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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 12, 2024
Safehold Inc.
(Exact name of registrant as specified in its
charter)
Maryland |
|
001-15371 |
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95-6881527 |
(State
or other jurisdiction of
incorporation) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification Number) |
1114 Avenue of the Americas |
|
39th Floor |
|
New York, NY |
10036 |
(Address
of principal executive offices) |
(Zip
Code) |
Registrant’s telephone number,
including area code: (212) 930-9400
N/A
(Former name or former address, if changed since
last report.)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading Symbol(s) |
|
Name
of each exchange on which registered |
Common stock, $0.01 par value |
|
SAFE |
|
NYSE |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
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 13(a) of the Exchange Act. ☐
| Item 1.01. | Entry into a Material Definitive
Agreement. |
The information set forth in Item 2.03 of this Current Report on Form
8-K is incorporated by reference into this Item 1.01.
| Item 2.03. | Creation of a Direct Financial Obligation
or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
On November 14, 2024, Safehold GL Holdings LLC
(the “Issuer”), a Delaware limited liability company and subsidiary of Safehold Inc. (the “Guarantor” or the “Company”),
completed an underwritten public offering of $400,000,000 aggregate principal amount of its 5.650% Senior Notes due 2035 (the “Notes”).
The Notes are fully and unconditionally guaranteed
by the Guarantor (the “Guarantee”). The terms of the Notes are governed by an indenture, dated as of May 7, 2021 (the “Base
Indenture”), by and among the Issuer (then known as Safehold Operating Partnership LP), Safehold Inc. and U.S. Bank National Association,
as trustee, as supplemented by a third supplemental indenture, dated as of March 31, 2023 (the “Third Supplemental Indenture), by
and among the Issuer, the Guarantor (then known as iStar Inc., as successor in interest to Safehold Inc.) and U.S. Bank Trust Company,
National Association (as successor in interest to U.S. Bank National Association), as trustee (the “Trustee”), as further
supplemented by a fifth supplemental indenture, dated as of November 14, 2024 (the “Fifth Supplemental Indenture” and, together
with the Base Indenture and Third Supplemental Indenture, the “Indenture”), by and among the Issuer, the Guarantor and the
Trustee. The Indenture contains various restrictive covenants, including requirements to maintain a certain percentage of total unencumbered
assets by the Issuer and limit the Issuer, the Company and their subsidiaries’ ability to incur secured indebtedness. The Base Indenture
and Third Supplemental Indenture were included as Exhibit 4.2 and Exhibit 4.5, respectively, to the Guarantor’s 8-K filed on April
4, 2023, and are incorporated herein by reference. A copy of the Fifth Supplemental Indenture, including the form of Notes and the Guarantee,
the terms of which are incorporated herein by reference, is attached as Exhibit 4.1 to this Current Report on Form 8-K.
The purchase price paid by the underwriters for the Notes was 98.162%
of the principal amount thereof. The Notes are the Issuer’s senior unsecured obligations and rank equally in right of payment with
all of the Issuer’s other existing and future senior unsecured indebtedness. However, the Notes are effectively subordinated in
right of payment to all of the Issuer’s existing and future mortgage indebtedness and other secured indebtedness (to the extent
of the collateral securing the same) and to all existing and future indebtedness and other liabilities, whether secured or unsecured,
of the Issuer’s subsidiaries and of any entity the Issuer accounts for using the equity method of accounting and to all preferred
equity not owned by the Issuer, if any, in its subsidiaries and of any entity the Issuer accounts for using the equity method of accounting.
The Notes bear interest at 5.650% per annum. Interest is payable on January 15 and July 15 of each year, beginning July 15, 2025, until
the maturity date of January 15, 2035.
The Issuer may redeem the Notes in whole at any time or in part from
time to time, at the Issuer’s option and sole discretion, at a redemption price equal to the greater of:
| · | 100% of the principal amount of the Notes being redeemed; and |
| · | a make-whole premium calculated in accordance with the Indenture, |
plus, in each case, accrued and unpaid interest thereon to, but not
including, the applicable redemption date.
Notwithstanding the foregoing, on or after October 15, 2034 (three
months prior to the maturity date of the Notes), the redemption price will be equal to 100% of the principal amount of the Notes being
redeemed, plus accrued and unpaid interest thereon to, but not including, the applicable redemption date.
Certain events are considered events of default, which may result in
the accelerated maturity of the Notes, including:
| · | default for 30 days in the payment of any installment of interest under the Notes; |
| · | default in the payment of the principal amount or redemption price due with respect to the Notes,
when the same becomes due and payable; |
| · | failure by the Issuer or the Guarantor to comply with any of the Issuer’s or the
Guarantor’s respective other agreements in the Notes, the Guarantee or the Indenture with respect to the Notes upon receipt by
the Issuer of notice of such default by the Trustee or by holders of not less than 25% in principal amount of the Notes then
outstanding and our failure to cure (or obtain a waiver of) such default within 90 days after it receives such notice; |
| · | failure to pay any debt (other than non-recourse debt) for monies borrowed
by the Issuer, the Guarantor or any of their respective Significant Subsidiaries (as defined in the Indenture) in an outstanding principal
amount in excess of the payment “cross-default” in the Issuer’s primary credit facility at final maturity or upon acceleration
after the expiration of any applicable grace period, which debt (other than non-recourse debt) is, or has become, the primary obligation
of the Issuer or the Guarantor and is not discharged, or such default in payment or acceleration is not cured or rescinded, within 60
days after written notice to the Issuer from the Trustee (or to the Issuer and the Trustee from holders of at least 25% in principal
amount of the outstanding Notes); |
| · | the Guarantee of the Notes ceases to be in full force and effect or is declared null and void in a
judicial proceeding or the Guarantor denies or disaffirms its obligations under the indenture or its Guarantee; |
| · | certain vents in bankruptcy, insolvency or reorganization, or court appointment of a receiver,
liquidator or Trustee of the Issuer, Guarantor, or any Significant Subsidiary or all or substantially all of their respective
property; |
The descriptions of the Indenture and the Fourth Supplemental Indenture
in this Current Report on Form 8-K are summaries and are qualified in their entirety by the terms of the Indenture and the Fourth Supplemental
Indenture, respectively.
| Item 7.01. | Regulation FD Disclosure. |
On November 12, 2024, the Company issued a press
release, on behalf of the Issuer, announcing the pricing of the Notes, which priced at 98.812%. A copy of the press release is attached
as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Item 7.01, including Exhibit
99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this
Item 7.01 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933,
as amended (the “Securities Act”), unless it is specifically incorporated by reference therein.
On November 12, 2024, the Company and the Issuer
entered into an underwriting agreement (the “Underwriting Agreement”) with J.P. Morgan Securities LLC, BofA Securities, Inc.,
Goldman Sachs & Co. LLC and Truist Securities, Inc. with respect to offering of the Notes, which will be fully and unconditionally
guaranteed by the Company. The closing of the sale of the Notes occurred on November 14, 2024. A copy of the Underwriting Agreement is
attached as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The Notes were offered pursuant to an effective
shelf registration statement filed with the Securities and Exchange Commission (the “SEC”) on April 4, 2023 (Registration
Nos. 333-271113 and 333-271113-01), a base prospectus, dated April 4, 2023, and a prospectus supplement, dated November 12, 2024, filed
with the SEC pursuant to Rule 424(b) under the Securities Act.
The Issuer intends to use the net proceeds from
the offering for general corporate purposes, which may include repaying borrowings under its unsecured revolving credit facility, making
additional investments in ground leases, and providing for working capital and funding obligations under existing commitments.
The description of the Underwriting Agreement in this Current Report
on Form 8-K is a summary and is qualified in its entirety by the terms of the Underwriting Agreement.
Forward-Looking Statements
Certain statements in this Current Report on Form 8-K, including Exhibit
99.1 hereto, contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations,
forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking
statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. Forward-looking statements involve numerous risks and uncertainties and you should not
rely on them as predictions of future events. In some cases, you can identify forward-looking statements by the use of forward-looking
terminology such as “believe,” “project,” “expect,” “anticipate,” “estimate,”
“intend,” “strategy,” “plan,” “may,” “should,” “will,” “would,”
“will be,” “seek,” “approximately,” “pro forma,” “contemplate,” “aim,”
“continue,” 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. While forward-looking statements reflect the Company’s good
faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of the factors that
could cause the Company’s future results to differ materially from any forward-looking statements, see the reports and other filings
by the Company with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as
the other information set forth in the Company’s other filings under the Exchange Act. You should not place undue reliance on any
forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking
statements). The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying
assumptions or factors, of new information, data or methods, future events or other changes.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
Exhibit No. |
|
Description |
|
|
|
Exhibit 1.1 |
|
Underwriting Agreement, dated November 12, 2024, among Safehold Inc., Safehold GL Holdings LLC and J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, and Truist Securities, Inc., as representatives of the several underwriters named therein. |
|
|
|
Exhibit 4.1 |
|
Fifth Supplemental Indenture, dated as of November 14, 2024, among Safehold GL Holdings LLC, as issuer, Safehold Inc., as guarantor, and U.S. Bank Trust Company, National Association, as trustee, including the form of the Notes and the Guarantee. |
|
|
|
Exhibit 5.1 |
|
Opinion of Latham & Watkins LLP. |
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|
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Exhibit 5.2 |
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Opinion of Venable LLP. |
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Exhibit 23.1 |
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Consent of Latham & Watkins LLP (included in Exhibit 5.1). |
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|
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Exhibit 23.2 |
|
Consent of Venable LLP (included in Exhibit 5.2). |
|
|
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Exhibit 99.1 |
|
Press Release |
|
|
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Exhibit 104 |
|
Cover Page Interactive File (the cover page tags are embedded with the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
|
|
Safehold Inc. |
|
|
|
|
Date: |
November 14, 2024 |
By: |
/s/ Brett Asnas |
|
|
|
Brett Asnas |
|
|
|
Chief Financial Officer |
Exhibit 1.1
SAFEHOLD
GL HOLDINGS LLC
(a Delaware limited liability company)
5.650% Senior Notes due 2035
UNDERWRITING AGREEMENT
Dated: November 12, 2024
SAFEHOLD
GL HOLDINGS LLC
(a Delaware limited liability company)
5.650% Senior Notes due 2035
UNDERWRITING AGREEMENT
November 12, 2024
J.P. Morgan
Securities LLC
383 Madison
Avenue
New York, New
York 10179
BofA Securities, Inc.
One Bryant Park
New York, New York 10036
Goldman Sachs & Co. LLC
200 West Street
New York, New York 10282
Truist Securities, Inc.
3333 Peachtree Road, NE
Atlanta, Georgia 30326
as Representatives
of the several Underwriters
Ladies and Gentlemen:
Safehold Inc., a Maryland
corporation (the “Company”), and Safehold GL Holdings LLC, a Delaware limited liability company (the “Operating
Company,” and together with the Company, the “Transaction Entities”), confirm their respective agreements
with J.P. Morgan Securities LLC (“JPMorgan”), BofA Securities, Inc. (“BofAS”), Goldman Sachs &
Co. LLC (“Goldman Sachs”) and Truist Securities, Inc. (“Truist”), and each of the other Underwriters
named in Schedule A hereto (collectively, the “Underwriters,” which term shall also include any underwriter
substituted as hereinafter provided in Section 10 hereof), for whom JPMorgan, BofAS, Goldman Sachs and Truist are acting as representatives
(in such capacity, the “Representatives”), with respect to the sale by the Operating Company and the purchase by the
Underwriters, acting severally and not jointly, of the respective principal amount of 5.650% Senior Notes due 2035 (the “Notes”)
set forth in Schedule A hereto, totaling $400,000,000 principal amount of Notes in the aggregate. The principal, premium,
if any, and interest in respect of the Notes will be guaranteed by the Company (the “Guarantee”, and together with
the Notes, the “Securities”).
The Securities will be issued
pursuant to an Indenture, dated as of May 7, 2021, among Safehold Inc., a Maryland corporation, the Operating Company and U.S. Bank
National Association (the “Base Indenture”), as supplemented by the Third Supplemental Indenture thereto, dated as
of March 31, 2023, among the Company, the Operating Company and U.S. Bank Trust Company, National Association (as successor in interest
to U.S. Bank National Association, the “Trustee”) (the “Third Supplemental Indenture”), as further
supplemented by the Fifth Supplemental Indenture thereto, dated as of November 14, 2024 (collectively with the Base Indenture and
Third Supplemental Indenture, the “Indenture”), among the Company, the Operating Company and the Trustee. The Notes
will be issued in book-entry form in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”),
pursuant to a Blanket Letter of Representations on file with DTC (the “DTC Agreement”), between the Operating Company
and DTC.
This Agreement, the Securities
and the Indenture are referred to herein collectively as the “Operative Documents.”
The Transaction Entities understand
that the Underwriters propose to make a public offering of the Securities as soon as the Representatives deem advisable.
The Company has prepared and
filed with the Securities and Exchange Commission (the “Commission”) an “automatic shelf registration statement”,
as defined under Rule 405 (“Rule 405”) under the Securities Act of 1933, as amended (the “1933 Act”),
on Form S-3 (File No. 333-271113), covering the public offering and sale of certain securities of the Transaction Entities,
including the Securities, under the 1933 Act and the rules and regulations promulgated thereunder (collectively, the “1933
Act Regulations”), which automatic shelf registration statement became effective under Rule 462(e) of the 1933 Act
Regulations (“Rule 462(e)”). The “Registration Statement”, as of any time, means such registration
statement as amended by any post-effective amendments thereto at such time, including the exhibits and any schedules thereto at such time,
the documents incorporated or deemed to be incorporated by reference therein at such time pursuant to Item 12 of Form S-3 under the
1933 Act and the documents otherwise deemed to be a part thereof as of such time pursuant to Rule 430B of the 1933 Act Regulations
(“Rule 430B”); provided, however, that the “Registration Statement” without reference to a time means
such registration statement as amended by any post-effective amendments thereto as of the time of the first contract of sale for the Securities,
which time shall be considered the “new effective date” of the Registration Statement with respect to the Securities within
the meaning of paragraph (f)(2) of Rule 430B (“Rule 430B(f)(2)”), including the exhibits and schedules
thereto at such time, the documents incorporated or deemed to be incorporated by reference therein at such time pursuant to Item 12 of
Form S-3 under the 1933 Act and the documents otherwise deemed to be a part thereof as of such time pursuant to Rule 430B. Each
preliminary prospectus supplement and accompanying base prospectus used in connection with the offering of the Securities, including the
documents incorporated or deemed to be incorporated by reference therein immediately prior to the Applicable Time (as defined below) pursuant
to Item 12 of Form S-3 under the 1933 Act, is referred to herein collectively as a “preliminary prospectus.” Promptly
after execution and delivery of this Agreement, the Company will prepare and file a final prospectus supplement relating to the Securities
in accordance with the provisions of Rule 424(b) of the 1933 Act Regulations (“Rule 424(b)”). The final
prospectus supplement and accompanying base prospectus, in the form first furnished to the Underwriters for use in connection with the
offering of the Securities, including the documents incorporated or deemed to be incorporated by reference therein immediately prior to
the Applicable Time pursuant to Item 12 of Form S-3 under the 1933 Act, is referred to herein collectively as the “Prospectus.”
For purposes of this Agreement, all references to the Registration Statement, any preliminary prospectus, the Prospectus or any amendment
or supplement to any of the foregoing shall be deemed to include the copy filed with the Commission pursuant to its Electronic Data Gathering,
Analysis and Retrieval system or any successor system (“EDGAR”).
As used in this Agreement:
“Applicable
Time” means 3:00 P.M., New York City time, on November 12, 2024 or such other time as agreed by the Company and the Representatives.
“General
Disclosure Package” means each Issuer General Use Free Writing Prospectus (as defined below) issued prior to the Applicable
Time and the most recent preliminary prospectus furnished to the Underwriters and distributed to prospective investors prior to the Applicable
Time.
“Issuer
Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 of the 1933 Act
Regulations (“Rule 433”), including, without limitation, any “free writing prospectus” (as defined
in Rule 405) relating to the Securities that is (i) required to be filed with the Commission by the Company, (ii) a “road
show that is a written communication” within the meaning of Rule 433(d)(8)(i) of the 1933 Act Regulations (“Rule 433(d)(8)(i)”),
whether or not required to be filed with the Commission, or (iii) exempt from filing with the Commission pursuant to Rule 433(d)(5)(i) of
the 1933 Act Regulations because it contains a description of the Securities or of the offering of the Securities that does not reflect
the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form
retained in the Company’s records pursuant to Rule 433(g) of the 1933 Act Regulations.
“Issuer
General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is intended for general distribution to prospective
investors, as specified in Schedule B hereto.
“Issuer
Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is not an Issuer General Use Free Writing
Prospectus.
All references in this Agreement
to financial statements and schedules and other information which is “contained,” “included” or “stated”
(or other references of like import) in the Registration Statement, any preliminary prospectus, the General Disclosure Package or the
Prospectus shall be deemed to include all such financial statements and schedules and other information incorporated or deemed to be incorporated
by reference in the Registration Statement, any preliminary prospectus, the General Disclosure Package or the Prospectus, as the case
may be, prior to the Applicable Time; and all references in this Agreement to amendments or supplements to the Registration Statement,
any preliminary prospectus, the General Disclosure Package or the Prospectus shall be deemed to include the filing of any document under
the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (collectively, the “1934
Act”), incorporated or deemed to be incorporated by reference in the Registration Statement, such preliminary prospectus, the
General Disclosure Package or the Prospectus, as the case may be, at or after the Applicable Time.
SECTION 1. Representations
and Warranties.
(a) Representations
and Warranties by the Transaction Entities. Each of the Transaction Entities, jointly and severally, represents and warrants to each
Underwriter at the date hereof, the Applicable Time and the Closing Time (as defined below), and agrees with each Underwriter, as follows:
(i) Registration
Statement and Prospectus. The Transaction Entities meet the requirements for use of Form S-3 under the 1933 Act. The Registration
Statement is an automatic shelf registration statement under Rule 405 and the Securities have been and remain eligible for registration
by the Company on such automatic shelf registration statement. Each of the Registration Statement and any post-effective amendment thereto
has become effective under the 1933 Act. No stop order suspending the effectiveness of the Registration Statement or any post-effective
amendment thereto has been issued under the 1933 Act, no notice of objection of the Commission to the use of the Registration Statement
or any post-effective amendment thereto pursuant to Rule 401(g)(2) of the 1933 Act Regulations (“Rule 401(g)(2)”)
has been received by the Company, no order preventing or suspending the use of any preliminary prospectus or the Prospectus or any amendment
or supplement thereto has been issued and no proceedings for any of those purposes or pursuant to Section 8A of the 1933 Act have
been instituted or are pending or, to the knowledge of either of the Transaction Entities, contemplated. The Transaction Entities have
complied with each request, if any, from the Commission for additional information. In addition, the Indenture has been duly qualified
under the Trust Indenture Act of 1939, as amended and the rules and regulations promulgated thereunder (collectively, the “Trust
Indenture Act”).
Each of the Registration
Statement and any post-effective amendment thereto, at the time of its effectiveness, each deemed effective date with respect to the Underwriters
pursuant to Rule 430B(f)(2) under the 1933 Act Regulations, the Applicable Time and the Closing Time complied and will comply
in all material respects with the requirements of the 1933 Act, the 1933 Act Regulations and the Trust Indenture Act. The preliminary
prospectus that is included in the General Disclosure Package, at the time it was filed with the Commission, complied, and the Prospectus
and each amendment or supplement thereto, at the time each was filed with the Commission, complied in all material respects with the requirements
of the 1933 Act, the 1933 Act Regulations and the Trust Indenture Act. Each preliminary prospectus and the Prospectus delivered to the
Underwriters for use in connection with the offering of the Securities were or will be substantially identical to the electronically transmitted
copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.
The documents incorporated
or deemed to be incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus, when they
became effective or at the time they were or hereafter are filed with the Commission, complied and will comply in all material respects
with the requirements of the 1934 Act.
(ii) Accurate
Disclosure. Neither the Registration Statement nor any post-effective amendment thereto, at the time it became effective, the date
hereof or the Closing Time, contained, contains or will contain an untrue statement of a material fact or omitted, omits or will omit
to state a material fact required to be stated therein or necessary to make the statements therein not misleading. At the Applicable Time,
neither (A) the General Disclosure Package nor (B) any individual Issuer Limited Use Free Writing Prospectus, when considered
together with the General Disclosure Package, included, includes or will include an untrue statement of a material fact or omitted, omits
or will omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. Neither the Prospectus nor any amendment or supplement thereto (including any prospectus wrapper), at
its issue date, the time of any filing with the Commission pursuant to Rule 424(b) or the Closing Time, included, includes or
will include an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading. The documents incorporated or deemed
to be incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus, at the time the Registration
Statement became effective or when such documents incorporated or deemed to be incorporated by reference were filed with the Commission,
as the case may be, when read together with the other information in the Registration Statement, the General Disclosure Package or the
Prospectus, as the case may be, did not, do not and will not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading.
The representations
and warranties in this Section 1(a)(ii) shall not apply to statements in or omissions from the Registration Statement (or any
amendment thereto) or the General Disclosure Package or the Prospectus (or any amendment or supplement thereto) made in reliance upon
and in conformity with written information furnished to the Company by any Underwriter through the Representatives expressly for use therein.
For purposes of this Agreement, the only information so furnished shall be the information in the first paragraph under the heading “Underwriting
(Conflicts of Interest)–Commissions and Discounts,” the information in the second paragraph under the heading “Underwriting
(Conflicts of Interest)–Price Stabilization, Short Positions” and the information under the heading “Underwriting (Conflicts
of Interest)–Electronic Distribution,” in each case contained in the Registration Statement, the General Disclosure Package
and the Prospectus (collectively, the “Underwriter Information”).
(iii) Issuer
Free Writing Prospectuses. No Issuer Free Writing Prospectus that has not been superseded or modified conflicts or will conflict with
the information contained in the Registration Statement, any preliminary prospectus or the Prospectus or any amendment or supplement thereto,
including any document incorporated or deemed to be incorporated by reference therein, that has not been superseded or modified. Each
Issuer Free Writing Prospectus conformed or will conform in all material respects to the requirements of the 1933 Act and the 1933 Act
Regulations on the date of first use, and the Company has complied with any filing requirements applicable to such Issuer Free Writing
Prospectus pursuant to the 1933 Act Regulations. Neither of the Transaction Entities has made any offer relating to the Securities that
would constitute an Issuer Free Writing Prospectus without the prior written consent of the Representatives; provided, that such
consent is deemed to have been given with respect to each Issuer Free Writing Prospectus identified on Schedule B hereto. The Company
has retained in accordance with the 1933 Act Regulations all Issuer Free Writing Prospectuses that were not required to be filed pursuant
to the 1933 Act Regulations.
(iv) Well-Known
Seasoned Issuer. (A) At the time of filing of the Registration Statement, (B) at the time of the most recent amendment thereto
for the purposes of complying with Section 10(a)(3) of the 1933 Act (whether such amendment was by post-effective amendment,
incorporated report filed pursuant to Section 13 or 15(d) of the 1934 Act or form of prospectus), (C) at the time the Company
or any person acting on its behalf (within the meaning, for this clause only, of Rule 163(c)) made any offer relating to the Securities
in reliance on the exemption of Rule 163, (D) at the date of this Agreement and (E) at the Applicable Time, the Company
was and is a “well-known seasoned issuer,” as defined in Rule 405.
(v) Company
Not Ineligible Issuer. At the time of filing the Registration Statement and any post-effective amendment thereto, the earliest time
thereafter that either Transaction Entity or other offering participant made a bona fide offer of the Securities (within the meaning
of Rule 164(h)(2) of the 1933 Act Regulations), the date hereof and the Applicable Time, the Company was not and is not an “ineligible
issuer,” as defined in Rule 405, without taking account of any determination by the Commission pursuant to Rule 405 that
it is not necessary that the Company be considered an ineligible issuer.
(vi) Independent
Accountants. The accountants who certified the financial statements and supporting schedules included or incorporated or deemed to
be incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus are independent public accountants
with respect to the Transaction Entities as required by the 1933 Act, the 1933 Act Regulations, the 1934 Act, the 1934 Act Regulations
and the Public Company Accounting Oversight Board.
(vii) Financial
Statements; Non-GAAP Financial Measures. The financial statements included or incorporated or deemed to be incorporated by reference
in the Registration Statement, the General Disclosure Package and the Prospectus, together with the related schedules and notes, present
fairly in all material respects the financial condition of the Company and its consolidated subsidiaries at the dates indicated and the
results of operations, stockholders’ equity and cash flows of the Company and its consolidated subsidiaries for the periods specified,
and such financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”)
applied on a consistent basis throughout the periods presented. Except as included or incorporated or deemed to be incorporated by reference
in the Registration Statement, the General Disclosure Package and the Prospectus, no historical or pro forma financial statements or supporting
schedules are required to be included or incorporated or deemed to be incorporated by reference in the Registration Statement, the General
Disclosure Package or the Prospectus under the 1933 Act or the 1933 Act Regulations. All disclosures contained in the Registration Statement,
the General Disclosure Package or the Prospectus, or incorporated or deemed to be incorporated by reference therein, regarding “non-GAAP
financial measures” (as such term is defined by the rules and regulations of the Commission) comply in all material respects
with Regulation G under the 1934 Act and Item 10 of Regulation S-K under the 1933 Act, in each case to the extent applicable. The interactive
data in eXtensible Business Reporting Language incorporated or deemed to be incorporated by reference in the Registration Statement, the
General Disclosure Package and the Prospectus fairly presents the information called for in all material respects and has been prepared
in accordance with the Commission's rules and guidelines applicable thereto.
