Document:

Purchase Agreement

 Exhibit 10.49 
  
 PURCHASE AGREEMENT 
  
 BY AND BETWEEN 
  
 FIRST STATES GROUP, L.P.

 (a Delaware limited partnership) 
  
 and 
  
 IPC REALTY II, LLC 
 (a Delaware limited liability company)

  
 December 15, 2004 
  

  
 TABLE OF CONTENTS

  

							
	 	  	 	  	 	  	Page

	 1.
	  	SALE AND PURCHASE	  	1
				
	 	  	1.1	  	 Agreement to Sell and Purchase
	  	1
				
	 	  	1.2	  	 Purchase Price
	  	2
			
	 2.
	  	CLOSING	  	2
				
	 	  	2.1	  	 Location and Date
	  	2
				
	 	  	2.2	  	 Deliveries
	  	2
			
	 3.
	  	REPRESENTATIONS AND WARRANTIES OF THE OWNER	  	4
				
	 	  	3.1	  	 Organization
	  	4
				
	 	  	3.2	  	 Due Authorization and Execution
	  	4
				
	 	  	3.3	  	 Legality
	  	4
				
	 	  	3.4	  	 Litigation and Other Proceedings
	  	4
				
	 	  	3.5	  	 Minority Interest.
	  	5
				
	 	  	3.6	  	 Special Purpose Entities
	  	5
				
	 	  	3.7	  	 Taxes
	  	5
				
	 	  	3.9	  	 Punch List
	  	5
				
	 	  	3.10	  	 No Condemnation Proceedings
	  	5
				
	 	  	3.11	  	 Tenant Leases
	  	5
				
	 	  	3.12	  	 Service Contracts
	  	6
				
	 	  	3.13	  	 Management Contracts
	  	6
				
	 	  	3.14	  	 Loan Documents
	  	6
				
	 	  	3.15	  	 Insurance Policies
	  	6
				
	 	  	3.16	  	 Leasing Commissions, Etc.
	  	6
				
	 	  	3.17	  	 Taxes Against the Property
	  	6
				
	 	  	3.18	  	 Financial Statements
	  	6
				
	 	  	3.19	  	 Due Diligence Materials
	  	7
				
	 	  	3.20	  	 Brokers
	  	7
			
	 4.
	  	REPRESENTATIONS AND WARRANTIES OF THE BUYER	  	7
				
	 	  	4.1	  	 Organization; Experience
	  	7
				
	 	  	4.2	  	 Authorization
	  	7
				
	 	  	4.3	  	 Investment Intent
	  	8
				
	 	  	4.4	  	 Availability of Funds
	  	8

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page

	 	  	4.5	  	 Disclosure of Information
	  	8
				
	 	  	4.6	  	 Legality
	  	8
				
	 	  	4.7	  	 Brokers
	  	8
			
	 5.
	  	COVENANTS OF THE OWNER	  	8
				
	 	  	5.1	  	 Conduct of the Business
	  	8
				
	 	  	5.2	  	 Disclosure of Certain Matters
	  	9
			
	 6.
	  	COVENANTS OF THE BUYER	  	9
				
	 	  	6.1	  	 Certain Taxes
	  	9
				
	 	  	6.2	  	 Disclosure of Certain Matters
	  	9
			
	 7.
	  	ADDITIONAL COVENANTS	  	9
				
	 	  	7.1	  	 Public Announcements
	  	9
				
	 	  	7.2	  	 Expenses
	  	9
				
	 	  	7.3	  	 Employees
	  	10
				
	 	  	7.4	  	 Fulfillment of Closing Conditions
	  	10
			
	 8.
	  	CONDITIONS PRECEDENT TO OBLIGATIONS OF THE OWNER	  	10
				
	 	  	8.1	  	 Representations and Warranties
	  	10
				
	 	  	8.2	  	 Agreements, Conditions and Covenants
	  	11
				
	 	  	8.3	  	 Closing Deliveries
	  	11
			
	 9.
	  	CONDITIONS PRECEDENT TO OBLIGATIONS OF THE BUYER	  	11
				
	 	  	9.1	  	 Representations and Warranties
	  	11
				
	 	  	9.2	  	 Agreements, Conditions and Covenants
	  	11
				
	 	  	9.3	  	 Material Adverse Effect
	  	11
				
	 	  	9.4	  	 Closing Deliveries
	  	11
			
	 10.
	  	INDEMNIFICATION	  	11
				
	 	  	10.1	  	 By the Owner
	  	11
				
	 	  	10.2	  	 By the Buyer
	  	12
			
	 11.
	  	TERMINATION	  	12
				
	 	  	11.1	  	 Grounds for Termination
	  	12
				
	 	  	11.2	  	 Effect of Termination
	  	13
			
	 12.
	  	GENERAL MATTERS	  	13
				
	 	  	12.1	  	 Contents of Agreement
	  	13

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page

	 	  	12.2	  	 Limitations on Representations and Warranties; “AS-IS” Transaction
	  	13
				
	 	  	12.3	  	 Survival
	  	13
				
	 	  	12.4	  	 Amendment, Parties in Interest, Assignment, Miscellaneous
	  	13
				
	 	  	12.5	  	 Non-solicitation
	  	14
				
	 	  	12.6	  	 Further Assurances
	  	14
				
	 	  	12.7	  	 Interpretation
	  	14
				
	 	  	12.8	  	 Counterparts
	  	15
				
	 	  	12.9	  	 Negotiated Agreement
	  	15
			
	 13.
	  	REMEDIES	  	15
			
	 14.
	  	NOTICES	  	15
			
	 15.
	  	GOVERNING LAW	  	16
			
	 16.
	  	DEFINITIONS	  	17

					
			
	 EXHIBIT A
	  	 WIRE TRANSFER INSTRUCTIONS
	  	A-1
			
	 EXHIBIT B
	  	 SERVICE CONTRACTS
	  	B-1
			
	 EXHIBIT C
	  	 OPERATING STATEMENT
	  	C-1
			
	 EXHIBIT D
	  	 BALANCE SHEET
	  	D-1
			
	 EXHIBIT E
	  	 DUE DILIGENCE MATERIALS
	  	E-1
			
	 EXHIBIT F
	  	 TRANSFERRED EMPLOYEES
	  	F-1
			
	 EXHIBIT G
	  	 AMENDED OPERATING AGREEMENT
	  	G-1
			
	 EXHIBIT H
	  	 FORM OF ASSIGNMENT AGREEMENT
	  	H-1
			
	 EXHIBIT I
	  	 BUYER’S CLOSING CERTIFICATE
	  	I-1
			
	 EXHIBIT J
	  	 EMPLOYMENT ACKNOWLEDGEMENT
	  	J-1
			
	 EXHIBIT K
	  	 IPC MANAGEMENT AGREEMENT
	  	K-1
			
	 EXHIBIT L
	  	 OWNER’S CLOSING CERTIFICATE
	  	L-1
			
	 EXHIBIT M
	  	 THIRD AMENDMENT TO LEASE
	  	M-1

  

 iii 

  
 PURCHASE AGREEMENT

  
 This PURCHASE AGREEMENT (this
“Agreement”) is made as of December 15, 2004, by and between First States Group, L.P., a Delaware limited partnership (the “Owner”), and IPC Realty II, LLC, a Delaware limited liability company (the
“Buyer,” and together with the Owner, the “Parties”). 
  
 BACKGROUND 
  
 WHEREAS, the Owner owns the only outstanding Membership Interest (the “Interest”) in First States Investors 228 Holdings A, LLC, a Delaware limited liability company (the “Ownership Entity”); and

  
 WHEREAS, the Ownership Entity owns the only outstanding
membership interest in First States Investors 228 Holdings, LLC, a Delaware limited liability company (“Holdings”); and 
  
 WHEREAS, Holdings, in turn, owns the only outstanding membership interest in First States Investors 228, LLC, a Delaware limited liability company
(“Investors”); and 
  
 WHEREAS, Investors
is the owner of a certain tract of land comprised of two parcels of property measuring approximately 70,000 square feet, together with a 36-story office tower (the “Building”) and an underground five-story parking garage (the
“Parking Garage”) and other improvements thereon, collectively known as State Street Financial Center, One Lincoln Street, Boston, Massachusetts; and 
  
 WHEREAS, the Buyer desires to purchase from the Owner and the Owner is willing to sell to the Buyer, part of the
Owner’s Interest comprising a 30% Percentage Interest in the Ownership Entity (the “Minority Interest”); and 
  
 WHEREAS, this Agreement sets forth the terms and conditions upon which the Buyer is purchasing and assuming the Minority Interest from the Owner
and the Owner is selling, assigning, and transferring the Minority Interest to the Buyer. 
  
 AGREEMENT 
  
 NOW,
THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
  
 1. Sale and Purchase. 
  
 1.1 Agreement to Sell and Purchase. At the Closing, and subject to the
terms and conditions of this Agreement, the Owner shall sell, assign, and transfer to the Buyer, and the Buyer shall purchase and assume from the Owner, the Minority Interest. 
  

 1.2 Purchase Price. 
  
 (a) In consideration of the sale, assignment, and transfer of the Minority Interest to the Buyer, the Buyer
shall pay to the Owner an amount (the “Purchase Price”) equal to 30% of the amount obtained by deducting from U.S.$763,500,000 the aggregate principal amount of the Mortgage Loan and the Mezzanine Loan outstanding on the Closing
Date. The Purchase Price is estimated by the Parties to be U.S.$60,342,525 but the actual amount thereof shall be calculated on the Closing Date in accordance with the foregoing sentence and shall be subject to adjustment pursuant to subsections (b)
and (c) below. At the Closing, the Buyer shall pay the Purchase Price to the Owner by (i) causing the Escrow Agent to deliver the Deposit to the Owner and (ii) by the Owner delivering the balance of the Purchase Price, as adjusted as provided in
subsections (b) and (c) below, each by a wire transfer of immediately available funds, in accordance with the instructions set forth in Exhibit A. 
  
 (b) At the Closing, the Purchase Price shall be adjusted to reflect (i) accruals of interest expenses on the
Mortgage Loan and the Mezzanine Loan, (ii) rent accruals under the Tenant Leases (other than the Management Office Sublease), (iii) reserves in connection with the Mortgage Loan and Mezzanine Loan, (iv) working capital and (v) other standard
accruals that are not paid or otherwise satisfied by State Street under the State Street Leases (but no adjustment or pro rations shall be made in respect of (y) tenant improvement escrows held by Chicago Title Insurance Company and (z) escrows or
other funds set aside for repairs or other similar works known to the Owner to be outstanding as of the Closing Date, which escrows or other amounts shall be used by or at the direction of the Owner to pay or satisfy the obligations set forth in
Section 5.3). To the extent that any such item is incapable of an exact determination as of the Closing Date, the Owner and the Buyer shall make a good faith estimate of the appropriate adjustment using the most recent ascertainable amounts of, or
other reliable information in respect of, such item. The Owner and the Buyer shall use all reasonable efforts to obtain an exact determination of any such estimated items within 60 days after the Closing Date and to agree on such amounts. After
approval of such amounts by both Parties, if the Buyer owes money to the Owner, Buyer shall promptly pay the amount so owed to the Owner, or if the Owner owes money to the Buyer, the Owner shall promptly pay the amount so owed to the Buyer. For the
purpose of computing any amounts required under this subsection, the Closing Date shall be a day of income and expense to the Buyer. 
  
 (c) At the Closing the Buyer will be entitled to a credit in the amount of U.S.$600,000 to be applied against the Purchase Price (the
“Credit”) to offset its costs and expenses relating to the Buyer’s due diligence in connection with the Transactions. 
  
 2. Closing. 
  
 2.1 Location and Date. The closing for the Transactions (the “Closing”) shall be held at the offices of Morgan, Lewis &
Bockius LLP in Philadelphia, Pennsylvania, at 10:00 a.m. (local time) on December 22, 2004 (the “Closing Date”). 
  
