letter as Exhibit 5.1 to the Registration Statement and to the reference to this firm under the heading “Legal Matters”
therein. In giving this consent, we do not admit that we are within the category of persons whose consent is required by Section 7
of the Securities Act or the rules and regulations promulgated thereunder by the Commission.
The opinion expressed in this
letter is limited to the matters set forth in this letter, and no other opinions should be inferred beyond the matters expressly stated
in this letter. This opinion letter speaks only as of its date and we do not undertake to advise you of any changes in the opinion expressed
herein from matters that might hereafter arise or be brought to our attention.
| |
Very truly yours, |
| |
|
| |
/s/ Vinson & Elkins L.L.P. |
Exhibit 5.2
September 27, 2023
Alpine Income Property Trust, Inc.
369 N. New York Ave., Suite 201
Winter Park, Florida 32789
| Re: | Registration Statement on Form S-3 |
Ladies and Gentlemen:
We have served as Maryland counsel to Alpine Income
Property Trust, Inc., a Maryland corporation (the “Company”), in connection with certain matters of Maryland law arising out
of the registration by the Company of the following securities of the Company having a maximum aggregate offering price equal to $350,000,000
(collectively, the “Securities”): (i) shares of common stock, $0.01 par value per share (“Common Stock”); (ii)
shares of preferred stock, $0.01 par value per share (“Preferred Stock”); (iii) debt securities (“Debt Securities”);
(iv) warrants to purchase Common Stock or Preferred Stock (“Warrants”); (v) rights to purchase Common Stock or Preferred Stock
(“Rights”); and (vi) units representing an interest in two or more of the foregoing classes of Securities (“Units”).
The Securities are covered by the Registration Statement on Form S-3 (the “Registration Statement”), filed by the Company
with the U.S. Securities and Exchange Commission (the “Commission”) on or about the date hereof under the Securities Act of
1933, as amended (the “1933 Act”).
In connection with our representation of the Company,
and as a basis for the opinion hereinafter set forth, we have examined originals, or copies certified or otherwise identified to our satisfaction,
of the following documents (hereinafter collectively referred to as the “Documents”):
1. The Registration
Statement and the related form of prospectus included therein, in the form in which it was filed with the Commission under the 1933 Act;
2. The charter
of the Company (the “Charter”), certified by the State Department of Assessments and Taxation of Maryland (the “SDAT”);
3. The Third
Amended and Restated Bylaws of the Company, certified as of the date hereof by an officer of the Company;
4. A certificate
of the SDAT as to the good standing of the Company, dated as of a recent date;
5. Resolutions
adopted by the Board of Directors of the Company relating to, among other matters, the registration of the Securities (the “Resolutions”),
certified as of the date hereof by an officer of the Company;
Alpine Income Property Trust,
Inc.
September 27, 2023
Page 2
6. A certificate
executed by an officer of the Company, dated as of the date hereof; and
7. Such
other documents and matters as we have deemed necessary or appropriate to express the opinion set forth below, subject to the assumptions,
limitations and qualifications stated herein.
In expressing the opinion set forth below, we have
assumed the following:
1. Each
individual executing any of the Documents, whether on behalf of such individual or another person, is legally competent to do so.
2. Each
individual executing any of the Documents on behalf of a party (other than the Company) is duly authorized to do so.
3. Each
of the parties (other than the Company) executing any of the Documents has duly and validly executed and delivered each of the Documents
to which such party is a signatory, and such party’s obligations set forth therein are legal, valid and binding and are enforceable
in accordance with all stated terms.
4. All Documents submitted to us as originals are authentic. The form and content of all Documents submitted to us as unexecuted drafts
do not differ in any respect relevant to this opinion from the form and content of such Documents as executed and delivered. All Documents
submitted to us as certified or photostatic copies conform to the original documents. All signatures on all Documents are genuine. All
public records reviewed or relied upon by us or on our behalf are true and complete. All representations, warranties, statements and information
contained in the Documents are true and complete. There has been no oral or written modification of or amendment to any of the Documents,
and there has been no waiver of any provision of any of the Documents, by action or omission of the parties or otherwise.
5. Upon
the issuance of any Securities that are shares of Common Stock (“Common Securities”), including Common Securities that may
be issued in respect of any other Securities, the total number of shares of Common Stock issued and outstanding will not exceed the total
number of shares of Common Stock that the Company is then authorized to issue under the Charter.