(viii) No
Material Adverse Change. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, since
the respective dates as of which information is given in the Registration Statement, the General Disclosure Package or the Prospectus,
(A) there has been no material adverse change in or affecting the real properties owned or leased (as a tenant) by the Transaction
Entities and their respective subsidiaries (collectively, the “Properties”) taken as a whole or in the condition, financial
or otherwise, or in the earnings, business affairs, management or business prospects of the Transaction Entities and their respective
subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business (a “Material Adverse Effect”),
(B) there have been no transactions entered into by either of the Transaction Entities or any of their respective subsidiaries, other
than in the ordinary course of business, which are material with respect to the Transaction Entities and their respective subsidiaries,
considered as one enterprise, (C) there has been no liability or obligation, direct or contingent (including off-balance sheet obligations),
which is material to the Transaction Entities and their respective subsidiaries considered as one enterprise, incurred by either of the
Transaction Entities or any of their respective subsidiaries outside the ordinary course of their business and (D) except for regular
quarterly dividends on the Company’s common stock, there has been no distribution of any kind declared, paid or made by either of
the Transaction Entities on any class of its shares of capital stock, in the case of the Company, or on any limited liability company
interests, in the case of the Operating Company (“LLC Interests”), or other form of ownership interests, as applicable.
(ix) Good
Standing of the Company. The Company has been duly organized and is validly existing as a corporation in good standing under the
laws of the State of Maryland, has all corporate power and authority to own, lease and operate its properties, conduct its business as
described in the Registration Statement, the General Disclosure Package and the Prospectus and enter into and perform its obligations
under the Operative Documents to which it is party, and is duly qualified to transact business as a foreign entity and is in good standing
in each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure to so qualify or to be in good standing would not, singly or in the aggregate, result in
a Material Adverse Effect.
(x) Good
Standing of Subsidiaries. Each significant subsidiary of the Company (as such term is defined in Rule 1-02 of Regulation S-X)
(including, without limitation, the Operating Company) (each, a “Subsidiary” and collectively, the “Subsidiaries”)
has been duly organized or formed, as applicable, and is validly existing and in good standing under the laws of the jurisdiction of its
incorporation, organization or formation, has corporate, trust, partnership, limited liability company or similar power and authority
to own, lease and operate its properties, conduct its business as described in the Registration Statement, the General Disclosure Package
and the Prospectus and, in the case of the Operating Company, enter into and perform its obligations under the Operative Documents to
which it is party and is duly qualified to transact business as a foreign entity and is in good standing in each other jurisdiction in
which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where
the failure to so qualify or to be in good standing would not, singly or in the aggregate, result in a Material Adverse Effect. Except
as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, all of the issued and outstanding ownership
interests in each Subsidiary of the Company (including, without limitation, all of the issued and outstanding LLC Interests) have been
duly authorized and validly issued, are fully paid and non-assessable, were issued in accordance with all applicable securities laws and
are owned by the Company, directly or through wholly-owned subsidiaries, free and clear of any security interest, mortgage, pledge, lien,
encumbrance, claim or equity, and none of the outstanding ownership interests in any Subsidiary of the Company were issued in violation
of any preemptive rights, resale rights, rights of first offer or refusal or other similar rights. The only subsidiaries of the Company
are (A) the subsidiaries of the Company listed on Exhibit 21 to the Company’s Annual Report on Form 10-K for the
year ended December 31, 2023, incorporated or deemed to be incorporated by reference in the Registration Statement, and (B) certain
other subsidiaries which, considered in the aggregate as a single subsidiary, do not constitute a “significant subsidiary,”
as defined in Rule 1-02 of Regulation S-X.
(xi) Capitalization.
The authorized, issued and outstanding shares of capital stock of the Company and LLC Interests of the Operating Company as of September 30,
2024 are as set forth in the financial statements included or incorporated or deemed to be incorporated by reference in the Registration
Statement, the General Disclosure Package and the Prospectus (except for subsequent issuances, if any, pursuant to this Agreement, pursuant
to reservations, agreements or employee benefit plans referred to in the Registration Statement, the General Disclosure Package and the
Prospectus or pursuant to the exercise of convertible or exchangeable securities or options referred to in the Registration Statement,
the General Disclosure Package and the Prospectus). Except as disclosed in the Registration Statement, the General Disclosure Package
and the Prospectus, (i) no shares of capital stock of the Company or LLC Interests of the Operating Company are reserved for any
purpose, (ii) there are no outstanding instruments convertible into or exchangeable for any shares of capital stock or any other
ownership interests of the Company or any LLC Interests or any other ownership interests of the Operating Company, and (iii) there
are no outstanding options, rights (preemptive or otherwise) or warrants to purchase or subscribe for shares of capital stock or any other
ownership interests of the Company or any LLC Interests or other ownership interests of the Operating Company. Each of (A) the outstanding
shares of capital stock of the Company and LLC Interests of the Operating Company, (B) all outstanding instruments convertible into
or exchangeable for any capital stock or any other ownership interests of the Company or any LLC Interests or other ownership interests
of the Operating Company and (C) all outstanding options, rights or warrants to purchase or subscribe for shares of capital stock
or any other ownership interests of the Company or any LLC Interests or any other ownership interests of the Operating Company has been
duly authorized and validly issued, is fully paid and non-assessable, was issued in accordance with all applicable securities laws and
conforms in all material respects to all statements relating thereto in the Registration Statement, the General Disclosure Package and
the Prospectus and none of such outstanding shares of capital stock, LLC Interests, other ownership interests, instruments, options, rights
or warrants were issued in violation of any preemptive rights, resale rights, rights of first offer or refusal or other similar rights.
(xii) No
Equity Awards. Except for issuances (i) pursuant to the terms of an equity-based compensation plan described in the Registration
Statement, the General Disclosure Package or the Prospectus or (ii) otherwise described in any of the foregoing, neither of the Transaction
Entities has granted to any person or entity a stock option or other equity-based award of or relating to the Company’s common stock.
(xiii) Authorization
of Agreement. This Agreement has been duly authorized, executed and delivered by each of the Transaction Entities.
(xiv) Authorization
of the Indenture. The Indenture has been duly qualified under the Trust Indenture Act and has been duly authorized, executed and delivered
by the Company and constitutes a valid and legally binding agreement of the Company and the Operating Company enforceable against the
Company and the Operating Company in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or
by general equitable principles.
(xv) Authorization
of the Notes. The Notes to be purchased by the Underwriters from the Operating Company are in the form contemplated by the Indenture,
have been duly authorized for issuance and sale pursuant to this Agreement and the Indenture and, at the Closing Time, will have been
duly executed by the Operating Company and, when authenticated in the manner provided for in the Indenture and delivered against payment
of the requisite purchase price therefor, will constitute valid and legally binding obligations of the Operating Company enforceable against
the Operating Company in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general
equitable principles, and will be entitled to the benefits of the Indenture.
(xvi) Authorization
of the Guarantee. The Guarantee has been duly authorized for issuance pursuant to this Agreement and the Indenture and, at Closing
Time, will have been duly executed by the Company and, when the Notes are authenticated in the manner provided for in the Indenture and
delivered against payment of the requisite consideration therefor, will constitute valid and legally binding obligations of the Company,
enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or
by general equitable principles, and will be entitled to the benefits of the Indenture.
(xvii) Description
of the Securities and the Indenture. The Securities and the Indenture conform in all material respects to the descriptions thereof
contained in the Registration Statement, the General Disclosure Package and the Prospectus.
(xviii) Accuracy
of Statements. The statements in each of the Registration Statement, the General Disclosure Package and the Prospectus under the captions
“Description of Notes” and “Description of Debt Securities,” in each case insofar as such statements constitute
a summary of the legal matters, documents or proceedings referred to therein, accurately present and summarize, in all material respects,
the matters referred to therein; and the statements in each of the Registration Statement, the General Disclosure Package and the Prospectus
under the caption “Federal Income Tax Considerations,” insofar as such statements constitute a summary of the legal matters,
documents or proceedings referred to therein, accurately present and summarize, in all material respects, the matters referred to therein.
(xix) Description
of LLC Interests. The Amended and Restated Limited Liability Company Agreement of the Operating Company (as amended) (the “Operating
Company Agreement”) is in full force and effect. The terms of the LLC Interests conform in all material respects to the description
thereof contained in the Registration Statement, the General Disclosure Package and the Prospectus and such description conforms in all
material respects to the rights set forth in the instruments defining the same.
(xx) Registration
Rights. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus and properly waived,
there are no persons with registration rights or other similar rights to have any securities registered for sale pursuant to the Registration
Statement or the Prospectus or otherwise by either of the Transaction Entities under the 1933 Act or to have securities included as part
of the offering of the Securities.
(xxi) Absence
of Violations, Defaults and Conflicts. Neither of the Transaction Entities nor any of their respective subsidiaries is (A) in
violation of its charter, bylaws, certificate of limited partnership, limited partnership agreement, certificate of formation, limited
liability company agreement or other organizational document, (B) in default in the performance or observance of any obligation,
agreement, covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease
or other agreement or instrument to which either of the Transaction Entities or any of their respective subsidiaries is a party or by
which it or any of them may be bound or to which any of their respective Properties, assets or operations is subject (collectively, “Agreements
and Instruments”), except for such defaults that would not, singly or in the aggregate, result in a Material Adverse Effect,
or (C) in violation of any law, statute, rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental
agency or body, regulatory body, administrative agency or other authority, body or agency having jurisdiction over either of the Transaction
Entities or any of their respective subsidiaries or their respective Properties, assets or operations (each, a “Governmental
Entity”), except for such violations that would not, singly or in the aggregate, result in a Material Adverse Effect. The execution,
delivery and performance of the Operative Documents to which it is party and the consummation of the transactions contemplated herein,
therein and in the Registration Statement, the General Disclosure Package and the Prospectus (including the issuance and sale of the Securities
and the use of the net proceeds from the sale of the Securities as described therein under the caption “Use of Proceeds”)
and compliance by the Transaction Entities with their respective obligations hereunder and thereunder have been duly authorized by all
necessary corporate or limited liability company action, as applicable, and do not and will not, whether with or without the giving of
notice or passage of time or both, conflict with or constitute a breach of, or default or Repayment Event (as defined below) under, or
result in the creation or imposition of any lien, charge or encumbrance upon any of the Properties, assets or operations of either of
the Transaction Entities or any of their respective subsidiaries pursuant to, the Agreements and Instruments (except for such conflicts,
breaches, defaults, Repayment Events, liens, charges or encumbrances that would not, singly or in the aggregate, result in a Material
Adverse Effect), nor will such action result in any violation of (i) the provisions of the charter, bylaws, certificate of limited
partnership, limited partnership agreement, certificate of formation, limited liability company agreement or other organizational document,
as applicable, of either of the Transaction Entities or any of their respective subsidiaries or (ii) any applicable law, statute,
rule, regulation, judgment, order, writ or decree of any Governmental Entity, except in the case of clause (ii) only, for any such
violation that would not, singly or in the aggregate, result in a Material Adverse Effect. As used herein, a “Repayment Event”
means any event or condition which gives the holder of any financing instrument (or any person acting on such holder’s behalf) the
right to require the repurchase, redemption or repayment of all or a portion of such financing by either of the Transaction Entities or
any of their respective subsidiaries.
(xxii) Labor
Matters. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, no labor problem or
dispute with the employees of the Company or any of its subsidiaries exists, and neither of the Transaction Entities is aware of any existing
or imminent labor disturbance by the employees of any of their tenants or subtenants, which, in either case, would, singly or in the aggregate,
result in a Material Adverse Effect.
(xxiii) Absence
of Proceedings. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there is no
action, suit, proceeding, inquiry or investigation before or brought by any Governmental Entity pending, or, to the knowledge of either
of the Transaction Entities, threatened, against or affecting the Transaction Entities or any of their respective subsidiaries, which
(A) is required to be disclosed in the Registration Statement, the preliminary prospectus that is included in the General Disclosure
Package or the Prospectus (other than as disclosed therein), (B) would, singly or in the aggregate, result in a Material Adverse
Effect, or (C) would materially and adversely affect the Properties, assets or operations of the Transaction Entities and their respective
subsidiaries, taken as a whole, or the consummation of the transactions contemplated in the Operative Documents or the performance by
the Transaction Entities of their respective obligations hereunder or thereunder. The aggregate of all pending legal or governmental proceedings
to which any of the Transaction Entities or any of their respective subsidiaries is a party or of which any of their respective Properties,
assets or operations is the subject which are not described in the Registration Statement, the General Disclosure Package and the Prospectus,
including ordinary routine litigation incidental to the business, would not singly or in the aggregate result in a Material Adverse Effect.
(xxiv) Accuracy
of Exhibits. There are no leases, contracts, franchises, indentures, mortgages, loan agreements, notes or other agreements or instruments
that are required to be described in the Registration Statement, the preliminary prospectus that
is included in the General Disclosure Package or the Prospectus or to be filed as exhibits to the Registration Statement that have
not been so described or filed as required.
(xxv) Absence
of Further Requirements. No filing with, or authorization, approval, consent, license, order, registration, qualification or decree
of, any Governmental Entity is necessary or required for the due authorization, execution, delivery or performance by either of the Transaction
Entities of its respective obligations under any of the Operative Documents or for the offering, issuance, sale or delivery of the Securities
by the Company and the Operating Company, except such as may be required under the 1933 Act and the 1933 Act Regulations, which have been
obtained, or as may be required under the securities laws of any U.S. state or non-U.S. jurisdiction or the rules of the Financial
Industry Regulatory Authority, Inc. (“FINRA”).
(xxvi) Possession
of Licenses and Permits. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the
Transaction Entities and their respective subsidiaries possess such permits, licenses, approvals, consents and other authorizations (collectively,
the “Governmental Licenses”) issued by the appropriate Governmental Entities under applicable law necessary to conduct
the business now operated by them, except where the failure so to possess would not, singly or in the aggregate, result in a Material
Adverse Effect. The Transaction Entities and their respective subsidiaries are in compliance with the terms and conditions of all of the
Governmental Licenses, except where the failure so to comply would not, singly or in the aggregate, result in a Material Adverse Effect.
All of the Governmental Licenses are valid and in full force and effect, except when the invalidity of the Governmental Licenses or the
failure of the Governmental Licenses to be in full force and effect would not, singly or in the aggregate, result in a Material Adverse
Effect. Neither of the Transaction Entities nor any of their respective subsidiaries has received any notice of proceedings relating to
the revocation or modification of any of the Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would result in a Material Adverse Effect.
(xxvii) Title
to Property. (A) The Transaction Entities and their subsidiaries will have good and marketable fee simple title to, or leasehold
interest under a ground lease in, the Properties, in each case, free and clear of all security interests, mortgages, pledges, liens, encumbrances,
claims or equities of any kind other than those that (1) are described in the Registration Statement, the General Disclosure Package
and the Prospectus, (2) are incurred, suffered or imposed by any tenant on such tenant’s leasehold interests on any Property,
or (3) do not, singly or in the aggregate, result in a Material Adverse Effect; (B) except as disclosed in the Registration
Statement, the General Disclosure Package and the Prospectus, each of the ground leases under which a Transaction Entity or one of its
subsidiaries is a ground landlord relating to a Property are in full force and effect, with such exceptions as do not materially interfere
with the use made or proposed to be made of such Property by either of the Transaction Entities or any of their respective subsidiaries,
and (1) no default or event of default has occurred under any such ground lease with respect to such Property and none of the Transaction
Entities or any of their respective subsidiaries has received any notice of any event which, whether with or without the passage of time
or the giving of notice, or both, would constitute a default under such ground lease, except, in each case, for such defaults or events
of default that would, not singly or in the aggregate, result in a Material Adverse Effect, and (2) none of the Transaction Entities
or any of their respective subsidiaries has received any notice of any claim of any sort that has been asserted by anyone adverse to the
rights of the Transaction Entities or any of their respective subsidiaries under any of the ground leases mentioned above, or affecting
or questioning the rights of the Transaction Entities and any of their respective subsidiaries to the continued possession of the leased
premises under any such ground lease, except, in each case, for such claims the adverse outcome of which would not, singly or in the aggregate,
result in a Material Adverse Effect; (C) all security interests, mortgages, pledges, liens, encumbrances, claims or equities on any
of the Properties that are required to be disclosed in the Registration Statement or the Prospectus are disclosed therein; (D) except
as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Transaction Entities have no actual
knowledge that any Property fails to comply with all applicable codes, laws and regulations (including, without limitation, building and
zoning codes, laws and regulations and laws relating to access to such Property), except for such failures to comply that would not, singly
or in the aggregate, result in a Material Adverse Effect; (E) no mortgage or deed of trust encumbering any Property is convertible
into ownership interests in a Transaction Entity or any of its subsidiaries; and (F) except as disclosed in the Registration Statement,
the General Disclosure Package and the Prospectus, none of the Transaction Entities or any of their respective subsidiaries or, to the
knowledge of either of the Transaction Entities, any lessee under a lease of any of the Properties to which a Transaction Entity or any
of its subsidiaries is a party (as a landlord) (a “Lease”) is in default under any of the Leases and none of the Transaction
Entities or any of their respective subsidiaries knows of any event which, whether with or without the passage of time or the giving of
notice, or both, would constitute a default under any of the Leases, except, in each case, for such defaults that would not, singly or
in the aggregate, result in a Material Adverse Effect.
(xxviii) Joint
Venture Agreements. Each of the partnership agreements or limited liability company agreements to which either of the Transaction
Entities or any of their respective Subsidiaries is a party has been duly authorized, executed and delivered by each Transaction Entity
or their respective Subsidiaries, as applicable, and constitutes the legal, valid and binding agreement thereof, enforceable in accordance
with its terms, except, in each case, to the extent that enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or similar laws affecting creditors’ rights or remedies generally or by general equitable principles,
and, with respect to equitable relief, the discretion of the court before which any proceeding therefor may be brought (regardless of
whether enforcement is sought in a proceeding at law or in equity), and with respect to any indemnification provisions contained therein,
except as rights under those provisions may be limited by applicable law or policies underlying such law. Except as disclosed in the Registration
Statement, the General Disclosure Package and the Prospectus, neither of the Transaction Entities nor any of their respective subsidiaries
is party to any material joint venture agreements with any unaffiliated third party.
(xxix) Possession
of Intellectual Property. The Transaction Entities and their respective subsidiaries own or possess, or can acquire on reasonable
terms, adequate patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade names or other intellectual
property (collectively, “Intellectual Property”) reasonably necessary to conduct the business now operated by them,
and neither of the Transaction Entities nor any of their respective subsidiaries has received any notice or is otherwise aware of any
infringement of or conflict with asserted rights of others with respect to any Intellectual Property or of any facts or circumstances
which would render any Intellectual Property invalid or inadequate to protect the interest of the Transaction Entities or any of their
respective subsidiaries therein, and which infringement or conflict (if the subject of any unfavorable decision, ruling or finding) or
invalidity or inadequacy, singly or in the aggregate, would result in a Material Adverse Effect.
(xxx) Environmental
Laws. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus or except as would not,
singly or in the aggregate, result in a Material Adverse Effect, (A) none of the Transaction Entities or any of their respective
subsidiaries has given notice to any tenant under a Lease of a default by such tenant under such Lease arising from a violation of any
federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or
administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution
or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land surface or
subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of chemicals,
pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products, asbestos-containing materials
or mold (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”) or has actual knowledge
of any such violation, (B) the Transaction Entities and their respective subsidiaries have obtained all permits, authorizations and
approvals under any applicable Environmental Laws required to be obtained by them under the Lease and are each in compliance with their
requirements, and the Transaction Entities have no actual knowledge of any absence of, or non-compliance with, any permits, authorizations
or approvals required under any applicable Environmental Laws relating to any of the Properties, (C) there are no pending or threatened
administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation,
investigations or proceedings relating to any Environmental Law against the Transaction Entities, any of their respective subsidiaries
or, to the knowledge of the Transaction Entities, any of the Properties, and (D) to the knowledge of the Transaction Entities, there
are no events or circumstances that would reasonably be expected to form the basis of an order for clean-up or remediation, or an action,
suit or proceeding by any private party or Governmental Entity, against or affecting the Transaction Entities, any of their respective
subsidiaries or any of the Properties relating to Hazardous Materials or any Environmental Laws.
(xxxi) Accounting
Controls and Disclosure Controls. The Transaction Entities and their respective subsidiaries maintain effective internal control over
financial reporting (as defined under Rules 13a-15 and 15d-15 under the 1934 Act Regulations) and a system of internal accounting
controls sufficient to provide reasonable assurances that: (A) transactions are executed in accordance with management’s general
or specific authorization; (B) transactions are recorded as necessary to permit preparation of financial statements in conformity
with GAAP and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s
general or specific authorization; (D) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences; and (E) the interactive data in eXtensible Business Reporting
Language incorporated or deemed to be incorporated by reference in the Registration Statement, the General Disclosure Package and the
Prospectus fairly present the information called for in all material respects and is prepared in accordance with the Commission's rules and
guidelines applicable thereto. Since the end of the Company’s and Operating Company’s most recent audited fiscal year, there
has been (1) no material weakness in the Company’s or Operating Company’s internal control over financial reporting (whether
or not remediated) and (2) no change in the Company’s or Operating Company’s internal control over financial reporting
that has materially and adversely affected, or is reasonably likely to materially and adversely affect, the Company’s or Operating
Company’s internal control over financial reporting. The Transaction Entities and each of their respective subsidiaries maintain
an effective system of disclosure controls and procedures (as defined in Rule 13a-15 and Rule 15d-15 under the 1934 Act Regulations)
that are designed to ensure that information required to be disclosed by the Transaction Entities in the reports that they file or submit
under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and
forms, and is accumulated and communicated to the Company’s and Operating Company’s management, including its principal executive
officer or officers and principal financial officer or officers, as appropriate, to allow timely decisions regarding disclosure.
(xxxii) Compliance
with the Sarbanes-Oxley Act. There is and has been no failure on the part of the Company or the Operating Company or any of the Company’s
or Operating Company’s directors or officers, in their capacities as such, to comply in all material respects with any provision
of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith, including Section 402 related
to loans and Sections 302 and 906 related to certifications.
(xxxiii) Payment
of Taxes. All U.S. federal, state, local and non-U.S. income tax returns of the Transaction Entities and their respective subsidiaries
required by law to be filed have been filed, and all taxes shown by such returns or which are otherwise due and payable, have been paid,
except taxes which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves are
being maintained in accordance with GAAP or except where the failure to file or pay would not, singly or in the aggregate, result in a
Material Adverse Effect. The charges, accruals and reserves on the books of the Transaction Entities and their respective subsidiaries
in respect of any tax liability for any years not finally determined are adequate to meet any assessments or re-assessments for additional
tax for any years not finally determined, except to the extent of any inadequacy that would not, singly or in the aggregate, result in
a Material Adverse Effect.
(xxxiv) ERISA.
No Transaction Entity sponsors, maintains, contributes to, has any liability with respect to, or could reasonably be expected to have
any liability with respect to any “employee benefit plan” within the meaning of the Employee Retirement Income Security Act
of 1974, as amended, including the regulations and published interpretations thereunder (“ERISA”). No portion of the
assets of either Transaction Entity constitutes “plan assets” for purposes of Title I of ERISA or Section 4975 of the
Internal Revenue Code of 1986, as amended (the “Code”).
(xxxv) Business
Insurance. The Transaction Entities and their respective subsidiaries carry or are entitled to the benefits of insurance, with financially
sound and reputable insurers, in such amounts and covering such risks as is generally maintained by companies of established repute engaged
in the same or similar business, and all such insurance is in full force and effect. Neither of the Transaction Entities has any reason
to believe that it or any of their respective subsidiaries will not be able to (A) renew, if desired, its existing insurance coverage
as and when such policies expire or (B) obtain comparable coverage from similar institutions as may be necessary or appropriate to
conduct its business as now conducted and at a cost that would not, singly or in the aggregate, result in a Material Adverse Effect. Neither
of the Transaction Entities nor any of their respective subsidiaries has been denied any insurance coverage which it has sought or for
which it has applied. The Transaction Entities, directly or indirectly, have obtained customary title insurance on their fee interests
and/or leasehold interests, as the case may be, in each of the Properties.
(xxxvi) Investment
Company Act. Neither of the Transaction Entities is required, or upon the issuance and sale of the Securities as contemplated herein
and the application of the net proceeds therefrom as described in the Registration Statement, the General Disclosure Package and the Prospectus
will be required, to register as an “investment company” under the Investment Company Act of 1940, as amended.
(xxxvii) Absence
of Manipulation. Neither of the Transaction Entities nor any of their respective subsidiaries or other affiliates has taken or will
take, directly or indirectly, any action which is designed, or would be expected, to cause or result in, or which constitutes, the stabilization
or manipulation of the price of any security of the Transaction Entities to facilitate the sale or resale of the Securities or a violation
of Regulation M under the 1934 Act.
(xxxviii) Foreign
Corrupt Practices Act. None of the Transaction Entities, any of their respective subsidiaries or, to the knowledge of either of the
Transaction Entities, any director, officer, partner, agent, employee, affiliate that is under the management control of the Transaction
Entities or any of their subsidiaries or other person acting on behalf of any of the Transaction Entities or any of their respective subsidiaries
is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices
Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), or any other applicable anti-bribery
laws, including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance
of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization
of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political
party or official thereof or any candidate for foreign political office, in contravention of the FCPA. Each of the Transaction Entities
and their respective subsidiaries and, to the knowledge of each of the Transaction Entities, their respective affiliates that are under
the management control of the Transaction Entities or their subsidiaries have conducted their businesses in compliance with the FCPA and
any other applicable anti-bribery laws and have instituted and maintain and enforce policies and procedures designed to ensure, and which
are reasonably expected to continue to ensure, continued compliance therewith.
(xxxix) Money
Laundering Laws. The operations of each of the Transaction Entities and their respective subsidiaries are and have been conducted
at all times in compliance with applicable financial recordkeeping and reporting requirements of (A) the Currency and Foreign Transactions
Reporting Act of 1970, as amended, (B) the money laundering statutes of all jurisdictions, the rules and regulations thereunder
and (C) any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively,
the “Money Laundering Laws”). No action, suit or proceeding by or before any Governmental Entity involving any of the
Transaction Entities or any of their respective subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge
of either of the Transaction Entities, threatened.
(xl) OFAC.