 2.2 Deliveries. At the Closing, subject to the terms and conditions contained herein: 
  
 (a) The Owner shall deliver to the Buyer: 
  
 (i) an executed Owner’s Closing Certificate;

  

 2 

 (ii) an executed counterpart of the Assignment Agreement; 
  
 (iii) an executed counterpart of the Amended Operating
Agreement; 
  
 (iv) a counterpart of the IPC
Management Agreement executed by First States Management; 
  
 (v) a counterpart of the Third Amendment to the State Street Office Lease executed by Investors and by State Street; 
  
 (vi) the Employment Acknowledgement executed by Gale and by Investors; 
  
 (vii) the State Street Estoppel Certificates; 
  
 (viii) confirmation by Lehman as to (x) the outstanding principal balance due under the Mortgage Loan
Documents, (y) the amount held as reserves and/or escrows under the Mortgage Loan Documents and (z) the amount of monthly reserve and/or escrow deposits made by Investors under the Mortgage Loan Documents, each as of the Closing Date; 
  
 (ix) confirmation by SBF Funding as to (x) the outstanding
principal balance due under the Mezzanine Loan Documents, (y) the amount held as reserves and/or escrows under the Mezzanine Loan Documents and (z) the amount of monthly reserve and/or escrow deposits made by Investors under the Mezzanine Loan
Documents, each as of the Closing Date; 
  
 (x)
the Owner will use reasonable efforts to provide an acknowledgement by Lehman that, as of the Closing Date, Lehman is not aware of any default by Investors under the Mortgage Loan Documents, nor is it aware of the existence of any condition or the
occurrence of any event that by notice, the passage of time, or otherwise, would constitute an event of default by Investors under the Mortgage Loan Documents; 
  

(xi) the Owner will use reasonable efforts to provide an acknowledgement by SBF Funding that, as of the Closing Date, SBF Funding is
not aware of any default by Holdings under the Mezzanine Loan Documents, nor is it aware of the existence of any condition or the occurrence of any event that by notice, the passage of time, or otherwise, would constitute an event of default by
Holdings under the Mezzanine Loan Documents; and 
  
 (xii) an amendment to the First States Management Agreement that (i) acknowledges that existence of the “not less than six” employees to be employed by the Owner pursuant to Section 7.3; and (ii) effective as of the termination
date of the Gale Management Agreement, reduces the management fee paid by Investors to First States Management to equal the management fees required to be paid by First State Management to IPC Real Estate Management pursuant to the IPC Management
Agreement. 
  
 (b) The Buyer shall deliver to the
Owner: 
  
 (i) the Purchase Price in accordance
with Section 1.2; 
  

 3 

 (ii) an executed Buyer’s Closing Certificate; 
  
 (iii) an executed counterpart of the Assignment Agreement;

  
 (iv) a counterpart of the IPC Management
Agreement executed by IPC Real Estate Management LLC; and 
  
 (v) an executed counterpart of the Amended Operating Agreement. 
  
 (c) The Ownership Entity shall deliver to each of the Buyer and the Owner an executed counterpart of the Assignment Agreement. 

 
 (d) The Parties shall also deliver to each other such
other agreements, good standing certificates, and other items as may be reasonably requested. 
  
 3. Representations and Warranties of the Owner. In order to induce the Buyer to enter into this Agreement and to complete the Closing, the Owner hereby makes the following representations and
warranties to the Buyer, as of the date hereof: 
  
 3.1
Organization. The Owner is a limited partnership, validly existing and in good standing under the Laws of Delaware with full power and authority and legal right to enter into and perform its obligations under this Agreement. Each of the
Ownership Entity, Holdings and Investors is a limited liability company, validly existing and in good standing under the Laws of Delaware. Each of the Owner, the Ownership Entity, Holdings and Investors has made all necessary filings relating to its
existence and is qualified to do business in those jurisdictions in which it is required by Law to be so qualified. 
  
 3.2 Due Authorization and Execution. This Agreement has been duly authorized, executed and delivered by the Owner, and all consents and approvals
required under the Charter Documents of the Owner or any entity holding an interest in the Owner necessary for the Owner to enter into and perform its obligations under this Agreement have been obtained. No consent, approval or waiver of any other
third party is required for the consummation of the Transactions. 
  
 3.3 Legality. To Owner’s knowledge, no Law or Court Order has been enacted, entered, promulgated, or enforced by any Governmental Body that is in effect and has the effect of making the purchase and sale of the Minority Interest
illegal or otherwise prohibiting the consummation of the Transactions. 
  
 3.4 Litigation and Other Proceedings. 
  
 (a) Other than to the extent entirely covered by liability insurance (except for deductibles or other similar amounts), no litigation, proceeding, or action is pending or, to the Owner’s actual knowledge, threatened against or relating
to the Property or any of the Ownership Entity, Holdings or Investors, that could materially adversely affect the Property or its ownership or operation by the Ownership Entity. 
  

 4 

 (b) The commitment of the Original Seller contained in the second sentence of Section
8(a)(iv) of the Original Purchase Agreement, pursuant to which the Original Seller agreed to continue to defend all actions to completion and to defend, indemnify and hold harmless Investors, its successors and assigns, from and against costs or
expenses actually incurred by any such party on account of amounts actually paid out-of-pocket to unaffiliated third parties arising out of any claims, demands, penalties, fines, liabilities, settlements, damages, costs or expenses of whatever kind
or nature, relating to or arising from or out of the litigation set forth on Schedule 8(a)(iv) to the Original Purchase Agreement has not been amended, modified, terminated or waived by Investors. 
  
 3.5 Minority Interest. The Owner is the exclusive legal and equitable
owner of, and has good title to, the Minority Interest, free and clear of any claims, liens, encumbrances, pledges or security interests of any sort. There are no outstanding restrictions, options, contracts, calls, commitments or demands of any
nature relating to the Owner’s Interest. 
  
 3.6 Special
Purpose Entities. The Ownership Entity, Holdings and Investors carry on no business other than the direct or indirect ownership of the Property and have no other assets or liabilities not related to the ownership or operation of the Property.

  
 3.7 Taxes. Each of the Ownership Entity, Holdings and
Investors has (i) filed or caused to be filed, in a timely manner, all Tax Returns required to be filed by them, and such Tax Returns were correct and complete; and (ii) paid, collected, withheld or remitted, or caused to be paid, collected,
withheld or remitted, all Taxes that are due and payable, collectible and remittable with respect to such Tax Returns or otherwise. None of the Ownership Entity, Holdings or Investors has filed an election to be treated as a corporation for U.S.
federal income tax purposes. 
  
 3.8 Status of Property.
The Property is in good working order, ordinary wear and tear excepted, and there is no material work that remains to be performed in respect of the Property, other than outstanding tenant improvement works disclosed in the State Street Estoppel
Certificates. 
  
 3.9 Punch List. Each of the punch-list
items of work described in Schedule 7(b) of the Original Purchase Agreement have been completed or otherwise resolved to the satisfaction of Investors as of or prior to the date of this Agreement. 
  
 3.10 No Condemnation Proceedings. No condemnation proceeding is
pending or, to the Owner’s actual knowledge, threatened against or relating to the Property. 
  
 3.11 Tenant Leases. The Tenant Leases comprise all of leases and tenancies affecting the Property (other than subleases to which State Street is a
party which have no effect upon Investors, Holdings or the Ownership Entity). Complete, true and correct copies of such Tenant Leases, including all modifications and amendments thereof or thereto, have been delivered to the Buyer. To the actual
knowledge of the Owner, neither Investors nor any tenant under a Tenant Lease (or, in the case of the Management Office Sublease, State Street) is in default under any Tenant Lease and no condition exists nor has any event occurred that by notice,
the passage of time or otherwise, would constitute an event of default under any Tenant Lease. 
  

 5 

 3.12 Service Contracts. All material written service contracts affecting the Property are
disclosed on Exhibit B (the “Service Contracts”). Complete, true and correct copies of such Service Contracts, including all modifications and amendments thereof or thereto, have been delivered to the Buyer. Except as
disclosed on Exhibit B, to the actual knowledge of the Owner, neither Investors nor any other party under any Service Contract is in default under any Service Contract, and no condition exists nor has any event occurred that by notice,
the passage of time, or otherwise, would constitute an event of default under any Service Contract. 
  
 3.13 Management Contracts. The Management Contracts comprise all of management agreements and arrangements affecting the Property. Complete, true
and correct copies of such Management Contracts, including all modifications and amendments thereof or thereto, have been delivered to the Buyer. To the actual knowledge of the Owner, no party to a Management Contract is in default under such
Management Contract and no condition exists nor has any event occurred that by notice, the passage of time or otherwise, would constitute an event of default under any Management Contract. 
  
 3.14 Loan Documents. The Loan Documents comprise all of documentation
relating to loan arrangements affecting the Property, Investors, Holdings and the Ownership Entity. Complete, true and correct copies of such Loan Documents, including all modifications and amendments thereof or thereto, have been delivered to the
Buyer. To the actual knowledge of the Owner, no party to any Loan Document is in default under such Loan Document and no condition exists nor has any event occurred that by notice, the passage of time or otherwise, would constitute an event of
default under any Loan Document. Each escrow and/or reserve required under the Loan Documents has been fully funded in the manner provided in such documents. 
  
 3.15 Insurance Policies. Complete, true and correct copies of all insurance policies currently in force with respect to the Property have been
delivered to the Buyer. Each such policy is in full force and effect and all premiums due thereunder have been paid. No notice has been received from any of the insurance companies which issued such policies or from any agents thereof stating, in
effect, that any of such policies will not be renewed. 
  
 3.16
Leasing Commissions, Etc. No brokerage or leasing commissions or any other compensation are currently or will be due or payable to any person or entity on account of any of the Tenant Leases or any extensions or renewals thereof. 

 
 3.17 Taxes Against the Property. The Owner has received no written
notice from a public authority that there are contemplated improvements to or adjoining the Property by a public authority, the costs of which are to be assessed as special taxes against the Property. 
  
 3.18 Financial Statements. 
  
 (a) Attached hereto as Exhibit C are unaudited
operating statements pertaining to the Property for the first nine months of 2004 which are true and correct in all material respects and fairly present the costs and expenses of the operation of the Property for the period covered. At closing,
there shall have been no material adverse change in the income or 

  

 6 

 
expenses of the Property from that shown on Exhibit C, and the Owner has no knowledge or information concerning any prospective material
changes in such items. 
  
 (b) A true and
complete copy of the balance sheet of the Ownership Entity as at September 30, 2004 is attached hereto as Exhibit D. The balance sheet fairly presents, in all material respects, the financial position of the Ownership Entity as of the
date thereof. 
  
 3.19 Due Diligence Materials. The Owner
has, prior to the date hereof, provided or otherwise made available to the Buyer all material information, records, documents and other materials concerning or in any way affecting the Ownership Entity, Holdings or Investors or the Property and/or
the operation or maintenance thereof in a material manner which are in its possession or in the possession of any of its managing or other agents, attorneys or accountants. Such materials (collectively, the “Due Diligence
Materials”) are listed on Exhibit E. The Owner has received no notice from any other party of, and has no independent knowledge regarding, any material liabilities or obligations of any nature, whether accrued, absolute,
contingent or otherwise, relating to the Property or the Owner, the Ownership Entity, Holdings or Investors, other than that which is reflected in the Due Diligence Materials. 
  
 3.20 Brokers. Other than Holliday Fenoglio Fowler L.P., whose fee shall be paid by and shall be the sole
responsibility of the Owner, no Person retained by the Owner is or will be entitled to any commission or broker’s or similar fee in connection with the Transactions. 
  
 4. Representations and Warranties of the Buyer. 
  
 The Buyer hereby makes the following representations and warranties to the Owner, as of the date hereof: 
  
 4.1 Organization; Experience. The Buyer is a limited liability
company, validly existing and in good standing under the Laws of Delaware with full power and authority and legal right to enter into and perform its obligations under this Agreement and to carry on its business in the manner and in the locations in
which such business has been and is now being conducted by it. The Buyer has made all necessary filings relating to its existence and doing business and is qualified to do business in those jurisdictions in which it is required by law to be so
qualified, and it neither maintains nor conducts business in any other state. The Buyer is an “accredited investor” (as that term is defined in Regulation D promulgated by the Securities and Exchange Commission under the Securities Act)
and is a sophisticated and experienced real estate investor fully capable of assessing the risks and rewards of purchasing the Minority Interest. Except for the representations and warranties of the Owner expressly set forth in Section 3 of this
Agreement, the Buyer is relying on its own investigations and assessments in entering into this Agreement. 
  
 4.2 Authorization. This Agreement has been duly authorized, executed and delivered by the Buyer, and all consents and approvals required under the
Charter Documents of the Buyer or any entity holding an interest in the Buyer necessary for the Buyer to enter into and perform its obligations under this Agreement have been obtained. No consent, approval or waiver of any other third party is
required for the consummation of the Transactions. 
  

 7 

 4.3 Investment Intent. The Buyer is acquiring the Minority Interest for the Buyer’s own
account for investment and not with a view to or for sale in connection with any distribution thereof in violation of any applicable securities laws. The Buyer further acknowledges that the Minority Interest has not been registered under the
Securities Act and may not be transferred unless such transfer (i) is pursuant to an effective registration statement under the Securities Act or (ii) is exempt from the provisions of Section 5 of the Securities Act. 
  
 4.4 Availability of Funds. The Buyer will have on the Closing Date
sufficient funds available to enable it to pay the Purchase Price pursuant to the terms of this Agreement. 
  
 4.5 Disclosure of Information. The Buyer hereby acknowledges receipt of all of the Due Diligence Materials prior to the date of this Agreement.

  
 4.6 Legality. To the Buyer’s knowledge, no Law or
Court Order has been enacted, entered, promulgated, or enforced by any Governmental Body that is in effect and has the effect of making the purchase of the Minority Interest by the Buyer illegal or otherwise prohibiting the consummation of the
Transactions by the Buyer. 
  