6. Upon
the issuance of any Securities that are Preferred Stock (“Preferred Securities”), including Preferred Securities that
may be issued in respect of any other Securities, the total number of shares of Preferred Stock issued and outstanding and the total
number of issued and outstanding shares of the applicable class or series of Preferred Stock designated pursuant to the Charter will
not exceed the total number of shares of Preferred Stock or the number of shares of such class or series of Preferred Stock that the
Company is then authorized to issue under the Charter.
Alpine Income Property Trust,
Inc.
September 27, 2023
Page 3
7. Any Securities convertible into or exchangeable for other Securities will be duly converted or exchanged in accordance with their
terms.
8. The issuance of, and certain terms of, the Securities will be approved by the Board, or a duly authorized committee thereof, in
accordance with the Maryland General Corporation Law, the Charter, the Bylaws and the Registration Statement (with such approvals referred
to hereinafter as the “Corporate Proceedings”) prior to the issuance thereof.
9. Articles Supplementary creating and designating the number of shares and terms of any class or series of Preferred Securities to
be issued by the Company will be filed with and accepted for record by the SDAT prior to the issuance of such Preferred Securities.
10. None
of the Securities will be issued, sold or transferred in violation of the restrictions on ownership and transfer set forth in Article
VII of the Charter.
Based upon the foregoing, and subject to the assumptions,
limitations and qualifications stated herein, it is our opinion that:
1. The Company is a corporation duly incorporated and existing under and by virtue of the laws of the State of Maryland and is in good standing
with the SDAT.
2. Upon
the completion of all Corporate Proceedings relating to the Common Securities, the issuance of the Common Securities will be duly authorized
and, when and if issued and delivered against payment therefor and otherwise in accordance with the Corporate Proceedings, the Common
Securities will be validly issued, fully paid and nonassessable.
3. Upon
the completion of all Corporate Proceedings relating to the Preferred Securities, the issuance of the Preferred Securities will be duly
authorized and, when and if issued and delivered against payment therefor and otherwise in accordance with the Corporate Proceedings,
the Preferred Securities will be validly issued, fully paid and nonassessable.
4. Upon
the completion of all Corporate Proceedings relating to the Debt Securities, the issuance of the Debt Securities will be duly authorized.
5. Upon
the completion of all Corporate Proceedings relating to the Warrants, the issuance of the Warrants will be duly authorized.
Alpine Income Property Trust,
Inc.
September 27, 2023
Page 4
6. Upon
the completion of all Corporate Proceedings relating to the Rights, the issuance of the Rights will be duly authorized.
7. Upon
the completion of all Corporate Proceedings relating to the Units, the issuance of the Units will be duly authorized.
The foregoing opinion is limited to the laws of the
State of Maryland and we do not express any opinion herein concerning United States federal law or the laws of any other jurisdiction.
We express no opinion as to the applicability or effect of federal or state securities laws, including the securities laws of the State
of Maryland, or as to federal or state laws regarding fraudulent transfers. To the extent that any matter as to which our opinion is expressed
herein would be governed by the laws of any jurisdiction other than the State of Maryland, we do not express any opinion on such matter.
The opinion expressed herein is subject to the effect of judicial decisions which may permit the introduction of parol evidence to modify
the terms or the interpretation of agreements.
The opinion expressed herein is limited to the matters
specifically set forth herein and no other opinion shall be inferred beyond the matters expressly stated. We assume no obligation to supplement
this opinion if any applicable law changes after the date hereof or if we become aware of any fact that might change the opinion expressed
herein after the date hereof.
This opinion is being furnished to you for submission
to the Commission as an exhibit to the Registration Statement. We hereby consent to the filing of this opinion as an exhibit to the Registration
Statement and to the use of the name of our firm therein. In giving this consent, we do not admit that we are within the category of persons
whose consent is required by Section 7 of the 1933 Act.
| |
Very truly yours, |
| |
|
| |
/s/ Venable LLP |
Exhibit 8.1
September 27, 2023
Alpine Income Property Trust, Inc.