None of the Transaction Entities or any of their respective subsidiaries or, to the knowledge of either of the Transaction Entities, any
director, officer, partner, agent, employee, affiliate or other person acting on behalf of any of the Transaction Entities or any of their
respective subsidiaries is an individual or entity (“Person”) currently the subject or target of any sanctions administered
or enforced by the United States Government, including, without limitation, the U.S. Department of the Treasury’s Office of Foreign
Assets Control (“OFAC”), the United Nations Security Council, the European Union, His Majesty’s Treasury, or
other relevant sanctions authority (collectively, “Sanctions”), nor are the Transaction Entities or any of their respective
subsidiaries located, organized or resident in a country or territory that is, or whose government is, the subject of comprehensive territorial
(including, without limitation, the so-called Donetsk People’s Republic, the so-called Luhansk People’s Republic, Crimea and
the non-government controlled areas of the Zaporizhzhia and Kherson Regions of Ukraine, Cuba, Iran, North Korea, and Syria). Each
of the Transaction Entities and their respective subsidiaries and, to the knowledge of each of the Transaction Entities, their respective
affiliates that are under the management control of the Transaction Entities or their subsidiaries have instituted and maintain and enforce
policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance with Sanctions.
The Operating Company will not directly or indirectly use the proceeds from the sale of the Securities, or lend, contribute or otherwise
make available such proceeds to any subsidiaries, joint venture partners or other Person, to fund any activities of or business with any
Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions or in any other manner that will
result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor
or otherwise) of Sanctions.
(xli) Lending
Relationship. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, neither
of the Transaction Entities (i) has any material lending or other relationship with any Underwriter or any affiliate of any
Underwriter or (ii) intends to use any of the proceeds from the sale of the Securities to repay any outstanding debt owed to any
Underwriter or any affiliate of any Underwriter.
(xlii) Statistical
and Market-Related Data. Any statistical and market-related data included or incorporated or deemed to be incorporated by reference
in the Registration Statement, the General Disclosure Package or the Prospectus are based on or derived from sources that the Company
believes, after reasonable inquiry, to be reliable and accurate in all material respects and, to the extent required, the Company has
obtained the written consent to the use of such data from such sources.
(xliii) Cybersecurity.
(A) To the knowledge of the Company, there has been no security breach or incident, unauthorized access or disclosure, or other compromise
of or relating to the Transaction Entities or their subsidiaries information technology and computer systems, networks, hardware, software,
data and databases (including the data and information of their respective customers, employees, suppliers, vendors and any third party
data maintained, processed or stored by the Transaction Entities and their subsidiaries, and any such data processed or stored by third
parties on behalf of the Transaction Entities and their subsidiaries), equipment or technology (collectively, “IT Systems and
Data”) except for any such security breach or incident, unauthorized access or disclosure, or other compromise of a Transaction
Entity’s or their subsidiaries’ IT Systems and Data that would not, individually or in the aggregate, have a Material Adverse
Effect; (B) neither the Company nor its subsidiaries have been notified of, and each of them have no knowledge of any event or condition
that could result in, any security breach or incident, unauthorized access or disclosure or other compromise to the IT Systems and Data
and (C) the Company and its subsidiaries have implemented appropriate controls, policies, procedures, and technological safeguards
to maintain and protect, in all material respects, the integrity, continuous operation, redundancy and security of the IT Systems and
Data reasonably consistent with industry standards and practices, or as required by applicable regulatory standards. The Company and its
subsidiaries are presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of
any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy
and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation
or modification, except where failure to be so in compliance would not, individually or in the aggregate, have a Material Adverse Effect.
(xliv) Real
Estate Investment Trust. The Company has made a timely election to be subject to tax as a real estate investment trust (“REIT”)
pursuant to Sections 856 through 860 of the Code for its taxable year ended December 31, 1998. Commencing with its taxable year ended
December 31, 1998, the Company has been organized in conformity with the requirements for qualification and taxation as a REIT under
the Code. The Company’s current organization and proposed method of operation, as described in the Registration Statement, the General
Disclosure Package and the Prospectus, will enable the Company to continue to meet the requirements for qualification and taxation as
a REIT under the Code. All statements regarding the Company’s qualification and taxation as a REIT and descriptions of the Company’s
current organization and proposed method of operation (inasmuch as they relate to the Company’s qualification and taxation as a
REIT) set forth in the Registration Statement, the General Disclosure Package and the Prospectus are accurate summaries of the legal or
tax matters described therein in all material respects.
(xlv) Prior
Sales of Common Stock or LLC Interests. Except as disclosed in the Registration Statement, the General Disclosure Package and the
Prospectus, the Company has not issued, sold or distributed, or agreed to issue, sell or distribute, any shares of the Company’s
common stock or any securities convertible into or exercisable or exchangeable for shares of Common Stock and the Operating Company has
not issued, sold or distributed, or agreed to issue, sell or distribute, any LLC Interests or any securities convertible into or exercisable
or exchangeable for LLC Interests, in each case since the date of the latest balance sheet included or incorporated or deemed to be incorporated
by reference in the Registration Statement, the General Disclosure Package and the Prospectus.
(xlvi) Distributions.
Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, (A) the Company is not currently
prohibited, directly or indirectly, from making any distributions to its stockholders and (B) neither the Operating Company nor any
direct or indirect subsidiary of the Company is prohibited, directly or indirectly, from making any distributions, directly or indirectly,
to the Company or the Operating Company, as applicable, from making any other distribution on any of its ownership interests, from repaying
any of its loans or advances, including those made, directly or indirectly, by the Company or the Operating Company, or from loaning or
otherwise making funds available, directly or indirectly, to the Company or the Operating Company.
(xlvii) Finder’s
Fees. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor
the Operating Company has incurred any liability for any finder’s fees or similar payments in connection with the transactions contemplated
in this Agreement, except as may otherwise exist with respect to the Underwriters pursuant to this Agreement.
(xlviii) Certain
Relationships. No relationship, direct or indirect, exists between or among either of the Transaction Entities, on the one hand, and
the directors, officers, stockholders, partners, customers or suppliers of the Transaction Entities, on the other hand, which is required
to be described in the Registration Statement, the General Disclosure Package or the Prospectus which is not so described.
(b) Officer’s
Certificates. Any certificate signed by any officer or other representative of either of the Transaction Entities or any of their
respective subsidiaries delivered to the Representatives or to counsel for the Underwriters shall be deemed a representation and warranty
by such Transaction Entity to each Underwriter as to the matters covered thereby.
SECTION 2. Sale
and Delivery to Underwriters; Closing.
(a) Notes.
On the basis of the representations and warranties herein contained and subject to the terms and conditions herein set forth, the Operating
Company agrees to sell to each Underwriter, severally and not jointly, and each Underwriter, severally and not jointly, agrees to purchase
from the Operating Company, at a purchase price of 98.162% of the principal amount thereof, the principal amount of Notes set forth in
Schedule A opposite the name of such Underwriter, plus any additional principal amount of Notes which such Underwriter may become
obligated to purchase pursuant to the provisions of Section 10 hereof.
(b) Payment.
Payment of the purchase price for, and delivery of certificates in book-entry form representing, the Notes shall be made at the offices
of Sidley Austin llp, 787 Seventh Avenue, New York, New York 10019, or at such other place
as shall be agreed upon by the Representatives and the Operating Company, at 9:00 A.M. (New York City time) on November 14,
2024 (unless postponed in accordance with the provisions of Section 10), or such other time not later than ten business days after
such date as shall be agreed upon by the Representatives and the Operating Company (such time and date of payment and delivery being hereinafter
called the “Closing Time”).
Payment shall be made to the
Operating Company by wire transfer of immediately available funds to a bank account designated by the Operating Company against delivery
to the Representatives for the respective accounts of the Underwriters of certificates in book-entry form representing the Notes to be
purchased by them. It is understood that each Underwriter has authorized the Representatives, for its account, to accept delivery of,
receipt for, and make payment of the purchase price for, the Notes which it has agreed to purchase. The Representatives may (but shall
not be obligated to) make payment of the purchase price for the Notes to be purchased by any Underwriter whose funds have not been received
by the Closing Time but such payment shall not relieve such Underwriter from its obligations hereunder.
(c) Delivery.
The Operating Company shall deliver, or cause to be delivered, to the Representatives for the accounts of the several Underwriters certificates
in book-entry form for the Notes at the Closing Time, against the irrevocable release of a wire transfer of immediately available funds
for the amount of the purchase price therefor. The certificates for the Notes shall be in such denominations and registered in such names
and denominations as the Representatives shall have requested at least two full business days prior to the Closing Time and shall be made
available for inspection on the business day preceding the Closing Time at a location in New York City, as the Representatives may designate.
Time shall be of the essence, and delivery at the time and place specified in this Agreement is a further condition to the obligations
of the Underwriters.
SECTION 3. Covenants
of the Transaction Entities. Each of the Transaction Entities, jointly and severally, covenants with each Underwriter as follows:
(a) Compliance
with Securities Regulations and Commission Requests. The Operating Company, subject to Section 3(b), will comply with the requirements
of Rule 430B, and will notify the Representatives as soon as reasonably possible, and confirm the notice in writing, (i) when
any post-effective amendment to the Registration Statement shall become effective or any amendment or supplement to the Prospectus shall
have been filed, (ii) of the receipt of any comments from the Commission, (iii) of any request by the Commission for any amendment
to the Registration Statement or any amendment or supplement to the Prospectus, including any document incorporated or deemed to be incorporated
by reference therein, or for additional information, (iv) of the issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement or any post-effective amendment thereto or any notice of objection to the use of the Registration Statement
or any post-effective amendment thereto pursuant to Rule 401(g)(2) or of the issuance of any order preventing or suspending
the use of any preliminary prospectus or the Prospectus or any amendment or supplement thereto, or of the suspension of the qualification
of the Securities for offering or sale in any jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes
or of any examination pursuant to Section 8(d) or 8(e) of the 1933 Act concerning the Registration Statement and (v) if
either of the Transaction Entities becomes the subject of a proceeding under Section 8A of the 1933 Act in connection with the offering
of the Securities. The Operating Company will effect all filings required under Rule 424(b), in the manner and within the time period
required by Rule 424(b) (without reliance on Rule 424(b)(8)), and will take such steps as it deems necessary to ascertain
promptly whether the form of prospectus transmitted for filing under Rule 424(b) was received for filing by the Commission and,
in the event that it was not, it will promptly file such prospectus. The Operating Company will use its commercially reasonable efforts
to prevent the issuance of any stop, prevention or suspension order and, if any such order is issued, to obtain the lifting thereof as
soon as reasonably possible.
(b) Continued
Compliance with Securities Laws. The Operating Company will comply with the 1933 Act, the 1933 Act Regulations, the 1934 Act and the
1934 Act Regulations so as to permit the completion of the distribution of the Securities as contemplated in this Agreement and in the
Registration Statement, the General Disclosure Package and the Prospectus. If at any time when a prospectus relating to the Securities
is (or, but for the exception afforded by Rule 172 of the 1933 Act Regulations (“Rule 172”), would be) required
by the 1933 Act to be delivered in connection with sales of the Securities, any event shall occur or condition shall exist as a result
of which it is necessary, in the opinion of counsel for the Underwriters or for the Operating Company, to (i) amend the Registration
Statement in order that the Registration Statement will not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading, (ii) amend or supplement the General
Disclosure Package or the Prospectus in order that the General Disclosure Package or the Prospectus, as the case may be, will not include
any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading
in the light of the circumstances existing at the time it is delivered to a purchaser or (iii) amend the Registration Statement or
amend or supplement the General Disclosure Package or the Prospectus, as the case may be, in order to comply with the requirements of
the 1933 Act or the 1933 Act Regulations, the Operating Company will promptly (A) give the Representatives notice of such event,
(B) prepare, as applicable, any amendment or supplement as may be necessary to correct such statement or omission or to make the
Registration Statement, the General Disclosure Package or the Prospectus comply with such requirements and, a reasonable amount of time
prior to any proposed filing or use, furnish the Representatives with copies of any such amendment or supplement and (C) file with
the Commission any such amendment or supplement and use its best efforts to have any amendment to the Registration Statement declared
effective by the Commission as soon as practicable if the Company is no longer eligible to file an automatic shelf registration statement;
provided, however, that neither of the Transaction Entities shall file or use any such amendment or supplement to which
the Representatives or counsel for the Underwriters shall reasonably object. The Operating Company will furnish to the Underwriters such
number of copies of such amendment or supplement as the Underwriters may reasonably request. The Transaction Entities have given the Representatives
written notice of each filing, if any, made pursuant to the 1934 Act or the 1934 Act Regulations within 48 hours prior to the Applicable
Time and will give the Representatives notice of their intention to make any filings pursuant to the 1934 Act or the 1934 Act Regulations
from the Applicable Time to the Closing Time and, a reasonable amount of time prior to their proposed filing or use, will furnish the
Representatives with copies of any such documents and will not file or use any such document to which the Representatives or counsel for
the Underwriters shall reasonably object.
(c) Delivery
of Registration Statements. The Operating Company has furnished or will deliver to the Representatives and counsel for the Underwriters,
without charge, signed copies of the Registration Statement as originally filed and of each amendment thereto (including exhibits filed
therewith) and signed copies of all consents and certificates of experts, and will also deliver to the Representatives, without charge,
a conformed copy of the Registration Statement as originally filed and of each amendment thereto (without exhibits) for each of the Underwriters.
The copies of the Registration Statement and each amendment thereto furnished to the Underwriters will be identical to the electronically
transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.
(d) Delivery
of Prospectuses. The Operating Company has delivered to each Underwriter, without charge, as many copies of each preliminary prospectus
as such Underwriter reasonably requested, and the Transaction Entities hereby consent to the use of such copies for purposes permitted
by the 1933 Act. The Operating Company will furnish to each Underwriter, without charge, during the period when a prospectus relating
to the Securities is (or, but for the exception afforded by Rule 172, would be) required to be delivered under the 1933 Act, such
number of copies of the Prospectus (as amended or supplemented) as such Underwriter may reasonably request. The Prospectus and any amendments
or supplements thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with the
Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.
(e) Blue
Sky Qualifications. The Transaction Entities will use their commercially reasonable efforts, in cooperation with the Underwriters,
to qualify the Securities for offering and sale under the applicable securities laws of such states and other jurisdictions (domestic
or foreign) as the Representatives may reasonably designate and to maintain such qualifications in effect so long as required to complete
the distribution of the Securities; provided, however, that neither Transaction Entity shall be obligated to file any general
consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not
so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.
(f) Rule 158.
The Transaction Entities will timely file such reports pursuant to the 1934 Act as are necessary in order to make generally available
to their respective securityholders an earnings statement for the purposes of, and to provide to the Underwriters the benefits contemplated
by, the last paragraph of Section 11(a) of the 1933 Act.
(g) Use
of Proceeds. The Operating Company will use the net proceeds received by it from the sale of the Securities in the manner specified
in the Registration Statement, the General Disclosure Package and the Prospectus under “Use of Proceeds.”
(h) Final
Term Sheet. The Operating Company will prepare a final term sheet (a “Final Term Sheet”) containing only a description
of the final terms of the Notes and their offering, in the form approved by the Underwriters and attached as Schedule C hereto, and acknowledges
that the Final Term Sheet is an Issuer Free Writing Prospectus and will comply with its related obligations set forth in Section 3(k) hereof.
The Operating Company will furnish to each Underwriter, without charge, copies of the Final Term Sheet promptly upon its completion.
(i) Restriction
on Sale of Securities. Until the Closing Time, neither Transaction Entity will, without the prior written consent of the Representatives,
directly or indirectly, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase or lend or otherwise transfer or dispose of any debt securities or guarantees
or submit or file any registration statement under the 1933 Act with respect to any of the foregoing or publicly announce the intention
to do any of the foregoing or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in part,
directly or indirectly, the economic consequence of ownership of debt securities or guarantees, whether any such swap, other agreement
or transaction described in clause (i) or (ii) above is to be settled by delivery of debt securities or guarantees or in cash
or otherwise, or publicly announce the intention to do any of the foregoing. The foregoing sentence shall not apply to the Securities
to be issued and sold hereunder.
(j) Reporting
Requirements. The Transaction Entities, during the period when a prospectus relating to the Securities is (or, but for the exception
afforded by Rule 172, would be) required to be delivered under the 1933 Act, will file all documents required to be filed with the
Commission pursuant to the 1934 Act within the time periods required by the 1934 Act and the 1934 Act Regulations. Additionally, the Company,
on behalf of the Operating Company, shall report the use of proceeds from the issuance of the Securities as may be required under Rule 463
under the 1933 Act.
(k) Issuer
Free Writing Prospectuses. The Transaction Entities agree that, unless they obtain the prior written consent of the Representatives,
neither Transaction Entity will make any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus or that
would otherwise constitute a “free writing prospectus,” or a portion thereof, required to be filed by the Operating Company
with the Commission or retained by the Operating Company under Rule 433; provided, that the Representatives will be deemed
to have consented to the Issuer Free Writing Prospectuses listed on Schedule B hereto and any “road show that is a written
communication” within the meaning of Rule 433(d)(8)(i) that has been reviewed and approved by the Representatives. Any
such free writing prospectus consented to, or deemed consented to, as the case may be, by the Representatives is hereinafter referred
to as a “Permitted Free Writing Prospectus.” The Transaction Entities represent that they have treated and agree that
they will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433,
and that the Operating Company has complied and will comply with the applicable requirements of Rule 433 with respect thereto, including
timely filing with the Commission where required, legending and record keeping. If at any time following the issuance of an Issuer Free
Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer Free Writing Prospectus conflicted
or would conflict with the information contained in the Registration Statement or the Prospectus or any preliminary prospectus or other
prospectus deemed to be part thereof that has not been superseded or modified, or included or would include an untrue statement of a material
fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
existing at that subsequent time, not misleading, the Operating Company will promptly notify the Representatives and will promptly amend
or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.
(l) Absence
of Manipulation. Neither of the Transaction Entities nor any of their respective subsidiaries or other affiliates will take, directly
or indirectly, any action which is designed, or would reasonably be expected, to cause or result in, or which constitutes, the stabilization
or manipulation of the price of any security of the Transaction Entities to facilitate the sale or resale of the Securities or a violation
of Regulation M under the 1934 Act.
(m) REIT
Qualification. The Company will use its best efforts to continue to meet the requirements to qualify as a REIT under the Code until
the Board of Directors of the Company determines that it is no longer in the best interests of the Company and its stockholders to qualify
as a REIT.
(n) Compliance
with the Sarbanes-Oxley Act. Each of the Transaction Entities will comply in all material respects with all applicable provisions
of the Sarbanes-Oxley Act that are in effect.
(o) DTC.
The Transaction Entities will cooperate with the Underwriters and use their best efforts to permit the Notes to be eligible for clearance,
settlement and trading through the facilities of DTC.
(p) Renewal
Deadline. If, immediately prior to the third anniversary of the initial effective date of the Registration Statement (the “Renewal
Deadline”), any Securities remain unsold by the Underwriters, the Company and the Operating Company will, prior to the Renewal
Deadline, (i) promptly notify the Representatives in writing and (ii) promptly file, if it is eligible to do so, a new automatic
shelf registration statement relating to the Securities, in a form and substance satisfactory to the Underwriters. If, at the Renewal
Deadline, the Company and the Operating Company is not eligible to file an automatic shelf registration statement, the Company and the
Operating Company will, prior to the Renewal Deadline, (i) promptly notify the Representatives in writing, (ii) promptly file
a new shelf registration statement or post-effective amendment on the proper form relating to such Securities, in a form and substance
satisfactory to the Underwriters, (iii) use its commercially reasonable efforts to cause such registration statement or post-effective
amendment to be declared effective within 60 days after the Renewal Deadline and (iv) promptly notify the Representatives in writing
of such effectiveness. The Company and the Operating Company will take all other action necessary or appropriate to permit the offering
and sale of the Securities to continue as contemplated in the expired Registration Statement. References herein to the “Registration
Statement” shall include such new automatic shelf registration statement or such new shelf registration statement or post-effective
amendment, as the case may be.
(q) Eligibility
of Automatic Shelf Registration Statement Form. If at any time when Securities remain unsold by the Underwriters either Transaction
Entity receives a notice from the Commission pursuant to Rule 401(g)(2) or the Operating Company otherwise ceases to be eligible
to use the automatic shelf registration statement form, the Operating Company will (i) promptly notify the Representatives in writing,
(ii) promptly file a new registration statement or post-effective amendment on the proper form relating to such Securities, in a
form and substance satisfactory to the Underwriters, (iii) use its commercially reasonable efforts to cause such registration statement
or post-effective amendment to be declared effective as soon as practicable and (iv) promptly notify the Representatives in writing
of such effectiveness. The Operating Company will take all other action necessary or appropriate to permit the public offering and sale
of the Securities to continue as contemplated in the Registration Statement that was the subject of the Rule 401(g)(2) notice
or for which the Operating Company has otherwise become ineligible. References herein to the “Registration Statement” shall
include such new registration statement or post-effective amendment, as the case may be.
SECTION 4. Payment
of Expenses.
(a) Expenses.
Each of the Transaction Entities, jointly and severally, agrees to pay all expenses incident to the performance of their obligations under
this Agreement, including (i) the preparation, printing and filing of the Registration Statement (including financial statements
and exhibits thereto) as originally filed and of each amendment thereto, (ii) the preparation, printing and delivery to the Underwriters
of this Agreement, (iii) the preparation, issuance and delivery of the certificates in book-entry form for the Notes to the Underwriters,
including any transfer taxes and any stamp or other duties payable upon the sale, issuance or delivery of the Notes to the Underwriters,
(iv) the fees and disbursements of the Transaction Entities’ counsel, accountants and other advisors and the Trustee and their
counsel, (v) the qualification of the Securities under securities laws in accordance with the provisions of Section 3(e) hereof,
including filing fees and the reasonable fees and disbursements of counsel for the Underwriters in connection therewith and in connection
with the preparation of the Blue Sky Survey and any supplement thereto, (vi) the preparation, printing and delivery to the Underwriters
of copies of each preliminary prospectus, each Issuer Free Writing Prospectus and the Prospectus and any amendments or supplements thereto,
and any costs associated with electronic delivery of any of the foregoing by the Underwriters to investors, (vii) the costs and expenses
incurred in connection with the preparation and execution of the Operative Documents and the DTC Agreement, (viii) the costs and
expenses of the Transaction Entities relating to investor presentations on any “road show” undertaken in connection with the
marketing of the Securities, including, without limitation, expenses associated with the production of road show slides and graphics,
fees and expenses of any consultants engaged in connection with the road show presentations, travel and lodging expenses of the representatives
and officers of the Transaction Entities and any such consultants, and the cost of aircraft and other transportation chartered in connection
with the road show, (ix) the filing fees incident to, and the reasonable fees and disbursements of counsel to the Underwriters in
connection with, the review by FINRA, if required, of the terms of the sale of the Securities (not to exceed $5,000), (x) the fees
payable in connection with the rating of the Securities by the rating agencies, (xi) the fees and expenses of permitting the Notes
to be eligible for clearance, settlement and trading through the facilities of DTC and (xii) the costs and expenses (including, without
limitation, any damages or other amounts payable in connection with legal or contractual liability) associated with the reforming of any
contracts for sale of the Securities made by the Underwriters caused by a breach of the representation contained in the second sentence
of Section 1(a)(ii).
(b) Termination
of Agreement. If this Agreement is terminated by the Representatives in accordance with the provisions of Section 5(n), Section 9(a)(i) or
(iii) or Section 10 hereof, the Transaction Entities shall reimburse the Underwriters for all of their out-of-pocket expenses,
including the reasonable fees and disbursements of counsel for the Underwriters.
SECTION 5. Conditions
of Underwriters’ Obligations. The obligations of the several Underwriters hereunder are subject to the accuracy of the representations
and warranties of the Transaction Entities contained in Section 1(a) hereof, respectively, as of the date hereof, the Applicable
Time and the Closing Time or in certificates of any officer or other representative of either of the Transaction Entities or any of their
respective subsidiaries delivered pursuant to the provisions hereof, to the performance by the Transaction Entities of their respective
covenants and other obligations hereunder, and to the following further conditions:
(a) Effectiveness
of Registration Statement. The Registration Statement was filed by the Transaction Entities with the Commission not earlier than three
years prior to the date hereof and became effective upon filing in accordance with Rule 462(e). Each preliminary prospectus, each
Issuer Free Writing Prospectus and the Prospectus have been filed as required by Rule 424(b) (without reliance on Rule 424(b)(8))
and Rule 433, as applicable, within the time period prescribed by, and in compliance with, the 1933 Act Regulations. No stop order
suspending the effectiveness of the Registration Statement or any post-effective amendment thereto has been issued under the 1933 Act,
no notice of objection to the use of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) has
been received by the Transaction Entities, no order preventing or suspending the use of any preliminary prospectus or the Prospectus or
any amendment or supplement thereto has been issued and no proceedings for any of those purposes or pursuant to Section 8A of the
1933 Act have been instituted or are pending or, to the knowledge of either of the Transaction Entities, contemplated. The Transaction
Entities have complied with each request, if any, from the Commission for additional information. The Transaction Entities shall have
paid the required Commission filing fees relating to the Securities within the time period required by Rule 456(b)(1)(i) of
the 1933 Act Regulations without regard to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r) of
the 1933 Act Regulations.
(b) Opinions
of Counsel for the Transaction Entities. At the Closing Time, the Representatives shall have received the favorable opinions and negative
assurance letter, dated the Closing Time, of Latham & Watkins LLP, counsel for the Transaction Entities, in form and substance
reasonably satisfactory to the Underwriters, together with signed or reproduced copies of such letters for each of the other Underwriters,
to the effect set forth in Exhibit A-1 and Exhibit A-2 hereto. In giving such opinion, such counsel may rely upon
the opinion of Venable LLP as to all matters governed by the laws of the State of Maryland. Such counsel may also state that, insofar
as such opinion involves factual matters, it has relied, to the extent it deems proper, upon certificates of officers and other representatives
of the Transaction Entities and their respective subsidiaries and certificates of public officials.
(c) Opinion
of Maryland Counsel for Company. At the Closing Time, the Representatives shall have received the favorable opinion, dated the Closing
Time, of Venable LLP, Maryland counsel for the Company, in form and substance reasonably satisfactory to the Underwriters, together with
signed or reproduced copies of such letter for each of the other Underwriters, to the effect set forth in Exhibit B hereto.