 4.7 Brokers. No Person
retained by the Buyer is or will be entitled to any commission or broker’s or similar fee in connection with the Transactions. 
  
 5. Covenants of the Owner. 
  
 5.1 Conduct of the Business. From the date of this Agreement and up to and including the Closing Date, the Owner covenants and agrees as follows:

  
 (a) it shall cause Investors to operate and
maintain the Property in a first-class manner and in compliance with all applicable ordinances, laws and regulations and all contractual obligations of Investors; 
  
 (b) it shall not remove any fixtures or personal property from the Property or remove any assets or personal
property from any of the Ownership Entity, Holdings or Investors unless such removal is in the ordinary course of business and is due to obsolescence or is for the purpose of repairing, maintaining or replacing such property, in which event such
fixtures or personal property shall be promptly serviced and/or replaced; 
  
 (c) it shall not, and shall not permit Investors or Holdings (as the case may be), to modify, extend, renew, amend, terminate or otherwise alter any of the Tenant Leases, the Service Contracts, the Management
Contracts or the Loan Documents nor waive any of the material rights of Investors or Holdings thereunder; 
  
 (d) it shall immediately notify the Buyer of any event or occurrence having a material effect on the operation, leasing or condition of
the Property, including but not limited to fire or other casualty loss, or receipt of notice of condemnation or violation of any health, safety, fire, environmental, zoning code or ordinance or any default under any Tenant Lease, Management Contact
or Loan Document; 
  

 8 

 (e) in the event any new or additional due diligence material comes into the possession
of the Owner or of its representatives, managing agents, attorneys or accountants at any time after the date hereof, the Owner shall immediately provide or otherwise make available to the Buyer all such material. 
  
 (f) it shall otherwise cause each of the Ownership Entity,
Holdings and Investors to carry on their respective businesses in the ordinary course. 
  
 5.2 Disclosure of Certain Matters. The Owner shall give the Buyer prompt notice of any event or development that occurs that gives the Owner any reason to believe that any of the conditions set forth in Section
8 will not be satisfied prior to the Termination Date. 
  
 5.3
Tenant Improvements. The Owner agrees to pay for or otherwise cause to be satisfied (i) all obligations of Investors outstanding as of the date hereof under the existing Tenant Leases to pay the costs of, or provide a tenant allowance for,
tenant improvements to be made to the Property, and (ii) all repairs and other similar works known to the Owner to be outstanding as at the Closing Date in respect of the Property. 
  
 6. Covenants of the Buyer. 
  
 6.1 Certain Taxes. All transfer, documentary, sales, use, stamp, registration, and all other such Taxes and fees incurred in connection with this
Agreement shall be paid by the Buyer when due, and the Buyer will, at its own expense, file all necessary Tax Returns and other documentation with respect to all such transfer, documentary, sales, use, stamp, registration, and all other Taxes and
fees, and, if required by applicable Law, the Owner will, and will cause its Affiliates to, join in the execution of any such Tax Returns and other documentation. 
  
 6.2 Disclosure of Certain Matters. The Buyer shall give the Owner prompt notice of any event or development that
occurs that gives the Buyer any reason to believe that any of the conditions set forth in Section 9 will not be satisfied prior to the Termination Date. 
  
 7. Additional Covenants. 
  
 7.1 Public Announcements. Promptly after the execution of this Agreement, the Owner and the Buyer will each issue a press release with respect to
the Transactions. The Owner and the Buyer will consult with each other before issuing such press releases, and any subsequent press releases or other any written public statements relating to the Transactions, or making any presentations with
respect to the Transactions and shall not issue any such press release or make any such written public statement or such presentation prior to obtaining the other Party’s reasonable approval thereof, provided that the foregoing limitations
shall not apply if either Party determines such disclosure is required by applicable Law or by obligations pursuant to any listing agreement with any securities exchange or national trading system. 
  
 7.2 Expenses. Except as otherwise provided herein, the Parties shall
each pay all of their respective legal, accounting, and other expenses incurred by such Party in connection with the Transactions. 
  

 9 

 7.3 Employees. 
  
 (a) The Owner shall cause Gale to assign not less than six of the full-time on-site employees listed in Exhibit F hereto
(the “Transferred Employees”), and will use good faith efforts to cause Gale to assign all of the Transferred Employees, to employment by Investors effective January 1, 2005. From and after their transfer, the Transferred Employees
(and/or additional or replacement employees) shall continue to be exclusively involved in the day-to-day management of the Property and, although they will take their instructions from Investors, they will continue to work closely with Gale or its
successor in its capacity as the building manager of the Property. As a result of such transfer, Gale or its successor will no longer be reimbursed for any of the costs associated with the Transferred Employees although it is acknowledged by the
Parties that the management fee entitlement of Gale pursuant to the Gale Management Agreement shall remain unaffected. 
  
 (b) At all times from January 1, 2005 for so long as the Buyer or any of its Affiliates shall continue to own a membership interest in the
Ownership Entity, the Owner shall cause Investors to employ not less than six full-time employees who are exclusively involved in the day-to-day management or maintenance of the Property. 
  
 (c) The Transferred Employees shall be employed by Investors
and shall receive all of their employment compensation and related benefits from Investors. Effective January 1, 2005, the Buyer shall cause one of its Affiliates to extend its benefits package and payroll arrangements to Investors so that the
Transferred Employees shall receive coverage thereunder. All of the costs and expenses associated with the employment of the Transferred Employees shall be borne by Investors, including the cost of the benefits package to be extended by the Buyer,
except to the extent of any incremental cost to Investors of such employment in excess of the amount which would otherwise have been reimbursed from time to time by First States Management to Gale in respect of such Transferred Employees under the
Gale Management Agreement had such transfer not taken place, which incremental cost will be reimbursed to Investors by the Buyer. 
  
 (d) The Owner acknowledges that the Owner’s covenants contained in this Section 7.3 are of critical importance to the Buyer in its
determination to acquire the Minority Interest and are a material inducement to the Buyer to enter into and perform its obligations under this Agreement. 
  
 7.4 Fulfillment of Closing Conditions. At and prior to the Closing, each Party shall use commercially reasonable efforts to fulfill, and to cause
each other to fulfill, as soon as practicable the conditions specified in Sections 8 and 9 to the extent that the fulfillment of such conditions is such Party’s obligation and is within its control. 
  
 8. Conditions Precedent to Obligations of the Owner. 
  
 All obligations of the Owner to consummate the Transactions are subject to
the satisfaction (or waiver by the Owner) prior thereto of each of the following conditions: 
  
 8.1 Representations and Warranties. The representations and warranties of the Buyer contained in this Agreement shall be true and correct on the date hereof and shall also be true and correct in all material
respects on and as of the Closing Date with the same force and effect as if 

  

 10 

 
made on and as of the Closing Date, without taking into account any qualifiers of materiality or qualifiers of similar import. 
  
 8.2 Agreements, Conditions and Covenants. The Buyer shall have
performed or complied with all agreements, conditions, and covenants required by this Agreement to be performed or complied with by it on or before the Closing Date. 
  
 8.3 Closing Deliveries. All deliveries required to be made at Closing pursuant to Section 2.2(b) shall have been
made. 
  
 9. Conditions Precedent to Obligations of the Buyer.

  
 All obligations of the Buyer to consummate the Transactions
are subject to the satisfaction (or waiver by the Buyer) prior thereto of each of the following conditions: 
  
 9.1 Representations and Warranties. The representations and warranties of the Owner contained in this Agreement shall be true and correct in all
material respects on the date hereof and shall also be true and correct on and as of the Closing Date with the same force and effect as if made on and as of the Closing Date, without taking into account any qualifiers of materiality or qualifiers of
similar import. 
  
 9.2 Agreements, Conditions and
Covenants. The Owner shall have performed or complied with all agreements, conditions, and covenants required by this Agreement to be performed or complied with or by it on or before the Closing Date and shall have proved to the Buyer that all
preparations have been made to transfer the Transferred Employees to Investors effective January 1, 2005. 
  
 9.3 Material Adverse Effect. No Material Adverse Effect shall have occurred from the date hereof until the Closing Date. 
  
 9.4 Closing Deliveries. All deliveries required to be made at Closing
pursuant to Section 2.2(a) shall have been made, it being agreed and understood that the failure or inability of the Owner to provide one or both of the deliveries set forth in Sections 2.2(a)(x) and (xi) shall not give the Buyer cause to delay or
terminate the Closing. 
  
 10. Indemnification. 
  
 10.1 By the Owner. 
  
 (a) From and after the Closing Date, the Owner shall
indemnify, defend, and hold harmless the Buyer and its respective officers, directors, members, managers, partners, employees, stockholders, agents, Affiliates, and any Person who controls any of such Persons within the meaning of the Securities Act
or the Exchange Act (each, an “Indemnified Buyer Party”) from and against any liabilities, claims, demands, judgments, losses, costs, damages, or expenses whatsoever (including reasonable attorneys’, consultants’, and
other professional fees and disbursements of every kind, nature, and description incurred by such Indemnified Buyer Party in connection therewith) (collectively, “Damages”) that such Indemnified Buyer Party may sustain, suffer, or
incur and that result from, arise out of, or relate to any breach or inaccuracy of 

  

 11 

 
any representation or warranty made by the Owner made in Section 3 of this Agreement or in the Owner’s Closing Certificate. 
  
 (b) Furthermore, the Owner agrees to indemnify, defend and
hold harmless each Indemnified Buyer Party from and against Damages arising from the litigation described in Schedule 8(a)(iv) of the Original Purchase Agreement to the extent that (i) the amount of such Damages are in excess of the indemnification
provided by the Original Seller pursuant to Section 8(a)(iv) of the Original Purchase Agreement and (ii) the Owner shall have fully exhausted each of its remedies pursuit of the indemnification from the Original Seller. 
  
 (c) The Owner’s obligation pursuant to Section 10.1(a)
(but not the Owner’s indemnity obligation arising under Section 10.1(b)) to indemnify any Indemnified Buyer Party indemnification shall be subject to the conditions that (i) the Buyer shall have given notice of such breach or inaccuracy within
twelve (12) months following the Closing Date; (ii) the Owner’s obligation to so indemnify the Buyer shall only become effective if and to the extent that the aggregate amount of claimed Damages exceeds Two Hundred Fifty Thousand Dollars
(U.S.$250,000) (for the sake of clarification, the Owner shall become subject to the indemnification obligation pursuant to this Section for Damages which, on their own or together with other Damages may have been incurred prior to the date of such
claim, are in excess of U.S.$250,000, subject however to the following clause (iii)); and (iii) the Owner’s maximum liability for Damages shall be limited to, and shall not exceed, U.S. $6,000,000. 
  
 10.2 By the Buyer. From and after the Closing Date, the Buyer shall
indemnify, defend, and hold harmless the Owner and its respective successors and assigns (if any), and their respective officers, directors, members, managers, partners, employees, stockholders, agents, Affiliates, and any Person who controls any of
such Persons within the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Owner Party”) from and against any Damages that such Indemnified Owner Party may sustain, suffer, or incur and that result from, arise
out of, or relate to any breach or inaccuracy of any representation or warranty made by the Buyer made in Section 4 of this Agreement or in the Buyer’s Closing Certificate. 
  
 11. Termination. 
  
 11.1 Grounds for Termination. The Parties may terminate this Agreement at any time before the Closing as provided below: 
  
 (a) by mutual written consent of the Owner and the Buyer;

  
 (b) by the Buyer if the Closing has not
occurred on or before the Termination Date, unless the reason that the Closing has not occurred shall be the failure of the Buyer to fulfill its obligations hereunder (provided that the Owner’s failure to provide the acknowledgments pursuant to
Sections 2.2(a)(x) and (xi) shall not give rise to Buyer’s right to terminate so long as the Owner has used reasonable efforts to obtain such acknowledgements); or 
  
 (c) by the Owner if the Closing has not occurred on or before the Termination Date, unless the reason that
the Closing has not occurred shall be the failure of the Owner to fulfill its obligations hereunder. 
  

 12 

 11.2 Effect of Termination. In the event of the termination hereof as expressly permitted under
Section 11.1, this Agreement shall forthwith become void and have no effect (except for this Section 11.2) and there shall be no liability or responsibility in respect of this Agreement on the part of any of the Buyer or the Owner or any of their
respective officers, directors, or shareholders except as provided in Section 7.2. Notwithstanding the foregoing, if such termination results solely from the failure of the Buyer to fulfill its obligations under this Agreement (which failure shall
not have been preceded or accompanied by a failure of the Owner to fulfill its obligations under this Agreement), the Deposit shall be paid to the Owner in accordance with the Owner’s instructions, as set forth in Exhibit A, as
soon as reasonably practical following the Owner’s delivery of notice of termination to the Escrow Agent. In the event of a termination hereunder without Closing, each Party hereto shall return promptly to the other Party hereto or destroy (and
certify such destruction to the other Party in writing) all documents, work papers, and other material of the other Party (and in the case of the Buyer, any Due Diligence Materials in its possession) furnished or made available to such Party or its
representatives or agents, and all copies thereof, and agrees that no information received by it or its representatives or agents shall be revealed by it or its representatives or agents to any third party or used for the advantage of such Party or
any other Person. 
  