369 N. New York Avenue, Suite 201
Winter Park, FL 32789
| Re: | Alpine Income Property Trust, Inc. Qualification as Real Estate Investment Trust |
Ladies and Gentlemen:
We
have acted as counsel to Alpine Income Property Trust, Inc., a Maryland corporation (the “Company”), in
connection with the preparation of a Registration Statement on Form S-3, filed with the Securities and Exchange Commission (the “SEC”)
on the date hereof (the “Registration Statement”), with respect to the offer and sale from time-to-time of shares of
common stock, par value $0.01 per share, of the Company (“Common Stock”), shares of preferred stock, par value $0.01
per share, of the Company (“Preferred Stock”), debt securities, warrants entitling the holders to purchase Common Stock
or Preferred Stock, rights entitling the holders to purchase Common Stock or Preferred Stock and units comprising two or more of the preceding
securities of the Company. You have requested our opinion regarding certain U.S. federal income tax matters.
In connection with the opinions rendered in (a) and
(b) below (together, the “Tax Opinion”), we have examined the following:
| 1. |
the Registration Statement and the prospectus
(the “Prospectus”) filed as part of the Registration Statement;
|
| 2. |
the Company’s Articles of Incorporation,
filed with the Department of Assessments and Taxation of the State of Maryland (“SDAT”) and effective as of August 19,
2019 and the Company’s Articles of Amendment and Restatement filed with SDAT and effective as of November 21, 2019;
|
| 3. |
the Company’s Amended and Restated Bylaws, effective as of November 18, 2019; |
| 4. |
the Agreement of Limited Partnership of the Operating Partnership, effective as of August 20, 2019, and the Amended and Restated Agreement of Limited Partnership of the Operating Partnership, effective as of November 26, 2019; and |
| |
|
| 5. |
such other documents as we have deemed necessary or appropriate for purposes of this opinion. |
|
Vinson & Elkins LLP Attorneys at Law
Austin Dallas Dubai Houston London Los Angeles
New York
Richmond San Francisco Tokyo Washington |
2200 Pennsylvania Avenue NW, Suite 500 West
Washington, DC 20037-1701
Tel +1.202.639.6500 Fax +1.202.639.6604 velaw.com |
 |
September 27, 2023 Page 2 |
In connection with the opinions rendered below,
we have assumed, with your consent, that:
| 1. |
each of the documents referred to above is authentic,
if an original, or is accurate, if a copy; and has not been amended;
|
| 2. |
during its taxable year ending December 31, 2023, and future taxable years, the Company will operate in a manner that will make the factual representations contained in a certificate, dated the date hereof and executed by a duly appointed officer of the Company (the “Officer’s Certificate”), true for such years; |
| 3. |
the Company will not make any amendments to its organizational documents or the organizational documents of the Operating Partnership after the date of this opinion that would affect the Company’s qualification as a real estate investment trust (a “REIT”) for any taxable year; and |
| 4. |
no action will be taken by the Company or the Operating Partnership after the date hereof that would have the effect of altering the facts upon which the opinions set forth below are based. |
In connection with the opinions rendered below,
we also have relied upon the correctness of the factual representations contained in the Officer’s Certificate. No facts have come
to our attention that would cause us to question the accuracy and completeness of such factual representations.
Based solely on the documents and assumptions
set forth above, the representations set forth in the Officer’s Certificate and the discussion in the Prospectus under the caption
“Material U.S. Federal Income Tax Considerations” (which is incorporated herein by reference), we are of the opinion that:
| |
(a) |
the Company qualified to be taxed as a REIT pursuant to sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), for its taxable years ended December 31, 2019 through December 31, 2022, and the Company’s organization and current and proposed method of operations will enable it to continue to satisfy the requirements for qualification and taxation as a REIT under the Code for its taxable years ending December 31, 2023, and thereafter; and |
| |
(b) |
the descriptions of the law and the legal conclusions in the Prospectus under the caption “Material U.S. Federal Income Tax Considerations” are correct in all material respects. |
We will not review on a continuing basis the Company’s
compliance with the documents or assumptions set forth above, or the factual representations set forth in the Officer’s Certificate.
Accordingly, no assurance can be given that the actual results of the Company’s operations for any given taxable year will satisfy
the requirements for qualification and taxation as a REIT. Although we have made such inquiries and performed such investigations as we
have deemed necessary to fulfill our professional responsibilities as counsel, we have not undertaken an independent investigation of
all of the facts referred to in this letter or the Officer’s Certificate.
|
September 27, 2023 Page 3 |
The foregoing Tax Opinion is based on current
provisions of the Code, the Treasury regulations thereunder (the “Regulations”), published administrative interpretations
thereof, and published court decisions. The Internal Revenue Service has not issued Regulations or administrative interpretations with
respect to various provisions of the Code relating to REIT qualification. No assurance can be given that the law will not change in a
way that will prevent the Company from qualifying as a REIT.