(d) Opinion
of Counsel for the Underwriters. At the Closing Time, the Representatives shall have received the favorable opinion and negative assurance
statement, dated the Closing Time, of Sidley Austin llp, counsel for the Underwriters, together
with signed or reproduced copies of such letter for each of the other Underwriters, with respect to such matters as the Representatives
shall reasonably request. In giving such opinion, such counsel may rely upon the opinion of Venable LLP as to all matters governed by
the laws of the State of Maryland. Such counsel may also state that, insofar as such opinion involves factual matters, it has relied,
to the extent it deems proper, upon certificates of officers and other representatives of the Transaction Entities and their respective
subsidiaries and certificates of public officials.
(e) Transaction
Entities Officers’ Certificate. At the Closing Time, there shall not have been, since the date hereof, since the Applicable
Time or since the respective dates as of which information is given in the Registration Statement, the General Disclosure Package or the
Prospectus, any material adverse change in or affecting the Properties taken as a whole or in the condition, financial or otherwise, or
in the earnings, business affairs, management or business prospects of the Transaction Entities and their respective subsidiaries considered
as one enterprise, whether or not arising in the ordinary course of business, and the Representatives shall have received a certificate
of an executive officer of the Company and of the Principal Financial Officer and Chief Accounting Officer of the Company, on behalf of
the Company and as managing member of the Operating Company, dated the Closing Time, to the effect that (i) there has been no such
material adverse change, (ii) the representations and warranties of the Transaction Entities contained herein are true and correct
with the same force and effect as though expressly made at and as of the Closing Time, (iii) the Transaction Entities have complied
with all agreements and satisfied all conditions on their part to be performed or satisfied at or prior to the Closing Time, and (iv) no
stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto has been issued under the
1933 Act, no notice of objection of the Commission to the use of the Registration Statement or any post-effective amendment thereto pursuant
to Rule 401(g)(2) has been received by the Transaction Entities, no order preventing or suspending the use of any preliminary
prospectus or the Prospectus or any amendment or supplement thereto has been issued and no proceedings for any of those purposes have
been instituted or are pending or, to their knowledge, contemplated.
(f) Principal
Financial Officer’s Certificate. At the time of the execution of this Agreement and at the Closing Time, the Representatives
shall have received a certificate of the Principal Financial Officer of the Company, dated, respectively, as of the date hereof and as
of the Closing Time, in the form attached as Exhibit C hereto, regarding certain financial and operating information of the
Transaction Entities and their respective subsidiaries contained in the Registration Statement, the General Disclosure Package and the
Prospectus.
(g) Accountant’s
Comfort Letter. At the time of the execution of this Agreement, the Representatives shall have received from Deloitte & Touche
LLP a letter, dated such date, in form and substance satisfactory to the Representatives, together with signed or reproduced copies of
such letter for each of the other Underwriters, containing statements and information of the type ordinarily included in accountants’
“comfort letters” to underwriters with respect to the financial statements and certain financial information contained in
the Registration Statement, the General Disclosure Package and the Prospectus.
(h) Bring-down
Comfort Letter. At the Closing Time, the Representatives shall have received from Deloitte & Touche LLP a letter, dated the
Closing Time, in form and substance satisfactory to the Representatives, together with signed or reproduced copies of such letter for
each of the other Underwriters, to the effect that they reaffirm the statements made in the letter furnished pursuant to Section 5(g) hereof,
except that the specified date referred to shall be a date not more than two business days prior to the Closing Time.
(i) No
Objection. If a filing with FINRA is required, FINRA has confirmed that it has not raised any objection with respect to the fairness
and reasonableness of the underwriting terms and arrangements relating to the offering of the Securities.
(j) No
Important Changes. Since the execution of this Agreement, there shall not have been any decrease in or withdrawal of the rating or
outlook of any securities of the Company, the Operating Company or any of their respective subsidiaries by any “nationally recognized
statistical rating organization” (as defined for purposes of Section 3(a)(62) of the 1934 Act) or any notice given of any intended
or potential decrease in or withdrawal of any such rating or of a possible change in any such rating that does not indicate the direction
of the possible change.
(k) Ratings
Letters. At the Closing Time, the Notes shall be rated at least “BBB+” by S&P
Global Ratings, “A3” by Moody’s Investors Service, Inc. and “BBB+” by Fitch Ratings, Inc. and
the Transaction Entities shall have delivered to you evidence reasonably satisfactory to you confirming that the Notes have such ratings.
(l) Clearance,
Settlement and Trading. Prior to the Closing Time, the Notes shall be eligible for clearance, settlement and trading through the facilities
of DTC.
(m) Additional
Documents. At the Closing Time, counsel for the Underwriters shall have been furnished with such documents and opinions as it may
reasonably require for the purpose of enabling it to deliver the opinions or make the statements requested by the Underwriters as herein
contemplated, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment of any of the conditions,
herein contained; and all proceedings taken by the Transaction Entities in connection with the issuance and sale of the Securities as
herein contemplated shall be reasonably satisfactory in form and substance to the Underwriters.
(n) Termination
of Agreement. If any condition specified in this Section shall not have been fulfilled when and as required to be fulfilled,
this Agreement may be terminated by the Representatives by notice to the Operating Company at any time at or prior to the Closing Time,
and such termination shall be without liability of any party to any other party except as provided in Section 4(b) and except
that Sections 1, 6, 7, 8, 15 and 16 shall survive any such termination and remain in full force and effect.
SECTION 6. Indemnification.
(a) Indemnification
of Underwriters. Each of the Transaction Entities, jointly and severally, agrees to indemnify and hold harmless each Underwriter,
its affiliates (as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”)), its selling
agents and each person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act as follows:
(i) against
any and all loss, liability, claim, damage and expense whatsoever (including, without limitation, any legal or other expenses
reasonably incurred in connection with defending or investigating any such action or claim), as incurred, arising out of or based
upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment
thereto), including any information deemed to be a part thereof pursuant to Rule 430B, or the omission or alleged omission
therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out
of or based upon any untrue statement or alleged untrue statement of a material fact included in (A) any preliminary
prospectus, any Issuer Free Writing Prospectus, the General Disclosure Package or the Prospectus (or any amendment or supplement
thereto), or (B) any materials or information provided to investors by, or with the approval of, the Operating Company in
connection with the marketing of the offering of the Securities (“Marketing Materials”), including any roadshow
or investor presentations made to investors by the Operating Company (whether in person or electronically), or the omission or
alleged omission in any preliminary prospectus, any Issuer Free Writing Prospectus, the General Disclosure Package or the Prospectus
(or any amendment or supplement thereto) or in any Marketing Materials, as the case may be, of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading;
(ii) against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or any investigation or proceeding by any Governmental Entity, commenced or threatened, or of any
claim whatsoever, in each case arising out of or based upon any such untrue statement or omission, or any such alleged untrue
statement or omission; provided, that (subject to Section 6(d) below) any such settlement is effected with the
written consent of the Transaction Entities; and
(iii) against
any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Representatives),
reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever arising out of or based upon any such untrue statement
or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or
(ii) above;
provided,
however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out
of or based upon any untrue statement or omission or alleged untrue statement or omission made in the Registration Statement (or any amendment
thereto), including any information deemed to be a part thereof pursuant to Rule 430B, or in any preliminary prospectus, the General
Disclosure Package or the Prospectus (or any amendment or supplement thereto), in each case in reliance upon, and in conformity with,
the Underwriter Information.
(b) Indemnification
of Transaction Entities, Directors and Officers. Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless
each Transaction Entity, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and
each person, if any, who controls either of the Transaction Entities within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act, against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of
this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in
the Registration Statement (or any amendment thereto), including any information deemed to be a part thereof pursuant to Rule 430B,
or in any preliminary prospectus, the General Disclosure Package or the Prospectus (or any amendment or supplement thereto), in each case
in reliance upon and in conformity with the Underwriter Information.
(c) Actions
Against Parties; Notification. Each indemnified party shall give written notice as promptly as reasonably practicable to each indemnifying
party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result
thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement.
In the case of parties indemnified pursuant to Section 6(a) hereof, counsel for the indemnified parties shall be selected by
the Representatives, and, in the case of parties indemnified pursuant to Section 6(b) hereof, counsel for the indemnified parties
shall be selected by the Transaction Entities, as applicable. An indemnifying party may participate at its own expense in the defense
of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party)
also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and expenses of more than one
counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action
or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying
party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment
with respect to any litigation, or any investigation or proceeding by any Governmental Entity, commenced or threatened, or any claim whatsoever
in respect of which indemnification or contribution could be sought under this Section 6 or Section 7 hereof (whether or not
the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional
release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does
not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d) Settlement
Without Consent if Failure to Reimburse. If at any time an indemnified party shall have requested an indemnifying party to reimburse
the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the
nature contemplated by Section 6(a)(ii) effected without its written consent if (i) such settlement is entered into more
than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received
notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party
shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.
SECTION 7. Contribution.
If the indemnification provided for in Section 6 hereof is for any reason unavailable to or insufficient to hold harmless an indemnified
party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute
to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, (i) in
such proportion as is appropriate to reflect the relative benefits received by the Transaction Entities, on the one hand, and the Underwriters,
on the other hand, from the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause (i) is
not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Transaction Entities, on the one hand, and of the Underwriters, on the other hand, in
connection with the statements or omissions, which resulted in such losses, liabilities, claims, damages or expenses, as well as any other
relevant equitable considerations.
The relative benefits received
by the Transaction Entities, on the one hand, and the Underwriters, on the other hand, in connection with the offering of the Securities
pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by the Operating Company, on the one hand, and the total underwriting
discount received by the Underwriters, on the other hand, in each case as set forth on the cover of the Prospectus, bear to the aggregate
initial public offering price of the Notes as set forth on the cover of the Prospectus.
The relative fault of the
Transaction Entities, on the one hand, and the Underwriters, on the other hand, shall be determined by reference to, among other things,
whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates
to information supplied by the Transaction Entities, on the one hand, or by the Underwriters, on the other hand, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
The Transaction Entities and
the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro
rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does
not take account of the equitable considerations referred to above in this Section 7. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to above in this Section 7 shall be deemed to include
any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation,
or any investigation or proceeding by any Governmental Entity, commenced or threatened, or any claim whatsoever based upon any such untrue
or alleged untrue statement or omission or alleged omission.
Notwithstanding the provisions
of this Section 7, no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by
such Underwriter in connection with the Securities underwritten by it and distributed to the public.
No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation.
For purposes of this Section 7,
each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each
director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls either
of the Transaction Entities within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Transaction Entities. The Underwriters’ respective obligations to contribute pursuant to this Section 7
are several in proportion to the principal amount of Notes set forth opposite their respective names in Schedule A hereto and not
joint.
SECTION 8. Representations,
Warranties and Agreements to Survive. All representations, warranties and agreements contained in this Agreement or in certificates
of officers of either of the Transaction Entities or any of their respective subsidiaries submitted pursuant hereto shall remain operative
and in full force and effect regardless of (i) any investigation made by or on behalf of any Underwriter or its Affiliates or selling
agents, any person controlling any Underwriter, its officers or directors, or any person controlling either of the Transaction Entities
and (ii) delivery of and payment for the Notes.
SECTION 9. Termination
of Agreement.
(a) Termination.
The Representatives may terminate this Agreement, by notice to the Transaction Entities, at any time at or prior to the Closing Time (i) if
there has been, in the judgment of the Representatives, since the time of execution of this Agreement or since the respective dates as
of which information is given in the Registration Statement, the General Disclosure Package or the Prospectus, any material adverse change
in or affecting the Properties taken as a whole or in the condition, financial or otherwise, or in the earnings, business affairs, management
or business prospects of the Transaction Entities and their respective subsidiaries considered as one enterprise, whether or not arising
in the ordinary course of business, or (ii) if there has occurred any material adverse change in the financial markets in the United
States or the international financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change
or development involving a prospective change in national or international political, financial or economic conditions, in each case the
effect of which is such as to make it, in the judgment of the Representatives, impracticable or inadvisable to proceed with the completion
of the offering or to enforce contracts for the sale of the Securities, or (iii) if trading in any securities of the Company or the
Operating Company has been suspended or materially limited by the Commission or the New York Stock Exchange, or (iv) if trading generally
on the New York Stock Exchange or the NYSE American or in the Nasdaq Global Market has been suspended or materially limited, or minimum
or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any of said exchanges or by order of
the Commission, FINRA or any other Governmental Entity, or (v) if a material disruption has occurred in commercial banking or securities
settlement or clearance services in the United States or with respect to the systems of Clearstream Banking, société anonyme,
or Euroclear Bank, S.A./N.V., in Europe, or (vi) if a banking moratorium has been declared by either U.S. federal or New York authorities.
(b) Liabilities.
If this Agreement is terminated pursuant to this Section, such termination shall be without liability of any party to any other party
except as provided in Section 4(b) hereof, and provided further that Sections 1, 6, 7, 8, 15 and 16 shall survive such termination
and remain in full force and effect.
SECTION 10. Default
by One or More of the Underwriters. If one or more of the Underwriters shall fail at the Closing Time to purchase the Notes which
it or they are obligated to purchase under this Agreement (the “Defaulted Securities”), the Representatives shall have
the right, within 24 hours thereafter, to make arrangements for one or more of the non-defaulting Underwriters, or any other underwriters,
to purchase all, but not less than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms herein set
forth; if, however, the Representatives shall not have completed such arrangements within such 24-hour period, then:
(i) if
the principal amount of Defaulted Securities does not exceed 10% of the principal amount of Notes to be purchased on such date, each of
the non-defaulting Underwriters shall be obligated, severally and not jointly, to purchase the full principal amount thereof in the proportions
that their respective underwriting obligations hereunder bear to the underwriting obligations of all non-defaulting Underwriters, or
(ii) if
the principal amount of Defaulted Securities exceeds 10% of the principal amount of Securities to be purchased on such date, this Agreement
shall terminate without liability on the part of any non-defaulting Underwriter.
No action taken pursuant to
this Section shall relieve any defaulting Underwriter from liability in respect of its default.
In the event of any such default
which does not result in a termination of this Agreement, either the (i) Representatives or (ii) the Operating Company shall
have the right to postpone the Closing Time for a period not exceeding seven days in order to effect any required changes in the Registration
Statement, the General Disclosure Package or the Prospectus or in any other documents or arrangements. As used herein, the term “Underwriter”
includes any person substituted for an Underwriter under this Section 10.
SECTION 11. Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted
by any standard form of telecommunication. Notices to the Underwriters shall be directed to the Representatives at: J.P. Morgan Securities
LLC, 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk – 3rd Floor (fax (212) 834-6081);
BofA Securities, Inc., 114 W 47th St., NY8-114-07-01, New York, New York 10036, Facsimile: (646) 855-5958, Attn: High Grade Transaction
Management/Legal; Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282, Facsimile: (212) 291-5175, Attention: Registration
Department and Truist Securities, Inc., 3333 Peachtree Road, NE, Atlanta, Georgia 30326, Attention: Investment Grade Capital Markets,
Fax: (404) 926-5027; and notices to the Transaction Entities shall be directed to them at: c/o iStar Inc., 1114 Avenue of the Americas,
New York, New York 10036, attention of Douglas Heitner, Chief Legal Officer (Fax: (212) 930-9494).
SECTION 12. No
Advisory or Fiduciary Relationship. Each of the Transaction Entities acknowledges and agrees that (a) the purchase and sale of
the Securities pursuant to this Agreement, including the determination of the initial public offering price of the Notes and any related
discounts and commissions, is an arm’s-length commercial transaction between the Transaction Entities, on the one hand, and the
several Underwriters, on the other hand, (b) in connection with the offering of the Securities and the process leading thereto, each
Underwriter is and has been acting solely as a principal and is not the agent or fiduciary of either of the Transaction Entities or any
of their respective subsidiaries or their respective stockholders, unitholders, creditors, employees or any other party, (c) no Underwriter
has assumed or will assume an advisory or fiduciary responsibility in favor of the Transaction Entities with respect to the offering of
the Securities or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising either of
the Transaction Entities or any of their respective affiliates or subsidiaries on other matters) and no Underwriter has any obligation
to the Transaction Entities with respect to the offering of the Securities except the obligations expressly set forth in this Agreement,
(d) the Underwriters and their respective affiliates may be engaged in a broad range of transactions that involve interests that
differ from those of either of the Transaction Entities, (e) the Underwriters have not provided any business, legal, accounting,
regulatory or tax advice with respect to the offering of the Securities and each of the Transaction Entities has consulted its own business,
legal, accounting, regulatory and tax advisors to the extent it deemed appropriate, (f) none of the activities of the Underwriters
in connection with the transactions contemplated herein constitutes a recommendation, investment advice or solicitation of any action
by the Underwriters with respect to any entity or natural person and (g) the Transaction Entities waive to the full extent permitted
by applicable law any claims it may have against the Underwriters arising from an alleged breach of fiduciary duty in connection with
the offering of the Securities.
SECTION 13. Recognition
of the U.S. Special Resolution Regimes. In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding
under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under
this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime.
In the event that any Underwriter
that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime,
Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent
than such Default Rights could be exercised under the U.S. Special Resolution Regime.
For purposes of foregoing
two paragraphs, “BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted
in accordance with, 12 U.S.C. § 1841(k); “Covered Entity” means any of the following: (i) a “covered
entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b), (ii) a “covered bank”
as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b) or (iii) a “covered FSI”
as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b); “Default Right” has the
meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable;
and “U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated
thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
SECTION 14. Parties.
This Agreement shall inure to the benefit of and be binding upon the Underwriters and the Transaction Entities and their respective successors.
Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other than
the Underwriters and the Transaction Entities and their respective successors and the Affiliates, selling agents, controlling persons
and officers and directors referred to in Sections 6 and 7 and their heirs and legal representatives, any legal or equitable right,
remedy or claim under or in respect of this Agreement or any provision herein contained. This Agreement and all conditions and provisions
hereof are intended to be for the sole and exclusive benefit of the Underwriters and the Transaction Entities and their respective successors,
and said Affiliates, selling agents, controlling persons and officers and directors and their heirs and legal representatives, and for
the benefit of no other person, firm or corporation. No purchaser of Notes from any Underwriter shall be deemed to be a successor solely
by reason of such purchase.
SECTION 15. Trial
by Jury. Each of the Transaction Entities (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders
or unitholders, as applicable, and affiliates) and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted
by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby.
SECTION 16. GOVERNING
LAW. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CHOICE OF LAW PROVISIONS.
SECTION 17. Consent
to Jurisdiction. Each of the parties hereto agrees that any legal suit, action or proceeding arising out of or based upon this Agreement
or the transactions contemplated hereby shall be instituted in (i) the federal courts of the United States of America located in
the City and County of New York, Borough of Manhattan or (ii) the courts of the State of New York located in the City and County
of New York, Borough of Manhattan (collectively, the “Specified Courts”), and irrevocably submits to the exclusive
jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any Specified Court, as to which such jurisdiction
is non-exclusive) of the Specified Courts in any such suit, action or proceeding. Service of any process, summons, notice or document
by mail to a party’s address set forth in Section 11 hereof shall be effective service of process upon such party for any suit,
action or proceeding brought in any Specified Court. Each of the parties hereto irrevocably and unconditionally waives any objection to
the laying of venue of any suit, action or proceeding in the Specified Courts and irrevocably and unconditionally waives and agrees not
to plead or claim in any Specified Court that any such suit, action or proceeding brought in any Specified Court has been brought in an
inconvenient forum.
SECTION 18. TIME.
TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.
SECTION 19. Partial
Unenforceability. The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the
validity or enforceability of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement
is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor
changes) as are necessary to make it valid and enforceable.
SECTION 20. Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts
shall together constitute one and the same Agreement. Electronic signatures complying with the New York Electronic Signatures and Records
Act (N.Y. State Tech. §§ 301-309), as amended from time to time, or other applicable law will be deemed original signatures
for purposes of this Agreement. Transmission by telecopy, electronic mail or other transmission method of an executed counterpart of this
Agreement will constitute due and sufficient delivery of such counterpart.
SECTION 21. Effect
of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.
[SIGNATURE PAGES FOLLOW]
If the foregoing is in accordance
with your understanding of our agreement, please sign and return to the Transaction Entities a counterpart hereof, whereupon this instrument,
along with all counterparts, will become a binding agreement among the Underwriters, the Transaction Entities in accordance with its terms.
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Very truly yours, |
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SAFEHOLD INC. |
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By: |
/s/ Brett Asnas |
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Name: Brett Asnas |
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Title: Chief Financial Officer |
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Safehold GL HOLDINGS LLC |
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By: |
Safehold Inc., as Managing Member |
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By: |
/s/ Brett Asnas |
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Name: Brett Asnas |
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Title: Chief Financial Officer |
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[Signature Page to Underwriting
Agreement]
CONFIRMED
AND ACCEPTED,
as of the date first above written:
J.P. MORGAN SECURITIES LLC
By: |
/s/ Robert Bottamedi |
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Authorized Signatory |
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BOFA SECURITIES, INC.
By: |
/s/ Chris Porter |
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Authorized Signatory |
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GOLDMAN SACHS & CO. LLC
By: |
/s/ Karim Saleh |
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Authorized Signatory |
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TRUIST SECURITIES, INC.
By: |
/s/ Robert Nordlinger |
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Authorized Signatory |
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For themselves and as Representatives of the other Underwriters named
in Schedule A hereto.
[Signature Page to Underwriting
Agreement]
SCHEDULE A
Name of Underwriter | |
Principal Amount of Notes | |
J.P. Morgan Securities LLC | |
$ | 64,000,000 | |
BofA Securities, Inc. | |
| 50,000,000 | |
Goldman Sachs & Co. LLC | |
| 50,000,000 | |
Truist Securities, Inc. | |
| 50,000,000 | |
Mizuho Securities USA LLC | |
| 33,000,000 | |
RBC Capital Markets, LLC | |
| 33,000,000 | |
Barclays Capital Inc. | |
| 24,000,000 | |
Morgan Stanley & Co. LLC | |
| 24,000,000 | |
SMBC Nikko Securities America, Inc. | |
| 24,000,000 | |
BNP Paribas Securities Corp. | |
| 21,000,000 | |
Raymond James & Associates, Inc. | |
| 21,000,000 | |
Citizens JMP Securities, LLC | |
| 6,000,000 | |
Total | |
$ | 400,000,000 | |
SCHEDULE B
Issuer Free Writing Prospectuses
1. Final Term Sheet
SCHEDULE C
Final Term Sheet
Issuer Free
Writing
Prospectus Filed
Pursuant to Rule 433
Registration Nos. 333-
271113 and 333-
271113-01
Safehold GL Holdings LLC
$400,000,000 5.650% Senior Notes due 2035
Fully and unconditionally guaranteed by Safehold
Inc.
November 12, 2024
Term Sheet
Issuer: |
Safehold GL Holdings LLC |
Guarantor: |
Safehold Inc. |
Security: |
5.650% Senior Notes due 2035 (the “Notes”) |
Expected Ratings (Moody’s / S&P / Fitch)*: |
A3 (Stable) / BBB+ (Positive) / BBB+ (Positive) |
Aggregate Principal Amount: |
$400,000,000 |
Stated Maturity Date: |
January 15, 2035 |
Issue Price: |
98.812% of the principal amount |
Coupon (Interest Rate): |
5.650% per annum |
Yield to Maturity: |
5.804% |
Benchmark Treasury: |
UST 4.250% due November 15, 2034 |
Benchmark Treasury Price and Yield: |
98-18 / 4.429% |
Spread to Benchmark Treasury Yield: |
+137.5 basis points |
Interest Payment Dates: |
January 15 and July 15 of each year, beginning on July 15, 2025 |
Optional Redemption: |
Prior to October 15, 2034 (three months prior to the
Stated Maturity Date of the Notes), “make-whole” call at T+25 basis points (calculated as though the actual Stated Maturity
Date of the Notes was October 15, 2034)
On or after October 15,
2034 (three months prior to the Stated Maturity Date of the Notes), par call |
CUSIP / ISIN: |
785931AB2 / US785931AB23 |
Trade Date: |
November 12, 2024 |
Settlement Date**: |
November 14, 2024 (T+2) |
Joint Book-Running Managers: |
J.P. Morgan Securities LLC
BofA Securities, Inc.
Goldman Sachs & Co. LLC
Truist Securities, Inc.
Mizuho Securities USA LLC
RBC Capital Markets, LLC
SMBC Nikko Securities America, Inc.
Morgan Stanley & Co. LLC
Barclays Capital Inc. |
Co-Managers: |
BNP Paribas Securities Corp.
Raymond James & Associates, Inc.
Citizens JMP Securities, LLC |
* Note:
A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
** It
is expected that delivery of the Notes will be made against payment on or about November 14, 2024, which is the second business day
following the date of pricing of the Notes (such settlement being referred to as “T+2”). Pursuant to Rule 15c6-1 under
the Securities Exchange Act of 1934, as amended, trades in the secondary market are required to settle in one business day, unless the
parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the Notes on the date of pricing will be
required, by virtue of the fact that the Notes initially settle in T+2, to specify an alternate settlement cycle at the time of any such
trade to prevent a failed settlement. Purchasers of the Notes who wish to trade the Notes on the pricing date should consult their own
advisors.
The
Issuer has filed a registration statement and a prospectus with the Securities and Exchange Commission (the “SEC”) for the
offering to which this communication relates. Before you invest, you should read the prospectus and the related preliminary prospectus
supplement and other documents the Issuer has filed with the SEC for more complete information about the Issuer and this offering. You
may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the underwriters can
arrange to send you the prospectus and related preliminary prospectus supplement if you request it by calling J.P. Morgan Securities LLC
collect at 1-212-834-4533, BofA Securities, Inc. toll-free at 1-800-294-1322, Goldman Sachs & Co. LLC toll-free at 1-866-471-2526,
or Truist Securities, Inc. toll-free at 1-800-685-4786. This information does not purport to be a complete description of these securities
or the offering. Please refer to the preliminary prospectus supplement for a complete description of the securities. This communication
does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it
is unlawful to make such offer or solicitation in such jurisdiction.