 12. General Matters. 
  
 12.1 Contents of Agreement. This Agreement, together with the other
Transaction Documents, sets forth the entire understanding of the Parties with respect to the Transactions and supersedes all prior Contracts or understandings, oral or written, between the Parties regarding those matters. 

 
 12.2 Limitations on Representations and Warranties; “AS-IS”
Transaction. THE BUYER ACKNOWLEDGES TO AND AGREES WITH THE OWNER THAT THE BUYER IS PURCHASING THE MINORITY INTEREST “AS-IS, WHERE IS” AND “WITH ALL FAULTS” AS OF THE CLOSING DATE AND SPECIFICALLY AND EXPRESSLY WITHOUT ANY
WARRANTIES, REPRESENTATIONS OR GUARANTEES, EITHER EXPRESS OR IMPLIED, AS TO THE CONDITION, FITNESS FOR ANY PARTICULAR PURPOSE OR ANY OTHER WARRANTY OF ANY KIND, NATURE, OR TYPE WHATSOEVER (WHETHER RELATED TO THE MINORITY INTEREST OR THE PROPERTY)
FROM OR ON BEHALF OF THE OWNER OR ANY AFFILIATE, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY MADE BY THE OWNER IN SECTION 3 OF THIS AGREEMENT. THE BUYER FURTHER ACKNOWLEDGES AND AGREES THAT: (A) THE BUYER HAS BEEN DULY REPRESENTED BY
COUNSEL IN CONNECTION WITH THE NEGOTIATION OF THIS AGREEMENT; AND (B) THE OWNER HAS MADE NO AGREEMENT WITH BUYER PERTAINING TO THE MINORITY INTEREST EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN THE AMENDED OPERATING AGREEMENT. 
  
 12.3 Survival. The representations and warranties contained in this
Agreement shall survive for a period of up to twelve (12) months from the Closing Date. 
  
 12.4 Amendment, Parties in Interest, Assignment, Miscellaneous. This Agreement may be amended, modified, or supplemented only by a written instrument duly executed by each 

  

 13 

 
of the Parties. If any provision of this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. This Agreement shall be binding upon, inure
to the benefit of, and be enforceable by the respective successors and permitted assigns of the Parties. Nothing in this Agreement shall confer any rights upon any Person other than the Parties and their respective successors and permitted assigns,
except as provided in Section 8. No Party shall assign this Agreement or any right, benefit, or obligation hereunder. Any term or provision of this Agreement may be waived at any time by the Party entitled to the benefit thereof by a written
instrument duly executed by such Party. Neither the failure nor the delay by any Party in exercising any right, power, or privilege hereunder shall operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such
right, power, or privilege shall preclude any other or further exercise of any such right, power, or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable Law, (a) no waiver that may be
given by a Party shall be applicable except in the specific instance for which it was given and (b) no notice to or demand on one Party shall be deemed to be a waiver of any obligation of such Party or the right of the Party giving such notice or
demand to take further action without notice or demand as provided in this Agreement or the other Transaction Documents. 
  
 12.5 Non-solicitation. From the date hereof until the Closing, the Owner shall not market, or cause the marketing, of the Property or solicit or
hold discussions with, or provide any information concerning the Property, the Ownership Entity, Holdings or Investors to, any other prospective purchasers of the Property or of interests in the Ownership Entity, Holdings or Investors. 

 
 12.6 Further Assurances. At and after the Closing, the Parties
shall execute and deliver any and all documents and take any and all other actions that may be deemed reasonably necessary by their respective counsel to complete the Transactions. 
  
 12.7 Interpretation. Unless the context of this Agreement clearly requires otherwise, (a) references to the plural
include the singular, the singular the plural, and the part the whole, (b) references to any gender include all genders, (c) “including” has the inclusive meaning frequently identified with the phrase “but not limited to,” and
(d) references to “hereunder” or “herein” relate to this Agreement. Any determination as to whether a situation is material shall be made by taking into account the effect of all other provisions of this Agreement that contain a
qualification with respect to materiality so that the determination is made after assessing the aggregate effect of all such situations. The section and other headings contained in this Agreement are for reference purposes only and shall not control
or affect the construction of this Agreement or the interpretation thereof in any respect. Section, subsection, and Exhibit references are to this Agreement unless otherwise specified. Each accounting term used herein that is not specifically
defined herein shall have the meaning given to it under GAAP. Any reference to a Party’s being satisfied with any particular item or to a Party’s determination of a particular item presumes that such standard will not be achieved unless
such Party shall be satisfied or shall have made such determination in its sole or complete discretion. 
  

 14 

 12.8 Counterparts. This Agreement may be executed in counterparts (delivery of which may occur via
facsimile), each of which shall be binding as of the date first written above, and, when delivered, all of which shall constitute one and the same instrument. A facsimile signature or electronically scanned copy of a signature shall constitute and
shall be deemed to be sufficient evidence of a Party’s execution of this Agreement, without necessity of further proof. Each such copy (or facsimile) shall be deemed an original, and it shall not be necessary in making proof of this Agreement
to produce or account for more than one such counterpart. 
  
 12.9
Negotiated Agreement. The Parties hereby acknowledge that the terms and language of this Agreement were the result of negotiations between the Parties and, as a result, there shall be no presumption that any ambiguities in this Agreement
shall be resolved against any particular Party. Any controversy over construction of this Agreement shall be decided without regard to events of authorship or negotiation. 
  
 13. Remedies. 
  
 The indemnification rights under Section 8 are the sole and exclusive rights and remedies that the Parties have at law or in equity or otherwise for any
misrepresentation or breach of warranty on the part of either Party. 
  
 14.
Notices. 
  
 All notices that are required or permitted
hereunder shall be in writing and shall be sufficient if personally delivered or sent by registered or certified mail, facsimile message, or Federal Express or other nationally recognized overnight delivery service. Any notices shall be deemed given
upon the earlier of the date when received at, or the third Business Day after the date when sent by registered or certified mail or the Business Day after the date when sent by Federal Express or facsimile to, the address or facsimile number set
forth below, unless such address or facsimile number is changed by written notice to the other Parties in accordance with this Agreement: 
  
 If to the Owner: 
  
 First States Group, L.P. 
 1725 The Fairway,

 Jenkintown, PA 19046 
 Attn:
Edward J. Matey, Jr. 
 Facsimile: (215) 877-9856 
  
 with a required copy to: 
  
 Morgan, Lewis & Bockius LLP 
 1701 Market
Street 
 Philadelphia, PA 19103 
 Attn: James W. McKenzie, Jr. 
 Facsimile: (877) 432-9652 
  

 15 

 If to the Buyer: 
  
 IPC Realty II, LLC 
 Suite 115 
 303 North Hurstbourne Parkway 
 Louisville, KY 40222 
 Attn: Bruce Wibbels 
 Facsimile: (502) 326-1105 
  
 with required copies to: 
  
 IPC US Real Estate Investment Trust 
 175
Bloor Street East 
 South Tower, 7th Floor 
 Toronto, Ontario M4W 3R8 
 Canada 
 Attn: Gary M. Goodman 
 Facsimile: (416)
929-5314 
  
 Davies Ward Phillips & Vineberg LLP 

625 Madison Avenue, 12th Floor 
 New York,
NY 10022 
 Attn: Fiona J. Kelly 
 Facsimile: (212) 308-0132 
  
 15. Governing Law.

  
 This Agreement shall be construed and interpreted in
accordance with the Laws of the State of New York without regard to its provisions concerning conflicts of Laws, choice of Law, choice of forum, or principles that might otherwise refer construction or interpretation of this Agreement to the
substantive Law of another jurisdiction. The Parties hereby irrevocably (a) submit themselves to the non-exclusive jurisdiction of the state and federal courts sitting in the City of New York, New York and (b) waive the right and hereby agree not to
assert by way of motion, as a defense or otherwise, in any action, suit, or other legal proceeding brought in any such court, any claim that it is not subject to the jurisdiction of such court, that such action, suit, or proceeding is brought in an
inconvenient forum, or that the venue of such action, suit, or proceeding is improper. Each Party also irrevocably and unconditionally consents to the service of any process, pleadings, notices, or other papers in a manner permitted by the notice
provisions of Section 14. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF SUCH
PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE, AND ENFORCEMENT HEREOF. 
  

 16 

 16. Definitions. 
  

Certain terms used in this Agreement are listed in alphabetical order and defined or referred to below (such terms as well as any other terms defined
elsewhere in this Agreement shall be equally applicable to both the singular and plural forms of the terms defined). 
  
 “Affiliates” means, with respect to a particular Party, Persons controlling, controlled by, or under common control with that Party, as
well as any officers and directors and their immediate family members of that Party and of its other Affiliates. For the purposes of the foregoing, ownership, directly or indirectly, of more than 50% of the voting securities or other equity interest
of a Person shall be deemed to constitute control. 
  
 “Agreement” means this Agreement and the Exhibits. 
  
 “Amended Operating Agreement” means the Amended and Restated Limited Liability Company Agreement of the Ownership Entity in the form attached hereto as Exhibit G. 
  
 “Antennae Lease” that certain antennae lease between
Investors and the City of Boston. 
  
 “Assignment
Agreement” means an Assignment and Transfer Agreement, by and among the Buyer, the Owner, and the Ownership Entity in substantially the form attached hereto as Exhibit H. 
  
 “Building” is defined in the preamble. 
  
 “Business Day” means any day other than (i) a Saturday or a
Sunday, (ii) a day on which banking institutions in New York, U.S., Louisville, U.S., or Toronto, Canada are authorized to close, and (iii) any of the First Day Passover, Second Day Passover, Seventh Day Passover, Eighth Day Passover, First Day
Shavuoth, Second Day Shavuoth, First Day Rosh Hashanah, Second Day Rosh Hashanah, Yom Kippur, First Day Sukkoth, Second Day Sukkoth, Shemini Azereth and Simchas Torah. 
  
 “Buyer” is defined above in the preamble. 
  
 “Buyer’s Closing Certificate” means a certificate to be executed by an executive officer of the Buyer
at the Closing in substantially the form attached hereto as Exhibit I. 
  
 “Charter Documents” mean a Person’s certificate or articles of incorporation, certificates defining the rights and preferences of securities, articles of organization, general or limited
partnership agreement, certificate of limited partnership, certificate of formation, operating agreement, joint venture agreement, or other similar document governing the Person. 
  
 “Closing” is defined in Section 2.1. 
  
 “Closing Date” is defined in Section 2.1. 
  
 “Contract” means any written or oral contract, agreement, lease, instrument, or other document or
commitment, arrangement, undertaking, practice, or authorization that is binding on any Person or its property under any applicable Law. 
  

 17 

 “Court Order” means any judgment, decree, injunction, order, or ruling of any
Governmental Body that is binding on any Person or its property under applicable Law. 
  
 “Damages” are defined in Section 10.1. 
  
 “Deposit” means cash in the amount of U.S.$4,500,000 deposited by the Buyer with the Escrow Agent on December 7, 2004. 
  
 “Due Diligence Materials” is defined in Section 3.5. 
  
 “Employment Acknowledgement” means an acknowledgement to be
executed by an executive officer of Gale at the Closing substantially in the form attached hereto as Exhibit J. 
  
 “Escrow Agent” means Chicago Title Insurance Company. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the
Securities and Exchange Commission promulgated thereunder. 
  
 “Exhibits” means any of the exhibits referred to herein and attached hereto. 
  
 “First States Management” means First States Management Corp., LLC, a Delaware limited liability company. 
  
 “First States Management Agreement” means the property
management agreement relating to the Property made as of February 13, 2004 between Investors, as owner, and First States Management, as property manager. 
  
 “GAAP” means U.S. generally accepted accounting principles. 
  
 “Gale” means The Gale Company LLC, a Delaware limited liability company. 
  
 “Gale Management Agreement” means the property management
and leasing agreement dated as of September 22, 2000 made between the Original Seller, as the then current owner of the Property, and Gale, as property manager, as amended by an assignment and amendment of property management and leasing agreement
effective as of February 17, 2004 between Gale, Investors and First States Management. 
  
 “Governmental Body” mean any (a) nation, state, commonwealth, province, territory, county, municipality, district, or other jurisdiction of any nature, or any political subdivision thereof, (b)
federal, state, local, municipal, foreign, or other government, or (c) governmental or quasi-governmental authority of any nature (including any governmental division, department, agency, commission, instrumentality, official, organization,
regulatory body, or other entity and any court, arbitrator, or other tribunal). 
  
 “Holdings” is defined in the preamble. 
  
 “Indemnified Buyer Party” is defined in Section 10.1. 
  