The foregoing Tax Opinion is limited to the U.S.
federal income tax matters addressed herein, and no other opinions are rendered with respect to other U.S. federal tax matters or to any
issues arising under the tax laws of any other country, or any state or locality. We undertake no obligation to update the Tax Opinion
expressed herein after the date of this letter. This opinion letter speaks only as of the date hereof. Except as provided in the next
paragraph, this opinion letter may not be distributed, quoted in whole or in part or otherwise reproduced in any document, or filed with
any governmental agency without our express written consent.
We hereby consent to the filing of this opinion
as an exhibit to the Registration Statement and to the use of our name under the captions “Material U.S. Federal Income Tax Considerations”
and “Legal Matters” in the Prospectus. In giving this consent, we do not admit that we are in the category of persons whose
consent is required by Section 7 of the Securities Act of 1933, as amended, or the rules and regulations promulgated thereunder
by the SEC.
| |
Very truly yours, |
| |
|
| |
/s/ Vinson & Elkins LLP |
| |
|
| |
Vinson & Elkins LLP |
Exhibit 23.1
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We have issued our report
dated February 9, 2023 with respect to the consolidated financial statements of Alpine Income Property Trust, Inc.
included in the Annual Report on Form 10-K for the year ended December 31, 2022, which is incorporated by reference in
this Registration Statement. We consent to the incorporation by reference of the aforementioned report in this Registration
Statement, and to the use of our name as it appears under the caption “Experts.”
/s/ GRANT
THORNTON LLP
Orlando, Florida
September 27, 2023
Exhibit 107
Calculation of Filing Fee Tables
FORM S-3
(Form Type)
Alpine Income Property Trust, Inc.
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered and Carry Forward
Securities
| |
|
Security
Type |
|
Security
Class Title |
|
Fee
Calculation
or Carry
Forward
Rule |
|
|
Amount
Registered |
|
Proposed
Maximum
Offering
Price Per
Unit |
|
|
Maximum
Aggregate
Offering
Price(1)(7)
(8) |
|
|
Fee
Rate |
|
|
Amount of
Registration
Fee(2) |
|
Carry
Forward
Form
Type |
|
Carry
Forward
File
Number |
|
Carry
Forward
Initial
effective
date |
|
Filing Fee
Previously
Paid
In
Connection
with Unsold
Securities to
be Carried
Forward |
|
| Newly Registered Securities |
|
| Fees to Be Paid |
|
Equity |
|
Common Stock(3) |
|
457 |
(o) |
|
|
(1) |
|
|
(2) |
|
|
|
(2) |
|
0.0001102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fees to Be Paid |
|
Equity |
|
Preferred Stock(3) |
|
457 |
(o) |
|
|
(1) |
|
|
(2) |
|
|
|
(2) |
|
0.0001102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fees to Be Paid |
|
Debt |
|
Debt Securities(4) |
|
457 |
(o) |
|
|
(1) |
|
|
(2) |
|
|
|
(2) |
|
0.0001102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fees to Be Paid |
|
Other |
|
Rights(3) |
|
457 |
(o) |
|
|
(1) |
|
|
(2) |
|
|
|
(2) |
|
0.0001102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fees to Be Paid |
|
Other |
|
Warrants(5) |
|
457 |
(o) |
|
|
(1) |
|
|
(2) |
|
|
|
(2) |
|
0.0001102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fees to Be Paid |
|
Other |
|
Units(6) |
|
457 |
(o) |
|
|
(1) |
|
|
(2) |
|
|
|
(2) |
|
0.0001102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fees to Be Paid |
|
Unallocated (Universal) Shelf |
|
- |
|
457 |
(o) |
|
N/A |
|
|
Unallocated (Universal) Shelf |
|
|
$ |
350,000,000 |
|
|
0.0001102 |
|
|
$ |
38,570.00 |
|
|
|
|
|
|
|
|
|
|
| Fees Previously Paid |
|
- |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
| Carry Forward Securities |
|
| Carry Forward Securities |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
- |
|
- |
|
- |
| Total Offering Amounts |
|
|
|
|
|
$ |
350,000,000 |
|
|
0.0001102 |
|
|
$ |
38,570.00 |
|
|
|
|
|
|
|
|
|
|
| Total Fees Previously Paid |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
| Total Fee Offsets |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
25,045.49 |
(9) |
|
|
|
|
|
|
|
|
|
| Net Fee Due |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
13,524.51 |
(9) |
|
|
|
|
|
|
|
|
|
Table 2: Fee Offset Claims and Sources
| | |
Registrant
or
Filer Name | |
Form or
Filing Type | | |
File
Number | | |
Initial
Filing
Date | | |
Filing
Date | | |
Fee
Offset
Claimed | | |
Security
Type
Associated
with Fee
Offset
Claimed | | |
Security