Exhibit A-1
FORM OF OPINION OF COUNSEL TO THE TRANSACTION
ENTITIES
TO BE DELIVERED PURSUANT TO SECTION 5(b)
[Intentionally Omitted]
Exhibit A-2
FORM OF TAX OPINION OF COUNSEL TO THE TRANSACTION
ENTITIES
TO BE DELIVERED PURSUANT TO SECTION 5(b)
[Intentionally Omitted]
Exhibit B
FORM OF OPINION OF MARYLAND COUNSEL TO THE
COMPANY
TO BE DELIVERED PURSUANT TO SECTION 5(c)
[Intentionally Omitted]
Exhibit C
PRINCIPAL FINANCIAL OFFICER’S CERTIFICATE
OF SAFEHOLD INC.
[____________], 2024
The undersigned, as the Chief
Financial Officer of Safehold Inc., a Maryland corporation (the “Company”), in connection with the offering by Safehold
GL Holdings LLC, a Delaware limited liability company (the “Operating Company”), of $400,000,000 aggregate principal
amount of 5.650% Senior Notes due 2035, pursuant to (i) a preliminary prospectus supplement dated November 12, 2024 (the “Prospectus”)
and (ii) the underwriting agreement, dated November 12, 2024 (the “Underwriting Agreement”), among the Company
and the Operating Company, on the one hand, and the Underwriters named in the Underwriting Agreement, on the other hand, hereby certifies,
solely in his capacity as an officer of the Company and not individually, on behalf of the Company and, in the Company’s capacity
as managing member of the Operating Company, on behalf of the Operating Company, as follows:
(i) I
am the duly elected and qualified Chief Financial Officer of the Company and, solely in my capacity as such, I am providing this
certificate based on my examination of the financial records and schedules of the Transaction Entities.
(ii) I
am knowledgeable with respect to the accounting records and internal accounting practices, policies, procedures and controls of the Transaction
Entities and their respective subsidiaries and have responsibility for financial and accounting matters with respect to the Transaction
Entities and their respective subsidiaries.
(iii) I
have read and am familiar with, and have supervised the compilation of, the disclosures (including the financial statements and other
financial data of the Transaction Entities and their respective subsidiaries) contained or incorporated by reference in the Prospectus.
(iv) I
have reviewed the circled information contained on the pages attached hereto as Exhibit A (the “Circled Information”)
and included or incorporated or deemed to be incorporated by reference in the Prospectus and such information (a) has been derived
from the internal accounting records of the Transaction Entities and their respective subsidiaries or from information supplied to the
Transaction Entities by their respective tenants or subtenants that the Transaction Entities believe is reliable, (b) has been prepared
in good faith and based on fair and reasonable assumptions and (c) is accurate and complete. As of the date hereof, nothing has come
to my attention that has caused me to believe that the Circled Information is not accurate or is misleading in any material respect and
I am not aware of any adjustments that would reasonably be expected to cause such Circled Information to vary from the amounts presented
therein in any material respect.
All terms not defined herein
are as defined in the Underwriting Agreement.
[Signature
Page Follows]
IN WITNESS WHEREOF, I have hereunto
set my hand as of the date first written above.
|
|
|
|
|
Name: Brett Asnas |
|
|
Title: Chief Financial Officer |
Exhibit 4.1
SAFEHOLD GL HOLDINGS LLC,
SAFEHOLD INC.,
AS GUARANTOR,
AND
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
AS TRUSTEE
FIFTH SUPPLEMENTAL INDENTURE
DATED AS OF NOVEMBER 14, 2024
TO INDENTURE DATED MAY 7, 2021
$400,000,000
OF
5.650% SENIOR NOTES DUE 2035
CONTENTS
Article I. RELATION TO BASE INDENTURE; DEFINITIONS |
2 |
|
|
|
Section 1.1 |
Relation to Base Indenture |
2 |
Section 1.2 |
Definitions |
2 |
|
|
|
Article II. TERMS OF THE SECURITIES |
10 |
|
|
|
Section 2.1 |
Title of the Securities |
10 |
Section 2.2 |
Price |
10 |
Section 2.3 |
Limitation on Initial Aggregate Principal Amount; Further Issuances |
10 |
Section 2.4 |
Interest and Interest Rates; Stated Maturity of Notes |
10 |
Section 2.5 |
Method of Payment |
11 |
Section 2.6 |
Currency |
11 |
Section 2.7 |
Additional Notes |
12 |
Section 2.8 |
Redemption |
12 |
Section 2.9 |
No Sinking Fund |
12 |
Section 2.10 |
Registrar and Paying Agent |
12 |
|
|
|
Article III. FORM OF THE SECURITIES |
12 |
|
|
|
Section 3.1 |
Global Form |
12 |
Section 3.2 |
Transfer and Exchange |
13 |
|
|
|
Article IV. REDEMPTION OF NOTES |
19 |
|
|
|
Section 4.1 |
Optional Redemption of Notes |
19 |
Section 4.2 |
Notice of Optional Redemption, Selection of Notes |
19 |
Section 4.3 |
Payment of Notes Called for Redemption by the Company |
20 |
|
|
|
Article V. GUARANTEE |
21 |
|
|
|
Section 5.1 |
Note Guarantee |
21 |
Section 5.2 |
Execution and Delivery of Note Guarantee |
22 |
Section 5.3 |
Limitation of Guarantor’s Liability |
23 |
Section 5.4 |
Application of Certain Terms and Provisions to the Guarantor |
23 |
|
|
|
Article VI. ADDITIONAL COVENANTS |
23 |
|
|
|
Section 6.1 |
Maintenance of Total Unencumbered Assets |
23 |
Section 6.2 |
Secured Debt Test |
24 |
Section 6.3 |
Existence |
24 |
Section 6.4 |
Merger, Consolidation or Sale |
24 |
Section 6.5 |
Payment of Taxes and Other Claims |
25 |
Section 6.6 |
Provision of Financial Information |
25 |
Article VII. DEFAULTS AND REMEDIES |
26 |
|
|
|
Section 7.1 |
Events of Default |
26 |
Section 7.2 |
Acceleration of Maturity; Rescission and Annulment |
28 |
|
|
|
Article VIII. AMENDMENTS AND WAIVERS |
29 |
|
|
|
Section 8.1 |
Without Consent of Holders |
29 |
Section 8.2 |
With Consent of Holders |
30 |
|
|
|
Article IX. MEETINGS OF HOLDERS OF NOTES |
31 |
|
|
|
Section 9.1 |
Purposes for Which Meetings May Be Called |
31 |
Section 9.2 |
Call, Notice and Place of Meetings |
31 |
Section 9.3 |
Persons Entitled to Vote at Meetings |
31 |
Section 9.4 |
Quorum; Action |
32 |
Section 9.5 |
Determination of Voting Rights; Conduct and Adjournment of Meetings |
32 |
Section 9.6 |
Counting Votes and Recording Action of Meetings |
33 |
|
|
|
Article X. MISCELLANEOUS PROVISIONS |
34 |
|
|
|
Section 10.1 |
Evidence of Compliance with Conditions Precedent, Certificates to Trustee |
34 |
Section 10.2 |
No Recourse Against Others |
34 |
Section 10.3 |
Trust Indenture Act Controls |
34 |
Section 10.4 |
Governing Law |
35 |
Section 10.5 |
Counterparts |
35 |
Section 10.6 |
Successors |
35 |
Section 10.7 |
Severability |
36 |
Section 10.8 |
Table of Contents, Headings, Etc. |
36 |
Section 10.9 |
Ratifications |
36 |
Section 10.10 |
Effectiveness |
36 |
Section 10.11 |
The Trustee |
36 |
THIS FIFTH SUPPLEMENTAL INDENTURE (this “Fifth
Supplemental Indenture”) is entered into as of November 14, 2024 among Safehold GL Holdings LLC, a Delaware limited liability
company (the “Company”), Safehold Inc., a Maryland corporation, as guarantor (the “Guarantor”),
and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee (the “Trustee”).
WITNESSETH:
WHEREAS, the Company (then known as Safehold Operating
Partnership LP) has delivered to the Trustee an Indenture, dated as of May 7, 2021 (the “Base Indenture”), providing
for the issuance by the Company from time to time of Securities in one or more Series;
WHEREAS, the Company amended the Base Indenture
pursuant to the Third Supplemental Indenture, dated as of March 31, 2023, among the Company, the Guarantor (then known as iStar Inc.,
as successor in interest to Safehold Inc.) and the Trustee (the “Third Supplemental Indenture,” and the Base Indenture,
as amended by the Third Supplemental Indenture and as supplemented by this Fifth Supplemental Indenture, the “Indenture”);
WHEREAS, Section 2.2 of the Base Indenture
provides for various matters with respect to any Series of Securities issued under the Base Indenture to be established in an indenture
supplemental to the Base Indenture;
WHEREAS, each of the Company and the Guarantor
desires to execute this Fifth Supplemental Indenture to establish the form and to provide for the issuance of a Series of the Company’s
senior notes designated as 5.650% Senior Notes due 2035 (the “Notes”), in an initial aggregate principal amount of
$400,000,000;
WHEREAS, the board of directors of the Guarantor,
on behalf of the Guarantor and in its capacity as the managing member of the Company, has duly adopted resolutions authorizing the Company
and the Guarantor to execute and deliver this Fifth Supplemental Indenture; and
WHEREAS, all of the other conditions and requirements
necessary to make this Fifth Supplemental Indenture, when duly executed and delivered, a valid and binding agreement in accordance with
its terms and for the purposes herein expressed, have been performed and fulfilled.
THEREFORE, for and in consideration of the premises
and the purchase of the Series of Securities provided for herein by the Holders thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of Securities of such Series, as follows:
Article I.
RELATION
TO BASE INDENTURE; DEFINITIONS
Section 1.1 Relation
to Base Indenture.
This Fifth Supplemental Indenture constitutes
an integral part of the Base Indenture. Notwithstanding any other provision of this Fifth Supplemental Indenture, all provisions of this
Fifth Supplemental Indenture are expressly and solely for the benefit of the Holders of the Notes and any such provisions shall not be
deemed to apply to any other Securities issued under the Base Indenture and shall not be deemed to amend, modify or supplement the Base
Indenture for any purpose other than with respect to the Notes.
Section 1.2 Definitions.
For all purposes of this Fifth Supplemental Indenture,
except as otherwise expressly provided for or unless the context otherwise requires:
| (a) | Capitalized terms used but not defined herein shall have the respective
meanings assigned to them in the Base Indenture; and |
| (b) | All references herein to Articles and Sections, unless otherwise specified,
refer to the corresponding Articles and Sections of this Fifth Supplemental Indenture
as they amend or supplement the Base Indenture, and not the Base Indenture or any other document. |
“Additional Notes” means additional
Notes (other than the Initial Notes) issued under the Indenture in accordance with Sections 2.3, 2.7 and 6.1 hereof, as part of
the same series as the Initial Notes.
“Applicable Procedures” means,
with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and procedures of the Depositary,
Euroclear and Clearstream that apply to such transfer or exchange.
“Authentication Order” means
a Company Order to the Trustee to authenticate and deliver the Notes, signed in the name of the Company by an Officer of the Guarantor.
“Bankruptcy Law” shall have
the meaning ascribed thereto in Section 7.1.
“Business Day” means any day,
other than a Saturday or Sunday, or any other day on which banking institutions in New York, New York or the place of payment are not
authorized or obligated by law or executive order to close.
“Clearstream” means Clearstream
Banking, Société Anonyme.
“Company Order” means a written
order signed in the name of the Company by an Officer of the Guarantor.
“Cross-Default Threshold” means
(a) the payment “cross-default” threshold (as that term is generally understood) in the Primary Credit Facility or (b) if
the Primary Credit Facility is terminated or no longer includes a payment cross-default threshold, $60.0 million.
“Debt” means, without duplication,
with respect to any Person, any indebtedness of such Person in respect of:
| (a) | borrowed money or evidenced by bonds, notes, debentures or similar instruments; |
| (b) | indebtedness secured by any Lien on any property or asset owned by such
Person, but only to the extent of the lesser of (a) the amount of indebtedness so secured
and (b) the fair market value (determined in good faith by the board of directors of
such Person or, in the case of the Company and a subsidiary, by the Guarantor’s board
of directors or a duly authorized committee thereof) of the property subject to such Lien; |
| (c) | reimbursement obligations, contingent or otherwise, in connection with
any letters of credit actually issued or amounts representing the balance deferred and unpaid
of the purchase price of any property except any such balance that constitutes (i) an
accrued expense, (ii) trade accounts payable in the ordinary course of business and
(iii) any deferred purchase price until such obligation becomes a liability on the balance
sheet of such Person in accordance with GAAP; |
| (d) | any lease of property by such Person as lessee which is required to be
reflected on such Person’s balance sheet as a finance lease in accordance with GAAP;
provided, however, that in the case of this clause, Debt excludes operating lease liabilities
on a Person’s balance sheet in accordance with GAAP; |
| (e) | net obligations of such Person under any Swap Contract; |
| (f) | all obligations of such Person to purchase, redeem, retire, defease or
otherwise make any payment in respect of any equity interest in such Person or any other
Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary
or involuntary liquidation preference plus accrued and unpaid dividends; or |
| (g) | the monetary obligation of a Person under (a) a so-called synthetic,
off-balance sheet or tax retention lease, or (b) an agreement for the use or possession
of property creating obligations that do not appear on the balance sheet of such Person but
which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness
of such Person (without regard to accounting treatment). |
Debt also includes, to the extent not otherwise
included, any non-contingent obligation of such Person to be liable for, or to pay, as obligor, guarantor or otherwise (other than for
purposes of collection in the ordinary course of business), Debt of the types referred to above of another Person (it being understood
that Debt shall be deemed to be incurred by such Person whenever such Person shall create, assume, guarantee (on a non-contingent basis)
or otherwise become liable in respect thereof). Notwithstanding the foregoing, with respect to the Company, the Guarantor or any Subsidiary,
the term “Debt” shall not include (1) Permitted Non-Recourse Guarantees of the Company, the Guarantor or any Subsidiary
until such time as they become primary obligations of, and payments are due and required to be made thereunder by, the Company, the Guarantor
or any Subsidiary, (2) any such indebtedness (or obligations referenced in the sentence immediately above) that has been the subject
of an “in substance” defeasance in accordance with GAAP; and (3) Intercompany Indebtedness that is subordinate in right
of payment to the Notes (or an obligation to be liable for, or to pay, Intercompany Indebtedness that is subordinate in right of
payment to the Notes).
“Defaulted Interest” shall
have the meaning ascribed thereto in Section 2.5.
“Definitive Note” means a certificated
Note registered in the name of the Holder thereof and issued in accordance with Section 3.2, substantially in the form of Exhibit A
hereto except that such Note shall not bear the Global Note legend and shall not have the “Schedule of Exchanges of Interests
in the Global Note” attached thereto.
“Depositary” means, with respect
to the Notes, The Depository Trust Company and any successor thereto.
“Euroclear” means Euroclear
S.A./N.V., as operator of the Euroclear system.
“Event of Default” shall have
the meaning ascribed thereto in Section 7.1.
“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
“GAAP” means generally accepted
accounting principles as used in the United States applied on a consistent basis as in effect from time to time.
“Global Note Legend” means
the legend set forth in Section 3.2(f), which is required to be placed on all Global Notes issued under the Indenture.
“Global Notes” means, individually
and collectively, each of the Notes deposited with or on behalf of and registered in the name of the Depositary or its nominee, substantially
in the form of Exhibit A hereto and that bears the Global Note Legend and that has the “Schedule of Exchanges
of Interests in the Global Note” attached thereto, issued in accordance with the Indenture.
“Holders” shall have the meaning
ascribed thereto in Section 2.4.
“Indirect Participant” means
a Person who holds a beneficial interest in a Global Note through a Participant.
“Initial Notes” means the $400,000,000
aggregate principal amount of Notes issued under this Fifth Supplemental Indenture on the date hereof.
“Intercompany Indebtedness”
means Debt to which the only parties are any of the Company, the Guarantor or any of their respective Subsidiaries; provided, however,
that with respect to any such Debt of which the Company or the Guarantor is the borrower, such Debt is subordinate in right of payment
to the Notes.
“interest” means, when used
with reference to the Notes, any interest payable under the terms of the Notes.
“Interest Payment Date” shall
have the meaning ascribed thereto in Section 2.4.
“Lien” means any mortgage,
deed of trust, lien, charge, pledge, security interest, security agreement or other encumbrance of any kind.
“Non-Recourse Debt” means Debt
of a Subsidiary of the Company or the Guarantor (or an entity in which the Company is the general partner or managing member) that is
directly or indirectly secured by real estate assets or other real estate-related assets (including equity interests) of a Subsidiary
of the Company or the Guarantor (or entity in which the Company is the general partner or managing member) that is the borrower and is
non-recourse to the Company or the Guarantor or any Subsidiary of the Company or the Guarantor (other than pursuant to a Permitted Non-Recourse
Guarantee and other than with respect to the Subsidiary of the Company (or entity in which the Company is the general partner or managing
member) that is the borrower); provided, further, that, if any such Debt is partially recourse to the Company or the Guarantor or any
Subsidiary of the Company or the Guarantor (other than pursuant to a Permitted Non-Recourse Guarantee and other than with respect to
the Subsidiary of the Company or the Guarantor (or entity in which the Company is the general partner or managing member) that is the
borrower) and therefore does not meet the criteria set forth above, only the portion of such Debt that does meet the criteria set forth
above shall constitute “Non-Recourse Debt”; provided further, that, recourse to the Company or the Guarantor or any Subsidiary
of the Company or the Guarantor for any such Debt for fraud, misrepresentation, misapplication of cash, waste, bankruptcy, unpermitted
transfers, environmental claims and liabilities and other circumstances customarily excluded by institutional lenders from exculpation
provisions and/or included in separate indemnification agreements or carve-out guarantees in non-recourse financing of real estate, including
any customary carve- outs included in ground leases, shall not, by itself, prevent such Debt from being characterized as Non- Recourse
Debt.
“Note Guarantee” means the
Guarantee by the Guarantor of the Company’s obligations under the Indenture and the Notes, executed pursuant to the provisions
of this Fifth Supplemental Indenture.
“Notes” has the meaning assigned
to it in the preamble to this Fifth Supplemental Indenture. The Initial Notes and the Additional Notes shall be treated as a single class
for all purposes under the Indenture, and unless the context otherwise requires, all references to the Notes shall include the Initial
Notes and any Additional Notes.
“Officer” means any Chief Executive
Officer, the President, the Chief Financial Officer, the Chief Accounting Officer, the Treasurer or any Assistant Treasurer, the Secretary
or any Assistant Secretary, and any Vice President of the Guarantor.
“Officer’s Certificate”
means a certificate signed by any Officer of the Guarantor on behalf of the Company or the Guarantor, as applicable.
“Opinion of Counsel” means
a written opinion of legal counsel who is acceptable to the Trustee. The counsel may be an employee of or counsel to the Company or the
Guarantor.
“Par Call Date” means October 15,
2034.
“Participant” means, with respect
to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear or Clearstream, respectively
(and with respect to the Depositary Trust Company, shall include Euroclear and Clearstream).
“Permitted Non-Recourse Guarantees”
means customary completion or budget guarantees or indemnities (including by means of separate indemnification agreements and carve-out
guarantees) provided under Non-Recourse Debt in the ordinary course of business by the Company or the Guarantor or any Subsidiary of
the Company or the Guarantor in financing transactions that are directly or indirectly secured by real estate assets or other real estate-related
assets (including equity interests) of a Subsidiary of the Company or the Guarantor (or entity in which the Company is the general partner
or managing member), in each case that is the borrower in such financing, but is non-recourse to the Company or the Guarantor or any
of the Company’s or the Guarantor’s other Subsidiaries, except for customary completion or budget guarantees or indemnities
(including by means of separate indemnification agreements or carve-out guarantees) as are consistent with customary industry practice
(such as fraud, misrepresentation, misapplication of cash, waste, bankruptcy, unpermitted transfers, environmental claims and liabilities
and other circumstances customarily excluded by institutional lenders from exculpation provisions and/or separate indemnification agreements
or carve-out guarantees in non-recourse financing of real estate, including any customary carve-outs included in ground leases).
“Person” means any individual,
corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization
or government or any agency or political subdivision thereof.
“Primary Credit Facility” means
the Credit Agreement dated as of April 12, 2024 (amended, restated, supplemented or otherwise modified from time to time prior to
the issuance date of the notes) among the Company, as borrower, Safehold Inc., as guarantor, JPMorgan Chase Bank, N.A., as administrative
agent, and certain other financial institutions party thereto as lenders, agents, arrangers and bookrunners, including any renewals,
extensions, amendments, restatements, replacements or refinancing in full (or a majority) thereof after the issuance date of the Notes.
“Pro Rata Share” means,
with respect to (i) any Wholly-Owned Subsidiary of the Company, 100%, and with respect to any other Subsidiary of the Company,
the percentage interest held by the Company, directly or indirectly, in such joint venture determined by calculating the percentage of
the equity interests of such joint venture owned by the Company and/or one or more of its Subsidiaries.
“Record Date” shall have the
meaning ascribed thereto in Section 2.4.
“Redemption Date” means, with
respect to any Note or portion thereof to be redeemed in accordance with the provisions of Section 4.1, the date fixed for such
redemption in accordance with the provisions of Section 4.1.
“Redemption Price” shall have
the meaning ascribed thereto in Section 4.1.
“SEC” means the Securities
and Exchange Commission.
“Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time.
“Significant Subsidiary” means,
on any date of determination, each Subsidiary or group of Subsidiaries of the Guarantor whose total assets as of the last day of the
then most recently ended fiscal quarter were equal to or greater than 5% of the Total Asset Value at such time (it being understood that
all such calculations shall be determined in the aggregate for all Subsidiaries of the Guarantor subject to any of the events specified
in Sections 7.1(d) and 7.1(f).
“Subsidiary” means, with respect
to the Company or the Guarantor, any Person (excluding an individual), a majority of the outstanding voting stock, partnership interests,
membership interests or other equity interests, as the case may be, of which is owned or controlled, directly or indirectly, by the Company
or the Guarantor, as the case may be, or by one or more other Subsidiaries of the Company or the Guarantor, as the case may be. For the
purposes of this definition, “voting stock, partnership interests, membership interests or other equity interests” means
stock or interests having voting power for the election of directors, trustees or managers, as the case may be, whether at all times
or only so long as no senior class of stock or interests has such voting power by reason of any contingency.
“Swap Contract” means (a) any
and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond
or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions,
floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts,
or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing),
whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind,
and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published
by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other
master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.
“Total Assets” means, as of
any date, the sum of, without duplication:
| (a) | Undepreciated Real Estate Assets; plus |
| (b) | all other assets (excluding non-lease intangibles and accounts receivable
other than straight-line receivables and lease receivables) of the Company and its Subsidiaries, |
all determined on a consolidated basis in accordance
with GAAP to reflect impairment charges and write-downs.
“Total Asset Value” means,
as of any date, the Pro Rata Share of the following:
| (a) | the aggregate amount of cash and cash equivalents (as defined in accordance
with GAAP) owned by the Company and its Subsidiaries; plus |
| (b) | an amount equal to the aggregate undepreciated book value of all other
assets owned by the Company and its Subsidiaries, as adjusted in accordance with GAAP to
reflect impairment charges, write-downs and losses, owned on such date. |
“Total Unencumbered Assets”
means, as of any date, the sum of, without duplication:
| (a) | those Undepreciated Real Estate Assets which are not subject to a Lien
securing Debt; and |
| (b) | all other assets (excluding non-lease intangibles and accounts receivable
other than straight-line receivables and lease receivables) of the Company and its Subsidiaries
not subject to a Lien securing Debt, |
all determined on a consolidated basis in accordance
with GAAP to reflect impairment charges and write-downs; provided, however, that, in determining Total Unencumbered Assets as a percentage
of outstanding Unsecured Debt for purposes of the covenant set forth in Section 6.1, all investments in unconsolidated limited partnerships,
unconsolidated limited liability companies and other unconsolidated entities, shall be excluded from Total Unencumbered Assets.
“Treasury Rate” means, with
respect to any Redemption Date, the yield determined by the Company in accordance with the following two paragraphs.
The Treasury Rate shall be determined by the Company
as of 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors
of the Federal Reserve System), on the third Business Day preceding the date the notice of redemption is given based upon the yield or
yields for the most recent day that appear as of such time on such day in the most recent statistical release published by the Board
of Governors of the Federal Reserve System designated as “Selected Interest Rates (Daily)—H.15” (or any successor designation
or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal”
(or any successor caption or heading) (“H.15 TCM”). In determining the Treasury Rate, the Company shall select, as applicable:
(1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the Par Call Date
(the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining
Life, the two yields—one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding
to the Treasury constant maturity on H.15 immediately longer than the Remaining Life—and shall interpolate to the Par Call Date
on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if
there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury
constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or
maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury
constant maturity from the Redemption Date.
If on the third Business Day preceding the date
the notice of redemption is given H.15 TCM is no longer published, the Company shall calculate the Treasury Rate based on the rate per
annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding the
date the notice of redemption is given of the United States Treasury security maturing on, or with a maturity that is closest to, the
Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are two or more
United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the
Par Call Date and one with a maturity date following the Par Call Date, the Company shall select the United States Treasury security
with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call
Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among
these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the
average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the
Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury
security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New
York City time, of such United States Treasury security, and rounded to three decimal places.
“Undepreciated Real Estate Assets”
means, as of any date, the cost (original cost plus capital improvements) of real estate assets, right-of-use assets associated with
leases of property required to be reflected as finance leases on the balance sheet of the Company and its Subsidiaries in accordance
with GAAP and related intangibles of the Company and its Subsidiaries on such date, before depreciation and amortization, all determined
on a consolidated basis in accordance with GAAP; provided, however, that “Undepreciated Real Estate Assets” shall not include
right-of-use assets associated with leases of property required to be reflected as operating leases on the balance sheet of the Company
and its Subsidiaries in accordance with GAAP.
“Uniform Fraudulent Conveyance Act”
means any applicable federal, provincial or state fraudulent conveyance legislation and any successor legislation.