 “Indemnified Owner Party” is defined in Section 10.2. 
  

 18 

 “Interest Reimbursement Period” means the period beginning on the Closing Date and
ending on the fifth anniversary of the Closing Date. 
  
 “Investors” is defined in the preamble. 
  
 “IPC Management Agreement” means the agreement to be entered into between IPC Real Estate Management LLC, as sub-manager or asset manager, and First States Management, as manager, relating to the management of the Property,
in the form attached hereto as Exhibit K. 
  
 “Law” means any statute, law, ordinance, regulation, order, or rule of any Governmental Body, including those covering environmental, energy, safety, health, transportation, bribery, record keeping, zoning,
anti-discrimination, antitrust, wage and hour, and price and wage control matters, as well as any applicable principle of common law. 
  
 “Lehman” means Lehman Brothers Bank FSB. 
  
 “Management Contracts” means, collectively, the First States Management Agreement and the Gale Management Agreement. 
  
 “Management Office Sublease” means the sublease dated as of
October 1, 2003 made between State Street, as sub-landlord, and the Original Seller (whose rights thereunder were subsequently assigned to Investors), as subtenant, in respect of certain premises on the 7th floor of the Property. 
  
 “Material Adverse Effect” means any event (whether
considered in isolation or viewed collectively with other events which occur on or before the Closing Date) which results in a material adverse change in the business, results of operations or property (including the Property) of any of the
Ownership Entity, Holdings or Investors or the ability of either of the Parties to consummation the Transactions, which material adverse change would be deemed to exist if, for example and without limitation, (i) the Property is damaged or destroyed
by fire or any other cause, or is subject to a pending, threatened or completed taking by condemnation or eminent domain (or a proposed conveyance under threat thereof), which results in more than 5% of the premises (exclusive of storage space)
demised under the State Street Office Lease being rendered untenantable for a period in excess of ten Business Days; or (ii) an event (or series of events) occur which result in a 5% or greater diminution in the value of the Property (excluding, for
greater certainty, any event which affects as a whole the commercial real estate market or is attributable to economic factors affecting the economy (local, regional, national, or global) in general). 
  
 “Mezzanine Loan Documents” means the Mezzanine Loan
Agreement by and between Holdings and SBF Funding dated as of September 30, 2004 and the Loan Documents defined therein. 
  
 “Minority Interest” is defined in the preamble. 
  

“Mortgage Loan Documents” means the Loan Agreement by and between Investors and Lehman dated February 17, 2004 and the other Loan
Documents defined therein. 
  

 19 

 “Operating Cash Flow” has the meaning ascribed to it in the Amended Operating Agreement.

  
 “Original Purchase Agreement” means the
agreement of purchase and sale dated as of February 1, 2004 by and between the Original Seller, as vendor, and Investors, as purchaser, as amended by the first amendment to agreement of purchase and sale entered into as of February 13, 2004 between
the same parties. 
  
 “Original Seller” means
Kingston Bedford Joint Venture LLC. 
  
 “Owner”
is defined above in the preamble. 
  
 “Owner’s
Closing Certificate” means a certificate to be executed by an executive officer of the Owner at the Closing in substantially the form attached hereto as Exhibit L. 
  
 “Ownership Entity” is defined in the preamble. 
  
 “Owner’s knowledge,” “knowledge of the
Owner,” or phrases of similar import mean the actual, and not constructive, knowledge of Nicholas S. Schorsch, Glenn Blumenthal, James T. Ratner or Edward J. Matey Jr. 
  
 “Parking Garage” is defined in the preamble. 
  
 “Parties” is defined in the preamble. 
  
 “Person” means any natural person, business trust, corporation, partnership, limited liability company,
joint stock company, proprietorship, association, trust, joint venture, unincorporated association, or any other legal entity of whatever nature. 
  
 “Property” means that certain real property comprised of approximately 70,000 square feet, located at One Lincoln Street, Boston,
Massachusetts. 
  
 “Purchase Price” is defined in
Section 1.2(a). 
  
 “SBF Funding” means SBF
Funding, Inc. 
  
 “Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations of the Securities and Exchange Commission promulgated thereunder. 
  
 “Service Contract” is define in Section 3.12. 
  
 “State Street” means SSB Realty LLC. 
  
 “State Street Estoppel Certificates” means (i) an estoppel certificate of State Street with respect to the State Street Office Lease; and
(ii) an estoppel certificate with respect to the State Street Garage Lease, each in substantially the form attached to the State Street Lease as Exhibit K thereof. 
  

 20 

 “State Street Leases” means, collectively, the State Street Office Lease and the State
Street Garage Lease. 
  
 “State Street Garage
Lease” means the indenture of lease made in May 2004 between Investors, as landlord, and State Street, as tenant, in respect of the Parking Garage. 
  
 “State Street Office Lease” means the indenture of lease dated as of May 9, 2001 made between the Original
Seller, as landlord, and State Street, as tenant, as it has been amended by a first amendment to property lease dated as of August 16, 2003 and a second amendment to property lease dated as of February 13, 2004 in respect of the office, retail and
storage areas of the Property. 
  
 “Tax Return”
means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
  
 “Taxes” mean all taxes, duties, charges, fees, levies, or
other assessments imposed by any Governmental Body including income, gross receipts, value-added, excise, withholding, personal property, real estate, sale, use, ad valorem, license, lease, service, severance, stamp, transfer, payroll, employment,
customs, duties, alternative, add-on minimum, estimated, and franchise taxes (including any interest, penalties, or additions attributable to or imposed on or with respect to any such assessment). 
  
 “Tenant Leases” means, collectively, the State Street Office
Lease, the State Street Parking Garage Lease, the Management Office Sublease and the Antennae Lease. 
  
 “Termination Date” means December 23, 2004. 
  
 “Third Amendment to State Street Office Lease” means the third amendment to property lease to be executed by an executive officer of each
of Investors and State Street at Closing in substantially the form attached hereto as Exhibit M. 
  
 “Transaction Documents” mean this Agreement, the Assignment Agreement, the Amended Operating Agreement and the Management Agreement.

  
 “Transactions” mean the purchase, sale,
assignment and transfer of the Minority Interest at the Closing and the other transactions contemplated by the Transaction Documents. 
  
 “U.S.” means the United States of America. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 21 

 IN WITNESS WHEREOF, this Agreement has been executed by the Parties as of the date first written
above. 
  

			
	 FIRST STATES GROUP, L.P., by
 First States Group, LLC, its general partner.

		
	By:	 	 
	 Name:
	 	 Glenn Blumenthal

	 Title:
	 	 Senior Vice President

	 	 	 & Chief Operating Officer

	
	IPC REALTY II, LLC
		
	By:	 	 
	 Name:
	 	 Bruce Wibbels

	 Title:
	 	 President and Treasurer

  

 A-1 

  
 Exhibit A 

Wire Transfer Instructions 
  

 A-1 

  
 Exhibit B 

Service Contracts 
  

 B-1 

  
 Exhibit C 

Operating Statement 
  

 C-1 

  
 Exhibit D 

Balance Sheet 
  

 D-1 

  
 Exhibit E 

Due Diligence Materials 
  

 E-1 

  
 Exhibit F 

Transferred Employees 
  

 F-1 

  
 Exhibit G 

Amended Operating Agreement 
  

 G-1 

  
 Exhibit H 

Form of Assignment Agreement 
  
 ASSIGNMENT AND ASSUMPTION OF 
 MEMBERSHIP INTEREST IN 
 FIRST STATES INVESTORS 228 HOLDINGS A, LLC 
  
 This Assignment and Assumption of Membership Interest in First States
Investors 228 Holdings A, LLC, a Delaware limited liability company (“Assignment”) is entered into as of this              day of December, 2004 by and between First States
Group, L.P., a Delaware limited partnership (the “Assignor”), with offices at 1725 The Fairway, Jenkintown, PA 19046, and IPC Realty II, LLC, a Delaware limited liability company (the “Assignee”), with offices at Suite 115, 303
North Hurstbourne Parkway, Louisville, KT 40222. 
  
 WHEREAS,
Assignor has agreed to sell and transfer to Assignee, and Assignee has agreed to purchase from Assignor, all of Assignor’s right, title and interest in and to a portion of Assignor’s Membership Interest comprising a 30% Percentage Interest
(the “Minority Interest”) in First States Investors 228 Holdings A, LLC, a Delaware limited liability company (the “Company”). 
  
 NOW, THEREFORE, in consideration of the payment of One Dollar ($1.00) and other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, and intending to be legally bound hereby, Assignor, as of the date hereof, hereby grants, assigns, conveys, transfers, sets over to and vests in Assignee all of Assignor’s right, title and interest, legal and equitable, in
and to the Minority Interest. Assignee hereby accepts from Assignor the Minority Interest and Assignee hereby agrees to assume all of Assignor’s respective rights, duties and obligations as they relate to the Minority Interest from and after
the date hereof. 
  
 This Assignment shall be governed by the laws
of the State of Delaware and no modification, waiver or amendment shall be binding without the prior written consent of Assignor and Assignee. This Assignment may be executed in one or more counterparts (and any counterpart may be executed by
facsimile), each of which shall be deemed to be an original copy of this Assignment and all of which, when taken together, shall be deemed to constitute but one and the same Assignment. 
  
 [Signatures appear on the following page.] 
  

 H-1 

 IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be duly executed as of the date
first written above 
  

			
	ASSIGNOR:
	
	FIRST STATES GROUP, L.P., by
	 First States Group, LLC, its general partner.

		
	By:	 	 
	 Name:
	 	 Glenn Blumenthal

	 Title:
	 	 Senior Vice President
 & Chief Operating Officer

  

			
	 ASSIGNEE:

	
	IPC REALTY II, LLC
		
	By:	 	 
	 Name:
	 	 Bruce Wibbels

	 Title:
	 	 President and Treasurer

  

 H-2 

  
 Exhibit I 

Buyer’s Closing Certificate 
  
 BUYER’S CLOSING CERTIFICATE 
  
 I,
                                       
 ,                          of IPC Realty II, LLC, a Delaware limited liability company (the “Buyer”),
pursuant to the Purchase Agreement, dated as of December     , 2004 (the “Agreement”), by and between the First States Group, L.P., a Delaware limited partnership and Buyer do hereby certify as follows:

  
 1. The representations and warranties of the Buyer contained
in the Agreement are true and correct in all material respects as of the date hereof, without taking into account any qualifiers of materiality or qualifiers of similar import. 
  
 2. The Buyer has performed or complied with all agreements, conditions, and covenants required by the Agreement to be
performed or complied with by the Company at or prior to the date hereof (except to the extent otherwise waived by the Owner). 
  
 IN WITNESS WHEREOF, I have executed this Certificate as of the date and year first written above. 
  

	
	
	 
	 Name:

	 Title:

  

 I-1 

  
 Exhibit J 

Employment Acknowledgement 
  

 J-1 

  
 Exhibit K 

IPC Management Agreement 
  

 K-1 

  
 Exhibit L 

Owner’s Closing Certificate 
  
 OWNER’S CLOSING CERTIFICATE 
  
 I,                     ,
                 of First States Group, L.P., a Delaware limited partnership (the “Owner”), pursuant to the Purchase Agreement, dated as of December
        , 2004 (the “Agreement”), by and between the Owner and IPC Realty II, LLC, a Delaware limited liability company, as Buyer, do hereby certify as follows: 
  
 3. The representations and warranties of the Owner contained in the Agreement
are true and correct in all material respects as of the date hereof, without taking into account any qualifiers of materiality or qualifiers of similar import. 
  

4. The Owner has performed or complied with all agreements, conditions, and covenants required by the Agreement to be performed or complied with by the
Company at or prior to the date hereof (except to the extent otherwise waived by the Buyer). 
  
 IN WITNESS WHEREOF, I have executed this Certificate as of the date and year first written above. 
  

	
	
	 
	 Name:

	 Title:

  

 L-1 

  
 Exhibit M 

Third Amendment to Lease 
  

 M-1Placement Agreement

 Exhibit 10.15 
  
 EXECUTION COPY 
  
 $250,000,000 
  
 DEL MONTE CORPORATION 
  
 63⁄4% SENIOR SUBORDINATED NOTES DUE 2015 
  
 PLACEMENT AGREEMENT 
  
 January 25, 2005

 January 25, 2005 
  
 Morgan Stanley & Co. Incorporated 
 Banc of America Securities LLC

 Lehman Brothers Inc. 
 J.P. Morgan Securities Inc. 

			
	c/o	 	Morgan Stanley & Co. Incorporated
	 	 	1585 Broadway
	 	 	New York, New York 10036

  
 Dear Sirs and Mesdames: 
  
 Del Monte Corporation, a Delaware corporation (the
“Company”), proposes to sell to the several purchasers named in Schedule I hereto (the “Placement Agents”) an aggregate of $250,000,000 principal amount of the Company’s 63⁄4% Senior Subordinated Notes due
2015 (the “Securities”) to be issued pursuant to the provisions of an Indenture to be dated on or about February 8, 2005 (the “Indenture”) among the Company, Del Monte Foods Company, a Delaware corporation
(“Holdings”), the Guarantors (as defined below), and Deutsche Bank Trust Company Americas, as Trustee (the “Trustee”). In connection with the sale of the Securities to the Placement Agents, the Company and Holdings
will enter into a Registration Rights Agreement (the “Registration Rights Agreement”) with the Placement Agents, substantially in the form attached hereto as Exhibit A. 
  