Title
Associated
with Fee
Offset
Claimed | | |
Unsold
Securities
Associated
with Fee
Offset
Claimed | | |
Unsold
Aggregate
Offering
Amount
Associated
with Fee
Offset
Claimed | | |
Fee
Paid with
Fee Offset
Source | |
| Rules 457(b) and
0-11(a)(2) |
| Fee Offset Claims | |
- | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | |
| Fee Offset Sources | |
- | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | | |
- | |
| Rule 457(p) |
| Fee
Offset Claims | |
Alpine Income Property
Trust, Inc. | |
| S-3 | | |
| 333-251057 | | |
| December 1,
2020 | | |
| - | | |
$ | 25,045.49 | (9) | |
| (9 | ) | |
| (9 | ) | |
| (9 | ) | |
$ | 229,564,485 | | |
| - | |
| Fee
Offset Sources | |
Alpine Income Property Trust, Inc. | |
| S-3 | | |
| 333-251057 | | |
| - | | |
| December 1,
2020 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
$ | 25,045.49 | |
| (1) |
Subject to Note 8 below, includes an indeterminate number of securities at indeterminate prices that may be issued from time to time in primary offerings or upon exercise, conversion or exchange of any securities registered hereunder that provide for exercise, conversion or exchange. |
| (2) |
Not specified as to each class of securities to be registered hereunder pursuant to General Instruction II.D. to Form S-3 under the Securities Act of 1933, as amended (the “Securities Act”). The proposed maximum offering price per security will be determined from time to time by the Registrant in connection with the issuance by the Registrant of the securities registered hereunder. |
| (3) |
Subject to Note 8 below, there is being registered hereunder an indeterminate number of shares of common stock or preferred stock, or rights to purchase shares of common stock as may be sold, from time to time separately or as units in combination with other securities registered hereunder. |
| (4) |
Subject to Note 8 below, with respect to debt securities, excluding accrued interest and accrued amortization of discount, if any, to the date of delivery. If any debt securities are issued at an original issue discount, then the offering price shall be in such greater principal amount as shall result in an aggregate price to investors not to exceed $350,000,000. |
| (5) |
Subject to Note 8 below, there is being registered hereunder an indeterminate number of warrants as may be sold, from time to time separately or as units in combination with other securities registered hereunder, representing rights to purchase common stock, preferred stock or debt securities. |
| (6) |
Subject to Note 8 below, there is being registered hereunder an indeterminate number of units. Each unit may consist of a combination of any one or more of the securities being registered hereunder. |
| (7) |
The proposed maximum offering price per security will be determined from time to time by the Registrant in connection with the sale by the Registrant of the securities registered under this registration statement. |
| (8) |
In no event will the aggregate offering price of all securities issued from time to time pursuant to this registration statement exceed $350,000,000. |
| (9) |
The Registrant previously registered $350,000,000 in aggregate offering price of its common stock, par value $0.01 per share, preferred stock, par value $0.01 per share, warrants, rights and units pursuant to the Registration Statement on Form S-3 (No. 333-251057) filed with the SEC on December 1, 2020 and declared effective on December 11, 2020 (the “2020 Registration Statement”), $229,564,485 of which remains unsold (the “Unsold Securities”). Pursuant to Rule 457(p) under the Securities Act, the Registrant is offsetting the registration fee due under this registration statement by $25,045.49, which represents a portion of the registration fee relating to the Unsold Securities previously paid in connection with the 2020 Registration Statement (based on the filing fee rate in effect at the time of the filing of the 2020 Registration Statement). A filing fee of $13,524.51 with respect to the newly registered securities hereunder, which represents the total registration fee adjusted for the total fee offset with respect to the Unsold Securities, is being paid herewith. Pursuant to Rule 457(p) under the Securities Act, the offering of the Unsold Securities under the 2020 Registration Statement is terminated as of the filing of this registration statement. |
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