“Uniform Fraudulent Transfer Act”
means any applicable federal, provincial or state fraudulent transfer legislation and any successor legislation.
“Unsecured Debt” means Debt
of the Company or any of its Subsidiaries which is not secured by a Lien on any property or assets of the Company or any of its Subsidiaries.
“Wholly-Owned Subsidiary” means,
with respect to the Company or the Guarantor, any Person (excluding an individual), 100% of the outstanding shares of stock or other
equity interests of which are owned and controlled, directly or indirectly, by the Company or the Guarantor, as the case may be, or by
one or more other Subsidiaries of the Company or the Guarantor, as the case may be.
Article II.
TERMS
OF THE SECURITIES
Section 2.1 Title
of the Securities.
There shall be a Series of Securities designated
the “5.650% Senior Notes due 2035.”
Section 2.2 Price.
The Initial Notes shall be issued at a public
offering price of 98.812% of the principal amount thereof, other than any offering discounts pursuant to the initial offering and resale
of the Notes.
Section 2.3 Limitation
on Initial Aggregate Principal Amount; Further Issuances.
The aggregate principal amount of the Notes initially
shall be limited to $400,000,000. The Company may, without notice to or consent of the Holders, issue Additional Notes from time to time
in the future in an unlimited principal amount, subject to compliance with the terms of the Indenture.
Nothing contained in this Section 2.3 or
elsewhere in this Fifth Supplemental Indenture, or in the Notes, is intended to or shall limit execution by the Company or authentication
or delivery by the Trustee of Notes under the circumstances contemplated by Sections 2.7, 2.8, 2.11, 3.6 or 9.6 of the Base Indenture.
Section 2.4 Interest
and Interest Rates; Stated Maturity of Notes.
(a) The
Notes shall bear interest at the rate of 5.650% per year. Interest on the Notes will accrue from November 14, 2024 and will be payable
semi-annually in arrears on January 15 and July 15 of each year, commencing on July 15, 2025 (each such date being an
“Interest Payment Date”), to the persons in whose names the Notes are registered in the security register (the “Holders”)
on the preceding January 1 or July 1, whether or not a Business Day, as the case may be (each such date being a “Record
Date”). Interest on the Notes will be computed on the basis of a 360-day year consisting of twelve 30-day months.
(b) If
any Interest Payment Date, Stated Maturity or Redemption Date falls on a day that is not a Business Day, the required payment shall be
made on the next Business Day as if it were made on the date the payment was due and no interest shall accrue on the amount so payable
for the period from and after that Interest Payment Date, Stated Maturity or Redemption Date, as the case may be, until the next Business
Day.
(c) The
Stated Maturity of the Notes shall be January 15, 2035.
Section 2.5 Method
of Payment.
Principal, premium, if any, and interest shall
be payable at the designated corporate trust office of the Trustee, initially located at 100 Wall Street, 6th Floor, New York, NY 10005.
The Company shall pay interest (i) on any Notes in certificated form by check mailed to the address of the person entitled thereto;
provided, however, that a Holder of any Notes in certificated form in the aggregate principal amount of more than $2,000,000
may specify by written notice to the Company (with a copy to the Trustee) that it pay interest by wire transfer of immediately available
funds to the account specified by the Holder in such notice, or (ii) on any Global Note by wire transfer of immediately available
funds to the account of the Depositary or its nominee. Any interest on any Note which is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable
to the Holder registered as such on the relevant Record Date, and such Defaulted Interest shall 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 Notes are registered at 5:00 p.m., New
York City time, on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The
Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the
proposed payment (which shall be not less than 25 calendar days after the receipt by the Trustee of such notice, unless the Trustee shall
agree to an earlier date), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate
amount to be paid in respect of such Defaulted Interest or shall make arrangements reasonably satisfactory to the Trustee for such deposit
on or 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 Company shall fix a special record date for the payment of
such Defaulted Interest which shall be not more than 15 calendar days and not less than 10 calendar days prior to the date of the proposed
payment, and not less than 10 calendar days after the receipt by the Trustee of the notice of the proposed payment (unless the Trustee
shall agree to an earlier date). The Company shall promptly notify the Trustee in writing of such special record date and shall cause
notice of the proposed payment of such Defaulted Interest and the special record date therefor to be sent to each Holder at its address
as it appears in the register, not less than 10 calendar 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 Notes are registered at 5:00 p.m., New York City time, on such special record date and shall no longer be payable pursuant
to the following Clause (b) of this Section 2.5.
(b) The
Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities
exchange or automated quotation system on which the Notes may be listed or designated for issuance, and upon such notice as may be required
by such exchange or automated quotation system, 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.
Section 2.6 Currency.
Principal and interest on the Notes shall be payable
in U.S. Dollars.
Section 2.7 Additional
Notes.
The Company will be entitled, without the consent
of any Holders of the Notes, upon delivery of an Officer’s Certificate, Opinion of Counsel and Authentication Order to the Trustee,
and subject to its compliance with Section 6.1, to issue Additional Notes under the Indenture that will have identical terms to
the Initial Notes issued on the date of the Indenture other than with respect to the date of issuance and issue price; provided, however,
that if such Additional Notes will not be fungible with the Initial Notes for U.S. federal income tax purposes, such Additional Notes
will have a separate CUSIP number. Such Additional Notes will rank equally and ratably in right of payment and will be treated as a single
series for all purposes under the Indenture.
With respect to any Additional Notes, the Company
will set forth in a resolution of the board of directors of the Guarantor acting on behalf of the Company and an Officer’s Certificate,
a copy of each of which will be delivered to the Trustee, the following information:
(a) the
aggregate principal amount of such Additional Notes to be authenticated and delivered pursuant to the Indenture; and
(b) the
issue price, the issue date and the CUSIP number of such Additional Notes.
Section 2.8 Redemption.
The Notes may be redeemed at the option of the
Company prior to the Stated Maturity as provided in Article IV.
Section 2.9 No
Sinking Fund.
The provisions of Article XI of the Base
Indenture shall not be applicable to the Notes.
Section 2.10 Registrar
and Paying Agent.
The Trustee shall initially serve as Registrar
and Paying Agent for the Notes.
Article III.
FORM OF
THE SECURITIES
Section 3.1 Global
Form.
The Notes shall initially be issued in the form
of one or more fully registered Global Notes that will be deposited with, or on behalf of the Depositary, and registered in the name
of the Depositary or its nominee, as the case may be, subject to Sections 2.7 and 2.14 of the Base Indenture. So long as the Depositary,
or its nominee, is the registered owner of the Global Note, the Depositary or its nominee, as the case may be, will be considered the
sole Holder of the Notes represented by the Global Note for all purposes under the Indenture.
The Notes shall not be issuable in definitive
form except as provided in Section 3.2(a) of this Fifth Supplemental Indenture. The Notes and the Trustee’s certificate
of authentication shall be substantially in the form attached as Exhibit A hereto. The Company shall execute and the Trustee
shall, in accordance with Section 2.3 of the Base Indenture, authenticate and hold each Global Note as custodian for the Depositary.
Each Global Note will represent such of the outstanding Notes as will be specified therein and each shall provide that it represents
the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement
of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented
thereby will be made by the Registrar or the custodian, at the direction of the Trustee. The terms and provisions contained in the form
of Note attached as Exhibit A hereto shall constitute, and are hereby expressly made, a part of the Indenture and, to the
extent applicable, the Company, the Guarantor and the Trustee, by their execution and delivery of this Fifth Supplemental Indenture,
expressly agree to such terms and provisions and to be bound thereby.
Participants of the Depositary shall have no rights
either under the Indenture or with respect to the Global Notes. The Depositary or its nominee, as applicable, may be treated by the Company,
the Guarantor, the Trustee and any agent of the Company, the Guarantor or the Trustee as the absolute owner and Holder of such Global
Notes for all purposes under the Indenture. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Guarantor or
the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or its nominee,
as applicable, or impair, as between the Depositary and its participants, the operation of customary practices of such Depositary governing
the exercise of the rights of an owner of a beneficial interest in the Global Notes.
Section 3.2 Transfer
and Exchange.
(a) Transfer
and Exchange of Global Notes. A Global Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary,
by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to
a successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged by the Company for Definitive Notes
if:
(1) the
Company delivers to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary or that it
is no longer a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not appointed by the
Company within 120 days after the date of such notice from the Depositary; or
(2) the
Company, at its option, determines that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and delivers
a written notice to such effect to the Trustee; or
(3) upon
request from the Depositary if there has occurred and is continuing a Default or Event of Default with respect to the Notes.
Upon the occurrence of any of the preceding events
in (1), (2) or (3) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee in writing.
Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.8 and 2.11 of the Base Indenture.
Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 3.2
or Section 2.8 and 2.11 of the Base Indenture, shall be authenticated and delivered in the form of, and shall be, a Global Note.
A Global Note may not be exchanged for another Note other than as provided in this Section 3.2(a); however, beneficial interests
in a Global Note may be transferred and exchanged as provided in Section 3.2(b) or (c).
(b) Transfer
and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global Notes will
be effected through the Depositary, in accordance with the provisions of the Indenture and the Applicable Procedures. Transfers of beneficial
interests in the Global Notes also will require compliance with either subparagraph (1) or (2) below, as applicable, as
well as one or more of the other following subparagraphs, as applicable:
(1) Transfer
of Beneficial Interests in the Same Global Note. Beneficial interests in any Global Note may be transferred to Persons who take delivery
thereof in the form of a beneficial interest in a Global Note. No written orders or instructions shall be required to be delivered to
the Registrar to effect the transfers described in this Section 3.2(b)(1).
(2) All
Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with all transfers and exchanges of beneficial
interests that are not subject to Section 3.2(b)(1) above, the transferor of such beneficial interest must deliver to the Registrar
either:
both:
(A) a
written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing
the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest
to be transferred or exchanged; and
(B) instructions
given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such
increase; or
both:
(C) a
written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing
the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged;
and
(D) instructions
given by the Depositary to the Registrar containing information regarding the Person in whose name such Definitive Note shall be registered
to effect the transfer or exchange referred to in (b)(1) above.
Upon satisfaction of all of the requirements for transfer or exchange
of beneficial interests in Global Notes contained in this Fifth Supplemental Indenture and the Notes or otherwise applicable under the
Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 3.2(g).
(c) Transfer
and Exchange of Beneficial Interests in Global Notes for Definitive Notes. If any holder of a beneficial interest in a Global Note
proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes delivery
thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in Section 3.2(b)(2) and written
notice to the Trustee, the Trustee will cause the aggregate principal amount of the applicable Global Note to be reduced accordingly
pursuant to Section 3.2(g) hereof, and the Company will execute and, upon the receipt of an Authentication Order, the Trustee
will authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount. Any
Definitive Note issued in exchange for a beneficial interest pursuant to this Section 3.2(c) will be registered in such name
or names and in such authorized denomination or denominations as the holder of such beneficial interest requests through instructions
to the Registrar from or through the Depositary and the Participant or Indirect Participant. The Trustee will deliver such Definitive
Notes to the Persons in whose names such Notes are so registered.
(d) Transfer
and Exchange of Definitive Notes for Beneficial Interests in Global Notes. A Holder of a Definitive Note may exchange such Note for
a beneficial interest in a Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a beneficial
interest in a Global Note at any time. Upon receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable
Definitive Note and increase or cause to be increased the aggregate principal amount of one of the Global Notes. If any such exchange
or transfer from a Definitive Note to a beneficial interest is effected pursuant to the previous sentence at a time when a Global Note
has not yet been issued, the Company will issue and, upon receipt of an Authentication Order in accordance with Section 3.2, the
Trustee will authenticate one or more Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes
so transferred.
(e) Transfer
and Exchange of Definitive Notes for Definitive Notes. Upon the written request by a Holder of Definitive Notes and such Holder’s
compliance with the provisions of this Section 3.2(e), the Registrar will register the transfer or exchange of Definitive Notes.
Prior to such registration of transfer or exchange, the requesting Holder must present or surrender to the Registrar the Definitive Notes
duly endorsed or accompanied by a written instruction of transfer in form reasonably satisfactory to the Registrar duly executed by such
Holder or by its attorney, duly authorized in writing. In addition, the requesting Holder must provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions of this Section 3.2(e). A Holder of Definitive
Notes may transfer such Notes to a Person who takes delivery thereof in the form of a Definitive Note. Upon receipt of a written request
to register such a transfer, the Registrar shall register the Definitive Notes pursuant to the instructions from the Holder thereof.
(f) Legend.
Each Global Note issued under the Indenture, unless specifically stated otherwise in the applicable provisions of the Indenture, will
bear a legend in substantially the following form:
“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED
IN THE FIFTH SUPPLEMENTAL INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND
IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE
REQUIRED PURSUANT TO SECTION 3.2 OF THE FIFTH SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE
BUT NOT IN PART PURSUANT TO SECTION 3.2(a) OF THE FIFTH SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF SAFEHOLD GL HOLDINGS LLC UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE
OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”
(g) Cancellation
and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive
Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note will be
returned to or retained and canceled by the Trustee in accordance with Section 2.12 of the Base Indenture. At any time prior to
such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such
Global Note will be reduced accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person
who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note will be increased
accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to
reflect such increase.
(h) General
Provisions Relating to Transfers and Exchanges.
(1) To
permit registrations of transfers and exchanges, the Company will execute and the Trustee will authenticate Global Notes and Definitive
Notes upon receipt of an Authentication Order or at the Registrar’s request.
(2) No
service charge will be made to a Holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration
of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange or transfer
pursuant to Sections 2.11 and 9.6 of the Base Indenture and Section 4.3 of this Fifth Supplemental Indenture).
(3) The
Registrar will not be required to register the transfer of or exchange of any Note selected for redemption in whole or in part, except
the unredeemed portion of any Note being redeemed in part.
(4) All
Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes will be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under the Indenture, as the Global Notes
or Definitive Notes surrendered upon such registration of transfer or exchange.
(5) Neither
the Registrar nor the Company will be required:
(A) to
register the transfer of or to exchange any Note during a period beginning at the opening of business fifteen days before the delivery
of a notice of redemption of the Notes under Article IV and ending at the close of business on the day of such delivery;
(B) to
register the transfer of or to exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part; or
(C) to
register the transfer of or to exchange a Note between a record date and the next succeeding Interest Payment Date.
(6) Prior
to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Company may deem and treat the Person
in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and premium,
if any, interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Company shall be affected by notice
to the contrary.
(7) The
Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 3.1 hereof.
(8) All
certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 3.2 to effect
a registration of transfer or exchange may be submitted by facsimile.
(i) In
connection with any proposed transfer outside the book-entry system, there shall be provided to the Trustee all information necessary
to allow the Trustee to comply with any applicable tax reporting obligations, including without limitation any cost basis reporting obligations
under Internal Revenue Code Section 6045. The Trustee may conclusively rely on the information provided to it and shall have no
responsibility to verify or ensure the accuracy of such information.
(j) None
of the Trustee or any Agent shall have any obligation or duty to monitor, determine or inquire as to compliance with any restrictions
on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including
any transfers between or among Depositary participants, members or beneficial owners in any Global Note) other than to require delivery
of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by
the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.
(k) None
of the Trustee or any Agent shall have any responsibility or obligation to any beneficial owner of a Global Note, a member of, or a participant
in the Depositary or other Person with respect to the accuracy of the records of the Depositary or its nominee or of any participant
or member thereof, with respect to any ownership interest in the Notes or with respect to the delivery to any participant, member, beneficial
owner or other Person (other than the Depositary) of any notice (including any notice of optional redemption) or the payment of any amount,
under or with respect to such Notes.
Article IV.
REDEMPTION
OF NOTES
The provisions of Article III of the Base
Indenture, as amended by the provisions of this Fifth Supplemental Indenture, shall apply to the Notes.
Section 4.1 Optional
Redemption of Notes.
Prior to the Par Call Date, the Company shall
have the right to redeem the Notes at its option, in whole or in part, at any time and from time to time, at a redemption price (the
“Redemption Price”) in cash (expressed as a percentage of principal amount and rounded to three decimal places) calculated
by the Company and equal to the greater of (i) (a) the sum of the present values of the remaining scheduled payments of principal
and interest thereon discounted to the Redemption Date (assuming the Notes matured on the Par Call Date) on a semi-annual basis (assuming
a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 25 basis points less (b) unpaid interest accrued thereon
to, but not including, the Redemption Date, and (ii) 100% of the principal amount of the Notes to be redeemed, plus, in either case,
unpaid interest accrued thereon to, but not including, the Redemption Date. Notwithstanding the foregoing, on or after the Par Call Date,
the Company may redeem the Notes, in whole or in part, at any time and from time to time, at a Redemption Price in cash equal to 100%
of the principal amount of the Notes being redeemed plus unpaid interest accrued thereon to, but not including, the Redemption Date.
The Company shall not redeem the Notes pursuant to this Section 4.1 if on any date the principal amount of the Notes has been accelerated,
and such acceleration has not been rescinded or cured on or prior to the Redemption Date. The Company’s actions and determinations
in determining the Redemption Price shall be conclusive and binding for all purposes, absent manifest error.
Section 4.2 Notice
of Optional Redemption, Selection of Notes.
(a) In
case the Company shall desire to exercise the right to redeem all or, as the case may be, any part of the Notes pursuant to Section 4.1,
it shall fix a date for redemption and it or, at its written request received by the Trustee not fewer than five Business Days prior
(or such shorter period of time as may be acceptable to the Trustee) to the date the notice of redemption is to be sent, the Trustee
in the name of and at the expense of the Company, shall mail or cause to be mailed, or sent by electronic transmission, a notice of such
redemption not fewer than ten calendar days but not more than sixty calendar days prior to the Redemption Date to each Holder of Notes
to be redeemed at its last address as the same appears on the Register; provided that if the Company makes such request of the
Trustee, it shall, together with such request, also give written notice of the Redemption Date to the Trustee, provided further
that the text of the notice shall be prepared by the Company. Such mailing shall be by first class mail or by electronic transmission.
The notice, if sent in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. In any case, failure to give such notice by mail or electronic submission or any defect in the notice to the Holder
of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any
other Note.
(b) Each
such notice of redemption shall specify: (i) the aggregate principal amount of Notes to be redeemed, (ii) the CUSIP number
or numbers of the Notes being redeemed, (iii) the Redemption Date (which shall be a Business Day), (iv) the Redemption Price
at which Notes are to be redeemed, (v) the place or places of payment and that payment will be made upon presentation and surrender
of such Notes and (vi) that interest accrued and unpaid to, but excluding, the Redemption Date will be paid as specified in said
notice, and that on and after said date interest thereon or on the portion thereof to be redeemed will cease to accrue. If fewer than
all the Notes are to be redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP numbers, if any).
In case any Note is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to
be redeemed and shall state that, on and after the Redemption Date, upon surrender of such Note, a new Note or Note in principal amount
equal to the unredeemed portion thereof will be issued.
(c) On
or prior to the Redemption Date specified in the notice of redemption given as provided in this Section 4.2, the Company will deposit
with the Paying Agent (or, if the Company is acting as its own Paying Agent, set aside, segregate and hold in trust as provided in Section 2.5
of the Base Indenture) an amount of money in immediately available funds sufficient to redeem on the Redemption Date all the Notes (or
portions thereof) so called for redemption at the appropriate Redemption Price; provided that if such payment is made on the Redemption
Date, it must be received by the Paying Agent, by 11:00 a.m., New York City time, on such date. The Company shall be entitled to retain
any interest, yield or gain on amounts deposited with the Paying Agent pursuant to this Section 4.2 in excess of amounts required
hereunder to pay the Redemption Price (it being acknowledged that the Trustee has no obligation to invest any such deposit).
(d) If
less than all of the outstanding Notes are to be redeemed, the Trustee will select, by lot or such method as it deems fair and appropriate
or, if applicable, as required by the Depositary for Global Notes, subject to Applicable Procedures (in the case of Global Notes), the
Notes or portions thereof of the Global Notes or the Notes in certificated form to be redeemed (in minimum denominations of $2,000 and
integral multiples of $1,000 in excess thereof). The Notes (or portions thereof) so selected for redemption shall be deemed duly selected
for redemption for all purposes hereof.
Section 4.3 Payment
of Notes Called for Redemption by the Company.
(a) If
notice of redemption has been given as provided in Section 4.2, the Notes or portion of Notes with respect to which such notice
has been given shall become due and payable and if the Paying Agent holds funds sufficient to pay the Redemption Price of the Notes on
the Redemption Date and at the place or places stated in such notice at the Redemption Price, and unless the Company defaults in the
payment of the Redemption Price, then on and after such date (i) interest will cease to accrue on any Notes called for redemption
at the Redemption Date, (ii) on and after the Redemption Date (unless the Company defaults in the payment of the Redemption Price)
such Notes shall cease to be entitled to any benefit or security under the Indenture and (iii) the Holders thereof shall have no
right in respect of such Notes except the right to receive the Redemption Price thereof. On presentation and surrender of such Notes
at a place of payment in said notice specified, the said Notes or the specified portions thereof shall be paid and redeemed by the Company
at the Redemption Price, together with interest accrued thereon to, but excluding, the Redemption Date. Such will be the case whether
or not book-entry transfer of the Notes in book-entry form is made and whether or not the Notes in certificated form, together with necessary
endorsements, are delivered to the Paying Agent; provided, however, if the Redemption Date falls after a Record Date and
on or prior to the corresponding Interest Payment Date, the Company will pay the full amount of accrued and unpaid interest and premium,
if any, due on such Interest Payment Date to the Holder of record at the close of business on the corresponding Record Date.
(b) Notwithstanding
the foregoing, installments of interest that are due and payable on any Interest Payment Date falling on or prior to a Redemption Date
will be payable to the persons who were the registered Holders of the Notes (or one or more predecessor notes) at the close of business
on the relevant Record Date for such Interest Payment Date according to their terms and the provisions of this Indenture. Written notice
of redemption must be given to the Trustee on the date that the Redemption Price is determined and to the Holders of the Notes (or portions
thereof) to be redeemed (with a copy to the Trustee) not less than 10 nor more than 60 days prior to the Redemption Date.
(c) Upon
presentation of any Note redeemed in part only, the Company shall execute and the Trustee shall, upon receipt of an Authentication Order,
authenticate and make available for delivery to the Holder thereof, at the expense of the Company, a new Note or Notes, of authorized
denominations, in principal amount equal to the unredeemed portion of the Notes so presented.
Article V.
GUARANTEE
Sections 5.1, 5.2 and 5.3 hereof shall replace
Sections 12.1, 12.2 and 12.3 of the Base Indenture with respect to the Notes and the Note Guarantee.
Section 5.1 Note
Guarantee.
(a) Subject
to this Article 5, the Guarantor hereby fully and unconditionally guarantees to each Holder of a Note authenticated and delivered
by the Trustee and to the Trustee and its successors and assigns, that:
(1) the
principal of, and premium, if any, and interest, if any, on the Notes will be promptly paid in full when due, whether at maturity, by
acceleration, redemption or otherwise, and interest on the overdue principal of, premium on, if any, irrespective of the validity and
enforceability of the Indenture, the Notes or the obligations of the Company under the Indenture or the Notes, and interest, if any,
on, the Notes, if lawful, and all other obligations of the Company to the Holders or the Trustee under the Indenture or the Notes (including
fees and expenses of counsel) will be promptly paid in full or performed, all in accordance with the terms under the Indenture or the
Notes; and
(2) in
case of any extension of time of payment or renewal of any Notes or any of such other obligations, that same will be promptly paid in
full when due or performed in accordance with the terms of the extension or renewal, whether at Stated Maturity, by acceleration or otherwise.
Failing payment when due of any amount so guaranteed
or any performance so guaranteed for whatever reason, the Guarantor will be obligated to pay the same immediately. The Guarantor agrees
that this is a guarantee of payment and not a guarantee of collection.
(b) The
Guarantor hereby agrees that its obligations under the Indenture and the Notes are full and unconditional, irrespective of the validity,
regularity or enforceability of the Indenture or the Notes, the absence of any action to enforce the same, any waiver or consent by any
Holder of the Notes with respect to any provisions of the Indenture or the Notes, the recovery of any judgment against the Company, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of the
Guarantor. The Guarantor hereby agrees that in the event of a default in payment of the principal of or interest on the Notes entitled
to the Guarantee, whether at the Stated Maturity or upon acceleration, call for redemption or otherwise, legal proceedings may be instituted
by the Trustee on behalf of the Holders or, subject to Section 6.7 of the Base Indenture, by the Holders, on the terms and conditions
set forth in the Indenture, directly against the Guarantor to enforce the Guarantee without first proceeding against the Company. The
Guarantor hereby (i) waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency
or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever,
(ii) acknowledges that any agreement, instrument or document evidencing the Guarantee may be transferred and that the benefit of
its obligations hereunder shall extend to each holder of any agreement, instrument or document evidencing the Guarantee without notice
to it and (iii) covenants that this Note Guarantee will not be discharged except by complete performance of the obligations contained
in the Indenture and the Notes.
(c) If
any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantor or any custodian, trustee, liquidator
or other similar official acting in relation to either the Company or the Guarantor, any amount paid by either to the Trustee or such
Holder, this Note Guarantee, to the extent theretofore discharged, will be reinstated in full force and effect.
(d) The
Guarantor agrees that it will not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. The Guarantor further agrees that, as between the Guarantor, on the
one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the obligations guaranteed hereby may be accelerated
as provided in Article VII for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any declaration of acceleration of such
obligations as provided in Article VII, such obligations (whether or not due and payable) will forthwith become due and payable
by the Guarantor for the purpose of this Note Guarantee.
Section 5.2 Execution
and Delivery of Note Guarantee.
To evidence its Note Guarantee set forth in Section 5.1,
the Guarantor hereby agrees that this Fifth Supplemental Indenture will be executed on its behalf by one of its Officers. If an Officer
whose signature is on this Fifth Supplemental Indenture no longer holds that office at the time the Trustee authenticates the Note on
which the Note Guarantee is endorsed, the Note Guarantee will be valid nevertheless. The delivery of any Note by the Trustee, after the
authentication thereof hereunder, will constitute due delivery of the Note Guarantee set forth in this Fifth Supplemental Indenture on
behalf of the Guarantor.