 The Securities will be guaranteed by (1) Holdings, (2) the subsidiaries of the Company listed in Schedule II herein (the
“Company Subsidiary Guarantors”), (3) any subsidiary of the Company formed or acquired after the Closing Date (as defined in Section 4 hereof) that executes an additional guarantee in accordance with the terms of the Indenture and
(4) the respective successors and assigns of the entities referred to in (1), (2) and (3) above (the entities referred to in (1), (2), (3) and (4) above, collectively, the “Guarantors”) pursuant to their guarantees (the
“Guarantees”). 
  
 The Securities will be offered
without being registered under the Securities Act of 1933, as amended (the “Securities Act”), to qualified institutional buyers in compliance with the exemption from registration provided by Rule 144A under the Securities Act and in
offshore transactions in reliance on Regulation S under the Securities Act (“Regulation S”). 
  
 In connection with the sale of the Securities, the Company has prepared a preliminary offering memorandum (the “Preliminary Memorandum”)
and will prepare a final offering memorandum to be used by the Placement Agents to confirm sales of the Securities (the “Final Memorandum” and, with the Preliminary Memorandum, each a “Memorandum”), including or
incorporating by reference a description of the terms of the Securities, the terms of the offering and a description of the Company and Holdings. As used herein, the term “Memorandum” shall include in each case the documents incorporated
by reference therein and shall include amendments and supplements thereto. The terms “supplement”, “amendment” and “amend” as used herein with respect to a Memorandum shall include all documents
incorporated by reference in the Preliminary Memorandum or Final Memorandum, as the case may be, that are filed by Holdings with the Securities and Exchange Commission (the “Commission”) pursuant to the Securities Exchange Act of
1934, as amended (the “Exchange Act”) subsequent to the date of such Memorandum until all of the Securities have been sold. 
  

 2 

 1. Representations and Warranties of the Company and Holdings. The Company and Holdings, jointly
and severally, represent and warrant to, and agree with, you that: 
  
 (a) (i) Each document, if any, filed or to be filed by Holdings pursuant to the Exchange Act and incorporated or deemed to be incorporated by reference in either Memorandum complied or will comply when so filed in all
material respects with the Exchange Act and the applicable rules and regulations of the Commission thereunder and (ii) the Preliminary Memorandum at its date did not contain, and the Final Memorandum at its date and on the Closing Date will not
contain, any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties
set forth in this paragraph do not apply to statements or omissions in either Memorandum based upon information relating to any Placement Agent that is furnished to Holdings or the Company in writing by such Placement Agent expressly for use
therein. 
  
 (b) Each of the Company and Holdings
has been duly incorporated, is validly existing as a corporation in good standing under the laws of the jurisdiction of its incorporation, has the corporate power and authority to own its property and to conduct its business as described in each
Memorandum and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be
so qualified or be in good standing would not have a material adverse effect on Holdings, the Company and each of their direct and indirect subsidiaries, taken together as a whole (“Material Adverse Effect”). As of the date hereof,
Holdings does not have any direct subsidiaries other than the Company, and on the Closing Date, Holdings will not have any direct subsidiaries other than the Company. 
  
 (c) Each material subsidiary of the Company (the “Company Subsidiaries”) has been duly
incorporated, is validly existing as a corporation in good standing under the laws of the jurisdiction of its incorporation, has the corporate power and authority to own its property and to conduct its business as described in each Memorandum and is
duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be
in good standing would not have a Material Adverse Effect; all of the issued shares of capital stock of the Company and each Company Subsidiary have been duly and validly authorized and issued, are fully paid and non-assessable and are owned
directly or indirectly by the Company or Holdings, as the case may be, free and clear of all liens, encumbrances, equities or claims, except to the extent that the shares of capital stock of the Company and each Company Subsidiary secure or will
secure obligations under the Company’s Credit Agreement (as defined in the Indenture). 
  

 3 

 (d) This Agreement has been duly authorized, executed and delivered by the Company and
Holdings. 
  
 (e) The Securities have been duly
authorized by the Company and, when executed and authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Placement Agents in accordance with the terms of this Agreement, will be valid and binding
obligations of the Company, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity, and will be entitled to the benefits of
the Indenture. 
  
 (f) On or prior to the Closing
Date, the Guarantees by Holdings and the Company Subsidiary Guarantors will be duly authorized and, when such Guarantees and the Securities have been executed and assuming the Securities have been authenticated, all in accordance with the provisions
of the Indenture, and the Securities have been delivered to and paid for by the Placement Agents in accordance with the terms of this Agreement, the Guarantees by Holdings and the Company Subsidiary Guarantors will be valid and binding obligations
of Holdings and each Company Subsidiary Guarantor, as the case may be, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of
equity, and will be entitled to the benefits of the Indenture. 
  
 (g) On or prior to the Closing Date, (i) the Indenture will be duly authorized, executed and delivered by, and will be a valid and binding agreement of, the Company, Holdings and each Company Subsidiary Guarantor,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity; and (ii) the Registration Rights Agreement will be duly authorized,
executed and delivered by, and will be a valid and binding agreement of, the Company, Holdings and each Company Subsidiary Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting
creditors’ rights generally and general principles of equity and except as rights to indemnification and contribution under the Registration Rights Agreement may be limited by applicable law. 
  
 (h) The execution and delivery by the Company, Holdings and
each Company Subsidiary Guarantor of, and the performance by the Company, Holdings and each Company Subsidiary Guarantor of its respective obligations under, this Agreement, the Indenture, the Registration Rights Agreement, the Guarantees and the
Securities (collectively, the “Transaction Documents”) to which it is a party will not contravene any provision of applicable law or the certificate of incorporation or by-laws of the Company, Holdings or such Company Subsidiary
Guarantor, as the case may be, or any agreement or other instrument binding upon the Company, Holdings or any of the Company Subsidiaries, the contravention of which agreement or instrument would be expected to have a Material Adverse Effect, or any
judgment, order or decree of any governmental body, agency or court having jurisdiction over Holdings, the Company or any of the Company Subsidiaries, as the case may be, the contravention of which judgment, order or decree would be expected to have
a Material Adverse Effect, and no 
  

 4 

 consent, approval, authorization or order of, or qualification with, any governmental body or agency is
required for the performance by the Company, Holdings or such Company Subsidiary Guarantor of its respective obligations under the Transaction Documents to which it is a party, except (A) as already have been obtained and (B) such as may be required
by the securities or Blue Sky laws of the various states in connection with the offer and sale of the Securities or (C) such as may be required under the Securities Act in connection with the performance by the Company and Holdings of their
obligations under the Registration Rights Agreement. 
  
 (i) There has not occurred any material adverse change, or any development involving a prospective material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of Holdings, the Company and
the Company Subsidiaries, taken together as a whole, from that set forth in the Memorandum. 
  
 (j) There are no legal or governmental proceedings pending or, to the knowledge of the Company and Holdings, threatened to which Holdings,
the Company or any of the Company Subsidiaries is a party or to which any of the properties of Holdings, the Company or any of the Company Subsidiaries is subject, other than proceedings described in the Memorandum or any proceedings that would not
have (i) a Material Adverse Effect or (ii) a material adverse effect on the power or ability of the Company, Holdings and each Company Subsidiary Guarantor to perform its respective obligations under the Transaction Documents to which it is a party
or to consummate the transactions contemplated by the Memorandum. 
  
 (k) The Company, Holdings and the Company Subsidiaries (i) are in compliance with all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except where such noncompliance with Environmental Laws, failure to receive required permits, licenses or other approvals
or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or in the aggregate, have a Material Adverse Effect or as described in the Memorandum. 
  
 (l) There are no costs or liabilities associated with
Environmental Laws (including, without limitation, any capital or operating expenditures required for cleanup, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related constraints on operating
activities and any potential liabilities to third parties) which would, singly or in the aggregate, have a Material Adverse Effect, except as described in the Memorandum. 
  
 (m) The Company, Holdings and the Company Subsidiaries are in compliance with all laws, ordinances or
regulations of any governmental authority applicable to any of them or their respective operations, except where such noncompliance would not, singly or in the aggregate, reasonably be expected to have a Material Adverse Effect or as described in
the Memorandum. 
  

 5 

 (n) None of Holdings, the Company or any Company Subsidiary Guarantor is, and after
giving effect to the offering and sale of the Securities and the application of the proceeds thereof as described in the Final Memorandum, none of Holdings, the Company or any Company Subsidiary Guarantor will be required to register as, an
“investment company” as such term is defined in the Investment Company Act of 1940, as amended. 
  
 (o) None of the Company, Holdings, the Company Subsidiary Guarantors or their respective affiliates (as defined in Rule 501(b) of
Regulation D under the Securities Act, an “Affiliate”) has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act)
that is or will be integrated with the sale of the Securities or the Guarantees in a manner that would require the registration under the Securities Act of the Securities or the Guarantees or (ii) engaged in any form of general solicitation or
general advertising (as those terms are used in Regulation D under the Securities Act) in connection with the offering of the Securities or the Guarantees or in any manner involving a public offering within the meaning of Section 4(2) of the
Securities Act. 
  
 (p) None of the Company,
Holdings, the Company Subsidiary Guarantors or their respective Affiliates or any person acting on its or their behalf has engaged or will engage in any directed selling efforts (within the meaning of Regulation S) with respect to the Securities or
the Guarantees, and the Company, Holdings, the Company Subsidiary Guarantors and their respective Affiliates and, to the knowledge of Holdings and the Company, any person acting on its or their behalf have complied and will comply with the offering
restrictions requirement of Regulation S. 
  
 (q)
Assuming the accuracy of the representations and warranties and the performance of the agreements of the Placement Agents contained in this Agreement, it is not necessary in connection with the offer, sale and delivery of the Securities or the
Guarantees to the Placement Agents in the manner contemplated by this Agreement to register the Securities or the Guarantees under the Securities Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”). 
  
 (r) The Securities
and the Guarantees satisfy the requirements set forth in Rule 144A(d)(3) under the Securities Act. 
  
 (s) Subsequent to the respective dates as of which information is given in the Memorandum, (1) none of Holdings, the Company nor any of
the Company Subsidiaries has incurred any liability or obligation, direct or contingent, or entered into any transaction not in the ordinary course of business, in either case that is material to Holdings, the Company and their direct and indirect
subsidiaries, taken together as a whole; (2) neither the Company nor Holdings has purchased any of its outstanding capital stock, or declared, paid or otherwise made any dividend or distribution of any kind on its capital stock other than ordinary
and customary dividends; and (3) there has not been any 
  

 6 

 material adverse change in the capital stock, short-term debt or long-term debt of Holdings, the Company
or the Company Subsidiaries, except in each case as described in the Memorandum. 
  
 (t) None of the Company, Holdings or any of the Company Subsidiaries is a party to or bound by any non-competition agreement or any other
agreement or obligation that materially limits or will materially limit the Company, Holdings or any of the Company Subsidiaries from engaging in their respective businesses, except as would not reasonably be expected to have a Material Adverse
Effect or as described in the Memorandum. 
  
 (u)
Holdings, the Company and the Company Subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them that is material to the business of Holdings, the Company and
the Company Subsidiaries, taken together as a whole, in each case free and clear of all liens, encumbrances and defects, except such as are described in the Memorandum or such as do not materially affect the value of such property and do not
materially interfere with the use made and currently proposed to be made of such property by Holdings, the Company and the Company Subsidiaries. Any real property and buildings held under lease by Holdings, the Company or the Company Subsidiaries
are held by them under valid, subsisting and enforceable leases, except as are not material and do not interfere with the use made and currently proposed to be made of such property and buildings by Holdings, the Company or the Company Subsidiaries
and except as described in the Memorandum. 
  
 (v) Except as described in the Memorandum, Holdings, the Company and the Company Subsidiaries own or possess, or can acquire on reasonable terms, all material 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 and trade names currently employed by them in connection with the business now operated by them. None
of Holdings, the Company or any of the Company Subsidiaries has received any notice of infringement of or conflict with asserted rights of others with respect to any of the foregoing which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, would result in a Material Adverse Effect, except as described in the Memorandum. 
  
 (w) No labor dispute with the employees of Holdings, the Company or any of the Company Subsidiaries exists that is material to Holdings,
the Company and their direct and indirect subsidiaries, taken together as a whole, except as described in the Memorandum, or, to the knowledge of Holdings, the Company or any of the Company Subsidiaries, is imminent. None of Holdings, the Company or
any of the Company Subsidiaries is aware of any existing, threatened or imminent labor disturbance by the employees of any of its or their principal suppliers, manufacturers or contractors that would result in a Material Adverse Effect. 

 
 (x) Holdings, the Company and each of the Company
Subsidiaries are insured by insurers believed by Holdings and the Company to be of recognized financial 
  

 7 

 responsibility against such losses and risks and in such amounts as are believed to be reasonable for the
businesses in which they are engaged; none of Holdings, the Company or any of the Company Subsidiaries has been refused any insurance coverage sought or applied for; and none of Holdings, the Company or any of the Company Subsidiaries has any reason
to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain substantially similar coverage from substantially similar insurers as may be necessary to continue its business at a cost
that would not have a Material Adverse Effect, except in each case as described in the Memorandum. 
  
 (y) Holdings, the Company and the Company Subsidiaries possess all certificates, authorizations and permits issued by the appropriate
federal, state or foreign authorities necessary to conduct their respective businesses, except to the extent that the failure to possess such certificates, authorizations or permits would not have a Material Adverse Effect. None of Holdings, the
Company or any of the Company Subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would have a Material Adverse Effect, except as described in the Memorandum. 
  
 (z) Holdings, the Company and each of the Company Subsidiaries maintain a system of internal accounting controls sufficient to provide
reasonable assurance that (1) transactions are executed in accordance with management’s general or specific authorizations; (2) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability; (3) access to assets is permitted only in accordance with management’s general or specific authorization; and (4) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
  
 2. Agreements to Sell and Purchase. The Company hereby agrees to sell to the several Placement Agents, and each Placement Agent, upon the basis of
the representations and warranties herein contained, but subject to the conditions hereinafter stated, agrees, severally and not jointly, to purchase from the Company the respective principal amount of Securities set forth in Schedule I hereto
opposite its name at a purchase price of 98.00% of the principal amount thereof. 
  
 The Company and Holdings hereby agree that, without the prior written consent of Morgan Stanley & Co. Incorporated on behalf of the Placement Agents, they will not, and the Company and Holdings will cause the
Company Subsidiary Guarantors to not, during the period beginning on the date hereof and continuing through and including the Closing Date, offer, sell, contract to sell or otherwise dispose of any debt securities of the Company or any Guarantor or
warrants to purchase debt securities of the Company or any Guarantor substantially similar to the Securities (other than the sale of the Securities under this Agreement). 
  
 3. Terms of Offering. You have advised the Company that the Placement Agents will make an offering of the Securities
purchased by the Placement Agents hereunder on the terms set forth in the Final Memorandum, as soon as practicable after this Agreement is entered into as in your judgment is advisable. 
  

 8 

 4. Payment and Delivery. Payment for the Securities shall be made to the Company in Federal or
other funds immediately available in New York City against delivery of such Securities for the respective accounts of the several Placement Agents at 10:00 a.m., New York City time, on February 8, 2005, or at such other time on the same or such
other date, not later than February 22, 2005, as shall be designated in writing by you. The time and date of such payment are hereinafter referred to as the “Closing Date.” 
  
 Certificates for the Securities shall be in definitive form or global form,
as specified by you, and registered in such names and in such denominations as you shall request in writing not later than one full business day prior to the Closing Date. The certificates evidencing the Securities shall be delivered to you
on the Closing Date for the respective accounts of the several Placement Agents, with any transfer taxes payable in connection with the transfer of the Securities to the Placement Agents duly paid by Holdings or the Company. 
  
 5. Conditions to the Placement Agents’ Obligations. The several
obligations of the Placement Agents to purchase and pay for the Securities on the Closing Date are subject to the following conditions (any of which may be waived by the Placement Agents in writing): 
  
 (a) Subsequent to the execution and delivery of this
Agreement and prior to the Closing Date: 
  
 (i)
there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded
the Company and Holdings, taken individually or taken together, or any of the Company’s or Holdings’ securities by any “nationally recognized statistical rating organization,” as such term is defined for purposes of Rule
436(g)(2) under the Securities Act; and 
  
 (ii)
there shall not have occurred any change, or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings, business or operations of Holdings, the Company and the Company Subsidiaries, taken together
as a whole, from that set forth in the Final Memorandum (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement) that, in your judgment, is material and adverse and that makes it, in your judgment, impracticable
to market the Securities on the terms and in the manner contemplated in the Final Memorandum. 
  
 (b) The Placement Agents shall have received on the Closing Date a certificate, dated the Closing Date and signed by either two executive
officers or an executive officer and an assistant treasurer of each of the Company and Holdings, to the effect set forth in Section 5(a)(i) and to the effect that the representations and warranties of the Company and Holdings contained in this
Agreement are true and correct as of the Closing Date and that the Company and Holdings have complied in all material respects 
  

 9 

 with all of the agreements and satisfied all of the conditions on their part to be performed or satisfied
hereunder on or before the Closing Date. The officers signing and delivering such certificate may rely upon the best of their knowledge as to proceedings threatened. 
  
 (c) The Placement Agents shall have received on the Closing Date an opinion of Gibson, Dunn & Crutcher
LLP, outside counsel for the Company and Holdings, dated the Closing Date, to the effect set forth in Exhibit B. Such opinion shall be rendered to the Placement Agents at the request of the Company and shall so state therein. 
  
 (d) The Placement Agents shall have received on the Closing
Date an opinion of James Potter, General Counsel of Holdings, dated the Closing Date, to the effect set forth in Exhibit C. Such opinion shall be rendered to the Placement Agents at the request of Holdings and shall so state therein. 
  
 (e) The Placement Agents shall have received on the Closing
Date an opinion of Shearman & Sterling LLP, counsel for the Placement Agents, dated the Closing Date, in form and substance reasonably satisfactory to the Placement Agents. 
  
 (f) The Placement Agents shall have received on each of (i) the date not later than the date the Final
Memorandum is furnished to the Placement Agents pursuant to Section 6(a) hereof and (ii) the Closing Date a letter, dated the date hereof or the Closing Date, as the case may be, in form and substance satisfactory to the Placement Agents, from KPMG
LLP, an independent registered public accounting firm, 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 of the Company and Holdings contained in or incorporated by reference into the Final Memorandum; provided that the letter delivered on the Closing Date shall use a “cut-off date” not earlier than the date
hereof. 
  
 (g) The Placement Agents shall have
received on each of (i) the date not later than the date the Final Memorandum is furnished to the Placement Agents pursuant to Section 6(a) hereof and (ii) the Closing Date a letter, dated the date hereof or of the Closing Date, as the case may be,
in form and substance satisfactory to the Placement Agents, from PricewaterhouseCoopers LLP, an independent registered public accounting firm, 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 of the Company contained in or incorporated by reference into the Final Memorandum. 
  
 (h) The Placement Agents shall have received on each of the
date hereof and the Closing Date a certificate, dated the date hereof or the Closing Date, as the case may be, in form and substance satisfactory to the Placement Agents, from the Company, signed by the principal financial or accounting officer of
or for the Company, to the effect that the signer of such certificate has performed (or members of his or her staff acting under his or her supervision have performed) certain specified procedures as a result of which such signer has determined that
certain numerical and statistical information set forth in the Final Memorandum, specified by the Placement Agents, has been derived from, and agrees with, the records of the Company. 
  

 10 

 (i) The issuance of the Securities will not cause a default or event of default under the
Credit Agreement (as defined in the Indenture). 
  
 (j) Concurrently with the Closing Date, the Company and the Guarantors shall have executed and delivered the Indenture to the Trustee. 
  
 (k) The Placement Agents shall have received signed counterparts of the Registration Rights Agreement. 
  
 6. Covenants of the Company and Holdings. In further consideration of
the agreements of the Placement Agents contained in this Agreement, the Company and Holdings covenant with each Placement Agent as follows: 
  
 (a) To furnish to you in New York City, without charge, prior to 10:00 a.m. New York City time on the third business day prior to the
Closing Date and during the period mentioned in Section 6(c), as many copies of the Final Memorandum, any documents incorporated by reference therein and any supplements and amendments thereto as you may reasonably request. 
  
 (b) Before amending or supplementing either Memorandum, to
furnish to you a copy of each such proposed amendment or supplement and not to use any such proposed amendment or supplement to which you reasonably object. 
  
 (c) If, during such period after the date hereof and prior to the date on which all of the Securities shall have been sold by the
Placement Agents, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Final Memorandum in order to make the statements therein, in the light of the circumstances when the Final Memorandum is
delivered to a purchaser, not misleading, or if, in the opinion of counsel for the Placement Agents, it is necessary to amend or supplement the Final Memorandum to comply with applicable law, forthwith to prepare and furnish to the Placement Agents,
either amendments or supplements to the Final Memorandum so that the statements in the Final Memorandum as so amended or supplemented will not, in the light of the circumstances when the Final Memorandum is delivered to a purchaser, be misleading or
so that the Final Memorandum, as amended or supplemented, will comply with applicable law. 
  
 (d) To endeavor to qualify the Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as you shall
reasonably request. 
  
 (e) Whether or not the
transactions contemplated in this Agreement are consummated or this Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of its respective obligations under this Agreement, including: (i) the fees,
disbursements and expenses of its respective counsel and respective accountants in connection with the issuance and sale of the Securities and all other fees or 
  

 11 

 expenses in connection with the preparation of each Memorandum and all amendments and supplements
thereto, including all printing costs associated therewith, and the delivering of copies thereof to the Placement Agents, in the quantities herein above specified, (ii) all costs and expenses related to the transfer and delivery of the Securities to
the Placement Agents, including any transfer or other taxes payable thereon (other than as set forth in Section 4), (iii) the cost of printing or producing any Blue Sky or legal investment memorandum in connection with the offer and sale of the
Securities under state securities laws and all expenses in connection with the qualification of the Securities for offer and sale under state securities laws as provided in Section 6(d) hereof, including filing fees and the reasonable fees and
disbursements of counsel for the Placement Agents in connection with such qualification and in connection with the Blue Sky or legal investment memorandum, (iv) any fees charged by rating agencies for the rating of the Securities, (v) the fees and
expenses, if any, incurred in connection with the admission of the Securities for trading in PORTAL or any appropriate market system, (vi) the costs and charges of the Trustee and any transfer agent, registrar or depositary, (vii) the cost of the
preparation, issuance and delivery of the Securities, (viii) the costs and expenses of the Company and Holdings relating to investor presentations on any “road show” undertaken in connection with the marketing of the offering 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 with the prior approval of the Company,
travel and lodging expenses of the representatives and officers of the Company and Holdings and any such consultants, and the cost of any aircraft chartered in connection with the road show, and (ix) all other cost and expenses incident to the
performance of the obligations of the Company and Holdings hereunder for which provision is not otherwise made in this Section. It is understood, however, that except as provided in this Section, Section 8, and the last paragraph of Section 10, the
Placement Agents will pay all of their costs and expenses, including fees and disbursements of their counsel, transfer taxes payable on resale of any of the Securities by them and any advertising expenses connected with any offers they may make.

  
 (f) None of the Company, any Guarantor or any
of their respective Affiliates will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in the Securities Act) which could be integrated with the sale of the Securities or the Guarantees in a
manner which would require the registration under the Securities Act of the Securities or the Guarantees. 
  
 (g) Not to solicit any offer to buy or offer or sell the Securities or the Guarantees by means of any form of general solicitation or
general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. 
  
 (h) While any of the Securities or the Guarantees endorsed
thereon remain “restricted securities” within the meaning of the Securities Act, to make available, upon request, to any seller or holder of such Securities or any prospective purchaser designated by such seller or holder the information
specified in Rule 144A(d)(4) under the Securities Act, unless Holdings is then subject to Section 13 or 15(d) of the Exchange Act. 
  

 12 

 (i) If requested by you, to use its reasonable best efforts to permit the Securities to
be designated PORTAL securities in accordance with the rules and regulations adopted by the National Association of Securities Dealers, Inc. relating to trading in the PORTAL Market. 
  
 (j) None of the Company, its Affiliates or any person acting on its or their behalf (other than the
Placement Agents) will engage in any directed selling efforts (as that term is defined in Regulation S) with respect to the Securities or the Guarantees, and the Company and its Affiliates and each person acting on its or their behalf (other than
the Placement Agents) will comply with the offering restrictions requirement of Regulation S. 
  
 (k) During the period of two years after the Closing Date, the Company and Holdings will not, and will not permit any of their respective
“affiliates” (as defined in Rule 144 under the Securities Act) to resell any of the Securities which constitute “restricted securities” under Rule 144 that have been reacquired by any of them. 
  
 (l) Not to take any action prohibited by Regulation M under
the Exchange Act in connection with the distribution of the Securities contemplated hereby. 
  