Section 5.3 Limitation
of Guarantor’s Liability.
The Guarantor, and by its acceptance of Notes,
each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee of the Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or
any similar federal or state law to the extent applicable to the Note Guarantee. To effectuate the foregoing intention, the Trustee,
the Holders and the Guarantor hereby irrevocably agree that the obligations of the Guarantor will be limited to the maximum amount that
will not, after giving effect to all other contingent and fixed liabilities of the Guarantor that are relevant under such laws, result
in the obligations of the Guarantor under its Note Guarantee constituting a fraudulent transfer or conveyance.
Section 5.4 Application
of Certain Terms and Provisions to the Guarantor.
(a) For
purposes of any provision of the Indenture which provides for the delivery by the Guarantor of an Officer’s Certificate and/or
an Opinion of Counsel, the definitions of such terms in Section 1.2 shall apply to the Guarantor as if references therein to the
Company or the Guarantor, as applicable, were references to the Guarantor.
(b) Any
notice or demand which by any provision of the Indenture is required or permitted to be given or served by the Trustee or by the Holders
of Notes to or on the Guarantor may be given or served as described in Section 10.2 of the Base Indenture as if references therein
to the Company were references to the Guarantor.
(c) Upon
any demand, request or application by the Guarantor to the Trustee to take any action under the Indenture, the Guarantor shall furnish
to the Trustee such Officer’s Certificate and Opinion of Counsel as are required in Section 10.1 as if all references therein
to the Company were references to the Guarantor.
Article VI.
ADDITIONAL
COVENANTS
The covenants set forth in Sections 4.3 and 4.4
of the Base Indenture and the following additional covenants shall apply with respect to the Notes so long as any of the Notes remain
outstanding:
Section 6.1 Maintenance
of Total Unencumbered Assets.
The Company will not have at any time Total Unencumbered
Assets of less than 125% of the aggregate principal amount of all of the Company’s and its Subsidiaries’ outstanding Unsecured
Debt determined on a consolidated basis in accordance with GAAP.
For purposes of this Section 6.1, Debt shall
be deemed to be “incurred” by the Company or any of its Subsidiaries whenever the Company or such Subsidiary shall create,
assume, guarantee (on a non-contingent basis) or otherwise become liable in respect thereof.
Section 6.2 Secured
Debt Test.
The Company will not, and will not permit any
of its Subsidiaries to, incur any Debt secured by any Lien on any of its or any of its Subsidiaries’ property or assets, whether
owned on the date hereof or subsequently acquired, if, immediately after giving effect to the incurrence of such Debt and the application
of the proceeds from such Debt on a pro forma basis, the aggregate principal amount (determined on a consolidated basis in accordance
with GAAP) of all of its and its Subsidiaries’ outstanding Debt that is secured by a Lien on any of its and its Subsidiaries’
property or assets is greater than 50% of the sum of (without duplication):
| (1) | The Company’s and its Subsidiaries’ Total Assets as of
the last day of the then most recently ended fiscal quarter for which financial information
is available prior to the incurrence of such additional Debt; and |
| (2) | the aggregate purchase price of any real estate assets or mortgages
receivable acquired, and the aggregate amount of any securities offering proceeds received
(to the extent such proceeds were not used to acquire real estate assets or mortgages receivable
or used to reduce Debt), by the Company or any of its Subsidiaries since the end of such
fiscal quarter, including the proceeds obtained from the incurrence of such additional Debt
and any substantially concurrent offering of other securities. |
For purposes of this Section 6.2, Debt shall
be deemed to be “incurred” by the Company or any of its Subsidiaries whenever the Company or such Subsidiary shall create,
assume, guarantee (on a non-contingent basis) or otherwise become liable in respect thereof.
Section 6.3 Existence.
Except as permitted by Section 6.4, the Company
will do or cause to be done all things necessary to preserve and keep in full force and effect the existence, rights, both charter and
statutory, and franchises of the Company and the Guarantor will do or cause to be done all things necessary to preserve and keep in full
force and effect the existence, rights, both charter and statutory, and franchises of the Guarantor; provided, however,
that neither the Company nor the Guarantor will be required to preserve any right or franchise if the Guarantor’s board of directors
(or any duly authorized committee of that board of directors) determines that the preservation of the right or franchise is no longer
desirable in the conduct of the Company or the Guarantor’s business.
Section 6.4 Merger,
Consolidation or Sale.
The Company and the Guarantor may consolidate
with, or sell, lease or convey all or substantially all of the Company’s or the Guarantor’s respective assets to, or merge
with or into, any other entity, provided that the following conditions are met:
(a) the
Company or the Guarantor, as the case may be, shall be the continuing entity, or the successor entity (if other than Company or the Guarantor,
as the case may be) formed by or resulting from any consolidation or merger or which shall have received the transfer of assets shall
be domiciled in the United States, any state thereof or the District of Columbia and, in the case of the Company, shall expressly assume
by supplemental indenture payment of the principal of and premium, if any, and interest on all of the Notes and the due and punctual
performance and observance of all of the covenants and conditions in the Indenture or in the case of the Guarantor, shall expressly assume
by supplemental indenture the payment of all amounts due under the Note Guarantee and the due and punctual performance and observance
of all of the covenants and conditions of the Guarantor in the Indenture and the Note Guarantee, as the case may be;
(b) immediately
after giving effect to the transaction, no Event of Default under the Indenture, and no event which, after notice or the lapse of time,
or both, would become an Event of Default, shall have occurred and be continuing; and
(c) an
Officer’s Certificate and Opinion of Counsel, each stating that the conditions precedent relating to such supplemental indenture
have been met, such supplemental indenture is permitted under the indenture and such supplemental indenture is the valid legal and binding
obligation of the surviving entity, shall be delivered to the Trustee.
In the event of any transaction described in and
complying with the conditions listed in this Section 6.4, but not a lease, in which the Company and/or the Guarantor are not the
continuing entity, the successor person formed or remaining shall succeed, and be substituted for, and may exercise every right and power
of the Company and/or the Guarantor, and the Company and/or the Guarantor shall be discharged from their respective obligations under
the Notes and the Indenture.
Section 6.5 Payment
of Taxes and Other Claims.
Each of the Company and the Guarantor will pay
or discharge or cause to be paid or discharged, before the same shall become delinquent, all taxes, assessments and governmental charges
levied or imposed on it or any of its Subsidiaries or on its or any such Subsidiary’s income, profits or property and all lawful
claims for labor, materials and supplies that, if unpaid, might by law become a Lien upon its property or the property of any of its
Subsidiaries; provided, however, that neither the Company nor the Guarantor will be required to pay or discharge or cause
to be paid or discharged any tax, assessment, charge or claim the amount, applicability or validity of which is being contested in good
faith.
Section 6.6 Provision
of Financial Information.
For so long as the Notes are outstanding, if at
any time the Guarantor is not subject to the periodic reporting requirements of the Exchange Act for any reason, the Company will, at
the Company’s option, either (i) post on a publicly available website, (ii) post on IntraLinks or any comparable password
protected online data system requiring user identification and a confidentiality acknowledgement (a “Confidential Datasite”),
or (iii) deliver to the Trustee and the Holders of the Notes within 15 days of the filing date that would be applicable to a non-accelerated
filer at that time pursuant to applicable SEC rules and regulations, the quarterly and audited annual financial statements and accompanying
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” that would have been required
to be contained in annual reports on Form 10-K and quarterly reports on Form 10-Q, respectively, had the Company been subject
to such Exchange Act reporting requirements. The Trustee shall have no obligation to determine whether or not such reports, information,
statements or documents have been filed, posted or delivered. Delivery of such reports, information, statements and documents to the
Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute notice of any information contained
therein or determinable from information contained therein, including the Company’s compliance with any of the Company’s
covenants under the Indenture, as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate. If the Company
elects to furnish such reports via a Confidential Datasite, access to the Confidential Datasite will be provided upon request to Holders,
beneficial owners of and bona fide potential investors in the Notes.
Reports, information and documents filed with
the SEC via the EDGAR system will be deemed to be delivered to the Trustee as of the time of such filing via EDGAR for purposes of this
covenant; provided, however, that the Trustee shall have no obligation whatsoever to determine whether or not such information, documents
or reports have been filed via EDGAR. Delivery of such reports, information and documents 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 Guarantor’s compliance with any of its covenants relating to the Notes (as to
which the Trustee is entitled to rely exclusively on an Officer’s Certificate).
Article VII.
DEFAULTS
AND REMEDIES
Sections 7.1 and 7.2 hereof shall replace
Sections 6.1 and 6.2 of the Base Indenture with respect to the Notes only.
Section 7.1 Events
of Default.
“Event of Default,” wherever
used herein or in the Base Indenture with respect to the Notes, means any one of the following events (whatever the reason for such Event
of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):
| (a) | default for 30 days in the payment of any installment of interest under
the Notes; |
| (b) | default in the payment of the principal amount or Redemption Price due
with respect to the Notes, when the same becomes due and payable; |
| (c) | failure by the Company or the Guarantor to comply with any of the Company’s
or the Guarantor’s respective other agreements in the Notes, the Note Guarantee or
the Indenture with respect to the Notes upon receipt by the Company of notice of such default
by the Trustee or by Holders of at least 25% in principal amount of the Notes then outstanding
and the Company’s failure to cure (or obtain a waiver of) such default within 90 days
after it receives such notice; |
| (d) | failure to pay any Debt (other than Non-Recourse Debt) for monies borrowed
by the Company, the Guarantor or any of their respective Significant Subsidiaries in an outstanding
principal amount in excess of the Cross-Default Threshold at final maturity or upon acceleration
after the expiration of any applicable grace period, which Debt (other than Non-Recourse
Debt) is, or has become, the primary obligation of the Company or the Guarantor and is not
discharged, or such default in payment or acceleration is not cured or rescinded, within
60 days after written notice to the Company from the Trustee (or to the Company and the Trustee
from Holders of at least 25% in principal amount of the outstanding Notes); |
| (e) | the Note Guarantee ceases to be in full force and effect or is declared
null and void in a judicial proceeding or the Guarantor denies or disaffirms its obligations
under this Indenture or the Note Guarantee; or |
| (f) | the Company, the Guarantor or any of their respective Significant Subsidiaries
pursuant to or under or within meaning of any Bankruptcy Law: |
| (i) | commences a voluntary case or proceeding seeking liquidation, reorganization
or other relief with respect to the Company, the Guarantor or any such Significant Subsidiary
or its debts or seeking the appointment of a trustee, receiver, liquidator, custodian or
other similar official of the Company, the Guarantor or any such Significant Subsidiary or
any substantial part of the property of the Company, the Guarantor or any such Significant
Subsidiary; or |
| (ii) | consents to any such relief or to the appointment of or taking possession
by any such official in an involuntary case or other proceeding commenced against the Company,
the Guarantor or any such Significant Subsidiary; or |
| (iii) | consents to the appointment of a custodian of it or for all or substantially
of its property; or |
| (iv) | makes a general assignment for the benefit of creditors; or |
| (g) | an involuntary case or other proceeding shall be commenced against the
Company, the Guarantor or any of their respective Significant Subsidiaries seeking liquidation,
reorganization or other relief with respect to the Company, the Guarantor or any such Significant
Subsidiary or its debts under any bankruptcy, insolvency or other similar law now or hereafter
in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of the Company, the Guarantor or any such Significant Subsidiary or any
substantial part of the property of the Company, the Guarantor or any such Significant Subsidiary,
and such involuntary case or other proceeding shall remain undismissed and unstayed for a
period of thirty (30) calendar days; or |
| (h) | a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that: |
| (i) | is for relief against the Company, the Guarantor or any of their respective
Significant Subsidiaries in an involuntary case or proceeding; |
| (ii) | appoints a trustee, receiver, liquidator, custodian or other similar
official of the Company, the Guarantor or any such Significant Subsidiary or any substantial
part of the property of the Company, the Guarantor or any such Significant Subsidiary; or |
| (iii) | orders the liquidation of the Company, the Guarantor or any such
Significant Subsidiary, |
in each case in this Clause (h), the order or decree remains
unstayed and in effect for thirty (30) calendar days.
The term “Bankruptcy Law” means title 11, U.S. Code
or any similar Federal or State law for the relief of debtors.
Section 7.2 Acceleration
of Maturity; Rescission and Annulment.
If an Event of Default with respect to the Notes
at the time outstanding occurs and is continuing (other than an Event of Default referred to in Sections 7.1(f), 7.1(g) or
7.1(h), which shall result in an automatic acceleration), then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the outstanding Notes may declare the principal amount of and accrued and unpaid interest, if any, on all of the
outstanding Notes to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders),
and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately
due and payable. If an Event of Default specified in Sections 7.1(f), 7.1(g) or 7.1(h) shall occur, the principal amount
(or specified amount) of and accrued and unpaid interest, if any, on all outstanding Notes shall automatically become and be immediately
due and payable without any declaration or other act on the part of the Trustee or any Holder.
At any time after the principal amount of and
premium, if any, and interest on the Notes shall have been so declared due and payable, and before any judgment or decree for the payment
of the monies due shall have been obtained or entered as hereinafter provided, Holders of a majority in aggregate principal amount of
the Notes then outstanding on behalf of the Holders of all of the Notes then outstanding, by written notice to the Company and to the
Trustee, may waive all Defaults or Events of Default and rescind and annul such declaration and its consequences, subject in all respects
to Section 6.13 of the Base Indenture, if: (a) the Company or the Guarantor has deposited with the Trustee all required payments
of the principal of, and premium, if any, and interest on, the Notes, plus the reasonable compensation and reimbursement for the Trustee’s
expenses, disbursements and advances pursuant to Section 7.7 of the Base Indenture; and (b) all Events of Default, other than
the non-payment of accelerated principal of (or specified portion thereof), or premium, if any, and interest on, the Notes that have
become due solely because of such acceleration, have been cured or waived. No such rescission and annulment shall extend to or shall
affect any subsequent default or Event of Default, or shall impair any right consequent thereon. The Company shall notify in writing
a Responsible Officer of the Trustee, promptly upon becoming aware thereof, of any Event of Default, as provided in Section 4.3
of the Base Indenture and the steps to be taken to cure such Event of Default.
Article VIII.
AMENDMENTS
AND WAIVERS
Sections 8.1 and 8.2 hereof shall replace
Sections 9.1 and 9.2 of the Base Indenture with respect to the Notes only.
Section 8.1 Without
Consent of Holders.
The Company, when authorized by resolutions of
the board of directors of the Guarantor, and the Trustee may, from time to time and at any time, enter into an indenture or indentures
supplemental without the consent of the Holders of the Notes hereto for one or more of the following purposes:
(a) to
cure any ambiguity, defect or inconsistency in the Indenture; provided that this action shall not adversely affect the interests
of the Holders of the Notes in any material respect;
(b) to
evidence a successor to the Company as obligor or to the Guarantor as guarantor under the Indenture with respect to the Notes;
(c) to
make any change that does not adversely affect the interests of the Holders of any Notes then outstanding;
(d) to
provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture;
(e) to
provide for the acceptance of appointment of a successor Trustee or facilitate the administration of the trusts under the Indenture by
more than one Trustee;
(f) to
comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA;
(g) to
reflect the release of the Guarantor as guarantor, in accordance with the Indenture;
(h) to
secure the Notes;
(i) to
add guarantors with respect to the Notes; and
(j) to
conform the text of the Indenture, any Guarantee or the Notes to any provision of the description thereof set forth in the Prospectus.
Upon the written request of the Company, accompanied
by a copy of the resolutions of the board of directors of the Guarantor certified by the corresponding Secretary or Assistant Secretary,
authorizing the execution of any supplemental indenture, the Trustee is hereby authorized to join with the Company and the Guarantor
in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations that may be therein
contained and to accept the conveyance, transfer and assignment of any property thereunder, but the Trustee shall not be obligated to,
but may in its discretion, enter into any supplemental indenture that affects the Trustee’s own rights, duties or immunities under
the Indenture or otherwise.
Any supplemental indenture authorized by the provisions
of this Section 8.1 may be executed by the Company, the Guarantor and the Trustee without the consent of the Holders of any of the
Notes at the time outstanding, notwithstanding any of the provisions of Section 8.2.
Section 8.2 With
Consent of Holders.
With the consent of the Holders of a majority
in aggregate principal amount of the Notes at the time outstanding, the Company, the Guarantor and the Trustee may, from time to time
and at any time, 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 the Indenture or any supplemental indenture or modifying in any manner the rights
of the Holders of the Notes; provided that no such supplemental indenture shall, without the consent of the Holder of each Note
so affected:
(a) reduce
the principal amount of the Notes whose Holders must consent to an amendment, supplement or waiver;
(b) reduce
the rate of or extend the time for payment of interest (including default interest) on the Notes;
(c) reduce
the principal of, or premium, if any, on, or change the Stated Maturity of, the Notes;
(d) waive
a Default or Event of Default in the payment of the principal of, or premium, if any, or interest on, the Notes (except a rescission
of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of the then outstanding Notes and a
waiver of the payment default that resulted from such acceleration);
(e) make
the principal of, or premium, if any, or interest on, the Notes payable in any currency other than that stated in the Notes;
(f) make
any change in Section 6.8 of the Base Indenture, 6.13 of the Base Indenture or Section 8.2(f) of this Fifth Supplemental
Indenture (this sentence);
(g) waive
a redemption payment with respect to the Notes; or
(h) release
the Guarantor as a guarantor of the Notes other than as provided in the Indenture or modify the Note Guarantee in any manner adverse
to the Holders.
Upon the written request of the Company, accompanied
by a copy of the resolutions of the board of directors of the Guarantor certified by the corresponding Secretary or Assistant Secretary,
authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of an Officer’s Certificate
certifying receipt of the requisite consent of Holders as aforesaid, upon which the Trustee shall be entitled to conclusively rely, the
Trustee shall join with the Company and the Guarantor in the execution of such supplemental indenture unless such supplemental indenture
affects the Trustee’s own rights, duties or immunities under the Indenture or otherwise, in which case the Trustee may, but shall
not be obligated to, enter into such supplemental indenture. In executing or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modification thereby of the trusts created by the Indenture, the Trustee shall receive,
and shall be fully protected in relying upon, an Opinion of Counsel or an Officer’s Certificate or both stating that the execution
of such supplemental indenture is authorized or permitted by the Indenture, that all conditions precedent to the execution of such supplemental
indenture have been complied with, and that the supplemental indenture is a legal, valid and binding obligation of the Company and the
Guarantor as applicable, enforceable against it in accordance with its terms.
It shall not be necessary for the consent of the
Holders under this Section 8.2 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient
if such consent shall approve the substance thereof.
Article IX.
MEETINGS
OF HOLDERS OF NOTES
Section 9.1 Purposes
for Which Meetings May Be Called.
A meeting of Holders may be called at any time
and from time to time pursuant to this Article IX to make, give or take any request, demand, authorization, direction, notice, consent,
waiver or other act provided by the Indenture to be made, given or taken by Holders.
Section 9.2 Call,
Notice and Place of Meetings.
(a) The
Trustee may at any time call a meeting of Holders for any purpose specified in Section 9.1, to be held at such time and at such
place in The City of New York, New York as the Trustee shall determine. Notice of every meeting of Holders, 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 10.2 of the Base Indenture, not less than 21 nor more than 180 days prior to the date fixed for the meeting.
(b) In
case at any time the Company, the Guarantor or the Holders of at least 10% in principal amount of the outstanding Notes shall have requested
the Trustee to call a meeting of the Holders for any purpose specified in Section 9.1, by written request setting forth in reasonable
detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed notice of or made the first publication
of 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, the Guarantor, if applicable, or the Holders in the amount above specified, as the case may
be, may determine the time and the place in the City of New York, New York, for such meeting and may call such meeting for such purposes
by giving notice thereof as provided in Clause (a) of this Section 9.2.
Section 9.3 Persons
Entitled to Vote at Meetings.
To be entitled to vote at any meeting of Holders,
a person shall be (a) a Holder of one or more outstanding Notes, or (b) a person appointed by an instrument in writing as proxy
for a Holder or Holders of one or more outstanding Notes by such Holder or Holders; provided, that none of the Company, any other
obligor upon the Notes or any Affiliate of the Company shall be entitled to vote at any meeting of Holders or be counted for purposes
of determining a quorum at any such meeting in respect of any Notes owned by such persons. The only persons who shall be entitled to
be present or to speak at any meeting of Holders shall be the persons entitled to vote at such meeting and their counsel, any representatives
of the Trustee and its counsel, any representatives of the Guarantor and its counsel and any representatives of the Company and its counsel.
Section 9.4 Quorum;
Action.
The persons entitled to vote a majority in principal
amount of the outstanding Notes shall constitute a quorum for a meeting of Holders; provided, however, that if any action
is to be taken at the meeting with respect to a consent or waiver which may be given by the Holders of not less than a specified percentage
in principal amount of the outstanding Notes, the persons holding or representing the specified percentage in principal amount of the
outstanding Notes will constitute a quorum. In the absence of a quorum within 30 minutes after the time appointed for any such meeting,
the meeting shall, if convened at the request of Holders, be dissolved. In any other case the meeting may be adjourned for a period of
not less than 10 days as 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 a period of not less than 10 days as determined by
the chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall
be given as provided in Section 9.2, except that such notice need be given only once not less than five 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 Notes which shall constitute a quorum.
Except as limited by the proviso to Section 8.2,
any resolution presented at 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 principal amount of the outstanding Notes; provided, however, that,
except as limited by the proviso to Section 8.2, any resolution with respect to any request, demand, authorization, direction, notice,
consent, waiver or other action which the Indenture expressly provides may be made, given or taken by the Holders of a specified percentage,
which is less than a majority, in principal amount of the outstanding Notes 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 Notes. Any such resolution passed or decision taken at any meeting of Holders duly held in accordance with
this Section 9.4 shall be binding on all the Holders, whether or not such Holders were present or represented at the meeting.
Section 9.5 Determination
of Voting Rights; Conduct and Adjournment of Meetings.
(a) Notwithstanding
any other provisions of the Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders
in regard to proof of the holding of Notes 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.
(b) 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 9.2(b), in which case the Company, the Guarantor or the Holders 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 principal amount of the outstanding Notes of such series represented
at the meeting.
(c) At
any meeting, each Holder or proxy shall be entitled to one vote for each $1,000 principal amount of Notes held or represented by him;
provided, however, that no vote shall be cast or counted at any meeting in respect of any Note 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 or proxy.
(d) Any
meeting of Holders duly called pursuant to Section 9.2 at which a quorum is present may be adjourned from time to time by persons
entitled to vote a majority in principal amount of the outstanding Notes represented at the meeting; and the meeting may be held as so
adjourned without further notice.
Section 9.6 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 Notes 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 in triplicate of all votes cast at the meeting.
A record, at least in triplicate, 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 9.2 and, if applicable, Section 9.4. 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 the Guarantor, 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.
Article X.
MISCELLANEOUS
PROVISIONS
Section 10.1 Evidence
of Compliance with Conditions Precedent, Certificates to Trustee.
This Section 10.1 shall replace Sections 10.4
and 10.5 of the Base Indenture with respect to the Notes only.
Upon any application or demand by the Company
to the Trustee to take any action under any of the provisions of the Indenture, the Company shall furnish to the Trustee an Officer’s
Certificate in a form reasonably acceptable to the Trustee stating that all covenants and conditions precedent, if any, provided for
in the Indenture relating to the proposed action have been complied with, and an Opinion of Counsel in a form reasonably acceptable to
the Trustee stating that, in the opinion of such counsel, all such covenants and conditions precedent have been complied with. The Officer’s
Certificate or Opinion of Counsel provided for in the Indenture and delivered to the Trustee with respect to compliance with a condition
or covenant provided for in the Indenture shall include: (1) a statement that the person making such Officer’s Certificate
or Opinion of Counsel has read such covenant or condition; (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statement or opinion contained in such Officer’s Certificate or Opinion of Counsel is based; (3) a
statement that, in the opinion of 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 (4) a statement
as to whether or not, in the opinion of such person, such condition or covenant has been complied with; provided, however,
that with respect to matters of fact an Opinion of Counsel may rely on an Officer’s Certificate or certificates of public officials.
Section 10.2 No
Recourse Against Others.
This Section 10.2 shall replace Section 10.8
of the Base Indenture with respect to the Notes only.
Except as otherwise expressly provided in Article V
of this Fifth Supplemental Indenture, no recourse for the payment of the principal of (including the Redemption Price upon redemption
pursuant to Article IV) or premium, if any, or interest on any Note or for any claim based thereon or otherwise in respect thereof,
and no recourse under or upon any obligation, covenant or agreement of the Company in this Fifth Supplemental Indenture or in any Note,
or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, partner, member,
manager, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Guarantor, the Company or any of
the Company’s Subsidiaries or of any successor thereto, either directly or through the Guarantor, the Company or any of the Company’s
Subsidiaries or any successor thereto, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as
a condition of, and as a consideration for, the execution of this Fifth Supplemental Indenture and the issue of the Notes.
Section 10.3 Trust
Indenture Act Controls.
If any provision of this Fifth Supplemental Indenture
limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Fifth Supplemental Indenture
by the TIA, such required or deemed provision shall control.
Section 10.4 Governing
Law.
THIS FIFTH SUPPLEMENTAL INDENTURE AND THE NOTES, INCLUDING
ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THE BASE INDENTURE, FIFTH SUPPLEMENTAL INDENTURE OR THE NOTES, SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK.
Section 10.5 Counterparts.
This Fifth Supplemental Indenture may be executed
in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement. The exchange of copies of this Fifth Supplemental
Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Fifth
Supplemental Indenture as to the parties hereto and may be used in lieu of the original Fifth Supplemental Indenture for all purposes.
The words “execution,” “signed,” “signature,” and words of like import in this Fifth Supplemental
Indenture shall include images of manually executed signatures transmitted by facsimile, email or other electronic format (including,
without limitation, “pdf,” “tif” or “jpg”) and other electronic signatures (including without limitation,
DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other
record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and
enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable
law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records
Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the
Uniform Commercial Code. Without limitation to the foregoing, and anything in this Fifth Supplemental Indenture to the contrary notwithstanding,
(a) any Officer’s Certificate, Company Order, Opinion of Counsel, Note, Note Guarantee, opinion of counsel, instrument, agreement
or other document delivered pursuant to this Fifth Supplemental Indenture may be executed, attested and transmitted by any of the foregoing
electronic means and formats, (b) all references in Section 2.3 of the Base Indenture, Section 5.2 of this Fifth Supplemental
Indenture or elsewhere in the Indenture to the execution, attestation or authentication of any Note, any Guarantee endorsed on any Note,
or any certificate of authentication appearing on or attached to any Note by means of a manual or facsimile signature shall be deemed
to include signatures that are made or transmitted by any of the foregoing electronic means or formats, and (c) any requirement
in this Indenture that any signature be made under a corporate seal (or facsimile thereof) shall not be applicable to the Notes or any
Note Guarantees. The Company agrees to assume all risks arising out of the use of using digital signatures, including without limitation
the risk of the Trustee acting on unauthorized instructions.
Section 10.6 Successors.
All agreements of the Company and the Guarantor
in this Fifth Supplemental Indenture and the Notes shall bind their respective successors.
All agreements of the Trustee in this Fifth Supplemental
Indenture shall bind its successor.
Section 10.7 Severability.
In case any provision in this Fifth Supplemental
Indenture or in the Notes 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 10.8 Table
of Contents, Headings, Etc.
The Table of Contents and headings of the Articles
and Sections of this Fifth Supplemental Indenture have been inserted for convenience of reference only, are not to be considered
a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.
Section 10.9 Ratifications.
The Base Indenture, as supplemented and amended
by this Fifth Supplemental Indenture, is in all respects ratified and confirmed. The Indenture shall be read, taken and construed as
one and the same instrument. All provisions included in this Fifth Supplemental Indenture with respect to the Notes supersede any conflicting
provisions included in the Base Indenture unless not permitted by law. The Trustee accepts the trusts created by the Indenture, and agrees
to perform the same upon the terms and conditions of the Indenture.
Section 10.10 Effectiveness.
The provisions of this Fifth Supplemental Indenture
shall become effective as of the date hereof.
Section 10.11 The
Trustee.
The Trustee accepts the trusts created by the
Indenture, and agrees to perform the same upon the terms and conditions of the Indenture. The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this Fifth Supplemental Indenture or the due execution thereof
by the Company. The recitals contained herein shall be taken as the statements solely of the Company, and the Trustee assumes no responsibility
for the correctness thereof. If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Notes),
excluding any creditor relationship listed in TIA Section 311(b), the Trustee shall be subject to the provisions of the TIA regarding
the collection of the claims against the Company (or any such other obligor). If the Trustee has or shall acquire a conflicting interest
within the meaning of the TIA, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by,
and subject to the provisions of, the TIA and the Indenture.
IN WITNESS WHEREOF, the parties hereto have caused
this Fifth Supplemental Indenture to be duly executed by their respective officers hereunto duly authorized, all as of the day and year
first written above.
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SAFEHOLD GL HOLDINGS LLC , as the Company |
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By: Safehold Inc., its managing member |
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By: |
/s/ Brett Asnas |
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Name: |
Brett Asnas |
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Title: |
Chief Financial Officer |
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SAFEHOLD INC., as Guarantor |
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By: |
/s/ Brett Asnas |
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Name: |
Brett Asnas |
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Title: |
Chief Financial Officer |
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U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as the Trustee |
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By: |
/s/ Gagendra Hiralal |
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Name: |
Gagendra Hiralal |
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Title: |
Vice President |
[Signature Page to Fifth Supplemental
Indenture]
EXHIBIT A
SAFEHOLD GL HOLDINGS LLC
THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS
DEFINED IN THE FIFTH SUPPLEMENTAL INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF,
AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 3.2 OF THE FIFTH SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.2(a) OF THE FIFTH SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF SAFEHOLD GL HOLDINGS LLC UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE
OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SAFEHOLD GL HOLDINGS LLC
5.650 % SENIOR NOTES DUE 2035
Certificate No. [ ]
CUSIP No.: 785931 AB2
ISIN: US785931AB23
$[ ]
Safehold GL Holdings LLC, a Delaware limited liability company (herein
called the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof),
for value received hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of [ ] MILLION DOLLARS
($[ ]), or such lesser amount as is set forth in the Schedule of Exchanges of Interests in the Global Note on the other side of
this Note,] on January 15, 2035 at the office or agency of the Company maintained for that purpose in accordance with the terms
of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment
of public and private debts, and to pay interest semi-annually in arrears on January 15 and July 15 of each year, commencing
on July 15, 2025, to the Holder in whose name the Note is registered in the security register on the preceding January 1 or
July 1, whether or not a Business Day, as the case may be, in accordance with the terms of the Indenture. Interest on the Notes
will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Company shall pay interest on any Notes in certificated
form by check mailed to the address of the person entitled thereto; provided, however, that a Holder of any Notes in certificated form
in the aggregate principal amount of more than $2,000,000 may specify by written notice to the Company that it pay interest by wire transfer
of immediately available funds to the account specified by the Holder in such notice, or on any Global Notes by wire transfer of immediately
available funds to the account of the Depositary or its nominee. This Note shall not be valid or become obligatory for any purpose until
the certificate of authentication hereon shall have been signed manually by the Trustee or a duly authorized authenticating agent under
the Indenture.
IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.
Dated: [ ], 20[ ]
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SAFEHOLD GL HOLDINGS LLC |
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By: Safehold Inc., |
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Its managing member |
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By: |
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Name: |
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Title: |
TRUSTEE’S CERTIFICATE OF AUTHENTICATION
This is one of the Notes described in the within-named Indenture.
Dated: [ ], 20[ ]
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U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee |
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By: |
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Authorized Signatory |
[FORM OF REVERSE SIDE OF NOTE]
SAFEHOLD GL HOLDINGS LLC
5.650% SENIOR NOTES DUE 2035
This Note is one of a duly authorized issue of Securities of the Company,
designated as its 5.650% Senior Notes due 2035 (herein called the “Notes”), issued under and pursuant to an Indenture
dated as of May 7, 2021 (herein called the “Base Indenture”), among the Company (then known as Safehold Operating
Partnership LP), Safehold Inc. and U.S. Bank National Association, as trustee, as supplemented by the Third Supplemental Indenture,
dated as of March 31, 2023 (herein called the “Third Supplemental Indenture”), among the Company, the Guarantor
(then known as iStar Inc., as successor in interest to Safehold Inc.) and U.S. Bank Trust Company, National Association (as successor
in interest to U.S. Bank National Association), as trustee (herein called the “Trustee”), as further supplemented
by the Fifth Supplemental Indenture, dated as of November 14, 2024 (herein called the “Fifth Supplemental Indenture,”
and together with the Base Indenture and Third Supplemental Indenture, the “Indenture”), among the Company, the Guarantor
and the Trustee, to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company, the Guarantor and the Holders of the
Notes. Capitalized terms used but not otherwise defined in this Note shall have the respective meanings ascribed thereto in the Indenture.
If an Event of Default (other than an Event of Default specified in
Sections 7.1(f), 7.1(g) and 7.1(h) of the Fifth Supplemental Indenture with respect to the Company) occurs and is continuing,
the principal of, premium, if any, and accrued and unpaid interest on all Notes may be declared to be due and payable by either the Trustee
or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, and, upon said declaration the same shall
be immediately due and payable. If an Event of Default specified in Sections 7.1(f), 7.1(g) and 7.1(h) of the Fifth Supplemental
Indenture occurs, the principal of and premium, if any, and interest accrued and unpaid on all the Notes shall be immediately and automatically
due and payable without necessity of further action.
The Indenture contains provisions permitting the Company, the Guarantor
and the Trustee, with the consent of the Holders of a majority in aggregate principal amount of the Notes at the time outstanding, to
execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture
or of any supplemental indenture or modifying in any manner the rights of the Holders of the Notes, subject to exceptions set forth in
Section 8.2 of the Fifth Supplemental Indenture. Subject to the provisions of the Indenture, the Holders of a majority in aggregate
principal amount of the Notes at the time outstanding may, on behalf of the Holders of all of the Notes, waive any past default or Event
of Default, subject to exceptions set forth in the Indenture.
No reference herein to the Indenture and no provision of this Note
or of the Indenture shall impair, as among the Company and the Holder of the Notes, the obligation of the Company, which is absolute
and unconditional, to pay the principal of, premium, if any, and interest on this Note at the place, at the respective times, at the
rate and in the coin or currency prescribed herein and in the Indenture.
Interest on the Notes shall be computed on the basis of a 360-day
year consisting of twelve 30-day months.
The Notes are issuable in fully registered form, without coupons,
in minimum denominations of $2,000 principal amount and any multiple of $1,000. At the office or agency of the Company referred to on
the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but
with payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any
registration or exchange of Notes, Notes may be exchanged for a like aggregate principal amount of Notes of any other authorized denominations.
The Company shall have the right to redeem the Notes under certain
circumstances as set forth in Section 4.1, Section 4.2 and Section 4.3 of the Fifth Supplemental Indenture.
The Notes are not subject to redemption through the operation of any
sinking fund.
The obligations of the Guarantor to the Holders of the Notes and to
the Trustee pursuant to the Note Guarantee and the Indenture are expressly set forth in Article V of the Fifth Supplemental Indenture
and reference is hereby made to such Indenture for the precise terms of the Note Guarantee.
Except as expressly provided in Article V of the Fifth Supplemental
Indenture, no recourse for the payment of the principal of (including the Redemption Price (as defined in Section 4.1 of the Fifth
Supplemental Indenture) upon redemption pursuant to Article IV of the Fifth Supplemental Indenture) or any premium, if any, or interest
on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be
had against any incorporator, stockholder, partner, member, manager, employee, agent, officer, director or subsidiary, as such, past,
present or future, of the Guarantor, the Company or any of the Company’s Subsidiaries or of any successor thereto, either directly
or through the Guarantor, the Company or any of the Company’s subsidiaries or of any successor thereto, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood
that all such liability is hereby expressly waived and released as a condition of, and as consideration for, the execution of the Indenture
and the issue of this Note.
ASSIGNMENT FORM
To assign this Note, fill in the form below:
(I) or (we) assign and transfer this Note to: |
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(Insert assignee’s legal name) |
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(Insert assignee’s soc. sec. or tax I.D. no.) |
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(Print or type assignee’s name, address and zip code) |
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.
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Your Signature: |
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(Sign exactly as your name appears on the face of this Note) |
* Participant in a recognized Signature Guarantee Medallion Program
(or other signature guarantor acceptable to the Trustee).
SCHEDULE OF EXCHANGES OF INTERESTS IN THE
GLOBAL NOTE *
The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in
this Global Note, have been made:
Date of
Exchange |
|
Amount of
decrease in
principal amount
at maturity of
this Global Note |
|
Amount of
increase in
principal amount
at maturity of
this Global Note |
|
Principal
amount
at maturity of
this Global Note
following such
decrease(or
increase) |
|
Signature
of
authorized
officer of
Trustee or
Custodian |
* This Schedule should be included only if the Note is issued
in global form.
Exhibit 5.1
|
355 South Grand Avenue, Suite 100 |
Los Angeles, California 90071-1560 |
Tel: +1.213.485.1234 Fax: +1.213.891.8763 |
www.lw.com |
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FIRM / AFFILIATE OFFICES |
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Austin |
Milan |
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Beijing |
Munich |
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Boston |
New York |
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Brussels |
Orange County |
November 14, 2024 |
Century City |
Paris |
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Chicago |
Riyadh |
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Dubai |
San Diego |
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Düsseldorf |
San Francisco |
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Frankfurt |
Seoul |
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Hamburg |
Silicon Valley |
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Hong Kong |
Singapore |
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Houston |
Tel Aviv |
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London |
Tokyo |
Safehold GL Holdings LLC |
Los Angeles |
Washington, D.C. |
Safehold Inc. |
Madrid |
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1114 Avenue of the Americas, 39th Floor |
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New York, New York 10036 |
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| Re: | $400,000,000 Aggregate Principal Amount of Safehold GL Holdings LLC’s 5.650% Senior Notes Due
2035 |
To the addressees set forth above:
We
have acted as special counsel to Safehold GL Holdings LLC, a Delaware limited liability company (the “Operating Company”),
and Safehold Inc., a Maryland corporation (the “Guarantor”), in connection with the issuance of $400,000,000
aggregate principal amount of the Operating Company’s 5.650% Senior Notes due 2035 (the “Notes”) and the
guarantee of the Notes (the “Guarantee”) by the Guarantor, under an indenture dated May 7, 2021 (the “Base
Indenture”), among the Operating Company (then known as Safehold Operating Partnership LP), Safehold Inc., a Maryland corporation,
and U.S. Bank National Association, as trustee, as supplemented by a Third Supplemental Indenture, dated as of March 31, 2023 (the
“Third Supplemental Indenture”), among the Operating Company, the Guarantor (then known as iStar Inc., as successor
in interest to Safehold Inc.) and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association),
as trustee (the “Trustee”), and a Fifth Supplemental Indenture, dated as of the date hereof, among the Operating
Company, the Guarantor and the Trustee (the “Fifth Supplemental Indenture” and, together with the Base Indenture
and Third Supplemental Indenture, the “Indenture”), and pursuant to a registration statement on Form S-3
under the Securities Act of 1933, as amended (the “Act”), filed with the Securities and Exchange Commission
(the “Commission”) on April 4, 2023 (Registration Nos. 333-271113 and 333-271113-01) (as so filed and as
amended, the “Registration Statement”), a base prospectus dated April 4, 2023 included as part of the Registration
Statement (the “Base Prospectus”), a preliminary prospectus supplement dated November 12, 2024 filed with
the Commission pursuant to Rule 424(b) under the Act, a prospectus supplement dated November 12, 2024 filed with the Commission
pursuant to Rule 424(b) under the Act (together with the Base Prospectus, the “Prospectus”), and an
underwriting agreement dated November 12, 2024 (the “Underwriting Agreement”), among the Operating Company,
the Guarantor, and J.P. Morgan Securities LLC, BofA Securities, Inc, Goldman Sachs & Co. LLC and Truist Securities, Inc.,
as representatives of the several underwriters named therein. This opinion is being furnished in connection with the requirements of Item
601(b)(5) of Regulation S-K under the Act, and no opinion is expressed herein as to any matter pertaining to the contents of the
Registration Statement or Prospectus, other than as expressly stated herein with respect to the issue of the Notes and Guarantee.
November 14, 2024
Page 2
As such counsel, we have examined such matters
of fact and questions of law as we have considered appropriate for purposes of this letter. With your consent, we have relied upon certificates
and other assurances of officers of the Operating Company, the Guarantor and others as to factual matters without having independently
verified such factual matters. We are opining herein as to the internal laws of the State of New York, and we express no opinion with
respect to the applicability thereto, or the effect thereon, of the laws of any other jurisdiction or as to any matters of municipal law
or the laws of any local agencies within any state. Various issues pertaining to Maryland law are addressed in the opinion of Venable
LLP, which has been separately provided to you. We express no opinion with respect to those matters herein, and to the extent elements
of those opinions are necessary to the conclusions expressed herein, we have, with your consent, assumed such matters.
Subject to the foregoing and the other matters
set forth herein, it is our opinion that, as of the date hereof, when the Notes have been duly executed, issued and authenticated in accordance
with the terms of the Indenture and delivered against payment therefor in the circumstances contemplated by the Underwriting Agreement,
the Notes and the Guarantee will be legally valid and binding obligations of the Operating Company and the Guarantor, respectively, enforceable
against the Operating Company and the Guarantor in accordance with their respective terms.
Our opinion is subject to: (i) the effect
of bankruptcy, insolvency, reorganization, preference, fraudulent transfer, moratorium or other similar laws relating to or affecting
the rights and remedies of creditors; (ii) (a) the effect of general principles of equity, whether considered in a proceeding
in equity or at law (including the possible unavailability of specific performance or injunctive relief), (b) concepts of materiality,
reasonableness, good faith and fair dealing, and (c) the discretion of the court before which a proceeding is brought; and (iii) the
invalidity under certain circumstances under law or court decisions of provisions providing for the indemnification of or contribution
to a party with respect to a liability where such indemnification or contribution is contrary to public policy. We express no opinion
as to (a) any provision for liquidated damages, default interest, late charges, monetary penalties, make-whole premiums or other
economic remedies to the extent such provisions are deemed to constitute a penalty, (b) consents to, or restrictions upon, governing
law, jurisdiction, venue, arbitration, remedies, or judicial relief, (c) the waivers of rights or defenses contained in Sections
4.4 of the Base Indenture and Section 5.1(b) of the Fifth Supplemental Indenture (except, with respect to Section 5.1(b) of
the Fifth Supplemental Indenture, to the extent such waiver is limited to the fullest extent that the Guarantor may do so under applicable
law); (d) any provision requiring the payment of attorneys’ fees, where such payment is contrary to law or public policy; (e)
any provision permitting, upon acceleration of the Notes, collection of that portion of the stated principal amount thereof which might
be determined to constitute unearned interest thereon; (f) provisions purporting to make a guarantor primarily liable rather than
as a surety and provisions purporting to waive modifications of any guaranteed obligation to the extent such modification constitutes
a novation; and (g) the severability, if invalid, of provisions to the foregoing effect.
November 14, 2024
Page 3
We
express no opinion or confirmation as to federal or state securities laws, tax laws, antitrust or trade regulation laws, insolvency
or fraudulent transfer laws, antifraud laws, compliance with fiduciary duty requirements, pension or employee benefit laws, usury laws,
environmental laws, laws and regulations relating to commodities trading, futures and swaps, Financial Industry Regulatory Authority Inc.
rules, National Futures Association rules, the rules of any stock exchange, clearing organization, designated contract market or
other regulated entity for trading, processing, clearing or reporting transactions in securities, commodities, futures or swaps, or export
control, anti-money laundering and anti-terrorism laws (without limiting other laws or rules excluded by customary practice).
With
your consent, except to the extent we have expressly opined as to such matters with respect to the Operating Company or the Guarantor
herein, we have assumed (a) that the Notes, the Indenture and the Guarantee (collectively, the “Documents”)
have been duly authorized, executed and delivered by the parties thereto, (b) that the Documents constitute legally valid and binding
obligations of the parties thereto, enforceable against each of them in accordance with their respective terms and (c) that the status
of the Documents as legally valid and binding obligations of the parties is not affected by any (i) breaches of, or defaults under,
agreements or instruments, (ii) violations of statutes, rules, regulations or court or governmental orders or (iii) failures
to obtain required consents, approvals or authorizations from, or make required registrations, declarations or filings with, governmental
authorities.
This opinion is for your benefit in connection
with the Registration Statement and may be relied upon by you and by persons entitled to rely upon it pursuant to the applicable provisions
of the Act. We consent to your filing this opinion as an exhibit to the Guarantor’s Current Report on Form 8-K dated November 14,
2024 and to the reference to our firm contained in the Prospectus under the heading “Legal Matters.” In giving such consent,
we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the rules and
regulations of the Commission thereunder.
|
Sincerely, |
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|
|
/s/ Latham & Watkins LLP |
Exhibit 5.2
November 14, 2024
Safehold Inc.
1114 Avenue of the Americas, 39th Floor
New York, New York 10036
|
Re: |
Registration
Statement on Form S-3 |
|
|
Commission
File No. 333-271113 |
Ladies and Gentlemen:
We have served as Maryland
counsel to Safehold Inc., a Maryland corporation (the “Company”), in connection with certain matters of Maryland law arising
out of (i) the registration of $400,000,000 aggregate principal amount of 5.650% senior unsecured notes due 2035 (the “Notes”)
of Safehold GL Holdings LLC, a Delaware limited liability company and a subsidiary of the Company (“Holdings”), and (ii) the
guarantee by the Company of the obligations of Holdings under the Notes (the “Guarantee”). The offering and issuance of the
Guarantee is covered by the above-referenced Registration Statement, and all amendments thereto (the “Registration Statement”),
filed by the Company with the United States Securities and Exchange Commission (the “Commission”) under the Securities Act
of 1933, as amended (the “Securities 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, in the form filed with the Commission under the Securities Act;
2. The
Prospectus, dated April 4, 2023, as supplemented by the Prospectus Supplement, dated as of November 12, 2024, each in the form
in which it was filed with the Commission pursuant to Rule 424(b) promulgated under the Securities Act;
3. The
charter of the Company, certified by the State Department of Assessments and Taxation of Maryland (the “SDAT”);
4. The
Second Amended and Restated Bylaws of the Company, certified as of the date hereof by an officer of the Company;
5. A
certificate of the SDAT as to the good standing of the Company, dated as of a recent date;
Safehold Inc.
November 14, 2024
Page 2
6. Resolutions
(the “Resolutions”) adopted by the Board of Directors of the Company and a duly authorized committee thereof relating to,
among other matters, (a) the registration and issuance of the Guarantee and (b) the authorization of the execution, delivery
and performance by the Company of the Indenture (as defined herein), certified as of the date hereof by an officer of the Company;
7. The
Indenture, dated as of May 7, 2021 (the “Base Indenture”), among the Company, the Holdings and U.S. Bank National Association,
as trustee (the “Trustee”), as supplemented by the Fifth Supplemental Indenture, dated as of November 14, 2024 (the
“Fifth Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among the Company, Holdings
and the Trustee;
8. A
certificate executed by an officer of the Company, dated as of the date hereof; and
9. Such
other documents and matters as we have deemed necessary or appropriate to express the opinion set forth in this letter, 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.
Safehold Inc.
November 14, 2024
Page 3
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 validly existing under and by virtue of the laws of the State of Maryland and is in good
standing with the SDAT.
2. The
execution and delivery of the Indenture by the Company have been duly authorized, and the Indenture has been duly executed and delivered
by the Company.
3. The
issuance of the Guarantee by the Company has been duly authorized.
The foregoing opinion is limited
to the laws of the State of Maryland and we do not express any opinion herein concerning federal law or the laws of any other state.
We express no opinion as to the applicability or effect of any 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 Company’s Current Report on Form 8-K relating to the issuance
of the Senior Notes (the “Current Report”). We hereby consent to the filing of this opinion as an exhibit to the Current
Report 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 Securities Act.
|
Very
truly yours, |
|
|
|
/s/
Venable LLP |
Exhibit 99.1
Press
Release
Safehold
Announces Pricing of $400 Million of Senior Unsecured Notes Due 2035
NEW
YORK, November 12, 2024
Safehold Inc. (the "Company"
or "Safehold") (NYSE: SAFE) today announced that its operating company, Safehold GL Holdings LLC (the "operating company"),
has priced a public offering of $400 million aggregate principal amount of its 5.650% senior notes due 2035 (the "Notes").
The Notes will mature on January 15, 2035. The offering is expected to settle on November 14, 2024, subject to the satisfaction
of customary closing conditions. The Notes will be fully and unconditionally guaranteed by the Company. The public offering price of
the Notes was 98.812% of the principal amount for an effective semi-annual yield to maturity of 5.804%.
The Company has recently terminated hedges
and realized a cash settlement gain of approximately $22 million. Giving effect to this gain, the Company expects to recognize an effective
semi-annual yield to maturity of approximately 5.09%.
The operating company intends to use the
net proceeds from the offering for general corporate purposes, which may include repaying borrowings under its unsecured revolver, making
additional investments in ground leases, providing for working capital and funding obligations under existing commitments.
J.P. Morgan Securities LLC, BofA Securities,
Goldman Sachs & Co. LLC and Truist Securities, Inc. acted as joint book-running managers and representatives of the underwriters
for the offering. Mizuho Securities USA LLC, RBC Capital Markets, LLC, Barclays Capital Inc., Morgan Stanley & Co. LLC, and
SMBC Nikko Securities America, Inc. are also acting as joint book-running managers for the offering. BNP Paribas Securities Corp.,
Raymond James & Associates, Inc. and Citizens JMP Securities, LLC are acting as co-managers for the offering.
This offering is being made pursuant to
an effective shelf registration statement and prospectus and related preliminary prospectus supplement filed by the Company and the operating
company with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of
any offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Copies of the prospectus supplement and
related prospectus for this offering can be obtained, when available, from J.P. Morgan Securities LLC, 383 Madison Avenue, New York,
NY 10179, Attention: Investment Grade Syndicate Desk, 3rd Floor, telephone collect at (212) 834-4533; or BofA Securities, Inc.,
201 North Tryon Street, NC1-022-02-25, Charlotte NC 28255-0001, Attn: Prospectus Department or by email dg.prospectus_requests@bofa.com,
telephone (1-800-294-1322); or Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone
at (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com; or Truist Securities, Inc., Attention: Prospectus Department, 303
Peachtree Street, Atlanta, GA 30308, telephone: 800-685-4786, or e-mail: TSIdocs@Truist.com.
1114 Avenue of the Americas
New York, NY 10036
T: 212.930.9400
E: investors@safeholdinc.com
Forward-Looking Statements:
This press release may contain forward-looking
statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that
involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate
to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters
that are not historical facts. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as
predictions of future events. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such
as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy,"
"plan," "may," "should," "will," "would," "will be," "seek," "approximately,"
"pro forma," "contemplate," "aim," "continue," 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.
While forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, they are not guarantees of future
performance. For example, the fact that the offering described above has priced may imply that the offering will close, but the closing
is subject to conditions customary in transactions of this type and the closing may be delayed or may not occur at all. For a further
discussion of the factors that could cause the Company's future results to differ materially from any forward-looking statements, see
the reports and other filings by the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K
for the year ended December 31, 2023. You should not place undue reliance on any forward-looking statements, which are based only
on information currently available to us (or to third parties making the forward-looking statements). The Company disclaims any obligation
to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information,
data or methods, future events or other changes.
About Safehold:
Safehold Inc. (NYSE: SAFE) is revolutionizing
real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created
the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality,
student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real
estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.
Company Contact:
Pearse Hoffmann
Senior Vice President
Capital Markets & Investor Relations
T 212.930.9400
E investors@safeholdinc.com
1114 Avenue of the Americas
New York, NY 10036
T: 212.930.9400
E: investors@safeholdinc.com
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