 7. Offering of Securities; Restrictions on Transfer. 
  
 (a) Each Placement Agent, severally and not jointly, represents and warrants that such Placement Agent is a qualified institutional buyer
as defined in Rule 144A under the Securities Act (a “QIB”). Each Placement Agent, severally and not jointly, agrees with the Company that (i) it will not solicit offers for, or offer or sell, such Securities or Guarantees by
any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act and (ii) it will solicit
offers for such Securities only from, and will offer such Securities only to, persons that it reasonably believes to be (A) in the case of offers inside the United States, QIBs and (B) in the case of offers outside the United States, to persons
other than U.S. persons (“foreign purchasers,” which term shall include dealers or other professional fiduciaries organized in the United States acting on a discretionary basis for foreign beneficial owners (other than an estate or
trust)) in reliance upon Regulation S under the Securities Act that, in each case, in purchasing such Securities are deemed to have represented and agreed as provided in the Final Memorandum under the caption “Transfer Restrictions”. As
used in this Section 7(a), the terms “United States” and “U.S. person” have the meanings set forth in Regulation S under the Securities Act. 
  

 13 

 (b) Each Placement Agent, severally and not jointly, represents, warrants, and agrees
with respect to offers and sales outside the United States that: 
  
 (i) such Placement Agent understands that no action has been or will be taken in any jurisdiction by Holdings or the Company that would permit a public offering of the Securities or the Guarantees, or possession or
distribution of either Memorandum or any other offering or publicity material relating to the Securities or the Guarantees, in any country or jurisdiction where action for that purpose is required; 
  
 (ii) such Placement Agent will comply with all applicable
laws and regulations in each jurisdiction in which it acquires, offers, sells or delivers Securities or Guarantees or has in its possession or distributes either Memorandum or any such other material, in all cases at its own expense; 
  
 (iii) the Securities and the Guarantees have not been
registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in accordance with Rule 144A or Regulation S under the Securities Act or pursuant to another
exemption from the registration requirements of the Securities Act; 
  
 (iv) such Placement Agent has offered the Securities and the Guarantees and will offer and sell the Securities and the Guarantees (A) as part of their distribution at any time and (B) otherwise until 40 days after the
later of the commencement of the offering and the Closing Date, only in accordance with Rule 903 of Regulation S or as otherwise permitted in Section 7(a); accordingly, neither such Placement Agent, its Affiliates nor any persons acting on its or
their behalf have engaged or will engage in any directed selling efforts (within the meaning of Regulation S) with respect to the Securities or the Guarantees, and any such Placement Agent, its Affiliates and any such persons have complied and will
comply with the offering restrictions requirement of Regulation S; 
  
 (v) such Placement Agent has (A) not offered or sold and, prior to the date six months after the Closing Date, will not offer or sell any Securities to persons in the United Kingdom except to persons whose ordinary
activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their businesses or otherwise in circumstances which have not resulted and will not result in an offer to the public in
the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995, as amended, (B) complied and will comply with all applicable provisions of the Financial Services and Markets Act 2000 (the “FSMA”) with
respect to anything done by it in relation to the Securities in, from or otherwise involving the United Kingdom, and (C) only communicated or caused to be communicated any invitation or inducement to engage in investment activity (within the meaning
of section 21 of the FSMA) received by it in connection with the issue or sale of the Securities in circumstances in which section 21(1) of the FSMA does not apply to the Company; 
  
 (vi) such Placement Agent understands that the Securities and the Guarantees have not been and will not be
registered under the Securities and 
  

 14 

 Exchange Law of Japan, and represents that it has not offered or sold, and agrees not to offer or sell,
directly or indirectly, any Securities or Guarantees in Japan or for the account of any resident thereof except pursuant to any exemption from the registration requirements of the Securities and Exchange Law of Japan and otherwise in compliance with
applicable provisions of Japanese law; and 
  
 (vii) such Placement Agent agrees that, at or prior to confirmation of sales of the Securities, it will have sent to each distributor, dealer or person receiving a selling concession, fee or other remuneration that purchases Securities from
it during the restricted period a confirmation or notice to substantially the following effect: 
  
 “The securities covered hereby have not been registered under the U.S. Securities Act of 1933 (the “Securities Act”) and may not be offered
and sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days after the later of the commencement of the offering and the closing date, except in
either case in accordance with Regulation S (or Rule 144A if available) under the Securities Act. Terms used above have the meaning given to them by Regulation S.” 
  
 Except when the context otherwise requires, terms used in this Section 7(b) have the meanings given to them by Regulation S.

  
 8. Indemnity and Contribution. (a) The Company and
Holdings jointly and severally agree to indemnify and hold harmless each Placement Agent, each person, if any, who controls any Placement Agent within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and each
affiliate of any Placement Agent within the meaning of Rule 405 under the Securities Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in
connection with defending or investigating any such action or claim) caused by any untrue statement or alleged untrue statement of a material fact contained in either Memorandum (as amended or supplemented if the Company shall have furnished any
amendments or supplements thereto), or caused by any omission or alleged omission to state therein a material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, except insofar
as such losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information relating to any Placement Agent that is furnished to Holdings or the Company in writing
by such Placement Agent expressly for use therein. 
  
 (b) Each Placement Agent agrees, severally and not jointly, to indemnify and hold harmless Holdings, the Company, their respective directors and officers and each person, if any, who controls Holdings or the Company within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity from Holdings and the Company to such Placement Agent, but only with reference to information relating to such Placement Agent
that is furnished to Holdings or the Company in writing by such Placement Agent expressly for use in either Memorandum or any amendments or supplements thereto. 
  

 15 

 (c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b), such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the
“indemnifying party”) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such
proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.
It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than
one separate firm (in addition to any local counsel) for all such indemnified parties and that all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by Morgan Stanley & Co.
Incorporated, in the case of parties indemnified pursuant to Section 8(a), and by the Company, in the case of parties indemnified pursuant to Section 8(b). The indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such
settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second
and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 90 days after receipt by such
indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless
such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding. 
  
 (d) To the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable to an indemnified party or insufficient in
respect of any losses, claims, damages or liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative 
  

 16 

 benefits received by the Company and Holdings on the one hand and the Placement Agents on the other hand
from the offering of the Securities or (ii) if the allocation provided by clause 8(d)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause 8(d)(i) above but
also the relative fault of the Company and Holdings on the one hand and of the Placement Agents on the other hand in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative benefits received by the Company and Holdings on the one hand and the Placement Agents on the other hand in connection with the offering of the Securities shall be deemed to be in the same
respective proportions as the net proceeds from the offering of the Securities (before deducting expenses) received by the Company and the total discounts and commissions received by the Placement Agents, in each case as set forth in the Final
Memorandum, bear to the aggregate offering price of the Securities. The relative fault of the Company and Holdings on the one hand and of the Placement Agents on the other hand shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and Holdings or by the Placement Agents and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. The Placement Agents’ respective obligations to contribute pursuant to this Section 8 are several in proportion to the respective
principal amount of Securities they have purchased hereunder, and not joint. 
  
 (e) The parties agree that it would not be just or equitable if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the Placement Agents were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 8(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages and
liabilities referred to in Section 8(d) shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 8, no Placement Agent shall be required to contribute any amount in excess of the amount by which the total price at which the Securities resold by it in the initial placement of such
Securities were offered to investors exceeds the amount of any damages that such Placement Agent has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The remedies provided for in this Section 8
are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. 
  
 (f) The indemnity and contribution provisions contained in this Section 8 and the representations, warranties and other statements of the
Company and Holdings contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of 
  

 17 

 any Placement Agent, any person controlling any Placement Agent or any affiliate of any Placement Agent
or by or on behalf of the Company, Holdings, their respective officers or directors or any person controlling the Company or Holdings and (iii) acceptance of and payment for any of the Securities. 
  
 9. Termination. The Placement Agents may terminate this Agreement by
notice given by you to the Company and Holdings, if after the execution and delivery of this Agreement and prior to the Closing Date (i) trading generally shall have been suspended or materially limited on, or by, as the case may be, any of the New
York Stock Exchange, the American Stock Exchange, the Nasdaq National Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade, (ii) trading of any securities of the Company or Holdings shall have
been suspended on any exchange or in any over-the-counter market, (iii) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred, (iv) any moratorium on commercial banking activities
shall have been declared by Federal or New York State authorities or (v) there shall have occurred any outbreak or escalation of hostilities, or any change in financial markets or any calamity or crisis that, in your judgment, is material and
adverse and which, singly or together with any other event specified in this clause (v), makes it, in your judgment, impracticable or inadvisable to proceed with the offer, sale or delivery of the Securities on the terms and in the manner
contemplated in the Final Memorandum. 
  
 10. Effectiveness;
Defaulting Placement Agents. This Agreement shall become effective upon the execution and delivery hereof by the parties hereto. 
  
 If, on the Closing Date, any one or more of the Placement Agents shall fail or refuse to purchase Securities that it or they have agreed to purchase
hereunder on such date, and the aggregate principal amount of Securities which such defaulting Placement Agent or Placement Agents agreed but failed or refused to purchase is not more than one-tenth of the aggregate principal amount of Securities to
be purchased on such date, the other Placement Agents shall be obligated severally in the proportions that the principal amount of Securities set forth opposite their respective names in Schedule I bears to the aggregate principal amount of
Securities set forth opposite the names of all such non-defaulting Placement Agents, or in such other proportions as you may specify, to purchase the Securities which such defaulting Placement Agent or Placement Agents agreed but failed or refused
to purchase on such date; provided that in no event shall the principal amount of Securities that any Placement Agent has agreed to purchase pursuant to this Agreement be increased pursuant to this Section 10 by an amount in excess of
one-ninth of such principal amount of Securities without the written consent of such Placement Agent. If, on the Closing Date, any Placement Agent or Placement Agents shall fail or refuse to purchase Securities which it or they have agreed to
purchase hereunder on such date and the aggregate principal amount of Securities with respect to which such default occurs is more than one-tenth of the aggregate principal amount of Securities to be purchased on such date, and arrangements
satisfactory to you and the Company for the purchase of such Securities are not made within 36 hours after such default, this Agreement shall terminate without liability on the part of any non-defaulting Placement Agent or of the Company. In
any such case either you or the Company shall have the right to postpone the Closing Date, but in no event for longer than seven days, in order that the required changes, if any, in the Final Memorandum or in any 
  

 18 

 other documents or arrangements may be effected. Any action taken under this paragraph shall not relieve any defaulting
Placement Agent from liability in respect of any default of such Placement Agent under this Agreement. 
  
 If this Agreement shall be terminated by the Placement Agents, or any of them, because of any failure or refusal on the part of the Company or Holdings to
comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Company or Holdings shall be unable to perform their respective obligations under this Agreement, the Company or Holdings will reimburse the
Placement Agents or such Placement Agents as have so terminated this Agreement with respect to themselves, severally, for all out-of-pocket expenses (including the reasonable fees and disbursements of their counsel) reasonably incurred by such
Placement Agents in connection with this Agreement or the offering contemplated hereunder. 
  
 11. Counterparts. This Agreement may be signed in any number of counterparts, which may be delivered by facsimile, each of which shall be an original, with the same effect as if the actual signatures thereto
and hereto were upon the same instrument. 
  
 12. Applicable
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York. 
  
 13. Headings. The headings of the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed a part of
this Agreement. 
  
 [Remainder of Page Intentionally Left Blank]

  

 19 

			
	Very truly yours,
	
	DEL MONTE CORPORATION
		
	By:	 	 /s/ Thomas E. Gibbons

	Name:	 	Thomas E. Gibbons
	Title:	 	Senior Vice President and Treasurer
	
	DEL MONTE FOODS COMPANY
		
	By:	 	 /s/ Thomas E. Gibbons

	Name:	 	Thomas E. Gibbons
	Title:	 	Senior Vice President and Treasurer

  
 Accepted as of the date hereof

  
 Morgan Stanley & Co. Incorporated 
 Banc of America Securities LLC 
 Lehman Brothers Inc. 
 J.P. Morgan Securities Inc. 
  
 Acting severally on behalf of themselves and 
         the several Placement Agents
named in 
         Schedule I hereto. 
  

			
	 By:
	  	Morgan Stanley & Co. Incorporated

  

			
	By:	 	 /s/ Bryan Andrzejewski

	Name:	 	Bryan Andrzejewski
	Title:	 	Executive Director

 SCHEDULE I 
  

				
	 Placement Agent

	  	 Principal Amount of
 Securities to be Purchased

	 Morgan Stanley & Co. Incorporated
	  	$	125,000,000
	 Banc of America Securities LLC
	  	 	62,500,000
	 Lehman Brothers Inc.
	  	 	31,250,000
	 J.P. Morgan Securities Inc.
	  	 	31,250,000
		
	 Total:
	  	$	250,000,000

 SCHEDULE II 
  

COMPANY SUBSIDIARY GUARANTORS 
  
 Star-Kist Samoa, Inc., a California corporation. 
 Mike Mac IHC, Inc., a
Delaware corporation. 
 Marine Trading Pacific, Inc. 
 Star-Kist
Mauritius, Inc. 
  

 C-1

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